Federal Reserve Bulletin, 1958-03

FEDERAL RESERVE B U LLETIN March • * * BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHISCTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

E D I T O R I AL C O M M I T T EE Elliott Thurston Woodlief Thomas Winfield W. Riefler Ralph A. Young Susan S. Burr The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed, except in official statements and signed articles. Contents International Gold and Dollar Flows 241 Preliminary Findings of the 1958 Survey of Consumer Finances 248 Economic Policy Considerations 252 Credit Extended by Banks to Real Estate Mortgage Lenders 258 Bulletin Subscription Rate for Member Banks 259 Law Department 260 Current Events and Announcements 298 National Summary of Business Conditions 300 Financial and Business Statistics, U. S. (Contents on p. 303) 305 International Financial Statistics (Contents on p. 359) 360 Board of Governors and Staff 375 | Open Market Committee and Staff; Federal Advisory Council 376 Federal Reserve Banks and Branches 376 Federal Reserve Board Publications 383 1 Index to Statistical Tables 385 Map of Federal Reserve System Insideback cover | i J| Volume 44 * Number 3 Subscription Price of Bulletin A copy of the Federal Reserve Bulletin is sent to each member bank without charge. The subscription price in the United States and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 per annum or 60 cents per copy; elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

International Gold and Dollar Flows THE INTERNATIONAL RESERVE POSITIONS of many foreign countries were under pres- GOLD AND DOLLAR HOLDINGS sure in 1957. Aggregate gold and dollar FOMHSN COUNTRIIS AND INTUNATIONM INSTITUTIONS Billions o( dollars holdings of foreign countries and interna- 32 tional institutions nevertheless rose $65 million to $32.7 billion, less than one per cent FOREIGN COUNTRIES below the record level of September 1956. After declining earlier in the year, holdings rose $375 million in the fourth quarter, and continued to increase in early 1958. The international flow of gold and dollars INTERNATIONAL 20 changed frequently. The reserve losses of INSTITUTIONS some Western European countries connected with the Suez crisis continued into the first quarter of 1957. In the third quarter a wave of exchange rate speculation, affecting in 1955 1957 particular the pound sterling, cut even NOTE.—End-of-quarter data. deeper into the gold and dollar holdings of some Western European countries. This The United States gold stock rose in 1957 movement was halted and to some extent re- to $22.9 billion, the highest level since versed in the fourth quarter. January 1953; it declined early in 1958 as a Many countries suffered reserve losses result of purchases by countries that lost because of inflationary pressures. In France, gold in 1957. India, and Japan, the decline in reserves plus Foreign countries and international instithe losses covered by drawings on the Inter- tutions sold $772 million of gold to the national Monetary Fund and, for France, on United States in 1957, but added $147 milthe credit facilities of the European Pay- lion to their dollar holdings. Foreign counments Union, ranged from 40 to more than tries purchased $690 million of gold for their 60 per cent of official reserves at the begin- reserves from new production and other ning of the year. sources. Many countries obtained dollars By the year-end many countries had taken through transactions with international instinew steps to bring inflationary pressures tutions. Twenty countries drew on their under control and, with the ending of the quotas with the International Monetary world-wide investment boom, most indus- Fund for a total of $913 million net. trialized countries had achieved financial Canada and many European countries instability. creased their gold and dollar holdings in 241 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN • MARCH 1958 1957, and some European countries that lost SELECTED COMPONENTS OF UNITED STATES reserves earlier in the year retrieved much of BALANCE OF PAYMENTS their losses in the fourth quarter. In con- [In millions of dollars] trast, the holdings of nearly all non-Euro- Component 1956 1957* pean countries declined. The principal exceptions were some major oil-producing Merchandise and services: countries, and a few countries that received Exports* 23,518 26,262 aid from the United States Government or Imports2 20,447 21,331 benefited from particularly favorable export Balance 3,071 4,931 positions. Net outflow of U. S. capital and The United Kingdom and most Continen- Government grants: Private capital 2,980 3,035 tal European countries that had payments Govt. loans3 626 961 Govt. grants4 1,695 1,607 deficits nevertheless maintained the liberalization of international trade achieved in Net transfers of gold and dollars to foreigners5 923 -625 previous years. Several countries with payments surpluses extended the degree of liber- p Preliminary. 1 Excludes military transfers under grants. alization, and Italy and Germany further 2 Includes remittances, pensions, and military expenditures abroad. 3 Includes other short-term claims. reduced limitations on capital transactions. 4 Excludes military grants. 5 As shown in table on p. 367. On the other hand, some countries experi- SOURCES.—Net transfer of gold and dollars, Federal Reserve; other series, U. S. Department of Commerce. encing heavy reserve losses restricted imports, in addition to adopting measures of Unrecorded payments to the United States financial restraint; and a few countries tight- (appearing in balance-of-payments statistics ened restrictions on capital movements duras "errors and omissions") were very large ing the period of speculative pressures. in the first three quarters. On balance, there was a net transfer of gold and dollars to the TRANSACTIONS WITH THE UNITED STATES United States in the first three quarters, and United States exports and imports of goods a net transfer of dollars to foreign countries and services were larger in 1957 than in in the fourth quarter of the year. 1956, exports by 12 per cent and imports by Outflow of private capital. The net outflow 4 per cent. During the second half of the of private capital from the United States year, however, exports declined from earlier reached a record $3 billion in 1957, 2 per peaks while imports changed little; the cent more than in 1956. About half of the United States export surplus was therefore total went to Canada and Venezuela. very large in the first half and then gradually Direct investments in foreign branches diminished. and subsidiaries of domestic corporations ac- The outflow of private and Government counted for two-thirds of the outflow; the capital from the United States also was remainder represented bank credit and new larger than in 1956, but the increase was not security issues. Private investors in the sufficient in the first three quarters of the United States also provided substantial year to offset the rise in the export surplus. amounts of capital to foreigners in conjunc- Recorded investment of foreign capital in tion with loans of the International Bank for the United States declined during the year. Reconstruction and Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL GOLD AND DOLLAR FLOWS 243 The increase of $560 million in commer- European countries) increased an estimated cial bank credit extended to foreigners $430 million in 1957 compared with an inequaled the growth in 1956, and was almost crease of $310 million in the previous year. evenly divided between short- and medium- Foreign monetary authorities added an term claims. The growth in short-term estimated $690 million to their holdings claims was mainly in acceptance credits to from new production and other sources; they finance United States exports and the storage sold $172 million net to the United States or shipment of goods abroad. and transferred $88 million to the Inter- Government loans and grants. The outflow national Monetary Fund. Gold holdings of of United States Government capital (net the Fund declined $512 million, however, as loans and nonmilitary grants) rose $250 the Fund sold gold to the United States to million to $2.6 billion. The increase was meet dollar drawings by member countries. attributable to growth of Government loans New production. Foreign gold production and other claims; there was a slight decline (excluding the U.S.S.R.) rose in 1957 about in nonmilitary grants. $45 million to an estimated $975 million, Disbursements by the Export-Import reflecting almost entirely increased South Bank were larger than in 1956, primarily African output. In the first half of the year because of the disbursement of $250 million a considerable portion of the new production on a loan to the United Kingdom. Short- was added to official reserves, but in the term Government claims on foreign coun- last half the greater part was diverted to tries rose $300 million more than in 1956 private holdings, apparently because of inwith expansion of net receipts of foreign cur- creased hoarding demands. Production in rencies from the agricultural surplus dis- the United States amounted to $64 million, posal program. about the same as in each of the preceding Foreign investments. Approximately $340 three years. million in private foreign capital, 35 per cent Sales to the United States. The Internaless than in 1956, was invested in long-term tional Monetary Fund sold $600 million of assets in the United States other than Gov- gold to the United States and foreign moneernment securities. Foreigners were net tary authorities sold $172 million net. The sellers of United States corporate stocks dur- largest sales were by Argentina ($75 miling the last half of the year, for the first time lion), Spain ($31 million), the Netherlands since 1950. ($25 million), and the Philippines ($22 mil- Unrecorded payments to the United States lion). There were only a few small purwere larger than in 1956. There was an chases from the United States. inflow of $ 1 billion in the first three quarters The inflow of gold had an expansionary of 1957, but an outflow of $200 million in effect on commercial bank reserves in this the fourth quarter. These figures appear to country; over two-thirds of the impact ocindicate a change in the direction of unre- curred in the first half of the year. Offsetting corded capital movements. Federal Reserve open market operations served to keep the level of member bank GOLD MOVEMENTS reserves consistent with the policy of mone- Official gold holdings of foreign countries tary restraint followed during the first three (excluding the U.S.S.R. and other Eastern quarters of 1957. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN • MARCH 1958 DOLLAR HOLDINGS REGIONAL CHANGES IN GOLD AND DOLLAR HOLDINGS Foreign and international dollar holdings rose $147 million in 1957. Private holdings Eight European countries added to their increased while official foreign holdings and gold reserves and dollar holdings in 1957. Three others—Belgium, the Netherlands, those of international institutions declined. and the United Kingdom—in which infla- The bulk of foreign holdings consists of tionary pressures and a speculative outflow bank deposits, Treasury bills, and other of capital led to gold and foreign exchange United States Government securities. In the losses in the first nine months of the year, past year, however, holdings in these forms increased their holdings in the last quarter declined, as the table shows. The increase with the return of more stable conditions. occurred in other short-term assets, mainly Almost all of the less industrialized counbankers' acceptances and commercial paper. tries lost gold and dollars. Some of these countries were attempting to carry out in- TRANSFERS OF GOLD AND DOLLARS vestment programs initiated under more TO FOREIGNERS, 19571 favorable circumstances; in many of them [Net transfers from, or to (-), the United States, domestic prices increased 10 per cent or in millions of dollars] more, and in almost all of them imports were at record levels. Jan.- Apr.- July- Oct.- Item Year Mar. June Sept. Dec.p Germany, Italy, Austria, and Norway increased their holdings by one-fifth or more. Net transfers, total. -625 -594 -13 -270 252 German holdings rose $770 million, and Net gold transfers. -772 -342 -318 -19 -93 after allowance for German purchases of Net increase in dollar holdings... 147 -252 305 -251 345 $175 million of International Bank notes Deposits -24 -372 431 -104 21 the increase was comparable to that in 1956. U. S. Govt. sec.: Short-term -111 -192 -98 -89 268 "Hot money" flows, primarily associated Long-term.... -42 127 10 -244 65 Other2 324 185 -38 186 -9 with speculation on an upward revaluation of the German mark, contributed in the third p Preliminary. quarter to large gains in German reserves 1 Includes international institutions. 2 Represents mainly bankers' acceptances and short-term com- and to losses by other European countries, mercial paper. in particular the United Kingdom and the At various times, and especially in early Netherlands. In the ensuing months these 1958, changes in the form of short-term flows were reversed. dollar holdings appear to have followed France, the principal deficit country in changes in the yields on various types of Europe, lost virtually all of its remaining assets. For instance, acceptances held for official reserves aside from gold held by the foreign account at Federal Reserve Banks Bank of France. France also utilized credits rose in December 1957 and January 1958, totaling $440 million from the International as a rapid decline in the Treasury bill rate Monetary Fund and the European Payments increased the yield advantage on accept- Union, an acceptance credit of $100 million ances. In early 1958 foreign holdings of from commercial banks in the United States, time deposits rose as yields on both Treasury and part of the foreign exchange balances of bills and acceptances continued to fall. French commercial banks. The total de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL GOLD AND DOLLAR FLOWS 245 terioration in its net gold and foreign ex- foreign exchange assets, in addition to $200 change position exceeded $1 billion. million drawn from the Fund. By early 1958 the French Government Canada and Venezuela added substanhad undertaken to limit the size of the budget tially to their gold and dollar holdings until deficit and imposed restraints on the supply the fourth quarter, when their holdings deof credit. As part of the stabilization pro- clined. The inflow of private capital from the United States fell in the second half of gram, substantial foreign assistance was the year. Eight other major trading counmade available to France. tries in Latin America showed declines, if The gold and dollar holdings of the account is taken of Fund drawings and the United Kingdom, after some recovery during special financing arranged to enable Colomthe first half of the year from the impact of bia to reduce commercial arrears. In six of the Suez crisis, fell in the third quarter, these countries, increases in the cost of living mainly because of exchange rate speculation. exceeded 12 per cent during 1957. To restore confidence in sterling and bring Holdings of most Asian countries decreeping inflation to an end, Bank rate was clined, but those of Thailand and of some raised from 5 to 7 per cent in September, major oil-producing countries increased. In and other monetary and fiscal restraints were Japan credit restraint, including an increase tightened. Thereafter sterling exchange in the discount rate, halted inflationary tenrates strengthened and gold and dollar holddencies and, coupled with tightened import ings increased. restrictions, ended the drain on reserves. In Almost all countries of the outer sterling the last months of the year, Japan's reserves area drew down sterling balances to meet rose despite a fall in sterling trade credits. deficits. Australia, which benefited from Detailed statistics on the gold and dollar strong exports of wool, was a notable excep- holdings of foreign countries and internation. India utilized nearly $500 million in tional institutions are given on page 367. FOREIGN GOLD AND DOLLAR HOLDINGS SELECTED ARIAS Billions of dollars 10 • 1ST OF WESIiHN EUIIOM OIHE« LATIN UNHID KINGDOM AND OTHIH srcmiNO AHEA I I I 19S3 1955 1957 1953 1955 1957 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN • MARCH 1958 INTERNATIONAL SOURCES OF FUNDS and Germany, Fund creditor countries) A number of countries were assisted in meet- may be estimated at $1.5 billion, or 7 per ing temporary deficits in their international cent of their gold and dollar holdings. Of payments by drawing on the resources of this sum, $1 billion represents amounts availinternational and regional organizations as able to countries under existing standby arwell as by borrowing from governmental rangements and the remainder the unused and private sources of capital. portion within the first half of the quotas of The United Kingdom was better able to these countries. The Fund's attitude toward weather the speculation against sterling in drawings within the first half of a member's the third quarter of 1957 because in late quota has been liberal, provided the member 1956 the International Monetary Fund had makes reasonable efforts to solve its financial provided a drawing and a standby arrange- problems. ment totaling $1.3 billion and the Export- Since 1950, Western European countries Import Bank had granted a credit line of have been able to borrow from the European $500 million. After acting in September to Payments Union. Nearly all of the debts stop the reserve drain, the United Kingdom outstanding in early 1958 had their counterbuttressed its reserves by drawing $250 mil- part in credits granted to the Union by other lion of the Export-Import Bank credit and members, principally by Germany ($1 bilobtaining the equivalent of a loan of $180 lion), Belgium, and the Netherlands. After million through postponement of payments settlement of the deficits and surpluses for of principal and interest due the United 1957, seven countries with over-all deficit States and Canada on loans made in 1945. positions had aggregate unused borrowing It also renewed its standby arrangements rights of $777 million, including the recent with the Fund and the Export-Import Bank. credits to France. France drew the first half of its Fund Countries in deficit also received credits quota ($263 million) and utilized credits of directly from countries with strong balance- $176 million from the European Payments of-payments positions. In 1957 six Latin Union. In January 1958 a Fund standby American countries renewed, but did not arrangement of $131 million and European draw on, exchange agreements with the Payments Union credits totaling $250 mil- United States Treasury. Chile obtained a lion were made available to meet future credit from the Export-Import Bank in con- French deficits, and at the same time the nection with its stabilization program, and United States gave France an option to post- Colombia received a loan to assist in the pone payments on certain loans. settlement of payments arrears. The Neth- Net drawings from the Fund in 1957 erlands received a short-term credit of $80 amounted to $913 million, of which more million from the German central bank. than one-half was drawn by non-European Private capital contributed toward intercountries. At the beginning of 1958, Fund national payments stability in 1957, alresources readily available to member coun- though at times speculative movements actries (excluding the United States, Canada, centuated the foreign exchange difficulties of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTERNATIONAL GOLD AND DOLLAR FLOWS 247 some countries. Commercial banks in the capital from Germany; interest rates in Ger- United States renewed lines of credit to many, accompanying two reductions in the Brazil, as well as credits to Chile and Peru discount rate, declined, while those in most made available in conjunction with Treasury other European money markets rose or reexchange agreements and Fund standby ar- mained high. rangements. They also made loans to Co- The international means of payment at a lombia to help in settling arrears, and to the country's disposal thus often exceed its re- Philippines. ported reserves. In recent years supple- German commercial banks extended cred- mentary sources of foreign exchange have its of more than $100 million to the Gov- become increasingly available to countries ernments of Belgium and the Netherlands. having international payments difficulties, The discount rate policies of leading Euro- especially when they adopt effective measpean countries facilitated the outflow of ures to restore internal financial balance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Preliminary Findings of the 1958 Survey of Consumer Finances CONSUMERS EARLY THIS YEAR viewed dicated a less favorable situation than in the their financial positions and prospects less preceding three years but were very similar favorably than a year ago and expressed to the reports on this question in early 1954 concern about the general business outlook, and early 1949. according to the preliminary findings of the The decline in wage and salary income thirteenth annual Survey of Consumer Fiin recent months was reflected in an increase nances.1 This Survey was conducted in in the proportion of consumers who reported January and February 1958 by the Board they were making less than a year ago. In of Governors of the Federal Reserve System January-February of this year 26 per cent in cooperation with the Survey Research of the consumers said their rate of income Center of the University of Michigan. Perwas lower than it had been a year earlier. sonal interviews with a representative sample This was the largest proportion reporting of the consumer population provided inan income decline for any Survey in recent formation on consumers' financial positions, years and was somewhat larger than in early views about their own and general economic 1954 and early 1949. About 36 per cent prospects, and their plans for purchasing of all spending units reported that they were durable goods and houses during the year. earning more early this year than a year ago. In reporting their views about their pres- This proportion was lower than in any sent financial situations, about one-third of Survey since early 1950. all spending units said they were better off The decline in personal income in the than a year ago while another one-third said closing months of 1957 had little effect on they were worse off. These proportions inconsumer incomes for the year as a whole 1 These findings are based on preliminary tabula- and the distribution of money income retions of approximately 2,600 interviews taken in Janu- ceived in 1957 was very similar to that ary and February 1958 in the 12 largest metropolitan reported for 1956. There also appeared to areas and 54 other sampling areas throughout the country. Additional interviews and adjustments for be no significant changes in the distribution differential response rates in various strata of the of holdings of liquid assets other than cursample will be incorporated in the tabulations which will be published in later articles in the Federal Re- rency from early 1957 to early 1958. About serve BULLETIN. In past years differences between one-fourth of the consumers in both years preliminary and final data have been small. reported no liquid asset holdings while about The Survey of Consumer Finances, like other sample surveys of this type, is subject to response as one-third reported substantial holdings— well as sampling errors. As a result of such factors, $1,000 or more. undue importance should not be attached to small changes in the data from year to year. For tables of There was a sharp contrast between consampling errors in Survey data see the Federal Reserve BULLETIN, June 1957, p. 638. sumers' views about general business con- 248 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1958 SURVEY OF CONSUMER FINANCES 249 ditions and their appraisals of their own improvements and maintenance were exfinancial prospects. While many consumers pressed as frequently as in other recent years. were pessimistic about the business situa- Plans to purchase furniture and appliances tion during the coming year, very few ex- were expressed by over one-fourth of the pected their own incomes to decline. About spending units, about the same as in early two-fifths of the consumers interviewed in 1955 and early 1956 and only slightly be- January and February expected "bad times" low the proportion planning such purchases during the year and about one-third exa year ago. For both home improvements pected "good times," a less favorable exand maintenance and furniture and housepectation than reported in any other Survey hold appliances, purchase plans were reof Consumer Finances. Nevertheless, nearly ported more frequently in early 1958 than three-fourths of all spending units expected in early 1954. to be making at least as much at the begin- In early 1958 the proportion of conning of next year as they were making early sumers expressing plans to purchase new this year, and half of these expected to be automobiles was substantially below the making more. Only one-tenth expected proportion reporting such plans in other their rate of earnings to decline in the comrecent years. On the other hand, there was ing year. Consumers' views as to their a sharp increase in the frequency of plans income prospects were only moderately to buy used cars. The median amount that less favorable than in other recent Surveys consumers expected to spend for new cars and more favorable than in early 1954 and this year was a little below that of a year early 1949. ago, while the median amount they expected Nearly one-half of all spending units exto spend for used cars was almost unpected retail prices to rise over the year. changed. Expectations of price increases were ex- The data shown on buying plans serve as pressed somewhat more frequently by those an index of consumers' present attitudes in the middle and lower income brackets than by the upper income groups. toward such purchases rather than as a Consumers' plans to purchase major items forecast of the number of actual purchases during 1958 present a picture generally con- during the coming year. Many consumers sistent with current market conditions. do not plan purchases a year in advance and Plans to purchase new and existing houses those expressing plans early in the year may were less frequent than in 1955-57, but alter their plans in the light of subsequent somewhat more frequent than in early 1954. changes in the general economic situation Intentions to make expenditures on home and their own financial positions. NOTE.—The summary table begins on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN • MARCH 1958 PRELIMINARY RESULTS OF THE FEDERAL RESERVE SURVEY OF CONSUMER FINANCES EARLY 1958, WITH FINAL RESULTS FOR EARLY 1948-57 x [Percentage distribution of spending units] Consumer financial positions 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 Evaluation of own financial situation Better off than a year ago 33 40 40 38 36 38 33 32 32 33 29 No change 36 35 35 33 31 33 29 29 32 35 28 Worse off than a year ago 30 23 23 27 31 26 35 37 34 30 39 Don't know, not ascertained 1 2 2 2 2 3 3 2 2 2 4 All cases 100 100 100 100 100 100 100 100 100 100 100 Past change in income rate2 Making more than a year ago 36 45 41 38 41 48 46 49 30 42 43 No change 36 35 38 37 34 32 33 33 41 35 33 Making less than a year ago 26 18 18 23 23 16 17 17 27 21 21 Don't know, not ascertained 2 2 3 2 2 4 4 1 2 2 3 All cases 100 100 100 100 100 100 100 100 100 100 100 Money income in prior year, before taxes Under $1,000 9 9 11 10 10 11 13 13 14 12 14 $l,000-$l,999 13 12 12 13 13 14 15 17 19 18 22 $2,000-$2,999 12 12 13 14 14 16 18 19 21 23 23 $3,000-$3,999 12 12 14 17 16 18 18 19 19 20 17 $4,000-$4,999 12 14 14 14 16 15 15 12 11 12 10 $5,000-$7,499 25 24 22 21 21 17 14 14 11 10 9 $7,500-$9,999 10 9 8 6 5 5 4 3 2 2 $10,000 and over 7 8 6 5 5 4 3 3 3 3 } 5 All cases .... 100 100 100 100 100 100 100 100 100 100 100 Liquid asset holdings3 Zero 25 24 28 29 26 29 31 28 31 29 27 $1-$199 18 17 15 17 15 16 17 16 16 16 15 $200-$499 14 14 12 12 13 12 13 14 11 13 13 $500-$999 11 12 12 10 13 11 9 11 10 11 12 $l,000-$l,999 10 11 11 10 11 12 10 12 10 11 12 $2,000-$4,999 13 13 12 12 13 11 12 11 13 12 12 $5,000-$9,999 5 5 6 6 5 5 5 5 6 5 5 $10,000 and over 4 4 4 4 4 4 3 3 3 3 4 All cases 100 100 100 100 100 100 100 100 100 100 100 1 Preliminary data for early 1958 are based on the first 2,584 spend- 3 Liquid assets include U. S. Government savings bonds, checking ing units interviewed and have not been adjusted for nonresponse. accounts, savings accounts in banks, postal savings, and shares in Data for previous years are based on complete surveys and adjusted savings and loan associations and credit unions; currency is excluded. for nonresponse. Data prior to 1957 include also marketable U. S. Government bonds 2 Includes only nonfarm spending units. which were held by about 1 per cent of all spending units in 1957. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

251 1958 SURVEY OF CONSUMER FINANCES PRELIMINARY RESULTS OF THE FEDERAL RESERVE SURVEY OF CONSUMER FINANCES—CONT. EARLY 1958, WITH FINAL RESULTS FOR 1948-57x [Percentage distribution of spending units] Consumer plans and expectations 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 Expected change in income rate2 Making more a year from now 37 40 37 39 29 34 37 No change 35 35 36 36 35 33 30 Making less a year from now 11 7 8 6 15 10 8 Don't know, not ascertained 17 18 19 19 21 23 25 All cases 100 100 100 100 100 100 100 3333 28 27 28 32 46 47 10 17 13 30 10 12 (4) 100 100 100 Expected general business conditions5 Good times 33 60 64 59 43 Fair times 9 7 5 5 8 Bad times 39 13 9 12 25 Uncertain, not ascertained 19 20 22 24 24 All cases 100 100 100 100 100 3333 (4) 3333 (4) 3333 40 47 47 15 14 6 17 25 26 28 14 21 (4) 100 100 100 Plans to purchase6 Houses2 7.1 8.7 9.4 9.4 6.6 8.8 6.4 8.5 8.4 7.0 7.5 Home improvement and maintenance2 7 22.8 23.4 22.2 22.0 19.6 16.9 (4) (4) (4) (4) () New automobiles 6.6 8.5 8.4 8.2 7.9 9.0 6.8 6.6 10.6 11.8 Used automobiles 10.5 8.4 7.2 7.5 6.4 6.2 6.0 5.5 6.9 6.8 9.7 Furniture and major house appli- 4.1 ances 28.3 29.4 28.0 28.5 26.9 31.9 23.2 27.4 28.4 30.9 27.4 Median planned expenditure8 New automobile $2,850 $2,920 $2,810 $2,800 $2,570 $2,500 $2,340 $1,970 $1,920 $1,990 $1,800 Used automobile 900 890 800 810 750 950 760 590 540 630 600 Furniture and major household appliances 290 300 290 290 330 330 300 300 290 250 240 Home improvement and maintenance2 7 410 460 370 330 300 4 Data not available. 8 Data for automobiles are based on planned expenditures of spend- 5 Data are based on question: "Now considering the country as a ing units that reported they would or probably would buy or had whole, do you think that during the next 12 months we will have already bought; data for other items include, in addition, planned good times or bad times, or what?" expenditures of spending units that reported they possibly would 6 Spending units that reported they would, probably would, or buy. Medians shown are interpolated from bracket amounts starting possibly would buy, or that had already bought, in Survey year. in 1952. 7 Includes only planned expenditures of $50 or more for improvement and maintenance of home. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

THE YEAR 1957 was a difficult one for rates in 1955 and 1956 and the pursuance those of us charged with appraising financial of a restrictive credit policy—money lost its and economic events and formulating ap- value at a rate that was a matter of great propriate monetary policy. From its open- concern to all. Inflationary excesses had ing and on during much of the year, infla- clearly gotten ahead of us and the economy tionary pressures were dominant in this stood in danger of an inflation crisis. The country and abroad. In commodity mar- adjustment problems that the economy is kets, industrial prices were continuing to ad- confronting today are the aftermath of those vance despite generally downward reaction excesses. in prices of some internationally traded As a nation, we were trying to do too basic materials following the Suez crisis. much too fast, and heavy pressure was In consumer markets, prices of goods and exerted against the available supply of savservices were advancing at a very rapid pace ings. In retrospect, we underestimated the for a nonwar period. Prices of common speed and force of the inflationary boom stocks, which had tended down from mid- and the widespread growth in speculative 1956 to early 1957, rose sharply to new attitudes and commitments. Consumer inhighs in midsummer under the influence of stalment credit rose substantially in 1955 creeping inflation doctrine and of widening when terms were sharply relaxed and conconfidence that the large capital expansion sumers used credit more freely than ever in which business was engaging would be before in the purchase of a record number adequately supported by the demands of of new automobiles. Businesses greatly a rapidly growing population for a rising increased their expenditures for plant and standard of living. The strength of infla- equipment. The rise from 1955 to 1956 tionary pressures was exemplified by the amounted to more than one-fifth for busimarked advances being recorded in the ness as a whole and this advanced level was gross national product measured in current further exceeded in 1957. Stock investors dollars as compared with the relatively mod- were too optimistic in capitalizing the inest gains that were being obtained in the come and dividends which this investment physical volume of total output. might yield. Bankers and other lenders In spite of Federal Reserve actions taken greatly expanded their commitments to lend to resist inflationary trends—including six in these years. Also, liquidity positions of increases of Federal Reserve Bank discount banks and businesses were being reduced as their short-term liabilities were increasing NOTE.—Statement of William McChesney Martin, faster than their holdings of cash and Gov- Jr., Chairman, Board of Governors of the Federal Reserve System, before the Subcommittee on the Fed- ernment securities. Labor unions sought eral Reserve of the Senate Committee on Banking wage increases—and commitments for fuand Currency, Feb. 19, 1958. 252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ECONOMIC POLICY CONSIDERATIONS 253 ture increases—that pressed against or ex- rency values would be maintained and that ceeded gains in productivity. State and inflation would be strongly resisted. local governments borrowed record amounts In this country, the unexpected curtailthrough the capital markets in an effort to ment in defense payments and changes in meet the needs of their citizens for com- procurement policies that were inaugurated munity facilities and services. during the summer, partly to avoid break- Inflationary trends continued through the ing through the debt ceiling, had an unsummer months of last year. There was an settling effect on business. In September, alarming spread of the belief, not only in nonagricultural employment, which had this country but also abroad, that creeping been at a record level in August, began to inflation under modern economic conditions show signs of slackening. The Board's was a chronic and inevitable condition. Re- index of industrial production declined flecting this view, common stocks, the most slightly. Reflecting these and other develpopular hedge against inflation, rose sharply opments, common stock prices in late Sepin price in July to a level where for the first tember broke through the trading range time in two decades their yields fell below that had prevailed during the past two years. the yields on high-grade bonds. Also, credit With changing attitudes toward the ecodemands generally continued to show great nomic outlook, production and other adstrength, and interest rates were rising. justments that had been occurring for some Large city banks on August 7 raised their months in various lines of activity, includlending rate to prime business borrowers ing some capital goods lines, came to be from 4 to AV2 per cent. In this situation, reappraised by businessmen, investors, and Federal Reserve Bank discount rates, which the public generally. In contrast to earlier were below market rates by a widening mar- indications of strong credit demands, bank gin, were raised in mid-August from 3 to loans to business during early autumn de- ZV2 per cent, thus increasing costs to mem- creased contrary to usual seasonal tendber banks operating on the basis of bor- encies. rowed reserves. The pace of business was maintained for In late summer and early autumn, de- a time despite these uncertainties. By late veloping uncertainties here and abroad be- October, the composite of most recent ecogan to affect the short-term economic out- nomic information suggested that inflationlook. In European exchange markets, ary pressures were abating, and open market widespread expectations of changes in ex- operations were modified to lessen restraint change rates fostered large speculative on bank credit and monetary expansion. movements of funds between European cen- By mid-November, information becoming ters. These expectations in part reflected available, incomplete though it was, indifurther accentuation of inflationary develop- cated that a general downward adjustment ments in some key countries, despite actions was setting in. In response to this change to tighten credit that were taken in various in basic economic conditions, Federal Recountries during the summer. It was not serve Bank discount rates were reduced until late September, after the Bank of Eng- from 3V2 to 3 per cent. land established a 7 per cent discount rate, Since that time, the use of open market that it became clear that key foreign cur- and discount policies has been complemen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN • MARCH 1958 tary. Open market operations have pro- of the timing and vigor of the ensuing recovvided sufficient reserves to permit member ery. In my own view, the underlying banks not only to repay a substantial por- strengths of the economy are many. The tion of their indebtedness to the Reserve inflationary trends seem to have halted be- Banks, but also to accumulate some addition fore creating maladjustments of such seto reserves available for bank credit expan- verity as to lead to a protracted period of liqsion. Discount rates were lowered again uidation and structural realignment in the in mid-January, from 3 to 2% per cent. economy. After not too long a period of At the end of 1957, stock market credit readjustment, healthy revival should set in, to customers of brokers and banks for pur- progressing to new records of economic perchasing and carrying listed securities was formance and new high levels of national less than at midyear and back to the level well being. A great deal depends upon the of early 1955. Thus, the need for using the speed with which needed readjustments are higher level of margin requirements, estab- made. lished in early 1955 to prevent an excessive We are all, of course, well aware that expansion of stock market credit, had reasoning by analogy may be misleading abated. The Board of Governors in mid- and that history does not repeat itself. January reduced margin requirements for Nevertheless, it may be noted that the downpurchasing or carrying listed securities from ward movement from the third quarter 1957 70 to 50 per cent. peak has been reminiscent in many ways System actions have contributed to a of the declines that occurred in 1948-49 marked easing in the credit and capital mar- and in 1953-54. In these two postwar rekets. This is illustrated dramatically by the cessions, lows in activity were reached in very sharp drop in market rates of interest, less than a year from the cyclical peak and the sharpest drop for any comparable period recovery to new high levels of output, deof which I have knowledge. Yields on mands, and employment was rapid and sub- Treasury 90-day bills dropped nearly two stantial. In both recessions, the industrial percentage points—from over 3Vi to a re- production decline was limited to about 10 cent low of \Vi per cent. This adjustment per cent from high to low. With the excepin credit and capital markets is helping to tion of the catastrophic depression of the facilitate and cushion other adjustments in early 1930's, the downward phase of every the economy as well as to strengthen de- cycle since World War I has been over or mands in important areas dependent on virtually over in the course of about a year. credit financing. It is thus, along with other Many basic forces in the present situation Government programs, helping to set the are favorable to hopes for recovery. These stage for recovery in activity and employ- include: ment. (1) Credit and capital market conditions We all share the hope that recession will have already responded to relaxed monetary be moderate and short lived, but it is not policy and are much easier than they were possible to be completely certain about the a few months ago. Other important finanfuture course of economic activity. There cial adjustments have already been made is a range of views currently held regarding or started. Stock yields, for example, have the duration and extent of this recession and adjusted to a more normal relationship with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ECONOMIC POLICY CONSIDERATIONS 255 high-grade bond yields. By borrowing from (6) For the Federal Government, postthe capital market, moreover, business firms war budgets have been dominated by the have been repaying bank debt, thus rebuild- need to cope with critical international ing the liquidity positions of both financing stresses and tensions and to provide adeinstitutions and business enterprises. quate defense under conditions of major (2) Consumer incentives to achieve still scientific advance and rapid technological higher standards of living are strong, and re- change. National security and related probsearch continues to provide new products of lems continue to be urgent. wide consumer appeal. As a group, busi- (7) Insofar as international economic nessmen and consumers continue to have developments are concerned, Western Euconfidence in the long-term growth pros- rope still shows strength. Industrial activpects for our economy. Total retail sales ity, while no longer expanding, has genadvanced in both December and January erally been maintained at or close to record and were well above those a year earlier levels. In general, balance-of-payments despite lower sales of new automobiles. positions have improved although in several (3) Population increase has been main- countries reserves of gold and foreign extained at a rapid pace—the rise of 1.8 per change are not as large as might be desired. cent in 1957 compares with a postwar aver- Outside Europe, however, raw materials age of 1.7 per cent, and hence the market producing countries are facing difficulties is expanding steadily. because of declines in volume and prices of (4) Consumer incomes have shown some their exports. cyclical decline recently, but the decline has been small and moderated by unemploy- A primary uncertainty with respect to the ment compensation benefits. Consumer de- timing of economic revival and renewed mands are supported by a record volume of growth relates to the course of business outfinancial assets, the ownership of which is lays for new plant and equipment. Some widely distributed. Growth in such assets observers view the business capital goods was rapid in 1956 and 1957, while growth boom of the past three years as having proin consumer instalment and mortgage debt, vided a margin of industrial capacity over though not small, was at a much slower prospective demands greater than can be rate than in 1955. The availability and absorbed quickly. These observers tend to terms of mortgage credit have recently be- expect a more protracted period of adjustcome more favorable to borrowers. New ment than took place in the two preceding housing starts increased in January and cycles. were moderately above their low in the This concern may turn out to have been spring of 1957. well founded, but it may be noted that ca- (5) At the State and local government pacity never appears more excessive than level, community demands for schools and in the midst of receding activity. Recovery, teachers, for roads, public buildings, and in due course, can certainly be expected other community facilities are continuing to be accompanied by effective and profitlarge and insistent. Bond issues of State and able use of the economy's capacity to prolocal government authorities have advanced duce and by still further additions to capacto record levels. ity. The important factors working to ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN • MARCH 1958 pand business capital investment in the short lived. Furthermore, there will be the period ahead should not be minimized. The possibility that revival may develop without advance in the technology of production, in renewed inflationary tendencies. Under part the result of the huge investment in re- such circumstances, the task of monetary search of recent years, has been rapid and policy would be to foster such revival and can be expected to continue. Incentives to to encourage resumption of orderly growth. reduce costs, to meet competition, and to If revival in over-all economic activity sustain or improve profitably, are strong. becomes exuberant, however, there will be History shows that our market economy an accompanying danger of resurgence of has cyclical characteristics, and the conse- inflationary pressures. Postwar experience quences of this irregularity in terms of hard- has demonstrated that, in a period of exship and unemployment are of deep concern panding demand, upward pressures on to everyone. When downward readjust- prices and costs can develop quickly. Once ment becomes unavoidable, it is incumbent under way, inflationary movements tend to on business enterprises, financial institu- spread themselves throughout the economy, tions, and labor organizations, as well as not only because of normal market reac- Government generally, to adjust policies and tions, but also because of a variety of instiprograms to foster recovery. We have been tutional arrangements. concerned, for example, at the decline in When contractive tendencies in economic output and employment while prices gen- activity set in, there is always the hazard that erally have been maintained and some prices recession may be deeper and more proeven have risen further. Currently, it may tracted than many anticipate, with a greater be noted, consumer prices reached a new degree of underutilization of manpower and high in November and remained at about industrial resources and with manifest dethat high in December and January. How flationary tendencies. In such an evensoon recession is checked and recovery is tuality, further monetary action would need resumed will be influenced by the rapidity to be considered, both to increase the liquidwith which economic corrections and adap- ity of the economy and to encourage expantations are made in factors beyond the prov- sion of spending financed by credit. Monince of monetary policy, that is to say, in etary policy by itself, however, cannot asbusiness pricing policies, selling practices sure resumption of high-level employment and productive efficiency; in wage bargain- and sustainable economic growth, although ing; in various financing arrangements; and ready availability of credit at reasonable cost in the incentives to consumers to buy. In is an essential ingredient for recovery. the past, price reductions during periods of Those charged with responsibility for nacontraction served to stimulate increased tional economic policies must at all times buying and output and thus to contribute to reckon with the dangers both of inflation general recovery and expansion. Un- and of deflation. The central policy probdoubtedly, lower prices now would prove to lem, in one sense, is to prevent either inhave expansive benefits for economic activ- flationary trends or deflationary trends from ity generally. becoming dominant. Public policies for If needed adjustments are promptly made, one objective or another can have effects the current recession may be moderate and that go far beyond those that are intended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ECONOMIC POLICY CONSIDERATIONS 257 Both fiscal and monetary policies must be ships that unfortunately develop during the carefully formulated to exert enough pres- ensuing contraction. Now that we are in sure or ease but not too much. That is a the contractive phase, we must take whatdifficult task. It is one that you and I both ever actions are needed to minimize the must live with every day, and do the very hardships and to foster vigorous recovery. best we can to reach the judgments and But in so doing we also must recognize that come to the decisions which in the long run excessive stimulus during recession can sow will prove to have been wise. seeds of inflation that can grow to jeopard- As I have said on many occasions, anti- ize our long-run stability and our economic inflationary policies and anti-deflationary strength at a time when as a nation we are policies are inseparably linked. Excesses confronted with a special urgency to mainon the upside must be avoided in order to tain all the productive strength we can musavoid the heavy costs and personal hard- ter on a sustainable basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Extended by Banks to Real Estate Mortgage Lenders Credit extended to real estate mortgage lenders million of the decrease since August. As in preby weekly reporting member banks as of February vious surveys these loans were largely to real 12, 1958 amounted to $1,009 million, $80 million estate mortgage companies. less than reported at the previous survey on Au- The foregoing information was obtained by a gust 14, 1957. Commitments to extend additional special survey of all types of credit extended by credit to these lenders declined $72 million to commercial banks to real estate mortgage lenders. $673 million. Results of earlier surveys have been published in Loans to real estate mortgage lenders secured by the pledge of real estate mortgage loans the September 1957 and earlier Federal Reserve amounted to $728 million and accounted for $47 BULLETINS. CREDIT EXTENDED TO REAL ESTATE MORTGAGE LENDERS BY WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES, FEBRUARY 12, 1958 AND SELECTED PRIOR DATES [In millions of dollars] Increase Outstanding on (or decrease —) Item Aug. 14, Feb. 13, Feb. 12, Aug. 14, Feb. 13, Aug. 10, 1957 to 1957 to 1958 1957 r 1957 1955 Feb. 12, Feb. 12, 1958 1958 Real estate mortgage loans purchased from real estate mortgage lenders under resale agreement, total 181 201 257 338 -20 -75 Insurance companies 39 33 62 235 5 -23 Mortgage companies 84 88 98 90 -4 -15 Otheri 59 79 96 12 -21 -37 Loans to real estate mortgage lenders secured by the pledge of real estate mortgage loans owned by the borrowers, total 728 775 919 982 -47 -191 Insurance companies 4 3 5 11 2 -1 Mortgage companies 673 715 845 911 -41 -171 50 57 68 59 -7 -18 Otheri Loans to real estate mortgage lenders, not secured, or secured other than by the pledge of real estate mortgage loans owned by the borrowers, total 100 114 102 -13 -2 Insurance companies 6 11 3 4 4 Mortgage companies 37 38 43 24 -5 Otheri 57 65 57 60 -1 Total loans to real estate mortgage lenders 1,009 ,089 1,278 1,408 -80 -268 Unused portions of firm commitments to purchase real estate mortgage loans from real estate mortgage lenders with or without resale agreement, or to make secured or unsecured loans to real estate mortgage lenders, total 673 746 788 1,295 -72 -114 Insurance companies 18 66 75 183 -48 -57 Mortgage companies 541 562 581 894 -21 -40 114 118 132 219 -4 -17 Otheri r Revised. commitments at Aug. 8, 1956 and Aug. 14, 1957 were not asked to i Savings and loan associations, mutual savings banks, builders report in other surveys, but their Aug. 8, 1956 figures are included in and other organizations (other than banks) that make or hold sub- Feb. 13, 1957 data, and their Aug. 14, 1957 figures are included in stantial amounts of real estate loans. Feb. 12, 1958 figures for comparative purposes. Details may not NOTE.—Banks reporting less than $1 million of these loans and add to totals because of rounding. 258 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bulletin Subscription Rate For Member Banks The Board of Governors has sent the letter printed below to the presidents of all member banks advising them that the Federal Reserve BULLETIN is now available to member banks and branches at a special annual subscription rate of $2.00. March 7, 1958 As its means of official communication with member banks of the Federal Reserve System, the Board of Governors sends a copy of its monthly Federal Reserve BULLETIN without charge to the head office of each member bank. This it will continue to do. In 1939 the Board adopted the practice of sending a free subscription to the BULLETIN to each branch of a member bank the business of which was sufficiently important to justify the Board in making a copy available to the managing officer of the branch, with a limit of 50 copies to any one member bank. The Board has had occasion recently to reconsider this practice in the light of current conditions and has concluded for a number of reasons that free distribution to branches, both foreign and domestic, should be discontinued after the issue for April 1958. It also concluded, however, that additional subscriptions in such number as each bank might desire, either for branch or head office use, should be made available at a reduced rate. Accordingly, beginning with the May 1958 issue, if your bank wishes to have additional copies of the Federal Reserve BULLETIN, they will be sent in any number desired to either your head office or your branches at a special rate of $2 a year for each subscription payable in advance. This will make the BULLETIN available to all member banks on a uniform basis. As current paid subscriptions expire they will be renewable at this rate. Subscriptions should be sent to the Board of Governors of the Federal Reserve System, Division of Administrative Services, Washington 25, D. C. Paid subscriptions to the BULLETIN at the $2 rate are available only to member banks. In all other domestic subscriptions where a charge is made the regular price of $6 applies. Very, truly yours, S. R. CARPENTER, Secretary. 259 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Reserves of Member Banks (b) 11-1/2 per cent of its net demand deposits. The Board of Governors amended the Supple- 2. If in a reserve city (except as to any ment to Regulation D so as to reduce the reserves bank located in an outlying district of a reserve against net demand deposits required to be maincity or in territory added to such city by the tained by member banks with Federal Reserve extension of the city's corporate limits, which, Banks. The reductions became effective as to by the affirmative vote of five members of the member banks not in reserve and central reserve Board of Governors of the Federal Reserve cities at the opening of business on March 1, 1958, System, is permitted to maintain the reserves and as to member banks in reserve and central specified in paragraph 1 above)— reserve cities at the opening of business on Feb- (a) 5 per cent of its time deposits, plus ruary 27, 1958. There is set forth below the text (b) 17-1/2 per cent of its net demand of the amended Supplement: deposits. 3. If in a central reserve city (except as to SUPPLEMENT TO REGULATION D* any bank located in an outlying district of a Pursuant to the provisions of Section 19 of the central reserve city or in territory added to such Federal Reserve Act and Section 2(a) of its Regucity by the extension of the city's corporate lation D, the Board of Governors of the Federal limits, which, by the affirmative vote of five Reserve System hereby prescribes the following members of the Board of Governors of the reserve balances which each member bank of the Federal Reserve System, is permitted to main- Federal Reserve System is required to maintain on tain the reserves specified in paragraph 1 or 2 deposit with the Federal Reserve Bank of its above)— district: (a) 5 per cent of its time deposits, plus 1. If not in a reserve or central reserve city— (b) 19-1/2 per cent of its net demand (a) 5 per cent of its time deposits, plus deposits. * Changes in this Supplement to implement a further reduction of one-half percentage point in the reserves required against net demand deposits (noted on page 298 of this BULLETIN) will be reported in the April issue of the BULLETIN. APPLICATION OF GENERAL CONTRACT CORPORATION FOR EXEMPTION OF SUBSIDIARIES FROM BANK HOLDING COMPANY ACT The Board of Governors of the Federal Reserve meaning of Section 2(a) of the Bank Holding System on February 10, 1958, issued an Order Company Act of 1956, has filed applications for denying the application of General Contract Cor- determinations by the Board of Governors of the poration for an exemption of certain subsidiary Federal Reserve System that certain subsidiary corporations under Section 4(c)(6) of the Bank corporations, hereinafter named, and their activi- Holding Company Act of 1956. There are pub- ties are of the kind described in Section 4(c)(6) lished below a copy of the Board's Order (Docket of the Bank Holding Company Act of 1956 (12 No. BHC 4-17, 19-27) and accompanying De- USC 1843) and Section 5(b) of the Board's cision and a copy of the Report and Recom- Regulation Y (12 CFR 222.5(b)), so as to make mended Decision of the Hearing Examiner. it unnecessary for the prohibitions of Section 4 of the Act with respect to retention of shares in ORDER DENYING APPLICATIONS nonbanking organizations to apply in order to General Contract Corporation, a Missouri cor- carry out the purposes of the Act. The subsidiary poration, and a bank holding company within the corporations of General Contract Corporation 260 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

261 LAW DEPARTMENT on behalf of which the applications were filed, with Act of 1956 for determinations exempting its the hearing docket number of each, are: shares in the above-named subsidiaries from application of the prohibitions of Section 4(a)(2) of Washington Fire and Marine Insurance Company (BHC-4) the said Act shall be, and hereby are, denied. Insurance Company of St. Louis (BHC-5) This 10th day of February 1958. Midwestern Fire and Marine Insurance Company (BHC-6) By order of the Board of Governors. Securities Investment Company of St. Voting for this action: Chairman Martin, Vice Chair- Louis and its subsidiaries: (BHC-7) man Balderston, and Governors Szymczak, Robertson, Securities Credit Company (Mo.) and Shepardson; voting against this action: Governor Securities Loan Company Mills; absent and not voting: Governor Vardaman. Securities Credit Company (Fla.) Broadway Insurance Agency, Inc. (Signed) S. R. CARPENTER, Securities Insurance Agency, Inc. Davidson Insurance Agency, Inc. Secretary. Investment Insurance Agency, Inc. (SEAL) Craighead Insurance Agency, Inc. Palafox Insurance Agency, Inc. Industrial Loan Company (BHC-8) STATEMENT Industrial Finance Company of Wellston (BHC-9) Springfield Union Finance Company (BHC-10) Background of the Case Quincy Union Finance Company (BHC-11) On December 14, 1956, General Contract Cor- Baden Loan Company (BHC-12) General Contract Loan Company (BHC-13) poration of St. Louis, Missouri, a bank holding SIC Loan Company (BHC-14) company sometimes called herein "Applicant" or General Loan Company (BHC-15) General Contract Loan Company, Inc. (BHC-16) "GCC", filed with the Board of Governors re- General Contract Loan Brokers, Inc. (BHC-17) quests for determinations that twenty-four of its Apex Insurance Agency, Inc. (BHC-19) nonbanking subsidiaries (one of which itself has Jefferson-Gravois Insurance Agency, Inc. (BHC-20) Reid-Kruse, Inc. (BHC-21) nine subsidiaries) are of such a nature as to be St. Louis-Washington Insurance Agency, exempt under Section 4(c) (6) of the Bank Hold- Inc. (BHC-22) ing Company Act of 1956 from the divestment Northwestern Insurance Agency, Inc. (BHC-23) Springfield Insurance Agency, Inc. (BHC-24) requirements of that Act.1 As required by the Quincy Insurance Agency, Inc. (BHC-25) statute, a formal hearing was held on 23 of these Sterick Insurance Agency, Inc. (BHC-26) requests, one of the requests having been with- Texarkana Agency, Inc. (BHC-27) drawn during the course of the hearing after the A hearing having been held pursuant to Section Board had expressed the opinion that the sub- 4(c)(6) of the Bank Holding Company Act of sidiary involved was exempt under other provi- 1956 and in accordance with Sections 5(b) and sions of the Act. The Hearing Examiner's 7(a) of the Board's Regulation Y (12 CFR Report and Recommended Decision was filed 222.5(b) and 222.7(a)); the Hearing Examiner with the Board September 12, 1957. having filed his Report and Recommended Deci- The subsidiaries involved consist of an investsion wherein he recommended that all the above ment company, ten loan companies, three insurrequests be denied; Applicant having filed Excepance companies, and nine insurance agencies. tions and Brief with respect only to requests The attached copy of the Hearing Examiner's numbered BHC-8 and BHC-12; the Board having Report and Recommended Decision describes the given due consideration to all relevant aspects of activities of GCC as well as of these subsidiaries. the matter, including briefs amicus curiae on a The Hearing Examiner recommended that all legal question involved in requests numbered BHC-8 and BHC-12, submitted through the Ap- 1The particular sections of the Act here applicable are: Sec. 4(a) Except as otherwise provided in this Act, no bank plicant by three bank holding companies not holding company shall . . . parties to this matter; and all such steps having (2) after two years from the date of enactment of this Act . . . retain direct or indirect ownership or control of any votbeen in accordance with the Board's Rules of ing shares of any company which is not a bank or a bank holding company .... Practice for Formal Hearings (12 CFR 263): (c) The prohibitions of this section shall not apply .... (6) to shares of any company all the activities of which IT IS HEREBY ORDERED, for the reasons set out are of a financial, fiduciary, or insurance nature and which the Board after due notice and hearing, and on the basis of in the Board's Statement of this date, that the the record made at such hearing, by order has determined to be so closely related to the business of banking or of managing requests of General Contract Corporation under or controlling banks as to be a proper incident thereto and as to make it unnecessary for the prohibitions of this section to Section 4(c)(6) of the Bank Holding Company apply in order to carry out the purposes of this Act .... Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN • MARCH 1958 23 requests be denied. He concluded that, fol- Loan Company (Docket No. BHC-12). Aclowing the principles enunciated in the Board's cordingly, further discussion will deal only with opinion in the Transamerica-Occidental case those two companies. (Docket No. BHC-28), the request as to the in- The Discount Question vestment company should be denied because, while its activities are similar in kind to some of As indicated before, the Examiner concluded the activities of banks, it has no direct functional that exemption should be denied the two loan or operational connection with the bank holding companies in question because the transactions by company's subsidiary banks. The Examiner fur- which a subsidiary bank purchases personal loan ther concluded that the three insurance companies paper from the loan company at a discount and and nine insurance agencies, while also engaged without recourse involve violations of Section in activities somewhat similar to banking, could 6(a)(4) of the Act, which makes it unlawful for not be considered to be a "proper incident" to a subsidiary bank to make any "loan, discount or the banking business carried on by the subsidiary extension of credit" to its bank holding company banks. The Examiner found that five of the ten or to any fellow subsidiary. The exceptions and loan companies were not directly integrated with brief of GCC disagree with this interpreation of the functions of the subsidiary banks, and that Section 6(a) (4), as do also amicus curiae briefs three of them were only partially related to the filed with the Board by three other bank holding business of the banks. companies: First Bank Stock Corporation, Marine As to the remaining two loan companies, the Midland Corporation and Northwest Bancorpora- Examiner concluded that, although functionally tion. The arguments in the different briefs are integrated and operated much as though they largely similar and for convenience all will usually were departments of the banks, they could not be be referred to as those of Applicant. regarded as a "proper incident" to the business of The facts as to the operations of the two loan the banks or consistent with "the purposes of this companies are fully set forth in the Examiner's Act" because the very types of transactions that Report and are not challenged by Applicant. The make the companies "closely related" to the banks key fact for present purposes is that Bank of St. are unlawful under Section 6 of the Bank Hold- Louis, a GCC subsidiary, purchases personal loan ing Company Act. These transactions are the paper at a discount, and without recourse, from sale by the loan companies to the subsidiary banks, Industrial Loan Company (and that Baden Bank, at a discount and without recourse, of notes rep- St. Louis, another GCC subsidiary, makes such resenting personal loans made by the loan com- purchases from Baden Loan Company). In each panies. case, the loan company is operated in effect as GCC did not file exceptions or brief as to 21 of though it were the personal loan department of the 23 companies involved, and under Rule VII the bank; it sells substantially all its loans to the of the Board's Rules of Practice for Formal Hear- bank on the days when made, services such loans, ings (12 CFR 263.7) GCC is deemed to have and serves as the bank's chief source of such abandoned any objections to the Examiner's rec- paper. All functions of the loan company are ommended decision as to those 21 companies performed on the premises of the bank and by (Docket No. BHC 4-7, BHC 9-11, BHC 13-17, bank personnel. The loan company has no sep- BHC 19-27). Therefore, without passing upon arate place of business or paid personnel of its the correctness or incorrectness of the Examiner's own. recommended decision regarding those com- The question turns upon whether the word panies, Applicant's requests as to those companies "discount", as used in Section 6(a)(4), includes are denied. a purchase of paper at a discount but without GCC's exceptions and brief, dated October 14, recourse against the seller. It is conceded by all 1957, and filed with the Board October 15, 1957, that the term "discount" may have several meanrelated only to the Hearing Examiner's recom- ings. Thus it is sometimes used in a restricted mended decision with respect to the two loan sense as applying only to a loan transaction in companies mentioned above, namely, Industrial which the borrower receives a sum of money less Loan Company (Docket No. BHC-8) and Baden than the stated amount of the note given by him. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 263 However, it is also used in a broader sense as in- The Danforth case and some others cited by the cluding a purchase of paper with recourse against Examiner relate to the usury provision of the Nathe seller; and, in a still broader sense, as includ- tional Bank Act (U. S. Rev. Stats., Sec. 5197; 12 ing a purchase of paper even though without re- U.S.C., Sec. 85). As the Examiner indicates, course against the seller. The problem here is to however, the cases holding the word "discount" to determine which of these meanings should be ap- include a nonrecourse purchase of paper are not plied in the present situation, in the light of the confined to those construing that provision. The language and purposes of the law. case of Morris v. Third National Bank of Springfield, supra, held that the corporate authority for Judicial interpretations. In seeking the meaning national banks to purchase paper derives from that Congress intended for the word "discount" in their authority to engage in the "discounting" of Section 6(a)(4) it seems appropriate to see what paper. the courts, particularly the Federal courts, have The provisions construed in these Federal cases said about the meaning of the word. On this are, of course, not identical in language or purpoint the Examiner stated in his Report (p. 283): pose with Section 6(a) of the Bank Holding Com- "Ample judicial authority supports the conclusion— pany Act; but they have in common the fact that in the words of the Third Circuit Court of Appeals— that, 'in the business of banking, "discount" in the they are all Federal statutes that deal with bankordinary acceptance of the term, includes what is ing operations and practices. Moreover, these called "purchase" \24 Moreover, the Federal Courts cases do not turn upon any unusual use of the have interpreted other sections of the national banking laws where the term 'discount' is used as including word "discount" in the statutes being construed; within its scope, not only loans or advances by way on the contrary, as indicated in the Danforth case, of discount of commercial paper, but also the out- 48 Fed. Rep. 271, 274, they constitute judicial right purchase by banks of such paper for an amount less than their face value. Thus it has been held that findings as to "the ordinary acceptance of the the authority of national banks to acquire title to term" and "its usual commercial sense"—findings commercial paper—authority that must stem from an which are highly relevant to the present question. express grant of power or impliedly be deemed prohibited 25—is derived from the statutory corporate In view of these cases holding that the word power given national banking associations under U.S. "discount" in "its usual commercial sense" and in Rev. Stats., Sec. 5136, 12 U.S.C., Sec. 24, to engage in the 'discounting' of 'promissory notes, drafts, bills its "ordinary acceptance" includes nonrecourse of exchange and other evidences of indebtedness.'26 purchases of paper, it would seem that the word Thus, too, the term 'discount' as used in U.S. Rev. Stats., Sec. 5197, 12 U.S.C., Sec. 85, which prohibits should be similarly interpreted in Section 6(a) (4) usury by national banking associations on loans or dis- unless some persuasive reason to the contrary can counts made by them, has been held to include within be shown. Applicant attempts to make such a its scope, not only transactions involving bank loans to the person for whom paper is discounted, but also contrary showing, relying largely on arguments transactions involving bank purchases of third party based upon the context in which the word "dispaper—and this regardless of whether such paper is count" appears. purchased with or without any right of recourse upon the seller.27 Context in which word "discount" appears. Since "24 Danforth v. National State Bank of Elizabeth, Applicant's arguments relate chiefly to the context 48 Fed. Rep. 271, 274. See also Fleckner v. Bank, 8 in which the word "discount" appears in Section 6 Wheat. (U.S.) 338; Morris v. Third National Bank of of the Bank Holding Company Act, all of that Springfield, 142 Fed. Rep. 25, 31 (C.A. 8): cert. den. section is quoted below for convenient reference. 201 U.S. 649, Saltmarch v. Planters & Merchants Bank, 14 Ala. 677; Neillsville Bank v. Tuthill, 4 Dak. 295, 30 N.W. 154, 156; Pape v. Bank, 20 Kan. 440, "BORROWING BY BANK HOLDING COMPANY OR ITS 446; 27 Am. Rep. 183; Salmon Falls Bank v. Leyser, SUBSIDIARIES 116 Mo. 51, 71, 22 S. W. 504, 509; Tracy v. Tal- "Sec. 6. (a) From and after the date of enactment madge, 18 Barb. (N.Y.) 456; Bank v. Savry, 82 N.Y. of this Act, it shall be unlawful for a bank— . . . 291, 302. *<25 First National Bank v. National Exchange Bank, "(1) to invest any of its funds in the capital stock, bonds, debentures, or other obligations of a bank 92 U.S. 122. holding company of which it is a subsidiary, or of "26 Morris v. Springfield National Bank, supra. See any other subsidiary of such bank holding comalso Danforth v. National State Bank, supra, p. 274. pany; "27 Danforth v. National State Bank, supra. Cf. "(2) to accept the capital stock, bonds, deben- National Bank of Gloversville v. Johnson, 104 U.S. tures, or other obligations of a bank holding com- 271; Daniel v. First National Bank of Birmingham, pany of which it is a subsidiary or any other sub- 227 Fed. Rep. (2d) 353, 355 (C.A. 5)." sidiary of such bank holding company, as collateral Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BULLETIN • MARCH 1958 security for advances made to any person or com- the Applicant, consistency and harmony with the pany: Provided, however, That any bank may ac- pattern shaped by the earlier subdivisions demand cept such capital stock, bonds, debentures, or other that Section 6(a) (4) also be construed as applying obligations as security for debts previously con- only to situations where a transaction calls for bank tracted, but such collateral shall not be held for a reliance on the credit or worth of an affiliate. And period of over two years; such reliance, it says, is not involved in the case of "(3) to purchase securities, other assets or obliga- an outright purchase of paper where there is no tions under repurchase agreement from a bank hold- residue of liability on the part of the transferor. (2) ing company of which it is a subsidiary or any It is claimed that Section 6(a) (3) allows by implicaother subsidiary of such bank holding company; and tion the purchase from an affiliate 'of securities, other "(4) to make any loan, discount or extension of assets or obligations' where there is no repurchase credit to a bank holding company of which it is agreement, and it is asserted that the terms 'securities' a subsidiary or to any other subsidiary of such and 'obligations' as therein used are broad enough to bank holding company. cover the purchase of consumer credit paper, thereby in effect limiting the breadth of 'discount' as used in "Non-interest-bearing deposits to the credit of a Section 6(a)(4). (3) It is urged that the coupling bank shall not be deemed to be a loan or advance to in Section 6(a) (4) of the word 'discount' with the the bank of deposit, nor shall the giving of immediate words 'loans' and 'extensions of credit' denotes an credit to a bank upon uncollected items received in intention to have them all understood in the same the ordinary course of business be deemed to be a general sense, as covering only such transactions as loan or advance to the depositing bank. involve the lending or advance of money to an affili- "(b) The provisions of this section shall not apply ate for which the affiliate assumes responsibility for (1) to the capital stock, bonds, debentures, or other repayment." obligations of any company described in Section 4(c)(l) of this Act, or (2) to any company whose The Examiner concluded that these arguments subsidiary status has arisen out of a bona fide debt of Applicant were not sufficient to overcome the to the bank contracted prior to the date of the creation of such status, or (3) to any company whose sub- weight of the cases already mentioned (and the sidiary status exists by reason of the ownership or legislative history which will be discussed later). control of voting shares thereof by the bank as executor, administrator, trustee, receiver, agent, or He stated (pp. 284, 285): depositary, or in any other fiduciary capacity, except " . .. I am not persuaded that to interpret 'diswhere such shares are held for the benefit of all or a count' in Section 6(a)(4) as including a purchase of majority of the stockholders of such bank." commercial paper by way of discount would inject a discordant note in the provisions of Section The Examiner summarized Applicant's argu- 6(a)(3) read as a whole. It seems to me too narrow ments as follows (pp. 283, 284) : a view to say that Section 6(a) was only designed to prevent a bank from relying on the worth or credit "The Applicant argues earnestly, however, that of an affiliated company in the conduct of its banknotwithstanding the broad commercial usage of the ing activities. I think the broader aim of Section term 'discount', Congress in drafting Section 6(a) (4) 6(a), as revealed by all its subdivisions, was to reintended to draw a distinction between, on the one move the danger that a bank holding company might hand, a discount involving a direct loan to an affiliated misuse the resources of a bank it controls to gain an company, or an advance to such affiliate on dis- advantage for itself or other subsidiaries it also concounted third party paper for the payment of which trols. This a holding company might otherwise do by the affiliate assumes liability as an endorser or causing a controlled bank to provide equity or workguarantor, and, on the other hand, a transaction in- ing capital, directly or indirectly, to the holding comvolving a bank's purchase of third party paper at a pany or another subsidiary, or by otherwise financing discount from an affiliate without any right of re- the business operations of such an affiliate. To incourse upon the affiliate. The Applicant concedes terpret 'discount' as used in Section 6(a) (4) in the that Congress intended the prohibitions of Section full sense of that term as established by commercial 6(a) (4) to apply to transactions of the first two types, usage is entirely consistent with that aim. For, obbut not, it contends, to those of the third type. viously, a bank's resources might be used to finance "The arguments upon which the Applicant would the operations of a parent or other affiliated comsupport that position are ably marshalled in its brief. pany just as much through purchase of commercial The main points stressed are, in broad outline, as fol- paper without recourse, as through purchase with relows: (1) It is urged that Section 6(a) (4) may not be course, or by means of a loan against the pledge of read in isolation, but must be read in context with such paper.32 the other subdivisions of Section 6(a). It is claimed that 6(a)(l), prohibiting investments in capital "32 This is aptly illustrated in the case of Industrial stock, bonds, debentures or other obligation of an Finance Co. of Wellston. Before passage of the Act, affiliated company; 6(a)(2), prohibiting the accept- that company obtained working capital for its dealer ance of such capital stock, bonds, debentures or finance activities by borrowing against such paper other obligations as collateral for advances made to from Bank of St. Louis. After such borrowing was any borrower; and 6(a)(3), prohibiting the purchase outlawed by the Act, the company continued to obof securities, other assets or obligations from an tain its working capital from Bank of St. Louis, affiliate under a repurchase agreement—all disclose except that now it sold the paper instead of borrowing a Congressional concern over a bank relying on the against it. The procedure was changed, but the net worth or credit of its parent or fellow subsidiaries result remained the same, except for diminution in in its investment or lending activities. According to the protection to the bank." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 265 "Further, I am not persuaded that a broad con- However, for the reasons outlined below, the struction of 'discount' in Section 6(a) (4) would Board is forced to the conclusion that the Excreate perforce an inconsistency with Section 6(a)(3). Section 6(a)(3) was evidently designed to cover a aminer's analysis is sound and well reasoned, and transaction which is in reality a loan transaction, but that Applicant's arguments fail to give due which takes the form of a purchase and repurchase weight to certain facts that are evident from the agreement. By its terms it spells out a prohibition against a specific type of transaction, and goes no record and basic to operations of banks and bank further. It confers no affirmative right with which holding companies. the 'discount' prohibition, no matter how broadly construed, may be found inconsistent. And even if It is of fundamental importance that Section 6 Section 6(a)(3) may read as reserving by implica- deals with a situation in which there is a lack of tion whatever rights a holding company bank might the usual arm's-length dealing between a bank and otherwise have under the law to make purchases without repurchase agreements, this does not preclude its customer. It is the nature of a holding comthe 'discount' provision of Section 6(a) (4) from pany system, and of the problems at which the being construed as imposing a limitation or restric- Bank Holding Company Act was directed, that tion on such rights. Indeed, such a construction is not only permissible, it is entirely reasonable. It the various units of the group are ordinarily under would both give full meaning to 'discount' in its common control or susceptible to such control. accepted usage and at the same time comport with the ends that Congress sought to achieve, as revealed While such control sometimes may not be exerby the legislative history. . . . Nor would it otherwise cised or may not even exist, it is abundantly clear negate the implication said to be contained in Section that Sections 4 and 6 of the Act are based upon 6(a)(3). This is so because bank discounts, as commonly understood, apply to financial transactions an assumption that it usually is, or can be, exerinvolving notes, bills of exchange and the like, and not cised. It clearly exists in the present case. to a bank's acquisition through purchase of other assets, securities or obligations, such as, for example, It is also important that, as a practical matter, corporate stocks, bonds or debentures. a bank can be used to finance an affiliate as effec- "The Applicant's argument, that the coupling of the tively through discounting (purchasing) paper, word 'discount' with the words 'loan' and 'extension of credit' denotes an intent to have 'discount' apply only either with or without recourse, as through making to transactions that involve loans made by a bank to ordinary loans. In fact, as will be seen later, it is an affiliate, is even less persuasive. The words 'loan' actually easier to use—or misuse—the resources and 'extension of credit' do not have synonymous meanings, . . . and it seems unlikely that Congress of a bank through nonrecourse discounts than would have inserted the word 'discount', which, in through ordinary loans. ordinary usage has a broader meaning than 'loan', In view of these facts, it is difficult to see how had it merely intended that word to cover the same ground and no more. . . ." it can be of any significance that transactions described in clauses (1), (2) and (3) of Section In challenging these views and conclusions of 6(a), or a "loan" or "extension of credit" dethe Examiner, Applicant earnestly and ably rescribed in clause (4), would involve a claim emphasizes the arguments previously made before against the credit or worth of the affiliate while the Examiner and also stresses the fact that Feda nonrecourse purchase of paper from the affiliate eral banking laws sometimes draw a distinction would not. If there is arm's-length dealing, the between recourse and nonrecourse purchases of absence of a claim against the seller of the paper paper. For example, U. S. Rev. Stats., Sec. 5200, may have the effect, as Applicant contends, of 12 U.S.C., Sec. 84, which limits the total loans causing the purchaser to be more cautious in conthat a national bank may make to one borrower, sidering the merits of the paper itself, and may does not count paper purchased without recourse thus provide a basis for exempting nonrecourse as part of loans made to the seller. Applicant paper from some limitations that apply to reargues that the absence of a claim against the course paper, as for example, the National Bank seller of the paper tends to cause the purchaser Act limitations, U. S. Rev. Stats., Sec. 5200 on to be more cautious in considering the merits of loans to one borrower. However, a fundamental the paper, and thus provides an additional safe- purpose of Section 6(a) is to prevent abuses guard. Applicant argues that this not only ex- where arm's-length dealing is lacking. Hence plains the exemption of nonrecourse purchases arguments based on arm's-length situations would from U. S. Rev. Stats., Sec. 5200, but also indi- not seem to be helpful in construing it. The Board cates a Congressional intent to exempt them from is convinced that all of Section 6(a) should be Section 6. viewed as relating to the financing of an affiliate, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDERAL RESERVE BULLETIN • MARCH 1958 with the existence or nonexistence of a claim magnified emphasis upon a single ambiguous word in order to give it a meaning contradictory to the fair against the affiliate being essentially irrelevant; import of the whole remaining language. As was and the Board cannot accept Applicant's argu- said in United States v. Gaskin, 320 U.S. 527, 530, ments based on context. the canon 'does not require distortion or nullification of the evident meaning and purpose of the legislation.' It is also to be noted that Applicant's argu- Nor does it demand that a statute be given the ments based on context rely heavily on the doc- 'narrowest meaning'; it is satisfied if the words are given their fair meaning in accord with the manifest trines of implied exclusion {expressio unius est intent of the lawmakers." exclusio alterius) and meaning by association Legislative history. It seems desirable to review (noscitur a sociis). These doctrines can be of the legislative history of Section 6 and of the addiuse in some circumstances in interpreting statutes tion of the word "discount" in Section 6(a)(4). or other writings. However, it is well recognized It will be seen that this legislative history, like that they are subject to serious limitations, require the considerations already discussed, strongly ingreat caution in their application, and are not apdicates that the word "discount" in Section plied where, as here, they would lead to conclu- 6(a) (4) was intended by Congress to include sions in conflict with the purposes of the statute. nonrecourse purchases of paper. See, for example, authorities gathered at 50 The Examiner was impressed, and we believe American Jurisprudence, pp. 240-41, 243-44; 82 properly so, by the fact that during the Committee Corpus Juris Secundum, pp. 668-70, 655-56. hearings leading to the enactment of the Bank The irrelevance of these doctrines to the pres- Holding Company Act, frequent reference was ent question is evident from the fact, as indicated made to the Bankers Discount Corp. situation as a above, that if the doctrines were applied here flagrant example of the danger of abuse flowing they would result in conclusions in conflict with from self-dealings between bank holding comthe realities of holding company operations. panies and their subsidiary banks. That situation Analysis of the reference to "purchase under reinvolved a Texas finance company that acquired purchase agreement" in Section 6(a) (3) indicates control of two Chicago banks and then, among that the term usually refers to a specialized transother things, caused the acquired banks to puraction which is generally regarded as a form of chase from it at a discount and without recourse loan; that the term probably was used in 6(a) (3) notes of questionable value that it held, resulting out of an abundance of caution to be certain that in a forced temporary closing of the Chicago such transactions were covered; that the phrase is banks. a composite term for which there is no convenient The word "discount" did not appear in the selfsingle word; that the word "purchase" in that dealing provisions of the drafts of the Bank Holdphrase has significance only as part of that coming Company Act that were introduced in Conposite term; and that it would be unrealistic to lift gress before the Bankers Discount situation the word out of the composite term and attempt engaged the attention of Congress. Those earlier to read into it any further significance through the bills (for example S. 1118, and H.R. 12, 83d doctrine of implied exclusion. Cong.) merely referred to "loan or extension of The Board is mindful of the facts, stressed by credit". After the Bankers Discount disclosures Applicant, that violations of Section 6 are misthe word "discount" was added, so that the phrase demeanors; that criminal statutes are to be strictly read "loan, discount or extension of credit", as in construed in favor of the defendant; and that, Section 6(a)(4) of the final Act. (H.R. 2674, therefore, their language cannot be enlarged to H.R. 6227, S. 880, S. 2577, 84th Cong.) encompass prohibitions beyond its ordinary mean- In reporting out the bill in 1955, the House ing. As indicated above, however, the usual Banking and Currency Committee described the meaning of the word "discount" appears to include Bankers Discount situation at length and stated nonrecourse purchases of paper. As the Supreme (H. Rep. 609, pp. 18-19, 84th Cong.) as a reason Court of the United States said in United States v. for including the self-dealing provisions that: Brown, 333 U.S. 18, 25-26: " . .. to fail to prohibit self-dealing between bank ". . . The canon in favor of strict construction is not holding companies and their subsidiary banks would an inexorable command to override common sense be to invite a repetition of the [Bankers Discount] and evident statutory purpose. It does not require situation. . . ." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

