Federal Reserve Bulletin, 1962-09

FEDERAL RESERVE September 1962 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 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 Charles Molony Ralph A. Young Guy E. Noyes 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 Interest Rates in the Current Cycle 1101 Interest Rates and Monetary Policy 1110 Treasury and Federal Reserve Foreign Exchange Operations 1138 Law Department 1154 National Summary of Business Conditions 1170 Guide to Tabular Presentation 1172 Financial and Business Statistics, U. S. (Contents on p. 1173) International Financial Statistics (Contents on p. 1235) Board of Governors and Staff 1252 Open Market Committee and Staff; Federal Advisory Council 1253 Federal Reserve Banks and Branches 1253 Federal Reserve Board Publications 1255 Index to Statistical Tables 1257 Map of Federal Reserve System Inside back cover Volume 48 • Number 9 Subscription Price of Bulletin A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular 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

Interest Rates in the Current Cycle INTEREST RATES in U. S. financial mar- net declines and in some instances are below kets have risen much less since the February levels at the recession trough. 1961 trough in economic activity than they did in the recovery and expansion phases of GENERAL INFLUENCES the two previous economic cycles. The rising trend in interest rates during the Declines in rates from the May 1960 195O's was one facet of the vigorous expanbusiness downturn to the trough were also smaller than in earlier recessions, as the sion in economic demands and the accomcharts on the next two pages show. panying inflationary pressures that occurred in most leading industrial countries after Both short- and long-term rates had been World War II. In the United States heavy falling for several months before the recent recession began, however. And rates on spending by businesses, consumers, and State longer-term Government securities con- and local governments—much of it debttinued to decline for several months after financed—led during most of the decade to economic activity began to recover. These upward pressures on interest rates as well as developments were in contrast to earlier ex- on commodity prices and equity values. perience, when turning points in economic Twice during the 1950's—in 1953-54 activity and in interest rates were more and again in 1957-58—recessions internearly coincident. rupted the upward course of activity. In With much of the drop in rates coming those periods the Federal Reserve directed before the downturn in business activity, its policy toward encouraging bank credit total declines in rates in 1960-61 were and monetary expansion in an effort to more nearly comparable to those of earlier stimulate economic recovery and renewed cycles than were the declines during the growth. In most other years, however, the recession itself. System acted to limit the expansion of bank During the 1950's interest rates fluctuated credit and money in order to counter inflacyclically around a rising trend. In each suc- tionary tendencies. cessive cycle they reached new highs. Simi- In 1959, a year of economic expansion, larly each cyclical low was above the pre- private borrowing reached record levels. ceding one. At the same time the Federal Government Since early 1961, however, rate move- incurred its highest peacetime deficit. These ments have not followed this rising trend. heavy demands for funds, resulting pres- Because net advances in the past year and sures on bank reserves, and widespread exa half have been moderate, rates in mid- pectations that the 1960's would be marked September were below levels reached a not only by rapid economic growth but also year and a half after the previous trough. by higher commodity prices all helped to While short-term rates have risen some- push interest rates to the highest levels what this year, long-term rates have shown since the early 1930's. 1101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1102 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 In the second half of 1959 there was a market interest rates crested around the lull in economic activity associated with a turn of the year and then declined. long-drawn-out strike in the steel industry. Rates continued downward during the re- But most interest rates continued to rise cession but market expectations that ecothrough December as investors prepared for nomic expansion would soon resume modexpected boom conditions after the strike erated the declines. The recession in fact settlement and as security markets reacted turned out to be mild and brief. Activity to heavy Treasury borrowing. was rising again by early spring 1961 and The boom expected after the steel strike continued briskly upward through the sumdid not develop, and business activity moved mer. Then the pace of the advance slowed, sideways during the early months of 1960. and a year later there is still a significant In mid-spring activity gave signs of turn- margin of unutilized manpower and plant. ing down, private credit demands abated With the slower rate of economic expansomewhat, and credit conditions generally sion, projections of growth rates were reeased. vised downward, fears of imminent infla- During this period, the fiscal position of tion were largely dispelled, and private dethe Federal Government was undergoing mands for funds—though substantial—fell sharp change. In 1959 the Treasury had bor- below earlier expectations. rowed $8.6 billion, net, but in the first half Meanwhile, the flow of private savings to of 1960 higher tax receipts from the previ- banks and nonbank financial intermediaries ous year's expansion enabled it to repay $5.8 continued large. Corporate savings were high billion of Federal debt. as earnings improved and depreciation al- With the reversal of the major influences lowances increased. Growth in time deposthat had led to their run-up during 1959, its at commercial banks, after accelerating INTEREST RATES have fluctuated moderately since the 1961 recession at levels below earlier highs, Per cent per annum Pet cent per annum 1954 1958 NOTE.—Monthly averages of daily figuFes except for FHA market yields. Corporate and State and local bonds, from mortgages, data for which are end of quarter mid-1953 through Moody's Investors Service. FHA mortgages are Federal Remid-1955 and monthly thereafter. Rates for Treasury bills are serve compilations from average prices reported by FHA; light- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN THE CURRENT CYCLE 1103 during the recession and early recovery, rose deficit in the U. S. balance of international at an even faster rate in early 1962 when payments. This deficit has resulted in part banks raised their rates on such deposits. from net outflows of both short- and long- These factors served to moderate upward term capital and credit. There has been a pressures on interest rates in financial mar- particular risk that declines in short-term kets during the recovery-expansion period. rates to levels as low as those reached in Because of the continued availability of earlier cycles would add to the deficit, both manpower and other resources for economic by encouraging outflows of those liquid expansion, the Federal Reserve has main- funds that are sensitive to international rate tained a policy of monetary ease much differentials and by weakening foreign conlonger after the recession than in earlier fidence in the dollar. cycles. This has been a further factor in Several Federal Reserve actions have been limiting the rise in interest rates. taken to help deal with these concurrent Total bank reserves have risen more than problems of international payments deficit in the two earlier upswings, and in Septem- and the slack in domestic economic activity. ber 1962 free reserves still totaled several The revision of Regulation Q permitting hundred million dollars. After comparable member banks to pay higher interest rates periods in previous expansions, banks had on time and savings deposits effective Janularge net borrowed reserves, as the chart on ary 1, 1962, and the February 1961 extenthe following page shows. sion of Federal Reserve open market opera- Monetary and debt management policies tions to include longer-term securities both in the recent period have had to take in- helped to facilitate flows of funds to domescreased account of international interest-rate tic capital markets. Along with the mainterelationships because of a continuing, large nance of the discount rate at 3 per cent since AFTER A DECADE of wide cyclical movement and rising trend Per cent per annum Per cent per onnun weight lines indicate periods of adjustment to changes in con- Aug., except for bank loans, first half of June. tractual rates when no data were available. Latest data shown, Shaded areas indicate recession periods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1104 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 the summer of 1960, these actions also for Treasury investment accounts at about served to limit declines in short-term rates. the same time, involving substantial pur- Higher rates paid by banks on time and chases of longer-term securities and sales of savings deposits this year have made such short-term issues, had similar effects. deposits more competitive with short-term Treasury debt management operations securities as investment outlets, and have have also been adapted in light of the balstimulated bank interest in longer-term secu- ance of payments problem. The supply of rities for their own portfolios. Federal Re- Federal securities due within 1 year inserve purchases of longer-term securities in creased by nearly $18 billion from the end of January 1961 to the end of August 1962. This increase has played a major role in limiting declines in short-term rates. Over the FREE RESERVES renoli high same period, however, Treasury debt extenii carreit txpaisioi Billions of dollafl sion—accomplished largely through advance t.o refunding of outstanding intermediate- and long-term securities—has served to lengthen the average maturity of the total marketable debt. - .5 SHORT-TERM RATES Rates in short-term markets have fluctuated less sharply in the 1960-62 period than in 1957-59, as the chart on page 1105 shows. When compared with the more moderate rate movements in the 1953-55 period, however, recent short-term rate experience looks less unusual. Short rates in the recent period have differed from those in both previous cycles in three major respects. Instead of coinciding with or following the crest in business activity, they turned down 5 months before NOTE.—Member bank free reserves are excess reserves less d b a o i r l r y o w fi i g n u g r s e s. f ro " m P " t h in e d i F ca e t d e e s r a u l pp R e e r s e t r u v r e n . in M g o p n o th in ly t i a n v e e r c a o g n es o m o i f c the economic turning point and declined cycle. more than a percentage point in those 5 the open market, particularly in the second months. At their lows they remained well quarter of 1961, supplied additional bank re- above the extreme lows reached in earlier serves around the recession low without cycles. And they have advanced less in the adding directly to downward pressures on expansion. short-term rates. Early decline. The initial downturn of These purchases also moderated upward short-term rates in early 1960 resulted pressures on longer-term yields, thus facili- largely from changed market expectations tating the record volume of corporate bond regarding future demand and supply forces. notations that occurred then. Transactions When it became apparent after the steel Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN THE CURRENT CYCLE 1105 strike that private demands for credit would Flattening of Treasury bill rates in the fall far short of what had been anticipated latter part of 1960 was partly attributable to and that the Treasury would soon be shift- the large outflows of short-term capital and ing to a much larger than expected surplus, gold that occurred in that period. To some the sharp rate advances of late 1959 were extent the capital outflows siphoned off funds reversed. Subsequently, as business activity that might otherwise have gone into shortslowed and monetary policy eased, short- term Treasury securities. They also led marterm rates declined further. ket participants to assume that the Federal In the first 7 months of 1960, Treasury Reserve, in an attempt to reduce such outbill rates dropped more than they had in flows, would not lower discount rates or use the 1953-54 downswing and four-fifths as open market operations to achieve as marked much as in 1957-58. a degree of monetary ease as earlier patterns of System countercyclical policy might have Leveling-off of decline. Beginning in early suggested. Market opinions along these lines August 1960, 6 months ahead of the receswere reinforced by the widespread belief sion trough, bill rates stabilized and for the that the recession would be mild and short. next 14 months fluctuated in an unusually narrow range, at around 2.35 per cent. A seasonal swing in the Treasury's fiscal Other short-term rates, having declined less position—from substantial surplus in the sharply, continued to move gradually lower first half of the year to a moderate deficit in until the summer of 1961. the last half—also served to maintain rates SHORT-TERM RATES remained above extreme lows of earlier recessions aid have risea less ia the torrent expansion Per cent per onnu Per cent per annun NOTE.—Rates are monthly averages of daily figures; for 6-month maturities. "P" indicates upper turning point in eco- Treasury bills, market yields; for sales finance paper, 3- to nomic cycle. Terminal dates are first and last months plotted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1106 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 on bills in late 1960. The Treasury had eration was designed to achieve a moderate made net debt repayments of nearly $6 increase in the average maturity of the debt billion in the first half and reduced by more with minimum impact on market rates. than $9 billion the volume of marketable The accompanying table shows that Federal debt due within 1 year. But it was Treasury debt management accounted for a net borrower again in the second half, more of the increase in public short-term when debt due within 1 year showed a net debt holdings in the first half of 1961 than increase of nearly $5 billion. Federal Reserve and Treasury investment Domestic economic activity continued to account operations. Gross sales by the Feddecline through January and February 1961, eral Reserve, however, were much larger than net sales, and they were often made in CHANGE IN PUBLIC HOLDINGS OF MARKET- periods when short-term rates were under ABLE FEDERAL DEBT DUE WITHIN 1 YEAR downward pressure. [In billions of dollars] A further development that added to the volume of liquid assets was the decision of First half of— large New York City banks, in early 1961, Reason for change to offer marketable time certificates of de- 1954 1958 1961 posit. This action provided a new higheryielding investment outlet to investors with Shortening due to time 7.4 10.5 12.0 Extensions in reflandings -14.0 -12.5 -5.2 short-term funds. New cash borrowing 2.5 .3 4.6 Retirement - 9.1 - 4.9 -7.2 The increased supplies of short-term securities from these sources were absorbed by Net effect of time and Treas. debt management1 -13.2 - 6.6 4.2 strong demands from both nonbank investors and banks. Nonbank investors bought Official account transactions2 8 - 1 2 1 9 short-term securities in volume, partly with Total change -12.4 - 7.8 6.2 funds raised by record second-quarter corporate borrowing in the capital markets. 1 Figures exclude official account holdings (that is, those of Federal Reserve and Federal agencies and trust funds). And commercial banks, with their reserve 2 Minus sign indicates purchases from public. positions remaining easy, also added to their and capital outflows and gold losses re- short-term Government security portfolios. mained large. It was at this time that the The persistence of short-term rates at rel- Federal Reserve extended the maturity range atively high levels encouraged banks to conof its open market purchases to include centrate their investments in short-term selonger-term securities, and the Treasury be- curities. At the same time the general market gan to emphasize short-term securities in its expectation that demands for bank loans cash borrowing and refinancing operations. would expand with economic recovery, and These actions, together with sales from that monetary ease might be succeeded by Treasury investment accounts, increased the restraint as in earlier economic upswings, market supply of short-term Federal debt. made banks reluctant to extend their in- Although the Treasury carried out an ad- vestments to longer-term securities. vance refunding in March, issuing $6 bil- Had it not been for the large growth in lion of intermediate-term obligations in short-term Federal debt during the first half exchange for shorter-term securities, this op- of 1961, strong investor demands might well Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN THE CURRENT CYCLE 1107 have depressed rates on these issues to lower In late June and early July most market levels, as in 1954 and 1958, when short- rates rose briefly, the bill rate to nearly 3 term Federal debt available to the public per cent. The increase was partly the marwas declining. ket's reaction to measures announced by Changes since mid-1961. After showing Canada in late June to protect the Canadian little change during the summer and early dollar. Some investors speculated that simiautumn of 1961, short-term rates rose lar actions involving higher interest rates around the year-end, with the Treasury bill might be taken to deal with the U. S. balance rate moving up to about 2.70 per cent. of payments problem. This year-end advance in the rate was Also, there was widespread discussion of partly a reflection of a larger than seasonal proposals for immediate reductions in taxes rise in credit demands and market reactions to stimulate domestic economic expansion. to a large gold outflow. With the domestic Such reductions would have added to the economic picture showing further improve- budget deficit and thus to Treasury borrowment and with the balance of payments ing requirements. Proposals for tax reducposition remaining unfavorable, monetary tions were often accompanied by discussion policy was adjusted to aim for a somewhat of an offsetting shift in monetary policy. smaller rate of bank reserve expansion than In August the President deferred his rehad prevailed in earlier months. quest for a tax cut until early 1963, and During the first half of 1962 short-term balance of payments figures becoming availrates fluctuated narrowly at levels slightly able for the second quarter of 1962 showed above those reached at the end of 1961. some improvement. With these develop- While commercial bank holdings of short- ments, and with nonbank demand for shortterm Government securities rose very little term securities remaining strong, Treasury in this period, total short-term Federal debt bill rates turned down again. rose another $2.5 billion, following an increase of nearly $5 billion in the preceding LONG-TERM RATES 6 months. Net advances in long-term rates during the In addition to these developments affect- expansion have been small, due in the main, ing the market supply of Treasury securi- to the same factors that limited increases in ties, higher rates on commercial bank time short term rates. These factors included the certificates of deposit attracted nonbank moderate pace of the recovery after its funds. And the banks that received such initial phase, heavy flows of private saving, funds generally sought to place them in in- and continued monetary ease. Additional vestments paying higher returns than short- influences were the abatement of earlier exterm securities. pectations of inflation and the consequent All of these influences helped to offset shift in investor preferences from equities to continued strong demand for short-term in- fixed-income securities, and the increased vestments—from nonfinancial corporations, demand from banks for longer-term investforeign accounts, and State and local gov- ments. ernment agencies—which might otherwise Developments in 1960-61. Rates on Treashave depressed short-term rates in the first ury and corporate bonds began to decline half of the year. with short-term rates in early January 1960, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1108 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 before the May peak in business activity. In April corporate bond yields began to They turned up in the third quarter, but advance, and a flood of new flotations in only briefly, and did not advance again until the second quarter drove corporate offerings the second quarter of 1961. to record levels. Treasury bond yields, how- A continuing, though moderate, decline ever, continued to move downward into May. Early 1961 was the period when official LONG-TERM RATES decide oi bileicc ii 1962 purchases of longer-term Government securities were begun, both for the Federal Reserve open market account and Treasury investment accounts. In the 6 months ending with July, $2.7 billion of securities due in more than 1 year were acquired for these accounts, including $1.4 billion of bonds due in more than 5 years. Official purchases —which in these 6 months amounted to more than a third of total dealer sales of such bonds—first added somewhat to downward pressures on long-term rates and then cushioned advances in long-term rates in the early recovery period. After July, purchases for official accounts declined. The upturn of long-term rates in the second quarter of 1961 occurred as the early vigor of the recovery became evident. For a time the rate advance was rapid despite continued official account purchases NOTE.—Monthly averages of yields on U. S. Treasury bonds, of Treasury bonds. In late summer interdue or callable after 10 years; after 12 years for Feb.-Mar. 1953. "P" indicates upper turning point in economic cycle. national tensions over Berlin gave an additional fillip to long-term yields, particularly in yields on Treasury bonds for several on Governments. months after the February 1961 trough contrasted both with the relative stability of After mid-1961 the volume of new cor- Treasury bill rates in the same period and porate issues declined substantially from the with developments in earlier recessions, record rate of the second quarter, but heavy when Treasury bond yields as well as other flotations of State and local government islong-term rates began to move up about the sues and a steadily rising volume of mortsame time as business in general. gage financing maintained aggregate private Demands for long-term funds turned demand for long-term funds during the rest down in the first quarter of 1961. New cor- of the year. porate offerings were held down by expecta- Most long-term rates declined when the tions of still lower rates and by the moderate pace of the economic expansion slackened size of immediate cash needs. in September. After early November they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN THE CURRENT CYCLE 1109 rose moderately. At the year-end rates on municipal issues in the first 6 months of long-term Government bonds were some- 1962, and market rates on such securities what above, and those on most other bonds declined substantially more than those on slightly below, their summer highs. other types of seasoned long-term bonds. Increases in bank holdings of mortgages, Developments during 1962. From late while less dramatic than the rise for munic- February to mid-May 1962, although shortipals, added to an already heavy volume term rates remained relatively stable, longof mortgage lending by other intermediaries term rates declined. These declines erased and contributed to the further easing of much of the earlier advances in Treasury terms on mortgage contracts. Rates on and corporate bond yields and brought FHA-insured mortgages, which had trended yields on State and local government bonds downward throughout the recession and to a 4-year low in May. most of the expansion phase of the cycle, In part the declines were due to the were lower in July 1962 than at any time market reappraisal of prospects for comsince April 1959. modity prices, economic growth, and inter- With economic activity continuing to adest rates. In part they reflected a steady vance in the second quarter of 1962, invesexpansion of funds flowing into capital martors began to question whether the contrakets through banks and other financial in- cyclical decline in long-term rates would termediaries. continue, and rates leveled off. During the Of special importance in the latter con- May-June decline in stock prices bond yields nection was the advance in interest rates on were fairly stable. They rose briefly in late commercial bank time and savings deposits June and early July in response to uncerallowed under revised regulations. The in- tainties stemming from international balance creased rates paid on these deposits, together of payments developments and the discuswith their accelerated growth, gave banks a sion of possible changes in Government ecostrong incentive to acquire securities yielding nomic policies that were also affecting shorthigher after-tax returns, such as State and term rates. In August long-term rates turned local government issues, mortgages, and in- down again and have since fluctuated nartermediate-term Treasury issues. rowly around levels well below their early Banks acquired nearly $3 billion of 1962 highs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interest Rates and Monetary Policy by STEPHEN H. AXILROD and RALPH A. YOUNG INTEREST RATES are prices that reflect maturity. Attempts to explain these various future returns on current investments and aspects of interest-rate behavior raise quesrepresent the means by which these future tions about the basic economic function of services or income can be translated into rates; the relation of rates to cyclical changes present values. In this way they help indi- in economic activity, to inflation or deflation, viduals and businesses decide how to allo- and to economic growth; and the bearing cate resources between current spending of interest differentials among countries on and investments for future returns. They worldwide capital movements, gold flows, are also an influence on and international payments the allocation of financial generally. STAFF PAPERS—In addisaving between cash and The relationship between tion to its regular contents, earning assets. interest-rate movements the Federal Reserve Bulletin In a market economy in- from time to time includes spe- and governmental policies, terest rates are formed in cial papers on economic and particularly monetary polfinancial subjects. These pafinancial markets in re- icy, has been of particular pers, prepared originally for sponse to the major forces concern. In this context, the information of the Board influencing supplies of and attention has been espeof Governors by individuals on demands for loanable its staff, are selected for pub- cially directed to the extent funds. In these markets lication because of their gen- to which interest-rate movethere are many interest eral interest. The authors are ments, on the one hand, responsible for the analyses rates. Rates differ, for in- have been the product of and conclusions set forth. stance, according to the governmental policies or, quality of the borrower and on the other hand, have the risk-limiting provisions of the loan con- reflected economic forces in private sectors tract. Rates are also distinguishable by size of the economy, which have also necessarily of loan transaction; purpose of loan, such been affected by the course and strength of as business or consumption; institutional public policies. factors, such as government guarantees; This paper attempts to disentangle the and maturity of loan. The combined ten- diverse influences on interest rates in order dency of all the different rates represents the to help clarify the role that monetary policy level of rates in the over-all credit market. and operations play in their determination During recent years many facets of in- and movement. Trends in interest rates are terest rates have been re-examined by first discussed briefly, with emphasis on the scholars and students here and abroad. transition from wartime regulation of rates Attention has centered at times on cyclical in the 1940's to market determination of swings in the average level of rates; in other rates in the 1950's. With this background, instances, on the longer-term movement of we first discuss short-run interest-rate variarates; and on yet other occasions, on deter- tions, giving particular attention to the role minants of the pattern of rates by term to of bank credit and money, and then analyze 1110 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1111 the basic forces influencing the longer-term HISTORICAL PERSPECTIVE trends in the level of rates that accompany Perspective on how interest rates function economic growth. in a market economy is afforded by looking Later sections consider, in this order, the at interest-rate data available over the past economic factors that shape the maturity century. But the comparison involves two structure of rates, how interest rates are in- problems. First, the comparability of the fluenced by and related to international capital flows, and the connection between in- INTEREST RATES, both long- and short-term, terest-rate variations and monetary policy. fluctuate widely over past 100 years The literature of economics contains a Per cent per annum number of theories that help to explain interest rates, and this article draws on many of the explanations that have been advanced. For instance, some writers have focussed on the saving-investment process; some on the cash and liquidity position of the public; and some on the relationship between interest rates and the return on capital. Others have looked generally to the supply of and demand for loanable funds and the institutional organization for channeling and bal- 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 ancing these flows. Yet others have em- • Change in series phasized that interest rates are one among NOTE.—Annual data. Yields for corporate bonds for period 1860-1932 are adjusted series for railroad bonds, compiled many mutually interdependent elements in by Macauley. After 1932, they represent basic yields on 30-year corporate bonds of highest quality (Durand series). the economy and that they are determined —along with output and prices of goods statistical record diminishes as one moves and services—as labor, product, and finan- backward in history. And second, the pecial markets interact and come into bal- riod has been one of continuing and broad ance.1 social and economic change, including an expanding role for government, a changed 1The literature on interest rates is vast. A repre- structure and level of taxation, and growth sentative selection of modern works originally written of intermediary financial institutions that in English and devoted wholly or in part to the subject would include: channel savings. These changes must neces- I. Fisher, Theory of Interest (New York: The sarily be taken into account in interpreting Macmillan Co., 1930); W. W. Riefler, Money Rates and Money Markets in the United States (New York and London: F. Modigliani, "Liquidity Preference and the Harper and Bros., 1930); Theory of Interest and Money," Econometrica F. H. Knight, "Interest," Encyclopedia of the So- (January 1944); cial Sciences, Vol. VII (New York: The Mac- D. Patinkin, Money, Interest and Prices (Evanmillan Co., 1932); ston: Row, Peterson and Co., 1956); J. M. Keynes, The General Theory of Employ- M. J. Bailey, "Saving and the Rate of Interest," ment, Interest and Money (New York: Har- Journal of Political Economy (August 1957); court, Brace and Co., 1936); J. W. Conard, An Introduction to the Theory of J. R. Hicks, Value and Capital (Oxford: Oxford Interest (Berkeley: University of California University Press, 1939); Press, 1959); D. H. Robertson, "Mr. Keynes and the Rate of W. J. Baumol, "Stocks, Flows and Monetary Interest," Essays in Monetary Theory (Lon- Theory," Quarterly Journal of Economics don: P.S.King, 1940); (February 1962). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1112 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 differing levels and relationships of rates tion of changing. After a year and a half of over long periods. recovery and further economic expansion, During the past hundred years short- and interest rates during the first half of 1962 long-term interest rates, as measured by had not reached the levels attained during annual data, have moved through several the equivalent period of the preceding long cycles. They have also experienced cyclical rise, 1958-60. many fluctuations of shorter duration, as the Influence of World War II. Continuance of chart on the preceding page brings out. a low level of interest rates through the As regards long-term rates, a long cycle 1940's was the product of national policies is traced by the decline in corporate bond adopted to cope with a world war and its rates from 1870 to the turn of the century aftermath. The U. S. Government financed and the subsequent rise to around 1920. its expenditures in World War II in part by After 1920, long-term rates declined mod- selling Government securities to the bankerately for some years and then quite sharply ing system at prices and yields assured by during the 1930's. Federal Reserve operations; a rapid expansion in demand deposits was the cor- Meanwhile, short-term rates passed responding increase in the banking system's through several swings of moderately long liabilities. duration. They also exhibited shorter-term fluctuations of much wider amplitude than The full inflationary potential of this long-term rates. The extreme peaks shown money-creation process was not manifested for short-term rates sometimes coincided until after the war because materials allocawith acute tensions in credit markets that tions, rationing, consumer instalment credit preceded some cyclical downturns. regulation, and price controls were in effect. In the early postwar period, as supplies In the 1930's short-term rates fell preof goods and services became increasingly cipitately below long-term rates, and both available, materials allocations and rationshort and long rates reached levels considing were removed and price and other conerably lower than for any long period in trols were dismantled. As the public in these the nation's history. Students of financial circumstances began to use its large warhistory now generally agree that these low time backlog of cash and liquidity in order rates were caused by an especially severe to satisfy pent-up demand for goods and and worldwide depression. services, the average level of prices rose Both short and long rates remained low rapidly. through the 1940's and both rose from 1950 to 1960, with the rises interrupted Meanwhile, the wartime financing policy briefly by three periods of cyclical contrac- of assured prices and yields on Government tion. At each successive peak of the eco- securities was carried over into the postwar nomic cycles during the 1950's, market period because it was uncertain how secuyields on private and governmental obliga- rity holders would respond to withdrawal of tions generally rose to or settled at levels this support in a period of transition from somewhat above those reached at the pre- a wartime to a peacetime economy. In efceding peak. fect, this policy made the Federal Reserve During the first cyclical upswing of the the residual buyer in the market for the 1960's, however, this pattern gave indica- securities that private savers or financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1113 institutions did not wish to hold. Thus, it derlying forces of domestic and international gave a money quality to all interest-bearing expansion that were leading in this period marketable Federal debt and transferred to to a rise in rates from earlier exceptionally the market the ultimate control over the low levels. economy's money-creation process. Period of free markets. A resurgence of FLUCTUATIONS IN INTEREST RATES inflationary conditions, evidenced by sharp Like any other price, the movement of marincreases in the average level of prices, folket interest rates depends on shifting supply lowed the outbreak of hostilities in Korea. and demand conditions. The various major At this time there was some further exforces that affect the supply of and demand perimenting with special credit controls, for funds and thereby shape the movement including regulation of both consumer inand course of the average level of interest stalment credit and real estate credit; also rates interact constantly on one another, and reserve requirements for commercial banks they are also constantly being tempered and were raised temporarily. But inflationary modified by responses to changes in rates. demands could not be contained because In this interplay the various forces—such as the monetary and debt management policies saving out of income, bank credit and monethat had been pursued during and immeditary expansion, investment decisions, and ately after World War II were resulting in expectations of both suppliers and users of an unregulated monetary expansion. funds—reflect diverse developments in all With inflationary pressures persisting, sectors of the economy and the credit marpublic concern was increasingly directed at ket. the Treasury-Federal Reserve policy of peg- Flexibility of rates. While interest rates ging Government securities prices and yields generally respond to changes in supplyat fixed levels and at the harmful effects demand relationships, rates in some segthat an unregulated supply of money was ments of the credit market do not respond having on the value of the dollar. To give to the extent that would seem to be indicated monetary policy the freedom to cope with by such changes. conditions giving rise to this concern, the The most sensitive interest rates are those Treasury and the Federal Reserve agreed determined in central credit markets. These in March 1951 to discontinue official peginclude yields on obligations of the U. S. ging of interest rates on Government secu- Government, of State and local governrities. This agreement became known as the ments, and of major corporations, as well Treasury-Federal Reserve accord. as rates on short-term open market loans As monetary policy became free to reguthat entail little or no customer relationship late bank credit and monetary expansion in between lender and borrower. As shown in the interest of sustainable economic growth the chart on the next page, they are quite and a stable value for the dollar, and as responsive to cyclical changes in economic the economy continued to expand—with activity, with short-term rates showing larger temporary variations—market interest rates swings than long-term rates. and security prices began to fluctuate in response to short-run shifts in the supply of Certain types of interest rates, however, and demand for funds. The longer-run do not immediately reflect changes in the movement of rates also came to reflect un- supply of credit relative to demand. They Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1114 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 often respond to such changes only af- amount they must leave in the custody of ter a lag. One such rate is that charged lenders or the discount from the face value customers by banks on prime business loans; of the loan that investors may require to a second, mortgage interest rates; and a raise the actual interest rate above the conthird, consumer credit rates. In some in- tract rate. stances a stated interest rate may not change, Bank rates charged customers on most but the effective rate to borrowers may be types of loans tend to change less continvaried through other changes such as the uously than rates on obligations traded in the market. For one thing, banks MOST INTEREST RATES highly responsive to typically hold their loans to maturity. fluctuations in demand and supply For another, many borrowers, especially Per cent per annum those whose size and area of operation may be restricted, rely on banks for practically U.S. GOVT. BONDS all of their financing. This tends to make J \ CORPORATE Aaa bank borrowers either comparatively unresponsive to interest-rate changes or unable to take advantage of alternatives, which, \ OPEN MARKET while apparently cheaper as to interest rate, ^ PAPER might involve offsetting costs and incon- -I 3 veniences. Still another factor is that banks generally believe that changes in loan rates are disturbing to long-term customer and competitive relationships. In making adjustments in rates, therefore, banks look more to longer-term considerations of expected growth of loan demand in relation to deposit growth than to short-run variations in the supply of loanable funds OTHER RATES less so relative to current demands. Nevertheless, average interest rates on short- and long- — 6 term bank loans to business do show some variations in response to changed supplydemand relationships. And the larger the — 5 loan, the more do interest rates tend to vary over a short period, as large customers tend to be more mobile in seeking financing and as banks, therefore, become more responsive to costs of credit from competing sources, such as capital markets and other institutional lenders. Interest rates, output, and prices. The investment, saving, and monetary forces shap- 1956 1958 1960 1962 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1115 ing interest-rate variations also influence real incomes rise tends to temper upward movements in total output and the average interest-rate pressures. level of prices. In other words, changes in In general, in a cyclical economy, inmarket interest rates, output, and prices can terest rates tend to be relatively low in be considered the joint product of these periods of lessened economic activity when forces. While the tendency is for all, at least there is keener competition in the sale of products and services, reduced borrowing in the short run, to be subject to upward demands, and a tendency for the average or downward pressures together, they genprices of goods and services to recede. On erally move at different paces. Moreover, the other hand, they will tend to be higher the rate of change in each depends in part in periods of expanded economic activity, on the degree of pressure to which other when demands for final products are strong, rates are being subjected. credit demands are high relative to the This is not simply a matter of the extent supply of funds, and prices are tending to to which movements of interest rates, outrise. put, and the average prices of output com- Bank credit, money, and interest-rate plement each other. It also pertains to the variations. Downward and upward tendendegree to which each is a substitute for the cies in the level of interest rates are condiothers—that is, with the degree to which tioned in part by countercyclical changes in pressures in one area can be diverted to bank reserves, bank credit, and money. another. For example, at high levels of re- When economic activity is at reduced levels, source utilization, a rise in interest rates that bank reserve positions are generally easy. is tempered or delayed by rapid expansion This is partly because demands for bank of bank credit will be reflected in a tendency loans are low and partly because the actions for average prices of goods and services to of the monetary authority are working to rise. Or when the economy is expanding increase the availability and lower the cost in a period when resources are underutilized, of bank reserves. As banks seek investment the economy's ability to bring these resources outlets for their surplus funds, they add to into production and to increase saving as market ease on the supply side. MOVEMENTS in output, prices, and interest rotes are interrelated 1957 100 1947-49 =100 Per cent per annum INDUSTRIAL PRODUCTION INDUSTRIAL PRICES -YIELDS ON U. S. GOVT. BONDS - 5 Seasonally adjusted 1960-62 120 - - - 130 100 - 120 80 J 60 100 1 • , ,,. . . 1 1 1 T ,,!,,,,, 1.... TROUGH 0 TROUGH ° TROUGH Months before Months after Months before Months after Months before Months after Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1116 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 With expansion in bank credit, the money the opportunity to realize capital gain upon supply rises—this supply being defined as sale increases the liquidity of their portfolio currency and demand deposits held by the of marketable earning assets. This may inpublic. Time and savings deposits in com- crease their incentive actively to seek new mercial banks also rise. This expansion in borrowers, including some who might under the liquidity of consumers and business may more restrictive conditions be regarded as increase their willingness to spend. It may unacceptable. also make them want to purchase other financial assets, particularly the riskier types, SHORT-TERM INTEREST RATES rise and fall which extends the market area of downward as bank reserve positions change Per cent per annum Millions of dollars pressures on interest rates. The increased availability of credit from banks and the expanded demands of banks 4 b and the public for securities help drive market interest rates down, perhaps below levels that are reflections of the longer-run 400 profitability of investment at the time. This provides one stimulus to recovery in investment and economic activity. Another stimulus to expansion of borrowing derives from any rise in spending associated with greater liquidity of the economy 400 as currency and bank deposits held by the public expand. The greater demand for TROUGH TROUGH goods and services enhances the expected profitability of business investment and Renewed expansion in the demand for thereby the willingness to bid for borrowed credit first tends to reduce the degree of funds at existing market rates. market ease and then to tighten credit con- Capital gains, resulting from higher prices ditions and put market interest rates under of securities in a period of declining interest upward pressure. As the economy aprates, also may contribute to increased borproaches a high level of resource use, as exrowing and spending. The rise in capital pansion in output is limited by the existing values of assets, as people are willing to pay small margin of unutilized resources, and more for a given income, increases the as investment demand tends to outrun the liquidity of holders and thereby influences supply of saving, prices of output and intheir willingness to spend and also to borterest rates both tend to rise. In these cirrow to finance part of their spending. At cumstances, limitations on the expansion the same time, additional borrowing may of bank credit and money, so as to keep occur mainly for speculative reasons as pur- total demand for goods and services in line chasers seek longer-term financial assets in with the economy's capacity to produce, the hope of realizing capital gains. Lenders put additional upward pressures on market in some degree may also be more willing rates, in a sense displacing the effect of to lend in a period of declining rates since pressures making for rising prices. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1117 higher interest rates, in some degree, reduce credit conditions. In markets characterized business and consumer spending and bor- by lessened interest-rate sensitivity, lenders' rowing demands; the lower capital values willingness to make funds available and associated with higher interest rates rein- borrowers' ability to obtain them depend force such a reduction. not so much on the loan rate as on the Expectations of borrowers and lenders, availability of funds. interacting with basic supply and demand When credit demands press actively conditions, may affect the intensity of in- against the supply of funds in market secterest-rate movements. If borrowers expect tors where interest rates tend to be less interest rates to decline, for instance, they flexible, lenders—who always tend to be may withdraw from the market, and this selective to some degree in satisfying borwill add to downward pressures on rates. rowers—adhere to stricter lending stand- If, however, borrowers do not expect the ards, screen creditworthiness of borrowers lower rates to continue, they may anticipate more carefully, and tend to give first priority future borrowing needs in the present and to customers of long standing. Under these bring about upward rate pressures, even circumstances many borrowers are obliged though basic supply conditions in credit to shop more intensively to find banks or markets have in fact not changed. other lenders whose loan standards and terms they can meet, and some would-be Widely held expectations of inflation may borrowers fail to find accommodation. accentuate upward pressures on both prices of goods and interest rates. These expecta- An increase in demand for funds relations will produce at the same time an in- tive to supply, therefore, not only causes creased demand pressure on interest rates interest rates to rise but also has a direct effect on the ease with which borrowers can and a reduced supply of loan funds. On the obtain funds and on the amounts they can demand side, borrowers will seek either to obtain. Similarly, limitations on the supply beat the higher costs of money in the future of bank credit and hence in some degree on or to gain the advantage of falling real costs over-all credit availability tend to be accomof interest on obligations assumed in the panied by both rising interest rates and inpresent. On the supply side, lenders will creased nonprice allocation of funds as lendeither raise the interest returns they insist ing standards become more strict. Thus, it on obtaining to compensate for the risks of should be kept in mind that changes in supa falling purchasing power or seek outright ply or demand conditions for credit are not ownership and a variable return rather than always, or in all market sectors, completely a contractual interest investment. A diminreflected in changes in interest rates. They ishing of inflationary expectations, on the are also reflected in changes in the availabilother hand, will tend to be accompanied by ity of lendable funds and in the ease with downward pressures on interest rates and which borrowers can find accommodation. reductions in the prices of equities, as investors become less inclined to hedge BASIC FORCES against price rises. SHAPING INTEREST-RATE TRENDS Credit availability as an aspect of market To understand the behavior of interest rates, conditions. As mentioned earlier, all interest it is important to distinguish the longer-run rates are not equally responsive to changing trend in rates from cyclical and other short- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1118 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 run variations in rates. In practice, of course, sustaining high capacity utilization has a what we call long-run forces are always large demand for investment goods, and also present and they influence short-run changes, has a high propensity on the part of the while the effects of short-run forces may also public to save, relatively rapid and stable ramify into the future. growth could occur at comparatively low The trend of interest rates over the longer interest rates. A society with high and risrun is basically shaped by the nonmonetary ing consumption standards relative to proforces affecting the economy's propensities duction, and a low propensity to invest and to save and invest. One of these forces is the progress of technology, which affects the ECONOMIC GROWTH associated with varying efficiency or productivity of capital and also, interest-rate movements Ratio scale Ratio scale along with prospective demands for goods Per cent per annunr Billions of dollars 1000 and services produced, the expected profit- 500 ability of investment. Another force is rep- GROSS NATIONAL PRODUCT 200 resented by the attitudes and desires that 1954 pri 10 100 influence the public's willingness to defer 50 current consumption, and thus to save. Interest rates and growth. Growth rates 20 10 of the economy over long periods have been 1900 1920 1940 associated with varying interest-rate trends. For example, the economy has moved NOTE.—GNP in constant (1954) prices. For long-term bonds, see note to chart on p. 1111. through periods of rapid growth sometimes with a falling trend of interest rates and save, will have a slower rate of growth. If, sometimes with a rising trend. in order to accelerate growth under those Economic growth necessarily depends on conditions, domestic investment is encourthe extent to which resources are diverted aged, reduced consumption will be required from the production of goods for current to expand saving while maintaining a stable consumption and are invested in tangible level of prices. In this way resources can be capital or expended on services applied to released to meet the expanded investment research, development, and education. These demand without upward pressures on prices investments and expenditures will increase and interest rates. the future output of desired consumer goods. But in periods of high and rising stand- In a modern economy in which both pub- ards of consumption—including public falic and private sectors play important roles, cilities such as water, sewage disposal, hoschoice in the use of resources for future as pitals, schools and roads, which both proagainst current consumption is made partly vide consumer services and contribute to through public decisions as to governmental economic growth—expansion of economic taxation, spending, and investment. But to growth is likely to entail rising, or coman even greater extent, it depends on de- paratively high, interest rates as consumers, cisions of a multitude of individuals and businesses, and governmental units all combusinesses effected through competitive bid- pete vigorously for available funds. Interest ding in the market. rates on the average will reach a level that If, for an extended period, an economy induces a flow of saving from the public Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1119 adequate to balance the expanded credit de- rower's ability and willingness to pay the mands of the economy, or that results in the interest earned by the nation's saving. exclusion of enough financing demands to Consumers are also an important source balance the existing savings flow, or both. of investment demand, and variations in Thus, the trend of interest rates that accom- their demand have at times had a significant panies different rates of economic growth depends, in the final analysis, on the public's CAPITAL OUTLAYS of businesses, propensities to save and to invest. and of consumers, change sharply over cycle Capital outlays and credit demand. The Annual rates Billions of dollars economy's financing demands rest in large part on its propensity to invest in tangible assets—on the needs of business for more CONSUMER and better plant and equipment, and for DURABLE GOODS / inventory; on the needs of individuals for more and better durable goods and houses; and on the needs of State and local governments to finance an ever-expanding complex of public facilities. Deficits in the Federal Government's budget also augment the demand for funds, while budgetary surpluses augment the supply of funds from private saving. In addition to domestic demands, there are financing demands from abroad. A net outflow of funds abroad, by diverting domestic saving to foreign markets, will put upward pressure on domestic interest rates. A net inflow of funds from abroad will have the opposite effect. ... ^ J . 10 1954 1956 1958 1960 1962 Businesses are the most volatile source of private investment demands, and the pace influence on the course of economic activity of economic growth is intimately related and of credit markets. Their credit demands to the amount and character of their in- are strongly influenced by the comparison vestments. Their demand turns largely on that consumers make between their ability the expected profitability of investment. As to carry debt—that is, to pay the interthis rises, so does investment demand, and est costs and amortization—and the presso does the rate of interest, if other con- ent and expected return the good may yield ditions remain unchanged. In one sense, in terms of service. Consumer appraisals of therefore, the interest rate depends on the such returns versus debt charges are necesmarginal productivity or efficiency of capi- sarily affected by variations in personal intal. The income from the added output of come, consumer debt positions, and the goods and services associated with new in- over-all economic and credit situation. vestment is a fundamental basis for the bor- Domestic demands for credit have ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1120 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 panded rapidly since World War II. A note- three-fifths of the economy's gross saving. worthy fact, as the chart shows, is that debt Most consumer funds flow into markets of consumers and State and local govern- through financial institutions as intermements has grown even faster than business diaries, but consumers also at times purchase debt since 1950. Business investment during substantial amounts of securities directly. this period was financed mostly out of re- Nonfinancial businesses also supply funds to financial markets. In contrast to con- BUSINESS BORROWING rises less than sumers, businesses place a large proportion consumer or State and local govt. since 1950 of their funds in financial assets on a more or less temporary basis. They are active investors in highly liquid instruments, such as CONSUMER short-term U. S. Government securities, which can be readily converted into cash STATE AND LOCAL GOVERNMENT to meet liabilities as they come due or to finance increased investment outlays. BUSINESS CONSUMERS the major source of FEDERAL national saving GOVERNMENT millions of dollars 1 150 BY SECTOR: 100 200 Percentage change, 1950 to 1961 957-61 FINANCIAL NOTE.—Data from flow-of-funds accounts. TOTAL SAVING INSTITUTIONS tained earnings and capital consumption NONFINANCIAL allowances. Expansion in capital outlays— BUSINESSES whether business, governmental, or individual—generally contributes to upward interest-rate pressures, however, even though CONSUMERS not financed by borrowing. When financed out of current income or receipts, such outlays absorb funds that might otherwise have been saved in the form of financial assets _L J_ GOVERNMENTS and thereby been made available to meet 1951 '53 '55 '57 '59 1961 borrowing demands from the rest of the NOTE.—Data from flow-of-funds accounts. economy. In general, the public places its financial Savings and the supply of funds. Over the long run, the supply of loanable funds rests saving in a variety of financial assets, inon the willingness of savers to restrain cluding currency, bank deposits, claims on spending out of current income and to make nonbank financial institutions, and securithe funds they save available to others. Con- ties. The amount that the public wants to sumer saving is the largest source of funds save in any particular form depends on its to financial markets; in recent years, as portfolio preferences. These, in turn, reflect shown in the chart, it has provided about the character and needs of the savers, as well Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1121 as the terms and conditions on which finan- expansion averaged annually about onecial outlets are available to them. fifth of total credit expansion. And the share The actual amount of saving in the form of the total provided by expansion of deof currency and deposits with commercial mand or monetary deposits averaged less banks, however, is strongly influenced by than one-tenth. monetary policy, as its actions affect the volume of bank reserves and, thereby, INTEREST-RATE PATTERNS through the process of bank credit expan- The discussion so far has dealt with insion, the volume of currency and deposits.2 fluences affecting the general level of rates, Over the long run, under conditions of but we have also noted that the behavior of high employment and stable prices, the short-term rates contrasts markedly with banking system's reserves need to grow that of long-term rates. Differences in inenough to permit an expansion of the money terest rates according to maturity are an supply and also of time and savings deposits important aspect of market functioning. in line with what the public wants to save These differences in rates according to main such forms considering its other portfolio turity create what is called the term strucpreferences. ture—or maturity pattern—of rates. Thus, the rate of growth in the money supply, and also in bank credit, may change YIELD CURVE shows differences in from one comparatively long period to an- interest rates by maturity Per cent other in accordance with changes in the asset 5.2 structure desired by the public, as influenced - 4.6 in part by shifting liquidity preferences. MAY 22, 1962 Shifts in liquidity preference—for instance, 4.0 a changing desire to hold money as com- 3.4 pared with securities or interest-bearing def posits—may influence market interest rates —- 2.8 as the aggregate and composition of demand X FIXED MATURITY 2.2 for securities change. • CAL LABLE BONDS With continued expansion in nonbank , 1 .1.1. I , 1 1 1 1 1 1.6 sources of credit and in nonbank outlets for 1 4 6 8 10 12 14 16 18 20 22 24 36 YEARS TO MATURITY savings, only a comparatively small share Within the term structure, short-term inof the aggregate demand for credit can be struments tend to serve somewhat different satisfied by expanding bank credit, if exneeds from long-term ones, though there is cessive growth in the money supply or a good deal of substitutability in function closely related assets is to be avoided. Availbetween the two. From the borrower's point able estimates indicate that, during the decof view, long-term instruments are better ade of the 1950's, the share of bank credit suited to financing investments that yield 2 The amount of bank deposits associated with any their return over long time periods, such as particular level of reserves, however, will be larger plant, equipment, and housing; and shortor smaller, depending on the public's relative preferences for currency, demand deposits, or time deposits. term instruments are better adapted to more Expansion will be larger, for example, to the degree current needs such as inventory stocking or that the public prefers time deposits, which have a lower reserve requirement than demand deposits. borrowing to pay taxes. From the lender's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1122 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 or investor's viewpoint, short-term instru- YIELDS fluctuate less ments are more suitable than long-term ones for long than for short maturities as a repository for liquidity funds and for Per cent per annum YIELDS funds that may have to be called upon to U. S. GOVT. BONDS meet near-term liabilities, while long-term long-te -I 4 instruments are more appropriate from the standpoint of assuring investment yields - r \ /9-12 MONTH ISSUES over long periods. V Nevertheless, borrowers and investors j 0 often switch among instruments of differ- PRICES fluctuate more for long Dollars 1 ent maturities as credit conditions change. —I no Investors in U. S. Government securities, for example, vary the maturity composition of 100 their portfolios as relative yields change or in anticipation of future yield changes. Various writers on economics have advanced different theories as to what are the 1956 1958 1960 1962 dominant influences on the term structure of predominated. In many of the years before rates. Before discussing these various theo- 1930, as the chart on page 1111 shows, ries, two facts about short- and long-term short-term rates in the United States were rates should be noted. First, observation of above long-term rates. changes in the maturity structure of rates Influences on maturity relationships of over a period of time shows that rates on rates. A number of factors condition the long maturities fluctuate within a narrower relationship among interest rates according range than do those on short maturities, to maturities. Four can be distinguished. whereas in terms of price the long maturi- One is the degree of liquidity of the instruties fluctuate more. Secondly, for much of ments themselves. Another is the portfolio the time short-term and long-term rates rise preferences of the institutional investors that and fall together, so that the whole spectrum channel the lion's share of individual savof rates tends to move together in a fairly ings into market instruments. A third influsystematic fashion. But short-term rates ence is what investors and borrowers expect generally change at a more rapid pace than future interest-rate and market trends to be. long-term ones, and for some periods the And a fourth relates to the maturity comdirections of the movements even diverge. position of the outstanding debt that has These aspects of the term structure of been made available to the markets by isinterest rates are illustrated in the accomsuers. panying chart, which compares price and Liquidity of instrument. Some analysts interest-rate movements for short- and long- have stressed that interest is paid to comterm U. S. Government securities over the pensate holders of securities for the fact that past several years. During this period long- securities, in contrast to money, entail a risk term rates have generally been above short- of loss in capital value and a cost of portterm rates. Over the past century, how- folio administration. Thus, interest rates ever, no one maturity pattern of rates has would tend to be high on the least liquid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1123 securities—that is, those with characteristics On the other hand, some financial instiremote from money—and low on securities tutions—such as insurance companies—emthat are nearest to money in character. phasize investments in longer-term securities Short-dated market instruments fluctuate because the comparative stability and relatively little in price and in most instances longer-run predictability of their liabilities can be readily bought and sold. As already reduce the extent to which they may incur indicated, they provide an outlet for funds capital losses from frequent liquidations of that may have to be used on short notice to assets. By including a large proportion of make current payments or to meet contin- long-term investments in their portfolios, gencies. The interest rate on such instru- they avoid the uncertainty of a variable rements tends to be lower than that on longer- turn from constant reinvestment in shortterm and less readily marketable securities, term securities. since investors are willing to accept a lower Institutional portfolio patterns are in return for liquidity. Generally, liquidity con- practice less fixed and rigid than the foresiderations would make the market yield going illustrations imply. Institutions, parcurve slope upward; that is, interest rates ticularly in the short run, have varying would rise as maturities lengthened. degrees of latitude in adapting the composi- Hedging behavior of institutions. Banks tion of their portfolios to changing market and other financial institutions find it prudent conditions. Commercial banks, for example, to manage their portfolios in a way that, for with their combination of demand and time operating purposes and considering the ma- liabilities, hold a sizable portion of assets turity character and potential variability of that can readily be shifted from short- to their liabilities or prospective commit- longer-term securities in response to market ments, hedges against uncertain fluctuations incentives. in security yields and prices.3 Also, large To the extent that different institutions business corporations that have funds temare more active in one market sector than porarily in excess of their requirements for another, the maturity pattern of rates decurrent payments usually invest such funds pends on the importance and specialized in maturities that coincide with projected role of various institutions as buyers or future payments needs or that provide for sellers of securities at different periods of contingencies. time or at different stages of the economic To illustrate, the liabilities of commercial cycle. Since World War II, for example, banks are largely short-term and are volatile short-term rates have generally been below and subject to potentially large swings. long-term rates, but they have risen relative This requires frequent sales of assets. To reto them during cyclical upswings. In the late duce uncertainties about the amount of cash stages of the upswing from 1958 to early that can be obtained from such sales, banks 1960, they rose above long-term rates. tend to invest fairly heavily in short-term Thus, the upward slope of the maturity curve securities since they fluctuate least in price. has become progressively less steep during 8 The role of institutional influences in determining cyclical upswings. This has reflected in part the maturity pattern of interest rates is emphasized in the cyclical behavior of banks and busi- W. Braddock Hickman's exploratory analysis of "The Term Structure of Interest Rates" for the Financial nesses. In expansion periods these groups Research Program of the National Bureau of Ecosell relatively large amounts of short-term nomic Research (1942, unpublished). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1124 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 securities in order to meet growing demands to dampen fluctuations in long-term rates, for funds, while in recessions when demands which are more complex and less sensitive are slack they are heavy buyers of such than short-term rates. Expectations, then, securities. are one explanation for the greater day-to- Expectational factor. While the two pre- day fluctuations in short- as compared with viously mentioned factors have an influence long-term rates. on the term structure of rates, many econo- As the average of rates changes, the exmists and market observers consider ex- pectations of market participants will change pectations to be the predominant influence. and by changing will alter the term struc- Expectations theorists contend that maturity ture of rates. For example, if the average choices of borrowers and lenders are deter- of market rates has been low, market opinmined by their expectations as to future ion may come to expect a general rise in rates and that behavior of market partici- rates. In these circumstances, investors will pants will cause long-term rates to equalize tend to stress investment in short- rather than with the average of short-term rates expected long-term securities so as to have cash availover the future. In its simplest formulation able for the higher yields expected in the the theory assumes that investors are in- future and to avoid the capital losses assodifferent to risk, but other formulations ciated with long-term investments during allow for the fact that investors may have periods of rising rates. Meanwhile, borto be given a premium to undertake the rowers will try to borrow "long" for as greater risk and administrative costs of many of their needs as possible to avoid the longer-term investments.4 Since the near- higher rates of the future. This behavior of term future is more foreseeable and certain investors and borrowers will tend to lower than the longer-term future, and with many short-term rates relative to long-term rates. lenders seeking to avoid the risks of longer- The opposite will occur when market term lending, the normal tendency of the opinion anticipates a declining level of rates. yield curve would be to slope upward. Investors will sell short-term securities and Yields on short-term securities are affected buy long-term rates ones so as to increase by near-term and temporary factors. Yields opportunities for capital gains, while boron long-term securities, however, are in- rowers will emphasize shorter- as against fluenced less by short-run developments longer-term borrowing. When the average since they are averages of the yields per level of rates was comparatively high in annum expected over both the short- and cyclical upswings during the postwar pelonger-run future. Expectations extending a riod, this shift in supply and demand relalong time into the future are less volatile tionships was an important reason why the than near-term expectations. And this tends yield curve tended to become flat or even slope downward. 4 See particularly, F. A. Lutz, "The Structure of In- Maturity composition of outstanding seterest Rates" {Quarterly Journal of Economics, Vol. 55, November 1940, pp. 36-63) and Hicks, op. cit. curities. Discussion of how the structure of B. G. Malkiel, "Expectations, Bond Prices, and the the supply of securities affects the maturity Term Structure of Interest Rates" {Quarterly Journal of Economics, Vol. 76, May 1962, pp. 197-218) formu- pattern of rates has been stimulated during lates the expectations theory giving explicit recogni- the past few years by the concurrence of tion to the influence on the term structure of expected movements in bond prices. problems in the balance of payments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1125 INTEREST RATES AND MONETARY POLICY the domestic economy. The need to reduce Taking such views into consideration, the the nation's balance of payments deficit has monetary and debt management authorities seemed to call for a rise in interest rates cooperated in changing the relative supplies whereas the domestic condition of under- of short- versus long-term Government debt utilized resources has favored a low level of outstanding in an effort to alter the term rates. structure of interest rates, particularly to Many observers thought that this ap- obtain higher short-term rates than might parent dilemma could be resolved at least otherwise have been consistent with domespartially by monetary and debt management tic conditions. The Treasury issued substanmeasures that would affect specific rates in tial amounts of short-term securities in its the term structure through changes in the financing operations, and the Federal Rerelative supplies of securities available to the serve in early 1961 adapted its open market investing public, They considered that it operations to include securities of all mawould be desirable to raise short-term rates turities, though continuing to emphasize short-term issues. YIELD PATTERNS influenced in part Whether, or in what degree, changes in by maturity structure of debt the maturity composition of the outstanding Per cent 4.5 publicly held debt can affect the structure - APR. 30, 1962 4.0 of rates depends on the tendencies and FEB. 28, 1961 strength of the other forces that influence )) - 3.5 i the rate pattern. In other words, the maturity ) 3.0 / \ composition of the debt is only one factor i_ i 2.5 shaping the yield structure. Its influence in ,. 1 , 1 , 1 , 1, Li M , l, 2.0 a particular market situation has to be con- , I ,I 2 4 6 8 10 5 2 14 16 13 20 22 24 sidered in conjunction with forces arising Years to maturify out of liquidity needs, institutional portfolio PUBLICLY HELD MARKETABLE DEBT adaptations, and market expectations as to future interest-rate movements. MATURITY AMOUNT PERCENTAGE GROUPING OUTSTANDING CHANGE Interaction of forces. It seems unlikely Billions of dollars that the liquidity of instruments—which de- WITHIN 1 YEAR 62.3 68.8 + 10.4 pends on the extent to which they are readily 1-5 YEARS 55,6 48.9 - 12.1 marketable and likely to change in price— 5-10 YEARS 15,. 9 20.5 + 28.9 would be significantly affected by changes OVER 10 YEARS 21.3 21.6 + 1.4 in the composition of debt, provided these NOTE.—Figures are for U. S. Government direct debt. changes were not extreme. A decrease in —by adding to the market supply of short- short-term instruments outstanding, for exterm U. S. Government securities—in order ample, would probably not make them any to discourage outflows of capital. At the less marketable or any more subject to price same time, reductions in the supply of long- fluctuations. If, however, the investing pubterm U. S. Government securities in the lic came to believe that longer-term oblimarket would encourage declines in long- gations would fluctuate less in price than term rates in order to stimulate domestic before and become more readily marketable, economic expansion. as compared with short-term, then the term Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1126 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 structure of rates would be affected as the for securities of differing maturities. Instipublic began to invest more in longer-term tutions' preferences are not fixed and are obligations in meeting their liquidity needs. not determined solely by the structure of As noted earlier, the hedging propensities their liabilities. Moreover, professional of institutions stem from the structure of traders and arbitragers can to a great extheir liabilities, and this structure is not tent move between the short and long ends altered by changes in relative supplies of of the market. securities. To the degree that institutional In time, demands can be expected to shift demand for securities is determined by in response to the initial rate changes that hedging behavior, therefore, a change in the might be brought about by changes in suprelative supply of securities will bring about plies. The rate structure will tend to adjust some change in the term structure of rates. to reflect more lasting influences. Indeed, If expectations tend to dominate the in a well organized and flexible market, such maturity pattern of rates, a change in the adjustments are constantly being made. composition of outstanding debt would not These adjustments may limit the extent to by itself have any effect on rate pattern. which changes in relative supplies affect the But it would have such an effect if the maturity pattern of rates, or at least the change in supply caused expectations about length of time for which any supply-induced the future course of rates to change. These changes in maturity pattern will be susexpectations, however, are the product of tained.5 many complex psychological and economic While interest rates in some market secforces, and these may not be significantly tors are less flexible than in others, and while affected by changes in the structure of the 5 Some empirical work has been done that bears on debt outstanding. If changes in relative supthe extent to which changes in relative supplies of plies of market securities are not accom- securities affect yields. An as yet unpublished study by Arthur Okun for the Commission on Money and panied by changes in market expectations Credit entitled, "Monetary Policy, Debt Management, as to future short-term rates, the port- and Interest Rates: A Quantitative Appraisal" indifolio adaptations of institutions and the ac- cates that the effect was extremely small for the period 1946-59. Empirical work by David Meiselman in The tivities of traders may work to offset the Term Structure of Interest Rates, (Englewood Cliffs: changes in rates that might otherwise be Prentice-Hall, Inc., 1962) supports the expectations hypothesis as an explanation of rate structure. On the associated with an altered composition of other hand, findings of Hickman, op. cit. and J. debt. On the other hand, if speculators look- M. Culbertson, "Term Structure of Interest Rates," {Quarterly Journal of Economics, Vol. 71, November ing to the near-term future do become con- 1957, pp. 485-517) do not support the expectations vinced that a change in relative supplies will hypothesis. Conard {op. cit.) concludes that expectational theory contributes necessary elements to an in fact alter the structure of rates over the explanation of rate structure, but that it must be modishort run, they may act in that expectation fied to take account of uncertainty and of market segmentation. and thereby help bring the change about. Much empirical work remains to be done to illumi- In general, whether in practice the struc- nate the impact of changing supplies of securities of different maturities on the structure of rates, particuture of rates can be influenced much or for larly taking recent Federal Reserve and Treasury opvery long by the relative supplies of short- erations into account. It would also be desirable to have a clearer view of how time enters into market and long-dated securities depends on how adjustments; that is, if market demands adjust to offor to what extent changes in these supplies set, or partially offset, variations in relative supplies, how long a period of time is needed for the adjustare accompanied by changes in the demand ment? Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1127 some markets may be somewhat insulated tically in other major industrial countries as from others, there seems to be a fairly close well as in the United States. And these counrelationship between interest rates deter- tries also began to experience market flucmined in short- and long-term sectors of tuations in interest rates in response to central credit markets. This is brought out domestic economic developments. in the accompanying chart, which measures Over the past decade or so, financial coninterest-rate changes in units of standard de- ditions and interest rates in these and other viation so as to show each series in terms of important industrial countries have also its own characteristic pattern of fluctuations. gradually become more closely interrelated, particularly since establishment in 1949 of CYCLICAL CHANGES in short- new exchange-value relationships by many and long-term rates closely related major countries and establishment by the Units of standard deviation early 1960's of convertible currency condi- 3 tions by most of them. As a result of these - 2 developments in international payments, the flow of credit and capital between key industrial countries has become more responsive to alternative interest-rate, profit, and capital gain incentives, even though various governmental restrictions on capital movements remain in some important markets. Interest rates, therefore, have come to respond not only to saving, investment, and monetary forces within a country but also, 1952 1954 1956 1958 1960 1962 through the international flow of capital, to NOTE.—Represents differences between observed interest rates and rates calculated from trend line, divided by standard such conditions abroad. Partly because of deviation of these differences. these developments, public financial policies Short- and long-term rates on U. S. Gov- —including monetary policy—have had to ernment securities have moved closely to- give more weight to international consideragether over most of the period since 1950. tions in recent years than had been neces- Changes in credit conditions in one ma- sary earlier in the postwar era. turity sector of the Government securi- Throughout the postwar period interest ties market tend to be reflected more or less rates have generally tended to be higher in rapidly in other sectors. These changes also leading industrial countries abroad than in tend to be transmitted, though with varying the United States. In the long-term sector, force, to markets for private securities, afrates in the United States have been below fecting the availability of funds and the ease those in such countries as the United Kingwith which financing can be arranged as dom, Germany, and Canada, as shown in well as the interest cost. the following chart. Rates in Switzerland have been lower than U. S. rates in re- INTERNATIONAL CAPITAL FLOWS AND DOMESTIC INTEREST RATES cent years, but the authorities there have By the early 1950's a greater flexibility of maintained these rates through limitations financial markets had been achieved domes- on foreign borrowing. Short-term rates in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1128 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 the United States have also tended to be or the safety of funds may play a more on the low side when compared with other dominant role in the nature or direction of principal countries, particularly in the capital flow. period since the early 1950's. Direct investments. The funds invested by U. S. businesses in foreign branches, subsidiaries, or affiliates abroad are influenced INTEREST RATES in industrial countries to a major extent by the expected marginal abroad higher than in U. S. productivity and gross profitability of th£ Per cent per annum particular investment. In some instances the financing of these investments may take into account comparisons between the relative cost of credit or capital and ease of financing at home and abroad, but other considerations are often influential. U. S. companies may arrange the financing of their foreign affiliates in the light of foreign currency considerations; some firms, for instance, make it a practice for a foreign affiliate to acquire debts in the currencies in which the bulk of its receipts are denominated. Some- LONG-TERM times, also, the extent to which investments abroad are made in dollars or from local GERMANY currencies, accumulated or borrowed, is influenced by policies of the foreign government, which in some circumstances may require substantial dollar equity if local concerns are to be acquired. In situations where considerations such as the foregoing are not of major importance, differential credit conditions here and abroad may play a role in the decision 1948 1950 1952 1954 1956 1958 1960 1962 whether to finance an investment mainly NOTE.—Yields on long-term Government bonds and 3-month Treasury bills. through funds provided by the parent company directly or through borrowing abroad. Responsiveness of capital flows. Interna- They also affect decisions by companies tional capital movements take many forms with foreign branches, subsidiaries, or and are diversely motivated. Some types of affiliates as to the employment of funds accapital flows are quite responsive to relative cumulated from foreign operations, but not degrees of credit availability among coun- at the moment needed for expansion of actries and relative levels of market interest tivities.0 rates. In other cases the availability and 6 For some enterprises, however, there are tax adcost of credit are less important elements— vantages in keeping such funds abroad; as a result, the in some cases perhaps minor. In such in- interest-rate differentials considered in such instances are likely to be those obtaining between related forstances either the profitability of investment eign markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1129 NET OUTFLOWS OF PRIVATE U. S. CAPITAL duce the extent to which their domestic [In billions of dollars] enterprises have recourse to U. S. credit and capital market facilities and also to Un- make their financing facilities more ac- Long- identi- Direct cessible to residents of other countries. term Short- fied Period Total investments port- term trans- Investment flows into marketable securifolio actions1 ties are influenced in some measure, nevertheless, by the availability and cost of funds 1953-55 avg... 1.1 .7 .1 .2 3 in this country relative to those in other 1956 3.0 1.9 .6 .5 -'.6 1957 3.2 2.1 .9 .3 -.7 countries. Lower interest rates in the United 1 1 9 9 5 5 8 9 2 2 . . 8 4 1 1 . . 1 4 1. . 4 9 . . 3 1 -.4 5 States than in other major markets combined 1960 3.9 1.7 .9 1.3 .6 with a greater availability of funds will in- 1961 4.0 1.5 1.0 1.5 .6 duce foreign borrowers to seek accommodation here. At the same time domestic inves- 1 Unidentified transactions in the balance of payments; in part these are unrecorded capital flows. Minus sign indicates a net inflow. tors may find that foreign borrowers are Details may not add to totals because of rounding. willing to offer more attractive yields than Portfolio investments. Acquisitions of those prevailing on comparable domestic foreign long-term securities, sometimes re- securities. ferred to as portfolio investment, are another Investors and borrowers will look not only type of capital flow; and these are affected to the current prices and yields of securities by various institutional factors as well as —both new and existing issues—but also to by the availability and cost of credit. One prospective prices and yields. Since investors important institutional influence is the may hold securities in their portfolios for a underwriting capability and size of the U. S. short as well as a long time, and since borcapital market, which makes it considerably rowers are looking to the most advantageous easier for either domestic or foreign borrow- timing in terms of market receptiveness, exers to float large new issues here than in pectations as to future market conditions other markets. Subscriptions to such issues, will influence both investment and borrowin view of the role of the United States as an ing decisions. Investors will be influenced international financial center, are elicited in by potential capital gains or losses, and borsizable volume from foreign as well as do- rowers by their expectations as to future mestic investors. credit costs. Thus, the attractiveness of for- The fact that some other industrial coun- eign investments depends in part on current tries endeavor to regulate or limit new capi- credit conditions, but also on investor and tal flotations and bank borrowings by for- borrower evaluations of the forces, includeign obligors in their markets is another in- ing public financial policies, that affect the stitutional influence channeling interna- future direction in which security prices and tional financing to U. S. markets. Still a yields may move. further factor is that of established financing At times, international flows of portfolio relationships, particularly in the case of funds, both long- and short-term, represent Canada. Many of these institutional factors a shift from unsettled to more settled marare subject to change, of course. Some in- kets. Even though these flows may not be dustrial countries are making efforts to re- wholly or initially in response to differen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1130 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 tials in credit conditions and interest rates, possible interest return, and these funds are such considerations may have some effect prepared to flow to various markets whenon the particular direction, or volume, of ever short-term interest differentials make their flow. Their movement, in turn, will such shifts significantly more profitable after affect in varying degrees prevailing credit taxes and whenever the funds can be placed conditions and rate levels. at minimum risk. Short-term funds. Still a further kind of Interest-rate differentials and forward exinternational credit flow, which is mainly change. In taking advantage of short-term short- to intermediate-term in nature, repre- interest differentials, investors often seek to sents trade financing. This type of capital cover the risk of adverse exchange-rate movement arises mainly because of the vol- movements during the period in which funds ume of international trade, but the source are lodged abroad. They cover this risk of financing, whether domestic or foreign, through reverse transactions in forward exis often influenced by the availability and change, and the forward exchange rate in cost of credit. In 1960 and 1961, for exam- relation to the spot rate is thereby strongly ple, the increased availability of bank funds influenced by the differential in short-term in the United States at attractive interest interest rates between two major internarates, as compared with rates charged for tional markets. The difference between spot trade financing by foreign banks, contrib- and forward exchange rates, in fact, can at uted to the large increase in capital outflows times be taken as something of a measure from this country.7 With domestic loan de- of the interest-rate differential.8 mand at comparatively reduced levels dur- Use of the forward exchange market to ing much of the period, U. S. banks were cover exchange risks from short-term movewilling to lend to borrowers financing for- ments of funds has certain implications for eign trade. These borrowers often paid the actual responsiveness of capital flows to higher rates than domestic customers of interest-rate differentials and for the sensisimilar credit standing. In some instances tivity of credit conditions as between coun- U. S. banks made a deliberate effort to find tries. A substantial volume of covered shortcreditworthy foreign borrowers as an ad- term capital flows will in fact be activated junct to extending their international bank- only in situations in which the position of ing business. the forward exchange rate permits a profit- Finally, there is a category of interna- able return upon repatriation of the funds. tional credit flows, again mainly short-term, that is in fairly direct response to disparities 8 The risk of exchange fluctuation in short-term capital movements is ordinarily covered through transin credit availability and interest rates be- actions in forward exchange. Forward rates, if they tween major markets. There is always a responded only to capital movements, would tend to settle eventually at a point that would eliminate the sizable pool of short-term funds, both for- incentive for net short-term capital flows from one eign and domestic, that is seeking the best market to another. (In practice, the situation is complicated by a multiplicity of short-term rates with varying differentials.) The interest differential would, 7 In some short-term foreign bank lending in this in other words, come to be offset by the cost of forperiod, credit availability and interest rates were of ward cover. But the forward market is also used by less importance than other factors. For example, traders to cover their future commitments. Because of some lending had the purpose of providing balance of this mix of users, activity in the forward market does payments assistance to countries with which the banks not always tend to eliminate the incentive for shortconcerned maintain close banking relationships. term capital flows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1131 This means that short-term capital flows in perienced sizable inflows of capital from response to interest differentials tend gener- the United States because of the profitability ally to be self-limiting through the adjust- of investment abroad and the generally ment in the cost of forward cover, as it higher interest-rate levels in a period of comes to offset the interest differential, rapid economic growth. Although the basic rather than through complete adjustment in balance of payments position of the United relative interest rates. As a result, short- States is being gradually and steadily imterm interest differentials between markets proved, continued large outflows of credit may persist for some time, although differentials may be narrowed if market partici- HEAVY CAPITAL OUTFLOWS in recent yeors pants are willing to engage actively in un- adverse to monetary reserve position Billions of dollars covered foreign placement of funds. OUTFLOWS OF PRIVATE CAPITAL International flows of funds and domestic policies. An outflow of funds from a country with low rates to one with high rates is one of the many international developments that may have to be reconciled with efforts to maintain domestic economic activity at high levels without inflation. Out- GOLD AND DOLLAR TRANSFERS flows of credit and capital, if not offset by other elements in the payments account, may entail undue drains on reserves of gold and foreign exchange. Such drains cannot long be continued without adjustments to lliln help reduce the drain to amounts that are T consistent with longer-term monetary stability. J L 1 1 i If a country's international payments were 1955 1957 1959 1961 '62 NOTE.—Capital outflows are net of recorded foreign priyate in over-all balance—with deficits tending to capital inflows other than flows into liquid assets in the United States. "Errors and omissions" in the balance of payments alternate with surpluses over time—a large have been included with short-term capital. outflow of credit and capital induced by and capital under conditions of payments temporary influences in any particular year deficit tend to keep this country's internamight not be a very significant development. tional and domestic monetary reserve posi- But in the United States for the past several tion under pressure. years the balance of payments has been When a country's basic reserve position characterized by persistent over-all deficits. is under pressure because of such devel- Over these years foreign industrial coun- opments in the balance of payments, the tries have been able to compete effectively response of the monetary and debt managein world export markets; they have had their ment authorities will depend upon domestic trade receipts supplemented by continuing economic and financial conditions at the expenditures and grants by the U. S. Gov- time. In a period of underutilization of reernment to foster the defense and economic sources, one response might be an endeavor growth of the free world; and they have ex- to change the relative supplies of securities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1132 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 in the market. This would have as an objec- funds, both short- and long-term, provide a tive putting some upward pressure on short- means of financing temporary balance of term interest rates, which might have some payments deficits. They also provide a way influence on the most interest-sensitive of by which capital resources of the world can capital flows. At the same time, in the proc- be mobilized and transferred from couness of maintaining a general monetary situa- tries where funds are plentiful in relation favorable to the employment of addi- tion to demand to those where they are in tional domestic resources, long-term rates short supply because of demands deriving would come under downward pressure. But from rapid expansion, thus helping to finance because of complications described earlier, economic growth in many countries. The market forces operative at the time might interest-rate differentials that emerge prolimit or even counterbalance any sustained vide one indication of differentials in the effects on the relationship between short- supply and availability of funds relative to term and long-term interest rates. demand country by country. Another response open to the monetary If the money and capital markets of counauthority might be action to moderate tem- tries with convertible currencies were free porarily the availability of bank credit and of institutional and governmental restricto encourage for the time being some rise in tions inhibiting the movement of funds beinterest rates, particularly short-term rates. tween them, the level or structure of rates The resulting change in credit conditions in one country would tend to influence rates might be sufficient to keep the capital out- in other countries. Insofar as short-term inflow within tolerable bounds. Domestic terest rates are concerned, this influence needs for bank credit and monetary expan- would be limited by circumstances in which sion at the time would limit this type of the cost of forward cover against exchange response, however, and in any event such risks offset the interest differential. Other a response would have to be applied with risks, such as unsettled economic or political care so as to avoid bearing adversely on conditions, would also impede the internadomestic forces of economic advance. tional flow of capital. Changes either in relative supplies of se- Flows of capital that did occur, however, curities or in bank credit availability would would bring about interest-rate adjustment have the objective of helping to limit capital not only in the capital-losing country but outflows in a situation in which such flows also in capital-receiving countries. As funds were intensifying an adverse payments bal- flowed into the latter, their internal interest ance. As the balance of payments situation rates would tend to decline. This would reimproved, the need for applying special duce the incentive to foreign borrowing by monetary efforts to this problem would of its businessmen and governmental units and course diminish. to the placement of foreign funds in its International role of capital flows. Move- markets. ments of credit and capital among countries When international flows of credit and without undue handicaps of governmental capital are consistent with over-all payments restriction are in general an essential ele- balance, the impact of international considment in the mechanism of international ad- erations on domestic financial policies tends justment, however. International flows of to be minimized. On the other hand, when Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1133 such outflows are a factor in a persisting MONETARY POLICY AND INTEREST RATES payments imbalance, not only are they a Monetary policy attempts to provide the conditioning influence upon a country's fipublic with the cash balances and bank nancial policy, as has been mentioned, but credit necessary to sustainable growth in they also carry the threat of activating specuoutput at high levels of employment and to lative movements of funds, which could only maintenance of a stable purchasing power aggravate the international payments probfor the dollar. At the same time, the formulem. In view of this, the Treasury, through lation of monetary policy must take into its Stabilization Fund, and the Federal Reconsideration international developments as serve System have found it desirable, they impinge, directly or indirectly, on dothrough operations in the spot and forward mestic economic conditions. foreign exchange markets conducted with In attempting to reach its policy goals, the knowledge and cooperative facilities of the Federal Reserve takes actions—for excentral banks of other convertible currency ample, open market operations or changes countries, to anticipate and provide protecin discount rates or reserve requirments— tion against the threat of volatile movements that have an immediate impact on the availof speculative funds. The Treasury began ability and cost of bank reserves. These acsuch operations in early 1961 and the Fedtions influence interest rates and conditions eral Reserve in early 1962. These operations of credit availability mainly by affecting have not been intended to interfere with bank credit and the supply of money. Counmovements of credit and capital among tercyclical changes in bank credit and money countries that reflect, or are in response to, add at the margin to downward pressures basic differences in credit conditions and on interest rates during recession and to interest-rate levels among them. upward pressures in expansions.9 In a world economy in which forces of Open market operations and the securities transportation, communication, industrial market. In its day-to-day operations the Systechnology, trade, and community of intertem relies on open market operations as its est are bringing countries closer together, most sensitive instrument for affecting bank it is inevitable that policies of each country, reserves. While operations in securities of particularly in the financial area, should varying maturities may have some differenrepresent the interaction of both domestic tial effect on particular market interest rates, and external forces. In such a world, an increases or decreases in the supply of funds effective international payments system in the market resulting from the multiple based on ready interconvertibility of curexpansion or contraction of bank credit rencies contributes to the common welbased on fractional bank reserve requirefare. Under a convertible currency system, ments have a much greater impact on rates. money and credit markets, savings and in- The System is continuously buying and vestment processes, and interest levels of the selling securities in the open market as it important participant countries tend to become more closely interlinked. Monetary 9 At the same time, Federal Reserve efforts to acpolicy in these circumstances has become commodate seasonal fluctuations in the demand for obliged to adapt itself to both domestic and bank credit tend to reduce day-to-day or week-to-week variations in rates that might otherwise be associated international considerations. with seasonal swings in economic activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1134 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 accommodates seasonal demands for money Long-term markets, in contrast, are comand credit, attempts to offset cyclical eco- paratively narrow and thin, because many nomic swings, and supplies the bank reserves buyers of long-term securities tend to retain needed for long-term growth. Although the them for long periods and are not generally net change in the System's securities port- in-and-out traders for short-term gain. In folio tends to be small over any fairly short 1961, for example, the combined total of period of time, the System each year under- purchases and sales of U. S. Government takes a large gross volume of transactions securities maturing within 1 year, as rein response to seasonal and other temporary ported by principal dealers, amounted to variations in reserve availability that other- about $200 billion, excluding transactions wise would give rise to undesirable market between dealers. On the other hand, the instability. comparable total for Government securities In order to minimize the direct impact on maturing in more than 5 years was only markets of its sizable day-to-day transac- $10 billion.11 With trading in longer-term tions, much the larger part of System opera- sectors less active than in the short-term sections are effected in short-term securities, tor, market orders—particularly if they are the market for which is much broader than for large amounts—are not always executed that for longer-term issues.10 The System promptly, and discontinuities in trading acalso conducts operations in other maturities tivity can arise more frequently. In other when market developments or other circum- words, in these sectors sellers and buyers do not so readily reach mutually satisfactory stances make such operations appropriate. agreements regarding the price and amount Trading in the short end of the market is of the transaction. very active, because groups such as banks and nonfinancial businesses continually buy System operations in any maturity area and sell in response to short-run and sea- of the market necessarily affect other areas. sonal changes in their liquidity positions The operations themselves have a comparaand needs for funds. The short-term area tively small effect, but changes in the supply also receives the major share of the impact of funds to markets as banks expand (or of cyclical changes in the flow of bank re- contract) credit by a multiple of the change serves and loan demand, in the flow of funds in their reserves set in motion forces that to business from profits and depreciation influence all market sectors in some degree. allowances that are not used for operations Banks use the additional funds to make or plant expansion, and in the large hold- loans or to invest in securities. Banks tend ings of foreign governments, monetary au- to be most active in the short-end of the thorities, and private institutions of short- market, but they are also sizable participants term dollar assets. Thus, the market for in other market areas, particularly if they short-term securities is broad, and trading are large banks. is large and continuous. Changes in yield relationships in this process affect other lenders and borrowers in credit markets, whose preferences for 10 For discussion of the advantages of operations in the short-term area see R. A. Young and C. A. Yager, various market instruments shift with "The Economics of Bills Preferably" (Quarterly Journal of Economics, August 1960) and W. W. Riefler, 31 Transactions in the 1-5 year range were $40 bil- "Open Market Operations in Long-term Securities" lion, and it is believed that most of these were toward (Federal Reserve BULLETIN, November 1958). the shorter end of the range. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1135 changing returns and costs. For many lend- credit and liquidity situation and of member ers and borrowers, in other words, there is bank reserve positions. One consideration a high degree of substitutability as among is the growth of banks' total reserves in relafinancing instruments, especially in the short tion to growth trends in bank credit and the run. As market participants take advantage money supply. Another is the public's disof the most profitable areas of investment position with regard to the holding of deor borrow in the areas of least cost, changes mand deposits as compared with time and in credit availability initially having an im- savings accounts and the relative growth of pact mostly in a single area become reflected these forms of liquid assets. Banks' liquidity in all. positions and over-all conditions in credit The flexibility of borrowers, lenders, and markets, in relation to current levels of and investors in central credit markets limits the tendencies in economic activity, also have to extent to which the structure of rates can be be considered. altered through operations in one sector of In determining how open market operathe market or through buying in one sector tions will affect the potential for bank credit and selling in another. For instance, if and monetary expansion, monetary authorishort-term rates remain high, there are lim- ties also consider the amount of reserves its as to how far long-term rates can fall: member banks have obtained at their own many borrowers will come to prefer long- initiative by borrowing at the Reserve Banks term instruments and many lenders or in- or are likely to obtain at prevailing discount vestors short-term instruments, with the re- rates. In addition, the amount of excess, or sult that declines in long- relative to short- unused, reserves that they hold must be term rates will be tempered. taken into account. Relation of discount rate to market rates. The amount of Federal Reserve credit In deciding on the amount of reserves that supplied through member bank borrowing should be provided through open market at the Reserve Banks is necessarily influoperations, the Federal Reserve takes into enced by the relation between the discount account various aspects of the economy's rate and short-term market rates. For this reason, the discount rate is ordinarily kept DISCOUNT RATE administered in relation to in fairly close alignment with short-term market rates affecting cost of bank reserves market rates. This avoids giving member Per cent per annum banks either too much or too little incentive TREASURY BILLS for using a facility that is intended to meet 3-MONTH MARKET YIELD banking contingencies and temporary needs for reserve funds. Although the discount rate is administered in relation to the level and structure of market interest rates, the market rates themselves are primarily the product of the forces of demand for and supply of credit—mainly domestic but partly international in origin. For the past 2 years the discount rate has been kept unchanged at a level above 1958 1959 1960 1961 1962 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1136 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 short-term market rates. This has helped to most of the impact of the operation on rates communicate to the market the System's is through the multiple expansion or conintention, in its formulation of monetary traction of bank credit based on the change policy, of taking into account short-term in bank reserves, as has been explained, and interest rates as they affect the balance of this works itself out over a fairly short time payments position. span. The operations themselves, however, Although the discount rate has been may be undertaken gradually over a period above market rates during this period, this of time. In the case of a reserve requiresituation did not act as a brake on bank ment change, all of the impact of the credit expansion during most of the time. change theoretically would be effected With ample reserve funds made available through bank credit changes, but the imthrough open market operations, and with pact of these changes on market interest loan demand only moderate, banks gener- rates may be fairly immediate since the really had little occasion to borrow. And quirements become effective on a selected whatever temporary reserve funds they date. In view of this potentiality, open marneeded, they were able to obtain in the ket operations of an offsetting character may Federal funds market. During most of the be used to cushion the impact, thus spreadperiod the demand for reserve funds from ing out the market effects over a longer banks was moderate and not sufficient to period. bid the Federal funds rate—which is essen- Psychological factors. Because of psychotially the price of borrowing excess reserves logical factors in the market, Federal Refrom other banks—as high as the discount serve actions may have some effect on interrate. est rates in addition to, and possibly before, Changes in reserve requirements. Changes those resulting from changes in bank reserve in reserve requirements, although less flexi- positions. Such effects may occur at times ble and adaptable than open market and when System operations change the degree discount operations, have been used from of ease or restraint on bank reserve positime to time to influence bank reserve posi- tions, and the market misconstrues the extions. Such changes have generally been tent of change involved. They may also applied to situations of more than temporary occur when changes in the discount rate are significance. Reserve requirement percent- announced. The market may interpret the ages have been reduced in recession periods, change to indicate a radical shift in policy for instance, in order to make bank reserves when it reflects only a minor one—or when available simultaneously to all parts of the it simply represents a technical adjustment country. At times, changes in requirements to bring the discount rate into closer alignhave also been made to help offset sustained ment with short-term market rates and has gold flows or to accommodate structural no fundamental policy significance. Whatadjustments in the banking system. ever the immediate cause, however, interest- When reserve requirements are changed, rate movements prompted by expectations the aggregate effect on market rates is little of reserve banking actions are not likely to different from open market operations, al- be long sustained, unless accompanied by though the timing of the effect may differ. changes in basic supply and demand con- In the case of open market transactions, ditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES AND MONETARY POLICY 1137 Summation. Monetary policy formulation nomic activity varies and international credit under present-day circumstances is unavoid- conditions change. ably a joint problem of providing monetary In order to moderate cyclical swings in and credit conditions conducive to sustaineconomic activity and/or persistent imbalable expansion in the domestic economy and ances in international payments, monetary of preventing credit flows from being thempolicy action will have the effect of adding selves a cause of imbalance in the country's at the margin to upward or downward rate international payments and thus a source of pressures that reflect variations in domestic instability for its monetary reserve position. or international activity. As the economy For monetary policy to exert a constructive moves forward along its long-run path of influence towards stable prices, orderly economic growth, and balance in international development, market interest rates on the payments, market interest rates cannot help average will tend to the level that is reflecbut fluctuate in response to variations in tive of basic preferences for saving, investthe supply of and demand for funds as eco- ment, and liquidity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This joint interim report reflects the serve System in the conduct of foreign ex- Treasury-Federal Reserve policy of making change operations. available additional information on foreign This report was prepared by Charles A. exchange operations from time to time. The Coombs, Vice President in charge of the Federal Reserve Bank of New York acts as Foreign Department of the New York Reagent for both the Treasury and the Federal serve Bank. It covers the period March Open Market Committee of the Federal Re- 1961-August 1962. The resumption of foreign exchange op- rency resulting from a temporary market erations by the U. S. Treasury in March imbalance may stimulate new demand for 1961 and by the Federal Reserve System in that currency by alert traders expecting a February 1962 has been part of a coopera- rebound in the rates. tive effort by Treasuries and central banks On the other hand, when the exchange on both sides of the Atlantic to create a markets become seriously unsettled by politfirst line of defense against disorderly spec- ical or economic uncertainties, normally ulation in the foreign exchange markets. beneficial speculation may quickly become Recognizing that the dollar is the corner- transformed into a perverse, and sometimes stone of the entire international currency even sinister, force. The latter type of specsystem, this cooperative effort has mainly ulation may be motivated, on the one hand, taken the form of arrangements between either by a natural desire to protect capital the United States and other leading indus- values or, on the other hand, by the prostrial countries adapted to the special needs pect of a quick capital gain. In such periods of the countries involved. Continuous, close of market anxiety, abrupt declines in the consultation among all of the Treasuries spot or forward rate for a given currency and central banks concerned has avoided may take on a grossly exaggerated signifiany conflicts of policy or operations within cance, the exchange market may become a the group as a whole. prey of purely imaginary fears, and selling or buying pressures on the exchanges may BACKGROUND TO OPERATIONS quickly acquire cumulative force. Even mi- Under fair weather conditions, speculation nor speculative squalls may have disturbing can and does play a highly useful role in effects upon the normal flow of trade and the foreign exchange market by helping to payments, while very severe attacks have correct temporary deviations of spot and on occasion forced governments into unforward rates from the levels appropriate wanted changes of currency parities. to underlying payment trends. Thus a de- Official foreign intervention in markets. Alcline in the spot or forward rate of one cur- though foreign central banks have for many 1138 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1139 years intervened in their foreign exchange their reserves in dollars—sometimes a very markets to protect their currencies against small part; the rest are held mainly in speculative disturbances, the United States gold. If exchange intervention is underhad refrained from such operations from the taken on a large scale, such countries end of World War II until early 1961. This may acquire more dollars than they wish to difference of approach goes back to the hold; if so, they will convert their excess Bretton Woods Agreements. Under the Arti- dollars into gold. Conversely they may have cles of Agreement of the International Mon- to sell gold to acquire the dollars necesetary Fund, member countries agreed to sary for support operations. establish par values for their currencies in Role of dollar convertibility into gold. The terms of gold or the U. S. dollar and to limit willingness of foreign central banks to acfluctuations in their exchange rates to no quire and hold dollars as part of their remore than 1 per cent above or below the par serves depends on the assured convertibility value. In many cases, foreign countries have of such dollars into gold at a fixed price. As fulfilled their obligation to the International part of the Bretton Woods system, this as- Monetary Fund by purchasing or selling surance is provided by the United States, U. S. dollars against their own currencies in which undertakes to maintain a fixed par order to keep their exchange rates from value for the dollar by standing ready to rising above the "ceiling" or falling below buy or sell gold against dollars at a fixed the "floor." Foreign central banks may also price of $35 per ounce in whatever amounts operate in the exchange markets between may be requested by foreign monetary authe margins, and many central banks do so thorities. This system of defining and mainto prevent sharp movements in the rates. As taining the parity of the dollar in terms of the exchange rate moves upward (or down- gold, while the parities of other currencies ward) a country may buy (or sell) dollars are maintained by buying and selling dollars, against its currency to slow the rate move- has greatly encouraged the development of ment, or even to halt it completely at some an international gold exchange standard. point within the official margins. Such pur- Under this system the United States serves as chases and sales, by ironing out sharp fluc- banker for the dollar exchange reserves, now tuations in rates, help to maintain orderly more than $11 billion, of 82 countries conditions in the exchange markets, thereby throughout the world. facilitate the flow of trade and payments, As banker for the international currency and contribute materially to the mainte- system, the role of the United States until nance of confidence in currencies. recent years has been largely passive. Al- Foreign official intervention on the ex- though foreign central banks resisted dechanges is generally conducted through clines in their currency rates toward their purchases and sales of U. S. dollars, the prin- floors, they had no obligation or incentive cipal reserve currency. Such exchange inter- to resist similar declines in the dollar against vention results in changes in official hold- their own currencies. As the dollar came ings of dollars, increasing them when the under pressure from time to time in world demand for the foreign currency is strong exchange markets, the dollar rate therefore and reducing them when demand is weak. tended to slip to the floor. At this point for- Most major countries hold only a part of eign central banks would then fulfill their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1140 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 obligation to take the surplus supply of dol- ment announced a similar change in the lars off the market. If they wished, they guilder parity. would then convert part or all of these dol- However effective these moves may ultilars into gold. mately prove to be as a contribution to Currency crisis of 1960. This passive international balance of payments equilibstance by the United States, in which both rium, their immediate effect was a shattering blow to market confidence in the system of the rates for the dollar against foreign curfixed currency parities. All major currencies rencies and the accumulation of dollar reimmediately became labeled as candidates serves by foreign central banks were left for either revaluation or devaluation, and entirely to market forces, and to the unian unparalleled flood of speculative funds lateral decisions of foreign monetary auswept across the exchanges. thorities, gave rise to no serious problems Speculation on a revaluation of the Swiss for many years after the war. By 1960, franc became particularly intense, with the however, successive U. S. balance of payresult that more than $300 million flowed ments deficits had brought about both heavy into that country in 4 days. Most of the dolgold losses and sizable increases in our lars acquired by the Swiss National Bank dollar liabilities to foreigners. At this point, and other continental financial centers were the dollar became subject to rumors of imthe counterpart of a major speculative atpending changes in U. S. international finantack on sterling, with the Bank of England cial policy, with widespread doubts developsuffering heavy reserve losses. ing abroad as to whether the U. S. Govern- At this critical juncture, the central bank ment could and would maintain the $35 Governors attending the monthly meeting price for gold. of the Bank for International Settlements in The resultant wave of speculation against Basle announced that their central banks the dollar was effectively stemmed in early were cooperating in the exchange markets. 1961 by a Presidential pledge to maintain The scale of this cooperation in credits to the gold price, to make our entire gold rethe Bank of England reached a total of more serve available to defend the dollar, and, if than $900 million and played a vital role necessary, to draw upon the IMF as a sup- in providing a breathing space during which plementary source of reserves. Most funda- more fundamental measures could be taken mental of all, of course, was announcement by the British Government. of action to correct the balance of payments deficit, and this program has subsequently TREASURY INTERVENTION IN THE MARKET shown gradual but solid results. Although the dollar emerged relatively un- Effects of revaluation of mark and guilder. scathed from the first speculative attacks, Meanwhile, the recovery of confidence in the massive reshuffling of foreign-owned the dollar remained vulnerable to sudden funds resulted in heavy accumulations of shocks, and these were not long in coming. dollars by certain foreign central banks, with On the weekend of March 4, 1961, the the possible consequence of sizable drains German Government announced the up- upon U. S. gold reserves. Anticipations of a ward revaluation of the mark by 5 per cent. second revaluation of the German mark Shortly after that the Netherlands Govern- generated a continuing heavy flow of funds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1141 to Frankfurt, with the result that the dollar purchases of spot marks by foreigners and reserves of the German Federal Bank rose dollar borrowing by Germans, and in the to $4.1 billion by March 31 as compared process, of driving down the forward prewith its gold reserves of $3.2 billion. mium on the mark as closely as possible to Operations in German marks. The disrup- the 1 per cent level. tive effect of such speculation on the normal These forward sales of marks by the U. S. flow of German trade and payments was Treasury were undertaken under a "paralreflected in a scramble by non-Germans lel" arrangement, generously suggested by with contractual liabilities in marks to an- the German Federal Bank, which agreed to ticipate their requirements. Meanwhile Ger- supply the U. S. Treasury with marks man residents sought to hedge against con- (should they be needed), at the time the tracts payable to them in dollars or other contracts matured, at the same rate as that foreign currencies. The forward exchange at which the marks had been sold by the market could hardly cope with such an U. S. Treasury. In effect, the U. S. Treasabrupt swing in expectations, with the re- ury's forward commitments were entirely sult that the premium on the forward mark protected against any risk of loss. Forward or, viewed the other way, the discount on operations undertaken under this arrangethe forward dollar, rose to nearly 4 per ment were later supplemented by forward cent. At that exaggerated level it tended to sales by the U. S. Treasury on the basis of reinforce expectations of a further revalua- $100 million equivalent of German marks tion of the mark. obtained by the United States under the The limited availability of forward cover, $587 million German debt repayment in even at such expensive rates, diverted com- April 1961. mercial hedging demands into foreign pur- Table 1 illustrates the scope and pattern chases of spot marks to cover future mark of the Treasury's forward mark operations. contracts and German borrowing of dollars, From March 13 to the end of the month, both in New York and in the Euro-dollar the Treasury forcefully resisted the speculamarket, as a hedge against dollar receiv- tive inflow to Germany by selling over $118 ables. The resultant shift of the leads and million equivalent of marks for delivery in lags in commercial payments against the 3 months. Market demand for forward dollar and in favor of the mark created a marks then gradually declined, perhaps potentially dangerous situation. This situa- partly owing to the reassuring effect of offition became the subject of conversations on cial operations on so sizable a scale. But by Friday, March 10, 1961, among officials mid-June the outstanding forward mark of the German Federal Bank, Federal Re- commitments of the U. S. Treasury had serve Bank of New York, and U. S. Treas- risen to $340 million. ury. There emerged the decision to under- As the first of the forward contracts betake on the following Monday, March 13, gan to mature, the tide turned and the spot forward sales of marks in the N. Y. market dollar rate gradually rose off the floor to by the N. Y. Federal Reserve Bank as agent which it had been pinned for many months. of the U. S. Treasury, with the dual objec- The improvement in the spot dollar rate tive of providing an ample supply of for- was attributable in part to a market demand ward marks as an alternative to anticipatory for dollars required to pay the U. S. Treas- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1142 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 ury for the forward mark purchases pre- ble within 9 months, the U. S. Treasury viously contracted for. Coordinated inter- operations in forward marks clearly helped vention by the German Federal Bank and both the United States and Germany. The the U. S. Treasury in the spot mark market short-term capital outflow from the United also helped to strengthen the dollar rate. States was held down, and the U. S. pay- With the crisis of confidence more or less ments deficit thereby reduced, while the weathered, it seemed desirable to allow the German Federal Bank could restrain its forward premium on the mark to rise some- dollar accumulations from becoming too what, thereby increasing the cost of forward large and also prevent the German money cover and further dampening commercial market from being flooded with a heavy hedging demand. As a consequence, the volume of liquid funds. More generally, Treasury's outstanding balance of the for- the forward mark operation apparently ward mark commitments declined rapidly calmed a badly shaken exchange market, after mid-June as the daily rate of new sales which needed time and the assurance of fell far below maturing contracts. In Sep- intergovernmental cooperation to recover tember, in a market also strongly influenced confidence. by the Berlin crisis, forward sales were dis- As previously mentioned, the U. S. Treascontinued entirely as a normal flow of for- ury had acquired, in April 1961, $100 milward marks from private sources reap- lion in marks as part of a German Governpeared. By early December the Treasury's ment debt payment totaling $587 million. forward mark commitments had been fully While about half of this mark balance was liquidated. used to settle forward contracts maturing By thus offsetting a large-scale flow of in the fall of 1961, the remainder was conspeculative funds that proved to be reversi- verted into dollars in September to make TABLE 1 TREASURY FORWARD OPERATIONS IN GERMAN MARKS, MARCH 13-DECEMBER 13, 1961 [Dollar equivalent, in millions] Premium on Maturing Future New Future 3-month contracts commitments sales commitments forward mark Month not renewed (beginning (during (end of (per cent per (during of month) month) month) annum, end month) of month) March (13-31) 118.7 118.7 1.47 April 118.7 104.4 223.1 1.59 May 223.1 78.4 301.5 1.39 June 301.5 52.8 -86.5 267.8 2.21 July... 267.8 32.9 -98.1 202.6 1.45 August 202.6 12.7 -89.3 126.0 1.02 September 126.0 .3 -76.6 49.7 .88 October 49.7 -35.5 14.2 .76 November 14.2 -14.0 .2 .80 December (1-13) .2 -.2 1.00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1143 final payment to the U. S. lending agencies likelihood of a massive British Government concerned. drawing from the International Monetary The experience with the forward mark Fund which would result in a liquidation of operation had proved sufficiently encour- the short-term credits received by the Bank aging, however, to suggest that the U. S. of England from the Swiss National Bank Treasury might usefully acquire moderate and other European central banks. Accordamounts of spot marks when that currency ingly, the Swiss National Bank seemed temporarily weakened late in 1961. These likely to convert large amounts of surplus mark acquisitions by the U. S. Treasury dollar holdings into gold unless some means reached a total of approximately $55 mil- could be found to stimulate an outflow of lion equivalent and have been employed in private funds from Switzerland. several operations during the first half of The basic obstacle to such an outflow of 1962 to support the dollar rate during private funds from Switzerland came from periods of temporary pressure. These oper- the lingering fears and hopes of many priations have not only proved useful in pro- vate individuals that the Swiss franc would ducing the desired firming of the dol- somehow or other provide a safer haven lar rate but have also proved reversible. than other currencies against a wide range Later strengthening of the dollar rate has of political, military, and financial risks. permitted replenishment of earlier drafts on But it had become quite clear to both Swiss the Treasury's mark balances. and U. S. central bank officials that the hot Operations in Swiss francs. The second money inflow into Switzerland was disguismajor exchange operation initiated by the ing a significant deterioration in the basic U. S. Treasury during 1961 was in forward balance of payments of Switzerland and Swiss francs. The March 1961 revaluations that, when some recovery of confidence in of the German mark and Dutch guilder re- currency parities reappeared, a cessation sulted in a burst of speculation on a similar of this hot money inflow would result in a revaluation of the Swiss franc and a heavy strengthening of the dollar against the Swiss flow of short-term speculative funds to franc and in drains on the gold and dollar Switzerland. This influx created a serious reserves of the Swiss National Bank. Thus, problem of excessive liquidity on the Swiss the piling up of hot money in Swiss commoney market while also raising the dollar mercial banks was essentially a temporary, exchange reserves of the Swiss National reversible phenomenon that might properly Bank far above traditional levels. be dealt with by compensatory action by the These dollar acquisitions by the Swiss two central banks concerned. National Bank could have been converted After extensive discussions among offiimmediately into gold by purchases from cials of the U. S. Treasury, the N. Y. Fedthe U. S. Treasury. But in the interests of eral Reserve Bank, and the Swiss National international financial cooperation, the Bank, it appeared that a useful start could Swiss National Bank refrained from effect- be made in offsetting such temporary ining such conversions in order to loan back flows of hot money by providing adequate to the Bank of England a large proportion incentives to the re-export of private investof the dollar inflow to Switzerland. ment funds from Switzerland on a hedged, There was in near prospect, however, the or covered, basis. Partly because of specula- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1144 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 tive fears or hopes of a revaluation of the lion of maturing contracts were paid off by Swiss franc, the premium on the forward the Treasury rather than renewed). This Swiss franc had risen to roughly 1% per happened largely because Swiss commercial cent at which levels it was prohibitively banks wanted to increase their franc assets costly to cover short-term placements in for year-end window-dressing. New con- New York, London, or other financial mar- tracts of $9 million equivalent were underkets abroad. taken at the end of January 1962. And in Consequently, in July 1961 the U. S. January and February all contracts were Treasury agreed to supply through the rolled over at maturity, so that by the end agency of the Swiss National Bank forward of February the Treasury's outstanding for- Swiss francs to the market at rates suffi- ward franc market commitments amounted ciently attractive to induce the Swiss com- to $146.5 million equivalent. mercial banks and other short-term inves- In February 1962 the Swiss franc began tors to move funds into the dollar market. to weaken, as had been expected with Swit- These forward operations were begun in a zerland's large current-account deficit and limited, experimental fashion on the basis of the tapering off of the short-term capital relatively small Swiss franc balances pre- inflow. In these circumstances, the Swiss viously acquired by the U. S. Treasury. National Bank had to supply dollars to the With the emergence of the Berlin crisis market and, by the end of May, the N. Y. in August 1961, however, the problem was Federal Reserve Bank as agent of the U. S. complicated by a renewed flow of hot money Treasury had sold $139 million to the Swiss to Switzerland, and the Treasury accord- National Bank. ingly enlarged the scope of its forward op- If the U. S. Treasury had elected to meet erations. To provide a broader base for these dollar requirements of the Swiss Nasuch operations, the Swiss National Bank tional Bank by accepting Swiss francs in agreed to provide a sizable line of credit in payment, the resultant increase in the Treas- Swiss francs to the U. S. Treasury which ury's franc balances would have been could be drawn upon by issuance of 3- adequate to liquidate nearly all of the formonth certificates of indebtedness carrying ward Swiss franc market contracts outa rate of 1V4 per cent and denominated in standing. But a rapid liquidation of these Swiss francs. As the Treasury's forward forward contracts would have tended to commitments rose rapidly, it availed itself recreate too much liquidity on the Swiss of its drawing rights to the extent of 200 money market. Accordingly, the Swiss Namillion Swiss francs ($46 million equiva- tional Bank suggested that the U. S. Treaslent) in October 1961. By the end of No- ury might accept gold rather than Swiss vember the Treasury's forward sales had francs in payment of part of the Swiss dollar reached $152.5 million equivalent, which requirements. Swiss gold sales to the U. S. meant a roughly corresponding reduction in Treasury amounted to $74 million. The the dollar reserves of the Swiss National remaining $65 million required by the Swiss Bank and in Swiss gold purchases from were paid for in Swiss francs. the U. S. Treasury. The Swiss franc balances were gradually During December the Treasury's forward used to liquidate $55 million of maturing commitments declined somewhat ($15 mil- forward contracts, which by the end of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1145 May 1962 were less than $91.5 million Netherlands and deterred any covered outequivalent outstanding. The $46 million flow. certificates of indebtedness issued to the In this context, early in May the U. S. Swiss National Bank in the autumn of 1961 and Netherlands authorities discussed were also fully liquidated, as the Treasury whether the United States should intervene found its forward position could be sus- in the forward guilder market to reduce the tained on a smaller cash reserve. In effect, guilder premium to levels more consistent the program of forward sales of Swiss francs, with interest rates on dollar and guilder initiated by the U. S. Treasury in July 1961, investments. These discussions between the proved to be a self-liquidating operation, U. S. and Netherlands authorities produced as the swing developing in the Swiss pay- their first tangible results in July, when the ments position would have permitted nearly Netherlands Bank, whose dollar reserves complete liquidation of the forward opera- were to be depleted by a large British IMF tion within a matter of 10 months. And the guilder drawing (for conversion into dolforward operations helped both the United lars) in August, agreed to sell spot guilders States and Switzerland by damping U. S. to the United States and to provide for U. S. gold losses from speculative money move- investment of these guilders in Dutch ments while relieving the Swiss market of Treasury bills. It was agreed that it would too much liquidity. be useful for the Treasury to acquire mod- Unfortunately the pendulum began to est guilder balances for possible use in exswing back. During the latter part of May change operations in the future. Accord- 1962, capital funds again flowed to Switzer- ingly, the Netherlands Bank sold $15 milland in response to speculation caused by lion equivalent of guilders to the U. S. Treasthe Canadian devaluation and by the subse- ury during September. quent sharp decline of the New York stock As expectations of another revaluation market. But meanwhile the financial re- of the guilder withered away, the forward sources and market techniques available to guilder premium declined to more normal the U. S. Government had been strongly levels. But towards the end of 1961, rumors reinforced by the entrance of the Federal questioning the stability of exchange pari- Reserve System into the foreign exchange ties and the beginning of continental comfield. As subsequently outlined, a coordi- mercial bank repatriations of funds for nated program involving the U. S. Treasury, year-end window-dressing operations inthe Federal Reserve System, and the Swiss duced a renewed rise in both spot and for- National Bank succeeded in minimizing the ward guilder rates. By December 20 the impact of potentially dangerous speculative premium on the 3-month forward guilder pressures. was again over 2 per cent (though moving Operations in Netherlands guilders. After erratically) and was clearly out of line with the revaluation of the Netherlands guilder comparative interest rates. on March 7, 1961, the premium on the Although the premium declined some- 3-month forward guilder rose to well over what after the turn of the year, the U. S. 2 per cent and remained there until the end Treasury concluded that it might usefully of April. The premium encouraged a fur- test the market by a small offering of forther inflow of short-term funds into the ward guilders which might succeed in nudg- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1146 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 ing the rate down to a more normal level. Treasury a $150 million line of credit in lire After further negotiations it was agreed that to support such spot as well as forward opthe Netherlands Bank would sell forward erations in lire as might appear desirable. guilders in the market for the Treasury's The Treasury made the first drawing on account. this line of credit on January 26, 1962, The sales were first made in January when it issued a 3-month certificate of in- 1962 and reached $20.8 million equivalent debtedness for the equivalent of $25 million by early February. As the availability of in lire. It made a second drawing of $50 forward cover stimulated Netherlands in- million in March, and a third drawing of vestment demand for short-term placements $75 million in August. in New York and other financial markets, Both spot and forward operations by the the spot guilder rate weakened to about par U. S. Treasury in lire are continuing and and, in the process, enabled the U. S. Treashave lessened the accumulation of dollar ury to acquire more spot guilders from the reserves during the recent seasonal inflows Netherlands Bank against dollars. to Italy. The forward operations were terminated on February 13 as the Netherlands money BEGINNING OF FEDERAL RESERVE market had become less liquid, and the OPERATIONS U. S. Treasury later liquidated each contract at maturity. The remaining guilder While the exchange operations undertaken balances of the U. S. Treasury were used by the Treasury with the limited resources to intervene occasionally in the market to of its Stabilization Fund had yielded enslow down a strong rise of the guilder spot couraging results, Federal Reserve officials rate during the spring months as a result —with the full concurrence of the Treasury of a tightening of liquidity in the Nether- —considered whether it might not also be lands financial market. Also a sizable for- desirable to reactivate Federal Reserve exeign exchange inflow was expected as a change operations. After many months result of the Philips Lamp stock issue. study, the Federal Open Market Committee Operations in Italian lire. A continuing on February 13, 1962, authorized open surplus in Italy's balance of payments has market transactions in foreign currencies.1 made the Italian lira one of the strongest Currencies involved. Under this authorizacontinental currencies. From mid-April tion, the Special Manager of the Open Mar- 1961 until the present the lira has usually ket Account for foreign currency operations remained at its upper limit against the received Committee approval to inaugurate dollar. operations by purchasing from the Stabiliza- In these circumstances, in late 1961 distion Fund at market rates the following forcussions began on the possibility of U. S. eign currencies in order to open accounts Treasury operations in the lira market. In with the central banks responsible for these January 1962 it was agreed that the Treascurrencies and develop procedures for future ury would take over a substantial block of operations (Table 2). forward lire contracts from the Italian foreign exchange office and that the Bank of 1 The text of the authorization appears in the Ap- Italy would simultaneously extend to the pendix, pp. 1150-53. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1147 TABLE 2 ran throughout all of the agreements. They may be summarized as follows. FEDERAL RESERVE PURCHASES OF FOREIGN CURRENCIES FROM THE U.S. TREASURY 1. A swap constitutes a reciprocal credit facility under which a central bank agrees Dollar equivalent Currency to exchange on request its own currency for (in millions) the currency of the other party up to a German marks 32.0 maximum amount over a limited period of Swiss francs .5 time, such as 3 months or 6 months. Netherlands guilders .5 Italian lire .5 2. If such a standby swap between the Federal Reserve and the Bank of England, Accounts had previously been opened, and for example, were to be drawn upon by the maintained for some years with more or Federal Reserve, the Federal Reserve would less nominal balances, with the central banks credit the dollar account of the Bank of of Canada, Great Britain, and France. England with $50 million at a rate of, say With the authorization of the Committee, $2.80 to the pound while obtaining in exthe Special Manager proceeded to nego- change a credit on the books of the Bank tiate a series of reciprocal credit, or swap, of England of about £18 million. Both facilities with seven foreign central banks parties would agree to reverse the transacand with the Bank for International Settle- tion on a specified date, say, within 3 ments. The amounts and dates of these swap months, at the same rate of exchange, thus arrangements are shown in Table 3. providing each with forward cover against Mechanics of swap arrangements. The de- the remote risk of a devaluation of either tails of the swap arrangements varied some- currency. what from agreement to agreement, reflect- 3. The foreign currency obtained by each ing differing institutional arrangements and party as a result of such cross credits to operational procedures among the central each other's accounts would, unless disbanks. However, certain general principles bursed in exchange operations, be invested TABLE 3 FEDERAL RESERVE RECIPROCAL CURRENCY AGREEMENTS Amount Date (of Term Other party to agreement (in millions original (in of dollars) agreement) months) 1962 Bank of France 50 March 1 3 Bank of England 50 May 31 3 Netherlands Bank . . 50 June 14 3 National Bank of Belgium . . . 50 June 20 6 Bank of Canada .. .... . . 250 June 2 26 3 Bank for International Settlements * . . 100 July 16 3 Swiss National Bank.. .... 100 July 16 3 German Federal Bank 50 August 2 3 Total for all banks 700 1 In Swiss francs. 2 Announced on Sunday, June 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1148 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 in a time deposit or other investment instru- a speculative flow of hot money to Switzerment, earning an identical rate of interest land in June and early July of 1962. Simiof, say, 2 per cent and subject to call on 2 larly, a standby swap with the Netherlands days' notice. Bank has been actively utilized to mop up 4. After consultation with the other, each temporary flows of funds to the Netherlands. party would be free to draw upon the for- Finally, the $50 million swap with the Gereign currency acquired under the swap to man Federal Bank was negotiated as a conduct spot transactions or meet forward standby facility and no drawings have been exchange obligations. effected to date. 5. Each swap arrangement is renewable Swiss francs. As previously noted, the upon agreement of both parties. standby swap arrangements of $100 million Use of swaps. Use of these various swap each negotiated in mid-July by the Federal arrangements has followed a varied pattern. Reserve with the Swiss National Bank and The $250 million swap with the Bank of the Bank for International Settlements an- Canada was immediately drawn upon ticipated an early drawing on these swaps through a cross-crediting of Canadian and to mop up surplus dollars taken in by the U. S. dollars as part of a Canadian stabiliza- Swiss National Bank. Under these swap artion program. The Canadian Government rangements, the Federal Reserve drew, also received financial assistance from the during July and August, $60 million of International Monetary Fund, the Export- Swiss francs under its swap arrangement Import Bank, and the Bank of England. with the Bank for International Settlements In the swaps with the Bank of France, and $50 million equivalent in Swiss francs the Bank of England, and the National under the swap with the Swiss National Bank of Belgium, in amounts of $50 mil- Bank. The total proceeds of $110 million lion each, the standby facility was imme- in Swiss francs were immediately employed diately drawn upon by the Federal Reserve to buy back an equivalent amount of dollars in order to test communications, invest- on the books of the Swiss National Bank. ment procedures, and other operational ar- During the same period, the U. S. Treasrangements. In both the French and British ury enlarged somewhat its forward operaswaps, no occasion has arisen for either tions in Swiss francs and thereby absorbed party to use the proceeds of the swap in ex- an additional amount of dollars held by the change operations. Consequently, after one Swiss National Bank. As a result of these renewal on June 1, the swap with the Bank operations, the dollar holdings of the Swiss of France was liquidated in advance of National Bank were substantially reduced, maturity on August 2 and placed on a and the Bank purchased no more than $50 standby basis. The swap with the Bank of million of gold from the United States dur- England, which matured on August 30, was ing a period of intense speculation following similarly placed on a standby basis. the June decline in the New York and other The swaps of $100 million each with the stock exchanges. Swiss National Bank and the Bank for Inter- Federal Reserve drawings under the national Settlements were negotiated as Swiss franc swaps also indirectly served to standby facilities but with anticipation of absorb excess liquidity on the Swiss money an early necessity for their use to mop up market since the Swiss francs supplied under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1149 the swap by the Bank for International Set- in a broad program of international finantlements came from deposits of Swiss com- cial cooperation designed to reinforce the mercial banks. The Swiss National Bank Canadian Government's efforts to defend similarly absorbed Swiss francs from the the Canadian dollar. Between January 1 and market by various forward operations in- June 25, about $900 million, or 44 per cent volving investments by Swiss commercial of Canada's gold and dollar reserves of banks in U. S. Treasury bills on a covered $2,056 million were swept away by a mountbasis. Subsequently, the speculative fever ing balance of payments deficit which threatsubsided, the dollar strengthened signifi- ened to force the Canadian dollar off its cantly against the Swiss franc, and the Fed- newly established parity. If this had haperal Reserve has already begun to acquire pened, it would have been an extremely Swiss franc balances in anticipation of an serious setback, not only to Canada but to eventual liquidation of the drawing under the entire international financial system of these two swaps. fixed parities, and might easily have touched Netherlands guilders and Belgian francs. off a worldwide burst of speculation against Similarly, a heavy influx of funds into the other currencies, including the U. S. dollar. Netherlands following the stock market de- In this atmosphere of emergency, a comclines in June was absorbed by drawings bined program of $1,050 million was put upon the Federal Reserve swap with the together within 4 days. This included a $300 Netherlands Bank, combined with a re- million Canadian drawing upon the Fund, sumption of Treasury forward operations a $250 million swap between the Federal in Dutch guilders. Sizable foreign payments Reserve and the Bank of Canada, a $100 for certain special purposes by the Nether- million credit to the Bank of Canada from lands have since reduced the dollar holdings the Bank of England, and a $400 million of the Netherlands Bank and thereby en- standby credit to the Canadian Government abled the Federal Reserve to completely by the Export-Import Bank. Announcement repay drawings under the swap, which has of financial assistance on this massive scale, now reverted to a standby facility. coupled with a Canadian Government an- Here again, U. S. Government exchange nouncement of fiscal and other measures operations have succeeded in dealing with of restraint, immediately broke the speculawhat proved to be a reversible flow of funds tive wave. Between June 25 and the end and, as a result, the Netherlands Bank re- of August, Canada recovered more than frained entirely from purchases of gold from $500 million of its earlier reserve losses. the United States during this difficult period. Once again, the potentialities of central Intervention on a small scale in Belgian bank and intergovernmental financial cofrancs by drafts upon the swap with the operation in defending currency parities National Bank of Belgium has served a simi- against essentially reversible flows of specular purpose, with subsequent repurchases of lative funds was demonstrated. Belgian francs by the Federal Reserve as The great bulk of the exchange operathe dollar strengthened. tions undertaken by the Federal Reserve Canadian dollars. The $250 million Fed- for its own account have involved transeral Reserve swap with the Bank of Canada actions directly with foreign central banks, on June 25, 1962, played an important role rather than in the exchange market. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1150 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 foreign central banks have continued their change Trading Desk in the Foreign Depolicy of active direct participation in the partment of the Federal Reserve Bank of market, and their activity has been supple- New York provides a full and detailed remented from time to time by appropriate port over a Treasury and Federal Reserve Treasury operations. The Federal Reserve telephone conference circuit, of exchange has not thus far undertaken any forward rates, market conditions, and operations unoperations in the exchange markets for its dertaken during the day by both the Federal own account. Spot operations in support of Reserve and the Treasury Stabilization the dollar in the markets have so far been Fund. The very fact that the Special Manlimited to moderate sales of German marks, ager of the System Account is an officer of sometimes accompanied by similar sales of the Federal Reserve Bank of New York which also conducts exchange operations on marks by the Treasury. These transactions behalf of the Treasury eliminates, insofar as have proved fully reversible, with both the is humanly possible, any risk of an inadvert- Federal Reserve and Treasury subsequently ent clash of operations by the two agencies replenishing their mark holdings as the doland greatly facilitates the task of insuring a lar strengthened. coordination of both Federal Reserve and Treasury operations with the foreign cen- COORDINATION OF TREASURY AND tral banks concerned. FEDERAL RESERVE EXCHANGE OPERATIONS With both agencies pursuing identical Treasury and Federal Reserve exchange policy objectives and employing a single operations are continuously coordinated by instrument of operations, it has proved posfrequent telephone communications each sible during recent months to carry out an day between Treasury and Federal Reserve effective meshing of Federal Reserve and officials concerned with market operations. Treasury operations in several European At 2:30 p.m. each day the Foreign Ex- currencies. APPENDIX AUTHORIZATION REGARDING OPEN MARKET TRANSACTIONS IN FOREIGN CURRENCIES Pursuant to Section 12A of the Federal I. ROLE OF FEDERAL RESERVE BANK OF NEW YORK Reserve Act and in accordance with Section 214.5 of Regulation N (as amended) of The New York Bank shall execute all transthe Board of Governors of the Federal Re- actions pursuant to this authorization (hereserve System, the Federal Open Market after sometimes referred to as transactions Committee takes the following action gov- in foreign currencies) for the System Open erning open market operations incident to Market Account, as defined in the Regulathe opening and maintenance by the Federal tion of the Federal Open Market Committee. Reserve Bank of New York (hereafter H. BASIC PURPOSES OF OPERATIONS sometimes referred to as the New York Bank) of accounts with foreign central The basic purposes of System operations in banks. and holdings of foreign currencies are: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1151 (1) To help safeguard the value of made through the International Monethe dollar in international exchange tary Fund; and markets; (4) In the long run, to provide a (2) To aid in making the existing means whereby reciprocal holdings of system of international payments more foreign currencies may contribute to efficient and in avoiding disorderly con- meeting needs for international liquidditions in exchange markets; ity as required in terms of an expand- (3) To further monetary coopera- ing world economy. tion with central banks of other countries maintaining convertible curren- IV. ARRANGEMENTS WITH FOREIGN CENTRAL BANKS cies, with the International Monetary Fund, and with other international pay- In making operating arrangements with ments institutions; foreign central banks on System holdings of (4) Together with these banks and foreign currencies, the New York Bank institutions, to help moderate tempo- shall not commit itself to maintain any sperary imbalances in international pay- cific balance, unless authorized by the Fedments that may adversely affect mone- eral Open Market Committee. tary reserve positions; and The Bank shall instruct foreign central (5) In the long run, to make pos- banks regarding the investment of such sible growth in the liquid assets avail- holdings in excess of minimum working able to international money markets in balances in accordance with Section 14 (e) accordance with the needs of an exof the Federal Reserve Act. panding world economy. The Bank shall consult with foreign central banks on coordination of exchange m. SPECIFIC AIMS OF OPERATIONS operations. Within the basic purposes set forth in Sec- Any agreements or understandings contion II, the transactions shall be conducted cerning the administration of the accounts with a view to the following specific aims: maintained by the New York Bank with the (1) To offset or compensate, when central banks designated by the Board of appropriate, the effects on U. S. gold Governors under Section 214.5 of Regulareserves or dollar liabilities of those tion N (as amended) are to be referred for fluctuations in the international flow of review and approval to the Committee, subpayments to or from the United States ject to the provision of Section VIII., parathat are deemed to reflect temporary graph 1, below. disequilibrating forces or transitional market unsettlement; V. AUTHORIZED CURRENCIES (2) To temper and smooth out abrupt changes in spot exchange rates The New York Bank is authorized to conand moderate forward premiums and duct transactions for System Account in discounts judged to be disequilibrating; such currencies and within the limits that the (3) To supplement international Federal Open Market Committee may from exchange arrangements such as those time to time specify. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1152 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 VI. METHODS OF ACQUIRING AND ceding paragraph shall be promptly reported SELLING FOREIGN CURRENCIES to the Committee. The Committee authorizes the Chairman, The New York Bank is authorized to purand in his absence the Vice Chairman of chase and sell foreign currencies in the form the Committee, and in the absence of both, of cable transfers through spot or forward the Vice Chairman of the Board of Govtransactions on the open market at home ernors : and abroad, including transactions with the Stabilization Fund of the Secretary of the (1) With the approval of the Com- Treasury established by Section 10 of the mittee, to enter into any needed agree- Gold Reserve Act of 1934 and with foreign ment or understanding with the Secremonetary authorities. tary of the Treasury about the division of responsibility for foreign currency Unless the Bank is otherwise authorized, operations between the System and the all transactions shall be at prevailing market Secretary; rates. (2) To keep the Secretary of the Treasury fully advised concerning Sys- VII. PARTICIPATION OF FEDERAL RESERVE BANKS tem foreign currency operations, and to consult with the Secretary on such All Federal Reserve banks shall participate policy matters as may relate to the in the foreign currency operations for Sys- Secretary's responsibilities; tem Account in accordance with paragraph (3) From time to time, to transmit 3 G (1) of the Board of Governors' Stateappropriate reports and information to ment of Procedure with Respect to Foreign the National Advisory Council on In- Relationships of Federal Reserve Banks ternational Monetary and Financial dated January 1, 1944. Problems. Vm. ADMINISTRATIVE PROCEDURES IX. SPECIAL MANAGER OF SYSTEM OPEN MARKET ACCOUNT The Federal Open Market Committee authorizes a Subcommittee consisting of the A Special Manager of the Open Market Chairman and the Vice Chairman of the Account for foreign currency operations Committee and the Vice Chairman of the shall be selected in accordance with the Board of Governors (or in the absence of established procedures of the Federal Open the Chairman or of the Vice Chairman of Market Committee for the selection of the the Board of Governors the members of the Manager of the System Open Market Ac- Board designated by the Chairman as alter- count. nates, and in the absence of the Vice Chair- The Special Manager shall direct that man of the Committee his alternate) to give all transactions in foreign currencies and instructions to the Special Manager, within the amounts of all holdings in each authorthe guidelines issued by the Committee, in ized foreign currency be reported daily to cases in which it is necessary to reach a de- designated staff officials of the Committee, cision on operations before the Committee and shall regularly consult with the desigcan be consulted. nated staff officials of the Committee on All actions authorized under the pre- current tendencies in the flow of interna- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1153 tional payments and on current develop- mary of outstanding unmatured contracts ments in foreign exchange markets. in foreign currencies. The Special Manager and the designated staff officials of the Committee shall arrange X. TRANSMITTAL OF INFORMATION TO TREASURY DEPARTMENT for the prompt transmittal to the Committee of all statistical and other information re- The staff officials of the Federal Open Marlating to the transactions in and the amounts ket Committee shall transmit all pertinent of holdings of foreign currencies for review information on System foreign currency by the Committee as to conformity with its transactions to designated officials of the instructions. Treasury Department. The Special Manager shall include in his XI. AMENDMENT OF AUTHORIZATION reports to the Committee a statement of bank balances and investments payable in The Federal Open Market Committee may foreign currencies, a statement of net profit at any time amend or rescind this authoror loss on transactions to date, and a sum- ization. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Foreign Branches of National Banks $30,000,000 to $60,000,000, the aggregate amount which may be expended for such build- By act of Congress approved August 15, 1962 ings. Text of the act is as follows: (Public Law 87-588), an additional paragraph AN ACT was added to Section 25 of the Federal Reserve Act (12 U.S.C. 601 et seq.), authorizing the Board of To amend Section 10 and Section 3 of the Federal Governors of the Federal Reserve System, by Reserve Act, and for other purposes. regulation, to permit national bank branches in Be it enacted by the Senate and House of Repreforeign countries to exercise such further powers, sentatives of the United States of America in Congress with certain exceptions, as may be usual in con- assembled, That the ninth paragraph of Section 10 of the Federal Reserve Act, as amended (U.S.C, Title nection with the transaction of the business of 12, Sec. 522), is amended by striking out $30,000,000" banking in the places where such branches transact and inserting "$60,000,000." SEC. 2. Section 3 of the Federal Reserve Act, as business. The text of the act is as follows: amended (U.S.C, title 12, Sec. 521), is hereby further amended by adding at the end thereof the AN ACT following paragraph: "No Federal Reserve bank shall have authority To improve the usefulness of national bank branches hereafter to enter into any contract or contracts for in foreign countries. the erection of any branch bank building of any kind or character or to authorize the erection of any such Be it enacted by the Senate and House of Reprebuilding, except with the approval of the Board of sentatives of the United States of America in Congress Governors of the Federal Reserve System." assembled, That Section 25 of the Federal Reserve Act, as amended, is amended by adding the following new Approved August 31, 1962. paragraph at the end thereof: "Regulations issued by the Board of Governors of Termination of Reserve City Designations the Federal Reserve System under this section, in addition to regulating powers which a foreign branch may Pursuant to the Board's Rule for Classification exercise under other provisions of law, may authorize such a foreign branch, subject to such conditions and of Reserve Cities, as recently amended (1962 requirements as such regulations may prescribe, to BULLETIN 975), the reserve city designations of exercise such further powers as may be usual in con- Topeka and Wichita, Kansas, were terminated, nection with the transaction of the business of banking in the places where such foreign branch shall transact effective August 23, 1962, and that of Kansas business. Such regulations shall not authorize a for- City, Kansas, was terminated, effective September eign branch to engage in the general business of producing, distributing, buying or selling goods, wares, 6, 1962. These actions by the Board are codified or merchandise; nor, except to such limited extent as as §§204.54 and 204.55 of Title 12, Part 204, the Board may deem to be necessary with respect to Code of Federal Regulations, reading as follows: securities issued by any 'foreign state' as defined in Section 25(b) of this Act, shall such regulations au- § 204.54. Termination of designations of reserve thorize a foreign branch to engage or participate, directly or indirectly, in the business of underwriting, cities. selling, or distributing securities." In accordance with paragraph (e) of § 204.51, as Approved August 15, 1962. revised effective July 28, 1962, member banks in Topeka, Kansas, and Wichita, Kansas, have submitted written requests for the termination of the designa- Federal Reserve Branch Bank Buildings tions of such cities as reserve cities, and, acting pursuant to such paragraph (e) the Board of Governors By act of Congress, approved August 31, 1962 has granted such requests. Accordingly, the designations of Topeka, Kansas, and Wichita, Kansas, as (Public Law 87-622), Sections 3 and 10 of the reserve cities are hereby terminated effective August Federal Reserve Act (12 U.S.C. 521, 522) were 23, 1962. amended to require the approval of the Board of §204.55. Termination of Kansas City, Kansas, Governors of the Federal Reserve System before a designation as reserve city. Federal Reserve Bank contracts for the erection In accordance with paragraph (e) of § 204.51, as of a branch bank building, and to increase from revised effective July 28, 1962, member banks in 1154 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1155 Kansas City, Kansas, have submitted written requests Dated at Washington, D. C, this 17th day of for the termination of the designation of such city as August, 1962. a reserve city, and, acting pursuant to such paragraph O) of § 204.51, the Board of Governor has granted By order of the Board of Governors. such request. Accordingly, the designation of Kansas Voting for this action: Chairman Martin, and Gov- City, Kansas, as a reserve city is hereby terminated ernors Balderston, Mills, Robertson, Shepardson, and effective September 6, 1962. King. Absent and not voting: Governor Mitchell. Orders Under Bank Merger Act (Signed) KENNETH A. KENYON, Assistant Secretary. The Board of Governors of the Federal Reserve [SEAL] System has issued the following Orders and Statements with respect to applications for approval of STATEMENT the merger or acquisition of assets of certain The Connecticut Bank and Trust Company, banks: Hartford, Connecticut ("Connecticut Bank"), with deposits of approximately $441 million, a THE CONNECTICUT BANK AND TRUST State member bank, has applied, pursuant to the COMPANY, HARTFORD, CONNECTICUT Bank Merger Act (12 U.S.C. 1828(c)), for the Board's prior approval of the merger of that bank In the matter of the application of The Connectand The Wallingford Bank and Trust Company, icut Bank and Trust Company for approval of Wallingford, Connecticut ("Wallingford Bank"), merger with The Wallingford Bank and Trust with deposits of approximately $8.6 million. Un- Company. der the application and Plan of Merger the two banks would emerge under the charter and title ORDER APPROVING MERGER OF BANKS of Connecticut Bank, and as an incident to the There has come before the Board of Governors, merger, Connecticut Bank would operate a branch pursuant to the Bank Merger Act of 1960 (12 at the location of Wallingford Bank. This would U.S.C. 1828(c)), an application by The Connect- increase from 30 to 31 the approved branches of icut Bank and Trust Company, Hartford, Con- Connecticut Bank. necticut, a member bank of the Federal Reserve Under the Act, the Board is required to con- System, for the Board's prior approval of the sider (1) the financial history and condition of merger of that bank and The Wallingford Bank each of the banks involved, (2) the adequacy of and Trust Company, Wallingford, Connecticut, its capital structure, (3) its future earnings prosunder the charter and title of the former and, as pects, (4) the general character of its managean incident to the merger, a branch would be ment, (5) whether its corporate powers are conoperated at the location of The Wallingford Bank sistent with the purposes of 12 U.S.C, Ch. 16 and Trust Company. Notice of the proposed mer- (the Federal Deposit Insurance Act), (6) the ger, in form approved by the Board, has been convenience and needs of the community to be published pursuant to said Act. served, and (7) the effect of the transaction on Upon consideration of all relevant material in competition (including any tendency toward mothe light of the factors set forth in said Act, in- nopoly). The Board may not approve the transcluding reports furnished by the Comptroller of action unless, after considering all these factors, the Currency, the Federal Deposit Insurance Cor- it finds the transaction to be in the public interest. poration, and the Department of Justice on the Banking factors. The financial condition and competitive factors involved in the proposed capital structure of each of the banks are satismerger, factory, as would be true of the resulting bank. IT IS HEREBY ORDERED, for the reasons set forth The earnings prospects of the resulting bank are in the Board's Statement of this date, that said favorable and its management would be compeapplication be and hereby is approved, provided tent. that said merger shall not be consummated (a) No inconsistency with the purposes of 12 within seven calendar days after the date of this U.S.C, Ch. 16, is indicated. Order or (b) later than three months after said Convenience and needs of the communities. date. The main office of Connecticut Bank, which oper- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1156 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 ates 29 branches and has one additional branch bank's nearest branches in Meriden, which has a approved but not yet operating, is located in Hart- population of approximately 52,000 and which is ford which is the capital and largest city in Con- also located in New Haven County. There are no necticut (population about 162,000). The service banking facilities between Wallingford and Meriarea of Connecticut Bank has an estimated popu- den. Wallingford Bank's primary service area is lation of 700,000. The economy of the service almost encircled by other communities within a area is supported primarily by diversified manu- 5 to 7 mile range and each of these communities facturing. Farming is also a significant economic has offices or branches of banks many times the factor. There are located in Hartford the home size of Wallingford Bank. offices of about 50 insurance companies. The proposed merger should have no significant Wallingford (population about 30,000), in New effect on other banks in the primary service area Haven County, (population about 660,000) is lo- of Connecticut Bank. In the Wallingford area cated some 23 miles south of Hartford. The town some increase in competition should result, since is largely industrialized, having 62 manufacturing Connecticut Bank would become a competitor establishments employing about 5,600 persons. with the Wallingford branch of Union and New Since Connecticut law prohibits the establish- Haven Trust Company (local deposits of approximent by a commercial bank of a de novo branch mately $11 million) and with Dime Savings Bank in another city in which an independent commer- in Wallingford (deposits of approximately $16 cial bank has its head office, Wallingford Bank million). As previously indicated, the proposed is the only commercial bank which may legally merger would permit the further expansion of establish branches in the city. The proposed mer- banking facilities in Wallingford, thus providing ger would permit the further expansion of banking additional competition for the banks which presfacilities which should increase competition and ently have offices in the area. Only slight competicontribute materially to the growth of the com- tion between Connecticut Bank and Wallingford munity. Bank would be eliminated. The majority of Wallingford Bank's loans are Summary and conclusion. The proposed merger in mortgages and, as a result of heavy requests would provide broader and more convenient bankfor such credit, it originates, sells and services ing services and facilities needed in the Wallingmortgages. The proposed merger would help meet ford area to meet the demands generated by subthe demand for mortgage and other types of credit stantial growth both in population and industry. as well, and would provide an element of conveni- The transaction would eliminate no competition ence not only in this respect but in other banking except the small amount now existing between services, including the services of a much larger Connecticut Bank and Wallingford Bank, but at trust department which would replace the rela- the same time should result in an increase in the tively inactive trust department of Wallingford over-all competition among the banking offices Bank. now operating in the Wallingford area. Competition. Connecticut Bank is the second Accordingly the Board finds the proposed merlargest financial institution in the State. Ninety ger to be in the public interest. per cent of its total deposits originate in the three counties of Hartford, Tolland and Windham which STATE-PLANTERS BANK OF COMMERCE are located in the approximate northeastern quar- AND TRUSTS, RICHMOND, VIRGINIA ter of the State and constitute its primary service area. Connecticut Bank has no branch offices in In the matter of the application of State-Plantany major Connecticut city except Hartford. Al- ers Bank of Commerce and Trusts for approval of though it has a branch or branches in seven of merger with The Suburban Bank. the State's eight counties, it does not appear to be a major factor competitively in counties other ORDER APPROVING MERGER OF BANKS than the three just mentioned. Wallingford Bank is located in New Haven There has come before the Board of Governors, County, 23 miles south of Connecticut Bank's pursuant to the Bank Merger Act of 1960 (12 main office in Hartford and 7 miles south of that U.S.C. 1828(c)), an application by State-Planters Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1157 Bank of Commerce and Trusts, Richmond, Vir- Under the Act, the Board is required to conginia, a member bank of the Federal Reserve Sys- sider (1) the financial history and condition of tem, for the Board's prior approval of the merger each of the banks involved, (2) the adequacy of of that bank and The Suburban Bank, Henrico its capital structure, (3) its future earnings pros- County (Richmond), Virginia, under the charter pects, (4) the general character of its manageand title of the former, the head office and two ment, (5) whether its corporate powers are conbranches of The Suburban Bank to be operated sistent with the purposes of 12 U.S.C, Ch. 16 (the as branches of State-Planters Bank of Commerce Federal Deposit Insurance Act), (6) the convenand Trusts. Notice of the proposed merger, in ience and needs of the community to be served, form approved by the Board, has been published and (7) the effect of the transaction on competipursuant to said Act. tion (including any tendency toward monopoly). Upon consideration of all relevant material in The Board may not approve the transaction unthe light of the factors set forth in said Act, in- less, after considering all these factors, it finds cluding reports furnished by the Comptroller of the transaction to be in the public interest. the Currency, the Federal Deposit Insurance Cor- Banking factors. The financial history and conporation, and the Department of Justice on the dition of State-Planters are satisfactory. The competitive factors involved in the proposed bank's capital structure is adequate and its future merger. earnings prospects are favorable. These attributes IT IS HEREBY ORDERED, for the reasons set forth would also characterize the resulting bank, which in the Board's Statement of this date, that said would be under State-Planters' competent manapplication be and hereby is approved, provided agement. that said merger shall not be consummated (a) Suburban was organized in 1959 as an affiliate within seven calendar days after the date of this of State-Planters. The bank's officers are persons Order or (b) later than three months after said formerly associated with State-Planters, four of date. Suburban's ten directors are members of State- Dated at Washington, D. C, this 22nd day of Planters' Advisory Board, and over 85 per cent August, 1962. of the shares of Suburban are owned by persons By order of the Board of Governors. owning over 50 per cent of the stock of State- Voting for this action: Chairman Martin, and Gov- Planters. Suburban, which began operations in ernors Balderston, Mills, Shepardson, and King. Ab- May of 1960, was organized with the expectation sent and not voting: Governors Robertson and of its merger with, and the operation of its offices Mitchell. as branches by, State-Planters at the end of five (Signed) KENNETH A. KENYON, years of actual operation of Suburban as a unit Assistant Secretary. bank in accordance with State law which, how- [SEAL] ever, was amended effective June 29, 1962. Under the existing law no waiting period is required. STATEMENT Operation of Suburban's offices as branches of State-Planters Bank of Commerce and Trusts, State-Planters, rather than as offices of an affili- Richmond, Virginia ("State-Planters"), with de- ated bank, would effect administrative and operposits of about $218 million, has applied, pursuant ating economies. to the Bank Merger Act of 1960 (12 U.S.C. No inconsistency with the purposes of 12 U.S.C, 1828(c)), for the Board's prior approval of the Ch. 16 is indicated. merger of that bank and The Suburban Bank, Convenience and needs of the communities. Henrico County (Richmond), Virginia ("Subur- The three offices of Suburban are situated near ban"), with deposits of about $3.5 million. Under the western limits of the city of Richmond and the Agreement of Merger the banks would merge serve a rapidly expanding suburban area. Conunder the charter and title of State-Planters, and summation of the proposal would have little effect the Agreement and application contemplate that on the convenience and needs of Richmond, nor the three offices of Suburban would become would the proposal significantly affect the present branches of State-Planters, increasing from 15 to convenience and needs of the area served by 18 the offices operated by that bank. Suburban. Branches of other large Richmond Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1158 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 banks already are located in the service area of of the proposed acquisition of assets and assump- Suburban. tion of liabilities, in form approved by the Board Competition. State-Planters has 9 of its 15 of Governors, has been published pursuant to offices in the Richmond area, but none of these said Bank Merger Act. offices is in the service area of Suburban. Because Upon consideration of all relevant material, of this and the close relationships between the two including the reports furnished by the Comptroller banks, little competition, if any, exists or may be of the Currency, the Federal Deposit Insurance expected to exist between these affiliated banks. Corporation, and the Department of Justice on State-Planters' position as the second largest the competitive factors involved in the proposed bank in Virginia and in Richmond would not be transaction, changed by consummation of the proposed trans- IT IS HEREBY ORDERED, for the reasons set forth action. Suburban's nearest bank competitors are in the Board's Statement of this date, that said offices of the largest and fourth largest commer- applications be and hereby are approved, provided cial banks in Richmond. Consummation of the that said acquisition of assets and assumption of transaction would not adversely affect other banks liabilities and establishment of a branch shall not operating in the resulting bank's service area. be consummated (a) within seven calendar days Summary and conclusion. The proposed merger following the date of this Order, or (b) later than would unite two banks affiliated through common three months after said date. ownership, otherwise closely related, and between Dated at Washington, D. C, this 22nd day of which there is no significant competition. This August, 1962. would increase efficiency and provide more effec- By order of the Board of Governors. tive competition for other banks with offices in Voting for this action: Chairman Martin, and Govthe area served by Suburban. ernors Balderston, Mills, Robertson, Shepardson, and Accordingly, the Board finds that the proposed King. Absent and not voting: Governor Mitchell. transaction would be in the public interest. (Signed) KENNETH A. KENYON, Assistant Secretary. [SEAL] LAWRENCE SAVINGS AND TRUST COM- PANY, NEW CASTLE, PENNSYLVANIA STATEMENT lit the matter of the application of Lawrence Lawrence Savings and Trust Company, New Savings and Trust Company for approval of Castle, Pennsylvania ("Lawrence"), a State memacquisition of assets of First National Bank in ber bank with deposits of approximately $25.5 Wampum. million, has applied, pursuant to the Bank Merger Act (12 U.S.C. 1828(c)), for the Board's prior approval of its acquisition of the assets and as- ORDER APPROVING ACQUISITION OF BANK'S sumption of the deposit liabilities of First National ASSETS Bank in Wampum, Wampum, Pennsylvania There has come before the Board of Governors, ("Wampum Bank"), with deposits of approxipursuant to the Bank Merger Act of 1960 (12 mately $1.6 million. As contemplated by the ap- U.S.C. 1828(c)), an application by Lawrence plication and the Agreement of Purchase and Savings and Trust Company, New Castle, Penn- Sale, the present office of Wampum Bank would sylvania, a member bank of the Federal Reserve become a branch of Lawrence, thus increasing System, for the Board's prior consent to its acqui- from four to five the branch offices currently sition of the assets and assumption of the liabili- operated by Lawrence. As an incident to the foreties of First National Bank in Wampum, Wam- going, Lawrence has also applied, under Section 9 pum, Pennsylvania, and, as an incident thereto, of the Federal Reserve Act, for the Board's prior Lawrence Savings and Trust Company has ap- approval of the establishment of a branch by that plied, under Section 9 of the Federal Reserve Act, bank at the present location of Wampum Bank. for the Board's prior approval of the establish- Under the Act, the Board is required to conment of a branch by that bank at the present loca- sider (1) the financial history and condition of tion of First National Bank in Wampum. Notice each of the banks involved, (2) the adequacy of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1159 its capital structure, (3) its future earnings pros- These two branches of Lawrence have deposits pects, (4) the general character of its manage- of approximately $8.9 million as compared with ment, (5) whether its corporate powers are con- Wampum Bank's total deposits of approximately sistent with the purposes of 12 U.S.C., Ch. 16 $1.5 million. Conventional real estate loans com- (the Federal Deposit Insurance Act), (6) the prise about 81 per cent of Wampum Bank's portconvenience and needs of the community to be folio, while the loan portfolio of Lawrence is served, and (7) the effect of the transaction on more diversified. Lawrence operates a complete competition (including any tendency toward mo- trust department, while Wampum Bank does not nopoly). The Board may not approve the trans- exercise trust powers. Competition between the action unless, after considering all these factors, two institutions has rapidly declined in recent it finds the transaction to be in the public interest. years. There exists between them substantial com- Banking factors. The financial condition and mon ownership of stock and interlocking direccapital structure of each of the banks are satis- torates. factory, as would be true of the resulting bank. There are currently 5 banks with head offices The proposed transaction would have the effect in Lawrence County operating a total of 16 of adding management strength and a basis for branches in the county. Of these institutions, improved earning power to what has been the Lawrence currently ranks second in size and first operation of the Wampum Bank, whose earnings with respect to the number of banking offices have been declining in recent years and are below operated. While the proposed acquisition would the average for similar size banks in the Fourth move Lawrence into first place with respect to Federal Reserve District. The earnings prospects deposits and loans, it would do so by only a of Lawrence are good, as would be the case with slender margin. The proposed acquisition would the resulting bank which would be under the have little effect on competition in New Castle. competent management of Lawrence. Its principal effect would be to strengthen Law- No inconsistency with the purposes of 12 rence's position in the Wampum-Ellwood City U.S.C., Ch. 16, is indicated. area where competition is offered presently by the largest bank in the county as well as a branch Convenience and needs of the communities. of a far larger Pittsburgh bank. Neither of these New Castle (population about 44,000), seat of institutions would be adversely affected by the Lawrence County (population about 113,000), proposed acquisition. is located in the western part of Pennsylvania 45 miles north of Pittsburgh and 29 miles southeast Summary and conclusion. The proposed acquiof Youngstown, Ohio. New Castle's economy is sition would provide the Wampum community supported primarily by diversified industry which with a branch of a progressive bank capable of produces primary metals, machinery, stone, glass serving more fully the banking needs of the comand clay, fabricated materials, and mining prod- munity. Very little competition would be elimiucts. nated by the acquisition. Wampum, Pennsylvania (population about Accordingly, the Board finds the proposed 1,100), is primarily a residential community, transaction to be in the public interest. many of whose residents are employed in nearby communities. FARMERS AND MERCHANTS BANK OF The record indicates that an office in Wampum LAWRENCEVILLE, LAWRENCEVILLE. of the resulting bank would more adequately VIRGINIA serve the convenience and needs of the commu- In the matter of the application of Farmers and nity. Merchants Bank of Lawrenceville for approval of Competition. The main office of Lawrence is merger with Bank of Alberta. eight and one-half miles from Wampum Bank and the principal competition between the two ORDER APPROVING MERGER OF BANKS banks is centered in the Ellwood City area where the service areas of two branches of Lawrence There has come before the Board of Governors, overlap the service area of Wampum Bank, which pursuant to the Bank Merger Act of 1960 (12 is located five miles northwest of Ellwood City. U.S.C. 1828(c)), an application by Farmers and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1160 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 Merchants Bank of Lawrenceville, Lawrenceville, its capital structure, (3) its future earnings pros- Virginia, a member bank of the Federal Reserve pects, (4) the general character of its manage- System, for the Board's prior approval of the ment, (5) whether its corporate powers are conmerger of that bank and Bank of Alberta, Al- sistent with the purposes of 12 U.S.C, Ch. 16 berta, Virginia, under the charter and title of the (the Federal Deposit Insurance Act), (6) the former, the office of Bank of Alberta to be oper- convenience and needs of the community to be ated as a branch of Farmers and Merchants Bank served, and (7) the effect of the transaction on of Lawrenceville. Notice of the proposed merger, competition (including any tendency toward moin form approved by the Board, has been pub- nopoly). The Board may not approve the translished pursuant to said Act. action unless, after considering all these factors, Upon consideration of all relevant material in it finds the transaction to be in the public interest. the light of the factors set forth in said Act, in- Banking factors. The financial history and concluding reports furnished by the Comptroller of dition and capital structures of both banks are the Currency, the Federal Deposit Insurance Cor- satisfactory. Farmers' management is capable and poration, and the Department of Justice on the its earnings prospects are favorable. These favorcompetitive factors involved in the proposed able attributes also would characterize the resultmerger, ing bank. Consummation of the proposal would IT IS HEREBY ORDERED, for the reasons set forth provide strengthened management and a basis for in the Board's Statement of this date, that said improved earnings relative to those of Alberta application be and hereby is approved, provided Bank. that said merger shall not be consummated (a) There is no indication that the powers of any within seven calendar days after the date of this of the banks are or would be inconsistent with Order or (b) later than three months after said 12 U.S.C, Ch. 16. date. Convenience and needs of the communities. Dated at Washington, D. C, this 27th day of Lawrenceville (population about 2,000) is the August, 1962. seat and principal business center of Brunswick By order of the Board of Governors. County (population about 18,000), which is situ- Voting for this action: Chairman Martin, and Gov- ated southwest of Petersburg on the Virginiaernors Balderston, Mills, Shepardson, and King. North Carolina border. Dependent principally Absent and not voting: Governors Robertson and Mitchell. on agriculture and having important lumber and lumber products operations, the area's economic (Signed) KENNETH A. KENYON, prospects are favorable. Assistant Secretary. Alberta (population about 500) is situated in [SEAL] Brunswick County, 10 miles north of Lawrenceville. The application indicates a limited growth STATEMENT potential for the town, which economically is Farmers and Merchants Bank of Lawrenceville, dependent primarily on tobacco and a few small Lawrenceville, Virginia ("Farmers"), with de- industries. posits of about $8.7 million, has applied, pursuant Farmers and the Alberta Bank are the only to the Bank Merger Act of 1960 (12 U.S.C. banks located in Brunswick County. Farmers' 1828(c)), for the Board's prior approval of the service area includes all of Brunswick County and merger of that bank and Bank of Alberta, Al- extends into portions of the adjoining Virginia berta, Virginia ("Alberta Bank"), with deposits and North Carolina counties. Alberta Bank's priof about $1.5 million. Under the Plan of Merger mary service area, which is within the primary the banks would merge under the charter and service area of Farmers, is confined to the northtitle of Farmers, and the Plan and application ern portion of Brunswick County and a portion contemplate that the office of Alberta Bank would of adjoining Dinwiddie County on the north. become a branch of Farmers. The effect of the proposal would bear princi- Under the Act, the Board is required to con- pally upon the convenience and needs of the area sider (1) the financial history and condition of served by Alberta Bank. Its consummation would each of the banks involved, (2) the adequacy of bring to that area the office of a bank whose size Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1161 LAW DEPARTMENT and progressive management would make possible ments with respect to applications by bank holding improved banking services and a more economic companies for approval of the acquisition of votbanking operation that should benefit the local ing shares of certain banks. economy. Alberta Bank, unlike Farmers, does not offer trust services. These would become more COMMERCIAL ASSOCIATES, INC., conveniently available in the Alberta area under PENSACOLA, FLORIDA the proposal. Also, the loan limit of the resulting bank would be about $140,000, compared to In the matter of the application of Commercial Alberta Bank's loan limit of about $20,000. This Associates, Inc. for permission to become a bank loan limit has not enabled Alberta Bank to serve holding company by acquiring stock of two banks the credit needs of several of its customers. A in Florida. number of borrowers from Farmers reside or do business in the Alberta area, and many of them ORDER APPROVING APPLICATION UNDER BANK were referred to Farmers by Alberta Bank. HOLDING COMPANY ACT Competition. Consummation of the proposal would eliminate one of the two banks now in There has come before the Board of Governors, Brunswick County and existing competition be- pursuant to Section 3(a)(l) of the Bank Holding tween them. Alberta Bank, however, has not been Company Act of 1956 (12 U.S.C. 1842) and Seca strong competitor with Farmers in view of the tion 4(a)(l) of the Board's Regulation Y (12 below average net operating income of Alberta CFR 222.4(a)(l)), an application by Commer- Bank during recent years, its small loan limit, and cial Associates, Inc., Pensacola, Florida, for the low ratio of loans to deposits. Board's prior approval of action whereby Appli- The Bank of McKenney, Inc., McKenney, cant would become a bank holding company Dinwiddie County, Virginia, is located 12 miles through the acquisition of more than 50 per cent northwest of Alberta within the primary service of the voting shares of The Commercial National area of Alberta Bank. The Bank of McKenney, Bank of Pensacola, Pensacola, Florida, and the Bank of Gulf Breeze, Gulf Breeze, Florida. Notice with about the same volume of deposits as Alberta of receipt of said application was published in the Bank, competes with four other larger banks. The Federal Register on March 30, 1962 (27 F. R. substitution of a branch of Farmers for Alberta 3017), which notice provided for the filing of Bank should not materially affect the growth or comments and views regarding the proposed acfuture of The Bank of McKenney. quisition. No comments or views have been re- Summary and conclusion. Consummation of ceived. the proposed transaction would not reduce the IT IS HEREBY ORDERED, for the reasons set forth number of banking offices available to the public, in the Board's Statement of this date, that the said nor have an adverse effect on other banks not application be and hereby is granted, and the acparties to the transaction, which would continue quisition by Applicant of more than 50 per cent to compete for business from the service areas of the voting shares of the above-mentioned banks of the two banks involved. The proposal would is hereby approved, provided that such acquisition bring to the area served by Alberta Bank, which shall not be consummated (a) within seven calenhas not provided Farmers with effective competidar days after the date of this Order or (b) later tion, the broader facilities of a bank better able than three months after said date. to satisfy the local banking needs. Dated at Washington, D. C. this 29th day of Accordingly, the Board finds that the proposed August, 1962. transaction would be in the public interest. By order of the Board of Governors. Voting for this action: Chairman Martin and Gov- Orders Under Section 3 ernors Balderston, Mills, Robertson, Shepardson, and King. Absent and not voting: Governor Mitchell. of Bank Holding Company Act (Signed) KENNETH A. KENYON, The Board of Governors of the Federal Reserve Assistant Secretary. System has issued the following Orders and State- [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1162 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 STATEMENT GCH, and Garden Properties in Commercial and Gulf Breeze, together with the shares of the banks Commercial Associates, Inc., Pensacola, Florida personally held by R. A. Hepner, except for his ("Applicant"), has applied, pursuant to Section director's qualifying shares. These interests pres- 3(a)(l) of the Bank Holding Company Act of ently own 51.8 per cent of the outstanding shares 1956 ("the Act"), for the Board's prior approval of Commercial and 51.6 per cent of the shares of of action that would result in Applicant becoming Gulf Breeze. a bank holding company—namely, acquisition of After consummation of the proposal, Applicant more than 50 per cent of the voting shares of The would own 50.7 per cent of the outstanding shares Commercial National Bank of Pensacola, Pensaof Gulf Breeze and 51.6 per cent of the shares of cola, Florida ("Commercial"), with deposits of Commercial. The Hepner family would own or approximately $4 million, and the Bank of Gulf control about 45 per cent of the 144,100 shares Breeze, Gulf Breeze, Florida ("Gulf Breeze"), of Applicant immediately following the proposed with deposits of approximately $1.5 million. transaction, but contemplated sales of a portion of Views and recommendations of supervisory au- their holdings would reduce their interest in Apthorities. As required by Section 3(b) of the Act, plicant to 40 per cent. the Board notified the Comptroller of the Cur- The financial history, condition, prospects, and rency and the Commissioner of Banking for the management of the banks are satisfactory, as are State of Florida of the receipt of the application the proposed financial structure, proposed manand requested their views. The Comptroller of the agement, and prospects of Applicant. Currency recommended that the application be Also, it appears in this case that, by reason of approved, and the State Commissioner of Banking their closer affinity through the holding company, issued a Certificate of Approval. the banks involved might in due course bring to Statutory factors. Section 3(c) of the Act re- bear a more concerted effort to better serve the quires the Board to take into consideration the public in regard to banking convenience and needs following five factors: (1) the financial history and economic welfare. and condition of the holding company and the The two banks involved are about six miles banks concerned; (2) their prospects; (3) the apart: Commercial is located in the city of Pensacharacter of their management; (4) the conven- cola, and Gulf Breeze is located in the city of Gulf ience, needs and welfare of the communities and Breeze, a recently formed municipality about five area concerned; and (5) whether the effect of the miles southeast of Pensacola across Escambia Bay. acquisitions would be to expand the size or extent Access between the two cities is by a four-lane of the bank holding company system involved bridge approximately four miles in length. Combeyond limits consistent with adequate and sound mercial and Gulf Breeze each hold deposits and banking, the public interest, and the preservation loans which originate in the primary service area of competition in the field of banking. of the other. However, there are factors in this Discussion. It is proposed that Applicant would case which suggest that this may not be entirely become a bank holding company by a consolida- due to active competition between the two banks tion of two existing corporations, Commercial As- for such business, and geographical and other consociates, Incorporated (CAI) and Gulf Commer- siderations would appear to place certain practical cial Holding Corporation (GCH), the principal limitations on the extent to which significant comassets of which are shares in Commercial and Gulf petition might develop between them in the future. Breeze, and by acquiring the stock in Commercial Although the proposed holding company system and Gulf Breeze now held by one R. A. Hepner might serve to reduce to some extent the degree of and by Garden Properties, Inc., of which the Hep- existing competition between Commercial and ner family is sole owner. The Hepner family, Gulf Breeze, the creation of a somewhat stronger through the stock ownership of Mr. Hepner in- competitive force in an over-all area served by dividually and of Garden Properties, holds sub- several much larger banks would offer compenstantial interests in CAI and GCH. Thus, the pro- sating public benefits. posed transaction would have the effect of con- The affiliation of these banks through the holdsolidating the interests of the shareholders of CAI, ing company arrangement would have little effect Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1163 on the concentration of the banking structure in lished in the Federal Register on December 7, the area. The total resources controlled by the pro- 1961 (26 F.R. 11742), which provided an opporposed holding company would not represent an tunity for submission of comments and views reundue concentration, nor would formation of the garding the proposed acquisition, and the time for holding company materially alter the present situ- filing such comments and views has expired and ation with respect to concentration. Applicant all comments and views filed with the Board have would be relatively small in terms of the over-all been considered by it. banking business in the Pensacola area; as of De- IT IS ORDERED, for the reasons set forth in the cember 31, 1961, aggregate deposits of the pro- Board's Statement of this date, that said appliposed subsidiary banks were $5,358,000, which cation be and hereby is denied. represented only 6.4 per cent of total deposits of Dated at Washington, D. C, this 29th day of all banks in the Pensacola area. This considera- August, 1962. tion, when related to the other circumstances bear- By order of the Board of Governors. ing on the application, leads to the conclusion Voting for this action: Chairman Martin, and Govthat the proposal would not create a holding com- ernors Balderston, Robertson, Shepardson, King, and Mitchell. Voting against this action: Governor Mills. pany system the size or extent of which would exceed limits consistent with adequate and sound (Signed) KENNETH A. KENYON, banking, the public interest, and the preservation Assistant Secretary. of competition in the field of banking. [SEAL] Viewing the relevant facts in light of the purposes of the Act and the factors enumerated in STATEMENT Section 3(c) thereof, it is the judgment of the The First Virginia Corporation ("First" or "Ap- Board that the proposed formation of a holding plicant"), Arlington, Virginia, a registered bank company system embracing The Commercial Naholding company, has applied, pursuant to Section tional Bank of Pensacola and the Bank of Gulf 3(a)(2) of the Bank Holding Company Act of Breeze would not be inconsistent with the statutory 1956 ("the Act"), for the Board's approval of the objectives and the public interest and, accordingly, acquisition of 80 per cent or more of the outthat the application should be approved. standing voting shares of Farmers and Merchants National Bank ("Farmers"), Winchester, Vir- THE FIRST VIRGINIA CORPORATION, ginia.1 ARLINGTON, VIRGINIA Views and recommendations of supervisory authority. As required by Section 3(b) of the Act, In the matter of the application of The First the Board gave notice of the application to the Virginia Corporation for prior approval of the ac- Comptroller of the Currency, who expressed no quisition of 80 per cent or more of the outstanding objection to approval. voting shares of Farmers and Merchants National Statutory factors. Section 3(c) of the Act re- Bank, Winchester, Virginia. quires the Board to take into consideration the following five factors: (1) the financial history and ORDER DENYING APPLICATION condition of the holding company and bank con- UNDER BANK HOLDING COMPANY ACT cerned; (2) their prospects; (3) the character of There has come before the Board of Governors, their management; (4) the convenience, needs, pursuant to Section 3(a)(2) of the Bank Holding and welfare of the communities and the area con- Company Act of 1956 (12 USC 1842) and Sec- cerned; and (5) whether the effect of the acquisition 4(a)(2) of Federal Reserve Regulation Y tion would be to expand the size or extent of the (12 CFR 222.4(a)(2)), an application on behalf bank holding company system involved beyond of The First Virginia Corporation, Arlington, Vir- limits consistent with adequate and sound bankginia, for the Board's prior approval of the ac- ing, the public interest, and the preservation of quisition of 80 per cent or more of the outstand- competition in the field of banking. ing voting shares of Farmers and Merchants Na- 1 Also pending are applications by First for approval of its tional Bank, Winchester, Virginia. acquisition of controlling stock interests in Southern Bank of Norfolk, Peoples' Bank of Mt. Jackson, and Shenandoah A Notice of Receipt of Application was pub- County Bank and Trust Company, Woodstock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1164 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 Discussion. First presently controls six banks, predictable inadequacies of banking facilities in all in Virginia, having a total of 22 offices and the Winchester area. So far as appears, the banks total deposits of $116 million, based on figures serving Winchester and its environs are providing for December 31, 1961 and taking into account a satisfactory measure of service in relation to First's subsequent acquisition of Richmond Bank their markets, and there seems to be no reason for and Trust Company and the consolidation in 1962 believing that they cannot continue to do so. of Mount Vernon Bank and Trust Company with Farmers itself, the largest bank in the vicinity, ap- Old Dominion National Bank of Fairfax County pears to be in a good position to keep abreast of (now Mount Vernon National Bank and Trust area demands for banking service generally. Company of Fairfax County). Of the system's Upon consideration of this application in the total deposits, about $47 million are held by Old light of the first four statutory factors, therefore, Dominion Bank, Arlington. Farmers, the largest the Board is unable to find significant support for of three banks in Winchester, had four offices and approval. about $22 million in total deposits as of Decem- With respect to the fifth statutory factor, the ber 31, 1961. proposed acquisition would seem to be consistent Except insofar as the classification of First's with adequate and sound banking. However, from capital stock, discussed hereinafter, may relate to the standpoint of its effect on banking competition these factors, there is nothing in the financial his- the Board does not view the application favortory and condition, or in the prospects, of First ably and, in the absence of affirmative grounds itself that would seem to be unfavorable to the for approval under the first four factors, the Board proposed acquisition. Its banks have been operated concludes that the acquisition would not be consuccessfully and soundly and their prospects are sistent with the public interest. favorable. At the same time, Farmers' financial Existing competition between Farmers and history and condition are also satisfactory and First's present subsidiaries does not appear to be consequently there is no indication in this respect substantial and the extent of potential competition of a need for affiliation with a holding company. between them is conjectural. Also, the size of the Moreover, Farmers has prospered as the largest holding company system relative to the total bankbank in its community and its prospects as an ing resources of the State is presently not a cause independent bank are good. Its management is for concern, and the proposed acquisition would capable and it is believed that continuity of man- have a relatively slight effect thereon; in addition, agement can be adequately provided by the bank's it would have little effect on First's position in the own efforts. northern Virginia area where most of its sub- With respect to the convenience, needs, and welsidiaries are located (although First holds a confare of the communities and area concerned, the siderably higher percentage of banking resources Applicant cites benefits expected to flow from the in that area than of resources in the entire State). acquisition relating to Farmers' ability to meet On the other hand, Farmers now holds about present and future credit needs in its area. The 50 per cent of the deposits and 50 per cent of the Applicant asserts it could assist Farmers in raisbanking offices of Winchester banks. Shenandoah ing capital if needed in the future. Indirect bene- Valley National Bank, a subsidiary of a holding fits to the public expected to result from the holdcompany that is exempt from the Act, holds about ing company's assistance in such matters as busi- 31 per cent of such deposits and 25 per cent of ness development, auditing, and personnel recruit- such offices.2 The only other bank in Winchester ment and training, are also cited. The holding is Commercial & Savings Bank. There are two company affiliation might facilitate the granting of other banks in Frederick County and 13 more participations in loans in excess of the bank's within a 20-mile radius of Winchester, but each lending limit, and there is some evidence of a local of these banks, except Shenandoah Valley Nademand for such loans. tional Bank, is less than half the size of Farmers On the whole, however, the Applicant's asserand most of them are beyond Farmers' principal tions with respect to the fourth factor are cast in area of competition. terms of possible future developments and needs, rather than in terms of present or reasonably 2 The figures in this paragraph are as of December 31, 1961. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1165 While the transfer of control of the bank to the est under the fifth statutory factor, and that, in holding company would not in itself change the the absence of offsetting benefits to the public or present distribution of banking resources in the other favorable considerations under the first four Winchester area, it may be assumed that Farm- statutory factors, the application should therefore ers' affiliation with the holding company would, be denied. in net effect over a period of time, benefit Farm- This case also presents special circumstances, ers in its competitive efforts. It may also be as- described in the following paragraphs, that bear sumed that Shenandoah Valley National Bank, upon the "character of the management" of the being a subsidiary of a group banking system with applicant holding company in a broad and impersubstantial resources, would not be materially dis- sonal sense and upon whether the proposed expanadvantaged by such improvement in Farmers' sion of the holding company system would be concompetitive capacity as might result. The acquisi- sistent with the public interest; these circumtion would, however, leave Commercial & Savings stances, in the Board's opinion, would themselves Bank not only the smallest bank but also the only preclude approval of the application in the abindependent bank in Winchester. Thus, apart from sence of overriding favorable considerations. derogating from the present balance of competi- The holding company's capital stock is divided tion between independent and holding company into two classes of common stock, Class A and banking in the area, the acquisition would tend Class B, in such manner that holders of the Class to increase the competitive disadvantage of smaller B stock are able to perpetuate their voting control area banks without any substantial likelihood of of the company despite their minority ownership beneficial effects on competition. of the company's total outstanding common stock. The present case is somewhat comparable, in Article IV of the Articles of Incorporation of this aspect, to the situation presented in Matter First contains the following provisions: of Northwest Bancorporation, 47 Federal Reserve BULLETIN 408 (1961); the Board's decision in that "(d) Except as otherwise specifically provided in this matter was affirmed in Northwest Bancorporation section or as may otherwise be specifically required by law, the entire voting powers shall be vested in the v. Board of Governors of the Federal Reserve Sysholders of the Class B Common Stock . . . the holdtem (C.A. 8, 1962) 303 F. 2d 832. In that case ers of said Class A Common Stock, voting separately it was pointed out that the presence of another and as a class, shall have the following voting rights: "(1) To elect twenty per centum in number of each holding company system in the area may be di- class of directors of the corporation (the word class rectly relevant to the question whether the pro- here refers to a classification of the directors with respect to the term for which they shall severally hold posed particular acquisition by the applicant holdoffice rather than to a director representing a particuing company would expand its system in a man- lar class of stock) up for election, but in no event ner that would adversely affect potential banking less than one director. . . . "(2) To vote upon any amendment to the Articles of competition. It was there held that the Bank Hold- Incorporation of the corporation which would ading Company Act "requires the Board to consider versely alter or change the privileges, special rights or the whole field of banking competition, including power given to such stock. "(3) In addition to the foregoing voting powers, the the possible adverse effect of the expansion of holders of the Class A Common Stock shall have all bank holding company groups upon the competi- additional voting powers as may be required by law." tive position of the banks in the area concerned that are not controlled by holding companies." All shares of both classes of stock have equal (47 Fed. Res. BULLETIN at 411.) rights to dividends and upon liquidation. The prin- On the basis of these facts and principles, it is cipal distinction in rights and powers between the concluded that, while the immediate effects might two classes is in the distribution of voting power not be particularly detrimental to competition, the with respect to the election of directors. The Class proposed acquisition of control of Farmers by A shareholders' right to elect a minimum of one First would be potentially anticompetitive. director in each class up for election would permit For the reasons heretofore stated, it is the them to elect more than 20 per cent of any such Board's judgment that the acquisition here pro- class that numbered less than five. However, these posed would be inconsistent with the preservation voting provisions effectively preclude the Class A of banking competition and with the public inter- shareholders from electing a majority of the cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1166 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 poration's directors at any time, even though they Where a corporation has a single class of stock, hold a majority of the holding company's common minority stockholders may, as a practical matter, stock. exercise control of the corporation, but in such Originally, First had only one class of stock, cases there is always a latent power which can be all of which was owned by Old Dominion Bank, exercised whenever the majority chooses to act. Arlington. After two classes of stock were author- This is not so with a capital structure such as is ized in December 1958, the shareholders of Old here involved, since it precludes the owners of Dominion Bank exchanged their shares of the the majority interest from ever exercising control bank's stock for Class B shares of First. over the affairs of the corporation. At the present time there are authorized 1.5 The proposed acquisition of Farmers would inmillion shares of Class B stock and 5 million crease the equity interest of Class A shareholders shares of Class A stock. There are outstanding in First to about 65 per cent without increasing 1,095,792 shares of Class B stock, of which a their minority voting power. It is not merely the majority was owned by officers and directors of quantitative increase from 57 to 65 per cent that First as of March 31, 1962, and presumably still gives the Board concern, but rather the fact that is. The ownership of a large majority of the Class the correspondence of equity ownership with con- B stock, including the holdings just mentioned, trol has already been eliminated, and that any stems directly from stockholdings in Old Dominion further acquisitions by the method here proposed Bank prior to the exchange of that bank's shares and without further investment by the Class B for those of First, although the number of Class shareholders would further increase the disparity B stockholders has increased from about 200 when between their control of the venture and their the Class B stock was first issued to approximately proportionate investment in it. If all of the pres- 624. ently authorized shares of both classes were is- There are now 1,439,868 shares of Class A sued, the Class A shareholders would have apstock outstanding. Initially, in October 1959, proximately a 77 per cent ownership interest 600,000 shares were issued through public sale, as against 23 per cent for Class B. If the balance which was followed by a 2 per cent stock dividend of the authorized Class A stock were issued in 1960. In October 1961, the Class A sharehold- without additional Class B stock being issued, ers voted to increase the 1.5 million shares of the Class A stockholders would have approxi- Class A stock originally authorized to 5 million mately an 82 per cent interest. shares. The holders of more than 77 per cent of It is true that no increase in the authorized Class the Class A shares voted for the increase, with A stock may be voted without the affirmative vote less than 3 per cent voting against. In 1962, 113,- of the holders of two-thirds of the Class A stock, 520 Class A shares were issued to shareholders and that the increase from 1.5 million to 5 million of Richmond Bank and Trust Company in ex- shares authorized received a clearly favorable vote change for their shares in that bank and 712,908 of Class A shareholders in spite of the fact that no shares were issued to the shareholders of Mount pre-emptive rights attached. It may be argued Vernon Bank and Trust Company upon its con- that, since existing Class A shareholders have solidation with Old Dominion National Bank of been willing to permit the reduction of their pro- Fairfax County (now called Mount Vernon Na- portionate interest in the corporation to such tional Bank and Trust Company of Fairfax Coun- extent, and since persons to whom Class A shares ty). Prior to that consolidation, the Class A stock are offered are free to reject the offers if the terms, represented just under 40 per cent of the total including those as to voting rights, are not to their equity in the holding company. Following the liking, the matter is therefore one of freedom consolidation, the Class A shareholders owned, of contract involving no need for special protection and they now own, about 57 per cent of the total of shareholders' interests. Whatever weight this equity. Thus, the consolidation, which was not argument might carry in the ordinary business subject to approval by the Board, gave the Class context, it does not, in the Board's view, negate A shareholders a majority interest in the holding the Board's responsibilities under the Bank Holdcompany for the first time, while voting control ing Company Act with respect to the acquisition was retained by the Class B shareholders. of control of banks by bank holding companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1167 LAW DEPARTMENT There are now about 4,450 class A sharehold- with the same economic risks and benefits, then ers. Not only do they hold a 57 per cent equity management should be willing to be appropriately interest in the corporation but they represent about accountable to them. 88 per cent of the total number of stockholders. In practice, the charting of a corporation's Each time a bank is acquired by First through the course can often be entrusted completely to manissuance of Class A stock a new segment of the agement even though it has a minority interest. public is added to the roster of owners; yet these The fact that voting control may rest in others "public" stockholders' voice in the affairs of the should not, in the ordinary case, interfere with corporation is not increased and the broader dis- effective control by management so long as it is tribution of the Class A stock in fact further well exercised. Good performance provides assurdiminishes the participation of individual Class A ance enough to management that its effective constockholders in the control of First's affairs. trol can continue, and it would be the rare case The Act requires the Board to consider the in which assurance of that control in a minority "character of management" of an applicant hold- by the device of nonvoting or limited-voting stock ing company. This term comprehends not only the should accomplish anything except the perpetupersonal competence and integrity of the direc- ation of control in those who no longer enjoy the tors and officers of the company, but also the confidence of the majority. In such event, it would organizational relationship of management to be difficult to see why the majority owners, with ownership, particularly where, as in this case, the their prime interest in the success of the corporaownership of the holding company derives to a tion, should not be able to elect management of significant degree from the ownership of the banks their own choice. and would, as proposed, do so increasingly. The These views do not in any way reflect on the present capital structure of First is expressly competence or the integrity of the present mandesigned to permit expansion of the holding com- agement of First Virginia. Under the Act, the pany through the increase of public ownership. Board must consider not merely the extent to Not only is the Class A stock to be used for ac- which the power of a holding company may quisition of additional banks but the public mar- presently be exercised through the control of ket for the stock is cited as one of the advantages banks in a given market, but also the potential to be obtained by bank shareholders in exchanging extent of its exercise. Similarly, it is appropriate their less marketable shares. This and other aspects for the Board to consider the extent to which of proposed exchanges may make the Class A concentrated control of a holding company itself shares economically attractive to offerees in spite could be exercised by a relatively small proporof the fact that proportionate voting rights do not tion of the owners. attach. Nevertheless, they are common shares and For this purpose, it is not enough that Virginia carry no preferential rights to offset the lack of law gives corporations generally the freedom to full voting power. limit the voting rights of common stock, or that In enacting the Bank Holding Company Act, stockholders may have recourse to the courts if Congress concerned itself with the way in which improper advantage is taken of their limited rights. competition might be injured by the concentra- Where banks as quasi-public institutions are contion of banking resources in holding company sys- cerned, the public interest, as reflected in the regutems. Within the legitimate scope of this concern, latory and supervisory authority established by however, is consideration of the extent to which Congress, calls for optimim standards applied in a holding company's control of its banks is ulti- advance of difficulty so long as their application mately concentrated in the owners of the holding does not unduly hamper economic and competicompany. The Board takes the position that, how- tive bank operation. Therefore, with regard for ever that ownership may be distributed, the dis- the present and future integrity of the banking tribution of voting power of the holding company industry in general the Board cannot view the exshould be reasonably related thereto. If, to accom- pansion of bank holding companies through the plish desired expansion, the management must device of issuing common stock with limited votask the public generally and the owners of banks ing power, in the circumstances described herein, in particular to join management in ownership as being in the public interest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1168 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 Thus, in any case involving an existing or pro- posal would not increase the size of The First posed capital structure of the nature herein dis- Virginia Corporation as a proportion of the total cussed, while other considerations may be found commercial banking resources of the State of Virthat may be sufficiently favorable to approval of ginia to an extent that would be contrary to the a particular acquisition to outweigh the adverse public interest. On the other hand, the mobilizaaspects of the applicant's stock structure, such tion of financial resources under a centralized adother considerations would have to be unusually ministrative control would offer opportunities for compelling to permit the Board to deviate from their economically constructive deployment the policy herein expressed. In the instant case, throughout the areas in which the holding comsuch overriding favorable considerations are ab- pany would be represented. The standing of the sent, so that the findings as to First's capital struc- management and the financial history and conditure simply add weight to the other findings, tion of The First Virginia Corporation make a previously discussed, that in the Board's judgment record that passes the conventional tests for gradrequire denial of this application. ing an applicant holding company and is such as Conclusion. On the basis of all the relevant to warrant the conclusion that these opportunities facts as contained in the record before the Board would be realized. The experienced managements and in the light of the factors set forth in Section of its subsidiary banks contribute to the appli- 3(c) of the Act and the underlying purposes of cant's favorable prospects. the Act, it is the Board's judgment that the pro- Moreover, on the basis of local standards, acposed acquisition would not be consistent with quisition of Farmers and Merchants National the public interest and that the application should Bank by First Virginia Corporation is in harmony therefore be denied. with my interpretation of the Bank Holding Company Act of 1956, which conceives that applica- DISSENTING STATEMENT OF GOVERNOR MILLS tions subject to its provisions should be honored when representing the freely expressed wishes of In applying the five statutory factors of the all parties concerned unless good and sufficient Bank Holding Company Act of 1956 to considreasons can be cited that would call for their deeration of the application of The First Virginia nial. The fact that Farmers and Merchants Na- Corporation, Arlington, Virginia, for approval of tional Bank has 50 per cent of the deposits of acquisition of shares of Farmers and Merchants Winchester banks, that its largest competitor, the National Bank, Winchester, Virginia, attention Shenandoah National Bank, has 31 per cent of must focus on the fifth factor—whether the effect such deposits, and that both banks would be bank of the acquisition would be to expand the size or extent of the bank holding company system in- holding company controlled if the application volved beyond limits consistent with adequate and were approved, does not argue for its denial. The sound banking, the public interest, and the pres- Board has objected to a situation affecting two ervation of competition in the field of banking— bank holding companies that already occupy a the fourth factor—the convenience, needs and dominant financial position over a wide extent of welfare of the communities and the area con- the territory wherein an expansion was proposed cerned—and, lastly, the third factor—the char- that would have resulted in pairing off the subacter of the managements of the holding com- sidiary bank facilities of the two bank holding pany and the bank concerned—in that order of companies as the sole source of commercial bank relevance and importance to this case. services in a single community. In this case neither At the year end of 1961 The First Virginia Cor- bank holding company occupies a dominant posiporation (including one bank acquired and an- tion in the commercial banking structure of the other merged into its system in 1962) is esti- State of Virginia and as the possibility of such a mated to have controlled through its subsidiary future development is a matter of pure conjecture, banks 3.3 per cent of the total of commercial bank it is not pertinent to deciding the application. deposits of the State of Virginia, which would be Presently there is more reason to believe that apincreased to 3.9 per cent by acquisition of the proval of the application, by stimulating stronger Farmers and Merchants National Bank, Winches- competition between relative banking equals, ter. On the one hand, consummation of the pro- would benefit the community of Winchester and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1169 the surrounding area, which is served by a con- giving unfavorable weight in its decision in the siderable number of independent banks large instant case to a form of capital structure adopted enough to compete on their own capabilities and by The First Virginia Corporation pursuant to the to offer alternative banking facilities to those laws of the State of Virginia, the Board is in effect available in Winchester proper. presuming to dispense a sort of vigilante justice The discussion regarding the propriety of the and to write a blue sky law of its own that precapital structure chosen by The First Virginia empts the police powers of the General Assembly Corporation that is set out at length in the stateof the State of Virginia. Furthermore, although ment of the majority of the Board denying the the Board can properly recommend that the Conapplication, bears on managerial considerations. gress amend the Bank Holding Company Act of No matter what dislike there may be for a cor- 1956 to provide that bank holding companies conporate practice that fails to give proportionate votform their capital structures to specified requireing rights to shareholders assumed to be entitled ments, it lacks authority to anticipate enactment to that privilege, where such a practice enjoys of such legislation by a unilateral action that unlegal sanction it is beyond challenge by the Board and cannot properly be recorded as an adverse dertakes to accomplish that purpose. factor calling for the denial of an application. In This is a close case but should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication September 14 Industrial production and construction activity Changes in production among materials were were unchanged in August. Personal income generally small. Output of iron and steel, which changed little and retail sales, which had risen had declined about one-fourth through the spring, sharply in July, were about maintained. The un- increased moderately in August. Production of employment rate increased as the labor force nondurable materials declined somewhat. showed an unusually large rise. Seasonally adjusted bank credit increased reflecting in part a CONSTRUCTION substantial expansion in loans. Between mid-Aug- The value of new construction activity in August and mid-September, common stock prices ust, at a seasonally adjusted annual rate of $62.2 showed little net change. billion, was unchanged from July and slightly below the record level reached in June. Residen- INDUSTRIAL PRODUCTION tial construction activity declined further in August Industrial production was unchanged in August while some types of business construction inat 119 per cent of the 1957 average. While out- creased and public activity recovered to its June put of consumer durable goods declined, activity level. in business equipment industries increased slightly EMPLOYMENT further and production of materials was maintained. Seasonally adjusted employment in nonfarm Output of television sets, furniture, and some establishments declined slightly in August as reother home goods declined further in August. ductions in manufacturing were offset only in Auto assemblies, which had risen substantially in part by gains in service industries, government, July following settlement of a strike, were down and some other lines. Layoffs at automobile plants, slightly in August after allowance for the model- associated with the model-changeover curtailment changeover curtailment. Reported schedules for in production, accounted for about one-half the September indicate a seasonal recovery in assem- reduction in manufacturing employment. Average blies. Output of freight and passenger equipment weekly hours in manufacturing continued to deincreased further in August while production of cline. Reflecting mainly an unusually large inmost other types of business equipment was main- crease in the civilian labor force, the unemploytained. ment rate rose to 5.8 per cent from 5.3 per cent in July. INDUSTRIAL PRODUCTION 1957 = 100 DISTRIBUTION Retail sales, after a rise of 3 per cent in July to a new high, were about maintained in August. Sales at durable goods stores declined, reflecting a moderate decrease in sales of new domestic and imported cars to a seasonally adjusted annual J rate of about 7 million units. Sales declined at department stores, to 114 per cent of the 1957-59 average from 115 in July, but advanced at most other types of outlets selling nondurable goods. COMMODITY PRICES Prices of industrial commodities, materials and finished products, generally have continued to Federal Reserve indexes, seasonally adjusted. Monthly fig- change little in recent weeks. Prices of livestock, ures, latest shown are for August. 