267 LAW DEPARTMENT The Report of the Senate Banking and Cur- selling them consumer paper without recourse. rency Committee did not specifically mention the It is not surprising that such an overwhelming Bankers Discount situation. However, the Sen- proportion of the banks' financing of the parent ate Committee appeared to share the House's finance company in that situation took the form of concern, as shown by the following passage from nonrecourse purchases of paper. As indicated its Report (S. Rep. 1095, p. 4, 84th Cong.): above, a national bank is subject to a general " . .. fear has been expressed that, improperly limitation, with some exceptions, against lending but within the present law, a bank holding company more than 10 per cent of the bank's capital and may take undue advantage of one or more banks in surplus to one person. (U.S. Rev. Stats., Sec. 5200; its system. This it might do by discounting commercial paper at the bank with resulting profit to the 12 U.S.C., Sec. 84) Most State banks are subbank holding company but at an unwarranted risk to ject to similar "legal lending limits", even though the bank or its shareholders. No widespread abuse the percentages vary. These limitations substanof this nature has been brought to the attention of your committee, but the provision in the bill prohibit- tially curb the ability of an affiliate to abuse the ing upstream lending should adequately prevent the resources of a bank through direct loans—as indipossibility of any such abuse." (Emphasis supplied.) cated above, the House Committee Report stated This legislative history of Section 6(a) and of that $135,000 was the banks' "legal lending limit". the addition of the word "discount" shows, in However, since a nonrecourse sale of paper does the words of the Committee Reports, that the sec- not involve a debt from the seller to the bank, the tion was intended to "prohibit self-dealing between statutes limiting the aggregate liability of one perbank holding companies and their subsidiary son to the bank are ineffective to prevent an affilibanks", that it reflected a fear that "a bank holding ate from using—and misusing—a huge proportion company may take undue advantage of one or of a bank's resources through such nonrecourse more banks in its system", and that it was intended sales. (As previously indicated, if there is arm'sto "prevent the possibility" that "by discounting length dealing between bank and customer, the commercial paper at the bank" the holding com- absence of a claim against the seller may act as a pany may cause "unwarranted risk to the bank". safeguard by forcing the bank to give greater In other words, the legislative history indicates that attention to the safety of the paper itself; but in in Section 6(a) Congress was interested only in- a holding company situation, lack of arm's-length directly, if at all, in the question of whether or not dealing removes that safeguard.) a transaction results in a bank's receiving a claim In the circumstances, it is clear that nonrecourse against an affiliate, and that the direct and imme- purchases were far more important than direct diate Congressional purpose in enacting Section loans as a source of abuse in the Bankers Discount 6(a) was to forbid transactions in which there is a situation. It is reasonable to believe that Consubstantial possibility of a bank's resources being gress, in following up its expressed concern over misused by an affiliate. the kinds of abuses possible in such situations, Applicant points out that the Bankers Discount would most likely have been at least as much situation involved both direct loans to affiliates interested in preventing the major abuse as in and nonrecourse purchases of paper from them. preventing the relatively less serious ones. Applicant argues from this that the statements in In this connection it is to be noted that the the Committee Reports related to the prohibitions provisions in the House and Senate bills relating in Section 6 against direct loans. However, it is to the present question were substantially identical. clear that in the Bankers Discount situation non- As a practical matter, recourse and nonrecourse recourse purchases were by far the more impor- purchases of paper, which the Board concludes to tant of the two abuses of the banks' resources. be covered in Section 6(a) (4), and purchase of The House Committee Report on the Bank Hold- various assets under repurchase agreement, which ing Company Act, in discussing the Bankers Dis- are covered by Section 6(a)(3), are virtually the count situation, indicated {supra, p. 18) that the only forms of purchases in which there would be finance company obtained from the two banks substantial opportunity for an affiliate to abuse $135,000 in the form of loans—"the amount of the assets of a bank. Banks can and do make the banks' legal lending limit", compared with other purchases, but they are relatively infrequent more than $3,000,000 obtained from them by (such as bank premises), or relatively small in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 FEDERAL RESERVE BULLETIN • MARCH 1958 amount (such as office supplies), or already sub- It certainly can be argued that such a prohibiject to substantial safeguards against abuse (such tion, particularly as between banks, is unnecessary as investment securities). or undesirable as a matter of policy. When the It seems significant that in actual practice, if Bank Holding Company Act was being considered nonrecourse purchases of paper are included in by Congress, the Board of Governors of the Fed- Section 6(a) (4), then all major methods by which eral Reserve System recommended that all of the a holding company can misuse a subsidiary bank's provision that became Section 6 be omitted from resources are covered, and the expressed Congres- the bill as "unnecessarily restrictive". (Hearings sional purpose to prevent such misuse would be before Subcommittee of the Senate Committee on substantially accomplished. On the other hand, Banking and Currency on S. 880, S. 2350, and an interpretation which would exclude nonre- H.R. 6227, p. 79, 84th Cong. 1st Sess.) The course purchases would leave open a large and Comptroller of the Currency expressed similar important area of possible abuse, and would mean objections to the section. (Hearings, supra, p. 86) that in practical effect Congress had failed to carry On the other hand, the Chairman of the Federal out its stated purpose. Deposit Insurance Corporation endorsed the "pur- Applicant points out that the Chairman of the pose of the provisions" (Hearings, supra, p. 100), Federal Deposit Insurance Corporation stated be- stating that "we would urge that the provisions fore the Subcommittee of the Senate Banking and concerning restrictions on self-dealing be extended Currency Committee (Hearings before Subcom- either in this or in other legislation to banks mittee of the Senate Committee on Banking and whether independently owned or part of a holding Currency on S. 880, S. 2350, and H.R. 6227, p. company." 100, 84th Cong. 1st Sess.) that: Such considerations of policy relate more to " . .. there is no restriction in either of the bills the advisability or inadvisability of legislation than against the purchase or sale of assets among the units to its interpretation. Having weighed these conof a holding company. ..." siderations, Congress included Section 6 in the However, there is nothing to indicate that the Act; and even under the narrow interpretation of Committee agreed with his view, and it appears, "discount" urged by Applicant, the section clearly as explained above, that the Committee disagreed. imposes substantial prohibitions on the movement He urged that restrictions on purchases by banks of funds within bank holding company groups. from their managements should apply to all banks These prohibitions in Section 6 are considerably and not merely those in holding company groups, more stringent than the limitations in Section 23A and also that they should apply to downstream as of the Federal Reserve Act on dealings between well as upstream dealing. After his testimony, the member banks of the Federal Reserve System and Senate Banking and Currency Committee, in retheir affiliates. (12 U.S.C., Sec. 371c) porting out the bill, not only made the statement For example, Section 6 exempts noninterestquoted above on p. 267 that ". . . the probearing deposits but expressly prohibits all direct vision in the bill prohibiting upstream lending loans between banks in the same holding company should adequately prevent the possibility of any group, even though such loans are frequently such abuse [of a bank by its holding company]," made between banks. Such being the case, it but also continued with the statement that: would not seem reasonable to assume that Con- "This provision, in part at least, is in accordance gress was unwilling to prevent other transactions with the recommendations of Mr. H. Earl Cook, Chairman of the Federal Deposit Insurance Corpora- which, as indicated before, are even more susception who testified against permitting either upstream tible to the kinds of abuses that Congress, for or downstream dealing." reasons that it deemed sufficient, was seeking to Possible interference with usual banking operations. prevent. Applicant, and particularly the holding companies Applicant has directed the Board's attention to who filed amicus curiae briefs, stress the fact that the statement in the House Committee Report (H. if Section 6(a)(4) is construed as applying to Rep. 609, p. 25, 84th Cong.) that: nonrecourse purchases of paper it will interfere with a large volume of transactions between banks "Routine banking transactions between subsidiary banks are not treated as extensions of credit and do in the same holding company system. not fall within the prohibitions of this section." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 269 However, this statement cannot affect the present at an amount less than the principal amount of the question, since it plainly refers only to the specific paper—appears to be untenable. As indicated exemption in the last paragraph of Section 6(a) above on p. 263, the judicial interpretations (quoted above on p. 264) and could not be ex- of the word "discount" show that the term is used tended beyond that exemption without a direct very broadly. In practice the term "bank disconflict with several portions of Section 6. In fact, count" is applied broadly to transactions by which the limited exemptions contained in this last para- a bank computes interest in advance so that there graph of Section 6(a) and in Section 6(b) tend is the possibility of compound interest, and it to emphasize the fact that other transactions are seems that any purchase of paper is a "discount" not exempt if they fall within the usual meaning in that sense since it permits such advance compuof the other provisions of Section 6(a). tation and compounding. Prentice-Hall Encyclo- It may be noted, however, that when one bank pedic Dictionary of Business (1952) defines seeks participation by another bank to aid in "Bank discount" (p. 79) as: meeting the credit needs of a borrower, there "The interest charge made by a bank for converting would seem to be no conflict with Section 6 if the commercial paper into cash before maturity. Bank second bank joined at the outset in making its discount is computed as simple INTEREST on the amount due at maturity on a note or draft and is portion of the loan, since this would not involve deducted in advance. ..." the second bank in either a direct loan to the first After giving this definition, the article explains bank or a purchase of paper from it. This would how bank discount is computed on noninterestseem to permit at least a partial solution of the bearing paper and also how it is computed on problems involved in participations. interest-bearing paper, indicating that bank dis- Certain other considerations. Applicant offered count can apply to both. certain other arguments that have not been dis- It is to be understood, of course, that the purcussed above. They were carefully considered, chases referred to here are purchases of paper— and although they do not alter the Board's conpromissory notes, bills of exchange and the like. clusion in this matter some of them are outlined As the Examiner indicated (p. 285) bank disbelow, together with certain related considerations. counts as commonly understood do not apply "to Applicant argues that the term "discount" could a bank's acquisition through purchase of other not include purchases unless they are "at a disassets, securities or obligations, such as, for excount"; that this means it could not include purample, corporate stocks, bonds or debentures." chases unless they are for less than the principal Another argument made by Applicant is to the amount of the paper; that by simply making notes effect that Federal legislation since about 1900 interest-bearing in form instead of noninteresthas not used the term "discount" to include the bearing (for example, a promise to pay $100 plus nonrecourse purchase of negotiable paper and 6 per cent interest at the end of a year, instead of that this indicates the word was not intended to a promise to pay $ 106 at the end of a year), transinclude such purchases in Section 6. However, actions could readily be arranged so that purchases the contention does not appear to be sound. Even would not be "at a discount"; that this would easily if the examples cited by Applicant were so extenpermit nonrecourse purchases to evade Section 6 sive as to preclude the possibility of any different even if the term "discount" were held to include usage in Congressional legislation since 1900, nonrecourse purchases; and that, therefore, the which they do not appear to be, there is the further term should not be construed to include nonrefact that the legislation Applicant quotes merely course purchases. uses the word "purchase" or "sell" in addition to The transactions in the present case are clearly the word "discount" in some connections, and this "at a discount" and the Examiner's Report natwas true even in the legislation considered in the urally noted the fact. However, Applicant's argu- Danforth case and other cases discussed above on ment based on this fact, and on the Examiner's p. 263. references to it, contains several defects. Without attempting to discuss all of them, it may be noted Conclusions that Applicant's major premise—namely, that the For the reasons discussed above, the Board term "discount" is limited to purchases of paper concludes as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN • MARCH 1958 (1) The Hearing Examiner having recom- to any other subsidiary of such bank holding company." mended denial of Applicant's requests numbered BHC 4-17 and BHC 19-27, and Applicant having I am compelled to dissent from the Board's defiled exceptions and brief only to the recom- cision on applications BHC-8 and BHC-12 for mended denial of requests numbered BHC-8 and the reason that, in my view, the term "discount", BHC-12. Applicant is deemed to have waived as used in Section 6(a)(4) of the Bank Holding objections, if any, to the Hearing Examiner's rec- Company Act, relates to transactions in which ommended denial of the remaining 21 requests. the seller of obligations (notes, conditional sale (2) The transactions by which Bank of St. contracts, and the like) assumes liability thereon Louis purchases paper from Industrial Loan Com- —as ordinarily stated, "sells with recourse"—and pany (BHC-8), and by which Baden Bank, St. does not cover transactions that do not give the Louis, makes such purchases from Baden Loan purchaser of paper any such rights against the Company (BHC-12), violate the prohibition in seller. Section 6(a)(4) of the Bank Holding Company The majority Statement. The majority Statement Act against a bank's making any "loan, discount relies principally on certain judicial decisions that or extension of credit" to its parent or fellow sub- have interpreted "discount" in other connections, sidiary. In view of this conflict with Section on the so-called "legislative history" of the Bank 6(a)(4), these loan companies cannot be con- Holding Company Act, and on arguments that sidered to qualify for exemption under Section the interpretation they adopt will more effectively 4(c)(6). This being dispositive of the question, guard against the dangers of "self-dealing" within the Board does not pass upon whether or not a bank holding company system. these companies could otherwise qualify for such If Section 6 itself were neutral on this question, exemption. I agree that such considerations would be entitled (3) The requests of General Contract Corpora- to considerable weight. However, it is my undertion numbered BHC 4-17 and BHC 19-27 for standing that the meaning of a statutory provision exemption under Section 4(c)(6) from the pro- is to be drawn, if possible, from the language of hibitions of Section 4(a) (2) of the Bank Holding the provision itself. If the statute, on its face, Company Act should be denied, and IT IS SO clearly supports one meaning and refutes its ORDERED. opposite, the latter may not properly be adopted simply because, in the opinion of an administra- Dissenting Statement of Governor Mills tive agency, it might have been wise for the legis- Under Section 4(c)(6) of the Bank Holding lature to have so provided and because the Company Act and Section 5(b) of Federal Re- legislative committee heard testimony that might serve Regulation Y, the Board of Governors may have supported such a provision. not make the determination requested by Appli- However, even if the factors relied upon by the cant unless each company involved is "a proper majority were entitled to primary weight, I quesincident" to the banking activities of the GCC tion whether those factors, as they apply to this holding company system. I agree, of course, that case, strongly support their decision. I am not if the relationship of these companies to GCC's satisfied that the judicial interpretations of "disbanking activities consists of transactions that are count" in other connections, referred to in the prohibited by the Holding Company Act, such majority Statement, are particularly persuasive in companies cannot be "proper incidents" to the this matter. In the first place, it is my undersystem. Accordingly, the crucial question is standing that "discount" has been interpreted more whether the transactions described in the majority often than not as referring to purchase with re- Statement—purchases of personal loan paper by course against the seller and excluding purchase GCC banks from affiliated loan companies at a without recourse. Furthermore, interpretations discount, without recourse against the seller—are of a word in quite different contexts—in statutes within the coverage of Section 6(a)(4) of the Act, dealing with different problems and aimed at difwhich forbids a holding company ferent objectives—are entitled to relatively little weight. "to make any loan, discount or extension of credit to a bank holding company of which it is a subsidiary or Likewise, I am not satisfied that the history of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

271 LAW DEPARTMENT the Act discloses a clear legislative intention to quires that "discount" be interpreted to exclude the include purchases without recourse in the purview purchase of paper on a nonrecourse basis. of Section 6(a)(4). That problem, admittedly, Section 6(a)(3) forbids a holding company bank was present in the Bankers Discount case, which " . .. to purchase securities, other assets or obligawas mentioned at a Committee hearing in 1953, tions under repurchase agreement from a bank holding company of which it is a subsidiary or any other but there is no affirmative evidence that any comsubsidiary of such bank holding company." mittee, or Congress itself, acted to prohibit purchases without recourse. On the contrary, as the Obviously this provision has to do with situations majority Statement indicates, the Senate Banking in which a holding company bank might purchase Committee was specifically informed by H. Earl real property, tangible personal property, bonds, Cook, Chairman of the Federal Deposit Insurance debentures, other securities, or other obligations Corporation, that the proposed law, with the word from other corporations in the holding company "discount" therein, would not prohibit such trans- system. In Section 6(a)(3) Congress has foractions. * bidden a holding company bank to make such purchases from related corporations "under re- Provisions and purposes of Section 6(a). But even purchase agreement" and by clear implication has if I were satisfied, which I am not, (1) that "disnot forbidden such purchases where there is no count" is usually interpreted to include purchases repurchase agreement—that is, where the bank without recourse, (2) that the legislative history simply pays a certain amount for the asset, with reveals a committee intent to cover such transno further claim upon the seller. I understand actions, and (3) that such coverage would be that the majority of the Board does not dispute advisable as a matter of policy, I should still feel this. compelled to interpret "discount" in Section But if Congress had intended, by Section 6(a), 6(a)(4) to exclude purchases without recourse, "generally to remove the danger that a bank in view of the Congressional intent that is disholding company might misuse the resources of closed by the terms of Section 6 itself. a bank it controls to gain an advantage for itself The majority Statement meets this crucial issue or other subsidiaries" (as the majority contend), by adopting (p. 264) the following statement this "broader aim" could have been effectuated from the Hearing Examiner's Report: very simply by a general prohibition against hold- " . .. the broader aim of Section 6(a), as re- ing company banks' purchasing assets from other vealed by all its subdivisions, was to remove the corporations in the system. If a holding company danger that a bank holding company might misuse the resources of a bank it controls to gain an advan- owned a building, or office machinery, or securities tage for itself or other subsidiaries it also controls." lacking a ready market, presumably it could "misuse the resources of a bank it controls" by If it were true that "all . . . subdivisions" of Secselling such assets to the bank at excessive prices. tion 6(a) did reveal the alleged "broader aim", However, despite this possible argument for a I agree that the Board would be justified in intermore restrictive prohibition, Congress did not preting "discount" to include the purchase of generally forbid a holding company bank to purpaper on a nonrecourse basis. However, if the chase assets from its affiliates; it prohibited such provisions of Section 6(a) do not reveal such a purchases only when they were made "under re- Congressional aim, the Board may not interpret purchase agreement". "discount" in that manner simply because it con- It is particularly significant that this distinction siders that this would have been a wise Congreswas drawn in Section 6(a) (3) not by an omission sional aim in enacting Section 6(a). For the that failed to cover the nonrecourse area, but by reasons hereinafter set forth, it appears to me that the affirmative inclusion of specific words ("under Congress did not reveal the alleged broad aim in repurchase agreement"). If Congress had merely Section 6(a), but on the contrary revealed affirmafailed to include words covering the area in questively a narrower objective, regard for which retion, it could now be argued plausibly that there was a legislative oversight that should not * It is significant that Mr. Cook, who pointed this out in his prepared Statement to the Committee, was the sole witness control the interpretation of cognate provision— cited in this connection by both the Senate and House Committees. See H. Rep. 609, p. 18, 84th Cong.; S. Rep. 1095, namely, Section 6(a) (4). But Congress did not p. 4, 84th Cong. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN • MARCH 1958 simply fail to deal with the nonrecourse area; it tive meaning that markedly differs from the assoenacted specific words—which otherwise would ciated words. Applying this principle to the inhave been entirely unnecessary—to make clear stant case, it is clear that "loan" and "extension of that purchases in which the seller assumed no credit" are words that import reliance upon the continuing liability were not prohibited. credit of, and obtaining a contractual claim It appears to me that this unquestionable ex- against, the person to whom the loan or extension pression of Congressional intent in Section of credit is made. The use of "discount" in this 6(a) (3) must control the interpretation of "dis- context suggests that it was meant in a similar count" in Section 6(a) (4), unless we are prepared sense. to take the position that Congress explicitly The above-quoted sentence seems to say that a adopted one position in Section 6(a) (3) and then broad interpretation of "discount" is called for in the next subparagraph tacitly adopted a conflict- because otherwise that word would "cover the ing and inconsistent position. In Section 6(a) (3), same ground and no more" than does the adjacent Congress has deliberately drawn a distinction be- word "loan". But I have two difficulties with this tween recourse purchases and nonrecourse pur- approach. In the first place, the Bank Holding chases—the former are prohibited; the latter are Company Act is not a statute in which Congress not prohibited. It seems unreasonable, and con- carefully avoided the inclusion of any words that trary to the principle of statutory construction might be unnecessary. Some redundancy appears that provisions of a law should be interpreted in a at various places in the Act; two examples may harmonious manner, to interpret "discount" in suffice. In Section 2(a)(A) reference is made to Section 6(a) (4) as prohibiting nonrecourse pur- "ownership or control of shares in a fiduciary chases of a certain type, when Congress took capacity" and in Section 3(a) (A) the reference pains to indicate in Section 6(a)(3), with definite is to "shares acquired by a bank ... in good faith language directed at the point, that nonrecourse in a fiduciary capacity"; but in Section 6(b)(3) purchases of a comparable type are not prohibited. the wording is "ownership or control of voting shares ... by the bank as executor, administrator, Wording of Section 6(a)(4). The briefs submitted trustee, receiver, agent, or depositary, or in any by the holding companies in this matter present other fiduciary capacity". It is clear that Conseveral additional reasons, some of considerable gress had in mind the same coverage in all three force, for construing "discount" in Section provisions but in one—perhaps unnecessarily—it 6(a)(4) to exclude purchases of paper on a nonenumerated the more important fiduciary activrecourse basis. I shall not attempt to marshal ities. all of these arguments. However, I wish to men- Even more in point is the fact that in Section tion particularly the circumstance that "discount" 6(a)(4)—the provision directly involved in this was placed between "loan" and "extension of matter—Congress referred to "any loan . .. or credit". The majority statement disposes of this extension of credit". The term "extension of point by the following sentence (on page 265): credit" is very broad and unquestionably covers "The words 'loan' and 'extension of credit' do not every "loan" in addition to extensions of credit by have synonymous meanings, . . . and it seems unother means. Therefore, since Section 6(a)(4) likely that Congress would have inserted the word 'discount', which, in ordinary usage has a broader is patently redundant in its inclusion of "loan" meaning than 'loan', had it merely intended that (and the majority does not attempt to give that word to cover the same ground and no more. ..." word a special meaning to avoid the redundancy), It is my understanding that, in the interpreta- there is no justification for specially shaping the tion of statutes, the meaning of an ambiguous interpretation of the next-following word ("disword may be clarified by the meaning of other count") for the purpose of avoiding redundancy. words with which it is associated in series; if the In addition, however, I do not concede that word in question has several meanings, one of interpreting "discount" to exclude purchases withwhich accords with the meanings of the associated out recourse would give that word the same words, that meaning is preferred to an alterna- meaning as "loan". The latter term usually means Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 273 a direct advance to the maker of a promissory note Holding Company Act to prohibit outright pur- (or other primary obligor). A transaction in chases (that is nonrecourse purchases). which a bank purchases outstanding instruments In my opinion, Congress sensibly could have from a finance company ordinarily would not be decided that purchases in that category did not described as a "loan", so that—even if redun- call for outright prohibition. Such purchases are dancy had to be avoided at all cost in our inter- a matter for close scrutiny under sound principles pretation of the Act—it cannot correctly be said of bank supervision and examination, and consethat "discount" adds nothing to "loan" unless the quently Congress could have decided that the former is construed to cover purchases on a non- dangers of misuse were not so great as to justify recourse basis. an absolute prohibition of a widely used and recognized banking practice. I do not believe Con- The approach of the preceding paragraph suggress contemplated that the Holding Company gests what is to me the most reasonable explana- Act would be interpreted as interfering with nortion of the insertion of "discount" in Section mal banking relationships and operations, except 6(a)(4). It is conceded by all that, before that to the extent clearly required by its provisions. word was inserted, all provisions of Section 6(a) Elsewhere in the Act Congress exempted variwere directed at advances by holding company ous matters from specific coverage because they banks that involved reliance on the credit or came within the scope of bank chartering, branch worth of an affiliated corporation. With the authorization, supervision and examination, and Bankers Discount incident in mind, the draftsman therefore did not need to be covered also by holdmight well have inserted "discount", perhaps with ing company legislation. For example, Section 3 excessive caution, in order to guard against the forbids a bank holding company (1) to acquire possibility that "loan" and "extension of credit" the assets of a bank outside of its own State, or might be interpreted to mean only advances to (2) to do so within its own State without the a primary obligor and not to include situations in approval of the Federal Reserve Board. A specific which a holding company bank extended credit to exemption is provided, however, with respect to an affiliate by purchasing from it the paper of such acquisitions by a bank subsidiary of a holdthird persons supported by its endorsement or ing company, for the reason that such absorptions guarantee. In this connection, I think we should generally are subject to control by the bank charhesitate to conclude that, by the mere insertion of tering and examining authorities, and Congress the word "discount" with no special comment considered it unnecessary to impose additional whatsoever, Congress intended to change the basic prohibitions and requirements under the Holding theory of Section 6(a) from a provision aimed at Company Act. Likewise, despite the fact that intra-holding-company-group borrowing (and sim- Section 4 generally prohibits holding companies ilar transactions) to one which covered not only from acquiring shares of nonbanking corporations, that field but also the field of purchases involving Section 4(c)(3) permits such acquisitions from a no reliance on the credit or worth of the affiliate subsidiary that "has been requested to dispose of from which the purchase was made. Here we such shares by any Federal or State authority encounter again the force of the argument that having statutory power to examine such sub- Congress made very clear in Section 6(a) (3) that sidiary"; here again Congress recognized the it intended not to cover outright purchases where responsibility of bank supervisory authorities by the seller did not assume responsibility. providing a specific exemption to enable them Role of supervisory authorities. As previously more freely and effectively to exercise their authormentioned, the wisdom of Congressional action is ity with respect to the soundness of the commernot the concern of an agency in its administra- cial banking system. tion and interpretation of Federal legislation. In the same way, it appears to me entirely However, the decision of the majority in this case proper to infer from Section 6(a) a legislative apparently rests in part on the idea that Congress intent to prohibit actual extensions of credit bewould have been acting in an unreasonable man- tween the units of a bank holding company sysner if it had not intended Section 6(a) of the tem, but to continue to leave to the judgment and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN • MARCH 1958 decision of the supervising and examining agencies The nonbanking subsidiaries involved in the respective exemption request and the docket number the matter of outright purchases of personal-loan assigned by the Board to each such request are set and other paper. When Congress dealt with the out below: same subject in the Banking Act of 1933, it left Washington Fire and Marine Insurance this area of banking activity to the ordinary proc- Company (BHC-4) Insurance Company of St. Louis (BHC-5) esses of bank supervision (see Section 23A of the Midwestern Fire and Marine Insurance Federal Reserve Act), and there is no convincing Company (BHC-6) evidence that Congress did not adhere to that Securities Investment Company of St. Louis and its subsidiaries: (BHC-7) philosophy in the Bank Holding Company Act Securities Credit Company (Mo.) of 1956. Securities Loan Company Securities Credit Company (Fla.) Broadway Insurance Agency, Inc. In his Report the Hearing Examiner indicated Securities Insurance Agency, Inc. (p. 285) that, except for his adverse conclusion Davidson Insurance Agency, Inc. Investment Insurance Agency, Inc. on the crucial "discount" question, he would Craighead Insurance Agency, Inc. have found that the two loan companies involved Palafox Insurance Agency, Inc. in applications BHC-8 and BHC-12 were (in the Industrial Loan Company (BHC-8) words of Section 4(c)(6)) Industrial Finance Company of Wellston (BHC-9) "so closely related to the business of banking or of Springfield Union Finance Company (BHC-10) managing or controlling banks as to be a proper in- Quincy Union Finance Company (BHC-11) cident thereto and as to make it unnecessary for the Baden Loan Company (BHC-12) prohibitions of [Section 4] to apply in order to carry General Contract Loan Company (BHC-13) out the purposes of" the Bank Holding Company Act. SIC Loan Company (BHC-14) General Loan Company (BHC-15) I agree with the Hearing Examiner's views on this General Contract Loan Company, Inc. (BHC-16) General Contract Loan Brokers, Inc. (BHC-17) point and I do not regard the "discount" provision Apex Insurance Agency, Inc. (BHC-19) of Section 6(a)(4) as a bar. Consequently I Jefferson-Gravois Insurance Agency, Inc. (BHC-20) conclude that the Applicant is entitled to favor- Reid-Kruse, Inc. (BHC-21) St. Louis-Washington Insurance Agency able determinations by this Board, pursuant to Inc. (BHC-22) Section 4(c)(6), with respect to the two enu- Northwestern Insurance Agency, Inc. (BHC-23) merated applications. Springfield Insurance Agency, Inc. (BHC-24) Quincy Insurance Agency, Inc. (BHC-25) Sterick Insurance Agency, Inc. (BHC-26) REPORT AND RECOMMENDED DECISION Texarkana Agency, Inc. (BHC-27)2 Statement of the Case On January 22, 1957, the Board ordered that a On December 14, 1956, General Contract Cor- consolidated hearing be held on the aforesaid reporation, herein called the Applicant, and at times quests in accordance with the provisions of Section GCC, filed with the Board of Governors of the 4(c)(6) of the Act and Sections 5(b) and 7(a) of Federal Reserve System, herein called the Board, 24 the Board's Regulation Y [12 CFR 222.5(b), 222.7(a)] separate requests, covering 33 subsidiary corpora- promulgated under the Act. Notice of the Applicant's tions, that the Board determine, pursuant to Section requests for such determinations and of the order 4(c)(6) of the Bank Holding Company Act of 1956, directing a hearing thereon was published in the 70 Stat. 133, herein called the Act, that the shares Federal Register on January 26, 1957 [22 Federal held by the Applicant directly or indirectly in such Register 528]. The notice as published provided, subsidiary corporations are exempt from the pro- inter alia, that any person desiring to give testimony visions of the Act prohibiting the retention by a bank might file a request for that purpose with the Board. holding company of any voting shares of a non- Pursuant to the aforesaid order and notice, a hearbanking company.1 ing was held at St. Louis, Missouri, at various dates between February 18 and May 1, 1957, before the 1 The particular sections of the Act here applicable are: undersigned, Arthur Leff, a hearing examiner duly Sec. 4(a) Except as otherwise provided in this Act, no bank selected by the Civil Service Commission in accordholding company shall .... ance with the provisions of Section 11 of the Adminis- (2) after two years from the date of enactment of this Act . . . retain direct or indirect ownership or control of any trative Procedure Act (5 U.S.C. 1010) and thereafter voting shares of any company which is not a bank or a bank duly designated by the Board to conduct the hearing holding company . . .. in this proceeding. The Applicant and the Board— (c) The prohibitions of this section shall not apply— the latter in a nonadversary capacity—were repre- (6) to shares of any company all the activities of which are of a financial, fiduciary, or insurance nature and which the Board after due notice and hearing, and on the basis of 2An additional exemption request, covering Investment Comthe record made at such hearing, by order has determined to pany of St. Louis and docketed as BHC-18, was withdrawn be so closely related to the business of banking or of managing during the course of the hearing, with the explanation that or controlling banks as to be a proper incident thereto and as the Board had issued an opinion that that company was exempt to make it unnecessary for the prohibitions of this section to from the divestment requirements of the Act under another apply in order to carry out the purposes of this Act; . . .. section. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 275 sented at the hearing by counsel, and were afforded (b) All the stock in 10 mainly one-office small full opportunity to be heard, to examine and cro°s- loan and finance companies which are engaged in examine witnesses, to introduce evidence bearing on the business of purchasing instalment paper from the issues, and to file briefs and proposed findings. various kinds of dealers and in making or arranging Leave was granted to Ben Du Bois, secretary of the for small loans to individuals. These companies are Independent Bankers Association, and to William L. located in eight cities in five States. Gregory, representing Associate Bankers of St. Louis (c) All the voting stock of one insurance company and St. Louis County, to appear as witnesses. At the and 50 per cent of the voting stock of each of two hearing the aforesaid witnesses were allowed over other insurance companies. The insurance companies the Applicant's objection, to read prepared statements issue policies chiefly against loss or damage to automoin opposition to the exemption applications. Orders biles and damage by fire and other hazards to real correcting errors in the transcript were entered on property. The insurance companies also control an May 23, 1957, and on June 3, 1957.3 On July 1, investment company—Investment Co. of St. Louis. 1957, the Applicant submitted proposed findings of fact and conclusions of law, along with a brief in RELATIVE IMPORTANCE OF SEVERAL CLASSES OF GCC support thereof. All such proposed findings and the SUBSIDIARIES arguments contained in the brief have been considered.4 GCC capital GCC assets GCC net Upon the entire record in the case and from my investment Dec. 31, 1956 income,1956 observation of the witnesses, I make the following: Classes of subsidiaries Dollars Per Dollars Per Dollars Per Findings of Fact cent cent cent I. INTRODUCTION Banks 10,575,00051.5 1264,449,412 73.72,084,71158.85 Securities In- A. The Business of General Contract Corporation vestment Company.. 7,014,65635.0 72,142,789 20.1 616,06417.39 in General Loan companies 195,000 0.9 2,034,401 .57 177,345 5.01 1. General Contract Corporation (herein GCC), Insurance a Missouri corporation, with its principal office and companies. 2,518,08912.5 17,183,641 4.79 556,53015.79 place of business at St. Louis, Missouri, is a bank Insurance agencies... 14,000 0.1 297,318 .08 151,826 4.29 holding company within the meaning of Section 2(a) of the Act, and has duly registered as such with the 1 As of Dec. 31, 1956, the eight bank subsidiaries had aggregate Board. GCC, as of December 31, 1957, had issued deposits of $236,592,000. and outstanding 2,162,547.9 shares of $2 par value common stock; 110,579 shares of $10 par value 6 (d) All the stock of 10 insurance agency comper cent preferred stock; 43,695 shares of $20 par panies (other than the subsidiary agency companies value 5 per cent preferred stock; and 14,564 shares of Securities Investment Co.) whose activities consist of $100 par value 5 per cent preferred stock. It has mainly of receiving insurance commissions on insurapproximately 7,000 stockholders distributed in 44 ance business arising out of the finance and lending States. Its common stock and the 6 per cent preferred activities of GCC banks and other subsidiaries to stock are listed on the New York Stock Exchange. which they are attached. As of December 31, 1956, no single stockholder 3. Annexed hereto as Appendix A is a chart listing owned more than 2.45 per cent of the common stock, all banking and nonbanking subsidiaries of GCC. and the 10 largest stockholders together owned 13.66 The chart also reflects the places of incorporation of per cent of such stock. each such subsidiary, GCC's percentage of common stock ownership in each such subsidiary, and the place 2. GCC owns all or most of the stock of eight of operation of each such subsidiary where it does not banks, located in the States of Missouri, Illinois and have its own independent operating office. Tennessee. The minimum amount of stock it owns 4. Some idea of the relative importance in the GCC in any such bank is 86 per cent. In addition, it owns, holding company family of its several classes of directly or indirectly, the following: subsidiaries may be gleaned from the following table (a) Virtually all of the voting stock of a major which shows as to each such class (1) the amount of finance company (Securities Investment Company of GCC's capital investment; (2) its ratio to GCC's total St. Louis) which is engaged principally in the busi- capital investments; (3) the amount of GCC's assets ness of purchasing instalment paper from automobile represented by such class; (4) the percentage of the dealers and others, and which, through subsidiary total assets of GCC thereby represented; (5) the companies, is also engaged in the business of making amount of the 1956 net income to GCC from such personal loans to individuals and in acting as an in- class, and (6) the percentage of the consolidated net surance agency in connection with its financing and income of GCC that was represented by the conlending activities. This finance company operates solidated net income of that class.5 branches in 15 cities located in nine States. 5. GCC is engaged in business primarily as a holding company. At present, it has only one direct 3 On Aug. 16, 1957, the parties submitted a stipulation to operation—a branch office at Texarkana, Texas, where explain and supplement certain facts in the record. The it handles automobile dealer financing and some trade stipulation is hereby admitted, and ordered filed as an exhibit discount paper and also makes some personal loans. in this proceeding. 4 The proposed findings and conclusions are adopted to the 5 The figures used in the table were supplied by oral testiextent that their terms or substance are included in or are mony. In some instances they are at variance with other figconsistent with the findings made below, and to the extent not ures found in the record. Following the hearing a stipulation so adopted are rejected. was filed explaining the more important discrepancies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN • MARCH 1958 The paper acquired and loans made by GCC at Tex- as agents for the placement of insurance in connecarkana are immediately sold by it at a discount without tion with the lending and financing activities in which recourse to Bank of St. Louis. Except for the em- it and its subsidiaries were engaged. In 1940— ployees at Texarkana, who are paid on a reimbursable prompted by increasing difficulties it was experiencing basis by Securities Investment Co., GCC has no em- in obtaining adequate insurance coverage for financed ployees of its own. automobiles—it arranged for the organization of an 6. GCC's principal officers are the same as the affiliated insurance carrier—Washington Fire and principal officers of Bank of St. Louis. All of its Marine Insurance Co. During the same period, Inofficers, except one, are officers or employees of that dustrial Bank and Trust Co. also indirectly acquired bank. Its holding company activities are conducted through stock purchases control of two banks, Comout of Bank of St. Louis, the employees of which mercial and Industrial Bank, Memphis, Tennessee, perform its record-keeping and other functions. and Illinois State Bank of Quincy. By 1946, Indus- 7. The requests for divestiture exemption involved trial Bank and Trust Co., directly or through subin this proceeding cover all GCC nonbanking com- sidiaries, owned all or most of the stock in two banks, panies listed in Appendix A, except Investment Co. some nine loan or finance companies, an insurance of St. Louis and Pulaski County Insurance Agency. company, and three insurance agency companies. Although an exemption application was originally 5. For a period of several years prior to 1946, filed for Investment Co. of St. Louis, that application bank examiners for the State of Missouri and for the was withdrawn during the course of the hearing for FDIC had been recommending that Industrial Bank the reason set out above in the Statement of the Case. and Trust Co. discontinue investing its assets in other No exemption request was filed for Pulaski County corporations. To meet their recommendations, a Insurance Agency because it is not now actively en- reorganization of the corporate structures of Industrial gaged in business and GCC intends to dissolve it. Bank and Trust Co. and its subsidiaries was effected. As a result, Bank of St. Louis was organized under B. The Evolution of GCC the banking statutes of Missouri. It acquired all the assets—except stock in subsidiary companies—of In- 1. GCC traces its origin to Industrial Loan Co., a dustrial Bank and Trust Co., and assumed the latter's company which began operations at St. Louis in deposit liabilities. At the same time, a new corpora- January 1913 under the Morris Plan system of loans tion—originally named Industrial Bancshares Corand savings. Except for seven of the banks—that is, poration and later General Contract Corporation— all banks but Bank of St. Louis^and Securities In- was formed to become the successor to the holding vestment Co. and its then subsidiaries, which were company functions of Industrial Bank and Trust Co. acquired, the complex of corporations now in the GCC became the owner of the stock of Bank of St. GCC holding company system is an outgrowth of the Louis, as well as the stock of subsidiary companies business that had its beginning with Industrial Loan that had previously been owned directly or indirectly Co. by Industrial Bank and Trust Co. The stock of GCC 2. From its original business of making Morris was distributed on a pro rata basis to the stock- Plan loans, Industrial Loan Co. as early as 1917 holders of Industrial Bank and Trust Co., and the branched out into the sales finance field, with par- latter company was then dissolved. ticular emphasis on automobile dealer financing, and 6. After its formation, GCC— in pursuit of such business expanded its activities to (a) Acquired controlling stock interests in five areas outside St. Louis. additional banks—in July 1947, in Northwestern Bank and Trust Co., St. Louis; in October 1948, in Baden 3. In 1923, the management of Industrial Loan Co. Bank, St. Louis; in December 1949, in Jeffersonorganized Industrial Savings Trust Co., which, as a Gravois Bank, St. Louis; and in December 1954, in corporation chartered under the trust company statutes Bank of Benton and The Bank of Zeigler, both in of Missouri, enjoyed the powers of a bank. The Illinois. trust company acquired the assets of the loan com- (b) Contributed, through its wholly owned subpany and assumed its liabilities on outstanding Morris sidiary, Washington Fire and Marine Insurance Co., Plan investment certificates. Thereafter it both ento 50 per cent of the capital of a new insurance comgaged in banking activities and continued the operapany, named Insurance Co. of St. Louis, organized tion of the loan and finance business that Industrial in January 1950. Loan Co. had established.6 At the beginning, the (c) Organized a number of additional loan comtrust company accepted only savings deposits, but panies to operate personal loan businesses at various later it also began to accept demand deposits. In places, located in the States of Missouri, Illinois, Ar- 1934, the trust company changed its name to Indus- kansas and Louisiana, as well as a number of adtrial Bank and Trust Co. and moved its offices and ditional insurance agency companies to act as agents banking house to the present site of Bank of St. Louis. for the placement of insurance in connection with 4. During the period of its existence Industrial loan and finance activities engaged in by GCC sub- Savings Trust Co.—later Industrial Bank and Trust sidiaries. Co.—caused to be organized a number of subsidiary (d) Acquired in August 1952, more than 99 per finance and loan companies for the purpose of han- cent of the common stock of a major finance comdling dealer paper and engaging in the loan business pany, Securities Investment Co. of St. Louis (SIC), principally in areas outside of St. Louis, including by exchanging, pursuant to a public offering made locations in Missouri, Illinois, Arkansas, Tennessee, to SIC stockholders, GCC stock for SIC stock. SIC Mississippi and Louisiana. It also caused to be at the time of acquisition operated a number of branch organized various insurance company agencies to act offices in Missouri, Tennessee, Florida and Michigan. It was also a holding company which at the time 8 Industrial Loan Co. was not dissolved, but continued to of acquisition had six wholly owned subsidiaries, infunction as a subsidiary of the trust company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 277 eluding four small loan companies (one since dis- company powers. Jefferson-Gravois Insurance Agency solved), an insurance agency company, and an in- is attached to this bank, carrying out its functions surance company engaged in writing physical hazard with bank employees. insurance. The insurance company—Midwestern (c) Northwestern Bank and Trust Company, in- Fire and Marine Insurance Co.—was later trans- corporated under the Missouri trust company laws, is ferred by sale to the direct ownership of GCC, its located about one and one-half miles from Bank of outstanding capital stock was then doubled, and the St. Louis. Northwestern Insurance Agency performs added stock was sold to an unaffiliated company, St. its functions at this bank with bank employees. Louis Insurance Co., with the result that GCC now (d) Baden Bank, incorporated under the banking owns 50 per cent of the outstanding stock of that laws of Missouri, with later acquired trust company company. SIC, since its acquisition by GCC, has powers, is located in an outlying area of St. Louis. organized five additional insurance agency companies Baden Loan Co. is attached to this bank, operating to receive commissions on insurance business gener- with bank employees, and makes initially almost all ated by that company and its subsidiaries. the personal loans that are carried by this bank. 7. From 1946 to the end of 1951, GCC was simply Another GCC subsidiary, Reid-Kruse, an insurance a holding company and did not directly carry on any agency, is also located at this bank, operating with business. At the end of 1951, GCC took over the bank employees. finance operations which had theretofore been con- (e) Commercial and Industrial Bank is located in ducted by two of its subsidiaries,7 both since dissolved, the Sterick Building in downtown Memphis, Tenat branches in 11 cities in the States of Arkansas, nessee. Originally a Morris Plan bank, it still operates Mississippi, Illinois, Louisiana, Texas and Missouri. under that general plan, though no longer through During 1954 and 1955, however, GCC transferred all franchise agreement with the Morris Plan Corporation, such branch finance operations to SIC, except for the but, in addition, is now also privileged to, and does, one branch at Texarkana, Texas, that GCC still accept commercial and savings bank deposits and operates; so that today, save for the one branch, GCC conduct a general banking business. No other GCC is again simply a holding company. subsidiary operates directly in this bank, but Sterick Insurance Agency operates an office with two em- C. The Eight Banking Subsidiaries of GCC, Their ployees of its own on the lobby floor of the building Location and the Character and Scope of where this bank is housed. Their Activities (f) Illinois State Bank of Quincy is located at 1. The eight bank subsidiaries of GCC are: Quincy, Illinois, a city with a population of 44,000 (a) Bank of St. Louis. This bank is incorporated that is also the home of four other banks. Quincy under the Missouri banking statutes, but also possesses Insurance Agency is attached to this bank, using bank trust powers under the Missouri trust company employees to carry out its functions. statutes. With total resources of $128,190,383 at (g) Bank of Benton is located at Benton, Illinois— the end of 1956, it ranked fourth in size among St. population, 7,800—located about 100 miles from St. Louis' 35 banks. It is by far the largest of the eight Louis. Insurance business generated by this bank banks in the GCC family. As the direct successor of and by The Bank of Zeigler is placed through Spring- Industrial Bank and Trust Co., it is still the nerve field Insurance Agency with bank employees handling center of the GCC holding company system, though the placement details. it has been divorced from stock ownership of other (h) The Bank of Zeigler is located at Zeigler, Illicompanies in the system. Its top management is nois—population 2,500—about 14 miles from Benton. the same as that of GCC; its employees handle the 2. Each of the eight banks is engaged in a general details of GCC's holding company activities; and it banking business, accepting demand and time deacts as the clearing house for the exchange of informa- posits, and making loans of various kinds, including tion and for the coordination of activities among real estate loans, commercial loans, personal loans and all companies in the GCC family. The principal home improvement loans. Each of the banks, moreofficers of Bank of St. Louis are on the boards of over, purchases consumer credit paper from dealers directors of all other GCC subsidiary banks, except arising out of instalment sales of automobiles and Bank of Benton and The Bank of Zeigler. They are furniture and household appliances, and also makes also on the boards of Securities Investment Co. and floor plan or wholesale loans to automobile dealers the three insurance companies. Apart from GCC principally, but occasionally also to appliance dealers. itself, there are three GCC subsidiaries that operate 3. Though engaged in a general banking business, out of Bank of St. Louis, conducting their affairs with the GCC banks are particularly active in the field of bank employees. They are Apex Insurance Agency, consumer credit loans.8 The ratio of consumer credit St. Louis-Washington Insurance Agency, and Indus- loans to all loans made by the GCC banks is higher— trial Loan Co. In addition, there are other insurance in most cases very substantially so—than the ratio to agency subsidiaries of GCC that use Bank of St. be found generally among commercial banks.9 Much Louis employees for record keeping or other functions. emphasis is placed by most banks in the GCC family The relationship of such subsidiaries to the bank will on automobile dealer financing activities—a fact of be more fully described in subsequent sections of this considerable importance to the issue, later to be conreport. sidered, of whether GCC should be allowed to retain (b) Jefferson-Gravois Bank is a neighborhood its insurance company and insurance agency subsidbank, located about three miles southwest of the iaries. The following table provides the details redowntown section of St. Louis where Bank of St. flecting the extent to which each GCC bank was Louis is located. It was incorporated under the bank- 8 Included in this category, as here used, are personal loans, ing laws of Missouri, but later also acquired trust automobile, furniture and appliance paper purchased from dealers, FHA Title I and modernization loans. 7 The subsidiaries were General Contract Purchase Corpora- 9 The average ratio of consumer credit loans to total loans tion (Ark.) and General Contract Purchase Corporation for all commercial banks in the nation, as of December 1956, (Mo.). came to approximately 13 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN • MARCH 1958 involved at the close of 1956 in consumer credit Pensacola branch office. A third personal loan comlending, and shows also the measure of its involve- pany subsidiary of SIC—Securities Loan Company— ment in automobile dealer financing: is also included in this proceeding. That company, which is housed at SIC's Nashville branch, was in the process of liquidation at the time of the hearing, and CONSUMER CREDIT AND AUTOMOBILE LENDING BY no longer an operating company. The officers and GCC BANKS directors of the three loan company subsidiaries are December 31, 1956 all officers and employees of SIC. (b) Securities Credit Co. (Florida) and Securities Consumer Loan Co. operate under small loan licenses issued by credit loans Retail the States of Florida and Tennessee, respectively. Total Active automobile loans auto- accounts They are consequently able on loans up to $300 to (Thou- Asa mobile charge higher rates of interest than may banks doing Bank sands (Thou- per- dealers business in those States. In the State of Missouri, of sands cent- financed Dol- of age (Num- where Securities Credit Co. (Missouri) is located, lars) Dol- of ber) Num- banks under a provision of the Missouri Constitution lars) total ber Dollars proscribing discrimination as among lenders, are loans allowed to charge the same interest rates as small loan companies (1945 Constitution of Missouri, Art. Ill, St. Louis 51,604 22,359 43 91 10,41610,591,718 Sec. 44; Household Finance Corporation v. Shaffner, Jefferson-Gravois 14,672 4,492 33 13 2,477 3,656,820 Northwestern. . . 10,700 3,696 34 15 1,779 2,180,000 356 Mo. 808, 203 S.W. (2d) 734). Baden 9,913 1,879 19 0 45 •380,602 4. In addition to the loan company subsidiaries, C. and I 10,948 8,149 74 17 5,375 4,693,541 Quincy 11,881 6,650 56 48 3,386 3,758,778 SIC has six wholly owned subsidiary insurance com- Benton 3,710 1,476 40 7 447 399,820 pany agencies, which nominally act as agents for the Zeigler 2,626 417 16 0 122 95,377 placement of insurance required in connection with the finance and loan operation of SIC and its sub- * Including participations. sidiaries, and receive the commissions earned on such insurance business. Broadway Insurance Agency handles the Missouri business of SIC; Securities In- II. SECURITIES INVESTMENT COMPANY OF surance Agency, the Illinois business; Investment In- ST. LOUIS AND ITS SUBSIDIARIES surance Agency, the Arkansas business; Craighead A. The Business of SIC Insurance Agency, the Texas business; Palafox Insurance Agency, the Florida business; and Davidson 1. Securities Investment Co. of St. Louis, herein Insurance Agency, the Tennessee business. The in- SIC, is a Delaware corporation qualified to do busisurance agencies handle no business other than that ness in the States of Missouri, Illinois, Tennessee, generated by SIC and its subsidiaries. Except for Arkansas, Mississippi, Florida, Oklahoma, Texas and Alabama.10 It is by far the largest of GCC's non- some credit life insurance which is placed through outside companies, all policies are written through banking subsidiaries. GCC affiliated companies. The SIC insurance agency 2. SIC is directly engaged primarily in the business subsidiaries have no separate offices or paid employees of acquiring retail instalment notes (principally from of their own. Operational details in connection with automobile dealers but also from furniture and applithe placement of insurance are taken care of by ance dealers), making wholesale loans to dealers, SIC employees. making other discount basis loans, and discounting notes receivable from finance companies. Its home 5. SIC and its subsidiaries are engaged in no acoffice is located at St. Louis. It conducts its opera- tivities that are not of a financial or insurance nature. tions through 15 branch offices located in nine States. 6. The finance and lending operations of SIC The branch offices are located at Jonesboro and Little parallel to a considerable degree the consumer credit Rock, Arkansas; at Pensacola, Florida; at Jacksonville operations of GCC banks. To the extent that their and Springfield, Illinois; at New Orleans, Louisiana; operations are the same, they require similar manageat Hattiesburg, Jackson and Meridian, Mississippi; at ment skills and there is a cross-adaptability of ac- Kansas City, Sikeston and St. Louis, Missouri; at quired experience and "know-how". Under GCC Tulsa, Oklahoma; at Nashville, Tennessee; and at sponsorship, there is constant contact between rep- San Antonio, Texas.11 resentatives of GCC banks handling consumer credit 3. (a) SIC also has two wholly owned subsidiaries, operations and representatives of SIC. The two which operate out of branch offices of SIC, and are groups provide each other with statistical and other engaged in the business of making personal loans to information concerning market conditions, exchange individuals. They are Securities Credit Company, ideas on the development of new business, aid each a Missouri company located at SIC's home office in other in establishing improved standards and operating St. Louis, and Securities Credit Company, 2L Florida procedures, and otherwise jointly consider matters of corporation, which conducts its operation at SIC's common interest. On occasions also, banks in the GCC family and SIC have aided each other to retain 10 As of Dec. 31, 1956, SIC had outstanding 297,840 shares old business or to acquire new business. of $10 par value common stock and 35,000 shares of $100 par value preferred stock. GCC owned 297,413 shares, or 99.97 7. There is, however, no direct functional integraper cent of the common stock. The nonvoting preferred stock tion between SIC's operations and the operations of was held entirely by Mutual Life Insurance Co. of New York GCC banks. Except for the exchange of information and Diversified Investors Syndicate. 11 Nine of these branches were at one time owned by Indus- and the like, SIC and the banks are conducted as trial Bank and Trust Co. They were acquired by SIC from entirely separate and independent businesses. Al- GCC in 1954 and 1955. Prior to their acquisition by SIC, the though SIC operates primarily on money it borrows nine branches sold their paper to Bank of St. Louis, but no longer do so. from banks, it looks solely to unaffiliated banks as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 279 source for such funds.12 SIC borrows no money from (6). Functions may be similar to banking or to man- GCC banks. Neither it nor its subsidiaries purchase aging or controlling banks without necessarily being any loans from GCC banks, sell any loans or acquired a 'proper incident' thereto, that is without 'naturally paper to GCC banks, have any direct business deal- appertaining thereto'. ings with such banks, or perform any operational "Stated differently, mere similarity of some funcservices for them. tions is not enough to eliminate the 'potential sources 8. Though there are similarities between the busi- of evil' against which the general prohibition of Secness conducted by SIC and the banks, there are sub- tion 4 was aimed. This is especially the case when, stantial differences, too. The banks' lending activities as here, there are also substantial differences in funccover a much broader range. The banks receive de- tions which could give rise to such 'potential sources posits; SIC does not. The banks operate largely with of evil'". depositors' funds; SIC uses its own capital and the On the authority of the Board's decision in Transmoney it privately borrows. Because MC's business america—as well as on the basis of the legislative does not contain the same elements of fiduciary rehistory of Section 4(c)(6) and for other reasons set sponsibility that are to be found in the banking busiout in my Report attached to the Board's decision in ness, it is not affected with the same public interest. that case—I conclude that the facts found above re- Its activities are therefore not subject to the same garding SIC do not support a "closely related" detergeneral governmental supervision and regulation. mination under Section 4(c)(6) of the Act. The con- SIC is subject to supervision and examination only clusion reached with regard to SIC applies equally, of with respect to that segment of its business that comes course, to all its subsidiaries. under State small loan regulations. Accordingly, denial will be recommended of the exemption application, docketed as BHC-7, covering B. Analysis and Concluding Findings as to SIC and Securities Investment Co. of St. Louis and its sub- Its Subsidiaries sidiaries. The basic facts, as I see them, on which decision in the SIC case must turn are these: SIC engages en- III. THE LOAN COMPANY DIRECT SUBSIDIARIES tirely in activities that are similar in kind to some but not all the activities in which banks generally, and A. Description of the Operations of Each of the the Applicant's banks in particular, also engage. Be- 10 Companies cause the two businesses possess many common char- 1. Industrial Loan Company, (a) Industrial Loan acteristics, they also require many common manage- Co., a Missouri corporation, is located at Bank of ment skills. But GCC and the Applicant's banks have St. Louis. Its officers and directors are also officers no business dealings with each other, and there is no or employees of that bank. All of its activities are direct connection in a functional, operational or serv- of a financial nature. It is engaged primarily in the icing sense between SIC's activities and those of the business of making personal loans, repayable in in- Applicant's banks.13 stalments. Most but not all of the loans are secured The issue thus comes down to this: In the absence by automobiles or household furnishings. Substanof any functional integration, is partial parallelism in tially all loans are sold on the day they are made to the type of business activity pursued alone enough to Bank of St. Louis.16 The loans are sold at a dissupport a "closely related" determination under Sec- count,17 but without recourse and without any purtion 4(c)(6) of the Act? chase or guaranty agreement. That issue, which involves basically a question of (b) Industrial Loan Co. (herein Industrial) is statutory construction, may no longer be regarded as operated in effect as though it were the personal loan an open one. It was recently considered by the Board department of Bank of St. Louis. It has no separate in the Transamerica case,14 and disposed of adversely place of business or paid personnel of its own. All of to the position of the Applicant here.15 The Board its functions are performed on the premises of Bank said, in part: of St. Louis by bank employees. The building di- "... it is clear that the mere fact that some of Oc- rectory does not carry Industrial's name, but does cidental's operations resemble or are kindred to some state that the bank's instalment loan department is of the operations of banks is not enough to warrant located on the second floor of the bank premises. the kind of determination intended by Section 4(c) There is nothing displayed on the second floor to distinguish Industrial's operations from bank opera- 12 SIC has approximately 60 bank lenders. At the time of tions. An applicant for a personal loan calling at the the hearing it had lines of credit totaling $54 million. 13 Contrary to the Applicant's assertion, the record does not bank is referred to the personal loan department. If substantially support a finding that the banks are dependent his application is approved, he signs a note and other upon SIC for the continued efficient conduct of their own loan instruments running to Industrial. The loan consumer credit operations. The record does show, to be proceeds are paid to him by a check drawn on Indussure, that SIC and the banks interchange information and ideas at the holding company level that are of value to each. That trial's account with Bank of St. Louis. The borrower is only to be expected among members of the same holding receives a loan statement from Industrial in which he company family. But it was not disputed at the hearing that is directed to "make all payments at second floor of the same experience, know-how, and training that are to be found in the SIC organization are still to be found, and to a Bank of St. Louis". At the end of the day the note like degree, in the management and personnel of Bank of St. Louis. 16 During 1956, Industrial Loan Co. made 6,782 loans 14 In the Matter of the Application of Transamerica Corpora- amounting in the aggregate to $3,811,942. It sold all but tion relating to Occidental Life Insurance Company, Docket five of these, totaling $44,144, to Bank of St. Louis. The five No. BHC-28, decided Aug. 20, 1957. (See Federal Reserve loans retained were not sold to the bank because they were BULLETIN, September 1957, pp. 1014 ff.) loans made to employees of the bank. 15 Though this case presents a somewhat different factual 17 Thus, for example, on a loan with net proceeds to the situation, the basic question of statutory construction is the borrower of $300 and charges of $30, the loan would be sold same. The arguments submitted on that question by the Appli- for $300 plus one per cent of $330, or $303.30. The one per cant in this case do not vary substantially from those presented cent would represent Industrial Loan Co.'s profit on the transto the Board by the applicant in the Transamerica case. action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN • MARCH 1958 and accompanying loan instruments are transferred eventuality that such a time might return again. (4) by sale to Bank of St. Louis, as stated above. The That with Industrial in the picture it was possible to borrower is not, however, notified of the transfer to bring repossession proceedings and collection suits in the bank. In the event of a default in payment, re- the name of Industrial rather than in the name of the possession of the pledged security is effected and suit bank, thus keeping the bank's name out of the Small is filed in the name of Industrial. The bank, how- Claims Court and making for better public relations.19 ever, stands any ultimate loss, as well as the costs of (5) That by maintaining Industrial as a separate corcollection that may be incurred, and has no claim porate entity which drew off part of the profits from over against Industrial. the loan transactions that would otherwise go to Bank (c) Substantially all personal loans carried by Bank of St. Louis, it was possible for GCC to effect an of St. Louis originate in the manner described above, ultimate income tax saving of approximately $5,000 except for those loans which originate at the Tex- per annum, because the first $25,000 of a corporation's arkana branch of GCC and are sold to Bank of St. income is taxed at a 32 per cent rather than a 52 per Louis in like fashion. As of December 31, 1956, cent rate. Bank of St. Louis had 7,345 personal loans outstand- 2. Baden Loan Company, (a) Baden Loan Co., a ing, amounting in all to $3,014,185. Of these, 6,943 Missouri corporation, located at Baden Bank, is enaccounts aggregating $2,847,374 were initially made gaged solely in the business of making personal loans, by Industrial Loan Co. and 396 accounts aggregating repayable in instalments, and conducts no activities $161,672 by the GCC Texarkana office. Only six that are not of a financial nature. The officers and personal loans, totaling $5,139, were made directly directors of the loan company are employees of by Bank of St. Louis. It was explained at the hear- Baden Bank. As in the case of Industrial Loan Co., ing that the six direct loans represented exceptional Baden Loan Co. has no separate employees of its situations where, for reasons unimportant here, In- own and is not advertised at Baden Bank or elsewhere dustrial Loan Co. could not itself legally make the as a separate corporate entity, but carries out its loans, though the bank could. functions with bank employees as if it were the per- (d) Industrial Loan Co. operates under the Mis- sonal loan department of Baden Bank. It conducts souri Consumer Credit Law which fixes rates of in- its operations at Baden Bank in the same manner that terest that may be charged on so-called small loans. Industrial does at Bank of St. Louis. (1949 Mo. Rev. Stats., Sec. 48:100 et seq.) As of the (b) During 1956, Baden Loan Co. made 1,257 pertime of the hearing, the notes payable to Industrial sonal loans aggregating in amount of $910,035. It carried interest on unpaid balances at the rate of sold all but two of these to Baden Bank. The two 2.218 per cent per month on that portion of the prin- loans retained were relatively large ones, totaling cipal amount of the loan not in excess of $400, and $28,750. The loan company's earnings on loans sold at the rate of 2/3 of one per cent per month of that during the year amounted to $41,744—a figure inportion in excess of $400. Such interest charges, dicating that Baden Loan Co.'s profit on loans sold which are added on to the amount of the note, are must be considerably more than the one per cent rewithin the requirements of Missouri's small loan laws. ceived by Industrial Loan Co. The Missouri Constitution provides that any rate of (c) Baden Bank makes few personal loans directly. interest fixed by law must be applicable generally to As of December 31, 1956, it had 1,296 personal loans all lenders without regard to the type or classification outstanding, amounting in the aggregate to $845,659. of their business. (1945 Constitution of Missouri, Only 19 of such loans, totaling $123,074, were made Art. Ill, Sec. 44; Household Finance Corporation v. directly by the bank. The rest were acquired from Shaftner, 356 Mo. 808, 203 S.W.(2d) 734.) There Baden Loan Co. is therefore no legal impediment barring Bank of St. (d) Walter Burtelow, GCC's executive vice presi- Louis, if it cares to do so, from making the same loans dent, testified that GCC was prompted to organize directly at the same interest rates. Baden Loan Co. for this reason: At that time there (e) Applicant's witnesses at the hearing assigned was still an unresolved legal question as to whether various reasons to explain why GCC chose to operate banks must register to qualify as lenders under Misthrough a separate corporate entity what is in effect souri's Small Loan Law,20 and GCC preferred to have a personal loan department of Bank of St. Louis. In- a company other than the bank registered, so that cluded among those stated at one time or another examinations under the Small Loan Law might not were the following: (1) That it was a matter of be extended to cover the entire bank operations. Ap- "historical diction" since Industrial Loan Co. was the plicant's present reasons for retaining the loan comoriginal corporation from which GCC's various per- pany—as stated at the hearing—are substantially the sonal loan operations eventually branched out. (2) same as those given for retaining Industrial Loan Co. That the name of Industrial Loan Co. was well known However, James A. Reid, the president of Baden in the community because it was an early entrant in Bank, added another. According to him, the loan the field of small loan lending in St. Louis, and the company avoided embarrassment to bank management public still looked to it as the place where personal loan needs might be met.13 (3) That there have been 19 In view of the outright sales of the loans to Bank of St. times under Missouri laws when it was possible for Louis, it is difficult to understand how suits may be brought Industrial to arrange for small loans at charges higher in the name of Industrial and yet comply with statutory rethan that permitted banks under the general usury quirements that suits must be filed by the real party in interest. The only explanation offered by the Applicant was that laws, and that it was considered desirable to maintain the officiating magistrates were apparently unaware of real Industrial as a separate entity to guard against the party in interest requirements, and that in any event the question had never been raised in any proceeding filed by Industrial. 18 It is difficult, however, to reconcile this reason with the 20 That question was finally resolved in Household Finance fact that Industrial is no longer advertised or held out to the Corporation v. Shaffner, supra, in which the Missouri Supreme public as an independent company. Moreover, loan applicants Court held, inter alia, that separate registration by otherwise are at least initially led to believe that they are dealing with qualified lenders could not be required under the Missouri Bank of St. Louis through its own instalment department. Constitution. 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LAW DEPARTMENT 281 because the rates it charged, while legal, were con- transactions in automobile dealer paper, amounting to sidered unseemly for a banking institution. $8,767, and 3 in furniture and appliance dealer paper, 3. Industrial Finance Company of Wellston. (a) amounting to $1,096. Industrial Finance Co. of Wellston, a Missouri cor- 6. General Contract Loan Company, Inc. (La.). poration, maintains a single office at Wellston, a General Contract Loan Co., a Louisiana corporation, suburb of St. Louis, where it is engaged solely in the located at the SIC branch office in New Orleans, is business of making personal loans and purchasing engaged in the business of making small personal dealer paper from furniture and appliance dealers. loans and buying furniture and appliance dealer paper, All of its activities are of a financial nature. The of- as well as repair and modernization and FHA Title I ficers and directors of the company are all employees dealer paper. Its officers and directors are employees of Bank of St. Louis, but the company has its own of Bank of St. Louis. Under the Small Loan Law of separate manager and paid employees. Louisiana21 banks may not qualify as lenders at the (b) Industrial Loan Co. of Wellston retains all rates of interest permitted licensed lenders under that personal loans it makes. During 1956, the company law. Banks may, however, acquire FHA Title I and made 551 such loans, totaling $248,948. Its earnings modernization paper as well as furniture and appliance on such loans came to $50,041. Before enactment of dealer paper at the rates charged by General Contract the Bank Holding Company Act of 1956, the company Loan Co. This loan company retains all its personal also retained all dealer paper it purchased, but bor- loans and furniture and appliance dealer paper. But rowed against such paper from Bank of St. Louis to it sells all its FHA Title I paper and modernization obtain the funds necessary to carry on its dealer sales loans to Bank of St. Louis. The sales are made at finance operations. With the passage of the Act, that a discount, without recourse or repurchase agreement. procedure was changed. Now the Wellston company Further servicing of the paper sold is handled by emsells all its dealer paper to Bank of St. Louis at a ployees of Securities Investment Co. of St. Louis. discount without recourse or repurchase agreement. General Contract Loan Co. reimburses SIC for such The paper is sold without notification to the borrower. services on the basis of a 40 per cent retention of Notwithstanding the sale, the Wellston company con- charges. During 1956, General Contract Loan Co. tinues to service the paper to its finality. If in the made 672 personal loans, aggregating $408,410, of interim suit becomes necessary, it is brought in the which 98, totaling $143,772, represented refinancing name of the Wellston company. During 1956, the of SIC loan accounts. Its interest earnings on percompany purchased 1,934 items of furniture and ap- sonal loans came to $61,755. It had 29 financing pliance dealer paper, amounting in the aggregate to transactions of furniture and appliance dealer paper, $478,646, all of which it sold to Bank of St. Louis. amounting in all to $7,387, on which it earned interest Its earnings on dealer paper came to $23,053. amounting to $584. It acquired and sold to Bank of 4. General Contract Loan Company (Missouri). St. Louis 190 items of FHA Title I loans, amounting General Contract Loan Co., a Missouri corporation, to $162,239, and 273 items of modernization loans, is located in SIC's branch office in Sikeston, Missouri. amounting to $498,820. Its gross earnings on Title I It makes personal loans and buys instalment paper and modernization loans sold came to $36,855. The from furniture and appliance dealers. Its officers and paper sold to Bank of St. Louis represented about 60 directors are employees of Bank of St. Louis, but it per cent of its total volume of business. operates with its own paid employees. It retains its 7. Quincy Union Finance Company. Quincy Union own loans and acquired dealer paper. It has no direct Finance Co., an Illinois corporation is engaged at business dealing with other GCC subsidiaries. The Quincy, Illinois, in the business of making personal money it borrows to conduct its lending and financing loans under the Illinois Small Loan Act. As is true operations is obtained from unaffiliated banks. Dur- of all the direct loan company subsidiaries, except ing 1956, General Contract Loan Co. made 1,215 per- Baden Loan Co., the officers and directors of Quincy sonal loans amounting to $380,376, of which $24,601 are employees of Bank of St. Louis. Quincy's place of represented financing of loan accounts of Securities business is about one-half block removed from Illi- Investment Co. It purchased 391 items of dealer nois State Bank of Quincy. Under the laws of Illipaper in the face amount of $99,343. nois, banks are not permitted to make loans at the 5. SIC Loan Company. SIC Loan Co., a Missouri rates of interest allowed by the Small Loan Law. corporation, organized in March 1956, is located at (Smith-Hurd 111. Anno. Stats., Ch. 74, Sec. 38.) the Kansas City branch office of Securities Investment Quincy operates with its own funds and with funds Co. of St. Louis. Its officers and directors are em- borrowed from unaffiliated banks. All of its loans are ployees of Bank of St. Louis, but it operates with its retained. During 1956, Quincy Union Finance Co. own paid employees. The company is engaged prin- had 1,569 loan accounts totaling $520,711, of which cipally in making small loans, but it also engages in 44, amounting to $14,997, originated by refinancing some automobile dealer and furniture and appliance Illinois State Bank of Quincy accounts. Of its 1,569 dealer financing. Until 1957, SIC Loan Co. retained loans, 81 were referred to it by the bank. Its interest all its loans. At the start of this year, however, it earnings for the year amounted to $65,604, and its net began selling all its furniture and appliance dealer earnings, after all expenses and taxes, to $18,404. paper—but not its automobile dealer paper or its per- 8. Springfield Union Finance Company. Springsonal loans—to Bank of St. Louis. The paper is sold field Union Finance Co., an Illinois corporation, is at a discount, without recourse or repurchase agree- located next door to the SIC's branch office in Springment, and under the same operational arrangements, field, Illinois. Its operations are identical to those of described above, that are followed by Industrial Fi- Quincy Union Finance Co. During 1956, it had 1,564 nance Co. of Wellston in the sale of like paper to loan accounts totaling $477,231, of which 23, amount- Bank of St. Louis. During 1956, SIC Loan Co. made ing to $7,925, originated by refinancing SIC accounts. 148 personal loans totaling $92,933, of which 42 Its earned interest on personal loans during 1956 was loans, amounting to $45,557, were to refinance loan accounts of Securities Investment Co. It also had 16 21 West's La. Rev. Stats. Anno., Sec. 6.593. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDERAL RESERVE BULLETIN • MARCH 1958 $74,180. Its net earnings after taxes came to $21,101. an adjunct to, banking operations conducted by GCC 9. General Contract Loan Brokers, Inc. (a) Gen- banks. eral Contract Loan Brokers, a Mississippi corpora- The first ground urged is essentially the same as tion, operates at two locations in Mississippi, one the one advanced by the Applicant to support its at Jackson and the other at Meridian, both at SIC exemption request covering Securities Investment Co. branch offices. It acts as a broker in arranging of St. Louis and its subsidiaries. For reasons stated personal loans for borrowers from Deposit Guar- in the analysis of the SIC case, that is found an inanty Bank and Trust Company, a nonaffiliated bank adequate basis upon which to predicate a "closely in Jackson, Mississippi. But though technically a related" determination under Section 4(c)(6). This broker, this company operates for all practical pur- finding is dispositive, without more, of half the exempposes as though it were a loan company making the tion requests immediately under consideration. As to loans itself. The company solicits loan business; in- General Contract Loan Co. (Mo.), Springfield Union terviews prospective borrowers; investigates their Finance Co., Quincy Union Finance Co. and General credit; approves or rejects credit of applicants; when Loan Co., there is no claim, and certainly no evidence, credit is approved, prepares all necessary loan papers that their lending and dealer financing activities are for signature by the borrower, and arranges for the integrated in a direct, operational or functional sense disbursement to the borrower of the loan proceeds at with the carrying out of bank operations. As to Genits own office. Thereafter, the company services the eral Contract Loan Brokers, the claim is made that the loan to final collection. The only substantial differ- brokering operations of that company not only are ence between the brokerage operation and the opera- analogous to bank lending operations, but also are tion of a direct loan company is that the loan papers functionally integrated with specific operations of the are made payable to the bank and the loan proceeds unaffiliated bank—Deposit Guaranty Bank and Trust are paid by a draft drawn by the borrower on the Co.—for which it acts as loan broker. But that alone bank. The draft, however, is endorsed by the bor- is not enough to satisfy the "closely related" requirerower to the order of the brokerage company and ments of the statute, particularly as interpreted by cashed by it, with the borrower receiving the net Section 5(b) of the Board's Regulation Y. proceeds of the loan only after all brokerage and other Under that section—as I interpret it, and as it apcharges have first been deducted.22 The type of broker- pears to have been applied in the Board's decision in age operation engaged in by General Contract Loan the Transamerica case—it is necessary to show, not Brokers has been upheld by the Supreme Court of only that a nonbanking business is by its nature a Mississippi as outside the proscription of that State's "proper incident" to banking or to managing or conusury laws. See Towers Underwriters, Inc. v. Lott, trolling banks, generally, but also that the requisite 48 So. (2d) 704. close relationship has specific application to the like (b) During 1956, General Contract Loan Brokers business conducted by the applicant bank holding comarranged for 1,551 such loans from Deposit Guaranty pany or its banking subsidiaries. That construction, Bank and Trust Co. in an aggregate amount of I am persuaded for reasons elsewhere stated, com- $685,332, of which 545 loans, amounting to $275,914, ports with the intent of Congress.23 represented the refinancing of borrowers' loan ac- That leaves for consideration, then, the cases of the counts with SIC. The company earned $72,187 in five loan company subsidiaries with activities funcbrokerage fees during the year. Its net earnings after tionally connected in whole or in part with activities expenses and income taxes came to $17,747. engaged in by GCC banks. As found above, the operations of Industrial Loan Co. and of Baden Loan 10. General Loan Company. General Loan Co., Co. are almost entirely integrated with the activities an Arkansas corporation, is not now in operation. of Bank of St. Louis and Baden Bank, St. Louis, It formerly operated as a small loan company at Little Rock, Arkansas, but suspended operations when respectively. Substantially all the personal loans held the Arkansas Small Loan Law was declared uncon- by such banks are originated by the loan companies stitutional by the Supreme Court of that State. Gen- attached to them and are contemporaneously pureral Loan Co. has, however, been kept alive by GCC chased by the banks at a discount but without right of in the hope that Arkansas may soon have loan legisla- recourse against the loan companies. Industrial Fition that will enable the company to resume opera- nance Co. of Wellston and General Contract Loan Co. tions. It has been included among the subsidiary (La.) each sells the majority of the loans or dealer companies for which GCC seeks divestiture exemption paper it acquires to Bank of St. Louis at a discount in this proceeding for the same reason. without recourse. SIC Loan Co. sells a part of the dealer paper it acquires to Bank of St. Louis on the same basis. B. Analysis and Concluding Findings as to the 10 Neither the fact that such a functional relationship Loan Company Subsidiaries appears in the cases of five of the loan companies, nor 1. In general. The Applicant would support its the fact that the relationship may be a "close" one— exemption requests for all 10 companies primarily as it undoubtedly is in the cases at least of Industrial upon the ground that what they do parallels some of Loan Co. and Baden Loan Co.—is, however, fully the activities in which banks also engage. The Appli- dispositive of the issue that must here be decided. cant urges an added ground, applicable to certain but The statute requires as a condition to divestiture not all the loan subsidiaries, that the activities of such exemption that the Board determine not only that a loan companies are functionally integrated with, and nonbanking subsidiary is so "closely related" to banking operations as to be an "incident" thereto, but that 22 The following example was given at the hearing to illustrate the "incident" is a "proper" one. It is to a considerathe charges on a 12-month instalment transaction: On a loan tion of that aspect of the issue that we now turn. on which the borrower receives net proceeds of $359, his note is for $420—the charges being the bank discount, amounting 23 See Hearing Examiner's Report attached to the Board's to $14.70, a credit life insurance premium amounting to $4.20, decision in the Transamerica case, published in Federal Reand brokerage fees amounting to $42.10. serve BULLETIN for September 1957, pp. 1019-35. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 283 2. The "discount" question. Consideration of the thority of national banks to acquire title to commer- "proper incident" aspects poses at the outset an im- cial paper—authority that must stem from an express portant question of statutory construction. Section grant of power or impliedly be deemed prohibited ^— 6(a)(4) of the Act makes it unlawful for a bank is derived from the statutory corporate power given national banking associations under U. S. Rev. Stats., ". . . to make any loan, discount or extension of Sec. 5136, 12 U.S.C., Sec. 24, to engage in the "discredit to a bank holding company of which it is a counting" of "promissory notes, drafts, bills of exsubsidiary or to any other subsidiary of such bank change and other evidences of indebtedness."26 Thus, holding company." too, the term "discount" as used in U. S. Rev. Stats., The finding that five of the nonbanking loan sub- Sec. 5197, 12 U.S.C., Sec. 85, which prohibits usury sidiaries of GCC are engaged wholly or partly in by national banking associations on loans or discounts activities functionally related to GCC bank opera- made by them, has been held to include within its tions is predicated entirely upon the fact that they scope, not only transactions involving bank loans to originate and sell to GCC banks consumer credit the person for whom paper is discounted, but also paper at a discount, but without recourse and without transactions involving bank purchases of third party any guarantee or repurchase agreement of any kind. paper—and this regardless of whether such paper is If the acquisition by the subsidiary banks of such purchased with or without any right of recourse upon paper constitutes the making of a "discount" within the seller.27 the meaning of Section 6(a) (4), it would be a form The Applicant argues earnestly, however, that notof self-dealing proscribed by that section. And it withstanding the broad commercial usage of the term would thus follow virtually as a matter of law that "discount", Congress in drafting Section 6(a)(4) inthe relationship between the loan companies and their tended to draw a distinction between, on the one affiliated banks is not such as to constitute a "proper hand, a discount involving a direct loan to an affiliated incident" to the business of banking, as conducted by company, or an advance to such affiliate on dis- GCC and its banking subsidiaries. counted third party paper for the payment of which Though the Applicant argues to the contrary, there the affiliate assumes liability as an endorser or guaranis much to support the view that Section 6(a) (4) is tor, and, on the other hand, a transaction involving a applicable to the type of dealings here involved. As bank's purchase of third party paper at a discount the Applicant concedes in its brief, the term "dis- from an affiliate without any right of recourse upon count" as used in the commercial world is broad the affiliate. The Applicant concedes that Congress enough to cover three kinds of transactions: (a) a intended the prohibitions of Section 6(a)(4) to apply two-party transaction wherein a borrower delivers to transactions of the first two types, but not, it conhis note to a bank and receives from the bank a sum tends, to those of the third type. of money which is less than the amount of the note; The arguments upon which the Applicant would (b) a three-party transaction wherein the negotiable support that position are ably marshalled in its brief. paper of a third party is endorsed by the holder and The main points stressed are, in broad outline, as foldelivered to the bank in return for a sum of money lows: (1) It is urged that Section 6(a) (4) may not which is less than the amount of the note; and (c) a be read in isolation, but must be read in context with three-party transaction—such as is here involved— the other subdivisions of Section 6(a). It is claimed where the note or other negotiable paper of a third that 6(a)(l), prohibiting investments in capital stock, party is delivered to the bank without endorsement bonds, debentures or other obligations of an affiliated (or with a "without recourse" endorsement) in return company; 6(a)(2), prohibiting the acceptance of such for a sum of money which is less than the amount of capital stock, bonds, debentures or other obligations the note. Though the third type of transaction, unlike as collateral for advances made to any borrower; and the first two, carries with it no obligation, direct or 6(a)(3), prohibiting the purchase of securities, other contingent, on the part of the person "discounting" assets or obligations from an affiliate under a repurthe note to pay the amount due, and therefore is chase agreement—all disclose a Congressional concern clearly in the nature of a purchase without strings over a bank relying on the worth or credit of its parent attached, it no less than the others falls within the or fellow subsidiaries in its investment or lending acbroad definition of a discounting transaction as usu- tivities. According to the Applicant, consistency and ally understood. harmony with the pattern shaped by the earlier sub- Ample judicial authority supports the conclusion— divisions demand that Section 6(a) (4) also be conin the words of the Third Circuit Court of Appeals— strued as applying only to situations where a transthat, "in the business of banking, 'discount' in the ordi- action calls for bank reliance on the credit or worth nary acceptance of the term, includes what is called of an affiliate. And such reliance, it says, is not in- 'purchase' ".24 Moreover, the Federal Courts have volved in the case of an outright purchase of paper interpreted other sections of the national banking laws where there is no residue of liability on the part of where the term "discount" is used as including within the transferor. (2) It is claimed that Section 6(a)(3) its scope, not only loans or advances by way of dis- allows by implication the purchase from an affiliate count of commercial paper, but also the outright pur- "of securities, other assets or obligations" where there chase by banks of such paper for an amount less than is no repurchase agreement, and it is asserted that their face value. Thus it has been held that the au- the terms "securities" and "obligations" as therein used are broad enough to cover the purchase of con- 24 Donforth v. National State Bank of Elizabeth, 48 Fed. Ret). 2^1, 274. See also Fleckner v. Bank, 8 Wheat. (U. S.) 338; 35 First National Bank v. National Exchange Bank, 92 U. S. Morris v. Third National Bank of Svringfield, 142 Fed. Rep. 122. 25, 31 (C. A. 8): cert. den. 201 U. S. 649: Saltnwrch v. 26 Morris v. Springfield National Bank, supra. See also Dan- Planters & Merchants Bank, 14 Ala. 677; Neillsville Bank v. forth v. National State Bank, supra, p. 274. Tuthill, 4 Dak. 295, 30 N. W. 154, 156; Pape v. Bank, 20 Kan. 27 Danforth v. National State Bank, suvra. Cf. National 4^0, 446; 27 Am. Rep. 183; Salmon Falls Bank v. Leyser, 116 Bank of Gloversville v. Johnson, 104 U. S. 271; Daniel v. First Mo. M, 71. 22 S. W. 504, 509: Trw v Talr*nHge, 18 Barb. National Bank of Birmingham, 227 Fed. Rep. (2d) 353, 355 (N. Y.) 456; Bank v. Savry, 82 N. Y. 291, 302. (C. A. 5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 FEDERAL RESERVE BULLETIN • MARCH 1958 sumer credit paper, thereby in effect limiting the through application of the term "discount" in Section breadth of "discount" as used in Section 6(a) (4). 6(a)(4), or it is not prohibited at all. Such careless- (3) It is urged that the coupling in Section 6(a) (4) ness in legislative draftsmanship is not lightly to be of the word "discount" with the words "loans" and attributed to Congress. Nor is it reasonably to be "extensions of credit" denotes an intention to have assumed that Congress deliberately intended the disthem all understood in the same general sense, as tinction urged by the Applicant. If, as the Applicant covering only such transactions as involve the lending virtually concedes, Congress considered it a source of or advance of money to an affiliate for which the potential evil warranting prohibitory legislation for a affiliate assumes responsibility for repayment. banking subsidiary to be allowed to purchase from But in arguing for a thus limited construction of its holding company or another affiliate commercial the term "discount", the Applicant ignores entirely paper with recourse, to say that Congress at the same the legislative history bearing on the question of Con- time meant to leave banks free to make such purgress' actual intent. In view of the admittedly vary- chases without recourse—in other words, with less ing meanings that that term allows, reference to such protection to the bank and its depositors—seems to history seems to me both appropriate and important. me to make little, if any, sense. During the Committee hearings leading to the en- Thus logic and legislative history combine with actment of the statute, frequent reference was made commercial word usage and judicial interpretation to by proponents of the proposed legislation to the give the term "discount" in Section 6(a)(4) a meaning Bankers Discount Corporation situation as a flagrant that would include the purchase by way of discount of example of the danger of abuse flowing from self- consumer credit paper, though no right of recourse dealings between bank holding companies and their upon the seller is reserved. subsidiary banks.28 That situation involved a Texas Nor do I think the solid considerations supporting finance company that acquired control of two Chi- that construction are successfully undermined by the cago banks and then, among other things, caused the arguments the Applicant has advanced to support the acquired banks to purchase from it at a discount and construction upon which it insists. without recourse notes of questionable value that it To begin with, I am not persuaded that to interpret held, resulting in a forced temporary closing of the Chicago banks.29 The House Committee, in reporting "discount" in Section 6(a)(4) as including a purchase of commercial paper by way of discount would inject out H.R. 6227, which contained a provision identical a discordant note in the provisions of Section 6(a)(3) to Section 6(a)(4), adverted to the Bankers Discount situation at two places in its Report.80 In the course read as a whole. It seems to me too narrow a view to say that Section 6(a) was only designed to prevent a of its discussion of the self-dealing limitations of what bank from relying on the worth or credit of an afis now Section 6(a) of the Act, it cited the Bankers filiated company in the conduct of its banking activi- Discount situation as a striking example of "the inties. I think the broader aim of Section 6(a), as adequacy of the [then] existing law with respect to revealed by all its subdivisions, was to remove the self-dealing between bank holding companies and danger that a bank holding company might misuse their subsidiary banks". And as a reason for includthe resources of a bank it controls to gain an ading self-dealing provisions in the form now found in vantage for itself or other subsidiaries it also controls. Section 6(a) of the Act, the Report stated: This a holding company might otherwise do by caus- "Your committee feels that to fail to prohibit selfing a controlled bank to provide equity or working dealing between bank holding companies and their capital, directly or indirectly, to the holding company subsidiary banks would be to invite a repetition of the [Bankers Discount] situation described above."31 or another subsidiary, or by otherwise financing the business operations of such an affiliate. To interpret To accept the Applicant's limited construction of "discount" as used in Section 6(a)(4) in the full sense the term "discount" in Section 6(a)(4) would be to of that term as established by commercial usage is hold in effect that Congress, notwithstanding its entirely consistent with that aim. For, obviously, a clearly explicated anxiety to guard against a recur- bank's resources might be used to finance the operarence of a Bankers Discount situation, nevertheless tions of a parent or other affiliated company just as failed to make adequate statutory provision therefor. much through purchase of commercial paper without For, either a bank's purchase without recourse of recourse, as through purchase with recourse, or by notes from an affiliated company—the precise situa- means of a loan against the pledge of such paper. M tion in the Bankers Discount case—is prohibited Further, I am not persuaded that a broad construction of "discount" in Section 6(a)(4) would create 28 See, for example, Hearings before House Committee on perforce an inconsistency with Section 6(a) (3). Sec- Banking and Currency on H. R. 2674, pp. 165, 210, 216, 84th Cong. 1st Sess.; Hearings before Subcommittee of the Senate tion 6(a)(3) was evidently designed to cover a trans- Committee on Banking and Currency on S. 880, S. 2350 and action which is in reality a loan transaction, but which H. R. 6627, p. 65, 84th Cong. 1st Sess. (testimony of Governor takes the form of a purchase and repurchase agree- Robertson). 29 The facts concerning the Bankers Discount Corporation ment. By its terms it spells out a prohibition against situation are set out at length in H. Rep. 609, p. 18, 84th Cong. a specific type of transaction, and goes no further. It 30 Ibid., pp. 4, 1819. confers no affirmative right with which the "discount" 81 The Senate Report does not specifically mention the prohibition, no matter how broadly construed, may Bankers Discount situation. But the Senate appears to have shared the House's concern, as is revealed by the following be found inconsistent. And even if Section 6(a)(3) passage from its Report (S. Rep. 1095, p. 4, 84 Cong.): ". . . fear has been expressed that, improperly but within 82 This is aptly illustrated in the case of Industrial Finance the present law, a bank holding company may take undue Co. of Wellston. Before passage of the Act, that company advantage of one or more banks in its system. This it might obtained working capital for its dealer finance activities by do by discounting commercial paper at the bank with result- borrowing against such paper from Bank of St. Louis. After ing profit to the bank holding company but at an unwarranted such borrowing was outlawed by the Act, the company conrisk to the bank or its shareholders. No widespread abuse of tinued to obtain its working capital from Bank of St. Louis, this nature has been brought to the attention of your committee, except that now it sold the paper instead of borrowing against but the provision in the bill prohibiting upstream lending it. The procedure was changed, but the net result remained the should adequately prevent the possibility of any such abuse." same, except for diminution in the protection to the bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

285 LAW DEPARTMENT may read as reserving by implication whatever rights than the self-dealing prohibitions, were "designed to a holding company bank might otherwise have under remove the danger that a bank holding company the law to make purchases without repurchase agree- might misuse or abuse the resources of a bank it ments, this does not preclude the "discount" provision controls in order to gain an advantage in the nonof Section 6(a)(4) from being construed as imposing banking activities it controls." (S. Rep. 1095, p. 14, a limitation or restriction on such rights. Indeed, 84th Cong.) Thus, the same public policy considerasuch a construction is not only permissible, it is tions that led Congress to condemn horizontal and entirely reasonable. It would both give full meaning upstream lending and investments by a holding comto "discount" in its accepted usage and at the same pany bank would seem to apply as reasons for not time comport with the ends that Congress sought to allowing a holding company to retain loan companies achieve, as revealed by the legislative history adverted that look to the resources of affiliated banks to proto above. Nor would it otherwise negate the implica- vide needed working capital for their own lending or tion said to be contained in Section 6(a)(3). This is dealer financing activities. The potential danger in so because bank discounts, as commonly understood, such a relationship of the "misuse or abuse [of] the apply to financial transactions involving notes, bills of resources of a bank" is certainly no less because the exchange and the like, and not to a bank's acquisition self-dealing may take a form that is deemed techthrough purchase of other assets, securities or obliga- nically outside the reach of Section 6(a). Apart from tions, such as, for example, corporate stocks, bonds the "discount" question, therefore, I do not think it or debentures. can be said of the three loan companies now under The Applicant's argument, that the coupling of specific consideration that they sustain a relationship the word "discount" with the words "loan" and "ex- to the Applicant and its banking subsidiaries of a kind tension of credit" denotes an intent to have "dis- which would, in the words of the Board in the Transcount" apply only to transactions that involve loans america case, "substantially escape the 'potential made by a bank to an affiliate, is even less persuasive. sources of evil' against which the general prohibition The words "loan" and "extension of credit" do not [of Section 4] was directed." This is an additional have synonymous meanings,83 and it seems unlikely reason for concluding that divestiture exemption of that Congress would have inserted the word "dis- such companies would not carry out the purposes of count", which, in ordinary usage has a broader mean- the Act.36 ing than "loan", had it merely intended that word to The cases of Industrial Loan Co. and Baden Loan cover the same ground and no more.34 Co. stand, I think, in a different posture. As found For the reasons stated, I construe Section 6(a)(4) as above, these companies are operated for all practical precluding dealings of the kind that are engaged in purposes as if they were loan departments of the with GCC banks by the five loan companies whose banks to which they are respectively attached. Were cases have not previously been disposed of. I there- it not for my conviction that the "discount" provision fore find on that basis alone that the GCC bank- of Section 6(a) (4) precludes a "proper incident" findrelated activities of the companies in question are not ing, I would have found that the situations presented such as to be a "proper incident" to the business of in the cases of Industrial Loan Co. and Baden Loan banking or of managing or controlling banks, as con- Co. are such as to "substantially escape" the potential ducted by GCC and its banking subsidiaries. sources of evil against which the Act's divestiture 3. Added considerations. Even if Section 6(a) (4) provisions were aimed, and that their retention would were construed as not quite reaching discounting accord with the purposes of the Act. transactions involving purchases without recourse, this 4. In sum. For the reasons set forth above, denial would not leave unobstructed the Applicant's path to will be recommended of each of the exemption apdivestiture exemption in the cases of Industrial Fi- plications—docketed as BHC-8 to 17, inclusive— nance Co. of Wellston, General Contract Loan Co., covering the 10 direct loan company subsidiaries of and SIC Loan Co. The question would still remain GCC. as to whether their relationship to the banking business conducted by GCC is such as to make divestiture IV. THE THREE INSURANCE COMPANIES unnecessary to carry out the purposes of the Act.35 A. Their History and the Reasons for Their The divestment requirements of the Act, no less Organization 33 The phrase "extension of credit" is broader than the word 1. Washington Fire and Marine Insurance Com- "loan", and can include such things as guaranteeing someone else's debt or issuing a letter of credit against which someone pany, (a) Washington Fire and Marine Insurance can draw. Co. (herein Washington) was organized by Industrial 34 It is noteworthy that an earlier bill to provide for the con- Bank and Trust Co.—GCC's predecessor corporation trol and regulation of bank holding companies—S. 1118, on which the Senate Banking and Currency Committee held hear- —in 1940. ings in 1953—contained a provision identical to the present (b) At about that time companies engaged in autosection 6(a), except for the omission of the word "discount" mobile dealer sales financing were experiencing great in subdivision (4) thereof. During the hearings on that bill the story of the Bankers Discount situation, which had occurred difficulty in maintaining stable relationships with earlier that year, was first reported to the Senate Committee established independent insurance carriers. During by the then chairman of the Federal Deposit Insurance Cor- the late 1930's, insurance carriers had suffered losses poration. (See H. Rep. 609, p. 18, 84th Cong.) The fact that later Senate bills inserted the word "discount" in subdivision on physical damage insurance coverage of financed (4) of the self-dealing section may well suggest that the inser- automobiles, and the trend of the major independent tion was specifically and deliberately designed to cover a situation, such as occurred in Bankers Discount, where the discount by a bank of notes held by an affiliated company is in the 86 As found above, the operations of these companies consist form of a purchase without recourse rather than in the form in substantial part of acquiring consumer paper and funneling of a loan. such paper into Bank of St. Louis. The Board may also care 35 This is entirely apart from the question of whether the to consider whether such operations, and the possibility of their relationship is sufficiently substantial to qualify as "closely later extension to other branches or areas, are consistent with related", a point as to which there may be grave doubt, in the the purposes of the Act with regard to branch banking. No case at least of SIC Loan Co. opinion on that question is expressed here. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 FEDERAL RESERVE BULLETIN • MARCH 1958 insurance companies was to withdraw from that type Securities Investment Co. of St. Louis, then unafof coverage. As a result, the leading national sales filiated with GCC. SIC, like other finance companies finance companies were led to organize their own in- at the time, was prompted to organize its own insursurance carriers. General Motors Acceptance Cor- ance carrier because of the difficulty it was experporation, Commercial Credit Corporation, C.I.T. Cor- iencing in maintaining insurance connections for its poration and Associate Investment Company, among automobile dealer finance business. Midwestern, after other major finance companies, organized their own it was formed, became the recipient of all SIC's insurance carrier affiliates during the period from insurance business, and until World War II SIC was 1938 to 1940. Midwestern's only client. When the automobile fi- (c) Industrial Bank and Trust Co. was led to form nancing business dried out during the war years, Mid- Washington for like reasons. Previously, Industrial western, in order to put its assets to use, broadened and its affiliated companies had effected the necessary the area of its operations by entering the field of fire insurance arrangements on their automobile dealer and extended coverage insurance on real estate. With finance business through Clark C. Bland, an inde- the resumption of automobile sales at the end of the pendent insurance agent in St. Louis specializing in war, Midwestern discontinued new writings of real that type of insurance. Bland, however, began to estate insurance, and again confined its writings to experience increasing difficulties in the placement of automobile physical hazard insurance on automobiles such insurance. Finally, in 1939, Bland suggested financed by SIC. that Industrial ought to organize its own insurance (b) In 1952, GCC obtained indirect control of carrier as a matter of self-protection in the event that Midwestern by its acquisition of 94 per cent of the outside connections could no longer be maintained. stock of SIC. Later, SIC transferred to GCC its Acting on Bland's suggestion, Industrial caused Wash- stockholdings in Midwestern; the capital stock of ington to be organized as a Missouri insurance com- Midwestern was doubled; and the added shares were pany in 1940. purchased by an unaffiliated holding company, St. (d) For some time after Washington was formed, Louis Insurance Co., which today shares equally with it was held mainly on a standby basis, and Industrial GCC the stock ownership of Midwestern. continued to place much of its business and that of (c) As of December 31, 1956, Midwestern had its subsidiaries with outside insurance companies, total assets of $4,960,607, total liabilities of $2,665,through Bland. But Industrial ran into recurrent 531; paid-up capital of $1,000,000 and surplus of placement difficulties and also suffered several un- $1,295,075. In 1956, Midwestern had a total net satisfactory experiences in the form of cancellations income before income taxes of $397,504, of which and the like. In the course of time, Industrial, and $34,028 represented underwriting gains and the ballater GCC, turned more and more to Washington to ance investment and other income. Its net income meet its own and its subsidiaries' insurance needs in after income taxes in 1956 was $264,338. the automobile dealer financing aspect of its business. 3. Insurance Company of St. Louis, (a) Insur- Today, the GCC subsidiaries, both banking and non- ance Co. of St. Louis37 was organized in 1950. Its banking, use Washington and its affiliated companies capital was contributed in equal shares by Washingexclusively as their insurance connection for auto- ton and by St. Louis Fire and Marine Insurance Co., mobile physical damage insurance. an operating subsidiary of St. Louis Fire Insurance (e) During World War II, when the automobile Co., which then, as now, was a joint participant with financing business came to a virtual standstill, Indus- Washington in a pooling arrangement to be hereintrial moved into the field of financing the construc- below more fully described. The new company was tion and sales of housing, mainly under FHA Title formed for the purpose of expanding the operations of the two other companies then in the pool. Through II. Simultaneously, the scope of Washington's operathe pyramiding device of employing existing assets tions was expanded to include the writing of fire and of the two companies to provide capital for the third, extended coverage insurance on dwellings. There is it was possible, without the injection of new outside evidence indicating that in Washington's early years, capital, to show more aggregate assets that might be the Industrial Bank and Trust Co., in order to draw used as a base to enlarge the aggregate amount of inbusiness to Washington, often insisted as a condition surance all three companies might write. Moreover, to the making of certain types of real estate loans that the addition of a new operating company made posborrowers place their business with Washington. But sible the appointment of additional agents to serve that practice appears to have been discontinued some areas already occupied by agents of the other two time ago. After the war Washington remained in the companies, thus adding to the business-getting potenfire insurance field, and to spread its risks, as well as tial of the combined companies. It also provided the for other reasons, expanded the area of its operations. insurance group with a company that might be quali- Most of its premium income today is derived from fied in certain states to write insurance at less than real estate fire and extended coverage insurance. manual rates, and thus meet the competition of mu- (f) All of Washington's capital stock is owned by tuals and direct writers who write at downward devia- GCC. As of December 31, 1956, Washington had tions.38 total assets of $7,650,772, total liabilities of $5,219,- (b) Insurance Co. of St. Louis now has 2,000 816, paid-up capital of $1,000,000 and surplus of shares of $50 par value preferred stock and 9,000 $1,430,956. In 1956, Washington had a total net shares of $100 par value common stock, the ownerincome before income taxes of $383,607, of which ship of which is equally divided as aforesaid. The $68,056 represented net underwriting gains and the company's financial statement as of December 31, balance represented investment gains and other income. Its net income after taxes came to $248,234. 37 Not to be confused with St. Louis Insurance Co. or St. 2. Midwestern Fire and Marine Insurance Com- Louis Fire and Marine Insurance Co. pany, (a) Midwestern Fire and Marine Insurance 38 At the present time Insurance Co. of St. Louis operates in Missouri and in many other States at a downward deviation Co. (herein Midwestern) was organized in 1939 by from the manual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 287 1956, shows total assets of $5,100,765, total liabili- their automobile lending and financing transactions, ties of $2,658,892, paid-up capital of $1,000,000 and and, more particularly, to facilitate the dealer finance surplus of $2,441,873. In 1956, it had a total net operations in which such banks and other subsidiaries income before taxes of $408,427, of which $34,028 are engaged. The master policies are designed to represented underwriting gains and the balance invest- give the banks and other subsidiaries the maximum ment and other income. Its net income after taxes insurance protection available to protect them from came to $279,428. losses resulting from collision, fire, theft and other physical hazards. B. Operational Integration of the Three Companies 2. Under the terms of the master policies, all automobiles covered by acquired dealer finance paper or 1. Washington, Midwestern, and Insurance Co. of pledged by borrowers as security for loans are auto- St. Louis, along with the GCC unaffiliated St. Louis matically insured—except in those situations where Fire and Marine Insurance Co., conduct their insur- insurance arrangements satisfactory to the lending or ance activities as a single integrated joint enterprise. financing subsidiary have otherwise been made by the All four companies are operated by an independent dealer or customer himself. The insurance on any company, General Insurors, Incorporated, under man- particular automobile goes into effect immediately agement contracts. None of the insurance companies upon approval by the GCC subsidiary of the loan or has any paid employees of its own. finance transaction, without any need for advance 2. Under the management contracts, General In- notification or risk approval by the insurance comsurors assumes supervisory control over all operations panies. The purchaser or borrower receives a cerof the companies, except those relating to investments. tificate of coverage when he executes the approved It also furnishes all necessary executive and clerical finance or loan papers, and the automobile, if an personnel, and all office space and equipment, essen- original purchase, is insured from the moment it tial for the companies' business operations. In con- leaves the dealer's floor. The insurance provided for sideration for its management services, General In- is double interest, protecting not only the interest of surors receives 6 per cent of the gross premiums. the purchaser or borrower, but also that of the af- The management contracts do not extend to dividend fected GCC subsidiary separately, the latter's interest policies or investments. Such matters are handled by remaining protected despite any change of ownership the officers and directors of the respective insurance in the automobile or any act or neglect that may companies. justify invalidation of the policy as to the purchaser 3. As among themselves, the four companies have or borrower.39 Though the policies reserve to the inan inter-company pooling arrangement. All premiums surer the right to cancel out the interest of the purreceived, regardless of the company which writes the chaser or borrower upon appropriate notice if he is policy on which a premium is paid, are placed in a later found an unsuitable risk, they also provide that common fund and are credited to the four companies such cancellation shall not affect the interest of the in the following percentages: GCC subsidiary, which, in the event of such cancellation, thereafter remains protected by single interest St. Louis Fire and Marine Insurance Co. 33% Washington Fire and Marine Insurance Co. 33% coverage.40 The master policies also contain a so- Insurance Co. of St. Louis 16% called "conversion" clause which protects the interest Midwestern Fire and Marine Insurance Co. 16% of the affected GCC subsidiary in the loan or dealer Similarly, all underwriting expenses, loss payments, paper from any loss resulting from the conversion, and loss adjustment expenses are withdrawn from the secretion or embezzlement by the borrower or the common fund and charged to the respective com- purchaser of the automobile securing the loan. panies in the same proportions. Any residue is 3. The GCC master policies are written on a retrosimilarly distributed. The four companies maintain spective basis. All premiums are pooled over a stiputheir separate identities only with respect to the manlated period of operation, called a Plan. The insuragement of their investment accounts, each handling ance companies receive for their own account 12.5 per its own. cent of the earned premiums, a percentage which is 4. The four companies referred to above are known calculated to cover roughly their actual expenses, as the St. Louis Insurance Group. Together, the including the management fee to General Insurors. companies are now qualified to do business in 44 taxes and miscellaneous expenses. The balance of States—all but West Virginia, North Dakota, Rhode 87.5 per cent is reserved to cover losses, adjustment Island and Massachusetts. Their activities are subject expenses and commissions. Any part of the 87.5 per to supervision by State regulatory authorities. Alcent balance that is not paid out for losses, and adthough authorized by their charters to write addijustment expenses during the operational period of a tional forms of insurance, the companies in the group given plan is credited to the insurance agency comnow confine their activities to the writing of autopanies as earned commissions. Although no final acmobile physical hazard insurance, trailer insurance, counting for commissions can be made under a given and real estate fire and extended coverage insurance. 5. All of the activities of the companies here under 30 The usual policy issued to an individual insured does not consideration are of a financial or insurance nature. contain such a provision. It is, however, to be found in the long form "loss payable clause" which a lienholder may insist C. Arrangements between GCC and Its Affiliated upon and usually obtain without added premium, but often only after considerable follow-uo effort. Insurance Companies Relating to Automobile 40 Such single interest added coverage is not obtainable on Physical Damage Insurance an individual policy. However, independent insurance companies have available a so-called vendor's single interest policy 1. Washington, Midwestern and Insurance Co. of which provides such secondary protection to a lender on risks insured by other carriers. Such a policy will only be written on St. Louis each has a master policy outstanding in a volume basis to cover all risks in an appropriate class. GCC favor of GCC and all of its subsidiary companies. has such a vendor's single interest policy with an unaffiliated The master policies are tailored to satisfy the insur- carrier, covering its interests on all automobile loans and dealer paper where insurance is arranged by the purchasers or ance needs of GCC banks and other subsidiaries in borrowers under individual policies with outside carriers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN • MARCH 1958 plan until all policies written thereunder have run out earned premiums) should exceed 87.5 per cent, the and the exact loss experience on that plan has been insurance companies would be required themselves determined, advance commissions, subject to later ad- to absorb the excess. According to the Applicant, justment, may be paid to the insurance agency com- there has been uncertainty each year since the insurpanies in the interim. ance companies began their operations as to whether 4. About 20 per cent of the automobile dealer fi- they would reach a break-even point on the automonance business of the GCC banking and other sub- bile finance branch of their business. For several sidiaries is handled under so-called "dealer agent" years prior to 1956, the loss ratio on such business arrangements which provide for payment to the dealer hovered between 70 and 80 per cent, a percentage of a commission, usually fixed at a flat 25 per cent, sufficient to protect the insurance companies from a on all insurance premiums received on his finance direct loss on such business, but not enough to cover business.41 Where such a dealer agent plan is in the insurance agency companies in those cases where operation, the dealer's commission is paid by the a 25 per cent commission was paid to dealer agents.43 affiliated insurance agency, and if that agency even- In 1956, an extraordinarily bad year for all automotually earns less in commissions on that dealer's busi- bile insurance companies, the loss ratio on new autoness than the commissions paid out to the dealer, it mobile finance business coming from the eight banks must bear the loss itself. was running at a rate of 90.7 per cent, and at a rate of 92 per cent on such business coming from SIC. D. The Volume and Sources of Business Done This is to be contrasted to a loss ratio during the same by the St. Louis Insurance Group year of 57.63 per cent on the insurance companies' nonfinance automobile policies, and 20.49 per cent on 1. In general, (a) During 1956, the St. Louis In- their selectively written fire and extended coverage surance Group had total gross premium receipts of insurance. $10,192,132. The sources from which such premium (d) The Applicant considers that the profitable receipts were derived are broken down as follows: nonfinance lines, emanating mainly from outside sources, are essential to it, if it is to continue to main- Dollar Approx. percentage Source amount of total tain its finance automobile physical damage insurance 8 GCC banks 707,451 7 on a sound and stable basis. It points out particu- Other GCC affiliates 2,093,325 20 larly that in years such as 1956, the profitable non- Unaffiliated sources 7,391,356 73 finance lines serve to subsidize losses incurred on the Total 10,192,132 100 finance line. Without the other lines, it asserts, it would be hazardous for the insurance companies to (b) Of the $707,451 derived from GCC bank maintain their present arrangements with GCC under sources, $663,186, or approximately 6.5 per cent of which the finance insurance line is carried for GCC's the total premium receipts, represented premiums for banking and other subsidiaries. physical damage insurance on automobiles securing 2. Placements by GCC banks with affiliated insurloans and dealer paper held by such banks, and the ance companies of fire and extended coverage insurbalance of $44,265 represented premiums for fire ance on property securing real estate loans held by and extended insurance coverage on real estate under such banks. The accompanying table shows the exmortgage to such banks. All of the $2,093,325 detent to which the real estate loans of each of the rived from GCC nonbanking affiliates represented eight GCC banks, outstanding on December 31, 1956, premiums on automobile physical hazard insurance. were covered by insurance placements with com- Of the $7,391,356 from unaffiliated sources, over panies in the St. Louis Insurance Group: $6,000,000 represented premiums on real property fire and extended coverage insurance, and the balance INSURANCE COVERAGE OF PROPERTY SECURING REAL represented insurance on mobile homes and auto- ESTATE LOANS 1 mobile physical damage insurance written on an individual selective basis through outside agents. December 31, 1956 (c) The St. Louis Insurance Group's outside insur- Number of Number of Number of ance business constitutes a profitable operation. The accounts accounts accounts owned same is true of the automobile physical damage and owned and serviced but serviced real property fire insurance business that is derived Bank serviced for others by others from personal and real estate loans made by the GCC banking subsidiaries. The insurance derived from In- In- Inthe automobile dealer finance business of the GCC Total sured Total sured Total sured subsidiaries does not, however, allow for a profit to the insurance companies—as distinguished from the St. Louis 1,243 643 2,975 1,608 1,288 86 insurance agency subsidiaries. This is because the Northwestern. .. 546 24 224 553 8 Jefferson-Gravois 131 28 0 0 1,255 0 retrospective arrangement with GCC, discussed above, Baden 723 8 37 0 688 0 permits the insurance companies a maximum reten- Quincy 785 120 0 0 75 0 tion of 12.5 per cent of earned premiums after losses C. and I 498 161 1,630 645 4 0 Benton 407 0 0 0 0 0 and adjustment expenses have been paid, a percentage Zeigler 446 0 0 0 83 2 calculated to cover actual operating costs only.42 There is, however, some possibility of loss to the in- 1 Fire and extended coverage insurance placed with affiliated St. surance companies on that class of business. For, if Louis Insurance Group by eight GCC banks. the loss ratio (losses and adjustment expenses to 43 About 20 per cent of the automobile dealer accounts of GCC subsidiaries are on a dealer agent plan. On business not 41 Such "dealer agent" arrangements are commonly offered by handled under a dealer agent arrangement the commission to the major finance companies. the insurance agency subsidiary would be represented by the 42 The insurance agency subsidiaries, however, are in a posi- difference between the loss ratio and 87.5 per cent. In other tion to earn substantial profits through retrospective com- words, in the case of a 70 per cent loss ratio, the commission missions. would come to 17.5 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 289 3. GCC placements of automobile physical dam- E. Considerations Bearing on GCC's Need of Its age insurance, (a) During 1956, the GCC subsi- Insurance Company Subsidiaries as an Aid to the diaries, both banks and others, financed a total of Business Conducted by Its Banks 56,895 automobiles, both directly and through the acquisition of dealer paper. Insurance covering 1. As found above, the activities of GCC's insur- 35,606 of the cars thus financed—or 63 per cent of ance company subsidiaries relate to activities of GCC the total **—was placed with affiliated insurance com- banks with regard to real estate loans, direct personal panies. The following shows the distribution between loans secured by automobiles, and acquired automo- GCC banks and other GCC subsidiaries: bile dealer paper. Other 2. GCC makes no claim that it requires an insur- Number Banks subsidiaries Total ance company affiliate of its own for the efficient con- Dealer paper loans 17,802 29,481 47,283 duct by its banks of their real estate lending activi- Personal loans 4,459 5,153 9,612 ties. The record is clear that the writing of fire and Total loans 22,261 34,634 56,895 extended coverage insurance on real property is a Cars insured with affiliates: profitable operation for insurance companies gen- Total cars 9,331 26,275 35,606 erally; that there is considerable competition among As a percentage of total number them for that class of business; and that banks have of cars financed (rounded figures) 42 76 63 never experienced difficulty in arranging for such (b) In the case of the banks, separate figures are insurance. GCC does claim, however, that the operaavailable as to each bank showing with respect to tion of its profitable fire and extended coverage line both personal loans and dealer paper, the propor- is necessary to provide stability for, and at times to tions of insurance placements made with affiliated subsidize, its dealer finance automobile physical insurinsurance carriers. They are set out in the accom- ance line. panying table. 3. As for personal loans secured by automobiles, GCC also concedes that its banks do not necessarily AUTO ACCOUNTS INSURED BY AFFILIATES FOR GCC require an insurance affiliate of their own to enable BANKS BY PERSONAL LOANS AND DEALER PAPER them to arrange the necessary insurance on such loans. Individuals who are considered good credit Number insured by risks by banks are normally also considered good affiliated companies insurance risks. The loss ratio on that type of risk Number has usually been found satisfactory to insurance com- Bank requiring As percentinsurance age of panies, and there has always been an active and Total number competitive market for business of that kind. But, requiring while conceding that an insurance company affiliainsurance tion is not a sine qua non for direct automobile St. Louis: lending, GCC urges that such an affiliation is never- Personal loans 791 392 49.56 theless desirable as a means of facilitating its banks' Dealer paper 5,284 3,310 62.64 direct lending operations. To support that position, Purchased from GCC Texarkana— GCC points out (1) that such an affiliation relieves a Personal loans 337 221 65.58 borrower from himself making the necessary insurance Dealer paper 1,961 1,611 82.14 arrangements and thus expedites the making of a Northwestern: loan; (2) that where insurance is placed with an Personal loans 608 210 34.53 affiliated carrier under the GCC master policy the Dealer paper 1,264 236 18.67 bank is automatically assured of the maximum pro- Jefferson-Gravois: tection; and (3) that a borrower's insurance place- Personal loans: 457 Dealer paper 1,799 414 23.21 ment with an affiliated carrier results in the saying of considerable clerical time that must otherwise be Baden: Personal loans 493 devoted in following up the insurance to assure that Dealer paper 31 22 70.97 the borrower has effected proper insurance, that such Quincy: insurance is being properly renewed, and that the Personal loans 273 53 19.41 bank's interest as lienholder is properly indicated and Dealer paper 2,958 1,240 41.95 protected by a sufficient loss payable clause. C. and I: 4. With regard to the automobile dealer finance Personal loans 1,024 188 18.35 Dealer paper 4,013 1,364 33.98 phase of the banks' activities, GCC insists that an insurance company affiliation is not only desirable Benton: Personal loans 340 but is indispsensable. The facts upon which it relies Dealer paper 344 76 22.09 to support that contention are set out below. Zeigler: 5. In the automobile dealer sales finance field, it Personal loans 136 has always been considered essential that the dealer Dealer paper 148 13 8.78 himself, or else the financing company, have an ar- Totals: rangement with an insurance company to provide the Personal loans 4,459 1,063 23.83 necessary insurance protection on all dealer paper Dealer paper 17,802 8,268 46.54 acquired by the financing company from the automobile dealer. If such insurance arrangement is to 44 In 1955, the percentage was 90 per cent. The decline in be considered satisfactory, it must provide for auto- 1956 was explained as due to (1) more aggressive solicitation matic coverage on each automobile sold under an by mutual companies of the more desirable insurance risks; (2) the strengthened buyers' market in 1956 that made it more instalment payment contract, the coverage taking efdifficult for dealers to control their customers' placement of fect from the moment the sale is effected by the insurance; and (3) the fact that GCC in 1956 had fewer pack- dealer and without advance clearance by the insurage deals which included insurance as part of the financing ance company. Provision must also be made for arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN • MARCH 1958 separate coverage of the lienholder's interest regard- F. As to the Present Availability from Outside less of any policy cancellation as to the owner of the Sources of the Requisite Insurance for automobile. In addition, in order to acquire business Automobile Dealer Business from certain dealers, it is sometimes necessary for the financing company to be able to produce a commis- 1. Insurance policies of the kind required in autosion on the insurance for the dealer. mobile dealer financing—which automatically assure 6. Traditionally, in the sales finance field the re- coverage on all financed automobiles delivered—are sponsibility to arrange for such insurance has fallen regarded by most of the leading insurance comupon the financing company in situations where panies as an undesirable form of risk. Such finance dealers have no insurance connections of their own. insurance, though carrying the same manual rates as GCC considers that its banks, in the acquisition of do individual policies written on a selective basis, automobile dealer paper, compete for business pri- provide a greater hazard to the insuror. There are marily with the national sales finance companies, a number of reasons for this. Under a finance policy, rather than with other banks.45 The leading national the insuror is not in a position to screen applicants automobile sales finance companies have their own in advance to eliminate undesirable risks, but must, insurance company affiliates which they employ as initially at least, accept all risks offered, the bad along adjuncts to their dealer finance activities. Such com- with the good. And even though it may later cancel panies offier dealers a complete package, including the policy if a post-audit reveals the insured to be an inventory financing, customer financing and insurance undesirable risk, it must nevertheless continue to facilities. Their arrangements with dealers provide provide coverage on the lender's mortgage interest not only for prompt clearance of credit while a cus- until the owner's note is paid. Moreover, many of the tomer is on the floor, but also for immediate and better insurance risks are creamed off through inautomatic insurance coverage on automobiles sold dividual policy arrangements made by customers, from the moment of delivery by the dealer. More- while risks that are rejected by other companies over, as part of the consideration for the acquisition usually find their way back to the dealer. Also, an of business, the national finance companies com- individual who places his insurance through a dealer monly make arrangements with dealers for dealer ordinarily has less equity in the automobile than one participation in insurance commissions. Such ar- not financing, and so may be less inclined to take care rangements are facilitated by reason of their insur- of his automobile. For these and other reasons, ance company affiliations. risks covered by automobile finance policies are con- 7. GCC believes that its banks must be in a posi- sidered to be of a substandard average. Experience tion to offer dealers comparable services and ad- has established that the ratio of losses to earned vantages if they are to compete successfully with the premiums has always been substantially higher on national finance companies for dealer business. And automobile dealer finance policies than on individual to do so, according to GCC, it is important for its automobile policies. According to one witness, the banks to have a stable insurance company connection loss ratio normally runs from 10 to 20 per cent in which they can rely on a continuing basis to higher. provide the requisite type of coverage in all the areas 2. Reference has earlier been made to the insurin which they operate. GCC emphasizes that such a ance situation in the late 1930's that prompted the connection is now provided by its affiliated insurance formation of Washington and Midwestern, as well as companies, and with it the means by which its banks the formation of affiliated insurance carriers by the are in a position to arrange where necessary for the leading national sales finance companies. The record payment to a dealer of a guarantee commission on reflects that that situation has never been fully corthe insurance the dealers' business produces. rected. Though there have been periods of a rela- 8. GCC explains the ability of several other large tively available market for the placement of autobanking institutions in the St. Louis area to obtain mobile dealer finance insurance, there have also been substantial slices of available dealer business, though years when the market for this class of insurance has they have no insurance affiliations of their own, as been extremely limited. At present—according to the due in large part to the fact that they finance dealers evidence in this record—there is a dearth of indewho have access to outside companies or who have pendent insurance companies interested in insuring been able to arrange for insurance on their own all automobiles financed by a particular bank or particular business. But, it points out, the fact that finance company—at least in the St. Louis area. Witthere are dealers for whom insurance is otherwise nesses for the Applicant—including two of St. Louis' available is only a partial answer to the problem of leading insurance brokers—testified persuasively that banks, such as the GCC banks, that desire to main- under present conditions it would be virtually impostain a dealer plan operation in competition with na- sible for GCC to establish and maintain with an tional sales finance companies. To do so, it says, such independent insurance company a fixed, stable and banks must be in a position to offer the complete continuous relationship, such as it now enjoys with package that the national finance companies offer— its own insurance company affiliates, which would including insurance; otherwise, their area of opera- provide on a volume basis the requisite insurance tions in the automobile dealer field must necessarily coverage for all automobile dealer accounts handled be restricted to direct lending and to the solicitation by the GCC banking and other subsidiaries in all the of business from those dealers only for whom inde- areas in which they now operate. pendent companies may be willing to arrange finance 3. That is not to say, however, that automobile insurance. finance insurance is altogether unavailable. The same 45 As of December 1956, the national holdings by sales finance witnesses for GCC conceded that, while it would be companies of automobile dealer paper amounted to $7,283 mil- virtually impossible to make insurance arrangements lion as contrasted to $3,579 million in automobile paper pur- applicable to GCC's entire volume, it might neverchased by banks, a ratio of roughly 2 to 1. (Federal Reserve BULLETIN, March 1957, p. 317.) theless be possible, even under present conditions, for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

291 LAW DEPARTMENT GCC or its banks to arrange with independent insur- panies are a "proper incident" to the business of manance carriers, at least under a retrospective plan, for aging or controlling banks, and (b) that it is unnecesfinance insurance on a selective basis, selective as to sary for the prohibitions of Section 4 of the Act to the areas or dealers involved.40 Moreover, the rec- apply in order to carry out the purposes of the Act. ord shows that there are other banks in the areas Whatever my own views of Section 4(c)(6) might where the GCC banks operate—particularly in the have been before, I must now read Section 4(c)(6) in St. Louis area—that are able to handle substantial the light of the interpretation given it by the Board amounts of automobile dealer business, and to have in its recent decision in the Transamerica case. As such business covered by the necessary finance insur- the Board , explained in that decision, the phrases ance even though they have no insurance company "proper incident" and "purposes of this Act", as used affiliations of their own. Such insurance, however, is in Section 4(c)(6), must be considered both with referusually arranged for by the dealer himself. General ence to the meaning of the term "incident" as ordi- Motors dealers, for example, are privileged to avail narily understood and with a view to the potential themselves of the insurance facilities of Motors In- sources of evil which Congress considered inherent surance Co., even though they do not utilize the in a corporate combination of banking and nonbankfinance services of General Motors Acceptance Cor- ing companies and therefore sought to remove poration. In addition, insurance brokers are some- through the general prohibitions of Section 4. The times able to place a limited amount of finance in- Board said: surance with independent companies by including "This clear purpose of Section 4, namely, 'to remove along with it a sufficient amount of other clearly . . . potential . . . sources of evil', provides a helpprofitable lines to make the entire package attractive ful guide in applying the requirements of Section to the insurance carrier. Also, there are a few in- 4(c)(6). If a nonbanking business is a 'proper insurance companies operating in the St. Louis area cident' to banking or to managing or controlling that are willing to undertake finance business under banks, that is, if it properly and 'naturally appertains' a retrospective plan, with a 20 to 25 per cent premium thereto, it is less likely to cause a bank to be influretention to themselves, and with the amount of com- enced by the 'unnatural' or extraneous considerations missions made dependent upon the extent, if any, to or temptations that are 'potential sources of evil'. which the loss ratio as established by experience is Hence it is more likely to accord with the purposes less than the balance.47 The independent companies of the Act. which will accept such insurance are, however, "In other words, when Section 4(c)(6) refers to usually selective as to the dealers whose business they 'proper incident' and to 'the purposes of this Act', it will take. Moreover. GCC regards a 20 to 25 per uses the terms jointly to limit the exemption of the cent premium retention as too high to allow a suffi- statute to situations which substantially escape the cient margin for payment to a dealer of a fixed com- 'potential sources of evil' against which the general mission on the insurance his business produces in the prohibition was directed.'* (Emphasis supplied.) cases where such payment is necessary in order to get the dealer's business, and therefore unsatisfactory for In the Transamerica case, the Board recited some its purposes. of the potential evils considered by Congress to be inherent in common corporate control of banks and G. Analysis and Concluding Findings nonbanking organizations. One of them was: as to the Insurance Companies ". . . that a holding company, in extending credit, might exert pressure on borrowers to do business The record demonstrates clearly enough that there with the lending bank's affiliated corporations rather exists a direct and specific functional relationship than with their competitors, thus denying those borbetween the three insurance companies here involved rowers an appropriate freedom of choice." and the business of banking as conducted by GCC and its banking subsidiaries.48 For purposes of deci- There are indications in the legislative history that Congress' concern over the possibility of such pression here, it is unnecessary to assess the substantiality sure specifically extended, inter alia, to a situation of that relationship in terms of quantitative or other considerations.49 The more basic issue, as I see it in where a holding company bank might condition the making of a loan upon the placement of insurance the insurance company cases, is whether the relationwith or through an affiliated company.50 ship that exists, even if substantial, is of a kind that would support findings (a) that the insurance comso For example, during the House Banking Committee hearings, Representative Multer declared (Hearings on H. R. 2674, 46 The quality of insurance risks on finance business is p. 613, 84th Cong. 1st Sess.): measured in part by the locality of the dealer and the general ". . . we are going to say, I hope, that no banking company ch 4 a 7 r a B c y te r e li o m f in th a e ti n c g u s a to m fl e a r t s c w om ith m i w ss h i o o m n, h w e h i d ch oe s n o b r u m si a n ll e y s s. would s s h h o o u u l l d d b b e e e a n b g l a e g e t d o in sa y th e t o i n a s n u y ra n d c e e p o b s u i s to in r e s o s r . a . n y . th le a n t d n e o r b [s a i n c] k , come to about 25 to 30 per cent of the premiums, these companies are able to spread by that much the net to them of the inferentially or otherwise, 'We have an insurance company premiums available to cover losses. Most companies, however, upstairs. You better carry your insurance there'. ... I think are unwilling to write insurance on a retrospective plan, for they are two entirely seDarate and distinct businesses. It got such a plan, while producing a greater margin of safety to the so bad in the State of New York that we had to write into insurance company, also imposes a ceiling on their maximum the law a provision that no mortgagee can insist that it will return. place the insurance that is required by the mortgage, and they 48 In the context of the issues of this proceeding, Washington, cannot even insinuate today that it would be nice if you Midwestern and Insurance Co. of St. Louis—along with the carried your insurance with a particular company." GCC unaffiliated St. Louis Fire and Marine Insurance Co.— Further, during the Senate debates on the bill which ultimately must be viewed as if they were a single company. In the gen- became law, Senator Humphrey, opposing Senator Capehart's eral conduct of their insurance operations they are so closely amendment that would have permitted bank holding companies integrated as to be in effect a joint enterprise. Moreover, to retain previously acquired nonbanking assets, made the point vis a vis GCC and its banking subsidiaries, all share precisely that the proposed amendment would retain the possibility of a the same kind of relationship, and to precisely the same degree. holding company subsidiary bank conditioning the making of 49 The relevant data upon which such an appraisal may be a loan upon placement of insurance with an affiliated insurmade if deemed necessary by the Board is, however, set out ance carrier, thereby giving that carrier a competitive advantage in the findings of fact made above. over others. (Cong. Rec, Vol. 102, p. 6939.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN • MARCH 1958 This case, unlike others perhaps, does not present a It is to be doubted that a business of the kind and situation where it can reasonably be said that a close breadth engaged in by the companies here may aprelationship tends to minimize the danger of tempta- propriately be classified as an "incident" to the busitions arising that are "potential sources of evil". The ness of banking, let alone a "proper incident". As kind of relationship that exists between the GCC in- was stated by the Board in Transamerica: surance companies and the GCC banks does not ". . . both legal and nonlegal dictionaries show that "substantially escape"—on the contrary it tends to the term 'incident' is used to describe something that augment—the danger of tie-in arrangements in lend- 'usually' or 'naturally' 'depends upon', 'appertains to' ing transactions that would deny borrowers an apor 'follows' another more important thing." propriate freedom of choice. And this is precisely because the insurance companies sell insurance of a Certainly it is difficult to say of the insurance comkind that borrowers require in connection with bank panies here that their business is of a kind that credit transactions. Through their power to grant or "usually" or "naturally" "depends upon", "follows" withhold the extension of credit, holding company or "appertains to" the business of banking as a "more banks, like the GCC banking subsidiaries, are in a important thing". It is true that banks frequently restrategic position to control the flow of required in- quire insurance coverage such as is supplied by the surance to affiliated companies, thereby both restrict- companies here to protect the security furnished for ing their borrowers' freedom of choice and providing loans. But that is not the only or even the primary their affiliates with a competitive advantage. In the purpose for which such insurance is written. From case of the GCC banks, this is true not only with the fact that banks utilize such insurance, it does not regard to mortgage loans and personal loans secured follow that the business of writing such insurance is by automobiles, but with regard to automobile dealer an "incident" to the business of banking. The busisales financing as well. Although conditions today ness of writing fire and automobile insurance and the may be such as to make the packaging of insurance business of banking have always been regarded as enand financing usually advantageous to the dealer as tirely separate and independent businesses. well as the banks, this may not always be so. The In the respects just noted, the situation is entirely danger remains that situations may arise where dealers different from the examples given in the Senate Report may be forced to accept insurance they may prefer to to illustrate the type of operations Congress thought obtain elsewhere in order to obtain needed bank financing.51 the exemption provisions of Section 4(c)(6) ought to reach—"the operation of a credit life insurance pro- The fact that present GCC management may be gram in connection with bank loans" or "the operation above such conduct is beside the point. GCC's com- of an insurance program [to] retire the outstanding mon equity ownership of both the banks and the in- balance of a [bank held] mortgage upon the death of surance companies, along with GCC's interest in gain- a mortgagor."53 Such operations, usually and characing a profit from each, nevertheless creates a situation teristically, are tied in with lending transactions such which Congress considered might lead to evil and as banks engage in; outside the field of lending or should be removed. That this judgment was not an credit there is no occasion for their use. It is also irrational one is reflected by an admission contained to be noted that credit life insurance, as a rule, is not in this very record, that Bank of St. Louis in the past solicited or written on an individual application basis had followed a practice of conditioning the making but is offered by the lender, usually under a master of certain types of real estate loans upon the borrow- policy covering all loans of a class. The writing of ers insuring the property with an affiliated company. such insurance by a bank affiliate would not therefore The record shows, to be sure, that that practice was place a borrower in a position where his freedom of discontinued some years ago. But, as the Board choice might be restricted in the selection of an pointed out in Transamerica, the presence or absence insuror. of actual evil is immaterial; the purpose of the Act For the reasons stated above, I reach the conclusion is "to remove what Congress considered to be poten- that the business conducted by the insurance comtial if not actual sources of evil". panies is not such, either in their own right or in As the record shows, the activities of the three intheir relationship to GCC or its banking subsidiaries, surance companies in question are not confined to the as to be a "proper incident" to the "business of bankhandling of business generated by GCC; nor, for that ing or of managing or controlling banks" and "as to matter, to the handling of bank-connected insurance generally.52 The companies within the lines they write make it unnecessary for the prohibitions [of Section 4] to apply in order to carry out the purposes of this Act". are engaged in a general insurance business. They In reaching this conclusion, I have not overlooked now write insurance in 44 States, and theirs is a the various arguments made by the Applicant. They growing business. The amount of business they do for are in the main reflected by the factual recitals made GCC banks accounts for only about 7 per cent of their total premium volume. For all GCC subsidiaries above, and need not be repeated here. The Appliit amounts to about 27 per cent. cant has indeed made a strong showing that the insurance companies are important, and perhaps even 51 It is no answer to say that national finance companies, with essential, to the GCC banks if they are to continue which GCC banks compete, are in a position to do the same in the future, as they have in the past, to compete thing. The Act does not reach national sales finance com- with national sales finance companies on equal terms panies; it does reach holding company banks. It must further for automobile dealer finance business, particularly be remembered, as the Board pointed out in Transamerica, that "banking is a unique business with unique economic power and for the business of dealers who do not have insurance responsibilities", and for that reason must be controlled by connections of their own. The Applicant has also hig 52 h e T r h a s t t a c n i d r a c r u d m s st o a f n c c e o n a d lo u n c e t. , however, is not a basis for the shown that in other respects as well the insurance determination made in this case. The Applicant argues that companies, while not indispensable to the banks' Section 4(c)(6) does not necessarily require all the activities of an insurance company to be closely related. Though that be conceded, the result reached here would be the same. ss S. Rep. 1095, p. 13, 84th Cong. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 293 operations, perform a useful service to the banks by activities are wholly of an insurance nature. They providing their customers with types of insurance act, at least nominally, in the placement of insurance that are required in connection with the banks' lend- generated by the lending and automobile dealer fiing activities. nancing activities of other GCC subsidiaries. The The considerations just mentioned, and others like business of four of the insurance agencies—Quincy them, are undoubtedly material to the question of Insurance Agency, Northwestern Insurance Agency, whether the insurance companies sustain a relation- Jefferson-Gravois Insurance Agency, and Reid-Kruse ship to the GCC banks so sufficiently substantial as —is related entirely to the handling of insurance to be regarded as a close one. But they do not placements in connection with loans or dealer paper squarely meet the precise issue on which the insur- made or acquired by the GCC banking subsidiaries ance company cases are here being decided—whether to which they are respectively attached. Four others the relationship is of a kind that satisfies the "proper —St. Louis-Washington Insurance Agency, Apex Inincident" and "purposes of the Act" requirements of surance Agency, Springfield Insurance Agency, and Section 4(c)(6). To satisfy such requirements it is Sterick Insurance Agency—are engaged mainly (to not enough to show, as the Applicant has done here, the extent of 80 per cent or more of the total busithat a particular bank holding company has in the ness of each) in placing insurance in connection with past so geared the operations of its banking subsi- loans or dealer paper made or acquired by GCC diaries to the operations of nonbanking subsidiaries banking subsidiaries, but also act as agents in the as to derive therefrom substantial benefits that may placement of insurance required in connection with be lost if the corporate relationship is severed. It loans made by one or more of GCC's subsidiary loan must also be shown that the relationship previously companies. The remaining company—Texarkana established is allowable under the existing statute as Agency—acts as the insurance agent on insurance one that would not do violence to the purposes of the placements connected with the loans and dealer paper Act. which GCC itself makes or acquires at its Texarkana The benefits flowing from the insurance company office and which it later sells to Bank of St. Louis. affiliation to which the Applicant points, and which None of the insurance agency companies, except posit fears may be lost by disaffiliation, are benefits sibly Sterick, actively solicits any insurance business which the Applicant was able to acquire only by from the public at large. utilizing the holding company device to form insur- 2. With the exception of Sterick Insurance Agency, ance company alliances that allowed it to reach into none of these insurance agency companies has an fields and to gain advantages not open to banks gen- office or employees of its own.5* Operational details erally. What the Applicant did was, of course, un- relating to the physical placement of insurance are objectionable in the absence of a governing law. But handled by the bank or loan company employees who a regulatory statute has since intervened. In deter- arrange or administer the lending or financing transmining now whether retention of the nonbanking actions. All books and records of the various insuralliances so formed would be in harmony with the ance agencies—save for Sterick, which does its own Act, primary consideration must be given to the bookkeeping—are maintained by the personnel of statutory objectives. Where, as here, the nonbanking Bank of St. Louis. relationship, no matter how close or how beneficial to the interests of the banking subsidiaries it may be, 3. The most substantial part of the premium volis not such as to "substantially escape" the potential ume handled by the insurance agency affiliates is for sources of evil against which the Section 4 prohibi- automobile physical damage insurance on dealer tions were aimed, the relationship may not, con- financed cars. As earlier found, such insurance is sistently with the will of Congress, be found either placed with GCC-affiliated insurance companies on a "proper incident" to the business of banking, or one a retrospective arrangement under which the comthat would make divestiture unnecessary "to carry missions to the insurance agency companies are made out the purposes of this Act". dependent upon the loss ratio that may be developed as a result of actual experience under the particular If carrying out the purposes of this Act may cause plan in effect for a given period. About 20 per cent the Applicant or its banking subsidiaries to lose some of the automobile dealer business is handled on a of the advantages which they now derive from the dealer-agent plan, with the dealer allowed a commispresence of the insurance companies in their holding sion, usually fixed at a flat 25 per cent, on all insurcompany structure, that is a matter beyond the conance premiums his business produces. Where dealertrol of the Board. The statute is its own measure agent arrangements are made by a GCC bank, the of what it permits and what it forbids. And it makes insurance agency attached to that bank pays to the no provision for "hardship" cases. If accommodadealer-agent the amount of commissions the bank has tion is to be made, the Applicant must accommodate agreed upon—the insurance agency being entirely its business to the statute. The Board is powerless subservient to the bank's wishes in the matter. The to accommodate the statute to fit the Applicant's speinsurance agency, however, remains bound under its cial circumstances. own retrospective arrangements with the insurance Accordingly, denial will be recommended of the companies. If the commission paid to the dealerexemption applications, docketed as BHC-6, coveragent is a fixed one and proves to be greater than the ing Washington Fire and Marine Insurance Co., Incommission ultimately earned on that business by the surance Co. of St. Louis, and Midwestern Fire and agency under the retrospective plan, the insurance Marine Insurance Co. agency is required itself to stand the loss. It may not look for reimbursement to the financing bank, V. THE INSURANCE AGENCY COMPANIES which is completely insulated from any liability for A. General Methods of Operation 1. GCC has nine wholly owned direct insurance 54 Sterick has one office which adjoins Commercial and Industrial Bank in the lobby of the Sterick Building in Memagency subsidiaries involved in this proceeding. Their phis, Tenn. Sterick also has two paid employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN • MARCH 1958 losses sustained as a result of unfavorable insurance including automobile physical damage insurance in experience. According to the Applicant's witnesses, connection with personal loans are placed with unif the banks were forced to deal with outside insurance affiliated companies. During 1956, the agency hanagents, they would be disabled from controlling in- dled a total premium volume of $103,147. Most of surance commissions and would therefore be placed this—$88,691—represented automobile physical damat a disadvantage in competing for automobile dealer age insurance premiums, 80.47 per cent of this on consumer credit paper with the national sales finance placements with affiliated insurance companies, precompanies which have their own insurance companies. sumably in connection with automobile dealer busi- 4. A somewhat less substantial but nevertheless ness. The remaining items consisted of $9,331 as significant part of the premium volume handled by premiums on real estate hazard insurance and $5,125 the insurance agency affiliates comes from automobile as premiums on credit life insurance. The company physical damage and real property hazard insurance received commissions totaling $12,441 and earned required in connection with the Applicant's personal after taxes $8,660. loan and real estate lending and servicing activities. (d) Reid-Kruse, Inc. This agency is attached to Placement details with regard to such insurance are Baden Bank, St. Louis, from which all its placement usually handled by the loan officers who arrange the business originates. In 1956, the agency had a total loans. GCC considers that by providing a medium premium volume of $41,254. Of that amount, $16,under which bank employees are enabled to handle 510 was for automobile physical damage insurance, insurance placements, the insurance agency companies 11.11 per cent of which was placed with affiliated furnish a useful and beneficial service to the banks in companies and 88.89 per cent with unaffiliated comfacilitating and expediting the making of loans and panies. The balance, all in insurance placed with in avoiding clerical follow-up details. unaffiliated companies, consisted of real estate in- 5. There is set out below additional details with surance ($20,790), credit life insurance ($3,402) and respect to each insurance agency subsidiary, showing "other insurance" ($553). In 1956, the agency rethe sources of its business, the volume and kind of ceived commissions totaling $17,362 and had net business handled by it, and where it places its business. earnings after taxes of $12,036. (a) Apex Insurance Agency, Inc. Apex, located (e) Northwestern Insurance Agency, Inc. This at Bank of St. Louis, acts as agent in placing auto- agency is attached to, and handles the business origimobile physical damage insurance required in con- nating at Northwestern Bank and Trust Co. Its nection with the automobile dealer financing activi- premium volume in 1956 was $65,999, of which by ties of Bank of St. Louis and General Contract Loan far the greater part—$59,855—was for automobile Co. In 1956, its premium volume on such business physical damage insurance, all of it placed with —all placed with affiliated insurance companies— affiliated companies. The rest—all placed with outamounted to $310,525, of which 97.4 per cent side companies—consisted of real estate insurance stemmed from Bank of St. Louis and 2.6 per cent ($3,942), credit life insurance ($1,072), boat insurfrom General Contract Loan Co. The only other ance ($746) and automobile public liability and propbusiness handled by Apex in 1956 consisted of the erty damage insurance ($385). The agency received placement with unaffiliated insurance companies of a total commissions amounting to $5,329. Its net earnrelatively small amount of credit life insurance in the ings after taxes came to $3,401. premium amount of $5,974. During 1956, Apex (/) Quincy Insurance Agency, Inc. This agency is received commissions totaling $65,351. Its net earn- located at the premises of Illinois State Bank of ings after taxes came to $36,330. Quincy, and confines its activities to the placement (b) St. Louis-Washington Insurance Agency, Inc. of automobile physical damage insurance with af- This agency, also located at Bank of St. Louis, acts filiated companies. Its premium volume in 1956 as agent on insurance placements required in con- came to $110,939; its commissions to $14,075, and its nection with personal and real estate loans made by net earnings after taxes to $9,594. Bank of St. Louis, Industrial Loan Co., Industrial (g) Springfield Insurance Agency, Inc. The busi- Finance Co. of Wellston and SIC Loan Co. During ness of this agency flows from four sources—Illinois 1956, 46.31 per cent of its total premium volume State Bank of Quincy (29.84 per cent in 1956); Bank came from Bank of St. Louis; 40.47 per cent from of Benton (35.56 per cent); The Bank of Zeigler Industrial Loan Co.; 6.57 per cent from Industrial (16.33 per cent); and Quincy Union Finance Co. Finance Co. of Wellston and 6.65 per cent from SIC (18.27 per cent). Its total premium volume in 1956 Loan Co. Its total premium volume in 1956 was $16,665, of which $9,461 was for automobile amounted to $80,624, of which $31,905 was for auto- physical damage insurance placed with affiliated commobile physical damage insurance; $37,224 for real panies, and $7,204 for credit life insurance placed estate hazard insurance; $11,179 for credit life insur- with outside companies. It received $17,738 in comance; $201.16 for automobile public liability and missions. Its net earnings after taxes came to property damage; and $115 for "Tripmaster" insur- $11,690. ance. All of the automobile physical damage in- (h) Sterick Insurance Agency, Inc. As noted above, surance and 83.71 per cent of the real estate hazard this is the only agency with its own separate place of insurance was placed with affiliated carriers. The business and employees. Most of the insurance busirest was placed with unaffiliated carriers. In 1956, ness it handles (86.02 per cent in 1956) originates in the company received $25,233 in commissions. Its Commercial and Industrial Bank, but it also handles net earnings after taxes came to $17,178. insurance business originating through another Ten- (c) Jefferson-Gravois Insurance Company, Inc. nessee GCC subsidiary—General Contract Loan This company handles the placement of insurance Brokers. During 1956, Sterick's total premium voloriginating through Jefferson-Gravois Bank, St. Louis, ume was $210,954. This included $167,238 for autoto which it is attached. Automobile physical damage mobile physical damage insurance (all placed with insurance relating to dealer paper is placed by this affiliated companies), $21,083 for real estate insuragency with affiliated companies; all other policies, ance (62.16 per cent of which was placed with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 295 affiliated companies), $7,980 for public liability and located in the States of Illinois, Tennessee and Misproperty damage insurance placed with outside com- souri. Illinois has a specific statutory prohibition panies; and $14,653 for credit life insurance, also against banks acting as insurance agents. It provides placed with outside companies. In 1956, Sterick that no bank or trust company—except a national received $55,015 in commissions. It earned after bank in cities of less than 5,000—shall be licensed to taxes $26,176. act as an insurance agent, and extends that prohibition (i) Texarkana Agency, Inc. This agency handles to "any subsidiary, affiliate, officer or employee" conthe insurance originating at the Texarkana Branch tributing, directly or indirectly, insurance commissions of GCC only. During 1956, its premium volume or fees to a bank or trust company.57 In Tennessee, was $98,978, all for automobile physical damage in- banks may not directly act as insurance agents, both surance placed with affiliated companies. It received because they are unauthorized to do so under their $13,737 in commissions and had net earnings after corporate powers, and because of a statutory provision taxes of $9,182. prohibiting the licensing of any corporation as an insurance agent.58 Tennessee, moreover, according to B. Analysis and Concluding Findings as to the Insur- testimony in the record, will not allow any insurance ance Agency Companies to be written on bank premises; hence Sterick Insurance Agency's separate but adjacent quarters in the 1. The factual findings made above establish building where Commercial and Industrial Bank is clearly enough that—except for Texarkana which housed. In Missouri, according to an unpublished will be considered separately below—each of the 1936 Missouri Attorney General's Opinion, in eviinsurance agency subsidiaries here involved sustains dence, trust companies and banks having trust a direct and substantial functional relationship to powers59 have the corporate power to act as insurone or more of the GCC banking subsidiaries. The ance agents. As a practical matter, however, this is real issue in these cases is not whether the insurance of little aid to them, because, as appears from eviagency companies are operated as adjuncts to the dence, the Insurance Commissioner will not issue an business conducted by the GCC banks—they clearly agent's license to any bank or trust company, or, are—but whether what they do is such as to (1) for that matter, to any corporation.60 be a "proper incident" to the "business of banking What consideration, if any, should be given to the or of managing and controlling banks," and (2) restrictions thus imposed on banks? The Applicant "make it unnecessary for the prohibitions of [Section argues—I think correctly—that Congress did not 4] to apply in order to carry out the purposes of this intend to limit the exemption of Section 4(c)(6) to Act." such companies only as engaged in activities that On that issue, much of what was said in the banks themselves could directly engage in. Thereanalysis of the insurance company cases applies fore, the fact alone that Tennessee and Illinois banks equally here, and the controlling principles are sub- are without corporate power themselves to act as stantially the same. The operation of insurance insurance agents would appear to be of no particular agencies in conjunction with bank lending activities, materiality here. Nor do I think it has any material certainly no less than the operation of insurance bearing on the question here that banks in a given companies, and probably to an even greater degree, State may be denied insurance agent's licenses under creates a source of potential evil the Act was designed a State law prohibiting the granting of such licenses to remove—namely, "that a holding company, in to corporations generally. A more difficult problem extending credit, might exert pressure on borrowers is presented, however, where, as in Illinois and, perto do business with the lending bank's affiliated cor- haps, also in Tennessee, a State statute or regulation porations rather than with their competitors, thus appears to declare a public policy against comdenying those borrowers an appropriate freedom of mingling bank lending and insurance activities—and choice."55 Thus, it cannot be said of the insurance particularly so, where, as here, the banks involved agency cases, any more than of the insurance com- are State banks. Should the Board in such circumpany cases, that they present "situations which sub- stances overlook State policy in determining whether stantially escape the 'potential sources of evil' against it is a "proper incident" to banking to operate an which the general prohibitions [of Section 4] was insurance agency company for all practical purposes directed."56 Consequently, and for reasons more as if it were a bank department? fully explicated in the section above dealing with The Applicant contends that State law should be insurance companies, I conclude that the relationship ignored. It argues that the Act, as a Federal law, that exists between the insurance agency companies should be applied uniformity in each State so as not and the banks, though close, is not such as to be a to require divestment in one State while allowing "proper incident" to the business of banking or of retention in another where the same kind of company bank management or control, nor such as to make and the same type of relationship is involved. The it unnecessary for the divestiture provisions of the Act to apply in order to carry out the purposes of 57 73 Smith Hurd 111. Stats. Anno., Sec. 1065-53. the Act. 5sTenn. Code Anno., Sec. 56-704. GCC's Tennessee insurance agency company as well as all other GCC insurance 2. Though what has just been said is dispositive agency subsidiaries involved in this proceeding act through of the cases, there are other factors present in the licensed individuals who are officers or employees of other insurance agency cases that the Board may care to GCC subsidiaries. consider in determining whether the "proper incident" 5 6 9 0 T T h he e re G C is C s b o a m n e k s g i e n n e M ra i l s iz so ed u ri a h n a d v e i n s d u e c f h in i t t r e u st t es p t o im w o e n rs y . that and "statutory purposes" requirements of Section there are small banks, particularly in rural areas, that never- 4(c)(6) have been met. theless operate insurance departments, by acting through officers or employees who are licensed insurance agents. How ex- The insurance agency companies serve GCC banks tensive that practice is does not clearly appear in the record. Walter E. Burtelow, GCC's executive vice president, testified 55 Transamerica case, See Federal Reserve BULLETIN, Septem- that, except for small country banks, he knew of no banks in ber 1955, p. 1016. any of the three States here involved that operated such de- ™Ibid., p. 1017. partments in conjunction with their banking business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN • MARCH 1958 correct test, according to the Applicant, should be loans and dealer paper GCC acquires at Texarkana whether a particular activity is a "proper incident" are ultimately sold to Bank of St. Louis at a discount to the business of banking generally, and this should and without recourse or repurchase agreement. From be based upon a uniform Federal policy, with the this, it argues that the Board should view the GCC application of State law left as a matter for State Texarkana loan and finance operations as an incident concern. to the banking business conducted by Bank of St. There is much to be said for the position stated Louis—and the related activities of Texarkana Agency by the Applicant. But it leaves unanswered the ques- as derivatively so. But even if that argument were tion of what standards the Board should apply in accepted, the statutory requirements for exemption determining whether it should be deemed appropriate under Section 4(c)(6), as they have been interpreted and fitting, as a matter of Federal policy, for a bank and applied above, would not be met. The Appliholding company to integrate banking and insurance cant's case would still fall short of the mark, both agency operations. If the Board is to shape such for reasons stated above in connection with the other a Federal policy without reference to the particular insurance agency company cases, and for the reasons statute it is administering here, it would seem appro- also stated above in connection with the cases of the priate to consider the attitude of other Federal agen- GCC loan company subsidiaries which are engaged cies with an interest in the matter, and, perhaps, the in the origination of consumer credit paper for sale over-all attitude of States as well.61 My own view, to Bank of St. Louis. however, is that the Board must look first to the 4. For the reasons above stated, I conclude that a statute it is administering, and to the purposes of that closely related determination is not supported by the statute. That, of course, brings us back full circle record in the cases of the nine insurance agency direct to where we began. The Board has stated that the subsidiaries of GCC named in cases docketed as Act is aimed in part at removing as a potential source BHC 19 through 27. Accordingly, dismissal will be of evil corporate structures that might tend to influ- recommended of the exemption applications in those ence banks in extending credit to bring pressure on cases. borrowers to do business with affiliates rather than Upon the basis of the foregoing findings of fact, with their competitors, thereby denying borrowers an and upon the entire record in the case, I make the appropriate freedom of choice. Since a bank-insur- following: ance agency corporate relationship provides such a potential source of evil, that appears reason enough Conclusions of Law for declaring that within the framework of this statute a holding company's operation of an insurance agency 1. All the activities of each of the nonbanking submust be found an improper incident to the business sidiaries named in the cases docketed as BHC-4 of banking. through 17, and 19 through 27,02 are of a financial, 3. One case remains to be considered—that of fiduciary or insurance nature. Texarkana Agency. That agency is attached to the 2. The aforesaid companies are not—within the single branch office that GCC itself operates at meaning of Section 4(c)(6) of the Act—so closely Texarkana, Texas. At that branch GCC engages in related to the business of banking or of managing a small loan and dealer sales finance business. Such or controlling banks as to be a proper incident thereto a business is not—within the meaning of Section and as to make it unnecessary for prohibitions of Sec- 4(a)(2)—"that of banking or of managing or con- tion 4(a)(2) of the Act to apply in order to carry out trolling banks or of furnishing services to or of per- the purposes of the Act. forming services for any bank. ..." Consequently, GCC will be obliged by virtue of one of the prohibi- Recommendations tions of Section 4(a)(2) to discontinue its direct non- It is recommended that the Board of Governors of banking branch operation at Texarkana within the the Federal Reserve System: period prescribed by the statute. Retention of Tex- 1. Enter an order determining the issues in this arkana Agency may no more be justified under the consolidated proceeding in accordance with the findstatute than retention of the business operation to ings of fact and conclusions made above. which it is connected. 2. Deny the request of General Contract Corpora- Even with that consideration aside, however, the tion in each of the cases docketed as BHC-4 through Texarkana Agency, in my view, would still not meet 17 and 19 through 27 for an order under Section the statutory requirements for exemption under Sec- 4(c)(6) of the Act determining that the shares of the tion 4(c)(6). The Applicant would support a "closely nonbanking company named therein are exempt from related" determination on the ground that all of the application of the prohibitions of Section 4(a)(2) of the Act. 61 The Applicant seems to suggest that established Federal policy may be found in the National Bank Act which allows Dated at Washington, D. C, this 12th day of Sepnational banks in populated areas of less than 5,000 to act as insurance agents (U. S. C, Title 12, Sec. 92). But that is an tember 1957. argument that cuts both ways. For it may just as readily be (Signed) ARTHUR LEFF, inferred that the denial of that privilege to national banks in cities with a population over 5,000 reflects that Federal policy Hearing Examiner. is opposed to mixing banking and insurance functions as a general rule, save in limited circumstances where special con- 63 The names of the companies are set forth in the Statement siderations warrant a departure from that rule. of the Case, above [p. 274]. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APPENDIX A 2/12/57 GENERAL CONTRACT CORPORATION (a) (1) BANK OF ST. LOUI COMMERCIAL AND INDUSTRIAL BANK, MEMPHIS (c) (2) NORTHWESTERN BANK AND TRUST CO., ST. LOUi: (5) ILLINOIS STATE BANK OF QUINCY (f) (d) (3) JEFFERSON-GRAVOIS BANK, ST. LOUIS (6) BADEN BANK, ST. LOUIS (b) (4) BANK OF BENTON (ILL) THE BANK OF ZEIGLER (ILL.) (8) ECURITIES CREDIT CO. (MO.) (g) SECURITIES SECURITIES LOAN CO. (TENN.) INVESTMENT SECURITIES CREDIT CO. (FLA.) (g) CO. OF ST. LOUIS (DEL.) BROADWAY INSURANCE AGENCY (g) INDUSTRIAL FINANCE CO. OF WELLSTON (h) SECURITIES INSURANCE AGENCY (ILL.) (g) (b) BADEN LOAN CO. INVESTMENT INSURANCE AGENCY (ARK.) (g) SPRINGFIELD UNION FINANCE G RAIGHEAD INSURANCE AGENCY (ARK.) (g) QUINCY UNION FINANCE G PALAFOX INSURANCE AGENCY (FLA.) (g) (a) INDUSTRIAL LOAN CO. 'AVIDSON INSURANCE AGENCY (TENN.) (g) (g) GENERAL CONTRACT LOAN CO. (g) GENERAL CONTRACT LOAN CO. (LA.) PEX INSURANCE AGENCY (a) GENERAL LOAN CO. (ARK.)- IEFFERSON-GRAVOIS INSURANCE AGENCY (d) (g) GENERAL CONTRACT LOAN BROKERS (MISS.) SPRINGFIELD INSURANCE AGENCY (ILL.) (g) SIC LOAN CO.. EID-KRUSE (b) T. LOUIS -WASHINGTON INSURANCE AGENCY (a) (9) MIDWESTERN FIRE AND MARINE INS. CO. PULASKI COUNTY INSURANCE AGENCY (ARK.) WASHINGTON FIRE AND MARINE INS. CO. QUINCY INSURANCE AGENCY (ILL) (f) STERICK INSURANCE AGENCY (TENN.) (•) (10) INSURANCE CO. OF ST. LOUIS ^ ^ ^7 TEXARKANA AGENCY (TEX.) NORTHWESTERN INSURANCE AGENCY (c) (11) INVESTMENT CO. OF ST. LOUIS COMPANIES ARE INCORPORATED IN MISSOURI UNLESS OTHERWISE INDICATED IN PARENTHESES EXCEPT WHERE INDICATED BELOW. COMMON STOCK (a) Operates at Bank of St. Louis. OWNERSHIP IN INDICATED CORPORATIONS IS 100 % GCC has one direct operating branch office at Texarkana, Tex. (b) Operates at Baden Bank, St. Louis. (1) 99.95% (7) 93% (c) Operates at Northwestern Bank and Trust Company, St. Louis. (2) 92.48% (8) 99.79% (3) 97.33% (9) 50% (d) Operates at Jefferson-Gravois Bank, St. Louis. (4) 94.86% (10) 50% Ownership by Washington Fire and Marine Ins. Co. (5) 87.73% (11) 33 1/3% Ownership by Washington Fire and Marine Ins. Co. (e) Operates at Commercial and Industrial Bank, Memphis. (6) 87.04% 33 1/3 % Ownership by Insurance Co. of St. Louis. (f) Operates at Illinois State Bank of Quincy. (g) Operates at an office of SIC. (h) SIC has offices in St. Louis, Kansas City and S ikes ton, Mo., Little Rock and Jonesboro, Ark., Springfield and Jacksonville, III., New Orleans, La.,.Pensacola, Fla., Jackson, Meridian and Hattiesburg, Miss., Tulsa, Ok la., Nashville, Tenn., and San Antonio, Tex. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Current Events and Announcements REAPPOINTMENT OF MEMBER OF THE BOARD the twelve Federal Reserve Banks reducing the Mr. Abbot L. Mills, Jr., of Oregon, who has served discount rates of those Banks to 2V\ per cent. as a member of the Board of Governors since The reduction at eleven Reserve Banks was from February 18, 1952, under appointment for a term 23A per cent to 2V* per cent and the effective ending January 31, 1958, was nominated by the dates were as follows: the Federal Reserve Banks President on February 5, 1958, for a term of 14 of New York, Philadelphia, and Chicago, Friday, years from February 1, 1958. The nomination March 7, 1958; the Federal Reserve Bank of Atwas confirmed without objection by the Senate lanta, Monday, March 10; the Federal Reserve on February 17, 1958, and Mr. Mills took the Bank of Boston, Tuesday, March 11; the Federal oath of office on February 21, 1958. Mr. Mills' Reserve Banks of Cleveland, Richmond, St. Louis, tenure was continuous, as under the Federal Re- Kansas City, and Dallas, Friday, March 14; and serve Act a member of the Board serves until his the Federal Reserve Bank of Minneapolis, Friday, successor is appointed and has qualified. March 21. At the Federal Reserve Bank of San Francisco FEDERAL RESERVE MEETINGS the reduction was from 3 per cent to 2% per A meeting of the Federal Open Market Committee cent, effective Thursday, March 13, 1958. was held on March 4, 1958. Wm. McC. Martin, CHANGES IN RESERVE REQUIREMENTS Jr., was re-elected Chairman and Alfred Hayes, On March 18, 1958, the Board of Governors Vice Chairman. The representative members of reduced by one-half of one percentage point rethe Committee elected by the Federal Reserve serves required to be maintained by member Banks for the period of one year beginning March banks of the Federal Reserve System against 1, 1958, are: Alfred Hayes, W. D. Fulton, Hugh demand deposits. Leach, Watrous H. Irons, and H. N. Mangels, This action will release about $490 million from Presidents of the Federal Reserve Banks of New present required reserves. For central reserve York, Cleveland, Richmond, Dallas, and San city banks the reduction from 19% per cent to Francisco, respectively. 19 per cent of net demand deposits will release At the annual organization meeting of the about $125 million of reserves. At reserve city Federal Advisory Council, held on February 17, banks, the reduction from 17% Per c^nt to 17 1958, Frank R. Denton, representing the Fourth per cent will release about $190 million, and at Federal Reserve District, was elected President; country banks the change from 11% per cent to Homer J. Livingston, representing the Seventh 11 per cent will release approximately $175 mil- Federal Reserve District, was elected Vice Presilion. dent; and Lloyd D. Brace (First District), Adrian For central reserve city and reserve city banks, M. Massie (Second District), and Casimir A. the effective date for the new requirements is Sienkiewicz (Third District) were elected directors March 20, 1958, and for country banks, April to serve with Messrs. Denton and Livingston as 1, 1958. members of the Executive Committee. Herbert V. Prochnow and William J. Korsvik were ap- CHANGES IN THE BOARD'S STAFF pointed Secretary and Assistant Secretary, re- Mr. J. E. Horbett, Associate Director of the spectively. Division of Bank Operations since 1955, retired on March 1, 1958. Mr. Horbett joined the Board's DECREASE IN FEDERAL RESERVE DISCOUNT RATES organization in 1918, and was an Assistant Direc- The Board of Governors of the Federal Reserve tor of the Division of Bank Operations from 1935 System has approved actions by the directors of until his appointment as Associate Director. 298 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENT EVENTS AND ANNOUNCEMENTS 299 In the realignment of work resulting from the in charge of Research. Mr. Bopp obtained his retirement of Mr. Horbett, Mr. M. B. Daniels A.B., B.S., A.M., and Ph. D. degrees from the was appointed Assistant Director in the Division University of Missouri, where he was also a memof Bank Operations effective March 1, 1958. Mr. ber of the faculty from 1931 to 1941. Daniels joined the staff of the Board in 1934, and Mr. Robert N. Hilkert was appointed First Vice was in the Division of Bank Operations from 1936 President, effective March 1, 1958, to succeed Mr. until 1954, last serving there as Chief of the Davis. Mr. Hilkert joined the staff of the Reserve Reserve Bank Operations Section. From Decem- Bank as Director of Personnel in 1942, was apber 1, 1954, until his present appointment he pointed Assistant Vice President in 1943, and Vice served as Assistant Controller. President in 1947. He was on special assignment Mr. J. J. Connell, Budget and Planning Officer at the Board of Governors of the Federal Reserve since November 17, 1957, was appointed Con- System during the period October 30, 1950 troller effective March 1, 1958. Except for two through May 31, 1951.* He holds a Ph. B. degree breaks in service totaling approximately nine from Yale University and an M.A. degree from years, Mr. Connell has been with the Board since Columbia University. Prior to service with the 1920. Reserve Bank, Mr. Hilkert was connected with the Mr. S. H. Bass, a member of the Board's staff Hill School, Pottstown, Pennsylvania, and the since 1936 and Chief of the Board's Fiscal Section Educational Records Bureau, New York City. since 1946, was appointed Assistant Controller effective March 1, 1958. * As Acting Director, Division of Personnel Administration. CHANGES IN OFFICERS AT RESERVE BANKS Mr. Alfred H. Williams, President, and Mr. W. TABLES PUBLISHED ANNUALLY AND SEMIANNUALLY John Davis, First Vice President, of the Federal Reserve Bank of Philadelphia, retired February Latest BULLETIN Reference 28, 1958. Mr. Williams was appointed President Semiannually Issue Page effective July 1, 1941. Formerly he had served as Banking offices: Analysis of changes in number of... Feb. 1958 202 a Class C Director for two years. On, and not on, Federal Reserve Par List, number of Feb. 1958 203 Mr. Davis became associated with the Bank in Annually 1917 as an Assistant Cashier. He was successively Earnings and expenses: Assistant Deputy Governor, Assistant Vice Presi- Federal Reserve Banks Feb. 1958 200-201 Member banks: dent, Vice President, and has been First Vice Calendar year June 1957 710-718 First half of year Nov. 1956 1248 President since March 1, 1946. Insured commercial banks June 1957 719 Banks and branches, number of, by class Effective March 1, 1958, Mr. Karl R. Bopp was and State Apr. 1957 472-473 Operating ratios, member banks June 1957 720-722 appointed President to succeed Mr. Williams. Mr. Stock Exchange firms, detailed debit and Bopp joined the staff of the Reserve Bank in 1941 Ba c n r k e i d n i g t b a a n l d a n m ce o s n etary statistics, 1957.. F M e a b r . . 1 1 9 9 5 5 8 7 204-2 3 1 3 0 6 as Director of Personnel. In 1942 he was made Summary flow-of-funds accounts, 1954-56 Oct. 1957 1190-1194 Director of Research and in 1947 Vice President Bank holding companies, Dec. 31, 1957 Feb. 1958 211 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication March 17 Recession in economic activity continued in in machinery and other equipment lines declined February. Industrial production, employment, to a level about 15 per cent below the record incomes, and retail sales again declined, and un- year-ago level. Production of consumer durable employment rose to a new postwar high. Con- goods was down 20 per cent from a year earlier struction activity was curtailed slightly. In Feb- and at the lowest level since December 1953. In ruary and early March, prices of farm products early March auto output was curtailed further and and foods continued to rise, while prices of in- steel production remained near the low February dustrial commodities changed little. Total bank rate. loans and investments rose appreciably although Activity in the rubber products, paper, chemloans to business continued to decline. Free icals, and petroleum refining industries edged reserves of member banks increased further. downward in February, and total output of non- Short-term interest rates were generally lower, durable goods was about 5 per cent below last while long-term rates rose somewhat. year's high. Minerals output also receded somewhat further last month, and in early March was INDUSTRIAL PRODUCTION reduced considerably owing to a sharp curtailment in crude petroleum production. The Board's seasonally adjusted index of output at factories and mines declined three points CONSTRUCTION further in February to 130 per cent of the 1947-49 average, 11 per cent below the high level of a year Private housing starts, seasonally adjusted, fell earlier. Severe weather contributed to the reduc- in February to an annual rate of 890,000 units tion in industrial activity last month but also led compared with 1,030,000 in January. The decline to a rise in the Board's index of utility output of reflected chiefly adverse weather conditions in many areas of the country. The value of new electricity and gas. construction activity declined to a seasonally ad- Output of durable goods in February was 16 justed annual rate of $47.5 billion from the reper cent below a year earlier, reflecting widespread vised $48.2 billion in January. curtailments in equipment and consumer goods industries and sharp reductions in production of EMPLOYMENT steel and most other materials. Over-all activity Unemployment increased further in February INDUSTRIAL PRODUCTION by 680,000 to 5.2 million and was 2.1 million 1947-49-100 160 higher than a year earlier. On a seasonally ad- TOTAL - justed basis, unemployment was 6.7 per cent of y ^ _ 140 — the civilian labor force, compared with 5.8 per MAN D U U F R A A C B T L U E RES cent in January. Nonfarm employment, season- A ally adjusted, dropped 600,000 in February to 120 51.2 million, a level 1.7 million below its August 1957 peak. Large declines continued in durable 140 / goods industries, and construction employment MINERALS^ Vv/ decreased sharply. V NONDURABLE \ - hv \ - 120 MANUFACTURES _ DISTRIBUTION _ — Seasonally adjusted retail sales declined 1 per 100 ^•n.M.I Inn L.,m,.,,l... 11II 1 1 1 v cent in January, according to revised figures, and 1954 1956 1958 1954 956 1958 in February dropped 3 per cent further to slightly Federal Reserve indexes, seasonally adjusted. Monthly figures, below the year earlier level. While sales of foods latest shown are for February. 300 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 301 and some other goods remained larger than a sequently, in the week of March 12, business loans year ago, sales at department and most durable at banks in New York and Chicago rose somegoods stores—notably auto dealers—were down what, reflecting borrowing associated with March sharply, reflecting in part the unusually severe 15 income tax payments. weather. In early March, sales at department Free reserves of member banks averaged about stores were showing sizable recovery. $390 million over the four weeks ending March 12 compared with $280 million in the previous COMMODITY PRICES four-week period. In late February and early The general level of wholesale commodity prices March, about $500 million of reserves were rerose slightly further from mid-February to mid- leased to member banks through the reduction of March, reflecting increases in farm products and Vi percentage point in reserves required to be foods. With market supplies continuing much maintained against demand deposits. Deposits smaller than usual for this time of year, prices subject to reserves increased over the period, abof livestock and meat and fresh fruits and vege- sorbing part of the funds. In addition, reserves tables rose further and were about one-fourth were absorbed through a decline in the gold stock above a year ago. Industrial commodities changed and an increase in Treasury deposits at the Reserve little at a level slightly below the January high. Banks. Consumer prices rose .6 per cent in January, SECURITY MARKETS owing mainly to increases in fresh foods. Services Yields on long-term Government bonds changed continued to advance while prices of new autos, little from mid-February to mid-March, despite some household goods, and apparel declined. the cash sale in early March of a new %\XA billion 1966 Treasury bond and a further reduction of Vi BANK CREDIT AND RESERVES per cent in discount rates at Federal Reserve Banks Total loans and investments at city banks ex- shortly thereafter. Yields on short- and interpanded $1.5 billion between early February and mediate-term Treasury issues and rates on private early March, contrary to usual seasonal tendencies. open market paper all declined further in the The increase reflected additions to holdings of latter half of February. After late February, U. S. Government and other securities offset in yields on short-term Treasury securities recovered part by reductions in loans. Business loans de- a part of this decline, while those on intermediateclined $200 million following record reductions term issues leveled off. earlier in the year. Repayments by food processors Yields on corporate and State and local governand commodity dealers continued but borrowing ment bonds have increased somewhat since midby metals and textile producers increased. Sub- February. Stock prices declined slightly in late February, then increased in early March. PRICES RESERVES AND BORROWINGS-ALL MEMIEI PANICS Billions of dollars BORROWINGS AT F. R. BANKS ff ' EXCESS RESERVES . 1,, FREE RESERVES SaM/| i hi 1 i - %f / -KKjJ KH-W- Bureau of Labor Statistics indexes. "Other" wholesale prices exclude processed foods, included in total but not shown Federal Reserve data. Free reserves are excess reserves separately. Monthly figures, latest shown: January for con- less borrowings. Weekly averages, latest shown are for week sumer prices, and February for wholesale prices. ending Mar. 12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial and Business Statistics * United States * Member bank reserves, Reserve Bank credit, and related items 305 Reserve Bank discount rates; reserve requirements; margin requirements.. 308 Federal Reserve Banks 309 Bank debits; currency in circulation 312 All banks: consolidated statement of monetary system; deposits and currency. . 314 All banks, by classes 315 Commercial banks, by classes. . . 318 Weekly reporting member banks. . 320 Commercial loans; commercial paper and bankers' acceptances. . 322 Interest rates 323 Security prices; stock market credit. 324 Savings institutions 325 Federal business-type activities. 326 Federal finance. . 328 Security issues. . 332 Business finance . 333 Real estate credit 335 Short- and intermediate-term consumer credit. 338 Selected indexes on business activity. . 342 Production 343 Employment and earnings. 350 Department stores. . 352 Foreign trade . . .. 353 Wholesale and consumer prices. 354 National product and income series. . 356 Tables published in BULLETIN, annually or semiannually—list, with references 299 Index 385 Tables on the following pages include the prin- of material collected by other agencies; figures cipal statistics of current significance relating for gold stock, currency in circulation, Federal to financial and business developments in the finance, and Federal credit agencies are obtained United States. The data relating to Federal from Treasury statements; the remaining data Reserve Banks, member banks of the Federal are obtained largely from other sources. Back Reserve System, and department store trade, and figures for 1941 and prior years for banking and the consumer credit estimates are derived from monetary tables, together with descriptive text, regular reports made to the Board; production may be obtained from the Board's publication, indexes are compiled by the Board on the basis Banking and Monetary Statistics. 303 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS Weekly averages of daily figures Billions of dollars MEMBER BANK RESERVE BALANCES CURRENCY IN CIRCULATION RESERVE BANK CREDIT GOLD STOCK TREASURY CASH AND DEPOSITS NONMEMBER DEPOSITS FEDERAL RESERVE CREDIT U. S. GOVERNMENT SECURITIES DISCOUNTS AND ADVANCES FEDERAL RESERVE FLOAT 1952 1953 1954 1955 1956 1957 1958 Latest averages shown are for week ending Feb. 26. See p. 305. 304 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Reserve Bank credit outstanding Deposits, other than member bank Member bank Treas- reserves, reserves U. S. Govt. securities ury Cur- Treas- with F. R. Banks e W nd e i e n k g Total B r o o ig u u h t g - t ht r a u c H e g n h p e r a d u e l s e d e r e r - - c v D o a a a n n u i d s d c n - - e ts s Float Total s G to o c ld k r s c o e t i a u n n u n r g c t - - d y - r c t e c u i i n i o n l r c a n - y - h c i u o n a r l g s y d h s - Tr u e r a y s- F e o i r g - n Other c O F o . a t u c h - R n e t . r s Total qu R i e r - ed 2 c E es x s - 2 ment Averages of daily figures 1957 Jan. 2 24,994 24,610 384 925 1,53727,524 21,949 5,066 31,829 777 395 374 335 97319,856 19,110 746 Jan. 9 24,688 24,601 87 535 1,53926,809 21,949 5,066 31,479 -783 352 323 287 89919,701 18,971 730 Jan. 16 24,293 24,293 348 1,27825,954 21,950 5,066 31,108 786 293 320 267 89719,300 18,765 535 Jan. 23 23,811 23,811 347 1,44625,636 21,951 5,067 30,827 798 199 324 268 89419,342 18,724 618 Jan. 30 23,450 23,450 528 1,07825,087 22,080 5,068 30,607 809 420 329 258 89318,918 18,550 368 Feb. 6... 23,435 23,411 640 1,04025,146 22,251 5,070 30,596 817 534 333 276 99218,920 18,445 475 Feb. 13... 23,264 23,190 741 96224,997 22,252 5,070 30,641 820 377 366 299 ,00718,808 18,265 543 Feb. 20... 22,969 22,958 577 1,18824,764 22,303 5,071 30,605 815 173 307 226 ,11618,895 18,309 586 Feb. 27... 22,854 22,854 713 1,21724,813 22,303 5,073 30,544 815 297 334 382 ,13418,683 18,218 465 Mar. 6. 22,913 22,895 18 755 1,17924,871 22,304 5,077 30,566 813 479 329 212 ,13118,721 18,231 490 Mar. 13. 22,979 22,934 45 880 90824,791 22,304 5,079 30,609 812 471 297 201 ,12918,654 18,205 449 Mar. 20. 23,178 23,064 114 783 1,17325,158 22,305 5,080 30,589 811 302 300 199 ,13819,204 18,578 626 Mar. 27. 23,094 23,051 43 844 96724,930 22,305 5,083 30,502 813 353 334 205 ,13918,971 18,362 609 Apr. 3. 23,189 23,040 149 1,074 87725,165 22,306 5,086 30,589 808 517 294 314 ,16718,868 18,525 343 Apr. 10. 23,262 23,040 222 1,230 88125,400 22,307 5,088 30,655 814 387 340 305 ,20519,088 18,523 565 Apr. 17. 23,282 23,146 136 1,244 96725,520 22,313 5,089 30,681 808 478 344 300 ,20319,107 18,556 551 Apr. 24. 23,237 23,169 68 947 1,48425,695 22,317 5,092 30,610 791 456 390 454 ,20219,201 18,639 562 May 1. 23,169 23,169 730 1,16825,093 22,318 5,094 30,499 793 419 352 291 ,14819,000 18,621 379 May 8. 23,213 23,125 993 94725,177 22,318 5,095 30,589 795 504 366 275 ,07818,984 18,495 489 May 15. 23,083 23,033 50 975 94825,031 22,319 5,096 30,654 787 479 366 241 ,07518,845 18,368 477 May 22. 22,915 22,915 793 1,34125,070 22,320 5,098 30,645 790 525 362 273 ,07418,818 18,284 534 May 29. 22,930 22,901 29 903 97924,833 22,406 5,102 30,660 794 562 358 279 ,07318,616 18,264 352 June 5. 23,110 22,950 160 902 95424,987 22,620 5,104 30,837 792 485 357 323 ,07218,846 18,378 468 June 12. 22,972 22,926 46 1,059 93624,988 22,621 5,106 30,903 791 463 379 276 ,06918,834 18,330 504 June 19. 22,930 22,880 50 1,089 1,38425,424 22,621 5,106 30,904 782 518 389 335 ,07619,148 18,546 602 June 26. 22,951 22,888 63 1,003 1,32025,294 22,622 5,106 30,849 776 477 407 254 ,08719,171 18,625 546 July 3. 23,098 23,031 67 1,068 1,19825,387 22,623 5,107 31,150 763 546 420 296 ,07718,865 18,521 344 July 10. 23,443 23,260 183 1,213 1,11125,792 22,623 5,108 31,313 765 431 339 290 ,07719,308 18,732 576 July 17. 23,319 23,252 67 1,062 1,23625,641 22,625 5,108 31,184 770 455 413 279 ,07319,200 18,636 564 July 24. 23,342 23,235 107 739 1,35125,456 22,625 5,108 30,999 774 507 385 267 ,07019,189 18,568 621 July 31. 23,360 23,084 276 553 99824,932 22,626 5,110 30,910 770 494 370 278 96118,885 18,493 392 Aug. 7. 23,116 23,078 38 1,060 92825,124 22,627 5,113 30,983 767 498 355 277 ,11618,868 18,331 537 Aug. 14. 23,047 23,047 1,161 87425,102 22,627 5,114 31,069 764 475 363 273 ,11318,786 18,195 591 Aug. 21. 23,034 23,034 931 1,22725,211 22,625 5,116 31,055 762 513 343 270 ,20318,806 18,254 552 Aug. 28. 23,220 23,215 915 97725,133 22,626 5,118 30,998 764 475 339 268 ,20318,831 18,397 434 Sept. 4. 23,511 23,463 48 832 85825,228 22,626 5,118 31,149 759 485 340 281 ,19718,760 18,346 414 Sept. 11. 23,399 23,367 32 1,031 95325,408 22,626 5,119 31,256 759 431 357 279 ,19418,876 18,301 575 Sept. 18. 23,303 23,286 17 950 ,44225,719 22,627 5,121 31,184 755 510 429 287 ,19619,108 18,484 624 Sept. 25. 23,178 23,173 5 1,106 ,31825,622 22,628 5,123 31,052 769 759 386 255 ,18918,963 18,416 547 Oct. 2. 23,346 23,294 52 942 ,00025,304 22,634 5,125 31,039 776 493 356 253 ,11219,034 18,685 349 Oct. 9. 23,545 23,312 233 1,009 99125,563 22,646 5,127 31,129 774 498 373 260 ,11219,189 18,625 564 Oct. 16. 23,371 23,281 90 992 ,07125,451 22,658 5,128 31,191 776 506 333 252 ,11019,068 18,574 494 Oct. 23. 23,267 23,222 45 605 ,51725,407 22,665 5,131 31,129 781 464 317 265 ,10919,137 18,574 563 Oct. 30. 23,195 23,179 16 710 ,05124,972 22,671 5,132 31,008 786 518 318 251 ,05718,837 18,474 363 Nov. 6. 23,441 23,256 185 824 94325,225 22,707 5,135 31,115 792 461 367 313 ,05618,963 18,509 454 Nov. 13. 23,498 23,332 166 911 99725,424 22,731 5,136 31,287 795 505 329 407 ,05718,911 18,354 557 Nov. 20. 23,288 23,282 6 752 ,43025,489 22,757 5,137 31,336 801 503 315 386 ,05418,987 18,459 528 Nov. 27. 23,318 23,167 151 777 ,20925,325 22,762 5,139 31,431 794 469 301 294 ,03018,907 18,461 446 Dec. 4. 23,732 23,480 252 626 ,00525,387 22,763 5,141 31,668 770 305 291 191 ,04119,023 18,580 443 Dec. 11. 23,886 23,574 312 676 ,02025,617 22,766 5,142 31,827 769 318 318 186 ,08019,027 18,600 427 Dec. 18. 23,907 23,600 307 751 ,52526,218 22,770 5,143 31,973 768 339 334 183 ,05019,483 18,873 610 Dec. 25. 23,950 23,617 333 786 ,89426,687 22,770 5,145 32,089 764 483 359 179 ,06119,666 19,014 652 1958 Jan. 1.... 24,344 23,735 609 661 ,55026,623 22,774 5,147 31,962 773 458 397 201 1,04519,707 19,042 665 Jan. 8.... 24,011 23,645 366 707 ,32826,100 22,781 5,146 31,553 768 529 337 186 99619,658 18,982 676 Jan. 15.... 23,720 23,581 139 580 ,03925,390 22,781 5,147 31,207 771 503 306 190 99419,348 18,769 579 Jan. 22.... 23,315 23,266 49 359 ,23024,949 22,782 5,149 30,878 781 511 275 227 99219,216 18,624 592 Jan. 29.... 23,372 23,335 37 295 91924,632 22,783 5,151 30,625 789 521 275 275 99219,089 18,509 580 Feb. 5.... 23,364 23,321 43 189 80324,397 22,783 5,157 30,581 777 378 265 294 1,046 18,997 18,498 499 Feb. 12.... 23,422 23,292 130 286 79324,543 22,784 5,159 30,675 734 296 284 325 1,118 19,054 18,483 571 Feb. 19.... 23,373 23,285 361 1,05424,830 22,785 5,161 30,642 685 501 337 293 1,195 19,122 18,437 *>685 Feb. 26.... 23,380 23,380 153 95224,527 22,714 5,165 30,542 695 508 284 276 1,193,18,909 18,441 P468 » Preliminary. For other notes see following page. 305 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 BANK RESERVES AND RELATED ITEMS MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS—Continued [In millions of dollars] Reserve Bank credit outstanding Deposits, other than member bank Member bank Treas- reserves, reserves P d e o a ri r t o e d T U o . t a S l . G B o r o o i v g u u t h t . g - t h s t ecu r u c H e r n h i p t e a d i u l e s e d r e s r - c v D o a a a n u n i d s c n d - - e ts s Float Total s G to o c ld k r s o c e t u i a n u n u r n g r c y t d - - y - r c C t e c u i i n u i o n l r c a n r - - y - T h c i u o n r a e r l g s y d a h s - s- Tr u w e r a i y t s h - F. F e o i R g r . n - Ba O nk th s er c O F o . a t u c h R - n e t r . s Total qu R i e re - d 2 c E es x s - 2 agreement Averages of daily figures 1957 Feb 23,111 23,083 28 665 1,10624,912 22,279 5,071 30,595 817 336 335 294 ,07118,816 18,302 514 Mar 23,061 22,997 64 859 1,02424,968 22,305 5,081 30,568 812 423 316 216 ,13518,884 18,366 518 Apr 23,239 23,121 118 1,036 1,11025,411 22,313 5,090 30,614 803 429 348 339 ,19519,087 18,580 507 May 23,041 22,996 45 931 1,04625,041 22,358 5,098 30,645 792 521 361 276 ,07518,827 18,362 465 June 22,989 22,917 72 1,009 1,17025,189 22,621 5,106 30,902 782 490 393 290 ,07718,982 18,485 497 July 23,351 23,198 153 917 1,17525,466 22,625 5,108 31,116 769 480 377 279 ,04819,129 18,595 534 Aug 23,146 23,129 17 1,010 98925,166 22,626 5,115 31,035 764 490 349 273 ,16318,834 18,300 534 Sept 23,325 23,302 23 994 1,14725,489 22,627 5,121 31,143 763 547 378 271 180 18,956 18,434 522 Oct 23,348 23,252 96 818 1,14325,326 22,660 5,129 31,109 780 495 338 258 ,09719,040 18,573 467 Nov 23,417 23,276 141 810 1,12625,373 22,743 5,137 31,335 793 464 322 337 ,04418,958 18,447 511 Dec 23,982 23,615 367 716 1,44326,186 22,769 5,144 31,932 768 385 345 186 ,06319,420 18,843 577 1958 Jan 23,608 23,458 150 454 1,11825,229 22,782 5,148 31,059 777 512 297 224 99319,296 18,723 573 Feb 23,378 23,313 65 242 90724,568 22,759 5,161 30,608 717 421 294 299 1,150 19,000 Midyear or year-end 1929—June.... 216 148 68 1,037 52 1,400 4,037 2,019 4,459 204 36 6 21 374 2,356 2,333 23 1933—June.... 1,998 1,998 164 4 2,220 4,031 2,286 5,434 264 35 15 151 346 2,292 1,817 475 1939—Dec 2,484 2,484 7 91 2,593 17,644 2,963 7,598 2,409 634 397 256 25111,653 6,444 5,209 1941—Dec 2,254 2,254 3 94 2,361 22,737 3,247 11.160 2,215 867 774 586 29112,450 9,365 3,085 1945—Dec 24,262 24,262 249 57825,091 20,065 4,339 28,515 2,287 977 862 446 49515,915 14,457 1,458 1947—Dec 22,559 22,559 85 53523,181 22,754 4,562 28,868 1,336 870 392 569 56317,899 16,400 1,499 1950—Dec 20,778 20,725 53 67 1,36822,216 22,706 4,636 27,741 1,293 668 895 565 71417,681 16,509 1,172 1954—Dec 24,932 24,888 44 143 80825,885 21,713 4,985 30,509 796 563 490 441 90718,876 18,618 258 1955—Dec 24,785 24,391 394 108 1,58526,507 21,690 5,008 31,158 767 394 402 554 92519,005 18,903 102 1956—June.... 23,758 23,712 46 232 1,21025,219 21,799 5.032 30.715 768 522 297 313 99218,443 18,449 -6 Dec 24,915 24,610 305 50 1,66526,699 21,949 5,066 31,790 775 441 322 426 90119,059 19,089 -30 End of month 1957 Feb.. 22,887 22,854 33 595 1,19624,704 22,304 5,076 30,575 809 458 327 206 ,13318,576 18,294 282 Mar.. 23,149 23.040 109 994 80324,970 22,306 5.086 30,585 804 591 311 304 ,13718,629 18,512 117 Apr.. 23,169 23,169 829 93624,960 22,318 5,094 30,519 791 509 316 294 ,07918,864 18,588 276 May. 23,108 22,950 158 1,170 92625,224 22,620 5,104 30,836 788 568 360 274 ,07219,049 18,351 698 June. 23,035 22,994 41 558 1,19924,816 22,623 5.107 31,082 758 498 449 308 ,07518,376 18,543 -167 July.. 23,355 23,079 276 420 89624,691 22,627 5.111 30,933 759 504 364 296 94218,630 18,520 110 Aug.. 23,539 23,475 64 986 86525,418 22,626 5,118 31,133 752 477 342 285 ,19818,975 18,305 670 S O e c p t t .. . . . 2 23 3 , , 3 3 3 1 8 2 2 2 3 3 , .2 3 1 1 8 2 * iio 7 3 8 9 9 6 1,0 8 6 9 2 82 2 4 5 , ,2 6 0 2 6 2 2 22 2 . , 6 6 9 3 1 5 5 5, , 1 1 3 2 5 5 3 3 1 1 , , 0 0 7 9 3 0 7 7 7 8 3 4 4 5 2 5 9 2 3 37 3 8 7 2 2 6 5 1 6 , , 0 11 5 1 6 1 1 8 8 , , 3 9 9 1 9 7 1 18 8 , , 5 6 4 9 1 4 -2 3 9 7 5 6 Nov.. 23,733 23,448 285 819 94225,515 22;763 5,139 31,661 761 243 283 196 ,00019,274 18,578 696 Dec. 24,238 23,719 519 55 1,42425,784 22,781 5,146 31,834 761 481 356 246 99819,034 19,091 -57 1958 Jan.. 23,331 23,331 217 76324,352 22,784 5,158 30.576 771 469 249 279 99018,958 18,543 415 Feb.. 23,240 23,240 122 92424,330*>22,686^5,1682*30,550 P697 516 265 336 1,151 18,667*>18,229 *438 Wednesday 1957 Dec. 4 23,778 23,555 223 498 1,01925,321 22,763 5,141 31,716 773 244 308 182 1,09518,907 18.667 240 Dec. 11 23,872 23,600 272 972 96125,836 22,770 5.142 31,878 770 333 330 182 1,041 19.214 18,737 477 Dec. 18 23,863 23,600 263 731 1,92326,559 22,770 5,144 32,002 776 488 344 175 1,06319,625 19.106 519 Dec. 25 24,020 23,636 384 794 1,52026,394 22,770 5.145 32.131 759 346 386 180 1.06219,444 18,937 507 Dec. 313 24,238 23,719 519 55 1,42425,784 22,781 5.146 31,834 761 481 356 246 99819,034 19,091 -57 1958 Jan. 8 23,745 23,635 110 707 1,04425,551 22,781 5,146 31.375 766 474 342 171 99419,355 18,893 462 Jan. 15 23,708 23,557 151 285 1,08925,127 22,782 5,148 31.019 782 525 279 187 99219,273 18,722 551 Jan. 22 23,333 23,257 76 392 1,08824,866 22,782 5,150 30.730 788 454 294 204 99219,336 18.610 726 Jan. 29 23,360 23,357 3 253 74124,397 22,783 5,151 30,543 785 511 257 267 99118,977 18,479 498 Feb. 5 23,411 23.307 104 153 80524,409 22,784 5.158 30.582 780 207 284 32 1,119 19,058 18,558 500 Feb. 12 23,464 23,299 165 237 92324,665 22,784 5.160 30.674 686 350 297 597 1,118 18,888 18,451 437 Feb. 19 23,356 23,356 135 1,20824,741 22,785 5.163 30.571 702 453 291 282 1,208 19,182 '18,546 *>636 Feb. 26 23,409 23.409 184 72124,356 22,685 5,166 30.495 700 406 274 298 1,154 18,880 I 8,462 p Preliminary. dates in subsequent tables on Federal Reserve Banks. 1 Includes industrial loans and acceptances; these items are not shown 2 These figures are estimated. separately in this table, but are given for end-of-month and Wednesday 3 Tuesday. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK RESERVES AND RELATED ITEMS 307 RESERVES, DEPOSITS, AND BORROWINGS OF MEMBER BANKS, BY CLASSES [Averages of daily figures. * In millions of dollars] Central reserve Central reserve Item and period b m a b A e n e m l r k l s - Ne c w ity ban C ks hi- b s c R a e i n r e t v y k - e s C ba o tr n u y k n s - Item and period b m a A b e n e m l r k l s - Ne c w ity ban C ks hi- b s c R a e i n r e t v y k - e s C ba o tr n u y k n s - York cago York cago Total reserves held: Excess reserves:2 1957—Jan 19 295 4 316 1 126 7 996 5 857 1957_jan 523 -10 -2 58 478 Feb 18 816 4 205 I 107 7 781 5 722 Feb 514 5 66 443 Mar 18 884 4*341 I 102 7 746 5 696 Mar 518 14 4 60 440 Apr 19 087 4 307 I 097 7 921 5 762 Apr 506 — 1 -1 65 443 May 18,827 4,234 1,101 7,794 5,697 May 465 13 3 56 393 June 18 982 4 335 121 7 774 5 751 496 15 -2 45 438 July 19,129 4,294 1,131 7,906 5,799 July 534 6 7 66 455 Aug . ... 18,834 4,170 1,123 7,790 5,750 Aug 534 19 2 69 444 Sept 18 956 4 211 1 122 7 800 5 823 Sept 522 9 5 51 457 Oct. 19,040 4,231 1,116 7,836 5,857 Oct 467 39 428 Nov 18 958 4 162 1 101 7 849 5 847 Nov 512 16 1 63 432 Dec 19 420 4,336 1,136 8 042 5,906 Dec 577 34 8 86 449 1958—Jan 19,296 4,251 1,125 8,007 5,914 1958—Jan 573 34 4 78 456 Week ending: Week ending: 1958 Jan 22 19,216 4,151 1,116 7,959 5,989 1958—Jan. 22 592 -12 4 56 544 29 19,089 4,203 1,114 7,930 5,842 29 580 70 6 90 414 Feb. 5 18 997 4 235 1 122 7 873 5 766 Feb. 5 499 34 2 79 384 12 19 054 4,200 1,114 7 908 5,833 12 572 9 5 110 448 19 19,122 4,208 1,113 7,897 5,905 19 46 7 110 26 18,909 4,201 1,113 7,857 5,738 26 12 5 89 p362 Required reserves:2 Borrowings at Federal 1957—Jan 18 773 4 327 1 129 7 938 5 379 Reserve Banks: Feb 18,302 4,200 1,107 7,715 5,279 Mar 18 366 4 326 1 098 7 686 5 256 1957—Jan 407 30 38 229 110 Apr 18 580 4,308 I 097 7?855 5 320 Feb 640 129 53 314 144 May 18 362 4 221 1 098 7 739 5 305 Mar 834 116 257 302 159 June 18 485 4 320 I 123 7 729 5 314 Apr 1 011 299 210 329 173 July 18,595 4,288 1,124 7,840 5,344 May 909 117 169 422 201 Aug 18 300 4 152 1 121 7 722 5 306 June 1 005 200 46 531 228 Sept 18,434 4,203 1,117 7,749 5,366 July 917 186 34 519 177 Oct 18 573 4 231 1 116 7 797 5 429 Aug 1 005 308 28 468 201 Nov 18 447 4 147 1 100 7 786 5 414 Sept 988 263 120 485 121 Dec 18 843 4*303 1127 7 956 5 457 Oct 811 141 115 428 127 Nov... 804 96 123 405 181 1958 Jan 18,723 4,216 1,121 7,928 5,458 Dec 710 139 85 314 172 Week ending: 1958—Jan .. 451 80 29 222 119 1958 Jan 22 .. 18,624 4,163 1,113 7,903 5,445 29 18 509 4,133 1,108 7 840 5 428 Week ending: 1958—Jan. 22 355 59 8 201 87 Feb 5 18,498 4,201 1,120 7,795 5,382 29 295 3 3 144 145 12 .. 18,483 4,191 1,109 7,798 5,385 19 *>18 437 4,162 1.106 7 787 ?5 382 Feb. 5 189 2 91 95 26 »18,441 4,190 1,108 7,768 ^5,376 12 286 44 27 126 89 19 361 140 14 125 82 26 . .. 153 2 61 90 January 1957 Free reserves:2 4 Deposits: T D N G i e e r m f T o t m r o o s e d I O a s m t n e a n d t t d m l d h e e e d p e r a m o r b o n m a s b a d i n a n t e s k l d d s a e t n i p d c c o e e b p s s i a o ts n s i 3 d k t . u s s : . e . . . 1 1 1 4 1 0 1 0 6 2 3 5 8 1 , , , , , , 7 4 6 0 7 6 0 6 6 5 1 9 0 1 8 6 7 4 2 2 1 4 3 0 3 9 , , , , , 3 7 7 4 3 4 7 4 9 2 6 2 7 0 8 6 2 4 6 5 1 1 , , , , , 8 3 2 3 0 1 1 1 7 1 8 0 0 7 5 4 4 9 4 3 3 1 6 2 6 9 9 7 , , , , , , 0 5 6 3 8 2 9 5 2 6 9 0 9 6 1 1 9 5 4 4 2 3 4 0 2 0 6 1 , , , , , , 4 4 8 3 5 2 4 3 9 0 3 8 0 8 6 9 6 3 1957— J J A A F S M M J u u a e e p u l n D n a a b y r g y r e t - - - - - - - — 4 5 4 1 5 3 3 1 7 0 4 0 2 8 1 4 1 1 5 4 8 6 3 6 6 7 7 - - - - - - - - 3 1 1 2 1 1 1 2 -4 0 0 8 2 8 8 0 5 0 1 0 9 3 5 1 4 4 - - - - 2 1 2 1 - - - - - 4 5 4 2 2 1 6 5 1 0 3 8 8 6 0 5 3 5 - - - - - - - - - 2 1 3 2 2 4 4 4 4 4 7 6 6 4 0 8 5 3 9 2 7 3 2 0 6 2 3 2 2 2 2 2 2 3 3 1 4 9 6 7 8 1 6 3 9 4 9 9 8 0 0 9 5 2 Oct 344 141 115 389 301 Nov — 293 -80 -123 -342 251 Jsmuary 1958 Dec -133 -105 -77 -228 m 1958 Jan 122 -46 -25 -144 337 Gross demand deposits: Total 117,402 23,267 6,020 45,952 42,163 1958 Jan 22 237 -71 -4 -145 457 Interbank.... 13,545 4,257 1,194 6,582 1,511 29 285 67 3 -54 269 Other 103,858 19,010 4,826 39,369 40,652 Net demand deposits 3... 100,232 20,112 5,262 38,778 36,080 Feb 5 310 33 -12 289 Time deposits 46,768 3,879 1,361 18 966 22 562 12 286 -35 -22 -16 359 Demand balances due 19 ^325 -94 -7 -15 from domestic banks. . 6,650 59 114 2,056 4,422 26 12 3 28 v Preliminary. banks and of country banks are estimates. 1 Averages of daily closing figures for reserves and borrowings and of 3 Demand deposits subject to reserve requirements, i. e., gross demand daily opening figures for other items, inasmuch as reserves required are deposits minus cash items reported as in process of collection and demand based on deposits at opening of business. balances due from domestic banks. 2 Weekly figures of required, excess, and free reserves of all member 4 Free reserves are excess reserves less borrowings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 DISCOUNT RATES FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Discounts for and advances to member banks Advances to individuals, partnerships, or corporations other than member Advances secured by Government banks secured by direct obligations and discounts of and Other secured advances obligations of the U. S. Federal Reserve Bank advances secured by eligible paper [Sec. 10(b)] (last par. Sec. 13) (Sees. 13 and 13a)i Rate on In effect Previous Rate on In effect Previous Rate on In effect Previous Feb. 28 beginning— rate Feb. 28 beginning— rate Feb. 28 beginning— rate Boston Jan.28, 1958 3 Jan. 28,1958 3*4 Jan. 28, 1958 New York. . . I Jan.24, 1958 3 Jan. 24,1958 1* Jan. 24, 1958 Philadelphia.. 234 Jan.22, 1958 3 Jan. 22,1958 Aug. 9, 1957 Cleveland Jan.24, 1958 3 Jan. 24,1958 4 Nov. 29, 1957 Richmond. . . I Jan.24, 1958 3 Jan. 24,1958 4 Jan. 24, 1958 Atlanta Jan.28, 1958 3 Jan. 28,1958 h4 Jan. 28, 1958 Chicago Jan.24, 1958 3 Jan. 24,1958 Jan. 24, 1958 St. Louis Jan.24, 1958 3 Jan. 24,1958 Jan. 24, 1958 Minneapolis.. Feb. 7, 1958 3 Feb. 7,1958 Feb. 7,1958 Kansas City.. Jan.24, 1958 3 Jan 24 1958 Nov. 22, 1957 Dallas Feb. 14, 1958 3 Feb. 14,1958 4 Aug. 13, 1957 San Francisco Nov.29, 1957 3% Nov. 29,1957 Aug. 15, 1957 1 Rates shown also apply to advances secured by obligations of Federal months and 9 months, respectively, and advances secured by obligations intermediate credit banks maturing within 6 months. of Federal intermediate credit banks maturing within 6 months are NOTE.—Maximum maturities. Discounts for and advances to member limited to maximum maturities of 15 days; 4 months for advances under banks: 90 days for discounts and advances under Sections 13 and 13a of Section 10(b). Advances to individuals, partnerships, or corporations the Federal Reserve Act except that discounts of certain bankers' accept- under the last paragraph of Section 13: 90 days. ances and of agricultural paper may have maturities not exceeding 6 FEDERAL RESERVE BANK OF NEW YORK DISCOUNT RATES 1 MEMBER BANK RESERVE REQUIREMENTS • [Per cent per annum] [Per cent of deposits] Date effective Rate Date effective Rate Net demand deposits 1 Time deposits 1930— D J M M F u e e a n a b c y r e . . . 2 2 1 4 7 2 0 4 4 I I * * 1 1 1 1 9 9 9 9 5 4 5 4 0 8 3 6 — — — _A A A J J a a p u u n n r g g . . . . . 2 2 1 1 1 5 1 3 2 6 Ef o fe f c t c i h v a e n g d e ate C r b e e c a s n i e n t t r y k r v a s e l R b e c a s i e n t r y k v s e C ba o tr n u y k n s - C r r e e e c a s s n i e n e t t r r d y r v v a e e l C ba o tr n u y k n s - 1931—May 8 1954_Feb. 5 banks Oct. 9 Apr. 16 Oct. 16 1% 1955_Apr. 15 1932— J F u e n b e . 2 2 4 6 58 A Se u p g t . . 9 5 1917—June 21 13 10 7 1933— A M p a r r . . 7 3 1956— N A o p v r. . 1 1 8 3 1 1 9 9 3 3 6 7 — — A M u a g r . . 1 1 6 g 19% * s15* 10% ? ? May 26 21/2 Aug. 24 May 1 8* Oct. 20 3* 1957—Aug. 23 1 1 9 9 3 3 7 4 — _F A e u b g . . 2 2 7 I54 1958— N Ja o n v . . 2 1 4 5 1938—Apr. 16 22% 171/i 12 5 5 1942—Oct. 30 *% In effect Mar. 1, 1958... 1 19 9 4 4 2 1 — _N A o u v g . . 2 1 0 2 2 4 6 20 14 6 6 Sept. 14 22 1 Under Sees. 13 andl3a, as described in table above. Oct. 3 20 * Preferential rate for advances secured by Govt. securities maturing or callable in 1 year or less in effect during the period Oct. 30, 1942- 1948—Feb. 27 22 a A d p v r a . n 2 c 4 e , s 1 s 9 e 4 c 6 u . r ed T b h y e r e a li t g e i b o l f e 1 p p a e p r e r c . ent was continued for discounts of and J S u e n p e t, 1 1 1 6,24*.... 2 2 6 4 22 16 VA I* NOTE.—Repurchase rate on U. S. Govt. securities. In 1955, 1956, and 1949_May 1,5* 24 21 15 1957 this rate was the same as the discount rate except in the following June 30, July 1*. 20 14 6 periods (rates in percentages): 1955—May 4-6, 1.65; Aug. 4, 1.85; Sept. Aug. 1, 11* 8* 13 5 6 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; and 1956—Aug. 24-29, 2.75; Aug. 16, 18*.... 12 5 1957—Aug. 22, 3.50. Aug. 25 Sept. 1 it* MARGIN REQUIREMENTS 1 1951—Jan. 11, 16*.... 23 13 6 6 Jan. 25, Feb. 1*. 24 19 14 [Per cent of market value] 20 1953- July 1,9* 22 19 13 Jan. 4, Apr. 23, Effec- 1954 June 16,24*.... 21 5 5 Prescribed in accordance with 1955- 1955- tive July 29, Aug. 1 *. 20 18 12 Securities Exchange Act of 1934 Apr. 22, Jan. 15, Jan. 16, 1955 1958 1958 1958—Mar. 27, Mar. 1. 191/2 17% 11% In effect Mar. 1, 1958.. 191/2 17% 11% 5 5 Regulation T: For extensions of credit by brokers and Present legal requiredealers on listed securities 60 70 50 ments : For short sales 60 70 50 Minimum 13 10 7 3 3 Regulation U: Maximum 26 20 14 6 6 For loans by banks on stocks 60 70 50 1 Demand deposits subject to reserve requirements which, beginning 1 Regulations T and U limit the amount of credit that may be extended Aug. 23, 1935, have been total demand deposits minus cash items in on a security by prescribing a maximum loan value, which is a specified process of collection and demand balances due from domestic banks (also percentage of its market value at the time of extension; margin require- minus war loan and Series E bond accounts during the period Apr. 13, ments are the difference between the market value (100%) and the maxi- 1943-June 30, 1947). mum loan value. Change on Jan. 4, 1955, was effective after the close * First-of-month or midmonth dates are changes at country banks, and of business on that date. other dates (usually Thurs.) are at central reserve or reserve city banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS 309 STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS [In thousands of dollars] Wednesday End of month Item 1958 1958 1957 Feb. 26 Feb. 19 Feb. 12 Feb. 5 Jan. 29 Feb. Jan. Feb. Assets Gold certificate account 21,245,39321,345,393 21,345,392 21245,39321,245,392 21245,394 21245,393 20,764,392 Redemption fund for F. R. notes.. 853,803 854,018 855,593 857,193 858,711 853,802 858,710 861,898 Total gold certificate reserves. 22,099,196 22,199,41122,200,985 22,102,586 22,104,103 22,099,196 22,104,103 21,626,290 F. R. notes of other Banks 545,402 549,722 560,503 627,259 676,726 536,425 656,234 455,038 Other cash 521,607 511,941 531,631 535,407 527,860 529,677 544,476 469,903 Discounts and advances: For member banks 183,737 135,117 237,397 153,061 252,921 122,361 217,380 570,456 For nonmember banks, etc 25,000 Industrial loans 512 485 523 512 541 506 536 758 Acceptances—Bought outright 41,703 41,514 39,839 39,838 39,838 42,887 40,910 24,493 Held under repurchase agreement. 3,000 U. S. Government securities: Bought outright: B C i e l r l t s ificates—Special 674,023 621,023 563,773 571,273 621,773 504,460 595,273 118,255 Other 19,946,105 19,946,105 19,933,612 19,933,612 19 ,946,10519,933,612 ,362,199 Notes ,571,413 Bonds 2,789,257 2,789,257 2,801,750 2,801,750 ! 80^ 750 :J89^257 ,801,750 Total bought outright 23,409,385 23,356,385 23,299,13523,306,635 23.357,13523,239,822 23,330,63522,853,617 Held under repurchase agreement. 164,700 104,300 3,000 33,000 Total U. S. Government securities. 23,409,385 23,356,385 23,463,83523,410,935 23,360,13523,239,822 23,330,635 22,886,617 Total loans and securities 23,635,337 23,533,50123,741,594 23,604,346 23,656,43523,405,576 23,589,46123,507,324 Due from foreign banks. 15 15 15 15 15 15 15 22 Uncollected cash items.. 4,626,630 ,041,846 4,760,371 4,424,067 4,561,983 ,373,925 4,156,763 5,146,306 Bank premises 84,580 84,741 84,372 84,295 84,259 84,749 84,203 74,804 Other assets 124,468 110,666 189,367 172,654 288,075 129,033 293,003 106,980 Total assets. 51,637,23552,031,84352,068,838 51,550,62951,899,456 51,158,596 51,428,258 51,386,667 Liabilities Federal Reserve notes 26,510,170 26,586,310 26,708,350 26,685,493 26,701,889 26,558,812 26,711,420 26,555,990 Deposits: Member bank reserves 18,879,769 19,182, 18,888,425 19,058,348 18,977,485 18,667,005 18,958,370 18,575,591 U. S. Treasurer—general account. 406,364 452! 349; 206. 511 516; 4"6"9" ,246 457,593 Foreign 273,956 290; 296! 283 257; 265; 249,i013 327,113 Other 297,801 282! 596; 321 267; 336; 279,.437 205,882 Total deposits. 19,857,890 20,207,966 20,132,028 19,869,881 20,012,72719,785,224 19,956,066 19,566,179 Deferred availability cash items 3,905,843 3,834, 3,837,131 3,619,014 3,821,062 3,449,524 3,394,031 3,949,869 Other liabilities and accrued dividends. 16,653 15, 16,154 14,568 15,235 14,931 14,479 15,092 Total liabilities. 50,290,556 50,643,810 50,693,66350,188,956 50,550,913 49,808,491 50,075,996 50,087,130 Capital Accounts Capital paid in - 348,824 348,591 348,301 347,780 347,364 348,880 347,482 330,179 Surplus (Section 7) 809,198 809,198 809,198 809,198 809,198 809,198 809,198 747,593 Surplus (Section 13b) 27,543 27,534 27,543 27,543 27,543 27,543 27,543 27,543 Other capital accounts 161,114 202,701 190,133 177,152 164,438 164,484 168,039 194,222 Total liabilities and capital accounts. 51,637,23552,031,843 52,068,838 51,550,62951,899,45651,158,596 51,428,25851,386,667 Ratio of gold certificate reserves to deposits and F. R. note liabilities combined (per cent) 47.7 47.4 47.4 47.5 47.4 46.9 Contingent liability on acceptances purchased for foreign correspondents 142,742 132,914 131,312 128,399 127,242 139,414 127,188 58,016 Industrial loan commitments 1,075 1,102 1,069 1,079 1,065 1,062 1,058 2,014 Maturity Distribution of Loans andU.S. Government Securities1 Discounts and advances—total 183,737 135,117 237,397 153,061 252,921 122,361 217,380 595,456 Within 15 days 181jn 129,441 234,850 149,489 249,432 115,493 211,648 564,297 16 days to 90 days 5,562 2,426 3,474 3,386 6,769 5,634 6,159 91 davs to 1 vear 103 114 121 98 103 99 98 25,000 Industrial loans—total 51? 485 523 512 541 506 536 758 Within 15 days 119 119 120 120 111 128 120 36 16 davs to 90 davs 29 29 20 20 29 20 20 79 91 days to 1 year 751 224 260 249 278 245 273 414 Over 1 vear to 5 vears 113 113 123 123 123 113 123 229 Acceptances—total 41 703 41,514 39,839 39,838 42,838 42,887 40,910 24,493 Within 15 days 17 784 12,716 13,063 12,138 15,016 12,330 9,507 8,241 16 davs to 90 davs ,419 28,798 26,776 27,700 27,822 30,557 31,403 16,252 73 409 38573,356,38571,463,83573,410,935 73,360,13573,239,82273 330,6357?,886,617 Within 15 days 714 571 241,023 5,856,663 5,733,650 230,550 45,010 5,585,650 63,600 16 days to 90 days 459,450 380,000 378,803 448,916 ,901,216 459,450 516,616 66,755 91 days to 1 year 19 946 10519,946,105 14,439,112 14,439,112 14,439,112 19,946,105 14 439,112 19,954,512 1 374 400 1,374,400 1,374,400 ,374,400 1,374,400 1,374,400 1,374,400 373,279 Over 5 years to 10 years 56 610 56,610 56,610 56,610 56,610 56,610 56,610 1,013,614 1,358,247 1,358,247 1,358,247 1,358,247 1,358,247 1,358,247 1,358,247 1,414,857 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BANKS STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1958 [In thousands of dollars] Item Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago L S ou t. is M ap in o n li e s - K C an it s y as Dallas F S ra an ncisco Gold certificate account 1,010,571 5,790,603 1,139,016 1,864,121 1,310,472 870,1213,831,836 841,698 415,967 913,368 834,182 2,423,439 Redemption fund for F. R. notes 55,250 178,988 59,569 78,250 69,106 48,278 155,629 42,951 22,036 41,260 28,238 74,247 Total gold certificate reserves 1,065,821 5,969,591 1,198,585 1,942,371 1,379,578 918,3993,987,465 884,649 438,003 954,628 862,420 2,497,686 F. R. notes of other Banks.. 32,276 131,413 34,069 58,181 39,838 80,403 41,812 13,813 21,838 7,295 35,439 40,048 Other cash 31,147 117,328 30,066 46,866 34,533 40,092 87,430 31,360 9,785 17,953 20,918 62,199 Discounts and advances: Secured by U. S. Govt. securities 12,840 11,825 11,480 11,110 11,565 10,915 18,900 8,450 5,800 17,128 1,350 800 Other 50 148 Industrial loans 327 158 21 Acceptances: Bought outright 42,887 Held under repurchase agreement , U. S. Govt. securities: Bought outright , ,267,639 5,811,838 1,356,578 2,041,3401,484,862 1,203,753 4,056,534 961,083 501,515 997,755 910,746 2,646,179 Held under repurchase agreement Total loans and securities... 1,280,856 5,866,5501,368,216 2,052,4501,496,4271,214,668 4,075,582 969,533 507,3361,014,883 912,096 2,646,979 Due from foreign banks.... 1 H 1 1 2 1 () 1 1 1 Uncollected cash items 285,731 823,420 258,966 412,649 348,539 359,709 735,651 172,292 120,882 221,336 226,838 407,912 Bank premises 4,941 10,629 4,469 9,694 6,943 6,935 6,845 6,353 5,301 4,952 6,495 11,192 Other assets 6,820 30,894 7,171 11,506 8,161 6,751 24,369 5,155 2,749 5,478 5,717 14,262 Total assets. 2,707,593 12,949,829 2,901,543 4,533,7183,314,020 2,626,958 8,959,156 2,083,1561,105,894 2,226,526 2,069,924 5,680,279 Liabilities F. R. notes 1,564,411 6,265,783 1,667,665 2,518,1852,099,429 1,244,399 5,177,136 1,185,628 510,6241,049,680 714,514 2,561,358 Deposits: Member bank reserves. 761,495 5,319,060 866,1631,491,107 808,463 958,2882,911,731 671,269 432,307 893,1341,033,708 2,520,280 U. S. Treasurer—general account 31,702 27,099 46,873 45,599 48,613 35,795 77,586 31,471 26,639 47,567 42,602 54,710 Foreign , 15,105 375,209 18,285 23,585 13,515 11,925 37,895 9,805 6,360 10,335 13,780 29,680 Other 436 281,845 9,862 1,865 2,266 1,141 1,039 865 485 1,054 1,571 34,055 Total deposits 808,738 5,703,213 941,1831,562,156 872,8571,007,1493,028,251 713,410 465,791 952,0901,091,6612,638,725 Deferred availability cash items 255,020 606,211 198,906 330,932 269,521 311,596 556,286 131,411 95,281 170,415 193,750 330,195 Other liabilities 832 3,280 707 2,192 665 693 2,466 520 579 587 660 1,750 Total liabilities 2,629,001 12,578,4872,808,4614,413,4653,242,4722,563,8378,764,1392,030,969 ,072,2752,172,7722,000,5855,532,028 Capital Accounts Capital paid in 17,817 102,652 21,388 32,902 15,874 16,950 47,610 11,749 7,543 14,136 19,685 40,574 Surplus (Sec. 7) 47,013 223,963 55,923 71,550 41,236 36,192 121,504 31,586 19,697 30,533 40,871 89,130 Surplus (Sec. 13b) 3,011 7,319 4,489 1,006 3,349 762 1,429 521 1,073 1,137 1,307 2,140 Other capital accounts. 10,751 37,408 11,282 14,795 11,089 9,217 24,474 8,331 5,306 7,948 7,476 16,407 Total liabilities and capital accounts 2,707,593 12,949,829 2,901,5434,533,7183,314,0202,626,9588,959,156 2,083,1561,105,894 2,226,5262,069,924 5,680,279 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent) 44.3 50.0 46.1 47.7 46.4 40.0 48.5 47.2 44.5 48.2 47.2 48.1 Contingent liability on acceptances purchased for foreign correspondents 8,134 436,956 9,846 12,700 7,278 6,422 20,406 5,280 3,425 5,565 7,420 15,982 Industrial loan commitments, 7 52 63 940 1 After deducting $11,000 participations of other Federal Reserve Banks. 4 After deducting $102,458,000 participations of other Federal Reserve 2 Less than $500. Banks. 3 After deducting $190,270,000 participations of other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS 311 FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS* ACCOUNTS [In thousands of dollars] FEDERAL RESERVE BANKS COMBINED Wednesday End of month Item 1958 1958 1957 Feb. 26 Feb. 19 Feb. 12 Feb. 5 Jan. 29 Feb. Jan. Feb. F. R. notes outstanding (issued to Bank). 27,745,074 27,890,64727,936,244 28,023,41128,137,602 27,742,068 28,109,074 27,747,268 Collateral held against notes outstanding: Gold certificate account 12,213,000 12,253,000 12,253,000 12,253,000 12,253,000 12,213,000 12,253,000 11,868,000 Eligible paper 44,028 28,203 42,158 30,088 49,143 37,058 44,668 108,447 U. S. Government securities 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,165,000 17,090,000 Total collateral 29,422,028 29,446,203 29,460,158 29,448,088 29,467,143 29,415,058 29,462,668 29,066,447 EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1958 Item Boston Y N o e r w k d P e h lp il h a i - a C l l a e n v d e- m Ri o c n h d - Atlanta Chicago Lo S u t. is M ap i o n l n is e- K C an it s y as Dallas F c S r is a a c n n o - F. R. notes outstanding (issued to Bank) 1,663,856 6,623,7011,754,7882,623,7512,185,2901,306,5215,301,536 ,235,207 534,8031,072,917764,196 2,675,502 Collateral held: Gold certificate acct.. 700,0003,270,000 640,000 ,130,000 875,000 425,0002,500,000 450,000140,000 300,000 283,0001,500,000 Eligible paper 11,480 8,450 17,128 U. S. Govt. securities. 1,150,0003,600,0001,200,0001,600,0001,350,0001,000,000 3,100,000 895,000 425,000 820,000 525,0001,500,000 Total collateral 1,850,000 6,870,0001,851,480 2,730,000 2,225,000 1,425,000 5,600,0001,353,450565,000 1,137,128 808,000 3,000,000 INDUSTRIAL LOANS BY FEDERAL RESERVE BANKS LOANS GUARANTEED UNDER REGULATION V1 [Amounts in thousands of dollars] [Amounts in millions of dollars] Applications Partici- Loans Loans Additional y E m e n a o d r n t o o h f r N b u e m r ap - to p r d o A a v t m e e d ount (a b p p m c u l r A e o o t o t p v m e ^ n u e d - o n d i t t) ( s a t L a m o o n u o a d t u n i - n n s g t) 2 ( C s a t m o m a o m n e u o d n m t u i - t n n s it g t - ) o ( i s n a p f t ta u m g a o f n t t i i u o i i n d o o n t u a i - n n s n n n t s s g c t i ) - - 3 y E m e n a o d r n t o o h f r N b u e m r au - t t o h o d r A a iz t m e ed ount am To o t o u a u n l t t stand g P in u o t g a e rt e r i a d o n n - a u o a b n n v u o a t a d t e m m s r i e e l r t r e a a o o n b n a w u g l g t d n e s e u r i t r e n a t s e r g o - - 1952 3,753 766,492 1,638 3,921 3,210 3,289 1952 ,159 2,124 979 803 586 1953 3,765 803,429 1,951 1,900 3,569 3,469 1953 ,294 2,358 805 666 364 1954 3,771 818,224 520 719 1,148 1,027 1954 ,367 2,500 472 368 273 1955 3,778 826,853 305 702 2,293 1,103 1955 ,411 2,575 294 226 170 1956 3,782 832,550 794 2,365 1,129 1956 ,468 2,761 389 289 125 1957 1957 Jan 3,782 833,045 822 2,315 1,126 Jan [,475 2,823 401 298 120 Feb 3,782 833,692 758 2,014 1,017 Feb 1,481 2,829 398 296 128 Mar 3,782 834,051 772 1,987 1,012 Mar 1,482 2,842 408 304 127 Apr 3,782 834,668 780 1,955 991 Apr 1,485 2,850 402 300 133 May 3,782 835,264 774 1,794 948 May.. 1,488 2,862 407 305 130 June 3,783 835,766 80 742 1,780 919 June 1,493 • 2,867 412 307 126 July 3,784 836,636 155 608 1,795 812 July 1,496 2,878 412 307 123 Aug 3,784 837,410 80 628 1,815 816 Aug ,497 2,880 390 292 146 Sept 3,785 838,714 760 620 1,323 684 Sept ,498 2,882 395 295 138 Oct 3,786 840,504 586 1,165 1,169 Oct 1,498 2,888 398 300 124 Nov 3,786 840,814 581 1,130 1,126 Nov ,500 2,906 394 298 127 Dec 3,786 841,290 524 1,109 1,122 Dec 1,503 2,912 395 300 135 1958 1958 Jan 3,786 841,691 535 1,058 1,087 Jan ,506 2,923 380 290 156 1 Includes applications approved conditionally by the Federal Reserve i Loans made by private financing institutions and guaranteed by Gov- Ba 2 n k In s c a lu n d d e s u n i d n e d r u s c t o ri n a s l i d l e o r a a n t s io p n a s b t y d a u p e p l 3 i c m an o t n . ths or more, which are not e o r f n 1 m 9 e 5 n 0 t . pr F o e c d u e r r e a m l e R n e t se a r g v e e n c B ie a s n , k p s u a r c s t u a a n s t fi t s o c a t l h e a g D en e t f s e n o s f e th P e r o g d u u a c r t a io n n te e A in c g t included in industrial loans outstanding in weekly statement of condition agencies in these transactions, and the procedure is governed by Regulaof Federal Reserve Banks. tion V of the Board of Governors. 3 Not covered by Federal Reserve Bank commitment to purchase or discount. NOTE.—The difference between guaranteed loans authorized and sum of loans outstanding and additional amounts available to borrowers NOTE.—The difference between amount of applications approved and under guarantee agreements outstanding represents amounts repaid, the sum of the following four columns represents repayments of advances, guarantees authorized but not completed, and authorizations expired or and applications for loans and commitments withdrawn or expired. withdrawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 BANK DEBITS FEDERAL RESERVE BANK RATES ON INDUSTRIAL LOANS 1 FEES AND RATES ON LOANS GUARANTEED UNDER REGULATION V* [In effect February 28. Per cent per annum] [In effect February 28] To industrial or Fees Payable to Guaranteeing Agency by Financing commercial To financing institutions Institution on Guaranteed Portion of Loan businesses Guarantee fee Percentage of Federal On discounts or Percentage of (percentage of any commitment Reserve purchases loan guaranteed interest payable fee charged Bank by borrower) borrower On On On loans 2 commit- Portion Re- commitments for which main- ments 70 or less 10 10 institu- ing 75 15 15 tion is por- 80 20 20 obligated tion 85 25 25 90 30 30 95 . . .. 35 35 Boston Over 95 40-50 40-50 New York... Philadelphia.. Cleveland Maximum Rates Financing Institution May Charger Borrower Richmond... [Per cent per annum] Atlanta Chicago St. Louis.... Interest rate Minneapolis.. 4-6 4-6 Kansas City.. Commitment rate. Dallas San Francisco (3) i Schedule of fees and rates established by the Board of Governors on loans made by private financing institutions and guaranteed by Government procurement agencies, pursuant to the Defense Production Act 1 Rates on industrial loans, discounts or purchases of loans, and com- of 1950. Federal Reserve Banks act as fiscal agents of the guaranteeing mitments under Sec. 13b of the Federal Reserve Act. Maturities not agencies in these transactions, and the procedure is governed by Regulaexceeding five years. tion V of the Board of Governors. 2 Including loans made in participation with financing institutions. 3 Rate charged borrower less commitment rate. * Rate charged borrower. 5 Rate charged borrower but not to exceed 1 per cent above the discount rate. * Twenty-five per cent of loan rate. Charge of Vi per cent per annum is made on undisbursed portion. 7 Charge of XA per cent per annum is made on undisbursed portion. BANK DEBITS AND DEPOSIT TURNOVER [Debit in millions of dollars] Annual rate of turnover of demand deposits except Debits to demand deposits accounts, interbank and U. S. Government deposits except interbank and U. S. Government accounts Year or month Without seasonaladjustment Seasonally adjusted 3 Total, all New 6 337 other New 6 337 other New 6 337 other reporting York other reporting York other reporting York other reporting centers City centers* centers2 City centers1 centers2 City centers1 centers2 1950 1,380 112 509,340 298,564 572,208 31.1 22.6 17.2 1951 1,542,554 544,367 336,885 661,302 31.9 24.0 18.4 1952 1,642,853 597,815 349,904 695,133 34.4 24.1 18.4 1953 1,759 069 632,801 385,831 740,436 36.7 25.6 18.9 1954 1,887,366 738,925 390,066 758,375 42.3 25.8 19.2 1955 2,043,548 766,890 431,651 845,007 42.7 27.3 20.4 1956 2,200,643 815,856 462,859 921,928 45.8 28.8 21.8 1957 2,356,768 888,455 489,311 979,002 49.5 30.4 23.0 1956—Dec 201,876 77,495 40,912 83,469 51.8 29.9 23.3 45.8 28.6 22.1 1957_Jan 204,514 76,460 42,596 85,457 48.3 30.0 22.9 48.1 30.6 22.7 Feb 177,536 67,035 36,886 73,615 48.9 30.2 23.0 50.2 31.0 23.1 Mar 197,231 74,786 42,113 80,332 48.7 32.0 22.5 47.5 29.2 22.6 Apr 192 701 72,328 40,182 80,192 46.9 30.3 22.4 47.6 29.4 23 1 May 197,257 71,780 42,128 83,349 47.1 30.5 23.2 48.3 31.0 23.7 June 193,349 74,512 39,942 78,895 51.4 30.4 23.1 47.6 29.8 23.1 July . 200 559 74,509 41,711 84,339 49.5 30.6 23.6 50.8 31.2 24 0 AUK 190,539 68,409 40,194 81,936 44.7 28.5 22.1 51.7 31.1 23.5 Sept 189 294 70,953 39,095 79,245 52.2 31.4 24.1 50.9 31.7 23 7 Oct 204,168 77,431 41,761 84,976 49.9 29.6 22.7 51.4 30.5 22.7 Nov 189,246 71,667 39,012 78,567 51.2 30.5 23.5 51.7 30.0 22.3 Dec 220 376 88,584 43,692 88,100 58.9 32.2 24.7 52.1 30.8 23 4 1958 Jan 212,862 84,355 41,988 86,518 54.6 30.0 23.3 54.3 30.6 23.1 Feb 181,693 72,803 36,185 72,705 55.4 *30.0 *22.7 56.8 *>30.8 *22.8 * Preliminary. 2 Prior to April 1955, 338 centers. 1 Boston, Philadelphia, Chicago, Detroit, San Francisco, and Los 3 These data are complied by the Federal Reserve Bank of New York. Angeles. NOTE.—For description see BULLETIN for April 1953, pp. 355-57. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CURRENCY 313 DENOMINATIONS OF UNITED STATES CURRENCY IN CIRCULATION [On basis of compilation by United States Treasury. In millions of dollars] Total Coin and small denomination currency Large denomination currency End of year or in cirmonth culation1 Total Coin $12 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28 515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28 868 20 020 1 404 I 048 65 2 110 6 275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27 741 19,305 1.554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1952 30,433 21,450 ,750 1,228 71 2,143 6,561 9,696 8,985 2,669 5,447 343 512 4 10 1953 30 781 21 636 I 812 I 249 72 2,119 6,565 9,819 9,146 2,732 5,581 333 486 4 11 1954 30,509 21,374 1,834 1,256 71 2,098 6,450 9,665 9,136 2,720 5,612 321 464 3 15 1955 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1956 31,790 22,598 *,027 1,369 78 2,196 6,734 10,194 9,192 2,771 5,704 292 407 14 1957—Jan 30 614 21 597 1,990 1,276 76 2,065 6,427 9,763 9,017 2,701 5,613 289 402 3 8 Feb 30,575 21,601 991 1,269 75 2,058 6,450 9,756 8,974 2,689 5,586 287 400 3 Mar 30 585 21 639 2'666 1,270 75 2,063 6,473 9,758 8,946 2,679 5,573 286 397 8 Apr 30,519 21,588 2,020 1,276 75 2,055 6,425 9,737 8,931 2,674 5,566 285 395 3 May 30,836 21,905 2,029 301 76 2,093 6,554 9,852 8,931 2,679 5,564 284 393 3 8 June 31 082 22 123 2,042 1', 302 77 2,102 6,615 9,985 8,958 2,696 5,575 283 391 3 10 July 30,933 21,987 2,050 1,292 77 2,069 6,520 9,979 8,946 2,695 5,570 281 388 3 Aug . ... 31 133 22 155 2 060 1,296 78 2,085 6,581 10,055 8,977 2,701 5,596 280 388 4 8 Sept 31,073 22,088 2,069 1,312 78 2,084 6,533 10,013 8,984 2,696 5,611 279 386 9 Oct 31 090 22 086 2 083 1 330 77 2,089 6,533 9 975 9,003 2 695 5,632 279 385 4 9 Nov 31,661 22,582 2,099 1,356 78 2,146 6,726 10,177 9,079 2,725 5,677 279 386 3 8 Dec 31,834 22,626 2,110 1,398 80 2,188 6,662 10,187 9,208 2,777 5,752 280 384 3 13 1958 Jan 30,576 21,527 2,061 1,293 78 2,044 6,331 9,721 9,049 2,711 5,668 277 381 3 9 1 Outside Treasury and Federal Reserve Banks. Prior to December paper currency shown by denomination by amounts of unassorted cur- 1955 the totals shown as in circulation were less than totals of coin and rency (not shown separately.) 