1170 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 1171 which had increased moderately earlier this sum- somewhat but member bank borrowings from mer, rose 5 per cent in the first ten days of Sep- the Federal Reserve also increased. Reserves were tember to a level more than 10 per cent above absorbed principally through a reduction in float a year earlier. The reduction in marketings of and an outflow of gold. Reserves were supplied meat animals during the week including Labor largely through increases in Federal Reserve hold- Day was much larger than usual. Subsequently, ings of U. S. Government securities. marketings increased substantially and prices SECURITY MARKETS turned down. Yields on State and local government bonds BANK CREDIT AND RESERVES declined considerably between mid-August and Total commercial bank credit, seasonally ad- mid-Steptember and those on corporate bonds justed, increased in August by more than it had declined moderately. Yields on long-term Treasury declined in July. Loans rose much more than in obligations changed little at slightly below the other recent months. Holdings of U. S. Govern- 4 per cent level while yields on 3-month Treasury ment securities increased somewhat following a bills fluctuated around 2.80 per cent. On Seplarge decline in July while holdings of other se- tember 5 the Treasury announced an advance curities rose at a less rapid rate than earlier. The refunding, giving holders of $26.8 billion of semoney supply declined; U. S. Government deposits curities that mature in early 1963 an option to at commercial banks increased substantially. exchange them for 1967 and 1972 obligations. Time deposits rose moderately further. The Treasury has limited the exchanges to $6 billion of the 1967 issue and $3 billion of the Total reserves and required reserves of member 1972 obligation. banks declined in August. Excess reserves rose INTEREST RATES RETAIL TRADE 1957-59 = 100 RETAIL SALES DEPARTMENT STORES LONG-TERM fV GOVERNMENT SECURITIES A, i/lU Av ^ P \ '1 1 /? \ \ I ; | PPDISCOUNT TREASURY - ^ y y RATES BILLS TOTAL LE.'S AUTOMOTIVE GROUP STOCKS - - 1 i i 1 Discount rate, range or level for all F. R. Banks. Weekly Federal Reserve indexes, seasonally adjusted; retail sales average market yields for U. S. Government bonds maturing based on Department of Commerce data. Monthly figures; in 10 years or more and for 90-day Treasury bills. Latest latest for stocks is July, for other series, August. figures shown are for week ending September 14. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated IPC Individuals, partnerships, and corporations c Corrected A Assets p Preliminary L Liabilities r Revised rp Revised preliminary S Financial sources of funds: net change in liabilities [, ii, Financial uses of funds: net acquisitions of in, iv Quarters assets n.a. Not available n.e.c. Not elsewhere classified Amounts insignificant in terms of the par- S.A. Monthly (or quarterly) figures adjusted for ticular unit (e.g., less than 500,000 when seasonal variation the unit is millions) N.S.A. Monthly (or quarterly) figures not adjusted (1) Zero, (2) no figure to be expected, or (3) for seasonal variation figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. "U.S. Govt. securities" may include guaranteed issues of U.S. Govt. agencies as well as direct obligations of the Treasury. "State and local govt." also includes municipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled NOTE (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. LIST OF TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page A nnually—cont. Issue Page Flow of funds Aug. 1962 1056-72 [Feb. 1962 238^4 Selected assets and liabilities of Federal busi- Banking andmonetary statistics, 1961. . 1962 362-63 ness-type activities Julv 1962 904 [May 1962 652-55 Banks and branches, number of, by class and Semiannually State Apr. 1962 482-83 Banking offices: Analysis of changes in number of Aug. 1962 1073 Income and expenses: On, and not on, Federal Reserve Par List, Federal Reserve Banks.. Feb. 1962 234-35 number of Aug. 1962 1074 Member banks: Annually Operating ratios Apr. 1962 484-86 Bank holding companies: Insured commercial banks July 1962 903 List of, Dec. 31, 1961 June 1962 762 Banking offices and deposits of group banks, Stock Exchange firms, detailed debit and credit Dec. 31,1961 Aug. 1962 1075 balances Sept. 1962 1234 1172 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 1174 Reserve Bank discount rates; margin requirements; reserve requirements. 1178 Federal Reserve Banks 1180 Bank debits; currency in circulation 1182 Money supply; banks and the monetary system. . 1184 Commercial and mutual savings banks, by classes. 1186 Commercial banks, by classes 1190 Weekly reporting member banks. . 1192 Business loans 1195 Interest rates 1196 Security prices; stock market credit; open market paper. . 1197 Savings institutions 1198 Federal finance . 1200 Security issues .. . 1205 Business finance . . 1207 Real estate credit 1209 Consumer credit. 1212 Industrial production 1216 Business activity. 1222 Construction 1222 Employment and earnings. . 1224 Department stores . . . 1226 Foreign trade 1227 Wholesale and consumer prices 1228 National product and income series 1230 Flow of funds, saving, and investment. . 1232 Stock market credit. 1234 Guide to tabular presentation. 1172 Index to statistical tables. 1257 The data for F. R. Banks, member banks, and ties are obtained from Treasury statements; department stores, and consumer credit are the remaining data are obtained largely from derived from regular reports made to the other sources. For many of the banking and Board; production indexes are compiled by the monetary series back data and descriptive text Board on the basis of data collected by other are available in Banking and Monetary Staagencies; figures for gold stock, currency, Fed- tistics and its Supplements (see list of publieral finance, and Federal business-type activi- cations at end of the BULLETIN). 1173 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1174 BANK RESERVES AND RELATED ITEMS MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS [In millions of dollars] Factors supplying reserve funds Factors absorbing reserve funds F. R. Bank credit outstanding Deposits, other than member bank Member bank P d e o a ri r t o e d U.S. Govt. securities Dis- Gold c u u r r y - r C e i n u n c r- y T u re ry as- with r F e . s e R r . v e B s, anks O F. t h R er . ieserves Total Bo r o i u u g g h t h - t t R m c a e h g e p a r n u e s t e e r s - - c v o a a a n u n d d c n - e ts s Float i t T a o l - 2 stock s o t i a n u n g t- d- c t c u i i o l r a n - - h i o n l g d s - Tr u e r a y s- F ei o g r n - Other i co a u c n - ts B F W a . n i R t k h . s r C c a e o n n u i d c r n - y 3 Total Averages of daily figures 1929—June 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 2 314 1933—June 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2,211 1939—Dec...... 2,51C 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11,473 11,473 1941—-Dec 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1,531 292 12,812 12,812 1945—Dec 23,708 23,708 381 65224,744 20,047 4,322 28,452 2,269 625 1,247 493 16 027 16 027 1950—Dec 20,345 20,336 9 142 1.117 21,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1951—Dec .. 23,409 23,310 99 657 1 ,37525,446 22,483 4,701 29,139 1,280 271 571 264 796 20,310 20,310 1 1 9 9 5 5 2 3 — — D D ec ec...... 2 2 5 4 , , 6 4 3 0 9 0 2 25 3 , , 2 8 1 7 8 6 4 5 2 2 1 4 1,6 4 3 4 3 8 1 1 1 0 7 1 6 8 72 27 7 , , 1 2 0 9 7 9 2 22 3 , , 0 2 2 7 8 6 4 4, , 8 8 8 0 5 6 3 30 0 , , 9 4 6 9 8 4 1,2 7 7 6 1 7 5 6 6 0 9 2 4 7 6 4 6 5 2 3 9 9 0 0 9 8 0 32 8 2 1 1 9 , , 1 9 8 2 0 0 2 1 1 9 ,9 1 2 8 0 0 1954—Dec 24,917 24,888 29 407 99?26,317 21,711 4,982 30,749 805 443 439 365 929 19 279 19 279 1955_Dec 24,602 24,318 284 840 1,389 26,853 21,689 5,008 31,265 777 434 459 394 983 19,240 19,240 1956—Dec 24,765 24,498 267 706 1 63327,156 21,942 5,064 31,775 772 463 372 247 998 19 535 19 535 1957_Dec 23,982 23,615 367 716 1 44326,186 22,769 5,144 31,932 768 385 345 186 1,063 19,420 19,420 1958—Dec 26,312 26,216 96 564 1,496 28,412 20,563 5,230 32,371 691 470 262 337 I 174 18 899 18 899 1959—Dec...... 27,036 26,993 43 911 1 4?629,435 19,482 5,311 32,775 396 524 361 348 1,195 18 628 304 18 932 I960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 33,019 408 522 250 495 I 029 16 688 2 595 19 283 1961—June. 26,935 26.927 8 66 1,265 28.304 17.475 5,432 32,246 411 515 205 250 ,038 16,547 2,495 19,042 1961 27,415 27,327 88 68 1 14528,661 17,575 5,547 32,569 420 489 241 294 1,068 16,701 2 522 19,223 Scot 27,563 27,558 5 38 1,445 29,080 17,446 5,556 32.719 411 473 285 C312 I 071 16 811 2 556 19 367 Oct 28,044 27,997 47 67 1^58 29,504 17,328 5,569 32,864 415 469 254 305 1,014 17,082 2 578 19 660 Nov 28,616 28,532 84 107 1,377 30,142 17,180 5,583 33,255 414 483 258 244 1,068 17,183 2 657 19,840 Dec 29,098 29,061 37 152 1,971 31,217 16,929 5,587 33,954 422 514 229 244 1,112 17 259 2 859 20 118 1962 Jan 28,519 28,478 41 93 1,807 30,468 16,852 5,588 33,291 441 417 234 288 1,042 17 195 2 894 20 089 Feb 28,384 28,377 7 118 1 ,79029,839 16,793 5,586 32,848 449 426 211 272 1,096 16,916 2 655 19,571 Mar 28,570 28,524 46 156 1,293 30,063 16,707 5,588 32,996 439 448 215 272 049 16 939 2 608 19 547 Apr 29,143 29,015 128 134 1,317 30,634 16,564 5,588 33,235 428 485 220 350 985 17,083 2 640 19,723 May.... . ... 29,503 29,457 46 128 l,3?6 30,991 16,456 5,594 33,327 419 551 221 351 1 048 17,122 2 695 19 817 June. 29,568 29,510 58 154 1,508 31,265 16,434 5,601 33,626 402 514 269 322 971 17,196 2 728 19 924 July 29,581 29,540 41 109 1 73631,475 16,310 5,602 33,989 398 490 273 312 654 17,272 2 774 20,046 Aug 30,088 30.074 14 14? .330 31.600 16.136 5.598 33,96? 406 524 200 335 764 17.144 p2 778 P!9 922 Week ending— 1961 July 5 27,283 27,274 9 49 1.202 28,568 17,550 5,435 32,484 388 434 233 317 1,007 16,689 2 397 19,086 12 27,266 27,266 48 1,291 28,641 17,550 5,433 32,797 385 390 231 255 996 16,570 2,533 19,103 19 26 737 26 737 56 1,748 28,575 17 547 5,437 32,634 392 605 218 274 946 16 491 2 584 19 075 26 26,731 26,720 11 50 1,476 28,289 17,525 5,440 32,476 399 498 251 274 944 16,412 2,595 19,007 Aug. 2 27,319 27,229 90 75 1,081 28,508 17,527 5,527 32,450 444 456 238 306 969 16,699 2 587 19 286 9 27,614 27,484 130 123 00628,777 17,548 5,543 32,564 423 467 234 304 1,024 16 852 2 356 19 208 16 27,471 27,275 196 62 ,10928,676 17,601 5,545 32,664 422 498 257 275 1,039 16,667 2,530 19,197 23 27,197 27,191 6 39 41028,681 17,602 5,548 32,594 423 488 243 292 1,108 16,682 2 520 19 202 30 27,276 27,276 37 1,101 28,447 17,579 5,552 32,474 416 498 230 298 1,109 16,554 2,606 19,160 Scot 6 27,840 27,840 57 99928,931 17,451 5,553 32,664 406 469 270 303 ,111 16 712 2 402 19 114 13.::::::. 27,803 27,803 28 1 18629,052 17,451 5,553 32,836 414 469 275 319 ,088 16,655 2 543 19 198 20 27,330 27,320 10 45 ,843 29,251 17,451 5,554 32,775 413 566 282 313 ,048 16,861 2 612 19,473 27 27,200 27,197 3 29 ,773 28,986 17,451 5,560 32,612 414 436 296 320 ,049 16,871 2,648 19,519 Oct. 4 27,834 27,823 11 36 ,33? 29,237 17,380 5,563 32,678 408 422 300 281 1,054 17,036 2 569 19 605 11. 28,195 28,143 52 31 I 25729,517 17,350 5,565 32,886 417 450 261 363 OS? 17 005 2 421 19 426 18 28,250 28,130 120 147 1,305 29,737 17,336 5,568 33,010 422 479 248 300 '998 17 184 2 620 19 804 25 27,819 27,791 28 57 ,630 29,544 17,302 5,572 32,849 414 486 249 268 991 17,162 2 663 19 825 Nov. 1 28,052 28,039 13 76 ,73829,404 17,302 5,576 32,802 410 491 241 303 990 17 045 2 706 19 751 8 28,495 28,466 29 93 1,130 29,760 17,291 5,579 32,967 423 475 £273 258 992 17,241 2,430 19,671 15 28,466 28,380 86 125 1,186 29,817 17,276 5,583 33,222 402 476 247 253 992 17 084 2 657 19 741 22 28,588 28,461 127 92 1,743 30,465 17,190 5,585 33,350 414 506 309 251 1,144 17,265 2.629 19,894 29 28,874 28,760 114 103 49?30,510 16,975 5,586 33,503 415 456 210 213 1,143 17,132 2;810 19,942 Dec 6... 29,274 29,274 36 1,279 30,631 16,975 5,588 33,579 416 501 216 258 1,143 17,082 2,682 19,764 13 29,334 29,334 40 1,363 30,780 16,961 5,590 33,937 423 460 247 228 1,131 16,906 2,836 19,742 20 29,007 29,007 109 2.240 31,401 16,920 5,588 34,072 424 600 215 219 1 102 17 277 2 957 20 234 27 28.893 28,845 48 218 1,526 31,685 16,889 5,584 34,171 421 511 207 238 1,106 17,506 2,842 20,348 For notes tee opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK RESERVES AND RELATED ITEMS 1175 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued [In millions of dollars] Factors supplying reserve funds Factors absorbing reserve funds F. R. Bank credit outstanding Deposits, other P d e o a ri r t o e d T U o . t S al . G B o o o v u u t g . t h - s t ecu R c a r e h i g t p a r ie u e s s e e r- - c v D o a a i a s u n n - d n c d - t e s s Float t T a o l - 2 s G to o c ld k T r s c o r e u t i e a u n n u r a n r y g c t - - s d y - - r c C t e c u i i n u i o n l r c r a n - - y - T h c i r u o a n e r l s g a y d h s s - - T t r u h e w r a a y i s n t - h m F r e F e . m s o i R e r b r . - e v B r e s a O b , t n a h k n e s k r c O F o . a u t c h n - R e ts r . W F. it R h M . e r m e r C s e b a e n u n e r c r r v d y - e b s an T k otal right Banks coin 3 Averages of daily figures Week ending— 1962 Jan. 3 28,931 28,720 211 356 2,355 31,695 16,889 5,586 33,919 429 441 290 297 ,053 17,740 3,062 20,802 10........ 28,784 28,717 67 79 2,059 30,972 16,883 5,587 33,661 434 380 240 261 ,043 17,421 2,871 20,292 17... 28,520 28,501 19 89 870 30,529 16,839 5,586 33,386 440 435 232 292 ,040 17,130 2,926 20,056 2 3 4 1. .. . . . . . . . . . . . . . 2 2 8 8 , , 2 3 7 1 9 0 2 2 8 8 , , 2 3 7 1 9 0 9 7 4 2 7 2 8 2 6 7 2 3 9 0 , , 6 18 7 5 8 1 1 6 6 , , 8 8 3 3 9 2 5 5 , , 5 5 8 9 9 0 C3 3 2 3 , , 7 0 9 7 3 0 c 4 4 4 5 2 0 4 43 2 9 4 2 21 2 3 0 2 3 9 0 6 5 , , 0 04 4 3 2 1 16 7 , , 8 0 8 9 2 4 2 2 , ,8 8 7 7 8 6 1 1 9 9 , , 7 9 5 7 8 2 Feb. 7........ 28,588 28,588 122 ,117 29,873 16,804 5,584 32,776 460 359 223 277 ,042 17,125 2,573 19,698 14........ 28,575 28,575 120 ,050 29,791 16,789 5,585 32,888 448 444 197 252 ,022 16,914 2,606 19,520 21... 28,090 28,062 28 122 ,655 29,913 16,790 5,586 32,870 447 433 197 274 ,163 16,904 2,676 19,580 28........ 28,285 28,285 108 ,340 29,778 16,790 5,588 32,857 439 470 227 285 ,156 16,721 2,764 19,485 Mar. 7........ 28,433 28,419 14 156 339 29,974 16,772 5,587 32,908 440 401 214 283 ,100 16,987 2,497 19,484 14........ 28,502 28,463 39 118 ,252 29,917 16,724 5,590 33.066 441 461 224 234 ,053 16,751 2,597 19,348 21 28,487 28,415 72 198 ,446 30,176 16,709 5,586 33,048 446 460 219 224 ,027 17,048 2,617 19,665 28........ 28,679 28,651 28 151 ,24830,121 16,666 5,587 32,951 433 481 197 318 ,028 16,966 2,682 19,648 Apr-,?:::::::: 29,150 28,996 154 140 ,029 30,361 16,609 5,591 33,050 433 400 220 351 ,025 17,080 2,583 19,663 29,281 29,134 147 125 156 30,603 16,609 5,589 33,274 432 458 252 327 ,030 17,027 2,477 19,504 18 29,030 28,957 73 140 ,412 30,622 16,585 5,584 33,356 425 480 204 364 960 17,002 2,684 19,686 25 29,033 28,882 151 150 ,500 30,722 16,523 5,586 33,244 428 518 209 354 963 17,115 2,763 19,878 May 2 29,188 29,093 95 128 ,35130,704 16,494 5,590 33,133 419 607 213 366 958 17,091 2,777 19,868 9 29,634 29,467 167 112 ,24531,025 16,490 5,594 33,267 419 502 224 372 956 17,369 2,482 19,851 16........ 29,532 29,511 21 129 ,276 30',970 16,456 5,595 33,406 423 537 219 342 996 17,098 2,717 19,815 23........ 29,341 29,341 112 ,667 31,153 16,434 5,593 33,327 419 599 237 327 1,132 17,138 2,693 19,831 30 29,560 29,560 151 1'9-'1 30,935 16,434 5,594 33,331 418 524 208 344 1,130 17,007 2,802 19,809 June 6 29,837 29,837 117 ,21131,198 16,434 5,597 33,534 413 474 209 367 1,077 17,155 2,646 19,801 13........ 29,672 29,672 107 304 31,115 16,435 5,602 33,663 402 503 211 339 1,056 16,976 2,662 19,638 20... 29,433 29,356 180 779 31,423 16,434 5,604 33,654 400 509 274 337 996 17,291 2.747 20,038 27 29,320 29,233 216 ]668 31,236 16,433 5,600 33,584 396 550 343 266 886 17,244 2,818 20,062 July 4 29.884 29,707 177 153 ,49831,597 16,435 5,600 33,863 391 533 330 290 699 17,527 2,713 20,240 11 29,962 29,870 92 81 ,62731,729 16,412 5,602 34,155 394 452 294 301 700 17,447 2,694 20,141 18........ 29,304 29,304 178 039 31,561 16,298 5,601 34,091 388 496 315 298 607 17,265 2,829 20,094 25 29,230 29,230 74 968 31,315 16,269 5,603 33,901 404 551 221 317 641 17,152 2,850 20,002 Aug. 1. 29,592 29,592 85 ,34631,066 16,168 33,813 414 428 234 343 643 16,962 2,876 19,838 8... 30,194 30,194 171 150 31,559 16,148 33,938 417 488 217 331 692 17,226 2,589 19,815 15... 30,177 30,160 145 31,642 16,148 34,059 402 598 198 375 703 17,050 2,763 19,813 22. . 29,902 29,890 171 684 31,795 16.147 34.003 397 553 189 325 827 17,247 2,763 20,010 29.. 30.019 30.019 92 287 31,433 16.112 5,601 33:870 404 502 192 314 820 17,044p2,872 19,916 End of month 1962 June...... 29,663 29,493 170 76 1,462 31,261 16,435 5,598 33,770 379 612 334 293 700 17,206 2,570 19,776 July 29,786 29,786 73 1,138 31,040 16,147 5,603 33,869 404 390 248 355 642 16,885 3,054 19,939 Aug 30,358 30,246 "l\2 101 1,121-4 31.618^16.098^5,547^33,913 Ml 3 478 168 311 871 17,110^3,031 '20,141 Wednesday 1962 July 4 30,334 30,194 140 113 1,579 32,090 16,435 5,602 34,058 398 490 306 294 692 17,889 2,721 20,610 11 29,487 29,445 42 57 1,583 31,179 16,298 5,600 34,142 397 436 335 219 704 16,844 3,083 19,927 18 29,020 29,020 669 1,889 31,616 16,298 5,602 34,007 398 435 269 313 644 17,451 3,042 20,493 25....... 29,180 29,180 136 1,452 30 "" 16,208 5,603 33,810 414 565 237 303 639 16,651 3,138 19,789 Aug. 1. . 29,959 29,959 194 1,084 31,280 16,148 5,601 33,845 423 333 256 344 639 17,189 3,024 20,213 8 30,173 30,173 647 934 31,796 16,148 5,604 34.032 421 592 197 340 699 17,267 2,798 20,065 15 30,264 30,143 121 329 1,388 32,020 16,148 5,596 34,042 404 597 178 336 834 17,373 3,077 20,450 22 29,958 29,873 85 548 1,295 31,837 16,148 5,598 33,930 409 593 170 316 828 17,338 3,074 20,412 29. 30,143 30.143 118 1,005 31,300 16,098 5,603 33,897 414 490 169 313 817 16,901^3,172 "20,073 1 Beginning with 1960 reflects a minor change in concept, see Feb. 3 Part allowed as reserves Dec. 1, 1959-Nov. 23, 1960; all allowed 1961 BULL., p. 164. thereafter. Beginning with Jan. 1962 figures are estimated except for 2 Includes industrial loans and acceptances, when held. (Industrial weekly averages. loan program discontinued Aug. 21, 1959.) For holdings of acceptances on Wed. and end-of-month dates, see subsequent tables on F. R. Banks. See also note 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1176 BANK RESERVES AND RELATED ITEMS RESERVES AND BORROWINGS OF MEMBER BANKS [In millions of dollars] Reserve city banks All member banks NewYork City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t ld al qu R i e r - ed Excess B F r i o a n . a n w g R t k s - . s se r r e v - es T h o e t l a d l qu R i e re - d Excess B F r i o a n . a R n w g t s k . - s s F e r r r e v e - e es T h o e t l a d l qu R i e re - d Excess B F r i o a n a . n w R g t s k - . s s F e r r r e v e - e e s 1929—June 2,314 2,275 42 974 -932 762 755 7 174 — 167 161 161 1 63 —62 1933—June 12,160 1,797 363 184 179 861 792 69 69 211 133 78 n a n a. 1939_Dec 11,473 6,462 5,011 5,008 5,623 3,012 2,611 n.a. n.a. ,141 601 540 n a n.a. 1941 Dec 12 812 9,422 3,390 5 3,385 5,142 4 153 989 n a n a 143 848 295 n a n a 1945 Dec 16,027 14,536 1.491 334 1.157 4.118 4,070 48 192 -144 939 924 14 14 1947—Dec 17,261 16.275 986 224 762 4,404 4,299 105 38 67 ,024 J .011 13 6 7 1950 Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 .199 1,191 8 5 3 1951—Dec 20,310 19,484 826 657 169 5,275 5,231 44 151 — 107 ,356 1,353 64 -61 1952—Dec 21,180 20,457 723 1 593 -870 5 357 5,328 30 486 —456 I 406 I 409 —4 232 —236 1953 Dec 19,920 19,227 693 441 252 4,762 4,748 14 115 -101 1,295 1,295 1 37 -36 1954 Dec 19,279 18.576 703 246 457 4,508 4,497 12 62 -50 1,210 1,210 — 1 15 — 16 1955 Dec 19,240 18,646 594 839 —245 4,432 4.397 35 197 — 162 I 166 1 164 2 85 —83 1956—Dec 19,535 18,883 652 688 -36 4,448 4,392 57 147 —91 1,149 1,138 12 97 —86 1957 Dec 19,420 18,843 577 710 133 4,336 4,303 34 139 — 105 I 136 I 127 s 85 —77 1958—Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 —81 I 077 1,070 7 39 —31 1959—Dec 18,932 18,450 482 906 -424 3,920 3,930 -10 99 — 109 1.038 1.038 104 — 104 I960—Dec 19.283 18,527 756 87 669 3,687 3,658 29 19 10 '958 *953 4 g —4 1961 June 19,042 18,430 612 63 549 3,698 3,658 40 40 970 964 6 1 5 1961 Aug 19,223 18,619 604 67 537 3,645 3,629 16 9 7 970 967 3 2 1 Sept 19,367 18.783 584 37 547 3,686 3,681 6 4 966 963 1 2 Oct 19,660 19,153 507 65 442 3,733 3,716 16 4 12 983 985 — 1 23 —24 Nov. 19,840 19,218 622 105 517 3,697 3,660 37 23 14 985 982 3 16 — 13 Dec 20,118 19.550 568 149 419 3,834 3,826 57 —50 987 987 22 —22 1962—Jan 20,089 19.473 616 70 546 3.811 3.763 48 41 987 982 2 Feb 19,571 19,069 502 68 434 3,680 3,664 17 6 11 955 954 1 4 —3 Mar 19,547 19,077 470 91 379 3,693 3,705 — 12 12 —24 964 949 15 21 —6 Apr 19,723 19,213 510 69 441 3,752 3,692 60 10 50 940 953 — 13 —20 May 19,817 19,320 497 63 434 3,724 3,713 11 1 10 990 983 4 3 19,924 19,453 471 100 371 3,781 3,774 19 — 12 976 977 — 1 _3 July .... 20,046 19,514 532 89 443 3,766 3,732 34 16 18 1,000 989 10 4 6 Aug *>19,922 ^565 127 *>3,709 *>3,684 #4 18 Week ending— 1961—Aug. 2 19,286 18,809 477 75 402 3,739 3,747 -8 12 996 992 9. ... 19,208 18,651 557 123 434 3,683 3,660 21 971 971 -5 16.... 19,197 18,593 604 62 542 3,597 3,609 2: 6 -11 969 967 3 23.... 19,202 18,605 597 37 560 3,613 3,610 965 960 5 30 19,160 18,566 594 37 557 3,607 3,594 13 11 965 962 2 _ 1962—Mar. 7 19,484 19,038 446 90 356 3,700 3,694 6 8 962 955 -1 14 19,348 18,870 478 53 42 3,648 3,632 16 16 932 936 —5 2 2 1 8 . . . . . . . . 1 1 9 9 , , 6 6 6 4 5 8 1 1 9 9 , , 1 1 8 8 1 9 4 4 8 5 4 9 1 8 3 6 3 3 3 5 7 3 3 , , 7 7 5 4 4 8 3 3 , , 7 7 5 3 9 5 1: 2 1 3 3 -11 9 9 5 6 9 0 9 9 5 5 2 8 : 6 1 9 7 - - 6 1 2 5 Apr- it::: 19,663 19,146 517 75 44 3,728 3,709 19 10 939 938 -2 19,504 19,060 444 60 38 3,629 3,620 938 936 —7 18... 19,686 19,194 492 75 41 3,667 3,664 2: -19 947 949 -13 25... 19,878 19,328 550 46 3,753 3,732 2 12 972 966 May 2... 19,868 19,410 458 6 39 3,828 3,792 36 36 985 987 -11 9!.. 19,852 19,393 459 46 41 3,757 3,743 14 14 995 988 3 16... 19,81 19,328 487 64 42 3,695 3,680 5 10 978 982 —i -9 23... 19,83 19,299 53 4 48 3,727 3,707 20 20 989 980 8 30... 19,80 19,202 60 8 52 3,76 3,683 82 8 1,006 974 32 31 June 6,, - 19,80 19,28 51 5 45 3,740 3,733 962 970 -7 13... 19,63 19,24 39 4 34 3,69 3,689 96 959 4 20... 20,03 19,56 47 12 34 3,83 3,807 2 3 -1 982 98 -12 27... 20,06 19,56 49 16 32 3,82 3,81 14 3 -2 99 98 6 July 4... 20,24C 19,69 54 12 42 3,90 3,86 4C 3 1 1,01 99 h 10 20,14 19,59 54 5 49 3,764 3,74 1 1 980 98 -5 18... 20,09 19,53 56 16 39 3,69 3,68 4 -3 98 98 11 -15 25... 20,00 19,42 57 5 51 3,75 3,67 7 7 98 97 1 10 1962—Aug. 1... 19,83 19,40 43 7 36 3,76 3,75 1 1 1 02 1 01 5 8... 19,81 19,32 49 15 33 3,70 3,70 1 -1 1,01 1,01 1 -16 15... 19,81 19,21 59 13 46 3,66 3,63 3 2 99 99 -: 2 -25 22... 20,01 19,46 54 15 38 3,71 3,70 1 4 -2 1,02 1,02 2 -22 29... *19,91 ^19,38 7 3,69 3,67 1 1,02 1,01 -5 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK RESERVES AND RELATED ITEMS 1177 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued [In millions of dollars] Other reserve city banks Country banks Period Reserves Borrow- Reserves Borrowings at .rree ings at Free T h o e t ld al Required Excess B F a . n R k . s reserves T h o e t ld al Required Excess B F a . n R k . s reserves 1929—June 761 749 12 409 -397 632 610 22 327 -305 1933—June 648 528 120 58 62 441 344 96 126 -30 1939—Dec 3,140 1.953 1,188 n.a. n.a. 1,568 897 671 n.a. n.a. 1941—Dec 4,317 3,014 1,303 n.a. n.a. 2,210 1,406 804 n.a. n.a. 1945—Dec 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 1947_Dec 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950—Dec 6,689 6,458 232 50 182 4,761 4,099 663 29 634 1951—Dec 7,922 7,738 184 354 -170 5,756 5,161 596 88 508 1952—Dec 8,323 8,203 120 639 -519 6,094 5,518 576 236 340 1953—Dec 7,962 7,877 85 184 -99 5,901 5,307 594 105 489 1954—Dec 7,927 7,836 91 117 -26 5.634 5,032 602 52 S50 1955—Dec 7,924 7.865 60 398 -338 5,716 5,220 497 159 338 1956—Dec 8,078 7.983 96 300 -204 5,859 5,371 488 144 344 1957—Dec 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 1958—Dec 7,940 7.883 57 254 -198 5,849 5,419 430 162 268 1959—Dec 7,954 7,912 41 490 -449 6,020 5,569 450 213 237 1960—Dec 7,950 7,851 100 20 80 6.689 6,066 623 40 583 1961—June 7.823 7,740 83 17 66 6,551 6,068 483 45 438 1961—Aug 7,940 7,883 57 13 44 6,668 6,141 527 43 484 Sept 7,993 7,930 63 13 50 6,722 6,209 513 19 494 Oct 8,147 8,122 26 18 8 6,797 6.330 466 20 446 Nov 8.241 8,184 57 44 13 6,917 6,393 524 22 S02 Dec 8,367 8,308 59 39 20 6,931 6,429 502 31 471 1962—Jan 8,311 8,257 54 34 20 6,979 6,471 509 26 483 Feb 8,094 8.047 47 25 22 6.842 6,405 437 33 404 Mar 8,106 8,065 41 26 15 6,784 6,358 426 32 394 Apr 8,195 8,158 37 28 9 6,836 6,410 425 24 401 May 8,231 8,174 57 21 36 6,872 6,449 422 37 385 June 8,270 8,229 41 45 -4 6,896 6,473 423 34 389 July 8,309 8,266 43 40 3 6,972 6,526 445 29 416 Aug "8,179 *8,128 *51 47 P4 ?7,017 *>6,531 ^486 45 "441 Week ending— 1961—Aug. 2.. 7,967 7,931 35 20 15 6,585 6,140 445 38 407 9 7,927 7,885 42 31 11 6,627 6,135 491 66 425 16....... 7,919 7,873 46 13 33 6,712 6,144 568 38 531 23 7,963 7,890 73 2 71 6,661 6,144 517 35 480 30. 7,919 7,868 51 5 46 6,671 6,142 528 30 499 1962—Mar. 7 8,041 8.022 19 34 -15 6,782 6,367 415 40 375 14 8,014 7.958 57 27 30 6,753 6.344 409 25 384 21....... 8,151 8,111 40 19 21 6,801 6,359 442 32 410 28 8,174 8,134 41 24 17 6,766 6,363 403 22 381 8,199 8,143 56 17 40 6,796 6,356 440 45 395 ^•it::::::: 8,165 8,118 47 26 21 6,773 6,387 386 17 369 18 8,205 8,171 34 19 15 6,867 6,409 458 23 435 25 8,223 8,182 41 53 -12 6,929 6,448 481 18 463 May 2....... 8,233 8,199 34 19 14 6,822 6,432 390 35 355 9 8,249 8,214 35 18 17 6,851 6,448 403 25 377 16 8,220 8,192 28 20 8 6,921 6,473 447 34 414 23 8,194 8,155 39 20 19 6,921 6,457 464 26 438 30 8,230 8,119 110 24 86 6,809 6,427 382 61 321 June 6 8,201 8,152 49 26 23 6,897 6,434 463 29 433 13 8,174 8,139 36 13 23 6,810 6,458 352 33 318 20 8,307 8,274 33 64 -31 6,919 6,501 418 17 401 27 8,325 8,288 38 69 -31 6,918 6,483 435 63 372 July ,?::::::: 8,433 8,342 91 57 34 6,888 6,488 399 29 369 8,359 8,322 36 13 23 7,037 6,542 496 31 464 18 8,324 8,301 24 97 -73 7,094 6,556 538 15 523 25 8,298 8,243 55 22 33 6,966 6,532 433 35 398 Aug. 1. 8,172 8,142 30 27 4 6,874 6,493 381 40 340 8 8,151 8,121 30 66 -34 6,945 6,491 455 54 401 15....... 8,158 8,088 70 49 21 6,991 6,499 492 50 443 22....... 8,232 8,199 33 52 -19 7.035 6,543 492 38 454 29....... 8,138 8,104 34 21 13 P7',061 ^6,580 ^481 34 P447 1 This total excludes, and that in the preceding table includes, $51 Nov. 1959; thereafter on closing figures for balances with F. R. Banks million in balances of unlicensed banks. and opening figures for allowable cash; see also note 3 to preceding table. Required reserves: Based on deposits as of opening of business each NOTE.—Averages of daily figures. Beginning with Jan. 1962 reserves day. are estimated except for weekly averages. Borrowings at F. R. Batiks: Based on closing figures. Total reserves held: Based on figures at close of business through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1178 DISCOUNT RATES FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 13 3 Federal Reserve Bank Sees. 13 and 13a* Sec. 10(b)2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Aug. 31 date rate Aug. 31 date rate Aug. 31 date rate Boston Aug. 23,1960 Aug.23, 1960 4 Aug. 23,1960 New York... Aug. 12,1960 Aug.12, 1960 June 10,1960 Philadelphia.. Aug. 19,1960 Aug.19, 1960 Aug. 19,1960 C R l i e c v h e m lan o d nd... A A u u g g . . 1 1 2 2 , ,I 1 9 9 6 6 0 0 A A u u g g . . 1 1 2 2 , , 1 1 9 9 6 6 0 0 4* A A u u g g . . 1 1 2 2 , ,1 1 9 9 6 6 0 0 Atlanta Aug. 16,1960 Aug.16, 1960 Aug. 16,1960 Chicago Aug. 19,1960 Aug.19, 1960 June 10,1960 St. Louis Aug. 19,1960 Aug.19, 1960 Aug. 19,1960 Minneapolis.. Aug. 15,1960 Aug.15, 1960 Aug. 15,1960 Kansas City.. Aug. 12,1960 Aug.12, 1960 Aug. 12,1960 Dallas Sept. 9,1960 Sept. 9, 1960 Sept. 9,1960 San Francisco Sept. 2,1960 Sept. 2, 1960 June 3,1960 1 Advances secured by U.S. Govt. securities and discounts of and secured by FICB securities are limited to 15 days. advances secured by eligible paper. Rates shown also apply to advances 2 Advances secured to the satisfaction of the F. R. Bank. Maxisecured by securities of Federal intermediate credit banks maturing mum maturity: 4 months. within 6 months. Maximum maturity: 90 days except that discounts 3 Advances to individuals, partnerships, or corporations other than of certain bankers' acceptances and of agricultural paper may have member banks secured by U.S. Govt. direct securities. Maximum maturities not over 6 months and 9 months, respectively, and advances maturity: 90 days. FEDERAL RESERVE BANK DISCOUNT RATES [Per cent per annum] Range F. R. Range F. R. Range F. R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date all F. R. of date all F. R. of date all F. R. of Banks N. Y. Banks N. Y. Banks N.Y. In effect Dec. 31, 1932 21/2 1950 1957_Cont. Aug. 21 V41 Nov. 15 1933 25 WA Dec. 2 Mar. 3 2*4-3% 3% 4 1953 1958 Apr. 7 3 %A Jan. 16 WA-2 Jan. 22 May 26 23 24 Oct. 20 Mar. 7 1954 13 1934 Feb. 5 WA-2 21 Feb. 2 \ft 15 WA Apr. 18 Mar. 16 ift Apr. 14 WZ-WA WA May 9 16 "ft* Aug. 15 1935 May 21 Sept. 12 , Jan. 11 l%-2 Ift May 14 lft-2 1955 Oct. IAWY.Y.Y. Apr. 14 Nov. 7 1937 15 Aug. 27 1 -2 May 2 WA 4 1959 Sept. 4 1 -1% Aug. 4 W W A A - - 2 2 V V A A 2 4 Mar. 1 6 6 2211/2/2-3 O Ap ct r . . 1 1 1 5 1942 1 SepS! 1 : 2! : . : '! : .' : .' 2 2 2V - - 2 2 V V A A 2 2V % A J M S u e a n p y t e . 2 1 1 9 1 2 3 3i - / 3 2 30 lft Nov. 18 %2 2ft 18 31/2-4 23 2ft Apr. 25 1946 [ft- Apr. 13 1956 June 3 1960 31/2-4 May 10 20 f 10 3Vt£ Aug. 24 14 1948 Aug. 12 Jan. 12 l -WA WA Sept. 9 3 -3i/ Aug. 1 1 9 3 WA WA 1957 3 3 1962 Au8-29 3::::: 3*4 In effect Aug. 31 . 1 Preferential rate of ft of 1 per cent for advances secured by U. S. against U. S. Govt. securities was the same as its discount rate except Govt. securities maturing in 1 year or less. The rate of 1 per cent was in the following periods (rates in percentages): 1955—May 4-6, 1.65; continued for discounts of and advances secured by eligible paper. Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, NOTE.—Discount rates under Sees. 13 and 13a (as described in table 2.75; 1%1—Jan. 9, Feb. 6-7, 2.75; Apr, 3-4, 2.50; June 29, 2.75; July above). For data before 1933, see Banking and Monetary Statistics, 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, pp. 439-42. 2.75; 1962—Mar. 20-21, 2.75. The rates charged by the F. R. Bank of N. Y. on repurchase contracts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE REQUIREMENTS 1179 MAXIMUM INTEREST RATES PAYABLE ON TIME AND RESERVE REQUIREMENTS OF MEMBER BANKS SAVINGS DEPOSITS [Per cent of deposits] [Per cent per annum] Net demand deposits2 Time deposits Effective date Type of deposit Central Ja 1 n 9 . 3 6 1, Ja 1 n 9 . 5 7 1, Ja 1 n 9 . 6 2 1, Effective date* C r b e e c a s n i e n t t r y k r v a s e l 3 R b e c a se i n t r y k v s e C ba o tr n u y k n s - r r e e s a c s e e i n r t r d y v v e e C ba o tr n u y k n s - Savings deposits held for: banks L 1 e y s e s a t r h a o n r m 1 o y r e e ar } 2Ji 3 \ / 3 4 1/2 In effect Dec. 31, 1948.. 26 22 16 71/2 71/2 Postal savings deposits held for: L 1 e y s e s a t r h a o n r m 1 o y r e e ar } 2* 3 { k 1949_M Ju a n y e 30 1 , , 5 July 1.. 24 2 2 1 0 1 1 5 4 7 6 7 6 Aug. 1, 11 13 5 Other time deposits payable in: Aug. 16, 18 12 5 6 1 m ye o a n r t o h r s - m 1 o y r e e ar } 21/2 3 I 4 A Se u p g t . . 25 1 2 22 2 1/2 !§* 90 days-6 months 2 21/2 1951—Jan. 11, 16 23 19 13 6 Less than 90 days 1 Jan. 25,Feb 1.. 24 20 14 1953—July 1,9 22 19 13 1954—June 16, 24 21 5 NOTE.—Maximum rates that may be paid by member banks as estab- July 29, Aug. 1.. 20 18 12 lished by the Board of Governors under provisions of Regulation Q. Under this Regulation the rate payable by a member bank may not in 1958_Feb. 27, Mar. 1. 191/2 .7V4 any event exceed the maximum rate payable by State banks or trust com- Mar. 20, Apr. 1.. 19 11 2 panies on like deposits under the laws of the State in which the member Aor. 17 I8V2 bank is located. Effective Feb. 1, 1936, maximum rates that may be Apr. 24 18 161/2 paid by insured nonmember commercial banks, as established by the I960—Sept. 1 171/2 F.D.I.C., have been the same as those in effect for member banks. Nov. 24 12 Maximum rate payable on all types of time and savings deposits: Dec. 1 I6V2 Nov. 1, 1933-Jan. 31, 1935, 3 per cent; Feb. 1, 1935-Dec. 31, 1935, 2i/2 per cent. In effect Sept. 1, 1962. . 161/2 12 5 MARGIN REQUIREMENTS Present legal requirement: [Per cent of market value] Minimum 10 7 3 M^aximurr1 4 22 14 6 Effective date Regulation Oct. 16, July 28, July 10, 1958 1960 1962 Regulation T: For extensions of credit by brokers and dealers on listed securities 90 70 50 For short sales 90 70 50 Regulation U: For loans by banks on stocks 90 70 50 NOTE.—Regulations T and U, prescribed in accordance with Securities Exchange Act of 1934, limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of extension: margin requirements are the difference between the market value (100%) and the maximum loan value. NO 5 5 6 1 When two dates are shown, first-of-month or midmonth dates record changes at country banks, and other dates (usually Thurs.) record changes at central reserve or reserve city banks. 2 Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand balances due from domestic banks. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. 4 Before July 28, 1959, the minimum and maximum legal requirements for central reserve city banks were 13 and 26 per cent, respectively, and the maximum for reserve city banks was 20 per cent. NOTE.—All required reserves were held on deposit with Federal Reserve Banks, June 21, 1917, until late 1959. Since then, member banks have also been allowed to count vault cash as reserves, as follows: Country banks—in excess of 4 and 2l/i per cent of net demand deposits effective Dec. 1, 1959 and Aug. 25, 1960, respectively. Central reserve city and reserve city banks—in excess of 2 and 1 per cent effective Dec. 3, 1959 and Sept. 1, 1960, respectively. Effective Nov. 24, 1960, all vault cash. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS [In millions of dollars] Central Reserve city banks Reserve city banks Item m b e a A m n l k b l s er Y N o e r w k Chicago Re c s i e ty rve C b o a u n n k t s ry m b e a A m n l k b l s er Y N o e r w k C o it f y Other2 C b o a u n n k t s ry City banks City2 Chicago2 Four weeks ending July 25, 1962 Four weeks ending Aug. 22, 1960 Gross demand: Gross demand: Total 129,013 25,196 6,126 50,655 47,036 Total 125,500 24,168 6,177 48,840 46,315 Interbank 14.218 4,259 1,253 7,116 1,590 Interbank 13,561 3,998 1,232 6.802 1,530 U. S. Govt 6,817 1,421 383 2,782 2,231 U. S. Govt 5,576 1,192 323 2,208 1,853 Other 107,978 19,516 4,490 40,757 43,215 Other 106,363 18,978 4,623 39,829 42,933 Net demand 1 106,548 20,197 5,180 41,310 39,861 Net demand 1 105,061 19,869 5,297 40,350 39,545 Time 75,509 8,245 2,617 29,720 34,927 Time 75,957 8,381 2,759 29,595 35,222 Demand balances due Demand balances due from domestic banks. 7,245 116 88 2,067 4,974 from domestic banks. 6,883 111 94 1,944 4,734 Currency and coin 2,771 203 35 874 1,659 Currency and coin 2,748 208 37 855 1,648 Balances with F. R. Balances with F. R. Banks 17,348 3,577 955 7,480 5,337 Banks 17,121 3,506 978 7,323 5,313 Total reserves held 20,119 3,780 990 8,354 6,996 Total reserves held 19,869 3,714 1,015 8,178 6,961 Required 19,562 3,745 986 8,302 6,530 Required 19,353 3,697 1,012 8,137 6,506 Excess 557 35 4 52 466 Excess 516 17 3 41 455 NOTE.—Averages of daily figures. Balances with F. R. Banks are as due from domestic banks. of close of business; all other items (excluding total reserves held and 2 Net demand deposits of the 6 reserve city banks transferred from excess reserves) are as of opening of business. the reserve city total to New York City (3 banks) and the city of Chicago 1 Demand deposits subject to reserve requirements are gross demand (3 banks) average about $315 and $200 millions, respectively; time deposits minus cash items in process of collection and demand balances deposits, $105 and $120 millions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1180 FEDERAL RESERVE BANKS CONSOLIDATED STATEMENT OF CONDITION [In millions of dollars] Wednesday End of month Item 1962 1962 1961 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Aug. July Aug. Assets Gold certificate account 14,665 14,673 14,672 14,661 14,611 14,609 14,665 16,142 Redemption fund for F. R. notes 1,206 1,201 1,199 1,210 1,206 1,208 1,206 1,045 Total gold certificate reserves 15,871 15,874 15,871 15,871 15,817 15,817 15,871 17,187 Cash 380 387 382 395 394 403 380 418 Discounts and advances: For member banks 179 632 314 533 107 90 57 47 For nonmember banks etc 15 15 15 15 11 11 16 42 42 39 36 34 35 42 34 Held under repurchase agreement 1 1 U. S. Govt. securities: Bought outright: Bills 3,007 3,177 3,147 2,877 2,970 2,984 2,834 2,659 Certificates—Special Other 5,745 5,771 9,488 9,488 9,518 9,538 5,745 1,683 Notes 17,341 17,356 13,639 13,639 13,733 13,772 17,341 19,827 Bonds 3,866 3,869 3,869 3,869 3,922 3,952 3,866 3,528 29,959 30,173 30,143 29,873 30,143 30,246 29,786 27,697 Held under repurchase agreement 121 85 112 Total U. S . Govt. securities 29,959 30,173 30,264 29,958 30,143 30,358 29,786 27,697 Total loans and securities 30,196 30,862 30,632 30,542 30,295 30,494 29,902 27,778 4,818 4,496 5,861 4,967 4,415 3,998 4,468 3,867 106 106 106 107 107 107 107 110 Other assets: Denominated in foreign currencies 418 358 358 358 366 317 418 All other 350 370 183 203 223 229 345 187 Total assets 52,139 52,453 53,393 52,443 51,617 51,365 51,491 49,547 Liabilities F. R. notes 28,770 28,962 28,955 28,858 28,821 28,900 28,771 27,605 Deposits: Nlember bank reserves 17,189 17,267 17,373 17,338 16,901 17,110 16,885 16,620 U S Treasurer—General account 333 592 597 593 490 478 390 543 256 197 178 170 169 168 248 270 Other 344 340 336 316 313 311 355 291 18,122 18,396 18,484 18,417 17,873 18,067 17,878 17,724 3,734 3,562 4,473 3,672 3,410 2,874 3,330 2,810 Other liabilities and accrued dividends 66 69 70 68 68 75 68 61 Total liabilities . 50,692 50,989 51,982 51,015 50,172 49,916 50,047 48,200 Capital Accounts Caoital caid in. 459 460 460 460 460 460 459 430 888 888 888 888 888 888 888 817 Other capital accounts 100 116 63 80 97 101 97 100 Total liabilities and capital accounts 52,139 52,453 53,393 52,443 51,617 51,365 51,491 49,547 Contingent liability on acceptances purchased for 80 80 78 74 72 71 80 137 U. S. Govt. securities held in custody for foreign 6,039 6,252 6,298 6,465 6,450 6,407 6,026 5,903 Federal Reserve Notes—Federal Reserve Agents* Accounts 30,504 30,506 30,585 30,576 30,550 30,505 30,513 29,138 Collateral held against notes outstanding: 7,820 7,790 7,790 7,790 7,775 7,745 7,820 9,075 37 125 27 30 12 15 8 9 U. S. Govt. securities 23,840 23,840 23,840 23,855 23,855 23,885 23,840 21, 380 31,697 31,755 31,657 31,675 31,642 31,645 31,668 30,464 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS 1181 STATEMENT OF CONDITION OF EACH BANK ON AUGUST 31, 1962 [In millions of dollars] Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C la le n v d e- m Ri o c n h d - At t l a an- c C a h g i o - L S ou t. is M ap in o n li e s - K C s a a it n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 14,609 706 3,714 731 1,174 970 803 2,540 600 292 657 605 1,817 Redemption fund for F. R. notes.... 1,208 69 283 72 103 101 73 216 51 28 48 38 126 Total gold certificate reserves 15,817 775 3,997 803 1,277 1,071 876 2,756 651 320 705 643 1,943 F. R. notes of other Banks 451 49 88 55 20 30 56 28 13 35 16 21 40 Other cash 403 30 71 21 34 27 34 67 21 12 12 16 58 Discounts and advances: Secured by U. S. Govt. securities.. 90 7 24 1 * 11 3 23 2 3 11 5 * Other 11 1 3 1 1 * 1 2 * * * 1 1 Acceptances: Bought outright 35 35 Held under repurchase agreement.. U. S. Govt. securities: 30,246 1,571 7,497 1,726 2,541 1,966 1,623 5,077 1 197 653 1 317 1 223 3 855 Held under repurchase agreement.. 112 112 Total loans and securities 30,494 1,579 7,671 1,728 2,542 1,977 1,627 5,102 1,199 656 1,328 1,229 3,856 Cash items in process of collection... 5,061 362 975 301 414 392 365 819 222 163 262 237 549 Bank premises 107 3 9 3 8 5 14 24 6 4 7 13 U Other assets: Denominated in foreign currencies. 317 15 i 87 18 30 14 17 44 11 7 13 18 43 All other 229 14 55 13 18 15 13 38 9 6 10 9 29 Total assets 52,879 2,827 12,953 2,942 4,343 3,531 3,002 8,878 2,132 1,203 2,353 2,186 6,529 Liabilities F. R. notes 29,351 1,732 6,796 1,818 2,576 2,402 1,693 5,368 1,239 571 1 205 872 3 079 Deposits: 17,110 667 4,634 762 1,264 725 917 2,561 626 447 836 997 2 674 U. S. Treasurer—General account.. 478 34 82 27 27 23 22 63 37 20 49 21 73 Foreign 168 8 251 9 15 7 9 22 5 4 7 9 22 Other 311 2 256 1 2 2 1 1 * * 44 18,067 711 5,023 799 1,308 757 949 2,647 668 471 893 1,028 2,813 Deferred availability cash items 3,937 312 724 239 319 298 278 644 172 126 191 201 433 Other liabilities and accrued dividends 75 4 19 4 6 c 4 12 3 2 3 3 10 Total liabilities 51,430 2,759 12.562 2,860 4,209 3,462 2,924 8,671 2,082 1,170 2,292 2,104 6,335 Capital Accounts Capital paid in 460 22 124 26 43 21 25 65 16 11 19 26 62 Surplus 888 42 243 51 83 40 47 124 31 20 37 50 120 Other capital accounts 101 4 24 8 8 6 18 3 2 < 6 12 Total liabilities and capital accounts.. 52,879 2,827 12,953 2,942 4,343 3,531 3,002 8,878 2,132 1,203 2,353 2,186 6,529 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent): Aug 31, 1962 33.4 31.7 33.8 30.7 32.9 33.9 33.2 34.4 34.1 30.7 33.6 33.8 33.0 July 31 1962 .. 33 7 34 5 34.2 32.8 31.1 33.6 33.1 35.2 32.4 30.2 33 2 33 4 34 1 Aug. 31, 1961 37.6 34.0 38.7 36.6 37.4 38.4 33.9 37.0 35.7 33.8 39.0 38.6 39.8 Contingent liability on acceptances purchased for foreign correspondents 71 3 19 i. A 10 4 10 Federal Reserve Notes—Federal Reserve Agent's Accounts F. R. notes outstanding (issued to Bank) 30 1,792 7 019 1 877 731 490 1 759 484 1.295 663 1 937 Collateral held against notes outstanding: 7,745 480 1,600 465 720 700 485 1,400 340 130 310 215 900 15 2 11 U. S Govt. securities 23,885 1,390 5,600 1,500 2,100 1,820 1,400 4,300 1,010 560 950 755 2,500 31,645 1,870 7,200 1,967 2,820 2,520 1,885 5,700 1,352 690 1,271 970 3,400 1 After deducting $230 million participations of other F. R. Banks. 3 After deducting $52 million participations of other F. R. Banks. 2 After deducting $117 million participations of other F. R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1182 FEDERAL RESERVE BANKS; BANK DEBITS MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS [In millions of dollars] Wednesday End of month Type of holding 1962 1962 1961 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Aug. July Aug. Discounts and advances—Total 194 647 329 548 118 101 73 47 Within 15 days 175 629 327 546 104 87 54 45 16 days to 90 days. 19 18 2 2 14 14 19 2 Acceptances—Total 43 42 39 36 34 35 43 34 Within 15 days 13 11 9 10 11 9 13 12 16 days to 90 days. 30 31 30 26 23 26 30 22 U. S. Government securities—Total 29,959 30,173 30,264 29,958 30,143 30,358 29,786 27,697 Within 15 days i 4,118 4, 157 501 437 403 407 4,048 266 16 days to 90 days. 1,565 1,621 1,679 4,837 4,844 4,968 1,565 1,192 91 days to 1 year 11.687 11,795 15,818 12,418 12,517 12,547 11,584 11,853 Over 1 year to 5 years 10;i56 10,167 9,833 9,833 9,940 9,987 10.156 11,914 Over 5 years to 10 years 2,219 2.219 2,219 2,219 2,225 2,233 2,219 2,252 Over 10 years 214 214 214 214 214 216 214 220 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS [In millions of U. S. dollar equivalents] End of period Total P st o e u rl n in d g s C d a o n l a l d ar ia s n F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an g N u l e a i t l n h d d e e s r r - s f S ra w n i c ss s 1962—Feb... . 9 7 Mar..., 84 50 32 Apr... 50 32 M ay.. 134 50 50 32 BANK DEBITS AND DEPOSIT TURNOVER Debits to demand deposit accounts 1 Annual rate of turnover [In billions of dollars] of demand deposits * All Leading centers 337 other Leading centers 337 other Period reporting reporting reporting centers New York 6 others 2 centers 3 New York 6 others 2 centers 3 N.S.A. S.A. N.S.A. S.A. N.S.A. S.A. N.S.A. S.A. N.S.A. S.A. N.S.A. S.A. N.S.A. 1954 ....... 1,887.4 738.9 390.1 758.4 42.3 25.8 19.2 1955 2,043.5 766.9 431.7 845.0 42.7 27.3 20 4 1956 2,200.6 815.9 462.9 921.9 45.8 28.8 21.8 1957. 2,356.8 8S8.5 489.3 979.0 49.5 30.4 23 0 1958. . .. 2,439.8 958.7 487.4 993.6 53.6 30.0 22 9 1959 2,679.2 1,023.6 545.3 1,110.3 56.4 32.5 24.5 1960 2,838.8 1,102.9 577.6 1,158.3 60.0 34.8 25.7 1961. 3,111.1 1,278.8 622.7 1,209.6 70.0 36.8 26 1 1961—Aug 255.5 105.4 100.9 51.4 51.4 101.3 103.2 71.1 66.9 37.2 36.1 26.4 26.1 Sept 246.6 107.8 100.3 52.0 49.0 102.0 97.3 72.3 71.4 37.4 36.9 26.5 26 5 Oct 274.7 113.6 113.7 54.0 54.3 104.7 106.7 75.6 75.1 38.3 37.7 27.0 27.0 Nov . 272.6 115.2 112.5 54.4 54.2 104.2 105.9 75.3 75.0 38.5 37.9 26.8 27.2 Dec 286.6 114.0 120.3 55.0 57.5 104.8 108.8 73.4 77.4 38.7 39.5 26.8 27.5 1962 Jan 294.6 110.3 118.1 58.2 61.5 109.3 115.1 70.9 71.6 40 6 40 3 27 7 27 6 Feb 239.5 103.3 94.3 54.4 49.0 105.4 96.1 68.1 64.6 38.4 36.3 27 1 25 9 Mar 293.2 118.1 124.7 57.5 59.7 107.9 108.8 78.2 80.5 40.9 43.2 27.6 27.7 Apr . 281.5 118.1 117.2 59.1 58.0 111.3 106.3 78.4 76 9 41.7 42 6 28 2 27 3 May 295.5 119.1 122.1 57.6 59.8 110.3 113.6 78.8 79.0 40.8 41.5 28 0 28 4 June .. 291.8 115.7 121.9 57.9 59.4 108.8 110.5 77.3 83.0 41.3 43.0 27.8 28.7 July 279.7 114.4 111.4 59.0 57.5 112.3 110.7 m.3 r76.1 42.1 41 2 28 6 28 5 Aug. 281.2 115.8 110.8 57.4 57.5 110.8 112.9 78.8 74.3 *41.4 »39.9 P28.3 P27.9 1 Excludes interbank and U. S. Govt. demand accounts or deposits. 3 Before April 1955, 338 centers. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco, and Los Angeles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. CURRENCY 1183 DENOMINATIONS IN CIRCULATION [In millions of dollars] Total Coin and small denomination currency Large denomination currency End of period in circulation i Total Coin $1 2 $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 1,048 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 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 2,027 ,369 78 2,196 6,734 10,194 9,192 2,771 5,704 292 407 3 14 1958 32,193 22,856 2,182 ,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959 32,591 23,264 2,304 ,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960 32,869 23,521 2,427 ,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961—July 32,477 23,299 2,475 ,460 88 2,151 6,622 10,505 9,177 2,761 5,862 242 304 3 5 Aug 32,609 23,390 2,491 ,463 89 2,154 6,647 10,547 9,219 2,768 5,898 242 302 3 5 Sept 32,658 23,415 2,506 ,475 88 2,163 6,656 10,527 9,243 2,766 5,926 241 301 3 5 Oct 32,836 23,552 2,532 ,494 89 2,180 6,671 10,586 9,283 2,773 5,959 241 301 3 5 Nov 33,538 24,154 2,563 ,534 90 2,246 6,866 10,856 9,384 2,814 6,021 241 299 3 5 Dec 33,918 24,388 2,582 ,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962—Jan 32,774 23,400 2,552 ,485 91 2,178 6,575 10,519 9,374 2,804 6,027 239 297 3 5 Feb 32,880 23 530 2,562 ,477 91 2,178 6,644 10,579 9,350 2,791 6,017 239 296 3 5 Mar. 33,018 23,651 2,580 ,484 91 2,188 6,686 10,622 9,367 2,795 6,032 238 294 3 5 Apr 33,159 23,742 2,612 ,497 92 2,190 6,680 10,670 9,418 2,812 6,066 238 294 3 5 May 33,518 24,057 2,637 ,515 93 2,225 6,789 10,798 9,461 2,831 6,089 238 295 3 5 June 33,770 24,267 2,652 ,516 93 2,231 6,837 10,937 9,503 2,850 6,111 239 295 1 5 July 33.869 24,327 2,671 .512 94 2,214 6.814 11,021 9.542 2,868 6,134 239 294 3 5 1 Outside Treasury and F.R. Banks. Before 1955 the totals shown as 2 Paper currency only; $1 silver coins reported under coin. in circulation were less than totals of coin and paper currency shown by denomination by amounts of unassorted currency (not shown separately). NOTE.—Condensed from Circulation Statement of United States Money, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION [In millions of dollars] Held in the Treasury Currency in circuhition l Total out- Held by Kind of currency s J t u a 1 l n y 9 d 6 3 i 2 n 1 g , A g a s o s g l s i d a l e v i c n a e u s r n r t d ity Tr c e a a s s h ury B F a F a . n o n R d r k . s B a F g a a . e n n R n d k t . s s Ju 1 ly 9 6 3 2 1, Ju 1 n 9 e 6 3 2 0, Ju 1 ly 96 3 1 1, certificates agents Gold 16,147 (15,871) 2 276 Gold certificates (15,871) 3 13,055 21816*" F R notes 30,515 78" 1,739 28,698 28,586 27.398 Treasury currency—Total 5,603 (2,255) 50 381 5,171 5,183 5,079 Standard silver dollars 487 74 39 10 363 360 332 Silver bullion . . . . 2,181 2,181 Silver certificates (2 255) 305 1,950 1,979 2,047 Subsidiary silver coin 1,713 5 34 1,673 1.663 1.555 Minor coin 642 2 6 635 629 589 United States notes 347 4 26 317 318 315 In process of retirement 4 234 * 233 233 243 Total—July 31, 1962. 5 52,265 (18,126) 404 13,055 4,937 33,869 June 30 1962 5 52,195 (18,435) 379 13,342 4,705 33,770 July 31 1961 552,171 (19,571) 465 14,407 4,822 32,477 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Estimated for other items; gold certificates are secured by gold, and silver certificates totals for Wed. dates are shown in table on p. 1175. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $156 million reserve against United States notes. are shown in parentheses. 3 Consists of credits payable in gold certificates: (1) the Gold Certificate Fund—Board of Governors, F.R.S., and (2) the Redemption Fund for NOTE.—Condensed from Circulation Statement of United States F.R. notes. Money issued by the Treasury. For explanation of currency reserves and 4 Redeemable from the general fund of the Treasury. (F.R. Banks security features, see the Circulation Statement or the Aug. 1961 BULL.. and national banks no longer have liability for their currency included p. 936. herein, as payment therefor has been made to the Treasury as required by law.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1184 MONEY SUPPLY MONEY SUPPLY AND RELATED DATA [In billions of dollars] Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U.S. deposits deposits Govt. Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d ed - l Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d ed - i d d e e p m os a i n ts d i 1954—Dec 132.3 27.4 104.9 48.4 135.6 27.9 107.7 48.0 5.0 1955—Dec 135.2 27.8 107.4 50.2 138.6 28.4 110.2 49.6 3.4 1956—Dec 136.9 28.2 108.7 52.1 140.3 28.8 111.5 51.4 3.4 1957—Dec 135.9 28.3 107.5 57.5 139.3 28.9 110.4 56.7 3.5 1958—Dec 141.2 28.6 112.6 65.5 144.7 29.2 115.5 64.6 3.9 1959—Dec 142.0 28.9 113.2 67.4 145.6 29.5 116.1 66.6 4.9 I960—Dec 141.2 28.9 112.2 72.7 144.7 29.6 115.2 72.1 4.7 1961—Dec 145.7 29.6 116.1 82.5 149.4 30.2 119.2 81.8 4.9 1961—Aug 142.9 29.1 113.9 79.8 141.6 29.2 112.4 80.2 5.5 Sept 143.5 29.2 114.3 80.5 143.1 29.3 113.8 80.9 5.2 Oct 144.2 29.3 114.9 81.3 144.5 29.4 115.1 81.5 6.4 Nov 144.9 29.4 115.5 82.0 146.3 29.7 116.6 81.5 5.8 Dec 145.7 29.6 116.1 82.5 149.4 30.2 119.2 81.8 4.9 1962—Jan 145.9 29.7 116.3 84.1 149.0 29.5 119.5 83.5 3.8 Feb 145.5 29.7 115.8 85.8 145.3 29.3 115.9 85.4 4.6 Mar 145.7 29.9 115.8 87.5 144.2 29.6 114.6 87.4 5.1 146.1 30.0 116.0 88.7 146.2 29.8 116.4 88.9 3.8 M^y .*;;;.' 145.7 30.0 115.7 89.6 143.6 29.8 113.8 89.9 7.0 June 145.6 30.1 115.4 90.7 144.0 30.0 113.9 91.1 7.2 July 145.7 30.2 115.5 r91.8 r144.2 30.3 r113.9 92.2 7.1 145.2 30.2 114.9 92.5 143.8 30.3 113.5 93.0 6.8 Aug.P. . . Half month 146.2 30.0 116.2 89.3 145.0 29.9 115.2 89.5 6.3 1962—May 1., 145.3 30.0 115.3 89.8 142.3 29.7 112.6 90.2 7.7 June 1., 145.6 30.1 115.5 90.4 144.3 30.1 114.2 90.9 6.1 2., 145.5 30.2 115.3 90.9 143.6 30.0 113.6 91.4 8.3 July 1., 145.7 30.2 115.5 91.6 144.0 30.5 113.4 92.1 8.2 145.7 30.2 115.5 r91.9 144.7 30.2 114.5 92.3 6.0 Aug. 1.. 145.6 30.2 115.4 92.2 145.0 30.4 114.6 92.7 5.4 2p 144.8 30.2 114.6 92.7 142.6 30.2 112.4 93.2 Not seasonally adjusted Not seasonally adjusted Money supply Money supply en W di e n e g k — Total C c u o n r m e re n p n t o c - y D c d o e e n m m p e o n a p s t n o it d - d ju e T p s a i t m o d e s - d e i t 1 s d d e G e U p m o o .S v a s n . i t t . d s! en W di e n e g k — Total C c u o n r m e re n p n t o c - y D c d o e e n m m p e o n p a s t n o it d - d ju e T s p a i t d m o e s - d e i t i s d d e G e U p m o o .S v a s n . i t t . d s1 1961—May 3.. 142.4 28.6 113.9 77.0 3.2 1962—May 145.9 29.5 116.4 89.2 4.8 10., 141.7 28.9 112.9 77.4 3.9 145.1 30.0 115.2 89.5 6.3 17.. 141.1 28.8 112.3 77.6 4.5 144.6 29.8 114.7 89.7 6.5 24.. 139.6 28.7 111.0 77.9 5.8 142.0 29.8 112.2 90.1 8.0 31.. 140.0 28.6 111.4 78.1 5.0 142.1 29.6 112.5 90.4 7.5 June 7.. 140.9 29.0 111.9 78.3 4.0 June 6. 143.5 30.0 113.5 90.7 7.1 14.. 142.5 29.0 113.6 78.4 2.2 13. 144.8 30.1 114.6 91.0 5.3 21., 141.9 28.9 113.0 78.6 5.7 20. 145.0 30.0 114.9 91.1 6.8 28., 140.1 28.7 111.4 78.8 5.7 27. 142.8 29.9 112.9 91.4 8.6 July 1 5 2 . ., , 1 1 4 4 0 1 . . 5 3 2 29 9 . . 4 2 1 11 1 1 1 . . 9 3 7 7 9 9 . . 3 3 4 6 . . 5 1 July if: 1 1 4 4 3 3 . . 3 9 3 30 0 . . 6 2 1 1 1 1 3 3 . . 1 4 9 92 1 . . 1 9 9 8 . . 5 2 19., 141.9 29.2 112.7 79.5 3.1 18. 144.7 30.4 114.3 92.2 6.6 26., 141.8 29.0 112.8 79.7 2.8 25. 144.3 30.2 114.2 92.3 6.0 Aug. 2. 142.4 29.0 113.4 79.9 6.0 Aug. 1. 145.0 30.0 114 9 92.5 5.8 9.. 142.4 29.4 113.0 80.0 5.1 8. 145.2 30.5 114.7 92.6 5.6 16. 142.4 29.3 113.1 80.2 4.8 15. 144.8 30.4 114.4 92.8 5.0 23. 140.5 29.2 111.3 80.3 6.1 22. 142.5 30.4 112.1 93.0 5.4 30. 140.9 29.0 111.9 80.4 5.6 142.7 30.1 112.6 93.3 7.9 Sept. 6. 142.0 29.4 112.6 80.6 5.4 Sept. 5P. 143.8 30.4 113.5 93.5 7.8 13. 143.6 29.4 114.2 80.8 3.6 12.. 20. 144.6 29.3 115.3 80.9 4.4 19.. 1 At all commercial banks. the U. S. Govt., less cash items in process of collection and F. R. float; (2) foreign demand balances at F. R. Banks; and (3) currency outside the NOTE.—Averages of daily figures. For back data see Aug. 1962 BULL., Treasury, the F. R. S. and the vaults of all commercial banks. Time pp. 941-51. Money supply consists of (1) demand deposits at all com- deposits adjusted are time deposits at all commercial banks other than mercial banks other than those due to domestic commercial banks and those due to domestic commercial banks and the U. S. Govt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANKS AND THE MONETARY SYSTEM 1185 CONSOLIDATED CONDITION STATEMENT [In millions of dollars] JAssets a L n i d a b c i a li p ti i e ta s l Total Bank credit assets, Treas- E>ate Gold s r t c o e u i a u n n u r n r c y g t d - - y - Total Lo n a e n t s, Tota U l . S. G m C o e a o v r n c m e d i r a - n l men R F t e e d s s e e e c r r v u a e l rities Other O s ri e t t c h ie u e s - r c l T a i i a a n p t o i n b e i e t t d i a t s a l l - l, c d u e T r a p o r n o e t d n s a i c l t y s C c m o a a n a u p n i c e n s i - d t c t t a s . , l savings Banks banks 1929—June 29 4,037 ? 019 58,642 41 08? 5,741 5,499 216 ?6 11,819 64,698 55,776 8 922 1933—June 30 4,031 286 42,148 21,957 10,328 8 199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30 17,644 5963 54,564 22,157 23,105 19417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31 22,737 247 64,653 ?6,605 29,049 25 511 ,254 1,?84 8,999 90,637 82,811 7,826 1945—Dec. 31 20,065 339 167,381 30,387 128,417 101288 24,262 2,867 8,577 191,785 180,806 10,979 1947—Dec. 31 22,754 ,562 160,832 43,023 107,086 81 199 ,559 ,328 10,723 188,148 175,348 12,800 1950—Dec. 30 22,706 4,636 171,667 60,366 96,560 72 894 ?0,778 2,888 14,741 199,009 184,384 14,624 1959—Dec. 31 19,456 5,311 255,435 135,867 93,497 65 801 26,648 1,048 26,071 280,202 256,020 24,186 I960—Dec. 31 17,767 ,398 266,782 144,704 95,461 67 242 ?7,384 835 26,617 289,947 263,165 26 783 1961_ June 30 17,550 5,437 269,828 145,784 96,121 68 104 ?7,253 764 27,923 292,816 265,604 27,212 1961 -Aug.30 17,500 ,600 272,100 145,700 98,500 70 500 ?7,300 800 28,400 295,100 266,400 28,700 Sept.27 17,500 5,600 276,600 147,200 100,200 72 400 27,100 700 29,200 299,600 271,100 28,500 Oct. 25 17,300 5,600 278,300 147,800 101,500 72 800 ?8,000 700 29,000 301,200 272,400 28,800 Nov. 29 17,000 5,600 280,000 149.000 101,900 72 400 ?8,800 800 29,100 302,600 273,000 29,600 Dec. 30 16,889 5,585 285,992 154,017 102,308 72,715 28,881 712 29,667 308,466 280,397 28,070 1962—Jan. 31 16,800 5,600 282,600 150,000 102,700 73,500 28,500 700 29,800 305,000 276,300 28,600 Feb. 28 16,800 ,600 283,000 151,500 101,400 72,300 ?8,400 700 30,200 305,400 276,400 29,000 Mar. 28 16,600 5,600 284,800 ,300 100,400 71000 ,800 700 31,100 307,000 278,100 28,900 25 rp 16,500 5,600 287,200 154,800 100,600 70,700 29,000 700 31,800 309,300 280,600 28.700 May 30 P 16,400 5,600 288,600 155,900 100,900 70,600 ?<),600 700 31,800 310,700 281,400 29,300 June 27 P 16,400 ,600 291,300 158,100 100,500 70,500 ?9,400 700 32,700 313,300 284,700 28,600 July 25 rp 16,200 5,600 291,200 157,700 100,200 70,300 29.200 700 33,400 313,100 284,700 28,400 Aug. 16,100 5,600 293,300 158,800 100,800 70,000 30,100 700 33,700 315,000 285,000 29,900 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted i Not seasonally adjusted Time 3 U.S. Government Date Total o b r u C e a t n u n s c i r k d - y s e d ju m e D p s a a t o d e e n s - - d d i t 2 s Total o b r u C e a t n u n s c i r k d - y s e d j e m u D p a s a o t d e e n s - - d d it 2 s Total m b C e a o r n c m k ia s - l M s b a a v u n i t n k u g s a 4 s l S P a S t o e v y s m i s t n a - g l s e n F i e o g t r n 5 - , T h c i u r o n a e r l g s a y d h s s - - sa c m a c v o A n i e i m a n t d r l g - - s B F a A . n R t k . s banks 1929—June 29 26,179 3,639 22,540 28,611 19,557 8,905 149 J65 204 381 36 1933—June 30.... 19,172 4,761 14,411 21,656 10,849 9,621 1,186 50 264 852 35 1939 Dec 30 .. 36,194 6,401 29,793 27,059 15,258 10,523 1,278 1,217 2,409 846 634 1941—Dec. 31 48,607 9,615 38,992 27,729 15,884 10,532 1,313 1,498 2,215 1,895 867 1945 Dec 31.... 102,341 26,490 75,851 48,452 30,135 15,385 2,932 2,141 2,287 24,608 977 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,247 36,314 20,009 2,923 2,518 1,293 2,989 668 1959—Dec. 31.... 140,200 28,200 112,000 144,824 29,422 115,402 101,779 65,884 34,947 948 3,203 391 5,319 504 1960—Dec. 31.... 139,200 28,200 111,000 144,458 29,356 115,102 108,468 71,380 36,318 770 3,184 377 6,193 485 1961—June 30.... 140,900 28,200 112,700 139,649 29,361 110,288 117,280 79,092 37,486 702 1,250 379 6,638 408 1961-Aug. 30.... 141,300 28,300 113,000 140,000 28,500 111,500 118,600 80,200 37,600 700 1,300 400 5,600 500 Sept. 27.... 141,900 28,500 113,400 141,000 28,600 112,400 119,400 80,800 37,900 700 1,400 400 8,400 500 Oct. 25.... 143,800 28,800 115,000 144,300 28,700 115,700 120,100 81,400 37,900 700 1,300 400 6,000 400 Nov. 29.... 143,400 28,600 114,800 145,200 29,100 116,200 119,800 81,200 38,000 700 1,200 400 5,700 500 Dec. 30.... 144,800 28,700 116,100 150,578 30,053 120,525 121,216 82,145 38,420 651 1,497 422 6,219 465 1962—Jan. 31.... 143,700 29,100 114,600 145,600 28,700 117,000 123,400 84,200 38,600 600 1,300 500 5,200 400 Feb. 28.... 144,400 29,300 115,100 143,600 28,900 114,800 125,200 85,800 38,800 600 1,300 400 5,400 400 Mar. 28.... 144,000 29,200 114,800 141,900 28,900 113,000 127,600 87,700 39,200 600 1,300 400 6,500 500 Apr. 25^.. 145,700 29,200 116,500 145,800 28,900 116,800 128,400 88,600 39,200 600 1,300 400 4,200 600 May 30*... 143,400 29,200 114,200 141,800 29,300 112,500 129,900 90,000 39,300 600 1,300 400 7,500 600 June 27*... 143,400 29,300 114,100 141,600 29,300 112,200 131,300 91,000 39,700 600 1,400 400 9,400 600 July 25rP.. 144,300 29,500 114,800 144,200 29,600 114,600 132,400 91,900 39,900 600 1,300 400 5,900 600 Aug. 29P. .. 143,000 29,400 113,600 141,700 29,600 112,100 133,500 92,900 40,000 600 1,200 400 7,800 500 1 Series begin in 1946; data are available only for last Wed. of the month. NOTE.—Includes all commercial and mutual savings banks, F. R. Banks, 2 Other than interbank and U. S. Govt., less cash items in process of Postal Savings System, and Treasury currency funds (the gold account, collection. Treasury currency account, and Exchange Stabilization Fund). 3 Other than interbank, Treasurer's open account, and those of Postal For description of statement and back figures (except for seasonally Savings System in banks. adjusted money supply), see Jan. 1948 BULL., pp. 24-43, except that 4 Before June 30, 1947, includes a small eircunt of demand deposits. stock of F. R. Banks held by member banks is included in other securities Beginning with June 1961 includes grrcurts reported by insured mutual and in capital and misc. accounts, net, and balances of the PSS and the savings banks as demand deposits, previously reported as tirre deposits ESF with the Treasury are netted against capital and misc. accounts, net. or other liabilities. For description of seasonally adjusted money supply series and back 5 Reclassification of deposits of foreign central tanks in May 1961 data, see Aug. 1962 BULL., pp. 941-51. reduced this item by $1,900 million ($l,5C0 million to time and $<C0 Except on call dates, figures are partly estimated and are rounded to million to demand deposits). nearest $100 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1186 COMMERCIAL AND MUTUAL SAVINGS BANKS PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK [Amounts in millions of dollars] Loans and investments Deposits Total assets— Cla a s n s d o d f a b t a e nk Total Loans U S .S e . curities a C ss a e s t h s1 c b T a i a l l o p i i n a t i t d i t a - e a l s l Total1 D In e t - erbank1 Dema O nd ther r B o o w r- - c c T a o a o p u c t i - n a ta t l s l b N a b u o n e m f k r s - Govt. Other co a u c n - ts2 mand Time G U o .S v . t. Other Time 3 All banks: 1941—Dec. 31.., 61,126 26,615 25,511 8,99927,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31... 140,227 30,362101,288 8,57735,415177,332165,612 14,065 105,935 45,613 22710,54214,553 1947_Dec. 31*., 134,924 43,002 81,199 10,72338,388 _1.7_5,,.0.91.161,86512,793 240 1,346 94,381 53,105 6611,94814,714 1960—Dec. 31... 238,623144,764 67,242 26,61753,022 298,1.2_6. 226666,19617,080 1,800 5,949 133,408107,959 167 24,53913,986 1961—June 30.., 242,192146.164 68,104 27,92346,457 295 567 262,54713,633 462 6,368125.219116,865 452 25.40513.977 Aug. 30. ., 245,880147,030 70,490 28,360 43,170 295 760 260,56013,340 460 5,340 123,250 118,170 1,88025,57013,968 Dec. 30... 256,700154,318 72,715 29,667 57,368 321 394 287,176 17~,914 482 5,952 141,979120,848 482 26",22713,946 1962—Jan. 31... 255,320152,030 73,470 29,820 47,740 310,470 274,220 14,190 480 4,910 560 123,080 2,200 26,280 13,943 Feb. 28... 256,100153,580 72,340 30.180 48;540 311,910 275,170 14,110 510 5,090 570 124.890 2,310 26i.39013,941 Mar. 28... 257,520155.460 70,960 31 i100 45;560 310,230 273.72013,750 510 6,260 125,980 127.220 2.420 26i.47013,930 Apr. 25 r*. 259,550156,800 70,910 31.840 46 190 312.810 276,310 13,730 520 3,920130,120 128,020 2,360 26560 13,920 May 30*., 260,250157.790 70.620 31;840 46.210 313,470 276,770 13,200 520 7,170 270129,610 2,070 26760 13,926 June 27*., 263,150160,000 70,480 32;670 47,220 317,470 280,62013,580 530 9,150 370130,990 2,360 26840 13,932 July 25 rP, 263,150159,470 70,320 33!360 45;600 315.920 279,45013,800 530 5,580 450132,090 1,930 26,83013,931 Aug. 29*. , 265,040161,360 69,990 33;690 45;620 317;740 279;95013,810 520 7.510 900133,210 2,750 27,01013,931 Commercial banks: 1941—Dec. 31.., 50,746 21,714 21,808 7,22526,551 79,104 71,283 10,982 44,349 15,952 23 7,173 114 ,,278 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806160,312150,227 14,065 105,921 30,241 219 8.950 1144,,1011 1947—Dec. 3H. 116,284 38,057 69,221 9,006 37.,502155,377144,10312,792 240 1,343 94,367 35,360 6510.05914,181 1960—Dec. 31... 199,509117,642 61,00320,864 52,150 257,552 222299,84317,079 1,799 5,945133,379 71,641 163 20,986 13,472 1961—June 30.. 201,848117.953 61,824 22.,07145,595 253,749224,99713,633 461 6,362 125,161 79,380 443 2K74513,463 Aug. 30. . 205,120118,450 64,160 22,510 42,370 253,580 222,87013,340 460 5,340123,190 80,540 1,880 21,87013,454 Dec. 30.. 215,441 124,925 66,57823,937 56,432 278,561248,68917,914 481 5,946 141,920 82,429 47122,45913,432 1962—Jan. 31.. 213,730122,420 67,240 24070 46,910 267 400 235, 14,190 480 4,910 131,500 84,480 2,200 22,,50013,430 Feb. 28.. 214,260123.780 66,030 24;450 47.670 268 540 236 14,110 510 5,090 130,510 86.130 2,310 22,570 131428 Mar. 28.. 215,180125,380 64,440 25360 44,680 266 340 234, 13,750 510 6,260 125,920 87.990 2.420 22,,16 3013,4•1 7" Apr. 25*., 217,260126.490 64,610 26.160 45,390 269 050 237; 13,730 520 3,920 130,060 88,840 2,360 22,,'75013,407 May 30*. 217,710127,220 64,340 26150 45,390 269 440 237; 13,200 520 7,170 126,210 90,280 2,070 221..'91013,414 June 27*. 220,360129,170 64,210 26,980 46,370 273 160 240; 13,580 530 9,150 126,310 91,330 2,360 221,",95013,420 July 25*. 219,980128,280 64,040 27;660 44,780 271 250 239; 13,800 530 5,558800 127,390 92,160 1.930 221,,'96013,419 Aug. 29*>. 221,700129,970 63,710 28020 44,840 272,940 239 13,810 520 7,510 124,840 93,180 2,750 23,,14013,420 Member banks: 1941—Dec. 31... 43,521 18,021 19,539 5,96123,123 68,121 61,71710,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.. 107,183 22,775 78,338 6,070 29,845138,304 129,67013,576 64 2122,179 69,640 24,210 208 7.589 6,884 1947—Dec. 31... 97,846 32,628 57,914 7,304 32,845132,060 122,52812,353 50 1,176 80,609 28,340 54 8.464 6,923 1960—Dec. 31.. 165,619 99,933 49,10616,579 45 ,75"6*216 193,02916,436 1,639 5,287 112.393 57,272 13017,398 6,174 1961—June 30.. 168.049 99.992 50,36117,696 40,084 213 189,22613,077 276 5,731 105,568 64,574 38218.027 6,141 Aug. 30. . 170,850100,379 52,35818,113 36,940 213 186,81612,787 270 4,738 103,427 65,594 1,82218,141 6,137 Dec. 30.. 179,599106,232 54,05819,308 49,579 235 112 209,63017,195 303 5,381 119,595 67,157 43818,638 6,113 1962—Jan. 31.. 177,966103,983 54,573 410 40>,, 971_22.4 ,9,61197,48013,623 305 4,376 110,287 68,889 2,138 18,683 6,107 Feb. 28.., 178,389105,144 53,467 778 41,894 226,210 119988,38013,560 332 4,525109,671 70.292 2.264 1188,749 6,099 Mar. 28.., 179,254106.600 52,036 20,618 39,091224; 196,59513,209 335 5,631 105,552 71,868 2,38018.785 6,085 Apr. 25P., 180,872107,424 52,10321, 662 226 198,67413,178 340 3,506 109,048 72,602 2,319 18,877 6,074 May 30*., 181,180107,980 51,913 21,287 39702 226 198,97812,689 345 6,463105,629 73,852 2,002 1"9 015 6,073 June 27*., 183,588109,585 51,942 22, 40i686 230',003 202,23213,048 355 8,309105,829 74,691 2,29319,049 6,070 July 25*., 183,008108,767 51,612 22,629 39,001227,806 200,48213,241 347 4,952 106,611 75,331 1,870 19.060 6,062 Aug. 29*>. 184,398110,331 51,149 22,91839,107 229,231200,66713,232 338 6,695 104,280 76,122 2,68219,212 6,061 Mutual savings banks: 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. 3H., 18,641 4,944 11,978 1,718 886 19,714 17,763 17,745 1,889 533 1960—Dec. 31... 39,114 27,122 6,239 5,752 872 40,574 36,353 36,318 3.553 514 1961—June 30... 40,344 28,211 6,281 5,852 862 41,818 37,551 37.487 3.660 514 Aug. 30. ., 40,760 28,580 6,330 5,850 800 42,180 37,690 37,630 3,700 514 Dec. 30.., 41,259 29,393 6,136 5,730 936 42,833 38,487 38,420 3,768 514 1962—Jan. 31... 41,590 29,610 6,230 5,750 830 43,070 38,660 38,600 3,780 513 Feb. 28.., 41,840 29,800 6,310 5,730 870 43,370 38,820 38,760 3.820 513 Mar. 28... 42,340 30,080 6,520 5,740 880 43,890 39,290 39.230 3,840 513 Apr. 25 r* 42,290 30,310 6,300 5,680 800 43,760 39,240 39,180 3,810 513 May 30*.. 42,540 30,570 6,280 5,690 820 44,030 39,390 39,330 3,850 512 June 27*., 42,790 30,830 6,270 5,690 850 44,310 39,720 39,660 3,890 512 July 25 r*, 43,170 31,190 6,280 5,700 820 44,670 39,990 39,930 3,870 511 Aug. 29*. 43.340 31,390 6,280 5,670 780 44,800 40,090 40,030 3,870 511 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL AND MUTUAL SAVINGS BANKS 1187 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued [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 G U o S . v e S c t . . urit O ie t s her a C ss a e s t h s1 c c b T o a i a l a l o u p i i n c a t t i n d i - t a - e t a l s s l 2 Total i m D I a n e n t - e d rba T n i k m 1 e U. D S. em O an th d er Time r B i o n o w g r s - - c c T a o a o p u c t i n - a ta t l s l b N a b u o n e m f k r s - Govt. Other Reserve city member banks: New York City:6 1941—Dec. 31 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1960—Dec. 31 27,726 18,465 6,980 2,282 10,301 39,767 33,761 5,289 1,216 1,217 21,833 4,206 3,554 15 1961—June 30 28,220 18,054 7,642 2,524 8,616 38,741 32,225 4,211 167 1,380 19,832 6,635 121 3,634 15 Aug. 30 28,505 17,643 8,186 2,676 7,350 37,795 30,352 3,735 166 888 18,639 6,924 902 3,656 15 Dec. 30 30,297 19,535 7,862 2,900 11,164 43,538 36,818 5,296 191 1,267 23,129 6,935 283 3,683 13 1962—Jan. 31 29,672 18,584 8,152 2,936 9,029 40,856 33,050 4,199 182 978 20,463 7,228 949 3,696 13 Feb. 28 29,895 19,067 7,716 3,112 9,878 41,965 33,944 4,241 202 862 21,163 7,476 1,094 3,706 13 Mar. 28 29,650 19,494 6,826 3,330 8,480 40,147 32,496 3,885 209 1,255 19,481 7,666 1,073 3,689 13 Apr. 25* 29,855 19,380 6,948 3,527 8,063 39,851 32,214 3,859 208 860 19,667 7,620 1,065 3,714 13 May 30* 29,534 19,223 7,167 3,144 8,292 39,746 32,586 3,902 211 1,373 19,178 7,922 606 3,741 13 June 27* 30,253 19,246 7,561 3,446 8,883 41,054 33,620 3,962 216 1,790 19,581 8,071 963 3,735 13 July 25* 29,471 18,852 6,995 3,624 7,578 38,990 32,065 3,923 214 937 18,988 8,003 393 3,748 13 Aug. 29*(old basis; 29,67f 19,319 6,619 3,734 7,942 39,576 31,775 3,836 210 1,315 18.247 8,167 1,225 3,764 13 Aug. 29*(new basis; 30.090 19.619 6,709 3,762 8,026 40,085 32,214 3.844 210 1.332 18.552 8,276 1,242 3,806 16 City of Chicago: *> 1941-Dec. 31. 2,760 954 1,430 376 1,566 4,363 4,057 1,035 1271 2,419 476 288 13 1945—Dec. 31. 5,931 1,333 4,213 3"8"5' 1,489 7,459 7,046 1,312 1,552 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 1960—Dec. 31. 7,050 4,485 1,882 683 2,046 9,219 8,197 1,380 327 4,899 1,530 35 822 10 1961—June 30. 7,020 4,249 2,058 714 ,899 9,068 8,037 1,125 380 4,602 1,920 10 848 10 Aug. 30. 7.165 4,191 2,227 747 ,769 9,073 7,901 1,190 281 4,494 1,926 131 852 10 Dec. 30. 7,606 4,626 2,041 940 2,603 10,383 9,283 1,624 369 5,268 2,008 35 870 9 1962—Jan. 31 7,29: 4,353 2,038 901 ,873 9,333 8,201 1,154 229 4,713 2,089 65 873 9 Feb. 28 7,508 4,509 2,078 921 ,896 9,576 8,285 1,183 222 4,673 2,190 209 874 9 Mar. 28 7,652 4,503 2,183 966 ,788 9,613 8,208 1,194 323 4,383 2,292 329 870 9 Apr. 25* 7,504 4,557 1,880 1,067 ,912 9,592 8,421 1,177 158 4,676 2,392 73 877 9 May 30* 7,631 4,592 1,926 1,113 ,928 9,720 8,524 1,118 356 4,548 2,483 75 884 9 June 27* 7,866 4,632 1,912 1,322 ,892 9,923 8,674 1,149 522 4,443 2,540 83 882 9 July 25* 7,765 4,510 1,907 1,348 ,860 9,795 8,584 1,203 256 4,489 2,619 75 890 9 Aug. 29* (old basis; 7,883 4,570 1.923 1,390 .801 9,85f 8,580 1.193 361 4,353 2,656 117 895 9 Aug. 29*(new basis 8.201 4,761 1,439 ,870 10.24' 8:934 1,201 384 4.554 2,778 122 925 12 Other reerve city: 1941—Dec. 31. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31. 40,108 8,514 29,552 2,04211,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2,566 359 1947—Dec. 31. 36,040 13,449 20,196 2,39613,066 49,659 46,467 5,627 22 405 28,99011,423 1 2,844 353 1960—Dec. 31. 62,953 40,002 17,396 5,554 18,668 83,464 75,06" 7,989 326 1,960 42,,226677 2222,525 73 6,423 217 1961—June 30. 63,670 39,747 18,053 5,87016,529 82,141 73,55' 6,335 62 2,241 39,72125,199 131 6,684 205 Aug. 30. 65.112 40,401 18,650 6.06115,109 82,161 72,926 6,456 57 1,925 38.890 2"5,598 55: 6,744 205 Dec. 30. 68,565 42,379 19,748 6,438 20,216 90,815 81,883 8,350 62 2,103 44,986 26,381 81 6,997 206 1962—Jan. 31 68,056 41,887 19,676 6,49316,479 86,635 76,866 6,745 71 1,621 41,295 27,134 885 7,024 206 Feb. 28 67,806 41,986 19,183 6,63716,884 86,764 76,989 6,660 77 1,787 40,787 27,678 796 7,071 206 Mar. 28 68,635 42,713 18,840 7,08216,089 86,762 77,084 6,678 73 2,213 39,743 28,377 836 7,087 206 Apr. 25* 69,238 42,984 18,891 7,36316,641 87,944 78,042 6,675 77 1,280 41, ,744 1,013 7,106 206 May 30* 69,433 43,304 18,585 7,54416,523 88,089 77,911 6,314 78 2,688 39,61129,220 1,058 7.162 206 June 27* 70,354 44,110 18,547 7,69716,926 89,390 79,373 6,517 82 3,542 39,760 2"9,472 970 7,195 206 July 25* 70.305 43.969 18.482 7.85416,409 88,886 78,686 6,633 79 1,927 40,,367 29.680 1,159 7,181 207 Aug. 29" (old basis 70.333 44,540 17,987 7,80616,180 88,626 78,317 6,66: 74 2.639 39,12629,816 1,058 7.214 200 Aug. 29* (new basis 69.597 44,049 17,819 7,72916.027 87,722 77,52- 6,646 74 2,599 38,62029,585 1,036 7.14: 194 Country member banks:7 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 79L 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 5,465 24,23512,494 11 2,525 6,476 1947—Dec. 31 36,324 10,199 22,857 3,26810,778 47,553 44,443 1,056 432 28,37814,560 23 2,934 6,519 1960—Dec. 31 67,890 36,981 22,848 8,060 1144,740 84,126 76,004 1,778 ,783 43,39529,011 23 6,599 5,932 1961—June 30 69,139 37,942 22,608 8,58813,039 83,769 75,407 1,406 ,730 41,413 3"0,820 121 6,861 5,911 Aug. 30 70,068 38,144 23,295 8,62912.712 84,206 75,637 1,406 ,644 41,404 31,146 237 6,889 5,907 Dec. 30 73,13 39,693 24,407 9,031 15,595 90,376 81,646 1,925 ,641 46,21131,832 40 5,885 1962—Jan. 31 72,946 39,159 24,707 9,080 13,590 88,137 79,363 1,525 ,548 43,816 32,438 239 7,090 5,879 Feb. 28 73,180 39,582 24,490 9,10813,236 87,905 79,162 1,476 ,654 43,04832,948 165 7,098 5,871 Mar. 28 73,317 39,890 24,187 9,24012,734 87,592 78,807 1,452 ,840 41,94533.533 142 7,139 5,857 Apr. 25* 74,275 40,503 24,384 9 38813,046 88,846 79,997 1,467 ,208 43,439 33,846 168 7,180 5,846 May 30* 74,582 40,861 24,235 9 48612,959 89,001 79,957 1,355 2,046 42,29234,227 263 7,228 5,845 June 27* 75,115 41,597 23,922 9,59612,985 89,636 80,565 1,420 2,455 42,04534,608 277 7,237 5.842 July 25* 75,467 41,436 24,228 9,80313,154 90,135 81,14" 1,482 1,832 42,76735,029 243 7,241 5,833 Aug. 29* 76.51 41.902 24,620 13,18. 91,17" 81,995 1,541 2,380 42,,"5"5'4 35.483 28: 7,339 5.839 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1188 COMMERCIAL AND MUTUAL SAVINGS BANKS PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued [Amounts in millions of dollars] Loans and investments Deposits Total assets— Cla a s n s d o d f a b t a e nk Total Loans U S .S ec . urities a C ss a e s t h sl c b T a i a l l o p i i n a t t i d i t a - e a l s l TotaP D In e t - erbank2 Dema O n t d her r B in o o w g r s - - c c T a o a o p u c t i n a - ta t l s l N ba b u o n e m f r k - s Govt. Other co a u c n - ts2 mand Time U.S. Time Govt. Other Insured commercial banks: 1941—Dec. 31 49,290 21,259 21,046 6,98425,788 76,820 69,411 10,654 1,762 41,29815,699 10 6,844 13,426 1945_Dec. 31 21,809 25,765 88,912 7,13134,292157,554444 147,775 13,883 23,740 80,276 2299,876 215 8,67113,297 1947_Dec. 31 14,274 37,583 67,941 8,750 3"6,926 152,733141,851 2,615 54 1,325 92,975 -34,882 61 9,734 1'-3,398 1958—Dec. 31 83,596 97,730 65,669 20,198 48,689 236,724214,485 5,653 2,209 4,241129,214 63,168 67 8,15413,101 1959—Dec. 31 88,790 10,299 58,348 20,143 49,158224422..882288 218,474 5,500 1,358 5,037 130,720 6t5.,858 602 9,20613,107 1960—Dec. 31 98,011 17,092 60,468 20,451 1,836 255,669 228,401 6,921 1,667 5,932 132,533 "7'1,348 149 20,62813,119 1961—June 30 200,353 117,400 61,297 21,655 5,329 251,910 223,603 3,475 305 6,352 124,403 79,068 433 1,37713,129 Dec. 30 213,904 24,348 66,026 23,53156,086276,600 247,176 7,737 333 5,934141,050 82,122 462 22,089'3,108 National member banks: 1941—Dec. 31 27,571 11,725 12,039 3,806 4,977 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 45,47316,224 78 4,664 5,017 1947—Dec. 31 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,54119,278 45 5,409 5,005 1958—Dec. 31 99,277 52,627 35,71410,936 26,781128,397116,714 9,035 767 2,292 69,808 34,812 43 9,643 4,578 1959—Dec. 31 02,615 59,962 31,76110,892 27,464132,663366 119,638 8,947 514 2,742 71,015 36,421 340 0,302 4,542 1960—Dec. 31 07,546 63,694 32,712 1111,140 18,675'39,261124,911 9,829 611 3,265 71,660 39,546 111 1,098 4,530 1961—June 30 .08,843 63,440 33,52211,881 :5,274 37,299 122,485 7,749 99 3,541 67,60143,494 355 1,439 4,524 Dec. 30 16,402 67,309 36,08813,006 31,078150,809135,511 [0,359 104 3,315 76,,2—92 4'-5,441 225 1,875 4,513 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 1 2,246 ,502 1945—Dec. 31 , 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 ,867 1947—Dec. 31 32,566 11,200 19,240 2,125 0,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 ,918 1958—Dec. 31 , 55,588 31,435 18,585 5,568 6,407 73,620 66,102 6,192 1,420 1,530 40,640 16,320 10 5,817 ,734 1959—Dec. 31 55,264 34,817 15,052 5,396 6,045 73,090 65,069 6,102 825 1,763 39,974 16,406 240 5,962 ,691 1960—Dec. 31 58,073 36,240 16,394 5,439 7,081 77,316 68,118 6,608 1,028 2,022 40,73317,727 20 6,299 ,644 1961—June 30 59,207 36,553 16,839 5,815 4,809 76,420 66,741 5,328 177 2,190 37,96721,080 27 6,588 ,617 Dec. 30 63,196 38,924 17,971 6,30218,501 84,303 74,119 6,835 199 2,066 43,30321,716 213 6,763 ,600 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 19,340 262 4 149 12,366 6,558 1,271 6,478 1958—Dec. 31 28,759 13,682 11,381 3,696 5,504 34,737 31,696 426 419 18,76612,063 2,696 6,793 1959—Dec. 31 30,939 15,534 11,546 3,859 5,651 37,132 33,795 451 533 19,73213,059 2,944 6,878 I960—Dec. 31 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 645 20,140 14,095 3,232 6,948 1961—June 30 32,318 17,416 10,941 3,961 5,247 38,206 34,391 398 621 18,83514,509 3,351 6,990 Dec. 30 34,320 18,123 11,972 4,225 6,508 41,504 37,560 543 553 21,45614,979 3,452 6,997 Noninsured nonmember commerical 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. 314 2,009 474 1.280 255 576 2,643 2,251 177 185 18 1,392 478 325 783 1958—Dec. 31 ,568 484 707 377 301 ,927 1,532 146 163 890 325 332 399 1959—Dec. 31 ,480 534 589 358 309 ,858 1,429 150 83 873 311 350 366 1960—Dec. 31 ,498 550 535 413 314 ,883 1,443 159 132 846 293 358 352 1961—June 30 ,495 553 526 416 266 ,839 1,394 158 156 758 311 368 333 Dec. 30 ,536 577 553 406 346 ,961 1,513 177 148 869 307 370 323 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. 31* 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 1671 13,758 7,036 1,596 7,261 1958—Dec. 31 30,327 14,165 12,088 4,074 5,805 36,664 33,227 572 185 428 19,65512,387 3,028 7,192 1959—Dec. 31 32,419 16,068 12,134 4,216 5,961 38,990 35,224 601 103 545 20,605 1133,370 3,294 7,244 I960—Dec. 31 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,98614,388 3,590 7,300 1961—June 30 33,813 17,968 11,467 4,377 5,513 40,045 35,785 556 185 631 19,59314,820 3,719 7,323 Dec. 30 35,856 18,700 12,525 4,631 6,854 43,465 39,073 719 178 565 22,32515,286 3,822 7,320 Insured mutual savings banks 1941_Dec. 31 1,693 64: 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 10,351 1,03' 192 1947—Dec. 31 12,683 3,560 8,165 958 675 13,499 12,207 12,192 1,252 194 1958—Dec. 31 28,980 19,180 5,215 4,585 75: 30,189 27,277 2827,243 2,473 241 1959_Dec. 31 30,580 20,942 5,016 4,62f 686 31,743 28,577 28 "28,544 2,654 268 1960—Dec. 31 33,794 23,852 4,787 5,155 766 35,092 31,502 29 31,468 2,998 325 1961—June 30 34,764 24,775 4,741 5,248 756 36,074 32,530 25732,267 3,090 325 Dec. 30 35,660 25,812 4,690 5,158 828 37,065 33,400 25633,137 3,191 330 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL AND MUTUAL SAVINGS BANKS 1189 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued [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 Securities a C ss a e s t h si b T i a l l o i i n a t t i d a - e l s Total i Interbank l Dema O n t d her r B i o n o w g r s - - c c T a o a o p u c t i n - a t t a l s l b N a b o u n e f m k r s - G U o .S v . t. Other c c o a u a p c n i - t t s a l 2 m D a e n - d Time U.S. Other Time Govt. Noninsured mutual savings banks: 1941—Dec. 31 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945—Dec. 31 5,361 1,198 3,522 641 180 5,596 5,022 2 5,020 6 558 350 1947_Dec. 31 4 5,957 1,384 3,813 760 211 6,215 5,556 2 5,553 637 339 1958—Dec. 31 7,341 4,177 2,050 1,113 169 7 589 6,763 1 6,762 1 746 278 1959—Dec 31 6 981 4 184 1 848 949 143 7 200 6 405 1 6 404 1 705 249 1960—Dec. 31 5,320 3,270 1,453 597 107 5,481 4.850 4 850 555 189 1961—June 30 5,580 3,436 1,540 604 106 5,744 5,020 5,019 1 570 189 Dec 30 . . 5,600 3,581 1,446 572 108 5,768 5,087 1 4 5,083 577 184 1 Reciprocal balances excluded beginning with 1942. Reclassification NOTE.—Data are for all commercial and mutual savings banks in the of deposits of foreign central banks in May 1961 reduced interbank United States (including Alaska and Hawaii, beginning with 1959). deposits by a total of $1,900 million ($1,500 million time to other time Commercial banks include (1) all nonmember commercial and (2) and $400 million demand to other demand). all member commercial banks. Member banks include (1) a national 2 Includes other assets and liabilities not shown separately. bank in the Virgin Islands that became a member on May 31, 1957, (2) 3 See note 4 on page 1185. a noninsured nondeposit trust company, and (3) a mutual savings bank 4 Beginning with Dec. 31, 1947, the series was revised. A net of 115 (2 before July 1961 and 3 before 1960) that became a member in 1941 noninsured nonmember commercial banks with total loans and invest- (these banks are excluded from commercial banks). ments of about $110 million were added, and 8 banks with total loans Stock savings banks and nondeposit trust cos. are included with comand investments of $34 million were transferred from noninsured mutual mercial banks. Number of banks includes a few noninsured banks, savings to nonmember commercial banks. for which asset and liability data are not available. Comparability of 5 Because preliminary data are rounded to the nearest $10 million, figures for classes of banks is affected somewhat by changes in F. R. no amount is shown except on call dates for amounts of less than $5 membership, deposit insurance status, and the reserve classifications of million. cities and individual banks, and by mergers, etc. <> These data reflect the reclassification of New York City and city of Figures are partly estimated except on call dates. Chicago as reserve cities effective July 28, 1962. For details see Aug. For revisions in series before June 30, 1947, see July 1947 BULL., 1962 BULLETIN, p. 993. pp. 870-71. 7 Beginning with February 1960 reserve city banks with total loans and investments of $950 million and total deposits of $1,070 million were reclassified as country banks. LOANS AND INVESTMENTS AT COMMERCIAL BANKS [In billions of dollars] Seasonally adjusted Not seasonally adjusted Period Securities Securities Total i Loans l Total l Loans 1 U. S. Other U. S. Other Govt. Govt. 1955 157.6 80.5 60.4 16.7 160.3 82.0 61.6 16.7 1956 161.6 88.0 57.3 16.3 164.5 89.7 58.6 16.3 1957 166.4 91.4 57.0 17.9 169.3 93.2 58.2 17.9 1958 181.0 95.6 64.9 20.5 184.4 97.5 66.4 20.6 1959 185.7 107.8 57.6 20.4 189.5 110.0 58.9 20.5 1960 194.5 114.2 59.6 20.7 198.5 116.7 61.0 20.9 1961 209.6 121.1 64.7 23.8 214.4 123.9 66.6 23.9 1961—Aug 204.0 116.3 65.1 22.6 203.0 116.3 64.2 22.5 Sect 206.7 117.4 66.1 23.2 207.5 118.1 66.1 23.3 Oct 207.1 118.6 65.3 23.2 208.3 118.5 66.6 23.2 Nov 208.3 119.4 65.3 23.6 209.1 119.5 66.2 23.4 Dec 209.6 121.1 64.7 23.8 214.4 123.9 66.6 23.9 1962—Jan 210.7 120.8 65.7 24.2 210.9 119.6 67.2 24.1 Feb 213.3 122.6 66.1 24.6 211.6 121.1 66.0 24.5 Mar 215.2 123.8 66.1 25.3 212.4 122.6 64.4 25.4 Aprp 214.9 124.4 64.5 26.0 214.7 123.9 64.6 26.2 Mayp 216.1 124.5 65.4 26.2 215.0 124.5 64.3 26.2 June37 218.9 125.5 66.4 27.0 217.8 126.6 64.2 27.0 JulyP 217.4 125.7 63.9 27.8 217.4 125.7 64.0 27.7 219.9 126.9 64.9 28.1 218.6 126.9 63.7 28.0 i Adjusted to exclude interbank loans. Dec. 31 call dates). For description of seasonally adjusted series and back data, see July 1962 BULL., pp. 797-802. Nora—Data are for last Wed. of month (except for June 30 and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1190 COMMERCIAL BANKS LOANS AND INVESTMENTS BY CLASS OF BANK [In millions of dollars] Loans l Investments For To purchasing financial U. S. Government Class of lo T a o n t s a l l C m o e m r- - o s r e c c a u r r r i y ti i e n s g institutions Other securities State b c a a n ll k d a a n te d i m n a v e n e n d s t t s - Total d t a c r i u n i n i a s a d - - l l A t c u u a g r l l r - - i- b k d a T r e e n o o r a d - s l- ot T h o ers ba T n o ks o T th o ers R t e a e s t - a e l u v i d t a i n o i d l - - s - Other Total Bills c C t a i e f t i e r - - s Notes Bonds g s r l a o i e o t n c c i v e d u a t s l - . O s r e i t t h c i e u e r s ers Total: 2 1947—Dec- 31 .116,284 38,057 18,1671,660 8301,220 115 9,393 5,723 947 69,2212,193 7,789 6,034 53,,205 5,276 3,729 1960—Dec. 31..199,509117,642 43,125 5,676 3 1,833 966 7,106 28,71326,396 61 [003 8,072 2,920 1"9,001133 3300,,998 17,570 3,294 1961—June 30.. 201,848 1171953 42,759 6J044 2^933 993 6,00129,2"6"5. 2277,283 102 61,824 7,379 3,330 20528 30,58718,7283.344 Dec. 30.. 215,441 121925 45i 172 6J248 4^56 2,134 1,033 7,31130,320 27,847 11.488 2,114 26 336 26,64120,.3 45 3,592 1962—Mar. 26«. 215,750125,910 44,940 6,560 3,730 2,080 2,570 6,4 6"0" 30,690 27,890 640 64;570 9,420 3,740 24860 265,5"0 21,710 3,560 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 ,450 614 662 40 4,773 4,.505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31..121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 8888,J991122 2,45519,071 16,04551,342 3,—873 3%%225588 1947—Dec. 31..114,274 3.,7/,583 18,0121,610 8231,190 114 ... 9,,26 .6 5,654 9~1"4 67,9412.124 7,552\ 5,918 5522,347 5,129 3,621 1960—Dec. 31..198,011 117,09242,9575,628 3,2471,811 965 090 28,602 26,263 2,883 60,468 7,994 2,884118,86830,72217,330000 3,150 1961—June 30.. 200,353117,'400 42;569 6,0052,909 ',970 993 5,98129,159 27,147 3,085 61,297 7,299 3,295> 20,3663 03,0337 18,454 33,201 Dec. 30.. 213,904124,348 44,965 6,211 030 2,107 1,027 7,296 30,21127,708 3,396 66,02611,356 21,,009988 26,14526,426 20,068 3,462 1962—Mar. 26..214,261125,337 44,742 6,5233,706 2,059 2,556 6,446 30,57827,752 622 64,034 9,298 3,706 24;686 2"6 ,34321,448 3,442 Member, total: 1941—Dec. 31.. 43,521 18,021 :,67l 972 594 598 39 3,494 3,653 19,539 971 3,00715,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 1,949 855 3,1333,378 47 3,455 1,900 1,057 78',338 2,27516,985 14,27144,807 3,254 2!,815 1947—Dec. 31.. 97.846 32.62816,9621,046 '811 ,065 113 7,130 4,662 839 57,914 1,987 5,816 4~8"15 45,295 ,199 3.105 1960—Dec. 31... 165,619 99,93339,288 3,509 3,124 1,564 947 6,726 22J518 21,622 694 49,106 6,402 2,296 15,0072 25,33514,1412,439 1961—June 30.. 168,049 99 ,9~9"2~ 38,872 3,7212,780 1,709 970 5,644 23,086 22,421 5,962 2,951 16,4476 24,97215,222200 22.475 Dec. 30.. 179,599106.232 40 3,934 3,8771,827 1,014 893 23,987 22,852 198 54J058 9,229 1.84221,3390 21,59816,6912,617 1962—Mar. 26.. 179,272106.765 40,638 4' ^0"7""8 3,5501,777 2,510 6^060 24J27122,769 424 51,924 7.262 3,184 20J2321,35417,999944 22,589 June 30.. . 183.497109,212 41,435 4.220 3.0881.699 1.453 6,78925',362 24.006 480 5: 6.467 2. 984 21.3-6"7 21,24719,3212.899 New York City:* 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,4531,172 26 80 287 27217,574 477 3,433 3,32510,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 23811,972 ,002 640 558 9,772 638 604 1960—Dec. 31.. 27,72618,46510,876 10 ,574 399 500 1,799 868 1,930 940 6,980 ,422 578 1,708 3,272 1,964 317 1961—June 30.. 28,22018,05410,578 31,629 429 476 1,448 841 2,074 1.025 7,642 ,512 887 1,882 3,362 2,196 328 Dec. 30.. 30,29719,53511,278 231,956 467 376 1,711 934 2,072 1,220 7,886622 2,,117 442 2,496 2,806 2,635 265 1962—Mar. 26.. 29,93019,79511.064 1222,031 456 798 1,463 992 2,035 1,452 6,805 ,471 603 2.410 2,320 3,045 285 June 30.. 30,39619,22410.980 1,512 409 568 1,774 1,084 2,075 1.321 7,659 ,989 492 2,931 2,247 3,158 355 City of Chicago:* 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 133 1,467 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 132 235 248 2,274 213 185 1960—Dec. 31.. 7.050 4,485 2,690 322 134 564 196 421 197 132 37 663 1,050 607 76 1961—June 30.. 7,020 4,249 2,555 205 131 459 202 538 188 21057 438 153 595 871 630 84 Dec. 30.. 7,606 4,626 2,609 354 137 669 221 476 229 2,041 478 92 728 743 816 124 1962—Mar. 26.. 7,687 4,494 2,677 202 130 575 235 447 270 2,223 681 202 647 693 886 83 June 30.. 7,937 4,672 2,659 265 147 611 278| 456 1,936 200 151 844 741 1,150 179 Reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527! 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 ,503 17 1,459 855 387 29,5521,034 6,982 5,653 15,883 1,126 916 1947—Dec. 31.. 36,04013,449 7,088 225 170 484 15 3,147 1,969 35120,196 373 2,358 1,901 15,563 1.3421,053 1960—Dec. 31... 62,95340,00216,223 887 719 739 351 3,216 9,005 8,721 909 17,396 2,031 794 5,461 9,111 4,817 738 1961—June 30... 63,670 3399,74715,862 963 610 749 344 2,751 9,256 8,954 1,0—2 818,053 1,784 1,175 6,292 8,803 5,174 696 Dec. 30... 68,56542,37916,8791,076 976 784 470 3,261 9,590 9,172 99819,748 3,020 741 8,605 7,382 5,710 728 1962—Mar. 26.., 68,37342,58816,690 1,116 912 749 1,179 2,872 9,748 9,177 980 '18" 779 2,038 1,333 7,872 7,535 6,278 728 June 30.. 70,14543,82417,0771,184 727 556 3.14810.272 9.682 1.129 18.6271,611 1.267 8,186 7,563 6,867 827 Country: 1941—Dec. 31.. 12,518 890 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 .028 1945—Dec. 31.. 35,002 596 648 42 471 4 1,881 707 359 26,999 630 5,102 4,54416,722 l|342 ,067 1947—Dec. 31.. 36,324 199 818 23 227 5 3,827 1,979 224 22,857 480 2,583 2,10817,687 2,006 .262 I960—Dec. 31... 67J890 36J981 499 2,589 508 293 29 1,14712,44910,550 647 221848 2,817 888 7,24011,903 6,752 ,308 1961—June 30... 69,13937,942 877 2,737 337 400 59 98612,78810,855 659 22,608 2,228 737 7,706 11,937 7,220 ,368 Dec. 30.. 73,13139,69310,1652,811 591 438 116 1.251 13,24211,132 75124,407 3,614 566 9,56010,667 7,530 ,500 1962—Mar. 26...73,282 39,888 ,207 2,928 405 442 448 1,14913,29711,110 72124,117 3,071 1,047 9,193 10.806 7,785 ,493 June 30.. ,75,01941,492 .719 3,007 416 240 1.25613,728 11,792 732 23.8432,667 1,075 9.40510,696 8,146 ,539 Nonmember:2 1947_Dec. 31.. 18,454 5,432: 1,205 614 20 156 2,266 1,061 10911,318 206 1,973 1,219 7,920 1,078 625 1960—Dec. 31.. 33,910 177,719 3,838 ,167 161 269 379 6,205 4,774 20711,9041.670 624 3,941 5,668 3,431 857 1961—June 30.. 33,81317,968 3,886 2,323 153 285 357 6,187 4,862 20211,4671,417 380 4,052 5,618 3,508 869 Dec. 30. 35,85618,700 4,241 2,314 179 306 418 6,341 4,995 21412,5"2"5 2,259 272 4,947 5,046 3.655 976 1 Beginning with June 30, 1948, figures for various loan items are available before 1947; summary figures for earlier dates appear in the shown gross (i.e., before deduction of valuation reserves); they do not preceding table. add to the total and are not entirely comparable with prior figures. Total 3 Central reserve city banks; redesienation as reserve city not effective loans continue to be shown net. until July 28, 1962. 2 Breakdowns of loan, investment, and deposit classifications are not For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL BANKS 1191 RESERVES AND LIABILITIES BY CLASS OF BANK [In millions of dollars] Demand deposits Time deposits Bal- De- Re- Cur- ances mand Interbank Certi- Capi- Class of serves rency with de- fied U.S. Bor- tal bank and with and do- posits State and Govt. State row- accall date F. R. coin mestic ad- U.S. and offi- IPC Inter- and and IPC ings counts Banks banks4 justed 5l Do- For- Govt. local cers' bank Postal local mestic4 eign6 govt. checks, Sav- govt. etc. ings Totals 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 1960—Dec. 31.... 16,720 3,346 13,681 115,120 15,453 1 627 5,945 11,674 4,602 117,103 1,799 262 4,544 66,836 16320,986 1961—June 30.... 16,488 2,903 11,184112,030 12,568 1,064 6,362 11,849 3,759 109,553 461 288 5,266 73,826 44321,745 Dec. 30.... 16,918 3,689 14,169122,654 16,574 1,340 5,946 12,242 5,056 124,622 481 283 5,465 76,680 471 22,459 1962—Mar. 26 e... 16,520 3,760 11,270114,720 12,710 1,140 6,780 11,280 3,540 111,460 390 280 6,070 81,6802,13022,790 All insured: 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 1,24823,740 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 83,723 111 826 33,946 61 9,734 1960—Dec. 31.... 16,720 3,326 13,409 114,292 15,339 1,582 5,932 11,582 4,564 116,388 1,667 262 4,481 66,605 149 20,628 1961—June 30.... 16,488 2,885 10,959 111,187 12,443 1,031 6,352 11,754 3,725 108,924 305 288 5,209 73,572 433 21,377 Dec. 30.... 16,918 3,670 13,871121,671 16,440 1,298 5,934 12,149 5,023 123,878 333 283 5,412 76,426 462 22,089 1962—Mar. 26.... 16,518 3,740 11,039 113,838 12,625 1,128 6,768 11,192 3,522 110,793 364 284 6,013 81,4122,11722,442 Member, 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 1,243 22,179 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 1960—Dec. 31.... 16,720 2,518 8,582 94,594 14,875 1,561 5,287 9,016 4,244 99,134 1,639 237 3,559 53,477 13017,398 1961—June 30.... 16,488 2,142 6,897 92,750 12,061 1,016 5,731 9,241 3,441 92,886 276 263 4,203 60,108 382 18,027 Dec. 30.... 16,918 2,813 8,724100,660 15,924 1,270 5,381 9,487 4,654 105,454 303 260 4,371 62,526 438 18,638 1962—Mar. 26.... 16,519 2,866 6,833 94,164 12,203 1,108 6,125 8,616 3,258 93,661 332 261 4,866 66,6552,063 18,884 June 30 16,839 2,399 7,182 93,555 12,633 1,163 8,734 9,107 4,080 94,826 351 274 5,096 69,793 735 19,179 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 1960—Dec. 31... 3,398 199 147 15,352 4,105 1,184 1,217 305 2,476 19,051 1,216 27 203 3,976 3,554 1961—June 30.... 3,563 130 98 16,119 3,462 749 1,180 365 1,825 17,642 167 44 245 6,346 iii 3,634 Dec. 30.... 3,286 240 143 17,089 4,330 967 1.267 333 2,583 20,213 191 38 162 6,735 283 3,683 1962—Mar. 26.... 3,271 231 68 16,005 3,215 824 1,379 243 1,830 17,271 198 43 220 7,387 829 3,707 June 30 3,495 165 106 15,796 3,643 874 1,918 327 2,390 17,580 210 53 221 7,824 381 3,761 City of Chicago:3 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 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 ,196 21 72 285 63 3 853 2 9 902 426 1960—Dec. 31.... 899 33 171 3,968 1,327 53 327 298 102 4,499 61 2 7 1,521 **35 822 1961—June 30.... 994 28 111 3,881 1,093 33 380 364 113 4,125 10 2 8 1,910 10 848 Dec. 30.... 889 37 158 3,809 1,578 45 369 315 124 4,830 14 5 S 1,996 35 870 1962—Mar. 26.... 981 34 94 3,782 1,090 39 369 222 85 4,022 16 5 8 2,280 357 870 June 30 916 31 94 3,728 ,083 44 546 330 109 4,082 18 7 10 2,581 34 894 Reserve city: 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 1960—Dec. 31.... 7,354 753 2,610 34,357 7,688 301 1,960 3,329 953 37,986 326 85 1,787 20,652 73 6,423 1961—June 30.... 7,104 654 2,071 33,432 6,115 220 2,241 3,286 845 35,590 62 101 2,197 22,901 131 6,684 Dec. 30.... 7,533 858 2,542 36,187 8,107 243 2,103 3,520 1,152 40,315 62 110 2,310 23,962 81 6,997 1962—Mar. 26.... 7,445 897 2,137 34,137 6,460 231 2,436 3,057 773 35,939 73 110 2,512 25,684 752 7,070 June 30 7,406 764 2,111 33.710 6.394 228 3,670 3,191 907 36,504 75 110 2,706 26,847 240 7.201 Country: 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 1960—Dec. 31.... 5,070 1,534 5,655 40,917 1,755 23 1,783 5,083 713 37.598 37 122 1,562 27,327 23 6,599 1961—June 30.... 4,828 1,329 4,618 39,318 1,392 14 1,730 5,226 657 35,530 37 116 1,752 28,952 121 6,861 Dec. 30.... 5,210 1,678 5,881 43,575 1,910 15 1,641 5,320 796 40,095 37 108 1,891 29,834 40 7,088 1962—Mar. 26.... 4,822 1,705 4,535 40,240 ,438 14 1,940 5,093 570 36,429 45 103 2,125 31,304 126 7,237 June 30.... 5,023 1,438 4,872 40,321 ,512 17 2,601 5,261 676 36,660 48 104 2,158 32,541 80 7,323 Nonmember:2 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1960—Dec. 31 828 5,099 20,525 578 65 657 2,658 357 17,970 160 25 985 13,378 33 3,590 1961—June 30 761 4,288 19,280 507 49 631 2,609 318 16,666 185 25 1,063 13,732 61 3,720 Dec. 30 ,. 876 5,446 21,994 649 70 565 2,755 402 19,168 178 23 1,094 14,169 33 3,822 4 Beginning with 1942, excludes reciprocal bank balances. NOTE.—Data are for all commercial banks in the United States. These 5 Through 1960, demand deposits other than interbank and U. S. figures exclude data for banks in U. S. possessions except for member Govt., less cash items in process of collection; beginning with 1961, banks. During 1941 3 mutual sayings banks became members of the demand deposits other than domestic commercial interbank and U. S. FRS; these banks (2 beginning with June 1960 and 1 beginning Sept. Govt., less cash items in process of collection. 1961) are included in member banks but are not included in all insured 6 Beginning with June 1961, reclassification of deposits of foreign or total banks. Comparability of figures for classes of banks is affected central banks reduced foreign interbank demand deposits by about $400 somewhat by changes in F. R. membership, deposit insurance status, and million and interbank time deposits by about $1,500 million. These the reserve classifications of cities and individual banks, and by mergers, amounts are now included in demand and time deposits of individuals, etc. partnerships, and corporations. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1192 WEEKLY REPORTING MEMBER BANKS ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES [In millions of dollars] Loans For purchasing or carrying securities To financial institutions Wednesday m i T l n o a e v o n a n e t n d t a s s s t l - * j i L m u n a s a o v e n t d a e e n d - n s d t t s s - 2 ju L s o a t d a e - d n s 2 i C n m t a c r o d n i i e a m u a d r l l s - - - A t c u ul g - r r a i l - G U c a T . t S u o i . n o e r v d s i- t b . d r e o O a k c t l s u e t e i e - h e r r r s s i e s - r G U c . t S s u T o e i . - e r v o s i- t . oth O c e t s u t i e r - h e r s s i e - r F ei o g r n B - an c k m m D c e o o s t - - i i e m a c r l - - f P s C i a O e a n S e . N n , t l a r c e d s o n . s . . nb O an t k her e R s e ta a t l e o A th l e l r V se t a r r e i - l v o u e n a s - Total— Leading Cities 1961 Aug - I::::::::::: 116,510 114,923 70,072 31,499 ,091 620 2,003 106 1,371 582 ,587 3,321 1,745 12,956 16,346 1,568 115,233 114,041 69,623 31,359 ,095 434 ',948 110 1,367 572 ,192 3,266 1,763 12,973 16,304 1,568 16!!!!!!!!!!! 116,194 114,555 70,040 31,592 ,101 529 ,893 106 1,370 580 ,639 3,379 1,781 13,002 16,278 1,571 23 115,649 114,224 69,704 31,498 ,116 426 ,847 104 1,378 551 ,425 3,304 1,786 13,038 16,224 1,568 30 115,779 114,301 69,551 31,476 ,112 279 ,857 102 1,377 565 ,478 3,254 1,790 13,055 16,253 1,569 1962 July ,t::::::::::: 124,658 122,775 75,900 33,183 ,381 513 ,980 1,317 767 ,883 3,703 2,486 14,311 17,894 1,724 123,934 122,506 75,539 33,278 ,384 423 ,776 1,311 770 ,428 3,471 2.484 14,400 17,877 1,726 18 123,475 122,271 75,339 33,038 ,396 449 ,749 1,319 753 ,204 3,453 2,521 14,469 17,831 1,725 25 123,213 121,657 75,026 32,954 ,408 289 ,755 1,314 736 ,556 3,359 2,528 14,506 17,818 1,724 Aug. 1 124,212 122,314 75.732 33,146 ,221 363 ,916 1,303 740 ,898 3,717 2,542 14,525 17,895 1,728 8 122,947 121,149 75;236 33,120 ,214 199 ,886 1,299 753 ,798 3,480 2,536 14,542 17,856 1,728 15 124,437 122,717 76,074 33,360 ,218 452 2,009 1,306 739 ,720 3,602 2,584 14,604 17,847 1,730 22 123,850 122,328 75,924 33,418 ,230 349 ',876 1,298 740 ,522 3,557 2,582 14,656 17,869 1,730 124,105 122,068 75,975 33,442 1,230 298 ,926 1,300 744 2,037 3.505 2,599 14,696 17,883 1,728 29 New York City 1961 28,691 28,017 17,623 10,447 470 1,274 420 296 674 ,071 307 764 2,990 439 Aug. 2 27,896 27,610 17,256 10,292 306 1,231 421 293 286 ,072 310 771 2,976 439 9 28,403 27,884 17,334 10,358 281 1,179 424 307 519 ,147 311 767 2,977 440 16 28,210 27,618 17,048 10,303 196 1,147 426 285 592 ,084 306 775 2,942 440 23 28,226 27,682 16,939 10,284 147 1,151 426 289 544 ,030 301 774 2,952 439 30 1962 July ,?::::::::::: 30,292 29,534 18,598 10,913 234 1,046 400 393 758 ,243 522 9S2 3,334 492 29,703 29,194 18,350 10,948 214 897 400 387 509 ,121 523 1,010 3,320 493 18 29,424 28,977 18,165 10,775 236 904 408 378 447 ,100 518 1,016 3,299 493 25 29,268 28,568 18,010 10,788 156 886 408 368 700 ,049 517 1,020 3,287 493 Aug. 1 29,885 29,139 18,574 10,930 192 1,026 404 373 746 ,300 528 1,018 3,277 495 8 29,039 28,401 18,171 10,900 103 973 402 380 638 ,091 534 1,023 3,239 495 15 29,782 29,238 18,680 11,007 319 1,048 404 365 544 ,216 540 1,024 3,230 495 22 29,174 28,862 18,440 11,002 160 942 403 364 312 ,197 555 1,037 3,254 496 29 29,467 28,738 18,447 11,013 145 996 404 364 729 ,150 562 1,052 3,236 496 Outside New York City 1961 Aug. 2 87,819 86,906 52,449 21,052 ,088 150 729 951 286 913 2,250 1,438 12,192 13,356 1,129 9 87,337 86,431 52,367 21,067 ,092 128 717 946 279 906 2,194 1,453 12,202 13,328 1,129 16 87,791 86,671 52,706 21,234 ,098 248 714 946 273 1,120 2,232 1,470 12,235 13,301 1,131 23 87,439 86,606 52,656 21,195 ,112 230 700 952 266 833 2,220 1,480 12,263 13,282 1,128 87,553 86,619 52,612 21,192 ,108 132 706 951 276 934 2,224 1,489 12,281 13,301 1,130 30 1962 94,366 93,241 57,302 22.270 ,372 279 934 917 374 1,125 2,460 1,964 13,329 14,560 1,232 July 4 94,231 93,312 57,189 22,330 ,375 209 879 911 383 919 2,350 1,961 13,390 14,557 1,233 is;;;;;;!!;;] 94,051 93,294 57,174 22,263 ,387 213 845 911 375 757 2,353 2,003 13,453 14,532 ',232 25 93,945 93,089 57,016 22,166 ,399 133 869 906 368 856 2,310 2,011 13,486 14,531 ,231 Aug. 1 94,327 93,175 57,158 22,216 ,213 171 890 899 367 ,152 2,417 2,014 13,507 14,618 1,233 8 93,908 92,748 57,065 22,220 ,206 96 913 897 373 ,160 2,389 2,002 13,519 14,617 1,233 15 94,655 93,479 57,394 22,353 ,210 133 961 902 374 ,176 2,386 2,044 13,580 14,617 1,235 22 94,676 93,466 57,484 22,416 ,222 189 934 895 376 ,210 2,360 2,027 13,619 14,615 1,234 29 94,638 93,330 57;528 22,429 ,223 153 930 896 380 ,308 2,355 2,037 13,644 14,647 1,232 For notes see p. 1194. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS 1193 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued [In millions of dollars] Investments Cash assets 3 Total U. S. Government securities assets— Wednesday Total Bills c C t a i e f t i e r - - s W i i N n th o - m te a s tu a 1 n r i t d n o g b — on A d f s ter O s ri e t t c h ie u e s - r Total d b a o w B a n t m n i a c i c t l e k e h - s s s - b a w e B f a n o i n a i c g r t l e k n h - - s s u c a r o r n e i d n ncy B s F w e R a . r i n v e t R k h - e . s s a o s A t s h e l e l t r s a c l c T i a c a a t p o i o n b e i t d u i s t a l a n i l l - ts 1 year 5 years 5 years Total- Leading Cities 1961 Aug. 2 33,790 5,856 ,556 5,498 16,385 4,495 11,061 16,807 2,802 124 1,342 12,539 4,342 149,418 9 33.327 5,386 ,540 5,345 16,565 4,491 11,091 16,887 2,644 121 1,360 12,762 4,375 147,253 16 33,328 5,461 ,520 6,212 15,944 4,191 11,187 16,827 2,853 125 1,347 12,502 4,290 149,734 23 33,322 5,394 ,522 6,312 15,944 4,150 11,198 16,446 2,785 118 1,403 12,140 4,260 146,964 30 33,464 5,632 ,521 6.267 15.918 4,126 11,286 16,330 2,607 130 1,462 12,131 4,364 146,843 1962 32,195 3,822 2,124 6,800 14,814 4,635 14,680 18,112 3,112 156 1,419 13,425 4,612 162,132 32,237 3,896 2,105 6,778 14,808 4,650 14,730 17,194 2,921 162 1,616 12,495 4,594 159,345 18 32,245 4,024 2,109 6,759 14,731 4,622 14,687 17,725 2,895 154 13,110 4,596 159,679 25 31,745 3,624 2,095 6,754 14,668 4,604 14,886 17,010 2,807 155 12,466 4,641 156,239 Aug. 1 31,638 3,573 2,085 6,737 14,667 4,576 14,944 17,453 2,911 152 1,483 12,907 4,754 159,825 8 30,959 3,035 2,077 6,664 14,626 4,557 14,954 17,178 2,683 150 1,499 12,846 4,725 156,300 15 31,747 3,283 2,971 7,135 13,083 5,275 14,896 17,448 2,999 159 1,508 12,782 4,559 161,317 22 31,450 3,103 2,980 7,240 12,906 5,221 14,954 17,473 2,679 164 1,569 13,061 4,443 157,527 31,075 2,833 2,968 7,369 12,680 5,225 15,018 17,089 2,674 161 1,630 12.624 4,599 157,219 29 New York City 1961 Aug. 2. 7,858 1,852 521 1,203 3,457 825 2,536 3,750 182 3,444 1,859 38,311 9. 7,814 1,814 513 1,147 3,514 826 2,540 3,926 180 3,623 1,904 37,547 16. 7,967 1,993 510 1,398 3,264 802 2,583 3,725 177 3,436 1,859 37,896 23. 7,972 1,981 510 1,440 3,249 792 2,598 3,620 173 3,336 1,866 37,286 30. 8,069 2,197 493 1,327 3,270 782 2,674 3,742 187 3,432 1,914 37,448 1962 July 4., 7,388 ,845 432 2,578 1,057 3,548 4,073 220 3,686 ,851 41,370 11. 7,290 ,758 440 2,583 1,054 3,554 3,635 3,251 ,879 39,752 18. 7,268 ,811 438 ,450 2,538 1,031 3,544 4,101 3,718 ,865 40,265 25. 6,937 ,513 444 ,465 2,497 1,018 3,621 3,737 218 3,353 ,910 38,725 Aug. 1. 6,895 ,469 442 ,467 2,513 1,004 3,670 4,065 214 3,710 ,899 40,621 8. 6,556 ,198 437 2,499 998 3,674 3,918 3,541 38,681 15. 6,895 1,303 729 '541 2,145 1,177 3,663 3,783 216 3,400 J838 40,756 22. 6,721 1,212 688 ,521 2,157 1,143 3,701 4,115 3,738 39,087 29. 6,560 1,024 698 2,169 1,146 3,731 3,891 230 3.507 '927 39,310 Outside New York City 1961 Aug. 2 25,932 4,004 1,035 4,295 12,928 3,670 8,525 13,05 2,732 ,160 9,095 2,483 111,107 9 25,513 3,572 1,027 4,198 13,051 3,665 8,551 12,961 2,567 ,180 9,139 2,471 109,706 16 25,361 3,468 1,010 4,814 12,680 3,389 8,604 13,102 2,795 ,170 9,066 2,431 111,838 23 25,350 3,413 1,012 4,872 12,695 3,358 8,600 12,826 2,724 ,230 8,804 2,394 109,678 30 25,395 3,435 1,028 4,940 12,648 3,344 8,612 12,588 2,546 ,275 8,699 2,450 109,395 1962 July 4 24,807 1,977 1,692 5,324 12,236 3,578 11,13: 14,039 3,024 ,199 9,739 2,761 120,762 11 24,947 2,138 1,665 5,323 12,225 3,596 11,176 13,559 2,846 ,389 9,244 2,715 119,593 18 24,977 2,213 1,671 5,309 12,193 3,591 11,143 13,624 2,807 9,392 2,731 119,414 25 24,808 2,111 1,651 5,289 12,171 3,586 11,265 13,273 2,725 ,364 9,113 2,731 117,514 Aug. 1 24,743 2,104 1,643 5,270 12,154 3,57: 11,274 13,388 2,847 269 9,197 2,855 119,204 8 24,403 1,837 1,640 5,240 12,127 3,559 11,280 13,260 2,603 9,305 2,790 117,619 15 24,852 1,980 2,242 5,594 10,938 4,098 11,233 13,665 2,924 9,382 2,721 120,561 22 24,729 1,891 2,292 5,719 10,749 4,078 11,253 13,358 2,607 ,348 9,323 2,619 118,440 29 24,515 1,809 2,270 5,846 10,511 4,079 11,287 13,198 2,608 ,400 9,117 2,672 117,909 For notes see p. 1194. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1194 WEEKLY REPORTING MEMBER BANKS ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued [In millions of dollars] Deposits Borrowings Time Cap- De- Other ital Wednesday ju u T s n o t a e t d a d l - l ju p m s o a d a t e d s e n - i - d t d s -s Total 6 IPC g S l a o o t n c a v d a t t e l . e F ig o n r - 7 G U o .S v . t. c m m D c o t e i i o e m a s c - r - l - - Total 8 S in a g v s - IPC Oth S l a o e t n r c a d a t t e l ime e F ig o n r - 7 F B F. r a o n R m k . s F ot r h o e m rs li i a ti b e i s lbanks govt. Total— Leading Cities 1961 Aug. 2.. 129,731 62,381 89,427 64,044 5,107 1,682 4,086 11,201 40,304 28,862 6,389 2,783 1,962 122 1,714 5,241 12,610 9 127,484 61,998 87,04663,157 4,776 1,593 3,07911,211 40,438 28,955 6,394 2,799 1,975 399 1,439 5,30512,626 16........ 129,587 61,017 89,11364,013 4,712 1,689 4,11611,557 40,474 28.985 6,336 2,811 2,022 1,947 5,48812,624 23........ 127,367 61,434 86,846 6",2748 4,702 ,667 3,74811,055 40,521 29,015 6,351 2,811 2,027 1,561 5,40912,622 30........ 127,039 61.855 86,,379 62,935 4,847 ,598 3,56810,586 40,660 29,030 6,415 2,817 2,083 1,674 5,44912,655 1962 July 4. ....... 141,339 60,865 94,152 64,819 5,100 ,718 6,62611,911 47,187 32,740 ,437 3,405 2,228 45 2,279 5,147 13,322 11........ 138,884 61,567 91,629 65,190 4,632 ,645 4,450 11,989 47,255 r32,887 ,415 3,319 2,252 10 1,916 5,22413,311 18 138,776 61,768 91,53765,639 4,595 ,752 3,96911,917 47,239 32,981 ,343 3,283 2,251 634 1,697 5,30213,270 25........ 135,872 62,819 88,61564,644 4,771 ,655 3,55710,864 47,257 '33,044 ,296 3,273 2,263 72 1,657 5,36413,274 Aug. 1........ 138,769 62,451 91,527 65,116 5,129 ,671 4,369 11,301 47,242 33,114 ,251 3,252 2,269 133 2,136 5,42613,361 8........ 134,707 61,308 87,32663,018 4,953 ,611 3,07011,498 47,381 33,242 ,260 3,233 2,289 566 2,219 5,43613,372 15........ 140,054 60,518 92,58364,914 4,848 ,644 5,321 11,871 47,471 33,304 ,296 3.239 2,274 268 2,188 5,45313,354 22... 136,323 60,484 ;,735 6622,687 4,697 ,605 5,413 11,077 47,588 33.374 ,354 3,246 2,259 494 2,002 5,37013,338 135,630 60.638 87,90162,583 4,622 .565 4.917 10,920 47,729 33,404 ,428 3.255 2,282 2.547 5,57513.390 29........ New York City 1961 31,234 16,197 24,50616,660 265 1,261 1,238 3,060 6,728 2,673 2,140 248 1.533 76 638 2,734 3,629 Aug. 2........ 30,276 15,949 23,53716,336 234 1,181 937 2,830 6,739 2,685 2,121 253 1,541 123 719 2,792 3,637 9. ....... 30,525 15,795 23,73516,408 260 1,263 1,088 2,943 6,790 2,694 2,111 260 1,584 906 2; 826 3,639 16 30,132! 15,845 23,31916,229 239 1,229 962 2,922 6,813 2,697 2,121 262 1,592 671 2,845 3,638 23........ 30,047 15.967 23,19016,422 324 1,138 887 2,770 6,857 2,709 2.141 250 1,617 18 891 2,865 3.627 30........ 1962 July 4........ 33,916 15,709 25,91516,725 420 1,276 1,883 3.169 8,001 3,555 2,481 198 1,589 1,044 2,648 3,762 11 32,434 15,695 24,39916,421 284 1,217 1,212 2,957 8,035 3,586 2,455 195 1,614 837 2,726 3,755 18 32,823 15,640 24,80216,626 271 1,335 1,035 3,252 8,021 3,605 2,424 199 1,609 177 850 2,670 3,745 25........ 31,820 16,158 23,80816,588 260 1,234 938 2,902 8,012 3,625 2,392 193 1,618 400 2,758 3,747 Aug. 1........ 33,115 15,998 25,09916,743 296 1,229 1,246 3,083 8,016 3,643 2,375 197 1,620 1,026 2,702 3,778 8 30,962 15,295 22,897 ".1,5 728 256 1,198 886 2,927 8,065 3,677 2,388 195 1,623 115 1,085 2,738 3,781 15... 33,214 15,119 25,12616,362 293 1,202 1,492 3,162 8,088 3,687 2,408 199 1,610 29 1,046 2,691 3,776 22........ 31,564 15,217 23,44215,756 247 1,165 1,457 2,794 8,122 3,700 2,438 201 1,604 108 976 2,676 3,763 29 .... 31,523 15,139 23,35415,727 206 1,141 1,319 2,871 8,169 3,698 2,472 205 1,614 1,234 2.782 3,763 Outside New York City 1961 Aug. 2........ 98,497 46,184 64,92147,384 4,842 421 2,848 8,141 33,576 26,189 4,249 2,535 429 46 1,076 2,507 8,981 9.. ... 97,208 46,049 63,5"09 46,821 4,542 412 2,142 8,381 33,699 26,270 4,273 2,546 434 276 720 2,513 8,989 16..... 99,062 45,222 65,378 47,605 4,452 426 3,028 8,614 33,684 26,291 4,225 2,551 438 1,041 2,662 8,985 23 97,235 45,589 63,527 46,519 4,463 438 2,786 8,133 33,708 26,318 4,230 2,549 435 890 2,564 8,984 30 96,992 45,r~ 63,189 46,513 4,523 460 2,681 7,816 33,803 26,321 4,274 2,567 466 783 2,584 9,028 1962 July 4..... 107,423145,156 68,237 48,094 4,680 442 4,743 8,742 39,186 r29,185 r5.956 3,207 639 45 1,235 2,499 9,560 11..... 106,450 45,872 67,230 48,769 4,348 428 3,238 9,032 39,220r29,301 r5;960 3,124 638 10 1,079 2,498 9,556 18 105,953 46,128 66,735 49,013 4,324 417 2,934 8,665 39.218 r29,376 ^5,919 3,084 642 457 847 2,632 9,525 25..... 104,052 46,661 64,807 48,056 4,511 421 2,619 7,962 39;245 r29,419 r5,904 3,080 645 72 1,257 2,606 9,527 Aug. 1..... 105,654 46,453 66.428 48,373 4,833 442 3,123 8,218 39,226 29,471 5,876 3,055 649 133 1,110 2,724 9,583 8..... 103,745146,013 64.429 47,290 4,697 413 2,184 8,571 39,316 29,565 5,872 3,038 666 451 1,134 2,698 9,591 15..... 106,840! 45,399 67,457 48,552 4,555 442 3,829 8,709 39,383 29,617 5,r~ 3,040 664 239 1,142 2,762 9,578 22 104,759145,267 65,293 46,931 4.450 440 3,956 8,283 39,466 29,674 5,916 3,045 655 386 1,026 2,694 9,575 29... 104,107 45,499 64.547 46;856 4;416 424 3,598 8,049 39,560 29,706 5,956 3,050 668 69 1,313 2,793 9,627 1 After deduction of valuation reserves. 6 Includes certified and officers' checks and deposits of mutual savings 2 Exclusive of loans to domestic commercial banks and after deduction banks, not shewn separately. of valuation reserves; individual loan items are shown gross. 7 Deposits of foreign governments and official institutions, central banks, 3 Excludes cash items in process of collection. international institutions, banks in foreign countries, and foreign branches 4 Total demand and total time deposits. of U. S. banks other than reporting bank. 5 Demand deposits other than domestic corrmercial interbank and 8 Includes U. S. Govt., postal savings, domestic commercial interbank, U. S. Govt., less cash items in process of collection. and mutual savings banks, not shown separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BUSINESS LOANS OF BANKS 1195 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS [Net change in millions of dollars] Week Month Quarter Half year Industry1 1962 1962 1962 1961 1962 1961 A 2 u 9 g. Au 8 g. Aug. Aug. July June II I IV 1st. 1st. Classification basis New Old Durable goods manufacturing: Primary metals 16 1 -1 8 24 -62 8 -119 -12 68 -131 T M r a a c n h s i p n o e r r t y ation equipment - - 1 1 8 8 -11 7 4 1 6 7 -8 5 2 4 2 0 8 2 0 -1 -4 5 0 2 2 5 5 5 -5 2 0 7 1 6 3 9 8 -7 2 5 6 9 8 6 9 -100 Other fabricated metal products... -12 -2 8 -14 -26 41 50 76 -41 126 Other durable goods -5 5 5 10 5 19 90 51 112 16 -103 128 Nondurable goods manufacturing: Food, liquor, and tobacco 35 -28 46 -23 22 52 -101 31 -152 -345 397 -497 -498 Textiles, apparel, and leather 21 12 32 26 9 101 9 35 42 247 -290 289 177 Petroleum refining -1 -5 -2 3 12 7 -7 -12 -14 -53 60 -67 C O h th e e m r ic n a o l n s d a u n r d a b r l u e b g b o e o r ds 5 o -7 7 1 7 0 3 6 -21 -2 2 6 5 - - 7 3 7 5 6 1 8 4 1 3 6 7 4 3 1 9 0 - - 6 2 4 5 1 7 7 6 4i ^ Mining, including crude petroleum and natural gas -16 2 4 -10 -19 -10 -10 8 170 380 178 249 Trade: Commodity dealers 20 2 10 — 4 14 42 3 -34 -161 -77 357 -237 -325 Other wholesale 8 -2 5 1 19 32 i 32 52 -18 51 34 Transpo R rt e a ta ti i o l n, communication, and -17 15 25 -7 8 25 -18 2 52 10 10 61 > —175 other public utilities 12 49 15 -16 35 94 3 24 -223 -288 233 -510 -330 Construction -17 7 26 7 23 10 28 164 18 9 182 53 All other types of business, mainly services . . . . 8 -29 -7 -22 11 -40 21 62 127 79 297 205 406 Net change in classified loans 15 15 239 -26 187 429 -391 424 116 80 1,292 196 -463 Commercial and industrial change—• all weekly reporting banks 24 58 240 -26 192 488 r-400 500 340 94 1,115 434 2-387 1 Because of reclassifications as of Sept. 27, 1961, many categories are 2 Reflects new coverage; see June 1961 BULL., p. 654. not strictly comparable with prior data; for example, new "mining" NOTE.—Data for sample of about 200 banks reporting changes in their includes a part of old "other manufacturing and mining," with which larger loans; these banks hold about 95 per cent of total commercial and it is compared; a part of "metals and metal products"; and coal, crude industrial loans of all weekly reporting member banks and about 70 per petroleum, and natural gas from old "petroleum, coal, chemicals, and cent of those of all commercial banks. rubber." "Other durable" and "other nondurable" were in old "other End-of-week date shown. Figures for periods other than week are manufacturing and mining.*' based on weekly changes. BANK RATES ON SHORT-TERM BUSINESS LOANS [Per cent per annum] Size of loan Size of loan p A e a r n r i e d o a d lo A a l n l s 1— (tho 1 u 0 s — ands of 1 0 d 0 o — llars) 200 p A e a r n r i e d o a d lo A a l n l s (thou 10 s — ands of 1 0 d 0 o — llars) 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.:1 19 large cities: New York City: 1961—June 4.75 5.63 5.39 5.06 4.63 1953 3.7 5.0 4.4 3.9 3.5 Sept 4.75 5.65 5.36 5.06 4.64 1954 3.6 5.0 4.3 3.9 3.4 Dec 4.77 5.66 5.37 5.04 4.66 1955 . . 3.7 5.0 4.4 4.0 3.5 1962—Mar 4.78 5.65 5.36 5.04 4.68 June 4.78 5.66 5.36 5.09 4.68 1956 4.2 5.2 4.8 4.4 4.0 1957 4.6 5.5 5.1 4.8 4.5 7 northern and 1958 4.3 5.5 5.0 4.6 4.1 eastern cities: 1959 5.0 5.8 5.5 5.2 4.9 1961—June 4.95 5.84 5.45 5.15 4.82 I960 5.2 6.0 5.7 5.4 5.0 Sept 5.05 5.86 5.53 5.18 4.93 1961 5.0 5.9 5.5 5.2 4.8 Dec 4.96 5.82 5.51 5.22 4.81 1962—Mar 4.97 5.85 5.53 5.17 4.83 June 5.00 5.83 5.52 5.21 4.86 Quarter:* 19 large cities: 11 southern and western cities: 1961—June 4.97 5.89 5.53 5.18 4.80 1961—June 5.31 6.02 5.65 5.29 5.10 Sept 4.99 5.87 5.52 5.19 4.82 Sept 5.26 5.97 5.62 5.28 5.04 Dec 4.96 5.84 5.52 5.21 4.78 Dec 5.24 5.94 5.62 5.31 5.00 1962—Mar 4.98 5.89 5.54 5.21 4.81 1962—Mar 5.28 6.01 5.66 5.35 5.03 June 5.01 5.89 5.53 5.25 4.83 June 5.33 6.01 5.65 5.39 5.12 1 Based on new loans and renewals for first 15 days of month. per cent): 1953—Apr. 27, 3%; 1954—Mar. 17, 3; 1955—Aug. 4, 3%; NOTE.—Weighted averages. For description see Mar. 1949 BULL., Oct. 14, 3%; 1956—Apr. 13, 3y4; Aug. 21, 4; r957—Aug. 6, 4%; 1958— pp. 228-37. Bank prime rate was 3 per cent Jan. 1, 1953-Apr. 26, 1953. Jan. 22, 4; Apr. 21, 3%; Sept. 11, 4; 1959—May 18, 4%; Sept. 1, 5; and Changes thereafter occurred on the following dates (new levels shown, in 1960—Aug. 23, 4#. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1196 INTEREST RATES MONEY MARKET RATES [Per cent per annum] U. S. Government securities (taxable)4 Finance P co ri m m l e . pa C p O e . r b P an ri k m er e s' 3-month bills 6-month bills 9- to 12-month issues Period placed acceptpaper, directly, ances, 3- to 5- 4-to6- 3- to 6- 90 days3 Rate Rate Bills year monthsi months2 on new Market on new Market (market Others issues6 issue yield issue yield yield) 1959 3 97 3 82 3 49 3 405 3 37 3 832 3 79 4 11 4 33 I960 . 3.85 3.54 3.51 2.928 2.87 3.247 3.20 3.41 3.55 3.99 1961 2.97 2.68 2.81 2.378 2.36 2.605 2.59 2.81 2.91 3.60 1961 Aug 2.92 2.64 2.81 2.402 2.39 2.670 2.66 2.91 3.03 3.80 SeDt 3.05 2.68 2.84 2.304 2.28 2.689 2.68 2.88 3.03 3.77 Oct 3.00 2.79 2.75 2.350 2.30 2.702 2.66 2.90 2.97 3.64 Nov 2.98 2.74 2.75 2.458 2.48 2.686 2.70 2.90 2.95 3.68 Dec 3.19 2.93 2.87 2.617 2.60 2.875 2.88 2.97 3.03 3.82 1962—Jan 3.26 3.05 3.00 2.746 2.72 2.965 2.94 3.19 3.08 3.84 Feb 3.22 3.00 3.00 2.752 2.73 2.955 2.93 3.21 3.11 3.77 Mar 3.25 3.02 3.00 2.719 2.72 2.883 2.87 2.98 2.99 3.55 Apr 3.20 3.09 3.00 2.735 2.73 2.838 2.83 2.90 2.94 3.48 May 3.16 2.95 2.91 2.694 2.68 2.789 2.78 2.91 2.98 3.53 June 3.25 3.02 2.90 2.719 2.73 2.804 2.80 2.89 3.02 3.51 July 3.36 3.20 3.07 2.945 2.92 3.085 3.08 3.17 3.23 3.71 Aug 3.30 3.12 3.11 2.837 2.82 3.005 2.99 3.10 3.13 3.57 Week ending— 1962—Aug. 4 3.38 3.13 3.13 2.874 2.85 3.075 3.03 3.19 3.22 3.68 11 3.33 3.13 3.13 2.802 2.83 2.990 3.03 3.19 3.19 3.64 18 3.25 3.13 3.13 2.867 2.84 3.060 3.00 3.11 3.15 3.58 25 3.28 3.13 3.13 2.837 2.82 2.984 2.96 3.04 3.08 3.51 Sept. 1. 3.30 3.10 3.08 2.806 2.80 2.916 2.93 3.02 3.06 3.51 1 Averages of daily offering rates of dealers. * Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance cos., for varying maturi- closing bid prices. ties in the 90-179 day range. 5 Certificates of indebtedness and selected note and bond issues. 3 Averages of daily prevailing rates. 6 Selected note and bond issues. BOND AND STOCK YIELDS [Per cent per annum] Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio States Total i (longterm) Indus- Rail- Public Pre- Com- Com- Total i Aaa Baa Aaa Baa trial road utility ferred mon mon 1959 4.07 3.74 3.35 4.24 4.65 4.38 5.05 4.51 4.75 4.70 4.69 3.23 5.92 I960 4.01 3.69 3.26 4.22 4.73 4.41 5.19 4.59 4.92 4.69 4.75 3.46 5.88 1961 3.90 3.60 3.27 4.01 4.66 4.35 5.08 4.54 4.82 4.57 4.66 2.98 4.74 1961—Aug . . 4.00 3.62 3.33 3.96 4.73 4.45 5.11 4.60 4.92 4.67 4.69 2.91 Sept 4.02 3.64 3.33 4.02 4.74 4.45 5.12 4.61 4.94 4.67 4.69 2.93 4.87 Oct 3.98 3.59 3.28 3.98 4.73 4.42 5.13 4.60 4.92 4.66 4.62 2.91 Nov 3 98 3 57 3 27 3 96 4 70 4 39 5 11 4 58 4 89 4 63 4 59 2 83 Dec 4.06 3.63 3.32 4.04 4.71 4.42 5.10 4.59 4.91 4.62 4.64 2.85 5.10 1962 Jan 4 08 3.55 3 21 4 01 4.70 4 42 5 08 4.57 4 92 4.61 4 59 2 97 Feb 4.09 3.40 3.08 3.83 4.70 4.42 5.07 4.57 4.90 4.62 4.52 2.95 Mar 4.01 3.30 3.03 3.66 4.67 4.39 5.04 4.52 4.88 4.60 4.48 2.95 r5.00 Apr 3.89 3.21 2.98 3.55 4.63 4.33 5.02 4.46 4.86 4.56 4.45 3.05 May 3.88 3.21 2.98 3.55 4.58 4.28 5.00 4.42 4.83 4.50 4.45 3.32 3.90 3.31 3.06 3.65 4.59 4.28 5.02 4.45 4.86 4.47 4.52 3.78 '6.41 Julv 4.02 3.37 3.10 3.72 4.63 4.34 5.05 4.52 4.90 4.48 4.59 3.68 Aug 3.97 3.38 3.10 3.74 4.64 4.35 5.06 4.51 4.90 4.50 4.55 3.57 Week ending— 1962—Aug 4.. 4.03 3.42 3.13 3.78 4.65 4.37 5.07 4.54 4.90 4.50 4.58 3.61 4 00 3.44 3.15 3.80 4 64 4 36 5 07 4.54 4 91 4 51 4 57 3 63 18 3.98 3.41 3.13 3.78 4.65 4.36 5.07 4.52 4.91 4.51 4 55 3 56 25 . . 3.94 3.33 3.05 3.70 4.63 4.34 5.05 4.50 4.91 4.50 4.51 3.49 Sept. 1 3.94 3.31 3.03 3.66 4.63 4.33 5.05 4.48 4.90 4.50 4.52 3.56 Number of issues 4-10 20 5 5 120 30 30 40 40 40 14 500 500 i Includes bonds rated Aa and A, data for which are not shown sep- figures Corp. bonds: Averages of daily figures. Both of these series are arately. Because of a limited number of suitable issues, the number of from Moody's Investors Service series. corporate bonds in some groups has varied somewhat. Stocks: Standard and Poor's Corp. series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. NOTE.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on 8 median yields for a sample of non- Monthly and weekly yields are computed as follows: U.S. Govt. bonds: callable issues—12 industrial and 2 public utility; common stock ratios Averages of daily figures for bonds maturing or callable in 10 years or on the 500 stocks in the price index. Quarterly earnings are seasonally more. adjusted at annual rates. State and local govt. bonds: General obligations only, based on Thurs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1197 SECURITY MARKETS SECURITY PRICES Bonds Common stocks Volume Standard and Poor's index Securities and Exchange Commission index of (1941-43= 10) (1957-59= 100) trad- Period ( G t U l e o o r . n m S v g . t ) . - g n ( r h i M c a i i d g u p e h - a ) - l ( g C h r p r a i a o o g t d r - e h - e - ) Total d t I r u n i s a - - l R ro a a i d l- P u i u l t t i i b y c l - - Total Tot M al anu r D f a a b u c l - t e urin N r d a g o b u n l - e - T p t r o i a o r n n ta s - - P u i u t t i y b l - - T n s a a r e i f n c a n r i e v d - d c - e e , , M in i g n- s t s h h a i ( a o n o n i r n f g u d es - s ) 1959 85.49 100.7 95.0 57.38 61.45 35.09 44.15 116.7 116.5 120.8 112.6 115.6 117.6 122.3 95.0 3,242 1960 86.22 103.9 94.7 55.85 59.43 30.31 46.86 113.9 110.9 117.3 104.9 95.8 129.3 127.4 73.8 3,042 1961 87.55 107.8 95.2 66.27 71.42 32.84 60.18 134.2 126.7 129.2 124.4 105.7 168.4 160.2 92.5 4,085 1961_Aug 86.27 106.5 93.9 67.79 71.69 32.76 61.19 137.4 130.1 131.3 129.0 107.0 170.6 164.2 92.8 3,545 Sept 86.09 106.6 93.9 67.26 70.89 33.02 62.19 136.2 128.9 131.7 126.4 106.8 168.9 166.4 87.3 3,193 Oct 86.61 107.7 94.6 68.00 71.42 34.53 64.15 138.0 129.1 132.2 126.4 110. 173.9 176.6 90.3 3,318 Nov 86.52 108.1 94.9 71.08 74.72 34.30 67.19 144.0 133.7 135.7 131.9 109.9 186.0 187.7 95.1 4,390 Dec 85.61 107.3 94.5 71.74 75.81 33.21 65.77 145.8 135.6 138. 133.3 107.9 188.4 188.0 101.1 4,120 1962—Jan 85.34 109.9 94.5 69.07 72.99 33.77 62.69 140.4 130.8 133.6 128. 108.5 181.4 175.2 104.1 3,677 Feb 85.17 110.5 94.5 70.22 74.22 34.23 63.70 142.8 133.4 134.4 132.6 110.5 183.0 176.4 109.7 3,481 Mar 86.21 111.9 94.9 70.29 74.22 33.45 64.51 142.9 133.5 134.0 133. 107.4 184.2 175.2 106.6 3,113 Apr 87.69 113.7 95.4 68.05 71.64 32.31 63.86 138.0 128.2 128.0 128.5 103.1 180.3 172.0 103.9 3,263 May 87.87 113.5 95.9 62.99 66.32 30.71 58.84 128.3 119.0 117.5 120.6 98.5 167.1 161.6 97.5 5,045 June 87.61 111.2 95.7 55.63 58.32 28.05 53.32 114.3 105.7 103.2 108. 90.2 151.1 141.3 88.3 4,770 July 86.07 ri 10.2 95.4 56.97 59.61 28.29 55.51 116.0 106.9 104.4 109.2 90.0 156.7 139.4 90.9 3,532 Aug 86.64 110.1 95.3 58.52 61.29 28.09 56.96 119.5 110.4 109.1 111.7 90.6 160.7 143.6 92.7 3,368 Week ending— 1962—Aug. 4 85.97 109.0 95.1 57.98 60.73 28.07 56.28 118.3 109.4 107.6 111.0 90.4 159.3 139.1 93.2 3,378 86.27 109.1 95.3 57.53 60.22 27.67 56.18 117.1 108.2 106.6 109.8 88.8 157.5 139.6 91.8 2,866 is'.'.'.'.'.'.'.'.'.86.57 110.0 95.3 58.44 61.23 27.87 56.76 120.2 110.9 109.9 111.9 90.2 161.8 145.4 92.1 3,762 25 87.03 110.9 95.4 59.51 62.37 28.37 57.68 121.5 112.2 111.3 113.1 92.2 163.1 147.3 93.2 4,099 Sept. 1 87.03 111.4 95.6 58.96 61.71 28.43 57.60 120.6 111.4 109.9 112.S 91.5 161.8 146.6 93.3 2,866 Number of issues. 15 17 500 425 ~~25~ 50 300 193 108 85 18 34 45 10 NOTE.—Annual data are averages of monthly data. Monthly and Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. Comweekly data are computed as follows: U. S. Govt. bonds, derived from mon stocks, Standard and Poor's index based on averages of daily figures; average market yields in preceding table on basis of an assumed 3 per Securities and Exchange Commission index on weekly closing prices. cent, 20-year bond, averages of daily figures. Municipal and corporate Volume of trading, average daily trading in stocks on the N. Y. Stock bonds, derived from average yields, as computed by Standard and Poor's Exchange for a 5Vi-hour trading day. STOCK MARKET CREDIT [In millions of dollars] Customer credit Broker and dealer credit Net debit balances with Bank loans to others than Month se T cu o r t i a ti l es N. f i Y rm . s S s to ec c u k r e E d x c b h y a — nge bro c k h e a r s s i n a g n d a n d d e a c l a e r r r s y i f n o g r — pur- Money borrowed on Cust n o e m t ers' other than free U. S. Govt. credit securities U. S. Govt. Other- U. S. Govt. Other- U. S. Govt. Other- balances securities securities securities securities securities securities 1958—Dec 4,537 146 3,285 63 1,252 234 2,071 1,159 1959—Dec 4,461 150 3,280 164 1,181 221 2,362 996 1960—Dec 4,415 95 3,222 134 1,193 142 2,133 1,135 1961—Aug 5,349 49 3,972 102 1 .^77 56 2,679 ,208 Sept i 5,311 46 3,991 109 i 1,3 W 64 2,666 ,227 Oct 5,333 44 4,029 103 1,301 56 2,654 ,214 Nov 5,460 39 4,141 102 1,J19 51 2,752 ,213 Dec 5,602 35 4,259 125 1,343 48 2,954 ,219 1962—Jan 5,464 34 4,111 111 1,353 51 2,860 ,225 Feb 5,426 34 4,066 133 1,360 71 2,812 ,190 Mar 5,457 34 4,083 105 1,374 52 2,912 ,154 Apr 5,491 36 4,079 117 1,412 57 3,015 ,110 May 5,408 35 4,000 91 1,408 44 2,845 ,205 June 4,938 32 3,605 92 1,333 46 2,194 ,374 July 4,876 29 3,562 83 1,314 32 2,091 ,252 Aug 5,049 23 3,749 80 1,300 35 2.472 ,127 i Reclassification of loans reduced these items by $66 million, see borrowed includes borrowings from banks and from other lenders except Dec. 1961 Bull., p. 1436, note 3. member firms of national securities exchanges. NOTE.—Data in the first three cols, and last col. are for end of month, Bank loans to others than brokers and dealers: figures are for weekly in the other cols., for last Wed. reporting member banks. Before July 1959, loans for purchasing or Net debit balances and broker and dealer credit: ledger balances of carrying U. S. Govt. securities were reported separately only by N. Y. member firms of the N. Y. Stock Exchange carrying margin accounts, as and Chicago banks. Accordingly, for that period the fifth col. includes reported to the Exchange. Customers' debit and free credit balances any loans for purchasing or carrying such securities at other reporting exclude balances maintained with the reporting firm by other member banks. Composition of series also changed beginning with July 1959; firms of national securities exhanges and balances of the reporting firm revised data for the new reporting series (but not for the breakdown o and of general partners of the reporting firm. Balances are net for each loans by purpose) are available back through July 1958 and have been customer—i.e., all accounts of one customer are consolidated. Money incorporated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1198 OPEN MARKET PAPER; SAVINGS INSTITUTIONS 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 period Accepting banks F. R. Goods stored in or Banks Im- Ex- shipped between Placed Placed Others ports ports Dollar points in— Total through direct- into from exdealers 1 ly 2 To- Own Bills Own For- United United change tal bills bought acct. eign States States United Foreign corr. States countries 1956 2,183 506 1,677 967 227 155 72 69 50 621 261 329 2 227 148 1957 2,672 551 2,121 1,307 287 194 94 66 76 878 278 456 46 296 232 1958 32,751 840 31 911 1,194 302 238 64 49 68 775 254 349 83 244 263 1959 3,202 677 2,525 1,151 319 282 36 75 82 675 357 309 74 162 249 I960 4,497 1,358 3 139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961 July 4,991 J. 534 3,457 2,301 915 727 188 32 144 1,210 415 926 45 186 729 Aug 4,946 1,617 3,329 2,400 970 753 217 34 137 1,259 429 964 49 192 765 Sept 4,875 1,730 3,145 2,422 946 740 207 35 123 1,318 452 964 59 191 757 Oct 5,119 1,818 3 301 2,491 1,035 829 206 38 117 1,301 457 949 91 225 769 Nov 5,349 1,868 3,481 2,555 1,122 871 251 43 110 1,280 461 939 98 287 770 Dec 4,686 [,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962—Jan. 5,556 ,762 3,794 2,621 1,163 804 359 45 120 1,294 477 946 74 271 853 Feb 5,520 ,762 3,758 2,559 1,093 788 305 44 113 1,309 472 915 106 223 844 Mar 5,713 ,876 3,837 2,498 1,072 774 298 42 100 1,284 474 889 86 182 867 Apr 5 640 1,883 3 757 2,392 981 763 218 36 94 1,281 479 826 74 158 855 May 5,917 ,869 4,048 2,345 949 733 216 33 112 1,251 462 787 96 145 855 June 5,864 878 3,986 2,342 965 731 234 60 85 1,232 473 751 145 117 857 July 6,169 >,002 4,167 2,306 1,009 736 273 43 80 1,175 485 705 143 93 881 : 1 As reported by dealers; includes finance co. paper as well as other 3 Beginning with Nov. 1958, series includes all paper with maturity commercial paper sold in the open market. of 270 days or more. Figures on old basis for Dec. were (in millions): 2 As reported by finance cos. that place their paper directly with total $2,739; placed directly, $1,899. nvestors. MUTUAL SAVINGS BANKS [Amounts in millions of dollars] Loans Securities Total assets— End of period M ga o g r e t- Other G U o . v S t . . S g l a o o t n c a v d a t t e l . C ot r o a h a n r e t p d e r o 1 - a C s a se sh ts O as t s h e e ts r s l a T u ia a t c r o i b n p c e t i d t l s a l s u i l . - s D i e t p s o 2 s- l O ia t t i b h e i s e li r - S c u o a r u c p n - l t u s s N c M u o m m or b m t e g i r a tm ge A e n m lo ts o a n u 3 nt 1941 4 787 89 3 592 86 829 689 11 772 10 503 38 1 231 1945 4) 202 62 10,650 1,2.57 606 185 16,962 15,332 48 1,582 1954 14,845 188 8,755 608 3,548 1,026 380 29,350 26,351 261 2,738 1955 17 279 211 8,464 646 3,366 966 414 31,346 28,182 310 2,854 1956 19,559 248 7,982 675 3,549 920 448 33,381 30,026 369 2,986 1957 20,971 253 7,583 685 4,344 889 490 35,215 31,683 427 3,105 1958 23,038 320 7,270 729 4,971 921 535 37,784 34,031 526 3,227 89,912 1,664 1959 * 24,769 358 6,871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 I 170 I960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1961 June 27,771 417 6,296 687 5,158 861 616 41,806 37,427 720 3,659 66,467 [,674 July 27,972 385 6,314 685 5,160 835 620 41,970 37,450 852 3,66S 66,544 1,792 Aug 28,179 431 6,320 686 5,137 821 629 42,202 37,549 935 3,718 64,910 1,536 Sept 28,335 455 6,305 687 5,118 867 654 42,422 37,859 823 3,739 65,662 I 526 Oct 28,513 420 6,185 682 5,062 840 645 42,348 37,844 788 3,716 62,918 1,546 Nov 28,680 469 6,172 677 5,042 847 642 42,529 37,892 857 3,779 59,882 1,533 Dec 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1962—Jan 29,145 455 6,245 669 5,064 837 655 43,071 38,446 845 3,780 68 614 I 588 Feb 29,333 461 6,322 651 5,065 884 661 43,378 38,611 944 3,823 65,839 [ 644 Mar 29,563 508 6,531 633 5,090 896 676 43,897 39,083 973 3,840 69,223 £Q8 Apr 29,833 468 6,315 607 5,055 817 671 43,766 39,032 923 3,811 73,401 1 817 May 30,087 537 6,331 587 5,057 829 670 44,100 39,216 1,016 3,868 78,707 1 897 June 30,404 516 6,291 584 5,064 881 675 44,416 39.638 919 3,859 79,248 1,940 1 Includes securities of foreign governments and international organiza- NOTE.—National Assn. of Mutual Savings Banks data; figures are tions and U. S. Govt. agencies not guaranteed, as well as corporate estimates for all savings banks in the United States and differ somewhat securities. from those shown elsewhere in BULLETIN; the latter are for call dates and 2 See note 4, p. 1185. are based on reports filed with U. S. Govt. and State bank supervisory 3 Commitments outstanding of banks in N.Y. State as reported to the agencies. Loans are shown net of valuation reserves. Savings Banks Association of the State of New York. ^ Data reflect consolidation of a large mutual savings bank with a commercial bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SAVINGS INSTITUTIONS 1199 LIFE INSURANCE COMPANIES [In millions of dollars] Government securities Business securities End of period 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 Foreign1 Total Bonds Stocks Mort- Real P lo o a li n c s y O as t s h e e ts r Statement value: 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 1954 84,486 12,262 9,070 1,846 ,346 37,300 34,032 3,268 25,976 2,298 3,127 3,523 1955 90,432 11,829 8,576 2,038 ,215 39,545 35,912 3,633 29,445 2,581 3,290 3,743 1956 96,011 11,067 7,555 2,273 ,239 41,543 38,040 3,503 32,989 2,817 3,519 4,076 1957 101,309 10,690 7,029 2,376 ,285 44,057 40,666 3,391 35,236 3,119 3,869 4,338 1958 107,580 11,234 7,183 2,681 ,370 47,108 42,999 4,109 37,062 3,364 4,188 4,624 1959 113,650 11,581 6,868 3,200 ,513 49,666 45,105 4,561 39,197 3,651 4,618 4,937 1960 119,576 11,679 6,427 3,588 ,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 Book value: 1959—Dec.... 113,650 11,599 6,858 3,22! ,520 48,840 45,157 3,683 39,237 3,678 4,620 5.676 I960—Dec.'.. 119,576 11,699 6,428 3,606 665 51,063 46,967 4,086 41,815 3,796 5,233 5,980 1961—June... 122,751 11,881 6,369 3,761 ,751 52,308 47,966 4,342 42,945 3,851 5,509 6,257 July... 123,381 11,972 6,440 3,786 ,745 52,623 48,245 4,378 43,052 3,870 5,541 6,324 Aug.... 123,902 12,021 6,440 3,822 ,759 52,839 48,424 4,415 43,216 3,901 5,580 6,345 Sept.... 124,411 12,057 6,390 3,851 ,816 53,003 48,533 4,470 43,381 3,917 5,618 6,435 Oct.... 125,064 12,093 6,403 3,868 ,822 53,292 48,767 4,525 43,580 3,936 5,652 6,511 Nov.... 125,706 12,133 6,360 3,904 ,869 53,473 48,891 4,582 43,815 3,952 5,683 6,650 Dec.. 126,589 11,893 6,104 3,922 ,867 53,938 49,158 4,780 44,241 3,966 5,720 6,831 1962—Jan.... 127,311 12,155 6,314 3,958 ,883 54,329 49,506 4,823 44,378 3,973 5,768 6,708 Feb.... 127,731 12,196 6,335 3,960 ,901 54,519 49,657 4,862 44,494 3,992 5,792 6,738 Mar.... 128,108 12,248 6,257 4,078 ,913 54,704 49,814 4,890 44,637 3,989 5,834 6,696 Apr.... 128,569 12,341 6,351 4,064 ,926 54,965 50,039 4,926 44,751 4,010 5,880 6,622 May... 128,931 12,323 6,325 4,050 ,948 55,274 50,307 4,967 44,946 4,024 5,927 6,437 June... 129,144 12,237 6,230 4,058 ,949 55,445 50,491 4,954 45,142 4,043 5,981 6,296 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item separately, but are included, in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS [In millions of dollars] Assets Liabilities Total Mortgage E p n er d i o o d f M ga o g r e t s - s G U ec o . u S v r . t i . - Cash Other i a li s a T s b e o i t l t s i a t 2 i l — es S c a a v p i i n ta g l s u R n e d a s i n e v r d i v d e e s d B m or o r n o e w y e 3 d L p o ro an ce s s i s n Other co m l m o e a m n n t i s tties profits 1941 4 578 107 344 775 6,049 4 682 475 256 f16 1945 5,376 2,420 450 356 8,747 7,365 644 336 402 1954 26,108 2,013 1,971 1,469 31,633 27,252 2,187 950 ,?44 1955 31,408 2 338 2,063 1,789 37,656 32 142 2 557 1 546 1411 833 19*>6 35,729 2,782 2,119 2,199 42,875 37,148 2,950 1,347 1,430 843 1957 40,007 3,173 2,146 2,770 48,138 41,912 3,363 1,379 1,484 862 1958 45,627 3,819 2,585 3,108 35,139 47,976 3,845 1,444 1,161 713 1,475 1959 53,141 4,477 2,183 3,729 63,530 54,583 4,393 2,387 1 293 874 1 285 1960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,833 5,222 3,298 4,743 82,096 70,851 5,721 2,863 1,547 1,114 1,908 1961—June 64,058 4,997 2,951 4,491 76,497 66,570 5,288 2,029 1,538 1,072 2,120 July 64 795 4,989 2,724 4,341 76,849 66,681 5 282 2,028 1 554 1,304 2 144 Auc ..... 65 705 5 055 2,638 4,417 77,815 67 177 5 286 2 160 1 596 1,596 2 186 Sept 66,507 5,050 2,685 4,500 78,742 67,839 5,290 2,290 1,589 1,734 2,110 Oct. 67,317 5 095 2,766 4,603 79,781 68 565 5 289 2 364 1 579 1 984 2 128 Nov 68,069 5,177 2,850 4,801 80,897 69,340 5.293 2,445 1,558 2,261 2,028 Dec 68,833 5,222 3,298 4,743 82,096 70,851 5,721 2,863 1,547 1,114 1,908 1962 Tan 69,368 5,408 2,933 4,628 82,337 71,342 5,745 2,480 1,488 1,282 1 988 Feb 69,968 5,503 3,031 4,668 83,170 71,920 5,748 2,384 1,539 1,579 2,150 Mar 70,769 5,539 3,162 4,761 84,231 72,*54 5,751 2,301 1 657 1,668 2 335 71,616 5,493 3,084 4,851 85,044 73,240 5,747 ?,427 1,795 1,835 2,474 May 72,587 5,480 3,094 5,264 86,425 74,022 5,753 2,525 1,911 2,214 2,616 June 73,631 5,413 3,357 5,206 87,607 75,449 6,042 2.890 1,985 1,241 2,556 1 Includes other loans, stock in the Federal home loan banks, other 3 Consists of advances from FHLB and other borrowing. investments, real estate owned and sold on contract, and office buildings and fixtures. NOTE.—Federal Savings and Loan Insurance Corp. data; figures are 2 Before 1958 mortgages are net of mortgage pledged shares. Asset estimates for all savings and loan assns. in the United States. Data items will not add to total assets, which include gross mortgages with no beginning with 1954 are based on monthly reports of insured assns. and deductions for mortgage pledged shares. Beginning with January 1958, annual reports of noninsured assns. Data before 1954 are based entirely no deduction is made for mortgage pledged shares. These have declined on annual reports. Data for current and preceding year are preliminary consistently in recent years and amounted to $42 million at the end of even when revised. 1957. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1200 FEDERAL FINANCE FEDERAL FISCAL OPERATIONS: SUMMARY [In millions of dollars] Derivation of U. S. Government cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net rects. Change Less: Bu n d e g t et, T f P r u l u n u s d s t s : g I L o n e v t s r t s a . : - i E r T q e o c u t a t s a l . s l 2 : Budget T f P u l r n u u d s s : s t m A L e d e n j s u t s s s : t 3 - E p T q a o u y a t t a l s s l . : payts. & (d d a i i e r n g b e e t c n t .) a I g t n r e v b u n e y s . s t s t & . L N c d e a e o s s b n s h t : - Eq N ua et ls : Cal. year—1959.. . 72,738 18,346 3,480 87,553 79,778 19,759 3,978 95,559 -8,006 10,112 -546 2,079 8,578 I960.. . 79,518 21,773 2,946 98,287 77,565 21,285 4,156 94,694 3,593 -549 1,629 491 -2,669 1961.. . 78,157 24,115 4,279 97,929 84,463 24,542 4,268 104,738 -6,809 6,791 -434 470 6,755 Fiscal year—1959... . 67,915 16,950 3,161 81,660 80,342 18,462 4,002 94,804 -13,144 9,656 -1,181 2,160 8,678 I960.... 77,763 20,534 3,167 95,078 76,539 20,891 3,129 94,301 111 3,371 953 597 1,821 1961.... 77,659 23,583 3,946 97,242 81.515 23,016 5,003 99,528 -2,286 2,102 870 536 698 1962P... 81,360 24,336 3,786 101,853 87,668 24,118 4,195 107.591 -5,738 11,009 483 923 9,602 Half year : I960—July-Dec... 35,329 10,141 1,449 43,992 40,217 10,483 2,013 48,687 -4,695 3,409 -182 468 3,124 1961— Jan.-June... 42,330 13,442 2,497 53,249 41,298 12,533 2,990 50,840 2,408 -1,307 1,052 68 -2,426 July-Dec.., 35,826 10,673 1,782 44,680 43,165 12,010 1,278 53,898 -9,217 8,098 1,486 402 9,180 1962—Jan.-June^.. 45,534 13,664 2,004 57,173 44,503 12,107 2,917 53,693 3,480 2,911 1,969 521 422 Month: 1961—July 2,982 1,002 188 3,793! 6,322 1,872 293 7,902 -4,109 3,498 -863 195 4,167 Aug 6,367 3,292 294 9,357 7,631 2,048 -873 10,552 -1,195 1,412 1,291 -442 563 Sept 8,945 1,478 180 10,236 6,771 2,203 709 8,266 1,970 448 -545 54 939 Oct 3,141 979 239 3,872 7,796 1,994 405 9,385 -5,512 1,934 -905 64 2,775 Nov 6,424 2,438 304 8,554 7,485 1,958 225 9,218 -663 1,519 396 417 707 Dec 7,967 1,484 577 8,868 7,160 1,934 519 8,576 292 -716 -860 114 30 1962—Jan 5,357 866 250 5,968 7,395 2,322 991 8,726 -2,758 608 -737 102 1,243 Feb 6,729 2,743 -98 9,567| 6,858 2,027 -82 8,967 600 450 366 31 53 Mar 9,104 1,828 245 10,6851 7,749 2,040 1,525 8,263 2,422 -641 329 223 1,193 Apr 5,754 1,587 279 7,060| 7.289 1,867 83 9,074 -2,014 784 -737 39 1,482 May 7,024 4,053 222 10,850 7; 229 1,591 -340 9,160 1,690 2,386 2,168 85 133 Jp 11.566 2,586 1,106 13,042 7,983 2,261 741 9.503 3.539 -675 581 41 1,296 3,566 1,194 190 4,567 7,252 1,859 -203 9,314 -4.747 -62 -940 101 778 Effects of operations on Treasurer's account Net operating transactions Net financing transactions ca C sh h a b n a g l e a n i c n es Tre (e a n s d u r o e f r 's p e a r c i c o o d u ) nt Period Agencies & trusts Change Operating bal. B s d u u e r o f d p i r g c lu i e t s t f T u r n u d s s t a C c l c e o a u ri n n t g s i M ss s u a e o a r c f k n .4 e c t e in I G n s v e U o e c v . s 4 t t . S . . p d g d u i r i r e b o n e b l s c i t s c t T o r H u e t a e s s l i d u d r e y a T c u c r r e e o a r u ' s s n - t Balance b F a . n R ks . a l T a c o n c a a d t x n s. O as n t s h e e t e ts r Fiscal year—1959 -12,427 -1,511 -29 71 1,112 8,363 -23 -4,399 5,350 535 3,744 1,071 1960 1,224 -359 -149 1,023 -714 1,625 — 4 2,654 8,005 504 6,458 1,043 1961 -3,856 565 285 -733 -435 2,640 -222 -1,311 6,694 408 5,453 833 -6,308 219 568 658 -445 9,230 186 3,736 10,430 612 8,815 1,003 Half year: I960—July-Dec -4,888 -341 19 -493 275 3,886 52 -1,594 6,411 485 5,165 761 1961—Jan.-June 1,032 906 266 -240 -710 -1,246 -274 283 6,694 408 5,453 833 July-Dec -7,339 -1,338 -137 394 1,221 7,198 199 -200 6,494 465 5,157 872 1962—Jan.-June P 1,031 1,557 705 264 -1,666 2,032 -13 3,936 10,430 612 8,815 1,003 Month: 1961—July -3,340 -871 34 24 780 3,433 163 -101 6,593 415 5,287 891 Aug -1,265 1,244 -549 32 -1,397 1,310 -52 -572 6,020 543 4,745 732 Sept 2,174 -726 663 108 662 35 -20 2,936 8,956 348 7,754 853 Oct -4,655 -1,015 170 33 828 1,911 30 -2.759 6,197 502 4,834 861 Nov -1,060 479 -560 28 -191 1.350 -17 63 6,261 489 4,930 842 Dec 807 -450 106 168 540 -842 95 234 6,494 465 5,157 872 1962—Jan -2,038 -1,455 337 165 1,137 345 4 -1,513 4,981 362 3,552 1,067 Feb -129 716 -66 102 -437 470 12 644 5,626 449 4,172 1,005 Mar 1,356 -212 915 55 13 -896 -62 1,293 6,919 403 5,568 948 Apr -1,535 -279 10 -43 455 864 395 -924 5,995 569 4,150 1,276 May -205 2,461 -449 -21 -2,182 2,222 -319 2,145 8,140 526 6,623 991 June*3 3,583 325 -42 5 -651 -973 -43 2,290 10,430 612 8,815 1,003 July -3,686 -664 -163 -119 992 -325 85 -4,051 6,380 390 5,089 901 1 Primarily interest payments by Treasury to trust accounts and accumu- 4 Excludes net transactions of govt. sponsored enterprises. lat 2 i o I n n s c l t u o d U es . s S m . a e l m l p a l d o j y u e s e tm s e tr n u ts s t n f o u t n d sh s. own separately. 5 Primarily military defense, military assistance, and atomic energy. 3 Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing NOTE.—Treasury Dept. & Bureau of the Budget. accounts, and (4) govt. sponsored enterprises. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FINANCE 1201 FEDERAL FISCAL OPERATIONS: DETAILS [In millions of dollars] Budget receipts Selec ( t I e R d S e x d c a is t e a ) taxes Period Transfers to trusts Indiv. taxes Net 2 O ag ld e - H w ig a h y - R r . e- R. fu R n e d - s Total W he it ld h- Other C r t a a o t x r io e p s n o- ta c E i x x s e e - s p m t E a l x o m en e y - s t - O ce r t i e h p - e ts r Liquor b T ac o c - o a M t n a d i f l r e r s r e . s tire. Fiscal year—1959... 67,915 7,920 2,074 525 5,114 83,904 29,001 11,733 18,092 10,760 8,854 5,464 3,002 1,807 4,315 1960... 77,763 10,122 2,539 607 5,237 96,96231,675 13,271 22,179 11,865 11,159 6,813 3,194 1,932 5,114 1961... 77,659 11,490 2,798 571 5,976 99,49132,978 13,175 21,765 12,064 12,502 7,007 3,213 1,991 5,294 81,360 11,557 2,949 570 6,265 103,786 -3'6,216 14,404 21,296 12,749 12,726 6,395 3,341 2,026 5,536 Half year: I960—July-Dec... 35,329 4,762 1,497 297 872 43,07016,616 3,185 8,838 6,238 5,063 3,130 1,685 1,007 2,724 1961—Jan.-June.. 42,330 6,728 1,301 274 5,104 56,42116,362 9,990 12,927 5,826 7,439 3,877 1,528 984 2,570 July-Dec... 35,826 4,741 1,533 278 885 43,57517,652 3,189 8,259 6,394 5,024 3,057 1,754 1,035 2,656 1962—Jan.-June*5. 45,534 6,816 1,416 292 5.380 60,21118,564 1,215 13,037 6,355 7,702 3,338 1,587 991 2,880 Month : 1961—July 2,982 291 253 14 178 3,779 1,235 245 520 975 306 498 238 137 Aug 6,367 1,736 269 84 208 8,713 4,654 161 382 1,197 1,821 498 292 196 [•1,379 Sept 8,945 828 267 55 186 10,285 2,662 2,017 3,251 983 884 488 284 169 J Oct 3,141 239 258 1 162 3,811 1,399 215 408 1,102 241 446 344 184 Nov 6,424 1,189 231 76 86 8,007 4,767 123 377 1,123 1,266 351 343 184 }1,277 Dec 7,967 458 255 47 67 8,980 2,935 428 3,322 1,013 505 777 254 165 1962—Jan 5,357 152 233 11 73 5,959 1,245 2,325 466 1,009 353 561 224 140 Feb 6,729 1,620 207 81 743 9,773 5,124 786 400 967 2,080 416 189 116 1,524 Mar 9,104 1,119 248 50 1,813 12,354 2,896 832 5,879 1,140 1,188 419 313 215 Apr 5,754 729 230 13 1,417 8,153 1,017 4,330 445 959 745 657 245 158 May 7,024 2,181 264 82 1,101 10,658 5,287 955 469 1,157 2,266 524 305 169 1,356 June** 11,566 1,013 233 57 233 13,315 2,994 1,985 5,377 1,123 1.071 765 311 192 July 3,566 436 281 12 165 4,540 1,199 299 525 1,106 450 961 Budget expenditures Period Total 2 f t e i N n d o s e n a e - - a l s a I ff n a t i l r . s s S e p r a e a r - c c e h c A ul g t r u i r - e so t N u u re a r r - a c t- l es t m C r a a o e n n r m d s c p e - . & H d e i o c n v u o g e s m l - . . l H w ab e e o a lf r l a , t r h & e , Ed ti u o c n a- e V ra e n t- s In e t s e t r- G g e o r e v a n l t - . Fiscal year—1959... 80,342 46,491 3,780 145 6,590 1,670 2,017 970 3,877 732 5,287 7,671 1,466 1960... 76,539 45,691 832 401 4,882 1,714 1,963 122 3,690 866 5,266 9,266 1,542 1961... 81,515 47,494 500 744 5,173 2,006 2,573 320 4,244 943 5,414 9,050 1,709 1962^.. 87,668 51,042 771 1,257 6,036 2,133 2,755 335 4,425 ,076 5,404 9,218 1,874 Half year: I960—July-Dec... 40,217 23,225 1,166 332 2,863 1,058 1,214 208 1,955 408 2,659 4,587 852 1961—Jan.-June.. 41,298 24,269 1,334 412 2,310 948 1,359 112 2,289 535 2,755 4,463 856 July-Dec... 43,165 23,982 1,651 481 3,543 1,178 1,262 345 2,396 455 2,724 4,502 953 1962—Jan.-June*'. 44,503 27,060 1,120 776 2,493 955 1,493 -10 2.029 621 2,680 4.716 921 Month: 1961—July 6,322 3,457 223 486 153 151 110 345 64 423 773 | 128 Aug 7,631 4,048 264 703 235 273 33 421 132 493 739 I 250 Sept 6,771 3,861 288 421 218 236 6 350 66 422 740 94 Oct 7,796 4,067 363 912 220 219 113 413 69 449 718 187 Nov 7,485 4,261 326 486 188 176 105 459 54 452 744 138 Dec 7,160 4,286 172 550 166 206 -21 409 68 485 788 157 1962—Jan 7,395 4,290 237 394 154 190 41 467 113 503 186 Feb 6,858 4,099 236 101 371 167 258 72 123 108 457 764 118 Mar 7,749 4,598 233 140 504 134 311 19 367 102 449 733 l 161 Apr 7,289 4,314 273 141 363 143 214 -10 381 84 438 780 175 May 7,229 4,786 -110 155 300 161 231 -29 297 98 434 780 129 June*7 7,983 4,970 246 142 562 196 290 -105 394 116 399 847 158 July 7,252 3,947 95 135 664 191 156 190 453 84 442 834 138 1960 1961 1962 1960 1961 Item III IV II III IV I I II III IV Seasonally adjusted Not seasonally adjusted Cash budget: Receipts... 24.9 24.6 23.3 24.6 249 25.3 24.6 26. 23.4 206 24.8 28.5 23.4 21.3 26.2 31.0 Payments. . 23.6 24.3 25.1 26.5 262 26.9 27.8 26. 24.2 245 23.4 27.4 26.7 27.2 26.0 27.7 Net 1.3 3 -1.8 _ j.9 -1.4 _ j 6 -3.2 -3.9 1.4 .1 2.3 -5.9 .3 3.2 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1202 U. S. GOVERNMENT SECURITIES TOTAL DEBT, BY TYPE OF SECURITY [In billions of dollars] Public issues3 Total Total Marketable Nonmarketable End of period gross gross Con- Special debti direct vert- issues 6 debt 2 Total ible Total 5 Sav- Total Bills Certifi- Notes Bonds4 bonds ings cates bonds 1941—Dec 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945 Dec 278.7 278.1 255.7 198.8 17.0 "'38.2' 23.0 120.6 56.9 48.2 20.0 1947—Dec 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29.0 1954—Dec 278.8 278.8 233.2 157.8 19.5 28.5 28.0 81.8 11.8 63.6 57.7 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 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—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—Dec . .. 283.0 282.9 236.0 175.6 29.7 36.4 26.1 83.4 8.3 52.1 51.2 44.8 1959—Dec 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84.8 7.1 48.9 48.2 43.5 I960—Dec 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Aug 294.0 293.7 245.1 191.1 40.9 5.5 65.0 79.7 5.2 48.7 47.6 45.6 Sept .. . 294.0 293.7 245.8 191.9 41.9 5.5 65.2 79.3 5.1 48.8 47.7 45.0 Oct 296.0 295.7 248.8 195.2 42.6 5.5 67.8 79.3 4.7 48.9 47.7 43.9 Nov 297.3 297.0 249.4 195.6 43.4 5.5 71.5 75.2 4.7 49.1 47.8 44.2 Dec 296.5 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 1962—Jan . .. . 296.9 296.5 250.8 197.6 43.9 5.5 71.6 76.6 4.5 48.6 47.5 42.3 Feb 297.4 297.0 250.8 197.6 44.2 12.4 64.4 76.6 4.5 48.7 47.5 42.8 Mar 296.5 296.1 249.7 196.5 43.0 12.4 64.5 76.6 4.4 48.8 47.6 42.8 Apr 297.4 297.0 251.2 198.1 43.4 12.4 64.5 77.8 4.3 48.8 47.6 42.1 May 299.6 299.2 251.2 198.2 43.7 13.5 65.4 75.5 4.3 48.7 47.6 44.3 June . 298.6 298.2 249.5 196.1 42.0 13.5 65.5 75.0 4.3 49.2 47.6 44.9 July 298.3 297.9 250.1 196.9 42.8 13.5 65.5 75.0 4.3 49.0 47.7 43.8 Aug 302.3 301.8 252.5 199.3 43.6 20.4 58.1 77.2 4.2 49.0 47.7 45.4 1 Includes some debt not subject to statutory debt limitation (amounting 5 Includes Series A investment bonds, depositary bonds, armed forces to $374 million on Aug. 31, 1962), and fully guaranteed securities, not leave bonds, adjusted service bonds, certificates of indebtedness—Foreign shown separately. series, and Rural Electrification Administration bonds, and, before 1956, 2 Includes non-interest-bearing debt, not shown separately. tax and savings notes, not shown separately. 3 Includes amounts held by U. S. Govt. agencies and trust funds, which 6 Held only by U. S. Govt. agencies and trust funds. totaled $11,745 million on July 31, 1962. 4 Includes Treasury bonds and minor amounts of Panama Canal and NOTE.—Based on daily statement of U. S. Treasury. postal savings bonds. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES [Par value in billions of dollars] Held by— Held by the public E pe n r d i o o d f T g d r o e o t b s a t s l ag G U t e a r o . n u n v c d s S i t t . e . s B F a . n R ks . Total b m C a e n o r k c m s ia - 2 l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie e r - - s r c O a o t t r i h o p e n o r s - g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a r i t n e o e d i n r g - a n l i O t m n o t v r i h s s e e c s 4 r . funds * bonds securities 1941_Dec 64.3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945_Dec 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947—Dec 257.0 34.4 22.6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 1954—Dec 278.8 49.6 24.9 204.2 69.2 8.8 15.3 19.2 14.4 50.0 13.5 6.3 7.6 1955—Dec 280.8 51.7 24.8 204.3 62.0 8.5 14.6 23.5 15.4 50.2 14.5 7.5 8.1 1956—Dec 276.7 54.0 24.9 197.8 59.5 8.0 13.2 19.1 16.3 50.1 15.4 7.8 8.4 1957—Dec 275.0 55.2 24.2 195.5 59.5 7.6 12.5 18.6 16.6 48.2 15.8 7.6 9.0 1958—Dec 283.0 54.4 26.3 202.3 67.5 7.3 12.7 18.8 16.5 47.7 15.3 7.7 8.9 1959—Dec 290.9 53.7 26.6 210.6 60.3 6.9 12.5 22.6 18.0 45.9 22.3 12.0 10.1 1960—Dec 290.4 55.1 27.4 207.9 62.1 6.3 11.9 19.7 18.2 45.7 20.0 13.0 11.2 1961—July 292.6 55.2 27.4 210.0 65.5 6.3 11.5 19.8 18.7 46.1 18.4 12.7 11.0 Aug 294.0 56.5 27.7 209.8 65.1 6.3 11.5 20.0 18.6 46.2 18.7 12.6 10.6 Sept 294.0 55.9 27.8 210.3 66.6 6.3 11.5 18.6 18.5 46.3 18.8 12.8 10.9 Oct 296.0 55.0 28.3 212.9 67.3 6.2 11.6 19.5 18.4 46.4 18.9 12.9 11.6 Nov 297.3 55.4 29.2 212.7 66.9 6.2 11.5 20.3 18.2 46.5 19.0 13.1 11.0 Dec 296.5 54.5 28.9 213.1 67.2 6.1 11.4 19.4 18.3 46.4 19.2 13.4 11.6 1962—Jan 296.9 53.8 28.5 214.6 67.8 6.2 11.6 20.4 18.6 46.5 19.2 12.9 11.2 Feb 297.4 54.2 28.4 214.8 66.6 6.3 11.5 21.4 18.8 46.6 19.2 13.0 11.5 Mar 296.5 54.5 29.1 213.0 64.0 6.6 11.5 20.2 19.1 46.6 19.4 13.6 12.0 Apr 297.4 53.7 29.2 214.4 65.3 6.3 11.5 20.4 19.2 46.6 19.2 13.3 12.5 May 299.6 55.9 29.6 214.1 65.2 6.3 11.5 20.8 19.3 46.6 18.9 13.5 11.8 June 298.6 56.5 29.7 212.5 65.0 6.3 11.3 19.2 19.4 46.6 19.0 14.1 11.6 July 298.3 55.5 29.8 213.0 64.5 6.3 11.5 19.9 19.4 46.7 19.1 14.2 11.3 1 Includes the Postal Savings System. 