2 Paper currency only; $1 silver coins reported under coin. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION [On basis of compilation by United States Treasury. In millions of dollars] Held in the Treasury Currency in circulation l Kind of currency T st o J a a t 1 n a n 9 d l . 5 i o 8 3 n u 1 g t- A g s a o s g l s i d a l e v i c n e a u r s n r t d ity Tr c e a a s s h ury B F F a a . n o n R d r k . s H B a F e g a a . l e n d n n R d k t b . s s y Ja 1 n 9 . 5 3 8 1, De 1 c 9 . 5 3 7 1, Ja 1 n 9 . 5 3 7 1, certificates agents Gold 22,784 22,136 2647 Gold certificates 22,136 19,289 2,816 32 32 33 Federal Reserve notes 28,109 69 2,054 25,986 27,031 26,051 Treasury currency—total 5,158 U,405 54 544 4,559 4,771 4,530 Standard silver dollars 488 189 30 8 262 263 247 Silver bullion 2,216 2,216 Silver certificates and Treasury notes of 1890. . . ^2,405 393 2,011 2,157 2,035 Subsidiary silver coin 1,421 17 87 1,317 1,358 1,277 Minor coin 499 3 14 482 489 466 United States notes . 347 5 41 301 316 304 Federal Reserve Bank notes 126 1 125 126 138 National Bank notes 61 60 61 63 Total Jan. 31, 1958 (5) 24,541 771 19,289 5,414 30,576 Dec. 31, 1957 (5) 24,525 761 19,269 4,706 31,834 Jan. 31, 1957 23,998 809 18,746 5,192 30,614 1 Outside Treasury and Federal Reserve Banks. Includes any paper receipt); (3) as security for outstanding silver certificates—silver in bullion currency held outside the continental limits of the United States. Totals and standard silver dollars of a monetary value equal to the face amount for other end-of-month dates are shown in table above; totals for Wednes- of such silver certificates; and (4) as security for gold certificates—gold day dates, in table on p. 306. bullion of a value at the legal standard equal to the face amount of 2 Includes $156,039,431 held as reserve against United States notes such gold certificates. Federal Reserve notes are obligations of the and Treasury notes of 1890. United States and a first lien on all the assets of the issuing Federal Reserve 3 To avoid duplication, amount of silver dollars and bullion held as Bank. Federal Reserve notes are secured by the deposit with Federal security against silver certificates and Treasury notes of 1890 outstanding Reserve agents of a like amount of gold certificates or of gold certificates is not included in total Treasury currency outstanding. and such discounted or purchased paper as is eligible under the terms of 4 Less than $500,000. the Federal Reserve Act, or of direct obligations of the United States. Each Federal Reserve Bank must maintain a reserve in gold certificates of 5 Because some of the types of currency shown are held as collateral or at least 25 per cent against its Federal Reserve notes in actual circulareserves against other types, a grand total of all types has no special tion. Gold certificates deposited with Federal Reserve agents as collatsignificance and is not shown. See note for explanation of duplications. eral, and those deposited with the Treasury of the United States as a NOTE.—There are maintained in the Treasury—(1) as a reserve for redemption fund, are counted as reserve. Gold certificates, as herein United States notes and Treasury notes of 1890—$156,039,431 in gold used, includes credits with the Treasurer of the United States payable bullion; (2) as security for Treasury notes of 1890—an equal dollar amount in gold certificates. Federal Reserve Bank notes and national bank in standard silver dollars (these notes are being canceled and retired on notes are in process of retirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 ALL BANKS CONSOLIDATED CONDITION STATEMENT FOR BANKS AND THE MONETARY SYSTEM 1 [Figures partly estimated except on call dates. In millions of dollars] Assets Liabilities and Capital Total Bank credit assets, net- Treas- Total Date c u u r r y - U. S. Government obligations li i a ti b e i s l- Total Ca a p n i d tal Gold s r t o e i a n n u n g c t d - y - Total Lo n a e n t s, Total m C a e o n r m c d ia - l R Fe e d se e r r v a e l Other O s ri e t t c h ie u e s - r ca a n p n e i d t t al, c d u e r a p r n o e d n si c t y s c m o n a u i c e s n - t c t . s, savings Banks banks 1929—June 29., 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30. 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30. 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31. 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—Dec. 31. 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947_Dec. 31. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,384 14,624 1954_Dec. 31. 21,713 4,985 210,988 85,730 104,819 77,728 24,932 2,159 20,439 237,686 218,882 18,806 1955—Dec. 31. 21,690 5,008 217,437 100,031 96,736 70,052 24,785 ,899 20,670 244,135 224,943 19,193 1956—Dec. 31. 21,949 5,066 223,742 110,120 93,161 66,523 24,915 ,723 20,461 250,757 230,510 20,246 1957—Jan. 30. 22,300 100 219,300 108,000 90,800 65,700 23,400 ,700 20,400 246,600 226,400 20,300 Feb. 27. 22,300 100 218,100 108,200 89,400 64,800 22,900 ,700 20,600 245,500 225,100 20,500 Mar. 27., 22,300 100 219,000 109,600 88,500 63,800 23,100 ,700 20,900 246,400 225,400 20,900 Apr. 24., 22,300 100 221,700 110,400 90,200 65,400 23,200 ,600 21,100 249,200 228,200 20,900 May 29. 22,600 100 221,600 110,700 89,600 65,000 23,000 ,600 21,400 249,400 228,200 21,200 June 6. 22,620 106 221,454 110,938 89,114 64,548 23,016 ,550 21,402 249,180 227,576 21,605 June 26*>, 22,600 100 222,200 113,000 87,800 63,400 22,900 ,600 21,400 249,900 229,100 20,900 July 3 1P, 22,600 100 222,700 112,200 89,000 64,100 23,400 ,500 21,400 250,400 229,300 21,100 Aug. 2SP, 22,600 100 223,200 112,700 88,900 64,000 23,300 ,500 21,600 250,900 229,000 21,900 Sept. 25 P, 22,600 100 223,600 113,400 88,400 63,700 23,200 ,500 21,800 251,300 229,500 21,900 Oct. 30?. 22,700 100 225,200 113,000 89,700 65,000 23,200 ,500 22,500 253,000 231,100 21,900 Nov. 27", 22,800 100 224,800 113,000 89,300 64,400 23,600 ,400 22,400 252,700 231,000 21,700 Dec. 25 P, 22,800 5,100 228,300 114,800 90,800 65,400 24,000 ,300 22,700 256,200 235,200 21,100 1958—Jan. 29*>, 22,800 5,200 225,500 112,600 89,800 65,100 23,400 1,300 23,100 253,400 231,500 21,900 Details of Deposits and Currency U. S. Govt. balances Deposits adjusted and currency Seasonally adjusted series5 For- Date p b e o n d a i s e g e n i - t n t k s, T h c i u r o n a e r l g s a y d h s s - - m s b a c e a a v o A r n n i m c n t d k i g - a s s l B F. A a n R t k . s Total Total m T b C e i a o m r n c m k e ia s - l dep s b M a o a v u s n i i t n k t u g s s a 2 3 s l S S P a y o v s s i t n t e a g m l s p m o D d s a e e i n - - t d s4 b r C o s e a i n u u n d c t r k e - - y s c a d d u d e e T r j a p m o u r n o e s t a d s n a t n e i l c t d d y s j m p u D o a d s a e d s e t n - e i - - t d d s b r C o s e a i n u u n d c t r k e - y - s 1929—June 29.. 365 204 381 36 54,790 28,611 19,557 8,905 149 22,540 3,639 1933—June 30.. 50 264 852 35 40,828 21,656 10,849 9,621 1,186 14,411 4,761 1939—Dec. 30.. 1,217 2,409 846 634 63,254 27,059 15,258 10,523 1,278 29,793 6,401 1941—Dec. 31.. 1,498 2,215 1,895 867 76,336 27,729 15,884 10,532 1,313 38,992 9,615 1945—Dec. 31.. 2,141 2,287 24,608 977 150,793 48,452 30,135 15,385 2,932 75,851 26,490 1947_Dec. 31.. 1.682 1,336 1,452 870 170,008 56,411 35,249 17,746 3,416 87,121 26,476 111,100 85,200 25,900 1950—Dec. 30., 2,518 1,293 2,989 668 176,916 59,247 36,314 20,009 2,923 92,272 25,398 114,300 89,800 24,500 1954—Dec. 31.. 3,329 796 4,510 563 209,684 75,282 46,844 26,302 2,136106,550 27,852 129,700 102,800 26,900 1955—Dec. 31.. 3.167 767 4,038 394 216,577 78,378 48,359 28,129 890 109.914 28,285 133,200 105,800 27,400 1956—Dec. 31., 3,306 775 4,038 441 221,950 82,224 50,577 30,000 ,647111,391 28,335 134,400 106,700 27,700 1957_j F a e n b . . 3 0 27 . ., 3 3 , , 1 1 0 0 0 0 8 8 0 0 0 0 2 1 , , 8 90 0 0 0 6 3 0 0 0 0 2 21 1 8 9 , , 0 9 0 0 0 0 8 8 2 3 , , 9 6 0 0 0 0 5 5 1 1 , , 2 8 0 0 0 0 3 3 0 0 , , 1 2 0 0 0 0 , , 6 6 0 0 0 0 1 1 0 0 9 7 , , 5 0 0 0 0 0 2 2 7 7 , , 4 4 0 0 0 0 1 1 3 3 4 4 , , 1 5 0 0 0 0 1 1 0 0 6 6 , , 5 9 0 0 0 0 2 2 7 7 , , 6 6 0 0 0 0 Mar. 27., 3,100 800 3,800 500 217,200 84,600 52,600 30,400 ,600105,200 27,400 134,700 107,000 27,700 Apr. 24. 3,200 800 4,400 300 219,600 84,900 52,900 30,400 .500107,300 27,400 135,000 107,300 27,700 May 29., 3,200 800 5,300 500 218,400 85,700 53,600 30,600 ,500104,800 27,900 134,600 106,600 28,000 June 6. 3,247 792 3,625 473 219,439 85,715 53,605 30,647 ,463105,706 28,018 June 26^ 3,400 800 4,800 500 219,700 86,400 54,000 30,900 ,500105,600 27,800 135,200 300 27,900 July 3IP 3,300 800 3,700 500 221,000 86,700 54,400 30,900 ,400106,600 27,800 136,000 108,000 28,000 Aug. 28^ 3,200 800 4,400 500 220,000 87,100 54,700 31,000 ,400105,100 27,800 134,700 106,800 27,900 Sept. 25? 3,300 800 3,900 600 220,900 87,700 55,100 31,200 ,400105,500 27,800 133,900 106,200 27,700 Oct. 30^ 3.300 800 3,500 500 223,000 88,100 55,500 31,300 400 107,200 27,800 134,200 106,500 27,700 Nov. 27P, 3,200 800 3,300 400 223,300 87,600 55,000 31,300 ,300107,200 28,500 134,000 105,900 28,100 Dec. 25P, 3,300 800 4.500 300 226,300 88,600 55,500 31,700 ,300108,900 28,800 132,900 104,900 28,000 1958—Jan. 29*> 3,300 800 2,400 500 224,500 89,700 56,500 31,900 1,300 107,500 27,300 132,100 104,600 27,500 P Preliminary. NOTE.—For description of statement and back figures, see BULLETIN 1 Represents all commercial and savings banks, Federal Reserve Banks, for January 1948, pp. 24-32. The composition of a few items differs Postal Savings System, and Treasury currency funds (the gold account, slightly from the description in the BULLETIN article; stock of Federal Treasury currency account, and Exchange Stabilization Fund). Reserve Banks held by member banks is included in other securities and 2 Excludes interbank time deposits; U. S. Treasurer's time deposits, in capital and miscellaneous accounts, net, and balances of the Postal open account; and deposits of Postal Savings System in banks. Savings System and the Exchange Stabilization Fund with the U. S. 3 Prior to June 30, 1947, includes a small amount of demand deposits. Treasury are netted against capital and miscellaneous accounts, net, 4 Demand deposits other than interbank and U. S. Govt., less cash instead of against U. S. Govt. deposits and Treasury cash. Total deposits items reported as in process of collection. and currency shown in the monthly Chart Book excludes foreign bank de- 5 Seasonally adjusted series begin in 1947 and are available only for posits, net, and Treasury cash. Except on call dates, figures are rounded last Wednesday of the month. For back figures, see BULLETIN for July to nearest $100 million and may not add to the totals. 1957, pp. 828-29. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS 315 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES 1 [Figures partly estimated except on call dates. Amounts in millions of dollars] Loans and investments Deposits Total assets— Total Other Total Num- Class of bank Cash lia- capital ber and date U.S. Other assets 2 bilities ac- of Total Loans o G b o li v g t a . - s ri e t c ie u s - ca a p n i d tal TotaP b In a t n e k r - 2 Demand counts banks tions ac- Time counts3 U.S. Govt. Other All banks: 1939—Dec. 30 50,884 22,165 19,417 9,302 23,292 77,068 68,242 9,874 32,516 25,852 8,194 15,035 1941_Dec. 31 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 8,414 14,826 1945—Dec. 31 140,227 30,362 101,288 8,577 35,415 177,332 165,612 14,065 105,935 45,613 10,542 14,553 1947_Dec. 3H 134,924 43,002 81,199 10,723 38,388 175,091 161,865 13,033 1,346 94,381 53,105 11,948 14,714 1950—Dec. 30 148,021 60,386 72,894 14,741 41,086 191,317 175,296 14,039 2,809 101,936 56,513 13,837 14,650 1955—Dec. 31 190,780100,057 70,052 20,670 47,803 242,008 220,441 16,646 3,712 123,239 76,844 18,112 14.243 1956—Dec. 31 197,063'10,079 66,523 20,461 49,641 250,770 227,546 17,595 3,736125,308 80,908 19,249 14,167 1957_ J j u an n . e 30 6 1 19 9 7 4 , , 4 9 6 5 5 0 1 0 1 8 1 , , 8 5 3 1 0 5 6 6 5 4 , , 6 54 8 8 0 2 2 0 1 , , 4 4 4 0 0 2 4 4 1 0 , , 6 8 4 3 0 4 2 2 4 4 0 2 , , 7 6 3 4 0 7 2 21 1 6 6 , , 9 0 8 4 6 0 1 14 4 , , 4 1 2 8 3 0 3 1 , ,6 3 2 2 0 0 1 1 1 1 8 4, , 6 6 5 0 9 0 8 8 1 4 , , 6 5 4 8 0 4 1 1 9 9, , 8 3 7 4 9 0 1 1 4 4 , , 1 1 6 4 3 4 June 26* 198,600113,810 63,360 21,430 42,250 245,050 219,790 14,380 4,490 115,690 85,230 19,760 14,138 July 31* 198,530112,960 64,140 21,430 42,840 245,740 220,640 14,950 3,390116,690 85,610 20,000 14,135 Aug. 28* 199,250113,590 64,040 21,620 42,080 245,850 219,700 14,370 4,130 115,150 86,050 20,140 14,133 Sept. 25? 199,820114,260 63,720 21,840 42,040 246,370 220,150 14,800 3,580115,160 86,610 20,210 14,128 Oct. 30* 201,450114,000 64,960 22,490 42,590 248,660 222,030 14,710 3,180 117,100 87,040 20,450 14,113 Nov. 27* 200,991100 111144,130 64,390 22,390 43,600 249,150 222,380 14,550 3,040 118,190 86,600 20,540 14,102 Dec. 25*....• 203,640115,520 65,390 22,730 45,840 254,020 227,480 15,510 4,170120,250 87,550 20,570 14,090 1958—Jan. 29* 201,690 13,490 65,110 23,090 41,930 248,430 222,320 14,950 2,150116,540 20,560 14,081 All commercial banks: 1939—Dec. 30 40,668 17,238 16,316 7,114 22,474 65,216 57,718 9,874 32,513 15,331 6,885 14,484 1941_Dec. 31 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 7,173 14,278 1945_Dec. 31 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 8.950 14,011 1947_Dec. 3H 116,284 38,057 69,221 9,006 37,502 155,377 144,103 13,032 1,343 94,367 35,360 10,059 14,181 1950—Dec. 30 126,675 52,249 62,027 12,399 40,289 168,932 155,265 14,039 2,806 101,917 36,503 11,590 14,121 1955—Dec. 31 160,881 82,601 61,592 16,688 46,838 210,734 192,254 16,643 3,709 123,187 48,715 15,300 13,716 1956—Dec. 31 165,123 90,302 58,552 16,269 48,720 217,460 197,515 17,593 3,733125,282 50,908 16,302 13,640 1957—Jan. 30 162,810 88,930 57,710 16,170 40,800 207,290 185,930 14,180 1,620 118,570 51,560 16,380 13,636 June 6 164,515 91,028 56,642 16,845 39,995 208,393 186,308 14,421 3,318 114,633 53,937 16,837 13,619 June 26* 165,600 93,280 55,500 16,820 41,380 210,710 188,880 14,380 4,490115,660 54,350 16,750 13,613 July 31* 165,380 92,340 56,280 16,760 42,040 211,310 189,710 14,950 3,390116,660 54,710 16,970 13,610 Aug. 28* 165,900 92,840 56,170 16,890 41,320 211,250 188,680 14,370 4,130 115,120 55,060 17,090 13,608 Sept. 25* 166,320 93,400 55,870 17,050 41,260 211,590 188,930 14,800 3,580115,130 55,420 17,140 13,603 Oct. 30* 167,900 93,000 57,280 17,620 41,790 213,840 190,740 14,710 3,180117,070 55,780 17,380 13,588 Nov. 27* 167,270 93,010 56,840 17,420 42,800 214,220 191,050 14,550 3,040118,160 55,300 17,440 13,578 Dec. 25* 169,840 94,280 57,850 17,710 44,900 218,810 195,750 15,510 4,170120,220 55,850 17,490 13,567 1958—Jan. 29* 167,560 92,110 57,570 17,880 41,050 212,940 190,360 14,950 2,150116,510 56,750 17,470 13,561 All member banks: 1939—Dec. 30 941 13,962 14,328 5,651 19,782 55,361 49,340 9,410 743 27,489 11,699 5,522 6,362 1941_Dec. 31 521 18,021 19,539 5,961 23,123 68,121 61,717 10,525 1,709 37,136 12,347 5,886 6,619 1945—Dec. 31 183 22,775 78,338 6,070 29,845 138,304 129,670 13,640 22,179 69,640 24,210 7,589 6,884 1947_Dec. 31 846 32,628 57,914 7,304 32,845 132,060 122,528 12,403 1,176 80,609 28,340 8,464 6,923 1950—Dec. 30 424 44,705 52,365 10,355 35,524 144,660 133,089 13,448 2,523 87,783 29,336 9,695 6,873 1955—Dec. 31 360 70,982 50,697 13,680 41,416 179,414 163,757 15,865 3,327105,400 39,165 12,783 6,543 1956—Dec. 31 768 78,034 47,575 13,159 42,906 184,874 167,906 16,855 3,292106,850 40.909 13,655 6,462 1957_ J j u an n . e 30 6 8 5 0 7 8 9 7 7 6 8 , , 7 4 4 4 2 8 4 4 6 5 , , 7 82 6 9 7 1 13 3 , , 5 0 3 7 1 0 3 3 5 5 , , 9 2 0 7 9 0 1 1 7 7 5 6 , , 7 5 6 0 2 7 1 1 5 5 7 7 , , 4 5 8 9 5 3 1 1 3 3 , , 5 7 5 3 9 6 2 1 , ,4 9 0 3 8 2 1 9 0 7 1 , , 6 0 1 8 2 4 4 43 1 , , 3 4 1 3 3 4 1 1 3 4 , , 7 0 1 5 3 8 6 6 , , 4 4 5 4 9 5 June 26* 848 80,529 44,808 13,511 36,660 178,816 160,116 13,704 4,086 98,673 43,653 14,004 6,438 July 31* ,573 79,621 45,490 13,462 37,137 179,151 160,652 14,236 3,090 99,425 43,901 14,210 6,430 Aug. 28* ,010 80,103 45,334 13,573 36,594 179,188 159,767 13,681 3,715 98,187 44,184 14,300 6,427 Sept. 25* ,315 80,608 45,007 13,700 36,399 179,283 159,759 14,095 3,189 97,997 44,478 14,341 6,421 Oct. 30* 475 80,155 46,158 14,162 36,935 181,109 161,229 14,008 2,777 99,704 44,740 14,539 6,411 Nov. 27* ,88! 80,097 45,823 13,962 37,862 181,440 161,536 13,841 2,681 100,648 44,366 14,584 6,406 Dec. 25* ,239 81,229 46,812 14,198 39,604 185,467 165,648 14,743 3,782102,247 44,876 14,623 6,393 1958—Jan. 29* ,122 79,160 46,599 14,363 36,151 180,150 160,793 14,237 1,855 99,109 45,592 14,630 6,390 All mutual savings banks: 1939—Dec. 30 10,216 4,927 3,101 2,188 818 11,852 10,524 10,521 1,309 551 1941_Dec. 31 10,379 4,901 3,704 1,774 793 11,804 10,533 10,527 1,241 548 1945_Dec. 31 16,208 4,279 10,682 1,246 609 17,020 15,385 15,371 1,592 542 1947_Dec. 314 18,641 4,944 11,978 1,718 886 19,714 17,763 17,745 1,889 533 1950—Dec. 30 21,346 8,137 10,868 2,342 797 22,385 20,031 20,009 2,247 529 1955—Dec. 31 29,898 17,456 8,460 3,982 965 31,274 28,187 28,129 2,812 527 1956—Dec. 31 31,940 19,777 7,971 4,192 920 33,311 30,032 30,001 2,947 527 1957—Jan. 30 32,140 19,900 7,970 4,270 840 33,440 30,110 30,080 2,960 527 June 6 32,950 20,487 7,906 4,557 839 34,254 30,678 30,647 3,042 525 June 26* 33,000 20,530 7,860 4,610 870 34,340 30,910 30,880 3,010 525 July 31* 33,150 20,620 7,860 4,670 800 34,430 30,930 30,900 3,030 525 Aug. 28* 33,350 20,750 7,870 4,730 760 34,600 31,020 30,990 3,050 525 Sept. 25* 33,500 20,860 7,850 4,790 780 34,780 31,220 31,190 3,070 525 Oct. 30* 33,550 21,000 7,680 4,870 800 34,820 31,290 31,260 3,070 525 Nov. 27* 33,640 21,120 7,550 4,970 800 34,930 31,330 () 31,300 3,100 524 Dec. 25* 33,800 21,240 7,540 5,020 940 35,210 31,730 (5) 31,700 3,080 523 1958—Jan. 29* 34,130 21,380 7,540 5,210 880 35,490 31,960 31,930 3,090 520 v Preliminary. available. Comparability of figures for classes of banks is affected some- 1 All banks in the United States. All banks comprise all commercial what by changes in Federal Reserve membership, insurance status, and banks and all mutual savings banks. All commercial banks comprise all the reserve classifications of cities and individual banks, and by mergers, nonmember commercial banks and all member banks (including (1) one etc. bank in Alaska and one in the Virgin Islands that became members on 2 Beginning June 30, 1942, excludes reciprocal balances, which on Apr. 15, 1954, and May 31, 1957, respectively, and (2) a noninsured non- Dec. 31, 1942, aggregated $513 million at all member banks and $525 deposit trust company, but excluding three mutual savings banks that million at all insured commercial banks. became members in 1941). Stock savings banks and nondeposit trust 3 Includes other assets and liabilities not shown separately. companies are included with commercial banks. Number of banks in- For other notes see following two pages. cludes a few noninsured banks for which asset and liability data are not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 ALL BANKS PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES i—Continued [Figures partly estimated except on call dates. Amounts in millions of dollars] Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans o G U b o l . i S v g . t a . - O se t c h u e - r a C ss a e s t h s 2 c b T a i a l l p o i i n a t i t d i t - a e a l s l Total2 b In an te k r - 2 Dema O nd ther c c T a o a p o u c t i n - t a a t l s l N ba b u o n e m f r ks tions ac- Time counts3 U. S. Other Govt. Central reserve city member banks: New York City: 1939 Dec 30 9,339 3,296 4,772 1.272 6,703 16,413 14,507 4,238 74 9,459 736 1,592 36 1941—Dec. 31 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4 207 866 12,051 807 1,648 36 1945 Dec 31 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,657 5,940 17,287 1,236 2,120 37 1947 Dec. 31 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4 464 267 19 040 1 445 2 259 37 195O__Dec. 30 20,612 9,729 8,993 1,890 7,922 28,954 25,646 4,638 451 18,836 1,722 2,351 23 1955 Dec 31 23,583 14,640 6,796 2,148 8,948 33,228 29,378 5,600 756 20,719 2,303 2,745 18 1956—Dec. 31 23,809 15,987 6,057 1,765 8,629 33,381 29,149 5,987 747 19,940 2,475 2 873 18 1957 Jan 30 23,101 15,665 5,645 1,791 7,046 31,151 26,497 4,927 188 18,905 2,477 2,878 18 23,293 15,895 5,738 1,660 6,692 30,993 26,322 5,033 688 17,836 2,765 2 907 18 June 26* 23,686 16,776 5,270 1,640 7,384 32,053 27,565 5,158 938 18,722 2,747 2,909 18 July 31* 23,182 16,006 5,476 1,700 7,470 31,685 26,981 5 233 726 18,320 2 702 3 061 18 Aug 28* 23,252 16,191 5,298 1,763 7,701 32,144 27,070 4,945 737 18,698 2,690 3,059 18 Sept 25* 23,258 16 216 5,254 1,788 6 984 31 403 26,182 5 108 535 17 778 2 761 3 054 18 Oct. 30* 23,385 16,115 5,415 1,855 7,539 32,103 27,030 5,119 500 18,648 2,763 3,127 18 Nov 27* ... . 23,054 15,887 5,423 1,744 7,700 31,921 26,935 5,148 443 18,591 2,753 3,133 18 Dec. 25* 23,776 16,232 5,726 1,818 7,515 32,418 27,176 5,105 810 18,428 2,833 3,131 18 1958—Jan. 29* 23,181 15,501 5,690 1,990 7,134 31,612 26,600 5,328 266 18,081 2,925 3,152 18 Chicago: 1939—Dec. 30 2,105 569 1,203 333 1,446 3,595 3,330 888 80 1,867 495 250 14 1941 Dec 31 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31 5,931 1,333 4,213 385 1 489 7,459 7,046 I 312 I 552 3 462 719 377 12 1947—Dec. 31 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1950 Dec 30 5,569 2,083 2,911 576 2,034 7,649 7,109 1,229 174 4,604 1,103 490 13 1955—Dec. 31 6,542 3,342 2,506 695 2 132 8.720 8,010 1,296 222 5,165 1,327 628 13 1956—Dec. 31 6,473 3,772 2,113 588 2,171 8,695 7,943 1,372 184 5,069 1,319 660 14 1957 Jan 30 6,120 3,494 2 074 552 1 905 8,077 7,280 1,125 68 4,784 1,303 660 14 June 6 6,266 3,789 1,884 593 1 821 8,147 7,284 1,184 97 4,691 1,312 665 14 June 26* 6,293 3,893 ,847 553 1,912 8,258 7,407 1,153 305 4,630 1,319 663 14 July 31* 6,234 3,862 ,825 547 1 947 8,239 7,462 I 279 196 4,676 1,311 671 14 Aug 28* 6,289 3,915 ,823 551 1,968 8,314 7,440 1,185 275 4,674 1,306 671 14 Sept. 25* 6,261 3,937 1,783 541 1 939 8,257 7,319 I 251 186 4,573 1,309 670 14 Oct 30* 6,273 3,829 [,888 556 1,969 8,310 7,264 [,183 148 4,624 1,309 679 14 Nov. 27* 6,275 3,781 .927 567 1 938 8,285 7,320 [ 145 151 4 708 1 316 685 14 Dec 25* 6,404 3,851 U996 557 2,016 8,484 7,489 1,192 236 4,719 1,342 685 14 1958—Jan 29* 6,211 3,600 2,050 561 1,862 8,137 7,291 170 86 4,695 1,340 688 14 Reserve city member banks: 1939 Dec 30 12,272 5,329 5,194 1,749 6,785 19,687 17,741 3,686 435 9,004 4,616 1,828 346 1941—Dec. 31 15,347 7,105 6,467 1,776 8 518 24,430 22,313 4,460 491 12,557 4,806 1,967 351 1945—Dec. 31 40,108 8,514 29,552 2,042 11 286 51,898 49,085 6 448 3 221 24,655 9,760 2,566 359 1947 Dec 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,649 405 28,990 11,423 2,844 353 1950—Dec. 30 40,685 17,906 19,084 3,695 13,998 55,369 51,437 6,448 976 32,366 11,647 3,322 336 1955—Dec. 31 52,459 28,622 18,826 5,011 16 994 70,478 64,733 7 446 1,288 39,835 16,164 4 641 292 1956 Dec 31 53,915 31,783 17,368 4,764 17,716 72,854 66,524 7,878 1,201 40,647 16,797 5,076 289 1957—Jan. 30 52,978 31,234 17,056 4,688 14 802 69,034 62,111 6,224 474 38,393 17,020 5,082 290 June 6 .. 53 137 31,435 16,797 4,905 14 532 68,965 61,796 6 228 •I 051 36,874 17,642 5 182 282 June 26* 53,649 32,168 16,529 4,952 15,150 70,083 62,886 6,138 1,634 37,276 17,838 5,195 282 July 31* 53,785 32,104 16,798 4,883 15 079 70,164 63,225 6,373 1,264 37,671 17,917 5,199 282 Aug 28* 53,831 32,259 16,696 4,876 14,683 69,808 62,521 6,248 1,453 36,820 18,000 5,242 282 Sept. 25* 53,881 32,576 16,372 4,933 14,930 70,128 62,870 6,408 1,274 37,103 18,085 5,260 281 Oct. 30* 54 109 32,261 16,755 5,093 14 899 70,389 62,963 6 367 918 37,483 18,195 5 298 281 Nov 27* 54,201 32,510 16,669 5,022 15,500 71,106 63,556 6,203 1,017 38,159 18,177 5,338 c280 Dec. 25* 55,287 32,943 17,251 5,093 16,564 73,243 65,968 6 961 1,569 38,993 18,445 5,357 «279 1958—Jan. 29* 54,294 32,076 17,156 5,062 14,715 70,471 63,244 6,364 610 37,591 18,679 5,394 278 Country member banks: 1939—Dec. 30 10 224 4,768 3,159 2,297 4 848 15,666 13,762 598 154 7 158 5 852 1 851 5,966 1941—>Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 822 225 10,109 6,258 1,982 6,219 1945—Dec 31 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,223 5,465 24,235 12,494 2,525 6,476 1947—Dec. 31 36 324 10,199 22,857 3,268 10 778 47,553 44,443 1,073 • 432 28 378 14,560 2 934 6,519 1950—Dec. 30 40,558 14,988 21,377 4,193 11,571 52,689 48,897 1,133 922 31,977 14,865 3,532 6,501 1955—Dec 31 52,775 24,379 22,570 5,826 13,342 66,988 61,636 [,523 1,061 39,681 19,372 4,769 6,220 1956—Dec. 31 54 571 26,491 22,037 6,042 14,390 69,945 64,289 [,618 1,160 41,194 20,317 5 046 6,141 1957 Jan 30 54,380 26,349 21,992 6,039 12,156 67,500 61,597 1,283 678 39,002 20,634 5,093 6,137 June 6.. 55 112 27,330 21,409 6,373 12 224 68,404 62,192 1,290 I 097 38 211 21 594 5 304 6,131 June 26* 55,220 27,692 21,162 6,366 12,214 68,422 62,258 1,255 1,209 38,045 21,749 5,237 6,124 July 31* 55,372 27,649 21,391 6,332 12,641 69,063 62,984 1,351 904 38,758 21,971 5,279 6,116 Aug. 28* 55 638 27,738 21,517 6,383 12,242 68,922 62,736 1,303 1,250 37,995 22,188 5 328 6,113 Sept. 25* 55,915 27,879 21,598 6,438 12,546 69,495 63,388 ,328 1,194 38,543 22,323 5,357 6,108 Oct. 30* .. 56 708 27,950 22,100 6,658 12 528 70,307 63,972 ,339 1,211 38 949 22 473 5 435 6,098 Nov. 27* 56,352 27,919 21,804 6,629 12,724 70,128 63,725 ,345 1,070 39,190 22,120 5,428 c6,094 Dec 25* 56,772 28,203 21,839 6,730 13,509 71,322 65,015 485 ,167 40,107 22,256 5,450 *6,082 1958—Jan. 29* 56,436 27,983 21,703 6,750 12,440 69,930 63,658 ,375 893 38,742 22,648 5,396 6,080 4 Beginning with Dec. 31, 1947, the all-bank series was revised as an- from noninsured mutual savings to nonmember commercial banks. nounced in November 1947 by the Federal bank supervisory agencies. 5 Less than $5 million. Because preliminary data are rounded to the At that time a net of 115 noninsured nonmember commercial banks nearest $10 million no amount is shown except on call dates. with total loans and investments of about $110 million was added, and For other notes see preceding and opposite pages. 8 banks with total loans and investments of $34 million were transferred Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ALL BANKS 317 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER OF ALL BANKS, BY CLASSES i—Continued [Amounts in millions of dollars] Loans and investments Deposits Total assets— Cla a s n s d o f d a b t a e nk Total Loans o G U b o l . i v g S t a . . - O s r e i t t c h ie u e s - r a C ss a e s t h s 2 c b T a i a l l o p i n i a t t i d i a t - e a l s l Total 2 b In a t n e k r - 2 Dema O nd ther c c T a o a o p u c i t n - t a a t l s l b N a b u o n e m f r ks tions ac- Time counts 3 U. S. Other Govt. All insured commercial banks: 1941—Dec. 31 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 6,844 13,426 1945—Dec. 31 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,276 29,876 8,671 13,297 1947—Dec. 31 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,670 1,325 92,975 34,882 9,734 13,398 1955—Dec. 31 159,164 82,081 60,765 16,318 46,480 208,608 190,512 16,273 3,697 122,149 48,393 14,980 13,216 1956—June 30 158,344 86,374 55,835 16,136 42,126 203,676 184,680 14,862 5,221 114,892 49,705 15,600 13,208 Dec. 31 163,601 89,831 57,837 15,933 48,352 215,514 195,953 17,282 3,717 124,346 50,608 15,988 13,195 1957—June 6 163,025 90,571 55,973 16,481 39,713 206,567 184,860 14,095 3,310 113,812 53,643 16,525 13,189 National member banks: 1941_Dec. 31 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 3,640 5,117 1945—Dec. 31 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 4,644 5,017 1947—Dec. 31 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,410 795 53,541 19,278 5,409 5,005 1955—Dec. 31 86,152 43,428 33,579 9,144 25,697 113,412 103,903 9,317 2,063 65,840 26,683 7,915 4,692 1956—June 30 85,455 45,860 30,555 9,040 23,545 110,703 100,826 8,404 2,929 62,123 27,370 8,232 4,667 Dec. 31 88,477 48,109 31,568 8,800 27,006 117,345 107,161 9,844 2,074 67,434 27,810 8,450 4,651 1957_june 6 87,910 48,415 30,345 9,150 22,525 112,460 100,989 7,963 1,782 61,737 29,506 8,722 4,647 State member banks: 1941—Dec. 31 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 2,246 1,502 1945—Dec. 31 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 2,945 1,867 1947—Dec. 31 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,993 381 27,068 9,062 3,055 1,918 1955—Dec. 31 49,208 27,554 17,118 4,536 15,719 66,002 59,854 6,549 1,264 39,559 12,482 4,868 1,851 1956—June 30 48,973 28,923 15,671 4,379 13,992 64,117 57,563 6,104 1,877 36,781 12,801 5,061 1,832 Dec. 31 50,291 29,924 16,007 4,359 15,900 67,530 60,744 7,012 1,218 39,416 13,098 5,205 1,811 1957—June 6 49,898 30,034 15,483 4,381 12,745 64,047 56,605 5,773 1,150 35,874 13,807 5,337 1,798 Insured nonmember commercial banks: 1941—Dec. 31 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 959 6,810 1945—Dec. 31 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 1,083 6,416 1947—Dec. 31 16,444 4,958 10,039 1,448 4,083 20,691 19,340 266 149 12,366 6,558 1,271 6,478 1955—Dec. 31 23,829 11,108 10,081 2,640 5,067 29,220 26,779 408 370 16,749 9,252 2,199 6,677 1956—June 30 23,942 11,600 9,621 2,720 4,592 28,884 26,316 355 415 15,988 9,558 2,309 6,713 Dec. 31 24,859 11,808 10,274 2,777 5,448 30,667 28,073 427 425 17,497 9,724 2,336 6.737 1957—June 6 25,243 12,134 10,156 2,953 4,446 30,088 27,292 359 378 16,200 10,355 2,469 <5,748 Noninsured nonmember commercial banks: 1941_Dec. 31 1,457 455 761 241 763 2,283 1,872 329 1,291 253 329 852 1945—Dec. 31 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 279 714 1947—Dec. 3H 2,009 474 1,280 255 576 2,643 2,251 363 18 1,392 478 325 783 1955—Dec. 31 1,716 520 827 370 357 2,126 1,742 370 12 1,039 322 320 499 1956—June 30 1,664 513 785 365 318 2,036 1,646 377 11 932 326 326 470 Dec. 31 1,521 471 714 336 369 1,946 1,562 310 16 936 300 313 444 1957—June 6 1,490 457 669 364 282 1,825 1,448 326 821 294 312 429 All nonmember commercial banks: 1941—Dec. 31 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 1,288 7,662 1945—Dec. 31 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 1,362 7,130 1947—Dec. 314 18,454 5,432 11,318 1,703 4,659 23,334 21,591 629 167 13,758 7,036 1,596 7,261 1955—Dec. 31 25,546 11,628 10,908 3,010 5,424 31,347 28,522 778 382 17,788 9,574 2,519 7,176 1956—June 30 25,605 12,114 10,406 3,085 4,909 30,920 27,962 732 426 16,920 9,884 2,636 7,183 Dec. 31 26,381 12,279 10,989 3,113 5,817 32,613 29,635 737 440 18,433 10,024 2,649 7,181 1957—June 6 26,733 12,591 10,825 3,317 4,728 31,913 28,740 685 385 17,021 10,649 2,781 7,177 Insured mutual savings banks: 1941—Dec. 31 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945—Dec. 31 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1,034 192 1947—Dec. 31 12,683 3,560 8,165 958 675 13,499 12,207 12,192 1,252 194 1955—Dec. 31 22,331 13,563 5,858 2,910 785 23,458 21,237 21,182 2,006 220 1956—June 30 23,168 14,514 5,636 3,018 739 24,271 21,959 21,930 2,061 220 Dec. 31 24,170 15,542 5,518 3,110 739 25,282 22,886 22,857 2,130 223 1957—June 6 25,185 16,228 5,505 3,452 672 26,241 23,578 23,549 2,240 234 Noninsured mutual savings banks: 1941—Dec. 31 8,687 4,259 3,075 1,353 642 9,846 8,744 8,738 1,077 496 1945—Dec. 31 5,361 1,198 3,522 641 180 5,596 5,022 5,020 558 350 1947—Dec. 3H 5,957 1,384 3,813 760 211 6,215 5,556 5,553 637 339 1955—Dec. 31 7,567 3,893 2,601 1,072 180 7,816 6,950 6,947 806 307 1956—June 30 7,898 4,125 2,661 1,112 178 8,150 7,225 7,222 824 307 Dec. 31 7,770 4,235 2,453 1,082 182 8,028 7,146 7,143 817 304 1957—June 6 7,765 4,259 2.401 1,105 167 8,013 7,100 7,098 802 291 For other notes see preceding two pages. NOTE.—For revisions in series prior to June 30, 1947, see BULLETIN for July 1947, pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 COMMERCIAL BANKS LOANS AND INVESTMENTS OF COMMERCIAL BANKS, BY CLASSES 1 [In millions of dollars] Loans 2 Investments Cla c s a s l a l o n d f d a b te ank i m T l n o a v o e n a e t n n d a s t s t l s - Total 2 C c o m m c p p i k l i o p i n u n a e e a e a e m g d - r r r - t l n , - - - - A c tu g u a r l r l - i - - b o p d a L T e e r s r u e n o e r r o o r a d s s c c k a c l a u - - h n r r a s r i y o t s e T i f i i t e o r n n h o s s r g g - l R o ta a e t n a e l s O l u v o i d t t a i a n o h i d l - n - e s - s r O lo th an er s Total Total U B . S ill . s G C o o d c n e v e f a e e r e d t b t i s e r i - n t s f D n s - i - m - ir e e N n c o t t te o s blig B a o t n io d n s s G t a u e n e a - d r- S p O s t d s a i i t i g o u i c o o a o b n v a l b a t n f n l i d - i e - l i t s - s - - s O s r e i t t h c ie e u s r - All commercial banks: 3 1947_Dec. 31.... 116,284 38,05718,1671,660 830 1,220 9,393 5,7231,063 78,226 69,2212,193 7,789 6,034 53,191 5,276 3,729 1955—Dec. 31.... 160,88182,601 33,,2 45 4J,475 3,2631J774 20,80917,185 3 117 78,"2"8 0 6611,,"5"92 4,2192,318 14,034 41,010 12,698 3,990 1956—Dec. 31.... 165,12390,302 38,720 4,1612,589 11,,669911 22,50918,850 3 58, ,924 1,997 11,823 38,796 12,9013,368 1957—June 6.... 91,028 39,020 4,077 222J7247 411,663344 22,53019,508 3 623 73,487 56,642 4,761 3..,6..6.5 10,070 38,137 13,"3 14" 3",531 Oct. II8... 167,'530 93,140 40J010 4^30 2,'45O 1^590 22^970" 2",0090 3 660 74,390 57,210 4,860 4,670 10,060 37,610 13,700 3,470 All insured commercial banks: 1941_Dec. 31.... 49,290 21,259 9,,214 1,450 614 662 4,773 4,545 28,03121,046 988 3,159 112,797 ,102 3,6513,333 1945—Dec. 31.... 121,8..0.9 25,765 9,461 1,314 3,164 3,606 4,677 2,361 1,181 96,04388,991122 2,455 19,07116,045 5"'i;,321 22 3,—873 "3,258 1947_Dec. 31.... 114,2"7"4' 37,58318,012 1,,_610 8"23 1,190 9,266 5,654 1,028 76,69167,9412,124 7,552 5,918 52,,334 14 5,129 3,621 1955—Dec. 31.... 159,164 82,08133,092 4,396 3,229 742 20,69217,104 3,091 77,08360,7"6'5" 4,105 2,229922 13,856 40,502 1012,465 3,853 1956—Dec. 31.... 163,60189,83138,5714,10122,,556655 ;669 22,39418,765 3,325 73,770 57,837 5,763 1,981 ,358 1312,675 3,258 1957—June 6.... 163,02590,57138,870 4,027 2,2511,61322,42719,421 3,599 72,454 55,9734,658 3,610 967 37,730 13,'095 3,386 Member banks, total: 1941_Dec. 31.... 43,521 18,021 8,671 972 594 598 3,494 3,692 25,500 19,539 971 3,00711,729 3,832 090 2,871 1945_Dec. 31....107,183 22,775 8,949 8553,133 3,378 3,455 1,900 1,104 84,408 78,338 2,27516,98514,27144,792 16 254 2,815 1947_Dec. 31.... 97,846 32,628 166,, 962 11,,004466 _8"_'1 _1',065 7,130 4,662 952 65,218 57,914 1,987 5,816 4,815 4"5,286 10 199 3,105 1955—Dec. 31....135,360 70,982 3311,00119 2,772266 3,150 ,56016,39114,313 2,943 64,377 50,697 3,2501,738 11,508 34,192 9 4443,236 1956—Dec. 31....138,768 78,034 36,296 2,478 2,447 ,47317,81115,765 3,147 60,734 47,575 4,383 1,469 9,49332,218 12 494 2,665 1957—June 6....137,808 78,, 448 36,,5 00 2,,445533 2,132 ,41617,76816,229 3,399 59,360 45,829 3,439 2,798 7,952 3"1',632 768 2,763 Oct. 11....140,338 8 8 0 0 , 3 3 0 0 8 8 3 37 7 , 5 5 0 0 4 4 2 2 4 ,4 1 1 1 12,272 ,37018,10316,682 3,432 60,030 46,241 3,377 3,517 8,055 31,285 086 2,703 New York City:4- 1941_Dec. 31.... 12,896 4,072 2,807 412 169 123 554 8,823 7,265 311 1,623 3,652 1,679 729 830 1945_Dec. 31.... 26,143 7,334 3,044 2,453 1,172 80 287 298 18,80917,574 477 3,433 3,32510,337 1 606 629 1947_Dec. 31.... 20,393 7,179 5,361 545 267 111 564 33013,21411,9721,002 640 558 9,771 638 604 1955—Dec. 31..., 23,58314,640 9,126 17 2,144 511 577 1,506 ,006 8,943 6,796 552 100 1,141 5,002 1,609 539 1956—Dec. 31..., 23,80915,98711,266 ' 1,409 402 617 1,558 ,049 7,822 6,057 724 194 976 4,160 1,406 358 1957_June 6.... 23,29315,89511,344 1,152 389 567 1,516 1,245 7,398 5,738 685 219 781 4,052 1,311 349 Oct. 11.... 23,27716,06711,717 1,115 361 591 1,5131,085 7,210 5,420 321 163 1,046 3,889 1,447 342 Chicago:4' 1941_Dec. 31.... 2,760 954 732 48 52 22 95 1,806 1,430 256 153 903 119 182 193 1945—Dec. 31.... 5,931 1,333 760 211 233 36 51 40 4,598 4,213 133 1,467 749 1,864 181 204 1947_Dec. 31.... 5,088 1,801 1,418 73 87 46 149 26 3,287 2,890 132 235 248 2,274 213 185 1955—Dec. 31.... 6,542 3,342 2,390 275 99 128 316 184 3,200 2,506 111 68 604 1,723 476 219 1956—Dec. 31.... 6,473 3,772 2,781 203 97 134 439 178 2,701 2,113 112 42 316 1,643 440 148 1957—June 6 6,266 3,789 2,859 172 96 135 430 184 2,477 1,884 75 74 223 1,513 460 133 Oct. 11.... 6,298 3,897 2,981 164 98 141 423 182 2,402 1,869 36 72 278 1,483 396 137 Reserve city banks, 1941_Dec. 31.... 15,347 7,105 3,456 300 114 194 1,527 1,512 8,243 6,467 295 751 4,248 1,173 956 820 1945_Dec. 31..., 40,108 8,514 3,661 205 427 1,503 1,459 855 404 31 i594 29,5521,034 6,982 5,65315,878 5 1,126 916 1947_Dec. 31.... 36,04013,449 7,088 225 170 484 3,147 1,969 366 22,59120,196 373 2,358 1,90115,560 3 1,342 1,053 1955—Dec. 31.... 52,459 2288,62213,212 566 542 696 6,962 5,9161,180 23,83718,826 813 657 4,70812,643 5 3,7781,233 1956—Dec. 31.... 53,91531,78315,170 489 501 712 7,654 6,5121,289 22,13217,3681,185 441 3,74211,995 4 3,820 944 1957—June 6.... 53,137 3"1',435 14,919 495 496 672 7,481 i 630 1,300 21,70216,797 758 1,179 3,03811,819 3 3,888 ,017 Oct. 11.... 54,198 32,36415,378 502 610 659 7,533 6,8011,447 21,83416,893 752 1,322 3,03911,778 2 3,980 961 Country banks: 1941—Dec. 31.... 12,518 5,890 1,676 659 20 183 1,823 1,530 6,628 4,377 110 481 2,926 861 1,2221,028 1945_Dec. 31.... 35,002 5,596 1,484 648 42 471 1,881 707 363 29,40726,999 630 5,102 4,54416,713 9 1,"3"4"2 1',067 1947_Dec. 31.... 36,32410,199 3,096 818 23 227 3,827 1,979 229 26,12522,857 480 2,583 2,10817,681 6 2,'006 1,262 1955—Dec. 31.... 52,77524,379 6,—290 2,127 189 255 8,723 6,575 573 28',397 22,5701,774 913 5,05614,825 3 4,5811,246 1 19 9 5 5 7 6 — — J D u e n c e . 3 6 1 . . . . . . . . 5 5 4 5 , , 5 1 7 1 1 2 2 2 2 6 77 , , 4 3 9 3 1 0 7 7, , ' 3 0 7 8 8 0 1 1 , , 9 97 4 2 9 3 3 1 3 2 4 2 26 5 1 9 9 9 , , 4 5 0 8 7 6 7 7, , 6 2 5 5 3 6 63128,080 22,0 — 3 7 2 1 , , 3 92 6 0 2 1, 7 3 9 2 2 6 4 3 , , 4 9 5 1 8 0 1 14 4 , , 2 4 4 2 8 0 4 4 4 5 , ,1 882 0 27 9 7 11 1 , , 2 2 1 6 5 5 Oct. 11.... 56,56527,980 7,4271,902 382 252 9,838 7,945 718 28,58522;058 2,268 1,960 3,69114,135 4 5,2631,263 Nonmember commercial banks:3 1947_Dec. 31.... 18,454 5,432 1,205 614 20 156 2,266 1,061 111 13,02111,318 206 1,973 1,219 7,916 1,078 625 1955—Dec. 31.... 25,54611,628 2,226 ,750 113 214 4,428 2,872 174 13,91810,908 970 580 2,527 6,829 2,255 755 1956—Dec. 31.... 26,38112,279 2,4241,683 143 218 4,708 3,085 196 14,10210,9891,541 528 2,330 6,588 2,409 704 1957_June 6.... 26,73312,591 2,519 1,625 143 219 4,773 3,278 224 14,14110,8251,323 867 2,119 6,515 2,548 769 • Estimated. banks is affected somewhat by changes in Federal Reserve membership, 1 All commercial banks in the United States. These figures exclude insurance status, and the reserve classifications of cities and individual data for banks in U. S. possessions except for one bank in Alaska and banks, and by mergers, etc. one in the Virgin Islands that became members on Apr. 15, 1954, and 2 Beginning June 30, 1948, figures for various loan items are shown May 31, 1957, respectively. During 1941 three mutual savings banks gross (i. e., before deduction of valuation reserves); they do not add to the became members of the Federal Reserve System; these banks are in- total and are not entirely comparable with prior figures. Total loans cluded in member banks but are not included in all insured commercial continue to be shown net. banks or all commercial banks. Comparability of figures for classes of For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS 319 RESERVES AND LIABILITIES OF COMMERCIAL BANKS, BY CLASSES 1 [In millions of dollars] Demand deposits Time deposits Cla c s a s l a l o n d f d a b t a e nk F B s s w e e R e a r d r i n e v t e v - h k e r e s a s l C va i a n u s l h t b m a a w B d n n e i a o c s t k - l e t h - s i s c * j p u m D a s o d a t d s e e e n i - - - d t d s 6 m D e I s o n d t - t e i e c p r 5 o b s a i F n e ts i k o g r n - G U o .S v . t.p v s S o i u a t l s i a b n i t o t i d d e c n i a s - s l c C c h o a f e e e i f t e n e r f r c c i d t s d . - k i ' - s, p a v n s a p i I t d h r i n d o o u t i d r p n n c a a i e s o s - l - r , s r - , - I b n a t n er k - p G U S i a o n o a n . s g S v v t d a s t - . . l v S p s i a u i t s o c a n i b l a o t i d d e l t n - s i s - p a v n s a p t i I h d i r d n o o t i u r d p n n c a a i o e s s - - l r , r s - - , r i B n o o g w r s - - c C o a t a u a c p n - l i t - s All commercial banks: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1955—Dec. 31.... 18,721 2,682 12,050109,905 13,512 1,546 3,709 10,273 3,904 109,011 1,585 356 2,340 46,019 15915,300 1956—Dec. 31.... 18,706 3,261 12,813111,405 14,338 1,794 3,733 10,449 3,785 111,048 1,460 330 2,384 48,193 7516,302 1957—June 6.... 18,500 2,737 9,761 105,713 11,247 1,618 3,318 10,603 2,852 101,177 1,556 331 2,712 50,8931,44616,837 Oct. 11«... 19,200 2,500 10,800106,370 11,910 1,820 3,980 9,760 2,570 104,340 1,470 330 2,730 52,5701,790 17,300 All insured commercial banks: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 [,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947_Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1955—Dec. 31.... 18,721 2,656 11,744108,887 13,390 1,516 3,697 10,138 3,879 108,131 1,367 356 2,282 45,756 14514,980 1956—Dec. 31.... 18,706 3,237 12,490110,487 14,226 1,755 3,717 10,350 3,744 110,252 1,301 330 2,329 47,949 5615,988 1957—June 6.... 18,500 2,717 9,515 104,904 11,127 1,581 3,310 10,500 2,829 100,483 1,388 331 2,652 50,6601,430 16,525 Member banks, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1955—Dec. 31.... 18,722 2,019 7,612 92,435 13,002 1,511 3,327 8,075 3,638 93,687 1,353 327 1,865 36,972 13712,783 1956—Dec. 31.... 18,707 2,487 8,124 93,320 13,818 [,749 3,292 8,211 3,475 95,163 1,289 301 1,839 38,769 48 13,655 1957—June 6.... 18,501 2,065 5,931 88,912 10,799 1,568 2,932 8,371 2,616 86,624 1,369 302 2,128 40,883 1,374 14,058 Oct. 11.... 19,203 1,889 6,586 89,101 11,450 1,760 3,575 7,634 2,366 89,136 1,277 292 2,128 42,253 1,759 14,467 New York City:* 1941—Dec. 31 5,105 93 141 10,761 3,595 607 866 319 450 11 282 6 29 778 1,648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 "195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1955—Dec. 31.... 4,431 127 111 16,493 3,364 1,151 756 302 1,498 18,919 1,085 59 72 2,171 1 2,745 1956—Dec. 31.... 4,375 161 99 15,974 3,622 1,400 747 286 1,172 18,482 965 36 44 2,395 2 2,873 1957_june 6.... 4,080 143 45 15,450 2,775 1,249 688 261 914 16,660 1,009 36 67 2,662 326 2,907 Oct. 11.... 4,361 116 39 14,892 2,777 1,444 878 266 862 16,341 931 32 75 2,656 683 3,063 Chicago:* 1941—Dec. 31 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 2&8 1945—Dec. 31 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31.... 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1955—Dec. 31.... 1,135 32 141 4,349 1,246 40 222 299 85 4,781 11 6 8 1,313 "**3 628 1956—Dec. 31.... 1,158 37 174 4,272 1,318 46 184 294 85 4,690 7 5 12 1,302 4 660 1957_jUne 6.... 1,089 28 95 4,087 1,133 35 97 459 80 4,152 16 4 10 1,298 101 665 Oct. 11.... 1,141 29 96 3,905 1,186 39 183 350 67 4,164 14 3 10 1,297 205 676 Reserve city banks: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1955—Dec. 31.... 7,727 638 2,515 33,757 6,903 303 1,288 3,048 1,035 35,752 239 106 941 15,117 82 4,641 1956—Dec. 31.... 7,649 787 2,656 34,046 7,298 286 1,201 3,092 1,036 36,519 294 114 935 15,748 21 5,076 1957—June 6.... 7,701 653 1,825 32,549 5,648 266 1,051 2,911 787 33,177 314 120 1,089 16,432 681 5,182 Oct. 11.... 7,997 580 1,862 32,473 6,113 259 1,297 2,570 668 34,381 311 119 1,086 16,988 743 5,285 Country banks: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947_Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1955—Dec. 31.... 5,429 1,222 4,844 37,836 1,488 17 1,061 4,425 1,020 34,235 18 157 844 18,371 52 4,769 1956—Dec. 31.... 5,526 1,502 5,194 39,028 1,580 16 1,160 4,538 1,183 35,473 22 146 847 19,324 21 5,046 1957_june 6.... 5,631 1,241 3,966 36,827 1,243 18 1,097 4,740 835 32,635 30 142 962 20,491 267 5,304 Oct. 11.... 5,704 1,164 4,589 37,830 ,374 17 1,217 4,448 769 34,249 21 138 956 21,312 129 5,443 Nonmember commercial banks: 3 1947_Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1955—Dec. 31 663 4,439 17,470 510 36 382 2,198 265 15,324 231 29 475 9,071 22 2,519 1956—Dec. 31 774 4,690 18,085 521 45 440 2,238 310 15,885 171 29 546 9,449 27 2,649 1957_june 6 672 3,831 16,801 448 50 385 2,232 236 14,553 187 30 584 10,035 72 2,781 3 Breakdowns of loan, investment, and deposit classifications are not Dec. 31, 1942, aggregated $513 million at all member banks and $525 available prior to 1947; summary figures for earlier dates appear in the million at all insured commercial banks. preceding table. * Demand deposits other than interbank and U. S. Govt., less cash items * Central reserve city banks. reported as in process of collection. 5 Beginning June 30, 1942, excludes reciprocal bank balances, which on For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 WEEKLY REPORTING MEMBER BANKS LOANS AND INVESTMENTS OF BANKS IN LEADING CITIES [Monthly data are averages of Wednesday figures. In millions of dollars] Loansl U. S. Government obligations For purchasing or carrying securities Loans Month or date i m T n lo a v o e n a e n t n d a s t s t l s - j i m u n a s a v e t n d e e n d - s d t t s - i j L us o a t d a e - n d s 1 C i m t n a c r o d n i i e a m a u d r l l - s - - A t c u u g r l r a - i l - G a T U n o o .S d v . b t d . r e o O a k l t e e h r r e s s rG U T o . o S v . t o . t O he th rs er e l R s o e t a a a n t l s e O l t o h an e s r Total Bills o d c C n t e f a e i e e f d t b i s i e r - n - t s - s - - Notes Bonds2 O s ri e t t c h ie u e s - r b L a o t n a o k n s s ob- obliga- cun- liga- cuntions ties tions ties Total— Leading Cities 1957 Feb 86,227 85,001 51,726 29,831 439 1,726 1,152 8,77010,824 25,7811,397 773 4,977 18,634 7,494 1,226 1958 Jan 88,318 86,867 52,96930,689 437 1,829 1,113 8,74911,284 25,954 ,472 1,761 4,711 18,010 7,944 1,451 88,680 87,152 52,527 29,975 442 2,096 1,147 8,73711,269 26,4781,416 1,583 4,785 18,694 8,147 1,528 Feb 1958 89,094 87,744 53,74831,212 439 2,022 1,108 8,75011,349 26,087 ,581 1,734 4,786 17,986 7,909 1,350 Jan. 8 88,391 87,018 53,21130,925 436 1,815 1,105 8,74711,316 25,945 ,485 1,714 4,711 18,035 7,862 1,373 Jan. 15 88,146 86,521 52,67330,419 438 1,833 1,116 8,75311,247 25,861 ,389 1,796 4,682 17,994 7,987 1,625 Jan. 22 87,644 86,187 52,24530,201 437 1,645 1,125 8,74411,226 25,923 ,431 1,799 4,665 18,028 8,019 1,457 Jan. 29 Feb. 5 88,770 87,066 52,726 29,993 447 2,230 1,124 8,73211,339 26,2901,458 2,051 4,720 18,061 8,050 1,704 Feb. 12 88,689 87,156 52,679 29,887 443 2,303 1,117 8,73811,330 26,3131,400 2,087 4,752 18,074 8,164 1,533 Feb. 19 88,460 87,027 52,42230,013 438 1,968 1,171 8,73711,235 26,4521,254 1,076 4,821 19,301 8,153 1,433 Feb. 26 88,804 87,361 52,28130,006 442 1,882 1,178 8,74211,170 26,8561,552 1,119 4,847 19,338 8,224 1,443 New York City 1957 Feb 22,882 22,212 14,95911,091 138 925 14 365 586 2,157 5,433 300 187 898 4,048 1,820 670 1958 Jan 23,142 22,424 14,90911,276 272 717 342 540 2,077 5,598 490 249 992 3,867 1,917 718 23,910 23,112 15,28211,192 484 828 344 544 2,198 5,782 460 265 977 4,080 2,048 798 Feb 1958 23,321 22,736 15,23911,450 410 732 336 2,081 5,630 523 235 1,073 3,799 1,867 585 Jan. 8 23,148 22,396 14,94811,366 243 708 342 537 2,070 5,593 517 215 970 3,891 1,855 752 Jan. 15 22,984 22,281 14,72911,131 217 741 344 539 2,071 5,586 456 273 968 3,889 1,966 703 Jan. 22 23,117 22,284 14,72111,160 216 686 347 537 2,088 5,584 464 274 955 3,891 1,979 833 Jan. 29 Feb. 5 24,038 23,143 15,33011,142 617 791 346 543 2,207 5,804 516 363 972 3,953 2,009 895 Feb. 12 23,843 23,171 15,35011,092 611 868 345 550 2,200 5,766 439 382 972 3,973 2,055 672 Feb. 19 23,882 23,061 15,27711,244 405 836 345 542 2,205 5,738 408 145 992 4,193 2,046 821 Feb. 26 23,877 23,073 15,17011,286 305 818 341 543 2,179 5,821 475 170 973 4,203 2,082 804 Outside New York City 1957 Feb 63,345 62,789 36,76718,740 438 663 773 8,184 8,66720,3481,097 586 4,079 14,586 5,674 556 1958 Jan 65,176 64,443 38,06019,413 436 840 736 8,209 9,207 20,356 982 1,512 3,719 14,143 6,027 733 64,770 64,040 37,24518,783 441 784 759 8,193 9,07120,696 956 1,318 3,8"" 14,614 6,099 730 Feb 1958 65,773 65,008 38,50919,762 438 880 737 8,205 9,268 20,4571,058 1,499 3,713 14,187 6,042 765 Jan. 8 65,243 64,622 38,26319,559 435 864 731 8,210 9,246 20,352 968 1,499 3,741 14,144 6,007 621 Jan. 15 65,162 64,240 37,944 1199,288 437 875 735 8,214 9,176 20,275 933 1,523 3,714 14,105 6,021 922 Jan. 22 64,527 63,903 37,52419,041 436 743 740 8,207 9,138 20,339 967 1,525 3,710 14,137 6,040 624 Jan. 29 Feb. 5 64,732 63,923 37,39618,851 446 822 742 8,189 9,132 20,486 942 1,688 3,748 14,108 6,041 809 Feb. 12 64,846 63,985 37,32918,795 442 824 736 8,188 9,130 20,547 961 1,705 3,780 14,101 6,109 861 Feb. 19 64,578 63,966 37,14518,769 437 727 773 8,195 9,030 20,714 846 931 3,829 15,108 6,107 612 Feb. 26 64,927 64,288 37,11118,720 441 759 786 8,199 8,99121,035 ,077 949 3,874 15,135 6,142 639 i Exclusive of loans to banks and after deduction of valuation reserves; 2 Includes guaranteed obligations. individual loan items are shown gross. See also NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS 321 RESERVES AND LIABILITIES OF BANKS IN LEADING CITIES [Monthly data are averages of Wednesday figures. In millions of dollars] D e e x m ce a p n t d i n d t e e p rb o a s n it k s, e T xc im ep e t d in e t p e o r s b i a ts n , k In d t e e p r o b s a i n ts k Borrowings Re- Bal- De- Indi- Demand Month or date s B F w e . a r i v n t R h e k . s s v C a i a n u s l h t b m a w a d n e n i o c t s k e - h t s i s c j m p u o d a s a t d s e e n i - - t d d s ! S p d s a i t o u c i a n v l a b t i d e i l t - - - s c C h c o f a e e e e i f n t e c f r r c d i t d s k . - i ' s - , G U o . v S t . . s p p u n c v h a o a a o e n i i r r d l p r r d a s t - - - s - , - , S p s d s a i i t o u c i o a n v l a b t n i d i e l t - - s - s G P U S i a n o o a n . g s S v v d t s - t . a . l m D ti e o c s - - F ei o g r n - Time F B F r . a o n R m k . s F ot r h o e m rs c C o i a t a u c a p n - l - ts tions Total- Leading Cities 1957 Feb 13,457 2,392 56,470 59,256 4,025 1,802 1,19720,333 961 18010,242 1,516 1,243 532 922 9,093 1958 Jan 13,658 1,036 2,488 56,394 58,954 4,115 2,080 1,028 21,990 1,198 13410,882 1,587 1,359 291 819 9,651 13,437 970 2,555 55,313 57,428 4,191 2,081 1,77322,275 1,372 13510,476 1,492 1,831 91 930 9,708 Feb 1958 13,758 1,077 2,420 56,356 58,647 4,119 2,049 1,364 21,907 1,183 13711,311 1,677 1,221 619 754 9,649 Jan. 8 13,635 1,028 2,633 56,532 60,399 4,064 2,077 844 21,961 1,192 13411,465 1,584 1,345 128 697 9,644 Jan. 15 13,782 1,011 2,417 56,556 58,845 4,099 2,381 855 22,029 1,201 13410,501 1,554 1,360 298 1,043 9,634 Jan. 22 13,458 1,031 2,480 56,134 57,924 4,176 1,816 1,048 22,062 1,216 13710,252 1,533 1,508 118 782 9,675 Jan. 29 Feb. 5 13,452 905 2,50555,880 57,554 4,312 2,512 1,417 22,157 1,304 13610,681 1,501 1,652 75 999 9,698 Feb. 12 13,264 1,013 2,50355,548 58,224 4,193 1,908 1,222 22,245 1,362 136 10,5261,485 1,823 143 1,053 9,701 Feb. 19 13,562 952 2,694 54;882 56,893 4,118 1,980 2,144 22,306 1,380 13410,493 1,479 1,916 68 862 9,705 13,469 1,012 2,51854,94357,040 4,141 1,925 2,308 22,390 1,443 13410,203 1,503 1,933 79 807 9,730 Feb. 26 New York City 1957 4,342 151 4815,76417,342 284 874 300 2,363 49 35 2,893 1,203 953 127 532 2,862 Feb 1958 4,377 149 52 15,45816,989 267 1,102 295 2,743 65 2,974 1,282 1,011 49 447 3,114 Jan 4,141 137 4615,34516,679 311 1,173 506 2,831 142 2,942 1,205 1,394 437 3,138 Feb 1958 4,496 164 5715,55516,940 269 1,012 418 2,727 62 3,003 1,359 904 170 430 3,110 4,222 144 5315,39317,246 263 1,055 268 2,710 63 3,108 1,278 996 360 3,111 Jan. 8 4,549 145 52 1155,46216,864 293 1,408 229 2,755 63 2,847 1,254 1,009 27 688 3,114 Jan. 15 4,241 145 4515,42516,905 246 934 265 2,780 74 2,938 1,238 1,133 308 3,122 Jan. 22 Jan. 29 4,090 137 15,55716,739 276 1,607 476 2,802 133 2,996 1,219 1,258 481 3,137 Feb. 5 4,168 142 15,43316,769 342 983 364 2,831 135 2,818 1,202 1,392 589 3,138 Feb. 12 4,017 129 15,12816,470 316 1,072 581 2,825 135 3,025 1,194 1,456 301 3,140 Feb. 19 4,288 141 15,26016,737 309 1,029 606 2,866 166 2,928 1,206 1,469 379 3,136 Feb. 26 Outside New York City 1957 Feb 9,115 837 2,344 40,706 41,914 3,741 928 89717,970 912 145 7,349 313 290 405 390 6,231 1958 Jan 9,281 887 2,436 40,936 41,965 3,848 978 73319,247 1,133 110 7,908 305 348 242 372 6,537 9,296 833 2,509 39,968 40,749 3,880 908 1,267 19,444 1,230 111 7,534 287 437 91 493 6,570 Feb 1958 9,262 913 2,363 40,80141,707 3,850 1,037 946 19,180 1,121 113 8,308 318 317 449 324 6,539 Jan. 8 9,413 884 580 4i; 139 43,153 3,801 1,022 57619,251 1,129 110 8,357 306 349 128 337 6,533 Jan. 15 9,233 866 365 41,094 41,981 3,806 973 62619,274 1,138 111 7,654 300 351 271 355 6,520 Jan. 22 9,217 886 435 40,709 41,019 3,930 882 78319,282 1,142 113 7,314 295 375 118 474 6,553 Jan. 29 Feb. 5 9,362 768 2,462 40,323 40,815 4,036 905 94119,355 1,171 112 7,685 282 394 75 518 6,561 Feb. 12 9,096 871 ",461 40,115 41,455 3,851 925 85819,414 1,227 112 7,708 283 431 143 464 6,563 Feb. 19 9,545 823 ,649 39,754 40,423 3,802 908 1,563 19,481 1,245 110 7,468 285 460 68 561 6,565 Feb. 26 9,181 871 ,466 39,683 40,303 3,832 896 1,702 19,524 1,277 7,275 297 464 79 428 6,594 1 Demand deposits other than interbank and U. S. Govt., less cash NOTE.—For description of revision beginning Mar. 4, 1953, see BULLEitems reported as in process of collection. TIN for April 1953, p. 357, and for figures on the revised basis beginning Jan. 2, 1952, see BULLETIN for May 1953, pp. 550-55. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 COMMERCIAL LOANS; OPEN MARKET PAPER CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS, BY INDUSTRY* [Net decline, (-). In millions of dollars] Manufacturing and mining Comm'l Period2 t l o F i b q a o n a u o c d o d c r , o , T a l p e e a x a p n t t a h i d r l e e e r s l, , M p m u a r c e e n o t t t s d a d a l 3 - l s ch r P l u e c e a e m o b u n t a b r m d i o l c e , , - a r l, Other ( T r w e s a r h t a n a a o l d d i e l l e e ) - m d C e o o a d l m e it r - y s f p i S c n a o a a n m l n i e e c s - s e u P p t ( t t r u i o i i a l n o b r i n c t n t l i a s l i ) e . c - - s s C t t i r o o u n n c - - bu o ty s A t o i p h n l f e e l e s r ss c c h l N f a a i n e s e d g s t i e - s c b h r w e a i a a e i n p n a n n n e d o l g k g k d l ' r e l s l t — y 4 - 1955—Jan.-June -540 220 111 313 153 146 -461 589 384 134 143 1,257 1,078 July-Dec 480 71 224 208 63 327 469 704 27 106 370 3,050 53,206 1956—Jan.-June -302 238 1,362 424 369 171 -386 -322 365 54 149 2,124 42,243 July-Dec 822 -6 -71 428 72 178 739 98 350 -66 176 2,719 2,459 1957—Jan.-June -456 148 935 291 214 -1 -539 366 513 -12 -54 1,404 1,249 July-Dec 331 -159 -496 150 -161 -8 420 -108 183 -49 58 161 -296 1957—Dec -19 -20 52 89 -65 -254 83 569 200 -21 135 750 708 1958 Jan -227 25 -44 -22 -28 -207 -10 -571 -81 -24 -130 -1,319 -1,600 Feb -126 76 111 4 45 -51 -125 -44 -89 43 -155 -195 Week ending: 1957—Dec. 4 20 -10 35 10 -4 -3 -13 37 -14 -16 34 77 43 Dec. 11 30 3 18 26 -7 -1 29 73 97 4 -16 256 249 Dec. 18 81 6 31 15 -19 -63 55 294 2 7 49 458 487 Dec. 25 -31 2 11 -20 -82 17 68 23 -9 10 -12 -19 Dec. 316 -118 -20 -42 37 -16 -105 -5 97 92 -7 58 -30 -52 1958—Jan. 8 -57 -24 -27 -1 -59 32 -239 -10 -13 -58 -456 -589 Jan. 15 -58 16 20 11 5 -45 -13 -97 -22 -57 -240 -287 Jan. 22 -67 -3 -28 -5 -7 -52 -88 -123 -35 -7 -26 -440 -506 Jan. 29 -45 13 -12 -1 -25 -52 59 -113 -13 -5 10 -183 -218 Feb. 5 -18 26 -25 10 -1 -14 -53 -69 -61 -8 21 -193 -208 Feb. 12 -30 13 10 -2 11 -13 -49 -48 -8 10 -2 -107 -106 Feb. 19 -36 22 90 9 17 -25 -16 68 3 8 139 126 Feb. 26 -42 16 36 -12 17 2 -8 5 -20 -3 16 6 7 1 Data for a sample of about 210 banks reporting changes in their 4 Prior to week ending Jan. 11, 1956, included changes in agricultural larger loans; these banks hold about 95 per cent of total commercial loans. and industrial loans of all weekly reporting member banks and about 5 Includes increase of $318 million resulting from errors disclosed 75 per cent of those of all commercial banks. incident to survey of credit extended to real estate mortgage lenders. 2 Figures for periods other than weekly are based on weekly changes. 6 Tuesday. 3 Includes machinery and transportation equipment. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING [In millions of dollars] Dollar acceptances Commercial and finance company paper Held by: Based on: End of year Accepting banks F. R. Goods stored in or or month Placed P di l r a e c c e t d - Total Banks p I o m rt - s p E o x rt - s Dollar ship p p o e i d n ts b e i t n w : een Total through ly Others into from exdealers * ( p f a in p a e n r c ) e 2 T ta o l - O bi w ll n s bo B u il g ls ht O ac w ct n . c F e o i o g r r n r - . U S n ta i t t e e s d U S n ta i t t e e s d change U S n ta i t t e e s d Foreign 1952 1,745 552 1,193 492 183 126 57 20 289 232 125 39 64 32 1953 1,966 564 1,402 574 172 117 55 24 378 274 154 29 75 43 1954 1,924 733 1,191 873 289 203 86 19 565 285 182 17 300 89 1955 2,020 510 1,510 642 175 126 49 28 33 405 252 210 17 63 100 1956 2,166 506 1,660 967 227 155 72 69 50 621 261 329 2 227 148 1957—Jan.. 2,575 548 2,027 1,012 230 156 74 30 62 689 291 363 2 197 158 Feb. 2,714 555 2,159 992 202 133 69 24 58 708 307 389 2 127 167 Mar, 2,650 489 2,161 1,019 209 150 59 23 58 728 305 425 2 116 171 Apr. 2,485 466 2,019 1,018 195 135 60 24 64 735 272 471 4 89 182 May 2,775 483 2,292 984 188 142 46 21 63 713 227 501 5 73 177 June 2,452 454 1,998 979 183 142 41 23 62 711 220 502 21 58 178 July. 2,781 459 2,322 1,000 154 112 42 19 70 757 231 507 35 59 169 Aug. 2,835 501 2,334 1,227 220 152 68 27 68 913 243 524 66 212 182 Sept. 2,558 501 2,057 1,197 214 149 65 16 66 901 234 483 75 225 181 Oct.. 2,654 516 2,138 1,225 197 131 66 16 69 942 248 465 94 226 192 Nov. 2.944 560 2,384 1,224 221 151 70 20 67 916 268 459 64 222 211 Dec. 2,666 551 2,115 1,307 287 194 94 66 76 878 278 456 46 296 232 1958—Jan.. 33,345 654 32,691 1,422 416 307 109 41 127 838 273 461 65 386 237 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. 3 Includes an additional finance company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES 323 MONEY MARKET RATES BANK RATES ON SHORT-TERM BUSINESS LOANS [Per cent per annum] [Per cent per annum] Fi- U. S. Government Size of loan (thous. of dol.) nance securities (taxable) 2 mo Y w n e e t a h e r , k , or 4 m p P - c a e r o t i p r o m m c e i - r e a 6 , l - p d p c p l i a o a r a p e m c n c e e y - t r d - a P a b c n e a r c i c r n e m s e k p ' s e - t , - 3-month bills 9 m -t o o n 1 th 2- 3- y t e o a r 5- Area and period lo A a l n l s 1 1 - 0 1 10 0 0 - 1 2 0 0 0 0 - o 2 a v n 0 e d 0 r months1 ly, 90 Mar- Rate issues3 issues4 3- to 6- days1 ket on new Annual averages, months * yield issues 19 large cities: 1955 3.7 5.0 4.4 4.0 3.5 1956 4.2 5.2 4.8 4.4 4.0 1955 average 2.18 1.97 1.71 1.73 1.753 1.89 2.50 1957 4.6 5.5 5.1 4.8 4.5 1956 average 3.31 3.06 2.64 2.62 2.658 2.83 3.12 1957 average 3.81 3.55 3.45 5.23 3.267 3.53 3.62 Quarterly:1 19 large cities: 1957—Feb 3.63 3.38 3.38 5.11 3.165 3.23 3.33 1957_Mar 4.38 5.38 4.94 4.59 4.21 Mar 3.63 3.38 3.27 5.08 3.140 3.35 3.38 June 4.40 5.37 4.94 4.61 4.23 Apr 3.63 3.38 3.20 5.06 3.113 3.41 3.48 Sept 4.83 5.67 5.29 5.01 4.69 May 3.63 3.38 3.25 5.06 3.042 3.37 3.60 Dec 4.85 5.66 5.29 5.01 4.71 June 3.79 3.48 3.36 5.29 3.316 3.55 3.77 New York City: July 3.88 3.63 3.38 5.16 3.165 3.71 3.89 1957—Mar 4.23 5.26 4.92 4.47 4.11 Aug 3.98 3.63 3.78 5.37 3.404 3.93 3.91 June 4.23 5.24 4.86 4.49 4.12 Sept 4.00 3.82 3.83 5.53 3.578 4.02 3.93 Sept 4.69 5.54 5.24 4.93 4.60 Oct 4.10 3.88 3.75 5.58 3.591 3.94 3.99 Dec 4.71 5.50 5.23 4.94 4.62 Nov 4.07 3.79 3.50 5.29 3.337 3.52 3.63 7 Northern & Eastern Dec 3.81 3.55 3.35 5.04 3.102 3.09 3.04 cities: 1957_Mar 4.40 5.41 4.91 4.61 4.26 1958—Jan 3.49 3.23 3.06 >.44 2.598 2.56 2.77 June 4.39 5.39 4.94 4.61 4.25 Feb 2.63 2.18 2.30 .54 1.562 1.93 2.67 Sept 4.85 5.69 5.31 5.01 4.73 Dec 4.86 5.67 5.33 5.02 4.74 Week ending 11 Southern & Western Feb. 1... 3.23 2.90 2.78 1.92 2.202 2.29 2.78 cities: Feb. 8... 2.83 2.43 2.43 .65 1.583 2.09 2.78 1957_Mar 4.60 5.42 4.96 4.64 4.35 Feb. 15. .. 2.63 2.19 2.38 .69 1.730 2.05 2.72 June 4.65 5.42 4.99 4.70 4.43 Feb. 22. .. 2.63 2.13 2.35 1.62 1.731 1.93 2.67 Sept 5.01 5.72 5.31 5.05 4.81 Mar. 1... 2.45 1.98 2.08 1.22 1.202 1.69 2.54 Dec. 5.05 5.73 5.31 5.04 4.87 1 Average of daily prevailing rates. 2 Except for new bill issues, yields are averages computed from daily closing bid prices. i Based on figures for first 15 days of month. 3 Consists of certificates of indebtedness and selected note and bond issues. NOTE.—For description see BULLETIN for March 1949, 4 Consists of selected note and bond issues. pp. 228-37. BOND AND STOCK YIELDS i [Per cent per annum] Corporate bonds 3 Stocks 5 State and local G U o . v S t . . govt. bonds3 By selected By Dividends/ Earnings/ Year, month, or week bonds ratings groups price ratio price ratio t ( e l r o m ng ) - 2 Total4 Total4 Aaa Baa Aaa Baa In tr d i u al s- R ro a a i d l- P u u ti b li l t i y c fe P r r r e e - d C m o o m n - C m o o m n - Number of issues 4-7 20 5 5 120 30 30 40 40 40 14 90 500 1955 average 2.84 2.57 2.18 3.14 3.25 3.06 3.53 3.19 3.34 3.22 4.01 4.08 7.81 1956 average 3.08 2.94 2.51 3.50 3.57 3.36 3.88 3.50 3.65 3.54 4.25 4.09 7.40 1957 average 3.47 3.56 3.10 4.20 4.21 3.89 4.71 4.12 4.32 4.18 4.63 4.35 7.84 1957 Feb 3.22 3.29 2.79 3.96 3.99 3.67 4.47 3.94 4.06 3.97 4.47 4.54 Mar 3.26 3.36 2.88 3.97 3.97 3.66 4.43 3.90 4.04 3.95 4.46 4.47 7.71 Apr 3.32 3.35 2.88 3.95 3.96 3.67 4.44 3.89 4.06 3.94 4.47 4.36 May 3.40 3.48 3.00 4.10 4.02 3.74 4.52 3.96 4.13 3.98 4.53 4.18 June 3.58 3.65 3.19 4.32 4.15 3.91 4.63 4.14 4.26 4.06 4.69 4.04 7.10 July 3 60 3 65 3 17 4.29 4 26 3.99 4.73 4 19 4 39 4.19 4 75 3 95 Aug 3.63 3.84 3.37 4.43 4.37 4.10 4.82 4.29 4.49 4.33 4.83 4.17 Sept 3.66 3.89 3.43 4.49 4.44 4.12 4.93 4.31 4.56 4.45 4.79 4.31 8.00 Oct 3.73 3.74 3.31 4.38 4.46 4.10 4.99 4.32 4.57 4.48 4.80 4.54 Nov 3.57 3.67 3.24 4.35 4.49 4.08 5.09 4.34 4.65 4.49 4.78 4.67 Dec 3.30 3.33 2.92 4.00 4.31 3.81 5.03 4.11 4.53 4.29 4.49 4.64 8.56 1958 Jan 3.24 3.17 2.75 3.81 4.06 3.60 4.83 3.91 4.30 3.99 4.36 4.48 Feb 3 26 3 15 2 72 3 79 4.01 3.59 4.66 3.86 4.29 3.87 4 38 4.47 Week ending: Feb 1 3.28 3.12 2.68 3.76 4.00 3.56 4.72 3.84 4.29 3.89 4.32 4.40 Feb 8 3 27 3 14 2 70 3 77 4 01 3 59 4.68 3 87 4 30 3 88 4 37 4 37 Feb. 15 3 25 3 13 2 70 3.77 4.01 3.59 4.66 3.86 4.29 3.87 4.38 4.51 Feb 22 3.25 3.15 2.73 3.78 4.00 3.58 4.64 3.85 4.28 3.86 4.38 4.49 Mar. 1 3.27 3.19 2.76 3.85 4.00 3.60 4.65 3.85 4.29 3.87 4.39 4.52 1 Monthly and weekly yields are averages of daily figures for U. S. Govt. 4 Includes bonds rated Aa and A, data for which are not shown sepaand corporate bonds. Yields of State and local govt. general obligations rately. Because of a limited number of suitable issues, the number of are based on Thursday figures; and of preferred stocks, on Wednesday corporate bonds in some groups has varied somewhat. figures. Figures for common stocks are as of the end of the period, 5 Standard and Poor's Corporation. Preferred stock ratio is based on except for annual averages. 8 median yields in a sample of noncallable issues—12 industrial and 2 2 Series is based on bonds maturing or callable in 10 years or more. public utility. For common stocks, the earnings/price ratio is now com- 3 Moody's Investors Service. State and local govt. bonds include gen- puted for the 500 stocks in the price index, but figures prior to June 1957 eral obligations only. are based on the 90 stocks formerly included in the daily price index. The dividend/price ratio has not yet been converted to the broader base. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 SECURITY MARKETS SECURITY PRICES i Bond prices Common stock prices Volume Standard and Poor's series Securities and Exchange Commission series of (index, 1941-43= 10) (index, 1939= 100) trad- Yea o r r , w m e o ek nth, t ( G U e lo r o . m n v S g t ) . . - 2 g n ( r i h M c a i i d g u p h e - a ) - l 3 g ( C r h r p a a i o o d g t r e - e h - ) - 3 Total d t I r u n ia s - - l R ro a a i d l- P u i l u t t i i y c b l- - Total Tot M al anu r D f a a b u c l - t e urin N r g a d o b u n l - e - T p t r o i a o r n n ta s' - P u i l u t t i i y c b l- - T n s a a r e i f n a c n r i- e v d d c - e e , , M in i g n- s s t h i h a n ( a o o n g i r n f - u d e » - s s ) Number of issues. 4-5 15 17 500 425 25 50 265 170 98 72 21 29 31 14 1955 average. 123.1 114.4 40.49 42.40 32.94 31.37 305 374 352 394 320 153 297 313 2,578 1956 average. 116.3 109.1 46.62 49.80 33.65 32.25 345 439 410 465 327 156 306 358 2,216 1957 average. 92.05 105.8 101.3 44.38 47.66 28.11 32.19 331 422 391 451 275 156 277 342 2,222 1957—Feb... 93.74 110.9 104.3 43.47 46.10 29.59 32.29 325 409 386 431 292 157 278 346 1,978 Mar.. 93.28 110.0 104.5 44.03 46.86 29.37 32.45 328 415 388 440 288 159 280 344 1,698 Apr.. 92.45 109.8 104.3 45.05 48.06 29.78 33.03 339 431 404 455 291 160 281 352 2,300 May. 91.33 106.9 103.2 46.78 50.10 30.42 34.03 352 450 419 480 297 163 286 380 2,389 June. 89.22 103.5 101.1 47.55 51.30 30.11 33.35 355 457 421 489 293 160 283 390 2,224 July.. 89.07 103.5 100.0 48.51 52.54 31.20 32.93 362 468 434 500 302 158 291 382 2,194 Aug.. 88.65 101.2 98.3 45.84 49.51 29.52 31.89 343 441 408 472 286 155 282 354 1,882 Sept.. 89.24 101.3 98.1 43.98 47.52 27.17 31.09 328 419 386 450 263 153 277 334 1,844 Oct... 91.87 102.9 98.2 41.24 44.43 24.78 30.39 306 388 357 417 241 149 266 297 2,782 Nov.. 94.25 103.4 98.3 40.35 43.41 22.63 30.68 302 382 350 411 228 149 262 284 2,538 Dec. 100.73 107.5 102.7 40.33 43.29 21.39 31.79 298 376 336 413 215 152 258 274 2,594 1958—Jan... 102.66 110.0 105.9 41.12 43.98 22.69 33.30 305 382 347 414 230 158 270 272 2,267 Feb... 102.47 109.2 105.7 41.26 44.01 23.00 34.12 304 378 346 408 231 160 278 267 2,010 Week ending: Feb. 1. 102.00 110.8 106.3 41.70 44.53 23.48 34.03 308 386 350 418 238 160 276 278 2,151 Feb. 8. 101.96 109.6 105.8 42.10 45.00 23.87 34.18 308 385 350 416 236 160 279 274 2,474 Feb. 15. 102.48 109.3 105.6 41.16 43.91 22.92 34.02 306 380 348 410 234 160 277 269 2,001 Feb. 22. 102.83 109.3 105.7 41.04 43.75 22.92 34.11 301 374 343 402 230 160 278 261 1,840 Mar. 1. 102.61 108.4 105.6 40.74 43.40 22.29 34.16 301 373 342 402 226 161 275 263 1,725 1 Monthly and weekly data for (1) U. S. Govt. bond prices, Standard 2 Average prices of bonds maturing or callable in 10 years or more; and Poor's common stock indexes, and volume of trading are averages averages for 1955 and 1956 not yet available. of daily figures; for (2) municipal and corporate bond prices are based 3 Prices derived from average yields, as computed by Standard and on Wednesday closing prices; and for (3) the Securities and Exchange Poor's Corporation, on basis of a 4 per cent, 20-year bond. Commission series on common stock prices are based on weekly closing 4 Average daily volume of trading in stocks on the New York Stock prices. Exchange for a 5Vi-hour trading day. STOCK MARKET CREDIT [In millions of dollars] Customer credit Broker and dealer credit1 Total- Net debit balances with Bank loans to others (than W En e d d n o e f s d m a o y n o th f o m r o l n a t s h t o s t e h c e u r r i t t h ie a s n New York f S ir t m o s c 1 k Exchange ch b a ro si k n e g r s a n a d n d c a d r e ry al i e n r g s ) s e fo c r u r p it u ie r- s2 Money borrowed Cus n to et mer U. S. Govt. free ob ( c c li o o g l l a . . 3 t 5 i o + ) ns U S ob e . c l S i u g . r a e G t d io o b n v y s t. S s e e c o c u u t r h r e i e d t r i e b s y U ob . l S ig . a G tio o n v s t. se O cu th ri e ti r es U ob . l S ig O . a n G tio o n v s t. se o cu O th r n i e t r ie: ba c l r a e n d c it es 1953—Dec. 2,445 31 1,665 780 1,074 713 1954—Dec. 3,436 41 2,388 65 1,048 69 1,529 1,019 1955—Dec. 4,030 34 2.791 32 1,239 51 2,246 894 1956—Dec. 3,984 33 2,823 41 1,161 46 2,132 880 1957—Feb., 3,846 35 2,729 31 1,117 53 2,004 828 Mar. 3,832 28 2,713 27 1,119 47 1,958 820 Apr. 3,938 28 2,792 28 1,146 53 2,051 807 May 3,924 39 2,794 26 1,130 52 2,063 817 June 4,031 31 2,887 25 1,144 52 2,104 820 July. 4,004 32 2,885 23 1,119 59 2,079 829 Aug. 3,929 30 2,833 24 1,096 58 2,035 816 Sept. 3,882 35 2,789 21 1,093 63 2,046 838 Oct.. 3,643 39 2,568 31 1,075 72 ,708 879 Nov. 3,577 42 2,517 33 1,060 56 ,641 876 Dec. 3,576 68 2,482 60 1,094 125 .706 896 1958—Jan.. 3,554 126 2,487 58 1,067 188 ,552 C937 Feb. 3,679 102 2_580 79 1,099 199 ,647 939 c Corrected. 2 Figures are for last Wednesday of month for weekly reporting membei 1 Ledger balances of member firms of the New York Stock Exchange banks, which account for about 70 per cent of all loans for this purpose. carrying margin accounts, as reported to the Exchange. Customers' debit Column 5 includes some loans for purchasing or carrying U. S. Govt. and free credit balances exclude balances maintained with the reporting securities (such loans are reported separately only by New York and firm by other member firms of national securities exchanges and balances Chicago banks). On June 30, 1956, reporting banks outside New York of the reporting firm and of general partners of the reporting firm. Bal- and Chicago held $51 million of such loans. On the same date insured ances are net for each customer—i. e., all accounts of one customer are commercial banks not reporting weekly held loans of $28 million for consolidated. Money borrowed includes borrowings from banks and purchasing and carrying U. S. Govt. securities and of $384 million for from other lenders except member firms of national securities exchanges. other securities. Noninsured banks had $33 million of such loans, Data are as of the end of the month, except money borrowed, which is as probably mostly for purchasing or carrying other securities. of the last Wednesday of the month beginning June 1955. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVINGS INSTITUTIONS 325 LIFE INSURANCE COMPANIES 1 [Institute of Life Insurance data. In millions of dollars] Government securities Business securities Date a T s o s t e a t l s Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign2 Total Bonds Stocks M ga o g r e t s - e R st e a a t l e P lo o a li n c s y Ot a h s e s r ets (U. S.) End of year:3 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 1950 64,020 16,118 13,459 1,152 1.507 25,351 23,248 2,103 16,102 1,445 2,413 2,591 1951 . . 68,278 13,760 11,009 1,170 ,581 28,111 25,890 2,221 19,314 1,631 2,590 2,872 1952 73,375 12,905 10,252 1,153 ,500 31,515 29,069 2,446 21,251 1,903 2,713 3,088 1953 78,533 12,537 9,829 1,298 1,410 34,438 31,865 2,573 23,322 2,020 2,914 3,302 1954 84 486 12 262 9 070 1 846 1,346 37,300 34 032 3,268 25 976 2,298 3,127 3,523 1955 90,432 11,829 8,576 2,038 1,215 39,545 35,912 3,633 29,445 2,581 3,290 3,743 1956 96,011 11,067 7,555 2,273 21Q 41,543 38,040 3,503 32,989 2,817 3,519 4,076 End of month:4 1953—Dec 78,201 12,452 9,767 1,278 1,407 34,265 31,926 2,339 23,275 1,994 2,894 3,321 1954—Dec 84,068 12,199 9,021 1,833 1,345 36,695 33,985 2,710 25,928 2,275 3,087 3,884 1955 Dec 90,267 11,757 8,545 1,998 1,214 38,851 35,930 2,921 29,425 2,557 3,294 4,383 1956—Dec 95,844 10,989 7,519 2,234 1,236 40,976 38,067 2,909 32,994 2,829 3,505 4,551 1957—Jan 96,316 11,068 7 588 2 244 1,236 41,177 38 256 2,921 33,279 2,841 3 523 4,428 Feb 96,738 11,038 7,544 2,244 1,250 41,365 38,432 2,933 33,479 2,865 3,547 4,444 Mar. . . 97,074 10,926 7,427 2,251 1,248 41,579 38,638 2,941 33,672 2,883 3,575 4,439 Apr 97,488 10,946 7,430 2,264 1,252 41,772 38,821 2,951 33,840 2,907 3,606 4,417 May 97,868 10,895 7,340 2,290 1.265 41,962 39,004 2,958 34,022 2,948 3,633 4,408 June 98,239 10,824 7,270 2,290 1,264 42,146 39,190 2,956 34,159 2,983 3,657 4,470 July 99,005 10,906 7,306 2,323 1,277 42,567 39 574 2,993 34,356 3,004 3,703 4,469 Aus 99,374 10,880 7,268 2,333 1,279 42,742 39,724 3,018 34,547 3,032 3,731 4,442 Sept 99,812 10,833 7,224 2,340 1,269 42,932 39,922 3,010 34,697 3,059 3,764 4,527 Oct 100,224 10,856 7,233 2,352 1,271 43,170 40,149 3,021 34,859 3,085 3,802 4,452 Nov 100,597 10,782 7,135 2,362 1,285 43,368 40,340 3,028 34,986 3,113 3,833 4 515 Dec 101,043 10,600 6,950 2,375 1,275 43,644 40,637 3,007 35,230 3,134 3,863 4,572 1958—Jan 101,672 10,819 7,113 2,418 1,288 43,859 40,862 2,997 35,410 3,156 3,896 4,532 1 Figures are for all life insurance companies in the United States. 3 These represent annual statement asset values, with bonds carried on 2 Represents issues of foreign governments and their subdivisions an amortized basis and stocks at end-of-year market value. and bonds of the International Bank for Reconstruction and Develop- 4 These represent book value of ledger assets. Adjustments for interest ment. due and accrued and for differences between market and book values are not made on each item separately, but are included, in total, in "Other assets." SAVINGS AND LOAN ASSOCIATIONS i [Federal Savings and Loan Insurance Corporation data. In millions of dollars] Assets Liabilities End of year or month U. S. Borrowings Reserves Total2 g M ag o e r s t- 3 o G b o li v g t a . - Cash Other4 S c a a v p i i n ta g l s und a i n v d ided tions FHLB Other profits advances 1941 6,049 4,578 107 344 775 4,878 218 38 475 1945 8,747 5,376 2,420 450 356 7,386 190 146 644 1950 16,893 13,657 1,487 924 733 13,992 810 90 1,280 1951 19,222 15,564 1,603 1,066 899 16,107 801 93 1,453 1952 22,660 18,396 1,787 1,289 1,108 19,195 860 84 1,658 1953 26,733 21,962 1,920 1,479 1,297 22,846 947 80 1,901 1954 31,736 26,194 2,021 1,980 1,471 27,334 864 96 2,191 1955 37,719 31,461 2,342 2,067 1,791 32,192 1,412 146 2,557 1956 42,875 35,729 2,782 2,119 2,199 37,148 1,225 122 2,950 1957 48,275 40,119 3,169 2,144 2,809 42,038 1,263 118 3,377 1957—Jan.. 43,020 35,929 2,924 1,947 2,175 37,484 1,035 97 Feb.. 43,419 36,195 3,041 1,907 2,232 37,799 973 89 Mar. 43,934 36,559 3,132 1,884 2,316 38,158 958 83 Apr.. 44,431 36,963 3,162 1,836 2,428 38,471 968 87 May. 45,085 37,421 3,180 1,874 2,569 38,939 990 84 June. 45,736 37,886 3,139 2,061 2,610 39,798 1,077 103 3,136 July. 45,750 38,280 3,180 1,741 2,510 39,730 1,037 109 Aug. 46,188 38,743 3,203 1,635 2,569 39,982 1,070 115 Sept. 46,639 39,106 3,229 1,643 2,624 40,306 1,117 115 Oct.. 47,127 39,532 3,219 1,622 2,718 40,673 1,129 121 Nov. 47,600 39,835 3,238 1,705 2,787 41,072 1,141 117 Dec. 48,275 40,119 3,169 2,144 2,809 42,038 1,263 118 3,377 1958—Jan.. 48,423 HO, 369 3,215 2,023 2,816 42,491 904 100 1 Figures are for all savings and loan associations in the United States. 3 Beginning January 1958, no deduction is made for mortgage pledged Data beginning 1950 are based on monthly reports of insured associa- shares. These have declined consistently in recent years and amounted tions and annual reports of noninsured associations. Data prior to to $34 million at the end of 1957. 1950 are based entirely on annual reports. 4 Includes other loans, stock in the Federal home loan banks and other 2 Includes gross mortgages with no deduction for mortgage pledged investments, real estate owned and sold on contract, and office buildings shares. and fixtures. NOTE.—Data for 1957 and 1958 are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL BUSINESS-TYPE ACTIVITIES SELECTED ASSETS AND LIABILITIES OF FEDERAL BUSINESS-TYPE ACTIVITIES [Based on compilation by Treasury Department. In millions of dollars] End of year End of quarter Asset or liability, and activity1 1956 1957 1950 19512 19522 19532 1954 1955 2* 3 4* 1 2* Loans, by purpose and agency: 3,884 4,161 5,070 6,811 6,929 6,715 ^6,756 7,160 6,752 7,257 6,827 Banks for cooperatives 345 425 424 377 367 375 349 395 457 423 384 Federal intermediate credit banks 510 633 673 590 638 689 898 874 734 4845 997 Farmers Home Administration 535 539 596 648 701 681 3777 769 724 823 866 Rural Electrification Administration 1,543 1,742 1,920 2,096 2,226 2,348 2,413 2,450 2,488 2,544 2,586 Commodity Credit Corporation 898 782 1,426 3,076 2,981 2,621 2,319 2,671 2,349 2,626 1,994 Other agencies 52 40 31 23 18 1 (5) (5) (5) (5) 7,525 2,142 2,603 2,930 2,907 3,205 3,299 3,391 3,680 4,076 4,381 Federal National Mortgage Association.......... 1,347 1,850 2,242 2,462 2,461 2,641 2,729 2,806 3,072 3,433 3,629 Veterans Administration / 300 383 480 433 446 464 488 521 Other agencies > 181 292 362 \ 168 63 84 137 138 145 155 123 To T i r n e d a u su st r r y y , D to e t p a a l rtment } 568 589 598 5 1 8 7 8 4 4 3 3 5 1 3 6 3 7 0 8 6 6 3 2 2 7 3 6 21 2 6 4 6 2 1 0 9 9 6 2 2 0 9 9 6 21 4 1 0 C O o th m e m r a e g rc e e n c D ie e s partment 1 \ 568 589 598 1\ 41Al3l 79 ( / 2 1 6 1 1 2 22 8 1 3 2 1 1 9 6 2 2 1 1 9 9 1 2 1 2 9 8 2 2 2 1 1 9 0 824 814 864 952 870 1,419 7,775 1,147 1,233 966 1,084 To aid States, territories, etc., total 468 744 1,020 645 272 245 227 244 246 272 243 Public Housing Administration 351 589 894 500 112 90 90 109 106 120 94 Other agencies ... 117 155 126 145 160 155 137 135 140 153 149 6,078 6,110 7,736 8,043 8,001 7,988 5,772 8,229 8,223 8,237 8,300 Export-Import Bank 2,226 2,296 2,496 2,833 2,806 2,702 2,712 2,692 2,701 2,678 2,667 Treasury Department6 3,750 3,750 3,667 3,620 3,570 3,519 3,519 3,519 3,470 3,470 3,470 International Cooperation Administration 71,515 1,537 1,624 1,767 1,885 1,958 1,995 2,035 2,084 Other agencies 102 64 58 53 1 55 60 57 54 52 All other purposes, total 63 35 75 119 166 256 775 795 275 240 555 5 29 127 209 122 136 156 184 275 Other agencies 63 69 90 39 47 55 56 57 56 60 -185 -173 -140 -203 -228 -268 3-592 -656 -309 -327 -695 Total loans receivable (net) 13,228 14,422 17,826 19,883 19,348 20,238 19,844 20,331 20,657 21,353 20,980 Investments: U. S. Government securities, total 2,075 2,226 2,421 2 602 2,967 3,236 5,779 3,720 3,739 3,923 3,881 Federal home loan banks 199 249 311 387 641 745 1,083 1,054 1,018 1,095 1,017 Federal Savings and Loan Insurance Corp ....... 193 200 208 217 228 241 256 248 256 265 274 Federal Housing Administration 244 285 316 319 327 381 405 422 458 479 482 Federal Deposit Insurance Corporation 1,307 1,353 1,437 1,526 1,624 1,720 1,810 1,812 1,825 1,898 1,914 Other agencies 132 140 148 152 147 149 166 183 181 186 194 Investment in international institutions 3,385 3,385 3,385 3,385 3,385 3,385 3,385 3,385 3,385 5,555 5,555 Other securities* 266 257 223 219 197 179 253 283 284 344 340 1,774 1,461 1,280 2,515 3,852 4,356 20,231 20,949 21,375 21,303 21,450 Commodity Credit Corporation 1,638 1,174 978 2,087 3,302 3,747 3,897 3,323 3,651 3,362 3,153 9,814 10,994 11,004 11,094 11,105 O G t e h n e e r r a a l g e S n e c rv ie ic s es Administration... } 136 288 303 428 550 609 6,3 1 3 8 2 8 6,4 2 1 1 8 5 6,5 2 1 0 7 1 6,6 1 5 9 4 3 7,0 1 2 7 2 1 Land, structures, and equipment, total 2,945 3,358 3,213 8,062 8,046 7,822 9,682 10,028 9,985 9,875 9,979 Commerce Dept. (primarily maritime activities) 4,834 4,798 4,822 4,612 4,548 4,502 4,470 4,506 Panama Canal Company^ , 18 298 415 363 421 421 400 398 398 396 401 Tennessee Valley Authority 886 1,048 1,251 1,475 1,739 1,829 1,723 1,712 1,762 1,751 1,803 Housing and Home Finance Agency 1,296 1,284 1,202 1,040 728 450 311 285 236 144 114 278 276 277 281 309 306 311 317 327 1,199 1,302 1,298 1,226 1 332 Post Office Department 590 590 590 590 599 Other agencies 745 728 345 350 360 300 538 608 613 704 616 Bonds, notes, & debentures payable (not guar.), total... 1,190 1,369 1,330 1,182 1,068 2,379 2,607 2,742 2,711 2,975 3,497 Banks for cooperatives 110 170 181 150 156 185 152 188 257 231 190 Federal intermediate credit banks 520 674 704 619 640 665 857 865 721 803 953 Federal home loan banks 560 525 445 414 272 958 928 918 963 720 733 570 670 770 770 1,220 1,620 NOTE.—Statistics beginning Mar. 31, 1956, reflect the expanded cover- 2 Coverage changed from preceding period (see also NOTE). age and the new classification of agencies now reported in the Treasury 3 Adjusted figures; for amounts reported for this date but excluded Bulletin. The revised statement includes a larger number of agencies, and from this figure, see BULLETIN for May 1957, p. 550, note 3. their activities are classified according to the type of fund they represent. 4 Effective Jan. 1, 1957, the production credit corporations were merged Funds are combined in the table above, but are shown separately in the in the Federal intermediate credit banks, pursuant to the Farm Credit table on the following page. Classifications by supervisory authorities Act of 1956, approved July 26, 1956 (70 Stat. 659). Thereafter operations are those in existence currently. Where current Treasury compilations of the banks are classified as trust revolving transactions. do not provide a detailed breakdown of loans, these items have been 5 Less than $500,000. classified by Federal Reserve on basis of information about the type of 6 Figures represent largely the Treasury loan to the United Kingdom, lending activity involved. and through 1952 are based in part on information not shown in Treasury Data for agencies classified by type of fund and activity include all compilation. 7 Figure derived by Federal Reserve. those reporting on a fiscal year basis. 8 Includes investment of the Agricultural marketing revolving fund in * Totals adjusted to reflect exclusion of agencies reporting other than the banks for cooperatives; Treasury compilations prior to 1956 classified quarterly. this item as an interagency asset. i Figures for trust revolving funds include interagency items. For all 9 Figures prior to 1951 are for the Panama Railroad Company. The types of funds combined, loans by purpose and agency are shown on a Panama Canal Company, established in 1951, combined the Panama gross basis; total loans and all other assets, on a net basis, i. e., after Railroad Company with the business activities of the Panama Canal reserve for losses. (not reported prior to that time). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL BUSINESS-TYPE ACTIVITIES 327 PRINCIPAL ASSETS AND LIABILITIES OF FEDERAL BUSINESS-TYPE ACTIVITIES [Based on compilation by Treasury Department. In millions of dollars] Assets, other than interagency items1 Liabilities, other than interagency items i Date, and fund or activity Loans In- I m nv e e n s t t s - L st a ru n c d - , B tu a o r n n e d s d s d p , e a n b y o e a t n b e - l s e , Other G i U n o . t e v S r t - . . o v in P w a t t r n e e i r - l e y - d Total Cash c a e b i l v e - t v o e ri n e - s P s d e u e c b b u l t i - c O s ri e t t c h ie u e s - r e m a q n e u d n ip t - Other G an b u t y e a e r- d Other li i a ti b e i s l- est rities U.S. All activities 1951—Dec. 312 26,744 93114,422 1,461 2 226 3463 3,358 882 43 1369 1,161 23,842 329 1952—Dec. 312 29,945 94417,826 1,780 ? 4?1 34?9 3 213 83? 53 1 330 1 72826 456 378 1953—Dec. 312 38,937 1,190 19,883 2,514 2 602 3425 8,062 ,261 75 1 182 3,818 33,429 434 1954—Dec. 31 41,403 1 37119,348 3 859 ? 967 343? 8 046 9 387 33 1068 4 18335 610 508 1955—Dec. 31 45,304 1,338 20,238 4 3 ?36 414 7 822 4 900 44 ? 379 2 70339,583 596 1956—June 30* 66,797 4,457 19,84490,731 3 719 3 638 9 682 5 996 49 9 607 3 23860,224 677 Sept. 30 69,143 5,144 20,33120,949 3 720 3 66810,028 5,303 58 2 742 3,14562,507 693 Dec 31* 69,653 4 99620,657?1,375 3739 3 669 9 985 5 232 67 9 711 3 65962 516 699 1957—Mar. 31 69,895 4,44121,353?1.303 3 993 3 7?9 9 875 5 68 ? 975 3 71362,364 775 June 30* 69,059 3,98120,98021,450 3 881 3 725 9,979 5,063 57 3 497 3,32561,144 1,037 Classification by type of fund and activity, June 30, 1957 Public Enterprise Funds—Total 18,762 1,217 8,150 3,921 790 149 3,326 1,209 57 570 1,494 16,641 Farm Credit Administration: 4 Federal Farm Mortgage Corporation 11 1 10 (5) (5) 10 Agricultural Marketing Act, revolving fund 186 39 147 186 Agriculture Department: Commodity Credit Corporation 5,399 61 1,532 3,153 165 489 917 4,482 Disaster loans, etc. revolving fund 129 32 92 5 1 128 All other 41 25 11 5 6 35 Housing and Home Finance Agency: 153 33 93 20 8 33 120 Federal Housing Administration 784 25 482 (5) 276 56 139 590 Federal National Mortgage Association 2,396 1 2,381 14 750 39 1,787 Office of the Administrator 689 119 451 27 6 683 Federal Saving and Loan Insurance Corporation 284 1 274 10 14 270 Small Business Administration 215 64 149 (5) 2 C5) 214 E Te x n p n o e r s t- s I e m e p V o a r l t l e B y a A nk u thor . ity 2 2 ,7 0 3 2 7 6 1 4 0 4 2 2,667 (5)4? (5) 2 7 5 8 2 3 8 3 2 1 , 7 9 0 9 9 3 Panama Canal Company 460 30 8 '401 21 14 446 Veterans Administration 824 261 522 4 34 2 1 11 813 General Services Administration 913 44 686 103 80 14 899 Treasury Department 295 29 232 1 (5) 7 27 1 295 Post Office Department—postal fund 862 217 13 599 32 212 649 Interior Department 219 46 9 9 130 25 7 211 All other 139 45 13 6 75 (=> 19 120 ( Intragovernmental Funds—Total 13,142 1,572 11 (5) 218 128 72312,419 Defense Department: Army 8 442 708 7 575 106 52 287 8 155 Navy . .. 3,530 588 2,891 51 287 3'244 Air Force 863 204 638 21 774 All other 306 71 P0 112 4 61 245 Certain Other Activities—Total 53,536 6,712 9,287 8.T?1 7 649 18,266 7 295 1,895 51,641 General Services Administration 8,236 492 82 6,293 1,220 147 29 8,207 Agriculture Department: Farmers Home Administration 719 70 627 (5) (5) 23 7 712 Rural Electrification Administration 2,711 3 2,579 129 1 2,709 Other 1,418 448 6 879 86 21 1,397 Atomic Energy Commission 8 622 1 324 1 749 5 130 419 206 8 417 Federal Civil Defense Administration 233 55 174 2 233 Veterans Administration 1 902 355 107 2 1 340 98 137 1 765 Civil Aeronautics Administration '609 141 26 196 246 1 608 Health Education and Welfare Department 1,055 790 2 1 260 3 157 898 Interior Department 3,752 287 4 8 2 891 56-> 376 3,375 International Cooperation Administration 4,028 1,885 2,111 1 17 14 3 4,025 Treasury Department 13,375 278 3,506 44 3,563 765105,219 77412,601 Commerce Department—maritime activities... 