4 Includes savings and loan assns., dealers and brokers, nonprofit 2 Includes holdings by banks in territories and insular possessions, institutions, and corporate pension funds. which amourted to about $70 million on Dec. 31, 1961. 3 Includes investments of foreign balances and international accounts NOTE.—Reported data for F. R. Banks and U. S. Govt. agencies and in the United States. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. GOVERNMENT SECURITIES 1203 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY [Par value in millions of dollars] Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 10-20 20 O y v e e a r rs Total Bills Other All holders: 1959—Dec. 31 188.269 78,456 39,643 38,813 61,609 23,625 16,494 8,085 1960—Dec. 31 189,015 73,830 39,446 34,384 72,298 18,684 13,224 10,979 1961—Dec. 31 195,965 84,428 43,444 40,984 66,360 19,782 11,976 13,419 1962—May 31 198,193 89,091 43,747 45,344 57,035 26,177 10,664 15,225 June 30 196,072 86,957 42,036 44,921 58.527 26,049 9,319 15,221 U. S. Govt. agencies and trust funds: 1959—Dec. 31 7,394 1,037 260 777 1,909 1,882 1,917 650 1960—Dec. 31 8,116 1,482 591 891 2,431 1,602 1,461 1,140 1961—Dec. 31 8,484 1,252 583 669 1,860 1,594 1,756 2,022 1962—May 31 9,092 1,808 919 889 1,004 2,284 1,504 2,492 June 30 8,991 1,687 799 1,116 2,266 1.431 2,492 Federal Reserve Banks: 1959—Dec. 31 26,648 18,654 2,626 16,028 6,524 677 765 1960—Dec. 31 27,384 15,223 3,217 12,006 10,711 1,179 243 28 1961—Dec. 31 28,881 17,650 3,349 14,301 8,737 2,227 204 63 1962—May 31 29,622 17,287 3,167 14,120 9,821 2,247 204 63 June 30 29,663 17,197 2.961 14,236 10,033 2,219 151 63 Held by public: 1959—Dec. 31. 154,227 58,765 36,757 22,008 53,176 21,066 13,812 7,407 I960—Dec. 31. 153,515 57,125 35,638 21,487 59,156 15,903 11,520 9,811 1961—Dec. 31. 158,600 65,526 39,512 26,014 55,763 15,961 10,016 11,334 1962—May 31. 159,479 69,996 39,661 30,335 46,210 21,646 8,956 12,670 June 30. 157,418 68,073 38,276 29,797 47,378 21,564 7,737 12.666 Commercial banks: 1959—Dec. 31. 51,841 11,198 5,011 6,187 28,778 9,235 2.173 457 1960—Dec. 31. 54,260 14,697 6,976 7,721 31,596 5,654 1,775 538 1961—Dec. 31. 59,073 21,149 9,962 11,187 30,751 5,043 1,724 407 1962—May 31. 57,209 21,744 7,340 14,404 25,067 8,347 1.578 472 June 30. 57,038 21,511 7,090 14,421 25,817 7,870 1,390 450 Mutual savings banks: 1959—Dec. 31... 6,129 486 191 295 1,401 2,254 1 .427 560 1960—Dec. 31... 5,944 480 144 336 1,544 1,849 897 1,174 1961—Dec. 31... 5,867 686 181 505 1,514 1,708 662 1,298 1962—May 31... 6,029 824 304 520 1,414 1,861 591 1,338 June 30... 5,996 824 307 517 1,455 1,882 505 1,330 Insurance companies: 1959—Dec. 31.. 9,175 1,024 416 608 2,279 2,422 2,396 1,054 1960—Dec. 31... 9,001 940 341 599 2,508 2,076 1,433 2,044 1961—Dec. 31.. 9,020 1,228 442 786 2,222 1,625 1,274 2,671 1962—May 31.. 9,190 1,366 556 810 2,008 1,828 1,177 2,811 June 30.. 9,049 1,195 450 745 2.125 1,814 1.100 2,815 Nonfinancial corporations: ] 1959—Dec. 31 1960—Dec. 31 10,741 8,340 5,599 2,741 2.269 58 39 33 1961—Dec. 31 10,547 8,697 5,466 3,231 1,747 72 22 8 1962—May 31 10,866 9,348 6,217 3,131 1,327 159 23 10 June 30 9,887 8,329 5,213 3,116 1,380 138 23 17 Savings and loan associations: : 1959—Dec. 31 I960—Dec. 31 2,454 322 163 159 858 473 396 406 1961—Dec. 31 2,760 446 155 291 895 617 371 431 1962—May 31 2,858 531 197 334 705 824 315 483 June 30 2,811 477 182 295 705 266 483 State and local governments: 2 1959—Dec. 31 1960—Dec. 31 10,957 3,933 2,643 1,290 1,785 828 1,382 3,029 1961—Dec. 31 10,893 3,974 2,710 1,264 1,320 842 1,250 3,507 1962—May 31 11,918 5,005 3,661 1,344 1,030 968 1,050 3,865 June 30 11,863 4,854 3,527 1,327 1.100 1,066 961 3,883 All others: 1959—Dec. 31. 1960—Dec. 31. 60,158 28,413 19,772 8,641 18,596 4,965 5,598 2,587 1961—Dec. 31. 60,440 29,346 20,596 8,750 17,314 6,054 4,713 3,012 1962—May 31. 61,408 31,179 21,385 9.794 14,658 7,659 4,221 3,692 June 30. 60,11'4 30,883 21,506 9,377 14,795 7,915 3,492 3,689 1 First reported separately in the Feb. 1960 Survey. Monthly figures ketable issues held by groups, the proportion held on latest date and the for Feb.-May 1960 shown in the Sept. 1960 Treasury Bull., pp. 55-56. number of reporting owners surveyed were: (1) about 90 per cent by the 2 First reported separately in the Dec. 1961 Survey. Monthly figures 6,200 commercial banks, 509 mutual savings banks, and 814 insurance for Dec. 1960-Sept. 1961 shown in the Feb. 1962 Treasury Bull., pp. 59-60. cos. combined; (2) about 50 per cent by the 473 nonfinancial corps, and 488 savings and loan assns.; and (3) about 60 per cent by 484 State and NOTE.—Direct public issues only. Based on Treasury Survey of local goyts. Ownership. Holdings of "all others,*' a residual throughout, include holdings of Data complete for U. S. Govt. agencies and trust funds and F. R. Banks, all those not reporting in the Treasury Survey, including investor groups but for other groups are based on Treasury Survey data. Of total mar- not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1204 U. S. GOVERNMENT SECURITIES DEALER TRANSACTIONS [Par value, in millions of dollars] U. S. Government securities By maturity By type of customer Period U.S. Govt. Dealers and brokers agency Total securities Within 1-5 5-10 After Com- All 1 year years years 10 years U.S. mercial other Goyt. Other banks securities 1961—July ,783 ,441 281 49 13 555 33 708 487 69 Aug ,395 ,173 162 41 19 423 32 519 421 56 Sept ,442 ,185 177 47 34 406 25 608 403 99 Oct ,690 ,389 254 27 20 547 38 695 410 61 Nov ,686 ,295 309 41 43 514 33 691 448 90 Dec ,653 ,328 228 45 52 540 29 698 386 69 1962—Jan ,717 ,478 149 64 26 538 25 716 438 Feb ,970 ,520 295 95 60 565 36 832 537 83 Mar 1,675 ,332 217 69 56 569 33 659 414 80 Apr 1,689 ,350 180 114 45 541 42 653 453 90 May 1,694 ,338 218 114 24 564 35 662 433 90 June 1.681 ,357 191 100 33 553 29 652 446 89 July 1,682 ,457 139 63 23 529 34 621 498 82 Week ending— 1962—July 4 2,056 1,726 224 82 24 627 36 754 639 80 11 1,584 1,324 154 80 27 478 30 571 505 107 18 1,839 ,608 149 55 27 589 44 690 517 81 25 1,539 ,397 95 31 15 528 30 556 425 80 Aug. 1 1.652 ,374 143 108 25 482 28 668 474 67 8 1,784 ,508 122 125 29 634 31 634 485 89 15 1,580 ,305 149 95 31 539 22 616 403 69 22 1,593 ,284 180 88 41 545 27 618 404 82 29 1,601 ,303 181 81 35 550 31 540 480 76 NOTE.—The transactions data combine market purchases and sales of ties under repurchase agreements, reverse repurchase (resale), or similar U. S. Govt. securities dealers reporting to the F. R. Bank of N. Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of and exchanges for new U. S. Govt. securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi- DEALER POSITIONS DEALER FINANCING [Par value, in millions of dollars] [In millions of dollars] U. S. Government securities, by maturity Commercial banks U. S. Period Govt. All Corpora- All All Within 1-5 After agency Period sources New Else- tions 1 other maturities 1 year years 5 years securities York where City 1961—July 2,610 2,247 323 40 125 Aug 2,535 2,350 175 10 103 1961—July 2,665 702 470 ,309 184 Sept 2,497 2,339 144 15 107 Aug 2,584 655 434 ,220 275 Oct 3,227 3,044 194 -12 105 Sept 2,416 688 574 982 171 Nov 3,807 3,272 464 71 140 Oct 3,077 926 735 1,029 387 Dec 2,939 2,655 260 23 86 Nov 3,915 1,173 870 ,477 393 Dec 3,088 725 744 ,345 275 1962—Jan 2,778 2,589 184 5 93 Feb 2,265 1,914 297 54 115 1962—Jan 2,740 482 596 ,341 320 Mar 3,056 2,721 228 106 168 Feb 2,296 426 449 ,218 203 Apr 3,771 3,388 252 131 193 Mar 3,025 855 637 ,299 235 May 3,642 2,985 403 255 196 Apr 3,621 976 835 ,354 456 June 3,777 3,398 261 118 293 May 3,738 978 769 ,612 379 July 2,881 2,818 94 -32 232 June 3,900 1,092 720 ,798 290 July 3,053 636 521 ,631 266 Week ending— Week ending— 1962—June 6.. 3,241 2,856 238 148 229 13.. 3,687 3,259 256 172 291 1962—June 6... 3,299 775 601 1,744 179 20.. 4,155 3,763 277 116 298 13... 3,639 931 678 ,824 206 27.. 3,970 3,607 287 76 323 20. .. 4,305 1,411 809 ,779 306 27... 4,203 1,210 782 ,823 389 July if:: 3 3 , , 4 2 8 0 1 3 3 3, , 1 2 1 6 0 6 1 9 7 9 2 - 4 6 5 2 3 5 2 8 8 July 4... 3,862 1,035 655 1,737 434 18.. 3,051 2,999 95 -44 209 11... 3,380 763 648 1,637 332 25. . 2,586 2,580 64 -58 208 18... 3,193 761 588 ,626 218 25... 2,710 407 402 ,697 204 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the 1 All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than note of the opposite table on this page. dealer trading positions. Averages of daily figures based on number of trading days in the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FINANCE; SECURITY ISSUES 1205 U. S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, OUTSTANDING AUGUST 31, 1962 [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 bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. S S e e p p t t . . 1 6 3 , , 1 1 9 9 6 6 2 2 1 1 , , 9 9 0 0 2 1 F F e e b b . . 2 1 1 4 , , 1 1 9 9 6 6 3 3 7 70 0 0 4 O A c u t g . . 1 1 5 , , 1 1 9 9 6 6 4 4 ... -.1 : *4 5,0 4 1 9 9 0 J M un a e r. 1 1 5 5 , , 1 19 9 6 6 6 7 - - 7 7 1 2 . . . . . . 2 21 y / 2 2 1 1 . , 4 3 1 3 5 2 S S e e p p t t . . 2 2 0 1 , , 1 1 9 9 6 6 2 2 1 1 1 , , 9 8 0 0 1 2 A Fe p b r . . 2 1 8 5 , , 1 1 9 9 6 6 3 3 2, 7 0 0 01 0 N Ap o r v . . 15 1 , , 1 1 9 9 6 6 5 4 . . . . . . ..47/8 4,1 4 9 6 5 6 N Se o p v t . . 1 1 5 5 , , 1 1 9 9 6 6 7 7 -72... 3 2 5 1/ / 2 s 3 1 , ,9 6 5 0 2 4 Sept. 27, 1962 1.901 July 15, 1963 2,004 May 15, 1965... ..45/8 2,113 Dec. 15, 1967-72... 21/2 2,825 Oct. 4, 1962 K901 Oct. 1,1965... 315 May 15, 1968 3% 2,460 Oct. 11, 1962 1,902 Certificates Feb. 15, 1966... 3,114 Aug. 15, 1968 3% 1,258 Oct. 15, 1962 2,003 Feb. 15, 1962 3V4 6,862 Apr. 1, 1966.. . / 675 Feb. 15, 1969 4 1,844 O O c c t t . . 2 1 5 8 , , 1 1 9 9 6 6 2 2 1 1. , 8 9 9 0 9 3 M Au a g y . 1 1 5 5 , , 1 1 9 9 6 6 3 3 3 31 V / 4 2 6 6 , , 6 85 8 1 1 O A c u t g . . 1 1 5 , , 1 1 9 9 6 6 6 6 . . . .. ...4 4,4 3 5 5 4 7 O A c u t g . . 15 1 , , 1 1 9 9 6 7 9 1 4 4 2 2 , , 8 5 0 3 6 8 N N o o v v . . 8 1 , , 1 1 9 9 6 6 2 2 1 1 , . 9 9 0 0 1 3 Treasury notes Apr. 1, 1967 n/2 129 N N o o v v . . 1 1 5 5 , , 1 1 9 9 7 7 1 4 3 3 % % 1 1 , . 2 1 0 7 4 1 Nov. 15, 1962 1,901 Oct. 1, 1962 n/2 590 Treasury bonds May 15, 1975-85.. AlA 470 N N o o v v . . 2 2 3 9 , , 1 1 9 9 6 6 2 2 1 1 , , 9 9 0 0 1 2 N N o o v v . . 1 1 5 5 , , 1 1 9 9 6 6 2 2 3 3V V4 4 6 1, , 1 0 4 8 3 2 D D e e c c . . 1 1 5 5 , , 1 1 9 9 6 5 0 9 - - 6 6 5 2 2 . . . . . 2 2 % V4 2 1 , , 2 48 6 5 9 J F u e n b. e 1 1 5 5 , , 1 1 9 9 8 7 0 8 -83... 3 V 4 4 1 1 , , 5 4 9 4 3 6 D D e e c c . . 1 6 3 , , 1 1 9 9 6 6 2 2 7 7 0 0 2 0 F F e e b b . . 1 1 5 5 , , 1 1 9 9 6 6 3 3 2 3 Y * & 4 2 3, . 6 8 4 3 2 9 J A u u n g e . 1 1 5 5 , , 1 1 9 9 6 6 3 2 -67... 2 2 1 1/ / 2 2 4 1 , , 3 46 1 2 7 N M o a v y . 1 1 5 5 , , 1 1 9 9 8 8 5 0 3 3* i/ 4 2 1 1 , , 1 9 3 1 1 5 D D e e c c . . 2 2 0 7 , , 1 1 9 9 6 6 2 2 7 7 0 0 1 0 A M p a r y . 1 1 5 , , 1 1 9 9 6 6 3 3 IV 4 2 1, 5 7 3 43 3 D Fe e b c . . 1 1 5 5 , , 1 19 9 6 6 4 3 -68... 21/ 3 2 2 1 , , 7 81 0 7 0 F A e u b g . . 1 1 5 5 , , 1 1 9 9 9 8 0 7 -92... 3 4V i/ 4 2 4,9 3 1 6 5 5 J J a a n n . . 1 3 0 , , 1 1 9 9 6 6 3 3 7 7 0 0 0 0 O M c a t y . 15 1 , , 1 1 9 9 6 6 3 3 1 3 1 V /2 4 5, 5 0 0 47 6 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 1 1 / / 2 2 2 2 . ^ 6 5 3 1 4 N Fe o b v . . 1 1 5 5 , , 1 1 9 9 9 9 5 8 31/ 3 2 4 2 . , 4 6 6 3 1 2 J J J a a a n n n . . . 2 1 1 4 7 5 , , , 1 1 1 9 9 9 6 6 6 3 3 3 2,0 7 7 0 0 0 1 0 3 N A M p o a r v y . . 1 1 5 5 1 , , , 1 1 1 9 9 9 6 6 6 4 3 4 4 4 n 7 % / / 2 g 4 3, , 4 0 9 5 1 3 1 3 7 M F M e a a b y . r . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 6 6 6 5 6 5 -70.. .2 3 2 y % y 2 8 4 2 3 , , , 6 4 5 8 2 9 2 5 7 Convertible bonds Jan. 31, 1963 700 May 15, 1964 3% 3,893 Aug. 15, 1966 3 1,484 Investment Series B Feb. 7, 1963 700 Aug. 15, 1964 5 2,316 Nov. 15, 1966 33/8 2,438 Apr. 1, 1975-80... 2 34 4,189 1 Tax anticipation series. NOTE.—Direct public issues only. Based on Daily Statement of 2 Partially tax-exempt called for redemption on Dec. 15, 1962. U. S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES [In millions of dollars] All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer ; Total Use of proceeds amount Period deliv- Total g G o a e t b a n i l l o e i n - r- s Reve- PHA 1 lo G U a o . n S v s . t . 2 State S d a i p s a s u t e n t a t c r d h t i i . c . a t l Other 4 ered 5 Total Edu- R br a o i n d a d g d e s s i U tie t s il - 6 Hous- V a a e n i t s d e ' r- O p p o t u h s r e e - s r 1954 6,969 3,380 3,205 374 9 2,047 1.463 3,459 . 6,789 1,432 2,136 1,270 456 162 ,333 1955 5,976 3,770 1,730 474 2 1.408 U097 ,472| 5,911 1,516 1,362 881! 570 169 ,414 1956 5,446 3,577 1,626 199 44 800 983 ,664!. 5,383 1,455 698 1,399 s 258 110 ,464 1957 86,925 4,792 1,967 66 99 1,489 1,272 'I63i 6,568 6,874 2,5241 1,036 1516 113! 333 ,352 1958 7.526 5.447 1,777 187 115 1,993 1,371 4 7,708 7,441 2,617 1,164 251 339 ,657 1959 7,695 4,778 2,409 333 176 1,686 2,120 3,1868291 7,423 7,588 2,314 844 402 355 ,683 1960 7,302 4,677 2,097 403 125 1,110 1,985 4,206 7,112 7,257 2,411 1,007 1,318| 425 201 ,894 1961 8,562 5,721 2,406 315 120 1,928 2,164 4,470 8,298 8,460 2,821 1,167 l,700j 385 478 ,909 1961— Mar.. . 767 612 139 16 252 76 439 711 764 227 52 169 5! 100 213 Apr.... 727 551 119 6 273 97 357 721 723 208 67 66 55 170 156 May... 643 414 217 12 18 209 417 672 641 290 33 161 6 150 June... 1,036 628 394 15 193 264 580 709 1,034 224 257 272 10 271 July... 488 318 103 16 115 111 262 965 485 160 69 93 52 110 Aug.. . 605 423 112 10 134 163 309 517 604 281 55 86 61 121 Sept.. . 742 570 168 4 289 124 328 578 734 282 49 147 4 100 152 Oct.. .. 680 516 150 15 225 76 378 716 678 193 58 125 30 65 208 Nov.. . 793 376 326 12 103 402 288 614 789 150 284 101 80 175 Dec... 675 371 297 6 39 325 3111 877 606 194 112 162 9 128 1962—Jan.'.. 884 500 344 7 218 344 323 690 875 325 252 95 33 169 Feb.... 1,124 747 291 7 191 294 639 791 1,078 352 264 144 87 25 206 Mar.. . 629 392 229 72 193 364 1,314 617 216 137 141 4 118 1 Only bonds sold pursuant to 1949 Housing Act; secured by contract 5 Excludes U. S. Govt. loans. Based on date of delivery to purchaser requiring the Public Housing Administration to make annual contributions (and payment to issuer), which occurs after date of sale. to the local authority. 6 Water, sewer, and other utilities. 2 Beginning with 1957, coverage is considerably broader than earlier. ? Includes urban redevelopment loans. 8 Beginning with 1957 this figure differs from that shown on the follow- 3 Classifications before 1957 as to use of proceeds and type of issuer ing page, which is based on Bond Buyer data. The principal difference are based principally on issues of $500,000 or more; smaller issues not is in the treatment of U. S. Govt. loans. classified. As a result some categories, particularly education, are understated relative to later data. NOTE.—Beginning with 1957, Investment Bankers Assn. data; par 4 Municipalities, counties, townships, school districts, and, before 1957» amounts of long-term issues. Based on date of sale unless otherwise small unclassified issues. indicated. Before 1957, based on Bond Buyer data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1206 SECURITY ISSUES NEW SECURITY ISSUES [In millions of dollars] Proposed use of net proceeds, Gross proceeds, all isues 1 all corporate issues 5 Noncorporate Corporate New capital Re- Period tire- Bonds Stock ment Total G U o . v S t. . 2 G a U c g o y . e S v n 3 . t - . U S l a o t . n c a a S d te l . Other 4 Total Total o P f l f i u e c r b ly e - d p v l P a a t r c e i e - ly d fe P r r r e e - d C m o o m n - Total Total m N on ew ey6 O p p o t u h s r e e - s r s r e i o t c i f u es - 1954 29,765 12,532 458 6,969 289 9,516 1,488 4,003 3 484 816 1,213 9,365 7,490 6,780 709 1,875 1955 26,772 9,628 746 5,977 182 10,240 1,470 4,119 3,301 635 2,185 10,049 i* 871 7 957 864 1,227 1956 22,405 5,517 169 5,446 334 10,939 ,00? 4,225 3,777 636 2,301 10,749 10,384 9 663 721 364 1957 30,571 9,601 572 7 6,958 557 12,884 q,957 6,118 3,839 411 2,516 12,661 12.447 11,784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 q,653 6,332 3,320 571 1,334 11 372 K),823 q 907 915 549 1959 31,074 12,322 707 7,681 616 9,748 7,190 3,557 3,632 531 2,027 9,527 c),392 8,578 814 135 1960 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 c),653 8,758 895 271 1961 35,494 12,253 1,448 8,345 302 13,147 q 4,706 4,720 449 3,273 12,874 11,979 10 879 1,150 895 1961—June.. 3,494 369 278 1,035 33 1,779 1,495 924 572 40 244 1,744 1,318 1,127 191 426 July.. 1,901 342 463 20 1,075 817 424 392 20 239 1,049 ],028 846 182 22 Aug.. 2,064 392 250 603 5 813 637 225 411 45 131 793 762 662 100 31 Sept.. 1,913 338 193 699 5 678 460 123 336 17 201 658 647 612 36 11 Oct... 4,410 2,564 643 48 1,155 845 336 509 12 298 1,129 1,090 952 138 40 Nov.. 2,404 357 225 789 46 987 762 414 348 41 184 961 948 908 40 13 Dec... 2,094 341 654 4 1,094 784 217 567 26 284 1,071 1,000 930 70 71 1962—Jan... 3,506 1,589 246 866 159 647 504 273 232 2 141 632 592 507 85 39 Feb... 2,537 361 156 1,123 13 884 728 497 232 9 146 866 859 792 67 7 Mar.. '1,877 372 '621 38 847 638 386 253 5 204 823 807 709 97 16 Apr... '4,075 1,506 461 877 '14 '1,217 '881 '654 '227 '120 '216 '1,185 ' ,113 '1 033 '80 '72 May.. '2,149 352 897 '99 '801 '667 247 '420 '14 120 '785 '760 r621 '139 25 June.. 2,422 363 760 67 1,232 l,063 488 575 46 124 1,214 ,132 953 180 82 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 Period Retire- Retire- Retire- Retire- Retire- Retire- New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 securities rities rities rities rities rities 1954 2,044 190 831 93 501 270 ?,675 990 651 60 788 273 1955 2,397 533 769 51 544 7,254 174 1,045 77 1,812 56 1956 3,336 243 682 51 694 20 2,474 14 1,384 21 1,815 17 1957 4,104 49 579 29 802 14 ,821 51 1,441 4 1,701 67 1958 3,265 195 867 13 778 38 ,605 138 1,294 118 1,014 47 1959 1,941 70 812 28 942 15 3,189 15 707 * 1,801 6 1960 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961 3,708 306 1,095 46 680 76 ,892 104 1,427 378 2,176 36 1961—June.. 446 128 120 23 115 7 389 13 16 251 231 5 July.. 428 12 98 2 11 * 269 3 16 * 206 4 Aug.. 255 25 83 69 1 215 2 13 127 2 Sept 252 8 76 1 28 111 * 7* 105 1 Oct 271 28 146 1 60 * 306 8 25 281 2 Nov 215 10 61 * 56 362 8C 174 2 Dec 306 18 151 7 32 1 168 40 42 302 6 1962 Jan 205 14 99 23 1 89 24 V 102 Feb 131 2 52 * 45 * 148 4 36:> 122 1 Mar.. 318 2 75 2 74 * 193 1 21 126 10 Apr '384 '67 103 '3 '28 '377 r* '134 '1 May '270 '5 '100 1 '38 '198 16 r6A[ '91 3 June. 342 14 90 4 48 * 410 56 7S) 163 7 1 Gross proceeds are derived by multiplying principal amounts or 6 For plant and equipment and working capital. number of units by offering price. 7 Beginning with 1957 this figure differs from that shown on the previ- 2 Includes guaranteed issues. ous page because this one is based on Bond Buyer data. 3 Issues not guaranteed. 8 All issues other than those for retirement of securities. 4 Foreign governments, International Bank for Reconstruction and Development, and domestic nonprofit organizations. NOTE.—Securities and Exchange Commission estimates of new issues 5 Estimated gross proceeds less cost of flotation. maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BUSINESS FINANCE 1207 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS [In millions of dollars] 1960 1961 1962 Industry 1957 1958 1959 1960 1961 IV I II III IV I II Manufacturing Total (180 corps.): Sales 114,229105,134118,423123,126 122,632 30,526 28,651 31,233 29,541 33,207 '33,291 34,591 Profits before taxes 13,349 10,466 14,090 13,463 13,293 3,083 2,693 3,478 2,961 4,161 '3,908 4,097 Profits after taxes 7,177 5,714 7,440 7,121 7,180 1,703 1,436 1,838 1 618 2,288 r2,033 2 094 Dividends 4,192 4,078 4,342 4,464 4,710 1,201 1,103 1,111 1,117 1,380 ^1,154 1,158 Nondurable goods industries (79 corps.):1 Sales 41,704 41,541 45,442 47,277 49,226 11,971 11,831 12,133 12 205 13,056 r12,793 12,984 Profits before taxes 5,010 4,402 5,648 5,570 5,659 1,302 1,324 1,385 1,406 1,545 '1,461 1,501 Profits after taxes . . 2,944 2,574 3,210 3,210 3,246 764 757 772 796 921 '816 815 Dividends 1,776 1,785 1,912 1,953 2,036 528 486 486 488 577 '512 513 Durable goods industries (101 corps.):2 Sales 72,525 63,593 72,981 75,849 73,406 18 556 16 820 19,100 17 336 20 151r20,499 21 607 Profits before taxes 8,339 6,065 8,442 7,893 7,634 1,781 1,368 2,094 1,555 2,616 r2,447 2,596 Profits after taxes . . ... 4,233 3,140 4,231 3,911 3,935 910 679 1,066 822 1,367 '1,217 1,278 Dividends 2,416 2,294 2,430 2,510 2,674 673 618 625 629 803 642 644 Selected industries: Foods and kindred products (25 corps.): Sales.. 9,987 10,707 11,303 11,901 12,578 3,090 3,021 3,154 3,233 3,169 '3,231 3,267 Profits before taxes 1,024 1,152 1 274 1,328 1 424 334 319 360 379 365 r336 355 Profits after taxes 497 555 604 631 672 162 150 170 179 174 160 167 Dividends » ... 289 312 344 367 392 95 95 96 99 101 103 103 Chemicals and allied products (21 corps.): Sales 10,669 10,390 11,979 12,411 12,788 2,981 2,979 3,250 3,210 3,348 3.372 3,567 Profits before taxes 1,823 1,538 2 187 2,010 2 015 423 438 514 499 564 r545 586 Profits after taxes 948 829 1,131 1,061 1,063 238 229 267 260 306 '279 297 Dividends 737 717 799 795 843 230 193 189 191 270 '198 196 Petroleum refining (16 corps.): Sales 13,463 12,838 13,372 13,815 14,409 3,694 3,488 3,398 3,424 4,100 '3,771 3,612 Profits before taxes 1,325 919 1,187 1,267 1,255 325 354 270 292 339 '343 300 1,075 791 969 1,026 1 011 248 272 214 243 283 '262 227 Dividends .... . 512 516 518 521 528 133 129 134 131 133 '139 142 Primary metals and products (35 corps.): Sales 22,468 19,226 21,035 20,898 20,155 4,500 4,396 5,189 5,235 5,335 5,733 5,527 Profits before taxes ... 2,977 2,182 2,331 2,215 2,020 343 309 560 550 602 '620 505 Profits after taxes 1,540 1,154 1,222 1,170 1 090 182 166 295 299 329 320 267 Dividends 873 802 831 840 844 219 207 208 208 221 209 210 Machinery (25 corps.): Sales 15,115 14,685 17,095 16,826 17 531 4,297 4,137 4,367 4,295 4,732 '4,537 4,916 Profits before taxes . • 1,457 1,463 1,890 1,499 1,675 323 362 398 384 530 '454 490 Profits after taxes 729 734 934 763 837 167 178 202 191 267 225 239 416 422 448 482 497 123 121 125 124 128 129 130 Automobiles and equipment (14 corps.): Sales 23,453 18,469 22,731 25,738 22,781 6,521 5,293 6,309 4,604 6,577 6,904 7,512 2,701 1,332 2,985 3,185 2,788 832 478 840 319 1,151 1,096 1,254 Profits after taxes 1,354 706 1,479 1,527 1,408 400 223 417 173 596 531 595 Dividends 805 758 807 833 967 228 205 207 207 348 215 216 Public Utility Railroad: Operating revenue 10,491 9,565 9,825 9,514 9,189 2,303 2,129 r2,289 2,355 2,414 2,296 2,408 Profits before taxes 1,058 843 845 648 625 168 27 137 184 278 133 Profits after taxes 737 602 578 445 382 142 -12 74 122 200 66 Dividends 438 419 406 385 356 125 86 91 67 112 84 Electric power: Operating revenue 9,670 10,195 11,129 11,906 12,594 3,015 3,314 3,007 3,050 3,223 '3,399 3,210 Profits before taxes 2,579 2,704 2 983 3,163 r3 331 761 918 767 802 844 1,051 835 Profits after taxes . 1,413 1,519 1,655 1,793 1,894 452 523 447 447 All 585 472 Dividends 1,069 1,134 1,219 1,307 1,375 337 343 344 335 353 366 371 Telephone: Operating revenue 6,467 6,939 7,572 8,111 8,615 2,077 2,090 2,139 2,156 2,230 2,245 2,296 Profits before taxes 1,562 1,860 2,153 2,326 2,478 594 587 614 620 657 648 678 Profits after taxes . 788 921 1,073 1,155 1,233 294 290 307 310 326 320 335 613 674 743 806 867 207 210 214 218 225 231 232 1 Includes 17 cos. in groups not shown separately. Telephone. Data obtained from Federal Communications Commis- 2 Includes 27 cos. in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long NOTE.—Manufacturing corps. Data are obtained primarily from Lines and General departments of American Telephone and Telegraph published co. reports. Co.) and for 2 affiliated telephone cos. Dividends are for the 20 operat- Railroads. Interstate Commerce Commission data for Class I line- ing subsidiaries and the 2 affiliates. haul railroads. All series. Profits before taxes are income after all charges and before Electric power. Federal Power Commission data for Class A and B Federal income taxes and dividends. For description of series see electric utilities, except that quarterly figures on operating revenue and June 1949 BULL., pp. 662-66 (manufacturing); Mar. 1942 BULL., pp. profits before taxes are partly estimated by the Federal Reserve to include 215-17 (public utilities); and Sept. 1944 BULL., p. 908 (electric power). affiliated nonelectric operations. Back data available from Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1208 BUSINESS FINANCE CORPORATE PROFITS, TAXES, AND DIVIDENDS NET CHANGE IN OUTSTANDING CORPORATE SECURITIES [In billions of dollars] [In millions of dollars] Profits In- Profits Cash Undis- All types Bonds and notes Stocks Period before come after divi- tributed taxes taxes taxes dends profits Period New Retire- Net New Retire- Net New Retire- Net issues ments change issues ments change issues ments change 1955 44.9 21.8 23.0 11.2 11.8 1956 44.7 21.2 23.5 12.1 11.3 1957 43.2 20.9 22.3 12.6 9.7 1954 11,694 5,629 6,065 7,832 4,033 3,799 3,862 1,596 2,265 1958 37.4 18.6 18.8 12.4 6.4 1955 12,474 5,599 6,875 7,571 3,383 4,188 4,903 2,216 2,687 1959 47.7 23.2 24.5 13.7 10.8 1956 13,201 5,038 8,162 7,934 3,203 4,731 5,267 1,836 3,432 I960 45.4 22.4 23.0 14.4 8.6 1957. . . . 14,350 3,609 10,741 9,638 2,584 7,053 4,712 1,024 3,688 1961 45.6 22.3 23.3 15.0 8.3 1958 14,761 5,296 9,465 9,673 3,817 5,856 5,088 1,479 3,609 1959 12,855 4,858 7,998 7,125 3,049 4,076 5,730 1,809 3,922 1960—1 46.9 22.8 24.1 13.1 11.0 I960 12,958 4,760 8,198 8,044 3,010 5,034 4,914 1,751 3,164 II 51.9 25.2 26.6 13.4 13.3 1961 16,745 6,967 9,778 9,205 4,090 5,114 7,540 2,876 4,664 Ill 46.5 22.6 23.9 14.1 9.8 IV 45.3 22.0 23.3 14.2 9.0 1961—1 3.247 1,417 1,830 1,488 770 718 1,759 647 1,112 II . 5,566 1,808 3,758 3,273 1,255 2,018 2,293 553 1,740 1961—1 39.8 19.4 20.3 14.7 5.6 Ill . . 3,594 1,750 1,844 2,011 1,213 798 1,582 537 1,046 II 44.8 21.9 22.9 14.8 8.1 IV 4,338 1,991 2,347 2,432 852 1,581 1,908 1,140 766 Ill 46.3 22.6 23.7 14.9 8.7 IV 51.4 25.1 26.3 15.5 10.8 1962—1 3,226 1,406 1,820 1,668 730 938 1,558 676 882 1962—1 50.1 24.4 25.6 15.8 9.8 NOTE.—Securities and Exchange Commission estimates reflect cash transactions only. Unlike data shown on p. 1206 new issues exclude foreign and include offerings of open-end NOTE.—Dept. of Commerce estimates. Quarterly data investment cos., sales of securities held by affiliated cos., special offerings to employees, are at seasonally adjusted annual rates. and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements include similar issues, and also securities retired with internal funds or with proceeds of issues for that purpose shown on p. \ 206. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS [In billions of dollars] Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . - I t n o v ri e e n s - Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.! Govt. i 1954 94.9 194.6 33.4 19.2 2.4 71.2 65.3 3.1 99.7 2.4 59.3 15.5 22.5 1955 103.0 224.0 34.6 23.5 2.3 86.6 72.8 4.2 121.0 2.3 73.8 19.3 25.7 1956 107.4 237.9 34.8 19.1 2.6 95.1 80.4 5.9 130.5 2.4 81.5 17.6 29.0 1957 111.6 244.7 34.9 18.6 2.8 99.4 82.2 6.7 133.1 2 * 84.3 15.4 31.1 1958 118.7 255.3 37.4 18.8 2.8 106.9 81.9 7.5 136.6 1.7 88.7 12 9 33.3 1959 124.2 277.3 36.3 22.8 2.9 117.7 88.4 9.1 153.1 1.7 99.3 15.0 37.0 I960 129.0 286.0 36.1 19.9 3.1 125.1 91.6 10.2 157.0 L.8 103.1 13.5 38.6 1961—II . 134.7 290.2 35.2 19.7 3.1 127.9 92.6 11.7 155.5 L.7 102.8 11.4 39.5 Ill 136.0 294.9 36.0 18.6 3.2 131.5 93.5 12.1 159.0 1.8 104.5 12.4 40.3 IV 137.4 303.0 39.0 19.4 3.4 134.5 95.2 11.5 165.6 s 109.5 14.1 40.3 1962—1 139.0 305.7 35.6 20.2 3.4 136.0 97.7 12.7 166.7 1.8 109.5 13.6 41.8 II 141.1 310.5 36.1 19.3 3.3 140.0 98.7 13.1 169.4 1.8 111.6 13.6 42.4 1 Receivables from, and payables to, the U. S. Govt. exclude NOTE.—Securities and Exchange Commission estimates; excludes amounts offset against each other on corps.1 books. banks, savings and loan associations, and insurance co>. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT [In billions of dollars] Transportation Year Total M fa i c a n t n g u u r- - Min- 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 io m n n i - - s Other i Quarter Total m M a in n i f n g d g - . | ! p T o t r i a r o t n n a s - - P u u t t i b i e l l s i i - c ot A he ll r2 a T ( r n S a o n t . t u A e a ) a l . l 1954.. 26.8 11.0 1.0 .9 1.5 4.2 1.7 6.5 1961—1... 7.6 3.2 1.1 2.7 33.9 1955.. 28.7 11.4 .0 .9 1.6 4.3 2.0 7.5 II... 8.6 3.7 .4 2.9 33.5 1956.. 35.1 15.0 .2 1.2 1.7 4.9 2.7 8.4 III.. 8.7 3.6 .5 2.9 34.7 1957.. 37.0 16.0 .2 1.4 1.8 6.2 3.0 7.4 IV.. 9.5 4.1 .5 3.2 35.4 1958.. 30.5 11.4 .9 .8 1.5 6.1 2.6 7.2 1959. . 32.5 12.1 .0 .9 2.0 5.7 2.7 8.2 1962—1. . . 8.0 3.4 .1 2.9 35.7 I960.. 35.7 14.5 .0 1.0 1.9 5.7 3.1 8.4 II'.. 9.5 4.0 .4 3.3 37.0 1961. . 34.4 13.7 1.0 .7 1.9 5.5 3.2 8.5 IIIs r 9.5 3.9 .5 3.4 37.8 19623'- 37.2 14.6 l.l .8 2.1 5.4 3.7 9.5 IV3. 10.2 4.4 .5 3.5 38.0 1 Includes trade, service, finance, and construction. NOTE.—Dept. of Commerce and Securities and Exchange Commission 2 Includes communications and other. estimates for corp. and noncorp. business, excluding agriculture. 3 Anticipated by business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REAL ESTATE CREDIT 1209 MORTGAGE DEBT OUTSTANDING [In billions of dollars] All properties Nonfarm Farm ho O ld th er e s r 2 1- to 4-family houses com M m u er lt c i i f a a l m p i r l o y p e an rt d ies 3 End of period All Finan- All All Finanhold- cial hold- hold- cial Other ers tu i t n i s o t n i- s1 a U c g i . e e n S s - . v o I i a t d n h n u d e d a i r - l s s ers Total tu F i t n i i n s o t a n i n - s . * O ho e th r l s d e - r Total tu F i t n i i n o s a t n i n - s . 1 O ho e th r l s d e - r ers tu i t n i s o t n i- s 1 holders 4 1941 37.6 20.7 4.7 12.2 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 2.4 12.1 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.8 1.3 3.4 1955 129.9 99.3 5.2 25.4 120.9 88.2 73.8 14.4 32.6 21.8 10.8 9.1 3.6 5.4 1956 144.5 111.2 6.0 27.3 134.6 99.0 83.4 15.6 35.6 23.9 11.7 9.9 3.9 6.0 1957 156.6 119.7 7.5 29.4 146.1 107.6 89.9 17.7 38.5 25.8 12.7 10.5 4.0 6.5 1958 171.9 131.5 7.8 32.7 160.7 117.7 98.5 19.2 43.0 28.8 14.2 11.3 4.2 7.1 1959 190.9 145.5 10.0 35.4 178.7 130.9 109.2 21.6 47.9 31.9 16.0 12.2 4.5 7.7 1960 207.1 157.6 11.2 38.3 194.0 141.3 117.9 23.4 52.7 35.0 17.7 13.1 4.7 8.4 1961" 225.3 172.6 11.8 40.9 211.1 153.4 129.1 24.3 57.7 38.5 19.2 14.2 5.0 I960—I 194.7 148.0 10.2 36.3 182.1 133.1 110.9 22.2 49.0 32.6 16.4 12.5 4.5 8.0 II 198.9 151.3 10.6 37.0 186.1 135.9 113.3 22.5 50.2 33.4 16.9 12.8 4.6 8.2 Ill 203.2 154.6 11.0 37.7 190.3 138.8 115.8 23.1 51.5 34.2 17.3 13.0 4.6 8.3 IV 207.1 157.6 11.2 38.3 194.0 141.3 117.9 23.4 52.7 35.0 17.7 13.1 4.7 8.4 1961—\P .. . .. 210 3 160.2 11.3 38.8 197.0 143.3 119.8 23.5 53.7 35.7 18.0 13.3 4.7 8.6 215.0 164.3 11.2 39.5 201.3 146.5 123.0 23.5 54.8 36.5 18.3 13.7 4.8 8.9 Ill39 219.9 168.4 11.4 40.1 205.9 149.9 126.1 23.8 56.0 37.3 18.7 14.0 4.9 9.1 IV ^ 225.3 172.6 11.8 40.9 211.1 153.4 129.1 24.3 57.7 38.5 19.2 14.2 5.0 9.2 1962—1' 229.8 176.0 12.1 41.6 215.3 156.0 131.3 24.7 59.3 39.6 19.7 14.5 5.1 9.4 1 Commercial banks (including nondeposit trust cos. but not trust 4 Derived figures; includes debt held by Federal land banks and Farmers depts.), mutual savings banks, life insurance cos., and savings and loan Home Administration. assns. NOTE.—Based on data from Federal Deposit Insurance Corp., Federal 2 U. S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin- Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculistration, and Federal land banks, and in earlier years RFC, HOLC, ture and Commerce, Federal National Mortgage Assn., Federal Housing and FFMC. Other U S. agencies (amounts small or current separate Administration, Public Housing Administration, Veterans Administradata not readily available) included with individuals and others. tion, and Comptroller of the Currency. 3 Derived figures; includes small amounts of farm loans held by savings Figures for first three quarters of each year are F. R. estimates. and loan assns. MORTGAGE LOANS HELD BY BANKS [In millions of dollars] Com mereal bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Other Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - O f n a o t r h n m e - r 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 1955 21,004 15,888 4,560 3,711 7,617 3,819 1.297 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 1,336 19,746 17,703 4,409 7,139 6,155 1,984 59 1957 23,337 17,147 4,823 3,589 8,735 4,823 367 21,169 19,010 4,669 7,790 6,551 2,102 57 1958 25,523 18,591 5,476 3,335 9,780 5,461 471 23,263 20,935 5,501 8,360 7,073 2,275 53 1959 28,145 20,320 6,122 3,161 11,037 6,237 ,588 24,992 22,486 6,276 8,589 7,622 2,451 55 I960 28,806 20,362 5,851 2,859 11,652 6,796 648 26,935 24.306 7,074 8,986 8,246 2,575 54 1961 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,028 2,753 51 I960—I 28,228 20.292 6,053 3,124 11,115 6,345 1,591 25,404 22,871 6,415 8,729 7,727 2,479 54 II 28 463 20,334 5 978 3,032 11,324 6,484 1,646 25,849 23,293 6,571 8,879 7,843 2,503 53 III 3 28 693 20,399 5,906 2,919 11,574 6,651 643 26,430 23,835 6,832 8,941 8,062 2,542 53 IV 28,806 20,362 5,851 2,859 11,652 6,796 648 26,935 24,306 7,074 8,986 8,246 2,575 54 1961 I 28,864 20,281 5,793 2,776 11,712 6,906 677 27,447 24,800 7,353 9,111 8,336 2,597 50 II 29,383 20,595 5,820 2,726 12,049 7,072 1,716 28,015 25,318 7,634 9,192 8,492 2,645 51 Ill 29 920 20,953 5 905 2,676 12,372 7,227 1,740 28,589 25,892 7,811 9,231 8,850 2,646 51 IV 30,442 21,225 5,975 2,627 12,623 7,470 747 29,145 26,341 8,045 9,267 9,028 2,753 51 1962 I 30,844 21,211 6,003 2,547 12,661 7,817 1,816 29,781 26,909 8,340 9,384 9,185 2,822 51 1 Includes loans held by nondeposit trust cos. but not bank trust depts. series for all commercial and mutual savings banks in the United States 2 Data for 1941 and 1945, except for totals, are special F. R. estimates. and possessions; first and third quarters, estimates based on FDIC data 3 Reflects a $40 million reclassification of loans from commercial for insured banks beginning in 1962. For earlier years the basis for and industrial to real estate by 1 bank. first and third quarter estimates included F. R. commercial bank call NOTE.—Second and fourth quarters, Federal Deposit Insurance Corp. data and data from National Assn. of Mutual Savings Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1210 REAL ESTATE CREDIT MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES [In millions of dollars] Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total FHA- g V u A ar - - Other i Farm1 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 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 5,230 4,823 653 831 3,339 407 35,236 32,652 6,751 7,721 18,180 2,584 1958 5,277 4,839 1,301 195 3,343 438 37,062 34,395 7,443 7,433 19,519 2,667 1959 5,970 5,472 1,549 201 3,722 498 39,197 36,353 8,273 7,086 20,994 2,844 I960 6,086 5,622 1,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961 r6,785 r6,233 rl,388 r220 r4,625 '552 44,203 41,033 9,665 6,553 24,815 3,170 1961 July 465 433 94 16 323 32 43,052 39,959 9,452 6,698 23,809 3,093 557 517 116 18 383 40 43,216 40,105 9,501 6,660 23,944 3,111 Sept 511 472 106 15 351 39 43,381 40.252 9,541 6,624 24,087 3,129 Oct 580 541 112 24 405 39 43,580 40,435 9,574 6,592 24,269 3,145 Nov 590 543 110 26 407 47 43,815 40,656 9,620 6,566 24,470 3,159 Dec 878 826 134 44 648 52 44,241 41,070 9,664 6,552 24,854 3,171 1962 Jan 560 495 122 34 339 65 44,378 41,209 9,726 6,532 24,951 3,169 Feb 457 400 98 27 275 57 44,494 41,304 9,766 6,507 25,031 3,190 Mar. 521 452 104 33 315 69 44,637 41,425 9,797 6,498 25,130 3,212 Apr 481 425 86 28 311 56 44,751 41,516 9,821 6,478 25,217 3,235 May 591 535 99 39 397 56 44,946 41,683 9,853 6,461 25,369 3,263 June 576 532 103 33 396 44 45,142 41,856 9,884 6 444 25 528 3 286 July 625 580 129 36 415 45 45,340 42,030 9,970 6,431 25.629 3,310 i Certain mortgage loans secured by land on which oil drilling or monthly figures may not add to annual totals and for loans outstanding, extracting operations in process were classified with farm through June the end-of-Dec. figures may differ from end-of-year figures, because 1959 and with "other" nonfarm thereafter. These loans totaled $38 monthly figures represent book value of ledger assets whereas year-end million on July 31, 1959. figures represent annual statement asset values, and because data for NOTE.—Institute of Life Insurance data. For loans acquired, the year-end adjustments are more complete. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS NONFARM MORTGAGE RECORDINGS OF $20,000 OR LESS [In millions of dollars) [In millions of dollars] Loans made Loans outstanding (end of period) Total By type of lender (N.S.A.) Period Total i s N c t t o i r 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 r A e - d - a g n V u t A a e r e - - d ti C v o e o n n n a - - l 2 Period S.A.2 N.S.A. i a n l S s o g a s a s n v n & s - . p I c a n a o n s n m u c ie e - r s - b C m c a o i n e a m r k l - - s M b i s a u n a n t g v u k s - a s l 1941 1,379 437 581 4,578 1941. 4,732 1,490 404 1,165 218 1945 ?.9n 181 1,358 5,376 1945. 5,650 2,017 250 1,097 217 1955 11,255 3,984 5,155 31,408 1,404 5,883 24,121 1955. 28,484 10,452 1,932 5,617 1,858 1956 1(),325 3,699 4,620 35,729 1,486 6,643 27,600 1956. 27,088 9,532 1,799 5,458 1,824 1957 1(),160 3,484 4,591 40,007 1,643 7,011 31,353 1957. 24,244 9,217 1,472 4,264 1,429 1958 L2,182 4,050 5,172 45,627 2,206 7,077 36,344 1958. 27,388 10,516 1,460 5,204 1,640 1959 15,151 5,201 6,613 53,141 2,995 7,186 42,960 1959. 32,235 13,094 1,523 5,832 1,780 1960 h• ,304 4,678 6,132 60,070 3,524 7,222 49,324 1960. 29,341 12,158 1,318 4,520 1,557 1961 r7,364 5,081 7,207 68,833 4,167 7,152 57,514 1961. 31,157 13,662 1,160 4,997 1,741 1961 1961 July 1,482 422 659 64,795 3,890 7,195 53,710 June 2,581 2,856 ,292 104 460 153 Aug 1,763 498 785 65,705 3,955 7,169 54,581 July 2,652 2,653 ,166 95 425 168 Sept 1,594 436 695 66,507 4,014 7,159 55,334 Aug 2,652 3,004 ,346 111 C4B3 179- Oct 1,629 464 696 67,317 4,061 7,152 56,104 Sept 2,723 2,777 ,248 101 441 174 Nov 1,529 436 645 68,069 4,125 7,176 56,768 Oct 2,775 2,961 ,304 109 468 174 Dec 1,500 417 598 68,833 4,167 7,152 57,514 Nov 2,779 2,754 ,209 97 440 173 Dec 2,763 2,579 ,132 96 399 156 1962 1962 Jan ,323 353 550 69,368 4,204 7,161 58,003 Feb 1,303 362 509 69,968 4,241 7,160 58,567 Jan.., 2,696 2,459 ,041 400 138 Mar 1,611 464 633 70,769 4,276 7,170 59,323 Feb.. 2,682 2,238 971 79 374 114 Apr 1,661 512 635 71,616 4,312 7,122 60,182 Mar.. 2,670 2,627 ,172 90 442 120 May .857 584 739 72,587 4,332 7,132 61,123 Apr.. 2,745 2,704 ,210 89 482 131 June 1,936 572 823 73,631 4,355 7,119 62,157 May. 2,836 2,983 ,350 100 534 154 JulyP 1,830 518 797 74,551 4,380 7,101 63,070 June. 3,075 ,391 107 542 177 1 Includes loans for repair, additions and alterations, refinancing, etc. 1 Includes amounts for other lenders, not shown separately. not shown separately. 2 Three-month moving average, seasonally adjusted by Federal Re- 2 Beginning with 1958 includes shares pledged against mortgage loans. serve. NOTE.—Federal Home Loan Bank Board data. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REAL ESTATE CREDIT 1211 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON [In millions of dollars] NONFARM 1- TO 4-FAMELY PROPERTIES [In billions of dollars] FHA-insured VA-guaranteed Governmentunderwritten Period Mortgages Prop- Mortgages End of Total C ve o n n - - Proj- erty period FHA- VA- tional Total New Ex- ects i im- Total 3 New Ex- Total in- guarhomes h is o t m in e g s m p e r n ov t e s - 2 homes h is o t m in e g s sured anteed 1945 665 257 217 20 171 192 1945 18.6 4.3 4.1 .2 14.3 1955 88.2 38 9 14.3 24.6 49.3 1955 3,807 1,269 1,816 76 646 7,156 4,582 2,564 1956 99.0 43.9 15.5 28.4 55.1 1 1 9 9 5 5 6 7 3 3, , 7 4 1 6 5 1 1, 8 1 8 3 0 3 1 1 , , 5 3 0 7 5 1 5 1 9 3 5 0 6 86 9 9 2 5 3, , 7 8 6 6 1 8 2 3 , , 8 9 9 1 0 0 1,9 8 4 6 8 3 1 1 9 9 5 5 8 7 1 1 1 0 7 7 . . 7 6 4570. 12 1 19 6 . . 7 5 3 3 0 0 . . 7 4 6 6 0 7 . . 4 6 1958 6,349 1,666 2,885 929 868 1,865 1,311 549 1959 c130.9 53.8 23.8 30.0 77.0 1959 7,694 2,563 3,507 628 997 2,787 2,051 730 I960 141.3 56 4 26.7 29.7 84.8 1 1 9 9 6 6 1 0 6 6, , 5 2 4 9 6 3 2 1 , , 1 7 9 8 7 3 2 2 , , 4 9 0 8 3 2 9 71 2 1 6 9 85 8 5 2 1 1 , , 9 8 8 2 5 9 1 1 , , 5 1 5 7 4 0 4 6 2 5 8 6 1961P 153.4 59.1 29.5 29.6 94.3 1960 I 133.1 54.5 24.6 29.9 78.6 1961— A Ju u ly g 5 64 4 7 3 1 1 3 6 4 4 2 29 5 9 2 9 8 6 0 7 8 6 8 1 1 4 8 4 2 1 9 1 0 3 6 5 8 4 I I I l l . 1 1 3 38 5 . 8 95 55 5 . 7 0 2 26 5 . 0 2 2 2 9 9 . . 8 7 8 83 0 . . 2 9 Sept 569 147 276 73 74 168 98 70 IV 141.3 56.4 26.7 29.7 84.8 Oct 599 148 285 83 83 201 114 86 D N e o c v 6 55 2 3 2 1 15 7 3 4 2 3 7 1 3 0 6 6 5 2 7 6 3 5 2 1 0 9 6 7 1 1 1 1 8 2 8 8 7 4 1961 I I I P P 1 14 4 6 3. 3 5 5 5 7 7 . 1 8 2 2 7 8 . 4 0 2 2 9 9 . . 7 8 8 88 6 . . 7 2 149.9 58.7 28.8 29.9 91.2 1962—Jan 617 179 301 74 63 227 127 99 153.4 59.1 29.5 29.6 94.3 Feb 474 150 248 26 50 175 95 80 A M p a r r 5 5 1 4 5 1 1 1 5 3 7 2 2 26 4 1 0 7 8 0 8 5 5 6 3 2 1 0 8 5 2 1 9 1 9 5 8 9 3 0 1962 IP 156.0 59.9 30.3 29.6 96.1 May 560 140 263 87 70 184 96 88 June 643 137 267 143 96 207 108 99 NOTE.—For total debt outstanding, figures are July 678 144 289 164 81 219 109 110 FHLBB and F.R. estimates. For conventional, figures are derived. 2 3 1 N I M n o c o l t n u o t d h r e d l s y i n a f a i r s g i m u ly r a e l s s l e a d c m u o r o e n u d o n t b t r y o e f f m l e a c o l t t r e tg m ra a o t g i r o e t n s g . a a g n e d a r m ep e a n i d r m lo e a n n ts s , i n n o cl t u s d h e o d w i n n s a e n p n a u ra a t l e l t y o ; t a o l n s. ly such B A o d B a m a rd s in e , d is F t e r o d a n t e i r o a n d l . a H ta o u f s r i o n m g A F d e m de i r n a i l s tr H at o io m n e , a L nd oa V n et B er a a n n k s loans in amounts of more than $1,000 need be secured. NOTE.—Federal Housing Administration and Veterans Administration data. FHAinsured 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. FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY FEDERAL HOME LOAN BANKS [In millions of dollars] [In millions of dollars] Mortgage holdings tr M an o s r a t c g t a i g o e ns Com- Adv ( a e n n c d e s o f o p u e ts ri t o an d d ) ing (during mit- Ad- Repay- Members' End of period) ments vances ments deposits period Total FH in A - - g V u A ar - - d u i n s- - Total S te h r o m rt i - L te o rm ng 2 sured anteed Pur- Sales bursed chases 1945 278 213 195 176 19 46 1955. 2,615 901 1,714 411 6? 76 1955 1,251 702 1,417 991 426 698 1956. 3,047 978 2,069 609 360 1956 745 934 1,228 798 430 683 1957. 3,974 1,237 2,737 1,096 3 764 1957 1,116 1,079 1,265 731 534 653 1958. 3,901 1,483 2,418 623 48? 1,541 1958 1,364 1,331 1,298 613 819 1959. 5,531 2,546 2,985 1,907 5 568 1959 2,067 1,231 2,134 1,192 942 589 1960. 6,159 3,356 2,803 1,248 357 576 I960 1,943 2,097 1,981 1,089 892 938 1961. 6,093 3,490 2,603 815 541 631 1961 2,882 2,200 2,662 1,447 1,216 1,180 1961—Julv 5,765 3,204 2,561 35 6 579 1961 Aug 245 115 2,001 1,147 854 1,019 5,804 3,245 2,559 71 3 593 Sept 244 120 2,124 1,233 892 1,022 Sept 5,841 3,281 2,561 76 10 626 Oct 257 179 2,202 1,239 963 1,008 Oct 5,916 3,345 2,571 108 2 653 Nov... . 263 178 2,287 1,269 1,018 1,029 Nov 6,004 3,417 2,587 121 656 Dec 510 135 2,662 1,447 1,216 1,180 Dec 6,093 3,490 2,603 127 ? 631 1962—Jan 265 608 2,320 1,293 1,027 995 1962—Tan 6,186 3,566 2,620 124 1 637 Feb 145 236 2,228 1,228 1,000 1,007 Feb 6,248 3,618 2,630 102 7 605 Mar...... 204 281 2,151 1,170 981 1,109 Mar 6,231 3,653 2,578 97 80 613 382 209 2,323 1,244 1,079 1,096 Apr 6,151 3,616 2,535 60 106 562 May!.'.'.'.'! 295 189 2,429 1,319 1,110 1,107 May 6,120 3,627 2,493 82 76 527 June 503 165 2,767 1,569 1,198 1,192 June 6,035 3,571 2,464 52 101 504 July 480 387 2,860 1,708 1,151 976 July 5,989 3,557 2,432 34 47 485 Au£.. . 312 225 2,948 1,787 .161 954 NOTE.—Federal National Mortgage Association data excluding con- 1 Secured or unsecured loans maturing in 1 year or less. ventional mortgage loans acquired by FNMA from the RFC Mortgage 2 Secured loans, amortized quarterly, having maturities of more than Company, the Defense Homes Corporation, and the Public Housing 1 year but not more than 10 years. Administration. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1212 CONSUMER CREDIT TOTAL CREDIT [In millions of dollars] Instalment Nonmstalment End of period Total Total m A pa o u p b t e i o l r - e co g O p n o a s t p o u h d e m e r s r er e a r n R l n d o i e a z p m n a a s t o i i r o i 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 1955 38,807 28,883 13,437 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1956 42,262 31,648 14,348 8,606 1,905 6,789 10,614 3,253 4.995 2,366 1957 44,848 33,745 15,218 8,844 2,101 7,582 11,103 3,364 5; 146 2,593 1958 44,984 33,497 14,007 9,028 2,346 8,116 11,487 3,627 5,060 2,800 1959 51,331 39,034 16,209 10,630 2,809 9,386 12,297 4,129 5,104 3,064 1960 55,757 42,588 17,444 11,525 3,139 10,480 13,169 4,507 5,329 3,333 1961 57,139 43,163 16,960 11,771 3,177 11,255 13,976 4,955 5,438 3,583 1961—July. 54,505 41,909 17,063 10,934 3,133 10,779 12,596 4,708 4,397 3,491 Aug. 54,739 42,090 17,061 10,966 3,165 10.898 12,649 4,769 4,409 3,471 Sept. 54,757 42,039 16,902 11,006 3,180 10,951 12,718 4,832 4,423 3,463 Oct., 54,902 42,181 16,913 11,085 3,183 11,000 12,721 4,778 4.517 3,426 Nov. 55,451 42,419 16,960 11,215 3,192 11,052 13,032 4,880 4,684 3,468 Dec. 57,139 43,163 16,960 11,771 3,177 11,255 13,976 4,955 5,438 3,583 1962—Jan.. 56,278 42,846 16,878 11,605 3,131 11,232 13,432 4,906 4,892 3,634 Feb. 55,592 42,632 16,900 11,380 3,099 11,253 12,960 4,931 4.294 3,735 Mar. 55,680 42,704 17,039 11,256 3,084 11,325 12,976 5,056 4,191 3,729 Apr. 56,650 43,285 17,343 11,333 3,094 11,515 13,365 5,111 4,451 3,803 May 57,593 43,893 17,683 11,423 3,131 11,656 13,700 5,238 4,683 3,779 June 58,277 44,559 18,033 11,555 3,156 11,815 13,718 5,227 4,739 3,752 July. 58,521 44,967 18,291 11,570 3,182 11,924 13,554 5,203 4,607 3,744 1 Holdings of financial institutions; holdings of retail outlets are in- mortgage loans. The estimates include data for Alaska beginning with cluded in other consumer goods paper. Jan. 1959 (except for instalment credit held by sales finance cos.) and for Hawaii beginning with Aug. 1959. For back data see the following NOTE.—Consumer credit estimates cover loans to individuals for BULLS.: Apr. 1953 (includes a description of the series); Oct. 1956; household, family, and other personal expenditures, except real estate Nov. 1958 and 1959; and Dec. 1957, 1960, and 1961. INSTALMENT CREDIT [In millions of dollars] 1financial nstitutions Retail outlets End of period Total Total m b C e a o r n m c k ia - s l fi S n c a a o l n s e . c s e u C n r i e o d n i s t fi s n C u a m o n n c e - e r J Other 1 Total D st m o ep r e e a n s r t t 2 - F s t t u u o r r r n e e i s - A s a t p o n p r c e l e i s - d m e A a o l u e b t r o i s l - 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 1,605 320 496 206 188 395 194*> 2 462 1 776 745 300 102 629 686 131 240 17 28 970 I955 28,883 24,375 10,601 8,424 1,678 2,623 1,049 4,508 1,511 1,044 365 487 ,101 1956 31,648 26,905 11,777 9,045 2,014 2,940 J.I 29 4,743 1,408 1,187 377 502 269 I957 33,745 29,078 12,843 9,487 2,429 3 124 195 4 668 1 393 1 210 361 478 226 1958 33,497 28,514 12,780 8,699 2,668 3,085 ,282 4,983 1,882 1,128 292 ^06 ,175 1959 39,034 33,359 15,227 10,108 3,280 3,337 ,407 5,676 2,292 1,225 310 481 368 I960 42,588 36,974 16,672 11,228 3,923 3,670 ,481 5,615 2,414 1,107 333 359 ,402 1961 43,163 37,580 16,843 11,052 4,352 3,798 ,535 5,583 2,421 1,080 322 359 401 1961—July 41,909 37,226 17,066 10,903 4,144 3,633 ,480 4,682 1,811 993 312 359 1 207 Aug 42,090 37,320 17,065 10,886 4,207 3,659 ,503 4,769 1,896 1,001 314 359 1,199 Sept 42,039 37,188 16,909 10,882 4,233 3,650 ,514 4 850 1 979 1 009 315 360 1 187 Oct 42,181 37,191 16,877 10,866 4,269 3,671 ,508 4,990 2,097 1,014 315 359 1 205 Nov 42,419 37,240 16,836 10,878 4,317 3.684 ;525 5,179 2.213 1,034 314 360 1,258 Dec 43,163 37,580 16,843 11,052 4,352 3,798 ,535 5,583 2 421 1,080 322 359 1 401 1962—Jan 42,846 37,551 16,759 11,190 4,306 3,782 ,514 5,295 2 212 1,057 315 359 1 352 Feb 42,632 37,469 16,726 11,133 4,311 3,783 ,516 5,163 2,167 1,039 311 358 1288 Mar 42,704 37,509 16,779 11,049 4,355 3,795 ,531 5,195 2,227 1,018 305 356 1,289 Apr 43,285 37,965 17,042 11,121 4,449 3,826 ,527 5,320 2 339 1 011 303 351 1 316 May 43,893 38,453 17,316 11,199 4,543 3,836 ,559 5,440 2,430 1,011 301 345 1,353 June 44.559 39,010 17,610 11,325 4,640 3,876 ,559 5,549 2,522 1.008 303 336 1,380 July 44,967 39,426 17,815 11,435 4,705 3,907 ,564 5,541 2,517 1,009 302 327 1,386 1 Consumer finance cos. included with "other" financial institutions dealers is included with "other" retail outlets. until Sept. 1950. 2 Includes mail-order houses. See also NOTE to table above. 3 Automobile paper only; other instalment credit held by automobile Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 1213 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES [In millions of dollars] [In millions of dollars] End of period Total c P h A a u s u r e - t p d o a m pe o D r b i i r l e e ct s g O p c u o a o t m o p h n d e e e - r s r r e R m l r t o a e n i o n a p o iz n d d n a a s - ir - s l P o o e a n r n a - s l End of period Total m A pa o u p b t e o il r - e s O p g c u a o o t m p h o n e e d e - r r r s m i R z l o o a e a d a n p ti n e d a o r s i n n r - l s P o o a e n n r 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 1955 8,424 6,882 1,048 28 466 1955 10,601 3,243 2,062 2,042 1,338 1,916 1956 9,045 7,166 1,277 32 570 1956 11,777 3,651 2,075 2,464 1,469 2,118 1957 9,487 7,271 1,509 31 676 1957 12,843 4,130 2,225 2,557 1,580 2,351 1958 8,699 6,165 1,717 36 781 1958 12,780 4,014 2,170 2,269 1,715 2,612 1959 10,108 6,976 2,114 72 946 1959 15,227 4,827 2,525 2,640 2,039 3,196 1960 11,228 7,284 2,739 139 ,066 1960 16,672 5,316 2,820 2,759 2,200 3,577 1961 11,052 6,590 3,100 161 ,201 1961 16,843 5,307 2,862 2,684 2,180 3,810 1961—July. 10,903 6,799 2,854 155 ,095 1961—July 17,066 5,295 2,861 3,013 2,176 3,721 Aug. 10,886 6,756 2,865 149 ,116 Aug 17,065 5,312 2,860 2,936 2,190 3,767 Sept. 10,882 6,650 2,937 153 ,142 Sept 16,909 5,284 2,822 2,826 2,197 3,781 Oct.. 10,866 6,621 2,929 157 ,159 Oct 16,877 5,308 2,825 2,769 2,198 3,777 Nov. 10,878 6,611 2,940 160 ,167 Nov 16,836 5,314 2,852 2,700 2,195 3,775 Dec. 11,052 6,590 3,100 161 ,201 Dec 16,843 5,307 2,862 2,684 2,180 3,810 1962—Jan.. 11,190 6,535 3,286 162 ,207 1962—Jan 16,759 5,292 2,871 2,631 2,147 3,818 Feb.. 11,133 6,528 3,232 162 ,211 Feb 16,726 5,309 2,881 2,594 2,119 3,823 Mar. 11,049 6,554 3,118 163 ,214 Mar 16,779 5,364 2,918 2,549 2,100 3,848 Apr. 11,121 6,642 3,078 165 ,236 Apr 17,042 5,472 2,993 2,535 2,106 3,936 May 11,199 6,766 3,021 167 ,245 May 17,316 5,590 3,063 2,551 2,123 3,989 June 11,325 6,892 3,002 168 ,263 June 17,610 5,716 3,130 2,574 2,141 4,049 July. 11,435 6.994 2.997 171 ,273 July 17,815 5,814 3.169 2,590 2,158 4,084 See NOTE to first table on previous page. See NOTE to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS [In millions of dollars] [In millions of dollars] Single- Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal paper goods ization loans End of period Total Service paper loans Com- Other De- credit mer- finan. part- Other Credit cial insti- ment retail cards2 1939 789 81 24 15 669 banks tutions storesl outlets 1941 957 122 36 14 785 1945 731 54 20 14 643 1939 . 2,719 625 162 236 1,178 518 1955 .. . 5,350 763 530 327 3,730 1941 . 3,087 693 152 275 1 370 597 1956 6,083 954 624 404 4,101 1945 3,203 674 72 290 1,322 845 1957 6,748 1,114 588 490 4,555 1958 . . 7,035 1,152 565 595 4,723 1955 . 9,924 2,635 367 862 3 717 216 2 127 1959 8,024 ,400 681 698 5,244 1956 10,614 2,843 410 893 3,842 260 2,366 I960 9,074 1,665 771 800 5,837 1957 11,103 2,937 427 876 3,953 317 2,593 1961 9,685 ,842 763 836 6,244 1958 . 11,487 3,156 471 907 3 808 345 2 800 1959 12,297 3,582 547 958 3,753 393 3,064 1961—July 9,257 1,748 744 802 5,963 I960 13,169 3,884 623 941 3,952 436 3 333 Aus 9,369 ,774 755 826 6,015 1961 13,976 4,224 731 948 4,027 463 3,583 Sept 9,397 1,786 753 830 6,028 Oct 9,448 ,800 756 828 6,064 1961—July 12,596 4,103 605 574 3,360 463 3,491 Nov 9,526 1,823 756 837 6,110 Aug 12,649 4,100 669 589 3,327 493 3,471 Dec 9,685 ,842 763 836 6,244 Sept 12,718 4,129 703 623 3,312 488 3,463 Oct 12,721 4,125 653 656 3,382 479 3,426 1962—Jan 9,602 1,821 752 822 6,207 Nov 13,032 4,158 722 717 3,498 469 3,468 Feb 9,610 1,824 749 818 6,219 Dec 13,976 4,224 731 948 4,027 463 3,583 Mar . . 9,681 1,847 750 821 6,263 Apr 9,802 1,885 751 823 6,343 1962—Jan 13,432 4,203 703 804 3,614 474 3,634 May 9,938 1,919 756 841 6,422 Feb 12,960 4,220 711 635 3,188 471 3,735 June . •. 10,075 ,959 766 847 6,503 Mar 12,976 4,279 777 594 3,139 458 3,729 July 10,176 987 769 853 6,567 Apr 13,365 4,390 721 620 3,367 464 3,803 May.... 13,700 4,421 817 636 3,571 476 3,779 June 13,718 4,439 788 612 3,635 492 3,752 NOTE.—Institutions represented are consumer finance cos., credit July 13,554 4,430 773 569 3,518 520 3,744 unions, industrial loan cos., mutual savings banks, savings and loan assns., and other lending institutions holding consumer instalment loans. 1 Includes mail-order houses. See NOTE to first table on preceding page. 2 Service station and misc. credit-card accounts and home-heating-oil accounts. See NOTE to first table on previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1214 CONSUMER CREDIT INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT [In millions of dollars] 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 a o n n d loans Personsil loans Period S.A.I N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.I N.S.A. S.A.I N.S.A. Extensions 1955 38,944 16,706 10,642 1,393 10,203 1956 39,775 15,421 11,721 1,582 11,051 1957 41,871 16,321 11,807 1,674 12,069 1958 39,962 14,069 11,747 1,871 12,275 19592 47,818 17,544 13,982 2,222 14,070 1960 49,313 17,408 14,470 2,212 15,223 1961 47,984 15,779 14,477 2,049 15,679 1961—July 3,909 3,905 1,300 1.365 1.184 1.113 167 175 1.258 1.252 Aug 4,038 4,234 1,302 1,395 1,212 1,229 186 206 1,338 1,404 Seot 3,942 3,789 1,271 ,168 1,199 1,200 175 184 1,297 1,237 Oct 4,209 4,244 1,405 ,452 1,254 1,300 173 186 1,377 1,306 Nov 4,317 4,275 1,511 ,402 1,249 1,327 174 177 1,383 1,369 Dec 4,315 4,754 1,471 ,289 1,316 1,750 159 145 1,369 1,570 1962 Jan ... 4,194 3,756 1,474 ,320 1,185 1,039 157 120 1,378 ,277 Feb 4,302 3,566 1,496 ,284 1,281 972 168 122 1,357 ,188 Mar 4,363 4,301 1,526 1,574 1,257 1,161 172 154 1,408 ,412 Apr 4,625 4,658 1,606 ,688 1,382 1,287 169 175 1,468 ,508 May 4,593 4,858 1,604 .787 1,312 1,346 185 210 1.492 1,515 June 4,477 4,830 1,536 1,755 1,308 ,358 169 192 1,464 1,525 July 4,580 4.641 1,601 1,709 1,332 1,249 194 211 1,453 ,472 Repayments 1955 33,629 13,077 9,752 1,316 9,484 1956 37,009 14,510 10,756 1,370 10,373 1957 39,775 15,451 11,569 1,477 11,278 1958 40,211 15,281 11,563 1,626 11,741 19592 42,435 15,411 12,402 1,765 12,857 1960 45,759 16,172 13,574 1,883 14,130 1961 47,412 16,262 14,233 2,012 14,905 1961 July 3,937 3,885 1,364 1.362 1.183 1.145 165 165 1.225 1.213 Aug 3,994 4,053 1,362 1,396 1,197 1,198 170 174 1,265 1,285 Sept 3,956 3,839 1,350 ,327 1,190 ,159 170 169 1,246 1,184 Oct 4,028 4,102 1,372 ,441 ,210 ,221 178 183 1,268 1,257 Nov 4,017 4,037 1,359 1,355 1,188 1,197 166 168 1,304 1,317 Dec 4,051 4,010 1,361 ,289 ,233 ,194 168 160 ,289 1.367 1962 Jan 3,979 4,073 1,380 1,402 1,147 1,205 164 166 1,288 1,300 Feb 4,066 3,780 1,369 1,262 1,253 1,197 166 154 1,278 1,167 Mar 4,094 4,229 1,393 1,435 ,226 1.285 166 169 1,309 1,340 Apr 4,108 4,077 1,403 1,384 1,217 l,'21O 166 165 1,322 1,318 'May 4,180 4,250 1,418 1,447 1,234 1,256 170 173 1,358 1,374 June .... 4,159 4,164 1,402 ,405 1,230 1,226 166 167 1,361 1,366 July 4,239 4,233 1,430 [,451 1,271 1,234 182 185 1,356 1,363 Net change in credit outstanding 3 1955 5,315 3,629 890 77 719 1956 2,766 911 965 212 678 1957 2,096 870 238 197 791 1958 -249 -1,212 184 245 534 1959 2 5,535 2,201 1,602 463 1,269 1960 3,554 1,236 896 329 1,093 1961 572 -483 244 37 774 1961 July -28 20 -64 3 1 -32 2 10 33 39 Aug 44 181 -60 -1 15 31 16 32 73 119 Sept -14 -50 -79 -159 9 41 5 15 51 53 Oct 181 142 33 11 44 79 -5 3 109 49 Nov. 300 238 152 47 61 130 8 9 79 52 Dec 264 744 110 * 83 556 -9 -15 80 203 1962 Jan 215 -317 94 -82 38 -166 -7 -46 90 -23 Feb 236 -214 127 22 28 -225 2 -32 79 21 Mar 269 72 133 139 31 -124 6 -15 99 72 Apr 517 581 203 304 165 77 3 10 146 190 May 413 608 186 340 78 90 15 37 134 141 June 318 666 134 350 78 132 3 25 103 159 July 341 408 171 258 61 15 12 26 97 109 if Includes adjustment for differences in trading days. financing charges. Renewals and refinancing of loans, purchases and 2* Includes data for Alaska and Hawaii beginning with the months in sales of instalment paper, and certain other transactions may increase the which they became States. The differences between extensions and amount of extensions and repayments without affecting the amount repayments do not equal the changes in outstanding credit for 1959 outstanding. because such differences do not reflect the effect of the introduction of For a description of the series in this and the following table see Jan. outstanding balances for these States. 1954 BULL., pp. 9-17. For back data see the following BULLS., Oct. 1956, 3 Credit extended less credit repaid, except as indicated in note 2. pp. 1043-48, and Dec. 1961, pp. 1393-96. NOTE.—Estimates are based on accounting records and often include Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 1215 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER [In millions of dollars] Total Commercial banks Sales finance Other financial Retail outlets companies institutions Period S.A. i N.S.A. S.A. i N.S.A. S.A. i N.S.A. S.A. i N.S.A. S.A. i N.S.A. Extensions 1955 38,944 14,109 10 178 8 ^76 6 281 1956 . . 39,775 14,463 9,526 9 148 6,638 1957 41,871 15 355 10,106 9,915 6,495 1958 39,962 14,860 8,886 9,654 6,563 1959 2.. . . 47,818 17 976 10,962 10 940 7,940 I960 49,313 18,269 11,211 12,073 7,762 1961 47,984 17,512 10,481 12,264 7,727 1961 July 3,909 3,905 1 44? 1,482 827 863 QR4 989 656 571 Aug.. . .. 4,038 4,234 ,476 1,559 853 927 1,049 1,100 660 648 Sept 3,942 3,789 ,438 1,371 828 809 1,023 958 653 651 Oct . 4,209 4,244 ,533 1,536 913 951 ,078 1,034 685 723 Nov.. 4,317 4,275 ,557 1,456 957 924 1,115 1,118 688 111 Dec 4,315 4,754 .546 1,431 1,076 1,086 1,071 1,240 622 997 1962—Jan.. 4,194 3,756 1,515 1,441 907 821 ,058 944 714 550 Feb 4,302 3,566 1,557 1,359 975 797 064 918 706 492 Mar 4,363 4,301 1,580 1,593 928 917 1,122 1,118 733 673 Apr.. 4,625 4,658 1,646 1,747 994 997 1,148 1,158 837 756 May 4,593 4,858 1,642 1,807 991 1,046 1,176 1,209 784 796 June. 4,477 4,830 1,639 1,784 961 1,067 1,125 1,195 752 784 Julv 4,580 4,641 1,681 1,756 982 1,045 1,131 1,161 786 679 Repayments 1955 33,629 12,304 7,898 7,536 5,891 1956 37,009 13 362 8 904 8 415 6 328 1957 39,775 14,360 9 664 9,250 6,499 1958 40 211 14 647 9 708 9 365 6 490 1959 2 ... 42,435 15,560 9 574 10 020 7 281 I960 45,759 16,832 10,229 11,022 7,676 1961 47,412 18 261 10 733 11,666 6,752 1961—July. 3,937 3,885 1.529 1,529 890 874 963 954 555 528 Aus 3,994 4,053 1,535 1,560 906 933 988 999 565 561 Sept. 3,956 3,839 1,521 1,486 883 862 982 930 570 561 Oct 4,028 4,102 ,523 1,569 918 967 997 983 590 583 Nov 4,017 4,037 1,495 1,480 899 912 1,031 1,040 592 605 Dec.. 4,051 4,010 1,509 1,424 931 912 1,008 1,081 603 593 1962 Jan 3,979 4,073 [,486 1,525 874 867 1,022 1,027 597 654 Feb. 4,066 3,780 1,469 1,392 971 904 996 910 630 574 Mar 4,094 4,229 1,517 1,540 950 1,001 1,020 1,047 607 641 Apr 4,108 4,077 1,472 1,475 935 934 1,043 1,037 658 631 May 4,180 4,250 1,492 1,533 961 968 1,061 1,073 666 676 June. 4,159 4,164 1,489 1,490 952 941 1,045 1,058 673 675 Julv 4,239 4,233 1,524 1,551 938 935 1,053 1,060 724 687 Net change in credit outstanding 3 1955 5 315 1 805 2 280 840 390 1956 2,766 1,176 622 733 235 1957 2,096 1 066 442 665 — 75 1958 -249 -63 -788 289 315 1959 2 5,535 2,447 1,409 986 693 I960 3,554 1,446 1,120 1,051 -61 1961 572 169 -174 609 -32 1961 July -28 20 -87 -47 -63 -11 21 35 101 43 Aug. 44 181 -59 -64 -17 72 112 95 87 Sept. -14 -50 -124 -156 -6 -4 41 28 75 82 Oct 181 142 10 -33 -5 -16 81 51 95 140 Nov. 300 238 45 -41 58 12 84 78 113 189 Dec 264 744 37 7 145 174 63 159 19 404 1962—Jan 215 -317 29 -84 217 138 36 -83 -67 -288 Feb 236 -214 88 -33 54 -57 68 8 26 -132 Mar 269 72 63 53 -22 -84 102 71 126 32 Apr 517 581 165 263 68 72 105 121 179 125 May 413 608 150 274 30 78 115 136 118 120 June 318 666 150 294 9 126 80 137 79 109 July 341 408 157 205 44 110 78 101 62 -8 1 Includes adjustment for differences in trading days. because such differences do not reflect the effect of the introduction of 2 Includes data for Alaska and Hawaii beginning with the months in outstanding balances for these States. which they became States. The differences between extensions and 3 Credit extended less credit repaid, except as indicated in note 2. repayments do not equal the changes in outstanding credit for 1959 See also NOTE to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1216 INDUSTRIAL PRODUCTION: S.A. INDUSTRY AND SUMMARY MARKET GROUPINGS [1947_49= 100] Annual average 1961 1962 Grouping 1960 1961* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July INDUSTRY GROUPINGS Total index. 164 170 172 168 171 173 174 172 174 176 177 179 179 180 Manufacturing, total., 163 169 170 167 770 172 173 171 775 774 775 775 178 779 Durable 169 175 175 171 174 177 179 176 179 182 184 185 185 187 Nondurable 160 167 169 167 171 171 171 169 171 171 172 174 174 175 Mining 128 129 130 128 131 132 133 130 130 131 133 132 132 134 Utilities 287 307 314 316 317 315 314 318 319 321 320 326 334 335 Durable Manufactures Primary and fabricated metals. 127 125 132 136 133 133 135 137 137 141 141 139 133 131 130 Primary metals 115 112 121 125 126 122 123 126 128 133 133 128 116 110 109 Iron and steel 110 105 114 115 116 113 113 120 123 129 129 123 105 r98 95 Fabricated metal products 145 143 148 151 144 150 153 153 151 151 153 155 158 162 162 Structural metal parts 155 154 160 164 157 161 161 159 155 157 158 163 168 170 169 Machinery and related products... 205 202 210 210 203 205 214 217 213 275 220 224 228 229 233 Machinery 174 \1A 181 178 177 178 180 184 183 185 190 193 195 200 199 Nonelectrical machinery 145 142 147 145 145 145 147 148 147 149 154 157 160 164 164 Electrical machinery 222 226 237 232 229 231 235 243 243 245 249 252 253 259 256 Transportation equipment 238 227 239 240 221 235 248 252 242 244 249 256 263 256 268 Motor vehicles and parts 168 151 167 169 139 157 169 175 166 166 171 181 187 179 191 Aircraft and other equipment. . 368 376 376 375 385 388 399 400 388 393 398 394 403 401 409 Instruments and related products. 221 220 222 227 225 225 229 228 226 223 224 227 231 236 237 Ordnance and accessories Clay, glass, and lumber 139 138 145 144 142 139 139 136 730 755 737 742 747 149 148 Clay, glass, and stone products. 158 156 165 165 162 160 159 152 147 151 151 158 168 170 171 Lumber and products 118 116 123 120 119 114 116 118 112 126 122 124 122 125 122 Furniture and miscellaneous.. 153 154 156 757 755 750 164 163 755 759 754 169 173 174 772 Furniture and fixtures 171 171 172 176 176 177 183 183 175 179 184 188 192 194 190 Miscellaneous manufactures. 138 140 142 142 142 145 148 146 143 143 148 154 157 157 158 Nondurable Manufactures Textile, apparel, and leather products. 136 137 140 142 740 144 144 745 142 745 744 145 145 146 145 Textile mill products 121 124 127 129 131 132 131 132 130 132 136 134 136 138 136 Apparel products 158 158 162 165 159 166 165 167 161 164 163 165 164 164 165 Leather and products 113 113 113 116 112 117 119 123 117 117 114 118 119 117 Paper and printing 160 164 164 169 168 168 169 770 169 777 770 169 171 77/ 777 Paper and products 172 182 179 189 187 188 187 192 189 193 191 189 191 190 190 Printing and publishing. 151 153 154 155 155 155 157 156 156 157 156 156 158 159 158 Newspapers 140 139 139 140 140 140 142 142 142 141 140 140 141 141 142 Chemical, petroleum, and rubber products. 224 234 243 243 239 245 245 247 243 247 246 249 •257 260 262 Chemicals and products , 255 269 277 277 276 280 282 285 281 288 284 288 •296 '299 302 Industrial chemicals , 319 345 356 358 361 367 370 370 369 378 373 378 "387 394 Petroleum products 162 166 174 172 164 172 169 162 168 165 169 167 172 '175 172" Rubber and plastics products 200 201 215 215 210 217 217 225 208 217 216 223 234 238 Foods, beverages, and tobacco. 131 136 137 137 757 139 139 138 138 755 747 740 140 738 140 Foods and beverages 132 136 138 138 137 140 140 138 140 139 141 140 140 139 142 Food manufactures 135 139 140 140 140 142 142 142 142 142 144 144 144 r142 144 Beverages 119 124 129 127 126 128 127 122 727 124 127 123 124 124 Tobacco products 130 134 125 135 133 140 140 136 750 132 139 139 137 129 Mining Coal, oil, and gas 122 123 123 725 722 725 727 727 725 725 725 128 126 126 128 Coal 68 65 64 67 68 69 70 70 70 68 69 71 70 '65 66 Crude oil and natural gas. 147 150 150 152 147 151 152 153 151 151 151 154 r152 154 157 Oil and gas extraction.. 147 150 151 152 147 151 150 151 149 150 150 153 151 154 157 Crude oil 135 138 139 141 137 139 138 138 137 138 137 140 138 142 145 Gas and gas liquids.. 228 Oil and gas drilling 145 147 143 141 141 147 161 165 159 150 155 156 151 146 149 Metal, stone, and earth minerals. 164 164 163 750 752 755 770 75P 757 754 755 755 773 '167 168 Metal mining 134 134 124 124 130 137 146 155 155 155 154 143 139 131 132 Stone and earth minerals , 195 194 204 198 196 199 193 181 166 173 177 192 207 '205 206 Utilities Electric. 289 308 309 317 319 320 316 316 321 320 322 319 327 337 Gas 284 SUMMARY MARKET GROUPINGS Final products, total 168 170 174 174 172 175 17S 179 176 177 180 181 183 184 185 Consumer goods 161 164 169 169 164 168 170 172 170 170 172 173 175 175 176 Equipment, including defense. 195 196 197 198 201 203 207 208 204 208 210 211 214 217 221 Materials 160 161 166 168 165 168 168 170 168 171 172 174 174 '•175 175 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION: N.S.A. 1217 INDUSTRY AND SUMMARY MARKET GROUPINGS [1947_49= 100] Annual average 1961 1962 Grouping 1960 1961* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July INDUSTRY GROUPING Total index. 164 160 169 171 176 174 172 170 175 178 178 178 180 172 Manufacturing; total. 163 755 757 169 775 173 170 168 174 777 777 777 179 776> Durable 169 163 165 172 178 179 179 177 182 185 187 185 186 177 Nondurable 160 158 173 171 178 171 164 163 169 172 172 173 177 166 Mining 128 125 130 130 133 132 132 130 131 130 132 133 135 127 Utilities 287 Durable manufactures Primary and fabricated metals. 727 125 720 130 133 136 134 735 758 143 145 142 134 132 119 Primary metals 115 112 105 115 122 123 122 123 132 139 141 134 118 112 94 Iron and steel 110 105 99 108 116 116 114 117 127 134 135 126 106 99 83 Fabricated metal products 145 143 143 153 150 154 153 153 148 148 151 155 158 162 157 Structural metal parts 155 154 154 161 159 165 165 164 155 156 158 162 166 170 166 Machinery and related products 205 202 195 790 207 272 278 227 275 227 225 227 228 •229 222 Machinery 174 174 167 170 178 181 182 185 183 189 193 195 195 199 188 Nonelectrical machinery 145 142 140 138 142 143 144 149 149 154 160 162 162 165 159 Electrical machinery 222 226 211 224 238 245 245 243 238 245 248 247 247 255 234 Transportation equipment 238 227 219 196 215 241 260 262 253 255 259 263 265 257 259 Motor vehicles and parts 168 151 146 114 133 166 187 187 178 177 180 189 192 181 182 Aircraft and other equipment 368 376 362 366 380 386 398 402 396 402 407 398 398 r399 405 Instruments and related products 221 220 216 223 226 226 231 230 226 225 226 230 230 235 232 Ordnance and accessories Clay, glass, and lumber 139 138 143 752 750 148 759 727 720 757 745 150 156 148 Clay, glass, and stone products. 158 156 164 171 167 167 160 148 138 143 161 171 174 172 Lumber and products 118 116 119 131 131 126 115 103 98 118 122 126 135 119 Furniture and miscellaneous.. 153 154 750 757 755 75P 759 755 755 758 164 755 777 166 Furniture and fixtures 171 171 168 180 182 186 185 186 172 178 183 184 189 186 Miscellaneous manufactures. 138 140 134 145 151 155 155 148 138 140 149 152 155 149 Nondurable manufactures Textile, apparel, and leather products. 755 757 124 149 755 148 141 755 757 750 752 147 144 '146 129 Textile mill products 121 124 111 130 127 136 131 127 128 134 137 132 137 139 119 Apparel products 158 158 145 176 148 171 160 152 155 174 177 171 164 164 148 Leather and products 113 113 102 120 112 118 116 113 115 125 124 119 112 117 Paper and printing 750 75* 755 755 759 775 775 755 164 770 77* 775 772 172 159 Paper and products 172 182 162 192 189 200 190 173 183 194 197 195 191 195 172 Printing and publishing., 151 153 147 150 157 161 162 157 152 155 159 160 160 157 151 Newspapers 140 139 122 126 140 152 155 140 131 137 145 149 150 142 125 Chemical, petroleum, and rubber products. 224 234 226 241 239 247 246 242 243 250 252 254 r263 249 Chemicals and products 255 269 260 275 274 281 282 278 277 287 291 295 r302 286 Industrial chemicals 319 345 335 352 353 365 372 370 367 380 383 385 389 392 Petroleum products 162 166 173 177 168 171 167 166 168 167 167 162 169 179 Rubber and plastics products 200 201 181 207 213 228 223 215 219 229 227 230 230 241 Foods, beverages, and tobacco. 757 755 757 148 757 752 141 750 727 728 757 752 755 141 141 Foods and beverages 132 136 139 148 152 152 141 132 127 128 130 132 135 141 143 Food manufactures 135 139 139 151 157 157 147 137 133 132 132 134 135 140 144 Beverages 119 124 138 137 127 132 114 110 101 108 121 124 132 147 Tobacco products 130 134 115 145 138 150 140 110 130 134 139 133 141 141 Mining Coal, oil, and gas 722 777 725 722 725 727 729 729 729 727 124 778 Coal 68 54 70 72 75 73 70 69 69 69 68 44 Crude oil and natural gas. 147 145 147 145 149 152 156 156 157 154 150 151 Oil and gas extraction.. 147 144 147 145 148 150 155 155 157 154 150 150 Crudeoil 135 133 136 134 137 137 140 141 143 142 138 139 Gas and gas liquids.. 228 Oil and gas drilling.... 147 147 146 144 148 159 167 163 149 148 148 153 Metal, stone, and earth minerals. 164 775 775 779 780 164 149 755 7*5 752 785 184 Metal mining 134 143 143 150 151 133 124 122 127 135 160 152 Stone and earth minerals 194 212 210 209 210 195 175 150 158 188 212 217 Utilities Electric. 289 308 306 325 327 310 304 320 342 332 328 313 311 326 Gas 284 SUMMARY MARKET GROUPINGS Final products, total 168 170 165 172 176 182 179 176 174 178 181 181 185 180 Consumer goods 161 164 158 167 170 178 172 167 166 170 172 171 176 169 Equipment, including defense. 195 196 192 194 199 201 204 208 206 210 215 215 219 217 Materials 160 161 156 166 166 171 170 168 167 172 175 175 176 165 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1218 INDUSTRIAL PRODUCTION: S.A. INDUSTRY GROUPINGS [1957= 100] 1957 A A v n e n r u a a g l e 1961 1962 Grouping proportion 1960 1961* July Aug. Sept.Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index 100.00 108 109 112 113 Ill 113 114 115 114 115 116 117 118 118 119 86.49 108 109 112 773 777 773 77* 775 77* 775 776 777 118 118 779 Durable 49.66 104 103 107 108 105 107 109 110 108 110 112 113 114 114 115 36.83 113 117 119 120 119 121 121 122 120 122 122 122 124 124 125 Mining 8.55 97 98 98 99 97 100 101 101 99 99 99 101 101 100 102 Utilities 4.96 123 132 135 135 135 135 135 137 137 138 137 140 143 144 Durable Manufactures 13.15 97 95 100 104 707 702 703 70* 705 707 707 106 101 r100 99 7.73 90 88 95 98 99 96 96 99 101 105 104 100 91 86 86 6.21 88 84 91 92 93 90 90 96 98 104 103 98 84 78 76 Fabricated metal products 5.42 106 105 108 111 105 110 112 112 110 111 112 113 116 119 119 Structural metal parts 2.91 104 103 107 110 105 108 107 106 104 105 106 109 112 114 113 Machinery and related products 28.98 106 104 108 108 705 707 770 772 770 777 773 776 118 118 120 15.31 106 106 110 109 108 108 110 112 111 113 116 118 119 122 121 Nonelectrical machinery 8.92 102 100 103 102 102 102 103 104 103 105 108 111 113 115 116 Electrical machinery 6.39 112 114 120 118 116 117 119 123 123 124 126 128 128 131 130 10.76 102 97 102 103 95 101 106 108 104 105 107 110 113 110 115 Motor vehicles and parts 5.04 115 103 114 116 95 107 116 119 114 114 117 124 128 122 131 Aircraft and other equipment 5.50 89 91 91 90 93 93 96 96 93 95 96 95 97 r97 99 1.66 119 118 119 122 121 121 123 123 121 120 120 122 124 127 128 1.25 Clay gloss and lumber 4.57 109 707 113 772 777 705 705 706 702 705 707 110 114 '116 116 2.92 110 108 114 114 112 111 110 106 102 104 105 109 116 118 118 Lumber and products . . ... 1.65 107 105 111 109 107 103 105 107 101 114 111 112 113 111 Furniture and miscellaneous 2.96 116 117 119 720 720 727 72* 72* 720 727 725 129 131 732 131 Furniture and fixtures . . .. .. 1.48 120 120 121 123 123 124 128 128 123 125 128 131 134 136 133 Miscellaneous manufactures . 1.48 113 114 117 116 116 119 121 120 117 117 121 126 129 129 129 Nondurable Manufactures Textile apparel and leather products 7.32 115 116 118 720 775 722 722 723 720 727 722 722 123 r123 123 Textile mill oroducts 2.78 109 111 114 116 117 118 118 118 117 118 122 121 122 124 122 3.44 124 124 127 130 125 130 130 131 127 129 128 129 129 129 129 Leather and Droducts 1.10 100 101 101 103 100 104 106 109 105 105 101 105 106 104 7.93 112 115 115 77* 777 777 775 779 775 779 779 118 120 r119 119 Paper and products 3.27 112 118 117 123 122 122 122 125 123 125 124 123 125 123 124 4.66 111 113 114 114 114 114 115 114 114 115 115 115 116 117 116 Newspapers • 1.53 107 106 107 107 107 107 108 108 109 108 107 107 108 108 109 Chemical petroleum and rubber products. ..10..95 118 123 727 727 726 725 729 730 727 730 729 737 r135 737 137 7.10 121 128 132 132 132 133 134 136 134 137 135 137 r141 r142 144 3.61 127 137 141 142 143 146 147 147 146 150 148 150 154 156 1.93 108 110 116 115 110 114 113 108 112 110 112 111 115 r117 114 1.91 114 115 123 123 120 124 124 129 119 124 124 128 134 136 10.64 109 113 114 114 77* 776 776 775 775 115 117 116 116 115 117 9.87 109 113 114 114 114 116 116 114 115 115 117 116 116 r115 117 Food manufactures 8.31 109 113 114 114 114 116 116 115 116 116 117 117 117 115 117 1.56 108 112 117 115 114 116 116 110 115 112 115 111 112 113 .77 114 118 110 119 116 123 123 120 114 116 122 122 120 114 Mining 7.05 96 97 96 98 96 98 99 99 98 98 95 700 98 99 100 Coal 1.30 83 80 77 81 82 84 86 86 86 83 84 86 85 r79 80 5.75 98 100 101 102 99 101 102 103 101 101 101 103 r102 103 105 Oil and gas extraction 4.98 100 103 103 105 101 104 104 103 102 103 103 105 104 106 108 4.33 98 100 101 103 99 101 100 100 99 100 100 102 101 103 105 .65 116 Oil and gas drilling .77 85 86 84 82 83 86 95 97 93 88 91 92 88 86 87 1.50 105 105 705 705 70* 707 70P 705 103 705 706 705 111 '707 705 .70 97 97 90 90 94 99 106 112 12 112 112 104 101 95 96 Stone and earth minerals .80 112 112 118 114 113 115 111 104 96 100 102 111 119 118 118 Utilities Electric 3.76 123 131 132 135 136 137 135 135 137 137 137 136 140 144 Gas 1.20 123 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION: S.A. 1219 MARKET GROUPINGS [1957= 100] p 19 ro 5 - 7 A A v n e n r u a a g l e 1961 1962 Grouping portion 1960 1961* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index. 100.00 108 109 112 113 111 113 114 115 114 115 116 117 118 118 119 Final products, total 46.75 HI 112 114 115 113 115 117 775 116 117 118 119 120 121 722 Consumer goods 31.13 114 116 120 120 116 119 121 122 121 120 122 123 124 124 125 Equipment, including defense. 15.62 103 104 104 105 106 107 109 110 108 110 111 112 113 '115 116 Materials 53.25 106 106 110 111 109 111 111 112 111 113 114 115 115 '116 116 Consumer goods Automotive products 3.35 117 106 115 117 96 110 121 129 119 116 116 124 127 128 Autos 2.03 117 97 110 110 82 102 117 127 114 109 110 119 126 115 ill Auto parts and allied products 1.32 117 121 125 126 118 123 127 132 126 126 125 131 129 '128 130 Home goods and apparel 9.60 116 117 123 122 120 121 121 125 121 123 125 127 128 r128 727 Home goods 4.40 115 117 124 120 121 120 122 127 123 124 127 130 131 133 130 Appliances, TV, and radios 1.75 112 113 127 116 119 116 117 122 120 122 126 129 r128 '131 127 Appliances 1.26 118 118 126 121 126 124 124 127 126 126 129 132 132 '134 131 TV and home radios .49 96 103 128 102 100 98 101 108 104 113 118 123 117 123 114 Furniture and rugs 1.18 118 119 119 122 126 124 128 129 124 124 126 131 134 '136 133 Miscellaneous home goods 1.47 117 119 123 124 120 122 123 131 127 126 128 130 133 '134 130 Apparel, including knit goods and shoes 5.20 117 118 122 124 118 121 121 123 119 121 124 124 124 '124 124 Consumer staples 18.18 113 117 119 119 119 120 120 119 120 120 121 121 121 '723 723 Processed foods 8.11 109 113 114 114 114 115 115 114 114 114 115 116 116 '116 117 Beverages and tobaccos 2.32 110 114 115 116 115 118 118 113 115 113 118 115 115 113 Drugs, soap, and toiletries 2.73 118 123 126 126 124 127 127 130 126 128 127 128 130 134 i34* C N o e n w s s u p m ap e e r r f s u , e m l a a g n a d z i l n ig e h s, t i a n n g d books 3 1 . . 4 4 5 4 1 1 1 1 3 9 1 1 2 1 6 7 1 1 2 1 8 9 1 1 1 3 7 0 1 1 1 2 9 7 1 1 2 1 9 8 1 1 2 1 9 8 1 1 2 1 9 6 1 1 1 3 9 2 1 11 3 8 2 1 1 3 1 2 8 1 1 3 1 2 8 1 13 1 3 9 ' 1 1 3 2 8 0 120 Fuel oil and gasoline 1.19 106 108 112 111 104 109 112 109 112 113 113 111 112 116 ill Residential utilities 2.26 126 135 139 140 141 140 139 143 143 143 142 144 149 Electricity 1.57 127 U6 136 140 141 141 139 139 144 143 143 142 144 151 Gas .69 124 Equipment Business equipment 12.16 105 105 705 106 707 705 770 7/0 705 770 772 773 775 777 118 Industrial equipment 7.29 102 100 101 102 101 102 104 106 104 106 106 107 109 110 111 Commercial equipment 2.46 118 124 125 127 128 129 131 132 131 133 135 138 140 '141 142 Freight and passenger equipment. 1.83 101 99 96 98 105 106 111 106 101 103 107 105 107 110 113 Farm equipment .58 92 98 98 78 97 87 95 94 91 100 105 110 114 117 116 Defense equipment. 3.46 Materials Durable goods materials. 27.57 702 700 104 706 104 705 705 106 705 707 709 777 777 770 709 Consumer durable 3.67 109 100 109 115 99 101 106 112 112 111 115 120 128 121 126 Equipment 8.10 101 102 104 105 102 107 108 108 108 110 112 116 115 116 115 Construction 9.05 107 106 111 112 110 108 107 105 100 106 107 111 115 114 114 Metal materials n.e.c.... 6.99 92 91 94 96 97 96 97 102 105 107 106 103 r94 r89 86 Nondurable materials 25.44 770 114 775 777 775 777 775 7/9 777 119 779 779 '727 "123 722 Business supplies 8.87 110 113 114 116 113 114 116 118 115 117 117 116 117 119 119 Containers 2.91 109 115 116 121 118 116 119 122 122 121 124 117 117 121 121 General business supplies. 5.96 111 111 114 113 111 112 115 115 112 114 113 115 118 118 118 Nondurable materials n.e.c.. 7.05 119 126 130 132 130 132 132 135 132 135 137 136 140 i44 142 Business fuel and power 9.52 103 105 106 108 106 108 108 108 107 108 108 109 109 110 Mineral fuels 6.29 97 98 98 100 97 100 100 100 99 99 99 101 '100 100 102 Nonresidential utilities 2.70 121 129 131 132 132 131 131 132 132 133 133 137 138 Electricity 2.19 120 8 129 132 133 133 132 132 132 132 133 133 137 139 General industrial .99 115 118 120 122 122 121 120 122 126 128 128 125 126 129 Commercial and other. 1.12 127 139 139 143 146 147 146 144 141 140 141 142 149 151 Gas .51 121 Industrial .33 Commercial and other. .18 Supplementary groups of consumer goods Automotive and home goods. 7.75 116 112 120 118 110 116 122 128 121 120 122 127 129 '128 129 Apparel and staples 23.38 114 117 119 120 118 120 120 120 120 120 122 121 122 123 124 NOTE.—Published groupings include some series and subtotals not in Industrial Production—7959 Revision. Figures for industrial series and shown separately. Detailed description and historical data are available subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1220 INDUSTRIAL PRODUCTION: N.S.A. INDUSTRY GROUPINGS [1957= 100] p 19 ro 5 - 7 A A v n e n r u a a g l e 1961 1962 Grouping portion 1960 1961? July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index . ... .. . 100.00 108 109 106 Ill 113 116 115 113 112 115 117 117 117 119 113 Manufacturing total 86.49 108 109 105 111 113 117 115 113 112 116 118 118 118 119 113 Durable 49.66 104 103 100 102 106 110 111 110 109 112 114 115 114 115 109 Nondurable 36.83 113 117 112 123 121 126 122 116 116 120 122 122 123 '126 118 8.55 97 98 95 99 99 101 101 100 99 99 99 100 101 103 97 Utilities 4.96 123 Durable Manufactures Primary and fabricated metals . .. 13.15 97 95 92 99 102 104 102 103 105 109 111 108 102 no i 91 Primary metals 7.73 90 88 82 91 96 97 96 97 104 110 110 105 93 r88 74 6.21 88 84 80 87 93 93 91 94 101 107 108 101 85 '80 66 5.42 106 105 105 112 110 113 112 112 108 109 111 113 116 119 115 Structural metal parts 2.91 104 103 103 108 106 110 110 110 104 104 106 108 111 114 Machinery and related products 28.98 106 104 101 98 104 109 113 114 112 114 116 118 118 118 115 15.31 106 106 102 104 109 111 111 113 112 115 118 119 119 122 115 Nonelectrical machinery . 8.92 102 100 98 97 100 101 101 105 105 109 112 114 114 116 112 Electrical machinery 6.39 112 114 107 113 121 124 124 123 121 124 126 125 125 129 119 Transportation equipment 10.76 102 97 94 84 92 103 111 112 108 109 111 113 114 110 111 M^otor vehicles and parts . . . .. 5.04 115 103 100 78 91 113 128 128 122 121 123 129 131 124 124 Aircraft and other equipment 5.50 89 91 87 88 92 93 96 97 95 97 98 96 96 96 98 Instruments and related products 1.66 119 118 116 120 121 122 124 124 122 121 122 124 124 '127 125 1.25 Clay, glass, and lumber 4.57 109 107 112 118 117 115 108 99 93 102 103 HI 117 122 116 Clay glass and stone products 2.92 110 108 114 118 116 116 111 102 96 99 102 112 119 121 120 1.65 107 105 108 119 118 114 104 93 89 107 104 110 '114 '123 108 Furniture and miscellaneous 2.96 116 117 114 122 126 129 128 126 117 120 123 125 126 130 126 Furniture and fixtures 1.48 120 120 118 126 128 130 130 130 120 125 127 128 129 132 130 Miscellaneous manufactures 1.48 113 114 110 119 123 127 127 121 113 115 119 122 124 127 122 Nondurable Manufacturers Textile apparel, and leather products 7.32 115 116 105 126 113 125 119 115 116 127 129 124 122 124 109 2.78 109 111 100 117 114 122 118 114 115 121 123 118 123 '125 107 3.44 124 124 114 139 116 134 126 119 122 137 139 135 129 '129 116 Leather and products 1.10 100 101 90 107 100 105 103 100 102 111 110 106 100 105 Paper and printing . 7.93 112 115 107 116 118 123 121 114 114 119 122 121 120 120 111 3.27 112 118 105 125 123 130 124 113 119 126 128 127 125 '127 112 Printing and publishing 4.66 111 113 108 110 115 118 119 115 111 114 117 117 117 116 111 1.53 107 106 94 96 107 116 118 107 100 105 111 114 115 109 96 Chemical netroleum and rubber vroducts 10.94 118 123 119 126 126 130 129 127 127 131 132 133 r135 r138 131 7.10 121 128 124 131 131 134 134 133 132 137 138 141 '142 '144 136 Industrial chemicals . .. .. 3.61 127 137 133 140 140 145 148 147 146 151 152 153 155 156 Petroleum products 1.93 108 110 115 118 112 114 111 111 112 111 112 108 113 119 119 Rubber and plastics products 1.91 114 115 104 118 122 131 128 123 125 131 130 132 132 138 Foods beverages and tobacco 10.64 109 113 114 123 125 126 117 108 106 106 109 110 112 r118 117 9.87 109 113 115 123 126 126 117 109 105 106 108 110 111 n\i 118 8.31 109 113 113 123 128 127 119 111 108 107 108 109 110 r114 117 Beveraces 1.56 108 112 125 124 115 119 103 99 92 98 110 113 120 133 .77 114 118 101 128 121 131 123 97 114 117 122 117 124 124 Mining 7.05 96 97 91 96 95 98 100 101 101 101 100 100 97 99 92 Coal 1.30 83 80 66 85 87 91 89 85 84 84 85 84 82 '92 54 Crude oil and natural gas 5.75 98 100 97 99 97 100 102 105 105 105 104 103 r101 101 101 4.98 100 103 99 101 99 102 103 106 106 108 106 106 103 103 103 4.33 98 100 97 99 98 99 100 102 103 104 103 103 100 101 101 Gas and pas liouids .65 116 Oil and gas drilling • .77 85 86 86 86 84 87 93 98 96 88 86 87 87 87 90 Metal stone and earth minerals 1.50 705 105 113 113 115 116 105 96 87 91 94 104 119 '720 118 .70 97 97 103 103 109 109 96 90 88 92 91 98 116 117 110 Stone and earth minerals .80 112 112 122 121 120 121 113 101 87 91 96 109 122 123 125 Utilities 3.76 123 131 131 139 140 133 130 137 146 142 140 134 13"? 139 1.20 123 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION: N.S.A. 1221 MARKET GROUPINGS [1957= 100] Annual 1 pr 9 o 5 - 7 average 1961 1962 Grouping portion 1960 1961* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index 100.00 108 109 106 Ill 113 116 115 113 112 115 117 117 117 119 113 Final products total 46.75 111 112 109 113 116 119 118 775 774 777 779 779 779 r122 118 31.13 114 116 112 119 121 126 122 118 117 120 122 122 121 125 120 Equipment including defense 15.62 103 104 102 102 105 106 108 110 109 111 113 113 114 116 114 Materials 53.25 106 106 103 110 110 113 113 111 110 114 115 116 116 117 109 Consumer Goods 3.35 117 106 99 73 96 121 129 757 125 124 725 732 752 r127 125 Autos 2.03 117 97 87 39 77 115 134 136 124 122 125 134 133 122 122 Auto Darts and allied Droducts 1.32 117 121 119 125 126 129 123 123 126 126 126 129 130 134 129 9.60 116 117 108 123 120 129 124 775 775 725 129 727 723 127 113 4.40 115 117 108 116 127 130 128 123 116 124 129 127 125 130 115 Appliances TV and radios 1.75 112 113 98 103 125 127 124 113 111 124 131 124 120 '127 102 1.26 118 118 104 100 126 124 123 118 116 128 140 133 127 '137 113 .49 96 103 83 111 125 136 128 102 99 113 107 103 102 103 74 1.18 118 119 113 123 129 131 130 132 120 127 128 129 127 i 30 125 1.47 117 119 114 126 129 133 130 128 120 123 127 128 131 133 123 Apparel including knit goods and shoes 5.20 117 118 109 130 113 127 121 113 116 128 130 126 122 124 112 18.18 113 117 117 125 126 126 120 775 777 777 775 777 118 123 722 Processed foods 8.11 109 113 113 123 128 127 118 111 107 106 107 109 110 114 117 2.32 110 114 117 125 117 123 109 99 99 104 114 114 121 130 2.73 118 123 118 127 125 129 127 126 125 128 128 129 130 135 128 Newspapers magazines and books 1.44 113 117 116 118 121 120 118 117 118 118 120 118 118 118 117 Consumer fuel and lighting 3.45 119 126 124 129 128 124 125 133 144 140 136 130 127 131 1.19 106 108 112 113 106 108 111 114 116 114 110 106 109 114 114 Residential utilities 2.26 126 Electricity 1.57 127 136 128 137 139 131 130 146 166 159 153 142 132 138 Gas .69 124 Equipment 12.16 105 105 103 103 106 707 108 777 709 772 114 775 116 118 116 7.29 102 100 100 101 102 102 103 106 104 105 107 108 109 111 110 Commercial equipment 2.46 118 124 121 126 128 130 132 134 132 135 137 138 139 142 139 Freight and passenger equipment 1.83 101 99 95 94 99 102 106 102 100 106 112 111 111 114 112 .58 92 98 87 71 87 85 85 90 93 110 120 126 120 119 105 3.46 Materials 27.81 102 100 99 103 104 107 707 705 105 705 770 772 777 777 704 Consumer durable 3.67 109 100 94 98 96 108 118 121 119 118 119 119 121 115 109 8.10 101 102 99 101 102 106 109 111 111 112 114 116 115 115 111 9.05 107 106 110 115 114 114 108 101 95 101 104 110 116 120 114 Metal materials nee 6.99 92 91 86 93 98 100 98 98 103 108 108 104 96 r93 79 Nondurable materials •••• 25.44 110 114 108 117 116 120 77P 775 117 720 727 727 727 r123 775 8.87 110 113 105 116 117 120 117 111 111 116 119 119 119 mi 111 Containers 2.91 109 115 110 130 125 124 115 105 113 118 124 120 121 127 116 5.96 111 111 103 109 113 118 118 114 111 114 116 119 119 117 109 Nondurable materials nee. ... . 7.05 119 126 118 129 128 136 136 133 134 139 140 139 141 142 131 9.52 103 105 102 108 107 108 108 109 109 110 109 108 107 110 105 Mineral fuels 6.29 97 98 92 98 97 100 100 101 102 103 102 101 r99 101 93 Nonresidential utilities 2.70 121 Electricity 2.19 120 128 133 140 140 134 130 130 132 129 131 128 133 140 General industrial •• .99 115 118 116 123 123 124 122 122 127 125 128 126 127 129 1.12 127 139 150 158 158 146 139 141 140 136 136 133 141 153 Gas .51 121 .33 Commercial and other .18 Supplementary groups of consumer goods 7.75 116 112 104 97 114 126 129 126 120 124 127 129 128 129 119 23.38 114 117 115 126 123 126 120 116 117 119 121 120 119 123 120 NOTE.—Published groupings include some series and subtotals not subtotals without seasonal adjustment are published in the monthly shown separately. Detailed description and historical data are available Business Indexes release, in Industrial Production—1959 Revision. Figures for individual series and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1222 BUSINESS ACTIVITY SELECTED BUSINESS INDEXES [1947-49= 100, unless otherwise indicated] Industria production fac M tu a r n in u g - 3 Prices l Nonag- Major market groupings Con- ricul- Major industry struc- tural Freight Depart- Period Total groupings Final products Mate- tr c t a i o c o n t n s - 1 m t p o e e l t m o a n y l t - — - 2 p m E lo e m n y - t - P ro a l y ls - i l n o g a s d - i s s a t l o es re i s C u o m n e - r m W c s o o h a d m l o e i l t - y e- Min- Util- Con- Equip- rials Mfg. ing ities Total sumer ment goods 1948 103 103 106 101 102 101 105 104 41 101.6 102.8 105.0 127.6 70 83.8 87.9 1949 98 98 94 108 99 101 94 96 44 99.1 93.8 97.2 108.2 67 83.0 83.5 1950 113 114 105 123 112 115 102 114 61 102.4 99.7 111.7 117.1 72 83.8 86.8 1951 123 123 115 140 121 114 142 124 63 108.3 106.4 130.1 121.5 76 90.5 96.7 1952 127 127 114 152 130 116 170 125 67 110.5 106.3 137.0 115.0 78 92.5 94.0 1953 138 139 117 166 138 124 182 137 70 113.7 111.9 151.7 116.6 80 93.2 92.7 1954 130 129 113 178 132 123 161 128 76 111.0 102.0 138.4 104.6 80 93.6 92.9 1955 146 145 125 199 144 136 172 147 91 114.7 105.8 153.6 115.3 88 93.3 93.2 1956 151 150 132 218 150 139 188 151 92 118.6 106.9 162.4 115.9 94 94.7 96.2 1957 152 150 132 233 152 141 189 151 93 119.7 105.0 164.3 108.2 96 98.0 99.0 1958 . . 141 139 120 244 145 140 165 138 102 116 4 95.5 151.5 93.8 99 100.7 100.4 1959 159 158 125 268 162 155 188 157 105 120.8 100.3 170.3 97.9 105 101.5 100.6 I960 164 163 128 287 168 161 195 160 105 123.0 100.0 172.8 95.3 106 103.1 100.7 1961 ^165 *>164 ^129 »170 H64 *>196 »161 108 122.4 95.9 170.5 91.2 109 104.2 100.3 1961 July 170 169 129 307 174 169 197 166 110 123.0 96.8 171.3 91.1 110 104.4 99.9 Aug .... 172 170 130 314 174 169 198 168 116 123 0 96.8 174.4 91.8 110 104.3 100.1 Sept 168 167 128 316 172 164 201 165 103 122.9 96.3 175.9 90.1 110 104.6 100.0 Oct 171 170 131 317 175 168 203 168 114 123.1 96.5 179.1 94.4 109 104.6 100.0 Nov .... 173 172 132 315 178 170 207 168 116 123 4 97.3 182.0 95.3 112 104.6 100.0 Dec 174 173 133 314 179 172 208 170 119 123.3 97.6 182.0 95.6 113 104.5 100.4 1962—Jan 172 171 130 318 176 170 204 168 115 123.2 97.1 175.9 93.9 109 104.5 100.8 Feb 174 173 130 319 177 170 208 171 119 124.0 97.9 177.5 96.8 110 104.8 100.7 Mar 176 174 131 321 180 172 210 172 131 124.3 98.6 179.7 96.6 117 105.0 100.7 Apr 177 176 133 320 181 173 111 174 121 125.1 99.8 182.5 96.1 113 105.2 100.4 May 179 '178 132 326 183 175 214 174 117 125.4 100.0 183.5 94.0 114 105.2 100.2 June 179 178 132 334 184 175 217 175 120 125.7 100.1 186.5 89.9 111 105.3 100.0 July 180 179 134 335 185 176 221 175 117 126.0 100.0 183.6 89.6 ^ns 105.5 100.4 Aug P180 2>179 H34 *331 ^185 ms »221 ^175 ^125.8 ?98.7 »183.6 90.2 •114 100.5 1 1957-59 = 100. Prices are not seasonally adjusted. and heavy engineering; does not include data for Alaska and Hawaii. 2 Employees only, excludes personnel in the armed forces. Employment and payrolls: Based on Bureau of Labor Statistics data; 3 Production workers only; payrolls are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. NOTE.—Data are seasonally adjusted unless otherwise noted. Freight carloadings: Based on data from Association of American Construction contracts: F. W. Dodge Corp. monthly index of dollar Railroads. value of total construction contracts, including residential, nonresidential, CONSTRUCTION CONTRACTS [In millions of dollars] 1961 1962 Ty ty p p e e o o f f o c w o n n e s r t s r h u i c p t io a n nd 1960 1961 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction 36,318 37,135 3,529 3,543 3,004 3,291 3,008 2,712 2,658 2,749 3,986 3,860 4,009 3,900 3,747 By type of ownership: Public 12,587 12,547 1,265 1,158 954 1,021 942 1,091 922 877 1,475 1,211 1,227 1,331 Private 23,731 24,588 2,263 2,384 2,050 2,270 2,066 1,621 1,736 1,871 2,511 2,650 2,782 2,569 By type of construction: Residential 15,105 16,123 1,502 1,589 1,381 1,498 1,306 1,125 1,190 1,192 1,552 1,816 1,819 1,656 1,623 Nonresidential 12,240 12,115 1,154 1,087 987 1,005 1,095 883 853 893 1,325 1,102 1,275 1,242 1,197 Public works and utilities 8,973 8,897 873 866 637 787 607 704 615 664 1,108 943 915 1,002 926 NOTE.—Dollar value of total contracts as reported by the F. W. Dodge data exceed annual totals because adjustments—negative—are made to Corp.; does not include data for Alaska or Hawaii. Totals of monthly accumulated monthly data after original figures have been published. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION 1223 VALUE OF NEW CONSTRUCTION ACTIVITY [In millions of dollars] Private Public Period Total Total d N f r e a e n o r s t n m i i - a - l Total In tr d ia u B l s u - sine m C ss e o r m cia - l P u u ti b li l t i y c O n d r t t e o e i h a s n n e i l - - - r Total M tar il y i- H w ig a h y - S w a e a w n t d e e r r Other 1953 37,019 25,783 13,777 8,495 2,229 1,791 4,475 3,511 11,236 1,290 3,015 883 6,048 1954 39,234 27,556 15,379 8,403 2,030 2,212 4,161 3,774 11,678 1,003 3,680 982 6,013 1955 44,164 32,440 18,705 9,980 2,399 3,218 4,363 3,755 11,724 1,287 3,861 ,085 5,491 1956 45,815 33,067 17,677 11,608 3,084 3,631 4,893 3,782 12,748 1,360 4,431 ,275 5,682 1957 47,845 33,766 17,019 12,535 3,557 3,564 5,414 4,212 14,079 1,287 4,954 ,344 6,494 1958 48,950 33,493 18,047 11,058 2,382 3,589 5,087 4,388 15,457 1,402 5,545 ,387 7,123 19591 56,555 40,344 24,962 11,044 2,106 3,930 5,008 4,338 16,211 1,488 5,870 ,467 7,386 1960 55,556 39,603 22,546 12,354 2,851 4,180 5,323 4,703 15,953 1,386 5,464 ,487 7,616 1961 57,399 40,365 22,499 12,811 2,759 4,663 5,389 5,055 17,034 1,368 5,818 ,581 8,267 1961—Aug.. 57,983 41,281 23,306 12,704 2,588 4,646 5,470 5,271 16,702 1,153 5,762 ,560 8,227 Sept.. 58,910 41,709 23,782 12,750 2,610 4,718 5>22 5,177 17,201 1,404 5,960 ,575 8,262 Oct... 58,905 41,767 24,026 12,693 2,608 4,681 5,404 5,048 17,138 793 6,340 ,589 8,416 Nov.. 61,037 42,044 24,504 12,542 2,554 4,608 5,380 4,998 18,993 1,760 7,099 ,586 8,548 Dec. 58,910 41,881 24,440 12,515 2,537 4,641 5,337 4,926 17,029 982 6,235 ,590 8,222 1962—Jan... 59,019 41,077 23,187 12,875 2,590 4,928 5,357 5,015 17,942 791 7,250 ,636 8,265 Feb.. 56,811 39,909 22,245 12,622 2,592 4,756 5,274 5,042 16,902 1,248 5,414 ,666 8,574 Mar.. 57,861 40,553 22,507 12,897 2,653 4,795 5,449 5,149 17,308 1,409 5,771 ,715 8.413 Apr.. 58,315 41,747 23,484 12,973 2,792 4,793 5,388 5,290 16,568 1,442 5,057 ,775 8,294 May. 60,748 43,472 25,018 13,119 2,886 4,752 5,481 5,335 17,276 1,349 5,830 ,805 8,292 June. 62,678 44,842 26,118 13,354 2,950 4,865 5,539 5,370 17,836 1.549 5,989 ,807 8,491 July P. 62,235 44,775 25,823 13,552 2,962 5,110 5,480 5,400 17,460 1^453 5,876 ,802 8,329 Aug.? 62,239 44,437 25,269 13,746 2,936 5,273 5,537 5,422 17,802 ,770 1 Beginning with 1959, includes data for Alaska and Hawaii. Beginning with 1959, figures are Census Bureau estimates. Data before NOTE.—Monthly data are at seasonally adjusted annual rates. 1959 are joint estimates of the Depts. of Commerce and Labor. NEW HOUSING STARTS [In thousands of units] Annuail rate, By area 1 By type of ownership Government- Period (private only) Total Non- Private underwritten Total N fa o rm n- p M o e li t t r a o n - p m o e li t t r a o n - Total fam 1- ily fam 2- ily M fam ul i t l i y - Public Total FHA VA 1953 1,104 804 300 1.068 933 42 94 36 409 252 157 1954 1 220 897 324 I 202 1 077 34 90 19 583 276 307 1955 1,329 976 353 1,310 1,190 33 87 19 670 277 393 1956 1,118 780 338 1,094 981 31 82 24 465 195 271 1957 1 042 700 342 993 840 33 120 49 322 193 128 1958 1,209 827 382 ,142 933 39 170 68 439 337 102 1959 1,379 946 432 ,343 1,079 49 215 36 458 349 109 1959 1 554 1 077 477 517 1 234 56 227 37 458 349 109 I960 1,296 889 407 ,252 995 44 214 44 336 261 75 1961 1,355 938 418 304 966 44 294 52 328 244 83 1961— July 1.343 1,318 129 88 41 125 96 4 25 3 29 21 7 Aue 1,326 1,301 130 88 42 127 95 3 29 3 34 26 8 Sept 1,383 1,365 128 91 37 122 91 4 28 6 28 21 7 Oct. 1,434 1,404 129 88 41 124 92 4 27 5 33 23 9 Nov 1,351 1,328 106 72 34 103 74 3 25 3 30 23 7 Dec 1,297 1,257 87 63 24 82 54 3 25 4 23 17 6 1962—Jan [,273 1,247 83 60 23 81 54 3 23 2 23 18 4 Feb 1,152 1,134 78 56 22 76 54 3 20 20 15 5 Mar 1,431 1,407 118 84 34 115 80 5 31 3 27 21 6 Apr ,542 1,521 152 111 41 147 101 5 41 5 33 25 8 May 1,579 1,566 156 112 44 154 107 5 42 2 34 26 8 June .... V1,415 ^1,389 96 43 97 4 35 31 24 7 July V1,407 Pi,389 95 38 33 25 7 1 Beginning with 1959, based on revised definition of metropolitan areas. Data from Federal Housing Administration and Veterans Administration NOTE.—Beginning with 1959, Census Bureau series includes both represent units started, based on field office reports of first compliance farm and nonfarm series developed initially by the Bureau of Labor inspections. Statistics, for which annual totals are given including overlap for 1959. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1224 EMPLOYMENT LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT [In thousands of persons unless otherwise indicated] Civilian labor force Unemploy- Total non- Total Employed1 Not in the m ra e t n e t Period i p n o st p it u u l t a i t o i n o a n l l f a o b rc o e r Unem- labor force (per cent) Total In nonagri- In ployed S.A. 2 Total in c d u u lt s u t r r a ie l s agriculture 1955 117,388 68,896 65,848 62,944 56,225 6,718 2,904 48,492 4.4 1956 118,734 70,387 67,530 64,708 58,135 6,572 2,822 48,348 4.2 1957 120,445 70,746 67,946 65,011 58,789 6,222 2,936 49,699 4.3 1958 121,950 71,284 68,647 63,966 58,122 5,844 4,681 50,666 6.8 1959 123,366 71,946 69,394 65,581 59,745 5,836 3,813 51,420 5.5 1960 3 125 368 73,126 70 612 66,681 60,958 5,723 3,931 52,242 5.6 1961 127,852 74,175 71,603 66,796 61,333 5,463 4,806 53,677 6.7 1961—Aug 128,183 75,610 73,081 68,539 62,215 6,325 4,542 52,573 6.8 Sept 128,372 73,670 71,123 67,038 61,372 5,666 4,085 54,701 6.8 Oct 128,571 74,345 71,759 67,824 61,860 5,964 3,934 54,226 6.7 Nov 128,756 74,096 71,339 67,349 62,149 5,199 3,990 54,659 6.1 Dec 128,941 73,372 70,559 66,467 62,049 4,418 4,091 55,570 6.0 1962 Jan 129,118 72,564 69,721 65,058 60,641 4,417 4,663 56,554 5.8 Feb 129,290 73,218 70,332 65,789 61,211 4,578 4,543 56,072 5.6 Mar 129,471 73,582 70,697 66,316 61,533 4,782 4,382 55,889 5.5 Apr 129,587 73,654 70,769 66,824 61,863 4,961 3,946 55,933 5.5 May 129,752 74,797 71,922 68,203 62,775 5,428 3,719 54,956 5.4 June 129,930 76,857 74,001 69,539 63,249 6,290 4,463 53,072 5.5 July 130,183 76,437 73,582 69,564 63,500 6,064 4,018 53,746 5.3 Aug 130,359 76,554 73,695 69,762 63,993 5,770 3,932 53,805 5.8 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Information relating to persons 14 years of age and over is 2 Per cent of civilian labor force. obtained on a sample basis. Monthly data relate to the calendar week 3 Inclusion of figures for Alaska and Hawaii beginning with 1960 that contains the 12th day; annual data are averages of monthly figures. increased population by about 500,000 and total labor force by about Bureau of Labor Statistics estimates. 300,000. Most of the increase was in nonagricultural industries. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION [In thousands of persons] Period Total M t a u n r u in f g ac- Mining c C o o n t n i s o t t r r n a u c c t - Tra t p i n o u s n b p l o i & c rta- Trade Finance Service G m ov e e n r t n utilities 1955 50,675 16,882 792 2,802 4,141 10,535 2,335 6,274 6,914 1956 52,408 17,243 822 2,999 4,244 10,858 2,429 6,536 7,277 1957 52,904 17,174 828 2,923 4,241 10,886 2,477 6,749 7,626 1958 51,423 15,945 751 2.778 3,976 10,750 2,519 6,811 7,893 1959 i 53,380 16,667 731 2,955 4,010 11,125 2,597 7,105 8,190 1960 54,347 16,762 709 2,882 4,017 11,412 2,684 7,361 8,520 1961 54,077 16,267 666 2,760 3,923 11,368 2,748 7,516 8,828 SEASONALLY ADJUSTED 1961—Aug 54,333 16,381 665 2,770 3,939 11,410 2,757 7.546 8,865 Sept 54,304 16,323 666 2,754 3,939 11,363 2,756 7,567 8,936 Oct 54.385 16,361 661 2.758 3,929 11,365 2,764 7,580 8,967 Nov 54,525 16,466 665 2,719 3,927 11,374 2,771 7,611 8,992 Dec 54,492 16,513 654 2,699 3,911 11,366 2,770 7,642 8,937 1962—Jan 54,434 16,456 653 2,594 3,906 11,384 2,772 7,640 9,029 Feb 54,773 16,572 653 2,694 3,914 11,447 2,774 7,675 9,044 Mar 54,901 16,682 654 2,648 3,927 11,460 2.776 7.681 9,073 Apr 55,260 16,848 656 2,734 3,935 11,546 2,778 7,675 9,088 May 55.403 16,891 659 2,716 3,936 11,596 2,786 7,692 9.127 June 55,535 16,923 652 2,671 3,934 11,621 2,788 7,749 9,197 JulyP 55,649 16,919 649 2,749 3,912 11,645 2,792 7,784 9,199 Aug.p 55,565 16,772 647 2,748 3,927 11,643 2,796 7,813 9,219 NOT SEASONALLY ADJUSTED 1961—Aug 54,538 16,531 677 3,075 3,971 11,342 2,801 7,606 8,535 Sept 54,978 16,646 676 3,021 3,971 11,378 2,770 7,612 8,904 Oct 55,065 16,607 668 2,981 3,953 11,450 2,758 7,618 9,030 Nov 55,129 16,658 667 2,825 3,943 11,611 2,757 7,596 9,072 Dec 55,503 16,556 657 2,575 3,927 12,181 2,756 7,573 9,278 1962—Jan 53,737 16,370 647 2,298 3,863 11,270 2,747 7,510 9,032 Feb 53.823 16,452 642 2,282 3,863 11,188 2,749 7,545 9,102 Mar 54,056 16,525 640 2,328 3,880 11,223 2,754 7,573 9,133 Apr 54,849 16,636 647 2,589 3,904 11,470 2,770 7,690 9,143 May 55,209 16,682 657 2,749 3,924 11,476 2,780 7,769 9,172 June 55,777 16,870 661 2,839 3,965 11.582 2,808 7,881 9,171 July? 55,520 16,788 649 2,994 3,947 11,533 2,839 7,885 8,885 Aug.** 55,744 16,913 659 3,050 3,958 11,574 2,841 7,875 8,874 * Data includes Alaska and Hawaii beginning with 1959. ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the NOTE.—Bureau of Labor Statistics; data include all full- and part- armed forces are excluded. time employees who worked during, or received pay for, the pay period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EMPLOYMENT AND EARNINGS 1225 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES [In thousands of persons] Seasonally adjusted Without seasonal adjustment Industry group 1961 1962 1961 1962 Aug. June July" Aug." Aug. June July" Aug." Total 12,156 12,581 12,561 12,403 12,274 12,516 12,410 12,514 Durable goods 6 699 7 035 7 034 6 923 6 641 7 025 6,935 6,858 Ordnance and accessories 95 97 99 102 94 97 98 101 Lumber and wood products 538 546 543 540 568 571 568 570 Furniture and fixtures 309 321 322 320 311 317 315 323 Stone, clay, and glass products 464 467 468 469 477 476 All 482 Primary metal industries 944 934 921 906 940 936 904 902 Fabricated metal products 838 871 870 857 831 868 854 850 Machinery except electrical 967 1.027 1,032 1,039 950 1,035 1,023 1,020 Electrical machinery 972 1 058 1 058 1 050 968 1 039 1 032 1 046 Transportation equipment 1 039 1 161 1 165 1 090 961 1,137 1,122 1,008 Instruments and related products 225 231 231 230 223 229 226 228 Miscellaneous manufacturing industries 308 322 325 320 317 322 316 330 Nondurable goods 5 457 5 546 5 527 5 480 5,633 5,491 5,475 5,656 Food and kindred products 1.182 1,180 1.179 1,168 1,318 1,176 1,221 1,302 Tobacco manufactures 80 76 77 83 89 65 65 92 Textile-mill products 795 803 799 785 802 803 787 792 Apparel and other finished textiles 1.081 1,120 1,111 1,098 1,100 1.093 1,072 1.118 Paper and allied products 472 482 481 480 475 483 476 483 Printing, publishing and allied industries 596 600 599 593 594 597 592 591 Chemicals and allied products 510 523 528 524 509 520 521 523 Products of petroleum and coal 134 128 127 127 135 130 129 128 287 312 307 302 284 304 296 299 Leather and leather products 320 322 319 320 327 321 317 327 NOTE.—Bureau of Labor Statistics; data cover production and related for, the pay period ending nearest the 15th of the month. workers only (full- and part-time) who worked during, or received pay HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked Average weekly earnings Average hourly earnings (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1961 1962 1961 1962 1961 1962 Aug. June July " Aug." Aug. June July" Aug." Aug. June Aug." Total 40.0 40.5 40.4 40.2 92.86 97.27 96.56 95.75 2.31 2.39 2.39 2.37 Durable goods 40.5 41.0 41.0 40.8 100.44 105.47 104.04 103.63 2.48 2.56 2.55 2.54 Ordnance and accessories 41.1 41.5 41.0 41.1 112.87 116.88 115.46 114.90 2.78 2.83 2.83 2.83 Lumber and wood products 39.6 39.6 40.4 40.2 79.19 80.40 80.40 81.19 1.97 1.99 1.99 1.99 Furniture and fixtures 40.1 41.3 40.7 40.3 78.12 79.95 78.38 80.15 1.91 1.95 1.94 1.95 Stone, clay, and glass products 41.0 41.0 41.4 41.2 98.18 100.43 101.09 101.57 2.36 2.42 2.43 2.43 Primary metal industries 40.2 39.6 39.6 39.5 116.11 119.10 116.23 115.64 2.91 2.97 2.95 2.95 Fabricated metal products 40.8 41.4 41.2 40.9 102.34 106.75 104.96 105.47 2.49 2.56 2.56 2.56 Machinery except electrical 41.1 41.8 41.7 41.9 106.75 114.09 112.32 112.32 2.61 2.71 2.70 2.70 Electrical machinery 40.4 40.7 40.8 40.6 94.94 98.16 96.96 97.44 2.35 2.40 2.40 2.40 Transportation equipment 40.6 41.9 42.0 41.2 112.96 121.09 121.22 118.73 2.81 2.89 2.90 2.91 Instruments and related products 40.9 41.1 40.8 41.1 97.75 100.94 99.55 100.70 2.39 2.45 2.44 2.45 Miscellaneous manufacturing industries. 39.4 39.9 39.9 40.2 74.47 78.60 77.62 78.79 1.89 1.97 1.97 1.96 Nondurable goods 39.3 40.0 39.8 39.5 83.58 87.02 86.80 86.40 2.10 2.17 2.17 2.16 Food and kindred products 40.9 41.1 41.5 41.0 88.60 92.70 93.86 91.72 2.14 2.25 2.24 2.21 Tobacco manufactures 39.6 37.9 37.1 37.5 68.17 76.03 73.28 68.40 1.70 1.98 1.97 1.80 Textile-mill products 40.2 41.0 40.7 40.5 66.02 69.46 68.21 68.54 1.63 1.69 1.68 1.68 Apparel and other finished textiles 35.6 36.8 36.3 36.3 59.86 61.09 60.59 62.12 1.64 1.66 1.66 1.67 Paper and allied products 42.6 42.8 42.6 42.2 101.05 102.96 103.33 103.09 2.35 2.40 2.42 2.42 Printing, publishing and allied industries 38.2 38.4 38.3 38.1 105.33 107.62 107.34 107.34 2.75 2.81 2.81 2.81 Chemicals and allied products 41.6 41.6 41.5 41.6 107.49 111.19 110.81 109.98 2.59 2.66 2.67 2.65 Products of petroleum and coal 41.0 41.7 41.7 41.3 122.59 127.68 129.44 123.49 2.99 3.04 3.06 2.99 Rubber products 40.2 41.5 40.5 40.8 97.85 104.58 101.84 101.76 2.41 2.49 2.49 2.47 Leather and leather products 37.0 38.0 37.5 37.2 62.79 65.88 65.66 65.39 1.67 1.72 1.71 1.73 NOTE.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1226 DEPARTMENT STORES SALES AND STOCKS, BY DISTRICT [1957-59= 100] Federal Reserve district United Period States 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 an t t - 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 - SALES 1954 80 84 76 86 83 81 72 87 83 80 80 75 74 1955 88 91 80 93 92 89 81 95 90 85 88 84 82 1956 94 96 89 97 96 95 90 99 96 93 93 92 91 1957 96 96 95 98 98 97 94 100 97 97 94 96 93 1958 99 99 100 99 98 98 99 97 98 99 99 99 98 1959 105 104 105 104 104 105 107 104 104 104 107 105 109 I960 106 106 108 104 108 104 107 104 103 106 108 100 110 1961 109 112 112 107 110 107 109 105 103 108 111 102 115 SEASONALLY ADJUSTED 1961—July 110 112 '111 '106 112 108 '110 107 104 107 112 '101 115 Aug 110 112 114 107 111 108 108 108 104 107 111 106 113 SeDt 110 111 110 105 110 107 112 107 106 108 115 102 118 Oct 109 116 113 108 109 107 108 105 103 106 108 101 115 Nov 112 119 115 111 115 111 111 108 107 109 112 104 118 Dec • ... 113 116 116 111 114 111 112 108 106 108 112 106 120 1962—Jan 109 113 112 110 112 108 110 104 98 104 105 101 119 Feb ... . 110 101 112 104 109 110 118 103 108 103 114 110 120 Mar 117 122 119 110 118 114 126 112 111 109 118 106 123 Apr 113 113 119 111 112 108 108 108 '107 116 115 104 118 M^ay . • • 114 110 113 115 117 114 117 112 '113 108 116 108 121 June 111 112 108 107 110 109 '115 108 105 '106 111 107 123 JUly 115 113 109 114 118 111 112 2116 112 123 NOT SEASONALLY ADJUSTED 1961 July 92 85 85 '82 94 91 '98 88 87 85 100 '92 '105 Aug 100 92 91 88 102 96 101 98 99 103 111 106 109 Sept 109 112 110 105 109 107 105 108 106 116 117 98 116 Oct 112 121 121 113 110 114 110 109 108 115 111 103 112 Nov • 134 146 146 145 140 133 129 129 '128 125 128 120 134 Dec 204 224 213 202 210 206 201 191 185 190 195 184 217 1962 Jan 83 86 90 80 84 76 85 77 75 74 79 79 90 Feb • 82 72 87 75 81 77 91 75 78 78 82 80 95 Mar 95 94 99 95 93 92 105 93 90 87 97 91 99 Apr 112 115 113 112 114 112 115 108 '105 112 111 103 116 May 110 108 109 110 111 109 111 111 '113 103 113 104 110 June .... 105 108 105 102 102 101 '104 103 97 '106 105 96 117 July 87 86 84 95 294 106 92 294 88 102 112 STOCKS 1954 80 82 75 82 90 79 77 84 86 83 82 70 76 1955 85 88 78 87 86 90 86 89 93 88 90 76 81 1956 94 96 89 95 93 99 98 97 102 98 99 84 92 1957 99 97 97 99 102 100 102 100 103 102 100 99 96 1958 98 99 99 98 97 96 97 97 98 97 98 98 97 1959 103 104 104 103 101 104 101 103 99 101 103 104 107 I960 109 108 110 105 113 108 107 108 103 108 109 106 114 1961 110 112 110 105 112 109 108 109 104 108 111 104 116 SEASONALLY ADJUSTED 1961 July .. ... ... 110 111 '109 105 110 108 '106 111 '108 109 113 '101 '115 Aus 110 111 110 105 111 107 109 110 '112 107 113 103 116 Sept 111 113 111 107 112 108 110 114 '113 108 112 104 116 Oct 112 113 111 107 114 110 110 113 '114 109 110 105 117 Nov '113 114 113 109 113 113 110 113 '116 108 110 106 118 Dec 113 116 112 109 115 113 109 113 '119 110 111 106 118 1962—Jan 114 114 112 110 114 115 112 114 '112 111 111 111 121 Feb 115 114 110 114 116 111 114 '114 113 113 113 122 Mar 116 117 113 112 114 117 114 116 '115 113 114 114 124 Apr 115 116 112 111 115 117 114 113 '117 114 114 111 124 M^ay '117 115 113 112 115 115 114 116 '121 112 115 114 127 June 118 115 113 112 117 118 115 121 '117 113 114 115 128 July *118 118 113 113 116 118 120 122 117 109 2115 2127 NOT SEASONALLY ADJUSTED 1961—July 104 102 '98 '95 106 101 '98 109 '104 106 107 '97 '111 Auc 109 109 108 102 110 108 108 109 '113 107 111 105 116 Sept .. ........ 118 121 116 113 119 116 116 121 '121 114 116 111 122 Oct '126 131 126 124 130 125 123 123 '130 123 123 118 130 Nov '130 135 131 127 133 129 129 126 '131 126 127 121 134 Dec 103 108 105 100 105 104 98 101 '106 104 103 98 108 1962—Jan '102 100 102 96 98 100 101 102 '100 99 101 96 109 Feb 107 106 106 103 106 107 108 106 '106 106 107 106 115 Mar 116 115 114 112 114 118 116 116 '116 111 114 115 125 Apr 118 117 116 116 116 120 117 118 '121 112 116 115 125 May '117 116 115 114 115 117 113 119 '120 111 114 112 125 June 112 109 106 106 111 112 107 117 '111 104 109 108 123 JUly 2112 108 102 103 112 111 110 119 112 106 NOTE.—Based on retail value figures; sales are average per trading day; For description of series and for back data beginning with 1947 see stocks are as of end of month or averages of monthly data. July 1962 BULL., p. 803. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPARTMENT STORES; FOREIGN TRADE 1227 DEPARTMENT STORE MERCHANDISING DATA Amounts (in millions of dollars) Ratios to sales Period Out- Out- Stocks Sales Stocks st i a n n g d- ce R i e p - ts o N rd e e w rs Stocks st i a n n g d- o p u lu ts s , ce R i e p - ts orders orders orders 1953 406 | .163 421 408 401 3.0 J-1 4.1 1.0 1954 409 1,140 388 410 412 3.0 L.O 4.0 n 1955 437 1,195 446 444 449 2.9 4.0 .0 1 19 9 5 5 7 6 4 4 5 5 9 4 1 [, , 3 2 3 8 8 6 4 4 6 7 1 0 4 4 6 5 1 9 4 4 5 5 8 8 3 3 . . 1 0 4 4 . . 1 1 .0 o 1958 462 1,323 437 462 464 3.0 > 4.1 .0 1959 488 1,391 510 495 498 3.0 4.1 i I960 494 1,474 518 496 493 3.1 4.3 L.O 1961 503 1,485 530 508 512 3.1 4.3 1.0 1961—July '390 1,358 '675 '358 Ml 2 3.5 1.7 5.2 q Aug 466 1,470 650 560 521 3.2 1.4 4.5 ? Sept 475 1,576 654 581 585 3.3 1.4 4.7 .2 Oct 529 1,708 645 661 652 3.2 1.2 4.4 ? Nov. 630 1,776 555 698 608 2.8 .9 3.7 1 Dec 965 1,406 391 595 431 1.5 .4 1.9 .6 1962—Jan 408 1,408 476 410 495 3.5 1.2 4.6 1.0 Feb 360 1,466 532 418 474 4.1 1.5 5.6 ? Mar . 472 1,576 498 582 548 3.3 l.l 4.4 1.2 Apr 502 1,589 457 515 474 3.2 .9 4.1 1.0 May . . 507 1,571 499 489 531 3.1 ;.() 4.1 1.0 June .... '472 r1 509 '679 '410 '590 3.2 * 4.6 .9 JulyP 406 1,485 710 382 413 3.7 7 5.4 .9 NOTE.—Sales, stocks, and outstanding orders: actual dollar amounts Receipts and new orders: monthly totals derived from reported figures reported by a selected group of department stores whose 1961 sales on sales, stocks, and outstanding orders. were about 45 per cent of estimated total department store sales. Sales For further description see Oct. 1952 BULL., pp. 1098-1102. Back are total for month, stocks and outstanding orders are as of end of month. figures may be obtained upon request. MERCHANDISE EXPORTS AND IMPORTS [In millions of dollars] Exports Imports Period Total i military E -a x i c d l u s d h in ip g ments 2 1960 1961 1962 1960 1961 1962 1960 1961 1962 1,561 1,644 1,642 1,484 1 536 1,592 1.174 J.MO 1 373 Feb 1,579 1,671 1,775 1,500 1,606 1,712 ,329 ,068 1,224 Mar 1,753 1,933 1,845 1,636 1,888 1,783 ,410 1,255 1,386 1,817 1,707 1,881 1,703 1,648 1,799 ,294 ,063 1,333 May 1,814 1,749 1,973 1,720 1,677 1,892 ,289 ,223 1,454 1,742 1,699 1,970 1,642 1,644 1,894 ,332 ,232 1,350 July 1,702 1,637 1,709 1,632 1,558 1,622 ,183 ,285 1,337 Aug. .... . . .. 1 619 1 669 1 556 1 598 259 252 Sept. 1,612 1,631 1,559 1,557 1.193 ,197 Oct 1,746 1,890 1,692 1,817 ,184 ,364 Nov 1,799 1 818 1 726 1 759 197 w> Dec 1,806 1,827 1,752 1,777 1,175 l|295 Jan -July 11,968 12,040 12,795 11,317 11,557 12,294 ),011 8,276 9,457 1 Exports of domestic and foreign merchandise. 3 General imports including imports for immediate consumption plus 2 Excludes Dept. of Defense shipments of grant-aid military equipment entries into bonded warehouses. and supplies under Mutual Security Program. NOTE.—Bureau of the Census data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1228 PRICES CONSUMER PRICES [1957-59= 100] Housing Read- Other Period it A em ll s Food Total Rent t e r G a l i n e c a i c d t s - y p S l f a e e u o u n t e l r m i d l o d s - H n i f o n u i u s g r h s « - e - - H o h t p o i o e o u l r n s d a e - - p A a p re - l T p t o r i a r o n t n a s - - M c ic a e a r d e l - s c P o a e n r r a e - l re t a i c i n n o r g e d n a- g s a i o e c n r o e v d d s - s 1929 ,...4 59 7 55.6 85 4 56 6 56 2 1933 45.1 35.3 60.8 42.7 42.8 1941 ; 51.3 44.2 61.4 64.3 88.3 45.2 54 4 53.3 51.9 51.2 50.6 47.6 57.3 58.2 1945 62.7 58.4 67.5 66.1 86.4 53.6 73.9 62.9 71.2 55.4 57.5 63.6 75.0 67.3 1953 93.2 95.6 92.3 90.3 91.4 90.9 103.7 87.9 97.8 92.1 83.9 88.1 93.3 92.8 1954 93.6 95.4 93.4 93.5 92.5 90.6 101.9 89.5 97.3 90.8 86.6 88.5 92.4 94.3 1955 1 93.3 94.0 94.1 94.8 94.9 91.9 100.0 90.8 96.7 89.7 88.6 90.0 92.1 94.3 1956 94.7 94.7 95.5 96.5 95.9 95.9 98 9 93.7 98.4 91.3 91.8 93.7 93.4 95.8 1957 .... 98.0 97.8 98.5 98.3 96.9 100.8 100.5 97 3 99 7 96.5 95.5 97.1 96 9 98.5 1958 100 7 101 9 100.2 100.1 100.3 99 0 99 8 100.2 99 8 99.7 100.1 100.4 100.8 99.8 1959 . 101 5 100 3 101 3 101 6 102 8 100 2 99 8 102 4 100 7 103 8 104 4 102 4 102 4 101 8 1960 103.1 101.4 103.1 103.1 107.0 99.5 100.1 104.8 102.1 103.8 108.1 104.1 104.9 103.8 1961 104.2 102.6 103.9 104.2 107.9 101.6 99.5 105.9 102.8 105.0 111.3 104.6 107.2 104.6 1961—July 104.4 103.4 103.8 104.4 107.7 99.7 99.5 106.1 102.5 105.3 111.6 104.8 107.2 104.9 104.3 102.7 103.8 104.4 107.7 100.4 99.1 105.9 102 5 106.0 111.7 104.8 107.4 104.9 Sept.. 104.6 102.6 104.0 104.7 107.8 100 7 99.7 105.9 103.6 106.0 111.9 104.8 107.9 105 0 Oct i.... 104 6 102 5 104.1 104.8 107.8 101.5 99.5 106.2 103.9 106.7 112.3 104.6 108.3 105.0 Nov 104 6 101.9 104 2 104.9 107.8 102.1 99.3 106.4 103 7 106 8 112.4 104 8 108.1 105.0 Dec 104.5 102.0 104.4 105.0 107.8 102.8 99.2 106.4 103.5 106.0 112.5 105.2 108.2 104.9 1962—Jan 104.5 102.5 104.4 105.1 107.8 103.9 98.7 106.5 101.8 106.0 112.6 105.6 108.5 104.9 Feb 104 8 103.1 104.6 105.2 107.9 104.0 99.3 106 9 102.0 106.0 113.0 105.8 109.1 105.0 Mar 105 0 103.2 104 6 105.3 107.9 103 6 99.5 107 1 102.7 105.9 113.6 105.9 109.2 105.1 Apr 105.2 103.4 104.6 105.4 107.8 102.4 99.3 107.1 102.7 107.2 113.9 106.3 109.4 105.1 May 105.2 103.2 104.7 105.5 107.7 100.1 99.0 107.4 102.7 107.3 114.1 106.4 109.5 105.1 105.3 103.5 104.8 105.6 107.7 99 4 99.1 107.4 102.8 107.3 114.4 106.1 109.2 105.2 July . . 105.5 103.8 104.8 105.7 108.0 99.7 99.0 107.5 102.9 106.8 114.6 106.8 110.0 105.6 NOTE.—Bureau of Labor Statistics index for city wage-earner and clerical-worker families. WHOLESALE PRICES: SUMMARY [1957-59= 100] Other commodities Period m c t A o o ie m d l s l i - - p F u r a c o r t m d s - f P e o s r o s o e d c d s - Total t T e il e t e c x s . - , H e i t d c e . s, F e u tc e . l, C ic e h t a e c l m . s, - R b e u t e c r b . , - L b e u e t m c r . , - P e a t p c e . r, Metals c M hi a n - - F t e u u t r r c e n . , i- N t m m a o l i e l n n i - c - - b T ac o c - o n c M e e o l i l s u a - s erals 1953 92 7 105.9 97.0 90. 102.8 94 1 95.9 96.1 86.3 99.4 83.6 82.2 92.9 86.9 89.8 105.4 1954 92.9 104.4 97.6 90.4 100.6 89.9 94.6 97.3 87.6 97.6 88.8 84.3 83.2 93.9 88.8 93.8 110.5 1955 93.2 97 9 94.3 92.4 100.7 89.5 94.5 96.9 99.2 102.3 91.1 90.0 85.8 94.3 91.3 94.6 99.1 1956 96 2 96.6 94 3 96.5 100.7 94.8 97.4 97.5 100.6 103 8 97.2 97 8 92.1 96.9 95.2 95.1 98.1 1957 99 0 99.2 97.9 99.2 100.8 94.9 102.7 99.6 100.2 98.5 99.0 99 7 97.7 99.4 98.9 98.0 96.6 1958. 100 4 103 6 102.9 99.5 98 9 96.0 98.7 100.4 100.1 97 4 100.1 99.1 100.1 100.2 99.9 99 7 101.5 1959 100 6 97.2 99.2 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.2 100.4 101.2 102.2 101.9 1960 100 7 96.9 99.9 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.4 100.1 101.4 102.5 99.3 1961 100 3 96.0 100.6 100.8 99.7 106.2 100.7 99.1 96. 95.9 98.8 100.7 102.3 99.5 101.8 103.2 103.9 1961—July 99.9 95.1 99.7 100.6 99.2 106.1 100.4 99.0 95.9 96.9 96.6 100.9 102.2 99.5 101.7 103.1 103.0 Aug 100 1 96.7 100.2 100.6 99.5 108 0 100.2 98 6 96.2 95.9 96.5 101.2 102.0 99.3 101.8 103.3 103.0 Sept 100 0 95 2 100.2 100,7 99 7 108 4 99.6 98.3 96.3 95.6 98.9 101.3 102.0 99 4 101.8; 103.8 103.0 Oct 100 0 95 1 100.4 100 5 100.1 108 9 99.0 98.2 96.2 94.8 99.6 100.9 102 1 99 4 102.1' 103.8 100.7 Nov 100 0 95.6 100.1 100.7 100.2 108.6 99.8 98 1 95.5 94.8 99.2 100.4 102.2 99 5 101.9 103.8 105.1 Dec 100.4 95.9 100.9 100.9 100.3 108.2 100.6 98.1 94.5 94.6 99.6 100.6 102.3 99.3 101.6 1O3.8| 106.3 1962—Jan 100.8 97 9 101.8 101.0 100.3 108.2 101.0 98 4 94.3 94.7 99 9 100.7 102.3 99.3 101.9 103.8 106.7 Feb 100 7 98 2 101.7 100.8 100.4 107.7 100.4 98 1 93.3 95 2 99 9 100.6 102.3 99.1 102.1 103.8 105 6 Mar 100 7 98.4| 101.4100.8 100.5 107.4 98.9 98.0 93.8 96 2 101.0 100.4 102.3 99.0 102.2 104.0 105.6 Apr 100 4 96.9 100.0 100.9 100.5 106.9 100.2 97.9 92.9 96.8 101.3 100.3 102.3 98 9 102.4 104.0 106.0 May 100.2 96.2 99.5 100.9 100.7 107.2 99.7 97.7 93.2 97. 100.8 100.2 102.3 99.0 102.1 105.1 106.0 June 100.0 95.3 r99.7'100.7 100.8 '108.0 99.6 97.6 93.0 97.3 100.5 r99.8 102.2 r98.9 101.9 105.1 105.4 July 100.4 96.5 100.7 100.8 100.9 107.4 100.1 97.2 92.8 97.4 100.3 99.8 102.2 98.8 101.6, 105.0 107.5 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICES 1229 WHOLESALE PRICES: DETAIL [1957-59= 100] 1961 1962 1961 1962 Group Group July May June July July May June July Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 98.3 107.5 98.3 91.7 Woodpulp 95.0 93.6 93.6 93.6 Grains 96.9 101.0 99.9 99.1 Wastepaper 82.7 96.2 96.4 96.8 Livestock and poultry 87.7 91.4 91.6 95.8 Paper 102.4 103.1 103.1 103.1 Plant and animal fibers 95.5 98.9 99.6 99.3 Paperboard 90.3 94.0 94.0 94.1 Fluid milk 103.3 96.7 97.0 99.8 Converted paper and paperboard 95.4 102.1 101.6 101.1 Eggs 100.9 75.3 80.0 86.2 Building paper and board 100.8 97.7 95.5 96.3 Hay and seeds 106.6 107.6 106.3 105.3 Other farm products 92.9 93.4 92.5 92.5 Metals and Metal Products: Processed Foods: Iron and steel 100.6 99.2 98.9 98.9 Nonferrous metals 101.5 99.9 99.3 99.1 Cereal and bakery products 105.0 107.5 107.8 108.1 Metal containers 102.0 103.7 103.7 103.7 Meat, poultry, and fish 93.5 95.5 95.7 99.0 Hardware 104.0 104.1 104.2 103.7 Dairy products and ice cream 106.6 104.5 105.0 105.6 Plumbing equipment 103.5 103.8 '99.5 98.1 Canned and frozen fruits, and veg- Heating equipment 94.9 93.1 '92.9 92.9 etables 101.5 98.6 99.1 99.0 Fabricated structural metal products. 98.9 98.3 '98.3 98.3 Sugar and confectionery 100.1 100.8 101.0 100.9 Fabricated nonstructural metal prod- Packaged beverage materials 84.2 82.6 82.6 82.6 ucts 102.5 104.1 103.9 103.9 Animal fats and oils 85.4 87.7 '85.7 85.8 Crude vegetable oils 100.0 87.1 '80.8 78.2 Machinery and Motive Products: Refined vegetable oils 103.6 89.9 88.3 85.2 Vegetable oil and products 103.5 101.9 100.1 95.5 Agricultural machinery and equip 107.3 109.3 '109.5 109.5 Miscellaneous processed foods 106.5 100.7 101.8 101.0 Construction machinery and equip... 107.5 107.7 107.7 107.7 Metalworking machinery and equip... 106.5 109.5 109.7 109.4 Textile Products and Apparel: General purpose machinery and equipment 103.1 104.0 '103.6 103.6 Cotton products 99.4 102.1 102.0 101.9 Miscellaneous machinery 102.9 103.1 '103.2 103.4 Wool products 97.3 98.9 '99.1 99.2 Special industry machinery and equip- Man-made fiber textile products 92.6 94.5 94.6 94.7 ment (Jan. 1961 = 100) 100.5 101.8 101.8 101.9 Silk products 112.8 126.4 130.7 130.2 Electrical machinery and equip 100.0 98.9 '98.7 98.5 Apparel 100.8 101.4 101.5 101.7 Motor vehicles 100.8 100.1 100.1 100.1 Other textile products 119.1 119.5 123.8 121.4 Transportation equip., RR. rolling stock (Jan. 1961= 100) 100.0 100.5 100.5 100.5 Hides, Skins, Leather, and Products: Furniture and Other Household Dura- Hides and skins , 112.4 105.4 108.5 104.2 bles: Leather , 104.6 110.6 110.0 108.4 Footwear 106.9 108.7 108.7 108.7 Household furniture , 102.6 103.7 r103.9 104.1 Other leather products , 102.7 101.7 '104.9 104.8 Commercial furniture 101.6 102.2 102.2 102.4 Floor coverings 99.7 97.0 96.9 96.7 Fuels and Related Products, and Power: Household appliances 95.1 94.3 94.3 94.2 Television, radios, and phonographs. 95.9 92.3 '90.9 90.6 Coal 96.3 94.6 '94.6 95.3 Other household durable goods , 102.4 103.2 103.2 102.9 Coke 103.6 103.6 103.6 103.6 Gas fuels (Jan. 1958= 100) 115.6 116.6 113.8 119.7 Nonmetallic Mineral Products: Electric power (Jan. 1958= 100). 102.5 102.9 102.8 102.8 Crude petroleum and natural gasoline 98.0 98.2 98.2 98.2 Flat glass 96.2 98.0 98.0 98.0 Petroleum products, refined 99.3 97.9 98.1 98.0 Concrete ingredients 103.0 103.2 '103.2 103.2 Concrete products 102.5 102.6 102.6 102.8 Chemicals and Allied Products: Structural clay products 103.0 103.6 103.6 103.6 Gypsum products 102.9 105.0 105.0 105.0 Industrial chemicals 97.9 96.3 96.2 96.1 Prepared asphalt roofing 97.5 99.0 95.3 89.4 Prepared paint 103.7 103.8 103.8 103.8 Other nonmetallic minerals , 102.4 102.0 102.0 101.7 Paint materials 99.0 96.4 96.2 96.0 Drugs and Pharmaceuticals 98.9 97.0 97.0 95.1 Tobacco Products and Bottled Bev- Fats and oils, inedible 86.7 77.1 '73.4 73.5 erages: Mixed fertilizers 102.6 103.9 103.9 103.9 Fertilizer materials 104.2 103.6 103.6 101.0 Tobacco products 102.0 102.0 102.0 102.0 Other chemicals and products 99.5 99.4 99.4 99.4 Alcoholic beverages. 100.5 103.4 103.4 103.1 Nonalcoholic beverages. 112.6 116.7 116.7 116.7 Rubber and Products: Miscellaneous Products: Crude rubber 95.6 94.9 93.5 92.4 Tires and tubes 92.9 86.4 86.4 86.4 Toys, sporting goods, small arms... 100.8 100.5 100.5 100.5 Miscellaneous rubber products 99.3 99.4 99.4 99.4 Manufactured animal feeds 103.2 108.2 107.2 111.0 Notions and accessories 98.8 98.7 98.7 98.7 Lumber and Wood Products: Jewelry, watches, photo equipment.. 103.0 104.1 104.2 104.3 Other miscellaneous products 101.1 100.9 100.9 100.9 Lumber 95.9 97.5 97.6 98.0 Millwork 100.9 101.8 101.9 102.2 Plywood 98.9 92.7 93.3 92.8 NOTE.—Bureau of Labor Statistics index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1230 NATIONAL PRODUCT AND INCOME GROSS NATIONAL PRODUCT OR EXPENDITURE [In billions of dollars] 1961 1962 Item 1929 1933 1941 1950 1957 1958 1959 1960 1961 II III IV I II 104.4 56.0 125.8 284.6 442.8 444.5 482.7 503.4 518.7 513.1 522.3 538.6 545.0 552.0 Personal consumption expenditures 79.0 46.4 81.9 195.0 285.2 293.2 313.5 328.5 338.1 335.5 340.1 346.1 350.2 354.9 Durable goods 9.2 3.5 9.7 30.4 40.4 37.3 43.6 44.8 43.7 43.5 44.0 46.6 46.3 47.2 37.7 22.3 43.2 99.8 137.7 141.6 147.1 151.8 155.2 153.9 156.2 157.2 159.9 161.3 Services .. . 32.1 20.7 29.0 64.9 107.1 114.3 122.8 131.9 139.1 138.0 139.9 142.3 144.1 146.3 Gross private domestic investment 16.2 1.4 18.1 50.0 66.1 56.6 72.7 72.4 69.3 67.6 72.4 76.6 75.9 77.4 New construction. 8.7 1.4 6.6 24.2 36.1 35.5 40.2 40.7 41.6 41.0 42.6 43.2 41.6 44.5 Residential, nonfarm 3.6 .5 3.5 14.1 17.0 18.0 22.3 21.1 21.0 20.1 21.9 22.8 21.2 23.3 Other 5.1 1.0 3.1 10.1 19.0 17.4 17.9 19.7 20.5 20.8 20.7 20.4 20.5 21.2 Producers' durable equipment 5.9 1.6 6.9 18.9 28.5 23.1 25.9 27.6 25.5 24.6 25.8 27.4 27.6 28.9 Change in business inventories 1.7 -1.6 4.5 6.8 1.6 -2.0 6.6 4.1 2.1 2.1 4.0 6.0 6.7 4.0 Nonfarm only 1.8 -1.4 4.0 6.0 .8 -2.9 6.5 3.7 1.9 1.8 3.8 5.9 6.6 3.9 .8 .2 1.1 .6 4.9 1.2 -.8 2.9 4.0 4.0 2.8 3.8 3.7 3.7 Exports 7.0 2.4 6.0 13.1 26.2 22.7 22.9 26.4 27.3 26.4 26.9 28.3 28.2 29.0 Imports 6.3 2.3 4.8 12.5 21.3 21.5 23.6 23.5 23.3 22.4 24.1 24.5 24.5 25.3 Government purchases o! goods and services.. 8.5 8.0 24.8 39.0 86.5 93.5 97.2 99.7 107.4 106.0 106.9 112.1 115.2 116.0 Federal 1.3 2.0 16.9 19.3 49.7 52.6 53.6 53.2 57.0 56.6 56.5 59.5 61.9 62.1 National defense 1 13.8 14.3 44.4 44.8 46.2 45.7 49.0 49.0 48.4 50 8 53.0 53.2 Other I i<3 2.0 \ 3.2 5.2 5.7 8.3 7.9 8.1 8.7 8.5 8.7 9.2 9.6 9.5 Less' Government sales .1 .4 .5 .6 .6 .8 .6 .6 .6 .6 State and local 7.2 6.0 7.8 19.7 36.8 40.8 43.6 46.5 50.4 49.4 50.4 52.6 53.3 54.0 Gross national product in constant (1954) dollars 181.8 126.6 238.1 318.1 408.6 401.3 428.6 440.2 447.9 443.9 450.4 463.4 467.4 470.8 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally and Output (a supplement to the Survey of Current Business) and the adjusted totals at annual rates. For explanation of series see U.S. Income July 1962 Survey of Current Business. NATIONAL INCOME [In billions of dollars] 1961 1962 Item 1929 1933 1941 1950 1957 1958 1959 1960 1961 II III IV I II National income 87.8 40.2 104.7 241.9 366.9 367.4 400.5 415.5 427.8 424.3 431.3 444.0 448.9 Compensation of employees 51.1 29.5 64.8 154.2 255.5 257.1 278.5 293.7 302.2 300.2 304.5 309.9 315.2 321.7 Wages and salaries 50.4 29.0 62.1 146.4 238.5 239.8 258.5 271.3 278.8 276 9 257 0 286 1 289.9 295.9 Private .. . . . 45.5 23.9 51.9 124.1 198.4 196.6 213.1 222.9 227.0 225.8 228.8 232.5 235.0 240.1 Military .3 .3 1.9 5.0 9.6 9.8 9.9 9.9 10.2 10.0 10 0 10 8 11.2 11.2 Government civilian 4.6 4.9 8.3 17.3 30.5 33.5 35.4 38.5 41.6 41 2 42 2 42 8 43 7 44 6 Supplements to wages and salaries .7 .5 2.7 7.8 77.0 77.3 20.7 22.4 23.4 23.2 23.5 23.8 25.2 25.8 Employer contributions for social insurance .1 .1 2.0 4.0 7.8 8.0 9.7 11.4 12.0 11.9 12.1 12.2 13.3 13.4 Other labor income .6 .4 .7 3.8 9.1 9.4 10.4 11.0 11.4 11 3 11 4 11 6 12 0 12 3 Proprietors* income 14.8 5.6 17.4 37.5 44.5 46.1 46.5 46.2 47.8 47 2 48 1 49 5 49.1 49 5 Business and professional . • 8.8 3.2 10.9 23.5 32.7 32.5 35.1 34.2 34.8 34.5 35.1 36.0 36.2 36.8 Farm 6.0 2.4 6.5 14.0 11.8 13.5 11.4 12.0 13.1 12 7 13 1 13 6 12 9 12 8 Rental income of persons 5.4 2.0 3.5 9.0 11.9 12.2 11.9 11.9 12.3 12 2 12 3 12 5 12 6 12 8 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 41.7 37.2 47.2 45.6 45.5 45.0 46.0 51.1 50.4 Profits before tax 9.6 .2 77.0 40.6 43.2 37.4 47.7 45.4 45.6 44.8 46.3 51.4 50.7 Profits tax liability 1.4 .5 7.6 17.9 20.9 18.6 23.2 22.4 22.3 21.9 22.6 25.1 24.4 Profits after tax 8.3 -.4 9.4 22.8 22.3 18.8 24.5 23.0 23.3 22.9 23.7 26.3 25.6 Dividends 5.8 2.1 4.5 9.2 12.6 12.4 13.7 14.4 15.0 14.8 14.9 15.5 15.8 "i5!8 Undistributed profits 2.4 -2.4 4.9 13.6 9.7 6.4 10.8 8.6 8.3 8.1 8.7 10.8 9.8 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 -1.5 -.3 -.5 .2 .2 -.3 -.3 .3 Net interest 6.4 5.0 4.5 5.5 13.4 14.8 16.4 18.1 20.0 19.8 20.3 21.0 21.5 22.0 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL PRODUCT AND INCOME 1231 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING [In billions of dollars] 1961 1962 Item 1929 1933 1941 1950 1957 1958 1959 1960 1961 II III IV Gross national product 104.4 56.0 125.8 284.6 442.8 444.5 482.7 503.4 518.7 513.1 522.3 538.6 545.0 552.0 Less: Capital consumption allowances 8.6 7.2 9.0 19.1 37.4 38.6 41.0 C43.2 45.3 45.0 45.7 46.6 47.0 47.5 Indirect business tax and nontax liability , 7.0 7.1 11.3 23.7 38.2 39.3 42.6 46.5 48.2 48.0 48.3 49.7 50.2 51.4 Business transfer payments .6 .7 .5 .8 1.8 1.8 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 Statistical discrepancy , .3 .9 .4 -.6 -4.4 -.7 -1.5 -3.0 -3.4 -3.1 -3.1 -1.9 -1.4 Plus: Subsidies less current surplus of government enterprises , -.1 .1 .2 1.0 1.1 .4 .5 1.7 2.0 2.1 2.0 1.8 Equals: National income , 87.8 40.2 104.7 241.9 366.9 367.4 400.5 415.5 427.8 424.3 431.3 444.0 448.9 Less: Corporate profits and inventory valuation adjustment , 10. -2.0 14.5 35.7 41.7 37.2 47.2 45.6 45.5 45.0 46.0 50.4 Contributions for social insurance .2 .3 2.8 6.9 14.5 14.8 17.6 20.6 21.6 21.5 21.8 23.6 23.9 Plus: Government transfer payments .9 1.5 2.6 14.3 20.1 24.5 25.4 27.3 31.3 31.2 31.6 31.9 32.0 Net interest paid by government 1.0 1.2 1.3 4.8 6.2 6.2 7. 7.8 7.3 7.4 7.2 7.3 7.4 Dividends 5.8 2.1 4.5 9.2 12.6 12.4 13.7 14.4 15.0 14.8 14.9 15.8 15.8 Business transfer payments .6 .5 1.8 1.8 2.1 2.1 2.1 2.1 2.1 2.1 2. 1 .7 Equals: Personal income 85.8 96.3 228.5 351.4 360.3 383.9 400.8 416.4 413.5 419.4 427.3 432.0 439.5 47.2 Less: Personal tax and nontax payments.... 2.6 3.3 20. 42.6 42.3 46.8 51.4 52. 52.5 53.0 54.6 56.4 57.7 1.5 Federal 1.3 .5 2.0 18.2 37.3 36.6 40.4 44.0 45.0 44.7 45.1 48.0 49.2 State and local 1.4 1.0 1.3 2.6 5.3 5.7 6.4 7.4 7.8 7.8 7.9 8.4 8.5 Equals: Disposable personal income 83.1 45.7 93.0 207.7 308.8 317.9 337.1 349.4 363.6 361.0 366.3 372.6 375.6 381.8 Less: Personal consumption expenditures.. 79.0 46.4 81.9 195.0 285.2 293.2 313.5 328.5 338.1 335.5 340.1 346.1 350.2 354.9 Equals: Personal saving 4.2 -.6 11.1 12.6 23.6 24.7 23.6 20.9 25.6 25.5 26.3 26.5 25.4 26.9 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 293.8 296.3 310.7 317.3 327.3 325.5 329.7 334.5 336.6 340.9 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of previous page. PERSONAL INCOME [In billions of dollars] 1961 1962 1 Qfift July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July*' Total personal income 400.8 416.4 420.1 418.3 419.7 423.6 427.8 430.5 428.8 431.9 435.2 438.3 439.7 440.7 442.0 Wa%e and salary disbursements 271.3 278.8 280.9 280.7 281.4 283.6 286.4 288.3 287.4 290.3 292.2 295.3 296.0 296.9 297.8 Commodity-producing industries... 110.4 110.8 112.1 111.6 111.4 113.1 115.0 114.9 113.8 115.2 116.1 118.2 118.2 118.1 118.3 Manufacturing only 87.4 87.5 88.5 88.1 87.8 89.4 91.1 91.5 90.8 92.0 92.8 94.4 94.5 94.5 94.3 Distributive industries 71.8 72.9 73.5 73.2 73.4 73.6 73.5 74.5 74.4 75.0 75.4 75.8 76.1 76.2 76.3 Service industries 40.7 43.4 43.6 43.9 43.8 43.9 44.2 44.9 44.9 45.1 45.3 45.6 45.9 46.5 46.8 Government 48.4 51.8 51.7 52.1 52.7 53.0 53.7 54.0 54.4 55.0 55.4 55.6 55.8 56.0 56.3 Other labor income . 11.0 11.4 11.4 11.4 11.5 11.5 11 6 11.6 11.8 12.0 12.1 12.2 12.3 12.4 12.4 46.2 C47.8 C47.9 48.2 48.3 49.1 49.9 49.7 49.2 49.0 49.3 49.4 49.6 49.6 49.7 Business and professional 34.2 34.8 34.8 35.1 35.2 35.6 36.1 36.2 36.1 36.2 36.4 36.6 36.8 36.8 36.9 Farm 12.0 13.1 13.1 13.1 13.1 13.5 13.8 13.5 13.1 12.8 12.9 12.8 12.8 12.8 12.8 Rental income 11.9 12.3 12.3 12.3 12.4 12.4 12.5 12.5 12.6 12.6 12.7 12.7 12.8 12.8 12.8 Dividends 14.4 15.0 14.8 14.9 15.0 15.3 15.4 15.9 15.6 15.8 15.9 15.8 15.8 15.8 15.8 Personal interest income 25.8 27.4 27.4 27.5 27.7 27.9 28 1 28.4 28.6 28.8 29.0 29.2 29.4 29.6 29.8 Transfer payments 29.4 33.4 35 0 33 0 33 1 33.5 33 8 34.0 33.9 33.8 34.5 34.2 34.2 34.1 34.2 Less: Personal contributions for social insurance 9.2 9.7 9.7 9.7 9.7 9.8 9.9 9.9 10.3 10.4 10.4 10.5 10.5 10.5 10.5 Nonagricultural income 384.7 399 1 402 6 401 0 402 3 405 9 409 5 412 7 411 6 414 8 418 0 421 2 422.6 423.5 424.8 16.1 17.3 17.4 17.4 17.4 17.7 18.3 17.8 17.2 17.1 17.2 17.1 17.1 17.2 17.2 NOTE.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1232 FLOW OF FUNDS/SAVING SAVING AND INVESTMENT [In billions of dollars] 1960 1961 1962 Transaction category, or sector 1957 1958 1959 1960 1961 I II III IV I II III IV I, A Net national saving ^ 37.4 19.4 37.2 38.0 31.1 13.2 9.9 10.6 4.3 8.3 6.5 8.8 7.5 10.3 A B Consumer and nonprofit 28.6 26.5 30.4 26.9 29.6 7.7 4.5 8.8 5.9 7.5 5.0 9.4 7.7 9.0 B C Farm and noncorp business 2 -.4 -.1 -.7 1.2 .6 1 C -1.1 2.0 -1.3 C D Corporate nonfinancial business 5.3 3.1 12.3 6.5 8.3 2 1 3 2.5 2.4 -1 2 19 3 2 4 4 1 2 D E Federal Government 1 3.7 -7.9 -4.5 4.3 -5.2 4.4 4.5 -.9 -3.7 1.0 1.8 -1.3 -5.3 .7 E F State and local government* -3.6 -5.0 -4.0 -3.4 -4.5 -.4 -.7 -1.1 -1.1 -.7 -1.0 -2.7 -1.5 -.6 F G Financial sectors ... 3.5 2.8 3.0 3.7 3.0 1 7 4 2.0 A 1 1 .3 1 4 1 1 3 G H Capital consumption ^ 73.2 75.6 79.7 83.6 86.7 20.6 20.9 20.9 21.2 21.2 21.6 21.8 22.2 22.2 H I Consumer and nonprofit 40.0 41.6 43.5 45.5 46.9 11.3 11.3 11.4 11.5 11.6 11.7 11.8 11.9 12.0 I J Consumer durable goods 35.8 37.0 38.6 40.4 42.2 10.0 10.0 10.1 10.1 10.2 10.3 10.3 10.4 10.5 J K Owner-occupied homes . . 3.7 4.0 4.3 4.6 5.0 1.1 1.1 1.2 1.2 1.2 1.2 1.3 1.3 1.3 K L Plant and equip, (nonprofit) .6 .6 .6 .7 .7 .2 .2 .2 .2 .2 .2 .2 .2 .2 L Mi Farm business 3.9 4.0 4.2 4.2 4.1 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 M N Noncorp nonfinan business .. . 8.1 8.0 8.4 8.7 8.9 2.\ 2.2 2.2 2.2 2.2 2.2 2.2 2.3 2 2 N O Corporate nonfinancial business. . 21.0 21.9 23.3 25.0 26.6 6.1 6.3 6.2 6.4 6.4 6.6 6.7 6.9 6.9 O P Gross national saving * 110.6 95.0 116.9 121.6 117.9 33.8 30.8 31.6 25.4 29.5 28.0 30.6 29.7 32.5 P Q Consumer and nonprofit 68.6 68.0 73.9 72.4 76.5 19.0 15.8 20.2 17.4 19.1 16.7 21.2 19.6 20.9 Q R Farm and noncorp business.... 12.0 11.9 12.6 12.9 13.0 2.8 3.1 2.6 4.4 3.7 1.8 2.1 5.4 2.0 R S Corporate nonfinancial business.. 26.3 24.9 35.6 31.4 34.9 6.3 7.6 8.8 Q Q 5.2 8.5 9.9 11.3 8.1 S T U S F t e a d te e r a al n d G l o o v c e a r l n g m ov e e n r t n l ment* -3 3 . . 6 7 - - 7 5 . . 9 0 - - 4 4 . . 5 0 -3 4 . . 4 3 - -4 5 . . 5 2 - 4 .4 .4 - 4 .7 .5 - - 1 . . 9 1 --31 o .. . 71 o - 1 .7 .0 -1 1 . . 0 8 - -1 2 . . 3 7 - -1 5 . . 5 3 -.6 .7 U T V Financial sectors 3.7 3.0 3.3 4.0 3.3 1.8 .5 2.0 2 1.2 .4 1.5 .2 1.4 V W Gross national investment1 110.6 94.2 114.6 117.9 114.8 30.1 29.9 27.9 30.0 25.2 28.4 28.7 32.4 30.1 W X Consumer durable goods 40.4 37.3 43.6 44.8 43.7 10.2 11.5 10.3 12.8 9.1 10.9 10.2 13.6 10.4 X Y Other gross private domestic fixed investment 64.5 58.6 66.2 68.3 67.1 15.1 17.9 17.7 17.6 14.2 17.2 17.5 18.2 15.4 Y Z Consumer and nonprofit 18.1 18.1 22.1 21.7 20.1 5.3 4.9 5.6 5.8 4.8 4.6 5.0 5.6 5.2 Z a Nonfarm residen. constrA.... 75.6 15.3 19.2 18.5 76.7 4.6 4.2 4.8 4.9 4.0 3.8 4.1 4.7 4.3 a b Plant and equip, {nonprofit) . 2.5 2.7 2.9 3.2 3.4 .7 .8 .9 .9 .8 .8 .9 ,9 .8 b c Farm business 4 0 4 4 4 7 4.2 4.6 1.1 1.2 1.1 .9 1 1 1 3 1 2 9 1 1 c d Noncorp. nonfinan. business4.. 9.4 9.0 10.7 10.8 11.4 2.2 3.3 2.8 2.5 2.1 3.1 3.2 3.0 2.4 d e Corp. nonfinan. business 4 32.3 26.4 27.9 30.7 30.3 6.4 8.4 7.9 8.2 6.0 7.9 7.9 8.4 6.5 e f Financial sectors 8 .7 .8 .8 .8 .2 .2 .2 .2 2 2 2 2 2 f g Change in inventories 5 1.6 -2.0 6.6 4.1 2.1 4.8 .3 * -1.1 1.1 * .8 .2 h Farm business .9 .3 .2 .1 .1 .1 .1 * * h i Noncorp. nonfinan. business... .8 -.2 'A .9 .1 1.4 -.5 .5 .1 -.5 .9 i j Corp. nonfinan. business -2.6 2.8 1.8 3.3 .2 * -.7 .5 -'.2 .7 .7 2.7 j .6 6.1 k Net financial investment ^ «•• 3 .7 1.8 - .2 .7 9 4 2 4 7 k 1 Consumer and nonprofit 144 72 18.9 —1 21..87 9.4 17.8 3.7 -.7 4.5 1.9 5.7 2.3 6.1 3.7 9.1 1 m Net acquis. offinan. assets. .. 26.5 30.9 33.1 25.6 33.6 5.7 4.4 5.5 6.9 6.9 6.9 9.3 70.5 77.7 m n Net increase in liabilities 11.8 12.0 20.3 16.2 15.8 2.1 5.1 4.0 5.1 1.2 4.7 3.1 6.8 1.9 n o Farm and noncorp. business... -2.3 -2.1 -3.2 -3.4 -3.3 -1.9 -1.4 14 1.4 * -2.8 -2.4 1.9 -2.4 o p Net acquis of finan assets 8 1 l — 1.0 A .2 -.5 -.3 .3 — .4 .2 — 7 5 - .4 p q Net increase in liabilities 3.1 3.3 2.2 3.1 3.5 1.4 1.6 1.1 -7.7 -.4 3.0 2.3 -1.4 2.0 q r Corp nonfinan business — 8 2 — 3 9 — 3 7 — 1A -3.8 -3.4 -2.6 -1.0 -.3 -3.0 3 — 7 — 3 -18 r s Net acquis. offinan. assets. .. 4.2 10.3 12.4 2.4 77.3 -1.4 .7 1.2 1.9 -2.0 4.8 2.9 5.6 -7.3 s t Net increase in liabilities 12.4 14.2 16.1 9.8 75.7 2.1 3.3 2.2 2.3 1.0 4.5 3.7 5.9 .5 t u Federal Government 3.6 -8.2 -5.1 3.8 -5.8 4.0 4.8 -.8 -4.3 1.1 .7 -1.0 -6.6 * u v Net acquis. offinan. assets. .. 3.2 1.6 6.1 3.9 3.3 -.3 4.4 .7 -1.0 -7.5 2.7 3.7 -1.0 7.0 v w Net increase in liabilities -.4 9.7 11.2 .1 9.1 -4.3 - .4 7.5 3.3 -2.7 1.4 4.8 5.6 7.0 w x State and local governments. . . -3.8 -5.1 -3.4 -2.4 -4.1 -A -.6 -2.0 .6 -1.2 * -2.9 * -1.9 x y Net acquis. offinan. assets. .. 2.8 2.5 3.5 3.8 3.7 1.2 .9 .7 1.6 .8 1.6 - .6 1.8 7.0 y z Net increase in liabilities 6.6 7.6 7.0 6.2 7.8 1.6 1.5 2.1 1.0 2.1 1.6 2.3 1.8 2.9 z aa Financial sectors 2 9 4.4 4.4 5.5 5.0 1.9 1.5 1.8 .2 1.3 .2 3.5 * 1.0 aa bb Net acquis. offinan. assets. .. 23.9 36.1 30.1 34.1 45.4 -2.7 72.3 70.2 14.3 .7 14.6 73.7 16.9 2.8 bb cc Net increase in liabilities 21.0 31.7 25.7 28.6 40.3 -4.7 10.8 8.3 14.2 -7.2 14.4 70.3 16.9 1.8 cc dd Financial trans, discrep -2.6 -3.8 -3.4 -4.6 -3.9 -3.8 -1.0 -1.2 1.9 -3.1 .2 -2.4 1.7 -3.4 dd ee Discrepancy (P —W) 7 .8 2.3 3.7 3.1 3.7 .9 3.7 -4.6 4.3 -A 1.9 -2.7 2.4 ee 1 For govt. sectors, saving is excess of all nonfinancial receipts over all 5 After inventory valuation adjustment. nonfinancial outlays; investment, changes in financial assets and liabilities 6 Financial component of national investment equals net lending to only. Govt. current outlays include, and govt. (and national) investment rest of world; financial flows among domestic sectors cancel out in excludes, govt. purchases of tangible assets. national total. (Discrepancies in financial transactions attributed entirely 2 Annual figures for farm sector are retained earnings of corporate to domestic transactions.) Differs from U.S. "net foreign investment" farms; farm and nonfarm unincorporated businesses shown as having (net exports minus net unilateral transfers in national income accounts) zero annual net saving. Quarterly figures for both sectors include seasonal by discrepancy in rest-of-world account, which equals "errors and net saving. See Aug. 1959 BULL., p.838. omissions" in Dept. of Commerce balance-of-payments statement for 3 Depreciation, accidental damage to fixed capital, and capital outlays the United States. charged to current account. Line H includes amounts for financial 7 Saving and investment are equal in concept but may differ statistically sectors not shown separately. For discussion see Aug. 1959 BULL, on because of discrepancies. See Aug. 1959 BULL., p. 857. p. 836. NOTE.—Descriptions of sectors and of transaction categories are given 4 For consumers, 1- to 4-family dwellings, completed and purchases of in notes to tables and in "Technical Notes," Aug. 1959 BULL., pp. additions and alterations. Investment of nonfarm business sectors 846-59. For latest detailed flow of funds/saving tables, see Aug. 1962 includes work in process on 1- to 4-family dwellings and other private BULL. residential construction. Notes to table on opposite page. 3 Mainly time deposits of State and local govts., corporate businesses, 1 Demand deposit liabilities of banking system are net of F. R. float and savings institutions. and cash items in process of collection as reported by commercial banks. 4 Assets in these categories are treated as consumer holdings. Sum of sector holdings (partly on holder-record basis) differs from liability 5 Marketable issues maturing within 1 year and, before 1956, savings total mainly because of mail float (checks in transit from drawers to notes. drawees). For further discussion, see Aug. 1959 BULL., p. 853. 6 Excludes loans to domestic commercial banks. Gross of valuation 2 Consumer-held only; includes net interest accruals. Savings bonds reserves. held by other sectors included in Federal obligations category. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FLOW OF FUNDS/SAVING 1233 SUMMARY OF PRINCIPAL FINANCIAL FLOWS [In billions of dollars] 1960 1961 1962 Transaction category, 1957 1958 1959 1960 1961 or sector I II III IV I II III IV IP I. Demand deposits and currency A Net increase in commercial bkg. system liability ^ . . .. -.8 5.8 1.1 .1 5.6 -8.8 2.5 1.5 4.9 -8.0 3.8 3.2 6.7 -8.6 A B Net increase in assets, by sector .7 6.3 .2 .3 4.8 -7.1 2.4 1.6 3.3 -6.4 3.0 3.8 4.3 -6.2 B C Federal Government .2 .1 .7 .9 .3 -.4 2.8 .2 -1.7 -1.7 2.0 2.4 -2.3 .3 C D Other domestic sectors .3 6.1 -.5 -.6 4.1 -6.2 -.5 1.4 4.8 -4.6 1.1 1.3 6.3 -6.7 D E Consumer and nonprofit -.9 2.5 1.0 .3 1.4 -2.4 -1.1 1.8 2.0 -.3 -.9 1.8 .8 -.8 E F Farm and noncorporate bus.... .7 1.2 -1.2 -.5 -.1 -.1 -.1 i * F G Corporate nonfinancial bus.... * 1.5 -1.0 -1.2 .9 -3.3 .6 r.5 -3.8 1.0 .4 3.4 -4.5 G I H J K Di R sc e r F S s e t i t p n a o a t a e n f n c c t a y h i n a e d l ( A w s lo e o — c c r a t B ld o l ) rs g ove . r . nment.... -1.5 . . . 3 2 2 -.5 . . 7 2 l . . 9 5 l -.2 . . 2 5 * 1. . . . 2 6 4 8 - - - 1 A A .8 * -.4 .5 * * - - - . . . 2 2 2 1. . . . 6 8 6 3 - - 1 . . 5 6 * -.1 . . . 7 4 7 - - . . 9 6 .1 * 2 1 . . . . 3 9 2 3 - - - 1 2 . . . 2 1 5 .2 K H I J II. Fixed-value redeemable claims A Net increase, by type 10.1 16.2 7.6 14.8 21.7 1.6 3.9 3.9 5.4 5.7 6.8 3.9 5.2 8.6 A B Time deposits 6.8 10.2 2.2 7.0 11.5 .2 1.7 2.6 2.5 3.5 4.0 2.3 1.7 6.4 B C Savings shares 5.2 6.6 7.2 8.1 9.4 1.6 2.4 1.4 2.8 2.0 2.7 1.5 3.3 2.1 C D US. savings bonds 2 -1.9 c -1.8 -.3 .8 -.2 i * .1 .3 .2 .2 .2 D E Net increase in liab., by sector 10.1 16.2 7.6 14.8 21.7 1.6 3.9 3.9 5.4 5.7 6.8 3.9 5.2 8.6 E F Federal Government -2.2 -.7 -2.0 -.4 .7 -.2 -.2 .2 .1 .2 .1 F G Commercial banking 5.5 8.0 1.2 5.8 9.4 1.5 2.1 2.9 3.5 1.2 5.6 G H Savings institutions 6.9 8.9 8.4 9.5 11.5 1.9 2.6 l!8 3.3 2.6 3.2 l!9 3.8 2.9 H I Net increase in assets, by sector 10.1 16.2 7.6 14.8 21.7 1.6 3.9 3.9 5.4 5.7 6.8 3.9 5.2 8.6 I J Consumer and nonprofit 9.8 13.3 9.4 12.4 18.6 1.7 3.4 3.0 4.2 4.0 5.9 3.4 5.3 6.7 J K Other domestic sectors 3 .3 2.0 -.9 2.2 2.5 .1 .3 .6 1.1 1.7 .8 .2 -.2 1.9 K L Rest of the world (time deposits).. * .9 -.9 .3 .6 -.2 .2 .3 .1 * .1 .3 .1 * L III. Saving through life insurance and pension funds A Net increase, by type 9.2 10.4 11.7 11.3 12.0 2.7 3.0 2.8 2.8 2.8 3.2 2.7 3.2 2.7 A B Life insurance 2.8 3.4 3.7 3.6 3.8 .8 .8 1.0 1.0 .9 .9 1.0 .9 .9 B C Pension funds 6.4 7.0 7.9 7.7 8.2 1.9 2.2 1.8 1.8 1.8 2.3 1.7 2.3 1.8 C D Net increase in liab., by sector 4. . .. 9.2 10.4 11.7 11.3 12.0 2.7 3.0 2.8 2.8 2.8 3.2 2.7 3.2 2.7 D E Federal Government .6 1.0 1.0 1.0 1.0 .1 .1 .1 1 8 * * E F G S L t if a e te i n a s n u d r a lo n c ce a l c g o o m v p er a n n m ie e s nt 4 1 . . 2 6 4 1 . . 7 7 5 1 . . 5 9 2 4 . . 1 7 2 5 . . 3 0 1. . 1 5 1 . . 5 1 1. . 2 5 1. . 4 5 1. . 2 6 .6 1 .6 2 1 .6 5 1 .6 2 G F H Private noninsured pension plans. 2.8 2.9 3.2 3.4 3.5 1.0 .7 .9 .8 .9 .6 .8 1.1 .8 H IV. Credit and equity market instruments A Net increase by type 36.5 45.8 60.9 40.6 51.6 3.0 12.1 10.5 14.9 * 13.6 16.4 21.5 8.0 A B Federal obligations 1.1 9.0 11.4 -1.9 6.5 -4.1 -1.4 1.2 2.1 -3.3 .6 5 8 3 5 .1 B C Short-term direct 5 5.5 -1.2 5.5 -5.0 11.3 -7.4 -2.1 5.3 -.8 .9 4.8 1.0 4.7 .8 C D Other -4.4 10.2 5.9 3.1 -4.8 3.3 .6 -4.1 2.9 -4.2 -4.2 4.8 -1.2 -.7 D E State and local obligations 4.6 5.5 4.7 3.7 5.1 1.0 .7 1 5 1.4 .9 1.7 1 2 2.1 E F Corporate and foreign bonds 7.5 6.8 4.5 5.6 5.5 1.2 1.2 1.3 1.9 .8 2.2 .9 1.7 1.0 F G Corporate stock 4.0 4.2 4.4 3.5 5.2 1.0 .9 .9 .7 1.2 1.7 1.1 1 1 1 2 G H 1- to 4-family mortgages 8.6 10.1 13.2 10.4 12.1 2.2 2.8 3.0 2.5 2 0 3 2 3 4 3 5 2 6 H 3.5 5.2 5.8 5.8 6.1 1.5 1.5 1.4 1.4 1.2 1.5 1.5 1.9 1.9 I J Consumer credit 2.6 .1 6.2 4.4 1.4 -.7 2.4 .8 1.9 -2.1 1.0 .2 2.4 -1.5 J 1.7 .1 .4 2.2 -1.6 .5 .6 .9 — .4 1.3 1.3 -1.0 K 2.3 1.2 7.4 2.8 3.1 .1 2.0 — .9 1 5 -2.2 1.3 .8 3.2 -.6 L M Other loans 2.6 2.0 3.2 6.1 4.3 2.4 1.5 .7 1.5 1.6 • 1.1 1.7 2.2 M N Funds raised, by sector 36.7 45.8 60.7 40.5 51.6 3.0 12.1 10.5 14.9 * 13.7 16.4 21.5 8.0 N O Consumer and nonprofit 11.7 11.9 20.3 16.2 15.7 2.1 5.1 4.0 5.1 1.1 4.6 3.1 6.8 1.9 O 1.1 1.5 1.8 1.2 1.6 .6 .8 .1 .6 .9 .4 -.2 .6 P Q Noncorporate nonfinancial bus... 1.2 2.2 3.2 2.2 2.1 * .7 -.3 1.8 -1.9 .9 1.0 2.0 * Q R Corporate nonfinancial business 13.2 11.8 13.0 12.5 12.7 3.2 3.9 2.6 2.8 2 2 4 3 2 8 3 4 ? 1 R S Federal Government 1.0 9.3 10.7 -1.7 6.7 -4.1 -1.5 1.5 2.4 -3.1 5.5 4.1 .3 S T State and local government 4.8 5.7 5.0 4.0 5.4 1.1 .9 1.6 1.4 1 7 1 3 2 2 T TT Financial sectors 2 3 1.1 5 9 4.0 4.6 — .2 1.7 .6 2 0 — 1 0 1 5 1 i 3 0 * U V Rest of the world 1.4 2.3 .8 2.0 2.7 3 .5 .4 .1 .8 1 2 8 V W Funds advanced, by sector 36.5 45.8 60.9 40.6 51.6 3.0 12.1 10.5 14.9 * 13.6 16.4 21.5 8.0 W X Consumer and nonprofit 8.3 4.7 12.9 2.0 2.0 3.8 -.9 l.C -2.0 A -1.1 1.4 1.2 2.6 X Y Farm and noncorp. business -.1 .1 .1 .1 -A .3 .4 — A . 1 -.1 .4 -.4 Y Z Corporate nonfinancial business.. .6 .8 6.4 -1.9 -.1 . 2 -1.1 1.0 — 1.4 .6 i 2 1.8 .3 Z a Federal Government 2.4 1.7 3.8 2.4 2.8 * 1.4 A .6 .1 \.2 1.2 .6 a b State and local government 2.2 1.5 3.4 2.2 2.2 1.1 .9 * .3 l'.O .3 .3 1.4 b c Commercial banking system 4.3 1 n 7 .0 2 5.6 10.0 17.4 -7 1 .9 4 5 1 . 2 2 4.8 5 7.8 4 -4.7 7.1 8 1 . . 3 1 -2.5 .2 c d e Commercial banks 5.1 14.9 5.3 9.3 16.0 -6.4 4.0 4.3 7.4 -4.0 6.2 6.6 7.1 -2.8 e f Securities 1.3 10.4 -7.2 2.4 8.6 -5.6 .2 3.7 4.0 -1.6 3.7 5.2 1.3 -1.8 f g L.OCMS ^ 3.8 4.5 12.5 6.9 7.4 -.9 3.7 .7 3.4 -2.4 2.5 1.3 5.8 -1.0 g h Savings institutions 7.2 9.3 10.7 9.3 12.0 2.2 2.3 2.6 2.2 2.8 3.0 3.3 3.0 3.3 h i j k F R In i e n s s u a t n ra o c n f e c t n e h . e e s . e w c c o to r r ld 2 8. . . 4 3 6 9 1 . ' 0 * 9 1 4 3 0 . . . 6 4 1 1 5 1 0 . . . 0 2 2 1 3 0 . . . 7 7 8 2.7 2 2 . . 2 0 i 2. . . 7 8 3 2 1 . . . 6 8 3 2. A 7 e 2 1 . . 2 5 2 1 . . . 7 7 0 3 1 . . . 1 2 9 - 2 .2 . . 6 2 k j i NOTE.—Data for excluded categories—trade credit, proprietors' net sector transactions appear in other flow of funds/saving tables in Aug. investment, gold, Treasury currency, and misc.—and more detail on 1962 BULL. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1234 STOCK MARKET CREDIT DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE CARRYING MARGIN ACCOUNTS, JUNE 1955-62 [Amounts in millions of dollars] Item 1955 1956 1958 1959 1960 1961 1962 DEBIT BALANCES Cash on hand and in banks 337 322 324 363 366 422 437 Securities borrowed 85 65 134 129 96 152 151 Securities sold, delivery pending (failed to deliver) 214 148 170 291 334 530 368 Net debit balances due from member firms of national securities exchanges: Member firms of New York Stock Exchange 144 151 132 159 134 216 169 Member firms of other exchanges 16 14 15 18 22 36 22 Net debit balances due from all other customers exclusive of firms' own partners: S S e e c c u u r r e e d d b b y y o U t . h e S r . c G o o ll v a e t r e n ra m l ent obligations 2,768 2,811 / 253 3,3 1 7 6 0 5 3,0 1 8 0 1 4 4,02 4 4 8 3,60 3 4 2 Net debit balances in partners' individual investment and trading accounts 14 21 35 36 37 58 74 Debit balances in firm investment and trading accounts: In firm investment accounts 673 625 / 335 286 309 293 243 In firm trading and underwriting accounts 336 374 582 520 Commodity margins on deposit with banks and commodity guaranty funds on deposit... 35 38 39 23 22 30 All other debit balances 144 137 151 190 218 309 303 Total. 4,430 4,332 4,985 5,382 5,097 6,694 5,954 CREDIT BALANCES Money borrowed: From banks and trust companies: U. S. agencies of foreign banks [2,075 2,231 / 622 605 806 817 525 U. S. banks U,743 1,871 1,473 2,016 1,739 In New York City ,744 7,572 1,402 1,428 1,157 1,515 1,007 Elsewhere 331 359 341 444 316 501 732 From other lenders (not including members of national securities exchanges) l 40 35 21 31 52 47 41 Securities loaned 156 124 187 204 167 233 211 Securities bought, delivery pending (failed to receive) 218 156 181 294 352 568 363 Net credit balances due to member firms of national securities exchanges: Member firms of New York Stock Exchange 126 123 120 132 120 174 153 Member firms of other exchanges 11 9 13 11 23 17 Credit balances of other customers exclusive of firms' own partners: Free credit balances 919 837 1,034 1,070 1,006 1,264 1,330 Other net credit balances 239 207 367 277 246 335 441 Credit balances and money borrowed which are subordinated to general creditors under approved agreementsl n.a. n.a. 20 22 25 31 51 Net credit balances in partners' individual investment and trading accounts 31 34 34 38 37 47 43 Credit balances in firm investment and trading accounts 62 34 82 71 61 100 76 All other credit balances (except those included in next item) , 83 78 83 149 129 241 193 Net balance in capital and profit and loss accounts and partners' drawing accounts 469 466 483 604 612 797 771 Total. 4,430 4,332 4,985 5,382 5,097 6,694 5,954 Memorandum: Value of securities sold under repurchase agreements. 24 24 24 27 42 Number of firms. 299 303 316 320 328 336 337 Money borrowed according to type and ownership of collateral:— Secured by customers' collateral: Entirely by obligations of U. S. Government or its agencies 245 156 96 38 23 Entirely by other securities exempted under Section 3 (a) of Securities Exchange Act—1934 150 161 123 108 93 By nonexempt securities or mixed collateral 1,451 1,824 1,722 2,289 1,833 Secured by firm or partners' collateral: Entirely by obligations of U. S. Government or its agencies 204 105 107 41 24 Entirely by other securities exempted under Section 3 (a) of Securities Exchange Act—1934 98 64 99 104 106 By nonexempt securities or mixed collateral 239 198 182 300 227 Unsecured 1 1 1 1 Before 1958 probably includes some borrowing from U. S. agencies "credit balances of other customers exclusive of firms' own partners— of foreign banks. free credit balances" are conceptually identical to these items (including debit balances secured by and money borrowed on U. S. Government NOTE.—End of month figures. Data not collected for June 1957. obligations), as shown in the table on Stock Market Credit, p. 1197, For explanation of these figures see "Statistics on Margin Accounts" but the data differ somewhat because of minor differences in coverage, Sept. 1936 BULL. The items "net debit balances due from all other cus- statistical discrepancies in reporting, and—for the item "money borrowed" tomers exclusive of firms' own partners," "money borrowed," and —the date of reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments. ., 1236 Gold production. 1237 Net gold purchases and gold stock of the United States. 1238 Estimated foreign gold reserves and dollar holdings. 1239 International capital transactions of the United States. 1240 U. S. balance of payments. . 1249 Money rates in foreign countries. . 1249 Foreign exchange rates 1251 Guide to tabular presentation 1172 Index to statistical tables. 1257 The figures on international capital transactions piled largely from regularly published sources are collected by the F. R. Banks from reports such as central bank statements and official made on Treasury foreign exchange forms col- statistical bulletins. For some of the series, back lected by the F. R. Banks in accordance with data are available in Banking and Monetary Executive Orders No. 6560, dated Jan. 15, 1934, Statistics and its Supplements (see list of publiand No. 10033, dated Feb. 8, 1949, and Treas- cations at end of the BULLETIN). ury regulations thereunder. Other data are com- 1235 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1236 GOLD RESERVES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS [In millions of dollars] Esti- Intl. Esti- E pe n r d i o o d f w m t o o a r t t l a e d l d i M F ta u o r n n y d e- U S n ta i t t e e s d r m w es a o t t r e l o d d f A t r i g n e a n- t A ra u l s ia - A tr u ia s- g B iu e m l- Brazil Canada Chile lo C m o b - ia C o R o f n e t p g h . o e , 1955 37,620 1,808 21,753 14,060 372 144 71 928 323 1,134 44 86 116 1956 38,105 1,692 22,058 14,355 224 107 71 925 324 1,103 46 57 122 1957 38,810 1,180 22,857 14,775 126 126 103 915 324 1,100 40 62 81 1958 39,490 1,332 20,582 17,575 60 162 194 1,270 325 1,078 40 72 83 1959 40,185 2,407 19,507 18,270 56 154 292 1,134 327 960 43 71 42 I960 40,525 2,439 17,804 20,280 104 147 293 1,170 287 885 45 78 1961 July . .. 2,508 17,590 192 153 293 1,083 288 912 48 84 A.UB 2 042 17 530 192 153 293 I 151 288 920 48 84 Sept 41,070 2,046 17,457 2i,565 191 152 298 1,165 288 927 48 85 Oct 2,055 17,331 190 155 302 1,203 289 932 48 86 Nov 2,059 17 021 190 159 302 t 234 285 941 49 87 Dec r41,150 2,077 16,947 r22,125 190 162 303 1,248 285 946 48 88 1962 Jan 2,079 16,847 190 164 303 I 277 285 950 48 89 Feb 2,096 16,795 165 164 304 1,291 285 962 47 89 Mar 41 285 2 098 16 643 22 545 164 167 344 I 297 285 964 46 91 Apr . 2,099 16,519 114 170 363 1,315 285 963 46 91 Mav.. 2,106 16,458 114 174 363 1,318 286 913 45 92 June ?41 275 2 110 16 527 ^22 640 177 363 I 335 286 669 45 July 2,136 16,182 180 419 [,335 674 48 Ger- E p n er d i o o d f Cuba m De a n rk - D R o i e c m p a u n i b n - - E d c o u r a- E v l a d S o a r l- l F a i n n d - France R m F e a e p n d . y o . , f Greece G m u a a l t a e- India I n n e d si o a - Iran lic 1955 136 31 12 23 28 35 942 920 11 27 247 81 138 1956 136 31 11 22 28 35 924 1,494 10 27 247 45 138 1957 136 31 11 22 31 35 581 2,542 13 27 247 39 138 1958 80 31 11 22 31 35 750 2,639 17 27 247 37 141 1959 50 3! 10 20 30 38 1,290 2,637 26 24 247 33 140 I960 1 31 10 20 30 41 1,641 2,971 76 24 247 58 130 1961—July 31 20 17 45 2,037 3,525 77 24 247 43 130 A us 31 20 17 45 2 124 3 644 77 24 247 43 130 Sept 31 20 17 45 2,124 3,644 77 24 247 43 130 Oct 31 1 19 17 45 2,125 3,648 77 24 247 43 130 Nov 31 3 19 17 45 2,122 3,648 82 24 247 43 130 Dec 31 3 19 18 47 2,121 3,664 87 24 247 43 130 1962 Jan 31 3 19 18 47 2 120 3 664 87 24 247 130 Feb . 31 3 19 18 46 2,144 3,664 87 24 247 130 Mar . 31 3 19 18 61 2,171 3,666 91 24 247 129 Apr 31 3 19 18 62 2,207 3 666 86 24 247 129 May 31 3 19 18 62 2,235 3 667 89 247 129 June 31 3 19 18 62 2,270 3,667 96 247 129 July 31 3 19 62 2,417 3,667 247 129 Ire- E pe n r d io o d f Iraq R l e a p n . d , of Italy a L n e o b n - M ic e o x- N l e a t n h d e s r- Ze N a e la w nd N w o a r y - P s a ta k n i- Peru ip P p h i i n l e - s Po g r a t l u- A So fr u ic th a 1955 8 18 352 74 142 865 33 45 48 35 16 428 212 1956 14 18 338 77 167 844 33 50 49 35 22 448 224 1957 20 18 452 91 180 744 33 45 49 28 6 461 217 1958 34 18 1,086 91 143 11,050 33 43 49 19 10 493 211 1959 84 18 1,749 102 142 1,132 34 30 50 28 9 548 238 1960 98 18 2,203 119 137 1,451 35 30 52 42 15 552 178 1961—July 84 18 2,157 130 118 1,541 35 30 53 47 21 452 159 Aug 84 18 2,225 130 116 1,581 30 53 47 22 448 179 Sept. 84 18 2,226 140 116 1,581 30 53 47 22 437 205 Oct 84 18 2,226 140 116 1,581 30 53 47 25 438 218 Nov 84 18 2,226 140 115 1,581 30 53 47 26 439 256 Dec 84 18 2,225 140 112 1,581 30 53 47 27 443 298 1962—Jan 98 18 2,228 140 111 1,581 30 53 47 27 444 343 Feb 98 18 2,228 140 110 ,581 30 53 47 28 444 361 Mar 98 18 2,229 140 109 ,581 30 53 47 446 379 Apr 98 18 2,234 140 109 ,581 30 53 47 446 386 May 18 2,240 140 107 1,581 30 53 47 447 407 June 18 2 242 151 581 30 53 47 454 432 July 18 2,244 172 581 30 53 47 455 446 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES AND PRODUCTION 1237 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued [In millions of dollars] Bank E pe n r d i o o d f Spain Sweden Sw la i n tz d er- Syria T la h n a d i* Turkey U (E . g A y . p R t . ) U K d n o i i m n t g e 2 d - U gu r a u y - V zu e e n l e a - Y sl u av g i o a - m S I e e f n o t n t t r l l t e . s - 3 E E P F U * - 1955 132 276 1,597 19 112 144 174 2,120 216 403 16 121 244 1956 132 266 1,664 19 112 144 188 2,133 186 603 18 59 268 1957 101 219 1,706 24 112 144 188 2,273 180 719 14 24 254 1958 57 204 1,925 24 112 144 174 3,069 180 719 17 -42 126 1959 68 191 1,934 19 104 133 174 2,736 180 652 10 -134 40 1960 178 170 2,185 19 104 134 174 3,231 180 398 4 -19 55 1961—July.. 244 170 2,322 19 104 134 174 2,453 180 398 6 -19 AUR 272 180 2,428 19 104 139 174 3,486 180 398 5 91 Sept 277 180 2,472 19 104 139 174 3,553 180 398 5 164 50 Oct 291 180 2,525 104 139 174 3,531 180 398 5 164 Nov 301 180 2,505 104 139 174 3 556 180 398 6 183 Dec 316 180 2,560 104 139 174 3,318 180 398 6 115 56 1962 Jan 331 181 2,505 104 140 174 3,410 180 398 6 176 Feb 341 181 2,481 104 140 174 3,424 180 398 6 176 Mar 351 181 2,444 104 140 174 3,452 180 398 6 171 61 Apr 376 181 2,424 104 140 174 3,472 180 398 6 162 May 400 181 2,409 104 140 174 3,525 180 398 6 165 June 409 182 2,409 104 140 174 3,433 180 398 6 203 July 429 182 2,459 140 174 2,915 398 209 1 Includes reported gold holdings of central banks and govts. and 2 Beginning with Dec. 1958, Exchange Equalization Account gold international organizations, unpublished holdings of various central banks and convertible currency reserves, as reported by the U.K. Treasury; and govts., estimated holdings of the U.K. Exchange Equalization before that time, reserves of gold and U. S. and Canadian dollars. Account, and estimated official holdings of countries from which no 3 Net gold assets of BIS, i.e., gold in bars and coins and other gold reports are received; excludes U.S.S.R., other Eastern European coun- assets minus gold deposit liabilities. tries, and China Mainland. 4 Europeans Payments Union through Dec. 1958 and European Fund The figures included for the Bank for International Settlements are thereafter. the Bank's gold assets net of gold deposit liabilities. This procedure avoids the overstatement of total world gold reserves since most of the NOTE.—For back figures and description of the data in this and the gold deposited with the BIS is included in the gold reserves of individual following tables on gold (except production), see "Gold" Section 14, countries. Supplement to Banking and Monetary Statistics. GOLD PRODUCTION [In millions of dollars at $35 per fine troy ounce] Africa North and South America Other World Period p t r i o o d n u 1 c- A So fr u ic th a R de h s o i - a Ghana C o R o f n e t p g h . o e , U S n ta i t t e e s d C a a d n a - M ic e o x- r N ag ic u a a - 2 Brazil Co b l i o a m- t A ra u l s i - a India ot A he l r l i 1955 940.0 510.7 18.4 24.1 13.0 65.7 159.1 13.4 8.1 3.9 13.3 36.7 7.4 66 2 1956 975.0 556.2 18.8 22.3 13.1 65.3 153.4 12.3 7.6 4.3 15.3 36 1 7 3 63 0 1957 1,015.0 596.2 18.8 27.7 13.1 63.0 155.2 12.1 6.9 4.2 11.4 37.9 6 3 62 2 1958 1,050.0 618.0 19.4 29.8 12.3 61.6 158.8 11.6 7.2 3.9 13.0 38.6 6.0 69.8 1959 1,125.0 702.2 19.8 32.0 12.2 57.2 156.9 11.0 7.3 3.8 13.9 38.1 5 8 64 8 I960 1,175.0 748.4 19.6 31.3 11.1 58.8 161.1 10.5 7.0 4.1 15.2 38.0 5.7 64.2 1961 1,220.0 803.1 20.1 34.0 8.1 54.8 155.5 9.4 7.7 4.4 14.0 37.5 5.7 65.7 1961—June 67.3 1.8 3.8 12.8 .6 .4 1.2 2.9 .5 July 67.7 1.7 3.8 12.6 1.0 .4 0 3 1 5 68.8 1 6 3.8 12.5 1.0 2 3 4 5 Sept 68.5 1.6 4.5 12.1 .6 .3 1.4 3.2 .5 Oct 68.9 1.6 3.9 12.7 .6 4 I 4 3 5 4 69.2 1.6 4.1 13.0 .9 .4 1 3.1 .5 Dec 67.8 1.6 3.4 12.9 .5 .4 1 3 3 5 1962 Jan 70.6 1.6 3.5 12.6 .7 .4 2.9 .5 Feb 67.4 1.6 3.2 11.4 .9 .4 *4 2.9 .5 Mar 72.9 1.7 3.5 12.8 1.1 .4 3 1 Apr 72.3 1.6 3.0 12.4 .9 .3 2 May 74.0 3.4 12.3 .4 June 75.2 3.1 11.8 4 1 Estimated; excludes U.S.S.R., other Eastern European countries, and of the Bureau of Mines except Brazil, data for which are from China Mainland, and North Korea. American Bureau of Metal Statistics. For the United States, annual figures 2 Gold exports. are from the Bureau of the Mint and monthly figures are from American Bureau of Metal Statistics. NOTE.—Estimated world production based on reports of the U. S. Bureau of Mines. Country data based on reports from individual countries Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1238 U. S. GOLD NET GOLD PURCHASES OR SALES BY THE UNITED STATES, BY COUNTRY [In millions of dollars at $35 per fine troy ounce.] 1961 1962 Area and country 1954 1955 1956 1957 1958 1959 1960 1961 II III IV I II Western Europe: -6 -84 -83 -1 — 39 — 17 3 3 -329 -39 -141 — 144 -63 -81 -28 -35 -68 -34 -266 -173 —45 — 98 -226 -10 -34 -23 Italy -349 100 25 -261 -30 -249 —25 —25 -55 -5 -20 -10 Spain 31 32 -114 — 156 —58 —40 —47 — 59 -16 -8 -215 20 -324 — 125 —20 -45 — 5 62 35 United Kinedom . ... —50 100 —900 -350 — 550 — 306 225 —55 — 326 — 181 — 150 Bank for Intl Settlements -20 -178 -32 -36 -23 Other -6 4 18 8 -21 -38 -96 -53 -3 * -14 -11 -15 Total -378 -78 80 68-2,326 -827 -1,718 -754 202 -246 -466 -290 -339 Canada 15 5 190 Latin American republics: 115 75 67 -50 —90 25 60 Mexico 80 —30 —20 -30 -200 65 Other 12 14 56 6 2 -16 -30 -19 5 -9 -4 -1 1 Total 62 14 -28 81 69 19 -100 -109 5 -9 -4 24 59 Asia: -30 -157 — 15 Other -10 -5 * 18 -4 -28 -97 1-101 -27 -34 -20 -24 -16 Total -10 -5 * 18 -34 -186 -113 -101 -27 -34 -20 -24 -16 All other -1 1 14 -3 -5 -38 -6 -1 * -4 3 -327 -68 80 172-2,294 -998 -1,969 -970 179 -288 -494 -291 -102 Intl. Monetary Fund 2 200 600 3 _44 2 300 150 150 Grand total -327 -68 280 772-2,294 -1,041 -1,669 -820 179 -138 -494 -291 -102 * Includes sales of $21 million to Lebanon and $48 million to Saudi amount of gold from the United States. Arabia. 3 Payment to the IMF of $344 million as increase in U. S. gold sub- 2 Proceeds from this sale invested by the IMF in U. S. Govt. securities; scription less sale by the IMF of $300 million (see also note 2). upon termination of the investment the IMF can reacquire the same U. S. GOLD STOCK AND HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES BY U. S. MONETARY AUTHORITIES [In millions of dollars] Gold stock Changes in— Gold stock Changes in— Foreign Foreign Year Total currency Month Total currency holdings Total holdings2 Total Total i Treasury Total gold Total i Treasury Total gold 1950 22,820 22,820 22,706 -1,743 -1,743 1961—Aug.... 17,636 17;530 17,451 106 -59 -60 1951..... 22,873 22,873 22,695 53 53 Sept.... 17,519 17;457 17,376 62 -117 -73 1952 23,252 23,252 23,187 379 379 Oct 17,443 17,331 17,300 112 -76 -126 1953..... 22,091 22,091 22,030 -1,161 -1,161 Nov.... 17,148 17.021 16,975 127 -295 -310 1954 21,793 21,793 21,713 -298 -298 Dec... 17,063 16^947 16,889 116 -85 -74 1955 21,753 21,753 21,690 -40 -40 1962—Jan.... 16,963 16'847 16,815 116 -100 -100 1956 22,058 22,058 21,949 305 305 Feb.... 16,948 16[795 16,790 153 -15 -52 1957..... 22,857 22,857 22,781 799 799 Mar.... 16,873 16,643 16,608 230 -75 -152 1958..... 20,582 20,582 20,534 -2,275 -2,275 Apr..., 16,762 16,519 16,495 243 -111 -124 1959..... 19,507 19,507 19,456 -1,075 3-1,075 May... 16,718 .16,458 16,434 260 -44 -61 June... 17,081 16,527 16,435 554 363 69 1960 17,804 17,804 17,767 -1,703 -1,703 July.... 16,678 16,182 16,147 496 -403 -345 1961..... 17,063 16,947 16,889 116 -741 -857 Aug.».. 16,562 16,139 16,098 423 -116 -43 1 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 8 on page 1247 for gold held under earmark at 2 For holdings of F. R. Banks only see pp. 1180 and 1182. F. R. Banks for foreign and international accounts. Gold under ear- 3 Includes payment of $344 million as increase in U. S. gold subscrip- mark is not included in the gold stock of the United States. tion to the International Monetary Fund. See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES AND DOLLAR HOLDINGS 1239 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS [In millions of dollars] Dec. 31, 1960 June 30, 1961 Sept. 30, 1961 Dec. 31, 1961 Mar. 31, 1962 June 30, 1962^ U.S. Govt. Area and country Gold& bonds & notes1 Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. short- short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. term term bonds term bonds term bonds term bonds term bonds dollars Old New dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes series series Western Europe: 536 7 3 480 3 526 3 558 3 594 • 640 Belgium 1,312 6 2 1,307 1 1,476 1 1,574 8 1,616 8 1,593 2 Denmark 85 28 31 81 31 79 30 83 30 80 29 83 29 87 1 i * 112 2 134 2 138 138 2 133 2 France 2,160 16 5 2,862 4 3,014 5 3,110 4 3,360 3 3 672 3 Germany, Fed. Rep. of 6,447 16 3 6,588 3 6,394 6,505 3 6,200 3 6,289 3 139 * * 136 * 120 « 154 • 189 • 206 * Italy 3,080 * * 3,059 * 3,377 • 3,459 • 3,416 * 3,429 * Netherlands 1,779 13 4 1,735 3 1,804 3 1,797 3 1,822 2 1 8R8 2 112 143 148 134 132 135 128 135 126 142 93 131 85 Portugal.. . 636 1 1 546 523 1 542 1 532 1 584 Spain 327 3 1 352 1 405 1 469 1 516 1 568 I Sweden 397 77 82 574 51 566 71 586 93 584 92 607 123 Switzerland 2,863 57 94 2,850 87 3,177 86 3,435 83 3,262 83 3,355 83 Turkey 152 * * 150 * 158 • 165 * 160 * 163 * United Kingdom2 4,467 412 420 4,109 435 4,719 483 4.526 435 4,941 388 4,862 440 Other 3 529 39 44 609 47 788 47 r678 48 727 46 668 46 Total . ... 25,108 819 838 25,684 801 27,395 864r27,914 840 28,279 751 28 871 820 Canada 3,324 416 446 3,565 463 3,576 465 3,704 459 3,454 423 3,566 227 Latin America: Argentina 419 * 1 475 1 454 1 425 1 407 ] 312 1 Brazil 481 2 2 474 2 551 1 513 1 492 1 509 1 Chile • 180 * * 171 * 178 * 153 • 160 • 175 * Colombia 236 * 202 1 222 1 235 1 228 1 251 1 Cuba 78 39 59 * 46 * 44 * 40 • 38 * Guatemala 68 1 83 * 70 • 70 * 82 * 76 Mexico 534 2 450 5 529 5 606 5 615 6 620 6 Panama, Republic of . 123 2 78 1 79 1 87 1 82 1 87 1 Peru 114 * 118 * 123 1 131 1 137 * 137 * 231 1 250 1 229 1 237 1 255 1 259 1 Venezuela 796 3 826 1 846 1 815 1 796 1 760 1 Other4 370 9 303 57 297 77 278 192 328 188 401 156 Total 3,630 59 15 3,469 69 3,624 89 3,594 204 3,622 200 3,625 168 Asia: India 301 40 41 288 6 333 6 325 6 321 6 296 6 236 * 1 142 1 120 1 119 1 137 1 125 1 Iran 152 * * 178 * 167 * 161 • 165 * 156 * 2,166 2 3 2,262 3 1,953 3 1,894 3 2,048 3 2,099 3 Philippines ......... ........ 218 2 2 184 2 174 2 212 1 193 1 207 Thailand 290 * * 331 * 344 • 368 * 410 * 431 * Other ............ 991 43 45 1,033 45 1,130 45 rl,168 45 1,215 41 1,207 41 Total 4,354 87 92 4,418 57 4,221 57 '4,247 56 4,489 52 4,521 52 Allother: Australia 235 * * 238 * 238 * 260 268 * 281 * South Africa 207 1 * 192 « 251 * 330 * 415 * 471 * U.A.R. (Egypt) 196 * * 190 • 189 * 189 * 190 • 193 * Others 600 27 35 618 37 579 38 635 39 632 42 638 39 Total 1,238 28 35 1,238 37 1,257 38 1,414 39 1,505 42 1,583 39 Total foreign countries'* 37,654 1,409 1,426 38,374 1,427 40,073 1,513 »-40,873 1,598 41,349 1,468 42,166 1,306 International 6,394 884 900 6,451 1,011 5,480 1,127 5,881 1,240 6,503 1,087 6,673 1,009 Grand total**. 44,048 2,293 2,326 44,825 2,438 45,553 2,640 r46,754 2,838 47,852 2,555 48,839 2,315 5,558 512 536 5,179 518 5,863 567 5,841 520 6,357 474 6,326 525 1 The first column continues the series based on a 1955 survey and 5 Includes unspecified countries in Africa, Oceania, and Eastern reported securities transactions; the second is based on a survey as of Europe, and all Western European dependencies located outside Europe Nov. 30, 1960, and reported securities transactions in Dec. Data are not and Asia. available to reconcile the 2 series or to revise figures for earlier dates. 6 Excludes gold reserves of the U. S. S. R., other Eastern European 2 Gold reserves are estimated. countries, and China Mainland. 3 In addition to other Western European countries includes unpublished gold reserves of certain Western European countries; gold to be NOTE.—Gold and short-term dollars include reported and estimated distributed by the Tripartite Commission for the Restitution of Mone- official gold reserves, and official and private short-term dollar holdings tary Gold; European Fund; and the Bank for International Settlements (principally deposits and U. S. Treasury bills and certificates). U. S. (the figures for the gold reserves of the BIS represent the Bank's net Govt. bonds and notes are official and private holdings of U. S. Govt. gold assets; see note 1 to table on gold reserves). securities with an original maturity of more than 1 year. 4 Includes other Latin American republics and the Inter-American See also NOTE to table on gold reserves. Development Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1240 INTL. CAPITAL TRANSACTIONS OF THE U. S. 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY [Amounts outstanding; in millions of dollars] Foreign Europe In- End of period G to ra ta n l d t t i e o r n n a a l - 1 Total Officials Other m G F a e e n d r y . - , U K n i i n t g ed - Other Total Canada A L m a e ti r n ica Asia o A th l e l r Rep. of dom 1957 15,158 1,517 13,641 7,917 5,724 1,557 1,275 4,310 7,142 1,623 2 575 1 946 355 1958 16,159 1,544 14,615 8,665 5,950 1,755 873 5,081 7,708 2.019 2.403 2 205 279 1959 19 389 33,158 16,231 9,154 7,076 1,987 990 5,496 8,473 2 198 2 408 2 780 373 I960 21,329 3,955 17,374 10,327 7,047 3,476 1,667 3,903 9,046 2,439 2 422 3 115 352 1961 July 21,770 3,983 17,786 10,096 7,690 2,970 1,691 4,639 9,300 2 712 2 307 3 105 362 Aug 21,626 3,404 18,222 10.537 7,685 2,791 2,431 4,636 9,857 2,701 2,277 3,038 349 ScDt 21 940 3,434 18,506 10,924 7,581 2.750 2,619 4,845 10,214 2 649 2 372 2 896 375 Oct 22,235 3,715 18,520 10,692 7,827 2,544 2,676 4,894 10,113 2,907 2,312 2 807 382 Nov 22 417 3 836 18,581 10,594 7.987 2,531 2,505 4,969 10,004 3 029 2 343 2 819 385 Dec 22,551 3,804 18,747 10,974 1,11 A 2,841 2,226 5,248 10,317 2,758 2 393 2 892 387 1962—Jan 22,495 3,815 18,680 10,263 8,417 2,299 2,501 5,283 10,082 2,909 2,348 2,926 415 Feb 22,792 4,126 18,666 10,105 8,561 2,401 2,566 5,216 10,183 2,761 2,354 2 990 378 Mar 23,207 4,405 18,802 10,503 8,299 2,534 2,491 5,355 10,381 2 490 2 453 3 086 392 Apr 23,388 4,503 18,885 10,292 8,593 2,518 2,468 5,377 10,363 2,503 2 563 3 064 392 May 23,555 4,594 18,962 10,510 8,452 2,509 2,398 5,562 10,469 2,514 2 458 3 085 437 June^ .. 24 090 4,563 19,527 11,262 8,265 2,622 2,262 5,712 10,596 2 897 2 513 3 10^ 420 July? 23,654 4,846 18,808 10,838 7,970 2,542 1,851 5,217 9,610 3,120 2,546 3,083 449 la. Other Europe End of period Total A tr u ia s- g B iu e m l- m D a e r n k - l F a i n n d - France Greece Italy N la e e n r t d - h s - N w o a r y - t P u o g r a - l Spain S d w en e- S l w a e n r it - d z- T k u e r y - Othe«4 1957 4,310 349 130 112 64 354 154 1.079 203 93 142 24 260 967 18 360 1958 5 081 411 115 169 69 532 126 1,121 339 130 163 36 303 852 20 694 1959 5,496 331 138 137 71 655 186 1,370 485 95 138 86 213 969 31 590 I960 3,903 243 142 54 46 519 63 877 328 82 84 149 227 678 18 393 1961—July 4'639 195 310 36 77 1,012 59 1,008 252 101 80 134 423 552 13 388 AuJZ 4*636 212 300 38 87 871 55 1,098 200 105 84 133 387 661 17 388 Sept 4.845 228 311 48 89 890 43 1,151 223 105 86 128 386 705 19 433 Oct 4,894 228 311 56 92 888 43 1,191 227 110 88 133 391 689 21 427 Nov 4,969 241 330 49 89 957 50 1,203 231 99 90 134 379 712 28 376 Dec 5,248 255 326 52 91 989 67 1,234 216 105 99 153 406 875 26 354 1962—Jan 5,283 256 357 52 90 1,083 76 1,248 218 93 93 159 392 773 34 359 Feb 5,216 262 328 55 90 1,097 85 1,100 263 103 91 152 394 816 37 345 Mar 5,355 250 319 49 77 1,189 98 1,187 241 112 86 165 403 818 20 342 Apr 5,377 229 293 49 74 1,261 104 1,185 247 141 98 160 391 806 19 321 May 5,562 238 293 60 70 1,445 103 1,147 259 123 108 153 415 830 16 302 Junep 5,712 277 258 52 71 1,402 no 1,187 307 101 130 159 425 946 23 263 July? 5,217 292 203 44 68 1,046 97 1,095 339 103 132 176 425 913 17 266 lb. Latin America End of period Total 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 R m i D c e a i o n p n - - . v S a E a d l l o - r G m u a a l t a e- M ic e o x- N S t A a i e u l n t l n r e h d i - s - ., a p P R m u a e b n a - - - , Peru U gu r a u y - V zu e e n l e a - Others nam lic of 19*7 2,575 137 26 132 75 153 235 54 27 65 386 73 136 60 55 835 124 1958 2,403 150 22 138 100 169 286 40 26 42 418 79 146 77 82 494 133 1959 2 408 337 24 151 185 217 164 37 28 37 442 88 129 82 62 277 148 I960 2,422 315 23 194 135 158 77 37 24 44 397 72 123 72 51 398 302 1961 July 2,307 278 23 231 116 150 53 32 31 55 339 87 77 83 50 439 264 AUB 2,277 275 24 218 125 134 49 30 27 49 430 84 78 86 52 367 250 Sept 2,372 263 23 263 130 137 45 29 26 46 413 87 79 76 49 448 259 Oct 2,312 246 23 254 96 137 46 27 28 43 403 88 84 73 50 406 307 NOT. 2,343 240 25 260 96 130 45 23 23 43 439 87 85 77 53 416 300 Dec 2,393 235 26 228 105 147 43 23 22 46 494 89 87 84 57 417 292 1962—Jan 2,348 228 23 252 99 119 41 26 24 48 473 86 79 79 68 395 308 Feb 2,354 217 23 241 95 139 40 28 29 54 474 88 83 80 80 379 306 Mar 2,453 243 24 207 114 137 39 34 28 58 506 92 82 90 75 398 327 Apr 2,563 221 24 254 109 140 38 42 29 57 516 97 90 92 75 445 332 May 2,458 209 24 235 108 142 37 43 34 55 490 90 91 90 72 377 362 June" 2,513 208 25 223 130 159 37 48 35 52 513 87 87 90 79 362 378 July* 2,546 231 23 200 112 149 37 43 36 42 489 96 87 96 73 433 399 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U. S. 1241 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued [Amounts outstanding; in millions of dollars] lc. Asia and All Other Asia All other End of period Total H K o o n n g g India I n n e d si o a - Iran Israel Japan p K £ u o b - - P pi h n i e l- s Tai- T la h n a d i- Other Total A tra u l s i - a C R g o o e o f n p , - . A S f o r u ic t a h ( U E . g A y . p R t . ) Other lic the of 1957 1,946 70 82 151 52 586 117 175 86 157 417 355 85 39 38 40 153 1958 2,205 62 77 108 56 935 145 176 99 133 371 279 79 30 30 16 125 1959 2,780 60 114 139 87 ,285 148 172 94 141 494 373 110 31 49 20 162 1960 3,115 57 54 178 75 ,887 152 203 84 186 217 352 88 32 29 22 181 1961—July 3,105 52 37 74 51 ,913 178 182 80 231 273 362 81 29 40 16 196 Aug 3.038 53 78 78 64 ,766 186 174 89 237 275 349 79 27 40 21 181 Sept 2,896 55 86 77 62 ,649 194 152 90 240 255 375 86 43 46 15 185 Oct 2,807 59 88 92 65 ,535 195 134 92 240 273 382 90 39 46 15 192 Nov 2,819 59 90 82 62 ,532 198 150 90 248 276 385 91 38 44 12 199 Dec 2,892 55 78 76 63 ,590 199 185 92 264 258 387 98 34 32 15 209 1962—Jan 2,926 59 75 86 63 ,599 188 202 98 276 246 415 127 31 32 21 204 Feb 2.990 57 74 100 87 ,628 187 171 103 293 255 378 95 28 36 14 205 Mar 3.086 57 74 94 71 ,744 183 165 92 306 262 392 101 27 36 16 213 Apr 3,064 58 70 88 78 ,703 181 173 90 314 287 392 96 27 43 17 210 May 3,085 61 54 80 76 .746 174 184 85 323 283 437 97 40 42 25 232 June** 3,102 56 49 82 76 ,795 164 179 85 327 261 420 104 37 39 19 221 3,083 60 39 79 76 ,787 160 170 86 327 267 449 122 37 36 22 232 Id. Supplementary Data6 (end of year) Area or country 1958 1959 1960 1961 Area or country 1958 1959 1960 1961 Other Europe: Other Asia (Cont.): Bulgaria .3 1.2 .5 1.2 Ceylon 44.1 34.4 6.9 n.a. Cyprus .2 .3 .5 .7 China Mainland 7 . 36.0 35.8 34.8 34.6 Czechoslovakia 7 .6 .7 1.0 .9 Goa 2.5 2.3 1.4 .9 Hungary .9 1.3 1.0 1.0 Iraq 18.0 63.1 13.8 n.a. Iceland 3.5 2.7 5.1 3.1 Jordan 2.8 2.5 1.8 1.6 Ireland, Republic of 10.0 5.4 2.7 3.2 Kuwait 10.3 9.4 9.6 27.1 Luxembourg 16.1 7.2 12.6 16.1 Laos 20.9 21.0 5.0 n.a. Monaco 5.9 5.3 4.1 3.4 Lebanon 37.9 38.0 36.2 n.a. Poland 7 4.9 4.0 6.1 7.2 Malaya 1.2 1.4 6.3 4.4 Rumania 7 .9 .9 1 1.5 Nepal. 1.2 1.8 1.2 n.a. Soviet Zone of Germany 1.4 1.5 1.3 1.3 Pakistan 5.6 23.5 10.6 10.1 U. S. S. R. 7 2.2 2.6 12.1 4.8 Ryukyu Islands 15.2 14.8 14.2 n.a. Yugoslavia 7 9.5 6.2 10.0 11.6 Saudi Arabia 60.2 111.6 18.4 24.9 Singapore 2.5 3.5 1.9 3.2 Ot B he a r h a L m at a i s n 8 America: 47.2 77.5 V Sy ie ri t a -Nam 48 4 . . 8 7 68 5 . . 3 0 1 4 4 . . 2 6 7 2 . . 9 6 P C E H H B N T F a r c h o e a o i e r c u e r s i n a n m t a t a i d g a c W r d u a u u h o R g d r a e r a a u y W s i s c t a a e I s n t d i I e n s d i f e e s d e a r n a d ti o F n r e 8 nch Guiana. 3 2 1 1 7 6 6 3 1 4 1 7 . . . . . . . . . 7 3 8 4 6 5 3 5 4 3 2 1 1 1 1 1 2 6 2 2 0 8 1 4 . . . . . . . . . 6 7 8 5 5 9 7 5 3 2 2 1 1 1 1 1 4 7 1 1 1 9 0 5 . . . . . . . . . 6 3 7 9 3 8 7 0 4 > 2 3 1 1 1 1 9 4 3 3 7 4 3 4 . . . . . . . . . 9 9 6 5 5 8 3 3 0 Al A E l F G L L M M r o t i i l h b b h a o e g t a d n h e y i r e o n o r e c a r e i p i a c h i r a a r i c : a a o S o I a ( s m n i l n d a a c n l l E i d . l s a r T i n t a d r n e g a ier) 4 2 1 3 6 7 3 1 1 . . . . . . . . 5 4 8 0 0 0 5 7 2 5 1 1 2 0 7 7 8 . . . . . . . . 0 3 8 6 7 4 6 6 6 1 9 5 4 6 . . . . . . . . 6 3 3 9 8 9 9 4 9 2 1 5 3 1 1 1 . . . . . . . . 4 1 0 9 7 8 5 1 Mozambique 2.9 2.0 2.2 1.6 Other Asia: New Caledonia 1.4 1.3 1.4 n.a. Aden 1.7 2.2 2.3 n.a. New Zealand 6.9 6.8 35.1 4.0 Afghanistan. 4.5 11.0 9.8 3.6 Rhodesia and Nyasaland, Federation of. .2 .3 3.9 n.a. Bahrain .9 .9 .5 .6 Somali Republic 1.3 .8 3.5 1.7 Burma 5.9 4.3 .9 n.a. Sudan 5.2 1.6 1.9 n.a. Cambodia. ., 24.9 19.7 10.9 15.3 Tunisia .3 8.4 2.8 1.2 1 International Bank for Reconstruction and Development, Inter- (N. Y.) F. R. District and are a partial breakdown of the amounts shown national Monetary Fund, International Finance Corporation, Inter- in the "other" categories in Tables la-lc. national Development Association, and other international organizations. 7 Based on reports by banks in all F. R. districts. 2 Foreign central banks and foreign central governments and their 8 Before 1960, data for the Bahamas included with The West Indies agencies (including official purchasing missions, trade and shipping federation. missions, diplomatic and consular establishments, etc.). 9 Excludes Jamaica. 3 Includes $1,031 million representing increase in U. S. dollar sub- NOTE.—For back figures and description of the data in this and the scription to the IMF paid in June 1959. following tables on international capital transactions of the United States, 4 Includes Bank for International Settlements. see "International Finance" Section 15, Supplement to Banking and Mone- 5 Beginning with 1960 includes Inter-American Development Bank. tary Statistics. 6 Except where noted, data based on reports by banks in the Second Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1242 INTL. CAPITAL TRANSACTIONS OF THE U. S. 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE [In millions of dollars] Payable in dollars To banks and official institutions To all other foreigners Payable End of period, or area Total in foreign and country U.S. U.S. currencies Total Deposits T bi r l e ls a s a u n r d y Other2 Total Deposits T bi r l e ls a s a u n r d y Other2 certificates1 certificates Total amounts outstanding 1957 15,158 12,847 5,875 5,840 1.132 2,252 1.766 278 209 59 1958 16,159 13,669 6,772 5,823 1,075 2,430 1,951 306 174 59 1959 19,389 16,913 6,341 9,245 1,328 2,398 1,833 295 270 77 I960 21,329 18,986 7,568 10,018 1,401 2,230 1,849 148 233 113 1961 July 21,770 19,419 8,492 9,620 1,307 2,206 1,880 109 217 145 21,626 19,310 8,631 9,343 1,336 2,209 1,871 109 229 108 Sent 21,940 19,613 8,691 9,543 1,379 2,226 1,891 117 219 100 Oct 22,235 19,783 8,899 9,485 1,398 2,293 1,918 151 224 159 Nov 22,417 19,942 8,843 9,654 1,445 2,333 1,930 147 256 142 Dec 22,551 20,039 8,652 9,891 1,496 2,362 1,974 149 238 150 1962 Jan 22,495 19,962 9,148 9,372 1,441 2,372 1,966 151 255 161 Feb 22,792 20,201 9,134 9,635 1,432 2,440 1.971 166 302 152 Mar 23,207 20,562 8,768 10,352 1,442 2,461 2,002 156 303 184 * Apr 23,388 20,728 9,118 10,146 1,465 2,479 2,034 140 305 181 1 May 23,555 20,890 8,823 10,574 1,493 2,498 2 045 100 353 167 24,090 21,232 8,672 11,138 [,422 2,679 2,202 107 370 179 July** 23,654 20,929 8,329 11,185 1,416 2,545 2,080 112 353 180 Area and country detail, May 21, 1962 Europe: 238 236 223 3 10 2 2 293 256 193 4 59 38 29 * 8 * Denmark 60 52 31 20 1 8 8 * * Finland 70 68 45 22 1 1 France 1,445 1,386 275 1,069 42 54 47 3 4 5 Germany, Fed. Rep. of.... 2,509 2,469 338 1,749 382 39 33 1 5 Greece 103 88 60 28 * 15 15 Italy 1,147 1,039 172 696 170 33 29 2 1 75 Netherlands 259 235 109 116 10 23 19 1 3 1 123 90 50 33 8 32 32 * Portugal 108 71 65 6 36 36 * * * Spain 153 127 111 11 6 25 23 * 3 * 415 406 100 297 10 9 8 1 * Switzerland 830 709 315 232 162 108 69 16 24 12 Turkey 16 14 14 * 2 2 * United Kingdom 2,398 1,967 1,098 796 73 390 135 36 220 41 Yugoslavia 11 10 8 2 1 Other . 292 270 74 64 132 11 10 * * 11 Total 10,469 9,494 3,279 5,140 1,075 828 499 61 268 147 Canada 2,514 2,275 1,910 343 22 229 177 25 27 9 Latin America: Argentina 209 102 96 2 4 106 100 1 5 Bolivia 24 7 7 * 17 17 * Brazil 235 97 78 * 18 137 134 3 1 Chile 108 38 37 1 70 70 1 * Colombia 142 65 59 * 6 77 75 2 * Cuba 37 2 2 35 35 * Dominican Republic 43 26 21 5 17 17 * El Salvador 34 19 6 6 7 15 15 * * Guatemala 55 35 20 7 8 19 19 i * 490 290 230 16 44 200 194 i 6 * Neth., Antilles and Surinam 90 42 26 10 6 48 32 2 14 Panama Rep. of 91 14 12 2 77 69 2 7 Peru 90 33 33 57 54 2 * Urusuav 72 34 32 2 37 33 1 4 * Venezuela 377 153 153 • 224 221 1 2 * Other 362 244 137 366 41 115 100 7 8 3 Total 2,458 1,200 950 107 144 1,253 1,186 13 54 5 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U. S. 1243 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued [In millions of dollars] Payable in dollars Area and Total To banks and official institutions To all other foreigners Payable in foreign country U.S. U.S. currencies Total Deposits T bi r l e ls a s a u n r d y Other 2 Total Deposits T bi r l e H a s a u n r d y Other 2 certificates certificates Area and country detai, May 31, 1962—Cont. Asia: Hong Kong 61 31 25 6 30 30 * * India 54 47 24 16 7 6 6 * * 1 Indonesia 80 78 68 10 * 2 2 Iran 18 12 12 * 6 6 * Israel 76 69 38 8 23 7 5 1 * Japan 1,746 1,723 1,130 478 115 23 23 * * # Korea Reo of 174 171 169 3 2 2 Philippines . 184 158 133 8 17 26 26 * * * Taiwan 85 79 74 4 6 6 Thailand 323 320 87 226 6 3 3 Other 283 240 173 40 28 42 41 * 1 * Total .... 3,085 2,929 1,933 787 209 154 151 1 3 1 Allother: Australia 97 93 46 42 4 3 3 Congo Rep of the 40 38 38 * 2 2 * South Africa 42 39 33 6 2 2 * * 1 U A R fEevtrt) 25 25 13 7 5 1 Other .... 232 203 151 44 7 26 25 * 2 3 Total 437 398 282 99 17 34 32 * 2 5 Total foreign countries. 18,962 16,296 8,354 6,475 1,467 2,498 2,045 100 353 167 International 4,594 4,593 469 44,098 26 * * Grand total 23,555 20.890 8,823 510,574 1,493 2,498 2,045 100 353 167 Includes nonnegotiable, non-interest-bearing special U. S. notes held 3. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY [Amounts outstanding; in millions of dollars] Europe End of period Total France R m G F e a e p e n d r . y - . o , f Italy S l z a w e n r i d - t- U K d n i o n i m t g e - d Other Total C a a d n a - A L m i a c t a e in r- Asia o A th l e l r 1957 2,199 114 140 56 34 98 211 654 154 956 386 50 1958 2,542 102 77 36 42 124 315 696 243 1,099 435 69 1959 2,623 57 54 30 38 121 234 534 272 1,175 S86 56 I960 3,614 32 82 34 60 245 264 717 421 1,356 1,052 69 1961 July 4,189 50 141 35 64 187 209 688 492 1,245 1,674 90 4,122 42 136 37 60 134 178 586 517 1,295 1,626 98 Sept 4,156 34 146 34 67 185 186 652 491 1,347 1,581 84 Oct.... 4,347 37 140 34 72 169 182 634 618 ,412 1,597 86 Nov 4,384 40 147 34 67 189 181 658 577 1,450 1,620 79 Dec 4,700 42 165 35 105 181 239 767 537 1,504 1,807 85 1962 Jan 4,570 40 157 36 68 163 214 678 483 1,425 1,892 92 Feb 4,688 44 155 39 71 160 215 683 496 1,456 1,964 89 Mar 4,868 49 144 37 76 159 222 687 540 1,496 2,051 94 Apr 4,849 44 161 41 68 142 207 664 517 1.520 2,046 101 May 4,819 55 139 37 68 158 229 686 436 1,565 2,029 103 Junep 4,759 52 129 36 68 151 254 689 415 1,529 2,009 117 July*7 4,762 51 137 43 67 162 246 705 427 1,529 1,975 126 Nora—Short-term claims are principally the following items payable States; and foreign currency balances held abroad by banks and bankers on demand or with a contractual maturity of not more than 1 year: loans and their customers in the United States. Excludes convertible curmade to and acceptances made for foreigners; drafts drawn against rencies held by U. S. monetary authorities. foreigners where collection is being made by banks and bankers for See also NOTE to Table 1. their own account or for account of their customers in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1244 INTL. CAPITAL TRANSACTIONS OF THE U. S. 3. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued [Amounts outstanding; in millions of dollars] 3a. Other Europe End of period Total A tr u ia s- 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 Spain S d w en e- T k u e r y - Y sl u av g i o a - Other 1957 211 6 25 11 4 6 29 23 2 8 10 76 * 10 1958 315 7 65 14 6 7 56 22 2 30 24 72 1 9 1959 234 4 56 18 8 5 38 7 2 8 19 47 3 18 1960 264 2 65 13 9 6 33 17 4 8 28 49 11 19 1961—July 209 3 43 9 14 8 47 11 2 8 17 13 15 19 178 3 13 11 14 6 43 11 2 7 16 22 14 17 SeDt 186 3 10 10 16 7 45 13 2 7 15 31 8 18 Oct 182 3 11 12 19 6 41 17 3 6 15 23 8 16 Nov 181 4 10 11 20 6 46 23 3 5 18 9 9 17 Dec 239 5 20 11 23 6 54 27 5 11 35 16 9 17 1962 Jan 214 4 18 13 23 5 60 26 2 14 17 7 7 19 Feb 215 5 19 9 23 4 61 22 3 17 18 7 7 21 Mar 222 4 17 8 24 4 66 20 5 15 18 11 4 23 Apr 207 5 15 7 24 4 58 21 5 13 17 13 5 21 229 6 18 9 26 4 62 23 5 16 19 13 5 23 June2' 254 5 18 11 27 5 59 24 7 12 20 37 6 21 July*7 246 7 19 13 28 5 57 23 8 12 16 27 6 25 3b. Latin America Neth- Do- er- End of period Total A t r i g n e a n- l B iv o i - a Brazil Chile l C o b m i o a - - Cuba m p i R c u i a e b n n - - - v S a E d a l l o - r G m u a a l t a e- M ic e o x- l t a A a il n n l n e d d - s s a P p R m u a e n b a - - - , Peru g U u r a u y - V zu e e n l e a - Other lic Suri- lic of nam 1957 956 28 3 100 33 103 113 15 8 8 231 2 18 31 42 170 51 1958 ,099 40 3 148 52 51 166 19 10 12 293 6 23 31 52 142 53 1959 I 175 60 3 117 59 68 115 29 15 10 291 4 18 36 47 247 57 I960 ,356 121 4 225 73 80 26 16 22 14 343 8 23 44 57 234 66 J961—juiy . ... I 245 148 5 160 120 91 20 12 14 14 336 8 25 63 38 119 71 Aug 1,295 158 8 147 119 91 20 13 17 17 375 8 28 67 39 121 68 Sept . . . 1,347 160 5 180 117 90 19 12 15 16 385 6 30 68 39 134 72 Oct 1,412 171 5 233 116 87 19 12 14 17 385 8 30 71 45 124 74 Nov 1,450 179 5 230 119 99 19 14 14 19 395 6 32 69 53 125 73 Dec 1,504 192 6 186 127 125 19 13 17 20 423 13 32 73 55 129 74 1962 Jan 1,425 179 5 129 126 134 18 12 14 19 411 9 43 71 61 122 71 Feb 1,456 184 6 130 125 160 19 11 16 19 396 6 41 70 62 141 68 Mar ,496 205 5 137 120 160 18 10 14 18 432 9 41 71 60 127 69 Apr 1,520 203 5 161 120 156 18 12 15 18 433 9 52 74 61 117 68 May .565 204 5 173 139 163 17 14 9 17 427 9 59 80 61 117 71 June37 1,529 188 6 200 154 143 17 15 10 13 408 7 41 81 68 108 71 Julyp 1,529 182 6 199 164 147 18 15 11 14 393 7 37 83 63 111 80 3c. Asia and All Other Asia All other End of period Total H K o o n n g g India Iran Israel Japan ip P p h i i n l e - s T w a a i n - T la h n a d i- Other Total t A ra u l s ia - C o R o f n e t p g h . o e , A So fr u ic th a ( U E . g A y . p R t) . Other 1957 386 7 6 22 24 146 53 6 14 110 50 13 5 12 1 19 1958 435 6 4 27 23 179 67 6 13 111 69 13 4 21 3 29 1959 586 10 6 29 14 324 24 9 15 155 56 18 3 12 2 21 I960 1,052 9 9 33 24 806 19 7 24 121 69 28 3 11 3 24 1961 July .... 1 674 9 40 36 34 1,341 42 13 30 129 90 26 3 24 13 23 AUK I 626 10 10 36 31 1.335 37 12 29 128 98 32 3 24 13 25 Sept 1,581 10 8 35 31 ,288 38 10 32 129 84 27 3 19 13 22 Oct I 597 9 8 33 34 1,281 58 11 28 134 86 28 4 16 12 26 Nov 1,620 9 8 33 34 ,292 86 10 31 115 79 27 6 11 12 24 Dec 1,807 9 8 31 36 ,445 114 10 34 119 85 29 6 10 13 27 1962 Jan 1,892 10 10 30 36 [,515 133 11 34 114 92 31 6 11 14 31 Feb 1 964 9 10 28 37 ,605 118 11 33 113 89 31 3 11 13 31 Mar 2,051 10 11 28 41 1,698 114 9 33 108 94 32 3 11 16 32 Apr 2.046 12 13 30 39 1,688 108 9 33 114 101 33 4 11 21 32 May 2,029 11 12 32 43 1,678 107 6 30 110 103 33 4 11 22 33 Junep 2,009 11 14 24 39 1,680 91 7 30 113 118 35 4 11 24 44 July*7 1,975 11 14 24 38 1,681 76 6 30 94 125 34 4 12 26 49 See NOTE on preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U. S. 1245 4. CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE [In millions of dollars] Short-term Payable in dollars Payable in foreign currencies Long- End of period, or area term— Loans to— and country total1 Total Collections Deposits Total Banks and out- Other Total with Other i o n f s fi t c it ia u l - Others standing foreigners tions Total amounts outstanding 1957 1,174 2,199 2,052 627 303 423 699 147 132 15 1958 1,362 2,542 2,344 840 428 421 656 198 181 16 1959 1 545 2,623 2 406 848 460 516 582 217 203 15 I960 1,698 3,614 3,135 815 482 605 1,233 480 242 238 1961 July 1,906 4,189 3,777 843 525 718 1,691 412 229 183 Aug 1,836 4,122 3,712 756 537 719 1,700 410 232 178 Sept 1 864 4,156 3,708 776 564 697 1.671 448 266 182 Oct 1,847 4,347 3,799 780 600 683 1,736 548 337 211 Nov 1 880 4,384 3 835 828 625 682 ,700 549 329 220 Dec 2,020 4,700 4,115 1,014 618 694 1,789 586 385 200 1962 Jan . 2 046 4,570 4,113 1,003 617 708 1,785 458 287 171 Feb 2,088 4,688 4,246 1,088 623 715 1,819 443 288 154 Mar 2 134 4 868 4,399 1,214 644 732 1,809 470 304 166 Apr 2,086 4,849 4,393 1,236 679 726 1,752 456 271 184 May 2,080 4,819 4,324 1,304 570 711 1,740 495 293 202 Junep . .... 2 175 4 759 4 295 1,318 534 698 1,745 463 310 153 July*7 2,188 4,762 4,289 1,287 554 701 1,748 473 306 167 Area and country detail, May 31, 1962 Europe: Austria 44 6 5 2 * 2 * * Belgium 9 18 15 2 3 9 4 * Denmark 7 9 g 1 1 3 4 1 Finland . ... ... 4 26 26 * * 2 24 * * 24 55 47 9 7 13 18 8 8 * Germany, Fed. Rep. of 71 139 116 31 37 23 26 23 18 4 Greece 7 4 4 * * 4 * * Italy 28 37 35 4 6 18 7 3 3 * Netherlands 43 62 57 12 29 14 2 5 5 * Norway 172 23 22 2 1 2 17 2 1 1 Portugal 4 5 5 * 2 3 * * Spain * 16 15 6 2 3 4 1 1 * Sweden 46 19 17 3 * 6 8 1 1 Switzerland 6 68 45 14 18 7 7 22 11 11 Turkey * 13 13 10 * 3 * * * United Kingdom 12 158 49 27 4 14 5 109 95 14 Yugoslavia 2 5 5 3 * 1 2 * * Other 1 23 22 3 5 4 11 1 1 * Total 482 686 507 127 113 129 138 179 148 31 Canada 292 436 222 12 96 6 109 214 50 163 Latin America: Argentina 70 204 199 41 25 49 84 4 4 Bolivia * 5 5 * * 4 1 Brazil 263 173 129 26 50 18 34 45 45 Chile 23 139 139 26 25 23 64 * * Colombia 58 163 163 46 37 27 53 # # Cuba 1 17 17 1 16 * * * Dominican Republic 14 14 5 * 8 2 * El Salvador ... * 9 9 1 5 3 * Guatemala 11 17 17 4 1 7 5 * * Mexico 163 427 420 193 82 33 112 6 5 1 Netherlands Antilles and Surinam 8 9 9 2 5 3 * * Panama Rep of.. . . 21 59 59 6 41 8 4 * Peru 12 80 80 5 11 25 39 * * * 1 61 60 8 3 7 42 1 * Venezuela.. 209 117 116 15 22 62 17 1 1 * Other 82 71 71 7 16 30 19 * * Total 922 1,565 1,507 384 319 325 479 58 55 3 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1246 INTL. CAPITAL TRANSACTIONS OF THE U. S. 4. CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued [In millions of dollars] Short-term Payable in dollars Payable in foreign currencies Long- Area and term— Loans to— country total1 Total Collec- Total Ba i o n n f s f k i t s c i i t a a u l n - d Others sta t o i n o u d n t- i s ng Other Total f D or e w e p i i o g t n s h i e t r s s Other tions Area and country deta 1, May 31, 1962—Cont. Asia: Hong Kong . .. 3 11 11 5 2 3 1 : * 18 12 11 2 1 5 2 Indonesia 55 12 12 12 * * 11 32 32 4 * 19 9 * * • Israel. 26 43 43 4 4 4 31 Japan 29 1,678 1,640 571 13 144 911 38 36 2 Korea Rep of 5 5 5 * Philippines 61 107 107 93 3 1 10 * * * Taiwan 1 6 6 2 1 2 Thailand. 3 30 30 11 * 4 15 Other 9 92 92 61 5 22 4 * * * Total 217 2,029 1,990 767 28 210 985 39 37 2 All other: Australia 45 33 30 2 3 15 10 3 2 Congo Rep of the 39 4 4 2 2 South Africa 29 11 9 1 * 8 2 2 its U.A.R. (Egypt) 3 22 22 5 * 1 16 * * Other 51 33 33 5 10 15 2 * * Total. . 166 103 98 14 14 41 29 5 3 3 Total foreign countries 2,080 4,819 4,324 1,304 570 711 1,740 495 293 202 1 Mainly loans with an original maturity of more than 1 year. 5. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE [In millions of dollars] U. S. Govt. bonds & notes U. S. corporate securities1 Foreign bonds Foreign stocks Net purchases Period c P ha u s r e - s Sales Tota o l r sal F e o s reign c P ha u s r- es Sales c N h e a s t a s e l p e s u s o r- r c P ha u s r e - s Sales c N ha s e a s t e le p s s u o r- r c P ha u s r e - s Sales c N ha s e a t s e le p s s u o r r countries 1958 1,224 1,188 36 -237 1,759 1,798 -39 889 1,915 -1,026 467 804 — 336 1959 1,217 528 689 527 2,593 2,158 435 946 1,458 -512 566 804 -238 I960... 1,730 1,603 127 -98 2,419 2,167 252 883 1,445 -562 509 592 -83 1961 1,744 1,231 512 172 3,384 3,161 223 802 1,262 -460 596 966 -370 1961—July 170 127 43 43 194 212 — 18 50 120 -70 36 56 -20 Aug. . .. 340 177 163 48 246 254 -8 37 36 41 65 -24 Sept 22 26 —4 -5 217 216 1 225 228 — 3 41 59 -17 Oct..^... 120 56 65 64 245 232 14 52 77 -26 53 79 -26 Nov. 259 181 79 19 310 290 20 62 105 -42 55 94 -40 Dec. i 86 32 54 1 286 273 14 64 107 -43 59 140 -81 1962—Jan.. 30 58 -28 -19 257 220 37 93 91 2 58 80 -22 Feb 144 269 — 125 -62 238 208 30 106 160 —53 51 87 -36 Mar 142 272 -129 -49 268 234 34 95 145 -50 58 90 -32 Apr 104 140 -36 —24 233 211 22 79 114 — 36 57 67 -10 May...; 122 299 -176 -113 286 260 26 116 301 — 185 79 79 June3? 108 136 -28 -25 245 309 -64 55 135 -80 70 108 -37 Julyn 146 119 26 31 168 200 -32 64 89 -24 48 37 11 1 Includes small amounts of State and local govt, securities. See also NOTE to Table 1. NOTE.—Statistics include transactions of international organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U. S. 1247 6. NET PURCHASES OR SALES BY FOREIGNERS OF U. S. CORPORATE SECURITIES, BY TYPE OF SECURITY AND BY COUNTRY [In millions of dollars] Type of security Country or area Period Total1 Stocks Bonds Belgium France N la e e n r t d - h s - S l w a e n r i - t d z- 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 i m a c t a e in r- ot A he ll r1 1958 -39 -56 17 -3 2 -8 19 -1 1 10 -86 23 14 1959 435 363 73 5 40 31 254 15 35 379 -30 40 46 I960 252 202 50 5 38 1 171 -48 66 234 -45 36 28 1961 223 323 -99 4 21 20 166 -17 38 232 -112 44 58 1961 July -18 -5 -13 -1 -1 -2 -6 -1 -1 -12 -13 2 5 Aue -8 2 -10 -2 6 -7 4 * 1 -14 2 3 Sept .... 1 16 -15 1 2 2 2 2 3 12 -17 5 1 Oct 14 28 -15 * 2 1 24 -10 2 19 -7 1 1 Nov 20 25 c 1 4 5 25 -20 3 18 -8 2 8 Dec 14 15 -1 1 1 1 21 -25 5 3 * 4 7 1962—Jan 37 54 -17 * 5 -2 46 10 -3 55 -19 4 Feb 30 36 -6 1 5 -1 34 -2 * 37 -9 -1 3 Mar 34 20 14 2 1 16 -1 j 16 17 -1 3 Apr 22 21 1 * * * 18 15 * 34 -6 2 -8 May 26 28 -2 1 2 4 21 13 2 43 1 -10 -8 June35 -64 -65 -2 -2 2 -6 -29 1 -36 -14 -4 -9 -32 -13 -19 1 -1 6 -28 -1 -24 -13 * 4 1 Includes transactions of international organizations. NOTE.—Statistics include small amounts of State and local govt. securities. 7. NET PURCHASES OR SALES BY FOREIGNERS 8. DEPOSITS, U. S. GOVT. SECURITIES, AND GOLD HELD AT OF LONG-TERM FOREIGN SECURITIES, BY AREA F. R. BANKS FOR FOREIGNERS [In millions of dollars] [In millions of dollars] Period na In ti t o e n r- al f c T o t o r r o e i u t e i n a g s l - n Europe C a a d n a - A L i m a c t a i e n r- Asia o A th n e - r End of period Deposits U. S A . G ss o e v ts t . in c E u a s r to m d a y rked securities1 gold 1958 . -558 -805 -72 -543 5 -45 -150 1959 — 157 -593 -50 -443 11 -97 -15 1957 356 3,729 6,023 1960 -147 -498 -117 -196 -107 -41 -36 1958 272 3,695 8,538 1961 1 -832 -262 -318 -58 -121 -73 1959 345 4,477 9,861 1960 217 5,726 11,843 1961—July... 3 -93 12 -70 1 -6 -30 Aug... 6 -29 -10 -17 1 — 3 1 1961—Aug. 270 5,903 11,529 Sept... 4 -24 -3 6 3 -7 -22 Sept. 312 6,036 11,525 Oct... -5 -47 -17 -7 1 -26 1 Oct.. 249 5,988 11,568 Nov... 1 -83 -26 -15 -9 -15 -18 Nov. 198 5,793 11,840 Dec... n -116 -85 -28 1 -9 6 Dec. 279 6,006 11,905 1962—Jan.... * -19 -9 22 -1 -8 -23 1962—Jan.. 229 5,403 11,969 Feb... -96 6 -22 2 4 -11 33 Feb., 204 5,432 12,006 Mar... -28 -54 -57 8 * -5 1 Mar. 221 5,762 12,148 Apr... -22 -24 -23 2 1 -3 1 Apr. 230 5,551 12,230 May.. -11 -174 -31 -91 q -26 -23 May 223 5,754 12,308 JuneP. • -117 -66 -31 -18 -5 3 June 334 6,228 12,368 July*3.. 4 -10 9 8 -26 July. 248 6,026 12,678 ~* Aug. 168 6,407 12,689 1 U. S. Treasury bills, certificates of indebtedness, notes, and bonds; includes certificates of indebtedness payable in foreign currencies. NOTE.—Excludes deposits and U. S. Govt. securities held for international organizations. Earmarked gold is gold held for foreign and international accounts (for back figures, see "Gold" Section 14, Supplement to Banking and Monetary Statistics). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1248 INTL. CAPITAL TRANSACTIONS OF THE U. S. 9.—SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONFINANCIAL CONCERNS [End of period; in millions of dollars] Liabilities to foreigners Claims on foreigners 2d revised ser.1 3d revised ser.i 4th revised ser.1 2d revised ser.i 3d revised ser. 4th revised ser.1 Area and country 1961 1961 1961 1961 1961 1961 III III IV III III IV Europe: Austria 2 2 2 2 5 4 5 4 4 Belgium 28 28 25 25 11 35 35 17 25 Denmark 2 3 3 3 12 5 5 6 7 Finland 1 1 1 2 2 2 2 2 France 37 37 40 41 44 40 40 36 46 Germany, Fed. Rep. of. .. 40 40 40 40 40 68 68 74 78 Greece 2 2 2 2 2 3 3 2 3 Italy 23 23 30 30 32 35 36 34 47 Netherlands 68 68 48 49 17 22 22 23 28 Norway 6 6 9 9 7 7 7 7 10 Portugal 1 1 1 1 4 3 4 6 6 5 Spain 6 7 5 5 7 10 10 9 9 12 Sweden 8 8 6 6 6 26 19 19 18 19 19 Switzerland 47 47 39 39 39 25 19 19 15 16 18 Turkey 4 4 4 4 4 5 5 5 5 5 6 United Kingdom 107 109 110 110 111 279 225 226 189 190 200 Yugoslavia 1 1 2 2 3 2 2 2 2 2 2 Other 1 2 2 2 1 5 3 4 5 5 6 Total 331 385 388 370 371 366 526 506 511 455 461 519 Canada 40 43 49 45 45 49 327 506 524 617 619 576 Latin America: Argentina 10 36 Bolivia 3 Brazil 20 64 Chile 5 19 Colombia , 7 13 Cuba 2 5 Dominican Republic 3 El Salvador 3 Guatemala 5 Mexico 41 Neth. Antilles and Surinam 2 Panama, Rep. of 9 Peru 16 Uruguay 5 Venezuela 46 Other 24 Total 92 102 102 106 109 105 267 278 285 349 355 294 Asia: Hong Kong , 4 India 12 Indonesia 2 Iran 8 Israel 10 Japan 79 Korea, Rep. of. 1 Philippines 8 Taiwan 7 Thailand 3 Other 20 Total 109 114 114 122 122 114 120 117 118 127 129 154 All other: Australia 15 15 25 Congo, Rep. of the 2 South Africa 10 U.A.R. (Egypt) 10 Other 18 Total 29 31 29 30 44 51 56 56 64 International 1 Grand total 600 673 684 672 676 680 1,292 1,463 1,495 1,610 1,629 1,608 l Includes data for a number of firms reporting for the first time on mercial concerns in the United States. Data exclude claims held through Mar. 31, 1961 (2nd revised series), on June 30, 1961 (3rd revised series), U. S. banks, and intercompany accounts between U. S. companies and and on Sept. 30, 1961 (4th revised series). their foreign affiliates. .—Reported by exporters, importers, and industrial and com- See also NOTE to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. BALANCE OF PAYMENTS 1249 U. S. BALANCE OF PAYMENTS [In millions of dollars] 1959 1960 1961 1962P Item III IV III IV III IV Exports of goods and services, total1. 5,463 5,848 5,950 6,448 6,280 6,882 6,581 7,270 6,820 6,952 6,656 7,638 7,002 Merchandise 3,807 4,074 4,058 4,343 4,615 5,008 4,691 5,145 5,012 C4,922 4,673 5,308 5,019 Services2 1,656 1,774 1,892 2,105 1,665 1,874 1,890 2,125 1,808 2,030 1,983 2,330 1,983 Impoits of goods and services, total.. 5,401 5,964 6,228 5,944 5,740 6,045 6,018 5,385 5,276 5,595 6,078 5,974 5,873 Merchandise 3,594 3,879 3,847 3,974 3,830 3,858 3,551 3,484 3,400 3,458 3,682 3,974 3,945 Services , 1,027 1,296 1,595 1,216 1,139 1,429 1,670 1,179 1,106 1,381 1,697 1,278 1,173 Military expenditures 780 789 786 754 771 758 797 722 770 756 699 722 755 Balance on goods and services1 62 -116 -278 504 540 837 563 1,885 1,544 1,357 578 1,664 1,129 Unilateral transfers (net) -621 -581 -547 -675 -582 -620 -624 -680 -694 -706 -633 -696 -714 Private remittances and pensions.. -184 -187 -214 -206 -201 -202 -207 -232 -216 -218 -213 -231 -213 Government nonmilitary grants -437 -394 -333 -469 -381 -418 -417 -448 -478 -488 -420 -465 -501 U.S. long- and short-term capital (net) -494 3-1,032 -607 -595 -883 -1,131 -1,088 -1,885 -1,372 -540 -1,104 -1,863 -1,422 Private, total -412 -738 -557 -838 -653 -741 -943 -1,545 -989 -955 -637 -1,372 -981 Direct investment -287 -442 -224 -419 -303 -331 -327 -733 -441 -324 -341 -369 -315 Portfolio and short-term investment -125 -296 -163 -419 -350 -410 -616 -812 -548 -631 -296 -1,003 -666 Government -82 3-294 -220 243 -230 -390 -145 -340 -383 415 -467 -491 -441 Foreign capital and gold (net) 953 31,439 1,440 620 851 1,014 1,239 1,156 506 185 916 1,460 745 Increase in foreign short-term assets and Government securities. 785 3847 1,109 425 586 740 548 254 38 314 626 881 402 Increase in other foreign assets.. . 73 195 164 123 215 180 54 -19 122 201 20 123 153 Gold sales by United States 4 95 3397 167 72 50 94 637 921 346 -330 270 456 190 Errors and omissions 100 290 146 74 -100 -90 -476 16 -296 243 -565 262 1 Excludes military transfers under grants. 4 Beginning with the first quarter of 1961, net of change in convertible 2 Includes military transactions. currencies held by Exchange Stabilization Fund. 3 Excludes additional U.S. subscription to International Monetary Fund of $1,375 million, of which $344 million was transferred in gold NOTE.—Dept. of Commerce estimates. and $1,031 million in non-interest-bearing U.S. Govt. securities. OPEN MARKET RATES [Per cent per annum] Canada United Kingdom France Germany Netherlands Switzerland Month 3 T m r b e o i a l n s ls u th , r s y i D m a o d y n a - e y t y o 2 - 3 B a a a m c n n c c k o e e e n p s r t t s , h - * s 3 T r m b e i a o l s l n s u , 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 s a e i n r t s c s ' e D m a o d y n a - e y t y o 3 - Tr 6 d b e 0 a i a - y l s l 9 s s u 0 4 , ry D m a o d y n a - e y t y o 5 - 3 T r m b e i a o l s l n s u , t r h y s D m a d o y a n - y e to y - d P is r r i c a v o t a e u t n e t 1959—Dec 5.02 4.30 3.72 3.61 2.85 2.00 4.07 3.75 3.56 2.52 1.50 2.00 1960—Dec 3.53 3.16 4.64 4.44 3.88 3.12 3.70 3.75 4.31 1.51 1.13 2.00 1961—July 2.61 2.55 4.72 5.10 3.98 3.38 3.65 2.25 2.63 .88 .75 2.00 Aug 2.48 2.29 6.91 6.71 5.64 5.00 3.52 2.25 2.44 .84 .75 2.00 Sept 2.42 2.17 6.84 6.60 5.71 5.00 3.57 2.25 2.94 1.00 .95 2.00 Oct 2.53 2.20 6.31 5.94 5.42 4.56 3.60 2.00 2.44 1.68 1.50 2.00 Nov 2.42 2.24 5.67 5.41 4.89 4.02 3.52 2.00 2.81 1.74 1.33 2.00 Dec 2.82 2.37 5.61 5.35 4.83 4.00 3.58 2.00 3.06 1.32 1.11 2.00 1962—Jan 3.08 2.69 5.35 4.78 4.00 3.51 1.88 2.00 1.31 1.35 2.00 Feb 3.11 2.63 5.65 5.41 4.72 4.00 3.56 1.88 2.06 1.02 .80 2.00 Mar 3.10 2.81 5.13 4.86 4.32 3.46 3.65 2.00 3.13 1.81 1.59 2.00 Apr 3.08 3.12 4.50 4.26 3.70 2.93 3.93 2.13 2.75 2.13 1.75 2.00 May 3.36 3.00 4.14 3.94 3.24 2.50 3.98 2.13 2.56 2.46 1.75 2.00 June 4.48 3.55 3.98 3.80 3.30 2.50 3.59 2.25 3.31 2.32 1.69 2.00 July 5.47 4.89 4.09 3.90 3.33 2.50 3.66 2.38 2.94 2.21 1.78 2.00 1 Based on average yield of weekly tenders during month. NOTE.—For description of rates and back data, see "International 2 Based on weekly averages of daily closing rates. Finance," Section 15 of Supplement to Banking and Monetary Statistics, 3 Rate shown is on private securities. 1962. 4 Rate in effect at end of month. 5 Based on average of lowest and highest quotation during month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1250 MONEY RATES CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS [Per cent per annum] Rate as of Changes during the last 12 months Aug. 31,1961 Rate Country 1961 1962 A a u s g . o f 31, Per Month 1962 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Argentina 6.0 Dec. 1957 6.0 Austria 5 0 Mar. 1960 5.0 4.75 Aug. 1961 4.5 4.25 4.0 3.75 3.75 Brazil 10 0 Apr. 1958 10.0 3.0 Nov. 1957 4.0 4.0 2.51 Aug. 1961 2.84 2.75 2.75 3.24 3.35 3.42 3.37 3.32 3.77 16.0 6.0 Ceylon 4 0 Aug. 1960 4.0 Chiie2 15.88 July 1961 15.27 i4 62 14.62 5 0 Aug. 1959 5.0 Costa Rica 3.0 Apr. 1939 3.0 Cuba 6.0 Jan. 1960 6.0 Denmark................. 6.5 May 1961 6.5 5.0 Nov. 1956 5.0 3.0 Nov. 1952 5 0 5.0 El Salvador 6.0 June 1961 6.0 6.75 Mar. 1959 8.0 7.0 7.0 France ... • • • 3.5 Oct. 1960 3.5 3.0 May 1961 3.0 6 0 Nov. 1960 6.0 Honduras ^ ... 2.0 Jan. 1953 3 0 3.0 Iceland 9.0 Dec. 1960 9.0 India4 4.0 May 1957 4.0 3.0 Apr. 1946 3.0 Iran • • 6 0 Nov. 1960 6.0 6.88 Aug. 1961 6.75 5.94 5.56 5.44 4.70 4.31 5 4.09 4.09 Israel 6.0 Feb. 1955 6.0 Italy 3 5 June 1958 3.5 6.94 July 1961 7.3 7.3 4.5 June 1942 4.5 Netherlands 3.5 Nov. 1959 4 0 4.0 New Zealand. * 7.0 Mar. 1961 7.0 6.0 Apr. 1954 6.0 3.5 Feb. 1955 3.5 4 0 Jan. 1959 4.0 Peru 9.5 Nov. 1959 9.5 Philippine Republic 6 3.0 May 1961 6.0 6.0 Portugal 2 0 Jan. 1944 2.0 South Africa 5.0 May 1961 4.5 4 0 4.0 Spain 4.0 June 1961 4.0 Sweden 5.0 Jan. 1960 4 5 4 0 4.0 Switzerland 2.0 Feb. 1959 2.0 Thailand 7.0 Feb. 1945 7.0 7.5 May 1961 7.5 United Kingdom 7.0 July 1961 6.5 6.0 75.0 4.5 4.5 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some of continue to be .25 of 1 per cent above latest weekly Treasury bill tender these countries follow: average rate but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de- 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction: the average rate charged by banks in the previous half year. Old redis- Brazil—% per cent for secured paper and 4 per cent for certain agricultural counts remain subiect to old rates provided their amount is reduced by paper; one-eighth each month beginning May 1, 1959, but the rates are raised by 1.5 per cent for each month in which the reduction does not occur. Colombia—-3.5 per cent for agricultural and industrial development 3 Rate shown is for advances only paper of up to 150 days, 3 per cent for economic development paper 4 Rate apnlies to advances against commercial paper as well as against o an f d u p em to p lo 5 y y e e e a p rs a , p a e n r; d 2 per cent for specific small business, cooperative govt. securities and other eligible paper. 5 Effective June 30, 1962. On June 1, 1962 the rate had been changed Costa Rica—5 per cent for paper related to commercial transactions to 4.06 per cent. (rate shown is for agricultural and industrial paper); 6 Beginning with June 1, 1962, the rediscount rate for commercial Cuba—5.5. per cent for sugar loans and 5 per cent for loans secured by bank loans financing the purchase of surolus agricultural commodity national public securities; under U. S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, Ecuador—6 per cent for bank acceptances for commercial purooses; 1962, the rediscount rate for commercial bank financing of 9 categories Indonesia—various rates depending on type of paper, collateral, comof development loans was reduced from 6 to 3 per cent. modity involved, etc.; 7 On Mar. 8, 1962 the discount rate had been reduced to 5.5 per cent. Japan—penalty rates (exceeding the basic rate shown) for borrowings from the Central bank in excess of an individual bank's quota; NOTE.—Rates shown are mainly those at which the central bank either Peru—8 per cent for agricultural industrial and mining paoer; and discounts or makes advances against eligible commercial paoer and/or Venezuela—4 per cent for rediscounts of certain agricultural paper and govt. securities for commercial banks or brokers. For countries with for advances against government bonds or gold and 5 per cent on admore than one rate applicable to such discounts or advances, the rate vances against securities of Venezuelan companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES 1251 FOREIGN EXCHANGE RATES [In cents per unit of foreign currency] Argentina (peso) Aus- Period tralia Austria Belgium Canada Ceylon Denmark Finland France (pound) (schilling) (franc) (dollar) (rupee) (krone) (markka) (franc) Official Free 1956. 5.556 2.835 222.76 3.8580 2.0030 101.600 20.946 14.482 .43540 1957. 5.556 2.506 222.57 3.8539 1.9906 104.291 20.913 14.482 .39946 .2376 1958. 5.556 2.207 223.88 3.8536 2.0044 103.025 21.049 14.482 .31181 .2374 1959. 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .31149 .2038 1960. 1.2026 223.71 3.8461 2.0053 103.122 21.048 14.505 .31118 120.389 1961. 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .31098 20.384 1961—Aug.. 1.2104 223.34 3.8592 2.0080 96.933 21.012 14.484 .31089 20.352 Sept.. 1.2061 224.08 3.8634 2.0084 97.003 21.076 14.515 .31088 20.331 Oct... 1.2056 224.33 3.8660 2.0085 97.039 21.094 14.521 .31085 20.337 Nov.. 1.2057 224.30 3.8648 2.0085 96.532 21.089 14.520 .31085 20.364 Dec. 1.2080 223.88 3.8671 2.0086 95.885 21.058 14.541 .31084 20.399 1962—Jan.. 1.2056 223.98 3.8647 2.0086 95.678 21.051 14.527 .31085 20.403 Feb.. 1.2054 224.27 3.8643 2.0086 95.335 21.039 14.522 .31072 20.402 Mar.. 2 1.2081 224.32 3.8659 2.0086 95.277 21.058 14.534 .31074 20.405 Apr.. 31.0444 224.22 3.8690 2.0080 95.232 21.059 14.510 .31070 20.405 May. .9600 224.07 3.9698 2.0089 4 92.394 21.057 14.496 .31070 20.405 June. .8601 223.77 3.8700 2.0098 91.911 21.039 14.511 .31066 20.405 July. 5.7851 223.63 3.8700 2.0103 92.654 21.036 14.483 .31063 20.405 Aug.. 223.41 3.8700 2.0105 92.111 21.021 14.458 .31063 20.405 Period ( 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 re o l u a n n d d ) ( I l t i a r l a y ) 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 ( e g N r u l e i a l t n d h d e - s r) Z (p e N o a u e la w n n d d ) 1956 23.786 20.934 279.57 .16003 .27791 32.582 8.0056 26.113 276.80 1957 23.798 20.910 279.32 .16003 .27791 32 527 8.0056 26.170 276.56 1958 23.848 21.048 280.98 .16006 .27791 32 767 8.0056 26 418 278.19 1959 23.926 21.031 280.88 .16099 .27781 32 857 8.0056 26.492 278.10 1960 23.976 20.968 280.76 .16104 .27785 32 817 8.0056 26.513 277.98 1961 24.903 20.980 280.22 .16099 .27690 32.659 8.0056 7 27.555 277.45 1961—Aug. 25.046 20.998 280.29 .16109 .27623 32.604 8.0056 27.771 277.52 Sept. 25.019 21.067 281.22 .16108 .27622 32.716 8.0056 27.676 278.44 Oct. 25.016 21.089 281.54 .16108 .27623 32.752 8.0056 27.731 278.75 Nov. 24.987 21.076 281.49 .16108 .27624 32.742 8.0056 27.766 278.71 Dec.. 25.004 21.038 280.96 .16111 .27624 32.734 8.0056 27.776 278.18 1962—Jan.. 25.028 21.045 281.10 .16108 .27624 32.777 8.0056 27.730 278.31 Feb.. 25.011 21.078 281.46 .16100 .27627 32.810 8.0056 27.631 278.67 Mar. 25.012 21.093 281.53 .16100 .27640 32.800 8.0056 27.687 278.74 25.006 21.075 281.40 .16107 .27623 32.766 8.0056 21.112 278.61 M^y] 25.009 21.066 281.21 .16108 .27625 32.759 8.0056 27.821 278.43 June. 25.039 21.030 280.83 .16109 .27628 32.691 8.0056 27 806 278.05 July. 25.084 21.019 280.66 .16110 .27628 32.713 8.0056 27.821 277.88 Aug. 25.020 21.008 280.38 .16110 .27631 32.746 8.0056 27.742 277.61 Period 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 e o p l ) - ic (e P s o g c r u a t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (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 p K d o n i o u n i m t n g e d - d ) 1956., 14.008 49.676 3.4900 278.52 19.333 23.334 279.57 1957., 14.008 49.693 3.4900 278.28 19.331 23.330 279.32 1958., 14.008 49.695 3.4900 279.93 2.3810 19.328 23.328 280.98 1959., 14.028 49.721 3.4967 279.83 2.0579 19.324 23.142 280.88 1960. 14.018 49.770 3.4937 279.71 .6635 19.349 23.152 280.76 1961., 14.000 3.4909 279.48 139.57 .6643 19.353 23.151 280.22 1961—AUK 14.004 3.4875 139.62 .6644 19.366 23.163 280.29 Sept 14.041 3.4941 140.09 .6644 19.329 23.167 281.22 Oct 14.051 3.5013 140.24 .6644 19.351 23.133 281.54 Nov 14.048 3.4990 140.22 .6644 19.347 23.133 281.49 Dec 14.039 3.5020 139.96 .6649 19.346 23.169 280.96 1962—Jan 14.027 3.5000 140.02 .6650 19.348 23.158 281.10 Feb 14.037 3.4995 140.20 .6650 19.388 23.111 281.46 Mar 14.037 3.5014 140.24 .6651 19.408 23.042 281.53 Apr. 14.033 3.5032 140.17 .6651 19.424 23.011 281.40 May 14.022 3.5050 140.08 .6651 19.428 23.098 281.21 June 14 0t3 3.5OU 139.89 .6651 19 436 23 172 280.83 July 14.005 3.5000 139.80 .6651 19.428 23.162 2S0.66 Aug 13.994 3.4996 139.67 .6651 19.432 23.136 280.38 1 A new franc equal to 100 old francs was introduced on Jan. 1, 1960. 7 Effective Mar. 7, 1961, the par value of the guilder was changed from 2 Based on quotations through Mar. 19,1962. 3.80 to 3.62 guilders per U. S. dollar. 3 Based on quotations beginning with Apr. 4, 1962. 4 Effective May 2, 1962, the par value of the Canadian dollar was set at NOTE.—Averages of certified noon buying rates in New York for 92.5 U. S. cents. cable transfers. For description of rates and back data, see "International 5 Based on quotations through July 10, 1962. Finance," Section 15 of Supplement to Banking and Monetary Statistics, « Effective Mar. 5,1961, the par valluuee ooff t*h e d'eutsche mark was changed 1962. from 4.20 to 4.00 marks 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 A. L. MILLS, JR. CHAS. N. SHEPARDSON G. H. KING, JR. J. L. ROBERTSON GEORGE W. MITCHELL RALPH A. YOUNG, Adviser to the Board CHARLES MOLONY, Assistant to the Board ROBERT L. CARDON, Legislative Counsel CLARKE L. FAUVER, Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF EXAMINATIONS MERRITT SHERMAN, Secretary FREDERIC SOLOMON, Director KENNETH A. KENYON, Assistant Secretary ROBERT C. MASTERS, Associate Director ELIZABETH L. CARMICHAEL, Assistant Secretary GLENN M. GOODMAN, Assistant Director LEGAL DIVISION HENRY BENNER, Assistant Director HOWARD H. HACKLEY, General Counsel JAMES C. SMITH, Assistant Director DAVID B. HEXTER, Assistant General Counsel BRENTON C. LEAVITT, Assistant Director G. HOWLAND CHASE, Assistant General Counsel ANDREW N. THOMPSON, Assistant Director THOMAS J. O'CONNELL, Assistant General LLOYD M. SCHAEFFER, Chief Federal Reserve Counsel Examiner JEROME W. SHAY, Assistant General Counsel WILSON L. HOOFF, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS DIVISION OF PERSONNEL ADMINISTRATION GUY E. NOYES, Director FRANK R. GARFIELD, Adviser EDWIN J. JOHNSON, Director ROBERT C. HOLLAND, Adviser H. FRANKLIN SPRECHER, JR., Assistant Director ALBERT R. KOCH, Adviser KENNETH B. WILLIAMS, Adviser DANIEL H. BRILL, Associate Adviser LEWIS N. DEMBITZ, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES DIVISION OF INTERNATIONAL FINANCE JOSEPH E. KELLEHER, Director HARRY E. KERN, Assistant Director RALPH A. YOUNG, Director J. HERBERT FURTH, Adviser A. B. HERSEY, Adviser ROBERT L. SAMMONS, Adviser OFFICE OF THE CONTROLLER SAMUEL I. KATZ, Associate Adviser RALPH C. WOOD, Associate Adviser J. J. CONNELL, Controller SAMPSON H. BASS, Assistant Controller DIVISION OF BANK OPERATIONS JOHN R. FARRELL, Director GERALD M. CONKLING, Assistant Director OFFICE OF DEFENSE PLANNING M. B. DANIELS, Assistant Director JOHN N. KILEY, JR., Assistant Director INNIS D. HARRIS, Coordinator 1252 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 1253 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON GEORGE H. ELLIS GEORGE W. MITCHELL MALCOLM BRYAN W. D. FULTON J. L. ROBERTSON FREDERICK L. DEMING G. H. KING, JR. CHAS. N. SHEPARDSON A. L. MILLS, JR. RALPH A. YOUNG, Secretary MERRITT SHERMAN, Assistant Secretary J. HERBERT FURTH, Associate Economist KENNETH A. KENYON, Assistant Secretary GEORGE GARVY, Associate Economist HOWARD H. HACKLEY, General Counsel W. BRADDOCK HICKMAN, Associate Economist DAVID B. HEXTER, Assistant General Counsel ROBERT C. HOLLAND, Associate Economist GUY E. NOYES, Economist ALBERT R. KOCH, Associate Economist HARRY BRANDT, Associate Economist FRANKLIN L. PARSONS, Associate Economist DANIEL H. BRILL, Associate Economist PARKER B. WILLIS, Associate Economist ROBERT W. STONE, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account Federal Advisory Council isory OSTROM ENDERS, BOSTON KENNETH V. ZWIENER, CHICAGO GEORGE A. MURPHY, NEW YORK, President SIDNEY MAESTRE, ST. LOUIS HOWARD C. PETERSEN, PHILADELPHIA JOHN A. MOORHEAD, MINNEAPOLIS REUBEN B. HAYS, CLEVELAND, Vice President M. L. BREIDENTHAL, KANSAS CITY ROBERT B. HOBBS, RICHMOND I. F. BETTS, DALLAS J. FlNLEY McRAE, ATLANTA ELLIOTT MCALLISTER, SAN FRANCISCO HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Federal Reserve Banks and Branches Chairmen and Deputy Chairmen of Boards of Directors FEDERAL RESERVE CHAIRMAN AND DEPUTY CHAIRMAN BANK OF— FEDERAL RESERVE AGENT BOSTON NILS Y. WESSELL ERWIN D. CANHAM NEW YORK PHILIP D. REED JAMES DECAMP WISE PHILADELPHIA WALTER E. HOADLEY DAVID C. BEVAN CLEVELAND JOSEPH B. HALL JOSEPH H. THOMPSON RICHMOND ALONZO G. DECKER, JR. EDWIN HYDE ATLANTA JACK TARVER HENRY G. CHALKLEY, JR. CHICAGO ROBERT P. BRIGGS JAMES H. HILTON ST. LOUIS PIERRE B. MCBRIDE J. H. LONGWELL MINNEAPOLIS ATHERTON BEAN JUDSON BEMIS KANSAS CITY HOMER A. SCOTT OLIVER S. WILLHAM DALLAS ROBERT O. ANDERSON LAMAR FLEMING, JR. SAN FRANCISCO F. B. WHITMAN JOHN D. FREDERICKS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1254 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 Presidents and Vice Presidents Federal Vice Presidents Reserve President (Vice Presidents in charge of branches are Bank of First Vice President listed in lower section of this page) Boston George H. Ellis D. Harry Angney Benjamin F. Groot Charles E. Turner E. O. Latham Ansgar R. Berge O. A. Schlaikjer G. Gordon Watts New York Alfred Hayes Harold A. Bilby Marcus A. Harris H. L. Sanford William F. Treiber Charles A. Coombs Herbert H. Kimball Robert W. Stone Howard D. Crosse Robert G. Rouse Todd G. Tiebout Walter H. Rozell, Jr. Philadelphia Karl R. Bopp Joseph R. Campbell Norman G. Dash James V. Vergari Robert N. Hilkert Wallace M. Catanach David P. Eastburn Richard G. Wilgus Murdoch K. Goodwin Cleveland W. D. Fulton Roger R. Clouse W. Braddock Hickman John E. Orin Donald S. Thompson E. A. Fink Martin Morrison Paul C. Stetzelberger Richmond Edward A. Wayne Robert P. Black Upton S. Martin Benjamin U. Ratchford Aubrey N. Heflin J. G. Dickerson, Jr. John L. Nosker R. E. Sanders, Jr. Joseph M. Nowlan Atlanta Malcolm Bryan J. E. Denmark L. B. Raisty Brown R. Rawlings Harold T. Patterson J, E. McCorvey Charles T. Taylor Chicago C. J. Scanlon Ernest T. Baughman L. H. Jones H. J. Newman Hugh J. Helmer A. M. Gustavson C. T. Laibly Leland M. Ross Paul C. Hodge Richard A. Moffatt Harry S. Schultz St. Louis (Vacancy) Marvin L. Bennett Dale M. Lewis Joseph C. Wotawa Darryl R. Francis Homer Jones Howard H. Weigel Orville O. Wyrick Minneapolis Frederick L. Deming Kyle K. Fossum M. B. Holmgren F. L. Parsons A. W. Mills C. W. Groth A. W. Johnson M. H. Strothman, Jr. H. G. McConnell Kansas City George H. Clay John T. Boysen J. R. Euans Clarence W. Tow Henry O. Koppang C. A. Cravens F. H. Larson J. T. White L. F. Mills Dallas Watrous H. Irons Howard Carrithers Ralph T. Green Thomas W. Plant Harry A. Shuford James L. Cauthen Thomas A. Hardin W. M. Pritchett P. E. Coldwell G. R. Murff Thomas R. Sullivan James A. Parker San Francisco... Eliot J. Swan J. L. Barbonchielli E. H. Galvin John A. O'Kane H. E. Hemmings Paul W. Cavan A. B. Merritt C. H. Watkins1 1 Assigned to Los Angeles Branch. Vice Presidents in Charge of Branches of Federal Reserve Banks Federal Reserve Federal Reserve Bank of Branch Vice Presidents Bank of Branch Vice Presidents New York Buffalo I. B. Smith Minneapolis.... Helena C. A. Van Nice Cleveland Cincinnati F. O. Kiel Kansas City.... Denver Cecil Puckett Pittsburgh Clyde Harrell Oklahoma City H. W. Pritz Omaha P. A. Debus Richmond Baltimore D. F. Hagner Charlotte E. F. MacDonald Atlanta Birmingham H. C. Frazer Dallas El Paso Roy E. Bohne Jacksonville T. A. Lanford Houston J. L. Cook Nashville R. E. Moody, Jr. San Antonio Carl H. Moore New Orleans M. L. Shaw Chicago Detroit R. A. Swaney San Francisco... Los Angeles W. F. Volberg St. Louis Little Rock Fred Burton Portland J. A. Randall Louisville Donald L. Henry Salt Lake City A. L. Price Memphis E. Francis DeVos Seattle E. R. Barglebaugh 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 783-86 of the June 1962 BULLETIN. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND 1960. 112 pp. Individual books $1.00 each; FUNCTIONS. 1961. 238 pp. set of 3 books $2.50. ANNUAL REPORT OF THE BOARD OF GOVERNORS INDUSTRIAL PRODUCTION—1959 REVISION. 1960. OF THE FEDERAL RESERVE SYSTEM. 229 pp. $1.00 per copy; in quantities of 10 or more for single shipment, $.85 each. FEDERAL RESERVE BULLETIN. Monthly. Subscription prices: (1) $6.00 per annum or $.60 THE FEDERAL FUNDS MARKET—A Study by a Federal Reserve System Committee. 1959. Ill a copy in the United States and its possespp. $1.00 per copy; in quantities of 10 or sions, Bolivia, Canada, Chile, Columbia, Costa more for single shipment, $.85 each. Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, DEBITS AND CLEARINGS STATISTICS AND THEIR Mexico, Nicaragua, Panama, Paraguay, Peru, Use (rev. ed.). 1959. 144 pp. $1.00 per El Salvador, Uruguay, and Venezuela. (2) Else- copy; in quantities of 10 or more for single where, $7.00 per annum or $.70 per copy. shipment, $.85 each. (3) In quantities of 10 or more copies sent to ALL-BANK STATISTICS, 1896-1955. Pt. I, U. S. one address in the United States, $5.00 per Summary. Pt. II, Summaries by States and annum or $.50 per copy per month. other areas. 1959. 1,229 pp. $4.00. FEDERAL RESERVE CHART BOOK ON FINANCIAL THE FEDERAL RESERVE ACT, as amended through AND BUSINESS STATISTICS. Monthly. Annual October 1, 1961, with an Appendix containing subscription includes one issue of Historical provisions of certain other statutes affecting Chart Book. Subscription prices: (1) $6.00 the Reserve System. 386 pp. $1.25. per annum or $.60 per copy in the United FLOW OF FUNDS IN THE UNITED STATES, 1939-53. States and the countries listed above. (2) Else- 1955. 390 pp. $2.75. where, $7.00 per annum or $.70 per copy. FLOW OF FUNDS/SAVING ACCOUNTS, 1946-60. (3) In quantities of 10 or more of same issue Supp. 5. 1961. for single shipment, $.50 each. BANKING AND MONETARY STATISTICS. 1943. 979 HISTORICAL CHART BOOK. Issued annually in pp. $1.50. September. Annual subscription to monthly SUPPLEMENT TO BANKING AND MONETARY STAchart book includes one issue of the Historical. TISTICS. Sec. 10. Member Bank Reserves and Prices: (1) $.60 each in the United States and Related Items. 1962. 64 pp. $.50. Sec. 14. the countries listed above. (2) Elsewhere, $.70 Gold. 24 pp. $.35. Sec. 15. International each. (3) In quantities of 10 or more for single Finance. 1962. 92 pp. $.65. shipment, $.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF INDUSTRIAL PRODUCTION CHART BOOK. 1961. 210 THE FEDERAL RESERVE SYSTEM. pp. $1.75 per copy; in quantities of 10 or RULES OF ORGANIZATION AND PROCEDURE—BOARD more for single shipment, $1.50 each. OF GOVERNORS OF THE FEDERAL RESERVE SYS- TREASURY-FEDERAL RESERVE STUDY OF THE GOV- TEM. 1962. 40 pp. ERNMENT SECURITIES MARKET. Pt. I. 1959. PUBLISHED INTERPRETATIONS of the Board, as of 108 pp. Pt. II. 1960. 159 pp. Pt. III. January 1, 1961. $2.50. 1255 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1256 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 REPRINTS SURVEY OF FINANCE COMPANIES, MID-1960. Oct. 1961. 21 pp. (Also, similar reprint from Apr. (From Federal Reserve BULLETIN unless preceded by an asterisk) 1957 BULL.) LIQUIDITY AND PUBLIC POLICY. Oct. 1961. 17 pp. THE MONETARY SYSTEM OF THE UNITED STATES. Feb. 1953. 16 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. 1961. 15 pp. INFLUENCE OF CREDIT AND MONETARY MEASURES REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. ON ECONOMIC STABILITY. Mar. 1953. 16 pp. 1961. 3 pp. FEDERAL FINANCIAL MEASURES FOR ECONOMIC THE MEANS OF ECONOMIC PROGRESS. Feb. 1962. STABILITY. May 1953. 7 pp. 9 pp. A FLOW-OF-FUNDS SYSTEM OF NATIONAL AC- MONETARY EXPANSION DURING 1961. Feb. 1962. COUNTS, ANNUAL ESTIMATES, 1939-54. Oct. 7 pp. 1955. 40 pp. INTEREST RATES ON TIME DEPOSITS, Mid-January SURVEYS OF BANK LOANS FOR COMMERCIAL AND INDUSTRIAL PURPOSES. Business Loans of Mem- 1962. Feb. 1962. 5 pp. ber Banks. Apr. 1956. 14 pp. Credit Lines CAPITAL FLOWS AND INTERNATIONAL PAYMENTS. and Minimum Balance Requirements. June Mar. 1962. 8 pp. 1956. 7 pp. Member Bank Lending to Small MONETARY FUND RESOURCES AND THE INTER- Business, 1955-57. Apr. 1958. 19 pp. Mem- NATIONAL PAYMENTS SYSTEM. Mar. 1962. 4 pp. ber Bank Term Lending to Business, 1955-57. BANKING AND MONETARY STATISTICS, 1961. Se- Apr. 1959. 16 pp. Security Pledged on Busi- lected series of banking and monetary statistics ness Loans at Member Banks. Sept. 1959. 16 for 1961 only. Feb., Mar., and May 1962. pp. 14 pp. OPEN MARKET OPERATIONS IN LONG-TERM SE- QUARTERLY SURVEY OF CONSUMER BUYING IN- CURITIES. Nov. 1958. 15 pp. TENTIONS. August 1962. 6 pp. (Also, similar *PART I, ALL-BANK STATISTICS, 1896-1955. Re- reprints from BULLS, for Dec. 1960, Mar., May., print of the U. S. Summary containing a de- Aug., and Nov. 1961, Mar. and May 1962.) scription of revised statistics for all banks in GROWTH IN INSTITUTIONAL SAVINGS. May 1962. the United States, by class of bank, together 9 pp. with revised statistics. Apr. 1959. 94 pp. SURVEY OF COMMON TRUST FUNDS, 1961. May A QUARTERLY PRESENTATION OF FLOW OF FUNDS, 1962. 7 pp. (Also, similar reprint from May SAVING, AND INVESTMENT. Aug. 1959. 49 pp. 1961 BULL.) REVISED INDUSTRIAL PRODUCTION INDEX. Dec. MONETARY POLICY, BANK CREDIT, AND MONEY. 1959. 24 pp. July 1962. 8 pp. REVISED SERIES FOR SEASONALLY ADJUSTED SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. MONEY SUPPLY. Feb. 1960. 4 pp. July 1962. 6 pp. CONSUMER BUYING INTENTIONS AND QUARTERLY REVISION OF MONTHLY DEPARTMENT STORE IN- SURVEY OF CONSUMER BUYING INTENTIONS. DEXES. July 1962. 6 pp. Combined reprint. Sept. 1960. 31 pp. ECONOMIC AND CREDIT CONDITIONS. Aug. 1962. IMPLEMENTATION OF THE 1959 ACT ON RESERVE 5 pp. REQUIREMENTS. Dec. 1960. 6 pp. REVISION OF MONEY SUPPLY SERIES. Aug. 1962. SMALL BUSINESS FINANCING: CORPORATE MANU- 11 pp. FACTURERS. Jan. 1961. 15 pp. STATISTICS ON THE GOVERNMENT SECURITIES REVISION OF WEEKLY DEPARTMENT STORE SALES Index. Aug. 1962. 3 pp. MARKET. Apr. 1961. 8 pp. OWNERSHIP OF DEMAND DEPOSITS. Apr. 1961. THE BALANCE SHEET OF AGRICULTURE, 1962. 3 pp. AUG. 1962. 10 pp. CLASSIFICATION SYSTEM FOR SAVINGS AND OTHER INTEREST RATES IN THE CURRENT CYCLE. Sept. TIME DEPOSITS. May 1961. 2 pp. (Also, 1962. 9 pp. similar reprint from July 1960 BULL.) INTEREST RATES AND MONETARY POLICY. Sept. CAPITAL MARKETS IN 1961. Sept. 1961. 7 pp. 1962. 28 pp. U. S. BALANCE OF PAYMENTS IN 1961. Oct. 1961. TREASURY AND FEDERAL RESERVE FOREIGN EX- 7 pp. CHANGE OPERATIONS. Sept. 1962. 16 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Statistical Tables Acceptances, bankers', 1196, 1198 Deposits—Continued Agricultural loans of commercial banks, 1190, 1192 Federal Reserve Banks, 1180, 1247 Assets and liabilties {See also Foreign liabilities and Postal savings, 1179, 1185 claims): Discount rates, 1178, 1250 Banks and the monetary system, consoli- Discounts and advances by Federal Reserve dated, 1185 Banks, 1174, 1180, 1182 Corporate, current, 1208 Dividends, corporate, 1207, 1208 Domestic banks, by classes, 1186, 1190, Dollar assets, foreign, 1239, 1247 1192, 1198 Federal Reserve Banks, 1180 Earnings and hours, manufacturing indus- Automobiles: tries, 1222, 1225 Consumer instalment credit, 1212, 1213, 1214 Employment, 1222, 1224, 1225 Production index, 1216, 1219 Farm mortgage loans, 1209, 1210 Bankers' balances, 1191, 1193 Federal finance: {See also Foreign liabilities and claims) Cash transactions, 1200 Banks and the monetary system, consolidated state- Receipts and expenditures, 1201 ment, 1185 Treasurer's balance, 1200 Bonds {See also U. S. Govt. securities): Federal home loan banks, loans, etc., 1211 New issues, 1205, 1206, 1208 Federal Housing Administration, loans, etc., 1209. Prices and yields, 1196, 1197 1210, 1211 Brokers and dealers in securities, bank Federal National Mortgage Association, loans to, 1190, 1192 loans, etc., 1211 Business expenditures on new plant and equip- Federal Reserve Banks: ment, 1208 Condition statement, 1180 Business indexes, 1222 U. S. Govt. securities held by, 1174, 1180, Business loans {See Commercial and industrial loans) 1182, 1202, 1203 Federal Reserve credit, 1174, 1180, 1182 Capital accounts: Federal Reserve notes, 1180, 1183 Banks, by classes, 1186, 1191, 1194 Finance company paper, 1196, 1198 Federal Reserve Banks, 1180 Financial institutions, loans to, 1190, 1192 Carloadings, 1222 Float, 1174 Central banks, foreign, 1236, 1250 Flow of funds, saving and financial flows, 1232 Coins, circulation of, 1183 Foreign central banks, 1236, 1250 Commercial banks: Foreign currencies, convertible, holdings by U. S. Assets and liabilities, 1186, 1189, 1190 monetary authorities, 1180, 1182, 1238 Consumer loans held, by type, 1213 Foreign deposits in U. S. banks, 1174, 1180, Number, by classes, 1186 1185, 1191, 1194, 1247 Real estate mortgages held, by type, 1209 Foreign exchange rates, 1251 Commercial and industrial loans: Foreign liabilities and claims: Commercial banks, 1190 Banks, 1240, 1242, 1245, 1247 Weekly reporting member banks, 1192, 1195 Nonfinancial concerns, 1248 Commercial paper, 1196, 1198 Foreign trade, 1227 Condition statements {See Assets and liabilities) Construction, 1222, 1223 Gold: Consumer credit: Earmarked, 1238 Instalment credit, 1212, 1213, 1214, 1215 Net purchases by U. S., 1238 Major parts, 1212, 1214 Production, 1237 Noninstalment credit, by holder, 1213 Reserves of central banks and governments, 1236 Consumer price indexes, 1222, 1228 Reserves of foreign countries and international Consumption expenditures, 1230, 1231 institutions, 1239 Corporate sales, profits, taxes, and divi- Stock, 1174, 1185, 1238 dends, 1207, 1208 Gold certificates, 1180, 1183 Corporate security issues, 1206, 1208 Govt. debt {See U. S. Govt. securities) Corporate security prices and yields, 1196, 1197 Gross national product, 1230, 1231 Cost of living {See Consumer price indexes) Currency in circulation, 1174, 1183, 1184 Hours and earnings, manufacturing indus- Customer credit, stock market, 1197, 1234 tries, 1222, 1225 Debits to deposit accounts, 1182 Housing starts, 1223 Demand deposits: Adjusted, banks and the monetary system, 1185 Industrial production index, 1216, 1222 Adjusted, commercial banks, 1182, 1184, 1191 Instalment loans, 1212, 1213, 1214, 1215 Banks, by classes, 1179, 1186, 1194 Insurance companies, 1199, 1202, 1203, 1210 Turnover of 1182 Insured commercial banks, 1188, 1190 Type of holder, at commercial banks, 1191 Interbank deposits, 1182, 1186, 1191 Department stores: Interest rates: Merchandising data, 1227 Bond yields, 1196 Sales and stocks, 1222, 1226 Business loans by banks, 1195 Deposits {See also specific types of deposits): Federal Reserve Bank discount rates, 1178 Adjusted, and currency, 1185 Foreign countries, 1249, 1250 Banks, by classes, 1179, 1186, 1191, 1194, 1198 Open market, 1196, 1249 1257 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1258 FEDERAL RESERVE BULLETIN • SEPTEMBER 1962 Interest rates—Continued Reserves—Continued Stock yields, 1196 Member banks, 1174, 1176, 1179, 1191, 1193 Time deposits, maximum rates, 1179 Residential mortgage loans, 1209, 1210, 1211 International capital transactions of the U. S., 1240 International institutions, 1236, 1238, 1239 Sales finance companies, consumer loans of, 1212, Inventories, 1230 1213, 1215 Investments {See also specific types of investments): Saving: Banks, by classes, 1186, 1190, 1193, 1198 Flow-of-funds series, 1232 Commercial banks, 1189 National income series, 1231 Federal Reserve Banks, 1180, 1182 Savings deposits {See Time deposits) Life insurance companies, 1199 Savings institutions, principal assets, 1198, 1199 Savings and loan associations, 1199 Savings and loan associations, 1199, 1203, 1210 Securities, international transactions, 1246, 1247 Labor force, 1224 Security issues, 1205, 1206, 1208 Loans {See also specific types of loans): Silver coin and silver certificates, 1183 Banks, by classes, 1186, 1190, 1192, 1198 State member banks, 1188 Commercial banks, 1189 State and municipal securities: Federal Reserve Banks, 1174, 1180, 1182 New issues, 1205, 1206 Insurance companies, 1199, 1210 Prices and yields, 1196, 1197 Savings and loan associations, 1199, 1210 States and political subdivisions: Loans insured or guaranteed, 1209, 1210, 1211 Deposits of, 1191, 1194 Holdings of U. S. Govt. securities, 1202 Manufactures, production index, 1216, 1222 Ownership of obligations of, 1190, 1198, 1199 Margin requirements, 1179 Stock market credit, 1197, 1234 Member banks: Stocks: Assets and liabilities, by classes, 1186, 1190 New issues, 1206 Borrowings at Federal Reserve Banks, 1176, Prices and yields, 1196, 1197 1180, 1194 Deposits, by classes, 1179 Tax receipts, Federal, 1201 Number, by classes, 1187 Time deposits, 1179, 1184, 1185, 1186, 1191, 1194 Reserve requirements, by classes, 1179 Treasurer's account balance, 1200 Reserves and related items, 1174 Treasury cash, 1174, 1183, 1185 Weekly reporting series, 1192 Treasury currency, 1174, 1183, 1185 Mining, production index, 1216, 1222 Treasury deposits, 1174, 1180, 1200 Money rates {See Interest rates) Money supply and related data, 1184 Unemployment, 1224 Mortgages {See Real estate loans) U. S. balance of payments, 1249 Mutual savings banks, 1185, 1186, 1188, 1198, U. S. Govt. balances: 1202, 1203, 1209 Commercial bank holdings, by classes, 1191, 1194 Consolidated monetary statement, 1185 National banks, 1188 Treasury deposits at Federal Reserve National income, 1230, 1231 Banks, 1174, 1180, 1200 National security expenditures, 1201, 1230 U. S. Govt. securities: Nonmember banks, 1180, 1188, 1190, 1191 Bank holdings, 1185, 1186, 1190, 1193, 1198, 1202, 1203 Payrolls, manufacturing, index, 1222 Dealer transactions, positions, and financ- Personal income, 1231 ing, 1204 Postal Savings System, 1179, 1185 Federal Reserve Bank holdings, 1174, 1180, Prices: 1182, 1202, 1203 Consumer, 1222, 1228 Foreign and international holdings, 1180, 1239 Security, 1197 International transactions, 1246 Wholesale commodity, 1222, 1228 New issues, gross proceeds, 1206 Production, 1216, 1222 Outstanding, by type of security, 1202, Profits, corporate, 1207, 1208 1203, 1205 Real estate loans: Ownership of, 1202, 1203 Banks, by classes, 1190, 1192, 1198, 1209 Prices and yields, 1196, 1197 Type of mortgage holder, 1209, 1210, 1211 United States notes, outstanding and in circula- Type of property mortgaged, 1209, 1210, 1211 tion, 1183 Reserve requirements, member banks, 1179 Utilities, production index, 1216, 1222 Reserves: Vault cash, 1174, 1179, 1191 Commercial banks, 1191 Federal Reserve Banks, 1180 Veterans Administration, loans, etc., 1209, 1210, 1211 Foreign central banks and governments, 1236 Foreign countries and international institu- Weekly reporting member banks, 1192 tions, 1239 Yields {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES (p THE FEDERAL RESERVE SYSTEM Q) C? HAWAII Legend 1 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