5,057 259 270 3 ( 4,473 51 132 4,925 All other 1,820 324 1 15 85 1 093 296 51 1,769 Certain Deposit Funds—Total 4,552 71 1,461 (5) 2,976 13 (? 31 923 846 2,024 758 Banks for cooperatives .. ... 455 21 381 44 9 190 3 228 34 Federal Deposit Insurance Corporation 1,930 3 1,914 12 134 1,796 Federal home loan banks 2,166 47 1,079 1,017 13 10 733 709 724 Certain Trust Revolving Funds—Total 2,637 205 2,221 108 103 2,004 63 292 H278 Federal National Mortgage Association 1,255 52 1,197 6 1050 29 149 H26 Federal intermediate credit banks 1 125 12 997 100 18 953 21 143 A Of ll f ic o e t h o e f r Alien Property ... 20 5 4 3 13 9 3 27 8 (5) 70 9 1 1 2 H 1 2 1 0 4 2 2 (5) 1° Includes $1,000 million due under the agreement with Germany 11 Figure represents total trust interest. signed Feb. 27, 1953, and lend-lease and surplus property balances due For other notes, see opposite page. the United States in the principal amount of $2,048 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL FINANCE SUMMARY OF FEDERAL FISCAL OPERATIONS [On basis of U. S. Treasury statements and Treasury Bulletin. In millions of dollars] Derivation of Federal Government cash transactions Receipts from the public, Payments to the public, Net Federal cash borrowing or other than debt other than debt repayt. ( —) of borrowing Excess of rects. Period B r u N ec d e t g t s e . t T r P f e u r l c u u n t s d s s : t . t I G L r n a e o t n s r v s s a t . : - * . E p T r f u q e r t o b u o h c l t a m t e i a s l c l s . 2 : B p t u e u e n d x re d g - s i e - t p T P t f e u u e r l n x u r u n e d - s d s s i : t - A m L d e e j n s u s t s s : t 3 - E p p t T q o u a o u y b a t t t h l a l s i s e l c . : t p o p fr u a t o o h y b ( m r e t l - s i , ) c . , & ( c ( o c - d r d r r I e ) a e i e n , r a g a d b e - s s e e c t i e e n n - t , .) t a i r n G g . N v e o f . n e u v . t b n t & L . y d e s ss: O d n c e t o a h b s n t e h - 4 r b E r i o e n q c N ( r p a g u ) r a e s a o h y t o l w s t r . : - Cal. year—1955 63,358 10,624 2,511 71,448 66,129 9,331 3,282 72,178 -729 3,484 2,476 566 448 1956 70,994 12,398 3,027 80,330 67,216 10,342 2,751 74,805 5,525 -3,561 2,481 -136 -5,910 1957 72,285 15,367 3,080 84,520 71,692 14,792 3,158 83,327 1,194 467 1,572 63 -1,168 Fiscal year—1954 64,655 9,155 2,110 71,627 67,772 7,204 3,117 71,860 -232 5,186 2,055 618 2,512 1955 60,390 9,536 2,061 67,836 64,570 8,546 2,578 70,538 -2,702 3,986 1,533 644 1,809 1956 68,165 11,685 2,739 77,088 66,540 9,436 3,358 72,617 4,471 -578 3,166 623 -4,366 1957 71,029 14,369 3,243 82,106 69,433 12,961 2,387 80,007 2,099 -1,053 2,339 -292 -3,100 Semiannually: 1955—July-Dec 25,240 5,456 1,289 29,397 33,125 4,396 1,096 36,426 -7,028 7,019 1,331 369 5,323 1956—Jan.-June 42,925 6,229 1,450 47,691 33,415 5,040 2,262 36,191 11,499 -7,597 1,835 254 -9,689 July-Dec 28,069 6,169 1,573 32,643 33,801 5,302 485 38,618 -5,974 4,036 646 -390 3,779 1957—Jan.-June 42,960 8,200 1,670 49,463 35,632 7,659 1,902 41,389 8,073 -5,089 1,693 98 -6,879 July-Dec 29,325 7,167 1,410 35,057 36,060 7,133 1,254 41,938 -6,881 5,556 -120 -35 5,711 Monthly: 1957—Jan 4,809 650 106 5,349 6,095 1,112 1,111 6,096 -747 -195 -126 367 -435 Feb 6,188 1,458 80 7,564 5,743 1,095 -250 7,088 476 142 209 -103 37 Mar 10,737 1,068 96 11,704 5,584 1,342 296 6,630 5,073 -1,160 108 -126 -1,142 Apr 4,256 1,083 90 5,244 5,987 1,491 258 7,220 -1,976 -813 -469 -174 -170 May 5,282 2,121 117 7,280 5,944 1,344 367 6,923 358 1,432 1,241 257 -67 June 11,688 1,820 ,182 12,322 6,279 1,275 122 7,431 4,891 -4,496 728 -123 -5,100 July 3,057 858 113 3,801 6,347 1,220 408 7,160 -3,359 1,992 -382 2,373 Aug 5,128 1,778 115 6,786 5,930 1,075 -180 7,185 -399 1,462 646 40 776 Sept 7,225 972 126 8,066 5,667 1,086 -2 6,754 1,311 634 -310 -69 1,014 Oct 3,131 938 167 3,896 6,501 1,387 386 7,501 -3,605 476 9 -32 500 Nov 4,827 1,438 186 6,075 5,806 964 550 6,219 -144 655 4 -13 665 Dec 5,956 1,184 703 6,433 5,809 1,402 92 7,119 -686 337 -87 40 383 1958—Jan.^ 4,786 820 234 5,366 6,011 1,651 1,293 6,369 -1,003 -137 -119 18 -36 Effects of operations on Treasurer's account Cash balances: Account of Treasurer of United Operating transactions Financing transactions inc., or dec. (—) States (end of period) s B d u u N e r o p f d e i r l g c t u i e t s t , a l c d T a f c e u t r o u f i n u i o r m c d s n i t u t , - t c o R i l c e T i a a c r s t o e i h o n a n - s. in i & s a n G e v g N c . e o t . F e r n v u t e c b ( t d s . y y - t . ) I d n ( p e d g - c u c i ) r r o r r b , o e e e r l a s c a i i s s c n t s e e , T o r H u e t a e s s l i u d d r e y a T u cc r r e e o a r u ' s s n - t Balance B ( F a a D a . v b n e a l R k p e il . s o - sits T T a L i r x u n o e r — a a y a n s n - d O as n t s e h e t e ts r tions5 funds 5 debt funds) Accts. Fiscal year—1954 -3,117 1,951 -46 -14 -1,609 5,189 257 2,096 6,766 875 4,836 ,055 1955 -4,180 991 -29 602 -1,362 3,115 -312 -551 6,216 380 4,365 ,471 1956 1,626 2,250 309 173 -2,617 -1,623 -213 331 6,546 522 4,633 ,391 1957 1,596 1,409 -518 1,085 -2,300 -2,224 5 -956 5,590 498 4,082 ,010 Semiannually: 1955—July-Dec -7,885 ,060 92 -139 -1,217 6,394 -24 -1,671 4,545 397 3,036 1956—Jan.-June 9,511 ,190 217 312 -1,400 -8,017 -189 2,002 6,546 522 4,633 ,391 July-Dec -5,732 866 -482 -5 -697 3,877 -55 -2,119 4,427 441 2,924 ,062 1957—Jan.-June 7,328 543 -36 1,090 -1,603 -6,101 60 1,163 5,590 498 4,082 ,010 July-Dec -6,735 34 159 1,007 21 4,371 -160 -984 4,606 481 3,084 ,041 Monthly: 1957_jan -1,286 -462 390 205 374 -399 -17 -1,162 3,265 715 1,161 1,389 Feb 446 363 -200 35 -169 40 -69 584 3,849 458 2,027 1,364 Mar 5,153 -274 275 298 -245 -1,271 112 3,824 7,673 591 5,912 1,170 Apr -1,731 -408 333 253 402 -991 -2,142 5,532 509 3,516 1,507 May -662 777 59 153 -1,255 1,226 -11 308 5,840 568 4,318 954 June 5,409 547 -894 147 -708 -4,707 44 -250 5,590 498 4,082 1,010 July -3,290 -362 384 19 324 1,942 131 -1,115 4,475 504 2,833 1,138 Aug -802 703 -288 87 -694 1,376 -40 423 4,898 477 3,331 1,090 Sept 1,559 -115 43 -6 282 567 -106 2,436 7,335 429 5,818 1,088 Oct -3,370 -449 282 745 36 -345 -72 -3,028 4,307 552 2,572 1,183 Nov -979 474 382 -23 -8 679 -33 558 4,865 243 3,583 1,039 Dec 147 -218 -644 186 80 151 -40 -259 4,606 481 3,084 1,041 1958—Jan -1,225 -831 600 225 541 -343 68 -1,101 3,505 469 1,767 1,269 P Preliminary. bonds and Treasury bills, (3) Budget expenditures involving issuance of 1 Consists primarily of interest payments by Treasury to trust accounts Federal securities, (4) cash transactions between International Monetary and to Treasury by Govt. agencies, transfers to trust accounts representing Fund and the Treasury, (5) reconciliation items to Treasury cash, and Budget expenditures, and payroll deductions for Federal employees re- (6) net operating transactions of Govt. sponsored enterprises. tirement funds. 4 Primarily adjustments 2, 3, and 4, described in note 3. 2 Small adjustments to arrive at this total are not shown separately. 5 Excludes net transactions of Govt. sponsored enterprises, which are 3 Consists primarily of (1) intra-Governmental transactions as de- included in the corresponding columns above. scribed in note 1, (2) net accruals over payments of interest on savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FINANCE 329 DETAILS OF FEDERAL FISCAL OPERATIONS [On basis of Treasury statements and Treasury Bulletin unless otherwise noted. In millions of dollars] Budget receipts Selected excise taxes (Int. Rev. Serv. repts.) Adjustments from total Income and Budget receipts profits taxes Period B c u N e r d i e e p g - t t e s t O ag ld T e - rans H f w e i r g a s h y - to R - r . e- R. fu R r o n e e f d - - s B c T u e r o d i e p t - g a t e s l t W I i n th d - ividual C ra o ti r o p n o- t c a E i x x s e e - s t p m a E l x o m e e n y s - t - 2 O ce r t i e h p - e ts r Liquor b T ac o c - o a t M a n i d l f e r r s r e s . - ' ' trust trust tire- ceipts held Other fund* fund ment acct. Fiscal year—1954 64,655 4,537 603 3,377 73,173 21,635 10,747 21,523 10,014 5,425 3,829 2,798 1,581 3,127 1955 60,390 5,040 599 3,426 69,454 21,254 10,396 18,265 9,211 6,220 4,108 2,743 1,571 3,177 1956 68,165 6,337 634 3,684 78,820 24,012 11,322 21,299 10,004 7,296 4,887 2,921 1,613 3,778 1957 71,029 6,634 1,479 616 3,917 83,675 26,728 12,302 21,531 10,638 7,581 4,895 2,973 1,674 4,098 Semiannually : 1955—July-Dec 25,240 2,927 318 496 28,981 11,312 2,699 4,109 5,052 3,283 2,526 1,524 792 1,890 1956—Jan.-June 42,925 3,410 316 3,188 49,839 12,700 8,623 17,190 4,952 4,013 2,361 1,397 821 1,888 July-Dec 28,069 2,559 643 312 463 32,045 13,020 3,004 5,553 5,325 2,876 2,267 1,648 817 1,876 1957—Jan.-June 42,960 4,075 836 304 3,454 51,630 13,708 9,298 15,978 5,313 4,705 2,628 1,325 857 2,222 July-Dec 29,325 3,135 1,151 305 655 34,571 13,760 2,874 6,273 5,595 3,445 2,625 1,574 848 2,226 Monthly: 1957—Jan 4,809 255 141 21 52 5,279 1,025 2,101 461 856 316 520 186 151 Feb 6,188 1807 205 83 203 7,486 3,838 871 445 874 1,160 298 197 132 1,119 Mar 10,737 632 120 50 606 12,145 2,083 785 7,327 931 692 327 231 138 Apr 4,256 617 124 15 1,130 6,142 819 2,827 520 812 633 531 214 133 May 5,282 1,229 109 83 1,057 7,759 3,690 897 502 965 1,314 391 243 161 1,102 June 11,688 536 137 52 406 12,819 2,252 1,818 6,722 875 589 563 257 142 July 3,057 346 174 19 138 3,734 1,047 269 541 955 366 556 244 146 Aug 5,128 919 219 84 124 6,475 3,678 128 355 965 1,003 346 241 157 1,124 Sept 7,225 486 207 54 137 8,109 2,163 1,823 2,304 922 540 357 260 146 Oct 3,131 332 183 30 120 3,796 1,333 204 429 1,088 363 379 323 159 Nov 4,827 671 203 69 76 5,845 3,415 97 367 840 740 386 285 133 1,102 Dec 5,956 382 165 49 59 6,611 2,125 352 2,277 824 432 601 221 106 1958—Jan 4,786 313 151 19 -25 5,243 981 2,053 486 892 385 446 n.a. Budget expenditures 3 Major national security Agri- Vet- culture Period Total Total4 D m D e i e l f i e p t n a t s . r , y e p M se ro c u g u tu r r i a a t m y l , A en t e o r m gy ic f a i I f n a n f a n a t n i d l r . c s e In e t s e t r- ic e b e s r f e e s a i n r t n v a s e s n - - ' d w L e a a l n b f d a o r r e t a a c u r g u n e r r l d a - i - - l s N o u r u r e a r a - t c l - es h m C o a u o e n s r m d i c n e - g g m G o e v r e e a e n n l r - t nsources Fiscal year: 1953 74,274 51,830 43,611 5,421 ,791 749 6,583 4,298 2,426 2,936 1,476 2,502 1,474 1954 67,772 47,872 40,335 4,596 ,895 765 6,470 4,256 2,485 2,557 1,315 814 1,239 1955 64,570 42,089 35,533 3,755 ,857 719 6,438 4,457 2,552 4,411 1,202 1,502 1,201 1956 66,540 41,825 35,791 3,795 ,651 662 6,846 4,756 2,776 4,913 1,104 2,028 1,629 1957 69,433 44,414 38,440 3,495 ,990 832 7,308 4,793 2,966 4,582 1,296 1,453 1,789 Semiannually: 1955—July-Dec. 6 33,125 20,421 17,917 1,383 797 212 3,349 2,330 ,348 2,775 614 1,137 940 1956—Jan.-June 7 33,415 21,190 17,873 2,197 854 664 3,497 2,426 ,428 2,138 490 891 689 July-Dec 33,801 21,145 18,547 1,464 930 382 3,587 2,291 ,421 2,183 736 879 1,181 1957—Jan.-June 7 35,632 23,269 19,893 2,031 ,060 450 3,721 2,502 ,545 2,399 560 574 608 Monthly: 1956—Nov 5,726 3,664 3,276 201 160 72 585 407 207 319 175 213 102 Dec 5,718 3,651 3,295 178 153 57 635 405 197 435 106 142 102 1957_Jan 6,095 3,833 3,335 269 182 29 655 410 330 551 87 85 100 Feb 5,743 3,654 3,245 214 150 65 592 407 236 312 94 268 98 Mar 5,584 3,788 3,224 349 169 43 606 414 209 397 85 -19 81 Apr 5,987 4,011 3,544 253 183 44 611 419 285 455 82 -6 101 May 5,944 3,869 3,279 377 184 57 610 444 208 308 106 139 124 June 6,279 4,114 3,266 569 192 212 647 408 277 376 106 107 104 July 6,347 3,628 3,108 311 170 77 665 377 317 664 129 241 120 Aug 5,931 3,989 3,545 215 190 96 635 382 272 215 161 108 100 Sept 5,666 3,589 3,148 226 169 53 638 362 239 386 138 269 104 Oct 6,501 3,700 3,222 240 190 360 647 421 358 529 158 222 115 Nov 5,806 3,506 3,035 254 183 104 646 432 226 404 147 196 119 n.a. Not available. 5 Periodic revisions of Treasury statement data for fiscal years given 1 Beginning February 1957, includes transfers to Federal disability without corresponding monthly revisions; consequently monthly and insurance trust fund. semiannual data may not add to totals. 2 Represents the sum of taxes for old-age insurance, railroad retire- 6 Data are from Treasury Bulletin for June 1956 and are not fully comment, and unemployment insurance. parable with data in subsequent Bulletins or with other data in this 3 For more details, see the 1959 Budget document, pp. 890-96 and table. pp. 954-55 and the Treasury Bulletin, Table 3 of section on Budget receipts 7 Derived by subtracting totals for July-December from totals for fiscal and expenditures. year. 4 Includes stockpiling and defense production expansion not shown separatelv. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL FINANCE UNITED STATES GOVERNMENT DEBT, BY TYPE OF SECURITY [On basis of daily statements of United States Treasury. In billions of dollars] Public issues3 Marketable Nonmarketable E m n o d n t o h f T d g e r o o b t s t a * s l T d d g i e r o r o b e t s a t c s 2 l t Total Certifi- Bonds C v ib e o r l n e t- - Sav- T an a d x S is p s e u c e ia s l Total Bills cates of Notes bonds Totals ings savindebt- Bank Bank bonds ings edness eligi- re- notes ble 4 stricted 1941_Dec 64.3 57.9 50.5 41.6 2 0 6.0 33.6 8.9 6.1 2.5 7.0 1945 Dec 278.7 278.1 255.7 198.8 17.0 38.2 23.0 68.4 52.2 56.9 48.2 8.2 20.0 1947—Dec 257.0 256 9 225.3 165 8 15 1 21 2 11 4 68 4 49.6 59.5 52.1 5.4 29.0 1951 Dec 259.5 259.4 221.2 142.7 18.1 29.1 18.4 41.0 36.0 ii.i 66.4 57.6 7.5 35.9 1952 Dec 267.4 267.4 226.1 148.6 21.7 16.7 30.3 58.9 21.0 12.5 65.0 57.9 5.8 39.2 1953—Dec 275.2 275.2 231.7 154.6 19 5 26 4 31 4 63.9 13.4 12.0 65.1 57.7 6.0 41.2 1954 Dec 278.8 278.8 233.2 157.8 19.5 28.5 28.0 76.1 5.7 11.8 63.6 57.7 4.5 42.6 1955—Dec 280.8 280.8 233.9 163.3 22 3 15 7 43 3 81.9 11.4 59.2 57.9 (6) 43.9 1956 Dec 276.7 276.6 228.6 160.4 25.2 19.0 35.3 80.9 10.8 57.4 56.3 45.6 1957 Feb 276.4 276.3 228.4 160.9 25.9 20.2 33.9 80.9 10.6 57.0 55.8 45.5 Mar 275 1 275 0 227 2 159 9 25 3 19 4 34 4 80 9 10 5 56 7 55 6 45 6 Apr 274.1 274.0 226.9 160.0 25.3 19.4 34.4 80.9 10.4 56.5 55.4 45.2 May 275.3 275 2 226.9 160 3 26 8 21 8 30 9 80 8 10.3 56.3 55.2 46.1 June 270.6 270.5 221.7 155.7 23.4 20.5 31.0 80.8 10.3 55.7 54.6 46.8 July 272.6 272 5 224.3 158 8 26 4 20 5 31 1 80 8 10.2 55.3 54.3 46.3 Aus 274.0 273.8 225.3 160.2 28.2 34.1 17.1 80.8 10.1 55.0 54.0 46.7 Sept 274.5 274.4 226.5 161.8 26.7 35.0 19.3 80.8 9.9 54.8 53.8 46.2 Oct 274.2 274.1 226.3 162.2 26.7 34.7 19.4 81.5 9.7 54.4 53.5 46.1 Nov 274.9 274.7 227.1 163.4 26.7 34.7 20.6 81.5 9.6 54.1 53.2 46.0 Dec 275.0 274.9 227.1 164.2 26 9 34 6 20 7 82 1 9.5 53.4 52.5 45.8 1958—jan 274.7 274.6 227.3 164.6 27.3 34.6 20.7 82.1 9.5 53.2 52.3 45.5 Feb . . 274.8 21 A.I 227.0 164.5 26.1 31.5 20.5 86.4 9.3 53.2 52.3 46.0 1 Includes some debt not subject to statutory debt limitation (amounting *> Includes Treasury bonds and minor amounts of Panama Canal and to $435 million on Feb. 28, 1958) and fully guaranteed securities, not Postal Savings bonds. shown separately. 5 Includes Series A investment bonds, depositary bonds, armed forces 2 Includes non-interest-bearing debt, not shown separately. leave bonds, and adjusted service bonds, not shown separately. 3 Includes amounts held by Govt. agencies and trust funds, which 6 Less than $50 million. aggregated $9,610 million on Jan. 31, 1958 OWNERSHIP OF UNITED STATES GOVERNMENT SECURITIES, DIRECT AND FULLY GUARANTEED [Par value in billions of dollars] Total Held by Held by the public gross U. S. Govt. debt agencies and End of (includ- trust funds1 Insur- State Individuals month ing guar- Federal Com- Mutual ance Other and Misc. anteed Total Reserve mercial savings com- corpo- local invessecuri- Special Public Banks banks2 banks panies rations govts. Savings Other tors 3 ties) issues issues bonds securities 1941—Dec 64.3 7.0 2.6 54.7 2.3 21.4 3.7 8.2 4.0 .7 5.4 8.2 .9 1945—Dec 278.7 20.0 7.0 251.6 24.3 90.8 10.7 24.0 22.2 6.5 42.9 21.2 9.1 1947_Dec 257.0 29.0 5.4 222.6 22.6 68.7 12.0 23.9 14.1 7.3 46.2 19.4 8.4 1951—Dec 259.5 35.9 6.4 217.2 23.8 61.6 9.8 16.5 20.7 9.6 49.1 15.5 10.6 1952—Dec 267.4 39.2 6.7 221.6 24.7 63.4 9.5 16.1 19.9 11.1 49.2 16.0 11.7 1953—Dec 275.2 41.2 7.1 226.9 25.9 63.7 9.2 15.8 21.6 12.7 49.4 15.4 13.2 1954—Dec 278.8 42.6 7.0 229.2 24.9 69.2 8.8 15.0 19.2 14.4 50.0 13.7 13.9 1955—Dec 280.8 43.9 7.8 229.1 24.8 62.0 8.5 14.3 23.3 15.1 50.2 15.4 15.6 1956—June 272.8 45.1 8.4 219.3 23.8 57.1 8.4 13.3 17.4 15.7 50.3 17.2 16.2 Dec 276.7 45.6 8.4 222.7 24.9 59.3 8.0 12.8 18.6 16.1 50.1 17.0 15.9 1957_Jan 276.3 45.3 8.6 222.4 23.4 58.3 8.1 12.9 20.2 16.2 49.9 17.3 16.2 Feb 276.4 45.5 8.6 222.3 22.9 57.7 8.1 12.8 20.9 16.3 49.7 17.8 16.2 Mar 275.1 45.6 8.6 221.0 23.1 58.1 8.1 12.6 18.0 16.6 49.6 18.6 16.3 Apr 274.1 45.2 8.5 220.4 23.2 58.0 8.0 12.5 17.9 16.8 49.4 18.6 16.0 May 275.3 46.1 8.7 220.5 23.1 57.7 8.0 12.4 18.5 16.8 49.3 18.3 16.4 June 270.6 46.8 8.7 215.1 23.0 55.8 7.9 12.3 15.7 16.9 49.1 18.3 16.1 July 272.6 46.3 8.8 217.4 23.4 56.8 7.9 12.3 16.3 16.9 48.9 18.7 16.3 Aug 274.0 46.7 9.1 218.2 23.5 56.6 7.9 12.2 16.8 17.1 48.8 19.2 16.0 Sept 274.5 46.2 9.2 219.1 23.3 58.3 7.9 12.2 16.1 17.2 48.6 19.6 16.0 Oct 274.2 46.1 9.4 218.7 23.3 58.1 7.8 12.2 16.1 17.2 48.4 19.5 16.1 Nov 274.9 46.0 9.3 219.5 23.7 58.1 7.6 12.1 16.4 17.3 48.3 19.6 16.4 Dec 275.0 45.8 9.4 219.8 24.2 58.9 7.6 12.0 16.1 17.0 48.2 19.3 16.4 1 Includes the Postal Savings System. 3 Includes savings and loan associations, dealers and brokers, foreign 2 Includes holdings by banks in territories and insular possessions, accounts, corporate pension funds, and nonprofit institutions. which amounted to about $250 million an Dec. 31, 1956. NOTE.—Reported data for Federal Reserve Banks and U. S. Govt. agencies and trust funds; Treasury Department estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FINANCE 331 UNITED STATES GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES OUTSTANDING, FEBRUARY 28, 1958* [On basis of daily statements of United States Treasury. In millions of dollars] Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills2 Certificates—Cont. Treasury notes—Cont. Treasury bonds—Cont. M M a a r r . . 1 6 3 , , 1 1 9 9 5 5 8 8 1 1, , 8 8 0 0 3 0 D A e u c g . . 1,1 19 9 5 5 8 8 ... 334 1 9 1 , , 8 5 3 1 3 9 A Oc u t g . . 1 1 5, , 1 1 9 9 6 6 2 2 11/2 4 2,0 2 0 9 0 2 D Fe e b c . . 1 1 5 5 , , 1 19 9 6 6 4 3 -68... iy 3 2 2 3, , 8 8 4 2 1 2 M M a a r r . . 2 2 0 4 , , 1 1 9 9 5 5 8 8 3 1 , , 0 7 0 0 2 0 Feb. 14; 1959 2y2 9,767 Nov. 15, 1962 334 1,143 J D u e n c e . 1 1 5 5 , , 1 1 9 9 6 6 4 4 - - 6 6 9 9 . . . . . . 2 2 ^ V /2 2 3 3 , , 8 7 2 4 2 7 A A M p p a r r r . . . 2 1 7 0 3 , , , 1 1 1 9 9 9 5 5 5 8 8 8 1 1 1 , , , 7 7 7 0 0 0 0 0 0 Tr J e A u a p s n r u e . r y 1 5 1 n , i 1 t 1 e 9 9 s 5 5 8 8 2 n % /2 4,39 5 2 0 Tre S M a e s a p u r t . r . y 1 1 5 5 b , , o n 1 1 d 9 9 s 5 5 6 6 - - 5 5 9 8 3 3 . . . . 2 2 1 y 4 2 3,8 1 1 8 8 0 J M M un a a e r r . . 1 1 ,5 5 5 , , , 1 1 1 9 9 9 6 6 6 6 5 7 - - - 7 7 7 1 0 2 . . . . . . . . 2 . 2 2 i % y /2 2 4 2 1 , , , 7 9 8 0 5 5 5 2 2 Apr. 15, 1958 607 Oct. 1958 11/2 121 Mar. 15, 1957-593. .23/8 927 Sept. 15, 1967-72... 2% 2,716 Apr. 17, 1958 1.701 Feb. 15 1959 1% 5,102 June 15, 1958 23/8 4,245 Dec. 15, 1967-72... 21/2 3,752 A M p a r y . 24 1 , , 1 1 9 9 5 5 8 8 1 1. . 7 7 0 0 1 2 A Oc p t r . . 1 1 1 19 9 5 5 9 9 I iy K 2 1 9 1 9 9 J D u e n c e . 1 1 5 5 , , 1 19 9 5 5 8 8 -63 4.. 2 2 3 y 4 2 2,3 9 6 1 8 9 N O o ct v . . 15 1 , , 1 1 9 9 6 7 9 4 3% 4 6 6 5 5 4 7 M M a a y y 1 8 5 , , 1 1 9 9 5 5 8 8 1 1, , 7 7 0 0 9 0 A M p a r y . 1 1 5 1 1 9 9 6 6 0 0 3 i 1 y /2 2 2,4 1 0 9 6 8 J D u e n c e . 1 1 5 5 , , 19 1 5 9 9 5 - 9 6 - 2 6 . 2 . . . . 2 .iy |4 4 5 3 , ,4 2 5 6 7 9 J F u e n b e . 1 1 5 5 , , 1 1 9 9 9 7 0 8 -83... 3 3 V lA 4 1 1 , , 7 6 2 0 2 4 M M a a y y 2 2 2 9 , , 1 1 9 9 5 5 8 8 1 1, , 8 8 0 0 1 2 O A A c u p t g r . . . 1 1 1 1 1 1 9 9 9 6 6 6 1 1 0 n W / 4 2 2 2,6 2 1 0 7 4 9 8 4 D N Se e o p c v t . . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 6 6 6 0 1 0 -65 5.. 2 2 2 3 3 i/ 4 4 8 2 3 1 , , , 2 4 8 8 3 0 5 9 6 Pa F n e a b m . a 1 C 5 a , n 1 a 9 l 9 L 5 oan.... 3 3 2,7 5 4 0 2 Ce A rt p i r fi . c at 1 e 5 s , 1958 357 O Fe c b t. . 15 1 ; 1 1 9 9 6 6 1 2 U 3% /2 6 3 4 3 7 2 A N u o g v . . 1 1 5 5 , , 1 1 9 9 6 6 1 3 2 2 1 1 / / 2 2 1 6 1 , , 7 1 5 7 5 7 Co I n n v v e e r s ti t b m le e n b t o S n e d r s ies B Apr. 1 1962 11/2 551 June 15 1962-67... 21/2 2,113 Apr. 1, 1975-80... 2 34 9,334 1 Direct public issues. 3 Not called for redemption on first call date. Callable on succeeding 2 Sold on discount basis. See table on Money Market Rates, p. 323. interest payment dates. 4 Called for redemption on June 15. 5 Partially tax-exempt. OWNERSHIP OF UNITED STATES GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES 1 [On basis of Treasury Survey data. Par value in millions of dollars] * Marketable and convertible securities, by type Marketable securities, by maturity class Type of holder and date Total Bills C c e a r t t e if s i- Notes M bo a a n b rk d le s e t 2 - v b e C o r o t n i n b d - l s e Total W 1 i y th e i a n r 1-5 5-10 O y v e e a r r s 10 All holders: 1955—June 30 166,882 19,514 13,836 40,729 81,128 11,676 155,206 49,703 38,188 33,687 33,628 1956—June 30 166,050 2), 808 16,303 35,952 81,890 11,098 154,953 58,714 31,997 31,312 32,930 Dec. 31 171,137 25,179 19,023 35,294 80,878 10,763 160,374 68,557 41,021 17,893 32,904 1957—June 30 165,985 23,420 20,473 30,973 80,839 10,280 155,705 71,033 39,184 14,732 30,756 Nov. 30 173.028 26,660 34,692 20,598 81,470 9,609 163,419 71,941 45,357 14,731 31,389 Dec. 31 173,718 26,857 34,554 20,664 82,117 9,527 164,191 74,368 46,513 11,272 32,038 U. S. Govt. agencies and trust funds: 1955—June 30 7,162 40 8 119 3,556 3,439 3,723 74 199 506 2,944 1956—June 30 8,236 273 355 688 3,575 3,345 4,891 927 500 434 3,030 Dec. 31 8,242 142 353 842 3,669 3,236 5,006 928 708 317 3,053 1957—June 30 8,554 130 416 1,282 3,664 3,063 5,491 1,138 1,210 295 2,848 Nov. 30 9,165 137 670 1,608 3,810 2,940 6.225 1,230 1,734 301 2,959 Dec. 31 9,260 130 657 1,617 3,933 2,923 6,337 1,236 1,782 260 3,059 Federal Reserve Banks: 1955—June 30 23,607 886 8,274 11,646 802 23,607 17,405 3,773 1,014 1,415 1956—June 30 23,758 855 10,944 9,157 802 23,758 20,242 1,087 1,014 1,415 Dec. 31 24,915 1.918 10,975 9,219 802 24,915 22,113 373 1,014 1,415 1957—June 30 23,035 287 11,367 8,579 802 23,035 20,246 681 750 1,358 Nov. 30 23.733 814 20,044 40 836 23,733 20,931 694 750 1,358 Dec. 31 24,238 1,220 20,104 87 2,827 24,238 21,427 1,397 57 1,358 Commercial banks: 1955—June 30 55,667 2,721 1,455 15,385 35,942 164 55,503 7,187 21,712 21,110 5,494 1956—June 30 49,673 2,181 1,004 11,620 34,712 155 49,517 7,433 18,234 19,132 4,719 Dec. 31 51,466 4,934 1,600 10,714 34,071 147 51,319 11,635 24,528 10,242 4,914 1957—June 30 48,734 2,853 2,913 8,984 33,839 144 48,590 12,268 23,500 8,600 4,222 Nov. 30 50.757 514 3,980 9,633 33,491 139 50,618 11,180 26,288 8,735 4,414 Dec. 31 51,712 332 4,046 9,672 33,529 133 51,579 13,066 26,526 7,364 4,623 Mutual savings banks: 1955_june 30 8,069 84 53 289 6,422 1,222 6,848 164 533 1,405 4,746 1956—June 30 7,735 107 37 356 6,074 1,161 6,574 247 540 1,319 4,468 Dec. 31 7,431 131 24 312 5,849 1,115 6,316 241 1,057 659 4,358 1957_june 30 7,397 163 114 367 5,655 1,098 6,299 576 1,082 601 4,040 Nov. 30 7,203 132 167 454 5,435 1,016 6,187 446 1,178 583 3,980 Dec. 31 7,209 122 167 438 5,470 1,012 6,197 453 1,227 476 4,041 Insurance companies: 1955—June 30 13,117 630 74 789 8,479 3,145 9,972 810 1,339 2,027 5,796 1956—June 30 11,702 318 44 760 7,789 2,791 8,911 632 1,192 1,802 5,285 Dec. 31 11,331 349 66 781 7,464 2,671 8,660 726 1,749 1,136 5,049 1957_june 30 10,936 326 136 648 7,277 2,549 8,387 955 1,775 1,022 4,634 Nov. 30 10,937 401 236 690 7,233 2,377 8,560 980 1,886 1,025 4,668 Dec. 31 10,801 291 248 683 7,231 2,347 8,454 938 2,074 718 4,724 Other investors: 1955—June 30 59,260 15,153 3,973 12,502 23,927 3,706 55,554 24,062 10,633 7,626 13,233 1956—June 30 64,947 17,074 3,919 13,371 26,896 3,646 61,301 29,233 10,443 7,612 14,013 Dec. 31 67,752 17,705 6,004 13,426 27,024 3,593 64,159 32,914 12,605 4,525 14,114 1957—June 30 67,329 19,661 5,527 11,113 27,602 3,426 63,904 35,850 10,936 3,464 13,654 Nov. 30 71,233 21,663 9,595 8,173 28,665 3,137 68,096 37,174 13,576 3,336 14,009 Dec. 31 70,499 20,762 9,331 8,167 29,127 3,112 67,387 37,249 13,508 2,397 14,233 1 Direct public issues. panies included in the survey account for over 90 per cent of total holdings 2 Includes minor amounts of Panama Canal and Postal Savings bonds. by these institutions. Data are complete for U. S. Govt. agencies and NOTE.—Commercial banks, mutual savings banks, and insurance com- trust funds and Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 SECURITY ISSUES NEW SECURITY ISSUES 1 [Securities and Exchange Commission estimates. In millions of dollars] Gross proceeds, all issuers2 Propo a s ll e d c o u r s p e o s r a o t f e n i e ss t u p e r r o s c 6 eeds, Noncorporate Corporate New capital Year or Remonth Total G U o . v S t. . 3 ag F e e e r n a d c l - y4 S n m a p t i n a a c u d t l i - e - Others Total Total o B P f l f o i u e c n r l b e y d - d s p v l P a a t r c e i e - ly d f s e P t r o r r e c e - k d C s m t o o o m c n k - Total m N on e e w y 7 p l M p c a o o u e n u s i l r e e s s - - - - s m b d e t R i a e t o r e c n b e e f . n - k t - 8 t , m s r t i e i t o e r c i e f e n u - s t - 1939. ,687 ? 332 13 1?8 50 ? 164 1 980 1,276 703 98 87 420 325 26 69 1,695 1941 157 11 466 38 956 30 2 667 ,390 1,578 811 167 110 1 041 868 28 144 1 583 1945. 54,712 47 353 506 795 47 6,J011 4 855 3,851 1,004 758 397 1,347 1,080 133 134 4 555 1950. 19,893 9 687 30 3,53? 282 6 361 4 9?0 2,360 2,560 631 811 4,990 4,006 364 620 1.271 1951 265 9 778 110 3 189 446 7,741 5,691 2,364 3,326 838 1,212 7 120 6 531 226 363 486 1952. ^6,929 P 577 459 4, PI 237 9 534 7 601 3,645 3,957 564 1,369 8,716 8,180 537 664 1953. ?8,824 13 957 106 5 558 306 8 898 7 083 3,856 489 1,326 8,495 7,960 535 260 1954. ?Q 765 P 532 458 6j 969 289 9 516 7 488 4,003 3,484 816 1,213 7,490 6,780 709 1 875 1955. ?6,772 9 628 746 5 977 182 10 ?40 7 4?0 4,119 3,301 635 2,185 8,821 7,957 864 1,227 1956 405 5 517 169 446 334 10 939 8 00? 4,225 3,777 636 2 30110 384 9 663 721 364 1957. 30,631 9 601 572 958 559 1?J941 10,035 6,113 3,923 408 2,497 12,473 11,830 643 248 1957-— Jan 2,432 496 72 685 84 1,094 916 641 276 34 144 1,063 1,026 38 11 Feb 123 386 569 53 116 761 514 248 26 329 1 071 927 144 22 Mar ,248 1 327 503 32 1 386 1,07? 643 429 38 276 1,344 1,271 73 21 Apr. . . 362 390 125 763 128 956 647 385 46 264 924 864 61 13 May ,785 394 539 51 80? 691 437 254 25 85 771 707 64 15 J Ju u l n y e 1 4 9 0 7 1 7 4 3 0 6 0 2 60 5 38 1 8 6 4 3 4 8 1 1J i0 5 ? 4 ? 7 1,0 7 7 70 4 4 6 5 3 9 3 4 3 4 1 1 1 2 6 2 6 4 2 0 3 7 0 1 4 99 8 1 9 1 4 93 1 0 9 6 6 9 0 3 1 1 5 Aug 1,934 392 595 10 937 830 540 290 31 76 914 905 9 9 Sept 980 263 215 437 37 1 0?8 913 587 327 19 96 973 949 24 40 Oct <7,670 894 683 15 1 078 911 608 303 68 100 1,055 1,026 29 10 Nov 3 027 1 374 100 639 65 849 676 485 191 24 150 792 765 28 41 Dec n,692 925 '640 2 1 773 182 592 10 341 1,086 1,043 43 21 1958—Jan 3,412 511 1,163 753 200 785 717 505 213 28 39 688 672 16 86 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e l r la c n ia e l o a u n s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e al Year or month Retire- Retire- Retire- Retire- Retire- Retire- New ment of New ment of New ment of New ment of New ment of New ment of capital10 secu- capital10 secu- capital10 secu- capital10 secu- capital10 secu- capital10 securities rities rities rities rities rities 1950 1 026 149 474 63 609 196 1,927 682 314 81 639 100 1951 2 846 462 56 437 53 2,326 85 600 5 449 66 1952 3,712 261 512 24 758 225 2,539 88 747 6 448 60 1953 2 128 90 502 40 553 36 2,905 67 871 3 1 536 24 1934 2 044 190 831 93 501 270 2,675 990 651 60 788 273 1955 2,397 533 769 51 544 338 2,254 174 1,045 77 1,812 56 1956 3 336 682 51 694 20 2,474 14 1,384 21 1 815 17 1957. 4,097 6? 612 49 8?0 14 3,801 56 1,443 3 1,701 64 1957 Jan 381 8 42 101 247 (9) 105 1 187 Feb 543 94 4 31 247 14 46 108 Mar 366 32 85 490 16 281 1 91 Apr 314 3 53 4 65 351 5 47 (9] 93 May 135 4 55 3 80 348 8 82 72 (9) June. 626 29 1 51 8 436 137 (9) 210 July 234 5 71 10 45 244 sg\ 54 a 343 AUK 242 50 6 30 (9) 251 126 215 1 Sept 331 4 36 5 76 418 (9) 65 47 30 Oct 126 3 48 45 6 310 (9) 369 158 Nov 222 42 1 62 287 9 92 88 30 Dec 575 7 61 13 149 172 2 41 88 1958—Tan 118 8 35 2 87 24 311 20 50 116 2 r Revised. 6 Estimated net proceeds are equal to estimated gross proceeds less cost 1 Estimates of new issues sold for cash in the United States. of flotation, i.e., compensation to underwriters, agents, etc., and expenses. 2 Gross proceeds are derived by multiplying principal amounts or num- 7 Represents proceeds for plant and equipment and working capital. ber of units by offering price. 8 Represents proceeds for the retirement of mortgages and bank debt 3 Includes guaranteed issues. with original maturities of more than one year. Proceeds for retirement of 4 Issues not guaranteed. short-term bank debt are included under the uses for which the bank 5 Represents foreign governments, International Bank for Reconstruc- debt was incurred. tion and Development, and domestic eleemosynary and other nonprofit 9 Less than $500,000. organizations. 1 o Represents all issues other than those for retirement of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BUSINESS FINANCE 333 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS [In millions of dollars] Annual totals Quarterly totals Industry 1956 1957 1951 1952 1953 1954 1955 1956 1 2 3 4 1 2 3 Manufacturing Total (200 corps.): S P a ro le f s its before taxes 5 8 ?, , 9 8 4 6 0 9 5 7 4 , ,5 3 1 0 7 8 63 8 3 3 4 7 3 5 58 7 , , 1 2 1 4 0 4 6 1 9 0 J ,2 87 5 6 0 71 9,2 90 5 1 3 1 2 8 , 6 1 0 3 3 1 2 4 5 5 0 7 9 1 1 6 , 7 1 0 1 0 91 2 9 , , 4 1 4 9 1 3 1 2 9 , , 7 7 5 5 1 4 1 2 9 , , 5 4 7 2 5 41 2 7 , 0 9 5 9 3 4 P D r i o v f i i d ts e n a d f s ter taxes ? 1 J0 5 7 4 5 8 9J073 ? 6 1 4 54 9 1, , 8 1 ? 8 5 4 ? 5 J ? 8 1 ?7 1 4 7,9 8 7 4 ? ? 1 7 3 0 0 3 2 7 1 0 0 6 5 9 7 1 2 4 3 1 8 3 4 2 1 1 1 7 4 5 2 2 0 1 7 3 5 3 7 91 7 1 5 0 7 7 Nondurable goods industries (94 corps.): 1 Sales 916 19,?66 ?0 694 ?0,6?0 106 ?4,76? 6 079 f, 115 6 084 6,464 6,604 6,510 6,522 Profits before taxes 3,447 2,853 3 028 2,753 3,413 3,468 907 876 808 877 941 873 844 Profits after taxes 1,511 1,39? 1 5?6 1,581 918 1985 503 -191 466 526 537 503 487 Dividends 9?5 946 97? 1,064 j' 1,?49 290 795 305 359 315 318 319 Durable goods industries (106 corps.):2 Sales 34 0?4 35,?51 4? 649 17,49046,770 47,139 12,0521? 1?? 10 03612,730 13,150 12,91411,472 Profits before taxes 5,422 4,455 346 4,491 6,836 5,784 1,696 633 892 1,564 1,810 1,702 1,209 D Pr i o v f i i d ts e n a d f s ter taxes ? 1J, 0 1 1 4 5 9 8 1 0 2 0 7 1 182 ? 1, , 3 ?4 2 4 0 1, 6 3 2 1 5 3 1 , , 8 7 5 2 7 4 7 4 9 1 9 3 4 8 1 1 1 5 4 4 4 1 8 8 7 4 9 8 4 2 4 8 3 8 7 3 4 8 3 3 9 6 4 6 3 2 8 0 Selected industries: Foods and kindred products (28 corps.): Sales 4 909 5,04? 5411 5,476 5,811 6,300 1,530 1 569 1,561 1,640 1,618 1,642 1,663 Profits before taxes 471 453 465 46? 499 561 126 149 141 145 133 154 158 Profits after taxes ?03 ?44 ?75 58 71 71 74 63 75 77 Dividends 159 154 154 156 160 166 37 38 41 50 39 40 41 Chemicals and allied products (26 corps.): Sales 5 882 5,965 6 373 6,182 7,222 7,726 1,879 1957 1,889 2,001 2,045 2,047 2,065 Profits before taxes 1490 ?59 1 308 1,151 1,515 1,500 388 380 342 389 395 394 397 Profits after taxes J486 5?0 591 78? 776 196 195 178 207 197 202 201 Dividends 181 396 417 499 597 60? 138 Ml 143 181 150 152 150 Petroleum refining (14 corps.): Sales 5 078 5,411 5 883 6 015 6 556 7 185 1 764 1 770 1,909 2,048 1,941 1 920 Profits before taxes 911 7?8 841 751 854 916 248 •*223 218 226 298 219 193 Profits after taxes 560 524 603 567 624 688 177 163 163 184 220 172 161 Dividends ?6? ?83 ?90 ?94 117 346 82 8? 89 93 91 91 95 Primary metals and products (39 corps.): Sales 1? 507 564 13 750 11,5?? 14,95? 16,06? 4,209* 415 3,098 4,340 4,272 4,270 3,830 Profits before taxes 2 098 1,147 1,817 1,357 2,377 2,366 690 712 267 697 678 652 515 Profits after taxes 778 564 790 705 195 1,?33 346 363 145 378 344 327 267 Dividends 18? 369 377 407 5?? JS06 141 137 140 188 157 157 158 Machinery (27 corps.): Sales 6 168 7,077 8,005 7,745 8,477 9,798 2,167 2,463 2,422 2,746 2,624 2,750 2,669 Profits before taxes 1000 971 011 914 91? 943 200 ?67 233 243 296 305 273 Profits after taxes 165 375 40? 465 465 460 16 139 125 120 142 148 136 Dividends ... 19? 199 ?37 ?63 78 78 79 87 79 81 82 Automobiles and equipment (15 corps.): Sales 12 70713,038 16 611 14 137 18,8?6 16 336 4,578 4,195 3,347 4,215 4,993 4,522 3,689 Profits before taxes 1 950 98? 078 ,789 0?3 1,940 689 509 272 470 713 603 293 Profits after taxes 717 709 758 863 1 394 898 320 118 214 337 292 152 Dividends 486 469 469 516 691 656 162 164 164 166 167 166 164 Public Utility Railroad: Operating revenue 10 191 10 581 10,664 Q,371 10,106 10,551 2 535 o 704 2,590 2,722 2,575 2,660 2,676 Profits before taxes 1 ?60 438 1,416 908 141 1,?67 252 343 298 375 247 264 286 Profits after taxes 693 825 903 682 927 874 163 237 208 266 161 182 191 Dividends 318 41? 179 448 445 110 116 70 148 124 111 83 Electric power: Operating revenue 6,058 6 549 7,136 7,,588 8 360 9,059 2,398 2,185 2,175 2,302 2,549 2,318 2,344 Profits before taxes 1,482 740 1,895 2,049 2 304 2,457 710 592 568 586 731 596 600 Profits after taxes 814 947 1,030 1 114 ?44 1 374 302 331 393 327 326 Dividends 651 725 780 868 942 1,013 247 256 248 262 269 270 265 Telephone: Operating revenue 1 7?9 4 136 4,575 4,90? 5 4? 5 5,966 1,439 1,480 1,495 1,552 1,560 1,611 1,623 Profits before taxes . 691 787 925 1,050 282 1,430 339 352 359 380 387 388 387 Profits after taxes 141 384 45? 575 638 715 169 176 180 190 195 195 195 Dividends . . .. . . . 318 355 412 448 496 552 132 136 137 147 148 150 155 1 Includes 26 companies in groups not shown separately, as follows: estimated by the Federal Reserve to include affiliated nonelectric operatextile mill products (10); paper and allied products (15); miscellaneous (1). tions. 2 Includes 25 companies in groups not shown separately, as follows: Telephone. Revenues and profits are for telephone operations of the building materials (12); transportation equipment other than automobile Bell System Consolidated (including the 20 operating subsidiaries and (6); and miscellaneous (7). the Long Lines and General departments of American Telephone and NOTE.—Manufacturing corporations. Sales data are obtained from Telegraph Company) and for two affiliated telephone companies, which the Securities and Exchange Commission; other data from published together represent about 85 per cent of all telephone operations. Divicompany reports. dends are for the 20 operating subsidiaries and the two affiliates. Data Railroads. Figures are for Class I line-haul railroads (which account are obtained from the Federal Communications Commission. for 95 per cent of all railroad operations) and are obtained from reports All series. Profits before taxes refer to income after all charges and of the Interstate Commerce Commission. before Federal income taxes and dividends. For detailed description of Electric power. Figures are for Class A and B electric utilities (which series, see pp. 662-66 of the BULLETIN for June 1949 (manufacturing); account for about 95 per cent of all electric power operations) and are pp. 215-17 of the BULLETIN for March 1942 (public utilities); and p. 908 obtained from reports of the Federal Power Commission, except that of the BULLETIN for September 1944 (electric power). quarterly figures on operating revenue and profits before taxes are partly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 BUSINESS FINANCE CORPORATE PROFITS, TAXES, AND DIVIDENDS NET CHANGE IN OUTSTANDING CORPORATE SECURITIES * [Department of Commerce estimates. In billions [Securities and Exchange Commission estimates. In millions of dollars] of dollars] All types Bonds and notes Stocks Year or Profits In- Profits Cash Undis- Year or quarter b t e a f x o e r s e c ta o x m e e s t a a f x te e r s d d e i n v d i- s tr p i r b o u fi t t e s d quarter New- Retire- Net New Retire- Net New Retire- Net issues ments change issues ments change issues ments change 1949... 26.2 10.4 15.8 7.5 8.3 1950... 40.0 17.8 22.1 9.2 12.9 1950 7,224 3,501 3,724 4,806 2,802 2,004 2,418 698 1,720 1951... 41.2 22.5 18.7 9.1 9.6 1951 9,048 2,772 6,277 5,682 2,105 3,577 3,366 667 2,700 1952... 35.9 19.8 16.1 9.0 7.1 1952 10,679 2,751 7,927 7,344 2,403 4,940 3,335 348 2,987 1953... 37.0 20.3 16.7 9.3 7.4 1953 9,550 2,429 7,121 6,651 1,896 4,755 2,898 533 2,366 1954... 33.5 17.4 16.0 9.9 6.1 1954 11,694 5,629 6,065 7,832 4,033 3,799 3,862 1,596 2,265 1955... 42.5 21.5 21.0 11.0 9.9 1955 12,474 5,599 6,875 7,571 3,383 4,188 4,903 2,216 2,687 1956... 43.0 22.0 21.0 11.9 9.2 1956r 13,033 4,968 8,065 7,934 3,181 4,752 5,099 1,787 3,313 1957 14,289 3,159 11,129 9,691 2,236 7,455 4,598 923 3,675 1956—1 43.3 22.1 21.2 11.7 9.5 1956—4 r 3,462 1,105 2,357 1,821 701 1,120 1,641 404 1,237 2 42.4 21.6 20.7 12.0 8.7 3 40.8 20.8 19.9 12.1 7.8 1957—1 3,666 783 2,884 2,377 553 1,824 1,289 230 1,059 4 45.6 23.3 22.3 11.5 10.8 2 3,739 867 2,873 2,367 626 1,741 1,373 241 1,132 3 3,474 802 2,672 2,554 554 2,000 920 248 672 1957—1 43.9 22.4 21.5 12.4 9.1 4 3,409 708 2,701 2,393 503 1,890 1,016 205 811 42.0 21.4 20.5 12.5 8.0 3 41.8 21.3 20.4 12.6 7.8 r Revised. i Reflects cash transactions only. As contrasted with data shown on p. 332, new issues NOTE.—Quarterly data are at seasonally adjusted exclude foreign and include offerings of open-end investment companies, sales of securities annual rates. held by affiliated companies or RFC, special offerings to employees, and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for that purpose shown on p. 332. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS i [Securities and Exchanges Commission estimates. In billions of dollars] Current assets Current liabilities E o n r d q o u f a r y t e e a r r w c o a N p rk e it i t a n l g Total Cash s G U ec o . u v S r t i . . - Not r e e s c e a i n v d ab a le ccts. I t n o v ri e e n s - Other Total Note p s a a y n ab d l e accts. F in e c l t d i a o a e x m - ra e l Other ties U. S. Other U. S. Other bilities Govt.2 Govt. 2 1949 72.4 133.1 26.5 16.8 4:.0 45.3 1.4 60.7 3:.5 9.3 14.0 1950 81 6 161.5 28.1 19.7 1.1 55.7 55.1 1.7 79.8 .4 47.9 16.7 14.9 1951 86.5 179.1 30.0 20.7 2.7 58.8 64.9 2.1 92.6 1.3 53.6 21.3 16.5 1952 90 1 186.2 30.8 19.9 2.8 64.6 65.8 2.4 96.1 2.3 57.0 18.1 18.7 1953 91.8 190.6 31.1 21.5 2.6 65.9 67.2 2.4 98.9 2.2 57.3 18.7 20.7 1954 91 8 194.6 33.4 19.2 2.4 71.2 65.3 3.1 102.8 2 4 61.4 15 5 23.5 1955 98.9 214.6 34.0 23.3 2.3 81.6 70.0 3.5 115.7 2.3 69.9 18.4 25.1 1956 2 102.7 214.7 32.1 17.4 2.3 84.3 74.8 3.8 112.1 2.5 71.4 12.3 25.8 3 103.4 220.4 32.6 17.5 2.4 88.1 76.0 3.8 117.0 2.5 73.0 14.4 27.1 4 . . .. 104.4 225.7 34.7 18.6 2.6 88.8 77.3 3.6 121.3 2.4 74.9 16.8 27.2 1957 1 106.0 224.9 31.9 18.0 2.5 89.4 79.1 4.0 118.9 2.5 74.1 14.4 28.0 2 . . .. 107 0 224.5 32.5 15.7 2.5 90.5 79.3 4.0 117.6 2.6 74.4 12.2 28.3 3 107.7 228.9 33.2 16.1 2.4 92.9 80.0 4.2 121.2 2.6 75.2 13.8 29.6 1 Excludes banks and insurance companies. 2 Receivables from, and payables to, the U. S. Government exclude amounts offset against each other on corporations' books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT * [Department of Commerce and Securities and Exchange Commission estimates. In billions of dollars] Transportation Manu- Year Total M fa i c a n t n u g u r- - M in i g n- R ro a a i d l- Other P u u t t i b i e l l s i i - c c m C at o u i m o n n i - - s Other2 Quarter Total fa m a i i c n n n i t n u g g d - r- T p t o r i a r o n t n a s - - P u u t t i b i e l l s i i - c ot A h l e l r 3 1950 20 6 7.5 .7 1.1 1.2 3.3 1.1 5.7 1956—4 9 8 4 8 8 1 5 2 8 1951 25.6 10.9 .9 1.5 1.5 3.7 1.3 5.9 1952 26 5 11 6 1 0 1.4 1.5 3.9 1 5 5 6 1957—1 8 3 3 8 7 1 2 2 6 1953 28.3 11.9 1.0 1.3 1.6 4.6 1.7 6.3 2 9.6 4 5 .8 1 5 2 7 1954 26 8 11 0 1 0 .9 1.5 4.2 1 7 6 5 3 . 9 4 4 3 8 1 7 2 5 1955 . . 28 7 11.4 1.0 .9 1.6 4.3 2 0 7.5 4 9 7 4 6 8 1 8 2 6 1956 35.1 15.0 1.2 1.2 1.7 4.9 2.7 8.4 1957 37.0 16.0 1.2 1.4 1.8 6.2 3.0 7.4 1958—14r 8.2 3.7 .7 1.5 2.3 19584 32.1 13.2 1.1 .9 1.4 6.4 9 1 24 8.4 3.6 .6 1.7 2.5 r Revised. 3 Includes communications and other. 1 Corporate and noncorporate business, excluding agriculture. 4 Anticipated by business. 2 Includes trade, service, finance, and construction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REAL ESTATE CREDIT 335 MORTGAGE DEBT OUTSTANDING, BY TYPE OF PROPERTY MORTGAGED AND TYPE OF MORTGAGE HOLDER [In billions of dollars] All properties ]Sonfarm Farm Other Multi-family and holders 1- to 4-family houses commercial properties* E o n r d q o u f a r y t e e a r r h A e o r l l s d l - t F u i i n c t n i i s o a a t l i n n - - s S F e a e l g e d e c e n t r e - a d l v I i a d n n u d d a i- ls h A o er l l s d l - Total F i i n c n i s a a t l i n - - O ho th ld e - r Total F i i n c n i s a a ti l n - - O ho th ld e - r h A o er l l s d l - t F u i i n c t n i i s o a a ti l n n - s - h O ol t d h e e r r s* cies others tutions ers tutions ers 1941 37.6 20.7 2.0 14.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 6.4 1.5 4.9 1945 35.5 21.0 .9 13.7 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.8 1.3 3.4 1950 72.8 51 7 1.4 19.8 66.7 45.2 35.4 9.8 21.6 14.0 7.6 6.1 2.3 3.7 1951 82.3 59.5 2.0 20.8 75.6 51.7 41.1 10.7 23.9 15.9 8.0 6.7 2.6 4.1 1952 91.4 66.9 2.4 22.1 84.2 58.5 46.8 11.7 25.7 17.2 8.4 7.3 2.8 4.4 1953 101.3 75.1 2.8 23.5 93.6 66.1 53.6 12.5 27.5 18.5 9.0 7.8 3.0 4.8 1954 113.8 85.8 2.8 25.2 105.5 75.7 62.5 13.2 29.8 20.0 9.8 8.3 3.3 5.0 1955 130.0 99.4 3.1 27.5 120.9 88.2 73.8 14.4 32.7 21.9 10.8 9.1 3.6 5.4 1956 144.7 111.2 3.6 29.9 134.8 99.0 83.4 15.6 35.8 23.9 11.9 9.9 3.9 6.0 1957* 156.3 119.9 4.7 31.7 145.8 107.6 90.3 17.3 38.2 25.6 12.6 10.5 4.0 6.5 1956 June 137.6 105.5 3.2 28.8 128.0 93.7 78.8 14.9 34.3 22.9 11.3 9.6 3.8 5.8 Sept 141.4 108.7 3.3 29.4 131.6 96.6 81.4 15.2 35.1 23.4 11.6 9.8 3.9 5.9 Dec 144.7 111.2 3.6 29.9 134.8 99.0 83.4 15.6 35.8 23.9 11.9 9.9 3.9 6.0 1957—Mar.* 147.4 113.0 4.0 30.4 137.3 101.0 84.9 16.2 36.3 24.2 12.0 10.1 3.9 6.2 Junep 150.3 115.3 4.2 30.9 140.1 103.3 86.8 16.5 36.8 24.6 12.2 10.3 4.0 6.4 Sept.** 153.5 117 7 4.5 31.3 143.1 105.6 88.7 16.9 37.5 25.1 12.4 10.4 4.0 6.4 Dec p . . 156.3 119.9 4.7 31.7 145.8 107.6 90.3 17.3 38.2 25.6 12.6 10.5 4.0 6.5 *> Preliminary. Federal agencies represent HOLC, FNMA, and VA (the bulk of the 1 Derived figures, which include negligible amount of farm loans held amounts through 1948 held by HOLC, since then by FNMA). Other by savings and loan associations. Federal agencies (amounts small and separate data not readily available 2 Derived figures, which include debt held by Federal land banks and currently) are included with individuals and others. Farmers Home Administration. Sources.—Federal Deposit Insurance Corporation, Federal Home Loan NOTE.—Figures for first three quarters of each year are Federal Reserve Bank Board, Institute of Life Insurance, Departments of Agriculture estimates. Financial institutions represent commercial banks (including and Commerce, Federal National Mortgage Association, Veterans Adnondeposit trust companies but not trust departments), mutual savings ministration, Comptroller of the Currency, and Federal Reserve. banks, life insurance companies, and savings and loan associations. MORTGAGE LOANS HELD BY BANKS i [In millions of dollars] Commercial bank loldings2 Mutual savings bank holdings3 Residential Residential End of year or quarter Other Other Total Total FH in A - - g V u A ar - - C ve o n n - - n fa o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm sured anteed tional sured anteed tional 1941 4,906 3,292 1,048 566 4,812 3,884 900 28 1945 4,772 3,395 856 521 4,208 3,387 797 24 1950 . 13,664 10,431 2,264 QfiR 8,261 7,054 1,164 44 1951 14,732 11,270 3,42i 2,921 4,929 2,458 ,004 9,916 8,595 2,567 1,726 4,303 1,274 47 1952 15,867 12,188 3,675 3,012 5,501 2,621 ,058 11,379 9,883 3,168 2,237 4,477 1,444 53 1953 16,850 12,925 3,912 3,061 5,951 2,843 ,082 12,943 11,334 3,489 3,053 4,792 1,556 53 1954 18,573 14,152 4,106 3,350 6,695 3,263 ,159 15,007 13,211 3,800 4,262 5,149 1,740 56 1955 21,004 15,888 4,560 3,711 7,617 3,819 ,297 17,457 15,568 4,150 5,773 5,645 1,831 58 1956 22,719 17,004 4,803 3,902 8,300 4,379 ,336 19,745 17,703 4,409 7,139 6,155 1,984 59 1957P 23,345 17,155 4,840 3,590 8,725 4,835 ,355 21,165 19,035 4,625 7,820 6,590 2,075 55 1956—June 21,990 16,500 4,668 3,837 7,995 4,137 ,353 18,610 16,644 4,274 6,506 5,864 1,898 68 Sept 22,500 16,860 4,760 3,890 8,210 4,282 1,358 19,225 17,218 4,350 6,840 6,028 Q44 63 Dec 22,719 17,004 4,803 3,902 8,300 4,379 1,336 19,745 17,703 4,409 7,139 6,155 1,984 59 1957 Mar . . 22,670 16,880 4,770 3,810 8,300 4,440 1,350 20,105 18,035 4,455 7,330 6,250 2,010 60 June 22,760 16,890 4,730 3,720 8,440 4,500 1,370 20,475 18,384 4,500 7,520 6,364 2,033 58 Sept.p 23,105 17,070 4,760 3,660 8,650 4,660 1,375 20,812 18,697 4,550 7 677 6 470 2,058 57 Decp ... 23,345 17,155 4,840 3,590 8,725 4,835 I 355 21,165 19,035 4,625 7,820 6,590 2,075 55 * Preliminary. based on Federal Reserve preliminary tabulation of a revised series of 1 Represents all banks in the United States and possessions. banking statistics. March and September figures are Federal Reserve 2 Includes loans held by nondeposit trust companies but excludes estimates based in part on data from National Association of Mutual holdings of trust departments of commercial banks. March and Septem- Savings Banks. ber figures are Federal Reserve estimates based on data from Member Sources.—All-bank series prepared by Federal Deposit Insurance Bank Call Report and from weekly reporting member banks. Corporation from data supplied by Federal and State bank supervisory 3 Figures for 1941 and 1945, except for the grand total, are estimates agencies, Comptroller of the Currency, and Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 REAL ESTATE CREDIT MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES [In millions of dollars] Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Year or month Total Total FHA- g V ua a r - - Other Farm Total Total FHA- g V u A ar - - Other Farm insured anteed insured anteed 1941 6 442 5 529 815 4 714 913 1945 976 6,636 5,860 1,394 4,466 776 1950 4,894 4,532 1,486 938 2,108 362 16,102 14,775 4,573 2,026 8,176 1,327 1951 5,134 4,723 1,058 1,294 2 371 411 19,314 17,787 5,257 3,131 9 399 1 527 1952 3,978 3,606 864 429 2,313 372 21,251 19,546 5,681 3,347 10,518 1,705 1953 4,345 3,925 817 455 2 653 420 23,322 21,436 6,012 3,560 11 864 1 886 1954 5,344 4,931 672 1,378 2,881 413 25,976 23,928 6,116 4,643 13,169 2,048 1955 6,623 6,108 971 1,839 3,298 515 29,445 27,172 6,395 6,074 14,703 2,273 1956 6,715 6,201 842 1,652 3 707 514 32,989 30,508 6,627 7,304 16 577 2 481 1957 5,231 4,823 686 833 3,304 408 35,230 32,640 6,766 7,750 18,124 2,590 1957_Jan 553 512 51 141 320 41 33,279 30,810 6,658 7,420 16,732 2,469 Feb 402 356 43 98 215 46 33,479 31,001 6,671 7,493 16,837 2,478 Mar 429 376 43 73 260 53 33,672 31,179 6,666 7,556 16,957 2,493 Apr 454 419 49 93 277 35 33,840 31,334 6,671 7,603 17,060 2,506 May 426 391 44 94 253 35 34,022 31,498 6,673 7,656 17,169 2,524 June 367 338 48 53 237 29 34,159 31,620 6,670 7,677 17,273 2,539 July 432 404 53 64 287 28 34,356 31,794 6,671 7,702 17,421 2,562 Aug 435 412 50 58 304 23 34,547 31,978 6,677 7,725 17,576 2,569 SeDt 408 383 82 43 258 25 34,697 32,122 6,690 7,736 17,696 2,575 Oct 435 404 67 51 286 31 34,859 32,274 6,706 7,753 17,815 2,585 Nov 362 335 60 38 237 27 34,986 32,396 6.720 7,758 17,918 2,590 Dec 528 493 96 27 370 35 35,230 32,640 6,766 7,750 18,124 2,590 1958—J£n . 525 482 122 41 319 43 35,410 32,816 6,818 7,748 18,250 2,594 NOTE.—For loans acquired, the monthly figures may not add to annual values, and because data for year-end adjustments are more complete. totals, and for loans outstanding, the end-of-December figures may differ Source.—Institute of Life Insurance; end-of-year figures are from from end-of-year figures, because monthly figures represent book value of Life Insurance Fact Book, and end-of-month figures from the Tally of ledger assets whereas year-end figures represent annual statement asset Life Insurance Statistics and Life Insurance News Data. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS NONFARM MORTGAGE RECORDING OF $20,000 OR LESS [In millions of dollars] [In millions of dollars] Loans made Loans outstanding (end of period) Total (witho B ut y s t e y a p s e o n o a f l le a n d d ju e s r tment) Y m e o a n r t o h r Total i s N c t t i r o e o u n w n c - - H c p h o u a m r s - e e Total 2 F su H in re A - d - a g n V u t A e a e r - - d ti C v o e o n n n a - - l2 Y m e o a n r t o h r Se a a a l d s ly o - n- W se a a i d t s j h o u o n s u t a - t l in l S o g a s a v n - & I c a n o n s m u ce r - - C m c o i e a m r l - - M s i u n a t g v u s - al justed i ment2 assns. panies banks banks 1941 1 379 437 581 4 578 1945. 1,913 181 1,358 5,376 1941 4,732 1,490 404 1,165 218 1945 5,650 2,017 250 1,097 217 1950 5,237 1,767 13,657 848 2,973 9,836 1951. 5 250 1 657 2,357 15,564 866 3,133 11,565 1950 16,179 5,060 1.618 3,365 1.064 1952 6,617 2,105 2,955 18,396 904 3,394 14,098 1951 16 405 5 295 I 615 3 370 I 013 1953. 7,767 2 475 3,488 21,962 ,048 3,979 16,935 1952 18,018 6,452 ,420 3,600 1,137 1954 8 969 3 076 3,846 26,194 ,172 4,721 20,301 1953 . . 19,747 7,365 ,480 3,680 327 1955 11,432 4 041 5,241 31,461 ,405 5,891 24,165 1954 22,974 8,312 ,768 4,239 1,501 1956. 10 545 3 771 A,121 35,729 ,486 6,643 27,600 1955 28,484 10,452 ,932 5,617 ,858 1957 10,402 3 562 4,708 40,119 ,643 7,013 31,463 1956 27,088 9,532 ,799 5,458 1,824 1957 24 244 9 217 472 4 264 429 1957 1957 Jan 714 245 326 35,929 ,488 6,659 27,782 Feb 709 243 318 36,195 ,493 6,682 28,020 Jan 2,056 1,942 659 134 353 117 Mar.. 842 366 36,559 ,499 6,724 28,336 Feb 2 050 1,749 644 105 308 96 Apr 899 317 391 36,963 ,508 6,774 28,681 Mar 2,011 1,937 744 115 334 99 May. 968 360 412 37,421 ,520 6,833 29,068 Apr 2,042 2,044 798 116 357 110 June... 925 319 415 37,886 ,530 6,889 29,467 May 2 031 2 144 840 125 374 121 July 969 318 462 38,280 ,545 6,904 29,831 June 2,046 2,028 795 119 363 126 Aug 1,001 331 470 38,743 ,560 6,920 30,263 July 2,047 2,211 852 130 390 142 Sept 891 292 423 39,106 1,573 6,933 30,600 Aug .... 2 056 2,208 883 132 378 137 Oct 980 341 443 39,532 ,591 6,946 30,995 Sept 2,032 2,026 796 124 354 121 Nov 768 250 358 39,835 597 6,963 31,275 Oct 1,983 2,226 855 132 395 131 Dec.. 734 324 40,119 ,643 7,013 31,463 Nov 1 946 1,877 686 117 333 117 Dec 1,924 1,851 666 125 325 113 1958 1958 Jan 723 245 308 40,369 1,651 7,048 31,670 Jan 1,782 628 111 322 98 1 Includes loans for other purposes (for repair, additions and alterations, refinancing, etc.) not shown separately. 1 Three-month moving average, seasonally adjusted by Federal Re- 2 Beginning 1958 includes shares pledged against mortgage loans. serve. Source.—Federal Home Loan Bank Board. 2 Includes amounts for other lenders, not shown separately. Source.—Federal Home Loan Bank Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REAL ESTATE CREDIT 337 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMILY PROPERTIES [In millions of dollars] [In billions of dollars] FHA -insured loans VA-guaranteed loans Home Home mortgages Proj- Prop- mortgages Government- Year or month erty underwritten Total p e N r r t o e i w e p s - p e is E r r t t o i x i n e p - g s - g m a ty g o p e r e s t- 1 p l m o r i a o m e n v n - s e t 2 - Total 3 p e N r r t o e i w e p s - p i e s E r r t t o i x i n e p - g s - y q E e u n a a d r r t o o e f r r Total t C i v o e o n n n a - - l FHA- VA- Total m- guar- 1945 665 257 217 20 171 192 sured anteed 1950 4,343 1,637 856 1,157 694 3,072 1,865 1,202 1951 3,220 1 216 713 582 708 3,614 2,667 942 1945 18 6 4 3 4 1 .2 14.3 1952 3,113 969 974 322 848 2,719 1,823 890 1953 3,882 1,259 1,030 259 1,334 3,064 2,044 1,014 1950 45 2 18 9 8 6 10.3 26.3 1954 3,066 1,035 907 232 891 4,257 2,686 1,566 1951 51 7 22 9 9 7 13 2 28 8 1955 3,807 1,269 1,816 76 646 7,156 4,582 2,564 1952 58 5 25 4 10 8 14 6 33 1 1956 3,461 1,133 1,505 130 692 5,868 3,910 1,948 1953 66.1 28.1 12.0 16.1 38.0 1957 3,715 880 1,371 595 869 3,761 2,890 863 1954 .. . 75 7 32 1 12 8 19 3 43 6 1955 88 2 38 9 14 3 24 6 49 3 1957 Jan 300 87 107 29 77 555 393 162 1956 99 o 43 9 15 5 28 4 55 1 Feb 266 74 85 50 56 431 316 113 1957*> 107 6 47 2 16 5 30 7 60.4 Mar 317 75 86 96 60 380 285 94 Apr 264 68 90 41 66 350 271 78 1956—June 93.7 41.3 15.0 26.3 52.4 M!ay 292 60 94 80 58 286 218 68 Sept 96.6 42.5 15.2 27.3 54.1 June . . 247 60 104 18 65 276 213 62 Dec. 99 0 43 9 15 5 28 4 55 1 July 333 67 124 76 65 268 206 62 340 63 122 67 88 251 193 58 1957—Mar. P.... 101.0 45.1 15.7 29.4 55.9 Sept 273 57 116 14 85 295 228 66 June**. ... 103.3 45.9 15.9 30.0 57.4 Oct 422 87 145 79 111 280 229 50 Sept.P 105.6 46.5 16.1 30.4 59.1 Nov 329 86 145 33 65 213 182 30 Dec? 107.6 47.2 16.5 30.7 60.4 Dec 332 97 152 12 71 176 155 20 1958—Jan 418 120 186 56 55 160 142 18 P Preliminary. NOTE.—For total debt outstanding, figures for first three quarters of year are Federal Reserve estimates. 1 Monthly figures do not reflect mortgage amendments included in annual totals. For conventional, figures are derived. 2 These loans are not ordinarily secured by mortgages. 3 Includes a small amount of alteration and repair loans, not shown separately; only such Sources.—Federal Home Loan Bank Board, Federal loans in amounts of more than $1,000 need be secured. Housing Administration, Veterans Administration, and Federal Reserve. NOTE.—FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amount of loans closed. Figures do not take account of principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. Sources.—Federal Housing Administration and Veterans Administration. FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY i FEDERAL HOME LOAN BANK LENDING [In millions of dollars] [In millions of dollars] Mortgage Advances outstanding Mortgage holdings transactions Com- (end of period) (during mit- Ad- Repay- End of year period) ments Year or month vances ments or month Total F su H in re A - d - a g V n u t A e a e r - - d c P ha u s r e - s Sales bu du r in s s-- ed Short- L te o r n m g 2 - 1945 278 213 195 176 19 1950 1,347 169 1,177 1,044 469 485 1950 675 292 816 547 269 1951 1,850 204 1,646 677 111 239 1951 423 433 806 508 298 1952 2,242 320 1,922 538 56 323 1952 586 528 864 565 299 1953 2,462 621 1,841 542 221 638 1953 728 640 952 634 317 1954 2,434 802 1,632 614 525 476 1954 734 818 867 612 255 1955 2,615 901 1,714 411 62 76 1955 1,251 702 1,417 991 426 1956 . .. 3,047 978 2 069 609 5 360 1956 745 934 1,228 798 430 1957 3,974 1.237 2,737 1,119 2 764 1957 1,116 1,079 1,265 731 534 1957 Jan 3,182 ,009 2,173 147 411 1957—Feb.. 30 91 976 601 375 Feb 3,295 1,026 2,269 129 436 Mar. 68 83 961 563 398 Mar 3,409 1,053 2,356 127 483 Apr. 73 62 971 544 427 Apr 3 491 ,074 2 417 95 493 May 73 52 993 559 434 May 3,551 1,087 2,464 75 1 518 June 135 48 1,079 614 465 June 3,605 1,100 2,505 69 1 525 July. 131 171 1,040 638 402 July 3,654 1,112 2,541 83 626 Aug. 83 50 1,072 663 409 Aug 3,718 1,132 2,586 78 680 Sept. 96 49 1,119 688 431 Sect 3 783 1,152 2,631 82 712 Oct.. 83 70 1,131 686 445 Oct 3,849 1,170 2,679 79 726 Nov. 74 62 1,143 689 454 Nov 3,909 1,197 2,712 75 717 Dec. 196 74 1,265 731 534 Dec 3,974 .237 2,737 80 764 1958—Jan.. 58 417 906 527 379 1958 Jan 4,038 1,283 2,755 77 786 Feb., 41 158 790 451 339 1 Operations beginning Nov. 1, 1954, are on the basis of FNMA's new 1 Secured or unsecured loans maturing in one year or less. charter, under which it maintains three separate programs: secondary 2 Secured loans, amortized quarterly, having maturities of more than market, special assistance, and management and liquidation. one year but not more than ten years. Source.—Federal National Mortgage Association. Source.—Federal Home Loan Bank Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 CONSUMER CREDIT CONSUMER CREDIT, BY MAJOR PARTS [Estimated amounts of short- and intermediate-term credit outstanding, in millions of dollars] Instalment credit Noninstalment credit End of year or month Total Total m p A a o u p b t e o i r l - e 1 co p g O n a o s t p o h u e d e m r s r i er e a r n R l n d o i e z a p m a n a t s o i i 2 o r d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e e s n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950 21,395 14,703 6,074 4 799 1,016 2,814 6,692 1,821 3,291 1 580 1951 22,617 15,294 5,972 4,880 1,085 3,357 7,323 1,934 3,605 1,784 1952 27,401 19,403 7,733 6 174 J.185 4,111 7,998 2,120 4,011 1,867 1953 31,243 23,005 9,835 6,779 ,610 4,781 8,238 2,187 4,124 1,927 1954 32,292 23,568 9,809 6,751 ,616 5,392 8,724 2,408 4,308 2,008 1955 38,670 28,958 13,472 7,634 ,689 6,163 9,712 3,002 4,579 2,131 1956 . 42,097 31,827 14,459 8,510 ,895 6,963 10,270 3,253 4,735 2,282 1957 . r44,776 r34,105 15,496 r8,687 ,984 7,938 10,671 3,502 4,760 2,409 1957 Jan 41,138 31,568 14,410 8,305 872 6,981 9,570 3,199 4,111 2,260 Feb 40,738 31,488 14,432 8,160 ,859 7,037 9,250 3,273 3,690 2,287 Mar 40,735 31,524 14,528 8,043 ,856 7,097 9,211 3,370 3,534 2,307 Apr 41,247 31,786 14,691 8,017 ,862 7,216 9,461 3,374 3,735 2,352 May 41,937 32,158 14,883 8,081 ,886 7,308 9,779 3,582 3,834 2,363 June 42,491 32,608 15,127 8,165 905 7,411 9,883 3,530 3,948 2,405 July 42,592 32,968 15,329 8,189 1,921 7,529 9,624 3,406 3,810 2,408 Aus. 43,133 33,303 15,490 8,229 1,954 7,630 9,830 3,458 3,957 2,415 Sept 43,270 33,415 15,556 8,228 1,969 7,662 9,855 3,493 3,942 2,420 Oct 43,274 33,504 15,579 8,236 1,988 7,701 9,770 3,405 3,991 2,374 Nov 43,530 33,596 15,542 8,300 1,996 7,758 9,934 3,458 4,135 2,341 Dec r44,776 r34,105 15,496 r8,687 L 984 7,938 10,671 3,502 4,760 2,409 1958—Jan 43,966 33,737 15,326 8,499 1,963 7,949 10,229 3,514 4,264 2,451 r Revised. NOTE.—Monthly figures for the period December 1939 through 1947 1 Represents all consumer instalment credit extended for the purpose and a general description of the series are shown on pp. 336-54 of the, of purchasing automobiles and other consumer goods, whether held by BULLETIN for April 1953; monthly figures for 1948-56, in the BULLETINS retail outlets or financial institutions. Includes credit on purchases by for October 1956, pp. 1035-42, and December 1957, pp. 1420-22. individuals of automobiles or other consumer goods that may be used A detailed description of the methods used to derive the estimates may in part for business. be obtained from Division of Research and Statistics. 2 Represents repair and modernization loans held by financial institutions; holdings of retail outlets are included in other consumer goods paper. INSTALMENT CREDIT, BY HOLDER [Estimated amounts outstanding, in millions of dollars] Financial institutions} Retail outlets Total E o n r d m of o n y t e h ar i c m n r s e e t d n a i l t t - Total m b C e a o r n c m k i s a - l f p i S c n a o a a n m l n i e e c s - s e u C n r i e o d n i s t p f s i c C a n u o n a o m m i n n e e c - - s r e 1 Other1 Total D s m t e o p e r a e n r s t t 2 - F s t t u u o r r r n e e i s - H s a h a t o p o n o u p r c l s l e d e i e s - - d m A ea o u l b e to i r l s - e 3 Other 1939 4 503 3 065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941 6,085 4,480 1,726 1,797 198 759 1,605 320 496 206 188 395 1945 2 462 1,776 745 300 102 629 686 131 240 17 28 270 1950 14,703 11,805 5,798 3,711 590 1,286 420 2,898 746 827 267 287 771 1951 15,294 12,124 5,771 3,654 635 1,555 509 3,170 924 810 243 290 903 1952 19,403 15,581 7,524 4,711 837 1,866 643 3,822 1,107 943 301 389 L082 1953 23,005 18,963 8,998 5,927 1,124 2,137 777 4,042 1,064 1,004 377 527 ,070 1954 23,568 19,450 8,796 6,144 1,342 2,257 911 4,118 1,242 984 377 463 ,052 1955 28,958 24,450 10,601 8,443 1,678 2,656 ,072 4,508 1,511 1,044 365 487 1,101 1956 31,827 27,084 11,707 9,100 2,014 3,056 ,207 4,743 1,408 1,187 377 502 ,269 1957 r34,105 29,375 12,714 9,573 2,472 3,332 1,284 r4,730 rl,393 1,146 374 529 1,288 1957—Jan 31,568 26,974 11,638 9,077 2,011 3,048 1,200 4,594 1,387 1,139 364 499 ,205 Feb 31,488 27,008 11,662 9,035 2,039 3,058 1,214 4,480 1,351 1,115 362 499 I 153 Mar 31,524 27,148 11,736 9,048 2,076 3,063 1,225 4,376 1,304 1,090 356 501 1,125 Apr . 31,786 27,544 11,981 9,104 2,127 3,105 1,227 4,242 1,176 1,075 354 505 1,132 May 32,158 27,864 12,143 9,176 2,167 3,123 1,255 4,294 1,229 1,077 355 510 I 123 June 32,608 28,263 12,323 9,300 2,227 3,155 1,258 4,345 1,249 1,077 359 518 ,142 Julv . . 32 968 28,726 12,508 9,476 2,284 3,209 1,249 4,242 1,144 L 072 361 525 L 140 Aug 33,303 29,014 12,607 9,565 2,344 3,234 1,264 4,289 1,161 1,083 360 530 I 155 Sept 33,415 29,128 12,656 9,598 2,377 3,231 1,266 4,287 1,167 1,077 363 533 1,147 Oct 33,504 29,241 12,749 9,585 2,415 3,229 1,263 4,263 1,134 1,080 365 533 1,151 Nov 33,596 29,239 12,717 9,564 2,439 3,248 1,271 4,357 1,199 1,092 365 531 1,170 Dec r34,105 29,375 12,714 9,573 2,472 3,332 I 284 r4,730 1,393 1 146 374 529 I 288 1958—Jan 33,737 29,125 12,611 9,464 2,446 3,320 1,284 4,612 1,381 1,108 367 522 1,234 r Revised. 2 Includes mail-order houses. 1 Consumer finance companies included with "other" financial institu- 3 Represents automobile paper only; other instalment credit held by tions until September 1950. automobile dealers is included with "other" retail outlets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 339 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS, INSTALMENT CREDIT HELD BY SALES FINANCE BY TYPE OF CREDIT COMPANIES, BY TYPE OF CREDIT [Estimated amounts outstanding, in millions of dollars] [Estimated amounts outstanding, in millions of dollars] E o n r d m o o f n y t e h ar i c T m n r s o e e t t d n a a i l t l t - ch P A a u s u r e t - p d o a m pe o D r b ir il e e ct g O p c o a o t o p h n d e e - r r s R e m l r o t a e n i a p n o o i n z d a d n a s i - r - l P oa er n - s E o n r d m of o n y t e h ar i c T m n r o s e e t t d n a a i l t l t - m A pa o u p b t e o il r - e s g p O c u o a o t m o p h n d e e e - r s r r m i R z lo o a a e d a n p ti n e a d o r s i n n r - s l P o o a e n r n a - s l 1939 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945 300 164 24 58 54 1945.. . 745 66 143 114 110 312 1950 3,711 2,956 532 61 162 1950 5 798 1,177 1,294 1,456 834 1,037 1951 3,654 2,863 452 63 276 1951 5,771 1,135 1,311 1,315 888 1,122 1952 4,711 3,630 680 60 341 1952 7 524 1 633 1,629 1,751 ,137 1,374 1953 5,927 4,688 816 46 377 1953 8,998 2,215 1,867 2,078 ,317 1,521 1954 6,144 4,870 841 31 402 1954.. 8,796 2,269 1,668 1,880 ,303 1,676 1955 8,443 6,919 1,034 25 465 1955 10,601 3,243 2,062 2,042 ,338 1,916 1956 9,100 7,283 1,227 23 567 1956 11,707 3,651 2,075 2,394 ,469 2,118 1957 9,573 7,470 1,413 20 670 1957 12,714 4,054 2,335 2,435 ,527 2,363 1957—Jan.. 9,077 7,222 1,261 23 571 1957—Jan 11 638 3,653 2,092 2,313 ,452 2,128 Feb.. 9,035 7,190 1,247 23 575 Feb 11,662 3,680 2,109 2,295 ,438 2,140 Mar. 9,048 7,190 1,255 22 581 Mar 11 736 3,723 2,149 2,280 ,432 2,152 Apr.. 9,104 7,212 1,279 22 591 Apr 11,981 3,789 2,200 2,363 ,436 2,193 May, 9,176 7,272 1,285 22 597 May 12,143 3,851 2,246 2,368 ,450 2,228 June. 9,300 7,376 1,296 22 606 June 12,323 3,921 2,282 2,395 ,466 2,259 July. 9,476 7,466 1,369 22 619 July 12,508 3,976 2,310 2,456 ,480 2,286 Aug. 9,565 7,532 1,384 22 627 Aue 12,607 4 026 2,330 2,434 ,503 2,314 Sept. 9,598 7,557 1,389 22 630 Sept 12,656 4,050 2,334 2,437 ,514 2,321 Oct.. 9,585 7,537 1,390 23 635 Oct 12,749 4,082 2,334 2,471 ,531 2,331 Nov. 9,564 7,510 1,388 21 645 Nov 12,717 4,067 2,333 2,448 .537 2,332 Dec. 9,573 7,470 1,413 20 670 Dec 12,714 4,054 2,335 2,435 1,527 2,363 1958—Jan.. 9,464 7,363 1,404 20 677 1958—Jan 12,611 4,016 2,330 2,378 1,508 2,379 INSTALMENT CREDIT HELD BY FINANCIAL INSTITUTIONS NONTNSTALMENT CREDIT, BY HOLDER OTHER THAN COMMERCIAL BANKS AND SALES [Estimated amounts outstanding, in millions of dollars] FINANCE COMPANIES, BY TYPE OF CREDIT [Estimated amounts outstanding, in millions of dollars] Financial Retail institutions outlets (single-pay- (charge E o n r d m of o n y t e h ar i c T m n r s o e e t t d n a a i l t l t - m A pa o u p b t e o il r - e s g O p c u o a o t m o p h n d e e e - r r s r m R iz l o e o a a d p t n a i e a d n o r i n r s n- s l P o o e a n r n a - s l E o n r d m of o n y t e h ar i c T m n n r s o o e e t n t d n a a - i l t l t - C m c m o i e a m e r l n - - t lo O an th s) er p m D a e a e r n - c t- t coun O ts t ) her S c e r r e v d i i c t e banks stores i 1939 789 81 24 15 669 1941. 957 122 36 14 785 1945 731 54 20 14 643 1939 2,719 625 162 236 1,178 518 1941... 3,087 693 152 275 1,370 597 1950 2,296 360 200 121 1,615 1945 3,203 674 72 290 1,322 845 1951. 2,699 373 233 134 1,959 1952 3,346 452 310 188 2,396 1950 6,692 1,576 245 650 2,641 1,580 1953 4,038 538 370 247 2,883 1951 7,323 1,684 250 698 2,907 1,784 1954 4,510 539 375 282 3,314 1952 7,998 1,844 276 728 3,283 1,867 1955 5,406 761 537 326 3,782 1953 8,238 1,899 288 772 3,352 1,927 1956 6,277 948 648 403 4,278 1954 8,724 2,096 312 793 3,515 2,008 1957 7,088 1,108 638 437 4,905 1955.. . . 9,712 2,635 367 862 3,717 2,131 1956 10,270 2,843 410 893 3,842 2,282 1957__Jan 6,259 944 636 397 4,282 1957 10,671 3,095 407 876 3,884 2,409 Feb. 6,311 954 637 398 4,322 A M p a r r 6 6 , , 4 3 5 6 9 4 9 9 8 6 5 5 6 6 * 3 3 3 8 4 4 0 0 4 2 4 4, , 4 3 3 6 2 4 1957_ F ja e n b 9 9 , , 2 5 5 7 0 0 2 2 , , 8 8 5 2 1 9 4 3 2 7 2 0 7 61 2 1 3 3 3 , , 0 3 7 8 9 8 2 2 , , 2 2 8 6 7 0 May 6,545 1,004 644 414 4,483 Mar 9,211 2,874 496 566 2,968 2,307 June 6,640 1,030 647 417 4,546 Apr 9,461 2,920 454 592 3,143 2,352 July 6,742 1,052 647 419 4,624 May 9,779 2,996 586 593 3,241 2,363 Aug. 6,842 1,072 652 429 4,689 June 9,883 3,029 501 579 3,369 2,405 Sept 6,874 1,082 648 433 4,711 July 9,624 2,996 410 533 3,277 2,408 Oct 6,907 [,093 645 434 4,735 Aug 9,830 3,002 456 535 3,422 2,415 Nov 6,958 1,101 638 438 4,781 Sept 9,855 3,023 470 588 3,354 2,420 Dec 7,088 1,108 638 437 4,905 Oct 9,770 3,022 383 612 3,379 2,374 Nov 9,934 3,028 430 658 3,477 2,341 1958—Jan 7,050 1,095 627 435 4,893 Dec 10,671 3,095 407 876 3,884 2,4Q9 1958—Jan 10,229 3,054 460 725 3,539 2,451 NOTE.—Institutions represented are consumer finance companies, credit unions, industrial loan companies, mutual savings banks, savings and loan associations, and other lending institutions holding consumer 1 Includes mail-order houses. instalment loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 CONSUMER CREDIT INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT [Estimates of short- and intermediate-term credit, in millions of dollars. The terms "adjusted" and "unadjusted" refer to adjustment of monthly figures for seasonal variation and differences in trading days] Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a ir ti o a n n d loans Personal loans Year or month Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Adjusted U ju n s a te d d - Adjusted U ju n st a e d d - Extensions 1950 21,558 8,530 7,150 835 5,043 1951 . . 23 576 8 956 7 485 841 6,294 1952 29,514 11,764 9,186 1,217 7,347 1953 31,558 12,981 9,227 1,344 8,006 1954 31,051 11,807 9,117 1,261 8,866 1955 39,039 16,745 10,634 1,388 10,272 1956 40,063 15,563 11,590 1,568 11,342 1957 r42,411 16,681 rl 1,599 1 518 12 613 1957—Jan 3,473 3,090 1.420 1,258 932 802 123 96 998 934 Feb 3,509 2,976 1,407 1,215 963 763 129 101 1,010 897 Mar 3,426 3 347 1,374 1,380 931 846 123 111 998 1 010 Apr 3,470 3,594 1,371 1,468 937 901 123 123 1,039 1,102 May 3,535 3,748 ,363 1,513 995 1,016 134 147 [,043 1,072 June 3,547 3,674 1,356 1,494 1,007 998 128 133 ,056 1,049 July. . 3,599 3,837 1,381 1,563 999 995 130 143 1,089 1,136 Aug 3,591 3,704 1,355 1 467 1,027 1,022 137 150 1,072 1 065 Sept 3,546 3,388 [,392 1,364 973 927 127 138 ,054 959 Oct.... 3 541 3,545 1,435 1 404 912 976 126 141 [ 068 1,024 Nov 3,559 3,439 [,404 1,250 964 1,020 120 123 1,071 1,046 Dec. '3,615 '4,069 421 1,305 '959 '1,333 118 112 115 1,319 1958—jan 3,504 3,108 1,346 1,190 940 799 131 102 1,087 1,017 Repayments 1950 18 445 7 011 6 057 717 4 660 1951 ... 22,985 9,058 7 404 772 5,751 1952 25,405 10,003 7,892 917 6,593 1953 .. 27,956 10,879 8 622 1,119 7 336 1954 30,488 11,833 9,145 1,255 8,255 1955 33 649 13 082 9 751 1 315 9 501 1956 37,194 14,576 10,714 1,362 10,542 1957 40,133 15,644 11,422 1,429 11,638 1957 Jan.. . 3,292 3,349 1,312 1.307 942 1 007 117 119 921 916 Feb 3,257 3,056 1,284 ,193 933 908 120 114 920 841 Mar 3,255 3,311 1,272 1,284 935 963 113 114 935 950 Apr 3,284 3,332 1,294 ,305 908 927 117 117 965 983 May 3,313 3,376 1,305 1,321 919 952 121 123 968 980 June 3,339 3,224 1,289 [,250 951 914 120 114 979 946 July 3,382 3,477 1,317 ,361 964 971 125 127 976 1,018 Aug 3,343 3,369 1,276 1,306 976 982 117 117 974 964 Sept 3,418 3,276 1,318 1,298 990 928 124 123 986 927 Oct 3,358 3,456 1,317 1,381 945 968 118 122 978 985 Nov 3,394 3,347 1,292 1,287 981 956 113 115 1,008 989 Dec 3,498 3,560 1,368 [.351 978 946 124 124 1,028 1,139 1958—Jan 3,421 3,476 1,368 1,360 925 987 120 123 1,008 1,006 Change in outstanding credit1 1950 + 3,113 + 1,519 + 1,093 + 118 + 383 1951 + 591 -102 + 81 +69 +543 1952 +4,109 + 1,761 +1,294 + 300 +754 1953 . . .. + 3,602 +2,102 +605 +225 +670 1954 +563 — 26 — 28 +6 +611 1955 +5,390 + 3,663 +883 +73 +771 1956 +2,869 +987 + 876 +206 +800 1957 '+2,278 + 1,037 '+177 +89 +975 1957—Jan + 181 -259 + 108 -49 -10 -205 +6 -23 +77 + 18 Feb. +252 -80 + 123 +22 +30 -145 +9 -13 +90 +56 Mar + 171 +36 + 102 +96 -4 -117 + 10 -3 +63 +60 Apr + 186 +262 +77 + 163 +29 -26 +6 +6 +74 + 119 May +222 +372 +58 + 192 +76 +64 + 13 +24 +75 +92 June +208 +450 +67 +244 +56 +84 +8 + 19 +77 + 103 July +217 +360 +64 +202 +35 +24 +5 + 16 + 113 + 118 Aug. . +248 +335 +79 + 161 +51 +40 +20 + 33 +98 + 101 Sept + 128 + 112 +74 +66 -17 -1 + 3 + 15 +68 + 32 Oct.. + 183 +89 + 118 +23 -33 +8 +8 + 19 +90 +39 Nov + 165 +92 + 112 -37 -17 +64 +7 + 8 +63 +57 Dec. '+117 '+509 +55 -46 r-19 '+387 -6 -12 +87 + 180 1958 Jan +83 -368 -22 -170 + 15 -188 + 11 -21 +79 + 11 r Revised. in the BULLETIN for January 1954, pp. 9-17. Estimates of instalment * Obtained by subtracting instalment credit repaid from instalment credit extended and repaid are based on information from accounting credit extended. records of retail outlets and financial institutions and often include charges NOTE.—Monthly figures for 1940-54 are shown on pp. 1043-54 of incurred under the instalment contract. Renewals and refinancing of the BULLETIN for October 1956; for 1955-56, in the BULLETIN for loans, repurchases and resales of instalment paper, and certain other December 1957, pp. 1420-22. transactions may increase the amount of both credit extended and credit A discussion of the composition and characteristics of the data and repaid without adding to the amount of credit outstanding. a description of the methods used to derive the estimates are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 341 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER [Estimates of short- and intermediate-term credit, in millions of dollars. The terms "adjusted" and "unadjusted" refer to adjustment of monthly figures for seasonal variation and differences in trading days] Total Commercial banks Sa c l o e m s p fi a n n a i n e c s e Oth in er s ti f t i u n t a i n o c n i s al Retail outlets Year or month Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Adjusted U ju n st a e d d - Extensions 1950 21,558 8,135 5,098 3,826 4,499 1951 23,576 8,358 5,467 4,788 4,963 1952 29,514 11,123 6,982 5,659 5,750 1953 31,558 12,099 7,560 6,375 5,524 1954 31,051 11,267 7,260 6,983 5,541 1955 39,039 14,109 10,200 8,449 6,281 1956 40,063 14,387 9,600 9,474 6,602 1957 '42,411 15,188 10,200 10,453 '6,570 1957 Jan.i 3,473 3,090 1.276 1,204 903 785 817 740 477 361 Feb 3,509 2,976 1,262 1.108 831 691 841 749 575 428 Mar 3,426 3,347 1,208 ,212 852 821 836 843 530 471 Apr. i 3,470 3,594 1,236 ,348 845 855 865 901 524 490 M^ay . 3,535 3,748 1,245 ,362 832 886 877 904 581 596 June 3,547 3,674 1,268 ,333 830 904 870 871 579 566 July 1 3,599 3,837 1,291 ,382 890 1,022 905 946 513 487 Aug 3,591 3,704 1,284 ,320 819 903 907 906 581 575 Sept 3,546 3,388 1,289 ,239 834 829 869 797 554 523 Oct i 3,541 3,545 1,325 ,302 856 860 871 850 489 533 Nov 3,559 3,439 1.252 .150 835 779 893 877 579 633 Dec '3,615 '4,069 1,252 1,228 873 865 902 1,069 '588 '907 1958—Jan 1 3,504 3,108 1,247 1,174 828 720 875 793 554 421 Repayments 1950 18,445 6,776 4,331 3,404 3,934 1951 22,985 8,385 5,524 4,385 4,691 1952 25,405 9,370 5,925 5,012 5,098 1953 27,956 10,625 6,344 5,683 5,304 1954 30,488 11,469 7,043 6,511 5,465 1955 33,649 12,304 7,901 7,553 5,891 1956 37,194 13,320 8,943 8,603 6,328 1957 40,133 14,252 9,727 9,642 6,512 1957 Jan i 3,292 3,349 1.177 1.198 821 808 767 758 527 585 Feb 3,257 3,056 1,162 1,084 793 733 757 697 545 542 Mar 3,255 3,311 1,141 1,138 791 808 778 790 545 575 Apr i . 3,284 3,332 1,155 1,187 801 799 793 806 535 540 May 3,313 3,376 1,168 1,200 817 814 805 818 523 544 June 3,339 3,224 1,196 [,153 805 780 800 776 538 515 July 1 3,382 3,477 1,189 1,242 831 846 817 844 545 545 Aus 3,343 3,369 1,196 1,221 797 814 819 806 531 528 Sept 3,418 3,276 1,228 1,190 808 796 815 765 567 525 Oct i 3,358 3,456 1,200 1,226 820 873 810 817 528 540 Nov 3,394 3,347 1.208 1,182 795 800 838 826 553 539 Dec 3,498 3,560 1^232 1.231 848 856 843 939 575 534 1958 Jan i 3,421 3,476 1,216 1,237 844 829 837 831 524 579 Change in outstanding credit2 1950 4-3,113 + 1,359 +767 +422 +565 1951 4-591 -27 +403 +272 1952 +4,109 + 1,753 + 1,057 +647 +652 1953 + 3,602 + 1,474 + 1,216 +692 +220 1954 4-563 -202 +217 +472 +76 1955 + 5,390 + 1,805 +2,299 +896 + 390 1 19 9 5 5 7 6 '4 + - 2 2 ,2 86 78 9 c+ + 1 1 , , 0 1 0 0 7 6 + + 6 4 5 7 7 3 + + 8 8 7 1 1 1 +235 1957—Jan.* 4-181 -259 4-24 -69 + 82 -23 +50 -18 +25 -149 Feb 4-252 -80 + 100 +24 4-38 -42 + 84 + 52 + 30 -114 Mar + 171 + 36 +67 +74 +61 + 13 + 58 + 53 -15 -104 Apr ! + 186 +262 + 165 +245 +44 +56 +72 +95 -95 -134 May 4-222 + 372 +77 + 162 + 15 +72 +72 +86 + 58 +52 June +208 +450 +72 + 180 +25 + 124 +70 +95 +41 +51 July i +217 + 360 + 147 + 185 +59 + 176 +88 + 102 -77 -103 Aug +248 + 335 + 88 +99 +22 +89 +88 + 100 +50 +47 Sept + 128 + 112 + 61 +49 +26 + 33 +54 + 32 -13 -2 Oct i + 183 + 89 + 142 +93 + 36 -13 +61 + 33 -56 -24 Nov + 165 +92 +44 -32 +40 -21 +55 +51 +26 +94 Dec '4-117 '+509 +20 -3 +25 +9 +59 + 130 '+13 '+373 1958 Jan i + 83 -368 -9 -103 -16 -109 + 38 -38 +70 -118 c Corrected. r Revised. December 1957, pp. 1420-22. 1 Data on extensions and repayments for commercial banks and retail A discussion of the composition and characteristics of the data and outlets have been adjusted to avoid duplications resulting from large a description of the methods used to derive the estimates are shown transfers of other consumer goods paper. As a result, the differences in the BULLETIN for January 1954, pp. 9-17. Estimates of instalment between extensions and repayments for these institutions do not equal the credit extended and repaid are based on information from accounting changes in outstanding credit. records of retail outlets and financial institutions and often include charges 2 Obtained by subtracting instalment credit repaid from instalment incurred under the instalment contract. Renewals and refinancing of credit extended, except as indicated in note 1. loans, repurchases and resales of instalment paper, and certain other trans- NOTE.—Monthly figures for 1940-54 are shown on pp. 1043-54 actions may increase the amount of both credit extended and credit repaid without adding to the amount of credit outstanding. of the BULLETIN for October 1956; for 1955-56, in the BULLETIN for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 BUSINESS ACTIVITY SELECTED BUSINESS INDEXES [Indexes, 1947-49= 100. The terms "adjusted" and "unadjusted" refer to adjustment of monthly figures for seasonal variation] In ( d p u h s y t s r i i c a a l l p v r o o l d u u m c e ti ) o * n aw C a o r c d n o e s n d t t r r u ( a c v c t a t i s l o u n e) * Employment and pa:pro Us2 Depart- Wholeor Y m e o a n r th Total Tot M al anu r D a f b a u c l - e ture N r s a d o b u n l - e - M er i a n ls - Total R d t e e ia s n l i - - o A th l e l r N p m t a c e u l g o m u o e r r l a n n y i - - l - t - - pr E o M m d m a u p e n c l n u t o t i f y o a - n c t w ur o i r n P r k g o a e l y r ls s - F i l c n r o e a g a i r s d g - * - ht v s ( m s r a a t e l l o e e t u a r n s e e i t * ) l p s C r u i o m c n e e - s r 2 m p c s r o a o ic d l m e e i s t s - y 2 Ad- Unad- Ad- Ad- Ad- Ad- Ad- Ad- Ad- Ad- Ad- Unad- Unad- Ad- Ad- Unad- Unadjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed 1919 39 38 38 37 45 34 26 39 61.3 68.7 31.1 90 27 74 0 1920 41 39 42 36 53 34 18 45 61 9 69.0 37 1 98 32 85 7 1921 31 30 24 34 42 30 27 32 55 2 52.8 24.0 83 30 76 4 1922 . ... 39 39 37 40 45 43 41 43 58.5 58.4 25.7 92 30 71.6 1923 47 45 47 44 62 45 49 42 64 3 66.9 32 6 107 34 72 9 1924 44 43 43 42 57 51 57 46 63.5 62.1 30.4 105 34 73.1 1925 49 48 49 46 59 66 75 59 65 2 64 2 32 1 110 36 75 o 1926 51 50 52 48 63 69 73 67 67 5 65.5 33 0 115 37 75 6 65.0 1927 51 50 49 50 64 69 71 68 67 9 64.1 32.4 111 37 74 2 62.0 1928 53 52 53 51 63 73 76 70 67.9 64.2 32.8 112 37 73.3 62.9 1929 59 58 60 56 68 63 52 70 71 0 68.3 35.0 115 38 73 3 61.9 1930 49 48 45 51 59 49 30 62 66.6 59.5 28.3 99 35 71.4 56.1 1931 40 39 31 48 51 34 22 41 60.3 50.2 21.5 79 32 65.0 47.4 1932 31 30 19 42 42 15 8 20 53 4 42.6 14.8 59 24 58 4 42 A 1933 37 36 24 48 48 14 7 18 53.6 47.2 15.9 62 24 55 3 42.8 1934 40 39 30 49 51 17 7 24 58 8 55.1 20 4 67 27 57 2 48.7 1935 47 46 38 55 55 20 13 25 61.3 58.8 23.5 69 29 58.7 52.0 1936 56 55 49 61 63 30 22 35 65.8 63.9 27.2 81 32 59.3 52.5 1937 61 60 55 64 71 32 25 36 70 2 70.1 32.6 84 35 61 4 56.1 1938 48 46 35 57 62 35 27 40 66.1 59.6 25.3 67 32 60 3 51.1 1939 58 57 49 66 68 39 37 40 69.3 66.2 29.9 76 35 59.4 50.1 1940 67 66 63 69 76 44 43 44 73 3 71.2 34.0 83 37 59 9 51 1 1941 87 88 91 84 81 66 54 74 82 8 87.9 49.3 98 44 62 9 56 8 1942 106 110 126 93 84 89 49 116 90.9 103.9 72.2 104 49 69 7 64.2 1943 127 133 162 103 87 37 24 45 96 3 121.4 99 0 104 56 74 0 67 0 1944 125 130 159 99 93 22 10 30 95.0 118.1 102.8 106 62 75 2 67.6 1945 107 110 123 96 92 36 16 50 91 5 104.0 87 8 102 70 76 9 68 8 1946 90 90 86 95 91 82 87 79 94 4 97.9 81.2 100 90 83 4 78 7 1947 100 100 101 99 100 84 86 83 99.4 103.4 97.7 108 98 95 5 96 4 1948 104 103 104 102 106 102 98 105 101 6 102 8 105 1 104 104 102 8 104 4 1949 97 97 95 99 94 113 116 111 99 0 93.8 97.2 88 99 101 8 99 2 1950 112 113 116 111 105 159 185 142 102.3 99.6 111.7 97 107 102.8 103.1 1951 120 121 128 114 115 171 170 172 108.2 106.4 129.8 101 112 111 0 114 8 1952 124 125 136 114 114 183 183 183 110.4 106.3 136.6 95 114 113.5 111.6 1953 134 136 153 118 116 192 178 201 113.6 111.8 151.4 96 118 114 4 110.1 1954 125 127 137 116 111 215 232 204 110 7 101.8 137.7 86 118 114 8 110 3 1955 139 140 155 126 122 261 280 248 114.4 105.6 152.9 95 128 114.5 110.7 1956 143 144 159 129 129 268 271 266 118.6 106.7 161.4 97 135 116 2 114.3 1957 143 145 160 130 128 n a. n.a. 274 120 1 104.5 162 7 90 136 1957 Feb 146 148 r147 164 131 132 n.a. n.a. 323 120.2 106.4 106.0 165.0 96 136 118.7 117.0 Mar 145 148 147 163 131 132 n.a. n.a. 281 120.1 106.0 105.8 164.3 98 137 118 9 116 9 Apr 144 145 145 160 130 131 n.a. n.a 286 120.2 105.9 104.8 161.5 91 131 119.3 117.2 May 144 143 145 160 131 130 n.a. n.a 259 120.5 105.7 104.2 161.0 90 135 119.6 117.1 June r145 145 r147 163 131 127 n a n.a 267 120.6 105.3 104.7 163 8 90 138 120 2 117 4 July 145 135 147 162 '131 128 n.a. n.a 252 120.7 104.9 103.4 160.5 85 138 120 8 118 2 Aug 145 145 147 163 132 129 n.a. n.a 246 120.8 104.4 105.3 164.7 92 144 121.0 118.4 Sept 144 146 146 160 131 129 n a n.a 251 120.4 103.3 105.0 164 7 87 136 121 1 118 0 Oct r142 146 143 156 130 127 n.a. n.a 262 120.0 102.8 104.2 162.6 86 129 121 1 117 8 Nov 139 141 141 154 128 123 n.a. n.a 269 119.4 101.8 102.7 160.9 85 133 121.6 118.1 Dec 135 134 137 146 127 122 n.a. n.a 298 118.8 100.3 100.7 157.4 83 138 121.6 118.5 1958 Jan 133 132 134 143 126 121 n.a n.a. n.a. 118.3 98.1 97.4 149 2 82 ^131 122 3 118 8 Feb »130 *131 *131 *137 *>125 z-119 HX6.9 ^95.6 *>95.2145.4 76 126 "118.9 • Estimated. »Preliminary. r Revised. 2 The indexes of employment and payrolls, wholesale commodity prices, n.a. Not available. and consumer prices are compiled by the Bureau of Labor Statistics. Non agricultural employment covers employees only and excludes person- * Average per working day. nel in the armed forces. The consumer price index is the revised series, 1 Three-month moving average, based on F. W. Dodge Corporation reflecting, beginning January 1953, the inclusion of some new series and data. A description of the index may be obtained from the Division of revised weights; prior to January 1953, indexes are based on the "interim Research and Statistics. adjusted" and "old" indexes converted to the base 1947-49= 100. A new adjusted index covering the 48 states will appear in the BULLETIN for April 1958. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION 343 INDUSTRIAL PRODUCTION [Federal Reserve indexes, 1947-49 average= 100] 19 p 4 r 7 o- -49 A av n e n ra u g a e l 1957 1958 Industry portion 1956 1957 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. SEASONALLY ADJUSTED INDUSTRIAL PRODUCTION—TOTAL... 100.00 143 143 145 146 145 144 144 145 145 145 144 '142 139 135 133 MANUFACTURES—TOTAL 90.02 144 145 147 '147 147 145 145 147 '147 147 146 143 141 137 134 Durable Manufactures—Total 45.17 159 160 163 164 r163 160 760 163 162 163 160 756 154 746 143 Primary metals 6.70 138 132 143 143 137 134 132 132 134 136 131 128 121 107 99 Metal fabricating 28.52 172 176 178 180 179 775 '176 779 779 775 775 772 770 753 759 Fabricated metal products 5.73 135 139 137 138 138 (38 138 139 141 140 139 '137 141 135 128 Machinery 13.68 171 168 172 '173 172 167 168 171 173 172 170 164 163 156 152 Nonelectrical machinery 9.04 153 150 154 155 155 152 152 153 152 151 150 148 -143 137 132 Electrical machinery 4.64 207 204 '206 '206 204 196 199 '207 '215 '215 '209 -197 -203 194 192 Transportation equipment 7.54 199 213 '218 '222 219 '216 '216 '220 216 r216 '212 '208 '203 '194 192 Autos, trucks, and parts 4.80 125 128 '132 136 131 124 127 132 128 131 129 126 125 113 109 Other transportation equipment 2.74 310 344 348 353 355 357 352 355 '351 •345 340 '334 322 '315 317 Instruments and related products 1.29 166 172 173 174 173 172 173 173 173 174 173 170 170 168 165 Clay, glass, and lumber products 5.97 140 133 133 134 134 134 735 140 733 735 r134 737 725 724 724 Stone, clay, and glass products 2.82 158 155 155 155 155 155 157 156 155 159 159 -155 151 -148 143 Lumber and products 3.09 123 114 114 115 115 115 117 125 '113 116 112 r109 107 103 108 Furniture and misc. manufactures 4.04 755 132 131 129 732 732 732 733 ••733 735 '735 732 '729 725 723 Furniture and fixtures 1.64 122 120 119 118 '119 120 120 121 '122 123 122 '120 '118 116 114 Miscellaneous manufactures 2.40 144 140 140 '137 '140 141 141 142 141 143 143 140 136 131 129 Nondurable Manufactures—Total... 44.85 129 130 r130 131 131 r130 r131 r131 131 132 rl31 130 128 127 126 Textiles and apparel 11.87 108 105 r105 105 r106 r106 106 107 r106 no4 noi 97 96 Textile mill products 6.32 104 99 101 101 101 100 100 100 101 101 101 '98 95 91 93 Apparel and allied products 5.55 112 111 '110 110 112 112 113 113 113 112 112 110 107 104 Rubber and leather products 3.20 117 118 '118 727 724 775 '775 '779 '779 722 '720 777 '776 '705 707 Rubber products 1.47 133 135 '138 141 145 132 134 135 '136 141 138 '135 131 '116 115 Leather and products 1.73 104 104 '101 104 105 105 104 106 '105 106 104 '103 '103 100 Paper and printing 8.93 145 148 148 147 147 '146 148 148 146 149 149 749 '749 746 745 Paper and allied products 3.46 159 158 159 157 157 156 158 159 156 163 161 161 162 152 154 Printing and publishing 5.47 136 141 141 141 141 140 141 141 140 141 142 142 141 142 140 Newsprint consumption 1.85 132 131 '133 132 132 128 132 132 129 129 131 130 129 131 126 Job printing and periodicals 3.62 138 146 145 146 145 146 145 146 146 146 147 148 '148 148 147 Chemical and petroleum products 9.34 167 172 '/73 172 777 rl71 '773 '772 r174 '775 174 '773 '777 '769 769 Chemicals and allied products 6.84 111 184 '183 183 182 182 185 184 185 186 185 185 184 '181 181 Industrial chemicals 2.54 196 203 '203 r203 202 >"202 '204 '204 205 '•206 207 206 '201 196 193 Petroleum and coal products 2.50 141 141 '146 143 141 142 142 139 '142 143 141 139 135 137 '133 Foods, bever.ages, and tobacco 11.51 112 112 111 113 774 •777 '772 773 '773 •772 773 777 '770 773 777 Food and beverage manufactures 10.73 113 112 111 113 114 112 112 114 '113 113 113 112 110 114 112 Food manufactures 8.49 113 112 111 113 '114 112 112 113 '114 112 112 111 110 113 112 Beverages 2.24 112 113 113 111 115 109 112 116 '109 113 113 112 110 118 Tobacco manufactures .78 107 111 '110 114 111 109 110 112 114 111 114 110 107 106 MINERALS—TOTAL 9.98 129 128 131 132 '132 131 130 127 '128 129 129 '127 '123 122 121 Mineral fuels 8.35 129 128 131 •732 '732 '737 130 727 727 725 729 725 '723 '722 720 Coal 2.68 85 83 '81 87 92 87 '83 86 '84 84 82 80 77 70 68 Anthracite .36 55 49 '52 '50 '49 '52 '56 60 '40 '50 '48 '45 '43 '40 43 Bituminous coal 2.32 90 88 86 93 99 93 88 90 90 89 88 85 82 74 72 Crude oil and natural gas 5.67 150 150 154 154 '151 151 153 146 148 149 151 151 '145 146 Crude oil 4.12 137 137 142 144 '142 140 141 136 134 134 136 136 132 131 Natural gas and gas liquids .70 191 196 198 198 '200 204 194 '197 198 196 Metal, stone, and earth minerals 1.63 127 129 131 132 732 '730 '725 '737 '732 rI33 '729 r125 -720 -725 725 Metal mining .82 114 116 120 122 121 121 114 121 122 121 115 107 100 110 110 Stone and earth minerals .81 141 143 142 142 143 140 142 143 146 144 143 •140 141 146 Preliminary. 'Revised. Jan.. .143 Apr.. .143 July 137 Oct.. .145 Feb.. .143 May. .142 Aug 143 Nov.. .145 the N p O e T ri E o . d — b R e e g v i i n s n ed in g s e J a a s n o u n a a r ll y y 1 a 9 d 5 j 7 u s a t r e e d sh in o d w u n s t i r n ia t l h p e r a o b d o u v c e t io ta n b le in d fo ex ll e o s w i f n o g r Mar.. .142 June. .142 Sept 144 Dec. .146 the practice announced in the BULLETIN for March 1957 pages 277-278. Revised seasonal adjustment factors for all published production Revised indexes for autos will be shown in the BULLETIN for April, when indexes will be shown in a pamphlet Seasonal Adjustment Factors—1947-57 the results of the review of seasonal adjustment factors for indexes of to be available within the next month upon request to the Division of consumer durable goods and electricity and gas utilities will be published. Administrative Services, Board of Governors of the Federal Reserve Revised indexes of industrial production, of consumer durable goods, System, Washington 25, D. C. and of electricity and gas utilities for the year 1956 will be shown in the BULLETIN for April. The revised index of total industrial production, For other notes see end of table. seasonally adjusted, for 1956 is as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 PRODUCTION INDUSTRIAL PRODUCTION—Continued [Federal Reserve indexes, 1947-49 average = 100] 1947_49 Annual 1957 1958 Industry pro- average portion 1956 1957 Jan. Feb. Mar Apr. May June July Aug Sept Oct. Nov Dec. Jan. WITHOUT SEASONAL ADJUSTMENT INDUSTRIAL PRODUCTION—TOTAL.. 100.00 143 143 144 148 148 145 143 145 135 145 146 146 141 134 132 MANUFACTURES—TOTAL 90.02 144 145 146 149 149 146 144 146 137 147 148 148 144 135 133 Durable Manufactures—Total 45.17 159 160 164 167 166 163 159 162 151 160 160 159 156 147 143 Primary metals 6.70 138 132 146 148 144 140 135 136 118 128 128 129 121 106 101 Ferrous metals 5.03 135 130 147 149 144 138 133 134 118 127 126 126 118 102 95 Pig iron and steel 3.51 142 140 159 159 154 148 143 141 130 135 136 135 126 108 99 Pig iron .37 131 137 148 149 147 144 141 139 136 137 139 132 121 107 98 Steel 3.05 143 139 160 160 154 147 142 140 128 134 134 134 126 107 99 Carbon steel 2.62 139 138 157 159 152 146 141 141 129 133 134 132 125 107 96 Alloy steel .43 167 143 178 167 163 151 149 136 123 137 132 143 132 108 111 Ferrous castings and forgings 1.52 119 108 118 124 122 115 109 119 90 106 105 106 99 87 85 Tron and steel castings 1.29 117 107 117 122 119 113 108 117 90 107 104 105 99 87 83 Steel forgings .23 126 113 126 133 137 124 116 126 89 103 110 107 98 88 92 Nonferrous metals 1.67 144 136 143 148 142 145 140 142 117 132 134 138 129 117 121 Primary nonferrous metals .38 164 164 170 167 167 175 172 167 157 160 153 156 159 161 160 Copper smelting .09 133 129 135 139 132 140 131 134 114 122 120 126 125 128 134 Copper refining .06 132 135 137 146 141 146 149 137 126 126 120 128 131 134 134 Lead .04 115 114 113 118 116 129 115 110 104 107 116 115 112 112 106 Zinc .10 123 123 128 133 132 137 133 128 118 115 110 113 114 120 114 Aluminum .09 280 275 289 259 267 283 285 280 279 282 263 263 274 275 275 Secondary nonferrous metals .13 118 112 116 125 120 118 110 108 86 106 114 117 112 98 Nonferrous shapes and castings 1.16 140 129 138 144 137 138 132 138 107 125 130 134 121 104 110 Copper mill shapes .63 115 104 111 121 105 113 108 115 '73 105 109 110 '98 80 87 Aluminum mill shapes .20 215 198 203 200 206 213 215 211 214 192 200 199 167 159 167 Nonferrous castings .33 146 136 150 156 157 141 131 140 109 125 131 140 138 118 Metal Fabricating 28.52 172 176 181 185 184 179 174 176 167 174 r174 r173 r174 166 161 Fabricated metal products 5.73 135 139 136 138 138 140 136 139 134 141 145 142 139 133 111 Structural metal parts 2.68 141 152 148 149 149 148 149 152 149 153 156 156 156 154 146 Stampings and misc. metal products 2.12 125 125 130 130 129 126 124 124 118 121 122 124 125 120 112 Tin cans .30 151 146 113 116 127 190 122 149 163 205 195 146 112 110 116 Furnaces, gas ranges, and heaters .63 110 99 84 103 101 98 95 104 81 105 122 115 99 '76 Machinery 13.68 171 168 174 177 177 169 166 168 158 167 173 170 165 157 154 Nonelectrical machinery 9.04 153 150 157 160 161 157 154 153 146 143 149 145 140 138 134 Farm and industrial machinery , 8.13 147 146 153 154 154 152 149 148 144 141 143 140 136 135 130 Farm machinery 1.02 86 84 86 89 92 90 87 85 82 -80 82 '82 '78 '80 81 Industrial and commercial machinery 7.11 156 155 163 164 163 161 158 157 152 150 152 148 144 143 137 Machine tools and presses .68 197 182 203 204 202 198 193 188 179 175 175 164 154 153 143 Laundry and refrigeration appliances .69 168 151 152 175 190 164 158 160 129 119 159 149 138 '119 Electrical machinery 4.64 207 204 '206 210 208 194 189 197 183 '213 '220 '220 '215 194 192 Electrical apparatus and parts 3.23 198 201 210 210 208 204 200 200 195 196 '201 196 198 197 189 Radio and television sets .74 224 205 188 201 196 159 153 180 143 256 269 282 260 176 187 Transportation equipment 7.54 199 213 225 231 228 223 214 217 205 209 194 198 213 '203 197 Autos, trucks, and parts 4.80 125 128 141 148 142 135 127 130 114 123 100 110 139 124 116 Autos 1.50 138 146 174 178 171 155 144 156 134 148 84 88 171 151 132 Trucks .66 112 104 98 113 109 120 113 119 103 103 '85 '93 100 '95 92 Light trucks .22 92 100 97 110 105 107 101 108 '96 r-97 '69 '95 118 '99 83 Medium trucks .19 58 50 42 57 52 69 60 62 52 48 29 46 47 40 26 Heavy trucks .14 218 194 182 200 193 224 215 228 208 195 184 161 157 183 216 Truck trailers .07 167 137 134 156 162 154 148 156 109 146 136 122 116 103 Auto and truck parts 2.58 121 123 134 140 134 127 121 118 106 113 114 127 131 116 Other transportation equipment 2.74 310 344 351 356 359 357 348 351 344 341 340 334 322 322 320 Aircraft and parts 1.30 548 608 624 630 633 633 614 615 609 606 597 592 569 '571 569 Shipbuilding and repair .81 118 129 128 130 132 132 134 136 131 128 126 123 121 125 122 Railroad equipment .53 63 77 78 84 88 81 76 84 73 69 83 74 71 '61 64 Railroad cars .35 54 80 77 86 98 86 81 88 71 84 85 76 72 59 66 Instruments and related products 1.29 166 172 173 174 174 174 171 171 168 172 174 172 172 170 165 Clay, Glass, and Lumber Products 5.91 140 133 125 131 132 135 137 144 127 143 141 139 128 117 117 Stone, clay, and glass products 2.82 158 155 148 151 153 155 158 159 150 163 162 161 152 145 137 Glass and pottery products 1.09 140 140 143 145 144 141 141 139 132 142 141 144 141 134 130 Flat glass and vitreous products .60 164 161 167 166 164 160 159 157 149 156 163 165 165 161 150 Flat and other glass .47 165 164 171 168 166 163 161 160 151 159 167 170 170 166 154 Glass containers .26 132 136 127 134 138 132 137 144 137 154 138 143 128 117 128 Home glassware and pottery .23 87 98 102 100 100 97 85 78 91 90 92 Cement .32 157 148 113 116 133 145 161 161 119 185 187 177 152 132 109 Structural clay products .35 137 129 120 120 121 129 130 133 134 137 135 134 126 117 Brick .12 134 115 94 96 101 119 122 123 122 129 124 126 113 95 Clay firebrick, pipe, and tile .20 142 140 140 139 138 138 138 143 145 145 144 143 138 133 123* Concrete and plaster products .48 194 188 173 177 181 185 194 200 198 201 198 193 182 172 165 Misc. stone and earth manufactures .58 173 174 174 177 177 176 177 177 173 175 175 173 166 165 158 r Revised. For other notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION 345 INDUSTRIAL PRODUCTION—Continued [Federal Reserve indexes, 1947-49 average= 100] 9 p 4 r 7 o - - 49 a A v n e n ra u g a e l 1957 1958 Industry portion 1956 1957 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. WITHOUT SEASONAL ADJUSTMENT —Continued 3.09 123 114 104 112 112 117 118 131 105 125 121 119 106 92 98 LuLmubmerb earnd Droducts 2 05 107 96 89 98 100 100 99 110 88 106 103 98 89 75 81 Millwork and plywood .60 189 187 167 181 170 191 196 219 168 209 205 207 178 155 170 Millwork. 39 121 112 90 105 102 107 110 146 101 144 132 124 100 80 58 Softwood plywood .12 301 312 295 306 282 330 339 339 277 314 327 344 307 280 358 Wood containers . . .. .29 91 84 88 86 86 87 88 88 83 83 83 82 78 77 74 Furniture and Misc. Manufacturing.... 4.04 135 132 128 130 131 129 128 130 125 136 r141 r139 '734 rl28 120 Furniture and fixtures. 1 64 122 120 118 119 119 111 115 118 116 124 126 125 121 120 113 Household furniture 1.10 121 120 116 118 119 117 114 117 115 124 126 127 123 122 115 Fixtures and office furniture .54 122 120 121 121 121 118 118 119 118 125 122 116 116 110 124 Miscellaneous manufactures 2.40 144 140 136 137 139 137 137 139 131 150 148 143 134 125 144 Nondurable IVIanufactures—Total 44.85 129 130 128 131 132 129 129 130 122 135 137 131 123 124 134 Textiles and Apparel 11.87 108 105 no7 112 r113 r108 106 104 '97 r108 ri04 r108 no2 r92 98 Textile mill products 6.32 104 99 102 105 105 102 100 '99 '86 101 103 '98 '89 94 Co C tt o o t n to a n n c d o s n y s n u t m he p t t i i c o n fabrics 2 3 3 7 0 2 1 1 0 02 8 1 9 0 5 5 1 9 0 9 8 1 1 1 01 1 1 1 1 0 2 2 1 9 0 5 3 10 9 7 9 10 9 4 6 '8 7 6 5 1 1 0 0 95 1 8 10 9 7 7 10 9 6 7 10 9 7 7 '9 8 7 4 1 9 0 4 2 Synthetic fabrics.... 97 118 119 129 129 124 118 111 111 '110 113 121 122 121 '116 110 Fabric finishing .45 98 94 87 103 '89 109 102 '64 '94 '94 '86 '97 '90 82 Wool textiles 97 86 75 74 81 79 78 81 87 67 82 79 71 65 55 56 Wool apparel yarns .16 88 78 80 85 85 82 89 88 71 86 79 66 66 61 Wool fabrics .75 86 75 72 80 78 77 79 88 67 81 80 74 65 54 55 Knit goods 1 15 108 104 100 105 109 103 103 107 96 110 '110 109 '104 '92 94 Hosiery .65 100 93 98 103 106 92 '90 92 76 95 95 '98 '93 '78 90 Full-fashioned hosiery .45 102 89 98 104 109 91 87 87 69 88 87 88 88 74 87 Kn S i e t a g m a l r e m ss e n h t o s siery . . 2 5 0 0 1 9 1 6 9 1 1 0 1 2 8 1 9 0 7 2 1 1 0 0 1 8 1 '9 1 8 3 1 r 1 9 7 4 1 ' 1 9 9 6 1 12 0 5 4 1 ' 2 9 3 2 1 1 1 2 4 8 1 12 1 9 6 1 1 2 2 5 1 1 11 0 8 7 1 ' 1 8 1 6 9 9 9 9 Floor coverings * 48 Woven carpets ... .31 83 71 86 92 91 85 69 64 46 68 75 59 59 61 Apparel and allied products 5.55 112 111 113 120 123 114 112 110 96 116 109 112 107 '96 1 78 110 102 119 111 114 100 111 104 '74 110 100 '99 '98 '90 94 Men's suits and coats .73 95 86 107 95 101 88 102 91 '55 '98 78 '72 '73 '72 69 Men's suits 50 93 87 114 100 104 90 100 88 54 93 '76 73 '77 '76 73 Men's outercoats .13 78 60 51 50 63 60 '86 '80 '48 '93 '68 '53 '41 '40 35 Shirts and work clothing .99 118 112 126 121 121 106 115 111 '83 117 113 116 113 100 110 1 85 112 112 108 130 148 119 115 111 101 118 109 108 102 80 Women's suits and coats. .76 128 128 131 157 169 102 96 127 130 148 133 134 123 85 Misc apparel and allied mfrs 1.92 113 117 112 117 118 112 110 113 113 120 122 123 121 117 112 Rubber and Leather Products 3.20 117 118 123 130 130 119 114 117 101 123 121 123 116 r103 111 Rubber oro ducts 1.47 133 135 147 148 148 135 133 132 112 135 139 145 135 114 122 Tir A es u t a o n t d ir t e u s bes .7 4 0 0 1 1 2 2 1 3 1 13 2 4 3 1 1 2 3 6 6 1 15 3 0 6 1 1 3 5 4 1 1 1 2 3 1 5 1 1 2 3 5 7 1 13 2 6 3 1 1 0 2 9 2 1 13 2 1 0 1 1 2 3 4 5 1 1 2 3 9 9 119 1 1 0 1 6 3 106 Truck and bus tires . . .30 119 107 111 117 111 103 108 105 91 105 110 117 112142 97 99 Miscellaneous rubber products .77 144 147 166 159 161 147 140 141 114 150 153 150 121 136 Leather and products 1.73 104 104 102 115 115 106 98 105 92 112 105 104 99 94 Leather 44 91 89 89 99 95 89 88 97 74 92 87 90 88 80 Cattlehide leathers 29 99 98 98 108 103 96 94 107 82 103 97 101 98 89 Skin leathers .15 76 72 72 82 81 76 75 77 58 72 69 71 68 63 Shoes and slippers *..... 90 Miscellaneous leather products .39 97 94 90 96 96 90 87 92 92 100 98 98 98 95 Paper and Printing 8.93 145 148 144 147 151 150 149 148 136 147 151 156 152 rl41 142 Paper and allied products 3 46 159 158 157 161 163 161 158 161 139 165 163 170 163 140 152 Pulp and paper 1.76 157 154 158 160 159 159 157 155 132 157 153 163 156 137 150 Wood pulp 51 179 176 182 181 181 182 182 175 152 181 172 187 183 '153 176 Paper and board 1 25 148 145 149 151 150 150 147 147 124 147 146 154 145 131 140 Printing paper .22 140 133 140 139 137 136 136 136 121 132 125 135 132 123 134 Fine paper 14 145 140 140 147 152 147 143 142 107 139 145 143 138 131 135 Coarse paper 20 136 127 139 139 131 131 125 123 102 127 124 135 129 114 122 Miscellaneous paper . .18 170 179 184 189 186 192 182 184 160 175 171 185 172 167 179 Paperboard 41 155 153 154 155 158 155 157 154 128 158 160 166 157 134 142 .10 131 124 118 128 120 126 124 127 118 134 134 141 120 101 114 1.70 162 163 156 163 167 163 160 166 147 173 173 177 171 142 155 Shipping containers .51 159 157 148 156 163 155 155 160 141 172 170 168 167 132 143 Sanitary paper products .11 170 179 179 183 177 184 174 183 163 175 178 204 182 171 187 ' Revised. For other notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 PRODUCTION INDUSTRIAL PRODUCTION—Continued [Federal Reserve indexes, 1947-49 average= 100] 19 p 4 r 7 o- _49 A av n e n ra u g a e l 1957 1958 Industry portion 1956 1957 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.Jan. WITHOUT SEASONAL ADJUSTMENT —Continued Printing and publishing. 5.47 136 141 136 139 144 143 142 140 134 136 144 146 145 142 136 Newsprint consumption 1.85 132 131 123 128 137 137 140 132 112 116 133 140 140 129 116, Job printing and periodicals. 3.62 138 146 143 144 147 146 144 144 144 146 150 150 148 149 146, Chemical and Petroleum Products. 9.34 167 172 175 175 174 172 172 168 165 171 174 176 173 r171 17 fr Chemicals and allied products 6.84 111 184 184 186 186 184 184 179 174 181 185 190 187 183 183 Industrial chemicals 2.54 196 203 205 207 206 206 206 200 '195 200 205 208 203 198 195 Basic inorganic chemicals .57 189 202 198 208 206 210 209 197 189 196 203 209 205 197 Industrial organic chemicals 1.97 197 204 208 207 206 205 205 201 196 '202 r205 207 203 198 Plastics materials .24 256 272 263 277 280 275 278 266 240 269 283 299 276 259 Synthetic rubber .11 236 245 243 238 242 219 245 225 209 241 252 274 282 '268 265" Synthetic fibers .59 181 199 205 202 196 203 198 189 191 '198 ••202 206 201 194 189 Miscellaneous organic chemicals. 1.03 189 186 193 191 190 188 188 191 188 184 184 179 178 179 178 Vegetable and animal oils. .64 132 130 147 152 134 121 116 109 107 113 120 150 149 136 141 Vegetable oils .48 124 121 143 143 129 113 103 94 95 100 110 148 147 132 136 Grease and tallow .16 158 154 159 181 150 146 155 154 142 153 151 159 156 147 156 Soap and allied products. .71 111 112 120 117 128 113 115 104 80 115 115 126 110 105 111 Paints .66 124 121 122 121 120 122 122 125 126 125 122 119 115 114 113 Fertilizers .23 129 132 125 135 166 181 172 119 104 108 119 122 115 115 124. Petroleum and coal products. 2.50 141 141 148 145 139 137 139 139 139 144 144 139 136 138 Petroleum refining 1.97 150 150 160 154 149 145 148 147 146 152 152 145 147 153 Gasoline 1.04 159 162 164 157 156 154 161 162 161 168 170 162 160 165 Automotive gasoline.. .98 153 157 158 153 150 149 155 156 155 163 166 157 156 161 Aviation gasoline.... .06 254 249 263 242 254 247 255 258 260 265 233 242 233 236 Fuel oil .56 147 147 170 164 151 143 143 142 141 144 142 137 139 150 Distillate fuel oil. .30 193 194 225 216 197 187 190 188 185 191 188 181 184 200 Residual fuel oil. .26 95 93 108 104 99 93 90 90 89 89 90 86 87 93 Kerosene .10 111 98 120 116 109 93 89 83 82 82 90 87 106 117 Lubricating oil. .17 119 113 118 114 116 126 122 104 111 112 108 107 109 105 Coke .26 102 104 110 110 111 107 108 107 106 106 106 103 95 85 Asphalt roofing and siding. .15 104 94 94 92 104 107 122 119 121 81 54 77 73 Foods, Beverages, and Tobacco. 11.51 112 112 103 104 108 117 115 122 128 124 113 r106 102- 102 105 Food and beverage manufactures. 10.73 113 112 103 104 108 116 116 122 128 125 113 107 102 Food manufactures 8.49 113 112 101 104 105 102 104 111 114 123 131 126 116 109 105; Meat products 1.48 133 128 104 133 104 123 124 120 116 118 130 140 133 131 134. Beef .46 151 148 •"138 151 131 139 148 148 150 150 154 156 140 136 149 Pork .83 119 110 163 117 144 108 104 97 91 94 109 124 122 122 118; 121 117 Dairy products .69 110 111 91 102 109 122 140 151 134 120 101 91 85 92 Butter .14 107 109 102 109 117 122 139 145 113 97 87 88 87 97 Natural cheese .07 117 119 100 107 115 135 161 165 137 119 105 100 92 98 Concentrated milk. .19 101 102 85 96 105 128 151 142 114 97 78 77 73 80 84 Ice cream .28 112 111 82 97 101 109 122 149 151 141 117 96 84 82 84 Canned and frozen foods. 1.13 133 126 87 84 82 89 91 111 163 '213 230 158 109 '99 86 Grain-mill products 1.16 101 100 100 100 99 95 97 98 '98 105 108 105 '98 '97 100 Wheat flour .46 84 87 92 92 90 82 81 87 78 88 94 92 89 86 90 Cereals and feeds .70 113 109 105 106 106 104 108 r106 '111 '117 117 114 104 104 106 Bakery products. 1.64 98 100 95 96 96 98 99 102 104 103 102 101 101 101 98 Sugar .27 122 120 85 57 54 60 68 88 74 80 117 262 279 233 Cane sugar .11 116 112 102 96 107 110 117 140 122 123 125 108 97 93 Beet sugar .13 121 121 65 20 13 21 38 27 38 105 390 431 350 Confectionery .71 107 112 113 123 119 96 84 95 81 103 155 147 132 99 Miscellaneous food preparations. 1.41 105 108 101 103 103 102 106 114 113 113 113 '112 110 108 108 Beverages 2.24 112 113 90 97 111 '120 r138 '122 '120 121 105 99 Bottled soft drinks. . .54 Alcoholic beverages. 1.70 105 103 86 93 106 103 108 123 105 102 108 117 100 89 Beer and ale 1.02 101 101 88 86 104 109 117 130 127 111 '97 '88 '73 81 Liquor distilling. . .17 78 83 79 85 86 '82 '81 '67 '34 '47 109 140 '99 88 Liquor bottling... .37 119 111 81 105 111 95 97 127 84 101 125 158 151 101 Tobacco manufactures. .78 107 111 110 114 111 104 113 121 102 120 118 119 110 87 Cigarettes .46 111 116 117 119 115 109 121 129 114 126 123 122 111 90 Cigars. .17 104 106 101 112 110 102 104 111 81 115 116 121 116 86 Preliminary. r Revised. For other notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION 347 INDUSTRIAL PRODUCTION—Continued [Federal Reserve indexes, 1947-49 average = 100] 19 p 4 r 7 o- -49 A av n e n ra u g a e l 1957 1958 Industry portion 1956 1957 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. WITHOUT SEASONAL ADJUSTMENT —Continued 9.98 129 128 131 131 131 131 132 131 123 130 130 129 122 122 121 MINERALS—TOTAL 8.35 129 128 135 135 134 132 130 127 119 126 127 127 123 "124 124 Mineral Fuels 2.68 85 85 87 88 83 82 88 65 86 86 87 80 73 72 Coal .36 55 57 52 43 46 50 64 32 52 52 49 46 42 48 Anthracite 2.32 90 90 93 95 89 87 92 71 92 91 93 86 77 76 Bituminous coal Crude oil and natural gas 5.67 150 150 158 157 156 155 153 145 145 145 147 146 144 148 Oil and gas extraction 4.82 145 146 154 157 156 153 150 143 139 138 140 140 141 143 P144 Crude oil 4.12 137 137 143 147 148 145 143 136 132 130 132 131 131 133 Natural gas and gas liquids .70 191 214 214 206 200 194 184 181 186 188 Natural gas .34 199 240 235 225 214 202 192 196 194 196 Natural gas liquids .36 182 184 190 194 189 188 186 177 167 179 180 182 189 186 Oil and gas well drilling .85 180 171 182 160 151 168 168 156 179 185 185 177 160 177 Metal, Stone, and Earth Minerals. 1.63 127 129 109 113 114 124 140 149 143 147 145 138 117 110 107 Metal mining .82 114 116 91 98 95 111 135 151 137 139 137 124 92 82 84 Iron ore .33 104 114 49 50 48 87 159 193 181 182 172 143 65 42 Nonferrous metal mining .49 120 117 120 129 127 r127 119 123 108 110 113 110 110 109 iii' Copper mining .24 136 133 133 145 141 140 133 139 121 124 132 125 131 131 130 Z L i e n a c d m m i i n n i i n n g g . . 0 0 9 6 8 8 8 7 8 8 5 4 r 8 94 9 r 9 97 6 r 9 99 4 r97 ' ' 8 9 7 2 '80 ' r 8 79 2 n 7 o 9 7 8 4 3 7 6 1 8 7 6 0 7 7 7 6 2 100 Stone and earth minerals .81 141 143 128 129 133 145 148 149 155 153 152 143 138 131 137 P Preliminary. ' Revised. are included in major group totals but not in individual indexes for autos, i Publication suspended pending revision. farm machinery, and some other products, as discussed in the BULLETIN NOTE.—A number of groups and subgroups include individual series for December 1953, pp. 1269-71. not published separately, and metal fabricating contains the ordnance For description and back figures, see BULLETIN for December 1953 group in addition to the groups shown. Certain types of combat materiel pp. 1247-93 and pp. 1298-1328, respectively. UTILITY OUTPUT OF ELECTRICITY AND GAS [Seasonally adjusted Federal Reserve indexes, 1947-49 average = 100] Series 19 p 4 ro 7 - -49 A av n e n ra u g a e l 1957 1958 portion 1955 1956 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. ELECTRICITY AND GAS—TOTAL 100.00 199 218 225 227 226 227 229 232 236 236 234 *230 .233 .233 ,235 41.34 217 241 248 252 252 252 255 259 262 265 261 Nonresidential 58.66 187 201 210 209 207 209 211 213 217 217 214 Electricity . 76.18 199 218 227 229 227 228 231 234 239 240 237 233 236 235 P237 Residential 27.48 224 250 260 266 266 263 267 274 280 284 280 274 285 282 Industrial . 23.68 190 206 213 211 209 214 215 214 217 217 215 213 210 207 23.49 174 186 193 191 188 193 194 193 198 198 196 194 191 188 Atomic energy .19 2221 2697 2740 2720 2750 2790 2880 2790 2560 2530 2580 2610 2580 2580 Commercial and other 25.02 180 194 204 205 202 203 207 210 215 214 210 206 207 209 Gas 23.82 200 218 220 221 221 222 224 225 225 225 224 *>223 *>225 Residential . 13.86 203 223 223 224 225 229 231 231 228 226 225 Industrial 6.16 201 218 225 222 220 215 215 221 228 231 229 Commercial and other 3.80 185 197 203 205 207 209 210 212 212 213 214 * Preliminary. ' Revised. 1956 pp. 1055-69. Indexes without seasonal adjustment may be ob- NOTE.—For description and back figures see BULLETIN for October tained from the Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 PRODUCTION OUTPUT OF CONSUMER DURABLE GOODS [Federal Reserve indexes, 1947-49 average= 100] 19 p 4 r 7 o - - 49 A av n e n ra u g a e l 1957 1958 Product portion 1956 1957 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. SEASONALLY ADJUSTED CONSUMER DURABLES TOTAL 100.00 131 130 137 138 134 124 124 129 129 133 129 121 132 124 117 Major Durables 69.72 140 138 147 149 144 131 131 137 137 141 r135 126 142 131 122 Autos .. . 32.10 138 146 169 167 159 141 139 144 134 145 129 118 154 140 127 Major household goods 36.13 144 132 130 134 132 124 126 133 142 r139 141 134 132 125 120 Furniture and floor coverings... ... 15.32 117 114 114 113 113 114 112 113 118 mi 115 111 112 111 Household furniture 11.31 121 120 119 117 118 120 118 121 123 124 r123 121 118 119 117 Floor coverings * 4.01 Appliances and heaters 15.60 143 127 128 137 133 119 119 123 126 123 134 129 130 116 Major appliances 11.88 151 133 136 144 140 121 124 127 132 133 144 139 139 121 Ranges .. 2.60 103 89 95 103 100 88 85 85 77 84 85 85 92 87 Refrigeration appliances 4.98 150 140 128 153 151 136 138 135 140 140 146 143 148 125 Laundry appliances 2.51 216 180 209 183 177 133 152 167 182 182 212 203 189 159 142 Heating apparatus 3.72 118 104 105 114 111 110 104 108 109 92 102 100 102 102 Radio and television sets 5.21 224 205 181 189 185 167 186 226 259 248 237 215 199 188 180 Radio sets. 3.42 70 75 71 81 80 75 67 69 65 68 88 83 83 66 64 Television sets 1.79 519 453 392 395 388 343 413 524 628 591 521 468 421 419 401 Other Consumer Durables 30.28 111 111 114 114 111 109 108 108 111 114 116 112 111 109 106 Auto parts and tires 14.00 105 112 114 112 104 103 104 110 111 112 109 Misc home and personal goods 16.28 116 * i i4*116 113 110 113 112 112 112 117 119 114 114 110 106 WITHOUT SEASONAL ADJUSTMENT CONSUMER DURABLES—TOTAL. ... 100.00 131 130 137 143 142 130 124 131 116 132 119 119 141 124 118 M!ajor Durables 69.72 140 138 149 157 155 140 131 140 121 139 118 119 153 132 124 Autos 32.10 138 146 174 178 171 155 144 156 134 148 84 88 171 151 132 Mfojor household goods . . 36.13 144 132 129 140 143 128 122 129 110 133 150 148 138 118 119 Furniture and floor coverings 15.32 117 114 113 116 116 113 108 no 105 116 119 118 115 114 110 Household furniture 11.31 121 120 116 118 119 117 114 117 115 124 126 127 123 122 115 Floor coverings * 4.01 Appliances and heaters 15.60 143 127 125 144 151 131 125 131 105 109 141 133 121 102 Major appliances 11.88 151 133 137 158 166 140 133 136 108 109 144 136 126 109 Ranges 2.60 103 89 94 116 114 92 82 88 59 77 93 90 89 79 Refrigeration appliances 4.98 150 140 131 162 188 173 163 164 130 102 133 119 112 106 Laundry appliances 2.51 216 180 207 208 195 140 144 150 126 164 229 229 206 156 141 Heating apparatus 3.72 118 104 88 100 104 103 99 114 94 109 134 121 104 80 Radio and television sets 5.21 224 205 188 201 196 159 153 180 143 256 268 282 259 176 187 Radio sets 3.42 70 75 73 83 84 72 67 57 40 62 81 101 108 76 66 Television sets 1.79 519 453 408 427 411 326 318 414 339 627 625 627 547 365 417 Other Consumer Durables 30.28 111 111 110 112 111 107 106 108 106 116 121 120 114 106 102 Auto parts and tires 14.00 105 109 110 107 101 103 107 109 114 120 118 16.28 116 "\\4 111 114 114 112 109 108 104 117 121 122 120 110 101 r Revised. Individual indexes without seasonal adjustment for woven carpets, 1 Publication suspended pending revision. appliances, heating apparatus, radio sets, and television sets may be NOTE.—For a description of these indexes, see BULLETIN for May 1954, obtained from the Division of Research and Statistics, pp. 438-47. VALUE OF NEW CONSTRUCTION ACTIVITY [Joint estimates of the Departments of Commerce and Labor. Seasonally adjusted. In millions of dollars] ]^ivate Public Year or month Total Business Other Total d R en es ti i a - l Total Indus- Com- Public n d re o e s n n i - - - Total M ta i r l y i- H w ig ay h- s C e ti r o o v n n a - - o A th l e l r trial mercial utility tial 1950 29,955 22,954 14,100 5,680 1,062 1,288 3,330 3,174 7,001 177 2,272 942 3,610 1951...... 32 739 23,320 12 529 7,217 2 117 1,371 3 729 3 574 9 419 887 2 518 912 5 102 1952 34,750 23,849 12,842 7,460 2,320 1,137 4,003 3,547 10,901 1,388 2,820 900 5,793 1953... . 37,118 25,724 13,777 8,436 2,229 1,791 4,416 3,511 11,394 1,307 3,160 892 6,035 1954 39,601 27,679 15 379 8,526 2 030 2,212 4 284 3 774 11 922 1 030 3 870 773 6 249 1955 44,581 32,620 18,705 10,160 2,399 3,218 4,543 3,755 11,961 1,313 4,050 701 5,897 1956... . 46,060 33,242 17,632 11,828 3,084 3,631 5,113 3,782 12,818 1,395 4,470 826 6,127 1957* 47,255 33,313 16,571 12,562 3,162 3,570 5,830 4,180 13,942 1,275 4,840 975 6,852 1957_Feb 3,861 2,740 1,391 1,009 270 283 456 340 1 121 105 406 73 537 Mar. 3,912 2,752 1,383 1,025 274 292 459 344 1,160 104 434 71 551 Apr 3,906 2,754 1.361 1,044 277 295 472 349 1 152 98 407 76 571 May 3,905 2,751 1,321 1,079 278 304 497 351 1,154 105 401 78 570 June.. 3,900 2,742 1,324 1,065 273 303 489 353 1,158 99 406 79 574 July 3,833 2,739 1,349 1,050 265 293 492 340 1 094 104 366 80 544 Aug. 3,942 2,787 1,377 1,056 266 297 493 354 1,155 117 374 90 574 Sept 3,979 2,790 1,388 1,050 257 298 495 352 1 189 111 392 92 594 Oct 4,064 2,833 1,414 1,069 251 308 510 350 1,231 111 429 94 597 Nov 4,043 2,843 1,434 1,055 246 306 503 354 1 200 103 427 85 585 Dec.P 4,051 2,854 1,444 1,054 243 303 508 356 1,197 100 423 79 595 1958—Jan.*> 4,013 2,785 1,403 1,027 235 285 507 355 1 228 99 461 79 589 Feb.** 3,958 2,789 I 416 1,017 231 276 510 356 1,169 92 427 81 569 9 Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRODUCTION 349 CONSTRUCTION CONTRACTS AWARDED, BY TYPE OF OWNERSHIP AND BY TYPE OF CONSTRUCTION [Figures for the 48 States, as reported by the F. W. Dodge Corporation. Value of contracts, in millions of dollars] By type of ownership By type of construction Year or month Total Nonresidential building Public Resi- works Public Private dential and building Fac- m C e o r m cia - l E ti d o u n c a a l - Other u p t u il b it l i i e c s 1956 31,612 10,666 20,946 12,862 2,381 3,140 2,883 2,804 7,542 1957 32,173 11,238 20,935 13,039 2,168 3,267 2,936 2,922 7,841 1956—Jan 2,221 848 1,373 172 206 239 170 625 Feb 2,229 744 1,486 946 197 231 180 141 535 Mar 2,770 810 1,959 1,186 316 276 262 210 519 Apr 3,045 962 2,083 1,345 257 282 260 249 653 May 2,980 916 2,064 1,311 191 272 251 293 663 June 2,947 975 1,972 1,202 179 303 245 298 721 July 3,013 1,004 2,009 1,143 225 305 249 295 796 Aug 2,953 1,027 1,926 1,224 171 272 239 251 796 Sept 2,575 841 1,734 1,047 204 276 221 229 598 Oct 2,443 799 1,644 1,050 159 247 235 224 528 Nov 2,377 862 1,515 900 181 263 265 261 508 Dec 2,057 878 1,180 699 129 208 237 183 602 1957_jan... 2,300 892 1,407 817 228 261 224 201 569 Feb... 2,161 838 1,323 875 184 214 220 202 465 Mar.. 3,078 1,018 2,060 1,107 212 348 274 259 878 Apr... 2,US 880 1,897 1,233 154 246 227 211 707 May.. 3,398 1,279 2,119 1,296 215 306 291 308 983 June.. 3,223 1,323 1,900 1,135 243 322 273 348 902 July.. 2,901 1,002 1,898 1,287 165 298 220 277 653 Aug.. 2,818 802 2,016 1,284 181 324 265 239 526 Sept.. 2,550 816 1,734 1,151 135 232 242 257 533 Oct... 2,614 787 1,827 1,165 167 248 265 230 538 Nov.. 2,371 867 1,504 930 147 264 244 223 562 Dec... 1,982 734 1,249 759 137 204 190 167 525 1958—Jan.. 2,066 758 1,308 777 107 247 214 191 530 NOTE.—This series for 48 States replaces the old series for 37 States. The index on p. 342 will be revised in the BULLETIN for April. CONSTRUCTION CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS [Figures as reported by the F. W. Dodge Corporation. Value of contracts, in millions of dollars] Federal Reserve district All Month districts New Phila- Cleve- Rich- St. Minne- Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco 1956—Nov 2,377 113 329 90 182 148 196 348 86 90 184 130 481 Dec 2,057 114 329 89 173 127 191 291 76 67 115 141 344 1957_jan 2,300 75 266 98 127 218 274 323 116 56 137 166 444 Nov 2,371 105 383 83 226 183 209 339 84 67 132 133 426 Dec 1,982 68 213 80 204 113 211 316 68 68 129 178 336 1958 Jan 2,066 85 329 85 154 183 216 236 99 35 100 164 379 PERMANENT NONFARM DWELLING UNITS STARTED [Bureau of Labor Statistics estimates. In thousands of units] p T ri o v t a a t l e Metro- Non- Private Government-underwritten1 Year or month a ( n s a e n d a u j s a u o l s n t r a e a d ll t y e) Total p a o r l e it a a s n p m a o r e l e i t t r a a o s n - Total family fam 2- ily M fam ul i t l i y - Public Total FHA VA 1956 1,118 780 338 1,094 981 31 82 24 463 192 271 1957 699 342 305 177 128 1957 Feb 935 66 47 19 63 53 2 8 3 19 10 10 Mar 933 87 59 29 79 68 3 9 g 24 12 11 Apr 962 94 64 30 91 79 3 10 2 26 12 13 May 994 103 68 35 97 82 3 13 6 27 15 • 12 June 995 100 69 31 95 80 3 11 5 29 16 13 July 1,015 100 63 37 94 81 3 10 6 29 17 12 Aug 1,056 100 68 32 97 82 3 12 3 30 19 12 Sect 1,012 92 6? 30 90 77 3 10 2 29 17 12 Oct 1,020 97 62 35 88 74 3 11 8 29 20 10 Nov 1,009 78 53 26 76 64 3 9 3 24 17 6 Dec 262 42 20 n.a. n.a. n.a. v\ 20 15 5 1958—Jan 21,030 269 45 24 n.a. n.a. n.a. 18 14 4 Feb 43 22 n.a. n.a. n.a. 14 12 3 » Preliminary. n.a. Not available. figures are based on filed office reports of first compliance inspections; l Represents units started under commitments of FHA or VA to in- earlier VA figures are estimates based on loans-closed information. sure or guarantee the mortgage. VA figures after June 1950 and all FHA Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 EMPLOYMENT LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT [Bureau of the Census estimates, without seasonal adjustment. In thousands of persons] Civilian labor force Year or month i p T n o s o t p t i a u tu l l a t n i t o o io n n n a l T l f a o o b r t c o a e r l EmployedJ Unem- l N ab o o t r i n f o t r h c e e Total ployed In nonagricul- In Total tural industries agriculture 1950 110,780 64 599 63 099 59 957 52 450 7 507 3,142 46,181 1951 111,924 65,832 62 884 61,005 53 951 7,054 1,879 46,092 1952 113,119 66,410 62,966 61,293 54,488 6,805 1,673 46,710 1953 115,095 67 362 63 815 62 213 55 651 6 562 1,602 47,732 1954 116,220 67,818 64,468 61,238 54,734 6,504 3,230 48,402 1955 117,388 68 896 65 848 63 193 56 464 6 730 2,654 48,492 1956 118,734 70 387 67 530 64 979 58'394 6,585 2,551 48,348 1957 120,445 70,746 67,946 65,011 58,789 6,222 2,936 49,699 1957_Feb.2 119,745 69,128 66,311 63,190 57,996 5,195 3,121 50,617 Mar 119,899 69 562 66 746 63 865 58 431 5 434 2,882 50,337 120,057 69,771 66'951 64,261 58 506 5,755 2,690 50,286 May 120,199 70,714 67,893 65,178 58,519 6,659 2,715 49,485 June 120,383 72 661 69 842 66,504 58 970 7,534 3,337 AT,122 July 120,579 73,051 70,228 67,221 59,449 7,772 3,007 47,528 Aug 120,713 71 833 68 994 66 385 59 562 6,823 2,609 48,880 Sept 120,842 71,044 68 225 65,674 59 156 6,518 2,552 49,797 Oct 120,983 71,299 68,513 66,005 59,168 6,837 2,508 49,684 Nov 121,109 70,790 68 061 64,873 59 057 5,817 3,188 50,318 Dec. 121,221 70,458 67,770 64,396 59,012 5,385 3,374 50,763 1958—Jan.... 121,325 69,379 66,732 62,238 57,240 4,998 4,494 51,947 Feb 121,432 69,804 67,160 61,988 57,158 4,830 5,173 51,627 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Information relating to persons 14 years of age and over is 2 Beginning 1957 persons waiting to start new wage and salary jobs and obtained through interviews of households on a sample basis. Monthly those on temporary layoff, previously considered as employed (with a job data relate to the calendar week that contains the 12th day; annual but not at work), are classified as unemployed, and a small group in school data are averages of monthly figures. and waiting to start new jobs (previously included as employed) are classified as not in the labor force. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [Bureau of Labor Statistics. In thousands of persons] Transporta- Federal Year or month Total M t a u n r u in f g ac- Mining co C n o st n r t u r c a t c i t on ti p o u n b a li n c d Trade Finance Service Sta lo te c a a l rd utilities government 1950 44,738 14 967 889 2 333 3 977 9,645 1,824 5,077 6,026 1951 47,347 16 104 916 2 603 4 166 10,012 1,892 5,264 6,389 1952 48 303 16 334 885 2 634 4 185 10,281 1,967 5,411 6,609 1953 49,681 17 238 852 2 622 4 221 10,527 2,038 5,538 6,645 1954 48,431 15,995 111 2,593 4,009 10,520 2,122 5,664 6,751 1955 50,056 16 563 111 2 759 4 062 10,846 2,219 5,916 6,914 1956 51 878 16 905 816 2 993 4 157 11 292 2,306 6,231 7,178 1957 52,545 16,793 840 3,026 4,157 11,551 2,343 6,453 7,381 SEASONALLY ADJUSTED 1957_Feb 52.577 16 995 833 3 020 4 168 11,519 2,324 6,401 7,317 Mar 52 547 16 962 831 3 062 4 168 11 490 2,322 6,381 7 331 Apr 52,593 16 965 841 3,059 4 160 11,501 2,320 6,400 7,347 May 52 698 16 946 843 3 097 4 159 11,542 2,329 6,424 7,358 June 52,773 16,924 854 3,108 4,164 11,579 2,336 6,454 7,354 July 52.815 16 880 861 3 061 4 168 11,636 2,343 6,492 7,374 Aug 52 844 16 836 853 3 032 4 184 11 669 2 354 6,477 7 439 Sept 52 662 16 681 849 3 028 4 175 11,620 2,361 6,508 7,440 Oct 52.469 16,604 837 3,013 4,148 11,590 2,368 6,482 7,427 Nov 52 218 16 463 825 2 956 4 113 11 567 2,367 6,512 7 415 Dec 51,980 16 265 821 2 923 4 076 11,508 2,361 6,538 7,488 1958_Jan... 51,756 15,970 807 2,900 4 057 11,625 2,367 6,523 7,507 Feb 51,151 15,637 793 2,702 4,008 11,598 2,368 6,529 7,516 WITHOUT SEASONAL ADJUSTMENT 1957_Feb 51,704 16,945 833 2,673 4 120 11,225 2,301 6,273 7,334 Mar 51 919 16 933 831 2 756 4 147 11 265 2,310 6,317 7,360 Apr 52 270 16 822 833 2 906 4 153 11,428 2,320 6,432 7,376 May 52.482 16,762 835 3,082 4,156 11,411 2,329 6,520 7,387 June 52 881 16 852 858 3 232 4 181 11 505 2,359 6,551 7,343 July 52 605 16,710 857 3 275 4 199 11,493 2,390 6,524 7,157 Aug 52.891 16,955 862 3,305 4,215 11,499 2,389 6,509 7,157 Sept. 53 152 C16 905 853 3 285 4 206 11,620 2,361 6,541 7,381 Oct 53 043 16,783 837 3,224 4 159 11,664 2,356 6,547 7,473 Nov 52.789 16,573 829 3,059 4,123 11,840 2,355 6,512 7,498 Dec 53 084 16 316 825 2 850 4 100 12,365 2,349 6,473 7,806 1958—Jan . 50,987 15,880 807 2,610 3 997 11,456 2,343 6,393 7,501 Feb 50,314 15,586 793 2,391 3,962 11,302 2,344 6,398 7,538 c Corrected. family workers, and members of the armed forces are excluded. Figures NOTE.—Data include all full- and part-time employees who worked for January and February 1958 are preliminary. Back data may be during, or received pay for, the pay period ending nearest the 15th of the obtained from the Bureau of Labor Statistics. month. Proprietors, self-employed persons, domestic servants, unpaid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EMPLOYMENT AND EARNINGS 351 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES [Bureau of Labor Statistics. In thousands of persons] Seasonally adjusted Without seasonal adjustment Industry group 1957 1958 1957 1958 Feb. Dec. Jan. Feb. Feb. Dec. Jan. Feb. Total 13,156 12,408 12,134 11,828 13,114 12,458 12,050 11,780 Durable goods 7,706 7,101 6,874 6,619 7.721 7,136 6,860 6,628 79 67 66 69 79 67 66 69 Lumber and wood products 617 593 588 575 589 581 556 549 307 301 293 289 313 307 297 295 Stone clay and glass products .. 456 435 426 416 449 435 415 410 1,118 999 955 899 1,124 1,004 960 903 Fabricated metal products ... 893 859 828 797 902 868 836 805 Machinery except electrical 1,275 1,116 1,090 1,059 1,294 1,122 1,101 1,075 868 808 783 753 877 824 791 761 Transportation equipment 1,482 1,342 1,276 1,208 1,482 1,342 1,276 1,208 230 217 212 204 230 219 213 204 Miscellaneous manufacturing industries 381 364 357 350 381 368 348 350 Nondurable goods 5,450 5,307 5,260 5,209 5,393 5,322 5,190 5,152 1,089 1,064 1,062 1,060 987 1,032 977 960 Tobacco manufactures 88 82 80 81 84 87 82 77 924 871 856 844 933 884 860 852 Apparel and other finished textiles 1,058 1,044 1,033 1 020 1,095 1,060 1,043 1,056 468 464 458 451 466 466 456 449 Printing, publishing and allied industries 558 556 557 556 555 564 557 553 545 520 514 508 548 523 517 511 Products of petroleum and coal 176 171 171 170 173 169 168 167 212 203 199 192 213 207 201 193 Leather and leather products 332 332 330 327 340 332 330 335 NOTE.—Data covering production and related workers only (full- and 1958 are preliminary. Back data may be obtained from the Bureau of part-time) who worked during, or received pay for, the pay period ending Labor Statistics. nearest the 15th of the month. Figures for January and February HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES [Bureau of Labor Statistics. In unit indicated] Average weekly earnings Average hours worked Average hourly earnings (dollars per week) (per week) (dollars per hour) Industry group 1957 1958 1957 1958 1957 1958 Feb. Dec. Jan. Feb. Feb. Dec. Jan. Feb. Feb. Dec. Jan. Feb. Total 82.41 82.74 81.06 80.85 40.2 39.4 38.6 38.5 2.05 2.10 2.10 2.10 88.75 88.93 87.14 86.52 40.9 39.7 38.9 38.8 2.17 2.24 2.24 2.23 96.18 98.74 100.77 100.70 42.0 40.8 41.3 41.1 2.29 2.42 2.44 2.45 Lumber and wood products 68.51 71.37 69.48 70.20 39.6 39.0 38.6 39.0 1.73 1.83 1.80 1.80 69.55 70.62 67.38 67.61 40.2 39.9 38.5 38.2 1.73 1.77 1.75 1.77 81.61 83.18 82.32 81.27 40.6 39.8 39.2 38.7 2.01 2.09 2.10 2.10 Primary metal industries 99.14 97.16 95.49 95.23 40.3 38.1 37.3 37.2 2.46 2.55 2.56 2.56 87.33 89.24 87.47 87.02 41.0 40.2 39.4 39.2 2.13 2.22 2.22 2.22 95.11 94.30 92.90 92.36 41.9 40.3 39.7 39.3 2.27 2.34 2.34 2.35 Electrical machinery 83.23 83.35 82.89 82.47 40.6 39.5 39.1 38.9 2.05 2.11 2.12 2.12 98.36 99.70 95.20 94.82 41.5 40.2 38.7 38.7 2.37 2.48 2.46 2.45 Instruments and related products 85.69 85.57 84.71 85.14 41.0 39.8 39.4 39.6 2.09 2.15 2.15 2.15 Miscellaneous manufacturing industries.. 72.94 72.65 72.52 72.52 40.3 39.7 39.2 39.2 1.81 1.83 1.85 1.85 Nondurable goods 73.10 74.88 73.54 73.34 39.3 39.0 38.3 38.2 1.86 1.92 1.92 1.92 77.39 80.18 80.20 79.40 40.1 40.7 40.1 39.5 1.93 1.97 2.00 2.01 57.37 60.61 61.15 58.81 38.5 39.1 39.2 37.7 1.49 1.55 1.56 1.56 Textile-mill products 58.80 58.35 56.25 56.55 39.2 38.9 37.5 37.7 1.50 1.50 1.50 1.50 54.39 52.80 52.50 52.80 36.5 35.2 35.0 35.2 1.49 1.50 1.50 1.50 84.60 87.15 86.11 85.70 42.3 41.9 41.4 41.2 2.00 2.08 2.08 2.08 Printing, publishing and allied industries.. 95.48 98.43 95.76 96.27 38.5 38.6 37.7 37.9 2.48 2.55 2.54 2.54 Chemicals and allied products 89.40 93.34 92.62 91.94 41.2 41.3 40.8 40.5 2.17 2.26 2.27 2.27 104.45 111.38 110.43 108.40 40.8 40.8 40.6 40.0 2.56 2.73 2.72 2.71 Rubber products. .. 90.80 92.40 87.71 87.63 40.9 40.0 38.3 38.1 2.22 2.31 2.29 2.30 Leather and leather products 58.60 57.97 57.88 57.72 38.3 37.4 37.1 37.0 1.53 1.55 1.56 1.56 NOTE.—Data are for production and related workers. Figures for January and February 1958 are preliminary. Back data are available from the Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 DEPARTMENT STORES DEPARTMENT STORE SALES AND STOCKS, BY DISTRICTS [Federal Reserve indexes, based on retail value figures. 1947-49 average = 100] Federal Reserve district Year or month U S n t i a t te e s d Boston Y N o e r w k P a p h d h i e i l l a - - C l l a e n ve d - m Ri o c n h d - l A a t nt - a c C a h g i- o Lo S u t i . s M a i po n l n i e s - K C a i n t s y as Dallas F c S r i a a sc n n o - SALESi 1950 107 105 102 107 107 107 111 105 106 107 112 115 106 1951 112 109 107 112 114 115 117 110 111 107 117 120 112 1952 114 110 104 113 115 122 127 109 116 109 121 129 120 1953 118 114 105 117 119 127 131 114 120 110 123 132 122 1954 118 117 108 116 112 129 135 112 121 113 129 136 122 1955 . .. 128 123 113 125 122 140 149 122 132 117 140 149 132 1956 135 126 120 131 128 146 164 128 138 126 144 158 141 1957 136 122 124 132 129 148 169 128 138 128 142 160 141 SEASONALLY ADJUSTED 1957 Jan 132 120 123 130 125 147 158 125 133 123 136 157 137 Feb 136 129 124 129 131 149 165 129 137 129 145 161 141 M[ar . 137 122 124 133 130 152 164 131 139 131 144 161 146 131 117 118 130 122 148 162 125 136 123 137 151 137 M^ay 135 123 124 133 126 148 172 128 137 126 141 158 141 June 138 122 125 139 128 152 175 129 139 126 142 168 148 July 138 125 126 131 132 147 175 131 139 130 145 170 141 Aug 144 130 135 138 139 158 179 139 147 138 147 170 144 Sept 136 114 122 128 134 144 172 130 145 130 147 163 141 Oct 129 116 119 129 121 141 159 121 126 119 136 152 134 Nov 133 118 124 128 129 142 166 125 135 125 139 161 139 Dec 138 128 128 133 133 148 174 130 141 132 142 156 139 1958 Jan 116 125 126 125 »147 121 132 126 156 132 WITHOUT SEASONAL ADJUSTMENT 1957 Jan 102 95 99 97 98 104 123 95 101 90 102 124 109 Feb 104 97 98 98 101 107 136 97 105 96 106 126 108 Mar 114 99 104 115 105 126 151 109 117 103 118 138 115 Apr 131 121 116 129 126 149 165 124 134 124 134 148 133 May 132 123 120 131 122 146 165 126 138 127 139 156 134 June 131 122 121 130 120 140 153 126 129 116 137 153 139 July 111 90 92 96 107 118 145 104 114 104 128 151 125 Aus 127 102 104 110 123 135 161 124 132 130 141 158 139 Sept 139 122 126 134 134 150 165 136 143 139 149 157 141 Oct 134 117 126 132 125 148 167 127 138 138 142 158 135 Nov 162 144 158 171 159 178 193 153 163 145 161 183 162 Dec 241 232 226 236 233 272 301 '221 238 '220 246 270 247 1958—Jan 92 100 95 97 92 100 92 ^103 123 105 STOCKS i 1950 110 112 106 110 108 109 123 108 108 106 114 114 112 1951 131 129 127 132 132 129 145 125 130 121 137 135 137 1952 121 117 115 120 115 127 143 112 120 113 130 129 131 1953 131 124 120 129 125 141 155 122 131 123 146 143 140 1954 128 126 117 127 122 138 152 120 125 124 141 140 135 1955 136 132 119 135 124 159 170 127 135 130 152 153 142 1956 148 141 130 148 133 175 195 138 148 142 164 168 156 1957 152 138 137 154 136 178 203 143 149 146 161 174 158 SEASONALLY ADJUSTED 1957—Jan 151 140 138 149 138 178 202 139 149 144 162 173 153 Feb . .. 149 140 135 149 135 174 200 139 149 144 162 170 151 Mar 150 140 137 150 135 176 202 139 148 145 159 167 155 Apr 152 138 137 149 136 181 203 140 147 150 161 172 161 May 152 140 137 153 135 182 198 142 151 148 161 175 160 June 153 138 137 156 136 184 198 146 151 145 159 176 159 July 154 139 137 154 136 184 204 149 153 141 160 178 159 Aug 153 136 138 157 137 180 203 145 149 145 158 176 159 Sept 154 138 138 159 139 181 201 144 151 145 159 173 162 Oct 155 138 138 156 139 174 208 147 151 148 163 176 163 Nov 154 137 138 158 138 175 206 141 151 150 165 179 162 Dec 150 136 138 154 134 171 207 140 141 143 158 169 152 1958—Jan v\41 131 137 154 ^167 135 138 n69 WITHOUT SEASONAL ADJUSTMENT 1957_jan 135 126 123 131 121 159 183 127 133 133 146 152 138 Feb 142 131 127 143 129 167 198 131 145 138 155 165 142 Mar 155 142 141 155 139 187 212 141 154 149 165 176 156 Apr 159 144 143 159 142 190 213 149 156 153 169 179 164 May 155 143 140 156 139 183 200 147 151 147 163 173 159 June 146 130 129 145 129 170 188 142 141 136 153 164 153 July 144 125 124 138 125 168 190 143 142 134 152 169 154 Aus . 150 132 134 151 131 175 199 139 148 142 156 176 160 Sept 160 144 145 167 144 187 209 150 158 151 164 184 168 Oct 172 156 155 180 154 198 227 161 169 164 177 193 183 Nov 174 161 159 182 156 198 233 161 169 170 183 197 182 Dec 135 127 127 139 122 156 180 124 127 132 144 157 139 nn 1958—Jan 119 122 135 123 127 » Preliminary. r Revised. NOTE.—For description of the series and for monthly indexes beginning 1 Figures for sales are the average per trading day, while those for stocks 1947, see BULLETIN for December 1957, pp. 1323-52. Figures prior to are as of the end of the month or averages of monthly data. 1947 may be obtained from the Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORES; FOREIGN TRADE 353 DEPARTMENT STORE MERCHANDISING DATA [Based on retail value figures] Amounts (In millions of dollars) Ratios to sales4 Period m S (t o a f o l o n e t r t a s h l i ) S m t ( o o e o n c n f k t d h s ) i o ( s e r O t n d i a n d u n e g t r d - o s - 1 f m c ( e t o R f i o o n p e t r - t a t h s l 2 ) o m ( r N t o d f o o e n e t w r r t a h s l ) 3 Stocks s o O t r i a d n u n e g t d r - s - S st p o t i a o n l u n u c g t d s k - - s ce R i e p - ts month) orders Annual average: 1949 361 925 373 358 358 2.7 3.8 1.0 1950 376 1,012 495 391 401 2.8 4.2 1.1 1951 391 1,202 460 390 379 3.2 4.4 1.0 1952 397 1,097 435 397 401 2.9 4.1 1.0 1953 406 1,163 421 408 401 3.0 4.1 1.0 1954 409 1,140 388 410 412 3.0 1.0 4.0 1.0 1955 437 1,195 446 444 449 2.9 1.1 4.0 1.0 1956 454 1,286 470 459 458 3.0 1.1 4.1 1.0 1957 458 1,338 460 460 457 3.1 1.1 4.2 1.0 Month: 1957—Jan.. '365 '1,202 '428 '356 '445 3.3 1.2 4.5 1.0 Feb.. 336 1,252 461 391 422 3.7 1.4 5.1 .2 Mar., 394 1,356 414 498 451 3.4 1.1 4.5 .3 Apr.. 441 1,381 346 466 398 3.1 0.8 3.9 May. 449 1,353 355 421 430 3.0 0.8 3.8 June. 409 1,257 519 313 477 3.1 1.3 4.3 0.8 July. 356 1,245 600 344 425 3.5 1.7 5.2 .0 Aug.. 432 1,300 569 487 456 3.0 1.3 4.3 .1 Sept., 438 1,400 567 538 536 3.2 1.3 4.5 .2 Oct.. 481 1,518 529 599 561 3.2 1.1 4.3 .2 Nov., 554 1,562 427 598 496 2.8 0.8 3.6 .1 Dec.. 839 1,229 307 506 386 1.5 0.4 1.8 0.6 1958—Jan. P 365 1,207 378 343 414 3.3 1.0 4.3 0.9 P Preliminary. ' Revised. 3 Derived from receipts and reported figures on outstanding orders. 1 These figures are not estimates for all department stores in the United 4 The first three ratios are of stocks and /or orders at the end of the States. They are the actual dollar amounts reported by a group of de- month to sales during the month. The final ratio is based on totals of partment stores located in various cities throughout the country. In 1957, sales and receipts for the month. sales by these stores accounted for about 45 per cent of estimated total NOTE.—For description and monthly figures for back years, see BULdepartment store sales. LETIN for October 1952, pp. 1098-1102. 2 Derived from the reported figures on sales and stocks. MERCHANDISE EXPORTS AND IMPORTS [Bureau of the Census. In millions of dollars] Merchandise exports* Mer m ch il a i n ta d r i y s - e a i e d x p s o h r i t p s m e e x n c t l s u 2 ding Merchandise imports3 Period 1956 1957 1958 1956 1957 1958 1956 1957 1958 Jan 1,284 1,680 1,511 1,202 ,583 1,402 1,073 '1,115 ^1,108 Feb 1,363 1,611 ,273 490 1,051 993 Mar . . 1,583 2 151 I 479 <•I 021 1 102 1,133 Apr 1,512 1,864 [,400 ,780 991 1,119 J M un ay e 1 1 , , 7 6 1 9 7 7 1 1 , , 8 7 1 8 3 6 I 1 ,4 5 9 2 2 2 ,6 7 5 1 2 1 1 1 , , 0 0 9 3 5 4 1, r 1 9 0 8 6 4 July 1,640 1,692 1,289 ,505 1,052 1,146 Aug ,536 1 677 378 536 1 055 1,043 Sept ,534 1,540 1,427 ,437 995 1,009 Oct [,671 1,674 1,561 ,600 1,121 1.148 Nov .545 1 683 I 425 596 987 1 043 Dec 2,007 1,639 8SS 1,543 1,059 1,141 Jan.—Dec 19,090 20,810 17,333 19,454 12,615 12,978 P Preliminary. 'Revised. and supplies under the Mutual Security Program. 1 Exports of domestic and foreign merchandise. 3 General imports including imports for immediate consumption plus 2 Department of Defense shipments of grant-aid military equipment entries into bonded warehouses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 PRICES CONSUMER PRICES [Bureau of Labor Statistics index for city wage-earner and clerical-worker families. 1947-49= 100] Housing Read- Other All Ap- Trans- Med- Per- ing good Year or month items Foods Total Rent G an a d s S fu o e l l i s d H f o u u r- se- H h o o u ld se- parel p t o io rt n a- c ic a a re l s c o a n r a e l re a c n re d a- s a e n rv d elec- and nish- opera- tion ices tricity fuel oil ings tion 1929 73.3 65.6 117.4 60.3 1933 55.3 41.6 83.6 45.9 1941 62.9 52.2 88.4 55.6 1945 76.9 68.9 90.9 76.3 1949 101.8 100.0 103.3 105.0 102.5 106.8 99.6 100.1 99.4 108.5 104.1 101.1 104.1 103.4 1950 102.8 101.2 106.1 108.8 102.7 110.5 100.3 101.2 98.1 111.3 106.0 101.1 103.4 105.2 1951 111.0 112.6 112.4 113.1 103.1 116.4 111.2 109.0 106.9 118.4 111.1 110.5 106.5 109.7 1952 113.5 114.6 114.6 117.9 104.5 118.7 108.5 111.8 105.8 126.2 117.3 111.8 107.0 115.4 1953 114.4 112.8 117.7 124.1 106.6 123.9 107.9 115.3 104.8 129.7 121.3 112.8 108.0 118.2 1954 114.8 112.6 119.1 128.5 107.9 123.5 106.1 117.4 104.3 128.0 125.2 113.4 107.1 120.2 1955 114.5 110.9 120.0 130.3 110.7 125.2 104.1 119.1 103.7 126.4 128.0 115.3 106.6 120.2 1956 116.2 111.7 121.7 132.7 111.8 130.7 103.0 122.9 105.5 128.7 132.6 120.0 108.1 122.0 1957 Jan 118.2 112.8 123.8 134.2 112.3 138.9 104.0 125.4 106.4 133.6 135.3 122.1 109.9 123.8 Feb 118.7 113.6 124.5 134.2 112.4 139.3 105.0 125.6 106.1 134.4 135.5 122.6 110.0 124.0 Mar 118.9 113.2 124.9 134.4 112.4 139.2 104.9 126.2 106.8 135.1 136.4 122.9 110.5 124.2 Apr 119.3 113.8 125.2 134.5 112.4 138.1 105.1 126.4 106.5 135.5 136.9 123.3 111.8 124.2 May 119.6 114.6 125.3 134.7 112.3 135.4 104.2 127.3 106.5 135.3 137.3 123.4 111.4 124.3 120.2 116.2 125.5 135.0 112.3 135.3 104.6 127.6 106.6 135.3 137.9 124.2 111.8 124.6 July 120.8 117.4 125.5 135.2 112.3 135.9 104.1 127.9 106.5 135.8 138.4 124.7 112.4 126.6 Aue 121.0 117.9 125.7 135.4 113.3 135.7 103.9 128.0 106.6 135.9 138.6 124.9 112.6 126.7 Sept 121.1 117.0 126.3 135.7 113.7 136.8 104.8 128.3 107.3 135.9 139.0 125.1 113.3 126.7 Oct 121.1 116.4 126.6 136.0 113.8 137.6 104.8 128.7 107.7 135.8 139.7 126.2 113.4 126.8 Nov 121.6 116.0 126.8 136.3 114.3 138.0 104.5 129.4 107.9 140.0 140.3 126.7 114.4 126.8 Dec 121.6 116.1 127.0 136.7 114.3 138.3 104.9 129.6 107.6 138.9 140.8 127.0 114.6 126.8 1958 Jan . 122.3 118.2 127.1 136.8 115.7 138.4 104.2 129.7 106.9 138.7 141.7 127.8 116.6 127.0 NOTE.—Revised index, reflecting, beginning January 1953, the in- vised weights. Prior to January 1953, indexes are based on the "interim clusion of new series (i.e. home purchases and used automobiles) and re- adjusted" and "old" indexes, converted to the base 1947-49= 100. WHOLESALE PRICES, BY GROUPS OF COMMODITIES [Bureau of Labor Statistics index. 1947-49= 100] Other commodities All Tex- Fuel, Ma- Furni- Year or com- Farm Proc- tile Hides,power, Chem- Rub- Lum- Pulp, Metals chin- ture Non- Tomonth modi- prod- essed prod- skins, and icals ber ber paper, and ery and me- bacco ties ucts foods Total ucts and light- and and and and metal and other tallic mfrs. Misand leather ing allied prod- wood allied prod- mo- house- min- and cellaap- prod- ma- prod- ucts prod- prod- ucts tive hold erals—bottled neous parel ucts terials ucts ucts ucts prod- dura- struc- bevucts bles tural erages 1949 99.2 92.8 95.7 101.3 95.5 96.9 101.9 94.8 98.9 99.2 98.5 104.8 106.6 103.1 104.4 101.6 96.1 1950 103.1 97.5 99.8 105.0 99.2 104.6 103.0 96.3 120.5 113.9 100.9 110.3 108.6 105.3 106.9 102.4 96.6 1951 114.8 113.4 111.4 115.9 110.6 120.3 106.7 110.0 148.0 123.9 119.6 122.8 119.0 114.1 113.6 108.1 104.9 1952 111.6 107.0 108.8 113.2 99.8 97.2 106.6 104.5 134.0 120.3 116.5 123.0 121.5 112.0 113.6 110.6 108.3 1953 110.1 97.0 104.6 114.0 97.3 98.5 109.5 105.7 125.0 120.2 116.1 126.9 123.0 114.2 118.2 115.7 97.8 1954 110.3 95 6 105 3 114.5 95.2 94.2 108.1 107.0 126.9 118.0 116.3 128.0 124.6 115.4 120 9 120 6 102.5 1955 110.7 89.6 101.7 117.0 95.3 93.8 107.9 106.6 143.8 123.6 119.3 136.6 128.4 115.9 124.2 121.6 92.0 1956 114.3 88.4 101.7 122.2 95.3 99.3 111.2 107.2 145.8 125.4 127.2 148.4 137.8 119.1 129.6 122.3 91.0 1957 Jan 116.9 89.3 104.3 125.2 95.8 98.4 116.3 108.7 145.0 121.3 128.6 152.2 143.9 121.9 132.0 124.0 93.2 Feb 117.0 88.8 103.9 125.5 95.7 98.0 119.6 108.8 143.9 120.7 128.5 151.4 144.5 121.9 132.7 124.1 92.4 Mar 116.9 88.8 103.7 125.4 95.4 98.4 119.2 108.8 144.3 120.1 128.7 151.0 144.8 121.9 133.2 124.1 92.0 Apr 117.2 90.6 104.3 125.4 95.3 98.8 119.5 109.1 144.5 120.2 128.6 150.1 145.0 121.5 134.6 124.5 91.4 May 117.1 89.5 104.9 125.2 95.4 99.0 118.5 109.1 144.7 119.7 128.9 150.0 145.1 121.6 135.0 124.5 89.4 June 117.4 90.9 106.1 125.2 95.5 99.9 117.2 109.3 145.1 119.7 128.9 150.6 145.2 121.7 135.1 124.7 87.3 July 118.2 92.8 107.2 125.7 95.4 100.7 116.4 109.5 144.9 119.3 129.5 152.4 145.8 122.4 135.2 127.7 88.8 Aus 118.4 93.0 106.8 126.0 95.4 100.5 116.3 109.8 146.9 118.6 129.9 153.2 146.2 122.6 135.3 127.7 90.1 Sept 118 0 91 0 106 5 126.0 95.4 100.3 116.1 110.2 146.5 117.8 130.1 152.2 146.9 122.3 135 2 127 7 89.4 Oct 117.8 91.5 105.5 125.8 95.1 100.4 115.8 110.4 146.2 117.3 130.9 150.8 147.7 122.6 135.3 127.7 87.7 Nov 118.1 91.9 106.5 125.9 95.0 100.3 115.7 110.3 144.7 116.9 130.9 150.4 149.2 122.7 135.4 127.8 86.8 Dec r118.5 92.6 107.4 r126.1 94.9 r99.5 r116.2 r110.6 145.7 r116.3 131.0 r150.4 r149.4 r123 5 135 7 128 0 87.2 1958 Jan 118.7 93.6 108.8 126.0 94.6 99.5 115.9 110.6 144.8 116.4 130.9 150.0 149.5 123.4 136.4 128.1 88.2 ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICES 355 WHOLESALE PRICES, BY GROUPS OF COMMODITIES—Continued [Bureau of Labor Statistics index, 1947-49= 100] 1957 1958 1957 1958 Subgroup Subgroup Jan. Nov. Dec. Jan. Jan. Nov. Dec. Jan. Farm Products: Pulp, Paper, and Allied Products (Cont.): 100.7 106.3 108.3 121.6 Grains 89.5 80.9 80 5 79 1 Paperboard.. . . .. 136.2 136.6 136.6 136.4 Livestock and poultry 73.9 79.3 '82.6 86.5 Converted paper and paperboard.... 125.6 127.0 '127.2 127.2 Plant and animal fibers . .. 102.9 104.7 103 7 103 0 Building paper and board 141 1 141 7 141 7 141.7 Fluid milk 98.1 99.4 '99.0 97.9 Eggs . 65.7 100.1 93.4 73.9 Metals and Metal Products: 86.6 77.6 78.6 79.5 Other farm products 148.8 144.1 142.5 143.6 Iron and steel 164.3 166.5 166.5 166.9 Nonferrous metals 148.7 130.8 130.6 128.6 Processed Foods: Metal containers 147.5 153.1 153.1 152.7 Hardware 161.5 167.4 '168.1 168.4 Cereal and bakery products 115.8 117.6 118.3 118.0 133.4 128.5 128.5 127.6 Meats, poultry, and fish 84.8 93 6 95 5 100 5 Heating equipment 122 3 122 1 121 5 121.8 Dairy products and ice cream 112.5 114.5 114.7 114.1 Fabricated structural metal products. 133.7 134.6 134.6 134.5 Canned, frozen fruits, and vegetables. 105.6 103.8 104.6 105.0 Fabricated nonstructural metal Sugar and confectionery 113.1 114.4 114.3 114.2 products 141.6 147.0 147.0 146.4 Packaged beverage materials 196.3 172.9 '173.3 173.3 Other processed foods 95.0 96.6 96.3 95.4 Machinery and Motive Products: Textile Products and Apparel: Agricultural machinery and equip- 131.8 137.4 137.9 137.9 Cotton products 92.3 89.8 90.2 90.1 Construction machinery and equip- Wool products 109.1 107.4 105.8 105.2 ment 156.2 165.2 '165.3 165.4 Synthetic textiles 82.1 82.3 82.1 81.2 Metal working machinery 163.4 171.3 171.3 171.3 Silk products 122.8 119.6 119.5 119.4 General purpose machinery and Apparel 99.7 99.6 99 6 99 4 equipment 155.5 160.8 '160.8 160.7 Other textile products 76.8 76.7 75.8 74.7 Miscellaneous machinery 142.5 148.3 148.5 149.0 Electrical machinery and equip- Hides, Skins, and Leather Products: 146.0 150.9 150.8 151.2 Motor vehicles 134.3 138.7 '139.1 139.1 52.1 53.8 50.3 50.2 Leather 88.2 91.2 90.8 90.7 Furniture and Other Household Dura- 120.8 122.6 '122 0 122.0 bles: Other leather products 97.9 98.9 '98.6 98.8 Household furniture 122.0 122.8 122.8 122.8 Fuel, Power, and Lighting Materials: Commercial furniture 146.9 153.8 '154.1 154.1 Floor covering 135.1 132.5 '132.6 132.3 Coal 124.1 125 8 126 3 126 0 Household aDoliances 106 5 105 1 '105 4 105.1 Coke 159.1 161.9 161 9 161 9 Radio ... ^ 91.1 93.4 93.3 93.3 Gas 119.9 116.0 '120.7 120.7 Television 69.9 71.4 71.4 70.7 Electricity 94.9 96.1 96.1 96.1 Other household durable goods 146.8 149.5 '153.1 153.9 124.9 123.5 123.5 122.9 Nonmetallic Minerals—Structural: Chemicals and Allied Products: Flat glass 135.7 135.7 135.7 135.7 Industrial chemicals 123.5 123.6 123.9 123.9 Concrete ingredients 134.6 136.9 136.9 138.9 Prepared paint 124.1 128 1 '128 4 128 4 Concrete products 125.6 126 7 127.2 127.5 99.0 101.6 101 7 103.6 Structural clay products 150.6 155.1 155.1 155.3 Drugs, Pharmaceuticals, cosmetics... 92.6 93.4 93.5 93.5 Gypsum products 127.1 127.1 127.1 127.1 Fats and oils, inedible 58.7 65.2 65.4 63 0 Prepared asphalt roofing . 111.2 124.6 124.6 124.6 Mixed fertilizers 110.2 112.3 112.1 112.2 Other nonmetallic minerals 124.3 128.5 131.1 131.1 105.9 107.7 107 8 110 5 Other chemicals and products 104.5 106.6 '106.9 106.9 Tobacco Manufmctures and Bottled Beverages: Rubber and products: Cigarettes 124.0 134.8 134.8 134.8 Crude rubber 145.4 131.6 135.7 133.7 Cigars 104.2 105.1 105.1 105.9 148.8 153.5 153 5 152 0 Other tobacco products ... 126.0 144.3 144.3 144.3 Other rubber products 140.0 142.3 142.7 143.1 Alcoholic beverages 119.0 119.8 120.3 120.3 Nonalcoholic beverages 148.7 149.3 149.3 149.3 Lumber and Wood Products: Miscellaneous: Lumber ... . 122.6 117.1 '116.4 116.6 Millwork 128.7 128.0 127.7 127.7 Toys, sporting goods, small arms.... 117.5 117.9 118.0 117.9 Plywood 97.1 96.4 95.6 95.6 74.4 61.4 62.1 64.1 Notions and accessories 96.7 97.8 '98.5 97.5 Pulp, Paper, and Allied Products: Jewelry, watches, photo equipment... 107.5 107.7 107.7 107.1 Other miscellaneous 126.1 130.9 130.9 131.6 Woodpulp 118.0 121.2 121.2 121 2 Wastepaper 77.3 88.5 88.5 83.5 Paper 139.2 143.3 143.2 143.2 ' Revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 NATIONAL PRODUCT AND INCOME RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING [Department of Commerce estimates. In billions of dollars] Annual totals Seasonally adjusted annualrates by quarters Item 1956 1957 1929 1933 1941 1950 1953 1954 1955 1956 1957 4 1 2 3 4 Gross national oroduct • •• •• 104.4 56.0 125.8 285.1 363.2 361.2 391.7 414.7 434.4 426.0 429.9 435.5 440.0 432.6 Less * Capital consumption allowances 8.6 7.2 9.0 20.5 26.5 28.9 31.6 34.3 37.1 35.3 36.1 36.6 37.4 38.2 Indirect business tax and related liabilities 7.0 7.1 11.3 23.7 30.2 30.1 32.9 35.0 36.9 36.1 36.4 36.6 37.1 37.4 Business transfer payments .6 .7 .5 .8 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1 3 1 3 .3 .9 .4 .2 2.6 1.7 2.1 1.6 n.a. 1.6 1.8 4.1 3.4 n.a. Plus: Subsidies less current surplus of government enterprises -.1 .0 .1 .2 -.4 -.2 .2 1.1 1.3 1.6 1.4 1.6 1.7 1 4 Eauals* National income 87.8 40.2 104.7 240.0 302.1 299.0 324.1 343.6 n.a. 353.3 355.6 358.5 362.6 n.a. Less: Corporate profits and inventory valua- 10.1 -2.0 14.5 35.1 36.0 33.1 40.7 40.4 n.a. 42.4 41.2 40.7 40.9 n a. Contributions for social insurance .2 .3 2.8 6.9 8.7 9.7 11.0 12.4 14.4 12.8 14.2 14.3 14.6 14.5 Excess of wage accruals over disburse- .0 .0 .0 .0 -.1 .0 .0 .0 .0 .0 .0 .0 .0 .0 Plus * Government transfer payments .9 1.5 2.6 14.3 12.9 15.0 16.1 17.2 19.9 17.7 18.4 20.0 20.0 21.2 Net interest paid by government 1.0 1.2 1.3 4.7 5.0 5.2 5.2 5.7 6.0 5.9 6.0 6.0 6.0 6.1 5.8 2.1 4.5 9.2 9.3 9.9 11.0 11.9 12.1 11.5 12.4 12.5 12.6 11.7 Business transfer payments .6 .7 .5 .8 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1 3 1 3 Eauals * Personal income 85.8 47.2 96.3 227.1 286.0 287.4 305.9 326.9 343.4 334.5 338.3 343.2 346.9 345.5 Less: Personal tax and related payments 2.6 1.5 3.3 20.9 35.8 33.0 35.8 39.7 42.8 40.5 42.2 42.9 43.6 43.4 Federal 1.3 .5 2.0 18.2 32.4 29.2 31.5 35.1 37.8 35.8 37.4 38.0 38.6 38.3 State and local 1.4 1.0 1.3 2.7 3.4 3.8 4.2 4.6 5.0 4.7 4.9 4.9 5.0 5.1 Equals* Disposable personal income 83.1 45.7 93.0 206.1 250.2 254.5 270.2 287.2 300.6 294.0 296.1 300.4 303.3 302.1 Less: Personal consumption expenditures.... 79.0 46.4 81.9 194.0 230.5 236.6 254.4 267.2 280.4 272.3 276.7 278.9 283.6 282.4 Eauals • Personal savins 4.2 -.6 11.1 12.1 19.7 17.9 15.8 20.0 20.2 21.7 19.5 '21.4 19.7 19.8 NATIONAL INCOME, BY DISTRIBUTIVE SHARES [Department of Commerce estimates. In billions of dollars] Annual totals Seasonally adjusted annual rates by quarters Item 1956 1957 1929 1933 1941 1950 1953 1954 1955 1956 1957 National income 87.8 40.2 104.7 240.0 302.1 299.0 324.1 343.6 n.a. 353.3 355.6 358.5 362.6 n.a. Compensation of employees 51.1 29.5 64.8 154.3 208.1 206.8 223.1 241.4 254.4 247.9 251.1 254.0 257.0 255.3 Wages and salaries* 50.4 29.0 62.1 146.5 197.3 195.5 210.3 227.2 238.8 233.3 235.9 238.6 241.3 239.5 Private 45.5 23.9 51.9 124.3 163.5 161.2 174.4 189.4 199.0 194.7 196.8 199. 200.9 199.1 Military .3 .3 1.9 5.0 10.3 10.0 9.8 9.7 9.7 9.7 9.6 9.7 9.8 9.5 Government civilian 4.6 4.9 8.3 17.2 23.5 24.4 26. 28.2 30.1 28.9 29.4 29.7 30.6 30.8 Supplements to wages and salaries .7 .5 2.7 7.8 10.8 11.3 12.7 14.1 15.6 14.6 15.3 15.4 15.7 15.8 Proprietors' and rental income2 20.2 7.6 20.9 44.6 49.3 49.1 49.4 49.9 51.2 50.7 50.9 51.2 51.7 51.3 Business and professional 8.8 3.2 10.9 22.9 25.9 25.9 27.3 28.0 28.7 28.3 28.4 28.7 29.1 28.6 Farm 6.0 2.4 6.5 13.3 13.3 12.7 11.9 11.6 12.1 12.0 12.0 12.1 12.2 12.2 Rental income of persons 5.4 2.0 3.5 8.5 10.2 10.6 10.2 10.3 10.4 10.4 10.4 10.4 10.4 10.4 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.1 36.0 33.1 40.7 40.4 n.a. 42.4 41.2 40.7 40.9 n.a. Corporate profits before tax 9.6 .2 17.0 40.0 37.0 33.5 42.5 43.0 n.a. 45.6 43.9 42.0 41.8 n.a. Corporate profits tax liability 1.4 .5 7.6 17.8 20.3 17.4 21.5 22.0 n.a. 23.3 22.4 21.4 21.3 n.a. Corporate profits after tax 8.3 4 9.4 22.1 16.7 16.0 21.0 21.0 n.a. 22.3 21.5 20.5 20.4 n.a. Inventory valuation adjustment .5 -2.5 -4.9 -1.0 -.3 -1.7 -2.6 -1.5 -3.2 -2.7 -1.3 -.9 -1.2 Net interest 6.4 5.0 4.5 5.9 8.7 9.8 10.9 11.9 12.8 12.3 12.5 12.7 13.0 13.3 n. a. Not available. r Revised. 2 Includes noncorporate inventory valuation adjustment. 1 Includes employee contributions to social insurance funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL PRODUCT AND INCOME 357 GROSS NATIONAL PRODUCT OR EXPENDITURE [Department of Commerce estimates. In billions of dollars] Seasonally adjusted annual rates Annual totals by quarters Item 1956 1957 1929 1933 1941 1950 1953 1954 1955 1956 1957 Gross national product 104.4 56.0 125.8 285.1 363.2 361.2 391.7 414.7 434.4 426.0 429.9 435.5 440.0 432.6 Personal consumption expenditures 79.0 46.4 81.9 194.0 230.5 236.6 254.4 267.2 280.4 272.3 276.7 278.9 283.6 282.4 Durable goods 9.2 3.5 9.7 28.6 29.8 29.4 35.6 33.9 35.1 34.8 35.9 35.0 35.0 34.4 Nondurable goods 37.7 22.3 43.2 100.4 119.1 120.6 126.0 133.3 139.9 135.3 137.3 139.1 142.5 140.8 Services 32.1 20.7 29.0 65.0 81.7 86.6 92.8 99.9 105.4 102.2 103.4 104.9 106.1 107.2 Gross private domestic investment 16.2 1.4 18.1 51.2 50.3 48.4 60.6 65.9 64.4 68.5 63.6 66.2 66.5 61.3 New construction1 8.7 1.4 6.6 22.7 25.8 27.8 32.7 33.3 33.2 33.4 32.8 32.7 33.0 34.0 Residential, nonfarm 3.6 .5 3.5 12.6 11.9 13.5 16.6 15.3 14.2 15.1 14.4 13.9 14.0 14.5 Other 5.1 1.0 3.1 10.1 13.8 14.3 16.1 18.0 19.0 18.4 18.5 18.9 19.0 19.5 Producers' durable equipment 5.9 1.6 6.9 21.1 24.3 22.5 23.7 28.1 30.4 29.9 30.7 30.5 30.5 30.0 Change in business inventories 1.7 -1.6 4.5 7.4 .3 -1.9 4.2 4.6 .8 5.1 .0 2.9 3.0 -2.7 Nonfarm only 1.8 -1.4 4.0 6.4 .9 -2.4 4.0 5.0 .2 5.7 -.3 2.2 2.3 -3.4 Net foreign investment .8 .2 1.1 -2.2 -2.0 -.4 -.4 1.4 3.2 2.4 4.1 3.5 3.2 2.0 Government purchases of goods and services 8.5 8.0 24.8 42.0 84.4 76.6 77.1 80.2 86.4 82.8 85.6 86.9 86.7 87.0 Fede N ra a l tional security 1.3 2.0 1 1 6 3 . . 9 8 2 1 2 8 . . 1 5 5 5 9 1 . . 5 5 4 4 8 3 . . 9 1 4 46 1 . . 8 3 4 47 2 . . 2 4 4 5 5 0 . . 7 4 4 4 9 4 . . 0 2 5 4 0 5 . . 3 5 4 51 6 . . 1 3 5 4 0 5 . . 6 8 4 4 5 9 . . 0 7 Other 1.3 2.0 3.2 3.9 8.4 6.2 5.9 5.2 5.2 5. 5.2 5.2 5.2 5.0 Less: Government sales 2 .0 .0 .0 .4 .4 .4 .4 .4 .4 .4 .4 .4 State and local 6.0 7.8 2i 27.7 30.3 33.0 36.0 33.9 35.3 35.8 36.1 37.3 7.2 i Includes expenditures for crude petroleum and natural gas drilling. 2 Consists of sales abroad and domestic sales of surplus consumption goods and materials. PERSONAL INCOME [Department of Commerce estimates. In billions of dollars] Wage and salary disbursements Divi- per L s e o s n s al Pro- dends Trans- contri- Non- Year or month 1 in s P c o e o n r m a - l e Total p d m i C r n u o o g s o d t d m r i u i i n t e c - y - s - D i u n i t s r t d i i t e u v ri s s e b - - S in e tr r d i v e u i s s c - e G m er o e n n v - t - in O la c t b o h o m e r r e2 p in r r e a c i n e n o t t d m o al r e s 3 ' i i n n s p a t c o e e n o n r r d m a e - l s e t m p f e e a n r y - t - s4 b i s a u n o n f t s o c i c u o i r e a r n 5 - l s a in g t c u r o i r c a m u l l e - * 1929 85.8 50.4 21.5 15.6 8.4 4.9 .6 20.2 13.2 1.5 .1 77.7 1933 47.2 29 0 9 8 8 8 5.2 5.1 .4 7.6 8.3 2.1 .2 43.6 1941 96.3 62.1 27.5 16.3 8.1 10.2 .7 20.9 10.3 3.1 .8 88.0 1952 271.8 184.9 80.4 48.7 23.0 32.9 5.3 50.8 21.3 13.2 3.8 253.1 1953 286.0 197 4 87 7 51 3 24 5 33.9 6.0 49.3 23.0 14.3 3.9 269.2 1954 287.4 195 5 83 6 51.9 25.8 34.3 6.2 49.1 24.9 16.2 4.6 271.3 1955 305.9 210.3 90.9 55.4 28.2 35.9 6.9 49.4 27.1 17.4 5.2 290.6 1956 326.9 227.2 98.3 60.1 31.1 37.9 7.5 49.9 29.5 18.5 5.7 311.7 1957 343.4 238.8 102.0 63.7 33.3 39.8 7.9 51.2 31.0 21.2 6.8 327.5 1957_Feb 338.5 235.9 102.0 62.4 32.4 39.1 7.8 51.0 30.8 19.7 6.7 322.7 Mar 340.2 237.2 102.3 63 0 32.6 39.3 7.8 51.1 30.9 20.0 6.8 324.5 Apr. 341.1 237 1 102 4 62 7 32 9 39 1 7 8 51.1 31.0 20.8 6.7 325.3 May 343.2 238.3 102.4 63.4 33.0 39.5 7.8 51.1 31.2 21.6 6.8 327.5 June ... 345.1 240 1 103 3 63 8 33 2 39.8 7.9 51.2 31.2 21.5 6.8 329.3 July 346.3 240.9 103.0 64.5 33.4 40.0 7.9 51.7 31.4 21.3 6.9 330.5 Aug 347.3 241.7 102.8 64.7 33.7 40.5 8.0 51.7 31.6 21.2 6.9 331.3 Sent 347.2 241.5 102.2 64.8 33.9 40.6 8.0 51.7 31.6 21.2 6.8 331.3 Oct 346.8 240.1 101.3 64.3 34.0 40.5 8.0 51.7 31.7 22.1 6.8 331.0 Nov 346.2 239 5 100 9 64 2 34 1 40.3 8.0 51.2 31.7 22.6 6.8 330.3 Dec 343.6 238.8 99.8 64.4 34.2 40.4 8.0 50.9 29.7 23.0 6.8 327.6 1958—Jan , 343.6 237.0 97.6 64.8 34.2 40.4 7.9 50.5 31.7 23.3 6.8 327.6 Feb» . 341.8 234.8 95.2 64.7 34.4 40.5 7.8 50.7 31.8 23.5 6.8 325.6 9 Preliminary. well as consumer bad debts and other business transfers. 1 Monthly data are seasonally adjusted totals at annual rates. 5 Prior to 1952 includes employee contributions only; beginning January 2 Represents compensation for injuries, employer contributions to 1952, includes also contributions to the old-age and survivors' insurance private pension and welfare funds, and other payments. program of the self-employed to whom coverage was extended under the 3 Represents business and professional income, farm income, and Social Security Act Amendments of 1950. Personal contributions are rental income of unincorporated enterprise; also a noncorporate inventory not included in personal income. valuation adjustment. 6 Represents personal income exclusive of net income of unincorporated 4 Represents government social insurance benefits, direct relief, mus- farm enterprise, farm wages, agricultural net interest, and net dividends tering-out pay, veterans' readjustment allowances and other payments, as paid by agricultural corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

* International * International capital transactions of the United States. 360 Gold production. . 364 Net gold purchases and gold stock of the United States. . 365 Reported gold reserves of central banks and governments. . 366 Estimated foreign gold reserves and dollar holdings. . 367 International Bank and Monetary Fund. . 368 Central banks . 368 Money rates in foreign countries. . 373 Foreign exchange rates. . 374 Index 385 Tables on the following pages include the prin- dealers in the United States in accordance with cipal available statistics of current significance the Treasury Regulation of November 12, 1934. relating to international capital transactions of Other data are compiled largely from regularly the United States, foreign gold reserves and dol- published sources such as central bank statelar holdings, and foreign central banks. Figures ments and official statistical bulletins. Back figon international capital transactions of the ures for 1941 and prior years, together with de- United States are collected by the Federal Re- scriptive text, may be obtained from the Board's serve Banks from banks, bankers, brokers, and publication, Banking and Monetary Statistics. 359 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 INT'L CAPITAL TRANSACTIONS OF THE U. S. TABLE 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES 1 [Amounts outstanding, in millions of dollars] Total foreign In- countries Ger- Date t t i e i n o r s n n t a a i- - l Official France m R F a e e n p d y . . , Italy S l w a e n r i - t d z- U K d n i o i n m t g e - d E O u t r h o e p r e E T u o ro ta p l e Canada Am La e t r i i n ca Asia o A th l e l r tutions2 and Official of private 1954_Dec. 31.... 1,770 11,149 6,770 715 1,373 579 672 640 1,642 5,621 1,536 1,906 1,821 265 1955—Dec. 31.... 1,881 11,720 6,953 1,081 1,454 785 757 550 ,519 6,147 1,032 2,000 2,181 360 1956—Dec. 31.... 1,452 13,487 8,045 626 1,835 930 836 1,012 1,627 6,865 1,516 2,346 2,415 346 1957—Jan. 31.... 1,809 '13,208 '7,760 538 1,790 905 800 867 1,676 6,575 1,531 '2,383 2,382 337 Feb. 28.... 1,681 13,090 7,551 490 1,764 885 775 869 1,735 6,518 1,564 2,309 2,323 375 Mar. 31.... 1,558 13,002 '7,549 423 1,764 886 774 929 ,754 6,530 1,496 2,345 2,243 388 Apr. 30 1,358 '13,093 47,808 420 1,728 909 742 903 ,804 6,507 1,521 '2,509 2,160 396 May 31.... 1,700 13,121 7,810 367 1,732 937 775 926 1,764 6,502 1,619 '2,549 2,053 398 June 30 1,573 '13,282 '7,941 403 1,690 959 '809 969 1,793 '6,623 1,591 '2,687 1,990 391 July 31.... 1,545 '13,265 '7,808 514 1,559 979 778 1,008 1,725 6,563 1,659 '2,673 1,986 384 Aug. 31.... 1,635 13,267 7,627 450 1,577 1,009 769 944 1,754 6,502 1,724 2,683 1,981 377 Sept. 30.... 1,512 13,336 7,644 411 1,664 1,029 802 807 1,855 6,569 1,655 2,723 2,015 373 Oct. 31*... 1,517 13,747 7,910 394 1,573 1,057 857 1,161 1,946 6,987 1,739 2,671 1,975 374 Nov. 30*... 1,538 13,610 7,795 352 1,567 1,032 865 1,200 1,964 6,980 1,735 2,596 1,937 362 Dec. 31*... 1,517 13,611 7,893 355 1,557 1,079 965 1,275 1,910 7,141 1,623 2,556 1,940 351 1958—Jan. 31*... 1,619 13,684 7,998 331 1,520 1,083 940 1,330 2,036 7,240 1,597 2,516 1,950 382 Table la. Other Europe Date E O u t r h o e p r e A tr u i s a - g B iu e m l- m De a n rk - l F a i n n d - Greece N la e e n r t d - h s - N w o a r y - t P u o g r a - l m R a u n - ia Spain S d w e e n - T k u e r y - Y sl u a g v o ia - o A th l e l r 1954 Dec 31 J.642 273 100 71 41 113 249 103 91 8 71 141 8 9 363 1955—Dec. 31.. 1,519 261 108 60 49 176 164 82 132 8 104 153 9 13 201 1956—Dec. 31 1,627 296 117 65 53 177 134 67 137 1 43 217 20 17 281 1957_jan. 31 1,676 294 125 64 54 181 117 69 138 1 42 230 16 14 332 Feb. 28 . 1,735 297 135 76 61 184 122 67 134 1 40 229 22 17 350 Mar. 31 1,754 296 141 76 59 178 120 76 123 1 32 228 14 14 396 Apr. 30 ,804 298 142 71 60 181 110 73 117 1 28 245 20 11 446 May 31 1,764 298 120 65 59 175 111 75 120 1 25 253 12 12 439 June 30 1,793 302 119 61 59 166 110 87 120 1 25 268 14 11 449 July 31 1,725 315 120 97 61 156 98 85 115 1 25 278 12 9 351 Aug. 31 1,754 328 123 101 55 143 115 87 116 1 24 272 16 11 362 Sept 30 1,855 337 132 102 62 139 172 94 124 1 24 273 12 12 371 Oct. 31* ,946 345 137 97 68 144 186 97 129 1 30 255 19 9 429 Nov. 30* 1,964 347 131 100 66 146 215 95 127 1 26 265 16 11 418 Dec. 31* .910 349 130 112 65 154 203 93 142 1 25 259 18 11 348 1958—Jan 31* 2,036 372 113 126 64 154 240 117 137 1 22 264 16 7 403 Table lb. Latin America Neth- Date A L m i a c t a e in r- A t r i g n e a n- l B iv o i - a Brazil Chile l C o b o m ia - - Cuba m p D i R c u li i o e a b c n - - n - - G m u a a l t a e- M ic e o x- l I W S a a n e u n n d r e r d d - i s i e s - t s l a p P i R m c u a e b n a - o - - , f Peru v S a E a d l l o - r U gu r a u y - V zu e e n l e a - A O L i m a t c h t a e i e n r r nam 1954_Dec. 31 1 906 160 29 120 70 222 237 60 35 329 49 74 83 30 90 194 124 1955—Dec. 31 2,000 138 26 143 95 131 253 65 45 414 47 86 92 24 65 265 112 1956—Dec. 31 .. 2,346 146 29 225 91 153 211 68 64 433 69 109 84 25 73 455 111 1957_jan. 31.. r2,383 140 27 241 86 186 217 67 66 All '67 109 81 37 76 448 114 Feb. 28 2,309 142 27 240 86 175 220 76 69 413 '68 112 82 39 76 363 120 Mar 31 2 345 138 25 232 91 193 218 78 74 409 66 117 82 41 74 374 133 Apr. 30 -2,509 211 26 216 86 203 226 85 77 393 '68 116 75 39 70 479 139 May 31 r2,549 185 25 184 79 206 241 82 72 375 '68 118 77 43 66 588 139 June 30 r2 687 164 24 143 88 205 257 87 70 339 '64 135 75 50 65 781 138 July 31 '2,673 142 27 127 73 213 274 94 67 352 74 129 73 46 60 '788 133 Aug 31 2 683 135 28 133 78 195 285 67 65 393 71 132 72 39 56 798 136 Sept. 30.. 2'723 147 28 133 77 186 280 59 60 371 75 129 61 34 60 896 129 Oct. 31* 2,671 160 24 145 76 202 235 57 60 367 75 140 64 26 55 858 126 Nov. 30* 2,596 151 24 149 76 175 235 58 62 360 72 133 62 22 55 835 127 Dec. 31* 2,556 137 26 132 75 153 235 54 65 375 73 136 60 27 55 829 124 1958—Jan. 31* 2,516 138 23 120 78 148 240 51 68 386 71 123 56 32 72 773 136 Preliminary. ' Revised. For other notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INT'L CAPITAL TRANSACTIONS OF THE U. S. 361 TABLE 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES i— Continued! [Amounts outstanding, in millions of dollars] Table lc. Asia and All Other Asia All other Ko- Date Total H K o o n n g g India I n n e d s o ia - Iran Israel Japan p r R u l e i e b a c - - , P p i h i p n i - e l- s T w a a i n - T la h n a d i- Other Total A tra u l s i - a C g B o i e n a l n g - o Egypt A U S f n o r o i u i f o c t a n h Other of 1954—Dec. 31 1,821 61 87 100 31 41 721 96 257 34 123 270 265 48 44 47 33 94 1955—Dec. 31 2,181 55 73 174 37 53 893 88 252 39 138 380 360 75 42 72 53 119 1956—Dec. 31 2,415 66 76 186 20 45 1,017 99 272 61 148 425 346 84 44 50 53 114 1957_jan. 31 2,382 64 75 179 21 37 994 101 269 63 158 421 337 64 42 52 58 121 Feb. 28 2,323 61 76 166 31 38 937 102 254 65 161 432 375 68 44 69 63 132 Mar. 31 2,243 56 77 145 40 35 875 104 244 68 167 433 388 80 42 60 60 147 Apr. 30 2,160 58 77 129 33 30 835 106 227 75 165 425 396 85 42 61 56 152 May 31 2,053 56 78 126 29 40 728 106 218 75 166 432 398 88 41 59 58 153 June 30 1,990 59 76 128 35 36 626 107 217 79 167 461 391 75 40 58 60 158 July 31 1,986 65 79 139 31 46 605 106 206 79 167 463 384 80 42 57 51 153 Aug. 31 1,981 66 78 167 30 41 586 106 217 78 170 443 377 78 41 53 49 156 Sept. 30 2,015 72 82 179 49 53 570 106 215 76 163 450 373 81 39 54 47 152 Oct. 31? 1,975 72 88 190 43 47 564 110 195 83 162 420 374 85 41 50 45 153 Nov. 30*\... 1,937 71 89 187 42 46 555 112 174 85 159 417 362 84 42 45 39 151 Dec. 31?.... 1,940 70 82 151 55 52 580 117 175 86 157 416 351 85 39 40 38 149 1958—Jan. 31P 1,950 65 78 138 55 49 594 118 184 87 156 426 382 82 41 42 59 157 Table Id. Supplementary Areas and Countries5 End of year End of year Area or country Area or country 1953 1954 1955 1956 1953 1954 1955 1956 Other Europe: Other Asia (Cont.): Albania .2 .2 .4 n.a. British dependencies 9.1 9.8 9.8 8.8 British dependencies 4 6 4 4 Burma 23.0 29.7 19.1 7.0 Bulgaria. 6 6 7 2 Cambodia n a 2 13 1 17 2 Czechoslovakia6 6 7 7 5 Ceylon 17 1 18.8 32.9 41.2 Eastern Germany n.a. 1.2 1.3 1.2 China Mainland6 . 36.4 35.7 36.2 35.5 Estonia 1 9 1 9 1 8 n a Iraq 13.8 10.0 14.7 16.9 Hungary 1.0 1.0 1.0 .8 Jordan .. .9 .8 1.2 2.0 Iceland.. .. 7.5 8.9 4.8 3.1 Kuwait 10.1 10.7 3.5 5.3 Ireland, Republic of 14.1 14.3 13.7 9.1 Laos . . ... n.a. .1 23.1 n.a. Latvia... 1.3 1.0 1.0 .6 Lebanon 23.9 16.5 18.0 22.3 Lithuania 4 5 3 4 Pakistan 9 7 3.8 5.7 20.2 Luxembourg 4.0 4.5 3.1 13.2 Portuguese dependencies 5.3 1.8 2.0 2.7 Monaco 3.0 5.3 5.6 4.3 Ryukyu Islands n.a. 26.9 34.0 n.a. Poland6. . 2 2 2 1 2 5 3 3 Saudi Arabia 18 5 61 5 79 5 n a. Trieste 2 5 2 2 1 4 1 4 Syria 20 5 21.5 13.1 17.1 U. S. S. R.6 2.0 1.8 .7 .8 Viet-Nam n.a. 8.1 62.3 50.1 Other Latin America: All other: British dependencies 18.0 19.0 16.6 24.1 British dependencies 1.6 1.4 2.4 3.8 Costa Rica 13.4 15.3 17.6 14.6 Ethiopia and Eritrea . . 9.1 18.0 23.7 24.2 Ecuador 17.7 21.2 14.9 18.0 French dependencies 5.7 8.7 8.0 10.5 French West Indies and French Guiana... .6 .4 .6 1.0 Liberia 11.8 5.6 13.1 23.7 Haiti 9 3 12 7 12 1 8 9 Libya 3.0 1.7 9.9 3.7 Honduras . 18.7 17.3 9.7 10.2 M^orocco 15.9 7.6 14.8 13.6 Nicaragua 16 0 10 3 12.8 11 8 New Zealand.. .. 2.1 2.3 1.9 2.2 Paraguay 6.0 3.6 3.6 4.0 Portuguese dependencies 5.0 8.3 5.3 2.8 Spanish dependencies .2 .5 .7 .3 Other Asia: Sudan n.a. n.a. n.a. .4 Afghanistan . 2.7 5.1 4.1 5.3 Tangier 36.1 35.7 33.5 22.4 Bahrein Islands .6 .6 .5 n.a. Tunisia .6 .4 .7 .5 ^Preliminary. n.a. Not available. 4 Beginning Apr. 30, data include certain accounts previously classified 1 Short-term liabilities reported in these statistics represent principally as "private." deposits and U. S. Govt. obligations maturing in not more than one year 5 These data are based on reports by banks in the Second (New York) from their date of issue, held by banking institutions in the United States; Federal Reserve District and include funds held in an account with the small amounts of bankers' acceptances and commercial paper and of U. S. Treasury. They represent a partial breakdown of the amounts, liabilities payable in foreign currencies are also included. shown in the "other" categories in tables la-lc. 2 Includes International Bank for Reconstruction and Development, 6 Based on reports by banks in all Federal Reserve districts. International Monetary Fund, and United Nations and other international NOTE.—Statistics on international capital transactions of the United organizations. Excludes Bank for International Settlements, reported States are based on reports by banks, bankers, brokers, and dealers. under Other Europe. Beginning with the BULLETIN for June 1954 (as explained on p. 591 of 3 Represents funds held with banks and bankers in the United States that issue), tables reflect changes in reporting forms and instructions made (and in accounts with the U.S. Treasury) by foreign central banks and by as of Mar. 31, 1954, as well as changes in content, selection, and arrangeforeign central governments and their agencies (including official pur- ment of material published. For discontinued tables and data reported! chasing missions, trade and shipping missions, diplomatic and consular under previous instructions, see BULLETIN for May 1954, pp. 540-45. establishments, etc.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 INT'L CAPITAL TRANSACTIONS OF THE U. S. TABLE 2. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES 1 [Amounts outstanding, in millions of dollars] Ger- Switz- United Latin Date Total France many, Italy er- King- Other Total Can- Amer- Asia All Fed. land dom Europe Europe ada ica other Rep. of 1954_Dec. 31 1,387 14 70 20 16 173 109 402 76 728 143 37 1955—Dec 31 . 1,549 12 88 30 26 109 158 423 144 706 233 43 1956—Dec. 31 1,946 18 157 43 29 104 216 568 157 840 337 43 1957 Jan 31 2,038 23 168 50 30 109 213 593 171 867 360 48 Feb 28 2,060 18 176 55 33 127 211 621 157 861 375 46 Mar. 31 2,150 26 177 59 26 160 219 667 161 898 375 49 Apr 30 . . .. 2,141 60 177 58 27 151 208 680 108 919 392 41 May 31 2,174 72 174 61 27 176 188 699 114 889 426 46 June 30 . . .. 2,202 82 159 60 28 159 197 686 125 894 451 46 July 31 2,135 96 150 59 31 123 189 646 125 896 421 46 Aug 31 . . 2,160 113 149 55 33 115 192 657 120 935 396 52 Sept 30 2 161 113 150 54 32 110 209 668 111 941 389 52 Oct. 31*> 2,254 106 139 54 36 124 203 663 177 959 407 48 Nov 30^ .... 2,204 105 137 54 37 111 207 651 149 970 385 49 Dec 31^ 2,244 114 140 57 37 109 218 675 150 984 386 50 Table 2a. Other Europe Other Aus- Date Europe tria 1954 Dec 31 109 1955—Dec. 31 158 2 1956—Dec. 31 216 7 1957 Jan 31 213 6 Feb. 28 211 7 Mar. 31 219 8 Apr 30 208 8 May 31 188 6 June 30 197 5 July 31 189 4 Aug. 31 192 6 Sept 30 209 7 Oct. 31P 203 7 Nov 30P 207 Dec. 31P 218 NO NO Bel- Den- Fin- Neth- Nor- Por- Swe- Tur- Yugo- All gium mark land Greece er- way tugal Spain den key slavia other lands 20 10 3 3 16 2 4 4 41 1 5 16 13 3 4 11 9 2 5 7 78 2 7 28 12 4 4 21 23 2 8 13 88 7 30 13 4 4 20 23 2 9 13 85 p> 6 29 10 3 4 21 17 1 7 14 86 8 34 11 3 5 20 18 2 11 14 83 2 8 29 9 3 5 23 17 2 10 14 79 9 28 8 4 4 19 16 1 11 14 67 10 25 8 3 4 23 16 2 12 14 75 9 23 7 4 6 27 17 12 13 63 2 9 25 7 4 6 21 17 19 9 68 2 9 25 6 3 7 24 18 24 9 72 2 11 24 9 4 7 22 16 10 9 81 2 13 25 9 5 6 24 19 11 10 77 2 11 33 11 4 6 24 23 2 11 10 76 10 Table 2b. Latin America Neth- Do- er- Date A L m i a c t e a i r n - A t r i g n e a n- l B iv o ia - Brazil Chile l C o b m i o a - - Cuba m p i R c u i a e b n n - - - G m u a a l t a e- M ic e o x- I l W n a a d n n e i d d e s s t s a p P R m u a e b n a - - - , Peru v S a E a d l l o - r g U u r a u y - V zu e e n l e a - A O L i m a t c h t a e i e n r r lic Suri- lic of nam 1954—Dec. 31 728 6 3 273 14 107 71 3 4 116 1 9 16 10 7 63 27 1955—Dec. 31 706 7 4 69 14 143 92 5 5 154 3 17 29 8 18 105 34 1956—Dec. 31 840 15 4 72 16 145 90 7 7 213 5 12 35 11 15 144 49 1957_jan. 31 867 15 5 77 22 145 99 13 8 216 4 13 34 8 12 145 52 Feb. 28 861 25 4 72 20 148 90 13 7 219 3 10 32 8 11 144 54 Mar. 31 898 37 5 76 22 158 89 10 8 216 3 13 37 8 12 152 51 Apr. 30 919 42 5 78 25 151 92 11 8 213 4 15 36 9 12 163 56 May 31 889 43 5 73 26 144 93 9 7 207 3 13 35 8 13 154 58 June 30 894 48 5 77 35 123 93 9 7 208 3 12 32 8 18 159 56 July 31 896 47 4 94 33 98 91 15 8 212 2 13 36 8 24 158 53 Aug. 31 935 35 5 115 40 91 91 19 8 246 3 13 34 7 30 151 49 Sept. 30 941 29 5 123 28 101 85 17 8 246 3 16 33 6 39 152 50 Oct. 31^ 959 27 9 108 36 126 73 20 8 246 4 16 34 8 38 154 52 Nov. 30^ 970 28 4 96 40 119 106 22 9 231 3 17 35 9 40 157 54 Dec. 31*> 984 28 3 100 36 107 113 19 8 239 2 17 36 8 42 175 51 v Preliminary. (excluded from these statistics) amounted to $1,096 million on Dec. 31, 1 Short-term claims reported in these statistics represent principally the 1957. The term foreigner is used to designate foreign governments, following items payable on demand or with a contractual maturity of central banks, and other official institutions as well as banks, organizanot more than one year: loans made to and acceptances made for for- tions, and individuals domiciled outside the United States, including eigners; drafts drawn against foreigners that are being collected by bank- U. S. citizens domiciled abroad and the foreign subsidiaries and offices ing institutions on behalf of their customers in the United States; and of U. S. banks and commercial firms. foreign currency balances held abroad by banking institutions and their 2 Less than $500,000. customers in the United States. Claims on foreigners with a contractual 3 Includes transactions of international institutions. maturity of more than one year reported by U. S. banking institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTTL CAPITAL TRANSACTIONS OF THE U. S. 363 TABLE 2. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRIES i—Continued [Amounts outstanding, in millions of dollars] Table 2c. Asia and All Other Asia All other Date Total H K o o n n g g India I n n e d si o a - Iran Israel Japan ip P p h i i n l e - s T w a a i n - T l h a a n i d - Other Total t A r u a s li - a C g B o i e n a l g n - o Egypt U S n o o i u f o t n h Other Africa 1954—Dec. 31 143 3 5 1 16 11 50 7 5 6 39 37 14 6 I 6 10 1955—Dec. 31 233 3 5 1 18 10 103 19 6 8 59 43 11 5 I 8 17 1956—Dec. 31 337 4 6 (2) 20 16 170 16 6 9 91 43 11 6 I 8 17 1957—Jan. 31 360 5 7 22 23 186 17 5 10 83 48 11 5 I 8 21 Feb. 28 375 6 7 (2} 22 24 192 18 6 10 89 46 11 5 \ 7 22 Mar. 31 375 6 9 23 24 193 18 5 10 86 49 13 5 7 22 Apr. 30 392 7 10 24 22 210 19 5 10 86 41 10 5 8 17 May 31 426 7 11 1 23 25 244 24 5 13 74 46 13 6 8 18 June 30 451 7 11 22 24 258 30 12 81 46 12 5 11 17 July 31 423 7 11 24 22 250 28 6 11 63 46 12 6 12 15 Aug. 31 396 9 9 24 24 216 40 6 12 58 52 11 6 12 21 Sept. 30 389 9 9 24 23 188 51 6 8 71 52 11 5 11 24 Oct. 31* 407 7 8 8 24 26 174 51 6 11 99 48 11 4 12 20 Nov. 30* 385 8 7 24 25 148 56 6 12 99 49 10 5 14 19 Dec. 31* 386 7 6 22 24 145 53 6 14 110 50 13 5 12 19 (2) TABLE 3. PURCHASES AN ( D2 ) SALES BY [ I F n O m R il E li I o G n N s E of R d S o l O la F rs ] LONG-TERM SECURITIES, BY TYPES3 U. S. Govt. bonds & notes U. S. corporate securities Foreign bonds Foreign stocks Year or month c P ha u s r e - s Sales c s N a h l a e e s t s e p s ( u , o - r ) - r c P ha u s r e - s Sales c s N a h l a e e s t s e p s ( u , o - r ) - r c P ha u s r e - s Sales c s N a h l a e e s t s e p s ( u , o - r ) - r c P ha u s r e - s Sales c s N a h l a e e s t s e p s ( u .o - r ) r - 1954 801 793 1,405 1,264 141 792 841 -49 393 645 -252 i 1955 1,341 812 529 1,886 1,730 156 693 509 184 664 878 -214 1 1956 883 1,018 -135 1,907 1,615 291 607 992 -385 749 875 -126 1 1957* 665 701 -36 1,620 1,421 199 695 1,383 -688 591 620 -29 J 1956—Dec... 13 39 -26 145 108 37 25 77 -52 45 38 1957_Jan... 44 28 16 163 107 57 49 172 -123 54 53 Feb... 134 42 91 146 91 55 34 133 -99 43 42 Mar... 68 '48 '20 117 104 13 43 67 -24 44 51 Apr... 53 8 44 134 113 21 69 215 -146 54 59 -5 May.. 102 157 -55 179 160 19 57 193 -136 59 81 -21 June.. 57 '31 '26 170 135 35 45 '43 '2 76 90 -14 July.. 29 122 -93 161 153 8 130 191 -61 69 60 9 Aug... 18 175 -157 135 119 16 23 36 -13 46 44 2 Sept.. 16 10 6 92 103 -11 49 80 -31 41 46 -6 Oct.*. 33 19 15 108 142 -34 123 106 18 43 42 1 Nov.*, 38 21 18 113 94 19 38 92 -54 35 28 7 Dec.*. 73 40 33 101 101 1 34 55 -21 29 25 4 TABLE 4. NET PURCHASES BY FOREIGNERS OF LONG-TERM UNITED STATES SECURITIES, BY COUNTRIES [Net sales, (-). In millions of dollars] Year or month n t a I u i n n t t i i t s o o e t n i r n - - a s l f c o T t o r r o e i u t e i n a g s l - n France F R m l e G e ic d a p e n e u o r r y - b f a , - l Italy Sw la i n tz d er- U K d n i o n i m t g e - d E O u t r h o e p r e E T u o ro ta p l e Canada A L m a i e t c i r a n - Asia ot A h l e l r 1954 78 72 17 73 70 -20 139 -187 113 3 1955 -21 706 -2 147 96 85 329 265 76 29 1956 82 75 -121 234 8 33 161 -124 34 -1 1957* -157 320 9 98 82 114 308 11 4 1956—Dec.., 1 10 19 -14 -3 -3 i 1957—Jan... 2 70 2 27 7 19 56 4 Feb... 1 145 2 24 41 17 86 54 Mar.. 1 '33 1 11 21 '3 '36 -4 Apr.., 1 65 9 21 10 42 21 -j May., -25 -11 7 7 11 27 -34 June., 1 r61 5 '50 '-6 '51 5 July.. (2) -85 -78 13 -59 -27 1 A D S O N e c u o e p t g v c t . . . . * * . * . . . -141 1 1 - - 2 3 3 6 1 3 6 1 - - 1 1 1 1 1 - - 2 1 1 2 1 3 7 1 - - 1 1 5 2 1 5 - 2 1 1 2 4 5 0 0 _ - 4 2 y 1 9 3 2 5 - - - 1 1 5 7 4 9 -1 1 1 2 c - 2) 2 1 i * Preliminary. ' Revised. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 INT'L CAPITAL TRANSACTIONS OF THE U. S. TABLE 5. NET PURCHASES BY FOREIGNERS OF LONG-TERM TABLE 6. DEPOSITS AND OTHER DOLLAR ASSETS HELD AT FOREIGN SECURITIES OWNED IN THE UNITED STATES, FEDERAL RESERVE BANKS FOR FOREIGN CORRESPONDENTS i BY AREAS [In millions of dollars] [Net sales, (—). In millions of dollars] Assets in custody Inter- Total Y m e o a n r th or n t a u in t t i i s o o t n i n - a s l f c o t o r r e i u e i n g s - n Europe C a a d n a - A L i m a c t a i e n r- Asia o A th l e l r Date Deposits U s . e c S u . ri G ti o es v 2 t. la M n i e s o c u e s l- 3 1954 — 164 -137 Q -133 33 -34 7 1956—Dec. 31 322 3,856 139 1955 -27 4 -46 74 24 -49 -7 1956 -33 -478 8 -447 17 -40 -16 1957__Feb. 28 327 3,671 156 1957 p — 384 — 334 235 -551 15 -45 13 Mar. 31 311 3,744 158 Apr. 30 316 3,727 165 1956—Dec... -3 -41 13 -47 0) -8 0) May 31 360 3,600 164 June 30 449 3,685 164 1957—Jan... -71 -52 16 -72 2 -9 11 July 31 364 3,730 278 A F M M e p a a b r r y . . . . . . . . . . . - - 8 - 1 5 1 9 - - 1 1 - - 3 7 0 4 1 6 7 6 -7 1 \ 1 0 -1 - - - 1 9 8 5 4 7 4 3 0 1 2 ) 0 - - - - 6 2 2 4 -1 0 6 ) 1 A S N O e u o c p t g v . t . . . 3 3 3 3 1 0 1 0 2 3 3 3 3 8 4 7 7 3 2 8 3 3 3 3 , , , , 4 7 5 7 2 8 2 7 1 7 3 4 2 2 3 3 8 7 4 4 0 8 9 4 June.. 1 '-11 -12 r-li 2 -3 14 Dec. 31 356 3,729 353 July... -101 49 117 -70 2 -1 Aug... -6 -5 15 -21 2 -2 1958—Jan. 31 249 3,755 405 Sept... 2 -39 -9 -30 2 -1 — 1 Feb. 28 265 3,552 428 Oct. ». . -77 96 85 13 1 A 0) D N e o c v . . p ? . . -5 0 3 ) -18 6 1 9 0 -18 5 -4 T - - 5 7 0) 1 1958_F F F e e e b b b . . . 1 1 5 2 9 2 2 2 9 8 9 7 4 1 3 3 3 , , , 6 7 6 4 3 5 6 2 4 4 4 4 1 1 2 6 9 0 Feb. 26 274 3,619 429 p Preliminary. r Revised. i Less than $500,000. 1 Excludes assets held for Intl. Bank and Monetary Fund and earmarked gold. See note 4 at bottom of following page for total gold under earmark at Federal Reserve Banks for foreign and international accounts. 2 U. S. Treasury bills, certificates of indebtedness, notes and/or bonds. 3 Consists of bankers' acceptances, commercial paper, and foreign and international bonds. NOTE.—For explanation of table and for back figures see BULLETIN for May 1953, p. 474. GOLD PRODUCTION [In millions of dollars at $35 per fine troy ounce] Production reported monthly Estimated Year or pro w d o u r c l t d ion Africa North and South America Other month Total U.S.S.R.) A So fr u ic th a R de h s o ia - Ghana B C e o l n g g ia o n U S n ta i t t e e s d C a a d n a - M ic e o x- Co b l i o a m- Chile r N ag ic u a a - 1 Au l s ia tra- India 1949 840.0 753.2 409.7 18.5 23.1 12.9 67.3 144.2 14.2 12.6 6.3 7.7 31.3 5.7 1950 864.5 777.1 408.2 17.9 24.1 12.0 80.1 155.4 14.3 13.3 6.7 8.0 30.4 6.7 1951 840.0 758.3 403.1 17.0 22.9 12.3 66.3 153.7 13.8 15.1 6.1 8.8 31.3 7.9 1952 868.0 780.9 413.7 17.4 23.8 12.9 67.4 156.5 16.1 14.8 6.2 8.9 34.3 8.9 1953 864.5 776.5 417.9 17.5 25.4 13.0 69.0 142.4 16.9 15.3 4.6 9.1 37.7 7.8 1954 913.5 826.2 462.4 18.8 27.5 12.8 65.1 152.8 13.5 13.2 4.4 8.2 39.1 8.4 1955 959.0 873.8 510.7 18.4 23.8 13.0 65.7 159.1 13.4 13.3 4.3 8.1 36.7 7.4 1956 994.0 910.6 556.2 18.8 21.9 13.1 65.3 153.4 12.3 15.3 3.3 7.6 36.1 7.3 1956—Dec 73.6 45.8 1.5 2.2 1.0 4.6 12.7 .7 .7 .3 .6 2.9 .6 1957 Jan 77.5 48.3 1.6 2.3 .9 5.0 12.6 1.0 1.5 .4 .6 3.0 .5 Feb 73.7 46.3 J 5 2.3 l.l 4.4 12.0 .8 1.2 .2 .5 2.8 .5 Mar 278.3 49.2 5 2.2 5 5.1 13.2 1.0 .3 .6 3.1 .5 Apr 277 2 49 1 6 2.2 4 7 12 9 7 5 3 2 6 May 278.8 50.6 .5 2.2 1.0 5.0 13.1 .9 .3 .6 3.1 .5 June 277.7 50.1 6 2.2 9 4.9 12.6 .7 .2 .6 3.4 .5 July 51.4 .5 2.3 1.2 5.8 12.8 9 .6 3.7 .5 AUK .. 51.1 2.4 1 5.8 12.6 .8 .6 3 0 Sept 50 3 2 4 5 7 13 1 9 6 3 1 Oct 50.9 1.6 2.4 1 6.5 13 9 .8 6 Nov 49.8 2.4 0 5.1 13.1 1.1 .6 Dec 49.0 2.4 .9 5.5 12.9 .5 1 Gold exports, representing about 90 per cent of total production. Ghana and Belgian Congo, data for which are from American Bureau of 2 Excluding Mexico. Metal Statistics. For the United States, annual figures are from the Sources.—World production: estimates of U. S. Bureau of Mines. U. S. Bureau of the Mint and monthly figures are from American Bureau Production reported monthly; reports from individual countries except of Metal Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. GOLD 365 NET GOLD PURCHASES BY THE UNITED STATES, BY COUNTRIES [In millions of dollars at $35 per fine troy ounce. Negative figures indicate net sales by the United States] Quarterly totals Annual totals Area and country 1956 1957 1950 1951 1952 1953 1954 1955 1956 1957 O D c e t c . . - J M an ar .- . A Ju p n r e .- S Ju e l p y t - . O D c e t c . . - Continental Western Europe: Belgium 1-58.0 1-18.3 1-5.8 1-94.8 3.4 3.4 3.4 3.4 -84.8 -20.0 -67.5 -33.8 Germany (Fed. Rep. of) -10.0 -130.0 -225.6 -10.0 Netherlands -79.8 -4.5 -100.0 -65.0 25.0 20 0 5 0 Portugal -15.0 -34.9 -5.0 -59.9 -54.9 -5.0 Sweden -22.9 -32.0 -20.0 -15.0 "'is'.! '"Is'.i Switzerland -38.0 -15.0 "*22.*5 -65.0 -15.5 -8.0 Bank for Intl. Settlements.... -65.3 -30.4 -8.3 -94.3 -20.0 Other -16.4 -29.7 -17.5 2.6 5.0 4.0 339.3 7.0 1.0 331.3 Total -380.2 -184.8 -115.6 -546.4 -328.3 -77.5 -19.2 67.7 18.6 30.4 6.0 31.3 Sterling Area: United Kingdom -1,020.0 469.9 440.0 -480.0 -50.0 100.3 100.3 Union of South Africa 13.1 52.1 11.5 Other 3.5 3.6 -.3 -.5 5 -.1 Total... -1,003.4 525.6 451.2 -480 5 — 50 5 — .1 100 3 100 3 Canada -100.0 -10 0 7.2 14 6 5 2 14 6 5 2 Latin America: Argentina -49.9 -20.0 -84.8 115.3 75.4 40.1 10.0 10.1 15.0 40.2 -10.0 17.5 -22.8 -3.5 28.1 Cuba 28.2 -20.0 -118.2 -60.2 87.7 -28.1 80.3 Uruguay ... -64.8 22.2 14.9 -15 0 — 5 0 11.0 29 1 3 1 27 1 3 1 Venezuela -.9 -30.0 -200.0 -200.0 Other -7.2 -34.7 -2.4 -.3 17.2 3.0 -.7 2.4 -.2 -3.6 2.8 3.3 Total -172.0 -126.0 57.5 -131.8 62.5 14.0 -28.3 80.9 -133.0 6.5 12.9 15.0 46.6 4-38.9 4-53.7 -6.7 -5.7 -9.9 -4.9 -.2 18.0 — .2 -.4 -.5 4.0 14.9 13.7 13.1 All other 5-44.2 5-76.0 (2) -.4 6200.0 6600.0 625.0 6300.0 6300.0 -.1 (2> Grand total -1,725.2 75.2 393.6 -1,164.3 -326.6 -68.5 280.2 771.6 25.2 341.5 318.4 18.9 92. g 1 Includes sales of gold to Belgian Congo as follows (in millions): 1950, 4 Includes sales of gold to Indonesia as follows: 1950, $29.9 million; $3.0; 1951, $8.0; 1952, $2.0; and 1953, $9.9. and 1951, $45.0 million. 2 Less than $50,000. 5 Includes sales of gold to Egypt as follows: 1950, $44.8 million; and 3 Includes purchase of $31.5 million of gold from Spain. 1951, $76.0 million. 6 Represents purchase of gold from International Monetary Fund. ANALYSIS OF CHANGES IN GOLD STOCK OF THE UNITED STATES [In millions of dollars] Year T ( u r e G e r n a y o d s l - d o f s T t y o o e c a t k a r l ) i I i n n s g c t o o r to e l c d a t k a s l e i e m g x N o o p p e r l o o d t r r t t, g m c o c o r E l r a r e d e r a a a : k i r s n s - e d e e - d e , - p D ti r c o t o i m o d g n o u e l c s d - - Month ( T e r u n G e r d a y o s l o - d f s m T to o o c n t k a th l 1 ) I i n n s g c to o r t e o l c d a t k a s l e i e m g x N o o p p e r l o o d t r r t t, g m c o c o r E r l a r e d e r a a a : i k r s n s e d - e e - d e , - p D ti r c o t o i m o g d o n u e l c s d - - (-) (-) 1945 20,065 20,083 -547.8 -106.3 — 356.7 32.0 1957—Feb 22,304 22 396 18 6 -29.8 28 0 4 4 1946 20,529 20,706 623.1 311.5 465.4 51.2 Mar 22,306 22,406 10.2 -8.8 16.0 5.1 1947 22,754 22,868 22,162.1 1,866.3 210.0 75.8 Apr 22,318 22,424 17.4 20.8 -5.8 4.7 1948 24,244 24,399 1,530.41,680.4 -159.2 70.9 May 22,620 22,726 302.6 20.0 285.4 5.0 1949 24,427 24,563 164.6 686.5 -495.7 67.3 June 22,623 22,732 5.5 10.0 -6.0 4.9 1950 22,706 22,820 -1,743.3 -371.3 -1,352.4 80.1 July 22,627 22,735 3.8 2.7 -.8 5.8 Aug 22,626 22,735 -.5 28.6 -11.4 5.8 1951 22,695 22,873 52.7 -549.0 617.6 66.3 Sept 22,635 22,759 24.1 18.9 -9.0 5.7 1952 23,187 23,252 379.8 684.1 -304.8 67.4 Oct 22,691 22,835 75.4 42.8 36.9 6.5 1953 22,030 22,091 -1,161.9 2.0 -1,170.8 69.0 Nov 22,763 22,837 2.4 26.7 -31.2 5 1 1954 21,713 21,793 -297.2 16.1 -325.2 65.1 Dec 22,781 22,857 20.2 18.8 2.0 5.5 1955 21,690 21,753 -40.9 97.3 -132.4 65.7 1956 21,949 22,058 305.9 106.1 318.5 65.3 1958_Jan 22,784 22,860 2.3 52.6 -37.3 4 4 1957 22,781 22,857 798.8 96.7 600.1 63.6 Feb ^22,686^22,735 ^-124.2 (3) 4-167.6 (3) *> Preliminary. 3 Not yet available. 1 See note 2 on following page. 4 Gold held under earmark at the Federal Reserve Banks for foreign 2 Net after payment of $687.5 million in gold as United States gold sub- and international accounts amounted to $6,227.5 million on Feb. 28, 1958. scription to the International Monetary Fund. Gold under earmark is not included in the gold stock of the United State*. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 GOLD RESERVES REPORTED GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] United States E m n o d n t o h f Est t i o m ta a l ted A t r i g n e a n- t A ra u l s i - a g B iu e m l- Brazil Canada Chile lo C m o b - ia Cuba m De a n r - k Egypt world i Treasury Total 2 1951 Dec '35,660 22,695 22,873 268 112 621 317 850 45 48 311 31 174 1952 Dec r35 970 23 187 23,252 112 706 317 896 42 76 214 31 174 1953 Dec '36 390 22,030 22,091 371 117 776 321 996 42 86 186 31 174 1954—Dec '37,060 21,713 21,793 371 138 778 322 1,080 42 86 186 31 174 1955 Dec .. . '37,720 21,690 21,753 371 144 929 323 1,141 44 86 136 31 174 1956 Dec '38,210 21,949 22,058 107 928 324 1,113 46 57 136 31 188 1957 Jan 22,252 22,377 109 877 324 1,116 43 57 136 31 188 Feb 22 304 22 396 113 864 324 1,110 46 57 136 31 188 Mar '38,520 22,306 22,406 113 848 324 1,112 46 57 136 31 188 Apr 22,318 22,424 182 113 849 324 1,114 46 57 136 31 174 May 22,620 22,726 181 116 849 324 1,116 46 57 136 31 183 June '38 720 22,623 22,732 181 116 842 324 1,121 43 58 136 31 188 July 22,627 22,735 181 116 846 324 1,120 43 58 136 31 188 Aus 22,626 22,735 181 116 882 324 1,135 40 58 136 31 188 Sent r38 800 22,635 22,759 166 116 874 324 1.136 40 136 31 188 Oct 22 691 22 835 127 119 876 324 1*136 40 136 31 188 Nov 22,763 22,837 126 123 875 324 1,127 40 136 31 188 Dec ^38,930 22,781 22,857 126 913 324 1,115 40 136 31 188 1958—Jan 22,784 22,860 946 324 1,116 40 136 31 188 Germany, E m n o d n t o h f l F a i n n d - France3 R F e e p d u e b ra li l c G m u a a l t a e- India I n n e d si o a - Iran Italy Mexico N l e a t n h d e s r- N w o a r y - P s a ta k n i- Peru of 1951 Dec 26 548 28 27 247 280 138 333 208 316 50 27 46 1952—Dec 26 573 140 27 247 235 138 346 144 544 50 38 46 1953 Dec 26 576 326 27 247 145 137 346 158 737 52 38 36 1954—Dec 31 576 626 27 247 81 138 346 62 796 45 38 35 1955 Dec 35 861 920 27 247 81 138 352 142 865 45 48 35 1956 Dec 35 861 1,494 27 247 45 138 338 167 844 50 49 35 1957 Jan 35 861 1,566 27 247 44 138 325 167 834 45 49 35 Feb 35 861 1,661 27 247 44 138 350 167 819 45 49 35 Mar 35 861 1,756 27 247 43 138 364 166 814 45 49 35 Apr 35 861 1,834 27 247 42 138 359 166 809 48 49 35 May 35 861 1,923 27 247 41 138 359 165 806 47 49 35 June 35 575 2,029 27 247 40 138 364 165 806 46 49 35 July 35 575 2,124 27 247 40 138 390 164 793 45 49 35 Aug 35 575 2,261 27 247 41 138 422 163 747 45 49 35 Sept 35 575 2,399 27 247 41 138 428 182 700 45 49 35 Oct .. . . 35 575 2,548 27 247 41 138 443 182 700 45 49 28 Nov 35 575 2 557 247 41 138 700 46 49 28 Dec 35 575 2 542 247 39 138 744 45 49 28 1958—Jan 35 575 2,501 39 138 792 45 49 E m n o d n t o h f Po g r a t l u- E v l a d S o a r l- A So fr u i t c h a Spain Sweden Sw la it n z d er- T la h n a d i- Turkey U K d n o i i n m t g e 4 d - U gu r a u y - V zu e e n l e a - M I ta n o r t n l y . e- B S a I e n n t k t t l l e . f - or Fund ments 1951—Dec 265 26 190 51 152 J.452 113 151 2,335 221 373 1.530 115 1952 Dec 286 29 170 51 184 1,411 113 143 1,846 207 373 1,692 196 1953—Dec 361 29 176 54 218 1,459 113 143 2,518 227 373 1,702 193 1954 Dec 429 29 199 56 265 1,513 113 144 2,762 227 403 1,740 196 1955 Dec . 428 28 212 56 276 1,597 112 144 2,120 216 403 1,808 217 1956—Dec 448 28 224 56 266 1,676 112 144 2,133 186 603 1,692 179 1957 Jan 452 28 226 56 256 1,667 112 144 2,084 186 603 1,420 202 Feb 461 32 227 56 256 1,652 112 144 2,147 186 669 1,433 197 Mar 461 32 233 56 252 1,636 112 144 2,209 183 669 418 168 Apr 461 32 230 56 249 1,621 112 144 2,320 183 669 1,439 160 463 31 235 56 231 ,615 112 144 2,345 183 669 1,141 148 June . 458 31 234 56 231 ,633 112 144 2,381 183 669 1,147 205 July 461 31 226 56 233 ,674 112 144 2,367 183 719 J.148 165 A.U2 466 31 226 56 241 ,694 112 144 2,142 183 719 ,157 184 Sent 467 31 215 56 235 ,725 112 144 1,850 183 719 ,167 138 Oct 464 31 215 56 226 ,733 112 144 2,093 183 719 ,177 130 Nov 469 31 218 56 227 ,718 112 144 2,185 183 719 ,180 143 Dec .... 461 31 217 56 219 '1 706 112 144 2,273 180 719 .180 165 1958 Jan 31 206 56 215 1,715 144 2,404 719 171 P Preliminary. r Revised. gold) used in the Federal Reserve statement "Member Bank Reserves, 1 Excludes U.S.S.R. and other Eastern European countries. Reserve Bank Credit, and Related Items" or in the Treasury statement Represents reported gold holdings of central banks and governments "United States Money, Outstanding and in Circulation, by Kinds." and international institutions, unpublished holdings of various central 3 Represents holdings of Bank of France (holdings of French Exchange banks and governments, estimated holdings of British Exchange Equaliza- Stabilization Fund are not included). tion Account based on figures shown below under United Kingdom, 4 Exchange Equalization Account holdings of gold and of United and estimated official holdings of countries from which no reports are States and Canadian dollars, as reported by British Government. (Gold •received. reserves of Bank of England have remained unchanged at $1 million 2 Includes gold in Exchange Stabilization Fund. Gold in active portion since 1939, when Bank's holdings were transferred to Exchange Equaliza- «of this Fund is not included in regular statistics on gold stock (Treasury tion Account.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES AND DOLLAR HOLDINGS 367 ESTIMATED GOLD RESERVES AND DOLLAR HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS [In millions of dollars] Dec. 3I, 1955 Dec. 31, 1956 Mar. 31, 1957 June 30, 1957 Sept. 30, 1957 Dec. 31, 1957? Area and country Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. GoldA U.S. Gold& U.S. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. term bonds term bonds term bonds term bonds term bonds term bonds dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes Continental Western Europe: Austria 326 10 361 10 368 9 376 8 418 8 446 8 Belgium-Luxembourg (and Belgian Congo).. 1,201 10 1,227 12 1,170 11 1,133 11 1,165 8 1,182 8 Denmark. 91 7 96 6 107 6 92 6 133 6 143 6 Finland 84 5 88 5 94 5 94 5 97 5 100 5 France (and dependencies)1 1,957 151 1,505 7 1,302 8 2996 9 1,004 9 947 9 Germany (Federal Republic of) 2,374 8 3,329 14 3,520 14 3,719 14 4,063 14 4,099 14 Greece 187 187 189 177 152 167 Italy 1,137 2 1,268 2 1,250 2 1,323 2 1,457 2 41,522 2 Netherlands (and Netherlands West Indies 1,044 16 1,100 44 1,071 9 1,024 10 '1,004 10 971 12 Norway 127 53 117 87 121 '93 133 '86 139 81 138 109 601 628 628 622 636 651 Spain (and dependencies) 221 3 160 148 3 142 140 115 3 Sweden 429 (3) 483 (3) 480 (3) 499 (3) 508 (3) 478 7 Switzerland 2,354 44 2,512 131 2,410 132 '2,442 132 2,527 134 2,671 128 Turkey 153 164 8 158 158 8 156 2 162 Others 872 917 898 '15 1,188 873 850 15 Total 13,214 343 14,113 298 13,867 '308 '14,098 '298 14,439 294 14,715 330 Sterling Area: United Kingdom 2,600 282 2,812 203 2,854 238 2,894 '264 2,507 180 2,875 208 United Kingdom dependencies 84 4 103 4 93 4 96 109 4 104 4 Australia 219 191 193 191 (3) 197 211 (3) India 320 1 323 1 324 1 323 1 329 1 329 1 Union of South Africa 265 1 277 1 293 1 294 1 262 1 255 1 Other 214 7 228 14 226 25 226 '29 227 30 224 30 Total 3,702 295 3,934 223 3,983 269 4,024 '299 3,631 216 3,998 244 Canada 2,173 437 2,629 367 2,608 438 2,712 457 2,791 443 2,738 456 Latin America: Argentina 509 8 360 332 8 345 8 313 263 Bolivia 26 29 25 24 28 26 (3) Brazil 466 549 1 556 1 467 1 457 1 456 1 Chile 139 8 137 1 137 1 131 1 117 1 115 1 217 210 250 263 244 211 Cuba 389 169 347 167 354 167 393 167 416 167 371 154 Dominican Republic. 77 8 79 8 89 98 70 65 72 91 101 97 87 92 (3) 556 4 600 4 575 4 504 4, 553 4557 3 Panama, Republic of. 86 1 109 117 1 135 1 129 1 136 1 Peru 127 119 (3) 117 110 96 8 88 El Salvador 52 (3) 53 (3) 73 (3) 81 (3) 65 58 281 259 j 257 2 248 1 243 235 j 668 3 1,058 3 1,043 2 1,450 2 1,615 2 1,548 2 Other 124 15 113 12 134 12 140 11 128 13 123 13 Total 3,789 195 4,113 190 4,160 190 4,486 188 4,561 189 4,344 176 Asia: 255 15 231 188 8 168 8 220 8 190 175 158 178 173 187 193 (3) Japan . . . 1,021 4 1,145 4 1,003 4 754 2 698 2 708 2 268 6 294 6 267 6 243 6 235 6 181 5 Thailand 250 260 1 279 1 279 1 275 1 269 1 Other 647 4 707 6 730 6 767 7 768 7 111 9 Total 2,616 30 2,795 17 2,645 17 2,384 16 2,383 16 2,318 17 All other: Egypt 246 238 248 246 242 228 (3) Other6 '135 '8 '129 '8 '163 '8 '175 '7 166 7 162 Total6 '381 '8 '367 '8 '411 '8 '421 '7 408 7 390 7 Total foreign countries6 '25,875 1,308 '27,951 1,103 '27,674 '1,230 '28,125 '1,265 28,213 1,165 28,503 1,230 International ^ 3,689 321 3,144 391 2,996 391 2,720 366 2,679 222 2,697 222 Grand total6 '29,564 1,629 '31,095 1,494 '30,670 '1,621 '30,845 '1,631 30,892 1,387 31,200 1,452 v Preliminary. ' Revised. 7 Represents International Bank for Reconstruction and Development, * Excludes gold holdings of French Exchange Stabilization Fund. International Monetary Fund, and United Nations and other inter- 2 Does not include $286 million of gold loaned by Bank of France to national organizations. the French Exchange Stabilization Fund on June 26, 1957. NOTE.—Gold and short-term dollars include reported and estimated 3 Less than $500,000. official gold reserves, and total dollar holdings as shown in Short-term 4 Includes latest reported figure (Oct. 31) for gold reserves. Liabilities to Foreigners Reported by Banks in the United States, by 5 Includes Yugoslavia, Bank for International Settlements (both for Countries (Tables 1 and la-Id of the preceding section). U. S. Govt. its own and European Payments Union account), gold to be distributed bonds and notes represent estimated holdings of such securities with origiby the Tripartite Commission for Restitution of Monetary Gold, and nal maturities of more than one year; these estimates are based on a unpublished gold reserves of certain Western European countries. survey of selected U. S. banks and on monthly reports of security transac- 6 Excludes gold reserves of the U. S. S. R. and other Eastern European tions. For back figures see BULLETIN for March 1956, pp. 304-05. countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 INTERNATIONAL INSTITUTIONS INTERNATIONAL BANK FOR RECONSTRUCTION AND INTERNATIONAL MONETARY FUND DEVELOPMENT [End-of-month figures. In millions of dollars] [End-of-month figures. In millions of dollars] 1957 1956 1957 1956 Item Item Oct. July Apr. Jan Oct. Dec. Sept. June Mar. Dec. Gold 1,177 1,148 1,439 1,420 1,687 Dollar deposits and U. S. securities. 602 524\ 484I 430 365 Investments^ 200 200 200 200 200 Other currencies and securities1... 813 858 872 901 931 Currencies: United States 1 811 992 977 1,423 1,697 Effective loans2 2,606 2,54S 2,43'r 2,378 2,238 Other 1 5,948 5,777 5,489 5,051 4,387 Other assets3 75 It> 11 54 41 Unpaid member subscriptions 874 818 817 824 942 Other assets 8 6 5 3 2 IBRD bonds outstanding 1,269 1,141 1,034\ 948 848 Undisbursed loans 620 67*> 67C) 676 609 Member subscriptions 9,016 8,941 8,932 8,929 8,929 Other liabilities 21 2C) IS> 20 11 Accumulated net income. -2 -6 -10 -14 319 302\ 28S> 266 254 Reserves and liabilities.., 2 2 2 Capital 1,867 1,86'f 1,854I 1,853 1,853 Cumulative net drawings Quota on the Fund Loans by country, Jan. 31, 1958 Country9 Paid 1957 1956 Outstanding Total in Area and member country4 gold Dec. Nov. Dec. Prin- Dis- Recipal bursed paid Sold Total to Argentina 150 38 75 75 others5 Belgium 225 56 50 50 Brazil 150 38 75 75 38 Chile 50 9 31 25 13 Continental W. Europe, total. . 1,197 1,044 197 847 73 Colombia 50 13 25 25 25 Belgium and Luxembourg... 173 121 13 108 25 Cuba 50 13 25 25 13 France 267 267 18 249 14 Denmark 68 6 34 34 Italy 163 102 101 7 Egypt 60 10 30 30 15 Netherlands 236 236 143 93 21 France 525 108 263 263 Other 358 318 23 295 6 India 400 28 200 200 Indonesia 110 16 55 55 55 Sterling area, total 1,142 803 84 719 87 Iran 35 9 25 25 25 Australia 318 285 14 272 26 Japan 250 63 125 125 356 218 25 193 14 Netherlands 275 69 69 69 Pakistan . . .. 112 55 9 46 4 United Kingdom 1,300 236 562 562 562 Union of S. Africa 160 135 26 109 20 United States. . . 2,750 688 10-1,936 io-l,926 io_969 United Kingdom 146 82 4 79 24 Other 49 27 7 20 Notes to tables on international institutions: Latin America, total 744 581 66 515 26 1 Currencies include demand obligations held in lieu of deposits. Brazil 182 167 17 150 1 2 Represents principal of authorized loans, less loans not yet effective, Colombia . 111 90 19 71 3 repayments, the net amount outstanding on loans sold or agreed to be O M t e h x e i r co 2 1 9 5 8 2 1 1 8 4 2 2 2 1 0 0 1 1 6 3 1 2 1 1 0 3 sol 3 d E to x c o lu th d e e r s s , u a n n ca d l l e e x d c h p a o n r g ti e o n a s d j o u f s t c m ap e i n t t a . l subscriptions. * Loans to dependencies are included with member. Asia (excl.Sterling area),total. 320 161 6 155 14 5 Includes also effective loans agreed to be sold but not yet disbursed. Thailand 107 37 4 33 2 6 Includes $200 million in loans not yet effective. Other 213 124 2 121 12 7 Includes $181 million not guaranteed by the Bank. * U. S. Treasury bills purchased with proceeds of sales of gold. Africa (excl. Sterling area).... 24 8 1 7 1 9 Countries shown are those with cumulative net drawings of $25 million or more on the latest date. Total 63,426 2,597 354 2,243 7202 1 ° Represents sales of U. S. dollars by the Fund to member countries for local currencies, less repurchases of such currencies with dollars. PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS Bank of England (millions of pounds sterling) A d ss e e p t a s r o tm f e is n s t ue Assets of banking department Liabilities of banking department Date Note Gold (fi O a d s u t s h c e i e t a s r ry Coin Notes a c n o D d u i n s a - t d s - Se t c ie u s ri- ci t r i c o u n l 1 a- Deposits C su a a r p n p i d l t u a s l issue) vances Bankers' Public ECA Other 1953—Dec. 30 .4 1,675.0 2.4 55.4 4.9 338.1 1,619.9 290.2 14.9 7.2 70.4 18.2 1954_Dec. 29 .4 1,775.0 2.4 23.7 8.9 350.7 1,751.7 276.1 15.4 9.6 66.3 18.1 1955—Dec. 28 .4 1,900.0 2.3 10.7 37.7 299.6 1,889.6 245.2 12.0 3.2 71.7 18.1 1956—Dec. 26 .4 2,025.0 1.9 27.7 11.0 267.7 1,997.7 203.6 11.6 74.9 18.1 1957_Feb. 27 .4 1,925.0 2.0 52.0 15.8 261.0 1,873.4 225.2 13.5 73.7 18.5 Mar. 27 .4 1,925.0 2.3 22.5 18.6 290.3 1,902.8 228.9 13.7 72.5 18.5 Apr. 24 .4 1,975.0 2.4 23.1 21.5 259.2 1,952.2 202.4 11.5 74.5 17.8 May 29 .4 1,975.0 2.4 21.7 40.5 243.2 1,953.7 204.4 10.1 75.3 18.0 June 26 .4 2,000.0 2.4 14.9 32.6 268.4 1,985.5 216.3 12.2 71.8 18.1 July 31 .4 2,075.0 2.4 15.9 29.9 262.4 2,059.5 205.0 13.4 73.9 18.3 Aug. 28 .4 1,025.0 2.4 29.9 17.6 253.5 1,995.5 199.3 11.6 74.2 18.5 Sept. 25 .4 2,000.0 2.5 32.9 15.1 271.0 1,967.5 216.8 13.0 73.1 18.5 Oct. 30 .4 2,000.0 2.5 33.4 13.7 288.7 1,967.0 234.6 10.1 75.7 17.8 Nov. 27 .4 2,050.0 2.4 48.9 19.8 260.3 2,001.4 226.9 10.1 76.4 18.0 Dec. 25 .4 2,150.0 2.4 22.4 21.0 263.6 2,128.0 199.5 9.8 81.9 18.1 1958—Jan. 29 .4 2,000.0 2.4 43.2 25.3 239.4 1,957.2 205.1 12.2 74.6 18.3 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS 369 PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued Bank of Canada (millions of Canadian dollars) Assets 2 Liabilities Date S U d S t o a e n ta l r n i l l t t d a i e e n r s d s g D S o c t i h m e a o r l i m r n g t i - o o v n t . a s n e d c u O p r r t i o t h i v e e r s in- Other circ N u o la te tion Ch b a a r n te k r s ed D D o e g m p o o i v n s t i . i o ts n Other li c a O a b a p t i n h l i d i t e t a i r l es 1953—Dec. 31, 54.9 ,376.6 893.7 112.0 1,599.1 623.9 51.5 29.5 133.1 1954—Dec. 31, 54.2 ,361.5 871.1 114.1 1,623.5 529.6 56.3 30.5 161.0 1955—Dec. 31, 57.4 ,283.8 ,093.7 185.2 1,738.5 551.0 89.2 34.0 207.5 1956—Dec. 31 60.8 ,025.0 ,392.0 69.9 1,868.7 511.5 38.8 31.2 97.5 1957—Feb. 28, 60.8 ,052.7 ,189.4 118.6 1.717.9 497.5 52.7 27.2 126.3 Mar. 30, 53.7 ,105.2 ,176.3 213.5 1,724.6 519.5 78.3 25.1 201.2 Apr. 30, 50.3 ,158.0 ,190.2 119.2 1,756.3 546.9 62.9 22.5 129.2 May 31 52.3 ,165.9 ,185.1 188.7 1,751.5 526.3 43.9 32.0 238.3 June 29, 57.3 ,213.3 ,194.3 210.3 1,784.3 545.5 44.4 28.9 272.1 July 31, 63.1 ,197.7 ,202.3 100.7 1,817.7 490.5 54.2 26.9 174.5 Aug. 31, 62.4 ,251.8 ,208.4 203.9 1,815.5 542.8 64.0 33.3 270.9 Sept. 30, 55.3 ,208.4 ,204.2 110.9 1,819.1 480.8 66.9 28.7 183.3 Oct. 31 56.6 ,297.5 ,192.1 163.5 1,824.0 623.7 40.1 25.8 196.0 Nov. 30, 56.2 ,321.5 ,152.0 252.8 1,828.0 543.4 64.3 30.7 316.1 Dec. 31, 63.5 ,246.2 ,217.5 131.5 1,903.7 517.6 35.4 31.2 170.8 1958—Jan. 31, 63.0 1,265.5 1,105.0 182.2 1,776.5 533.8 57.3 23.3 224.8 Bank of France (billions of francs) Assets Liabilities Date Foreign Domestic bills A G d o v v a e n rn c m es e n to t Other Note Deposits l O ia t b h i e l- r Gold ch e a x n - ge m O a p r e k n et Special Other Current Other assets ci t r i c o u n la- Govern- Other* ca i a t p n i i e d t s al 1953—Dec. 31 201.3 15.4 292.5 61.1 891.6 200.0 679.8 170.0 2,310.5 144.9 56.3 1954—Dec. 30 201.3 57.3 236.8 48.9 1,130.2 195.0 617.6 277.2 2,538.5 157.8 67.9 1955—Dec. 29 301.2 200.2 226.7 45.2 1,194.7 190.0 539.8 336.8 2,820.0 142.9 71.8 1956—Dec. 27 301.2 49.6 289.2 30.5 1,753.7 179.0 479.8 236.4 3,046.9 173.8 98.8 1957—Feb. 28 301.2 32.9 317.4 25.0 1,735.7 171.3 479.8 245.7 3,065.8 161.1 82.2 Mar. 28 301.2 23.1 310.3 27.6 1,836.8 175.0 479.8 192.6 3,051.6 214.3 80.6 Apr. 25 301.2 12.2 325.2 24.9 1,871.9 158.3 479.8 196.9 3,044.1 222.7 103.6 May 29 301.2 12.0 322.9 20.2 1,948.1 175.0 479.8 192.4 3,106.9 263.1 81.6 June 27 201.2 12.0 274.9 16.1 2,014.1 175.0 594.1 267.0 3,130.0 330.9 93.6 July 25 201.2 11.9 273.6 7.3 2,027.1 175.0 752.1 306.6 3,238.3 397.7 118.9 Aug. 29 201.2 11.9 307.2 6.2 1,931.4 175.0 789.8 271.1 3,219.7 376.6 97.4 Sept. 26 201.2 11.9 322.7 18.3 1,886.7 175.0 804.8 266.2 3,214.4 359.5 112.9 Oct. 31 201 12.0 315.2 44.0 F,914.9 175.0 829.8 341.1 3,292.5 417.0 123.6 Nov. 28, 201 12.0 282.0 44.6 1,893.9 175.0 820.1 296.2 3,139.9 467.1 118.0 Dec. 26 201 11.9 290.2 52.3 1,951.2 175.0 796.4 295.0 3,174.9 475.3 122.9 1958—Jan. 30 3201.2 11.9 260.3 53.4 1,868.9 175.0 949.4 3268.8 3,191.7 .1 469.0 128.1 1958 1957 1958 1957 Central bank, monetary unit, Central bank, monetary unit, and item and item Jan. Dec. Nov. Jan Jan. Dec. Nov. Jan. Central Bank of the Argentine Republic Commonwealth Bank of Australia (millions of pesos) :* (millions of pounds): Gold and foreign exchange (net)... 618 Gold and foreign exchange 470 475 469 349 Net claim on Intl. Fund7 -675 Checks and bills of other banks.. 4 5 3 6 Advances to Government 2,581 Securities (incl. Govt. and Treas- Government securities 32,230 ury bills) 473 519 497 520 Loans and discounts 69,939 Other assets 46 24 22 58 Other assets ",963 Note circulation 391 425 389 385 Currency in circulation 50,450 Deposits of Trading Banks: Deposits—Government 1,346 Special 340 340 340 279 Banks 5,601 Other 21 22 25 43 Other 257 Other liabilities and capital 241 235 237 227 Other liabilities and capital 51,001 Notes to central bank table on this and opposite page: 6 Under the banking reform, effective Dec. 2, 1957, the Central Bank 1 Notes issued, less amounts held in banking department. has been reorganized. The balance sheet has been substantially modified, 2 Gold was transferred on May 1, 1940, to Foreign Exchange Control and figures are not comparable with those shown previously. Board in return for short-term Govt. securities (see BULLETIN for July 7 This figure represents the amount of the country's subscription to 1940, pp. 677-78). the Fund less the bank's local currency liability to the Fund. 3 Other assets include 100.0 billion francs of gold loaned to Stabiliza- NOTE.—All figures, including gold and foreign exchange, are compiled tion Fund. from official reports of individual banks and are as of the last report date 4 Includes Economic Cooperation Administration. of the month. For details relating to individual items, see BULLETIN for 5 Less than 50 million francs. April 1955, p. 443. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 CENTRAL BANKS PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued 1958 1957 1958 1957 Central bank, monetary unit, Central bank, monetary unit, and item and item Jan. Dec. Nov. Jan. Jan. Dec. Nov. Jan. Austrian National Bank (millions of National Bank of Cuba—Cont. schillings): Foreign exchange (net) 99 142 146 150 Gold 2,653 2,647 2,660 1,967 Foreign exchange (Stabilization Foreign exchange (net) 10,375 10,334 10,409 8,400 Fund) 148 148 163 162 Loans and discounts 5,908 6,358 5,879 6,479 Net claim on Intl. Fund* -13 -13 -13 Claim against Government 1,342 1,532 1,342 1,426 Loans and discounts 81 72 69 "53 Other assets 826 821 823 609 Credits to Government 183 170 154 106 Note circulation 14,846 15,403 15,031 13,758 Other assets 72 71 75 74 Deposits—Banks 2,240 2,392 2,060 1,296 Note circulation 442 468 435 429 Other 926 937 1,044 915 Deposits 231 226 256 228 Blocked 1,122 1,055 1,040 1,196 Other liabilities and capital 33 32 37 24 Other liabilities and capital 1,970 1,906 1,938 1,717 N;ational Bank of Czechoslovakia2 National Bank of Belgium (millions of National Bank of Denmark (millions (francs): of kroner): Gold 47,321 45,664 43,758 43,852 Gold 68 68 68 68 Foreign claims and balances (net). 9,919 10,740 9,192 10,707 Foreign exchange 959 975 828 669 Loans and discounts 11,938 10,528 11,820 10,764 Loans and discounts 229 252 156 205 Consolidated Govt. debt 34,397 34,456 34,456 34,605 Securities 419 491 485 495 Govt. securities 6,033 8,035 9,430 7,491 Govt. compensation account 2,981 2,982 3,002 3,050 Other assets 6,269 7,492 7,738 5,594 Other assets 754 708 827 882 Note circulation 108,904110,302109,388 109,773 Note circulation 2,302 2,432 2,276 2,238 Deposits—Demand 2,416 1,490 1,970 1,792 Deposits—Government 1,448 1,461 1,473 1,477 ECA 20 20 20 20 Other 1,374 1,308 1,346 1,378 Other liabilities and capital 4,538 5,102 5,016 1,429 Other liabilities and capital 286 276 271 277 Central Bank of Bolivia—Monetary Central Bank of the Dominican Redept. (millions of bolivianos): public (thousands of pesos): Gold at home and abroad 7,714 668 Gold 11,405 11,405 11,405 11,396 Foreign exchange (net) 54,421 12,369 Foreign exchange (net) 10,562 13,052 13,831 10,463 Loans and discounts 298,010 196,069 Net claim on Intl. Fund1 2,500 2,500 2,500 2,500 Govt. securities 7,918 6,540 Loans and discounts 8,990 10,508 4,921 6,888 Other assets 13,324 6,551 Govt. securities 7,500 7,830 7,830 8,030 Note circulation 180,960 159,457 Other assets 26,096 26,073 25,759 19,551 Deposits 27,670 26,164 Note circulation 53,127 55,149 50,412 48,375 Other liabilities and capital 172,757 36,576 Demand deposits 10,489 12,323 11,919 7,379 Central Bank of Ceylon (millions of Other liabilities and capital 3,436 3,897 3,914 3,074 rupees): Central Bank of Ecuador (millions of Foreign exchange 593 591 591 736 sucres): Advances to Govt 13 33 56 Gold 325 325 325 Govt securities 60 53 48 10 Foreign exchange (net) 79 82 47 Other assets 7 11 13 7 Net claim on Intl. Fund* -37 -37 38 Currency in circulation 461 475 463 444 Credits—Government 472 466 489 Deposits—Government 3 6 8 61 Other 376 349 254 Banks 88 90 116 159 Other assets 238 269 240 Other liabilities and capital 120 116 120 89 Note circulation 769 745 694 Central Bank of Chile (millions of Demand deposits—Private banks. 247 222 232 pesos): Other 184 170 170 Gold 5,463 5,765 4,371 7,069 Other liabilities and capital 253 317 296 Foreign exchange (net) 523 707 765 1,301National Bank of Egypt (millions of Net claim on Intl. Fund * -2,044 -2,044 -1,356 19 pounds): Discounts for member banks 13,902 15,621 15,914 6,866 Gold 66 66 66 66 Loans to Government 30,864 26,077 26,011 18,370 Foreeigg n aassets 80 81 89 106 Other loans and discounts , 56,896 57,986 55,741 41,832 EEig yptian GGovt. securities 190 190 190 155 Other assets 40,161 31,849 24,682 28,501 Clearing and other accounts (net). -39 -40 -48 -7 Note circulation 77,292 80,529 70,532 61,443 Loans and discounts 40 42 42 41 Deposits—Bank 8,466 8,911 6,481 6,984 Other assets 2 4 3 2 Other 4,444 5,110 3,070 4,639 Note circulation 198 207 213 222 Other liabilities and capital 55,562 41,410 46,110 30,893 Deposits—Egyptian Government. 15 12 10 11 Bank of the Republic of Colombia (mil- Other 107 102 100 3114 lions of pesos): Other liabilities and capital 19 20 20 16 Gold and foreign exchange 310 358 319 343 Ce_n..tjrrial Reserve Bank of El Salvador Net claim on Intl. Fund1 52 52 52 52 (thousands of colones): Loans and discounts 1,524 1,491 1,399 593 Gold 78,559 78,568 78,578 70,214 Govt. loans and securities 629 630 626 637 Foreign exchange (net). .. 28,729 16,383 18,141 51,259 Other assets 298 328 299 231 Net claim on Intl. Fund*. 4,689 4,688 4,688 -4,676 Note circulation 1,008 1,203 983 812 Loans and discounts 94,854102,078 92,276 87,429 Deposits 1,016 864 905 730 Govt. debt and securities 12,406 10,157 9,323 18,097 Other liabilities and capital 789 792 806 315 Other assets 7,583 7,365 9,087 7,364 Central Bank of Costa Rica (millions Note circulation 106,909109,296 99,587 114,683 of colones): Deposits 107,093 97,077 99,358 102,726 Gold 12 12 12 12 Other liabilities and capital 12,818 12,866 13,148 12,278 Foreign exchange 71 54 47 70 BJiank of Finland (millions of markkaa): Net claim on Intl. Fund * 7 7 7 7 Gold 7,850 7,850 7,850 7,849 Loans and discounts 150 168 155 110 Foreign assets and liabilities (net) 32,858 29,878 30,098 20,178 Securities 15 15 15 18 Loans and discounts , 30,581 38,440 31,683 39,094 Other assets 34 30 33 28 Securities—Government 11,250 13,750 16,250 17,500 Note circulation 179 182 163 153 Other 1,247 1,258 1,451 1,755 Demand deposits 52 48 48 56 Other assets 17,138 17,909 16,697 10,515 Other liabilities and capital , 57 56 58 36 Note circulation , 52,837 60,640 57,477 54,160 National Bank of Cuba (millions of Deposits 9,954 8,111 7,069 7,952 pesos): Other liabilities and capital 38,132 40,333 39,481 34,779 Gold 136 136 136 136 r Revised. 3 Includes figure for Sudan Government. 1 This figure represents the amount of the country's subscription to the NOTE.—All figures, including gold and foreign exchange, are compiled Fund less the bank's local currency liability to the Fund. from official reports of individual banks and are as of the last report date 2 For last available reports for Czechoslovakia and Hungary (March of the month. and February 1950, respectively), see BULLETIN for September 1950, pp. 1262-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CENTRAL BANKS 371 PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued 1958 1957 1958 1957 Central bank, monetary unit, Central bank, monetary unit, and item and item Jan. Dec. Nov. JarL. Jan. Dec. Nov. Jan. German Federal Bank4 (millions of Sank of Israel (millions of pounds): German marks): Gold 6 6 6 11 Gold 10 430 10 609 10 691 6 531 Foreign exchange 98 88 88 89 Foreign exchange 12,990 13,239 13,436 11,808 Clearing accounts (net) -11 -12 -12 -7 Loans and discounts 1033 1 573 1770 Loans and discounts 43 52 48 33 Loans to Government 3,433 4,813 3,475 4,037 88 78 72 118 Other assets 1414 305 1070 P8 Other Govt. accounts 130 131 136 65 Note circulation 16,077 16,133 16,402 14,173 149 149 149 152 Denosits Government /\631 4 616 4 5 997 Other assets 6 7 13 9 Banks 453 7,109 5,397 3,54? Notes and coin in circulation 249 243 250 ?39 Other 515 481 526 210 25 24 29 30 Other liabilities and capital 2,622 3, 193 2,757 2,121 Other 210 206 189 189 Bank of Greece (millions of drachmae): 26 25 32 13 Gold and foreign exchange (net) . 5,479 5,901Bank of Italy (billions of lire): Loans and discounts 184 Gold 4 4 4 4 Advances—Government . . 4,949 7,238 71 71 71 71 Other 5 749 4 Advances to Treasury 567 567 567 567 Other assets . . .. 9 600 2 111 445 486 455 475 Note circulation 6 601 5,578 Govt. securities 416 417 415 406 Deposits—Government 1,158 867 1,282 1,289 1,188 '997 Reconstruction and Note circulation 1,751 1,914 1,716 1,654 relief accts 680 7 187 11 9 10 11 Other 5 860 4,400 Demand 127 166 140 10? Other liabilities and capital 1 689 2 093 Other 726 548 652 600 Bank of Guatemala (thousands of Other liabilities and capital 169 197 181 '152 quetzales): Bank of Japan (billions of yen): Gold 97 976 27,?38 Bullion ) Foreicn exchange (net) 37 438 40,370 Loans and discounts 504 552 537 169 Gold contribution to Intl Fund 1 250 1,250 295 387 257 452 Rediscounts and advances 16 908 10?0? Other assets 150 145 146 232 Other assets 4? 959 41 161 693 837 684 676 Circulation—Notes 62 082 57,810 Deposits—Government 41 46 48 48 Coin /\ 4 I'M Other 84 76 83 35 Deposits—Government . . .. q 704 5 959 Other liabilities 131 127 93 Banks 23 401 25,357Bank of Mexico (millions of pesos): Other liabilities and capital 25 502 26,956 1,874 1,939 National Bank of Hungary2 "Authorized" holdings of secu- Reserve Bank of India (millions of 4,958 5,513 rupees) * Bills and discounts 856 8?4 Issue department: Other assets 555 263 Gold at home and abroad ] 178 1 178 1 178 178 Note circulation 5 403 5,?03 Foreicn securities 9 9 759 809 4 Demand liabilities . . . 2 092 2 553 Indian Govt securities 10 568 q 973 q 8?3 g 401 Other liabilities and capital 748 783 Rupee coin 318 1 331 1 351 238Netherlands Bank (millions of Note circulation 15 31? 15 068 14 787 14 855 guilders): Banking department* Gold 2,995 2,812 2,649 3,154 Notes of issue department 207 165 367 236 Silver (including subsidiary coin).. 11 10 11 6 Balances abroad 378 994 839 985 996 949 705 Bills discounted 1? ?7 11 11 Loans and discounts 76 208 178 175 Loans to Government .. 360 350 75 Govt. debt and securities 628 685 660 694 Other assets ? 379 ? ?15 3 1 665 Other assets 360 375 387 378 Deposits • 9 744 9 509 9 816 1 9q9 3,967 4,203 3,994 3,89? Other liabilities and capital 1585 1 472 426 1526 DeDOsits—Government 501 292 145 Bank Indonesia (millions of rupiahs): ECA.. ..:::::.:::: 17 17 17 368 Gold and foreign exchange (net).. 258 247 532 734 Other . 331 351 462 613 1 170 843 79? 1077 Other liabilities and capital 238 223 216 ?,39 Advances to Government. 19,287 18 919 17 217 10 970Reserve Bank of New Zealand (thou- Other assets 810 801 1 510 sands of pounds): Note circulation 13 898 13 815 12 876 9 135 Gold 6,162 6,162 6 162 6,16? Deposits—ECA 171 185 185 98? Foreign exchange reserve 12,798 11,467 20,126 ?7,?98 Other 4 199 799 735 2 330 42,222 36,960 35,088 31,068 Other liabilities and capital 3,257 3 087 2,954 544 Advances to State or State un- Bank Melli Iran (millions of rials): dertakings 58,229 57,147 56,139 50,880 Gold 4 533 4 533 5^3 4 949 41,958 53,142 38,124 53,173 Foreicn exchange 1 040 1 0-10 1 115 599 Other assets 2,078 1,580 1 384 1,398 Gold contribution to Intl. Fund. . J663 663 663 282 Note circulation . . .. 75,159 86,831 IS,211 71,959 Govt -secured debt 7 7 7 9?3 7 6?3 77,891 69,392 68,827 87,187 Govt. loans and discounts 12,208 12,956 12,515 12480 Other liabilities and capital 10,397 10,235 9,919 10,834 Other loans and discounts 7,938 7 455 7 4oq 6 343Bank of Norway (millions of kroner): Other assets 5 18 15 513 16 r4 61' Gold 206 206 210 ?09 Note circulation .. 1? 334 P 4P 1? 416 10 994 Foreign assets (net) 177 268 203 Deposits—Government 6 066 56? 5 0d7 -31 -33 -14 -63 Banks 1J616 1 580 1 613 1 Loans and discounts 76 84 84 110 Other -155 18 983 18 15*291 99 100 104 106 Special Account—Profits of reval- Occupation account (net) 5,545 5,545 5,545 5,546 uation 7,110 7,110 7 110 Other assets 178 182 134 106 Other liabilities and capital 4,198 3,932 3,827 3,378 Note circulation . 3,236 3,469 3,273 3,258 Central Bank of Ireland (thousands of Deposits—Government 1,262 1,068 1,451 1,349 pounds): Banks 522 638 327 631 Gold . . 9 646 9 646 9 646 2 646 FOA 1 1 1 ?6 Sterling funds 73,188 77,530 75,115 69,461 Other liabilities and capital 1,230 1,176 1,215 967 Note circulation 75,834 80,176 77,761 72,107 * On Aug. 1, 1957, the Land Central Banks and the Berlin Central .0275557 to .0117316 grams of fine gold per rial. Bank were merged with the Bank of German States (Bank deutscher 6 Holdings in each month were 448 million yen. Lander) and the latter became the German Federal Bank (Deutsche 7 Includes gold, silver, and foreign exchange forming required reserve Bundesbank). (25 per cent) against notes and other demand liabilities. 5 Includes (1) gold and foreign exchange in banking department and For other notes see opposite page. (2) in May 1957, the profit resulting from revaluation of gold from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 CENTRAL BANKS PRINCIPAL ASSETS AND LIABILITIES OF CENTRAL BANKS—Continued 1958 1957 1958 1957 Central bank, monetary unit, Central bank, monetary unit, and item and item Jan. Dec. Nov. Jan. Jan. Dec. Nov. Jan. State Bank of Pakistan (millions of Bank of Sweden (millions of kronor): rupees): Gold 474 483 500 564 Issue department: Foreign assets 1,213 1,227 1,184 1,080 Gold at home and abroad 116 115 115 115 Net claim on Intl. Fund1 129 129 129 129 Foreign exchange—Approved. . 752 666 663 1,067 Swedish Govt. securities and ad- Other 57 57 57 57 vances to National Debt Office 2. 4,761 5,050 4,477 4,140 Pakistan Govt. securities 2,138 2,124 2,046 1,683 Other domestic bills and advances. 11 89 172 20 India currency 430 430 430 430 Other assets 922 960 921 1,020 Rupee coin 45 45 49 r50 Note circulation 5,547 5,840 5,542 5,334 Notes in circulation 3,442 3,368 3,248 3,288 Demand deposits—Government. . 277 273 49 291 Banking department: Other 41 141 64 179 Notes of issue department 95 70 113 115 Other liabilities and capital 1,646 1,683 1,727 1,149 Bills discounted 1 1 1 Swiss National Bank (millions of Loans to Government 138 119 61 1 francs): Other assets 885 957 998 778 Gold 7,422 7,384 7,283 7,062 Deposits 971 1,012 1,032 725 Foreign exchange 589 781 561 553 Other liabilities and capital.... 148 136 141 169 Loans and discounts 165 278 180 229 Central Bank of Paraguay (millions of Other assets 87 116 94 106 guaranies): Note circulation 5,494 5,931 5,709 5,394 Gold 13 11 Sight liabilities 2,542 2,393 2,169 2,335 Foreign exchange (net) 627 503 Other liabilities and capital 227 234 240 220 Net claim on Intl. Fundl 83 53 Central Bank of the Republic of Turkey Loans and discounts ,630 1,605 (millions of pounds): Govt. loans and securities 730 563 Gold 403 403 402 402 Other assets 313 221 Foreign exchange and foreign Note and coin issue 1,346 1,143 clearings 485 480 461 229 Deposits—Government 423 351 Loans and discounts 5,001 ,052 5,153 4,084 Other 291 284 Securities 33 33 33 30 Other liabilities and capital 1,334 1,177 Other assets 255 272 264 241 Central Reserve Bank of Peru (millions Note circulation 3,125 ,199 3,345 2,459 of soles): Deposits—Gold 156 156 156 155 Gold and foreign exchange 225 195 744 Other 2,100 ,103 2,027 1,733 Net claim on Intl. Fund* 67 67 67 Other liabilities and capital 797 783 786 639 Loans and discounts to banks.... 1,253 1,215 753 Bank of the Republic of Uruguay (mil- Loans to Government 1,801 1,735 1,393 lions of pesos): (July)! Other assets 122 164 135 Gold 278 283 Note circulation 2,505 2,433 2,210 Silver 10 Deposits 723 670 667 Advances to State and Govt. Other liabilities and capital 240 273 214 bodies 264 285 Central Bank of the Philippines Other loans and discounts 615 558 (millions of pesos): Other assets 797 743 Gold 11 40 45 Note circulation 559 550 Foreign exchange 194 175 173 356 Deposits—Government 203 190 Loans 117 116 64 85 Other 371 362 Domestic securities 786 785 754 456 Other liabilities and capital 829 777 Other assets 171 168 168 155 Central Bank of Venezuela (millions Circulation—Notes 708 745 711 672 of bolivares): Coin 87 8 87 85 Gold 1,999 1,999 1,999 1,744 Demand deposits 306 241 228 246 Foreign exchange (net) 2,025 2,247 2,055 1,003 Other liabilities and capital 179 182 173 92 Other assets 188 202 180 188 Bank of Portugal (millions of escudos): Note circulation 1,510 1,591 1,484 1,223 Gold 5,961 5,993 5,929 Deposits 526 632 450 427 Foreign exchange (net) 13,505 13,500 13,970 Other liabilities and capital 2,176 2,225 2,300 1,284 Loans and discounts 1,811 1,785 1,248 National Bank of Federal People's Re- Advances to Government 1,365 1,365 1,370 public of Yugoslavia (billions of Other assets 2,333 2,384 1,864 dinars): Note circulation 12,206 11,785 11,277 Gold 5 Demand deposits—Government. 1,686 1,922 1,769 Gold contribution to Intl. Fund. . 2 ECA ir 19 90 Foreign assets 20 41 37 Other 7,51; 7,749 8,222 Loans (short-term) 788 775 728 Other liabilities and capital 3,54' 3,552 3,024 Govt. debt (net) 110 146 31 South African Reserve Bank (millions Other assets 68 54 39 of pounds): Notes and coin in circulation 126 128 90 Gold 73 T 77 80 Demand deposits 385 400 290 Foreign bills 28 25 25 54 Foreign liabilities 70 84 80 Other bills and loans 62 40 30 24 Long-term liabilities (net) 280 275 272 Other assets 60 56 46 Other liabilities and capital 13: 135 111 Note circulation 113 120 116 110 Bank for International Settlements Deposits 79 56 53 78 (million's of Swiss gold francs): Other liabilities and capital 31 22 18 16 Gold in bars 525 505 438 618 Bank G o o f l d Spain (millions of pesetas): 618 618 618 617 C R a e s d h is c o o n u h n a ta n b d l e a n b d i ll w s it a h n d b a a n c k ce s p .. t . - . 51 59 52 65 Silver 319 318 323 323 ances (at cost) 586 496 637 559 Govt. loans and securities 14,940 14,006 14,572 15,785 Time funds at interest 197 165 151 57 Other loans and discounts 59,42' 61,639 59,43^ 48,538 Sundry bills and investments 552 596 601 539 Other assets 69,27 69,771 65,586 57,322 Funds invested in Germany 297 297 297 297 Note circulation 63,83' 66,653 62,570 53,642 Other assets 1 1 1 2 Deposits—Government 3,624 2,38. 4,10^ 3,840 Demand deposits—Gold 509 553 547 611 Other 13,123 12,366 14,611 13,701 Other 1,152 1,018 1,084 994 Other liabilities and capital 63,988 64,948 59,248 51,403 Long-term deposits: Special 229 229 229 229 Other liabilities and capital 319 317 316 304 r Revised. * Latest month available. NOTE.—All figures, including gold and foreign exchange, are compiled 1 This figure represents the amount of the country's subscription to the from official reports of individual banks and are as of the last report date Fund less the bank's local currency liability to the Fund. of the month. 2 Includes small amount of nongovernment bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY RATES 373 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS 1 [Per cent per annum] Central banks with new rates since June 1956 Month effective g B iu e m l- France m G a e n r- y N la e e n r t d - h s - Spain S d w en e- S l w a e n r i - t d z- U K d n i o i n m t g e - d C a a d n a - d In ia - p J a a n - 2 P p h i i n l e ip s - A ti r n g a e n 2 - Chile 2 Cuba 2 va S d E a o l l- r 2 In effect June 30,1956. 3.0 3.0 5.5 3.00 3.75 3.75 1.5 5.5 3.00 3.25 8.03 1.5 3.5 4.5 3.5 3.0 1956—Aug 3 25 3 25 Sept 5.0 4.25 Oct 3.75 3.50 Nov 4.00 33.77 3 50 Dec 3.5 3.92 4.5 1957_jan 4 5 3 95 Feb 5 0 4 01 6 0 Mar 3.95 8.40 Apr 4.0 4 00 2 0 4.0 May 2.5 4.01 H.OO 9.13 June 4 06 July 4.5 4.25 5.00 5.00 4.05 Aug 5.6 5 00 4 28 Sept 4.0 7 0 4.05 4.5 Oct 4 05 Nov 3.83 Dec 3.87 6.0 5.5 1958—Jan 3.5 4.50 3 50 Feb 3 11 In effect Feb. 28,1958. 4.5 5.0 3.5 4.50 5.00 5.00 2.5 7.0 3.11 4.00 9.13 4.5 6.0 6.0 5.5 4.0 Other selected central banks—rates in effect on Feb. 28, 1958 A c r o e u a n t a r n y d Rate e M ffe o c n ti t v h e A c r o e u a n t a r n y d Rate e M ffe o c n ti t v h e A c r o e u a n t a r n y d Rate e M ffe o c n ti t v h e A c r o e u a n t a r n y d Rate e M ffe o c n ti t v h e Europe: Europe—Cont. : Asia—Cont. : Latin America— Austria 5.0 Nov. 1955 Turkey 6.0 June 1956 Thailand 7.0 Feb. 1945 Cont. : Denmark 5.5 May 1955 Asia Latin America: Venezuela... 2.0 May 1947 Greece 10.0 May 1956 Burma 3.0 Feb. 1948 Costa Rica2. 3.0 Apr. 1939 All other: Italy 4.0 Apr. 1950 Ceylon 2.5 June 1954 Mexico 4.5 June 1942 New Zealand. 7.0 Oct. 1955 Norway 3.5 Feb. 1955 Indonesia2... 3.0 Apr. 1946 Peru2 6.0 Nov. 1947 South Africa. 4.5 Sept. 1955 Portugal 2.5 Jan. 1944 Pakistan 3.0 July 1948 1 Rates shown represent mainly those at which the Central bank either rates in excess of 6 per cent are applied to rediscounts in excess of 50 per discounts or makes advances against eligible commercial paper and /or cent of the rediscounting bank's capital and reserves; Cuba—-4.5 per cent government securities for commercial banks or brokers. For countries for sugar loans and 4 per cent for loans secured by national public with more than one rate applicable to such discounts or advances, the securities; El Salvador—3 per cent for agricultural and industrial paper; rate shown is the one at which the largest proportion of central bank Indonesia—various rates depending on type of paper, collateral, commodcredit operations is understood to be transacted. In certain cases other ity involved, etc.; Costa Rica—5 per cent for paper related to commerrates for these countries are given in the following note. cial transactions (rate shown is for agricultural and industrial paper); 2 Discounts or advances at other rates include: Japan—various rates and Peru—4 per cent for industrial paper and mining paper, and 3 per depending on type of paper or transaction and extent of borrowing from cent for most agricultural paper. central bank, including 8.40 per cent for discount of paper related to do- 3 Since Nov. 1, the discount rate is set each week at ^4 per cent above the mestic commercial transactions (rate shown is for advances on commercial latest average tender rate for Treasury bills. paper and miscellaneous collateral); Argentina—3 and 5 per cent for certain 4 Since May 16, this rate applies to advances against commercial paper rural and industrial paper, depending on type of transaction; Chile— as well as against government securities and other eligible paper. OPEN MARKET RATES [Per cent per annum] Canada United Kingdom France Netherlands Sweden Sw la i n tz d er- Month 3 T m re b o a il s n l u s th ry s1 D m a o d y n a - y e t y o 2 - 3 B a a a m c n n c o c k e n e p e s t r t h - s s ' 3 T r m e b a i o l s l n u s t r h y s D m a d o y a n - y e to y - a B d ll e a o p n o w o k n a s e i n r t s c s ' e D m a o d y n a - y e t y o 3 - 3 T r m e b a i o l s l n u s t r h y s D m a d o y a n - y e to y - 3 L u m o p o a n t n o t s hs d P is r r i c a v o t a e u t n e t 1955 Dec 2.59 2.42 4.22 4.08 3.10 2.50 2.99 1.06 .62 414-61/2 1.50 1956 Dec 3.61 3.18 5.07 4.94 4.15 3.50 3.55 3.48 3.23 41/2-634 1.50 1957 Feb 3.76 3.48 4.44 4.30 3.66 3.10 3.52 3.47 2.85 4y2-6Y4 1.75 A M p a r r 3 3 . . 7 7 1 2 3 3. . 6 6 9 5 4 4. . 1 2 8 5 4 4 . . 0 0 7 1 3 3 . . 5 5 5 9 3 3 . . 0 0 0 0 4 4. . 6 1 1 0 3 3 . . 6 6 1 3 3 3 . . 5 5 0 0 4 41 y2 /2 -6 -6 y % 4 1 1 . . 7 7 5 5 May 3 77 3 71 4.04 3.84 3.48 3.00 5.19 3.59 2 88 41/2-634 1.75 June 3.80 3.80 4.08 3.87 3.45 3.00 5.78 3.60 2.70 41/2-634 2.50 July 3.81 3.72 4.06 3.85 3.45 3.00 7.82 3.81 3.08 534-8 2.50 Aug 4 02 3 88 4.17 3.97 3.60 3.00 7.94 4.45 3.51 534-8 2.50 Sept 3.94 2.96 5.40 5.42 4.33 3.80 5.77 4.86 3.64 534-8 2.50 Oct 3 84 3 57 6 81 6.60 5.53 5.00 4.94 4.87 3.75 534-8 2.50 Nov 3.66 3.52 6.78 6.54 5.63 5.00 4.87 4.66 3.35 534-8 2.50 Dec 3.65 3.60 6.67 6.43 5.67 5.00 5.72 4.64 3.33 534-8 2.50 1958—Jan 3.54 3.34 6.51 6.27 5.56 5.00 5.17 4.43 3.50 534-8 2.50 1 Based on average yield of weekly tenders during the month. 3 Beginning January 1957, rate shown is on private securities. Previous 2 Based on weekly averages of daily closing rates. figures are averages of rates on government and private securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 FOREIGN EXCHANGE RATES FOREIGN EXCHANGE RATES [Average of certified noon buying rates in New York for cable transfers. In cents per unit of foreign currency] Argentina Year or month P (p re e f s e o r ) - (p t A o ra u u l s n i - a d) (s A ch u i s l t l r in ia g) B ( e fr l a g n iu c m ) C (d a o n l a la d r a ) ( C ru ey p l e o e n ) (k m D r e o a n r n k - e) Basic ential Free 1952 20.000 13.333 7.163 222.63 1.9878 102.149 20.903 14.492 1953 20.000 13.333 7.198 224.12 3.8580 2.0009 101.650 21.046 1954 20.000 13.333 7.198 223.80 3.8580 1.9975 102.724 21.017 1955 20.000 13.333 7.183 222.41 3.8580 1.9905 101.401 20.894 1956 15.556 22.835 222.76 3.8580 2.0030 101.600 20.946 1957 5.556 2.506 222.57 3.8539 1.9906 104.291 20.913 1957—Feb.. 5.556 2.681 222.96 3.8536 1.9900 104.334 20.960 Mar. 5.556 2.586 222.55 3.8536 1.9900 104.577 20.921 Apr.. 5.556 2.478 222.22 3.8536 1.9887 104.184 20.890 May. .556 2.564 222.39 3.8536 1.9862 104.638 20.895 June. .556 2 All 222.33 3.8536 1.9875 104.891 20.898 July. .556 2.365 222.14 3.8536 1.9908 105.150 20.890 Aug. .556 2.303 221.73 3.8536 1.9865 105.470 20.862 Sept. .556 2.216 221.92 3.8536 1.9874 104.241 20.867 Oct.. .556 2.487 223.09 3.8536 1.9929 103.636 20.928 Nov. 5.556 2.595 223.32 3.8536 1.9983 103.921 20.935 Dec. 5.556 2.707 223.57 3.8536 1.9991 102.304 20.969 1958—Jan.. 5.556 2.696 224.16 3.8536 1.9986 101.535 21.045 Feb.. 5.556 2.656 224.36 3.8536 2.0024 101.934 21.078 Year or month ( F m i a n r l k an k d a) F (f r r a a n n c c e ) ( G d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e) ( I p r o el u a n n d d ) J ( a y p e a n n ) ( M do a s l i l l a a a y r - ) M (p e e x s i o c ) o 1952 .4354 .2856 23.838 20.922 279.68 32.601 11.588 1953 .4354 .2856 21.049 281.27 32.595 11.607 1954 .4354 .2856 23.838 21.020 280.87 32.641 9.052 1955 .4354 .2856 23.765 20.894 279.13 32.624 8.006 1956 .4354 .2855 23.786 20.934 279.57 .2779 32.582 8.006 1957 3.3995 4.2856 4.2376 23.798 20.910 279.32 .2779 32.527 8.006 1957—Feb., .4354 .2855 23.797 20.947 279.81 .2779 32.561 8.006 Mar. .4354 .2855 23.793 20.913 279.30 .2779 32.532 8.006 Apr. .4354 .2855 23.790 20.890 278.89 .2779 32.512 8.006 May .4354 .2856 23.796 20.896 279.10 .2779 32.526 8.006 June .4354 .2855 23.798 20.896 279.02 .2779 32.523 8.006 July. .4354 .2856 23.800 20.884 278.78 .2779 32.495 8.006 Aug. .4354 4.2857 4.2376 23.800 20.844 278.27 .2779 32.431 8.006 Sept. 3.3674 .2858 .2375 23.800 20.858 278.51 .2779 32.448 8.006 Oct.. .3118 .2858 .2375 23.800 20.940 279.98 .2779 32.556 8.006 Nov. .3118 .2858 .2375 23.800 20.951 280.26 .2779 32.580 8.006 Dec. .3118 .2858 .2376 23,799 20.975 280.58 .2779 32.644 8.006 1958—Jan.. .3118 .2858 .2376 23.795 21.050 281.32 .2779 32.769 8.006 Feb.. .3118 .2858 .2375 23.795 21.099 281.57 .2779 32.818 8.006 Year or month ( e g N r u l e i a l t n d h d e - s r) Z (p e N o a e u l w a n n d - d ) N (k o r r o w n a e y ) R P ( e p p h p e i i u n l s i b o e p l ) - ic (e P s o g c r a u t l d u o - ) ( A p S o o fr u u i n c th a d) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e S fr r w a la n i n t c - d ) ( U K p d n o i o i n u m t n g e - d d ) 1952 26.315 276.49 14.015 49.675 3.4853 278.20 19.326 23.148 279.26 1953 26.340 278.48 14.015 49.676 3.4887 280.21 19.323 23.316 281.27 1954 26.381 278.09 14.008 49.677 3.4900 279.82 19.333 23.322 280.87 1955 26.230 276.36 14.008 49.677 3.4900 278.09 19.333 23.331 279.13 1956 26.113 276.80 14.008 49.676 3.4900 278.52 19.333 23.334 279.57 1957 26.170 276.56 14.008 49.693 3.4900 278.28 19.331 23.330 279.32 1957—Feb. 26.111 277.04 14.008 49.687 3.4900 278.76 19.333 23.308 279.81 Mar. 26.119 276.54 14.008 49.695 3.4900 278.26 19.333 23.318 279.30 Apr. 26.137 276.12 14.008 49.695 3.4900 277.84 19.333 23.329 278.89 May 26.134 276.33 14.008 49.695 3.4900 278.05 19.333 23.335 279.10 June 26.106 276.26 14.008 49.695 3.4900 277.98 19.333 23.335 279.02 July. 26.121 276.02 14.008 49.695 3.4900 211.1A 19.333 23.332 278.78 Aug. 26.103 275.52 14.008 49.695 3.4900 277.23 19.329 23.335 278.27 Sept. 26.102 275.75 14.008 49.695 3.4900 277.47 19.328 23.335 278.51 Oct.. 26.287 277.21 14.008 49.695 3.4900 278.94 19.328 23.335 279.98 Nov. 26.363 277.49 14.008 49.695 3.4900 279.21 19.328 23.335 280.26 Dec. 26.367 277.80 14.008 49.695 3.4900 279.53 19.328 23.335 280.58 1958—Jan.. 26.373 278.54 14.008 49.695 3.4900 280.27 52.3810 19.328 23.334 281.32 Feb. 26.367 278.78 14.008 49.695 3.4900 280.52 2.3810 19.328 23.335 281.57 1 Official rate. The basic and preferential rates were discontinued and 4 On Aug. 12, 1957, the French authorities established an effective rate the new official rate of 18 pesos per U. S. dollar became effective Oct. of 420 francs per U. S. dollar applicable to most foreign exchange transac- 28, 1955. tions. Since Oct. 28, 1957, this rate has applied to all foreign exchange 2 New free market rate became effective Oct. 28, 1955. transactions. The official rate remains at 350 francs per U. S. dollar. 3 Effective Sept. 16, 1957, the Finnish markka was devalued from 230 5 Based on quotations beginning Jan. 2, 1958. to 320 markkaa per U. S. dollar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS of the Federal Reserve System WM. MCC. MARTIN, JR., Chairman C. CANBY BALDERSTON, Vice Chairman M. S. SZYMCZAK A. L. MILLS, JR. J. L. ROBERTSON JAMES K. VARDAMAN, JR. CHAS. N. SHEPARDSON ELLIOTT THURSTON, Assistant to the Board WINFIELD W. RIEFLER, Assistant to the Chairman WOODLIEF THOMAS, Economic Adviser to the Board JEROME W. SHAY, Legislative Counsel CHARLES MOLONY, Special Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF BANK OPERATIONS S. R. CARPENTER, Secretary ROBERT F. LEONARD, Director MERRITT SHERMAN, Assistant Secretary GERALD M. CONKLING, Assistant Director KENNETH A. KENYON, Assistant Secretary JOHN R. FARRELL, Assistant Director CLARKE L. FAUVER, Assistant Secretary M. B. DANIELS, Assistant Director LEGAL DIVISION DIVISION OF EXAMINATIONS HOWARD H. HACKLEY, General Counsel ROBERT C. MASTERS, Director FREDERIC SOLOMON, Assistant General Counsel C. C. HOSTRUP, Assistant Director DAVID B. HEXTER, Assistant General Counsel FRED A. NELSON, Assistant Director G. HOWLAND CHASE, Assistant General Counsel ARTHUR H. LANG, Chief Federal Reserve THOMAS J. O'CONNELL, Assistant General Examiner Counsel GLENN M. GOODMAN, Assistant Director HENRY BENNER, Assistant Director DIVISION OF RESEARCH AND STATISTICS DIVISION OF PERSONNEL ADMINISTRATION RALPH A. YOUNG, Director FRANK R. GARFIELD, Adviser EDWIN J. JOHNSON, Director GUY E. NOYES, Adviser H. FRANKLIN SPRECHER, JR., Assistant Director ROLAND I. ROBINSON, Adviser SUSAN S. BURR, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES ALBERT R. KOCH, Associate Adviser JOSEPH E. KELLEHER, Director KENNETH B. WILLIAMS, Associate Adviser LEWIS N. DEMBITZ, Research Associate OFFICE OF DEFENSE LOANS DIVISION OF INTERNATIONAL FINANCE GARDNER L. BOOTHE, II, Administrator ARTHUR W. MARGET, Director OFFICE OF THE CONTROLLER J. HERBERT FURTH, Associate Adviser A. B. HERSEY, Associate Adviser J. J. CONNELL, Controller ROBERT L. SAMMONS, Associate Adviser SAMPSON H. BASS, Assistant Controller 375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN • MARCH 1958 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON HUGH LEACH CHAS. N. SHEPARDSON W. D. FULTON H. N. MANGELS M. S. SZYMCZAK WATROUS H. IRONS A. L. MILLS, JR. JAMES K. VARDAMAN, JR J. L. ROBERTSON WINFIELD W. RIEFLER, Secretary L. MERLE HOSTETLER, Associate Economist ELLIOTT THURSTON, Assistant Secretary ARTHUR W. MARGET, Associate Economist MERRITT SHERMAN, Assistant Secretary H. V. ROELSE, Associate Economist HOWARD H. HACKLEY, General Counsel CHARLS E. WALKER, Associate Economist FREDERIC SOLOMON, Assistant General Counsel O. P. WHEELER, Associate Economist WOODLIEF THOMAS, Economist RALPH A. YOUNG, Associate Economist J. DEWEY DAANE, Associate Economist ROBERT G. ROUSE, Manager of System Open Market Account Federal Advisory Council LLOYD D. BRACE, BOSTON HOMER J. LIVINGSTON, CHICAGO, ADRIAN M. MASSIE, NEW YORK Vice President CASIMIR A. SlENKIEWICZ, PHILADELPHIA WlLLIAM A. MCDONNELL, ST. LOUIS FRANK R. DENTON, CLEVELAND, GORDON MURRAY, MINNEAPOLIS President R. CROSBY KEMPER, KANSAS CITY JOHN S. ALFRIEND, RICHMOND WALTER B. JACOBS, DALLAS JOHN A. SIBLEY, ATLANTA FRANK L. KING, SAN FRANCISCO HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Federal Reserve Banks and Branches District 1—FEDERAL RESERVE BANK OF BOSTON BOARD OF DIRECTORS Robert C. Sprague, Chairman and Federal Reserve Agent Harvey P. Hood, Deputy Chairman Stanley M. Cooper Milton P. Higgins Harry E. Umphrey Oliver B. Ellsworth William D. Ireland Nils Y. Wessell Arthur F. Maxwell J. A. Erickson, President E. O. Latham, First Vice President Vice Presidents D. H. Angney Benjamin F. Groot Ansgar R. Berge Dana D. Sawyer George H. Ellis O. A. Schlaikjer District 2—FEDERAL RESERVE BANK OF NEW YORK BOARD OF DIRECTORS John E. Bierwirth, Chairman and Federal Reserve Agent Forrest F. Hill, Deputy Chairman Charles W. Bitzer Cyrus M. Higley Howard C. Sheperd Clarence Francis Augustus C. Long Lansing P. Shield Franz Schneider Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 377 District 2—FEDERAL RESERVE BANK OF NEW YORK-Continued Alfred Hayes, President William F. Treiber, First Vice President Vice Presidents H. A. Bilby Robert V. Roosa I. B. Smith, in charge John Exter Robert G. Rouse of Buffalo Branch M. A. Harris Walter H. Rozell, Jr. T. G. Tiebout H. H. Kimball V. Willis H. V. Roelse R. B. Wiltse BUFFALO BRANCH—BOARD OF DIRECTORS Vernon Alexander Daniel M. Dalrymple John W. Remington Leland B. Bryan Raymond E. Olson E. Perry Spink Ralph F. Peo, Chairman District 3—FEDERAL RESERVE BANK OF PHILADELPHIA BOARD OF DIRECTORS Henderson Supplee, Jr., Chairman and Federal Reserve Agent Lester V. Chandler, Deputy Chairman William B. Brosius Walter E. Hoadley, Jr. R. Russell Pippin Bayard L. England Lindley S. Hurff Geoffrey S. Smith Charles E. Oakes Karl R. Bopp, President Robert N. Hilkert, First Vice President Vice Presidents David P. Eastburn E. C. Hill P. M. Poorman Murdoch K. Goodwin Wm. G. McCreedy J. V. Vergari Richard G. Wilgus District 4—FEDERAL RESERVE BANK OF CLEVELAND BOARD OF DIRECTORS Arthur B. Van Buskirk, Chairman and Federal Reserve Agent Joseph H. Thompson, Deputy Chairman Aubrey J. Brown King E. Fauver George P. MacNichol, Jr. John A. Byerly Joseph B. Hall Paul A. Warner Charles Z. Hardwick W. D. Fulton, President Donald S. Thompson, First Vice President Vice Presidents Dwight L. Allen L. Merle Hostetler Martin Morrison Roger R. Clouse R. G. Johnson, in charge of H. E. J. Smith Clyde Harrell Cincinnati Branch Paul C. Stetzelberger J. W. Kossin, in charge of Pittsburgh Branch CINCINNATI BRANCH—BOARD OF DIRECTORS Roger Drackett W. Bay Irvine William A. Mitchell Anthony Haswell, Chairman Ivan Jett Thomas M. Wolfe Franklin A. McCracken PITTSBURGH BRANCH—BOARD OF DIRECTORS Lawrence O. Hotchkiss Ben Moreell John C. Warner, Frank C. Irvine Sumner E. Nichols Chairman Douglas M. Moorhead Irving W. Wilson Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN • MARCH 1958 District 5—FEDERAL RESERVE BANK OF RICHMOND BOARD OF DIRECTORS John B. Woodward, Jr., Chairman and Federal Reserve Agent Alonzo G. Decker, Jr., Deputy Chairman D. W. Colvard Joseph E. Healy Denver L. Morgan Robert Gage L. Vinton Hershey W. A. L. Sibley Robert O. Huffman Hugh Leach, President Edw. A. Wayne, First Vice President Vice Presidents N. L. Armistead D. F. Hagner, in charge of J. M. Nowlan R. L. Cherry, in charge of Baltimore Branch James M. Slay Charlotte Branch Aubrey N. Heflin Thomas I. Storrs J. Dewey Daane Upton S. Martin C. B. Strathy BALTIMORE BRANCH—BOARD OF DIRECTORS Gordon M. Cairns James W. McElroy Stanley B. Trott Wm. Purnell Hall, Chairman J. N. Shumate Clarence R. Zarfoss John W. Stout CHARLOTTE BRANCH—BOARD OF DIRECTORS George H. Aull Charles D. Parker G. G. Watts William H. Grier, Chairman Ernest Patton T. Henry Wilson I. W. Stewart District 6—FEDERAL RESERVE BANK OF ATLANTA BOARD OF DIRECTORS Walter M. Mitchell, Chairman and Federal Reserve Agent Harllee Branch, Jr., Deputy Chairman Roland L. Adams William C. Carter Joseph T. Lykes W. C. Bowman Henry G. Chalkley, Jr. Pollard Turman Donald Comer Malcolm Bryan, President Lewis M. Clark, First Vice President Vice Presidents J. E. Denmark J. E. McCorvey L. B. Raisty H. C. Frazer, in charge of R. E. Moody, Jr., in charge Earle L. Rauber Birmingham Branch of Nashville Branch S. P. Schuessler T. A. Lanford, in charge of Harold T. Patterson M. L. Shaw, in charge Jacksonville Branch of New Orleans John L. Liles, Jr. Branch BIRMINGHAM BRANCH—BOARD OF DIRECTORS Robert M. Cleckler E. W. McLeod John E. Urquhart, Chairm John R. Downing John C. Persons Adolph Weil, Sr. Selden Sheffield JACKSONVILLE BRANCH—BOARD OF DIRECTORS Linton E. Allen James G. Garner Harry M. Smith, Chairmai W. E. Ellis C. B. McLeod McGregor Smith J. Wayne Reitz Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 379 District 6—FEDERAL RESERVE BANK OF ATLANTA-Coattnued NASHVILLE BRANCH—BOARD OF DIRECTORS Jo H. Anderson P. D. Houston, Jr. Frank B. Ward, Chairman Stewart Campbell V. S. Johnson, Jr. C. L. Wilson W. N. Krauth NEW ORLEANS BRANCH—BOARD OF DIRECTORS William J. Fischer J. Spencer Jones H. A. Pharr Frank A. Godchaux, III G. H. King, Jr., Chairman E. E. Wild D. U. Maddox District 7—FEDERAL RESERVE BANK OF CHICAGO BOARD OF DIRECTORS Bert R. Prall, Chairman and Federal Reserve Agent J. Stuart Russell, Deputy Chairman Robert P. Briggs William J. Grede G. F. Langenohl Walter J. Cummings William A. Hanley Nugent R. Oberwortmann Vivian W. Johnson Carl E. Allen, President E. C. Harris, First Vice President Vice Presidents Neil B. Dawes C. T. Laibly A. L. Olson W. R. Diercks George W. Mitchell R. A. Swaney, in charge A. M. Gustavson H. J. Newman of Detroit Branch Paul C. Hodge W. W. Turner DETROIT BRANCH—BOARD OF DIRECTORS John A. Hannah, Chairman Ira A. Moore Ernest W. Potter William A. Mayberry C. V. Patterson J. Thomas Smith Raymond T. Perring District 8—FEDERAL RESERVE BANK OF ST. LOUIS BOARD OF DIRECTORS Pierre B. McBride, Chairman and Federal Reserve Agent J. H. Longwell, Deputy Chairman S. J. Beauchamp, Jr. Kenton R. Cravens Leo J. Wieck H. Lee Cooper J. E. Etherton Jesse D. Wooten Harold O. McCutchan Delos C. Johns, President Guy S. Freutel, First Vice President Vice Presidents Wm. J. Abbott, Jr. Darryl R. Francis, in charge Geo. E. Kroner Fred Burton, in charge of of Memphis Branch Dale M. Lewis Little Rock Branch Donald L. Henry, in charge H. H. Weigel of Louisville Branch J. C. Wotawa LITTLE ROCK BRANCH—BOARD OF DIRECTORS R. H. Alexander T. Winfred Bell, Chairman J. V. Satterfield, Jr. Donald Barger J. W. Bellamy, Jr. Waldo E. Tiller E. C. Benton Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN • MARCH 1958 District 8—FEDERAL RESERVE BANK OF ST. LOUIS-Continued LOUISVILLE BRANCH—BOARD OF DIRECTORS David F. Cocks, Chairman Magnus J. Kreisle Merle E. Robertson Philip Davidson W. Scott Mclntosh John G. Russell J. D. Monin, Jr. MEMPHIS BRANCH—BOARD OF DIRECTORS John E. Brown S. L. Kopald, Jr. John D. Williams J. H. Harris Simpson Russell John K. Wilson Frank Lee Wesson, Chairman District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS BOARD OF DIRECTORS Leslie N. Perrin, Chairman and Federal Reserve Agent O. B. Jesness, Deputy Chairman John E. Corette Thomas G. Harrison Harold C. Refling F. Albee Flodin Ray C. Lange Harold N. Thomson John A. Moorhead Frederick L. Deming, President A. W. Mills, First Vice President Vice Presidents Kyle K. Fossum, in charge M. B. Holmgren H. G. McConnell of Helena Branch A. W. Johnson M. H. Strothman, Jr. C. W. Groth Sigurd Ueland HELENA BRANCH—BOARD OF DIRECTORS J. Willard Johnson Geo. N. Lund John M. Otten O. M. Jorgenson Carl McFarland, Chairman District 10—FEDERAL RESERVE BANK OF KANSAS CITY BOARD OF DIRECTORS Raymond W. Hall, Chairman and Federal Reserve Agent Joe W. Seacrest, Deputy Chairman K. S. Adams E. M. Dodds Max A. Miller W. L. Bunten W. S. Kennedy Oliver S. Willham Harold Kountze H. G. Leedy, President Henry O. Koppang, First Vice President Vice Presidents John T. Boysen R. L. Mathes, in charge Cecil Puckett, in charge George H. Clay of Oklahoma City Branch of Denver Branch P. A. Debus, in charge E. U. Sherman of Omaha Branch Clarence W. Tow Joseph S. Handford D. W. Woolley DENVER BRANCH—BOARD OF DIRECTORS Stewart Cosgriff Ralph S. Newcomer Aksel Nielsen, Chairman Arthur Johnson Ray Reynolds OKLAHOMA CITY BRANCH—BOARD OF DIRECTORS Davis D. Bovaird, Chairman R. Otis McClintock C. L. Priddy Phil H. Lowery C. P. Stuart Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 381 District 10—FEDERAL RESERVE BANK OF KANSAS CITY-Continued OMAHA BRANCH—BOARD OF DIRECTORS C. Wheaton Battey Manville Kendrick James L. Paxton, Jr., George J. Forbes William N. Mitten Chairman District 11—FEDERAL RESERVE BANK OF DALLAS BOARD OF DIRECTORS Robert J. Smith, Chairman and Federal Reserve Agent Hal Bogle, Deputy Chairman John R. Alford John M. Griffith J. B. Thomas Lamar Fleming, Jr. D. A. Hulcy Sam D. Young J. Edd McLaughlin Watrous H. Irons, President W. D. Gentry, First Vice President Vice Presidents E. B. Austin W. E. Eagle, in charge of T. W. Plant Howard Carrithers, in charge San Antonio Branch L. G. Pondrom of El Paso Branch T. A. Hardin Morgan H. Rice J. L. Cook, in charge of W. H. Holloway Harry A. Shuford Houston Branch C. E. Walker EL PASO BRANCH—BOARD OF DIRECTORS F. W. Barton Floyd Childress D. F. Stahmann John P. Butler William R. Mathews E. J. Workman, Thomas C. Patterson Chairman HOUSTON BRANCH—BOARD OF DIRECTORS I. F. Betts W. B. Callan S. Marcus Greer L. R. Bryan, Jr. A. E. Cudlipp Tyrus R. Timm John C Flanagan, Chairman SAN ANTONIO BRANCH—BOARD OF DIRECTORS Clarence E. Ayres E. C. Breedlove Alex R. Thomas, J. W. Beretta Burton Dunn Chairman Donald D. James Harold Vagtborg District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO BOARD OF DIRECTORS A. H. Brawner, Chairman and Federal Reserve Agent Y. Frank Freeman, Deputy Chairman Carroll F. Byrd Walter S. Johnson Reese H. Taylor M. Vilas Hubbard N. Loyall McLaren Philip I. Welk John A. Schoonover H. N. Mangels, President Eliot J. Swan, First Vice President Vice Presidents E. R. Barglebaugh, in charge of R. H. Morrill H. F. Slade Salt Lake City Branch John A. O'Kane W. F. Volberg, J. M. Leisner, in charge of J. A. Randall, in charge of in charge of Seattle Branch Portland Branch Los Angeles Branch E. R. Millard O. P. Wheeler Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN • MARCH 1958 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO-Coathmed LOS ANGELES BRANCH—BOARD OF DIRECTORS Anderson Borthwick Leonard K. Firestone, Joe D. Paxton Robert J. Cannon Chairman James E. Shelton PORTLAND BRANCH—BOARD OF DIRECTORS Warren W. Braley John B. Rogers William H. Steiwer, Sr., Chairman J. H. McNally C. B. Stephenson SALT LAKE CITY BRANCH—BOARD OF DIRECTORS George S. Eccles Oscar Hiller Joseph Rosenblatt, Chairman Russell S. Hanson Geo. W. Watkins SEATTLE BRANCH—BOARD OF DIRECTORS Henry N. Anderson Lyman J. Bunting, Joshua Green, Jr. James Brennan Chairman S. B. Lafromboise Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications Unless otherwise noted, the material listed may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington 25, D. C. Where a charge is indicated, remittance should accompany order and be made payable to the order of the Board of Governors of the Federal Reserve System. A more complete list, including periodic releases and additional reprints, appeared on pages 1447-50 of the December 1957 Bulletin. THE FEDERAL RESERVE SYSTEM—PURPOSES AND THE FEDERAL RESERVE ACT, as amended through FUNCTIONS. April 1954. 208 pages. December 31, 1956, with an Appendix containing provisions of certain other statutes af- ANNUAL REPORT OF THE BOARD OF GOVERNORS fecting the Federal Reserve System. 385 pages. OF THE FEDERAL RESERVE SYSTEM. FEDERAL RESERVE BULLETIN. Monthly. Subscription price in the United States and its pos- FLOW OF FUNDS IN THE UNITED STATES, 1939-53. A new accounting record designed to picture sessions, Bolivia, Canada, Chile, Colombia, the flow of funds through the major sectors of Costa Rica, Cuba, Dominican Republic, Ecuathe national economy. December 1955. 390 dor, Guatemala, Haiti, Republic of Honduras, pages. $2.75. Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $6.00 THE DEVELOPMENT OF BANK DEBITS AND CLEARper annum or 60 cents per copy; elsewhere INGS AND THEIR USE IN ECONOMIC ANALYSIS. $7.00 per annum or 70 cents per copy. Group January 1952. 175 pages. 25 cents per copy; subscriptions in the United States for 10 or in quantities of 10 or more copies for single more copies to one address, 50 cents per copy shipment, 15 cents each. per month, or $5.00 for 12 months. A STATISTICAL STUDY OF REGULATION V LOANS. FEDERAL RESERVE CHART BOOK ON FINANCIAL September 1950. 74 pages. 25 cents per copy; AND BUSINESS STATISTICS. Monthly. Annual in quantities of 10 or more copies for single subscription includes one issue of Historical shipment, 15 cents each. Supplement. Subscription price in the United States and the countries listed above is $6.00 BANKING AND MONETARY STATISTICS. Statistics of per annum, 60 cents per copy, or 50 cents each banking, monetary, and other financial developin quantities of 10 or more of a particular ments. November 1943. 979 pages. $1.50. issue for single shipment; elsewhere $7.00 per annum or 70 cents each. RULES OF ORGANIZATION AND RULES OF PROCE- DURE—Board of Governors of the Federal Re- HISTORICAL SUPPLEMENT TO FEDERAL RESERVE serve System. 1946. 31 pages. CHART BOOK. Issued annually in September. Annual subscription to monthly chart book in- REGULATIONS OF THE BOARD OF GOVERNORS OF cludes one issue of Supplement. In the United THE FEDERAL RESERVE SYSTEM. States and countries listed above under Federal Reserve Bulletin, single copies 60 cents each or ADMINISTRATIVE INTERPRETATIONS OF REGULAin quantities of 10 or more for single shipment TION F—SECTION 17—COMMON TRUST FUNDS. 50 cents each; elsewhere 70 cents each. 9 pages. CONSUMER INSTALMENT CREDIT—Six books (Parts I-IV) giving the results of an intensive study of consumer instalment credit, undertaken by the Board on request of the Council of Economic Advisers by direction of the President, are being distributed through the Superintendent of Documents. Part I—Growth and Import, Volume 1, $1.25; Volume 2, $1.00 Part II—Conference on Regulation, Volume 1, $1.75; Volume 2, $.60 Part III—Views on Regulation, $1.00 Part IV—Financing New Car Purchases, $.60 Requests and remittances for these six books should be directed to the Superintendent of Documents, Government Printing Office, Washington 25, D. C. 383 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN • MARCH 1958 REPRINTS AGRICULTURAL LOAN SURVEY. November 1956 and January, February, and March 1957 BUL- {From Federal Reserve Bulletin unless preceded LETINS. 52 pages. by an asterisk) UNITED STATES BANKING ORGANIZATION ABROAD. THE MONETARY SYSTEM OF THE UNITED STATES. December 1956. 16 pages. February 1953. 16 pages. 1957 SURVEY OF CONSUMER FINANCES. March, INFLUENCE OF CREDIT AND MONETARY MEASURES June, and August 1957. 54 pages. (Similar ON ECONOMIC STABILITY. March 1953. 16 Surveys are available for earlier years from pages. 1952, 1953, 1954, 1955, and 1956 BULLETINS.) FEDERAL FINANCIAL MEASURES FOR ECONOMIC SUMMARY FLOW-OF-FUNDS ACCOUNTS 1950-55. STABILITY. May 1953. 7 pages. April 1957. 20 pages. * DETAILED DESCRIPTION OF SOURCES AND METH- SURVEY OF FINANCE COMPANIES, MID-1955. ODS USED IN REVISION OF SHORT- AND INTER- April 1957. 17 pages. MEDIATE-TERM CONSUMER CREDIT STATISTICS. OWNERSHIP OF DEMAND DEPOSITS. May 1957. April 1953. 25 pages. 6 pages. DEPARTMENT STORE SALES AND STOCKS, BY SURVEY OF COMMON TRUST FUNDS, 1956. June MAJOR DEPARTMENTS (Revised Indexes). No- 1957. 6 pages. (Also, similar reprint from vember 1953. 65 pages. August 1956 BULLETIN.) FEDERAL RESERVE MONTHLY INDEX OF INDUS- INTEREST RATES IN LEADING COUNTRIES. August TRIAL PRODUCTION, 1953 Revision. December 1957. 7 pages. 1953. 96 pages. NEW INDEXES OF OUTPUT OF CONSUMER DU- WINNING THE BATTLE AGAINST INFLATION. Au- RABLE GOODS. May 1954. 15 pages. gust 1957. 12 pages. SEASONAL ADJUSTMENT FACTORS FOR DEMAND WORLD PAYMENTS STRESSES IN 1956-57. October 1957. 8 pages. DEPOSITS ADJUSTED AND CURRENCY OUTSIDE BANKS. March 1955. 4 pages. REVISION OF MONTHLY DEPARTMENT STORE IN- A FLOW-OF-FUNDS SYSTEM OF NATIONAL AC- DEXES. December 1957. 30 pages. COUNTS, ANNUAL ESTIMATES, 1939-54. Octo- BANKING AND MONETARY STATISTICS, 1957. (Seber 1955. 40 pages. lected series of banking and monetary statistics SURVEY OF BANK LOANS FOR COMMERCIAL AND for 1957 only) February 1958. 7 pages. (Simi- INDUSTRIAL PURPOSES. Business Loans of lar reprints of 1954, 1955, and 1956 data, Member Banks. April 1956. 14 pages. Credit February and May 1955, February and May Lines and Minimum Balance Requirements. 1956, and February and May 1957 BULLETINS.) June 1956. 7 pages. (Reprints on a similar Survey are available from March, May, June, BANK CREDIT AND MONEY IN 1957. February July, and August 1947 BULLETINS.) 1958. 9 pages. (Also, similar reprint from July 1957 BULLETIN.) FINANCING OF LARGE CORPORATIONS, 1951-55 June 1956. 9 pages. SEASONAL FACTORS AFFECTING BANK RESERVES. February 1958. 12 pages. REVISION OF CONSUMER CREDIT STATISTICS. October 1956. 24 pages. (Also similar reprint INTERNATIONAL GOLD AND DOLLAR FLOWS. from April 1953 BULLETIN.) March 1958. 7 pages. INDEX OF ELECTRICITY AND GAS OUTPUT. Octo- 1958 SURVEY OF CONSUMER FINANCES. PRELIMIber 1956. 15 pages. NARY FINDINGS. March 1958. 4 pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Statistical Tables Acceptances, bankers', 322, 323 Department stores: Agricultural loans of commercial banks, 318, 320 Merchandising data, 353 Agriculture, Govt. agency loans, 326, 327 Sales and stocks, 342, 352 Assets and liabilities (See also Foreign liabilities and Deposits (See also specific types of deposits): claims reported by banks): Adjusted, and currency, 314 Banks and the monetary system, consoli- Banks, by classes, 315, 319, 321 dated, 314 Federal Reserve Banks, 309, 310, 364 Corporate, current, 334 Postal savings, 314 Domestic banks, by classes, 315, 318, 320 Turnover of, 312 Federal business-type activities, by fund or ac- Deposits, reserves, and borrowings, by class of memtivity, 326, 327 ber bank, 307 Federal Reserve Banks, 309, 310 Discount rates, 308, 373 Foreign central banks, 368 Discounts and advances by Federal Reserve Automobiles: Banks, 305, 309 Consumer instalment credit, 338, 339, 340 Dividends, corporate, 333, 334 Production index, 344, 348 Dollar assets, foreign, 364, 365 Dwelling units started, 349 Bankers' balances, 319, 321 (See also Foreign liabilities and claims reported Earnings and hours, manufacturing indusby banks) tries, 342, 351 Banks and the monetary system, consolidated state- Employment, 342, 350, 351 ment, 314 Export-Import Bank, loans, etc., 326, 327 Bonds (See also U. S. Govt. securities): New issues, 332, 334 Farm mortgage loans, 326, 335, 336 Prices and yields, 323, 324 Federal business-type activities, assets and liabilities Brokers and dealers in securities, bank by fund or activity, 326, 327 loans to, 318, 320 Federal Deposit Insurance Corporation, Business expenditures on new plant and equip- assets, etc., 326, 327 ment, 334 Federal finance: Business indexes, 342 Cash transactions, 328 Business loans (See Commercial and industrial loans) Receipts and expenditures, 321 Treasurer's balance, 328 Federal home loan banks, loans, etc., 326, 327, 337 Capital accounts: Federal Housing Administration, Banks, by classes, 315, 319, 321 loans, etc., 326, 327, 335, 336, 337 Federal Reserve Banks, 309, 310 Federal National Mortgage Association, Carloadings, 342 Central banks, foreign, 366, 368, 373 loans, etc., 326, 327, 337 Coins, circulation of, 313 Federal Reserve Banks: Commercial banks: Condition statement, 309, 310 U. S. Govt. securities held Assets and liabilities, 315, 318 Consumer loans held, by type, 339 by, 305, 309, 310, 330, 331 Number, by classes, 315 Federal Reserve credit, 305, 309, 310 Real estate mortgages held, by type, 335 Federal Reserve notes, 309, 310, 311, 313 Commercial and industrial loans: Finance company paper, 322, 323 Foreign central banks, 366, 368, 373 Commercial banks, 318 Foreign deposits in U. S. Weekly reporting member banks, 320, 322 Commercial paper, 322, 323 banks, 305, 309, 310, 314, 319, 321 Commodity Credit Corporation, loans, etc., 326, 327 Foreign exchange rates, 374 Condition statements (See Assets and liabilities) Foreign liabilities and claims reported by Construction, 342, 348, 349 banks, 360, 362, 364 Consumer credit: Foreign trade, 353 Instalment credit, 338, 339, 340, 341 Major parts, 338, 340 Gold: Noninstalment credit, by holder, 339 Earmarked, 365 Consumer durable goods output indexes, 348 Net purchases by U. S., 365 Consumer price indexes, 342, 354 Production, 364, 365 Consumption expenditures, 356, 357 Reserves of central banks and governments, 366 Corporate sales, profits, taxes, and dividends, 333, 334 Reserves of foreign countries and international Corporate security issues, 332, 334 institutions, 367 Corporate security prices and yields, 323, 324 Stock, 305, 314, 365 Cost of living (See Consumer price indexes) Gold certificates, 309, 310, 311, 313 Currency in circulation, 305, 313 Govt. debt (See U. S. Govt. securities) Customer credit, stock market, 324 Gross national product, 356, 357 Debits to deposit accounts, 312 Home owners, Govt. agency loans, 326, 327 Demand deposits: Hours and earnings, manufacturing indus- Adjusted, banks and the monetary system, 314 tries, 342, 351 Adjusted, commercial banks, by classes, 319 Banks, by classes, 315, 321 Industrial advances by Federal Reserve Type of holder, at commercial banks, 319 Banks, 309, 310, 311, 312 385 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN • MARCH 1958 Industrial production indexes, 342, 343, 348 Real estate loans—Continued Instalment loans, 338, 339, 340, 341 Type of mortgage holder, 335, 336, 337 Insurance companies, 325, 330, 331, 336 Type of property mortgaged, 335, 336, 337 Insured commercial banks, 317, 318 Regulation V, loan guarantees, 311, 312 Interbank deposits, 315, 319, 321 Reserve requirements, member banks, 308 Interest rates: Reserves: Bond yields, 323 Commercial banks, 319 Business loans by banks, 323 Federal Reserve Banks, 309, 310 Federal Reserve rates, 308, 312 Foreign central banks and governments, 366 Foreign countries, 373 Foreign countries and international institu- Open market, 323, 373 tions, 367 Regulation V loans, 312 Member banks, 305, 307, 309, 310, 319, 321 Stock yields, 323 Residential mortgage loans, 335, 336, 337 International capital transactions of the U. S., 360 International financial institutions, 366, 367, 368 Sales finance companies, consumer Inventories, 357 loans of, 338, 339, 341 Investments (See also specific types of investments): Savings, 356 Banks, by classes, 315, 318, 320 Savings deposits (See Time deposits) Federal Reserve Banks, 309, 310 Savings institutions, principal assets, 325 Govt. agencies, etc., 326, 327 Savings and loan associations, 325, 326 Life insurance companies, 325 Securities, international transactions, 363, 364 Savings and loan associations, 325 Security issues, 332, 334 Silver coin and silver certificates, 313 Labor force, 350 State member banks, 317 Loans (See also specific types of loans) : State and municipal securities: Banks, by classes, 315, 318, 320 New issues, 332 Federal Reserve Banks, 305, 307, 309, 310, Prices and yields, 323, 324 311, 312 States and political subdivisions: Govt. agencies, etc., 326, 327 Deposits of, 319, 321 Insurance companies, 325, 336 Holdings of U. S. Govt. securities, 330 Savings and loan associations, 325, 336 Ownership of obligations of, 318, 325 Loans insured or guaranteed, 311, 335, 336, 337 Stock market credit, 324 Stocks: New issues, 332 Manufacturers, production indexes, 342, 343, 348 Prices and yields, 323, 324 Margin requirements, 308 Member banks: Tax receipts, Federal, 329 Assets and liabilities, by classes, 315, 318 Time deposits, 307, 314, 315, 319, 321 Borrowings at Federal Reserve Banks, 305, 307 Treasurer's account balance, 328 Deposits and reserves, by classes, 307 Treasury cash, 305, 314 Number, by classes, 315 Treasury currency, 305, 313, 314 Reserve requirements, by classes, 308 Treasury deposits, 305, 309, 310, 328 Reserves and related items, 305 Weekly reporting series, 320 Unemployment, 350 Minerals, production indexes, 342, 343 U. S. Govt. balances: Money rates (See Interest rates) Commercial bank holdings, by classes, 319, 321 Mortgages (See Real estate loans) Consolidated monetary statement, 314 Mutual savings banks, 314, 315, 317, 330, Treasury deposits at Federal Reserve 331, 335 Banks, 305, 309, 310, 328 U. S. Govt. securities: National banks, 317 Bank holdings, 314, 315, 318, 320, 330, 331 National income, 356 Federal Reserve Bank holdings, 305, 309, 310, National security expenditures, 329, 357 330, 331 Nonmember banks, 309, 317, 318 Foreign and international holdings, 367 International transactions, 363 Payrolls, manufacturing, index, 342 New issues, gross proceeds, 332 Personal income, 357 Outstanding, by type of security, 330, 331 Postal Savings System, 314 Ownership of, 330, 331 Prices: Prices and yields, 323, 324 Consumer, 342, 354 United States notes, outstanding and in circula- Security, 324 tion, 313 Wholesale commodity, 342, 354 Utility output index, 347 Production, 342, 343, 347, 348 Profits, corporate, 333, 334 Veterans Administration, loans, etc., 326, 327, 335, 336, 337 Real estate loans: Commercial banks, 318, 320, 335 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

(o THE FEDERAL RESERVE SYSTEM °) BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis