Federal Reserve Bulletin, 1962-12

FEDERAL RESERVE December 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. "] r ^ - " •• - — -- • • -- Contents Construction and Mortgage Markets 1549 A Sectoral Analysis of Velocity 1557 A New Look at the Farm Debt Picture 1571 Law Department 1589 Announcements 1625 National Summary of Business Conditions 1633 Guide to Tabular Presentation 1636 Financial and Business Statistics, U. S. (Contents on p. 1637) 1638 ! International Financial Statistics (Contents on p. 1699) 1700 ! Board of Governors and Staff 1716 Open Market Committee and Staff; Federal Advisory Council 1717 Federal Reserve Banks and Branches 1717 j Federal Reserve Board Publications 1719 Index to Statistical Tables 1723 Map of Federal Reserve System Inside back cover Volume 48 Number 12 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

Construction and Mortgage Markets CONSTRUCTION ACTIVITY has fluctuated at a record level this autumn after faltering early in 1962. Residential building continues to dominate the total, but its rise in the general recovery that began last year has been less pronounced than in previous postwar expansions. Most of the gain in residential construction this year has been in apartment building. New highs in this type of construction and in nonresidential building raised total construction activity in the June-November period to a seasonally adjusted annual rate of more than $62 billion. Supplementary funds voted for most types of Federal, State, and local construction and the increased momentum from earlier appropriations for the urban renewal and related programs have benefited both private NOTE.—All data at seasonally adjusted annual rates. Census and public activity. And changes in tax Bureau data beginning with 1959 reflect new series on housing starts and on farm construction. Data before 1959, Bureau of regulations have provided further stimulus Labor Statistics. Residential construction includes public. Data for recent months are preliminary; latest month shown, Nov. to industrial, commercial, and apartment building. tion among builders has increased and so On November 20 the President issued an has the pressure on their profit margins. executive order prohibiting discrimination Record amounts of savings have been against minorities in new Federally assisted flowing into mortgage lending institutions, housing. Housing starts so financed have ac- reflecting rising consumer incomes and the counted for about a fourth of the private higher interest rates paid on savings this nonfarm total in recent years, compared year. This inflow of funds and the need of with a record one-half in 1955. banks for larger gross earnings to cover Prices of both new and existing houses higher rates on savings has brought an have leveled off or declined this year, but abundance of credit for most types of mortgages. As a result, downward pressure on land costs and wages for construction workmortgage interest rates has continued, and ers have continued to rise. In view of these other mortgage terms have also been liberaldevelopments and of the limited growth in ized further. demand for single-family houses, competi- 1549 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1550 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Mortgage debt has expanded sharply, impetus from urban renewal and related mainly in conventional loans. In adding to Government programs. Virtually all major their portfolios, institutional lenders turned cities are engaged in one or more urban reincreasingly to mortgages on apartment and newal projects. Privately financed residencommercial buildings and to refinancing tial developments account for the largest mortgages on existing properties. They also proportion of these, but more than a third increased their purchases from the Federal involve public street, sidewalk, and related National Mortgage Association. improvements, and the remainder—nearly three-tenths—involve industrial and com- NONRESIDENTIAL BUILDING mercial construction. Nonresidential construction activity reached RESIDENTIAL BUILDING a new high by midyear and advanced further this autumn, as the preceding chart shows. Nonfarm housing starts—through October In the first quarter it had fluctuated some- —were at a seasonally adjusted annual rate what below its 1961 peaks. The rise this year of 1.4 million units, compared with 1.3 milhas reflected mainly a further advance in lion in 1961 and 1.5 million in 1959. The private business construction through the rise this year reflected only a moderate infirst three quarters of the year and some crease in single-family units from the restrengthening in public construction after duced year-earlier level but a further expan- May. Through November, outlays for total sion, of two-fifths, in multifamily starts. nonresidential construction accounted for 58 Altogether, multifamily units accounted for per cent of total construction activity com- 29 per cent of total starts in the first 9 pared with 54 per cent in the previous ex- months. This was nearly double the proporpansion in 1959. tion in 1959 when single-family starts were Private nonresidential building has aver- at a high, but below the 32 per cent share aged 5 per cent above the improved level of back in 1927 when multifamily starts 1961. There was a further increase for office reached their earlier peak. buildings and stores and for public utilities. Except for a pause during the general Industrial building and farm construction recession of 1960, multifamily starts have changed little. risen without interruption since 1956. Even In the public sector, which accounted for so, as the chart shows, they did not exceed nearly three-tenths of total construction, the their prewar peak until 1961. In contrast, year-to-year rise was 4 per cent. Highway single-family starts, which have fluctuated construction has lagged behind earlier ex- less widely than multifamily starts, reached pectations, but it averaged 8 per cent higher new highs early in the postwar period. than last year through November. Construc- The level of multifamily starts in 1962 is tion of sewer and water systems gained more estimated at about 410,000 units, including than a tenth. Activity on military facilities public starts. This is more than double the declined, along with work on public hospi- average in 1950 when the first postwar extals and other service enterprises, and school pansion in housing and apartment activity construction outlays changed little. ended. Then, FHA assistance accounted for Part of the increase in both private and three-fourths of all apartment starts, compublic activity stemmed from the continued pared with only 15 per cent in 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 1551 and other factors were much less favorable NONFARM STARTS ris. farther; to separate living, and three generations of ••Ittfanily biildiig at historic high Ratio scoi. a family were more apt to share the same Thousands of units household. In addition, the number of persons now TOTAL UNITS reaching marriageable age or independent household status is also increasing rapidly. Because of this trend, household formation is rising again, in contrast with the situation existing in the late 1920's. Other factors. Partly related to the recent demographic shifts, the advantages of home ownership have come to appear more mixed to consumers than in earlier postwar years. Exemption of a homeowner's property taxes and mortgage interest payments from his taxable income has continued to be an attraction, both in and beyond the cities, as have also the liberalized mortgage terms NOTE.—Data include public starts. From Census Bureau be- available this year. But property taxes have ginning 1959, Bureau of Labor Statistics for earlier period. Single-family units include those for two families; multifamily, risen markedly, and suburban areas have (hree and over. Year 1962 partly estimated. become more congested and difficult to Demographic factors. The factors under- reach. In addition, the softer price situation lying the increase in apartment activity are for houses as the number of existing houses complex and varied. Basically, they relate has expanded has reduced the prospect for to a transitional shift in the composition of capital gains on resale that was a special the population which began to emerge to- inducement to earlier purchasers. It has also ward the end of the 1950's. Population has made mobility appear more costly. This is continued to expand at a rate of about 3 a factor of great importance to potential million a year since then, but the number buyers, for about a fifth of the population in the 25-44 year age group—which usually moves each year. accounts for most first purchases of single- For renters, the possibility of choice has family houses—has been virtually stable and widened as the supply of apartments has will remain so for several more years. This grown. This increased supply has reflected development is a legacy of the low birth greater recognition by builders of actual and rate of the 1930's. potential population requirements and the At the same time, the number of persons need for more intensive use of land and the 65 years and older has continued to in- stimulus from urban renewal and related crease. Currently, this group accounts for Federal projects. In addition, apartment over 9 per cent of the population. This ownership on a condominium, as well as a compares with 8 per cent in the early 1950's cooperative, basis has begun to grow. and only 5 per cent in the 1920's. In the Demand for ownership of income-producearlier period, moreover, retirement income ing properties by relatively new real estate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1552 FEDERAL RESERVE BULLETIN • DECEMBER 1962 investment trusts and other forms of syndicates as well as by individuals has also con- RENTAL VACANCY RATES below recent peaks, both nationally tinued to rise. This increase has been largely in response to the tax advantages—for both new and old properties—incorporated in ex- OUTSIDE METROPOLITAN isting capital gains legislation and in the provision for accelerated depreciation allowances which was voted by Congress as part METROPOLITAN of a broader program in 1954. At that time, as the chart on the preceding page shows, rental housing activity had been declining andbyregion for a number of years. 12 WEST/S. As/ \ Multifamily housing has not usually been / \~ - 10 considered an attractive type of investment N for the average investor. Because of this and the obvious need for better, more diversified, ^ \ (' C N E O N R TR TH AL and possibly less expensive housing, these _/ tax advantages have tended to be viewed as NORTHEAST necessary. However, the general emphasis in 1 1 1 1 recent years on luxury apartments owned on 1958 1960 1962 relatively low equities and requiring periodic resale to realize full tax advantages has NOTE.—Census Bureau data, based on sample surveys of vacant, not dilapidated units available for rent. Latest period evoked concern in some quarters. Moreover, shown, third quarter. to the extent that apartment building is politan areas than in nonmetropolitan areas; predicated on expectations of population in both, vacancies involved predominantly shifts within specific localities, which may prewar buildings. Regionally, the differences not materialize on schedule, it has been in vacancy rates are striking. In the third recognized that there is. danger of excesses quarter, rates declined in the West and and of impairment of market values. South—the "growth" areas where vacancy Vacancy rates. Vacancies in properties rates have been highest—while the rate in available for owner occupancy have re- the Northeast continued relatively low. Only mained low this year. While promotional in the North Central States, where the secand other types of concessions for new apart- ond-quarter drop had been particularly ments have apparently increased, rent as large, was there an appreciable rise. measured in the consumer price index has continued to rise nationally, and rental va- MORTGAGE TERMS cancy rates have edged down from the ad- Interest rates on mortgages have continued vanced 8.1 per cent average in the second under considerable downward pressure this quarter of 1961. The third-quarter rates year, in sharp contrast with developments in shown in the chart are clearly high by ear- earlier postwar expansions. Secondary marlier postwar standards, when shortages were ket yields on 25-year, 5V4 per cent mortacute, but well below prewar peaks. gages insured by FHA declined to 5.53 per Vacancy rates continued lower in metro- cent in November, the lowest level since the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 1553 autumn of 1958. Conventional interest rates also edged lower, and fees and commissions INTEREST RATES AND YIELDS coitliie to decide —both of which are particularly sensitive to Per cenl per yeor market influences—have averaged appreciably less than a year earlier. MOITOAOtS: There has also been a down-drift in offer- CONVENTIONAL ing yields on new issues of corporate bonds. The supply of such bonds—and of other investment opportunities—has been below earlier expectations. As a result, the margin between mortgage and bond yields has been largely maintained, as the chart shows. A significant factor in the shift toward \ > NEW CORPORATE 1ONDS Lf\ / A a a basis lower rates has been the record flow of savings to financial institutions. Savings inflows were stimulated further this year by vigorous competition for funds by commercial banks 1956 19SS 1962 following a change in Federal Reserve regulations and associated action by the Federal NOTE.—Mortgage data based on FHA field office opinions for market areas of insuring office cities. For conventional, average interest rates for first mortgages on new and existing Deposit Insurance Corporation, effective on houses through Mar. 1960 and on new houses thereafter. For FHA-insured, weighted average of private secondary market January 1. Maximum permitted interest prices of certain new house mortgages converted to annual yield by Federal Reserve; dashed sections of line indicate perates on savings deposits held for less than riods of adjustment to changes in contractual interest rate. Corporate bonds, weighted average of offering yields on public a year and on time deposits payable in 6 to issues, adjusted to Aaa basis, computed by First National City Bank of New York. Latest figures shown, Nov. 12 months were raised from 3 to 3Vi per cent, and to 4 per cent on deposits held or involved. Other lending institutions also maturing in a year or more. The response took advantage of the lower downpayments was broader and quicker than in 1957, the and longer maturities permitted by the last time a similar change was made. Housing Act and related regulations of The inflow to savings and loan associa- 1961. This was countered, in part, by a tions and other financial institutions also tightening of credit-screening procedures by increased appreciably this year. To meet the FHA and VA for prospective borrowers special mortgage demand situations, more- on Government-underwritten mortgages, in over, the associations resorted to a record reaction to the 1961 increase in foreclosures. volume of borrowing from Federal home Defaults and foreclosures on real estate loan banks as well. properties continued to be a problem in Both to offset the downward pressure on 1962, compared with the earlier postwar mortgage rates and to increase lending vol- experiences. Foreclosures on single-family ume, other mortgage terms were liberalized properties edged higher through the first further this year. Savings and loan associa- three quarters. There was some decline in tions in the first half of the year more than foreclosures of conventional mortgages, tripled their volume of "high ratio" loans. however, and the total remained well below Such loans cover between 80 and 90 per prewar highs both in the aggregate and as cent of the appraised value of the property a percentage of loans outstanding. As with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1554 FEDERAL RESERVE BULLETIN • DECEMBER 1962 vacancies, the size of the problem has varied Usually, the transfer of older properties widely by area because of differences in pre- to new owners raises the amount of existing vailing employment conditions, the move- debt, even without a liberalization in terms. ment of home prices, the incidence of mar- This year, the increased emphasis on higher ginal borrowers in the market for Govern- loan-to-value ratios and on higher appraisal ment-underwritten mortgages, and other values has augmented this tendency. Some factors. homeowners also took advantage of the easier terms to meet other financial needs MORTGAGE DEBT through mortgage refinancing. Total mortgage debt outstanding on all For mortgage recordings of $20,000 or types of property expanded at a record rate less, the average loan in mid-1962 was 5 through the third quarter of this year to a per cent larger than a year earlier and 8 level of about $243 billion. In both the per cent above the level in mid-1959. And, second and third quarters, the rise appears as terms have lengthened since mid-1961, to have been well above $6 billion. For the amortization rates have tended downward. first three quarters combined, the expansion Other mortgage debt. Because of a lack of approximated $18 billion. This was nearly data, particularly for individuals and other $5 billion more than in the same period of noninstitutional lenders, there is no ade- 1961 and over $3 billion more than in the quate basis for estimating debt on apartsame period in 1959. ment properties separately from that on Home-mortgage debt. Debt on 1- to 4- other income-producing properties. For family properties reached $164 billion by multifamily and commercial properties comthe end of the third quarter. The relative bined, mortgage debt has expanded very increase this year was less than for income- sharply this year, as the chart shows. The producing properties. At a seasonally ad- rate of increase in mortgage debt on farm justed annual rate of about $16 billion dol- properties has also accelerated. Taken tolars, however, the rate in the second quarter gether, such properties accounted for almost was somewhat larger than during the cor- two-fifths of the rise in total mortgage debt, responding period in 1959 when activity in compared with three-tenths of the rise in the new houses was appreciably greater. same period of 1959 and a fifth in 1950. Mortgage lending on new single-family The shift toward lending on apartment housing clearly has been the underlying de- and other income-producing properties was terminant of the long-term growth in total accomplished mainly by greater activity on home mortgage debt. But it has become the part of the lending institutions with the less dominant as the stock of existing struc- necessary resources, contacts, and specialtures has increased and growth has occurred ized personnel. These include life insurance in purchases, modernization, and refinancing companies and mutual savings banks, which of existing houses. For example, through the have a long tradition in such investments, first 9 months of this year, used properties and, increasingly, the large commercial accounted for more than 70 per cent of the banks and the largest of the savings and total number of applications for FHA-in- loan associations. sured mortgages on single-family houses, as Legislation to facilitate lending on inagainst only 50 per cent in 1955. come-producing real estate was passed in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSTRUCTION AND MORTGAGE MARKETS 1555 October. This would allow Federal savings only $1.1 billion in the corresponding peand loan associations to place an appreci- riod of 1961. Mutual savings banks also ably larger proportion of their assets in loans added appreciably more to their holdings on apartment and related properties than the than in other recent years. 20 per cent permitted earlier. For life insurance companies, however, At about the same time, the proportion the increase in mortgage holdings was only of time deposits that national banks may moderately above 1959 levels and less than use for all types of mortgages was raised in the same period in 1961. In part, the from 60 to 70 per cent, and the maturity smaller gain appears to have reflected the maximum on residential construction loans inability of mortgage companies to generate was increased from 9 to 18 months. a sufficient volume to satisfy all lender de- Unlike 1- to 4-family houses, large apart- mands. These firms specialize in originating ment complexes are also financed by "non- and servicing mortgages for life insurance mortgage" means, including direct borrow- companies and others. Savings and loan asing, private placements of bonds, and sale sociations and other major mortgage origof securities in the open market. inators were also competing actively for available mortgages. Some additional com- MORTGAGE HOLDERS mercial banks moved to acquire and develop While savings and loan associations con- the resources and personnel needed to meet tinued to show the largest absolute rise in their own and other mortgage-investment mortgage holdings, the increased activity of requirements. commercial banks in the mortgage market Federal agency holdings rose less than was striking. In the first three quarters of $300 million in the first three quarters of 1962, these banks added $3 billion to their the year, compared with a rise of $1.8 billion mortgage holdings, compared with just over in the same period of 1959. This difference $2 billion in the same period in 1959 and reflected mainly heavy sales by FNMA MORTGAGE HOLDINGS rise at (initial iastitatioas; Billions of dollars DEBT oa iacoae-prodiciig properties 80 ap faster thai oa boom 140 Billion of dollars INCOME-PRODUCING 100 PROPERTIES - 60 HOMES | | FEDERAL AGENCIES | Jon, • Sfjpt. 1956 1958 1960 1962 1956 1958 1960 1962 1950 1955 1959 1962 NOTE.—Mortgage debt outstanding on home and income prop- holdings shown for financial institutions and Federal agencies, erties largely estimated by Federal Reserve from reports of and also in income property debt in bar chart. Data for 1962 Federal and private agencies. Farm debt is included in total are largely preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1556 FEDERAL RESERVE BULLETIN • DECEMBER 1962 in the secondary market through early 1962 ventional mortgages continued to account in response to demand from commercial for around four-fifths of total recordings, as banks and others seeking to build up mort- in 1961; this compares with about threegage portfolios. Sales turned down after fourths in 1959 and two-thirds in 1955. The April when FNMA raised its sales prices a reduced importance of Government-underhalf point in an attempt to steer private dewritten mortgages in recent years has remand toward mortgages on new homes. flected, in part, the increasingly liberal terms Purchases by FNMA have also been at and quicker service available for convena low level in recent months. In late Novemtional mortgages. And this year the operaber, FNMA announced it would no longer tions of FHA were hampered to some extent limit its purchases to mortgages offered within 4 months of the date they had been by budgetary problems. insured or guaranteed. It also reduced the To improve its services, FHA recently stock purchase requirement for sellers from established offices in six cities to provide 2 to 1 per cent of the face value of the mort- technical assistance on multifamily projects. gages involved. During the year, the VA It also began a separate processing system took advantage of the sellers' market with for mortgages on existing houses. While a series of offerings—largely successful—of FHA has increasingly emphasized special mortgages acquired in earlier foreclosures. programs and lower cost loans, uncertainty about the nature and impact of the expected GOVERNMENT-UNDERWRITTEN MORTGAGES Federal order for open occupancy in Fed- While the supply of Government-under- erally assisted housing may have been a written mortgages increased this year, con- limiting factor through most of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Sectoral Analysis of Velocity by PAUL F. McGOULDRICK ANY AGGREGATE MEASURE of the veloc- benchmark estimates of velocity rates reveal ity of money is a composite of the different much larger differences between the corpoturnover rates of millions of consumers and rate and consumer sectors than between businesses. Consequently, such a measure large and small corporations or among incan change because of shifts in transactions dustries. Thus, an analysis of combined con- (or money holdings) among these consum- sumer and corporate velocity may suggest ers and businesses as well as because indi- much of what a complete analysis of all the viduals decide to raise or lower money turn- nonfinancial sectors would reveal. over rates. By setting up In addition, the sector reasonably homogeneous approach to velocity may STAFF PAPERS—In addisectors for these transactor develop refinements in and tion to its regular contents, units, one can assess the modifications of current the Federal Reserve Bulletin relative contribution of from time to time includes spe- theories on the determithese two causes to trends cial papers on economic and nants of money holdings. and cycles in the turnover financial subjects. These pa- Partly because of a lack of pers, prepared originally for of money that is held by the adequate data, such theothe information of the Board nonbank public. ries have tended to be exof Governors by individuals on Because of a lack of re- its staff, are selected for pub- tremely aggregative and to liable data, it is not pos- lication because of their gen- explain all demands for sible at present to provide eral interest. The authors are money by motives approresponsible for the analyses velocity measures for all priate exclusively or mainly and conclusions set forth. nonfinancial sectors of the to consumers. American economy. But Some limitations of the consumer and corporate nonfinancial trans- sector approach are also apparent. Like actions, taken together, comprise most non- total velocity, sector velocity rates focus on financial transactions made by the private the need for money to lubricate flows of sector. In recent years consumers and corpo- transactions. Other data are needed to ilrations have held about two-thirds of all luminate asset demands for money. Statismoney (currency and demand deposits) not tically, sector velocity estimates are not so held by commercial banks and other finan- firmly based as those for income velocity cial institutions, and their share of changes (gross national product or national income in money holdings has normally been even divided by the money supply) or turnover larger. Moreover, money turnover rates of of demand deposits (debits to demand dethe two sectors differ so much from each posits divided by the average level of these other that small alterations in shares of deposits). Thus, the series presented here transactions (or money balances) can and must be used with full awareness of the haze do explain a large proportion of observed of statistical error surrounding the transacchanges in the rate at which the nonbank tions and money components and of the difpublic turns over its money balances. And ferences between this and other velocity 1557 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1558 FEDERAL RESERVE BULLETIN • DECEMBER 1962 concepts in their coverage of transactions nonfinancial expenditures will be designated and money. as transactions. Also, the consumer and corporate sec- There are substantial differences between tors are themselves aggregates of economic this and other velocity concepts in much units with differences in behavior patterns wider current use: income velocity and turnand in the opportunities open to them. For over of demand deposits. The anatomy of example, large companies and wealthy con- the three is shown in Table 1. All transacsumers have access to an array of money substitutes such as Treasury bills and open TABLE 1 market commercial paper that small cor- COMPONENTS OF THREE VELOCITY MEASURES porations and the bulk of consumers cannot Non- Demand or do not want to use. The self-employed Component financial Income deposit velocity velocity turnover have different patterns of money needs from those of workers and employees. And the Money numerator Currency Included Included Excluded money needs of the former may also be Demand deposits *. . . . Included satisfied in part by their business balances.1 Tran t s o a r c 2 tions denomina- Check transactions: The interplay between price expectations Goods and services:3 Final and sector velocity rates is not discussed. Intermediate Excluded Financial4 Excluded Also not covered (because of lack of data) Cu G rr o e o n d c s y a tr n a d n s s a e c rv ti i o c n es s : : 3 are the effects of different functional uses of I F n i t n e a r l mediate Included I E n x c c l l u u d d e e d d Excluded Financial Excluded money. But to the extent that functional and sector differences in money turnover rates 1 Excludes interbank and U. S. Government deposits. 2 For definitions of intermediate and final goods and services, sec coincide, intersector shifts in transactions text. 3 Does not include used capital goods, used consumer durable tend to mirror the underlying shifts in types goods, and used residential housing. 4 Includes exchanges of checks for currency. of transactions and the way in which the tions effected with money are classified into latter affect aggregate velocity. three types: the goods and services counted in the national income and product accounts NONFINANCIAL VELOCITY AND (final purchases), goods and services not OTHER VELOCITY CONCEPTS so counted (intermediate transactions), and The velocity concept used in this article is exchanges of money for titles to wealth termed nonfinancial velocity. It represents (financial transactions). ("Corporations" all purchases of goods and services (except means only nonfinancial corporations.) used items) divided by holdings of cur- Conceptual issues. Of these three types of rency and demand deposits. Thus, its num- velocity, turnover of demand deposits is erator does not include outlays to acquire presently impossible to estimate by sector. financial assets, regardless of whether such The choice is thus between income velocity outlays arise from new savings or portfolio or nonfinancial velocity, and the latter seems turnover. In the following sections, the word preferable for sector analysis. There are two velocity will represent the nonfinancial ve- reasons for this. First, the velocity concept locity concept unless stated otherwise, and relates to the transactions uses of money and precautionary purposes related to these, and *It should be stressed that consumer money balances, as defined in the flow of funds accounts and flows of intermediate goods and services used in this paper, exclude the estimated money balneed money balances to sustain them quite ances of unincorporated businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A SECTORAL ANALYSIS OF VELOCITY 1559 as much as do flows of those goods and consist of the acquisition and sale of these services counted in the gross national prod- near-money assets. uct. For example, why should purchases of Transactions in financial assets other than oil to heat houses be counted as transactions claims and short-term marketable securities but not purchases of oil to heat stores and do give rise to some demands for money factories? 2 balances. But there are substantial reasons Secondly, nearly all nonfinancial outlays for excluding these transactions from the by consumers are counted in GNP, while numerator of velocity, even if one cannot less than a third of total corporate pay- take the logical next step and eliminate fiments for goods and services appear in the nancial money balances from the denominational income and product accounts as nator.3 Because of the variety and conwages and salaries, rent, interest, and divi- venience of near-money assets, it appears dends. Thus, a GNP-type numerator for likely that very small average money balvelocity would distort the relationship be- ances are technically required per unit of tween the velocity rates of the two sectors as transactions in stocks, bonds, and other less well as the levels of these rates. liquid financial assets, although this ratio On its own merits, the concept of non- may be expected to vary somewhat with financial velocity also has much to recom- market conditions and expectations.4 mend it. In studying the demand for money, Hence, most financial balances held by it is very useful to distinguish between trans- corporations and consumers probably meet actions that create and transactions that re- precautionary and other asset needs of their duce needs for money. All or virtually all holders. And such needs have only a tenunonfinancial outlays fall in the first category, ous connection with the volume of financial while a large share of financial transactions transactions. These financial balances may fall in the second. That share consists of the even rise when these transactions fall; for exchange of money for near-money assets example, stock or bond market traders may (fixed value redeemable claims plus short- hold more money than usual while they wait term marketable securities). If more of these for unfavorable markets to change. By conassets are held, less money is needed for pre- trast, it would appear very unlikely that a cautionary and other nontransactions pur- falling volume of nonfinancial transactions poses, because these assets are highly liquid, would generate by itself a rise in demands divisible, and stable in value. Hence, a rise for money. in purchases of such assets tends to reduce 3 In the context of this section, money balances are needs for money instead of increasing them. defined in terms of their functional use, e.g. support- Nearly all corporate and a substantial part ing financial trading or supporting the manufacture of goods. Of course, many firms and individuals actually of consumer transactions in financial assets use the same balance for all purposes. 4 An unpublished study by Dick Netzer estimates gross financial flows by type of financial asset traded, 2J. M. Keynes expressed much the same view on on a one-time basis. Comparison of these with money the usefulness of the income velocity concept. "It is as holdings of nonbank financial sectors indicates very if [one] were to divide the passenger miles travelled high money turnover rates for these sectors. While in an hour by passengers in trams by the aggregate individuals do not have access to the economies of number of passengers in trams and trains and to call scale enjoyed by nonbank financial firms, the disthe result *a velocity.'" (A Treatise on Money, 1930, cretionary nature of their financial transactions per- Vol. 2, p. 24.) In the Treatise, Keynes analyzed veloc- mits them to invest temporarily in near-money assets ity in much the same sectoral terms as is done in this those funds earmarked for eventual purchase of other paper. types of assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1560 FEDERAL RESERVE BULLETIN • DECEMBER 1962 It would still be better if one could re- velocity denominator. And this removal is move both financial transactions and finan- accomplished by the nonfinancial velocity cial money balances from the components concept. of velocity, reserving them for separate Details of the series. A technical appendix, study. But for study of the relationship be- describing sources and methods of compiltween transactions and the needs for money ing and seasonally adjusting nonfinancial that transactions generate, the removal of transactions and money balances by sector financial transactions from the velocity is available from the author on request. numerator appears more essential than re- Transactions were estimated on a cash moval of financial money balances from the rather than an accrual basis, and they TABLE 2 NONFINANCIAL TRANSACTIONS, MONEY HOLDINGS, AND VELOCITY OF CORPORATIONS AND CONSUMERS, 1952-62 Nonfinancial transactions Money holdings Velocity (billions of dollars) (billions of dollars) (ratios) Quarter Combined Corporate Consumer Combined Corporate Consumer Combined Corporate Consumer 1952 I . . .. 766.7 529.9 236.8 II 759.9 523.2 236.6 80.26 28.06 52.20 9.47 18.65 4.53 HI 761.1 525.1 236.0 80.78 27.93 52.84 9.42 18.80 4.47 IV 798.2 553.1 245.1 81.35 27.73 53.62 9.81 19.95 4 57 1953 i 813.7 563.3 250.4 81.94 27.48 54.46 9.93 20.50 4 60 II 816.7 563.8 252.9 82.58 27.67 54.91 9.89 20.38 4.61 HI 813.2 557.7 255.5 82.54 27.89 54.65 9.85 19.99 4.68 IV 789.7 536.1 253.6 82.30 27.75 54.55 9.60 19.32 4.65 1954 i 795.7 538.3 257.4 82.22 27.57 54.65 9.68 19 52 4.71 H 794.9 540.8 254.1 82.71 27.67 55.04 9.61 19.54 4.62 HI 795.1 540.4 254.7 84.27 28.29 55.98 9.44 19 10 4 55 IV 820.4 560.2 260.2 85.95 29.08 56.87 9.55 19.26 4.58 1955—I 850.9 588.9 262.0 87.46 30.09 57.37 9.73 19.57 4.57 II 885.7 612.7 273.0 87.95 30.66 57.29 10.07 19 98 4.77 Ill 911.0 635.1 275.9 87.83 30.56 57.27 10.37 20.78 4.82 IV 934.8 655.1 279.7 87.51 30.51 57.00 10.68 21.47 4.91 1956 I ... . 941.5 656.3 285.2 87.23 30.28 56.95 10.79 21.67 5.01 II 959.1 666.4 292.7 87.63 30.12 57.51 10.95 22.12 5.09 HI 969.3 673.1 296.2 87.64 30.08 57.56 11.06 22.38 5.15 IV 993.1 693.5 299.6 87.74 30.23 57.51 11.32 22.94 5.21 1957 i 1015.2 710.6 304.6 87.79 30.58 57.21 11.56 23.24 5.32 II 1025.9 715.7 310.2 87.64 30.58 57.06 11.71 23.41 5.44 HI 1039.2 723.8 315.4 87.66 30.57 57.09 11.86 23.68 5.52 IV 1021.4 704.9 316.5 87.37 30.56 56.81 11.69 23.07 5.57 1958 I 973.9 658.9 315.0 87.26 30.40 56.86 11.16 21.67 5.54 II 973.0 659.6 313.4 87.69 30.49 57.20 11.10 21.63 5.48 Ill 1004.2 682.7 321.5 88.89 30.90 57.99 11.30 22.09 5.54 IV 1036.3 715.6 320.7 90.55 31.51 59.04 11.45 22.71 5.43 1959—I 1074.7 746.9 327.8 91.67 31.84 59.83 11.72 23.46 5.48 II 1113.0 780.7 332.3 92.29 31.90 60.39 12.06 24.47 5.50 III 1096.3 755.7 340.6 92.17 31.60 60.57 11.89 23.91 5.62 IV 1108.9 763.7 345.2 91.63 31.06 60.57 12.10 24.59 5.70 1960—1 1150.6 795.3 355.3 90.81 30.74 60.07 12.67 25.87 5.91 II 1163.5 801.6 361.9 89.90 30.40 59.50 12.94 26.37 6.08 III . 1154.1 794.8 359.3 90.04 30.19 59.85 12.82 26.33 6.00 IV 1145.9 785.0 360.9 90.63 30.02 60.61 12.64 26.15 5.95 1961—1 1133.4 770.8 362.6 90.83 29.36 61.47 12.48 26.25 5.90 II 1171.0 804.2 366.8 90.90 28.89 62.01 12.88 27.84 5.92 III 1187.6 816.1 371.5 91.56 29.10 62.46 12.97 28.05 5.95 IV 1216.6 844.6 372.0 92.66 30.00 62.66 13.13 28.15 5.94 1962—1 1238.2 854.3 383.9 92.51 29.89 62.62 13.38 28.58 6.13 NOTE.—Money holdings are an average of seasonally adjusted November 1962 BULLETIN.) Transactions and velocity are at annual balance* at end of given and end of preceding quarter. Transactions rates. For both money holdings and transactions, combined figures are also seasonally adjusted. (The seasonal adjustments differ from are the sums of figures for the consumer and the corporate segments. those described in "Flow of Funds Seasonally Adjusted" in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1561 A SECTORAL ANALYSIS OF VELOCITY CYCLICAL MOVEMENTS in transactions more marked cover the expenditure side of sector ac- Ratio scales Ratio scale 1000 counts. Outlays for used durable goods— NONFINANCIAL TRANSACTIONS 1200 Billions of dollars 1 homes, buildings, plant, consumer durables, and producers equipment—are not included in expenditures, although this would be de- COMBINED / / sirable conceptually, because there is very 1000 — A/A/ V " little information available on these purr/\l , 400 . chases. Nonprofit organizations are included in the consumer sector because their transactions cannot be distinguished from those / CORPORATE / 800 of consumers in the Federal Reserve flow of — 600 J funds accounts. -*;\J For each sector, an average of holdings 300 / CONSUMER at the beginning and end of the quarter was - 500 calculated as the money denominator of velocity, so that holdings would be centered 240 /-• within the quarter. Each money series was 1 1 1 . 1 I 1 adjusted for seasonal variation before averthan those in money holdings aging. MONEY HOLDINGS millions of dollars TABLE 3 COMBINED CONSUMER AND CORPORATE VELOCITY, FOURTH QUARTER, 1947-52 / v" 60 ^ Consumer Corporate CONSUMER Year velocity velocity /"••' 1947 3 41 16.77 50 1948 3.77 17.86 / CORPORATE 1949 3.93 15.30 1950 4.11 18.97 1951 4 31 18.85 26 1952 4.41 19.40 or in velocity NOTE.—Each velocity estimate is at an annual rate. For each sector, velocity equals estimated nonfinancial expenditures for the quarter VELOCITY divided by year-end money balances. These estimates are not Annual rafe seasonally adjusted. The quarterly series on sector and com- 25 bined (consumer-corporate) money, trans- CORPORATE / \ / -+ / \ i action and velocity begin in 1952 (see Table 2). In addition, estimates of sector COMBINED 20 _ f\\ j velocity rates are made for fourth quarters 6.0 i t / only, between 1947 and 1952 (Table 3). CHARACTERISTICS OF SECTOR AND COMBINED VELOCITY RATES Corporate velocity is much higher than that of consumers (see chart). As of the first 1952 1954 1956 1958 1960 1962 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1562 FEDERAL RESERVE BULLETIN • DECEMBER 1962 quarter of 1962, it was AVi times greater, ceased to rise at a faster rate than corporate and this proportion was about the same 10 velocity (see Table 2). In absolute terms, years ago. One reason for this difference is of course, corporate velocity rose considthe more continuous nature of business than erably more than consumer velocity, even of individual income receipts.5 The larger before and during the Korean War. scale of business than of personal transac- The large absolute rise in corporate vetions also makes it easier for corporations locity since 1952 has been due in part to to match expenditures with receipts. Be- institutional changes in financial markets cause of the fixed element in the costs of that have made it increasingly easy for many switches between money and near-money corporations to hold very little money per assets, the large size of corporate money unit of transactions. A striking example is holdings also makes it more profitable for the development and growth of lending to them than for consumers to maximize their U. S. Government security dealers via reholdings of interest-earning, near-money as- purchase agreements. These have made it sets at the expense of their money balances. possible to lend funds idle for very short Since most consumers receive their in- periods, with the date of repayment negocomes at least 12 times a year, only part of tiated and with virtually no risk of decline their money balances consists of money held in capital value. for the sole purpose of bridging time gaps Other such institutional changes include between income and expenditures. The the sharp increase of borrowing by sales other part consists of money held for pre- finance corporations from nonfinancial corcautionary purposes, which may be defined porations and the over-all growth of the as holdings to meet imperfectly foreseen U. S. Government securities market. These contingencies and opportunities. Evidently, institutional changes have tended to raise such precautionary balances are larger in corporate velocity more than consumer vethe consumer than in the corporate sector, locity, since the new techniques were tailboth in absolute size and as a ratio to income ored to the investment needs of holders of or expenditures. But very little is known large to very large idle balances. about the factors influencing the size of these However, the role of these changes should precautionary holdings. not be exaggerated. Richard Selden's study Table 3 indicates a faster percentage rise of annual turnover rates of money in difof consumer than corporate velocity up to ferent industries and different sizes of corabout 1952. Thereafter consumer velocity porations shows that small and mediumsize corporations raised their turnover rates 5 The more continuous the flow of income to a considerably from 1945 to 1957.6 Unpubspending unit, the higher will be the rate at which lished nonfinancial velocity rates for small this unit turns over its money balances, other things and large manufacturing corporations, combeing equal. For example, consider two individuals, each of whom has an annual income of $10,000. One piled by this writer, have nearly the same receives his income 10 times a year, the other receives upward trends between 1952 and 1960. his 20 times a year. For ease of exposition, assume that each individual draws down each payment by the Small and even medium-size corporations, same amount per day after receipt of the payment, and that both end their payment periods with no cash at all. Then, the first individual has a money turnover 9 Richard Selden, "The Postwar Rise in the Velocity rate of 20 times a year, the second individual a rate of Money: a Sectoral Analysis," Journal of Finance, of 40 times a year. December 1961. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A SECTORAL ANALYSIS OF VELOCITY 1563 as a rule, do not use the investment facilities the transactions side or the money side. In provided by the institutional changes dis- other words, one can look at how the mix cussed above. Thus, there is at least tenta- of transactions or the mix of money baltive evidence that a very large share of the ances affects combined velocity. But there postwar rise in corporate as well as con- is one restriction. Both effects cannot be sumer velocity has been due to other factors investigated jointly. And except for rare than institutional change. cases, the use of one definition will not sug- Although both of the sector velocity gest the same mix effects on aggregate veseries are broadly synchronous with cycles locity as the other definition will. in GNP, one exception is striking. Corpo- In the context of this paper, combined rate velocity has risen coincidentally with velocity of consumers and corporations is GNP or one quarter after the three troughs used as an aggregate velocity series, and in GNP since 1952. But consumer velocity consumers and corporations make up the began to rise about a year after each of two sector components of this aggregate. these three troughs (see Table 2). While Before discussing which approach to mix this contrast may be due in part to a lag is preferable, the results of each will be in consumer transactions around these GNP presented. A note at the end of this paper troughs, a lag in consumer velocity persists outlines for each approach the index numeven when troughs in these transactions are ber technique for separating sector velocity used as cyclical reference points. Another and sector mix effects on combined velocity. difference between consumer and corpo- Using transactions weights. For 1952-61 rate velocity has been the wider amplitude taken as a whole, mix effects were negligiof cycles in the latter. ble.7 Virtually all of the upward trend in combined velocity is explained by similar trends in the sector velocities. AGGREGATION EFFECTS ON COMBINED VELOCITY However, these mix effects substantially reinforced cyclical rises and falls of com- Cycles in aggregate money velocity are afbined velocity. As shown by Table 2, at fected by either or both of two patterns of least a third of the recession declines in change in the demand for money balances. combined velocity since 1952 have been Over a cycle, corporations and consumers due to mix effects. In the most recent recesmay decide to vary the amount of money sion, this effect was powerful enough to which they individually desire to hold per convert what would otherwise have been a unit of transactions. And sectors with money small rise of combined velocity into a fall. turnover rates that are high or low for struc- During business advances, mix effects tural and institutional reasons may contribute more to aggregate velocity during business advances, less during recessions. 7 Conclusions have been tested in three ways: by selecting alternative peak and trough quarters, using This second influence, which is designated given-period instead of base-period weights, and using below as the mix effect, may either rein- the alternate corporate and consumer expenditure force or dampen the cyclical effects of the series described in a mimeographed technical appendix (available from the author on request). All of these first on aggregate velocity. tests confirmed the results stated in the text, with The mix, that is, the composition, of ag- only unimportant deviations. The same methods were used to test conclusions of the following section (using gregate velocity can be studied either from money weights), with the same outcome. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1564 FEDERAL RESERVE BULLETIN • DECEMBER 1962 were more irregular; they even acted to over different cyclical periods if combined slow down the rise in combined velocity velocity had not changed. Then, it sepaduring 1956 and the first three quarters of rates this virtual release or absorption of 1957. But with the exception of this and money into the amounts resulting from the the most recent business advance, these ef- change in consumer velocity, the change in fects reinforced quite noticeably the normal corporate velocity, and the shift in the mix rise of combined velocity during these ad- of transactions between the two sectors. vances. As an example, consider the 1957-58 A perhaps more striking method of dem- recession. In the second quarter of 1958 onstrating mix and sector velocity effects consumers were holding $0.45 billion more is used in the bottom panel of Table 4. money (an absorption) than they would Instead of showing the separate changes have held if consumer velocity had remained in the sector velocity and mix components at its peak of the third quarter of 1957. of combined velocity, this panel shows first Similarly, corporations were holding $2.71 how much money would have been released billion more money (an absorption) owing or absorbed by consumers and corporations to the fall in their nonfinancial turnover TABLE 4 Two APPROACHES TO THE ANALYSIS OF COMBINED VELOCITY AND ITS CHANGES Periods of recession Periods of business advance Line Item II 1953- III 1957- I 1960- II 1952- III 1954- IV 1955- II 1958- I 1961- III 1954 II 1958 I 1961 II 1953 IV 1955 III 1957 I 1960 11962 Changes in combined velocity (points) Combined velocity: First quarter 9.89 11.86 12.67 9.47 9.44 10.68 11.10 12.48 Last quarter: Actual 9.44 11.10 12.48 9.89 10.68 11.86 12.67 13.38 Weighed by first quarter: Transactions 9.60 11.42 12.71 9.87 10.31 11.93 12.40 13.16 Money balances 9.43 11.11 12.79 10.12 10.47 11.85 12.85 13.39 Changes in combined velocity: Actual (2-1) -.45 -.76 -.19 .42 1.24 1.18 1.57 .90 Using transactions weights, amount attributable to: Changes in sector velocities (3 — 1).. .29 .44 .04 .40 .87 1.25 1.30 .68 Changes in transactions mix (2—3). .16 .32 .23 .02 .37 -.07 .27 .22 Using money-balance weights, amount attributable to: Changes in sector velocities (4 — 1). .46 .75 .12 .65 1.03 1.17 1.75 .91 Changes in money mix (2—4) .01 .01 .31 .23 .21 .01 -.18 -.01 Releases and absorptions of combined money holdings (billions of dollars) 10 Total release (+) or absorption (—)... -3.8 -5.61 -1.38 3.68 11.57 9.62 12.89 6.72 Causes: Change in sector velocities with constant transactions mix: 11 Both sectors (12+13) -2.50 2 16 .28 3.44 8.44 10.20 10.89 5.15 12 Consumer -.74 45 -.16 .89 4.82 7.00 4.98 2.54 13 Corporate -1.76 -2.71 .44 2.55 3.62 3.20 5.91 2.61 14 Change in transactions mix with constant sector velocities (both sectors) -1.39 -2.46 -1.65 .23 3.12 -.60 2.00 1.57 NOTE.—A technical appendix, explaining the derivation of the Bottom panel Total release or absorption equals last quarter formulae used to obtain the data shown, will be sent upon request. transactions divided by first quarter velocity, minus actual money Top panel See text. Changes are in velocity points. Tests have holdings at end of last quarter. Components do not necessarily add shown that use of last quarter weights hardly changes the results. to totals because of rounding. Transactions weights are used. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A SECTORAL ANALYSIS OF VELOCITY 1565 rate after the third 1957 quarter. However, with this qualification, the money-weight apthe sum of these ($3.16 billion) accounted proach would, if valid, suggest that such for only a little over half of the virtual ab- well-known factors as actions of the monesorption of money by the combined sector. tary authorities, the changing money volume The remainder ($2.46 billion) resulted of transactions, changing asset preferences, from a faster decline of corporate than of and cycles in interest rates offer a complete consumer transactions during this reces- explanation of cycles in combined velocity. sion.8 But if transactions weights are valid, the Using money weights. When money weights conclusion is substantially different. Besides are used to trace sector mix effects, results the factors mentioned above, the changing are very different from those of the trans- mix of transactions has also contributed subactions-weight approach (see Table 4). stantially to cycles in combined velocity. Be- During recessions and business advances cause transactions of the high-velocity cor- (but not over the whole 1952-62 period), porate sector have risen and declined faster changes in consumer and corporate velocity than those of the low-velocity consumer secrates tended to account for almost all rises tor during business advances and recessions, and falls in combined velocity. The only ex- less money was absorbed by both sectors ception was in the first five quarters of the during advances or released during reces- 1954-57 business upswing. And intersector sions than if their transactions had changed transfers of money tended to dampen, not at the same rate (or if consumer transacreinforce, the rise of combined velocity dur- tions had fluctuated more than corporate ing the business advance stage from April ones). 1952 through June 1953.9 For several reasons, transactions weights Choice of the appropriate concept of mix. appear superior to money weights for in- Thus, mix effects on combined velocity are terpreting the necessarily ex post statistics quite different, depending on which weights on sector and combined money turnover are used. If money weights are appropriate, rates. If the composition of transactions these effects on cycles in combined velocity shifts in favor of a high-velocity sector, efhave been neutral or even stabilizing. The fects on aggregate demands for money tend lack of uniform behavior within the sectors to be direct and fairly immediate.11 Less clouds results to some extent.10 But even money will be required by all sectors to- 10 Lack of homogeneity is probably greatest in the 8 The details of this mix effect might be spelled out. consumer sector. Richard Selden's estimates of annual (Only the net effect is shown in Table 4). In the sec- turnover rates of money by industry and size of firm ond 1958 quarter, corporate transactions were $18.1 suggest that during recent business cycles, mix effects billion lower and consumer transactions $18.1 billion have been small within the corporate sector because higher than they would have been if the July-Sept. of offsets. (Selden, op. cit.) Both cyclically sensitive 1957 composition of combined transactions had not and stable industries are found in the higher and lower changed during the following recession. At the sector velocity groups. Unfortunately, not even benchmark velocity rates prevailing in the second quarter of 1958, data are available to construct velocity estimates for this shift in shares of transactions implies a corporate different types of consumers. release of $0.84 billion of money, but a consumer 11 Total money holdings are subsumed under transsector absorption of $3.30 billion of money. The net actions, precautionary, and idle balances in this secresult was a combined sector absorption of $2.46 bil- tion. As the words "tend to" imply, the exposition lion of money due to the mix effect. holds constant the money supply and all other vari- 9 In other words, combined velocity would have ables except those being discussed. Therefore, a fall changed more if the sector shares of combined money in transactions and precautionary balances means a holdings had remained the same. rise in idle balances, and vice versa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1566 FEDERAL RESERVE BULLETIN • DECEMBER 1962 gether for transactions needs and those pre- less responsive, the money-weight approach cautionary needs associated with flows of would indicate a "mix effect" tending to transactions. Therefore, more money will raise transactions and velocity. If it is be held in the form of idle balances. The rise more responsive, the money-weight apin idle balances tends to make interest rates proach would indicate a mix effect tending fall, because it creates additional demand to depress transactions and velocity. But for near-money assets. This decline in in- either conclusion would be misleading beterest rates both causes and is ultimately cause what matters to interest rates and halted by a rise in borrowing, investment, ultimately the volume of transactions (and and total nonfinancial transactions. (If a therefore velocity) is the total amount of low-velocity sector obtains a larger share of idle balances becoming available to sustain transactions, not the sectors where such transactions, the opposite sequence of events balances originate.13 will occur.) But if the sector composition of money An exception to this conclusion would be a period when there are virtually no idle balances changes, the direction as well as balances (all of the money supply is used the magnitude of effects on aggregate transfor transactions and related precautionary actions and velocity are uncertain. The shift purposes). Then a shift of money from a may result from a sector's being more or low- to a high-velocity sector would in fact less responsive to changing interest rates on permit an increase in total transactions and near-money assets as well as from a need velocity; a shift of money in the opposite for more or less transactions money. To the direction would tend to force a reduction extent that the first cause prevails, the effect in total transactions and velocity. However, of such a shift on aggregate transactions and the past 10 years do not fit this description velocity may be quite different from that at all. As Table 2 and the related chart indicated by the money-weight approach. show, corporate velocity was maintaining its For example, suppose that one sector has rate of advance right up to the first quarter a high normal rate of money turnover, for of 1962. From 1957 to 1962, consumer structural and institutional reasons (including size of transactor unit). Another sector has a low normal turnover rate, also for such securities are mostly fixed in nature. Such corporations will tend to maintain money balances at the minimum reasons. In a typical business advance the level consistent with their management techniques, first sector's share of money holdings may whether interest rates are high or low. Only if interest rates sink to levels that are both very low and expected rise or decline, depending on whether it is to persist for a long time will they hold more money respectively less or more responsive than the and fewer securities. An example of this is a corporation reporting that second to the rising interest rates that usu- it would invest all surplus funds in short-term securially characterize such a period.12 If it is ties, provided it could earn between $300 and $400 for each million dollars invested. Even for a period of investment as short as 15 days, this absolute return is the equivalent of an interest rate of 0.8 per cent— 13 The rate at which a sector normally turns over its considerably below levels reached during the past money balances may have very little to do with the three recessions. (Managing Company Cash, Report sensitivity of marginal balances to changes in interest 99, National Industrial Conference Board). rates on near-money assets. For example, large corpo- 13 This abstracts from changes in the structure of rations that turn over money very rapidly may be in- interest rates resulting from different sector origins of sensitive to changes in interest rates because costs of idle funds released. But such changes in relative rates managing their portfolios of short-term marketable would not appear to weaken the broad conclusion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A SECTORAL ANALYSIS OF VELOCITY 1567 velocity was rising at nearly the same rate for transactions purposes remains constant as earlier. But a situation in which there are or rises less than proportionately. Hence, the almost no idle balances strongly suggests ratio which he desires to maintain between that sector velocity rates would be rising total money holdings and his transactions very slowly, if at all.14 tends to fall, ceteris paribus, as transactions On balance, the transactions-weight ap- rise.16 But except for this qualification, inproach to velocity appears much more re- terest rates are left as the sole determinant vealing for the 10 years of monetary history of the ratio defined above. analyzed in Table 4. But in addition to the qualification in the preceding paragraph, there are two other broad reasons why the nonbank public's NON-INTEREST-RATE EXPLANATIONS OF VELOCITY CYCLES demand for money should fluctuate over business cycles less than proportionately to In some studies on the demand for money, transactions and quite independently of it is maintained or implied that changes in cycles in interest rates. Corporations, which interest rates are by far the dominant induceuse money balances more efficiently than do ment for individuals and businesses to alter consumers, increase their share of combined the amount of money they want to hold per transactions during business advances and unit of transactions. For example, John decrease that share during recessions (see Maynard Keynes and some of his followers the preceding section). Hence, combined have assumed in their theoretical writings demand for money tends to rise less than that the demand for money is determined by proportionately to combined transactions the volume of transactions and the interest during a business advance and to fall less rate. If this is restated in terms of the desired than proportionately to combined transacratio of money to transactions, the interest tions during a recession. rate is left as the only determinant of this And quite apart from this composition ratio.15 effect, there are theoretical reasons why in- The Keynesian theory qualifies this by dividual enterprises and consumers would assuming that when an individual's transwant to turn over money balances more actions rise, his demand for money not used rapidly when business is brisk and incomes are high than when both are depressed. 14 The period assumed in this paragraph is one in Economies of scale. As John McCall has which there are virtually no idle balances. This is the pointed out, an individual's transactions same as saying that aggregate velocity has reached a ceiling because all money is in active use. The ceiling needs for money (in price-deflated terms) may have an upward slope over time because of inwill not rise or fall by the same proportion novations in managing transactions cash. In the latter case, velocity could rise slowly. 15 Cf. Lawrence Klein, The Keynesian Revolution (1945), pp. 71-75; Joan Robinson, The Rate of Interest and Other Essays (1952), Chapter 1 and pp. 18 By the Keynesian analysis, total money holdings 73-76; and Abba Lerner, "Alternative Formulations of an individual consist of money needed to sustain of the Rate of Interest," Essays in Economics Anal- transactions (transactions balances) and money held ysis (1953). for asset purposes (idle balances). As transactions Milton Friedman and his followers have tended to rise, an individual will increase his transactions balreject strongly the above theory. All theories on the ances by the same proportion, ceteris paribus. But his demand for money (including the Keynesian) rec- idle balances will not rise or will rise by less. Hence, ognize that desired ratios of money to transactions the ratio of transactions to transactions balances plus can and do change in the long run for many reasons. idle balances will rise. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1568 FEDERAL RESERVE BULLETIN • DECEMBER 1962 as his real transactions rise or fall.17 This dif- Fixed costs of investing in money substitutes. ference arises because such needs tend to be William Baumol and James Tobin have governed by the variance, as well as the sum, shown that if one wishes to maximize inof the time gaps between expenditures and terest earnings, the fixed element in brokerreceipts. If the sum of these gaps changes, age and other monetary and nonmonetary this variance will change by a much smaller costs of buying and selling near-money asproportion. It should be stressed that this sets makes it profitable not to raise or lower result of the "law of large numbers" is in- average holdings of money by the same perdependent of the brokerage cost effect dis- centage as transactions rise or fall.19 (This cussed below. argument is in terms of price-deflated magni- Precautionary needs for money. The vari- tudes.) Therefore, velocity will tend to ance as well as the sum of gaps between ex- change in the same direction as transactions, penditures and receipts influences transac- ceteris paribus, during a business cycle. tions demands for money, as noted above. In both the Baumol and the Tobin formu- It is probable that the expected variance, lations, the level of transactions and the inwhich is the relevant magnitude influencing terest rate are independent variables deterdemands for money, tends to increase during mining the demand for transactions cash a recession because of rising uncertainty balances. It follows that the velocity of about when customers and debtors will money will rise, ceteris paribus, if either make their payments.18 Conversely, a busi- transactions rise (because money needs do ness advance is usually characterized by ris- not rise proportionally) or the interest rate ing optimism on this score. Hence there will rises (because it pays to hold smaller money be less of a need for precautionary money balances, even with the higher brokerage balances during a business advance, and a and other costs accompanying the more rise in such needs during a recession. frequent switches between interest-bearing assets and money.) 17 John J. McCall, "Differences Between the Per- These postulated behavior patterns would sonal Demand for Money and the Business Demand for Money," Journal of Political Economy, August tend to make individual enterprises and 1960. In unpublished studies quoted by McCall, Gary consumers reduce money held per dollar of Becker and Mary Petty of the Chicago Federal Reserve Bank used the same technique as McCall (single- transactions during a typical business adequation regression) to estimate business and personal vance and increase this ratio during a typical money velocities. Their study analyzed cross-section data on total transactions and demand deposit hold- recession. Business advances of the past 15 ings by type of holder (business and other), at a years have been characterized by a rising sample of banks in the Chicago Federal Reserve District. volume of transactions per spending unit 18 James Duesenberry reached this conclusion on and increasing optimism about the certainty changes in the^ proportion between transactions and and dating of receipts due in the future. liquid assets over a business cycle in a discussion of a paper by Milton Friedman {Proceedings, American Recessions have been characterized by the Economic Rehew, May 1958, p. 528). However, I would extend this conclusion to money 19 William J. Baumol, "The Transactions Demand velocity. For if the expected variance of gaps between for Cash: An Inventory Theoretic Approach," Quarreceipts and expenditures grows during a recession, de- terly Journal of Economics (1952), p. 545; and James mand for money would be higher, ceteris paribus, by Tobin, "The Interest Elasticity of Transactions Dethe same reasoning as that used by Baumol and Tobin mand for Cash," Review of Economics and Statistics (see next footnote). This higher demand per dollar of (1956), p. 241. In Baumol's convenient shorthand expected transactions would offset in part the decline formula, the amount of money demanded for transof total transactions. Similar reasoning applies to a actions purposes is proportional to the square root of business advance. transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A SECTORAL ANALYSIS OF VELOCITY 1569 opposite developments. Only empirical re- by institutional changes and innovations search can determine how important these which made it increasingly convenient and postulated behavior patterns are with re- profitable to invest idle balances in nearspect to velocity cycles. But currently it money assets for short periods. However, would be as unwise to dismiss them out of sharp rises in money turnover among conhand as it would be to accept them without sumers and small corporations point to other such research.20 factors than innovation and institutional change as perhaps the major reason for the SUMMARY AND CONCLUSIONS upward trends in both consumer and corporate velocity. Money turnover rates of economic sectors Cycles in consumer and corporate veloccan be used for two purposes: to illuminate ity conformed generally to each other and the nature and strength of motives for holdto cycles in GNP. An exception was a tending money among businesses and consumency for consumer velocity to rise about a ers; and to determine, however roughly, how year after GNP troughs were reached. On aggregate velocity has been affected by the other hand, corporate velocity began to changes in the composition of aggregate rise very shortly after these troughs. transactions and money holdings. To this The composition of combined velocity end, quarterly time series on a seasonally ad- (that of consumers and corporations tojusted basis were compiled beginning with gether) can be studied either from the the second quarter of 1952 for nonfinancial money or the transactions side. When the transactions, money holdings, and velocity transactions approach is followed, composiof money for consumers and nonfinancial tion effects are found to have accounted for corporations. (Henceforth, the word transa sizable part of cycles in combined velocity. actions is used in place of "nonfinancial The money approach yields very different transactions.") results: almost all past cycles in combined Both consumer and corporate velocity velocity can be attributed to the behavior of have risen sharply over this 10 year period. the two sector velocity series. Corporate velocity grew at virtually the same The transactions-mix approach is held to rate as consumer velocity did, but its absobe preferable because the sectoral distribulute growth was much larger. The rise in tion of transactions affects demands for corporate velocity was particularly favored money much more directly and immediately 20 A test indicates that Baumol's postulated relation- than the sectoral distribution of money holdship between desired money balances and the square ings affects demands for goods and services. root of transactions cannot be dismissed as necessarily tTivial for the aggregate behavior of money holders. This is because an intersector shift in trans- During most recessions and business advances since actions is sufficient to change the demand 1952, the square root of corporate transactions has risen or fallen significantly less than transactions for money in the direction postulated, while themselves, even when both are price deflated and an intersector shift in money holdings may adjusted for changes in the corporate population. It would appear to follow that if the Baumol theory ap- reflect different sector patterns of asset prefproximates reality, transactions needs for money have erence as well as demand for money balances risen and fallen less than would be indicated by the conventional theory on transactions needs for money. to sustain flows of transactions. Only if vir- The same conclusion was reached for consumer trans- tually all money is drawn into the latter use actions during past business advances, but not during will intersector shifts of money tend unrecessions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1570 FEDERAL RESERVE BULLETIN • DECEMBER 1962 ambiguously to raise or lower aggregate rise less than proportionately. Also, cyclical transactions and velocity. shifts of expectations on the certainty and A related implication of the transactions- probable dating of future receipts may tend mix approach to combined velocity is that to reduce the desired ratio of money balcycles in consumer and corporate transac- ances to transactions during business adtions have tended by themselves to generate vances and increase this ratio during recesa conforming cycle in combined velocity. sions. Both of these behavior patterns of This does not mean that interest-rate individual spending units would tend to raise changes over past cycles have not affected velocity during a typical business advance, combined velocity very strongly. It only reduce it during a recession. means that the mix effects have tended to These are theoretical hypotheses, not emreinforce the impact of changing interest pirical findings. But if tests establish these rates on combined velocity, making the hypotheses as valid and not trivial in their latter rise and fall more sharply than it impact on money holdings, there will be adwould have done otherwise. ditional reasons for inferring that cycles in In addition to the aggregation effect, interest rates are only one of several deterthere are theoretical reasons to expect that minants of cycles in the amount of money individuals' demands for money to sustain which the nonbank public desires to hold flows of transactions (that is, transactions per unit of transactions. And if there is a and precautionary balances) are not inde- natural cycle in this ratio, because of aggrependent of the scale of their transactions. gation and transactions-scale effects, this When the latter rises, these needs for money is of some relevance to monetary policy. TECHNICAL NOTE In the transactions-mix approach to com- combined velocity changes with the weight bined velocity, I constructed an index using factor held constant. The difference between transactions as weights. This index is the this change and the actual change in V beratio of base- to given-period reciprocals of tween base and given quarter is attributable sector velocity rates, with a constant weight to the mix effect. applied to each such rate. Using base-period The money-mix approach to velocity inweights, the index is as follows: volves a similar index, with money weights. Using base-period weights for illustration, it is of the conventional form (given-period Vi _ sector velocity rates weighted by base-period Vo - 1 Wo money holdings divided by base-period sector velocity rates weighted by base-period When V is combined velocity, the v's are money holdings). sector velocities and the w9s are transactions Both types of index can use given-period weights (the w of each sector equals its weights as well as base-period weights. A own transactions divided by aggregate trans- technical appendix explaining the formulae actions). As is usual in index numbers, the used and their derivation is available from subscripts denote time. The index shows how the author upon request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A New Look at the Farm Debt Picture This is the first in a series of articles based time to time. These agencies were the Deon the debt portion of the Sample Survey partment of Agriculture, the Farm Credit of Agriculture conducted by the Bureau of Administration, and the Federal Reserve the Census in 1960. The Survey was con- Banks. ducted under the direction of Ray Hurley', The 1960 Sample Survey of Agriculture, Chief of its Agriculture Division. published by the Bureau of the Census, also This article was prepared by J. H. Atkin- contains a number of tables on farm debt. son. Other articles analyzing the results of Among those contributing to this study the debt portion of the Survey will appear in were Fred Garlock and Philip Allen, Defuture issues of the BULLETIN. It is also con- partment of Agriculture; Raymond Doll, templated that the Board will publish a hand- Federal Reserve Bank of Kansas City and book of the more important statistics on Chairman of System Committee on Agrifarm debt and related characteristics. culture; Martin Planting, Farm Credit Ad- Agencies cooperating in the debt Survey ministration; and Wilellyn Morelle and will also publish reports and booklets from Lewis Dembitz, Board of Governors. Why do some farmers borrow while oth- as the amount of debt and the source to ers use little or no credit? which it was owed. What characteristics of the farm or of This was the first comprehensive survey the farmer are associated with the wide vari- of total farm debts. A listing of the items ations in the amount of farm debt out- reported as debts appears in the excerpt standing? from the Survey questionnaire shown on What kinds of farmers use "store credit"? page 1588. What accounts for increased use of credit More than 11,000 farm operators and secured by land contracts? the landlords of rented acreage on these Are substantial numbers of farmers be- farms answered the Census questionnaire. coming heavily indebted? Are others failing All parts of the country except Alaska and to use credit which might be available to Hawaii were represented in the sample, as them? were all types and sizes of farms. These are the kinds of questions that gave Availability of debt statistics from the rise to the Survey of Farm Debt conducted 1960 Sample Survey of Agriculture will fill by the Bureau of the Census in late 1960. a gap in farm credit research. This gap is The Sample Survey of Agriculture included both analytical and descriptive. In its anainformation on farm production, land use, lytical aspects the Survey attempts to deteroff-farm income, expenses, tenure, and other mine why farmers use varying amounts of farm and operator characteristics, as well credit; in its descriptive aspects, it seeks a 1571 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1572 FEDERAL RESERVE BULLETIN • DECEMBER 1962 more complete picture of outstanding in- TABLE 1 debtedness of U. S. farmers. FARM DEBT OF OPERATORS AND LANDLORDS, 1960 The data from the Survey are being ana- [In millions of dollars] lyzed separately for farm operators and for Characteristic Total Operators Landlords landlords. Inasmuch as detailed tabulations for landlords are still incomplete, most of Total 19,897 16,798 3,099 the material herein applies to farm opera- Type of farm tors. Farm debts of landlords will be dis- 18,061 15,165 2,896 3,683 2,849 834 cussed in a later report. C To o b tt a o c n c o . ... 1,1 5 2 2 5 4 8 36 6 5 8 2 1 5 6 7 0 3,075 2,663 412 A discussion of the reliability of the data Livestock 5,910 5,170 740 Other 3,744 3,250 494 obtained from the Survey and of the reasons Other 1,837 1,633 203 for the differences between Survey data and Source of credit other estimates relating to farm debt appear Institutions: 4,915 4,397 518 in the technical note on pages 1583-87. Federal land banks 2,565 1,962 603 Insurance companies 2,760 1,999 760 Production credit associations . . 1,145 1,096 49 Farmers Home Adminis- TOTAL FARM DEBT tration •.. 871 847 24 Other 950 862 88 Others: When agriculture is viewed as if it were a Merchants and dealers.... 1,592 1,501 92 4,965 4,017 948 single farm, combined operator and land- 135 117 18 lord equity appears to be high. At the end NOTE.—Unpublished data, 1960 Sample Survey of Agriculture, of 1960 the over-all equity figure was esti- Bureau of the Census. Data are estimates based on information obtained from a sample of farms. See technical note, p. 1585, for a mated to be 87 per cent, and debts statement on sampling errors. Alaska and Hawaii were not included in the Survey. Details may not add to totals because of rounding. amounted to 13 per cent of the value of total assets. But debt is not evenly distribowed 84 per cent of this amount; landlords uted among proprietors. Hence, the finanthe remainder. The average debt of the 2 cial strength of some segments of agriculmillion indebted farms was $9,917 per ture is overstated when debts and assets of farm.1 Commercial farms accounted for 91 all of agriculture are aggregated. The 1960 per cent of all farm debt. Sample Survey of Agriculture allows, for the first time, a detailed examination of SOURCES OF CREDIT those that have farm debt. The Survey revealed that about 3 out of Lending institutions held two-thirds of the every 5 farms were indebted at the end of total debt reported by farm operators and 1960. Doubtless the proportion of farms landlords, individuals a fourth, and merusing credit sometime during the year was chants and dealers 8 per cent. Lending instieven higher, for the Survey was made near tutions also accounted for two-thirds of all the end of the year when many farmers had landlord debt. repaid credit used for producing row crops 1 Farms are defined as places of 10 acres and over and certain classes of livestock. if sales of farm products were at least $50, and places According to the Survey, the 1.9 million of less than 10 acres if sales were $250 and over. Commercial farms include those with sales of farm farm operators and 481,000 landlords who products of $2,500 and over and farms with product had debt owed almost $20 billion—equal, sales of $50 to $2,499 where the operator was under for example, to more than all automobile 65 years old, did not work off the farm at least 100 days, and received less nonfarm income than the instalment debt outstanding. Farm operators total value of farm products sold. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1573 Landlords made relatively greater use of to assign each borrower to a single principal insurance companies and Federal land source for each of these two types of debt. banks than farm operators did. These two The debt held by these principal sources institutions held 45 per cent of the land- amounted, in the case of major real estate lord debt in contrast to 24 per cent of the debt, to 95 per cent ($9,486 million as indioperator debt. A high proportion of land- cated in Table 2) of all such debt ($9,956 lord debt—85 per cent—was secured by million) of farm operators. Sources of the real estate mortgages, deeds of trust, or land largest non-real-estate and related debt held purchase contracts, compared with 66 per $5,723 million or 84 per cent of the $6,841 cent for farm operators. The use of long- million of that type of debt. These relatively term lending agencies and the high propor- high proportions indicate that farmers tend tion of debt secured by real estate is not to use a single source for most of their longsurprising in view of the fact that the major term debt and, to a lesser degree, a single productive asset furnished by landlords is source for their short-term debt. farm real estate. Twenty-seven per cent of the 988,000 Major types of debt of farm operators. In operators with major real estate debt oborder to analyze the types of debts that farminsurance companies, and individuals from whom the ers owe, the source of each operator's farm was purchased. Loans of the Farmers Home largest major real estate debt was deter- Administration, banks, other institutions, and individuals other than those from whom the farm was purmined and also the source of his largest chased were included only if they were the largest non-real-estate debt.2 This made it possible (or the only) real estate loans owed by borrowers. Non-real-estate and related debt consisted of all 2 Major real estate debt is defined to exclude real- debt other than major real estate. This classification estate-secured debt owed to production credit associa- was designed to avoid including as real estate debt tions and to merchants and dealers. It includes all loans primarily secured by non-real-estate assets but real-estate-secured debt to Federal land banks, life which also had real estate as supplementary security. LENDING INSTITUTIONS hold major part of all farm debt TOTAL DEBT OPERATOR DEBT LANDLORD DEBT MERCHANTS INDIVIDUALS AND DEALERS [COMMERCIAL BANKS I FEDERAL LAND BANKS lU FARMERS HOME ADM. I INSURANCE COMPANIES I PRODUCTION CREDIT ASSNS. D OTHER LENDING INSTITUTIONS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1574 FEDERAL RESERVE BULLETIN • DECEMBER 1962 tained their largest major real estate loan as their major source of such credit. As from individuals, and a similar proportion might be expected, however, the average obtained them from commercial banks. bank loan was larger than the average loan Slightly fewer operators went to the Federal of merchants and dealers ($4,602 compared land banks (Table 2). Insurance companies with $2,046). served as major source of real estate credit Loans of production credit associations for only 10 per cent of the farm operators. were largest of all, $7,034 or about 50 per But because of the large average size of life cent more than the average bank loan. insurance company loans ($17,493), the Nevertheless, banks which served as the total amount of major real estate debt held source of farmers' largest non-real-estate by this source was about the same as the and related debt furnished more than twice amount furnished by either commercial as much of this type of credit in the aggrebanks or the Federal land banks. gate as any other lender group. Farm operators who owed non-real- Farmers who used banks as a major estate and related debt numbered 1.5 mil- source for either real estate or non-reallion. A third of them owed their largest estate credit made relatively little use of debt of this type to merchants and dealers, banks' ability to extend both of these kinds and a like number used commercial banks of credit. About 94 per cent of the average TABLE 2 SOURCES OF FARM OPERATORS' LARGEST DEBTS, 1960 Number of operators Amount of debt Average value of land and Source Thou- Per (m T i o ll t i a o l ns Per pe A r v o e p r e a r g a e tor b o u p i e l r d a in te g d s sands cent of dollars) cent (dollars) (dollars) Major real estate debt * Institutions: Federal land banks 1,836 19 7,935 53,163 Commercial banks 1,713 18 6,548 40,998 Insurance companies 1,676 18 17,493 91,268 Farmers Home Administration. 639 7 9,885 32,273 Other 496 5 7,338 38,439 Individuals: Land contract. 1,381 15 16,222 50,962 Mortgage 1,745 18 9,610 48,333 All sources. 9,486 100 9,604 50,187 Non-real-estate and related debt 1 Institutions: Commercial banks 2,422 42 4,602 53,550 Insurance companies 128 2 6,465 68,977 Farmers Home Administration. 186 3 4,795 37,014 Production credit associations.. 1,016 18 7,034 59,067 Other 309 5 3,786 43,464 Others: Merchants and dealers. 1,066 19 2,046 38,189 Individuals 552 10 3,848 42,992 Miscellaneous 44 1 706 33,241 All sources. 5,723 100 3,721 46,298 1 Each operator was classified according to the source of his those with non-real-estate and related debt cannot be added because largest debt of this type. Figures represent only the amounts of some farmers had both types of debt. this debt owed to that principal source. 2 Figures for farm operators with major real estate debt and for NOTE.—See also Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1575 amount ($7,002) owed to banks by farm- half as large as those served by life insurance ers who used banks as their major source of companies and about three-fourths as large real estate debt represented major real estate as those served by Federal land banks. debt. In other words, these farmers owed Among those classified by source of largest banks an average of about $6,548 major non-real-estate and related debt, farmers real estate debt and less than $500 of non- who owed PCA's typically operated farms real-estate and related debt. At the same with a high value of land and buildings—an time they owed an average of about $2,000 average of $59,000. The average for those (mostly non-real-estate) to other sources. served by commercial banks was about a A similar situation was revealed for farm- tenth smaller (Table 2). Farmers relying on ers using banks as the source of their largest merchants and dealers for most of their non-real-estate and related debt. Only about short-term credit needs operated farms with 5 per cent of their average bank debt was land and buildings valued at $38,000 on the classed as major real estate, and 95 per cent average. as non-real-estate and related. Merchant-dealer debt. One of the impor- Although banks have the ability to tailor tant types of non-real-estate debt about credit terms to fit individual needs, it is which relatively little has been known to apparent that farmers generally use banks date is merchant and dealer credit. The for either major real estate credit needs or Survey revealed that farmers make widefor short-term credit—but not for both. spread use of this type of credit (excluding Whether this situation exists because farm- debts for living expenses). About 50 per cent ers prefer not to use a single source of credit of the 1.9 million indebted farm operators, or because bankers have not encouraged it or 28 per cent of all farm operators, reis beyond the scope of this article. Where ported debt to merchants and dealers in late credit use is modest relative to collateral 1960, at a time of the year when this type and earnings, it may make little difference of debt probably was near the seasonal low. to either the lender or the borrower that In addition, 22 per cent of the indebted landseveral credit sources are used. But banks lords were using merchant and dealer credit. may find it advantageous to serve as the Farm operators whose only debt was that single major source where extensive use of owed to merchants and dealers numbered credit is involved. 204,000, and they reported $278 million of Many banks are able to provide such such debt, an average of $1,365 per operone-stop financing from their own resources. ator (Table 3). These exclusive users of In the event that they cannot, they may merchant-dealer credit, on the average, opmake increasing use of such auxiliary means erated small farms (value of land and buildas correspondent bank arrangements or ings operated was estimated at about $30,agreements with life insurance companies, 000), of which they rented more than half. or they may even establish bank-affiliated Their net cash income from the sale of farm agricultural loan companies. products averaged $1,910 (for definition Farmers using commercial banks as their see note 5 on page 1580). Compared with major source of real estate credit operated all farm operators with debt, the "merchantfarms with land and buildings valued at dealer only" group operated smaller farms, about $41,000 on the average, about one- had a higher percentage of tenancy, were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1576 FEDERAL RESERVE BULLETIN • DECEMBER 1962 TABLE 3 Chief among these factors are the size and type of farm, its productiveness, and the age CHARACTERISTICS OF FARM OPERATORS WITH MERCHANT-DEALER DEBT, 1960 and tenure of the operator. Geographic dif- [Averages; in dollars unless otherwise noted] ferences may also figure in the need to borrow. Operators with— All operators At the time of the Sample Survey of Agri- Characteristic Merchant- Merchant- with dealer dealer any culture in 1960, about 1.9 million farmers, debt and other debt only debt or 58 per cent of all farm operators, were using borrowed funds. They operated 68 Total debt 1,365 11,391 8,853 per cent of the nation's farmland, sold 72 Net cash income from sale of farm products 1,910 2,698 2,471 per cent of all farm products, and incurred Value of land and buildings operated: 75 per cent of all cash farm production Total operated 29,521 49,118 45,790 Portion owned 12,797 25,507 26,205 expense. Compared with nonborrowers, they Portion rented 16,724 23,611 19,585 operated larger farms, produced more, were Age of operator (years) 50 45 47i/i Number of operators (thou- younger, owned more farm real estate, and sands) 204 717 1,897 rented a higher proportion of the land they NOTF.—See Note to Table 1. farmed. At the same time there were 1.3 million older, had lower net cash farm incomes, farmers who were not indebted. About half and used less credit. Farm operators in the operated farms with real estate valued at South owed 31 per cent of this merchant- less than $15,000. Real estate owned by dealer debt in contrast to only 17 per cent the latter group had an average value of of the total of all operator debt. about $5,000. They obviously had little More than half of 921,000 operators re- collateral, and their farm income was too porting merchant-dealer debt owed $1,000 small to provide the basis for much credit. or more to this source, and they accounted Many of the remaining 600,000 nonfor 91 per cent of the total merchant-dealer borrowers, on the other hand, may represent debt. The number who owed $5,000 or potential loan demand and capacity for inmore—140,000—accounted for about half creased production. Considering commerof the total merchant-dealer debt. The aver- cial farms only, there were 820,000 nonage amount owed to merchants and dealers borrowers. About a third of these operated by all farm operators using this source of farms valued at more than $25,000. credit was $1,630. Differences between borrowers and nonborrowers will be brought out in the follow- DIFFERENCES BETWEEN BORROWERS ing discussion of factors affecting the use AND NONBORROWERS of farm credit. Several factors figure in whether or not farm Size of farm as measured by value of land operators borrow, and these in turn have an and buildings operated. On the average, boreffect on the extent of their borrowing.3 rowers operated farms about 50 per cent larger than those of nonborrowers. They 3 The terms "borrowers" and "nonborrowers" refer owned about a fifth more land, and they to a farm operator's debt status at the time of the Survey. Obviously, some of the nonborrowers may rented about twice as much as nonborrowrecently have used credit or may plan to use credit ers, as the accompanying tabulation shows. in the near future. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1577 Average value of land and Type of farm. The proportions of farmers buildings operated by— who were borrowers varied widely by type Non- Borrowers borrowers of farm. Less than 50 per cent of the opera- (dollars) tors of noncommercial farms and 54 per Total 45,790 31,265 cent of cotton and tobacco farmers were Owned 26,205 21,820 borrowers. These contrast with 62 per cent Rented 19,585 9,445 of the livestock farmers, 67 per cent of the cash-grain farmers, and 71 per cent of the The tendency for borrowers to operate dairy farmers. larger farms than those of nonborrowers also However, type of farm had much less inis indicated by the proportion which borfluence on the proportion of farmers who rowers represent of total number of farm were borrowers when size of farm was taken operators in various "value of land and into account. The proportion of borrowers buildings operated" groups, as shown in among those operating small and medium- Table 4. An estimated 47 per cent of those size farms was higher for dairy than for other types. In each size group relatively few noncommercial farmers were borrowers. Other- TABLE 4 wise, the proportion of farmers who were in BORROWERS AND NONBORROWERS AMONG FARM OPERATORS, 1960 debt was similar on farms in the same size group (Table 5). Number (thousands) Borrowers as Productiveness. The output of a farm tends Characteristic per cent ope A ra ll tors Borrowers bo N rro o w n- ers op o e f r a a t l o l rs to be related to its size. Since borrowers generally operated larger farms, their average Value of land and buildings oper- sales of farm products were larger than those ated: Under $15,000. 1,322 615 706 47 of nonborrowers—$11,384 compared with $15,000-24,999. 568 340 228 60 $25,000-39,999. 451 301 150 67 $6,350. $40,000-59,999. 355 244 111 69 $60,000-99,999.., 301 218 82 73 As the value of gross sales increased, the $100,000-199,999, 182 129 52 71 $200,000 and over 69 49 20 71 proportion of farmers who used credit also All classes 3,247 1,897 1,349 58 increased. Three-fourths of the farm oper- Age of operator: Under 35 337 260 76 77 ators with gross sales of $10,000 and over 35-44 637 465 172 73 45-54 765 488 276 64 were borrowers. This proportion declined to 55-64 671 339 332 51 65 and over 499 155 344 31 about two-thirds and one-half, respectively, Not reported 339 191 149 56 All classes 3,247 1,897 1,349 58 for farm-product-sales classes of $5,000- 9,999 and $500-4,999. NOTE.—See Note to Table 1. Age and tenure. Borrowers on the average operating farms valued at less than $15,000 were AIV2 years of age—W2 years younger were borrowers, but for operators with farms than nonborrowers. As age increased, the valued at $40,000 and over the figure was proportion of borrowers decreased, from 77 about 70 per cent. Equal numbers of bor- per cent in the age group under 35 years to rowers and of nonborrowers operated farms 31 per cent for operators 65 years of age or valued at less than $25,000, but borrowers older (Table 4). outnumbered nonborrowers 2.3 to 1 on Tenure of the farm operator was related farms with higher values. to whether or not he was a borrower. U. S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1578 FEDERAL RESERVE BULLETIN • DECEMBER 1962 averages show that borrowers owned 57 per TABLE 5 cent of the value of land they operated, CHARACTERISTICS OF FARM-OPERATOR whereas nonborrowers owned 70 per cent. BORROWERS, 1960 The part-owner tenure class of farmers— [Borrowers as per cent of all operators within grouping] those who own part and rent part of the land Value of land and buildings they operate—contained 71 per cent who operated All Characteristic Masses Under $25,000- $100,000 $25,000 99,999 and over YOUNG FARMERS operate larger farms Type of farm: and use more credit than older farmers Commercial.. 64 55 71 Cash-grain. 67 54 69 Cotton 54 47 69 Tobacco... 54 50 68 Dairy 71 65 77 VALUE OF LAND AND BUILDINGS Livestock.. 62 49 69 RENTED OWNED Other. 46 45 56 Ownership and area: All areas 58 51 69 Full owners 52 48 62 Part owners 71 62 77 Tenants 59 48 71 South i 51 47 63 Full owners. 46 44 53 Part owners. 66 60 76 i mm Tenants.... 48 46 60 1 IffttittJ Other 3 62 53 70 um Full owners. 55 51 63 wm Part owners. 73 64 77 Tenants 67 52 73 1 States included are: Maryland, Delaware, Virginia, Kentucky, North Carolina, Tennessee, South Carolina, Georgia, Alabama, Mississippi, Florida, Arkansas, and Louisiana. 2 Number of observations in sample judged too small to allow reliable estimates. 65 AND OVER r||| i 1 i 3 All States other than Alaska and Hawaii and those listed in note 1. 1 I I i I Age 1 10 20 30 40 50 NOTE.—See also Note to Table 1. (Years) Tho jsands of dollars tended to use credit more often than tenants were borrowers. The percentage of bor- on the same size farms. rowers was lower among both full owners, Geographic differences. There were also 52 per cent, and tenants (farmers who oper- variations in the extent of borrowing by farm ate only rented land), 59 per cent. operators in various geographic areas. In Among those operating farms with land the South 51 per cent of the farmers were and buildings valued at less than $25,000, in debt at the end of 1960, compared with about half of the tenants and about half of 62 per cent in the rest of the country. This the full owners were borrowers. For part may reflect in part the size of farm. owners of farms in this size class, the pro- In the South 80 per cent of the farmers portion was higher—around three-fifths. operated farms with real estate valued at less Among those operating farms classified as than $25,000, compared with about 50 per medium-size or large, incidence of debt was cent of the farm operators in the remainder less for full owners than for part owners or of the United States. As indicated above, a tenants. In the South, as Table 5 shows, part smaller proportion of these small farmers owners operating medium-size farms (land were in debt. This explains, in part, why and buildings valued at $25,000-99,999) farmers in the South are less often indebted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1579 However, Table 5 reveals that both small ability) was accompanied by a roughly simiand medium-size classes of tenants and full lar amount of credit. owners contained smaller proportions of Size of debt varied widely by type of farm borrowers in the South than in the rest of the —from an average of about $3,200 on country. This suggests that reasons in addi- tobacco farms to almost $15,000 on livetion to size of farm (value of land and build- stock farms.4 According to the Survey, operings operated) account for the fact that a ators of cotton and tobacco farms not only lower percentage of operators in the South had smaller debts than most other types of were indebted. farmers, but they also used less credit relative to the value of their farms. The Survey was taken late in the year at SIZE OF DEBT a time when production loans of many cot- In one way or another, all of the factors diston and tobacco farmers normally would cussed in the preceding section have some have been repaid. This may account, in part, effect on size of debt. In terms of size of for the fact that debts were lower on these farm, as measured by value of land and types of farms than on other types. Addibuildings operated, for example, total opertional factors which might be hypothesized ator debt ranged from an average of $2,395 to account for differences in size of debt per indebted operator on small farms to among types of farms include size of the $63,465 on large operations, as shown in farm business, the nature of production Table 6. processes, tenure of farmers, and attitudes of both farmers and lenders concerning the use TABLE 6 of credit. TOTAL DEBT OF FARM-OPERATOR BORROWERS, 1960 Average size of loan was about the same Value of land and buildings Total debt D of e b v t a l a u s e p o e f r l c a e n n d t in the two age groups up to age 45, then (class, and o a p v e e ra ra te g d e for class) pe ( r d o o p ll e a r r a s) tor and o p b e u r i a l t d e i d ngs decreased at an increasing rate. The greater use of credit by young farmers, plus exten- Under $15,000 ($7,443) 2,395 32 $15,000-24,999 ($18,661) 5,736 31 sive renting—those under 35 years of age $25,000-39,999 ($30,695) 7,703 25 $40,000-59,999 ($47,367) 9,794 21 rented two-thirds of the land they operated $60,000-99,999 ($75,124) 13,375 18 $100,000-199,999 ($131,691)... 20,303 15 while those in the 55-64 year group rented $200,000 and over ($442,176).. 63,465 14 less than one-third—resulted in their having All classes ($45,790) 8,853 19 control over more land than much older NOTH.—See Note to Table 1 farmers. The use by young farmers of as much or The ratio of debt to farm value was higher more credit than older operators, both in for farms with real estate valued at less than terms of the percentage who use credit and $25,000 than for larger farms. Forty-one of the size of debt, does not provide conper cent of these small farms were noncomclusive evidence that beginning farmers are mercial and many had income from sources being adequately financed. It does indicate, other than farming. Hence loans on these farms may have been made on a nonagri- *Only commercial farms were classified by type cultural basis. But in the four largest classes and not all types are discussed in this report. A farm of farms, each additional unit of resources was classified as a particular type if it had sales of a particular product amounting to 50 per cent and over (representing both collateral and earning of the total value of all products sold during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1580 FEDERAL RESERVE BULLETIN • DECEMBER 1962 however, that lending agencies and individ- This group owed more relative to its earnuals have played an important role in facili- ings than other borrowers. While they owed tating the flow of capital to young farm op- 75 per cent of the debts, they sold only 56 erators. In addition, these young farmers per cent of borrowers' farm products and have made extensive use of leasing as a received 47 per cent of borrowers' net cash means of financing their farm operations. farm income from sale of farm products.6 Of the three most common tenure groups, part owners used the largest amounts of FEW FARM OPERATORS owe credit. Their average loan—around $12,000 major portion of debt in 1960 —was three times the size of tenants' loans and about 50 per cent larger than debts of SIZE OF OPERATORS DEBT full owners. TOTAL DEBT p. 11 1 Tenants with debt, by renting farms with uc UNDER 1,000 real estate values two-thirds larger than 1111 those of full owners and by using more non- 1,000 - 1,999 • real-estate credit than full owners did, had liilii net cash incomes from the sale of farm 2,000 - 4,999 products (after payment of interest and •i Hill rent) almost equal to those of full owners. 5,000 - 9,999 mi Part owners, with farms more than twice as 10,000 - 19,999 large as those of full owners had net incomes • •I from the sale of farm products that were Hi 20,000 - 39,999 more than 50 per cent larger than those of full owners. 40,000 OR MORE I 1 1 p 1 FINANCIAL CONDITION OF U. S. 30 20 10 0 10 20 3 AGRICULTURE Per cent of tofal Total debts of U. S. farm operators are con- On the basis of ratios of major real estate centrated in the hands of relatively few bordebt to value of land and buildings owned, rowers. According to the 1960 Survey, 35 farms with total debts of less than $5,000 per cent of the 1.9 million operator borexhibited greater collateral strength than rowers owed less than $2,000, and in the those with larger loans (Table 7). However, aggregate they owed only 3 per cent of the this ratio was stable for loan-size groups of total debt. Farmers who owed less than $20,000 and over. Ratios of non-real-estate $10,000 made up 75 per cent of all bordebt to cash operating expenses were also rowers but owed only 25 per cent of the total lower on farms with small debt, but there debt. The remaining 25 per cent owed 75 was little difference in these ratios among per cent of the total debt. In other words, farms which have the bulk of operator debt. out of a grand total of about 3.25 million The ratio of total debt to the operator's share farm operators, less than 500,000 owed three-fourths of the total operator debt. 5 Net cash farm income was calculated by subtracting cash operating expenses (including interest These farmers owed 69 per cent of the total but excluding capital outlays) from the value of the non-real-estate and related debt and 79 per operator's share of farm products sold. The operator's share was the total value of farm products sold less cent of all major real estate debt. share rent and /or cash rent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1581 of farm products sold (minus cash rent) than $10,000, off-farm income (defined to actually declined for the class with the larg- include Government payments, proceeds est debt. from custom work, salaries, wages, and so Ratios of major real estate debt to net cash forth, received by the farm operator and farm income from the sale of farm products members of his household) actually exwere calculated as one indication of the re- ceeded net cash income from sale of farm lation of long-term debt burden to debt- products. This resulted in average total net servicing ability. As size of debt increased, incomes in excess of $3,500 for all groups these ratios also increased (Table 7). They except those operators owing less than ranged from less than 1.0 for debts under $1,000. Study of farm-operator debts by size $5,000 to 4.5 for debts of $40,000 and over. of total debt indicates not only how debt is concentrated but also how important non- TABLE 7 farm income is, especially for farmers in the DEBT RATIOS RELATED TO SIZE OF FARM-OPERATOR smaller size groups. DEBT, 1960 One measure of the financial condition of farmers is the ratio of their major real Major real estate Non- Total debt as per cent of— real-estate debt as estate debt to the value of land and buildings debt as per cent of o T f o o ta p l e r d a e t b o t r b l V a u o n a i w l l d u d n e i a e n n d o g d f s N in e f c t a o r c m m as e h o e p o x p e f p e r e r c a c n a t e s s i e n n h t g l o s p h p r f s a e o a a r r r d l e a m e u t s o o c f t r o fa w rm ne d r . e a H l e e n st c a e t , e f d a e rm bt w op er e e r a s t o o r r t s e d w i a t c h c o m rd a i j n o g r to such ratios. Farmers in the low ratio Under $1,0002 1 5 15 11 group (under 20 per cent) typically oper- $1,000-1,999 4 32 30 31 $2,000-4,999 9 74 43 53 ated larger farms, as measured by value of $5,000-9,999 18 165 53 85 $10,000-19,999 24 263 56 108 $20,000-39,999 30 374 59 131 land and buildings, than farmers in higher $40,000 and over... 29 455 50 111 ratio groups (Table 8). The average value All operators 20 212 49 90 of real estate owned by the low ratio group 1 Non-real-estate debt includes related debt. was twice the average value for farmers in 2 Excludes farmers reporting no debt. NOTE.—See also Note to Table 1. the 50 per cent and over group. In each of the four smaller loan-size cate- The average value of land rented was gories, under $10,000, despite the typically about the same in all three ratio groups; moderate ratios of debt to income, bor- therefore the percentage that value of rented rowers had average net income from the sale land was of total value of land and buildings of farm products of less than $2,400. Many operated was lower for farmers with low therefore had farm earnings that were little ratios. if any in excess of the amounts needed for Operators for whom ratios of real estate family living expenses and for repair and debt to value of land and buildings exceeded maintenance of capital. On the other hand, 50 per cent accounted for a fourth of all borrowers in the larger debt groups tended operators with major real estate debt, and to operate larger farms and had average net they owed nearly 40 per cent of such debt. farm incomes that appeared sufficient to The average ratio for the group was 72 per cover both current expenses and gradual re- cent—high enough to be classed as heavily payment of their major real estate debt. indebted by many institutional lenders. Farm Inclusion of nonfarm income alters the operators whose only source of major real picture, however. On farms with debt of less estate debt was land purchase contracts owed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1582 FEDERAL RESERVE BULLETIN • DECEMBER 1962 20 per cent of the debt of these heavily in- non-real-estate and related debt compared debted farmers. These farmers reported a with $3,829 of such debt owed by farmers major portion (70 per cent) of the total in the 20-49 per cent group. This suggests real estate debt owed by those operators for that long-term credit was not being subwhom such contracts were the only source stituted for short-term credit to any appreof major real estate debt. ciable degree. Relating major real estate debt to net These high-debt-ratio farmers, on the avcash farm income revealed that the heavily erage, were younger and had moved to their indebted group of farmers had major real present farms more recently than the lower estate debt equal to about seven times their ratio groups. Thus, to some extent they are net cash farm income (Table 8). With net going through what might be thought of as cash income from the sale of farm products a normal cycle of purchasing land with a low of around $2,400 and long-term debt of downpayment and gradually reducing the more than $16,000, it is apparent that off- debt. This task has been more difficult since farm income (averaging $2,793 for the the mid-1950's than in the earlier postwar group) was necessary to service some of period. these debts. Because of new production techniques Farmers with the highest major real estate and the cost-price squeeze, farm operators debt ratios also owed an average of $3,442 face continuing pressure to improve the ef- TABLE 8 INCOME, DEBT, AND ASSETS OF FARM OPERATORS CLASSIFIED BY DEBT-ASSET RATIOS, 1960 Major real estate debt as per cent of value All operators of land and buildings owned Items reported by operators with major real estate debt with major real estate debt Under 20 20-49 50 and over Average per operator reporting major real estate debt Net cash farm income from sale of farm products (dollars) 2,730 2,906 2,760 2,417 Off-farm income (dollars) 2,832 2,839 2,848 2,793 Major real estate debt: Amount (dollars) , 10,081 4,462 11,034 16,593 369 154 400 687 As per cent of net cash farm income from sale of farm products Non-real-estate and related debt: Amount (dollars) 3,436 2,953 3,829 3,442 As per cent of operating expenses 40 33 44 42 Value of land and buildings (dollars): Operated 50,187 62,460 47,385 37,187 Owned 36,821 48,497 34,930 23,135 Rented 13,366 13,963 12,455 14,052 Age of operator (years) 51 47 42 Length of tenure (years), 17 13 9 In unit indicated Operators reporting debt: Number (thousands) 988 342 412 234 As per cent of total 100 34 42 24 Total debt reported: Amount (millions of dollars) 13,350 2,533 6,116 4,698 As per cent of total 100 19 46 35 NOTE.—See Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1583 ficiency of their farms by enlarging them and but also indirect effects exerted via the farm adding to their non-real-estate capital. De- machinery dealer; those that supply ferclines in land values, reduced farm income, tilizer, insecticides, feeds, and such; grain or lower nonf arm income could cause serious elevators and tobacco marketing wareproblems for at least a part of the quarter houses; cotton gins and canning factories; million farmers who owe nearly 40 per cent and a host of other establishments in the of the total major real estate farm debt and supply and processing or marketing business. who have ratios of real estate debt to farm In addition, farmers exert an influence on value of 50 per cent and over. Many of these business activity through their role as conheavily indebted farmers need a high quality sumers. of financial management and could derive In this age of specialization, the influence benefits from dealing with lending agencies of one segment of an industry on some other in which the personnel understand the probsegment is not unique. But this phenomenon lems encountered in farm production. in agriculture involves at least three special factors: (1) the widespread geographic na- INTERDEPENDENCE OF FARMERS ture of farming, (2) the tendency for many AND LENDERS of the input-supply and processing-market- Credit has become an indispensable producing functions to cluster around farm production tool for many farmers. Even where it is tion, and (3) the existence of many comused in relatively small amounts, credit may munities whose major gross product is agrimean the difference between profit or loss. cultural in nature. Because of these factors, The very survival of the farm firm may dethe fortunes of literally hundreds of compend upon use of credit. mercial banks—particularly the small ones Thousands of this country's banks share —are tied to the fortunes of local farmers. in the year-to-year ups and downs of farm Thus many bankers feel a need to keep pace income and are affected by longer-run trends with this rapidly changing industry and its in farming. In addition they face the "mulfinancial requirements. tiplier effect" of farm production. Agricul- Many small banks face a challenge in ture has been described as an industry of three dimensions: (1) input supply, (2) furnishing credit to finance the increasing farm production, and (3) output processing capital requirements of farmers. This chaland marketing. The banker feels not only the lenge must be met by banks along with other direct effects of changes in farm production types of lenders if the communities and rural —changes in farmers' deposits and loans— areas involved are to grow and prosper. TECHNICAL NOTE The estimates given in the accompanying dom sampling procedure was used, which article are based on unpublished Census data allowed heavier sampling rates for farms collected from a sample of the farms existing with higher values of farm products sold. in the 48 States, excluding Alaska and Ha- For a comprehensive treatment of the waii, at the time of the Survey in 1960. All nature of this sample, see 1960 Sample Surfarms were represented and had a chance to vey of Agriculture, published by the Bureau be included in the sample. A stratified ran- of the Census. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1584 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Definitions. Brief working definitions of the Survey but which may have been inseveral terms appear in the text. For com- cluded in lender reports are loans on tracts prehensive definitions of such terms as farm, of timber not included as a part of a farm farm operator, economic class, off-farm in- and balances due on non-real-estate loans come, type of farm, and value of farm pro- made to farmers who later quit farming. ducts sold, see U. S. Census of Agriculture: (2) The estimated totals of debt for the 1959, General Report—Volume II—Statis- 1960 Survey include only debts of farm optics by Subjects—Introduction and Chapter erators and farm landlords. Debts of persons II. For a listing of items reported as debt, or organizations providing custom work and see excerpt from the Survey questionnaire custom feeding services and of dealers and shown on page 1588. processors having contracts with farm op- Farm-operator and farm-landlord debt. The erators and farm landlords for the producestimates of debt for 1960 differ from those tion or marketing of farm products are not made by other agencies and on the basis of included. A considerable number of persons other surveys. Some possible reasons for the and organizations provide such services as differences in the various estimates follow.1 harvesting, combining, packaging, spraying, (1) The definitions of farms and farm cultivating, leasing of farm equipment, and debts used in the 1960 Sample Survey and so forth, and the debts of these persons and by lending and other agencies may not have organizations are not included in the estibeen the same. In some cases, loans, espe- mates for the 1960 Survey. cially long-term loans made on what was Approximately 147,000 farms had cononce farmland, may still exist on the records tracts in 1960 with dealers, processors, and of lending agencies even though the land is others for the production and marketing of no longer part of an operating farm. 15 selected farm products. These dealers, For example, approximately two-thirds of processors, and others provided feed and the places included in "whole" farm con- supplies for poultry and livestock, provided tracts of the Conservation Reserve were not baby chicks, and furnished machinery and included in the 1959 Census of Agriculture equipment to farm operators and farm landor in the 1960 Sample Survey because such lords. These dealers, processors, and others places did not qualify as Census farms. having contracts with farmers had debts (There were approximately 214,000 which may have been reported by lending "whole" farm contracts covering approxi- agencies as agricultural loans, but the totals for these debts are not included in the estimately 20 million acres in effect under the mates given in the accompanying article. Conservation Reserve at the end of 1960.) (3) A re-examination of Survey ques- The debt on or related to these places would tionnaires for places omitted from the tabunot have been included in the estimated lations because they appeared not to fit the totals for the 1960 Survey. Many lending farm definition and for other reasons showed agencies count loans on such places as farm that an estimated 79,000 farms—mostly loans. small, noncommercial operations—prob- Other loans which were not included in ably should have been included. 1 Much of the remainder of this section is taken (4) Some farm operators and farm landfrom the 1960 Sample Survey of Agriculture, published by the Bureau of the Census. lords may have used funds classified by lend- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1585 ers as agricultural in nature for other pur- Supplementary Table 1 contains general poses and consequently may not have re- measures of the reliability of estimates, apported such loans as debts for the 1960 plicable to nearly all items. The measures Sample Survey. of sampling reliability are for varying num- (5) Some farm operators and farm land- bers of farms. To use the measures it is lords may have not fully reported the total necessary to ascertain the number of farms amount of their loans. There is the likeli- reporting the item or dollar amount. The hood of underreporting of debts because of first column provides for levels of numbers the difficulty of remembering the amounts of farms from 5,000 to 3,000,000. The secdue on loans, especially in cases where there ond and third provide measures of sampling were several different loans. reliability for number of farms and dollar (6) Because the estimates of debt were amounts. The sampling reliability for these made on the basis of reports for only a items is stated in terms of a per cent of the sample of farms, the estimates are subject to estimate of number of farms or of the dolsampling errors. The estimate of total debt lar amount. for farm operators has a sampling error of Supplementary Table 2 gives sampling 2.9 per cent, and the estimate of total farm reliability estimates for percentages based on landlord debt has a sampling error of 5.1 number of farms. The estimates are stated per cent. in terms of percentage points. (7) The estimates of debt by lending Supplementary Table 3 provides more agency or source of loan are subject to er- precise measures of sampling reliability for rors because some farm operators or farm selected items than those given in Supplelandlords did not report the actual holder of mentary Tables 1 and 2. the loan. For example, at the end of 1960 Supplementary Tables 1 and 2 show the individuals and lending agencies held about standard error of estimate, expressed as a $201 million of insured farm mortgages percentage of the estimate (relative standwhich were made and are serviced by the ard error or coefficient of variation). Sup- Farmers Home Administration. Many farm plementary Table 3 shows the standard error operators and landlords who owed such of estimate for percentages. debts probably considered the Farmers Following are examples of the use of these Home Administration, rather than the holder tables: Of the 988,000 farm operators with of the note, as the lender. This probably major real estate debt, 10 per cent reported accounts, in part, for the Survey estimates of life insurance companies as the source of Farmers Home Administration loans exceed- largest loan (text Table 2). How reliable is ing the mortgage loans reported by that this estimate? Supplementary Table 2 indiagency by approximately $231 million. cates that chances are about two out of three Statistical reliability of estimates. The esti- that the estimated per cent (10) does not mates given in this report are based upon differ by more than 0.8 of a percentage point data obtained for a sample of farms and from the "true" per cent. hence they are subject to sampling errors. How reliable is the estimate of major real Approximate measures of sampling errors estate debt owed to insurance companies by are given in Supplementary Tables 1, 2, 96,000 farm operators? Line 5 in column 3 and 3. of Supplementary Table 1 indicates that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1586 FEDERAL RESERVE BULLETIN • DECEMBER 1962 chances are about two out of three that the SUPPLEMENTARY TABLE 3 estimated amount ($1,676,000,000) does SAMPLING RELIABILITY OF ESTIMATES FOR SELECTED not differ by more than 12 per cent from the ITEMS FOR THE UNITED STATES, 1960 "true" amount. While the measures given in Supplemen- Estimate Sampling error of tary Tables 1, 2, and 3 indicate the general Item (thousands) (p e e s r ti m ce a n t t e ) 1 level of sampling reliability of the estimates, Farms: they do not completely reflect the effect of Number , 3,247 1.0 Acreage , 1,333,907 1.0 errors arising from sources other than sampl- Farm earnings and expense (dollars): ing, as for example, errors in the original Value of farm products sold 30,146,980 1.8 Cash operating expenses , 19,017,532 1.9 data obtained from farm operators or farm Nonfarm income , 7,415,924 3.4 landlords. Farm operator debt (dollars): Total 16,797,817 2.9 Secured 2 11,238,161 3.9 Owed to— Federal land banks 1,962,136 5.3 SUPPLEMENTARY TABLE 1 "Other" lending institutions 3. .. ., 861,586 9.2 Individuals from whom land was SAMPLING RELIABILITY OF ESTIMATES FOR NUMBER purchased under mortgage or deed of trust 1,508,644 6.3 OF FARMS AND FOR DOLLAR AMOUNTS FOR THE UNITED STATES, 1960 Farm landlord debt (dollars): Total 3,099,343 5.1 Secured * 2,629,575 5.4 Sampling error of estimate Owed to— Estimated number (per cent) 1 Federal land banks 602,865 8.9 of farms "Other" lending institutions 3.... 87,931 19.8 (thousands) Number of farms Dollar amounts Number of farms reporting— Nonfarm income 2,534 2.8 Farm-operator debt: 5 40 52 Total 1,897 2.5 10 30 37 Owed to: 25 16 23 Federal land banks 254 4.7 50 . 12 16 "Other" lending institutions 3. . 187 6.0 100 8 12 Individuals from whom land was 250 6 7 purchased under mortgage or < 1 S ,0 0 0 0 0 4 3 4 5 Farm-la d n ee d d lo o rd f t d r e u b st t 4 1 8 5 1 6 5 3 . . 8 4 2,000 2 3 3,000 2 2 1 Per cent of the estimate. The chances are about 2 out of 3 that the estimated total would not differ by more than the per cent shown 1 Per cent of the estimate. The chances are about 2 out of 3 that the from a total obtained by a complete census using the same proceestimated total would not differ by more than the per cent shown dures. from a total obtained by a complete census using the same proce- 2 All debt secured by real estate mortgages, deeds of trust, or land dures. purchase contracts. NOTE.—See also Note to Table 1. 3 This is the same category of "other" lenders that appears in Table 1 and does not include the institutions listed in that table. NOTE.—See also Note to Table 1. SUPPLEMENTARY TABLE 2 SAMPLING RELIABILITY OF ESTIMATES FOR SUPPLEMENTARY TABLE 4 PERCENTAGES BASED ON NUMBER OF FARMS FOR THE UNITED STATES, 1960 FARM-OPERATOR DEBT BY SIZE OF TOTAL DEBT, 1960 [In percentage points] Farm operators Estimated Estimated percentages 2 with debt Total debt number (t o h f o f u a s r a m n s d 1 s) 2 or 98 5 or 95 10 or 90 25 or 75 50 To o ta p l e d ra e t b o t r of Number Amount (thousands) Per cent (millions Per cent of dollars) 50 1.6 2.5 3.4 4.9 5.7 100 1.1 1.7 2.4 3.5 4.0 250 .7 1.1 1.5 2.2 2.5 Under $1,000 443 24 163 1 500 .5 .8 1.1 1.6 1.8 $1,000-1,999 233 12 325 2 1,000 .4 .6 .8 1.1 1.3 $2,000-4,999 394 21 1,258 7 1,315 .3 .5 .7 1.0 1.1 $5,000-9,999 359 19 2,498 15 2,000 .3 .4 .5 .8 .9 $10,000-19,999 263 14 3,619 22 3,250 .2 .3 .4 .6 .7 $20,000-39,999 141 7 3,755 22 $40,000 and over... 64 3 5,179 31 1 Base on which percentage was calculated. All classes 1,897 100 16,798 100 2 The chances are about 2 out of 3 that the estimated percentage would not differ by more than the percentage point shown from a percentage obtained by a complete census using the same procedures. i Excludes farmers reporting no debt. NOTE.—See also Note to Table 1. NOTE.—See also Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A NEW LOOK AT THE FARM DEBT PICTURE 1587 Other supplementary tables* Supplementary mentary Tables 6 and 7 show numbers of Tables 4 and 5 give the information on farm operators and/or landlords for whom which the bar charts were based. Supple- data are shown in text Tables 1 and 5. SUPPLEMENTARY TABLE 5 TYPES OF DEBT AND VALUE OF LAND AND BUILDINGS OF FARM OPERATORS WITH DEBT, BY AGE, 1960 [In dollars] Item All ages Under 35 35-44 45-54 55-64 65 and over Average value of land and buildings— Operated 45,790 46 094 47,352 47,773 45,203 34,190 Owned 26,205 15,631 24,166 28,475 31,081 27,829 Rented. 19,584 30,463 23,187 19,298 14,121 6,361 Average amount of debt— Total . . 8 853 9 567 9,834 8,892 7,410 4,940 Major real estate 5,247 5,317 5,756 4,963 4,561 2,883 Non-real-estate and related 3,606 4,250 4,079 3,929 2,849 2,057 NOTE.—See Note to Table 1. SUPPLEMENTARY TABLE 6 SUPPLEMENTARY TABLE 7 FARMS, OPERATORS, AND LANDLORDS: NUMBERS WITH NUMBER OF FARM-OPERATOR BORROWERS, 1960 DEBT, 1960 [In thousands] [Inthousands] Value of land and buildings operated Item Farms Operators Landlords All Characteristic classes Under $25,000- $100,000 Total 2,006 1,897 481 $25,000 99,999 and over By type of farm: Commercial—Total 1,529 1,440 428 Type of farm: Cash-grain 293 276 97 Cotton 137 119 60 All farms 1,897 955 764 178 Tobacco. 133 115 48 Commercial 1,440 565 699 176 Dairy 291 282 66 Cash-grain 276 45 174 58 Livestock 365 346 87 Cotton 119 71 34 14 Ot O he t r her . . 4 3 7 1 7 0 4 3 5 0 7 3 6 5 9 3 T D o a b ir a y cco 2 1 8 1 2 5 1 8 3 5 8 1 2 3 8 1 1 2 3 By source of credit: L M iv is e c s e t l o l c a k neous 3 3 4 0 6 3 1 9 3 6 1 1 13 9 4 7 5 3 3 8 Institutions: Commercial banks [ 902 139 Other 457 390 65 2 Federal land banks 254 110 Insurance companies.... 165 89 Area and ownership:1 Production credit associations 174 16 All areas 1,885 955 759 170 Fa i r s m tr e a r ti s o n Home Admin- n.a. 112 7 P F a u r ll t o o w w n n e e r r s s . •. 9 5 0 8 6 2 2 5 0 8 0 7 2 2 8 9 8 0 9 3 4 3 Other 187 27 Tenants 395 170 183 44 Others: Merchants and dealers.. 920 107 South2 524 395 107 23 Individuals 534 130 Full owners 245 198 40 7 Miscellaneous 268 48 Part owners 148 88 48 13 Tenants 132 110 19 3 n.a. Not available. Others 3 1,360 560 653 148 NOTE.—See Note to Table 1. Full owners 662 389 248 25 Part owners 434 112 242 81 Tenants 264 60 164 41 1 Approximately 12,000 manager farms are excluded. 2 States included are: Maryland, Delaware, Virginia, Kentucky North Carolina, Tennessee, South Carolina, Georgia, Alabama, Mississippi, Florida, Arkansas, and Louisiana. 3 All States other than Alaska, Hawaii, and those listed in Note 1. NOTE.—See also Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Section XIV.—FARM OPERATOR DEBTSJ OO (1) (2) oo If any part (or all) of this amount is secured by To ( t i a f l n a o m ne o , u m nt a r n k o w X o fo w r ed o m r o l r a t n g d a g p e u s r , c d h e a e s d e s c o o f n t t r r u ac s t t s , X-- How much money do you now 'None"). Report unpaid on this place, enter the owe to— principal. amount so secured (if none, mark \for "None" [303] A Federal Land Bank (or National Farm Loan Association)?. None • % _/00 None • $ /OO One of the most important changes in farming in recent years is the increase 304. Farmers Home Administration? . None • % .-/OO None • $ /OO in the amount of money required to buy, equip, stock, and operate farms. 305. An insurance company? None n $ ../oo None a $ 700 This has increased most farmers1 needs for credit. In order to get a measure 306. A commercial or savings bank? of farm credit requirements, and a more complete picture of the farm situa- (National or State Bank, Trust tion, we are making this survey of debts owed by farmers. Co., etc.)? None • %. /OO None D $__ /OO In filling this report, please report all money you owe, whether due now or 307. A production credit association?. None • $_ None • $ _ /OO in the future, relating to this place. "This place" refers to the land and 308. Other lending institutions? buildings you operate, as reported in question 7. (Mortgage company, livestock loan company, savings and loan The debts to be reported include all loans and advances, charge accounts, association, finance company, time purchases, and purchase contracts, including mortgages and deeds of State or county agency, etc.) None • $ /OO None • $ _/00 trust except: (1) price-support loans of the Commodity Credit Corporation, 309. Merchants and dealers (includand (2) debts to merchants and dealers for home appliances and family living ing cooperatives, mail order comexpenses (grocery, clothing, medical bills, etc.) panies, farm machinery companies,, and other manufac- IF YOU OWE A DEBT THAT RELATES TO BOTH THIS PLACE AND turers) for purchase of— OTHER FARMLAND THAT YOU OWN, FARMLAND THAT YOU RENT TO a. Tractors and farm machin- OTHERS OR HAVE WORKED ON SHARES BY OTHERS, OR NONFARM ery (including repairs)? NoneD /OO None• $ /oo BUSINESS THAT YOU OWN, PLEASE READ THE FOLLOWING INSTRUC- b. Autos and trucks (including TIONS: repairs)? None• 9— /OO NoneD $ . /oo Please report only the part of such joint debt that applies to this place. c. Gas, oil, and other fuel (ex- The debt to be reported for this place may be estimated as follows: cluding household fuel)? Nonea $ - /oo Nonea $— /oo 1. For each debt secured by real estate: d. Feed, seed, fertilizer? None• $ /oo Nonea $ /oo (a) Estimate the percent that the value of the land and buildings in this e. Livestock or poultry? None• 9... /oo None• $ /oo place, pledged as security for the debt, is to the total value of f. Other purchases from merall real estate pledged as security for the loan. chants and dealers, including building supplies, hardware, (b) Multiply this percent by the total real estate debt and enter the result custom work, and similar for the appropriate question. purchases (excluding family 2. For each debt not secured by real estate: living expenses)? None $ /ooNone a $ /OO (a) For each question and for each part of question 309 and question 310. An individual from whom you 310, estimate the percent of the total that was relating to this place. bought part or all of this farm—• (b) Multiply this percent for each question and for each part of question a. t U ru n s d t e ? r a mortgage or deed of None $ /ooNone D $ ZOO 309 and question 310, by the amount now owed and enter the result b. Under a land purchase confor the appropriate question or item. When figures for more than tract? None• $ /oo None • $ __/00 one item are to be entered for a question or part of a question, add 311. Any other individual, your landthe estimates for the several items before entering the total for the lord, a relative, a friend, an question or part of a question. estate, etc.? Nonea $—. /oo None D $ /OO 312. Miscellaneous (not elsewhere included) such as unpaid bills for 8 veterinary services, utility bills, past due taxes or insurance pre- I miums, and other purposes (excluding family living expenses)?. None a None D 9-. _/00 Give month and day 313. On what date was this questionnaire filled? 1960 NOTE.—Part of the questionnaire used in the 1960 Sample Survey of Agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Reserve Requirements Reduced The question has been raised whether the exemption provided by this amendment applies to The Board of Governors has amended Section a certificate of deposit issued to a foreign central 204.5—Supplement to Regulation D, so as to bank or other qualified foreign institution where reduce the reserves that member banks are rethe certificate is thereafter transferred to an indiquired to maintain against time (including savvidual or "nonqualified" institution prior to its ings) deposits. There is set forth below the text maturity. of the amended Supplement: Even though such a certificate may have been issued in negotiable form, the law prohibits pay- SUPPLEMENT TO REGULATION D ment by a member bank of interest at a rate in § 204.5—Supplement excess of that prescribed by the Board, unless the certificate represents a "deposit of" an institution Effective as to member banks in reserve cities at of a kind described in the amendment of October the opening of business on October 25, 1962, and as to all other member banks at the opening of business 15, 1962; and the certificate ceases to represent on November 1, 1962. such a deposit if it is transferred to an individual (a) Reserve percentages. Pursuant to the provior to an institution of a kind not described in the sions of Section 19 of the Federal Reserve Act and § 204.2(a) and subject to paragraph (b) of this Sec- amendment. To regard such a certificate as falling tion, the Board of Governors of the Federal Reserve within the exception provided by the October 15 System hereby prescribes the following reserve amendment would, in the Board's judgment, be balances which each member bank of the Federal Reserve System is required to maintain on deposit inconsistent with the intent and purposes of the with the Federal Reserve bank of its district: amendment. (1) If not in a reserve city— (i) 4 per cent of its time deposits, plus Accordingly, it is the opinion of the Board of (ii) 12 per cent of its net demand deposits. Governors that, in such a case, the depository (2) If in a reserve city (except as to any bank member bank may not pay interest at a rate exlocated in such a city which is permitted by the Board of Governors of the Federal Reserve System, ceeding the applicable maximum permissible rate pursuant to § 204.2(a)(2), to maintain the reserves under Regulation Q prevailing at the date of issue specified in subparagraph (1) of this paragraph)— (i) 4 per cent of its time deposits, plus of the certificate for private investors, i.e., indi- (ii) 16x/6 per cent of its net demand deposits. viduals and nonqualified institutions. In order to (b) Counting of currency and coin. The amount avoid misunderstanding on the part of private inof a member bank's currency and coin shall be counted as reserves in determining compliance with vestors, it is suggested that the bank include in the reserve requirements of paragraph (a) of this such certificates an appropriate provision regard- Section. ing the rate of interest payable to such investors. Interest Rate on Time Deposits of Foreign Central Banks Transferred to Other Persons Applicability of Margin Requirements to or Organizations Credit Extended to Corporation in Connection with Retirement As amended by the Act of October 15, 1962, of Stock Section 19 of the Federal Reserve Act exempts, for a period of three years, "time deposits of for- The Board of Governors has been asked whether eign governments, monetary and financial author- its Regulation T was violated when a dealer in ities of foreign governments when acting as such, securities transferred to a corporation 4,161 shares or international financial institutions of which the of the stock of such corporation for a considera- United States is a member" from the limitations tion of $33,288, of which only 10 per cent was prescribed by the Board of Governors pursuant to paid in cash. that Section on the rates of interest payable by If the transaction was of a kind that must be member banks on time deposits. included in the corporation's "general account" 1589 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1590 FEDERAL RESERVE BULLETIN • DECEMBER 1962 with the dealer (Section 220.3 of Regulation T), sought to be effectuated in those cases is quite difit would involve an excessive extension of credit in ferent from the purpose of the margin regulations, violation of Section 220.3(b)(l). However, the the decisions in question support the propriety of transaction would be permissible if the transaction not regarding a transaction as a "purchase" came within the scope of Section 220.4(f)(8), where this accords with the probable legislative which permits a "creditor" (such as the dealer) intent, even though, literally, the statutory definito "Extend and maintain credit to or for any cus- tion seems to include the particular transaction. tomer without collateral or on any collateral what- See Robert v. Eaton (CA 2 1954) 212 F. 2d 82, ever for any purpose other than purchasing or and cases and other authorities there cited. The carrying or trading in securities." Accordingly, the governing principle, of course, is to effectuate the crucial question is whether the corporation, in this purpose embodied in the statutory or regulatory transaction, was "purchasing" the 4,161 shares of provision being interpreted, even where that purits stock, within the meaning of that term as used pose may conflict with the literal words. U. S. v. in Regulation T. Amer. Trucking Ass'ns., 310 U. S. 534, 543, Upon first examination, it might seem apparent (1940); 2 Sutherland, Statutory Construction (3d that the transaction was a purchase by the corpo- ed. 1943) ch. 45. ration. From the viewpoint of the dealer the There can be little doubt that an extension of transaction was a sale, and ordinarily, at least, a credit to a corporation to enable it to retire debt sale by one party connotes a purchase by the securities would not be for the purpose of "purother. Furthermore, other indicia of a sale/pur- chasing . . . securities" and therefore would come chase transaction were present, such as a transfer within Section 220.4(f) (8), regradless of whether of property for a pecuniary consideration. How- the retirement was obligatory (e.g., at maturity) or ever, when the underlying objectives of the margin was a voluntary "call" by the issuer. If this is true, regulations are considered, it appears that they it is difficult to see any valid distinction, for this do not encompass a transaction of this nature, purpose, between (a) voluntary retirement of an where securities are transferred on credit to the indebtedness security and (b) voluntary retirement issuer thereof for the purpose of retirement. of an equity security. Section 7(a) of the Securities Exchange Act For the reasons indicated above, it is the opinion of 1934 requires the Board of Governors to pre- of the Board of Governors that the extension of scribe margin regulations "For the purpose of credit here involved is not of the kind which the preventing the excessive use of credit for the pur- margin requirements are intended to regulate and chase or carrying of securities." Accordingly, the that the transaction described does not involve an provisions of Regulation T are not intended to unlawful extension of credit as far as Regulation T prevent the use of credit where the transaction is concerned. will not have the effect of increasing the volume The foregoing interpretation relates, of course, of credit in the securities markets. only to cases of the type described. It should not It appears that the instant transaction would be regarded as governing any other situations; for have no such effect. When the transaction was example, the interpretation does not deal with completed, the equity interest of the dealer was cases where securities are being transferred to transmuted into a dollar-obligation interest; in someone other than the issuer, or to the issuer for lieu of its status as a stockholder of the corpora- a purpose other than immediate retirement. tion, the dealer became a creditor of that corpo- Whether the margin requirements are inapplicable ration. The corporation did not become the owner to any such situations would depend upon the of any securities acquired through the use of relevant facts of actual cases presented. credit; its outstanding stock was simply reduced by 4,161 shares. Orders Under Bank Merger Act The meaning of "sale" and "purchase" in the Securities Exchange Act has been considered by The Board of Governors of the Federal Reserve the Federal courts in a series of decisions dealing System has issued the following Orders and Statewith corporate "insiders" profits under Section ments with respect to applications for approval of 16(b) of that Act. Although the statutory purpose the merger or consolidation of certain banks: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1591 GENESEE MERCHANTS BANK & TRUST million as of June 30, 1962, has applied, pursuant CO., FLINT, MICHIGAN to the Bank Merger Act (12 U.S.C. 1828(c)), for the Board's prior approval of the consolidation of In the matter of the application of Genesee Merthat bank and Davison State Bank, Davison, Michichants Bank & Trust Co. for approval of consolidagan ("Davison Bank"), with deposits of $9 miltion with Davison State Bank. lion as of the same date. The banks would consolidate under the charter and title of Genesee, ORDER APPROVING CONSOLIDATION OF BANKS which is a member State bank of the Federal Reserve System. The three offices of Davison Bank There has come before the Board of Governors, would be operated as branches of Genesee as an pursuant to the Bank Merger Act of 1960 (12 incident to the consolidation, increasing from 21 U.S.C. 1828(c)), an application by Genesee Merto 24 the number of offices being operated by chants Bank & Trust Co., Flint, Michigan, a mem- Genesee. ber bank of the Federal Reserve System, for the The application for consolidation was made to Board's prior approval of the consolidation of that remedy an emergency situation arising from cerbank and Davison State Bank, Davison, Michigan, tain irregularities in the operation of Davison Bank also a member bank of the Federal Reserve Systhat resulted in losses depleting the bank's capital tem, under the charter and title of the former. As structure from approximately $1,032,000 to about an incident to the consolidation, the three offices of $330,000. As indicated in the Board's Order of Davison State Bank would be operated as branches approval of this date, action on the application has of the Genesee Merchants Bank & Trust Co. been expedited. Notice of the proposed consolidation, in form Under the Act, the Board is required to conapproved by the Board of Governors, has been sider, as to each bank involved, (1) its financial published, and reports on the competitive factors history and condition, (2) the adequacy of its involved in the proposed transaction have been furcapital structure, (3) its future earnings prospects, nished by the Comptroller of the Currency, the (4) the general character of its management, (5) Federal Deposit Insurance Corporation, and the whether its corporate powers are consistent with Department of Justice, pursuant to the provisions the purposes of 12 U.S.C, Ch. 16 (the Federal of said Act prescribing ten calendar days as the Deposit Insurance Act), (6) the convenience and period within which such notice must be published needs of the community to be served, and (7) the and such reports must be furnished when an emereffect of the transaction on competition (including gency exists requiring expeditious action. any tendency toward monopoly). The Board may Upon consideration by the Board of all relevant not approve the transaction unless, after considermaterial in the light of the factors set forth in ing all these factors, it finds the transaction to be said Act, in the public interest. IT IS HEREBY ORDERED, for the reasons set forth Banking factors. The financial history and conin the Board's Statement of this date, that said apdition, capital structure, and earnings prospects of plication be and hereby is approved, provided that Genesee are satisfactory. The financial history and said consolidation shall be consummated not later condition of Davison Bank were regarded as satthan three months after the date of this Order. isfactory prior to the irregularities and resultant Dated at Washington, D. C, this 20th day of depletion of the bank's capital structure mentioned November, 1962. above. Prospects for continuance by the bank of By order of the Board of Governors. successful operations have been seriously weakened Voting for this action: Unanimous, with all members by these developments, and the application was present. submitted as the most practicable course to pursue. (Signed) MERRITT SHERMAN, The resulting bank would be under the competent Secretary. management of Genesee, and its condition, capital [SEAL] structure, and earnings prospects would be satis- STATEMENT factory. There is no evidence that the corporate Genesee Merchants Bank & Trust Co., Flint, powers of the banks, as institutions having de- Michigan ("Genesee"), with deposits of $150.5 posit insurance under the Federal Deposit Insur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1592 FEDERAL RESERVE BULLETIN • DECEMBER 1962 ance Act, are or would be inconsistent with that U.S.C. 1828(c)), an application by Walker Bank Act. & Trust Company, Salt Lake City, Utah, for the Convenience and needs of the communities. The Board's prior approval of the merger of that bank main office and 14 branches of Genesee are located and First National Bank of Price, Price, Utah, in Flint (1960 city population 197,000; metropoli- under the charter and title of the former. As an tan area population 380,000), which is 71 miles incident to the merger, the main and only office northeast of Detroit. Genesee's six other branches of the latter bank would be operated as a branch are in small communities within a 20-mile radius of the former bank. Notice of the proposed merger, of Flint. in form approved by the Board, has been pub- Davison, with a 1960 population of 3,800, is lished pursuant to said Act. situated 10 miles east of Flint. In addition to its Upon consideration of all relevant material in main office, Davison Bank has a branch in Bentley, the light of the factors set forth in said Act, inwhich is located about halfway between Flint and cluding reports furnished by the Comptroller of Davison, and another branch in Goodrich, which the Currency, the Federal Deposit Insurance Coris 8 miles south of Davison and 10 miles southeast poration, and the Department of Justice on the of Flint. The population of Davison Bank's service competitive factors involved in the proposed area is about 15,000. The offices of Davison Bank merger, are the only banking facilities in the three com- IT IS HEREBY ORDERED, for the reasons set forth munities which, like Flint, are dependent econom- in the Board's Statement of this date, that said ically on the automotive industry. Consummation application be and hereby is approved, provided of the proposed transaction would assure contin- that said merger shall not be consummated (a) uance of banking offices in these three communities within seven calendar days after the date of this and would expand banking services in the service Order or (b) later than three months after said area to some degree. date. Competition. As Davison Bank has been com- Dated at Washington, D. C, this 21st day of petitive with other banks serving the Flint-Davison November, 1962. area, the effect of the proposed consolidation on By order of the Board of Governors. competition would probably not be favorable. This Voting for this action: Chairman Martin, and Goverconsideration, however, is outweighed by the need nors Balderston, Mills, Shepardson, and Mitchell. Votfor providing the public with the continued serv- ing against this action: Governor Robertson. Absent ices of offices of a sound bank. and not voting: Governor King. Summary and conclusion. In view of the serious (Signed) MERRITT SHERMAN, depletion of its capital accounts, Davison Bank is Secretary. not likely to continue to be competitive. Moreover, [SEAL] consummation of the proposal would assure con- STATEMENT tinuance of the only banking offices located in the three communities served by Davison Bank. These The Walker Bank & Trust Company, Salt Lake considerations clearly offset any adverse effect from City, Utah ("Walker"), with deposits of $180.3 the transaction upon banking competition. million,* has applied, pursuant to the Bank Merger Accordingly, the Board finds the proposed con- Act of 1960 (12 U.S.C. 1828(c)), for the Board's solidation to be in the public interest. prior approval of the merger of that bank and the First National Bank of Price, Price, Utah ("Price WALKER BANK & TRUST COMPANY, Bank"), with deposits of $7.3 million.* The banks SALT LAKE CITY, UTAH would merge under the charter and title of Walker, In the matter of the application of Walker Bank which is a State-chartered member bank of the Federal Reserve System, and as an incident to the & Trust Company for approval of merger with merger, the main and only office of Price Bank First National Bank of Price. would be operated as a branch of the resulting ORDER APPROVING MERGER OF BANKS bank, increasing the number of its offices from thirteen to fourteen. There has come before the Board of Governors, pursuant to the Bank Merger Act of 1960 (12 * As of March 26, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1593 Under the law, the Board, as to each of the principal financial, commercial, and industrial cenbanks involved, is required to consider (1) its ter for the region. Walker also operates four financial history and condition, (2) the adequacy branches in four communities elsewhere in Salt of its capital structure, (3) its future earnings Lake County, which has a population of 383,000, prospects, (4) the general character of its man- as well as a branch in Provo which serves Utah agement, (5) whether its corporate powers are County, with a population of 107,000, and a consistent with the purposes of the Federal De- branch in Logan which serves Cache County, with posit Insurance Act, (6) the convenience and a population of 36,000. Carbon County, of which needs of the community to be served, and (7) the the city of Price is the county seat, is separated effect of the transaction on competition (including from Salt Lake City and the central Utah Valley any tendency toward monopoly). The Board may by the Wasatch mountain range. By road, the two not approve the request unless, after considering cities are 121 miles apart. Walker's nearest branch all these factors, it finds the transaction to be in the is 67 miles from Price. public interest. Coal mining, cattle raising, and the growing of For convenience, the first five of these factors sugar beets are the principal economic pursuits in may be considered together as "banking factors." Carbon County and adjoining Emery County, The sixth and seventh factors are considered sepa- which together form a natural trade and economic rately. area. There are three banks now serving the two- Banking factors. The capital structure and fi- county area, Price Bank, the Carbon Emery Bank nancial history and condition of Walker are re- (also located in the city of Price), and the Helper garded as generally satisfactory, and the condition State Bank, which is located in the town of Helper, of the resulting bank should also be satisfactory. seven miles north of Price, and is affiliated with Price Bank, on the other hand, has suffered during Price Bank through common stock ownership. recent years from the effects of apparently ir- Real estate loans make up more than half the reconcilable differences of opinion between two total loans in each of the three banks, and it apgroups of shareholders who together own the con- pears that the Director of the Federal Housing trolling interest in the bank. These differences Administration for the State of Utah has expressed have been responsible for deterioration in the the need for an active and qualified FHA Title I bank's general condition, and have made it very and Title II lender in the Price area to satisfy difficult for the Board of Directors to agree on present demands. Reportedly, such financing has management policies for the bank. While the dif- been obtained from lenders outside the area, and ferences continue, it would be almost impossible the resulting bank, it is alleged, would be more to attract successor management. Management of active in this field of lending in Carbon and Emery Walker is regarded as highly capable, and will be Counties. None of the Carbon County banks now able to attract satisfactory officers, as well as to offer trust services, and it is expected that the remaintain sound and progressive policies at Price sulting bank will offer trust services in Price. Bank. The prospects for earnings of Walker are It also appears that Price Bank has found it satisfactory, and the prospects for the remaining necessary in recent years to place a greater porbank should be equally so. Walker is the only sub- tion of large line paper with other banks than it sidiary in Utah of Western Bancorporation, which was able to retain for itself. Much of this paper has 24 subsidiary banks in 11 western States hold- was placed in participation lines with the other ing aggregate deposits of $5,277 million. There is two banks in Carbon County, and there is no reano evidence that the corporate powers of the banks son to suppose that this practice would not be conare, or would be, inconsistent with the Federal tinued if the Board's permission for the merger Deposit Insurance Act. were refused. However, it seems probable that Consideration of the banking factors, therefore, some advantage will accrue to the community lends some support for approval of the merger. from having a bank available with a larger lend- Convenience and needs of the communities to ing limit. be served. Walker's head office and five of its On the whole, then, the convenience and needs branches are located in Salt Lake City, which has of the city of Price and of the two-county area a population of approximately 190,000 and is a generally should be somewhat better served, if not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1594 FEDERAL RESERVE BULLETIN • DECEMBER 1962 greatly, as a result of the proposed merger. quisition by the holding company was the only Competition. There is no existing competition practicable remedy. between Walker and Price Bank. At the present The former proposal would have united a vigtime, Walker has some trust business in Carbon orous bank, the strongest in the area, with a hold- County, but since Price Bank has had no plans ing company system which had already achieved for establishing a trust department, and would a predominant position within the State, with only probably not do so if it remained independent, the promise of a relatively insignificant increase there would appear to be no diminution in poten- in benefits to the banks, the communities, and the tial competition as a result of the merger. areas concerned as a result of the acquisition. On Early this year, the Board denied the applica- the other hand, the present proposal would unite tion of First Security Corporation, Salt Lake City, a substantially weaker bank, which has experi- Utah ("First Security"), pursuant to Section 3(a) enced serious management problems as to which of the Bank Holding Company Act of 1956 (12 there appears to be no other viable solution, with U.S.C. § 1842(a)), for prior approval of the a bank which is until the present represented in acquisition by First Security of all the voting stock only three of 29 counties in the State, and whose of the Carbon Emery Bank, Price, Utah (1962 proportion of total banking deposits in Utah is Federal Reserve BULLETIN, page 295). If the ap- 20.5 per cent and of total loans for the State is plication had been approved, First Security had 17.8 per cent, as against 31.9 per cent and 33.9 planned to operate the Carbon Emery Bank as an per cent, respectively, for First Security. office of First Security Bank of Utah, Walker's Moreover, since it is anticipated that the Helper largest competitor in Salt Lake City and elsewhere. State Bank, hitherto linked to Price Bank through The Carbon Emery Bank is the strongest bank in common ownership, would hereafter operate inthe two counties, the ninth largest in the State, and dependently of it, and the Helper bank has shown the only bank in the State with a head office south a modest but steady growth in recent years, severof Salt Lake City which had total deposits, at ing the connection with Price Bank should in fact June 30, 1961, in excess of $10 million. First Se- provide the area involved with an additional choice curity, as of December 31, 1960, already con- of banking facilities, and to this extent increase trolled two banks in Utah, operating 43 banking competition. offices in 16 of the 29 counties in the State, rep- Summary and conclusion. It appears that Price resenting 36 per cent of the banking offices in the Bank will be strengthened in certain respects as a State, and having 32 per cent of the total resources result of the proposed merger, that services to the and 31 per cent of the total deposits of all banks communities concerned will be somewhat imin the State. proved, that virtually no competition exists between In denying the application under the Bank Hold- the merging banks and consequently little or no ing Company Act, the Board concluded that even competition will be eliminated, and that neither though acquisition of the Carbon Emery Bank the position of Walker Bank in Salt Lake City nor would not have resulted in a substantial percentage its position in Price, as compared with the present increase in the total resources of First Security's position of Price Bank, will be enhanced to a desystem, the introduction of that system into Carbon gree which would damage the competitive position County "would result in a degree of dominance of other banks in the respective communities. In that would endanger the future competitive abil- addition, as a result of the merger, there would be ity and growth potential of the area's remaining three alternative sources of banking facilities in banks." Nor would this dominance have been off- the two-county area, in contrast to two, as at presset, the Board held, by any significant increase in ent. benefits to the communities and area concerned, For these reasons, the Board finds that the proor improvement in the banking factors. Carbon posed merger would be in the public interest. Emery was already a strong, well-managed bank, DISSENTING VIEWS OF GOVERNOR ROBERTSON meeting on an adequate and indeed vigorous basis most of the needs of its area. While First Security While I recognize that there may be cases in alleged that a problem existed as to management which a proposed merger between two banks can succession, there was nothing to show that ac- be justified solely on the basis of management and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1595 ownership difficulties (and the resulting condition STATEMENT of the bank to be absorbed), I am not convinced Central Trust Company Rochester, N. Y., Rochthis is one of them. ester, New York ("Central Trust"), with deposits of $107.6 million as of June 30, 1962, has ap- CENTRAL TRUST COMPANY plied, pursuant to the Bank Merger Act of 1960 (12 U.S.C. 1828(c)), for prior approval by the ROCHESTER, NEW YORK Board of the merger of that bank and Prattsburgh In the matter of the application of Central State Bank, Prattsburg, New York ("Prattsburgh Trust Company Rochester, N. Y. for approval Bank"), with deposits of $2 million as of the same of merger with Prattsburgh State Bank. date. The banks would merge under the charter and title of Central Trust, which is a member State bank of the Federal Reserve System; and, as ORDER APPROVING MERGER OF BANKS an incident to the merger, the single office of Prattsburgh Bank would become a branch of There has come before the Board of Governors, Central Trust, increasing the number of offices pursuant to the Bank Merger Act of 1960 (12 of Central Trust from 10 to 11. U.S.C. 1828(c)), an application by Central Trust Under the Act, the Board is required to con- Company Rochester, N. Y., Rochester, New York, sider, as to each of the banks involved, (1) its a member bank of the Federal Reserve System, financial history and condition, (2) the adequacy for prior approval by the Board of the merger of its capital structure, (3) its future earnings of that bank and the Prattsburgh State Bank, prospects, (4) the general character of its manage- Prattsburg, New York, under the charter and ment, (5) whether its corporate powers are contitle of the former. As an incident to the merger, sistent with the purposes of 12 U.S.C, Ch. 16 (the the single office of Prattsburgh State Bank would Federal Deposit Insurance Act), (6) the convenbe operated as a branch of the Central Trust Comience and needs of the community to be served, pany Rochester, N. Y. Notice of the proposed and (7) the effect of the transaction on competimerger, in form approved by the Board, has been tion (including any tendency toward monopoly). published pursuant to said Act. The Board may not approve the transaction un- Upon consideration of all relevant material in les, after considering all these factors, it finds the the light of the factors set forth in said Act, intransaction to be in the public interest. cluding reports furnished by the Comptroller of Banking factors. The financial history and conthe Currency, the Federal Deposit Insurance Cordition of Central Trust are satisfactory, and its poration, and the Department of Justice on the capital structure is reasonably adequate. The earncompetitive factors involved in the proposed ings prospects of the bank are favorable, and its merger, management is competent. The financial history IT IS HEREBY ORDERED, for the reasons set forth and condition of Prattsburgh Bank were regarded in the Board's Statement of this date, that said as reasonably satisfactory until 1957. Since then application be and hereby is approved, provided the bank has had difficulties resulting largely from that said merger shall not be consummated (a) poor crop prices that led to deterioration in the within seven calendar days after the date of this asset condition of the bank and from loan ad- Order or (b) later than three months after said ministration. The capital structure of Prattsburgh date. Bank is reasonably adequate and its earnings have Dated at Washington, D. C, this 23rd day of been satisfactory, but heavy losses on loans have November, 1962. absorbed a large percentage of earnings. Consum- By order of the Board of Governors. mation of the transaction would provide strength- Voting for this action: Chairman Martin, and Gover- ened management and resources in dealing with nors Balderston, Robertson, Shepardson, King, and the difficulties that have faced the bank during Mitchell. Absent and not voting: Governor Mills. recent years. The financial condition, capital struc- (Signed) MERRITT SHERMAN, ture, earnings prospects, and management of the Secretary. bank resulting from this transaction would be satisfactory. There is no indication that there is [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1596 FEDERAL RESERVE BULLETIN • DECEMBER 1962 or would be any inconsistency with the provisions holding companies for approval of the acquisiof 12 U.S.C., Ch. 16. tion of voting shares of certain banks: Convenience and needs of the community. Five of the ten offices of Central Trust are in Rochester, BRENTON COMPANIES, INC., the largest city in north-central New York (1960 DES MOINES, IOWA population 319,000); four of its other five offices In the matter of the applications of Brent on are within a seven-mile radius of the city in Mon- Companies, Inc. for permission to acquire stock roe County, and one is about twenty-five miles in four banks in Iowa. east of Rochester, in Wayne County. Prattsburg (1960 population 690) is sixty miles south of ORDER APPROVING APPLICATIONS UNDER Rochester, and Prattsburgh Bank is the only bank- BANK HOLDING COMPANY ACT ing office in the village. There have come before the Board of Gover- Consummation of this proposal would affect nors, pursuant to Section 3(a) (2) of the Bank principally the convenience and needs of the Pratts- Holding Company Act of 1956 (12 U.S.C. 1842) burg area. The Prattsburgh Bank, as a branch of and Section 222.4(a)(2) of Regulation Y issued Central Trust, would offer a number of banking by the Board of Governors (12 CFR 222.4(a)services not now available in Prattsburg, such as (2)), four applications by Brenton Companies, trust services, home equipment loans, and vari- Inc., Des Moines, Iowa, for the Board's prior apous types of business and installment loans. proval of the acquisition of 80 per cent or more Competition. The competitive position of Cen- of the outstanding voting shares of Poweshiek tral Trust would not be appreciably changed by County National Bank of Grinnell, Grinnell, Iowa; this merger. It is now, and would continue to be The First National Bank of Perry, Perry, Iowa; after the merger, the fourth largest bank in the Brenton State Bank, Dallas Center, Iowa; Jeffercity of Rochester. Prattsburgh Bank is over 50 son State Bank, Jefferson, Iowa. miles from the nearest branch of Central Trust, As required by Section 3(b) of the Act, the and there is little, if any, competition between the Board forwarded notice of the applications contwo banks. cerning the two national banks to the Comptroller Prattsburgh Bank is regarded as having a possi- of the Currency and notice of the applications conble service area within a 17-mile radius of its cerning the two State banks to the Superintendent office. It ranks fifth in deposits among the eight of Banking for the State of Iowa. In replying to banking offices within this area and competes to such notice the Comptroller stated that he had a small degree with them, but it serves principally no reason to object to the acquisition of the stock Prattsburg and its immediate environs. of the national banks by Applicant. The Superin- Summary and conclusion. Consummation of tendent of Banking responded by recommending this proposal should not have a significant effect favorable action on the applications concerning upon banking competition. If effectuated, the the State banks. merger would provide the office of Prattsburgh A notice of the applications was published in Bank, as a branch of Central Trust, with strength- the Federal Register on July 24, 1962 (27 Federal ened management and resources in dealing with Register 6996), providing for the filing of comthe problems confronting the bank. Broader bank- ments and views regarding the proposed acquisiing services would be offered to the banking public tions. The time provided for the filing of such in Prattsburg and vicinity. comments and views has expired and all such com- Accordingly, the Board finds the proposed trans- ments and views filed with the Board have been action to be in the public interest. considered by it. IT IS HEREBY ORDERED, for the reasons set forth Orders Under Section 3 in the Board's Statement of this date, that said of Bank Holding Company Act applications be and hereby are approved, provided that the acquisitions so approved shall not The Board of Governors of the Federal Re- be consummated (a) within seven calendar days serve System has issued the following Orders and after the date of this Order or (b) later than three Statements with respect to applications by bank months after said date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1597 Dated at Washington, D. C. this 19th day of holder of each of the four subject banks, thereby November, 1962. enabling Applicant to control 25 per cent of the By order of the Board of Governors. voting shares of each bank through such voting trust agreements. This action was requested in Voting for this action: Governors Mills, Robertson, Shepardson, and Mitchell. Absent and not voting: order to permit Applicant to continue furnishing Chairman Martin, and Governors Balderston and King. services to or performing services for the four banks, in conformity with Section 4(a) of the (Signed) MERRITT SHERMAN, Act. Secretary. The financial history and condition, prospects, [SEAL] and management of both Applicant and each of STATEMENT the four banks are satisfactory. The Brenton Companies, Inc., Des Moines, Since a majority of the stock of each of the Iowa ("Applicant"), a bank holding company, subject banks and of Applicant is owned by the has applied, pursuant to Section 3 (a) (2) of the Brenton family interests, the proposed acquisitions Bank Holding Company Act of 1956 ("Act"), by Applicant will result only in transferring direct for the Board's prior approval of the acquisition ownership of the banks from the Brenton family of 80 per cent or more of the outstanding voting interests to the Applicant corporation. There is no shares of the Poweshiek County National Bank evidence that the proposed acquisition will result of Grinnell, Grinnell, Iowa; The First National in any substantial change in the operation of the Bank of Perry, Perry, Iowa; Brenton State Bank, banks involved. Therefore, it is felt that the trans- Dallas Center, Iowa; Jefferson State Bank, Jeffer- action will have no material effect on the conson, Iowa. venience, needs, or welfare of the areas serviced Statutory factors. Section 3(c) of the Act re- by the subject banks. Nor does it appear that the quires the Board in each instance to take into acquisitions proposed will have any significant efconsideration the following five factors: (1) the fect upon banking competition or that the acquisifinancial history and condition of the holding com- tions will expand the size or extent of banking pany and banks concerned; (2) their prospects; resources under Applicant's control beyond limits (3) the character of their management; (4) the consistent with adequate and sound banking, the convenience, needs, and welfare of the communi- public interest, and the preservation of competition ties and areas concerned; and (5) whether or not in the field of banking. the effect of the acquisitions would be to expand It is the judgment of the Board, upon considerathe size or extent of the bank holding company tion of the facts of the case in the light of statusystem involved beyond limits consistent with tory factors and the general purposes of the Act, adequate and sound banking, the public interest, that this application should be approved. and the preservation of competition in the field of banking. MARINE MIDLAND CORPORATION, Discussion. The Applicant was organized in BUFFALO, NEW YORK 1948 under the laws of Iowa, for the purpose of In the matter of the application of Marine Midmanaging the Brenton banks and to hold the bank land Corporation, Buffalo, New York for prior stocks which had been previously owned by approval of the acquisition of 100 per cent of the another Brenton corporation. voting shares of the Security National Bank of A majority of the stock of each of the four Long Island, Huntington, New York. subject banks has been owned since before the passage of the Act by Applicant and/or by indi- ORDER DENYING APPLICATION vidual stockholders who are members of the Bren- UNDER BANK HOLDING COMPANY ACT ton family, which family also owns a majority of the stock of the Applicant. In addition, Applicant There has come before the Board of Governors, has provided management services for the banks pursuant to Section 3(a)(2) of the Bank Holding for many years. In 1960 the Applicant requested Company Act of 1956 (12 U.S.C. 1842) and and received approval from the Board to enter Section 222.4(a)(2) of Federal Reserve Regulainto voting trust agreements with a major stock- tion Y (12 CFR 222.4(a)(2)), an application on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1598 FEDERAL RESERVE BULLETIN • DECEMBER 1962 behalf of Marine Midland Corporation, Buffalo, Act"), for the Board's prior approval of the ac- New York, for the Board's prior approval of the quisition of 100 per cent of the voting shares of acquisition of 100 per cent of the voting shares the Security National Bank of Long Island ("Seof the Security National Bank of Long Island, curity"), Huntington, New York. Huntington, New York. At a public oral presentation of views conducted As required by Section 3(b) of the said Act, before the Board on September 17, 1962 the Apthe Board gave notice of receipt of the application plicant and representatives of certain of Security's to the Comptroller of the Currency, soliciting his stockholders submitted arguments in support of views and recommendation. Although not received the application, and the Franklin National Bank, within the statutory period of thirty days specified one of Security's competitors, voiced opposition in the Act for purposes of determining whether a to the application. hearing must be held, the Comptroller submitted Views and recommendations of supervisory aua recommendation, dated June 5, 1962, that the thority. As required by Section 3(b) of the Act, application be denied. the Board gave notice of receipt of the application A Notice of Receipt of Application was also to the Comptroller of the Currency. By letter dated published in the Federal Register on May 10, June 5, 1962, the Comptroller recommended dis- 1962 (27 F.R. 4496), which provided an oppor- approval of the application, citing the reasons tunity for submission of comments and views re- given in his letter of January 22, 1962 to the Board garding the proposed acquisition. Following receipt recommending disapproval of the Chase Manhatof comments and views, the Board ordered a public tan-Hempstead Bank and Chemical Bank-Long oral presentation of views, notice of which was Island Trust merger proposals and the Morgan published in the Federal Register on August 1, New York State Corporation holding company ap- 1962 (27 F.R. 7582). The said oral presentation plication (see 1962 Federal Reserve BULLETIN 544, was conducted before the Board on September 17, 548, and 567, respectively); namely, that while 1962, and all persons who requested an opportu- entry of large New York banks or holding comnity to appear within the period of time specified panies into the counties adjacent to New York in the published notice were heard and were given City on a gradual basis may be in the public interopportunity to submit further written expressions est, incursion on an "en masse" basis would not be. of views. Concurrent with the filing of the subject applica- Having considered all matters properly before tion with the Board, Applicant also sought approthe Board in this proceeding, including the above- val of the proposed transaction from the New mentioned comments and views, York State Banking Board, as required by Section IT IS ORDERED, for the reasons set forth in the 142 of Article III-A of the New York Banking Board's Statement of this date, that said applica- Law. On July 18, 1962, the State Superintendent tion be and hereby is denied. of Banks submitted a report to the State Banking Dated at Washington, D. C, this 21st day of Board recommending approval of the application, November, 1962. which recommendation was adopted the same day. By order of the Board of Governors. In the view of the Superintendent, no adverse considerations bearing upon banking competition or Voting for this action: Chairman Martin, and Governors Balderston, Robertson, Shepardson, and King. the public interest and convenience were embodied Voting against this action: Governor Mitchell. Ab- in the proposal. staining: Governor Mills. Statutory factors. Section 3(c) of the Act requires the Board to take into consideration the fol- (Signed) MERRITT SHERMAN, Secretary. lowing five factors: (1) the financial history and condition of the holding company and bank con- [SEAL] cerned; (2) their prospects; (3) the character of STATEMENT their management; (4) the convenience, needs, and Marine Midland Corporation ("Applicant"), welfare of the communities and the area con- Buffalo, New York, a registered bank holding cerned; and (5) whether the effect of the acquisicompany, has applied, pursuant to Section 3 (a) (2) tion would be to expand the size or extent of the of the Bank Holding Company Act of 1956 ("the bank holding company system involved beyond Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1599 limits consistent with adequate and sound bank- Prospects. During the period 1958-1961, Appliing, the public interest, and the preservation of cant and its subsidiary banks showed consistent competition in the field of banking. growth. In this period the system's total deposits Financial history and condition. Applicant now increased from $1.94 billion to $2.54 billion; controls 11 banks which, as of December 31, 1961, total assets increased from $2.21 billion to $2.87 operated 181 banking offices in 105 communities billion; and total capital accounts increased from in the State of New York and had an aggregate $154 million to $205 million. It appears that conof over $2.5 billion in total deposits. These banks, tinued growth can be expected as the economies with their total deposits, are the following: The of New York State and the country grow and, Marine Trust Company of Western New York, in light of Applicant's past history, the Board is Buffalo, $784 million; The Marine Midland Trust of the view that the prospects of Applicant are Company of New York, New York City, $770 satisfactory. million; Genesee Valley Union Trust Company, Security is the third largest commercial bank Rochester, $233 million; Marine Midland Trust headquartered on Long Island and the largest Company of Central New York, Syracuse, $170 headquartered in Suffolk County; as of September million; Marine Midland Trust Company of South- 1962, it operated 33 banking offices, its head office ern New York, Elmira, $146 million; Marine Mid- and 24 branches in Suffolk County and 8 branches land Trust Company of the Mohawk Valley, in Nassau County, as contrasted with only a main Utica, $121 million; The Northern New York office in 1951. Security almost doubled its total Trust Company, Watertown, $79 million; Marine deposits and total assets in the period 1957-1961, Midland National Bank of Southeastern New and, according to its 1961 Annual Report, ex- York, Poughkeepsie, $77 million; The Manufac- pects to increase resources to $400 million within turers National Bank of Troy, $66 million; Chau- five years (compared with a present level of $244 tauqua National Bank of Jamestown, $65 million; million). and Marine Midland Trust Company of Rock- Nassau and Suffolk Counties cover almost all land County, Nyack, $28 million. of Long Island, the balance being accounted for Since approximately 95 per cent of Applicant's by Kings and Queens Counties which are located assets consist of its investments in shares of its at the extreme western portion and are part of subsidiary bank, the financial condition of these New York City. The Nassau and Suffolk County banks has an intimate bearing on the financial areas are among the most rapidly growing areas condition of Applicant. On the basis of all avail- in the nation, both in population and in business able information, the Board regards the financial activities. From 1950 to 1961, Suffolk County grew from a population of 276,000 to 700,000, condition of Applicant's subsidiary banks and of and by 1975 its population is expected to exceed Applicant itself to be satisfactory. 1,450,000. During the same period, the popula- Security was organized as a national bank in tion of Nassau County increased from 642,000 to 1902 and in 1952 began an expansion program 1,300,000, and by 1975 the total is expected to that, through September 1962, has added 32 banking offices,1 24 in Suffolk County and 8 in Nassau be around 2,210,000. Indicative of the commercial growth trend in this area is the fact that some County, either through merger or by the establish- 2,000 industrial plants with 128,000 employees ment of new branches. As of December 31, 1961, were located in the two counties in question at the Security had total deposits of approximately $212 million2 and book capital accounts of $15 mil- end of 1961, as compared with 1,524 plants employing 100,400 in 1956. lion. The Board regards Security's present financial The growth prospects for Suffolk and Nassau condition as reasonably satisfactory, and its finan- Counties inevitably will result in corresponding decial history as satisfactory. mands for the growth of Security and its competitors, particularly in the areas of increased capital, 1This excludes 1 banking "facility" at a military increased services, and adequate management and installation in Suffolk County which is not counted personnel. However, although the Board recogas a branch for statistical purposes. 2 As of June 30, 1962, total deposits had grown to nizes that the rapid expansion of banking facilities $221.5 million. and services in Nassau and Suffolk Counties to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1600 FEDERAL RESERVE BULLETIN • DECEMBER 1962 keep pace with the anticipated rate of growth of about their investment in the bank's stock. population and business in the area may entail Assuming that these representations are substancertain problems relating to adequacy of capital, tially correct and that Applicant would, through management, and personnel for the banks in the control of Security, take remedial action, the cirarea, it does not appear that the only answer, as cumstances in this case bearing on the statutory far as Security is concerned, is affiliation with factor of character of management could be re- Applicant. garded as weighing, in some measure, in favor of For example, the raising of additional capital approval of the application. In the Board's judgmight very well be accomplished by the sale of ment, however, consummation of the proposed Security's own stock. In this connection, it should transaction is not the only vehicle by which such be noted that on October 1, 1962, the market management problems as Security may have can value of Security's stock was $29.00 per share, be solved. A bank the size of Security should be more than twice its December 31, 1961 book able to cope with its own management problems value of $13.75, and during 1961 Security raised through exercise of determined willingness and, $1,898,000 from the sale of 97,371 shares of its as commented by one witness at the oral presenstock at $19.50 per share. There is no reason to tation, with Security "off the auction block" the believe that the raising of capital in this manner attraction of such additional competent personnel could not be repeated in the future as the oc- as may be needed should be facilitated. Accordcasion demands. ingly, although management considerations could It is also believed that Security, with resources be regarded as tending to favor approval in this of $244 million, and the expectation, by its own case, they are by no means compelling. statement, of an increase to $400 million within Convenience, needs, and welfare of the area five years, is of sufficient size to carry out a well- involved. The principal area with respect to which organized program for acquiring, developing, and the statutory factors of convenience, needs, and training capable personnel to improve its staff welfare are to be considered is that served by and to meet the area's demands for additional Security. As previously noted, Security has 25 services. banking offices in Suffolk County and 8 in Nassau Accordingly, it is the view of the Board that County. According to the application, very little Security's prospects are satisfactory, whether or of Security's business is derived from Kings and not it is affiliated with Applicant. Queens Counties, and it is stated that, because of Character of management. In light of the past the "retail" nature of Security's business and behistory of Applicant and its subsidiary banks, it is cause this business is confined largely to the Counconcluded that its management is satisfactory. ties in which its banking offices are located, the So far as concerns Security, at the public por- appropriate "area" in this case is Suffolk and tion of the oral presentation before the Board on Nassau Counties. September 17, 1962 testimony was offered by rep- Applicant's case with respect to convenience, resentatives of minority shareholders of Security, needs, and welfare rests largely upon the premise favoring the proposed transaction on the ground that the phenomenal residential and business that Security's management is unsatisfactory and growth that Suffolk and Nassau Counties have ex- Applicant will remedy this situation. It was alleged perienced in recent years will continue, and as that Security had been subject to poor management such expansion takes place there will be increasduring the 1950's, resulting in substantial losses ing demands for specialized banking services with to the bank in connection with loans made to Alex- respect to trust matters (both personal and corander Guterma and associates, and that certain porate), municipal financing, commercial loans, of Security's directors who were in office at the international transactions, accounts receivable and time of the alleged mismanagement are still in- inventory financing, and business and industrial cumbent. Comment was also offered concerning development advice. It is Applicant's position that alleged conflicts of interest arising out of the out- many of these services are now available only side business interests of certain directors, and it from Security's larger local competitors, the was alleged that many stockholders are dissatis- Franklin National Bank and the Meadow Brook fied with Security's management and concerned National Bank, or through large New York City Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1601 LAW DEPARTMENT banks 3 acting either in direct competition with these counties to New York City and the availbanks in the area involved or as correspondents ability of the fiduciary activities of the large New for the smaller local banks, and that consumma- York City banks—particularly in the area of cortion of the proposed transaction will enable Se- porate demands—probably accounts for this situacurity to expand the availability of such services tion. Certainly the added trust services mentioned in Suffolk and Nassau Counties. by Applicant would represent a convenience to Apart from the foregoing types of services Security's customers, both present and potential, which Applicant claims could be offered by Se- in Suffolk and Nassau Counties, but it seems uncurity following affiliation, the accrual of certain likely that any actual "needs" in this area are collateral benefits are cited as also having a bear- or will be unserved. ing on the statutory considerations of convenience, A similar conclusion is compelled with respect needs, and welfare of the area concerned; viz., to the other services, such as municipal financing, capital adequacy and availability of funds, cost commercial loans, international transactions, and and profit controls, and personnel analysis and accounts receivable and inventory financing. Altraining. Improvements in these areas, it is though customers in Suffolk and Nassau Counclaimed, will benefit Security's customers. ties requiring such services might find it con- Viewed in perspective, the representations re- venient to have another source available, the garding the benefits which would accrue to Se- New York City banks and/or Security's larger curity and its customers through affiliation with Long Island-based competitors, Franklin National Applicant in terms of expanded services and im- Bank and Meadow Brook National Bank, seem proved operations do not weigh heavily in favor able to meet present demand for such services, of approval of the application. Granted, such ex- and there has been no showing of any needs in panded services and improved operations would these areas going unsatisfied. Further, there has be directly beneficial to Security and, to some ex- been no suggestion that these same banks will tent, advantageous to its customers. However, so be unable to develop their specialized areas of far as concerns the statutory question of the effect service in step with future demand—or, indeed, of the proposed transaction on the convenience, that Security itself in the absence of affiliation needs, and welfare of the area concerned, two with Applicant would not be able to develop questions are especially pertinent: these services. In this connection, it should be pointed out that Security's principal New York (1) Is the public adequately served by exist- City correspondent bank is the Marine Midland ing banking facilities; and (2) can it reasonably Trust Company of New York, and therefore Apbe expected that the existing banking structure in plicant's advice and assistance concerning such the area will be able to satisfy future banking services may be regarded as being available to needs? Security through this conduit even in the absence So far as concerns trust services, it is noted of the proposed affiliation. that Security does not have a large trust department in relation either to its deposit volume or With respect to the matter of business and into the population of Suffolk and Nassau Counties. dustrial development advice, Applicant's own However, the availability of the trust departments figures showing the present and projected trends of the Franklin National Bank and the Meadow of commercial activity in Suffolk and Nassau Brook National Bank, as well as the nearness of Counties demonstrate that the attraction of commercial enterprise, which is stated to be the primary function of Applicant's Industrial Develop- 3 Kings and Queens Counties on Long Island, while ment Department, is not in the "need" category included in the States First Banking District, are parts so far as that area is concerned. of New York City, and therefore banks headquartered in those counties (such as Meadow Brook National Finally, with respect to improvements in capi- Bank) are technically "New York City banks." How- tal adequacy and availability of funds, cost and ever, for purposes of this Statement, the term "New profit controls, and personnel analysis and train- York City banks" means only banks headquartered ing, which Applicant cites as added factors havin the Second Banking District (comprised of the ing a bearing on the convenience, needs, and Counties of New York (i.e., Manhattan), Bronx, and Richmond). welfare of the area, it cannot be gainsaid that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1602 FEDERAL RESERVE BULLETIN • DECEMBER 1962 each has some influence upon the degree to with adequate and sound banking, the public inwhich Security is able to service its customers terest, and the preservation of competition in the effectively and economically. However, there has field of banking. been no showing that, so far as capital require- While each of the statutory factors is important ments are concerned, Security itself cannot satisfy and no single one is controlling, in evaluating the them as the occasion demands—indeed, as pre- weight and significance of the various consideraviously noted, this has been done as recently as tions which are found to exist with respect to a 1961. Furthermore, with respect to cost and profit given proposal the Board must be ever mindful controls and personnel analysis and training, it is of the over-all purposes of the statute. A review difficult to believe that a bank the size of Security of the legislative history of the Act reveals that —with resources of $244 million and its own a principal motive for its enactment was the beestimate that resources will reach $400 million lief of Congress that there was need for regulatory within five years—could not on its own initiative control over affiliations of banks through the successfully institute such improvements or ex- holding company device because, uncontrolled, pansion as may be needed. such activity could lead to undue concentration of In sum, therefore, Applicant goes to great banking resources and activities as well as relength in describing the improved and additional straint or inhibition of competition. For these services Security would be able to offer as a sub- reasons, the role assigned to the Board included, sidiary, but gives very little specific information in addition to the supervisory considerations on the area's need for such services. The applica- enumerated in the first four factors, the respontion does state that some of the services are now sibility of insuring that holding company acquisiavailable only through its larger Long Island- tions are permitted only where not inimical to based competitors and through large New York present and potential competition and that pro- City banks. However, there is little in the applica- posals involving incipient "undue concentration" tion to indicate that banking services of the types of banking resources and activities are interdicted, listed are inadequate or unsatisfactory in Se- in the absence of overriding favorable consideracurity's service areas. Thus, it appears that the tions. Accordingly, the fifth factor assumes a role circumstances attending the fourth statutory factor of primary significance in terms of the Board's relate largely to convenience of the banking public stewardship of the "public interest" under the rather than their needs or welfare. And in this re- Bank Holding Company Act. gard, there is little, if any, real evidence that the The first point to be considered in relation to public is inconvenienced because Security does this factor is the effect of the proposed acquisition not now do what it might as a subsidiary of in this case upon the size and extent of Applicant's Applicant. As stated in the Morgan New York holding company system. State Corporation case (1962 Federal Reserve On the basis of December 31, 1961 data, Ap- BULLETIN 567), the Board cannot assume that plicant, with its 11 subsidiary banks operating what is not being done needs to be done or is 181 banking offices in the State of New York and material to the public's convenience. controlling $2.54 billion of total deposits, ranked On balance, therefore, while the circumstances as the second largest bank holding company in relative to the proposed transaction which have the United States, the seventh largest banking a bearing on the convenience, needs, and welfare organization having offices in New York City, of the area involved do not present an adverse and the thirteenth largest banking organization in picture, neither are they such as to lend much the United States. Applicant controls subsidiary affirmative weight to the merits of the application. banks that are headquartered in eight of New Effect on adequate and sound banking, the York State's nine banking districts and operate public interest, and competition. The fifth statu- branches in all nine. The total deposits of all tory factor that the Board is directed to consider, commercial banks in New York State were $49.3 in passing upon applications under the Bank billion on December 30, 1961, of which Appli- Holding Company Act, is whether the proposal cant's subsidiary banks' $2.54 billion represented would expand the size or extent of the holding 5.2 per cent, and as of the same date, Applicant's company system involved beyond limits consistent subsidiary banks' 181 offices represented 9.7 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1603 cent of the 1,863 commercial banking offices in cant would hold 5.6 per cent of the deposits of the State.4 all commercial banks in New York State, an in- As of December 31, 1961, Security (the largest crease of 0.4 per cent, and would control 11.3 bank headquartered in Suffolk County) had de- per cent of the number of commercial banking posits of $212 million and operated 30 banking offices, an increase of 1.6 per cent. The proposed offices, its head office and 21 branches in Suffolk acquisition would give Applicant subsidiary banks County and 8 branches in Nassau County.5 Se- with headquarters in all of New York State's nine curity's 22 banking offices accounted for 27.2 per banking districts, and with its New York City cent of the 81 commercial banking offices in subsidiary (the Marine Midland Trust Company Suffolk County. In Nassau County, Security's 8 of New York) already operating 3 branches in offices accounted for 4.8 per cent of the 165 Queens County, Applicant would be represented commercial banking offices. Combining Suffolk in three of the four counties comprising the First and Nassau Counties, Security's 30 banking offices Banking District. represented 12.2 per cent of the 246 commercial The question of whether the proposed acquisibanking offices, and its $212 million of deposits tion would be inconsistent with adequate and represented 8.7 per cent of the deposits of all sound banking and the preservation of banking commercial banks (including estimated deposits competition must be considered in the context of the Nassau County branches of Meadow Brook of the pertinent banking markets, involving both National Bank). geographical and service coverage. In the case Security is the second largest bank headquar- at hand, there are four facets of competitive imtered in the Suffolk-Nassau County area; the pact to be considered: (1) competition between Franklin National Bank, headquartered in Nassau Security and Applicant's upstate subsidiaries; (2) County, is the largest, having, as of December 31, competition between Security and Applicant's 1961, deposits of $822 million and 44 banking New York City subsidiary, the Marine Midland offices, 38 in Nassau County and 6 in Suffolk Trust Company of New York; (3) competition County. Taking into account the Meadow Brook between Security and other banks; and (4) the National Bank, which is headquartered in Queens effect of the proposed acquisition upon Appli- County but has 47 of its 57 branches in Nassau cant's competitive position in the banking struc- County, Security is the third largest bank head- ture of the State. quartered on Long Island. Security and all ten of Applicant's upstate sub- If this application were to be approved, on the sidiary banks are so-called retail banks. Although basis of year-end 1961 data the aggregate de- Security and Applicant's upstate subsidiaries do posits of Applicant's subsidiaries would increase have some common customers in terms of de- $212 million to $2.75 billion, and Applicant's mand deposits and commercial borrowings, it banking offices would increase to 211. Applicant appears that such overlap is accounted for chiefly would continue to be the second largest bank by the business which Applicant's upstate subholding company in the United States, and when sidiaries do with nation-wide, State-wide, or compared with all banking organizations it would multi-community concerns which operate in the rank twelfth in size instead of thirteenth. Appli- Suffolk-Nassau area. Accordingly, it is believed that little competition exists between Security * These percentages would be somewhat lower if and Applicant's upstate subsidiaries, and the effect Applicant's aggregate deposits and offices were com- of the proposed acquisition upon such present and pared with deposits and offices of all banks as con- potential competition as does exist would probably trasted with commercial banks. However, it is bebe insignificant. lieved that for purposes of evaluating the subject With respect to the competitive situation beapplication comparisons with all banks are less relevant than comparisons limited to commercial banks. tween Security and Applicant's New York City 6 As of June 30, 1962, total deposits had increased subsidiary, the Marine Midland Trust Company to $221.5 million, and as of September 1962 Security of New York ("MMT"), MMT has its head had 33 banking offices. However, since the most reoffices and seven branches in Manhattan (New cent figures available for Applicant are as of Decem- York County) and three branches in Queens ber 31, 1961, Security's status as of that date will be used for purposes of comparison. County. These 11 offices represent 1.7 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1604 FEDERAL RESERVE BULLETIN • DECEMBER 1962 of the commercial banking offices in New York appropriate area is called for. City. The closest approach of MMT to Security Applicant has presented its case largely upon is MMT's Jamaica office (Queens County), ap- the premise that since Security does business in proximately 15 miles from Security's North Bell- both Suffolk and Nassau Counties, this two-county more office (Nassau County). area is the relevant geographic point of reference According to the data furnished by Applicant, for assessing all aspects of the competitive imneither Security nor MMT derives a significant pact of the proposed transaction. However, there proportion of its business from the service area is reason to question this premise. of the other, and in view of the fact that MMT's As noted previously, as of September 1962, present orientation is principally toward the Security had 33 banking offices, 25 of which, or "wholesale" banking business as contrasted with 75.8 per cent, were located in Suffolk County. Security's "retail" business it does not seem that Likewise, based on June 30, 1962 data, Security the possible effect of the proposed acquisition had deposits of $221.5 million, $174.4 million of upon present competition between these banks which, or 78.7 per cent, came from that county; is cause for concern. in terms of its share of deposits of all commercial However, it should be borne in mind that the banking offices, Security accounted for 28 per present situation in this regard is not necessarily cent of such deposits in Suffolk County, whereas indicative of the extent to which potential com- on an aggregate two-county basis, Security's petition could develop between Security and $221.5 million of deposits represented only 8.8 MMT. While MMT to date has expanded into per cent of deposits of all commercial banking Long Island only to the extent of its three branches offices operated therein. Also, attention is invited in Queens County, it could, like other large banks to the following statement made at page 2 of headquartered in the Second Banking District, Security's Annual Report to Stockholders for the establish branch offices in Nassau County, thereby year 1961: coming more directly into competition with Se- "Suffolk County, the main base of our operacurity. Thus, it may be inferred that consumma- tions, is no longer a quiescent frontier. It is an tion of the proposed transaction could prevent area dynamic in its growth and unique in its capacity to serve modern industry and its repotential competition between Security and MMT, quirements for acreage. Nowhere else on Long because even though affiliated banks may com- Island can these urgent requirements be readily pete with each other to some extent, they cannot met. * * *" be considered to be alternative sources of service An additional consideration is the fact that in the full sense. Suffolk County is the only county in the First Under the fifth statutory factor, a broader con- Banking District in which New York City banks sideration than the elimination of present or cannot enter either through establishment of new potential competition between particular banks is branches or through permanent retention of the effect of the proposed acquisition on the in- Suffolk County branches acquired by merger with tensity of competition for banking business in the Nassau County banks. This being the case, holdarea served by the desired subsidiary. ing companies enjoy a preferred position with At this juncture, it would be well to identify regard to the possible incorporation of Suffolk the "area" served by Security within which the County banks into a present or proposed system, principal competitive impact of the proposed ac- since they are not confined to banking districts quisition is to be measured. Up to this point, but may legally acquire ownership of banks the discussion has dealt with the Suffolk-Nassau throughout the State. Thus, it is reasonable to area of Long Island, since Security has banking conclude that the most significant impact of the offices in both counties. For purposes of discuss- proposed acquisition, in terms of present and ing the matters of convenience, needs, and welfare prospective effects on competition between Seas well as the broad pattern of competition with curity and other banks, would be felt in Suffolk "external" banks, this two-county area is an ac- County rather than in the larger Nassau-Suffolk ceptable point of departure. However, when the area. inquiry relates to the local impact of the proposed "Concentration" is a major aspect of the transaction, a more definitive analysis of the problem of determining the effect of a holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1605 company's acquisition of a bank upon competition relative competitive position of Security in that in the field of banking in the area affected. The county. Indeed, it is recognized that the Franklin problem of concentration involves the effect of National Bank does business in Suffolk County affiliation on the public's choice of banking serv- to a greater extent than the volume of deposits ices generally, and appraisal of this effect re- in its branches in that county would indicate, and quires consideration of at least these questions: that the Meadow Brook National Bank and cerhow many true alternative sources will remain; tain of the large New York City banks have what will be their respective capacities; and what Suffolk County customers even though these present or potential change from the existing banks have no branches there. Nevertheless, it situation will there be? seems reasonable to assume that, particularly in Applicant has pointed out that there would be the area of retail banking, the competitive inno significant change in concentration of bank- fluence of Security in Suffolk County is intimately ing resources in Security's service area following related to the position which it enjoys in that the proposed acquisition; that is, the public would county in terms of offices and the proportion of have the same number of alternative sources of Suffolk County commercial banking deposits held banking service, and the distribution of the area's by those offices, and the record before the Board banking resources among these would remain in this case reveals no basis for questioning the largely unchanged. This is undoubtedly true. validity of this premise. However, a collateral aspect of concentration The picture that emerges from the foregoing, that must be considered is the effect that the pro- to the extent that one can be drawn from figures posed acquisition would have on the relative com- alone, is not generally one of such dominance petitive positions of banking institutions in this as to reflect an unhealthy competitive banking market and the significance of that effect. situation in Suffolk County. There does emerge, As noted previously, as of June 30, 1962, Se- however, the unmistakable fact that Security is curity had 24 banking offices in Suffolk County6 the principal bank in its principal area of comand had 28 per cent ($174.4 million) of the total petition in terms of commercial banking offices deposits of commercial banks having offices there. and deposits in that area, and that the great The Franklin National Bank (headquartered in majority of banks operating there are very much Nassau County), although several times larger smaller. These two elements conjoined present than Security in deposits (Franklin, $906.5 mil- a situation where, apart from the questions of lion; Security, $221.5 million) is actually sec- immediate elimination of competition or signifiondary to Security in terms of offices and deposits cant increases in Security's size, the longer range in Suffolk County; as of June 30, 1962, Franklin effects and the broader aspects of the philosophy had 6 banking offices in Suffolk County,7 which of the Bank Holding Company Act become conoffices had 15.8 per cent ($98.1 million) of the trolling considerations. commercial bank deposits in that county. The As pointed out by the Board in the Morgan Bank of Huntington and Bank of Babylon, both New York State Corporation case (1962 Federal of which operate exclusively in Suffolk County, Reserve BULLETIN 567), the existence of a sigor even further behind Security, each having but nificant disparity in the size of banks within an 5 banking offices and 7.9 per cent ($48.9 million) area of competition does not necessarily involve and 5.3 per cent ($33.2 million), respectively, an undue competitive advantage for the larger of commercial banking deposits in that county. banks. In the nature of the American banking Apart from the foregoing, there were 17 other system, there is room for both small and large commercial banks or even smaller size domiciled banking organizations to serve various markets in Suffolk County as of June 30, 1962. well, even where their markets overlap. It is even It is true that the structure and allocation of inherent in that system that the large are free commercial banking offices and deposits within to increase the disparity through growth achieved Suffolk County is not an absolute measure of the without affiliation or merger. On the other hand, the partial check that competition imposes on 8 Since increased to 25. other means of growth is no obstacle to growth by 7 Since increased to 8. acquisition or merger, and legislative protection Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1606 FEDERAL RESERVE BULLETIN • DECEMBER 1962 has therefore been deemed appropriate to guard was the fourth largest in Nassau County. The against any such transactions which, without off- Board concluded, in both cases, that although the setting justifications, might tend to unbalance the mergers might increase competition in Nassau banking structure in an area to the prejudice of County, especially with Franklin National Bank healthy competition, and thus of the public inter- and Meadow Brook National Bank, it would est. Such protection is afforded by the Bank Hold- diminish the prospects of the smaller banks in ing Company Act, and it is the Board's responsi- the County, and the latter effect was considered bility to implement that protection as intended by more significant than the former. Congress. Under particular circumstances, it is true, a In this case, we have a situation where the lessening of competition or a step toward conproposed subsidiary—Security—is the principal centration may be outweighed by specific advanbank in Suffolk County in terms of commercial tages which would accrue in the area of strengthbanking offices and deposits. The proposed trans- ened or expanded banking facilities or services action would give Security the added benefits of from a proposed acquisition. In this proposal, direct affiliation with the second largest bank however, as the previous discussion has shown, holding company in the United States and the there is not sufficient evidence of the need for eighth largest commercial bank in New York such benefits to outweigh the adverse competitive City. This affiliation certainly would serve to place consequences. Security in a position to compete more vigorously Yet another aspect of "concentration" which with Franklin National Bank, both in Suffolk and the Board must take into account in discharging Nassau Counties. Likewise, it would no doubt its responsibilities under the Bank Holding Comenhance Security's competitive posture with pany Act is the effect that a proposed acquisition reference to Meadow Brook National Bank in will have on the competitive position of the appli- Nassau County, and, should Meadow Brook cant holding company. branch into Suffolk County, there as well. How- In this case, as previously noted, Applicant ever, for the reasons previously indicated, the most presently controls 11 banks in New York State important area to be considered from the stand- which operate 181 banking offices located in each point of competition between Security and other of the State's nine banking districts and had, at the banks is Suffolk County, and it is a significant end of 1961, aggregate deposits of $2.54 billion. fact that Security is the principal bank in Suffolk Applicant advertises its size and State-wide cover- County in terms of commercial banking offices and age and places much weight on this unique feadeposits. While independent banks in an area ture of its operations. According to Applicant, it may sometimes benefit in certain ways where can provide better services for its customers one of their number comes under outside owner- throughout the State of New York than can its ship, in the present case it is probable that in competitors through regular correspondent relaover-all effect the smaller banks would be left tionships. Acquisition of Security would further with a longer uphill climb in any efforts they enhance Applicant's position in the New York might wish to make to catch up with Security, State banking structure, since through such and such competitive disadvantage as these smaller acquisition Applicant would be acquiring a "conbanks now have in relation to Security would be trolled outlet" in Suffolk County, a county in increased. which it does not now have offices and in which In this connection, reference to the Board's its present subsidiaries cannot establish offices. disposition of the Chase Manhattan Bank—Hemp- The proposed acquisition would also result in a stead Bank and Chemical Bank New York Trust substantial addition to Applicant's over-all size; Company—Long Island Trust Company merger it would acquire 33 banking offices (an increase applications earlier this year (1962 Federal Re- of 18.2 per cent in its banking offices) and $221.5 serve BULLETIN 544 and 548) is pertinent. million deposits (an increase of 8.7 per cent). Chemical was the fourth largest bank in New The result of this acquisition, which in and of York City and Long Island Trust was the second itself is not insignificant, would give Applicant largest in Nassau County; Chase was the largest more complete State-wide coverage and banks bank in New York City and Hempstead Bank headquartered in all nine of the State's banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1607 districts. It is manifest from the legislative history of banking competition and inconsistent with the of the Holding Company Act that one of the public interest. This being the case, it is the view principal concerns of the Congress was the pre- of the Board that the application should be devention of undue concentration of banking re- nied. sources under single control, and it is the view of the Board that the acquisition here proposed DISSENTING STATEMENT OF GOVERNOR MITCHELL would lead to such concentration, taking into ac- The majority opinion concludes that the mancount Security's strategic location and Applicant's agement problems of Security, though not critical, present size and scope of operations. weigh on the side of approval of the application. This is not to say that the economic power in It observes, however, that such matters are not a Applicant's hands is being or would be abused compelling consideration because, among other or improperly exercised. Nevertheless, for the things, "a bank the size of Security should be able reasons previously adduced, the Board concludes to cope with its own management problems that the concentration of banking resources and through the exercise of determined willingness, activities and adverse competitive consequences . . .". The management-ownership difficulties at which would result from consummation of the Security have a special character; they do not proposed transaction would be inconsistent with emerge from the problems of expansion and the intent of Congress. effectively serving an explosively growing com- Summary and conclusion. The present finan- munity, nor are they a matter of technical bankcial condition of Applicant is satisfactory and ing competence. Despite the fact that progress that of Security is reasonably satisfactory, and has been made in dealing with them there apthe financial history and the prospects of both pears to be inherent in the ownership-manageare satisfactory. The character of Applicant's ment pattern intractable conflicts as to policy management is satisfactory and, while there are toward the utilization of banking resources that circumstances that indicate need for improve- can only be promptly and certainly removed by ment of Security's management, it is believed change in both ownership and management. Apthat the means of improvement to the extent that proval of the application would do this: it is far may be necessary are available to Security as an less certain that adequate support for "deterindependent bank. So far as concerns the con- mined willingness" to cope with the problems can venience, needs, and welfare of the area involved, be mobilized out of the present dispersion of stock Applicant's case rests largely upon the convenience holdings. which would accrue to Security's customers The majority opinion dwells upon the Conthrough the addition of certain specialized services, gressional directive on "size and extent" incorthe availability of Applicant's capital backing for porated as the fifth factor in the Bank Holding expansion as needed, and better training of the Company Act. Although the concern of Congress bank's personnel. However, in view of the exist- over undue concentration of banking resources ing banking structure in Suffolk and Nassau permits several interpretations, it seems reason- Counties and the availability to this area of New able to assume that its delegation of regulatory York City banks for specialized services, either power to this body relates to the economic imdirectly or through correspondent relationships, plications of size, not size per se. Under such it is not believed that a strong case can be made interpretation, size is inconsistent with the public even for the better serving of the convenience of interest only if its ramifications are significantly customers in the area through the proposed trans- reduced alternatives for consumers of banking action. As to the effect of the proposed trans- services. The majority, in my opinion, has failed action upon the size and extent of Applicant's to demonstrate a potentially significant reduction holding company system as it relates to adequate of alternatives in any meaningfully defined market and sound banking, the public interest, and or set of markets. Without substantive showing preservation of competition in the field of bank- of an increase in "concentration" in some market ing, the concentration of banking resources and or set of markets and a persuasive assessment of activities which would result from the proposed the effect of this concentration, the opinion risks acquisition would be inimical to the preservation an interpretation of hostility to size alone. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1608 FEDERAL RESERVE BULLETIN • DECEMBER 1962 The majority has, it seems to me, correctly come a bank holding company through the acquisipointed out the dubious content of any "extension tion of voting shares of The First National Bank of services" argument as a factor weighing for and Trust Company of Oklahoma City, Oklahoma approval in this case (cf. Liberty Bank and Trust City, Oklahoma, and The Idabel National Bank, Company, 48 FRB 293, 294). But in meeting Idabel, Oklahoma. Docket No. BHC-64. the mandate of the statute, subjective judgments by the regulatory authority as to what is "needed" ORDER APPROVING APPLICATION UNDER BANK or "adequate" in a banking structure are likely HOLDING COMPANY ACT to be narrow and rigid. Such judgments could be made more realistic if they took into account There has come before the Board of Governors, the response of financial institutions and their pursuant to Section 3(a)(l) of the Bank Holding customers to market facts. Possibly, the best Company Act of 1956 (12 U.S.C. 1842) and direction would be given to our evolving banking Section 222.4(a)(l) of the Board's Regulation Y structure if channels of competitive activity were (12 CFR 222.4(a)(l)), an application by First kept open and used to condition the judgments Oklahoma Bancorporation, Inc., Oklahoma City, by the regulatory body. In this process the con- Oklahoma, for the Board's prior approval of action sumer reveals his needs if he is given a range whereby Applicant would become a bank holding of choice, and banks operating in the competitive company through the acquisition of a minimum of milieu have every incentive to ascertain and serve 28.15 per cent of the voting shares of The First these needs. Thus a policy of maintaining compe- National Bank and Trust Company of Oklahoma tition produces as a by-product the means of City, Oklahoma City, Oklahoma, and a minimum measuring "needs" and "adequacy." of 50.5 per cent of the voting shares of The The task implied in maintaining competition is Idabel National Bank, Idabel, Oklahoma. not uncomplicated. An action joining formerly As required by Section 3(b) of the Act, the independent banking units could mean, on the Board notified the Comptroller of the Currency one hand, an effort to benefit by a stream of of the receipt of the application and requested monopoly profits. It could mean, on the other his views. The Comptroller replied that he had hand, an effort to adapt to changing circum- no opinion or recommendation at that time. Howstance; a least costly expansion procedure, a ever, in a subsequent letter, the Comptroller reccheapest method of changing location in response ommended that the application be approved. to movements in deposit densities and changes in Notice of receipt of the application was pubthe structure of the demand for credit. Regulation lished in the Federal Register on January 30, 1962 cannot hope to disentangle a complex web of (27 Fed. Reg. 869), affording opportunity for motives. But there are, I believe, ample grounds submission of comments and views regarding the for tolerance of banks' own judgment of their proposed acquisition. Thereafter, a public hearinterests where the regulatory body cannot find ing, ordered by the Board pursuant to Section substantial inconsistency with the public interest; 222.7(a) of the Board's Regulation Y (12 CFR where it cannot show significantly anticompeti- 222.7(a)), was held before a duly selected Heartive implications (cf. Concurring Statement in ing Examiner; proposed findings of fact and con- Whitney Holding Corporation, 48 FRB 560, 565). clusions of law were submitted by the parties; For these reasons I dissent from the decision and the Hearing Examiner's Report and Recomof the majority in this case. The record here fails mended Decision was filed with the Board wherein to convince me that substantial competition would approval of the application was recommended. be foreclosed by joining Security and the Marine Protestants' exceptions, with supporting brief, to group. The banking factors also seem to me to the Report and Recommended Decision, and argue for granting the application. Applicant's response thereto, have been considered. FIRST OKLAHOMA BANCORPORATION, The Board, upon motion of parties opposing INC., OKLAHOMA CITY, OKLAHOMA the application, held oral argument and received In the matter of the application of First Okla- further briefs. In addition, the Board has received, homa Bancorp oration, Inc., for permission to be- considered, and ruled upon the several motions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1609 and petitions filed in this matter by the parties pose by the United States Civil Service Commisopposing the application. sion. This hearing was not required by law but IT IS HEREBY ORDERED, for the reasons set was ordered pursuant to Section 222.7(a) of the forth in the Board's Statement of this date, that Board's Regulation Y (12 CFR 222.7) promulthe said application be and hereby is approved, gated under the Act, upon the Board's finding that provided that the acquisition so approved shall such hearing would be in the public interest. not be consummated (a) within seven calendar By ruling of the Hearing Examiner, four of days after the date of this Order or (b) later than the banks ("Protestants") that had expressed opthree months after said date. position to Applicant's proposal were admitted and participated as parties. Applicant and Dated at Washington, D. C, this 30th day of Protestants presented evidence and had oppor- November, 1962. tunity for examination and cross-examination of By order of the Board of Governors. persons appearing as witnesses. Voting for this action: Chairman Martin, and Gover- Among the documentary material received in nors Balderston, Mills, Shepardson, and Mitchell. Votevidence was a second letter to the Board on this ing against this action: Governors Robertson and King. application from the Comptroller of the Currency, (Signed) MERRITT SHERMAN, dated June 5, 1962, which reached Board counsel Secretary. on the final day of the hearing, recommending [SEAL] that the application be approved. Subsequent to the hearing, parties were afforded STATEMENT the opportunity to file, and did file, comments, First Oklahoma Bancorporation, Inc. ("Ban- proposed findings of fact and conclusions of law, corporation" or "Applicant"), with its principal with supporting briefs. On August 20, 1962, the place of business in Oklahoma City, Oklahoma, Report and Recommended Decision of the Hearhas filed an application, pursuant to Section ing Examiner was filed with the Board wherein 3(a)(l) of the Bank Holding Company Act of it was recommended that the application be ap- 1956 ("the Act"), for the Board's approval of proved. Exceptions to the Report and Recomthe acquisition of a minimum of 28.15 per cent mended Decision were filed by Protestants, toand a maximum of up to 100 per cent of the gether with a supporting brief. A response thereto voting stock of The First National Bank and was received from Applicant over Protestants' Trust Company of Oklahoma City, Oklahoma objection. Upon motion of Protestants, opposed City, Oklahoma ("First National"), and from 50.5 by Applicant, the Board held oral argument in per cent up to 100 per cent of the stock of The this matter and thereafter received briefs in sup- Idabel National Bank, Idabel, Oklahoma ("Idabel port of positions stated. National"). By this acquisition, Bancorporation On the basis of the entire record, formation would become a bank holding company. of which has been described principally above, Background. Following the filing of the appli- the matter is now before the Board for decision. cation and pursuant to requirement of the Act, First National has 1,100,000 shares of stock views on the application were requested of the outstanding of which 309,134 shares are owned Comptroller of the Currency. Notice of receipt or controlled, directly or indirectly, by Mr. C. A. of the application was transmitted in writing to Vose and his family. Mr. Vose is one of Applithe United States Department of Justice and was cant's organizers and, with members of his family, published in the Federal Register on January 30, owns a majority of the shares of Ravco Corpora- 1962. By letter dated February 28, 1962, the tion, a holding company the principal asset of Comptroller advised that he had no present which is its ownership of 290,400 of the 309,134 opinion or recommendation regarding the appli- First National shares owned or controlled by the cation. Following expiration of the period allowed Vose family. The Vose controlled stock, plus 563 in the published notice for receipt of comments shares owned by Mr. Hugh L. Harrell, also one on Applicant's proposal, the Board ordered a of Applicant's organizers, represents 28.15 per public hearing to be conducted in Oklahoma City cent of First National's outstanding stock and before a Hearing Examiner selected for this pur- the minimum amount of that Bank's stock pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1610 FEDERAL RESERVE BULLETIN • DECEMBER 1962 posed to be acquired. There are outstanding and (5) whether the effect of the proposed acquisi- 1,000 shares of Idabel National, of which 505 tion would be to expand the size or extent of the shares (50.5 per cent) are held by the same Vose bank holding company system involved beyond family which is asserted to have effective control limits consistent with adequate and sound bankof First National. ing, the public interest, and the preservation of The Hearing Examiner has found, and the competition in the field of banking. evidence of record supports the findings, that Financial history, condition, and prospects of although less than a numerical majority of First Applicant and Banks. In view of Applicant's re- National's outstanding stock is controlled by the cent organization, there is no operating history Vose interests, present effective control of both upon which to predicate a judgment as to its First National and Idabel National is held by the financial condition or prospects. However, since Vose interests. Consummation of this proposal Applicant's assets would consist of shares of First would affect principally the form of ownership National and Idabel National, its financial condiof these banks. tion and prospects are considered to be satisfac- First National is located in Oklahoma City, the tory, principally due to the sound financial history, State's capital and largest city, with a 1960 popu- condition, and prospects of First National. lation of 324,000. At December 31, 1961,* First The financial history and present condition of National was the largest of 14 banks located in Idabel National appear reasonably satisfactory. Oklahoma City, and held deposits of $284.8 mil- The area surrounding the City of Idabel and enlion. Its nearest Oklahoma City competitor, compassing most of McCurtain County is presmeasured by deposits, is Liberty National Bank ently classified as economically distressed. Howand Trust Company with $198.9 million of de- ever, improved conditions are forecast based priposits. First National ranked third in size in the marily upon discoveries of local gas deposits, de- State, behind The First National Bank and Trust velopment of water transportation and recrea- Company of Tulsa ($350.1 million), and National tional facilities, and efforts by Federal, State and Bank of Tulsa ($332.7 million). municipal authorities to develop programs looking toward economic advancement of the area. Idabel National is one of the two banks located While Idabel National's prospects appear satisin Idabel, about 250 miles southeast of Oklafactory in the light of the economic recovery homa City. Idabel, the county seat of McCurtain forecast for the area, it is the Board's judgment County, had a 1960 population of 5,000; the that the Bank's capacity to contribute to and County population was 26,000. Idabel National's participate in this recovery effort would be inprimary service area, the area from which at creased to some extent through greater managerial least 75 per cent of its deposits originate, has experience and initiative, procurement of which, been designated as comprising Idabel and the the Hearing Examiner has found, would be more portions of McCurtain County southeast and assured under Applicant's ownership. southwest of Idabel. At year-end 1961, Idabel National held deposits of $4.5 million, or 46.2 Management of Applicant and the Banks. With per cent of the deposits held by the city's two respect to the management of Bancorporation and banks combined. The other bank, First State Bank the proposed bank subsidiaries, Protestants have of Idabel, held $5.3 million of deposits. urged that the Applicant has failed to adduce evi- Statutory factors. In acting upon this applica- dence bearing on the character of Applicant's protion the Board is required under Section 3(c) of posed management, and that such failure must be the Act to take into consideration the following weighed against approval of the application. Profive factors: (1) the financial history and condi- testants have also taken exception to the asserted tion of the Applicant and the banks concerned; failure of the Hearing Examiner to make a spe- (2) their prospects; (3) the character of their cific finding in relation to the character of Applimanagement; (4) the convenience, needs, and cant's management. In the Board's judgment, welfare of the communities and area concerned; neither of the asserted failures constitutes a lack critical in nature. No provision of the Act nor of Regulation Y dictates or requires a specific proce- * Unless otherwise stated, all figures herein are as of this date. dural format to be followed by an applicant in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1611 LAW DEPARTMENT the course of a public hearing. Obviously, an solution to such problems as management succesapplicant assumes the risk of any deficiencies that sion and personnel placement, concluded that may be inherent in the form of presentation "future effective staffing and the succession would selected. The mere fact, however, that an applicant be more assured under the proposed program." chooses a particular form of presentation over This conclusion, in the Hearing Examiner's judganother does not in and of itself constitute an ment, must be weighed on the side of approval of adverse consideration. Thus, while it may be the application. In reaching this conclusion, the argued that the best evidence of the character and Hearing Examiner attributed significance to the quality of Applicant's proposed management would recommendation of approval given by the Comphave been adduced by and through the appearance troller of the Currency (letter of June 5, 1962), of Mr. Vose at the public hearing, if other evidence which the Hearing Examiner found to have been of record is available upon which the Board rendered "essentially on the basis of management reasonably can base a finding on this issue, the considerations at the Idabel Bank." directive of Section 3 (c) of the Act can be satisfied. Protestants assert the Hearing Examiner erred Such evidence is available in this record. by attributing evidentiary weight to the Comp- Applicant's management will be nearly identical troller's letter "because the letter was based upon with the present management of First National. asserted factual considerations, which were found Mr. C. A. Vose, Chairman of First National's to be contrary to the actual facts prevailing as Board of Directors, has been associated with that such facts were developed at the hearing in this Bank for over 40 years, serving in each of its proceeding." Contrary to the assertion of Protestprincipal executive positions. This experience ants, the Comptroller's comments with respect to should qualify him as Applicant's President. Simi- present management problems were not related larly, Applicant's Vice President, Mr. Hugh L. by the Comptroller to specific facts. Presumably, Harrell, has nearly one-half a century of experi- the opinions expressed were premised upon the ence in the fields of banking and finance. He has Comptroller's interpretation of facts and data debeen a Vice President of First National for 25 rived either solely from the application filed with years. Mr. W. H. McDonald, President of First the Board or from that source and from such National, will act as Applicant's Treasurer. Upon additional information gained in the performance consideration of the banking experience of the of his supervisory functions. In either event, the aforementioned individuals, the beneficial effect Board concurs in the action of the Hearing Exof which is reflected in the soundness of First aminer in attributing significance to the Comp- National's operation, the Board finds ample evi- troller's opinion. It is the Board's judgment that dence of the satisfactory character of management on the basis of the evidence presented, including of both Applicant and First National. No evidence the views of the Comptroller of the Currency, to the contrary was adduced at the hearing. Idabel National's prospects, as affected by present In respect to the question of management of and prospective management, will be more favor- Idabel National, the evidence permits of two con- able under the proposed affiliation than would clusions. Applicant asserts its confidence in the otherwise be the case. Bank's present management, and the Bank's finan- Convenience, needs, and welfare of the commucial statements received as evidence support a nities and areas concerned. The communities and finding that its management is satisfactory. Fur- areas whose convenience, needs, and welfare are ther, Applicant's witnesses conceded that any most directly affected by this application are Oklamanagement succession or personnel replacement homa City, the City of Idabel, and McCurtain problem that might arise could be remedied by County in which Idabel is located. Bank's ownership as presently constituted. Thus, it First National is centrally located in Oklahoma can be concluded that Idabel National's manage- City. Its primary service area is described as ment is in all pertinent respects reasonably satis- comprising a major portion of Oklahoma City factory. and as having a population of approximately The Hearing Examiner, while finding that the 200,000. Thirteen other Oklahoma City banks, present owners can be expected to provide some with aggregate total deposits of $417.5 million, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1612 FEDERAL RESERVE BULLETIN • DECEMBER 1962 are located within First National's primary service could be met by Idabel National, either alone or area. Establishment of bank branches is prohibited with the assistance of correspondent banks. by State law. Applicant has placed considerable stress upon Applicant concedes that its proposal does not the increasing banking needs that are foreseen for contemplate any substantial change in the type of the Idabel/McCurtain County area incident to banking service now provided by First National the efforts now underway to rejuvenate the econto its primary service area, although expansion of omy of that area. In addition to Idabel National, several types of service is suggested as being three other banks serve McCurtain County: First possible through the vehicle of the holding com- State Bank of Idabel ($5.3 million deposits); pany. Citizens State Bank ($2.6 million deposits), 12 Applicant's uncontroverted statement of the miles northeast of Idabel at Broken Bow; and leading role that First National has played in the Farmers State Guaranty Bank ($636 thousand industrial improvement and economic growth of deposits), 17 miles northwest of Idabel at Valthe Oklahoma City area, in large measure made liant. These three banks are majority owned and possible only through a corresponding increase controlled by the same person and/or members and expansion in First National's specialized of his immediate family. Idabel National and First banking services, satisfies the Board as to the State Bank of Idabel compete for customers in present scope and adequacy of banking service ren- Idabel and throughout McCurtain County. The dered by First National. Moreover, there is no record reflects that some competition exists beevidence that the remaining banks in Oklahoma tween Idabel National and the banks at Broken City, whose respective deposits range from $4.3 Bow and Valliant. In general, the type and extent million to $198.9 million, and loans from $811 of banking services rendered by each of the thousand to $97.3 million, are not rendering McCurtain County banks are similar. Considering similarly adequate service to the businesses and the population of the County and its general residents of the Oklahoma City area. characteristics heretofore discussed, the Board cannot find that there exists, or will arise in the It is principally the area served by Idabel Nareasonably foreseeable future, a demand for banktional that Applicant asserts will be benefited by ing services from within the area that could not Idabel National's operation as a subsidiary of be satisfied to a reasonable degree by one or more Applicant. The benefits foreseen by Applicant will of the McCurtain County banks, alone or collecallegedly derive from greater availability of retively, and as assisted in any necessary respect by serves for the protection of local depositors; intheir respective correspondent banks in Oklahoma creased availability of trust services, bond services, City, Tulsa, or elsewhere. and personnel training, including provision for management succession; more efficient handling In substance, the foregoing finding was made of excess loan participations; greater facility in also by the Hearing Examiner. However, he furrespect to community service financing through ther found that acquisition and operation of Idathe organization and operations of a small busi- bel National by Applicant would assure to that ness investment corporation; operational improve- Bank "greater continuity, flexibility and stability" ments including improved audit system and other in respect to management succession and personinternal controls; experienced judgment on miscel- nel recruitment and retention than could be exlaneous bank operation problems; and provision pected under present ownership. The Hearing for employee benefits such as a pension plan, Examiner concluded that, unless outweighed by employees' thrift plan, and group life, health, and adverse factors, the foregoing consideration tended accident insurance coverage, all of which bene- to support approval of the application. The Board fits, Applicant states, are presently enjoyed by finds the Hearing Examiner's conclusion reasonemployees of First National. able. Clearly, many of the services enumerated would In many applications under the Act, it is asinure directly to the benefit of Idabel National. serted that holding company ownership of pro- As to those services that would be offered directly posed bank subsidiaries will result in better service to the public, in view of the apparently limited to the public, or greater assurance of continuity demand therefor, it is concluded that such demand of such service. The credibility of the evidence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1613 adduced in support of such an assertion must be might well discourage even the formulation thereof determined by the Board. In the Board's judgment, by Idabel National's majority owners. Thus, Applithe present record contains sufficient credible evi- cant's proposal to acquire up to 100 per cent of dence that Applicant's ownership of the Banks the stock of First National and Idabel National concerned will result in personnel benefits and holds sufficient probability of resulting advantages more assured management continuity in respect to to Idabel National and to those it serves as to Idabel National, with reasonable probability that support the conclusion now reached that the prosuch benefits will inure indirectly to those served posal would tend to contribute to the convenience, by that Bank, to constitute a consideration some- needs, and welfare of the area served by Idabel what favorable to approval of the application. In National. concluding that the affiliation proposed should Effect of proposed acquisition on adequate and prove beneficial to Idabel National, and ultimately sound banking, public interest, and banking comto its present and potential customers, the Board petition. Section 3(c)(5) of the Act requires that has considered as supporting this conclusion the the Board reach a judgment as to whether the judgments in this respect reached by Applicant's proposed transaction would expand the size and organizers, one of whom, with his family, has extent of the proposed holding company system owned a majority of the voting stock of Idabel beyond limits consistent with adequate and sound National for over 40 years. This same organizer banking, the public interest, and the preservation has been a principal operating officer of First of competition in the field of banking. National since 1923, and with Applicant's other organizers, owns 28.15 per cent—effective con- First National and Idabel National will comtrol—of First National. It is the considered busi- prise Applicant's system as proposed by this appliness judgment of these organizers, a judgment cation. Accordingly, in combination, their size and reached after more than a score of years of own- the extent of their operations accurately reflect ership and/or control of the Banks involved, that the size and extent of Applicant's system as prothe Applicant's ownership and operation of the posed. The relative size of First National and Banks, particularly Idabel National, would ad- Idabel National is indicated by the following comvance the Banks' interests and the interests of parison of deposits and loans held by the two the public. Banks with the deposits and loans held by other banks, individually or in combination, located in It has been vigorously urged by Protestants that the State and within areas thereof considered Idabel National's present majority owners could pertinent for purposes of comparison. today utilize First National's financial and manpower resources on Idabel National's behalf as In Oklahoma City 14 banks, including First effectively as could be done by and through Appli- National, hold combined total deposits of $702.3 cant. Despite the apparent effective control of million and total loans of $363 million. First First National represented by the 28.15 per cent National holds 41 per cent of such deposits and of its voting stock held by Applicant's organizers, 43 per cent of such loans. In terms of deposits the fact remains that the owners of 72 per cent of held, First National is the City's largest bank. Three competing banks, all located within two First National's voting stock, numerically repreblocks of First National, rank second, third, and senting actual control, have no ownership interest, fourth in size in the City, with deposits of $198.9 as far as this record shows, in Idabel National. million, $54.5 million, and $39.4 million, respec- Accordingly, it is not unreasonable to believe that, tively. Deposits held by each of the City's other despite the "effective control" of First National 10 banks range from $30.8 million to $4.3 million. by the Vose interests, the majority stockholders In Oklahoma County 24 banks (including the of that Bank might reject and prevent efforts to 14 Oklahoma City banks) hold, combined, deposuse the resources and facilities of First National its of $738.9 million and loans of $377 million. on behalf of Idabel National, to the extent that First National holds 39 per cent of such deposits such use would be disproportionate to that usually and 42 per cent of such loans. made available to other correspondent banks of similar size. Moreover, an awareness of the un- In the City of Idabel, two banks hold, comcertainty attending any such assistance proposal bined, deposits of $9.8 million and loans of $4.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1614 FEDERAL RESERVE BULLETIN • DECEMBER 1962 million. Idabel National holds 46 per cent of no elimination or modification of any existing such deposits and 49 per cent of such loans. correspondent or other business relationship of In McCurtain County, four banks (including either Bank with any other bank in their respecthe two Idabel banks) hold, combined, deposits of tive service areas. Assuming that the reference $13 million and loans of $5.8 million. Idabel Na- to "new competitive areas" was intended to mean tional holds 35 per cent of such deposits and 40 geographic areas, as distinguished from product per cent of such loans. areas, the Hearing Examiner's conclusion, literally In the State of Oklahoma, there are 388 banks read, is justified, since no additional or different operating 415 banking offices (including drive-in banking facility will be introduced into either and walk-up facilities). These banks, combined, Oklahoma City or Idabel. Realistically, of course, hold deposits of $2,925 billion and loans of $1,327 a holding company system of bank operations will billion. Fourteen of these banks hold deposits be introduced into the areas involved. However, exceeding $20 million. Of the latter banks, six it does not appear that Bancorporation's acquisiare located in Oklahoma City and five in Tulsa. tion of First National or Idabel National would Only four of the 388 banks in the State—two in give to either Bank an undue advantage over its Oklahoma City and two in Tulsa—hold deposits competitors. In respect to First National, this was exceeding $100 million. the candid opinion of more than one of Protestants' witnesses, one of whom appeared on behalf Analysis of the foregoing comparative data, of First National's principal competitor in Oklawhile identifying the prominent position occupied homa City, and another of whom is associated by a few large banks in the State, does not reflect with a bank second largest in Tulsa and in the that First National or any other bank is so domi- State. nant in the State as a whole, or within a specific area of the State, that approval of Applicant's In regard to any undue competitive advantage proposal would have an adverse effect upon the that Idabel National might realize from the proexisting banking structure. The variety of sizes posed affiliation, the President of the First State of the City's banks appears compatible with the Bank of Idabel who owns a majority of the stock service requirements of the Oklahoma City area of that bank and, with members of his family, a and with the demands from banks in other areas majority of the stock of the other two banks in of the State for correspondent bank service. The McCurtain County outside of Idabel, expressed record does not reflect a harmful imbalance in the opinion that a holding company controlled competition in the areas served by either First bank could not offer the citizens of Idabel any- National or Idabel National. To the contrary, thing that First State Bank of Idabel could not there is ample evidence that, at the present, com- now offer them. The witness did express apprepetition among the several banks located in the hension over the adverse effect on the First State areas pertinent to consideration is vigorous. Com- Bank of Idabel that he believed might result from bining under Applicant's control the deposits and the many changes in services at Idabel National loans held by First National and Idabel National that Applicant asserts will come about. Weighing would result in an increase of only .15 per cent in a light most favorable to the Protestants the in the percentage of the combined deposits and testimony adduced in respect to the probable imloans of all commercial banks in the State now pact on competing banks from Applicant's conheld by First National (9.74 per cent). The pro- trol of the Banks, the Board concludes that such portion of the deposits and loans of all commer- testimony does not support a conclusion that an cial banks in Oklahoma City and Idabel that would undue competitive advantage will result. be held by subsidiaries of Applicant would be An aspect of Applicant's proposed ownership identical, of course, with those now held, respec- of First National and Idabel National on which tively, by First National and Idabel National. considerable opinion has been voiced is the effect In respect to the competitive aspects of this that the resulting affiliation may have upon estabproposal, the Hearing Examiner concluded, in lished and potential correspondent bank relationpart, that consummation of the proposal would ships. The evidence presented satisfies the Board not result in expansion of banking operations into that the rendition of services to smaller banks by new competitive areas, and that there would be nearly all medium and large size banks in Okla- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1615 homa constitutes an important part of the business spondent account in Oklahoma City is with First of those banks. The obtaining and retention of National. The placement of this account can be correspondent accounts appears to be a vigorously explained by the identity of interest in the two competitive objective, the seeking for which has Banks. That relationship can also fairly be viewed resulted, as earlier noted, in the availability to as having removed Idabel National from serious smaller banks, and through them to the public, consideration by First National's competitors as of numerous services that might otherwise be an object of competition for its correspondent unavailable. business. As to the availability of First National Applicant asserts there would be no change in as a correspondent for Idabel National's principal any existing correspondent bank relationship con- competitor, First State Bank of Idabel, and for sidered pertinent to this application. Protestants' the two remaining banks in McCurtain County, witnesses who testified on this matter forecast both of which are affiliated with the latter bank immediate and continued adverse effects on estab- through common ownership, the acquisition prolished correspondent relationships between and posed portends no real disadvantage. Each of among the banks that now compete State-wide these banks presently uses but one and the same for correspondent bank business. The Hearing Oklahoma City correspondent bank, The Liberty Examiner concluded that there would be no elim- National Bank and Trust Company, even though ination or modification of any existing correspond- ample additional or alternative sources, including ent or other business relationship of either First First National, are available. National or Idabel National with any other bank It is the judgment of the Board that the affiliain their respective areas. tion of the two Banks, as to which common con- It may not be assumed logically that the affilia- trol now exists, under control of the holding comtion here proposed will have no effect on pres- pany system proposed would not represent a ently existing correspondent bank relationships. concentration of banking resources inimical to However, for the reasons hereafter discussed, it adequate and sound banking or adverse to the is the Board's judgment that such effects as reason- public interest. No undue competitive advantage ably may be anticipated from approval of this to either First National or Idabel National is foreapplication will not, under existing circumstances, seen as a result of the acquisition proposed, nor constitute an adverse consideration. The record would consummation of the proposal appear likely reflects that banks in Oklahoma City and Mc- to affect adversely the correspondent relationships Curtain County presently have adequate alterna- between and among banks whose interests are tive sources of correspondent bank services. Nor- most directly affected by the present application. mally, an affiliation such as that proposed would In reaching the foregoing conclusions, the reduce by one the number of alternative sources Board has necessarily formed judgments as to of correspondent banking services available, as a probable or possible future occurrences flowing practical matter, to banks in competition with from or attributable to approval of Applicant's the affiliating bank. This reduction in the number proposal. One such consequence as to which conof alternative sources has been viewed by the cern is expressed in this case is the possibility, Board as a consideration militating against ap- characterized by Protestants as a certainty, that proval of such a proposed affiliation. In the Mat- approval of this application will be followed by ter of the Application of First Security Corpora- additional acquisitions throughout the State by tion {Carbon Emery Bank), 48 Federal Reserve the Applicant and, as a competitively necessary BULLETIN 295, 297 (March 1962). step, by creation of other holding company sys- In the present case, the apparency of loss to tems of equal or greater size. Such a consequence, Idabel National's McCurtain County competitors it is argued, will magnify the adverse consequences and their customers of an alternative source of a asserted to be inherent in Applicant's immediate correspondent bank loses its significance in the proposal. In particular, emphasis is placed upon light of existing facts. Similarly diminished in the elimination of choices of correspondent banks significance is the asserted removal, as an object that would accompany each additional acquisition of active competition among the Oklahoma City by Applicant, and each new holding company banks, of Idabel National. That Bank's sole corre- system formation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1616 FEDERAL RESERVE BULLETIN • DECEMBER 1962 The Board has carefully considered the testi- 31, Statutes of Oklahoma, which provide in pertimony of record in forming a judgment as to the nent part that: real likelihood of the occurrences predicted and "Every corporation which shall own, hold or conconcludes that there is insufficient evidence of the trol, in any manner whatever, the stock of any comneed, as a competitive measure, for the additional petitive corporation or corporations engaged in the holding company formations predicted, to sup- same kind of business, in or out of this State, in violation of the Constitution and laws of this State, shall port a finding that the Board's approval of the [enumeration of penalties]; provided, however, that this proposal under consideration will either precipi- section shall have no application to corporations owntate or result in mass activity toward such forma- ing or holding stock of subsidiary corporations; when such ownership of stock in subsidiary corporations in tions. Should that occur, however, it cannot be no way furthers monopoly or restrains trade." assumed, as Protestants appear to have done, that the Board will abdicate its statutory responsibili- It is asserted that the Applicant and the two Banks ties in passing upon any future application, or proposed to be acquired would be engaged "in that approval in the present case constitutes a the same kind of business" within the meaning of position of commitment to approval of any appli- the cited constitutional and statutory provisions. cation that may hereafter be filed. As to any such The Hearing Examiner rejected Protestants' application, the Board will make a judgment proposed conclusion as to the prohibitory effect premised upon full consideration of all pertinent of the Oklahoma law and concluded that the profacts presented. visions cited did not "purport to outlaw bank As to the present application, upon considera- holding companies." It is not, of course, within tion of all the relevant facts in the light of the the province of the Board to determine authorifactors in Section 3(c) of the Act and the under- tatively the validity or applicability of provisions lying purposes of the Act, it is the Board's judg- of State law. Nevertheless, in the interest of orderly ment that the proposed acquisitions would be administrative procedure, and in the absence of consistent with the statutory objectives, principal judicial decisions as to the effect of such proviamong which is the public interest. sions, the Board properly may form an opinion Board's authority to act as affected by State as to whether provisions of State law clearly would law. A final aspect of this matter to which con- prohibit the formation of a bank holding comsideration must be given involves the assertion pany and thus render futile the Board's approval by Protestants that Oklahoma law prohibits the of such formation. In this case, the Board has operation of a bank holding company within the reviewed the provisions of the Constitution and State, and that under Section 7 of the Bank Hold- Statutes of the State of Oklahoma cited by Proing Company Act, the present application may testants and has concluded, as did the Hearing not be approved. Examiner, that these provisions do not clearly Section 7 of the Act provides: prohibit the acquisition here proposed. The provisions in question relate to unlawful "Sec. 7. The enactment by the Congress of the Bank Holding Company Act of 1956 shall not be construed combinations in restraint of trade and prohibit as preventing any State from exercising such powers corporate ownership or control of the stock of a and jurisdiction which it now has or may hereafter have with respect to banks, bank holding companies, competitor engaged in the same kind of business. and subsidiaries thereof." Obviously, Applicant does not now stand as a competitor to either of the proposed subsidiary In asserting that provisions of law as contem- Banks. It is not, nor, assuming the acquisition plated by Section 7 are in effect in Oklahoma, proposed would it be, engaged in the banking Protestants cite Article 9, Section 41, of the Conbusiness as conducted by its banking subsidiaries. stitution of the State of Oklahoma which pro- The several services and facilities that are made vides, in part: available by a bank holding company to its sub- "No corporation chartered or licensed to do business sidiary banks are admittedly activities incident to in this State shall own, hold, or control, in any manner the business of banking, as conducted by its subwhatever, the stock of any competitive corporation or corporations engaged in the same kind of business, in sidiaries. They do not, however, constitute an enor out of the State, . . .", gagement by the holding company in the conduct and further cite the provisions of Title 79, Section of the banking business. While the availability to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1617 LAW DEPARTMENT a bank holding company's subsidiaries of the re- decision of that Committee to recommend for sources of the holding company can constitute, enactment in the Twenty-ninth Legislature of the as this Board has noted, a very real competitive State of Oklahoma, which convenes on January 8, advantage, the actions of the holding company in 1963, "proposed legislation prohibiting the creathus aiding its subsidiaries are not in fact or in tion of bank holding companies in this state." A law the exercise of banking functions or powers. copy of the proposed legislation was attached for In the event, however, that the Oklahoma stat- the Board's information. It may reasonably be asute here in question should be interpreted by a sumed that the Oklahoma State Legislative Councourt of competent jurisdiction to be applicable cil would not propose to recommend legislation to Applicant's ownership of the shares in the prohibiting the creation of bank holding compa- Banks, it seems likely that the exclusionary provi- nies if creation of such companies were presently sions of the same statute would be held equally prohibited by State law. applicable, since the ownership proposed would Conclusion. The findings of the Hearing Examnot appear to further monopoly or to constitute a iner contained in his Report and Recommended restraint of trade within the apparent meaning of Decision of August 20, 1962, insofar as they are the statute. consistent with this Statement, are hereby adopted. The Board's position in this matter is taken Protestants' exceptions to the Report and Recomwith awareness of a recent decision of the United mended Decision have been considered and the States District Court for the District of Columbia 1 merit of certain of those exceptions is reflected wherein the Comptroller of the Currency was in the Board's findings and conclusions. Otherpermanently enjoined from issuing to a national wise, Protestants' exceptions are found to be withbank a certificate of authority to commence busi- out merit. ness, where a law of the State in which the bank Accordingly, it is the judgment of the Board would be located made it unlawful for the bank that the application should be approved. to commence business as a subsidiary of a bank holding company. Passage of the law in question DISSENTING STATEMENT OF GOVERNOR was held by the Court to be within the power ROBERTSON reserved to the States under Section 7 of the Bank Holding Company Act. Even apart from jurisdic- Until enactment of the Bank Holding Company tional and other issues that raise question as to Act of 1956, no Federal law (other than the antithe applicability of this decision to the Board, trust laws) controlled the creation or the expanit is the Board's view that the decision does not sion of bank holding company systems. Having govern the instant situation. The Court's decision concluded that absence of regulation in this field was premised upon the stated finding that the was contrary to the public interest, Congress de- State statute was "directly applicable to the procided not to prohibit creation and expansion of posed Defendant . . . [national bank] and that bank holding companies but rather to "control said statute makes it unlawful for said bank to their future expansion," as stated in the title of commence business." For the reasons heretofore the Act. given, the Board cannot find that the quoted pro- Congress might have effected control of holdvisions of Oklahoma law apply to the Applicant ing companies by prescribing specific standards in and the proposed acquisition. the form of quantitative limitations. For example, In relation to the Board's conclusion that the the law could have provided that no holding com- State law in question is not applicable to the ac- pany system could comprise more than 10 per quisition here proposed, it is noted that the Board cent of the deposits (or banking offices) in a has received a letter from a Special Committee State, a group of States, or the nation, and that all of the State Legislative Council, State of Okla- bank holding company systems, in the aggregate, homa, dated November 7, 1962, advising of the could not hold more than 40 per cent of deposits or offices. Instead, Congress decided to delegate to the Board of Governors of the Federal Reserve 1 Bank of New Orleans and Trust Company, et ah, System discretion to approve or to disapprove prov. James J. Saxon, Comptroller of the Currency, et al, C.A. No. 1857-62, decided Nov. 5, 1962. posed transactions by individual holding compa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1618 FEDERAL RESERVE BULLETIN • DECEMBER 1962 nies or proposed holding companies, according to application as no more than a proposal to bring the Board's judgment, in each case, as to which under common control a large bank in Oklahoma course would better serve the general welfare. City ($285 million of deposits) and a bank with Although the Board of Governors is vested with less than $5 million of deposits in a small town broad discretion in this field, Section 3(c) of the 250 miles away. By approving this application, Act requires that a number of enumerated "fac- the Board is permitting the first short step in a tors" be taken into consideration in determining series that could transform Oklahoma from a whether to approve any acquisition. However, State with almost 400 independent banks to a these factors do not constitute a standard to gov- State in which banking will be dominated by a ern the Board's actions. The only requirement is handful of holding companies. that consideration be given to the factors named; As the Board's Statement points out, only four the weight to be accorded to each is completely banks in the State—two in Oklahoma City and within the Board's discretion. Because of special two in Tulsa—hold deposits exceeding $100 milcircumstances—for example, the existence of a lion. There is ample evidence that interests assoplethora of banking facilities in the relevant area ciated with all of these contemplate the organiza- —the Board might conclude, in a particular case, tion of holding companies, if the Board authorizes that circumstances related to "the convenience the establishment of this bellwether system. ... of the communities and the area concerned" Scores of banks throughout Oklahoma have were entitled to no weight whatever. asked the Board to deny this application. It is not The choice before the Board, in each case un- to be supposed that these institutions (many of der the Act, is to approve or disapprove the pro- which have no direct relationship to the banks posed acquisition. The Board must decide which immediately involved or the areas in which they answer—"Yes" or "No"—will better promote the operate) would be disturbed if they believed that general welfare of the country. This is the only no more is involved in this case than bringing "standard" under the Act; the enumerated factors together one bank in Oklahoma City and one in are matters that must be considered before the Idabel. Their protests reflect their conviction that decision is made, but the evidence under each is First Oklahoma Bancorporation will not remain to be given such weight—much, little, or none— a two-bank holding company system or the only as the Board regards as warranted. holding company in Oklahoma. Applying these principles to the instant applica- The Board's Statement denies that "approval tion, I am compelled to conclude that its approval in the present case constitutes a position of comis contrary to the best interests of both the people mitment to approval of any application that may of Oklahoma and the people of the country gen- hereafter be filed." But although no such legal erally. The proponents of the proposed holding commitment is involved, of course, it is difficult company system contend that the financial condi- to see how the Board could deny future application, the prospects, and the management of the tion for the organization of similar holding comsmaller bank, although presently satisfactory, may panies in Oklahoma, or applications by First Oklabe improved by vesting control of that bank in homa Bancorporation to acquire additional widely the holding company, and the majority of the separated banks in the State, without drawing Board apparently are prepared to give these con- arbitrary and capricious distinctions. Since the tentions substantial weight on the side of approval Board presumably would not take action of this of the application, even though it is conceded that character, I reluctantly conclude that, unless there will be no change in the actual control of there is a reversal of Board policy or the State the two banks by the Vose family. On the other legislature takes preventive action, domination by hand, the majority of the Board appear to con- holding companies will characterize banking in clude that less weight should be given to the Oklahoma in the years ahead. immediate and potential anticompetitive effects In the long run, the course of decision of the of approval, its effect on concentration of banking Board in cases of this kind necessarily will depend resources and power, and other public-interest on the convictions of its members as to whether aspects of the situation. the public interest will be better served by a bank- It would be shortsighted indeed to regard this ing system made up of many independent units Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1619 or by a banking system dominated by relatively anticipated from the creation of the proposed few organizations, each with numerous offices. holding company system. On the other hand, it is Multiple-office banking—whether in the form of likely to lead to the replacement of the present branch banking or holding company banking—re- independent banking system in Oklahoma with a sults in both benefits and detriments. Although system consisting principally of a few large banks difficult to measure or evaluate, advantages such in Oklahoma City and Tulsa, each associated as economy, efficiency, uniform sound policies, with a large number of satellite banks throughout scope of available services, and the like, sometimes the State. This would eliminate, in large measure, accompany a multiple-office system, and most competition for correspondent banking business countries actually have banking systems of this within the State, and that business is an important nature. On the other hand, the American tradi- part of the operations of the large banks in the tion, in banking as well as other industries, has two major cities. It seems to me that these detrifavored a relatively large number of separate in- mental effects outweigh the admittedly limited stitutions, in the belief that such an arrangement benefits that may be anticipated. Accordingly, the promotes initiative, vigorous competition, bene- application should be denied. ficial risk-taking, opportunities for development of leadership, and similar benefits. DISSENTING STATEMENT OF GOVERNOR KING In my judgment, the advantages of the traditional American banking system, necessarily modi- Although the complete prohibition of branch fied to meet changing conditions, outweigh the banking in Oklahoma may produce certain benebenefits to be derived from a banking system made fits, it also prevents bankers in that State from up of a relatively small number of regional or developing a structure that might serve the econnational institutions. I believe that this philosophy omy more adequately in some respects. Conseunderlay the enactment of the Bank Holding Com- quently, if this were a proposal to establish a pany Act and, as an expression of national will holding company for the purpose of bringing reflected in legislative intent, should be taken into additional banking facilities to parts of a metroaccount by the Board in the administration of politan area where a need existed that otherwise that Act. would not be met as effectively and there was no Relevant in this connection is the decision of adverse competitive effect, I would probably favor the Supreme Court of the United States in recent the proposal. See Whitney Holding Corporation, antitrust litigation. Referring to "the economic New Orleans, 1962 Federal Reserve BULLETIN way of life sought to be preserved by Congress," 560. the Supreme Court spoke of Congress' desire to In this case, however, we are asked to permit prevent "adverse effects upon local control of common ownership in a holding company of a industry and upon small business," and stated: bank in Oklahoma City and another in a far corner of the State. If this proposal is approved, it is "Where an industry was composed of numerous independent units, Congress appeared anxious to pre- difficult to see how similar applications, by this or serve this structure. . . . other organizations, to acquire banks in widely * * * separated parts of Oklahoma could consistently be ". . . we cannot fail to recognize Congress' desire to promote competition through the protection of denied. In other words, a favorable decision in viable, small, locally owned businesses." Brown Shoe this matter amounts to acceptance of the principle Co. v. United States, 370 U.S. 294, 333, 344 (1962) of state-wide holding company systems, subject Also relevant in the instant case is the Supreme to control over further expansion only after a sub- Court's reference, in that case, to "the mandate stantial proportion of the State's banking strucof Congress that tendencies toward concentration ture has come under holding company control. in industry are to be curbed in their incipiency. We must recognize that our decisions necessarily . .. In the light of the trends in this industry serve either to encourage or discourage efforts we agree . . . that this is an appropriate place looking toward the growth of existing holding at which to call a halt." Id. at 346 companies and the creation of new ones. In my opinion, the record in this case indicates Despite this adverse consideration, I might that slight, if any, benefits may reasonably be nevertheless favor the pending application if it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1620 FEDERAL RESERVE BULLETIN • DECEMBER 1962 appeared that banking service to the public would Marine Jefferson Bank, Newport News, First and be materially improved. However, it is practically Citizens National Bank of Alexandria, Alexandria, conceded that the operations of the large Okla- First National Trust and Savings Bank of Lynchhoma City bank will not be affected by holding burg, Lynchburg, Merchants and Farmers Bank company control, and in my opinion the record of Franklin, Franklin, State-Planters Bank of falls short of supporting an expectation that there Commerce and Trusts, Richmond, and The Vienna will be any significant change in the services ren- Trust Company, Vienna. dered by the Idabel bank, either in scope or As required by Section 3(b) of the Act, the quality. Board notified the Commissioner of Banking for We must bear in mind that the Bank Holding the State of Virginia and the Comptroller of the Company Act was passed by Congress with the Currency of the receipt of the application and express intent to control the future expansion of requested their views. The Commissioner replied holding companies. In the circumstances, it ap- that he knew of no reason why it should not be pears to me that the Congressional purpose and approved. The Comptroller reported favorably. the public interest would be best served by deny- Notice of receipt of said application was pubing this application to open Oklahoma to a state- lished in the Federal Register on July 24, 1962 wide holding company system, particularly on the (27 F. R. 6996), which notice provided an opporbasis of a record that does not support a finding tunity for the filing of comments and views regardthat any substantial benefits would result. The ing the proposed acquisition, and the time for extent to which multiple-office banking within a filing such comments and views has expired and single urban area is in the public interest may be all comments and views filed with the Board have left to the will of the people of Oklahoma ex- been considered by it. pressed through the legislative process, or for IT IS HEREBY ORDERED, for the reasons set forth decision by this Board if and when holding com- in the Board's Statement of this date, that the said pany proposals of that nature should come be- application be and hereby is granted, and the fore it. acquisition by Applicant of more than 50 per cent For these reasons, I conclude that the applica- of the voting shares of the above-mentioned banks tion should be denied. is hereby approved, provided that such acquisition shall not be consummated (a) within seven calendar days after the date of this Order or (b) later UNITED VIRGINIA BANKSHARES, INCORthan three months after said date. PORATED, RICHMOND, VIRGINIA Dated at Washington, D. C, this 6th day of In the matter of the application of United December, 1962. Virginia Bankshares, Incorporated for permission By order of the Board of Governors. to become a bank holding company by acquiring Voting for this action: Chairman Martin, and Goverstock of six banks in Virginia nors Balderston, Mills, Shepardson, King and Mitchell. Voting against this action: Governor Robertson. ORDER APPROVING APPLICATION UNDER BANK (Signed) MERRITT SHERMAN, Secretary. HOLDING COMPANY ACT [SEAL] There has come before the Board of Governors, pursuant to Section 3(a) (1) of the Bank Holding STATEMENT Company Act of 1956 (12 U.S.C. 1842) and Section 222.4(a)(l) of the Board's Regulation Y United Virginia Bankshares, Incorporated, (12 CFR 222.4(a)(l)), an application by United Richmond, Virginia ("Applicant"), has applied Virginia Bankshares, Incorporated, Richmond, pursuant to Section 3 (a) (1) of the Bank Holding Virginia, for the Board's prior approval of action Company Act of 1956 ("the Act"), for the whereby Applicant would become a bank holding Board's prior approval of action that would result company through the acquisition of more than 50 in Applicant becoming a bank holding company per cent of the voting shares of the following —namely, the acquisition of more than 50 per banks located in the State of Virginia: Citizens cent of the voting shares of the following banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1621 located in the State of Virginia: Citizens Marine provide and which are not usually available to Jefferson Bank, Newport News ("Citizens New- banks the size of any of the proposed constituents port News"); First and Citizens National Bank of except State-Planters. Alexandria, Alexandria ("First Alexandria"); Citizens Newport News, with deposits of $18.9 First National Trust and Savings Bank of Lynch- million, was established in 1891, and merged with burg, Lynchburg ("First Lynchburg"); Merchants the Jefferson Bank in 1932 to form the present and Farmers Bank of Franklin, Franklin ("Mer- institution. Citizens Newport News is the second chants Franklin"); State-Planters Bank of Com- oldest and third largest bank serving the Newport merce and Trusts, Richmond ("State-Planters"); News area, and now operates a head office and and The Vienna Trust Company, Vienna ("Vienna two branches within the city. It offers the usual Trust"). banking services, including those of a trust depart- State-Planters, which would be the principal ment. bank in the proposed holding company system, is First Alexandria, with deposits of $61.8 million, the second largest bank in the State of Virginia. second in size of the six banks whose stock Appli- After formation of the system, Applicant would cant proposes to acquire and the largest bank in control the largest banking organization in the Alexandria, was first organized in 1864. The State, with deposits of $356 million,* as against present institution is the result of a merger in 1954 First and Merchants National Bank, of Richmond, of The First National Bank of Alexandria and with $322 million, and Virginia Commonwealth the Citizens National Bank of Alexandria, under Corporation, with $181 million. the charter of the former. With eight offices, it Statutory factors. Section 3(c) of the Act re- now serves an important segment of the Washquires the Board to take into consideration the ington, D. C. metropolitan area, and many of its following five factors: (1) the financial history customers are employed by United States Governand condition of the holding company and the ment agencies or businesses which cater to the banks concerned; (2) their prospects; (3) the needs of these agencies and their personnel. It character of their management; (4) the conveni- operates one of the largest trust departments in ence, needs, and welfare of the communities and Northern Virginia. area concerned; and (5) whether or not the effect Organized as a national bank in 1865, First of the acquisitions would be to expand the size or Lynchburg, with deposits of $33.5 million, is the extent of the bank holding company system in- second largest bank serving the growing Lynchvolved beyond limits consistent with adequate burg area. In 1921, the First National Bank of and sound banking, the public interest, and the Lynchburg took over the liquidating United Loan preservation of competition in the field of banking. and Trust Company, and in 1955 it merged with Banking factors. The financial history, condi- the Lynchburg Trust and Savings Bank under the tion, prospects, and management of the six banks charter of First National and the title of the presare satisfactory, as are the proposed financial ent institution. The bank presently operates four structure and management, and prospects of the branches and a head office within the city of Applicant. Lynchburg. First Lynchburg operates a large Applicant was organized on June 11, 1962, as a trust department. Virginia corporation, for the purpose of acquiring Originally organized in 1903, Merchants Frankthe banks here involved. Management of Appli- lin, with deposits of $4.9 million, was reorganized cant is regarded as competent. Its future prospects under the present title in 1928. In 1930, it asappear satisfactory, based upon past records of sumed the liabilities of the Bank of Newsoms, profitable growth of the banks involved and the Newsoms, Virginia, and it presently operates from economic potential of the areas served, as well as one office in Franklin. It offers no trust services. on the managerial services which Applicant will The oldest predecessor bank of State-Planters, which has deposits of $221.4 million, was organized as a national bank in 1865. In 1926, the * Unless otherwise indicated, deposit and loan Planters National Bank merged with the State figures herein stated are as of June 30, 1962. This and City Bank and Trust Company under the figure and the two following it are adjusted for mergers after that date. title State-Planters Bank and Trust Company. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1622 FEDERAL RESERVE BULLETIN • DECEMBER 1962 1934, a branch was acquired in Hopewell by economic growth in the State by marshaling bankabsorption of an affiliated bank. In 1956, State- ing resources, their own prospects are, of course, Planters Bank and Trust Company merged with improved. the Bank of Commerce and Trusts and adopted The four smaller banks will benefit to some the present title. In 1959, it expanded its out-of- extent from economies which should result from city operations through merger with the Citizens the elimination of duplicating activities and from National Bank of Petersburg, and it has recently the improvement of other services. These will inmerged with The Suburban Bank, which was clude the employment of a controller by Appliestablished in 1959 under the sponsorship of cant, under whose direction an adequate system State-Planters with the plan of merging it with of controls and a uniform method of record that bank after the lapse of five years then pre- maintenance will be established, and the services scribed by Virginia law. State-Planters now oper- of investment analysis and portfolio advice by an ates a head office and eight branches within the investment research staff to be maintained at the city of Richmond, one branch in Hopewell, four holding company level. branches in Petersburg, three branches in Henrico As to the third factor, the character of the County, and a facility at the Fort Lee military management of the Applicant and the banks coninstallation near Petersburg. It has also applied cerned, the management training program of for permission to establish an additional branch State-Planters will be expanded to include all six in the city of Richmond, and a branch on Williams- banks. While some advantage may accrue to the burg Road in Henrico County to the east of Rich- smaller banks of Applicant's system from the mond. It operates one of the largest trust depart- management training program which Applicant ments in the State. will offer, this fact does not significantly weigh Vienna Trust, with deposits of $15 million, was in favor of approval. Sound and vigorous banks organized in 1920 as a national bank and in 1929 should be able to attract adequate management, was converted to a State-chartered institution un- and all of the six banks concerned have satisfacder the present name. It has never merged or tory management at the present time. consolidated with another financial institution. It Convenience and needs of communities. This operates five offices, and while it offers ordinary factor is to an extent the other side of the coin of banking services, it does not exercise fiduciary those just discussed. Where banks can handle powers. larger loans, furnish improved services, or employ As to the prospects of the proposed holding and retain high caliber management, not only company system and of its constituent banks as are the growth and prospects of the banks immembers of that system, the same arguments have proved, but perhaps even more importantly, the been brought forward to support this application convenience and needs of the communities where which were advanced in the case of the application the banks are located are also better served. Thus, of Virginia Commonwealth Corporation, recently to the extent that the circumstances discussed approved by the Board, 1962 Federal Reserve above support approval under the first three fac- BULLETIN 1442. It is urged that the effective tors, they would tend to apply under the fourth lending limit of the largest Virginia banks, includ- factor as well. ing State-Planters, is substantially lower than that Section 3(b) of the Act, in requiring that the of the largest banks in North Carolina, the District Board notify the appropriate State banking auof Columbia, and in Maryland. Larger banks in thority where a State bank is involved, and the Virginia, it is contended, will marshal larger ag- Comptroller of the Currency where a national gregate financial resources, and facilitate indus- bank is concerned, clearly implies that the Board trial and commercial growth of the State. should consider the views of these authorities, al- The proposed subsidiary banks have fairly heavy though it remains, of course, within the Board's loan positions, and it would not appear that their discretion to decide what weight shall be given incorporation into a holding company system will, these views. A statement filed with the Board by in and of itself, generate additional lending capac- the State Corporation Commission, of which the ity. On the other hand, to the extent that members Bureau of Banking is a part, sets forth the view of larger banking organizations, as such, promote of the Virginia authorities that larger aggrega- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1623 tions of banking resources would promote eco- the strictly local, Alexandria area. But in appraisnomic growth in Virginia, comparable to those in ing the competitive situation of First Alexandria, other, neighboring States. The Comptroller of it must be remembered that the bank is in active the Currency, who has the primary responsibility competition with banks in the District of Columfor supervision of two of the banks involved, en- bia, many of considerably larger size, and it is dorsed the same line of reasoning. the opinion of the Board that, for this purpose, a Competitive effect. Consideration as to whether more relevant market is the metropolitan area the effect of the proposed transaction would be which embraces both Alexandria and the District to expand the size or extent of the holding com- of Columbia. pany system involved beyond limits consistent The proposed holding company will have 6.1 with adequate and sound banking, the public in- per cent of the banking offices and 10.3 per cent terest, and the preservation of competition in the of bank deposits in the State of Virginia. While field of banking, can be undertaken from two these percentages are substantial, they do not points of view—the competitive effect of the compel an adverse conclusion as to the competitransaction as between the banks involved and tive factor, since no such percentage is definitive its effect upon the competitive position of other in itself. The figures derive their significance from banks. the many facets of the competitive situation out As to the first, there will be little reduction in of which they are derived. Among the factors direct competition among the proposed subsid- which will tend, in the Board's view, to preserve iaries themselves, since the six banks, with one and enhance banking competition in Virginia is exception, are located in widely separated com- the fact that, among the larger banks which will munities. In the case of First and Citizens and remain "independent" after formation of Appli- Vienna Trust, the two whose primary service cant's holding company, are banks ranking first, areas are in closest proximity, the intervening sec- third, fifth, sixth, seventh, and eighth among the tion is highly developed residentially and includes State's ten largest banks. numerous shopping centers and several other Nevertheless, it remains a question of judgment banks; it is from ten to fourteen miles between in each individual case as to the point at which a the closest offices of the two banks, depending line should be drawn to prevent the formation of upon the routes taken. Residents of either com- further and larger aggregations of banking remunity seeking banking accommodation outside sources. The application before it presents a closetheir own localities would probably tend to follow case, and the Board decides only that, on balance,, main arteries to Washington rather than crossing the line should not be drawn here. principal thoroughfares and passing other banks Viewing the relevant facts in the light of the to reach a bank in the other community. Loans general purposes of the Act and the factors enudrawn by First and Citizens from the primary merated in Section 3(c), it is the judgment of service area of Vienna Trust seem to consist prin- the Board that the proposed acquisitions would cipally of transactions which would have been be consistent with the statutory objectives and beyond the lending capacity of the latter bank. the public interest and that the application should As to the other aspect, the competitive effect be approved. of the formation of the proposed holding company system on other banks and on banking organiza- DISSENTING STATEMENT OF GOVERNOR tions in the States, the Board finds that this effect ROBERTSON would not be such as to require denial of the application. Four of the banks are relatively small, When the Bank Holding Company Act was and none of them is the dominant bank in its area. passed in 1956, only a negligible percentage of In its Statement in Opposition, filed with the the banking facilities and bank deposits of Vir- Board on November 13, 1962, the Department ginia were held by holding company systems. The of Justice argues that approval of the application stated purpose of the Act was to control the future will lead to an "extremely concentrated commer- expansion of bank holding companies. Neverthecial banking economy" in Alexandria. This argu- less, existing holding companies have been perment has some cogency in the narrow focus of mitted to acquire a number of additional banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1624 FEDERAL RESERVE BULLETIN • DECEMBER 1962 in Virginia, and the Board's action in the instant Each of them has a relatively large proportion of case constitutes the second occasion, within less its resources in loans to borrowers within its than two months, that a new holding company has service area. been authorized to operate in that State. As a It is argued that Virginia needs larger banks result, when this plan is consummated, holding in order to meet increasing needs for bank credit. companies will have acquired control of 24 per But there is no evidence indicating that the six cent of all the bank deposits in Virginia. banks here involved will become larger merely These developments in Virginia clearly illus- because their stock is owned by a holding comtrate the tendency discussed in my dissent in the pany. In fact, if argument presented to this Board Matter of First Oklahoma Bancorporation, Inc. by holding companies in other cases are true, i.e., (November 30, 1962). Before holding companies that banks acquired by holding companies tend to have become a major factor in the banking struc- grow slower than their independent bank competture of a region there is a tendency to approve itors, then the approval of this application may acquisitions because relatively little seems to be mean that the six banks will be relatively smaller involved. What is sometimes overlooked, in my rather than larger as a consequence of our apjudgment, is that subsequent applications may not proval. be distinguishable, on a defensible basis, from the It is also argued that the banks in concert will first, in which event the Board is compelled to be able to make larger loans than heretofore as a choose between continued approval to the point result of pooling their resources, but in the cirwhere holding companies become a dominant elecumstances described this could occur only by ment in the State, or denial of later applications withdrawing some resources from the smaller by drawing arbitrary and unreasonable distincloans they are now making. Whether this would tions. In these circumstances, the result is repeated be a beneficial shift is highly questionable; larger approvals, each apparently compelled by the reaborrowers generally have access to credit in a soning of prior decisions, and a steady increase number of cities, not necessarily within the State, in holding company control of banking in the whereas the local bank in many cases is the only State, as exemplified by the course of events in source readily available to small borrowers. Virginia. In this case, no benefits are to be anticipated The Bank Holding Company Act was primarily from the formation of the holding company sysdesigned to control the expansion of holding com- tem that could outweigh the detriment to the pubpanies rather than to open up the floodgates for lic interest, and the departure from the principles their creation. Nevertheless, the terms of the Bank of the Holding Company Act, involved in ap- Holding Company Act and its legislative history proval of a proposal that will, for the first time, make quite clear that creation of new bank holdpermit holding companies to become a dominant ing companies, and additional acquisitions by exfactor in Virginia banking, in control of almost isting holding companies, should be permitted by one-fourth of the State's banking resources. the Board of Governors in a number of situa- A proposal to create a holding company system tions. Sometimes a community or area can be must be evaluated, of course, not on the basis of provided with needed banking facilities only by absolute figures, but rather in its relationship to the establishment of a holding company bank. In the economy of the State involved. Bearing in other cases banking competition actually may be mind the different economies of Virginia and New invigorated by the entrance of a holding company York, I am unable to discover a valid ground into a lethargic banking area. Another class of for distinguishing this case from Matter of Morcases is that in which a holding company proposes gan New York State Corporation, 1962 Federal to take over a bank that is in weak condition or is Reserve BULLETIN 567, in which the Board unanigenuinely unable to attract competent managemously denied the application to form a new ment. holding company system on the basis of an elabo- No such justification for approval is present rate discussion of the pertinent circumstances and here. All of the six banks to be incorporated the factors enumerated in the statute. into the new holding company system are in sound condition, under satisfactory management, and For these reasons, I conclude that the applicameeting the banking needs of their communities. tion should be denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DESIGNATIONS AND APPOINTMENTS OF CHAIRMEN AND FEDERAL RESERVE AGENTS, DEPUTY CHAIRMEN, AND DIRECTORS The Board of Governors of the Federal Reserve System announced the following appointments at the Federal Reserve Banks and branches, effective January 1, 1963. Names in CAPITALS indicate new appointments; all others are reappointments. Brief data about each of the new appointments follow the listings. CHAIRMEN AND FEDERAL RESERVE AGENTS FOR YEAR 1963 Federal Reserve Bank Boston ERWIN D. CANHAM, Boston, Massachusetts New York Philip D. Reed, New York City Philadelphia Walter E. Hoadley, Lancaster, Pennsylvania Cleveland Joseph B. Hall, Cincinnati, Ohio Richmond EDWIN HYDE, Richmond, Virginia Atlanta Jack Tarver, Atlanta, Georgia Chicago Robert P. Briggs, Jackson, Michigan St. Louis ETHAN A. H. SHEPLEY, St. Louis, Missouri Minneapolis Atherton Bean, Minneapolis, Minnesota Kansas City Homer A. Scott, Sheridan, Wyoming Dallas Robert O. Anderson, Roswell, New Mexico San Francisco F. B. Whitman, San Francisco, California DEPUTY CHAIRMEN FOR YEAR 1963 Federal Reserve Bank Boston WILLIAM WEBSTER, Boston, Massachusetts New York James DeCamp Wise, Frenchtown, New Jersey Philadelphia David C. Bevan, Philadelphia, Pennsylvania Cleveland LOGAN T. JOHNSTON, Middletown, Ohio Richmond WILLIAM H. GRIER, Rock Hill, South Carolina Atlanta Henry G. Chalkley, Jr., Lake Charles, Louisiana Chicago James H. Hilton, Ames, Iowa St. Louis J. H. Longwell, Columbia, Missouri Minneapolis Judson Bemis, Minneapolis, Minnesota Kansas City DOLPH SIMONS, Lawrence, Kansas Dallas MORGAN J. DAVIS, Houston, Texas San Francisco John D. Fredericks, Los Angeles, California 1625 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1626 FEDERAL RESERVE BULLETIN » DECEMBER 1962 FEDERAL RESERVE BANK DIRECTORS1 (Three-year terms) Federal Reserve Bank Boston WILBUR H. NORTON, Providence, Rhode Island New York Philip D. Reed, New York City Philadelphia David C. Bevan, Philadelphia, Pennsylvania Cleveland LOGAN T. JOHNSTON, Middletown, Ohio Richmond WILSON H. ELKINS, College Park, Maryland Atlanta J. M. Cheatham, Griffin, Georgia Chicago James H. Hilton, Ames, Iowa St. Louis ETHAN A. H. SHEPLEY, St. Louis, Missouri Minneapolis Atherton Bean, Minneapolis, Minnesota Kansas City DEAN A. McGEE, Oklahoma City, Oklahoma Dallas Robert O. Anderson, Roswell, New Mexico San Francisco F. B. Whitman, San Francisco, California FEDERAL RESERVE BANK BRANCH DIRECTORS2 (Three-year terms unless otherwise indicated) Federal Reserve Bank and Branch New York Buffalo MAURICE R. FORM AN, President, B. Forman Co., ^ j , Rochester, New York. 7 Cleveland ' Cincinnati Howard E. Whitaker, Chairman of the Board, The Mead Corporation, Dayton, Ohio. Pittsburgh F. L. Byrom, President, Koppers Company, Inc., Pittsburgh, Richmond Pennsylvania. Baltimore E. WAYNE CORRIN, President, Hope Natural Gas Company, Clarksburg, West Virginia. Charlotte J. C. Cowan, Jr., Vice Chairman of the Board, Burlington Atlanta Industries, Inc., Greensboro, North Carolina. Birmingham Jack W. Warner, Chairman of the Board and President, Gulf States Paper Corporation, Tuscaloosa, Alabama. Jacksonville Claude J. Yates, Vice President and General Manager, Southern Bell Telephone and Telegraph Company, Jacksonville, Florida. Nashville Andrew D. Holt, President, University of Tennessee, Knoxville, Tennessee. New Orleans J. O. Emmerich, Editor, Enterprise-Journal McComb, Chicago Mississippi. Detroit GUY S. PEPPIATT, President, Federal-Mogul-Bower Bearings, Inc., Detroit, Michigan. 1 Each Federal Reserve Bank has a board of Federal Reserve Bank expire at the end of each year, directors consisting of nine members, divided into 2 Federal Reserve Bank branches have either five or three classes, designated as Classes A, B, and C. The seven directors, of whom a majority are appointed by six A and B directors are elected by the member the board of directors of the parent Federal Reserve banks, and the three C directors are appointed by the Bank, and the others are appointed by the Board of Board of Governors. The terms of two of the elected Governors of the Federal Reserve System, directors and one of the appointed directors at each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1627 FEDERAL RESERVE BANK BRANCH DIRECTORS (continued) St. Louis Little Rock CAREY V. STABLER, President, Little Rock University, Little Rock, Arkansas. Memphis William King Self, President, Riverside Industries, Marks, Mississippi. Minneapolis (2-year term) Harry K. Newburn, President, Montana State University, Helena Missoula, Montana. Kansas City (2-year terms) Denver R. A. Burghart, Ingle Land and Cattle Company, Colorado Springs, Colorado. Oklahoma City Otto C. Barby, Attorney and Rancher, Beaver, Oklahoma. Omaha Clifford Morris Hardin, Chancellor, The University of Nebraska, Lincoln, Nebraska. Dallas El Paso Roger B. Corbett, President, New Mexico State University, University Park, New Mexico. Houston DONALD B. CAMPBELL, Works Manager, Sabine River Works, E. I. du Pont de Nemours and Company, Orange, Texas. San Antonio John R. Stockton, Professor of Business Statistics and Director of Bureau of Business Research, The University of Texas, Austin, Texas. San Francisco (2-year terms) Los Angeles S. Alfred Halgren, Vice President and Director, Carnation Company, Los Angeles, California. Portland Raymond R. Reter, Reter Fruit Company, Medford, Oregon. Salt Lake City Thomas B. Rowland, President and General Manager, Rowland's Inc., Pocatello, Idaho. Seattle ROBERT D. O'BRIEN, President, Pacific Car and Foundry Company, Seattle, Washington. Federal Reserve Bank of Boston of the Bank for the year 1963. Mr. Webster is President of New England Electric System in ERWIN D. CANHAM, Boston, Massachusetts, Boston. As Deputy Chairman, he succeeds Mr. was designated Chairman and Federal Reserve Erwin D. Canham, Editor, The Christian Science Agent at the Federal Reserve Bank of Boston for Monitor, Boston, who was designated Chairman the year 1963. Mr. Canham has served as a Boardand Federal Reserve Agent for 1963. appointed director of the Federal Reserve Bank of Boston since January 1959 and as Deputy WILBUR H. NORTON, Providence, Rhode Chairman since 1961. Mr. Canham is Editor of Island, was appointed a director of the Federal The Christian Science Monitor, Boston. As Chair- Reserve Bank of Boston for a three-year term man and Federal Reserve Agent, he succeeds Dr. beginning January 1, 1963. Mr. Norton is Presi- Nils Y. Wessell, President, Tufts University, Med- dent, Gorham Corporation, Providence, Rhode ford, Massachusetts, whose term expires Decem- Island. He succeeds Dr. Nils Y. Wessell, President, ber 31, 1962. Tufts University, Medford, Massachusetts, whose term as a director expires December 31, 1962. WILLIAM WEBSTER, Boston, Massachusetts, who has been serving as a Board-appointed direc- Federal Reserve Bank of New York tor of the Federal Reserve Bank of Boston since January 1961, was appointed Deputy Chairman MAURICE R. FORMAN, Rochester. New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1628 FEDERAL RESERVE BULLETIN • DECEMBER 1962 York, was appointed a director of the Buffalo Branch of the Federal Reserve Bank of Richmond Branch of the Federal Reserve Bank of New from 1954 through 1959. Mr. Grier is President York for a three-year term beginning January 1, of the Rock Hill Printing & Finishing Company, 1963. Mr. Forman is President, B. Forman Co., Rock Hill, South Carolina. As Deputy Chairman Rochester, New York. He succeeds Mr. Raymond of the Richmond Bank, Mr. Grier succeeds Mr. E. Olson, President, Taylor Instrument Com- Edwin Hyde, who was designated Chairman and panies, Rochester, New York, whose term expires Federal Reserve Agent for 1963. December 31, 1962. WILSON H. ELKINS, College Park, Maryland, Federal Reserve Bank of Cleveland was appointed a director of the Federal Reserve Bank of Richmond for a three-year term be- LOGAN T. JOHNSTON, Middletown, Ohio, ginning January 1, 1963. Dr. Elkins is President was appointed a director of the Federal Reserve of the University of Maryland at College Park. Bank of Cleveland for a three-year term beginning He succeeds Mr. Alonzo G. Decker, Jr., Presi- January 1, 1963, and was also appointed Deputy dent, The Black & Decker Manufacturing Com- Chairman at that Bank for 1963. He had served pany, Towson, Maryland, whose term as a director as a Bank-appointed director of the Cincinnati expires December 31, 1962. Branch of the Federal Reserve Bank of Cleveland since 1961. Mr. Johnston is President, Armco E. WAYNE CORRIN, Clarksburg, West Vir- Steel Corporation, Middletown, Ohio. As Deputy ginia, was appointed a director of the Baltimore Chairman and also as a Board-appointed director Branch of the Federal Reserve Bank of Richmond of the Cleveland Bank, Mr. Johnston succeeds for a three-year term beginning January 1, 1963. Mr. Joseph H. Thompson, Chairman of the Board, Mr. Corrin is President of Hope Natural Gas The Hanna Mining Company, Cleveland, Ohio, Company, Clarksburg, West Virginia. He sucwhose term as Deputy Chairman and as a Board- ceeds Dr. Gordon M. Cairns, Dean of Agriculappointed director expires December 31, 1962. ture, University of Maryland, College Park, Maryland, whose term expires December 31, 1962. Federal Reserve Bank of Richmond Federal Reserve Bank of Chicago EDWIN HYDE, Richmond, Virginia, was designated Chairman and Federal Reserve Agent at GUY S. PEPPIATT, Detroit, Michigan, was apthe Federal Reserve Bank of Richmond for the pointed a director of the Detroit Branch of the year 1963. Mr. Hyde has served as a Board- Federal Rerserve Bank of Chicago for a threeappointed director of the Federal Reserve Bank year term beginning January 1, 1963. Mr. Pepof Richmond since January 1959 and as Deputy piatt is President of Federal-Mogul-Bower Bear- Chairman since July 1960. He had previously ings, Inc., Detroit. He succeeds Mr. J. Thomas served as an elected director of that Bank from Smith, President, Dura Corporation, Oak Park, 1951 through 1954. Mr. Hyde is President of Illinois, whose term expires December 31, 1962. Miller & Rhoads, Inc., Richmond, Virginia. As Chairman and Federal Reserve Agent, Mr. Hyde Federal Reserve Bank of St. Louis succeeds Mr. Alonzo G. Decker, Jr., President, The Black & Decker Manufacturing Company, ETHAN A. H. SHEPLEY, St. Louis, Missouri, Towson, Maryland, whose term expires December was appointed a director of the Federal Reserve 31, 1962. Bank of St. Louis for a three-year term beginning January 1, 1963, and was designated Chairman WILLIAM H. GRIER, Rock Hill, South Caro- and Federal Reserve Agent at the St. Louis Bank lina, who has been serving as a Board-appointed for the year 1963. Mr. Shepley is Of Counsel, director of the Federal Reserve Bank of Richmond Shepley, Kroeger, Fisse & Shepley, St. Louis, Missince July 1960, was appointed Deputy Chairman souri. As Chairman and Federal Reserve Agent of the Bank for the year 1963. Mr. Grier served and also as a Board-appointed director of the St. as a Board-appointed director of the Charlotte Louis Bank, Mr. Shepley succeeds Mr. Pierre B. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1629 McBride, President, Porcelain Metals Corpora- Federal Reserve Bank of Dallas tion, Louisville, Kentucky, whose term expires December 31, 1962. MORGAN J. DAVIS, Houston, Texas, who has been serving as a Board-appointed director of CAREY V. STABLER, Little Rock, Arkansas, the Federal Reserve Bank of Dallas since Januwas appointed a director of the Little Rock Branch ary 1961, was appointed Deputy Chairman of the of the Federal Reserve Bank of St. Louis for a Bank for the year 1963. Mr. Davis is Chairman of three-year term beginning January 1, 1963. Dr. the Board, Humble Oil & Refining Company, Stabler is President of Little Rock University, Houston, Texas. He succeeds Mr. Lamar Flem- Little Rock, Arkansas. He succeeds Mr. T. Wining, Jr., Member, Board of Directors, Anderson, fred Bell, President, Bush-Caldwell Company, Clayton & Co., Inc., Houston, Texas, whose term Little Rock, Arkansas, whose term expires Deas Deputy Chairman expires December 31, 1962. cember 31, 1962. DONALD B. CAMPBELL, Orange, Texas, was Federal Reserve Bank of Kansas City appointed a director of the Houston Branch of DOLPH SIMONS, Lawrence, Kansas, who has the Federal Reserve Bank of Dallas for a threebeen serving as a Board-appointed director of the year term beginning January 1, 1963. Mr. Camp- Federal Reserve Bank of Kansas City since Janu- bell is Works Manager, Sabine River Works, ary 1962, was appointed Deputy Chairman of E. I. du Pont de Nemours and Company, Orange, the Bank for the year 1963. Mr. Simons is Editor Texas. He succeeds Mr. A. E. Cudlipp, Vice Presiand Publisher, The Lawrence Daily Journal- dent and Director, Lufkin Foundry & Machine Company, Lufkin, Texas, whose term expires World, Lawrence, Kansas. As Deputy Chairman, December 31, 1962. he succeeds Dr. Oliver S. Willham, President, Oklahoma State University, Stillwater, Oklahoma, whose term expires December 31, 1962. Federal Reserve Bank of San Francisco DEAN A. McGEE, Oklahoma City, Oklahoma, ROBERT D. O'BRIEN, Seattle, Washington, was appointed a director of the Federal Reserve was appointed a director of the Seattle Branch Bank of Kansas City for a three-year term be- of the Federal Reserve Bank of San Francisco ginning January 1, 1963. Mr. McGee is President, for a two-year term beginning January 1, 1963. Kerr-McGee Oil Industries, Inc., Oklahoma City, Mr. O'Brien is President, Pacific Car and Foundry Oklahoma. He succeeds Dr. Oliver S. Willham, Company, Seattle, Washington. He succeeds Mr. President, Oklahoma State University, Stillwater, Lyman J. Bunting, President, Artificial Ice & Fuel Oklahoma, whose term as director expires De- Company, Yakima, Washington, whose term excember 31, 1962. pires December 31, 1962. ELECTION OF CLASS A AND CLASS B DIRECTORS The Federal Reserve Banks have announced the results of the annual elections by their member banks of Class A and Class B directors as shown below. The directors have been elected to serve for three years beginning January 1, 1963. Boston Class A OSTROM ENDERS, Chairman, Hartford National Bank and Trust Company, Hartford, Connecticut. Mr. Enders succeeds William D. Ireland, Chairman of the Executive Committee, State Street Bank and Trust Company, Boston, Massachusetts. Class B JOHN R. NEWELL, President, Bath Iron Works Corporation, Bath, Maine. Mr. Newell succeeds Milton P. Higgins, Chairman of the Board, Norton Company, Worcester, Massachusetts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1630 FEDERAL RESERVE BULLETIN • DECEMBER 1962 New York Class A RALPH H. RUE, President, The Schenectady Trust Company, Schenectady, New York. Mr. Rue succeeds Cesar J. Bertheau, Chairman of the Board, Peoples Trust Company of Bergen County, Hackensack, New Jersey. Class B KENNETH H. HANNAN, Executive Vice President, Union Carbide Corporation, New York City. (Reelected) Philadelphia Class A BENJAMIN F. SAWIN, Vice Chairman of the Board, Provident Tradesmens Bank and Trust Company, Philadelphia, Pennsylvania. Mr. Sawin succeeds Frederic A. Potts, President, The Philadelphia National Bank, Philadelphia, Pennsylvania. Class B RALPH K. GOTTSHALL, Chairman of the Board and President, Atlas Chemical Industries, Inc., Wilmington, Delaware. Mr. Gottshall succeeds R. Russell Pippin, Treasurer, E. I. du Pont de Nemours and Company, Wilmington, Delaware. Cleveland Class A FRANK E. AGNEW, Jr., President, Pittsburgh National Bank, Pittsburgh, Pennsylvania. Mr. Agnew succeeds Francis H. Beam, Chairman of the Board, The National City Bank of Cleveland, Ohio. Class B WALTER K. BAILEY, Chairman of the Board, The Warner & Swasey Company, Cleveland, Ohio. Mr. Bailey succeeds W. Cordes Snyder, Jr., Chairman of the Board and President, Blaw-Knox Company, Pittsburgh, Pennsylvania. Richmond Class A DAVID K. CUSHWA, Jr., President, The Washington County National Savings Bank, Williamsport, Maryland. Mr. Cushwa succeeds H. H. Cooley, President, The Round Hill National Bank, Round Hill, Virginia. Class B R. E. SALVATI, Chairman of the Board, Island Creek Coal Company, Huntington, West Virginia. (Reelected) Atlanta Class A M. M. KIMBREL, Chairman of the Board, First National Bank, Thomson, Georgia. (Re-elected) Class B MCGREGOR SMITH, Chairman of the Board, Florida Power & Light Company, Miami, Florida. (Reelected) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1631 Chicago Class A HARRY W. SCHALLER, President, The Citizens First National Bank of Storm Lake, Iowa. Mr. Schaller succeeds Vivian W. Johnson, Chairman of the Board, First National Bank, Cedar Falls, Iowa. Class B WILLIAM A. HANLEY, Director, Eli Lilly and Company, Indianapolis, Indiana. (Re-elected) St. Louis Class A HARRY F. HARRINGTON, Chairman of the Board and President, The Boatmen's National Bank of St. Louis, Missouri. Mr. Harrington succeeds Kenton R. Cravens, Chairman of the Board, Mercantile Trust Company, St. Louis, Missouri. Class B HAROLD O. MCCUTCHAN, Senior Vice President, Mead Johnson & Company, Evansville, Indiana. (Re-elected) Minneapolis Class A CURTIS B. MATEER, Executive Vice President, The Pierre National Bank, Pierre, South Dakota. Mr. Mateer succeeds Harold N. Thomson, Vice President, Farmers & Merchants Bank, Presho, South Dakota. Class B HUGH D. GALUSHA, Jr., Partner, Galusha, Higgins and Galusha, Helena, Montana. Mr. Galusha succeeds Alexander Warden, Publisher, Great Falls Tribune-Leader, Great Falls, Montana. Kansas City Class A BURTON L. LOHMULLER, President, The First National Bank of Centralia, Kansas. (Re-elected) Class B K. S. ADAMS, Chairman of the Board, Phillips Petroleum Company, Bartlesville, Oklahoma. (Re-elected) Dallas Class A RALPH A. PORTER, Executive Vice President, The State National Bank of Denison, Texas. Mr. Porter succeeds John M. Griffith, President, The City National Bank of Taylor, Texas. Class B J. B. PERRY, Jr., President and General Manager, Perry Brothers, Inc., Lufkin, Texas. (Re-elected) San Francisco Class A M. VILAS HUBBARD, President and Chairman of the Board, Citizens Commercial Trust and Savings Bank of Pasadena, California. (Re-elected) Class B FRED H. MERRILL, President, Fireman's Fund Insurance Company, San Francisco, California. Mr. Merrill succeeds N. Loyall McLaren, Partner, Haskins & Sells, San Francisco, California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1632 FEDERAL RESERVE BULLETIN • DECEMBER 1962 ELECTION OF DIRECTOR for commercial and mutual savings banks reflect The Federal Reserve Bank of Boston on Novem- incorporation of benchmark data for December ber 23 announced the election of James R. Carter 1961 and June 1962. Data for certain other finanas a Class B director of the Bank to serve for the cial institutions and for retail outlets were revised remainder of a term expiring December 31, 1964. beginning with January 1961 on the basis of Mr. Carter is President of Nashua Corporation, benchmark figures for December 1961. Small Nashua, New Hampshire. As a director of the adjustments were made in other consumer goods Boston Bank, he succeeds Mr. Eugene B. Whitte- paper and personal loans for sales finance commore, President and Treasurer, The Morley Com- panies in some months of 1962 in order to inpany, Portsmouth, New Hampshire, who died corporate recent information. recently. Data for other consumer goods paper at retail outlets have been revised for March and April of each year, beginning with 1955, to reflect the REVISIONS IN CONSUMER CREDIT STATISTICS introduction of special adjustments to allow for The Federal Reserve series for consumer credit changes in the date of Easter. Similar adjustments have been revised for the period January 1955 were introduced for charge accounts at retail outto date. The revised data for 1961 and 1962 ap- lets in the revised consumer credit figures pubpear on pages 1676-79 and 1696-97 of this BUL- lished in the BULLETIN for December 1961. The LETIN. Revised figures prior to January 1961 are procedure used to compute these adjustments is available on request from the Division of Adminis- similar to that described for department store trative Services, Board of Governors of the Fed- sales in "Revision of Monthly Department Store eral Reserve System, Washington 25, D. C. Indexes," BULLETIN for December 1957, pages The revisions prior to January 1961 reflect 1323-52. changes in two series and in seasonal adjustments for all series. Automobile credit at sales finance ADMISSION OF STATE BANK TO MEMBERSHIP IN companies has been revised beginning with July THE FEDERAL RESERVE SYSTEM 1955 to correct the coverage for this series as of The following bank was admitted to Memberthe date of the latest finance company survey, June ship in the Federal Reserve System during the 30, 1960. The increase in holdings on that survey period November 16, 1962, to December 15, date was $246 million, or about 3 per cent. Small 1962. revisions have also been made in the service credit series for the period July-December 1960. North Carolina In addition, figures beginning with July 1961 Charlotte The Bank of Commerce Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication December 14 Industrial production and nonagricultural em- CONSTRUCTION ployment in November remained at the levels of New construction put in place, which was at a the summer and early autum while personal inrecord level in October, declined somewhat in Nocome and retail sales rose further. The money supvember to a seasonally adjusted annual rate of ply and time deposits at commercial banks con- $62 billion. Following a sharp rise in October, tinued to expand. Common stock prices rose public construction declined. Residential and other further between mid-November and mid-Decemtypes of private construction changed little. ber. INDUSTRIAL PRODUCTION EMPLOYMENT The preliminary November index of industrial Seasonally adjusted employment in nonfarm esproduction was unchanged from the October level tablishments continued to change little in Novemof 120 per cent of the 1957-59 average. Indexes ber. Employment increased further in State and for most major groups of industries as well as local government and in the service industries but those for final products and materials changed declined in construction and in the metal and little. metal-fabricating industries. The average factory Auto assemblies, at 141 per cent of the 1957-59 workweek increased, with substantial gains in average, remained at the advanced level of the primary metals and transportation equipment. The preceding four months. Production of other con- unemployment rate, at 5.8 per cent, was up somesumer durable goods was stable from August to what from October but unchanged from August November, after having declined 4 per cent from and September. the high May-June rate. Following persistent increases through the spring and summer, output DISTRIBUTION of business equipment changed little in October and November. Steel ingot production rose about Retail sales rose nearly 2 per cent in November 5 per cent in November, but changes in output of and were 2x/i per cent higher than in September. most other materials were small. Department store sales rose sharply, although they did not quite reach the September level, and INDUSTRIAL PRODUCTION sales increases were widespread among other non- 1957-59 = 100 durable goods stores. Deliveries of new autos, which had risen sharply to a record rate in October, declined moderately but total sales of durable - TOTAL y^* ~ _ FINAL S*~ goods stores were unchanged. PRODUCTS -^C--~- COMMODITY PRICES ~~ '** MATERIALS ~~ The wholesale commodity price index declined somewhat between mid-November and mid-De- NONDURABLE cember, to the level of a year ago. Owing partly — MANUFACTURES ^g^Z ~~ — CONSUMER Sf*~~ ~~ GooDy\^v/ to decreases among livestock and meats, prices of foodstuffs continued to decline; they were 4 per '- \' \j DURABLE — _/ EQUIPMENT _ cent below the peak reached in September when MANUFACTURES 1 1 1 1 I I I .. there was some withholding of livestock from the markets. The industrial commodity price level re- Federal Reserve indexes, seasonally adjusted. Monthly mained stable. ures, latest shown are for November. 1633 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1634 FEDERAL RESERVE BULLETIN • DECEMBER 1962 BANK CREDIT AND RESERVES by Federal Reserve purchases of U. S. Government securities and were absorbed largely through Total commercial bank credit, seasonally adan outflow of currency. justed, continued to grow in November, but less rapidly than in the preceding months. The increase in loans was smaller, reflecting in part SECURITY MARKETS repayments of security loans. Bank holdings of securities, both U. S. Government and non-Gov- After falling to or below their spring lows, yields ernment, increased. The money supply rose sub- on State and local government bonds increased stantially further and time deposits at commercial somewhat between mid-November and mid-Debanks continued to expand. cember and those on corporate and Treasury is- Total reserves of member banks increased over sues changed little. Rates on 3-month Treasury the four weeks ending December 12. The rise in bills fluctuated narrowly around 2.85 per cent. required reserves was larger than usual, and ex- Common stock prices rose further and the volcess reserves declined. Member bank borrowings ume of trading remained large. In mid-December, from the Federal Reserve were reduced somewhat. average prices were midway between the low of Reserves were supplied by an increase in floata nd last June and the peak of December 1961. INTEREST RATES RETAIL TRADE 1957-59 = 100 RETAIL SALES DEPARTMENT STORES LONG TERM GOVERNMENT SECURITIES A lT%i j J TOTAL Af AAAA/ ,lfl SALES . JV1* f. 0 .•V. .• 1 '*f~ S F C O R U . NT TREASURY - RATES BILLS TOTAL LESS .7 ~ STOCKS y" ,—' AUTOMOTIVE GROUP^/V^ ¥ i i 1 1 1 1 1 1 1 1 . .. I I I I l ... 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 October, for other series, November. figures shown are for week ending December 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated IPC Individuals, partnerships, and corporations c Corrected A Assets p Preliminary L Liabilities r Revised S Financial sources of funds: net change in rp Revised preliminary liabilities i,n, U Financial uses of funds: net acquisitions of in, iv Quarters assets n.a. Not available n.c.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. Goyt. 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 Nov. 1962 1508-23 [Feb. 1962 238-44 Selected assets and liabilities of Federal busi- Banking and monetary statistics, 1961 jMar. 1962 362-63 ness-type activities July 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: Calendar vear /May 1962 644-51 Annually Calendar year |July 1%2 gQ2 Bank holding companies: Operating ratios Apr. 1962 484-86 List of, Dec. 31, 1961 June 1962 762 Insured commercial banks July 1962 903 Banking offices and deposits of group banks. Dec. 31, 1961 Aug. 1962 1075 Stock Exchange firms, detailed debit and credit balances Sept. 1962 1234 1636 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. 1638 Reserve Bank discount rates; margin requirements; reserve requirements 1642 Federal Reserve Banks 1644 Bank debits; currency in circulation. 1646 Money supply; banks and the monetary system. . . . 1648 Commercial and mutual savings banks, by classes. 1650 Commercial banks, by classes. . . 1654 Weekly reporting member banks. . 1656 Business loans 1659 Interest rates 1660 Security prices; stock market credit; open market paper. 1661 Savings institutions 1662 Federal finance 1664 Security issues. 1669 Business finance . . 1671 Real estate credit 1673 Consumer credit 1676 Industrial production 1680 Business activity 1684 Construction 1684 Employment and earnings 1686 Department stores 1688 Foreign trade ... 1689 Wholesale and consumer prices 1690 National product and income series 1692 Flow of Funds, saving, and investment 1694 Revised estimates of consumer credit for 1961. 1696 Guide to tabular presentation. 1636 Index to statistical tables. , 1723 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 obtainedlargely from derived from regular reports made to the other sources. For many of thebanking 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 (seelist of publieral finance, and Federal business-type activi- cations at end of the BULLETIN). 1637 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1638 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 r r i t o e d T U o . t S a . l G B o o r o v i u g u t. g h t - h t s t ecu R m c a r e h i g e t p a r i n e e u s t s e e r s - - c v D o a a a n u n d is c d n - - e ts s Floati T ta o l2 - s G to o c ld k r s o c e t u i a n u n u r n r g c t y - - d y - r c C t e c u i i n u i o n l r c a r n - - y - T h c i u o n r a e r l g s y d a h s - s- Tr u e w r a y i s t - h r F es . F e e i o R g r r v . n - e B s, a O n t k h s er' c O F o a . t u h c n R - e t r . s B F W a . n i R t k h . s re r s C c a e e o n n u rv i d c r n - y e 3 s 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 2,510 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 1952—Dec 24,400 23,876 524 1,633 27,299 23,276 4,806 30,494 1,271 569 745 290 832 21,180 21,180 1953—Dec 25,639 25,218 421 448 U01827,107 22,028 4.885 30,968 767 602 466 390 908 19,920 19,920 1954—Dec 24,917 24 888 29 407 99226,317 21,711 4,982 30,749 805 443 439 365 929 19,279 19,279 1955—Dec 24,602 24,318 284 840 1,38926,853 21,689 5,008 31,265 777 434 459 394 983 19,240 19,240 1956—Dec 24,765 24,498 267 706 27,156 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 I 063 19,420 19 420 1958—Dec 26,312 26.216 96 564 1,49628,412 20,563 5,230 32,371 691 470 262 337 1,174 18,899 18,899 1959—Dec 27,036 26,993 43 911 ,47629,435 19,482 5,311 32,775 396 524 361 348 1,195 18,628 304 18,932 1960—Dec 27,248 27,170 78 94 1,66529,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 2,595 19 283 1961—June . 26,935 26,927 8 66 1,26528,304 17,475 5,432 32,246 411 515 205 250 1,038 16,547 2,495 19,042 1961—Nov 28,616 28,532 84 107 ,37730,142 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 1,92131,217 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 1,80730,468 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 ,790 29,839 16,793 5,586 32,848 449 426 211 272 1,096 16,916 2 655 19,571 Mar 28,570 28,524 46 156 793 30,063 16,707 5,588 32,996 439 448 215 272 1.049 16,939 2,608 19,547 Apr 29,143 29,015 128 134 ,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 ,32630,991 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 ,50831,265 16,434 5,601 33,626 402 514 269 322 971 17,196 2 728 19,924 July 29,581 29,540 41 109 73631,475 16,310 5,602 33,989 398 490 273 312 654 17.272 2,774 20,046 Aug 30,088 30,074 14 143 ,33031,600 16,136 5,598 33,962 405 524 200 335 764 17,144 2,777 19,921 Sept 29,921 29,865 56 91 ,76031,807 16,079 5,548 34,004 398 500 211 296 799 17,227 2 807 20,034 Oct 30 241 30 178 63 76 ,70532,057 16,050 5,552 C34,111 404 517 216 320 710 17,382 2 822 20 205 Nov ... 30 195 30 064 131 129 .69432,053 15,978 5,552 34,584 401 472 202 293 925 16,706 *>2 893*»19,599 Week ending— 1961 Oct. 4... 27 834 27 823 11 36 1.33229,237 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 1,25729,517 17,350 5,565 32,886 417 450 261 363 1,052 17,005 2,421 19,426 18... 28 250 28 130 120 147 ,30529,737 17 336 5,568 33,010 422 479 248 300 998 17,184 2 620 19 804 25 27,819 27,791 28 57 ,63029,544 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 ,23829,404 17,302 5,576 32,802 410 491 241 303 990 17 045 2 706 19 751 8 28,495 28,466 29 93 13029,760 17,291 5,579 32,967 423 475 273 258 992 17,241 2,430 19,671 15 28 466 28 380 86 125 .18629,817 17,276 5,583 33,222 402 476 247 253 992 17,084 2 657 19,741 22 28 588 28 461 127 92 I 74330,465 17 190 5,585 33,350 414 506 309 251 144 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 ,27930,631 16,975 5,588 33,579 416 501 216 258 ,143 17,082 2,682 19,764 13 29,334 29,334 40 ,36330,780 16,961 5,590 33,937 423 460 247 228 ,131 16,906 2,836 19,742 20 29,007 29,007 109 :>,24031,401 16,920 5,588 34,072 424 600 215 219 ,102 17,277 2,957 20,234 27 28,893 28,845 " "48 218 > 57631,685 16,889 5,584 34,171 421 511 207 238 ,106 17,506 2,842 20,348 1962 Jan. 3 28,931 28,720 211 356 2,35531,695 16,889 5,586 33,919 429 441 290 297 1,053 17,740 3,062 20,802 10 28,784 28,717 67 79 2059 30,972 16,883 5,587 33,661 434 380 240 261 1,043 17,421 2,871 20,292 17 28,520 28,501 19 89 ,87030,529 16,839 5,586 33,386 440 435 232 292 1,040 17,130 2 926 20,056 24 28 279 28 279 72 ,78630 185 16 839 5,589 33 070 442 439 220 305 I 043 17 094 2 878 19 972 31 28,310 28,310 94 ,22729,678 16,832 5,590 32,793 450 424 213 296 1,042 16,882 2,876 19,758 Feb 7 28,588 28 588 122 ,11729,873 16,804 5,584 32,776 460 359 223 277 [,042 17,125 2 573 19 698 14 28,575 28,575 120 ,05029,791 16,789 5,585 32,888 448 444 197 252 1,022 16,914 2,606 19,520 21 28,090 28,062 28 122 ,65529,913 16,790 5,586 32,870 447 433 197 274 1,163 16,904 2,676 19,580 28 28,285 28,285 108 ,34029,778 16.790 5,588 32,857 439 470 227 285 1,156 16,721 2,764 19,485 Mar 7 28,433 28,419 14 156 ,33929,974 16,772 5,587 32,908 440 401 214 283 ,100 16 987 2 497 19 484 14 28,502 28,463 39 118 ,25229,917 16,724 5,590 33,066 441 461 224 234 1,053 16 751 2 597 19 348 21 28,487 28,415 72 198 ,44630,176 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 I 028 16,966 2,682 19,648 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK RESERVES AND RELATED ITEMS 1639 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 r o o v i u g u t g . h t - h t s t ecu R m c a r e h i g e t p a r i n e u e s t s e e r s - - c v D o a a a n u n i d s c n d - - e ts s Float i T ta o l - * s G to o c ld k T r s c o e t u r i a u n e n u r n r y a g c t - d - y s - - 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 u o r n a e r l g s y d a h s s - - Tr t u e h w r a a i s y n th - m F r e e . F e m s o i R e g r b r . - n v e B r e s a O b , n a t k h n s e k r i c O F o . a u t c h n - R e ts r . W B F. a i n t R h k M . s e r m e r c C s e b a o e n u e n i r n c r r d v - y 3 e b s an T k otal Averages of daily figures Week ending— 1962 Apr. 4. 29,150 28,996 154 140 02930,361 16,609 5,591 33,050 433 400 220 351 1,025 17,080 2,583 19,663 11. 29,281 29,134 147 125 156 30,603 16,609 5,589 33,274 432 458 252 327 1,030 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 30,704 16,494 5,590 33,133 419 607 213 366 958 17,091 2,777 19,868 9. 29,634 29,467 167 112 31,025 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 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 31,198 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 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 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 81 627 31,729 16,412 5,602 34,155 394 452 294 301 700 17,447 2,694 20,141 18 29,304 29,304 178 ,—03 931,561 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 85 346 31,066 16,168 5,604 33,813 414 428 234 343 643 16,962 2,876 19,838 30,194 30,194 171 150 31,559 16,148 5,603 33,938 417 488 217 331 692 17,226 2,589 19,815 15 30,177 30,160 145 31,642 16,148 5,596 34,059 402 598 198 375 703 17,050 2,763 19,813 22 29,902 29,890 171 684 31,795 16,147 5,597 34,003 397 553 189 325 827 17,247 2,763 20,010 29 30,019 30,019 92 1 ,'287 31,43316,112 5,601 33,870 404 502 192 314 820 17,044 2,870 19,914 30,412 30,264 148 105 1,134 31,685 16,098 5,556 33,977 404 459 175 315 866 17,143 2,696 19,839 30,396 30,269 127 89 1,400 31,921 16,093 5,550 34,167 392 503 204 293 839 17,165 2,787 19,952 19 29,748 29,748 36 2,136 31,955 16,067 5,544 34,045 390 579 222 284 774 17,273 2,886 20,159 26 29,340 29,340 152 2,176 31,702 16,068 5,548 33,882 401 494 219 283 760 17,278 2,913 20,191 Oct. 3. 29,959 29,946 13 74 1,747 31,816 16,068 5,552 33,909 407 476 217 323 754 17,352 2,822 20,174 10. 30,682 30,546 136 56 "32,416 16,067 5,555 34,102 410 513 243 314 751 17,706 2,627 20,333 17. 30,480 30,385 95 82 i;633 32,229 16,067 5,551 34,256 397 480 214 336 717 17,445 2,861 20,306 24. 29,931 29,931 67 2,083 32,116 16,052 5,551 34,115 398 519 211 315 684 17,476 2,882 20,358 31. 29,888 29,853 35 91 1,475 31,491 16,006 5,552 =34,042 c406 541 207 311 672 16,872 2,935 19,807 Nov. 7. 30,235 30,048 187 170 1,247 31,686 15,977 5,555 34,231 410 392 184 302 822 16,878 2,681 19,559 14. 30,378 30,138 240 156 1,30031,868 15,978 5,550 34,560 401 523 216 309 798 16,589 2,828 19,417 21. 30,104 30,044 60 105 2,056"",299 15,978 5,550 34,684 394 464 193 289 1,020 16,783 2,902 19,685 28. 30,012 29,994 18 103 2,109 32,259 15,978 5,551 34,803 400 488 214 262 1,023 16,597 3,033 19,630 End of month 1962 Sept 29,825 29,825 48 1,781 31,690 16,067 5,551 33,893 390 400 229 318 756 17,321 2,566 19,887 Oct 3 30 0 , , 2 4 0 5 1 4 2 3 9 0 , , 9 2 5 0 3 0 2 2 5 4 4 8 2 7 1 1 9 1 1 , , 8 1 8 7 5 1 3 3 2 1 , , 4 62 4 5 8 ' 1 1 5 5 , , 9 9 7 7 8 8*> 5 5 ,5 ,5 5 5 4 2^3 3 4 4, , 1 7 0 6 9 8 399 5 5 8 1 5 3 2 1 0 8 3 2 3 3 0 0 5 9 1,0 8 7 2 8 7 1 1 6 6, , 8 6 2 4 1 8 3 3 , , 2 2 9 3 9 7 2 1 0 9 , , 0 9 5 4 8 7 Nov Wednesday 1962 30,568 30,476 164 1,51132,277 16,068 5,554 33,976 416 492 196 330 752 17,737 2,946 20,683 Oct. 3 30,529 30,457 92 1,326 31,981 16,068 5,557 34,252 414 492 227 307 749 17,164 2,957 20,121 10 2 3 9 0 , , 8 1 3 9 3 3 2 3 9 0 , , 8 1 3 9 3 3 1 1 5 7 6 2 1 1 , , 7 5 6 2 3 4 3 3 2 1, , 5 1 4 6 7 2 1 16 6 , , 0 0 1 6 8 8 5 5 , , 5 5 5 5 2 0 3 34 4 , , 0 1 4 8 3 7 4 4 0 1 3 0 4 4 7 9 9 5 2 2 0 1 6 7 3 2 2 9 2 7 6 6 8 8 8 8 1 1 7 6 , , 4 9 9 6 5 7 3 3, , 1 1 7 5 1 6 2 2 0 0 , , 6 1 5 3 1 8 2 1 4 7 30,201 29,953 248 219 1,17131,625 15,978 5,554 34,109 399 513 182 309 827 16,821 3,237 20,058 31 30,324 30,127 197 579 740 31,677 15,978 5,556 34,446 412 325 194 319 819 16,696 2,813 19,509 Nov. 7 30,123 30,123 108 1,452 31,717 15,978 5,550 34,651 411 467 233 325 743 16,415 3,286 19,701 2 2 1 8 1 4 3 3 0 0, , 1 0 9 5 1 9 3 3 0 0 , , 0 0 5 6 9 7 124 1 1 0 3 3 9 2 1 , ,8 0 4 4 8 43 32 2 , , 0 4 4 0 6 9 1 1 5 5 , , 9 9 7 7 8 8 5 5 , , 5 5 5 5 1 2 3 3 4 4 , , 8 8 0 4 1 3 3 3 9 9 7 8 5 3 5 1 2 0 2 2 0 1 9 3 2 26 6 3 2 , , 0 0 2 2 6 7 1 16 6 , , 3 8 2 8 7 4 3 3 , , 4 1 3 9 4 5 2 1 0 9 , ,7 0 6 7 1 9 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

1640 BANK RESERVES AND RELATED ITEMS RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period T h o e t l a d l Re q s u R e i r e r v - e e d s Excess B F r B i a n o . a o n w g R t r k s - - . s s F e r r r e v e - e e s T h o e t l a d l : R q e u R s i e e r r - e v d es Excess B F r B i a n o . a o n R w g t r k s - . - s s F e r r r e v e - e e s T h o e t l a d l :R q e u R se ir e r e - v d es Excess B F r B i a n o . a o n R w g t r k s - . - 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 i 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939 Dec 11 473 6 462 5,011 3 5,008 5,623 3,012 2 611 2 611 1 141 601 540 540 1941_Dec 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 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 1,024 1,011 13 6 7 1950 Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1 199 1 191 g 5 3 1951—Dec 20,310 19,484 826 657 169 5,275 5,231 44 151 -107 1,356 1,353 3 64 —61 1952—Dec 21,180 20,457 723 1,593 -870 5,357 5,328 30 486 -456 1,406 1,409 -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 1,166 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 1 136 1 127 8 85 —77 1958—Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 1,077 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—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 7 57 —50 987 987 22 —22 1962 Jan 20,089 19,473 616 70 546 3,811 3,763 48 7 41 987 982 5 3 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 7 -20 May 19,817 19,320 497 63 434 3,724 3,713 11 1 10 990 983 7 4 3 June 19,924 19,453 471 100 371 3,781 3,774 7 19 -12 976 977 -1 2 -3 July 20 046 19,514 532 89 443 3,766 3,732 34 16 18 1,000 989 10 4 6 AUK 19,921 19,358 563 127 436 3,709 3,684 24 17 7 1,017 1,013 4 18 -14 Sent 20,034 19,576 458 80 378 3,718 3,723 -4 15 -19 1,021 1,022 -1 9 -10 Oct 20,205 19,721 484 65 419 3,774 3,736 38 4 34 1,036 1,032 5 6 -1 Nov *>19,599^19,012 *587 119 *468 3,627 3,601 27 14 13 1,007 1,001 6 13 -7 Week ending— 1961—Nov. 1 19,751 19,208 543 74 469 3,737 3,720 17 16 1 988 991 -3 9 -12 8.... 19,671 19,198 473 91 382 3,680 3,662 18 18 993 987 5 16 -11 15.... 19,741 19,153 588 122 466 3,644 3,626 18 43 -25 968 972 -4 13 -17 22.... 19,894 19,297 597 90 507 3,692 3,678 14 11 3 994 988 6 16 -10 29 19,942 19,221 721 101 620 3,727 3,655 72 8 64 987 978 9 17 -8 1962—June 6 19,801 19,289 512 55 457 3,740 3,733 7 7 962 970 -7 -7 13 19 638 19 245 393 47 346 3 691 3,689 2 1 1 963 959 4 4 20.... 20,038 19,568 470 124 346 3,831 3,807 24 36 -12 982 986 -4 7 -12 27.... 20,062 19,569 493 168 325 3,827 3,813 14 35 -22 993 986 7 6 July 4.... 20,240 19,697 543 120 423 3,907 3,867 40 30 10 1,012 999 14 4 10 11 20 141 19,595 546 55 491 3,764 3,746 19 11 8 980 985 -5 -5 18 20,094 19,532 562 163 399 3,694 3,688 7 40 -33 981 986 -4 11 -15 25.... 20,002 19,427 575 59 516 3,753 3,678 75 75 984 972 12 1 10 Aug. 1 19,838 19,404 434 70 364 3,768 3,753 15 15 1,024 1,016 8 3 5 8.... 19,,815 19,325 490 156 334 3,706 3,704 3 18 -15 1,012 1,010 2 18 -16 15 19,813 19,216 597 130 467 3,667 3,630 37 8 29 997 999 -2 23 -25 22.... 20,010 19,468 542 156 386 3,716 3,704 12 40 -27 1,026 1,022 4 26 -22 29.... 19,914 19,379 535 73 462 3,691 3,677 15 8 7 1,024 1,019 5 10 -5 Sept. 5.... 19,839 19,418 421 94 327 3,697 3,689 8 8 1,024 1,021 3 10 -7 12 19,952 19,427 525 77 448 3,676 3,664 12 i < 1,015 1,009 6 3 19... 20 159 19 643 516 25 491 3 777 3,749 28 28 1,024 1,026 -5 26.... 20,191 19,687 504 141 363 3,751 3,744 8 37 -29 1,031 1,025 6 18 -12 Oct. 3.... 20,174 19,728 446 63 383 3,810 3,785 25 6 19 1,037 1,032 1 4 10 20,333 19,854 479 44 435 3,779 3,764 15 15 1,042 1,040 4 -5 17.... 20,306 19,821 485 71 414 3,721 3,729 -8 U -22 1,035 1,035 -9 24 20,358 19,853 505 56 449 3,772 3,755 18 15 1,041 1,042 -2 31 19,807 19,353 454 79 375 3,735 3,675 61 61 1,014 1,009 Nov. 7 19,559 19,010 549 158 391 3,667 3,655 12 18 1,017 1,012 40 -35 14 19,417 18,846 571 144 427 3,561 3,541 20 9 11 977 974 16 -13 21 19,685 19,078 607 93 514 3,598 3,593 32 -27 1,014 1,008 5 28 19,630 19,080 550 95 45 S 3,658 3,598 « 60 1,014 1,008 6 6 60 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK RESERVES AND RELATED ITEMS 1641 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow- Reserves Borrowings at Free ings at Free T h o e t l a d l Required Excess B F a . n R ks . reserves T h o e t l a d l 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 1,188 1,568 897 671 3 668 1941—Dec 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 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 52 550 1955—Dec 7,924 7,865 60 398 -338 5,716 5,220 497 159 338 1956—Dec 8,078 7,983 96 300 -203 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—Nov 8,241 8,184 57 13 6,917 6,393 524 22 502 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 8,195 8,158 37 28 9 6,836 6,410 425 24 401 M?y!!!'. 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 8,129 49 47 2 7,017 6,531 486 45 441 Sept 8,192 8,166 26 26 7,103 6,665 438 30 408 Oct 8,203 8,175 29 24 5 7,192 6,779 413 31 382 Nov 7,992 7,951 41 60 -19 ^6,972 ^6,459 32 "481 Week ending— 1961—Nov. 1. 8,202 8,153 49 20 29 6,824 6,345 479 29 449 8. 8,196 8,172 24 39 -15 6,803 6,377 427 18 409 15. 8,203 8,168 35 41 -6 6,927 6,388 539 25 513 22. 8,258 8,222 36 49 -13 6,951 6,409 542 14 528 29. 8,290 8,177 112 47 65 6,938 6,410 528 29 499 1962—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 4, 8,433 8,342 91 57 34 6,888 6,488 399 29 369 11. 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 7,061 6,580 481 34 447 Sept. 5. 8,154 8,126 29 20 9 6,964 6,582 382 56 326 12. 8,157 8,120 37 24 13 7,104 6,633 470 29 441 19. 8,211 8,181 30 3 27 7,147 6,687 460 19 441 26. 8,223 8,200 22 62 -39 7,186 6,717 469 24 445 Oct. 3. 8,232 8,206 26 28 -2 7,095 6,705 391 28 363 10. 8,299 8,268 31 11 20 7,213 6,782 431 24 407 17. 8,287 8,267 20 16 4 7,263 6,791 473 32 441 24. 8,281 8,244 37 26 11 7,264 6,812 452 25 427 31. 7,943 7,905 38 30 7,115 6,766 349 44 305 Nov. 7. 7,967 7,938 29 78 -49 6,909 6,404 505 22 483 14. 7,929 7,901 28 69 -41 6,950 6,430 520 50 470 21. 8,006 7,988 19 40 -21 7,067 6,489 578 21 557 28. 8,022 7,969 53 64 -11 6,936 6,504 432 31 401 i 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. Banks: 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

1642 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. 133 Federal Reserve Bank Sees. 13 and 13a i Sec. 10(b)2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Nov. 30 date rate Nov. 30 date rate Nov. 30 date rate Boston Aug. 23, 1960 Aug. 23, 1960 Aug. 23, 1960 f New York... Aug. 12, 1960 Aug. 12, 1960 June 10, 1960 Philadelphia.. Aug. 19, 1960 Aug. 19, 1960 Aug. 19, 1960 Cleveland Aug. 12, 1960 Aug. 12, 1960 Aug. 12, 1960 Richmond... Aug. 12, 1960 Aug. 12, 1960 Aug. 12, 1960 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. Maximum secured by securities of Federal intermediate credit banks maturing 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 Augik:: 19 : 5 : 0 WA Nov. 1 1 9 5 57_Cont. 1933 WA Dec. 2 Mar. 3 4 1953 1958 Apr. 7 3 -3 Jan. 16 Jan. 22 I May 26 24 , Oct. 20 23 Mar. 7 1934 Feb. 5 1954 2 1 1 3 , I2V Feb. 2 15 Apr. 18 , Mar. 16 Apr. 14 May 9 , 16 Aug. 15 , 1935 May 21 Sept. 12 , Jan. 11 23 May 14 1955 Oct. 24 Nov. 7 2 1937 2Vi Aug. 27 -2 May 2 1959 Sept. 4 Aug. 4 Mar. 1 6 6 3 3 1942 n'.'.'.'.'. May 29 3 - 3% O A c p t r . . 1 1 1 5 Sept-1?::::: J S u e n p e t. 1 1 2 1 I* 30 18 Nov. 18 4 1946 23 1960 Apr. 25 1956 June 3 May 10 Apr. 13 10 20 14 1948 Aug. 24 Aug. 12 Jan. 12 -WA Sept. 9 19 1957 Aug. 13 1962 23 Aug23::::: In effect Nov. 30, 1 Preferential rate of % 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; 1961—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 1643 MAXIMUM INTEREST RATES PAYABLE ON TIME AND RESERVE REQUIREMENTS OF MEMBER BANKS SAVINGS DEPOSITS (Per cent of deposits) (Per cent per annum) Net demand deposits 2 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 a c s n i n e t t r k y r v s a e 3 l R b e c a s i n e ty k rv s e C ba o tr n u y k n s - r r e e a c s s n i e e t r r d y v v e e C ba o tr n u y k n s - Savings deposits held for: banks 1 year or more } * 3 Less than 1 year In effect Dec. 31, 1948.. 26 22 16 7% 7% 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 } « 3 i S» 1949— J M un ay e 30 1 , , J 5 u , l , y , 1.. 24 2 2 1 0 1 1 5 4 7 6 6 7 Aug. 1, 11 , IS* 13 5 Othe 6 r 1 t m y im e o a e n r t d o h e r s p - m 1 o s o y i r t e s e a p r ayable in:l } m 3 A A Se u u p g g t . . . 2 1 5 6 1 , 18 !i% 12 5 90 days-6 months 1951—Jan. 11, 16 23 19 13 6 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 5 i For exceptions see Oct. 1962 BULL., p. 1279. July 29, Aug. 1.. 20 18 12 NOTE.—Maximum rates that may be paid by member banks as established by the Board of Governors under provisions of Regulation Q. 1958—Feb. 27, Mar. 1. 8* 17* Under this Regulation the rate payable by a member bank may not in Mar. 20, Apr. 1.. any event exceed the maximum rate payable by State banks or trust com- Apr. 17 panies on like deposits under the laws of the State in which the member Apr. 24 16% bank is located. Effective Feb. 1, 1936, maximum rates that may be 1960—Sept. 1 17% paid by insured nonmember commercial banks, as established by the Nov. 24 12 F.D.I.C., have been the same as those in effect for member banks. Dec. 1 16i/2 Maximum rate payable on all types of time and savings deposits: Nov. 1, 1933-Jan. 31, 1935, 3 per cent; Feb. 1, 1935-Dec. 31, 1935, 2% 1962—Oct. 25, Nov. 1.. 4 4 per cent. In effect Dec. 1, 1962... 16% 12 4 4 MARGIN REQUIREMENTS (Per cent of market value) Present legal requirement: Minimum 10 7 3 3 4 22 14 6 6 Effective date Regulation 1 When two dates are shown, first-of-month or midmonth datesfrecord Oct. 16, July 28, Julv 10, changes at country banks, and other dates (usually Thurs.) record changes 1958 1960 1962 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 Regulation T: due from domestic banks. For extensions of credit by brokers and 3 Authority of the Board of Governors to classify or reclassify cities as 90 70 50 central reserve cities was terminated effective July 28, 1962. For short sales 90 70 50 4 Before July 28, 1959, the minimum and maximum legal requirements Regulation U: for central reserve city banks were 13 and 26 per cent, respectively, and 90 70 50 the maximum for reserve city banks was 20 per cent. NOTE.—All required reserves were held on deposit with Federal Reserve NOTE.—Regulations T and U, prescribed in accordance with Securities Banks, June 21, 1917, until late 1959. Since then, member banks have Exchange Act of 1934, limit the amount of credit that may be extended on also been allowed to count vault cash as reserves, as follows: Country a security by prescribing a maximum loan value, which is a specified banks—in excess of 4 and 2% per cent of net demand deposits effective percentage of its market value at the time of extension: margin require- Dec. 1, 1959 and Aug. 25, 1960, respectively. Central reserve city and ments are the difference between the market value (100%) and the maxi- reserve city banks—in excess of 2 and 1 per cent effective Dec. 3, 1959 mum loan value. and Sept. 1, 1960, respectively. Effective Nov. 24, 1960, all vault cash. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item me A m l b l er New City C b o a u n n k t s ry Item me A m l b l er New City C b o a u n n k t s ry banks York of Other banks York of Other City Chicago City Chicago Four weeks ending Oct. 17, 1962 Four weeks ending Nov. 14, 1962 Gross demand: Gross demand: Total 129,833 25,015 6,353 49,867 48,598 Total 129,611 24,925 6,326 49,542 48,818 Interbank 14,487 4,162 1,299 7,304 1,721 Interbank 14,598 4,171 1,283 7,360 1,784 U. S. Govt 7,265 1,549 449 2,774 2,493 U.S. Govt 5,202 1,091 307 1,845 1,959 Other 108,082 19,303 4,605 39,790 44,384 Other 109,811 19,663 4,736 40,337 45,075 Net demand l 107,650 20,171 5,400 40,841 41,238 Net demand i 107,403 19,924 5,367 40,699 41,413 Time 77,321 8,547 2,840 29,932 36,002 Time 78,054 8,678 2,909 30,163 36,304 Demand balances due Demand balances due from domestic banks. . 7,404 118 96 2,038 5,152 from domestic banks. 7,334 118 88 1,953 5,175 Currency and coin 2,806 223 38 866 1,679 Currency and coin 2,832 228 38 870 1,696 Balances with F. R. Balances with F. R. Banks 17,445 3,542 998 7,394 5,511 Banks 16,953 3,456 974 7,160 5,363 Total reserves held 20,251 3,765 1,036 8,260 7,190 Total reserves held 19,785 3,684 1,012 8,030 7,059 Required 19,773 3,756 1,033 8,235 6,749 Required 19,265 3,656 1,009 7,997 6,603 Excess 478 9 3 25 441 Excess 520 28 3 33 456 1 Demand deposits subject to reserve requirements are gross demand NOTE.—Averages of daily figures. Balances with F. R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1644 FEDERAL RESERVE BANKS CONSOLIDATED STATEMENT OF CONDITION (In millions of dollars) Wednesday End of month Item 1962 1962 1961 Nov. 28 Nov. 21 Nov. 14 Nov. 7 Oct. 31 Nov. Oct. Nov. Assets 14,465 14,470 14,453 14,481 14,481 14,465 14,481 15,584 Redemption fund for F. R. notes 1,241 1,238 1,233 1,208 1,211 1,241 1,211 1,126 Total gold certificate reserves 15,706 15,708 15,686 15,689 15,692 15,706 15,692 16,710 Cash 317 323 333 351 366 344 366 356 Discounts and advances: Member bank borrowings 102 127 96 567 207 70 207 37 Other 1 12 12 12 12 1 12 2 Acceptances—Bought outright 36 35 34 34 34 38 34 43 Held under repurchase agreement U. S. Govt. securities: Bought outright: Bills 2,241 2,323 2,389 2,393 2,378 2,244 2,378 3,742 Certificates—Special Other 13,185 13,185 9,527 9,527 9,542 13,185 9,542 1,692 Notes 10,659 10,626 13,924 13,924 13,902 10,714 13,902 19,945 3,974 3,933 4,283 4,283 4,131 4,057 4,131 3,831 Total bought outright 30,059 30,067 30,123 30,127 29,953 30,200 29,953 29,210 Held under repurchase agreement 124 197 248 254 248 Total U. S. Govt. securities 30,059 30,191 30,123 30,324 30,201 30,454 30,201 29,210 Total loans and securities 30,198 30,365 30,265 30,937 30,454 30,563 30,454 29,292 Cash items in process of collection 5,631 6,176 5,723 4,783 5,064 5,194 5,064 4,690 105 105 105 105 105 105 105 110 Other assets: Denominated in foreign currencies 204 204 214 215 214 154 214 All other 197 177 431 407 385 202 385 186 52,358 53,058 52,757 52,487 52,280 52,268 52,280 51,344 Liabilities F. R. notes 29,692 29,744 29,553 29,364 29,031 29,679 29,031 28,442 Deposits: Member bank reserves 16,327 16,884 16,415 16,696 16,821 16,648 16,821 17,200 552 310 467 325 513 585 513 489 Foreign 209 213 233 194 182 203 182 198 Other 263 262 325 319 309 305 309 249 Total deposits 17,351 17,669 17,440 17,534 17,825 17,741 17,825 18,136 Deferred availability cash items 3,783 4,132 4,271 4,043 3,893 3,309 3,893 3,326 Other liabilities and accrued dividends 78 76 74 76 75 80 75 79 Total liabilities 50,904 51,621 51,338 51,017 50,824 50,809 50,824 49,983 Capital Accounts 464 464 464 464 463 464 463 434 Surplus 888 888 888 888 888 888 888 817 Other capital accounts 102 85 67 118 105 107 105 110 Total liabilities and capital accounts 52,358 53,058 52,757 52,487 52,280 52,268 52,280 51,344 Contingent liability on acceptances purchased for foreign correspondents 88 88 83 67 69 88 69 110 U. S. Govt. securities held in custody for foreign account . 7,139 7,106 7,087 7,060 7,137 7,132 7,137 5,793 Federal Reserve Notjs—Federal Reserve Agents' Accounts F R notes outstanding (issued to Bank).. 31,486 31,298 31,134 30,920 30,815 31,521 30,815 30,041 Collateral held against notes outstanding: Gold certificate account 7,677 7,735 7,730 7,730 7,810 7,697 7,810 8,545 54 24 27 84 20 28 20 27 U. S. Govt. securities 24,709 24,524 24,179 24,179 24,159 24,909 24,159 22,475 Total collateral 32,440 32,283 31,936 31,993 31,989 32,634 31,989 31,047 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS 1645 STATEMENT OF CONDITION OF EACH BANK ON NOVEMBER 30, 1962 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i l i l - a a- C l l a e n v d e- m Ri o c n h d - At t l a an- c C a h g i- o Lo S u 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 14.465 726 3,561 111 1,176 1,074 839 2,399 625 320 667 603 1,698 Redemption fund for F. R. notes .... 1,241 69 295 14 110 96 72 222 51 28 52 38 134 Total gold certificate reserves 15,706 795 3,856 851 1,286 1,170 911 2,621 676 348 719 641 1,832 F. R. notes of other Banks 413 29 100 44 19 24 44 29 14 32 13 18 47 Other cash 344 25 55 23 27 25 28 62 17 11 11 12 48 Discounts and advances: Secured by U. S. Govt. securities... 68 3 2 1 1 2 14 11 10 1 17 6 Other 3 2 1 * * Acceptances: Bought outright 38 38 Held under repurchase agreement.. U. S. Govt. securities: Bought outright 30,200 1,533 7,458 1,664 2,538 1,989 1,650 5,113 1,206 622 1,317 1,228 3,882 Held under repurchase agreement.. 254 254 Total loans and securities 30,563 1,538 7,753 1,665 2,539 1,991 1,664 5,124 1,216 623 1,334 1,234 3,882 Cash items in process of collection... 6,453 492 1,326 349 542 479 424 1,074 260 190 316 271 730 Bank premises . . .. 105 3 8 3 7 5 14 24 6 4 7 13 11 Other assets: Denominated in foreign currencies. 154 7 142 9 14 7 8 21 5 4 7 9 21 All other 202 10 49 12 17 13 12 34 8 5 8 8 26 Total assets 53,940 2,899 13,189 2,956 4,451 3,714 3,105 8,989 2,202 1,217 2,415 2,206 6,597 Liabilities F. R. notes 30,092 1,768 7,036 1,842 2,631 2,493 1,755 5,469 1,273 566 1,210 886 3,163 Deposits: Member bank reserves 16,648 657 4,574 724 1,239 718 870 2,429 620 435 849 966 2,567 U. S. Treasurer—General account.. 585 33 69 22 54 79 34 51 43 32 49 34 85 Foreign 203 9 2 58 11 19 9 11 28 7 5 8 11 27 Other 305 251 1 1 2 1 2 * 1 1 44 Total deposits 17,741 700 4,952 758 1,313 808 916 2,510 670 472 907 1,012 2,723 Deferred availability cash items 4,568 357 787 269 366 338 351 789 206 145 232 222 506 Other liabilities and accrued dividends. 80 4 21 4 7 c 4 14 3 1 4 10 Total liabilities 52,481 2,829 12,796 2,873 4,317 3,644 3,026 8,782 2,152 1,184 2,353 2,123 6,402 Capital Accounts Capital paid in 464 22 125 26 43 22 25 65 16 11 20 27 62 Surplus 888 42 243 51 83 40 47 124 31 20 37 50 120 Other capital accounts 107 6 25 6 8 8 18 3 1 6 13 Total liabilities and capital accounts.. 53.940 2,899 13,189 2,956 4,451 3,714 3,105 8,989 2,202 1,217 2,415 2,20 6,597 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent): Nov. 30, 1962 32.8 32.2 32.2 32.7 32.6 35.4 34.1 32.8 34.8 33.5 34.0 33.8 31.1 Oct. 31 1962 33.2 35.4 33.2 29.8 31.4 35.7 33.9 33.7 35.3 33.4 31.8 32.1 32.5 Nov. 30, 1961 35.6 34.6 35.6 34.9 35.5 37.5 33.0 34.3 35.6 36.0 37.4 35.6 37.5 Contingent liability on acceptances purchased for foreign correspondents 88 A 3 24 c 8 4 < 12 < 12 Federal Reserve Notes—Federal Reserve Agent's Accounts F. R. notes outstanding (issued to Bank) 31,521 1,834 7,424 1,916 2,801 2,611 1,834 5,607 1,345 659 1,244 941 3,305 Collateral held against notes outstanding : Gold certificate account 7.697 480 1,600 465 720 762 485 1,400 350 130 290 215 800 Eligible paper 28 1 10 17 U. S. Govt. securities 24,909 1,415 6,000 1,500 2,200 1,859 1,400 4,500 1,030 '550 1,000 755 2,700 Total collateral 32,634 1,895 7,€C0 1,966 2,920 2,621 1,885 5,900 1,390 680 1,307 970 3,500 1 After deducting $112 million participations of other F. R. Banks. 3 After deducting $64 million participations of other F. R. Banks. 2 After deducting $145 million participations of other F. R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1646 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 Nov. 28 Nov. 21 Nov. 14 Nov. 7 Oct. 31 Nov. Oct. Nov. Discounts and advances—Total. 103 139 108 579 219 71 219 39 Within 15 days 98 128 104 527 203 66 203 34 16 days to 90 days 5 11 4 52 15 5 15 5 91 days to 1 year 1 1 Acceptances—Total.. 36 35 34 34 34 38 34 43 Within 15 days.... 11 8 6 7 10 7 8 16 days to 90 days. 25 24 26 27 28 27 35 U. S. Government securities—Total. 30,059 30,191 30,123 30,324 30,201 30,454 30,201 29,210 Within 15 days 234 475 3,662 3,753 3,922 376 3,922 197 16 days to 90 days 5,073 5,041 1,558 1,656 1,491 5,195 1,491 6,746 91 days to 1 year 11,961 11,957 12,013 12,025 12,077 11,957 12,077 10,686 Over 1 year to 5 years 10,646 10,627 10,283 10,283 10,183 10,734 10,183 9,091 Over 5 years to 10 years 1,929 1,884 2,400 2,400 2,325 1,967 2,325 2,223 Over 10 years 216 207 207 207 203 225 203 267 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 B fr e a lg n i c a s n 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 er a m 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 1 Mar. 84 50 32 1 Apr.. 84 50 32 1 May. 134 50 50 32 June, 439 50 50 250 50 27 11 July. 418 50 50 250 50 16 Aug. 317 40 250 1 16 5 BANK DEBITS AND DEPOSIT TURNOVER Debits to demand deposit accounts * Annual rate of turnover (In billions of dollars) of demand deposits l Period re c p e A o n r t l e t l i r n s g New Yo L r e k ading cent 6 er s others 2 3 r c e 3 e p 7 n o t o e rt r t i h s n e 3 g r New Y L o e r a k ding cen 6 t e o rs thers 2 3 r c e 3 e p 7 n o U c) " 5 t r t h i s n e 3 g r 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 2,356.8 888.5 489.3 979.0 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—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 77.3 76.1 42.1 41.2 28.6 28.5 Aug .. . 281.1 115.8 110.8 57.4 57.5 110.7 112.8 78.8 74.3 41.1 39.9 28.3 27.9 SeDt 263.3 120.9 109.7 58.1 53.4 107.6 100.1 82.2 81.1 41.8 41.2 27.3 27.3 Oct 308.7 124.5 127.5 62.3 64.1 112.4 117.2 82.9 82.3 44.6 43.9 28.5 28.5 Nov .. . 288.2 122.2 116.5 61.1 59.4 113.1 112.3 80.7 80.4 *>43.5 P42.9 ^28.5 P28.9 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 1647 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir - tion1 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 ,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 ,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 ,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 ,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—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 3 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 Aug. 33,932 24,364 2,687 ,502 93 2,210 6,832 11,040 9,568 2,870 6,163 237 291 3 5 Sept. 33,893 24,305 2,701 ,518 93 2,211 6,801 10,980 9,588 2,864 6,188 237 291 3 5 Oct.. 34,109 24,440 2,727 ,542 94 2,228 6,819 11,031 9,669 2,882 6,254 237 289 3 5 i 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 circulation l Held by Kind of currency T s O o ta t c 1 a n t 9 l . d 6 o i 3 2 n u 1 g t , - A g s a o s g l s i d a l e v i c n a e u s n r r t d ity Tr c e a a s s h ury B F F a a . n o n R d k r s . A B F a g a . n e n R d n k . t s s Oc 1 t 9 . 6 3 2 1, Se 1 p 9 t. 6 3 2 0, Oc 1 t 9 . 6 3 1 1, certificates Agents Gold 15,978 (15,692) 2 286 Gold certificates (15,692) 3 12,875 2,816 F. R. notes 30,814 74 1,782 28,958 28,774 27,703 Treasury currency—Total. 5,554 (2,221) 39 364 5,151 5,119 5,133 Standard silver dollars . .... 487 76 28 11 373 370 339 Silver bullion 2J46 2,146 Silver certificates . . (2.221) 289 1,933 1,928 2,046 Subsidiary silver coin } 748 5 36 1,707 1,689 1,590 Minor coin 652 1 4 647 642 603 United States notes. 347 4 24 318 316 315 Tn process of retirement4. 173 * 173 174 239 Total—Oct. 31, 1962. .. 5 52,346 (17,913) 399 12,875 4,962 34,109 Sept. 30, 1962. ... 5 52.228 (18,037) 390 12,980 4,964 33,893 Oct. 31, 1961 . . ? 52.340 (19,389) 407 14,212 4,886 "32,S36" 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 shown in table on p. 1639. 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 * Redeemable from the general fund of the Treasury. Beginning with security features, see the Circulation Statement or the Aug. 1961 BULL., Aug. 1962, excludes $58 million which was determined, pursuant to the p. 936. Old Series Currency Adjustment Act, to have been destroyed or lost. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1648 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. Currency Demand ad- Currency Demand ad- demand Total component deposit justed i Total component deposit justed ! deposits i component component 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—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 May. 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 91.8 144.3 30.3 114 0 92 2 7.1 145.1 30.2 114.9 92.5 143.8 30.3 113.5 93.0 6.8 Sept., 145.3 30.2 115.1 93.4 145.0 30.3 114.6 93.8 7.2 Oct... 146.1 30.3 115.8 94.6 146.5 30.4 116.1 94 9 7.3 NOV.P 146.9 30.5 116.4 96.0 148.2 30.8 117.5 95.4 6.0 Half month 1962—Aug. 1 145.6 30.2 115.4 92.2 145.0 30.4 114.6 92.7 5.4 2 144.8 30.2 114.6 92.7 142.6 30.2 112.4 93.2 8.1 Sept. 1 145.4 30.2 115.2 93.1 145.2 30.5 114.7 93.6 6.6 2 145.3 30.2 115.1 93.6 144.7 30.2 114 6 94 1 7.8 Oct. 1 146.1 30.3 115.8 94.3 145.7 30.6 115 2 94 7 8.2 2 146.2 30.3 115.9 95.0 C147.2 30.3 117.0 95.2 6.5 Nov. 146.7 30.4 116.3 95.6 148.4 30.7 117.7 95.5 5.4 2? 147.1 30.5 116.6 96.4 148.0 30.8 117.2 95.3 6.6 Not seasonally adjusted Not seasonally adjusted Money supply Money supply Week Time U.S. Week Time U.S. ending— Total C c u o n r m r e e 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 ep s a t o d e s - d i t * s d d e G e p m o o s v a i n t t . s d * ending— Total C c u o n r m r e e 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 s p a t d o e s - d i t l s d d e G e p m o o s a v i n t t . s d i 1961—Aug. 2 142.4 29.0 113.4 79.9 6.0 1962—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 8.4 30 140.9 29.0 111.9 80.4 5.6 29 142.7 30.1 112.6 93.3 7.9 Sept. 6 142.0 29.4 112.6 80.6 5.4 Sept. 5 143.9 30.4 113.5 93.5 7.8 13 143.6 29.4 114.2 80.8 3.6 12 145.5 30.5 115.0 93.6 6.1 20 144.6 29.3 115.3 80.9 4.4 19 146.0 30.3 115.7 93.8 6.3 27 142.3 29.1 113.3 81.0 5.9 26 144.1 30.1 114.0 94.1 8.1 Oct. 4 142.6 29.2 113.3 81.3 8.1 Oct. 3 144.9 30.2 114.7 94.3 8.2 11 143.6 29.6 113.9 81.5 6.2 10 145.4 30.6 114.8 94.6 8.9 18 145.0 29.5 115.5 81.5 6.9 17 146.8 30.5 116.3 94.9 7.4 25 145.0 29.3 115.7 81.6 6.2 24 146.7 30.4 116.3 95.1 6.9 31 147.7 30.2 117.5 95.3 5.8 Nov. 1 145.8 29.2 116.6 81.7 5.6 8 146.0 29.7 116.3 81.7 5.8 Nov. 7 148.2 30.7 117.5 95.5 6.1 15 147.1 29.7 117.4 81.7 4.8 14 148.7 30.8 117.9 95.5 4.7 22 145.9 29.8 116.1 81.3 6.5 21 147.9 30.9 117.1 95.1 6.7 29 146.0 29.8 116.2 81.4 6.1 28 147.8 30.7 117.1 95.3 6.5 Dec. 6 147.2 30.0 117.2 81.6 5.4 Dec. 5P 149.1 30.9 118.2 95.8 6.3 13 148.8 30.2 118.7 81.7 3.5 12 20 150.7 30.2 120.5 81.7 4.1 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 1649 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and c£ipital Bank credit Total assets, Tr u e r a y s- U. S. Government securities l T ia o b t i a l l - Total Capital Gold s r t c o e a u n u n r c t d - - y - Total Lo n a e n t s, m C e o r m cia - l ..— Fe . deral . _ O s ri e t t c h ie u e s - r ca i a p t n i i e t d s al, c d u e r p r o en si c t y s c m o a u i c s n - c t . s, ing Total and Reserve Other net savings Banks banks 1929—June 29 4,037 2 019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30. 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31 22,137 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—Dec. 31 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947—Dec. 31. 22 754 4 562 160 832 43 023 107 086 81 199 22,559 3 128 10,723 188,148 175,348 12,800 1950—Dec. 30 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,384 14,624 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 1960—Dec. 31 17,767 5.398 266,782 144,704 95,461 67.242 27,384 835 26,617 289,947 263,165 26,783 1961—June 30 17,550 5,437 269,828 145,784 96,121 68,104 27,253 764 27,923 292,816 265,604 27,212 1961—Nov. 29 17,000 5,600 280,000 149,000 101,900 72,400 28,800 800 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 5.600 283,000 151,500 101,400 72,300 28,400 700 30,200 305,400 276,400 29,000 Mar. 28... 16,600 5,600 284,800 153,300 100,400 71,000 28,800 700 31,100 307,000 278,100 28,900 Apr. 25 16,500 5,600 287,400 154,900 100,600 71,000 29,000 700 31,800 309,400 280,700 28,700 May 30. .. 16 400 5 600 288 900 156 200 100 900 70,700 29 600 700 31,800 310,900 281.600 29,300 June 30 16,435 5,598 293,212 159,463 101,052 70,722 29,663 667 32,697 315,245 286,968 28,275 fuJy 25 16 200 5 600 291 700 158 200 100 300 70 500 29 200 700 33 200 313 500 284,800 28,600 Aug. 29'' . .. 16 100 5 600 293 900 159 400 101 000 70,200 30 100 700 33,600 315,600 285,300 30,300 Sept 26 •'» 16 100 5 600 297 100 162 800 100 300 70 600 29 100 700 33 900 318 700 289 200 29,500 Oct. 11 r" 16 000 5 600 300 700 164 200 102 200 71 600 30 000 700 34 300 322 300 291,900 30,300 Nov. 28''. 16.000 5,600 301,500 164.800 102,200 71,500 30,100 700 34.500 323.000 292,800 30,300 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted l Not seasonally adjusted Time 3 U. S Government e For- At Cur- De- Cur- De- Postal eign, Treas- comrency mand rency mand Com- Mutual Savings net 5 ury mer- At Total outside deposits Total outside deposits Total mercial savings Svs- cash cial F.R. banks ad- banks ad- banks banks 4 tem hold- and Banks justed 2 justed 2 ings savings banks 1929—June 29 26,179 3,639 22,540 28,611 19,557 8,905 149 365 204 381 36 1933—June 30 ... 19 172 4 761 14 411 21 656 10 849 9 6'M 1 186 50 264 852 35 1939—pec. 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. 11 102 341 26 490 75 851 48 452 30 135 15 385 2 932 2 141 2 287 24 608 977 1947—Dec. 3!.... 110,500 26,100 84.400 113,597 26,476 87J21 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 I960—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—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. 25 145,800 29,200 116,600 145,800 28,900 116,900 128,400 88,600 39,200 600 1,300 400 4,200 600 May 30 143,500 29,200 114,300 141,900 29,300 112,600 130,000 90,100 39,300 600 1,300 400 7,500 600 June 30 143.300 29,300 114,000 142,522 30,433 112,089 132,106 91.734 39,791 581 1,508 379 9,841 612 July 25... . 144,300 29,400 114.900 144,200 29,500 114.700 132.600 92,000 40,000 600 1,300 400 5,800 600 Aug. 29''... 142,900 29.300 113,600 141,600 29,500 112,100 133,800 93,100 40.200 600 1,200 400 7,700 500 Sept. 26 r».. 144,400 29,300 115,100 143,500 29,400 114.100 135,200 94,000 40,600 600 1,300 400 8,300 500 Oct. 31^\. 145,100 29,400 115,700 146,800 29,700 117,100 136,400 95.000 40,800 600 1,200 400 6,600 500 Nov. 28*... 145,700 29,600 116,100 147,600 30,100 117,500 136,800 95,300 40,900 500 1,200 400 6,200 600 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, For description of series and back data see Feb. 1960 BULL., pp. 133-36. Postal Savings System, and Treasury currency funds (the gold account, 2 Other than interbank and U. S. Govt., less cash items in process of Treasury currency account, and Exchange Stabilization Fund). collection. For description of statement and back figures (except for seasonally 3 Other than interbank, Treasurer's open account, and those of Postal adjusted money supply), see Jan. 1948 BULL., pp. 24-43, except that Savings System in banks. stock of F. R. Banks held by member banks is included in other securities 4 Before June 30, 1947, includes a small amount of demand deposits. and in capital and misc. accounts, net, and balances of the PSS and the Beginning with June 1961 includes amounts reported by insured mutual ESF with the Treasury are netted against capital and misc. accounts, net. savings banks as demand deposits, previously reported as time deposits Except on call dates, figures are partly estimated and are rounded to or other liabilities. nearest $100 million. 5 Reclassification of deposits of foreign central banks in May 1961 reduced this item by $1,900 million ($1,500 million to time and $400 million to demand deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1650 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 G U o S .S v e . t c . urit O ie t s her Cash c c b T o a i a l a l u o p i i n c a t n i t 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 im kl e U.S D . ema O O n t d t h h e e r r Time 3 r B i o n o w g r s - - c c T a o o p u t i n a ta t l s l b N a b u o n e m f r ks - Govt. All banks: 1941—Dec. 31.. 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31.. 140,227 30,362101,288 8,577 35,415177,332 165,612 14,065 105,935 45,613 22710,54214,553 1947—Dec. 31 4. 134,924 43,002 81,199 10,723 38,388175,091 161,86512,793 240 1,346 94,381 53,105 6611,94814,714 1960—Dec. 31.. 238,623144,764 67,242 26 617 53;022 298,126 266,19617,080 1,800 5,949133,408107,959 167 24,53913,986 1961—June 30.. 242,192146,164 68,104 27 923 46,457 295,567 262.54713,633 462 6,368125,219116,865 . 5,40513,977 Nov. 29.. 252,260150,740 72,420 29 100 46,970 306,000 270,12014,920 470 5,460129,790119,480 1,830 26,03013,947 Dec. 30.. 256,700154,318 72,715 29,667 57,368321,394 287,17617,914 482 5,952141,979120,848 482 261;,227 13,946 1962—Mar. 28.. 257,520155,460 70,960 31.100 45 560 310,230 273,720 13,750 510 6 260125,'980127,220 2,420 26,470 13,930 Apr. 25.. 259,680156,920 70,950 31!810 46 190 312940 276,44013,730 520 3,920130,180128,090 2,360 26,,56013,920 May 30.. 260,500158,050 70,680 31;770 46J210 313720 276i,97013,200 520 7 170 126; 370129,710 2,070 261,,78013,926 June 30.. 263,542160,123 70,722 32;697 49,612320638 285,18614,400 526 9; 559128,:845131,855 796 27,,i03613,934 July 25.. 263,570159,920 70,460 33;190 45440 316200 279,68013,830 520 530 127510132,290 1,930 26»,,88O13,931 Aug. 29* . 265,700161,980 70,160 33;560 45480 318 280 2805,310 13,840 510 450 124960133,550 2,750 27,,10013,932 Sept. 26 r* 269,080164,640 70,560 33;880 47 480 323770 286',170 14,530 510 090 128 160134.880 2,610 27..25013,933 Oct. 31 rP 272,380 116666,480 71,600 34.300 50560 330280 292:,25015,260 510 330 134030136,120 2,780 27r,,450 13,925 Nov. 28*. 273,160167,120 71,530 34;510 48,340328,800 290,460 15,190 520 5,990132,290 136,470 2,500 27,,61013.937 Commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31.. 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,95014.011 1947—Dec. 31 4. 116,284 38,057 69,221 9,006 37,502 155,377 144,10312,792 240 1,343 94,367 35,360 6510,059 14,181 1960—Dec. 31.. 199,509117,642 61,003 20,864 52,150 257,552 229,84317,079 1,799 5,945133,379 71,641 163 20,98613,472 1961—June 30.. 201,848117,953 61,824 22,071 45,595 253,749 224,99713,633 461 6,362125,161 79,380 443 21,74513,463 Nov. 29.. 211,250 112211,670 66,210 23,370 46,130 263,510 232,07014,920 470 5,460129,730 81,490 1,830 22,29013,433 Dec. 30.. 215,441124,925 66,578 23,937 56,432 278,561 248,68917,914 481 5,946 141,920 82,429 471 22,45913,432 1962—Mar. 28.. 215,180125,380 64,440 25,360 44,680 266,340 234,43013,750 510 260125,920 87,990 2,420 22,63013,417 Apr. 25. . 217,390126,610 64,650 26,130 45,390 269,180 237,20013,730 520 ,920130,120 88,910 2,360 , 13,407 J M u a n y e 3 3 0 0 .. .. 2 2 2 1 0 7 , , 6 9 7 6 0 0 1 1 2 2 9 7 , , 1 4 9 8 3 0 6 64 4 , , 4 4 4 0 3 0 2 2 6 7 , , 0 0 8 3 0 4 4 4 5 8 , ,7 3 2 9 8 0 2 2 6 7 9 6 , , 6 2 9 2 0 0 2 2 4 3 5 7 , , 2 5 9 8 8 0 1 1 4 3 , , 4 20 0 0 0 5 5 2 2 5 0 915 1 5 7 4 0 1 1 2 2 8 6 , , 7 3 8 1 5 0 9 9 2 0 , , 0 3 3 8 4 0 2, 7 0 8 7 6 0 2 2 3 2 ,, ,, 1 9 8 3 3 013, , 414 July 25.. 220,410128,730 64,180 27,500 44,600 271,520 239,64013,830 520 530 127,450 92,310 1,930 23i,,02013,422 Aug. 29*. 222,140130,430 63,850 27,860 44,670 273,230 240,05013,840 510 450 124,900 93,350 2,750 23,,20013,419 Sept. 26*. 225,270132,840 64,250 28,180 46,630 278,400 245,48014,530 510 090 128,100 94,250 2,610 23,,33013,421 Oct. 31*. 228,460134,400 65,450 28,610 49,690 284,790 251,37015,260 510 ,330133,970 95,300 2,780 23,560 1133^,441174 Nov. 28*. 229,060134,840 65,400 28,820 47,450 283,110 249,48015,190 520 i,990132,230 95,550 2,500 23,,68013.426 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 29,845138,304129,67013,576 64 222,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31.. 97,846 32,628 57,914 7,304 32,845132,060122,52812,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31.. 165,619 99,933 49,10616,579 45^56 221166,577193,02916,436 ,639 5,287112,393 57,272 130 17,398 6,174 1961—June 30.. 168,049 99,992 50,36117,696 40084 213,719189,22613,077 276 5,731 105,568 64,574 38218,027 6,141 Nov. 29. . 175,827103,129 53,87418,824 40394 221,715194,66614,294 288 4,793108,894 66,397 1,79518,478 6,116 Dec. 30.. 179,599106,232 54,05819,308 49579 235,112 ~20 ,963017,195 303 5,381 119,595 67,157 438 18,638 6,113 1962—Mar. 28.. 179,254106,600 52,036 20.618 39091224,114 196,59513,209 335 ,631105,552 71,868 2,380 18,785 6,085 Apr. 25.. 180,872107,424 52,103 2i;345 39662 226; 198,67413,178 340 506 109,048 72,602 2,31918,877 6,074 J M u a n y e 3 3 0 0 . . . . , 1 1 8 8 1 3 , , 1 4 8 9 0 7 1 1 0 0 7 9 , , 9 2 8 1 0 2 5 5 1 2 , , 9 0 1 6 3 5 2 2 i 2 ; ; 2 21 8 9 7 4 3 2 9 1 7 8 0 5 2 3 2 22 3 6 2 : ;3592 1 0 9 6 8 , , 0 9 5 7 7 81 1 2 3 , , 6 7 8 9 9 6 3 35 4 1 5 6 8 , , ,4 7 46 3 633 4 1 1 0 05 8 , , 6 0 2 1 9 4 7 7 3 5 , , 8 1 5 6 2 2 2, 7 0 3 0 5 2 1 1 1 9 99 , , 1 0 7 1 9 5 6 6 , , 0 0 7 7 3 0 July 25.. 183,008108,767 51,612 22;629 39 227,806 200,48213,241 347 4,952 106,611 75,331 1,87019,060 6,062 Aug. 29.. 184,398110,331 51,149 22;918 39; 107 229^231200,667 13,232 338 104,280 76,122 2,68219,212 6,060 Sept. 26*. 186,641112,240 51,27123130 40 .279204,99513,878 337 106,702 76,794 2,58519,281 6,053 Oct. 31*. 189,420113,711 52,238 2347143,686239,,009 210, 14,577 339 112,045 77,667 2,72219,466 6,054 Nov. 28?. 189,619113,865 52,097 23657 41,564 237,050 208, 14,502 343 110,181 77,932 2,42319,546 6.055 I 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. 31 *. 18,641 4,944 11,978 1,718 886 19,714 17,763 1 17,745 1,889 533 1960—Dec. 31.. 39,114 27,122 6,239 5,752 872 40,574 36,353 1 36,318 3,553 514 1961—June 30.. 40.344 28,211 6,281 5,852 862 41,818 37,551 1 37,487 3,660 514 Nov. 29. . 41,010 29,070 6,210 5,730 840 42,490 38,050 (6) 37,990 3,740 514 Dec. 30.. 41,259 29,393 6,136 5,730 936 42,833 38,487 I 38,420 3,768 514 1962—Mar. 28.. 42,340 30,080 6,520 5,740 43,890 39,290 39,230 3,840 513 Apr. 25.. 42,290 30,310 6,300 5,680 800 43,760 39,240 39,180 3,810 513 May 30.. 42,540 30,570 6,280 820 44,030 39,390 39,330 3,850 512 June 30.. 42,872 30,930 6,278 884 44,418 39,888 39,821 10 3,853 512 July 25. . 43,160 31,190 6,280 840 44,680 40,040 39,980 3,860 511 Aug. 29*. 43,560 31,550 6,310 810 45,050 40,260 40,200 3,9O0| 511 Oct. 31r* 43,920 32,080 6,150 870 45,490 40,880 (6) 40,820 ' ( «)3,890! 511 Nov. 28*. 44,100 32,280 6,130 5,690 890 45,690 40,980 (6 40,920 3,930s 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 1651 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 G U S o .S v e . c t. urit O ie t s her a C ss a e s t h si c c b T o a i a l a l u o p i n i c a t n t i - d i - t a t e 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.S D . ema O O n t t d h h e e r r Time r B i o n o w g r s - - c T a a o p c t i - a ta l l b N a b u o n e f m r ks - Govt. Reserve city member banks: New York City:5 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 Nov. 29 29,066 18,398 7,908 2,760 8,044 39,058 31,847 4,042 176 831 19,693 7,105 602 3,702 14 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—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 30 30,396 19,224 7,659 3,513 9,552 41,910 35,039 4,517 210 1,918 20,296 8,098 381 3,761 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: 29,672 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 Sept. 26* 30,497 20,234 6,421 3,842 8,488 40,868 33,033 3,990 208 1,459 19,054 8,322 1,384 3,809 16 Oct. 31* 31,196 20,693 6,684 3,819 10,491 43,634 35,766 4,350 205 1,287 21,501 8,423 1,333 3,853 16 Nov. 28* 30,371 20,119 6,346 3,906 8,863 41,204 33,746 4,298 211 910 19,606 8,721 935 3,849 16 City of Chicago:5 1941—Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 ,035 127 2,419 476 288 13 1945—Dec. 31 ,931 1,333 4,213 385 1,489 7,459 7,046 ,312 1,552 3,462 719 377 12 1947—Dec. 31 1,801 2,890 397 1,739 6,866 6,402 ,217 72 4,201 913 426 14 1960—Dec. 31 7,050 4,485 1,882 683 2,046 9,219 8,197 ,380 327 4,899 1,530 35 822 10 1961—June 30 7,020 4,249 2,058 714 1,899 9,068 8,037 ,125 380 4,602 1,920 10 848 10 Nov. 29 7,329 4,341 2,111 877 2,019 9,502 8,284 ,271 251 4,790 1,957 137 866 9 Dec. 30 7,606 4,626 2,041 940 2,603 10,383 9,283 ,624 369 5,268 2,008 35 870 9 1962—Mar. 28 7,652 4,503 2,183 966 1,788 9,613 8,208 ,194 323 4,383 2,292 329 870 9 Apr. 25 7,504 4,557 1,880 1,067 1,912 9,592 8,421 ,177 158 4,676 2,392 73 877 9 May 30 7,631 4,592 1,926 1,113 1,928 9,720 8,524 ,118 356 4,548 2,483 75 884 9 June 30 7,937 4,672 1,936 1,329 1,893 10,009 8,810 ,128 546 4,520 2,598 34 894 9 July 25 7,765 4,510 1,907 1,348 1,860 9,795 8,584 ,203 256 4,489 2,619! 75 890 9 Aug. 29 (old basis^ 7,883 4,570 1,923 1,390 1,801 9,852 8,580 ,193 361 4,353 2,656 117 895 9 Aug. 29 (new basis; 8,201 4,761 2,001 1,439 1,870 10,247 8,934 ,201 384 4,554 2,778 122 925 12 Sept. 26* 8,293 4,879 2,028 1,386 1,997 10,469 9,087 ,243 440 4,569 2,820 163 930 12 Oct. 31* 8,552 4,961 2,175 1,416 2,073 10,815 9,380 ,281 366 4,826 2,892 267 944 12 Nov. 28* 8,456 5,029 2,025 1,402 2,102 10,738 9,450 ,326 279 4,879 2,951 66 941 12 Other reserve city:6 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 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 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 75,067 7,989 326 1,960 42,,226677 22,525 73 6,423 217 1961—June 30 63,670 39,747 18,053 5,870 16,529 82,141 73,557 6,335 62 2,241 39,72125,199 131 6,684 205 Nov. 29 67,038 41,259 19,509 6,27016,779 85,805 75,950 7,404 60 1,875 40,694 2"5,917 905 6,867 206 Dec. 30 68,565 42,379 19,748 6,438 2"0,216 90,815 81,883 8,350 62 2,103 44,986 26,381 81 6,997 206 1962—Mar. 28 68,635 42,713 18,840 7,082 16,089 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 7,363 16,641 87,944 78,042 6,675 77 1,280 41,,266 28,744 1,013 7,106 206 May 30 69,433 43,304 18,585 7,544 16,523 88,089 77,911 6,314 78 2,688 39,61129,220 1,058 7,162 206 June 30 70,145 43,824 18,627 7,694 17,602 89,885 80,631 6,622 75 3,670 40,60129,663 240 7,201 206 July 25 70,305 43,969 18,482 7,854 16',409 88,886 78,686 6,633 79 1,927 40,367 "2,9680 1,159 7,181 207 Aug. 29 (old basis; 70,333 44,540 17,987 7,806 16,180 88,626 78,317 6,662 74 2,639 39,126 29,816 1,058 7,214 200 Aug. 29 (new basis' 69,597 44,049 17,819 7,729 16,027 87,722 77,524 6,646 74 2,599 38,620 29,585 1,036 7,142 194 Sept. 26* 69,932 44,389 17,809 7,734 16,897 88,950 78,946 7,010 66 2,839 39,259 29,772 938 7,148 193 Oct. 31* 71,007 45,155 17,947 7,905 17,046 90,244 80,217 7,235 71 2,063 40,78130,067 892 7,190 193 Nov. 28* 71,264 45,211 18,088 7,965 16,881 90,307 19,111 7,139 69 1,918 40,61130.040 1.216 7,201 195 Country member banks:6 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 225 10,109 6,258 1,982 6,219 1945—Dec. 31 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 5,465 24,23512,494 2,525 6,476 1947—Dec. 31 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 432 28,37814,560 23 2,934 6,519 1960—Dec. 31 67,890 36,981 22,848 8,06014,740 84,126 76,004 1,778 ,783 43,,339955 29,011 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 30,820 121 6,861 5,911 Nov. 29 72,394 39,131 24,346 8,917 13,552 87,350 78,585 1,577 ,836 43,717 31,418 151 7,043 5,887 Dec. 30 73,131 39,693 24,407 9,031 15,595 90,376 81,646 1,925 ,641 46,21131,832 40 7,088 5,885 1962—Mar. 28 73,317 39,890 24,187 9,240 12,734 87,592 78,807 1,452 ,840 41,945 33,533 142 7,139 857 Apr. 25 74,275 40,503 24,384 9,388 13,046 88,846 79,997 1,467 ,208 43,439 33,846 168 7,180 846 May 30 74,582 40,861 24,235 9,486 12,959 89,001 79,957 1,355 2,046 42, ,227 263 7,228 845 June 30 75,019 41,492 23,843 9,685 13,806 90,555 81,577 1,529 2,601 42,596 34,803 80 7,323 842 July 25 75,467 41,436 24,228 9,803 13,154 90,135 81,147 1,482 1,832 42,767 35,029 243 7,241 833 Aug. 29 76,510 41,902 24,620 9,988 13,184 91,177 81,995 1,541 2,380 42,554 35,483 282 7,339 838 Sept. 26* 77,919 42,738 25,01310,16813,495 92,992 83,929 1,635 2,546 43,820 35,880 100 7,394 5; 832 Oct. 31* 78,665 42,902 25,432 10,33114,076 94,316 84,965 1,711 1,984 44,937 .3.,6285 230 7,479 5,833 Nov. 28* 79,528 43,506 25,638 10,38413,718 94,801 85,286 1,739 2,194 45,08536,220 206 7,555 5,832 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1652 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 Cla a s n s d o d f a b te ank Total Loans G U o S .S v e . c t. urit O ie t s her a C ss a e s t h s1 c c b o T a i a l a u l o p i i n c a n t t i - d i t a - t e 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. ema O n t d her 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 Insured commercial banks: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,29815,699 10 6,84413,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,276",876 215 8,67113,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,85112,615 54 1,325 92,975 34,882 61 9,7"34 13,398 1958—Dec. 31.. 183,596 97,730 65,669 20,198 48,689 236,724 214,48515,653 2,209 4,241 129,214 63,168 6718,154 13,101 1959—Dec. 31.. 188,790110,299 58,348 20,143 49,158 242,828 218,47415,500 1,358 5,037130,720 65,858 60219,206 13,107 1960—Dec. 31.. 198,011117,092 60,468 20,451 51,836 255,669 228,40116,921 1,667 5,932132,533 71,348 149 20;2813,119 1961—Dec. 30..213,904124,348 66,026 23,531 56,086 276,600 247,176 1177,737 333 5,934141,050 82,122 462 22,08913,108 1962—June 30.. 219,163128,613 63,92126,630 48,415 274,318 243,85614,235 388 9,529127,990 91,714 773 22,8"1"0 13,104 National member \ banks: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,47316,224 4,664 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 ,375 35 795 53,54119,278 5,409 5,005 1958—Dec. 31.. 99,277 52,627 35,71410,936 26,781 128,397 116,714 9,035 767 2,292 69,808 34,812 43 9,643 4,578 1959—Dec. 31.. 102,615 59,962 31,76110,892 27,464 132,636 119,638 8,947 514 2,742 71,015 36,421 340 10,302 4,542 1960—Dec. 31.. 107,546 63,694 32,71211,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 11111,098 4,530 1961—Dec. 30.. 116,402 67,309 36,08813,006 31,078 150,809 135,51110,359 104 3,315 76,292 45,441 22511,875 4,513 1962—June 30.. 119,241 69,771 34,50814,962 26,860 149,559 133,728 8,154 123 5,424 69,256 50,770 37912,243 4,500 State member banks: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 3,055 1,918 1958—Dec. 31.. 55,588 31,435 18,585 5,568 16,407 73,620 66,102 6,192 1,420 1,530 40,64016,320 10 5,817 1,734 1959—Dec. 31.. 55.264 34,817 15,052 5,396 16,045 73,090 65,069 6,102 825 1,763 39,97416,406 240 5,962 1,691 1960—Dec. 31.. 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40,73317,727 20 6,299 1,644 1961—Dec. 30.. 63,196 38,924 17,971 6,302 18,501 84,303 74,119 6,835 199 2,066 43,303 *2 1,716 213 6,763 1,600 1962—June 30.. 64,256 39,442 17,557 7,257 15,993 82,800 72,329 5,641 227 3,310 38,758 24,392 355 6,936 1,570 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/" 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 1960—Dec. 31.. 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 645 20,14014,095 3,232 6,948 1961—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 1962—June 30.. 35,681 19,409 11,860 4,412 5,563 41,975 37,814 440 795 19,97616,565 3,633 7,036 Noninsured nonmember commercial banks: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 329 1,291 253 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 279 714 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 325 783 1947—Dec. 31* 1958—Dec. 31.. 1,568 484 707 377 301 1,927 1,532 146 163 890 325 332 399 1959—Dec. 31.. 1,480 534 589 358 309 1,858 1,429 150 83 873 311 350 366 I960—Dec. 31.. 1,498 550 535 413 314 1,883 1,443 159 132 846 293 358 352 1961—Dec. 30.. 1,536 577 553 406! 346 1,961 1,513 177 148 869 307 370 323 1962—June 30.. 1,507 580 523 404! 313 1,902 1,442 165 137 795 320 372 318 Nonmember commercial banks: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 1,362 7,130 1947—Dec. 314 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 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 20,60513,370 3,294 7,244 1960—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—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 1962—June 30.. 37,188 19,989 12,383 4,816 5,876 43,877 39,256 605 174 819 20,77116,886 4,00S 7,353 Insured mutual I savings banks: 1941—Dec. 31.. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945_Dec. 31.. 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 1212,192 1,252 194 1958—Dec. 31.. 28,980 19,180 5,215 4,585 752 30,189 27,277 28 277,,!243 2,473 241 1959—Dec. 31.. 30,580 20,942 5,016 4,622 686 31,743 28,577 28 288,544 2,654 268 1960—Dec. 31.. 33,794 23,852 4,787 5,155 766 35,092 31,502 29 311.468 2,998 325 1961—Dec. 30.. 35,660 25,812 4,690 5,158 828 37,065 33,400 256 33,137 3,191 330 1962—June 30.. 36,989 27,179 4,708 5,102 779 38,366 34,581 275 34,300 3,259 331 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

COMMERCIAL AND MUTUAL SAVINGS BANKS 1653 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank l Other Total Num- Cla a s n s d o d f a b t a e nk Total Loans G U o .S v . t. Other a C ss a e s t h s1 c b c o a i a l u a l p i n i c a n t d i - - i t t e a s s l 2 Total1 m D a e n - d Time U.S D . ema O n t d her Time r B i o n o w g r s - - c c a o a p u c i n - t t a s l ba b o n e f r ks Govt. Noninsored mutual sayings 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 * 5,957 1,384 3,813 760 211 6,215 5,556 1 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 I960—Dec. 31 5,320 3,270 1,453 597 107 5,481 4,850 4 850 555 189 1961—Dec 30 5,600 3,581 1,446 572 108 5,768 5,087 1 4 5,083 577 184 1962—June 30 5,882 3,751 1,570 561 104 6,052 5,306 1 15 5,291 594 181 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 all nonmember and member commercial and $400 million demand to other demand). banks; stock savings banks and nondeposit trust cos. are included with 2 Includes other assets and liabilities not shown separately. commercial banks. Member banks include 1 national bank in the 3 See note 4 on page 1649. Virgin Islands that became a member in May 1957, 2 noninsured non- * Beginning with Dec. 31, 1947, the series was revised. A net of 115 deposit trust cos. and, before July 1962, mutual savings banks that noninsured nonmember commercial banks with total loans and invest- became members of the Federal Reserve System during 1941 (3 before ments of about $110 million were added, and 8 banks with total loans Jan. 1960, 2 until June 1961, and 1 until July 1962). These banks were and investments of $34 million were transferred from noninsured mutual excluded from commercial banks. savings to nonmember commercial banks. Comparability of figures for classes of banks is affected somewhat 5 These data reflect the reclassification of New York City and city of by changes in F. R. membership, deposit insurance status, and the reserve Chicago as reserve cities effective July 28, 1962. For details see Aug. classifications of cities and individual banks, and by mergers, etc. 1962 BULL., p. 993. Figures are partly estimated except on call dates. 6 See note 6, Oct. 1962 BULL., p. 1315. For revisions in series before June 30, 1947, see July 1947 BULL., pp. 870-71. LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonsilly adjusted Securities Securities Period Total * Loans * Total * Loans * G U o . v S t . . Other G U o .S v . t. Other 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 I960 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 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 Apr . . . 215.0 124.5 64.6 25.9 214.8 124.0 64.7 26.1 May 216.4 124.8 65.5 26.1 215.3 124 8 64.4 26.1 June 220.3 126.6 66.6 27.1 219.2 127.7 64.4 27.0 July 217.8 126.1 64.1 27.6 217.8 126.1 64.2 27.5 Aug .. . . 220.3 127.3 65.0 28.0 219.0 127.3 63.9 27.9 Sept.p 222.0 129.7 64.3 28.0 223.1 130.6 64.3 28.2 Oct.? 224.4 131.7 64.1 28.6 225.7 131.6 65.5 28.6 Nov P 225.8 132.3 64.4 29.1 226.7 132.4 65.4 28.8 l 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. NOTE.—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

1654 COMMERCIAL BANKS LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans 1 Investments To financial U. S. Government Total Com- institutions securities Class of loans i mer- Other 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 a c i n i n a d - l A c tu u g r l r - - i- To R t e a e s t - a e l i d t n o i- - Other O s r e i t t h c i e e u r s dus- bro- vid- Certrial k d a e e n r a d s l- • T th o ersba T n o ks ot T h o ers uals Total Bills c t a if t i e - s Notes Bonds ers Total: 2 1947—Dec. 31..16,284 38,057:1 8,,1 67_1,,_6.6_0 830 ,220 115 9,393 5,723 94769,221 2,193 7,789 6,03453,205 ,729 1960—Dec. 31..99,509117,642 43,125 5,676 3,2841,833 966 7,106 28,713 26,396 2,,.9 0161,003 8,072 2,92019,01330,998 ,294 1961—Dec. 30..215,441124,925 45 ,1726,248 4,056"2,134 1,033 7,31130,32027,847 3,412 66,578 1,488 2,114:2 6.,33626,641 ,345 3,592 1962—Mar. 26*.215,750 11 2.5, 9,10 44,940 560 3,7302,080 2,570 6,460 3300,69027,890 3 640 64,570 9,420 3,740 24,860 26,550 ,710 3,560 June 30..220,670 129,193 45,9096^8013,2542,005 1,474 7,22132,03629,444 3 713 64,443 8,320 3,629 26,04126,453 ,165 3,869 All insured: 1941—Dec. 31. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,15916,899 3,6513,333 1945—Dec. 31. 21,809 25,765 9,4611,314 3,164 3,606 49 4,677 2,361 1,132 88,912 2,45519,07116,045 51,342 3,8733,258 1947_Dec. 31. 14,274 37,58318,0121,610 823 1,190 114 9,266 5,654 91467,941 2,124 7,552 5,918 52,347 5,129 3,621 1960—Dec. 31. 98,011117,092 42,957 5,628 3,2471,811 965 090 28,602 26,263 2,883 60,4687,994 2,884 8,868 30,72217,300 3,150 1961—Dec. 30. 213,904124,348 44,965 6,2114,030 2,107 1,027 7;296 30,21127,708 3,396 66,02611,356 2,098 26,14526,426 20;068 33,462 1962—Mar. 26. 214,261125,337 44,742 6,523 3,706 2,059 2,556 6,446 30,57827,752 3,622 64,0349,298 3,706 24,68626,34321,4483,442 June 30. 219,163128,613 45,717 6,766 3,234 1,981 1,469 7,200 31,91529,299 3,692 63,921 8,226 3,57725,88626,23122,—883 3~,747 Member, total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,00715,561 3,0902,871 1945—Dec. 31..107,183 22,775 8,949 885555 3,1333,378 47 3,455 1,900 1,057 78,338 2,27516,98514,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,62816,9621,046 811 ,065 113 7,130 4,662 839 57,914 1,987 5,816 4,815 45-,295 4,199 3,105 1960—Dec. 31..165,619 99,933 39,288 3,5093,124 1,564 947 6,726 22,51821,622 2,694 49,106 6,402 2,296 15,072 25,33514,1412,439 1961—Dec. 30..179,599106,232 40.931 3,934 3^77 1,827 1,014 6,889933 2233; 98™7 22,852 3,198 54.058 9,229 1,84221,39021,59816,6912,617 1962—June 30..183,497109,212 41,435 4,220 3,0881,699 1,453 6,789 25362 24;006 31480 52,065 6,467 2,98421,36721,24719,3212,899 Sept. 28..186,518111,993 42,210 3,948 3,3601.644 1,943 6,972 26,358 24,297 3,5-9 4• 51,323 6,124 2,901 19,56322,73420,129 3,074 New York City: 3 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 1,002 640 558 9,772 638 604 1960—Dec. 31.. 27,726 18,46510,876 1,574 399 500 1,799 868 1,930 940 6,980 1,422 578 1,708 3,272 1,964 317 1961—Dec. 30.. 30,297 19,53511,278 231,956 467 376 1,711 934 2,0721,220 7,862 2,117 442 2,496 2,806 2,635 265 1962—June 30.. 30,396 19,22410,980 1,512 409 568 1,774 1,084 2,0751,321 7.659 1,989 492 2.931 2.247 3,158 355 Sept. 28..30.511 20,06011,520 1,686 397 572 1,771 1,202 2,0791,348 6,596 1,142 497 2,667 2,290 3,486 370 City of Chicago: 3 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 2,890 132 235 248 2,274 213 185 1960—Dec. 31.. 7,050 4,485 2,690 32: 134 564 196 421 197 1,882 132 37 663 1,050 607 76 1961—Dec. 30.. 7,606 4,626 2,609 354 137 669 221 476 229 2,041 478 92 728 743 816 124 1962—June 30.. 7,937 4,672 2,659 265 147 611 278 456 298 1,936 200 151 844 741 1,150 179 Sept. 28.. 8,345 4,945 2,745 248 145 688 338 514 309 2,006 184 64 782 975 1,216 179 Reserve city: 1941—Dec. 31., 15,347 7,105 3,456 300 114 194 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 1,459 855 387 29,552 1,034 6,982 5,65315,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 3,147 1,969 35120,196 373 2,358 1,90115,563 1,3421,053 I960—Dec. 31.. 62,953 40,00216,223 88 739 351 3,216 9,005 8,721 909 17,396 2,031 794 5,461 9,111 4,817 738 1961—Dec. 30.. 68,565 42,37916,8791,076 976 784 470 3,261 9,590 9,172 99819,748 3,020 741 8,605 7,382 5,710 727 1962—June 30.. 70,145 43,824 1177,077 ,184 888 727 556 3,148 10,272 9,6821,12918,627 1,611 1.267 8,186 7.563 6,867 827 Sept. 28..69,90* 44,43: 17,09"1,028 926 705 79' 3,20510,674 9,6501,17717,769 1,305 1,291 7,275 7,898 6,894 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 ,028 1945—Dec. 31., 35,002 5,596 1,484 648 4: 471 1,881 707 359 26,999 630 5,102 4,54416,722 1,34: ,067 1947_Dec. 31., 36,324 10,199 3,096 818 23 227 3,827 1,979 224 22,857 480 2,583 2,108 17,687 2,006 1,262 1960—Dec. 31., 67,890 36,981 9,499 2,589 508 293 29 1,147 12,44910,550 64722,848 2,817 888 7,24011,903 6,7521,308 1961—Dec. 30., 73,131 39,69310,1652,811 591 438 116 1,251 13,24211,132 75124,407 3,614 566 9,560 10,667 7,530 1,500 1962—June 30., 75,019 41,49210,7193,007 424 416 240 1,256 13,72811,792 73: 23,843 2,667 1,075 9,405 10,696 8,146 1,539 Sept. 28. 77,759 42,556io--' ",890 499 397 478 1,308 14,14512,054 76024,953 3,493 1,049 8,83911,571 8,5321,718 Nonmember: 2 1947—Dec. 31., 18,454 5,43! 1,205 61 20 156 2,266 1,061 10911,318 206 1,973 1,21 7,920 1,078 625 1960—Dec. 31. 33,910 17,719 3,883388 2,167 161 269 379 6,205 4,774 20711,904 1,670 624 3,941 5,668 3,431 857 1961—Dec. 30. 35,856 18,700 4,2412,31 179 306 418 6,341 4,995 21412,525 2,259 272 4,947 5,046 3,655 976 1962—June 30. 37,188 19,989 4,47' 2,580 165 306 431 6,682 5,439 23312,383 1,853 645 4,675 5,210 3,845 971 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; redesignation 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 1655 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d B s F w e R a . r i n v e t R - k h e . s s r C c e a o n u n i c d r n - y b m a a w B d n e n a i o c s k t l e - t h - s i s c 4 ju p m D s o d a a t s d e e e n i - - - d t d s 5 m D e In s o t - t i e c r 4 ba F nk or- G U o .S v . t. S g l a o o t n c a v d a t t e l . c C h c o f a e e e e i f n t e c f r r c d i d t s k . - i ' s - , IPC I b n a t n e k r- P G U S i o a n o a n . s g S v v t d s a . - t l . S g l a o o t n c a v d a t t e l . IPC r B i o n o w g r s - - c C o a t a u a c p l n - i t - s Total: 2 1947—Dec. 31... 17,796 2,216 10,216 87,123 11,362 ,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1960—Dec. 31... 16,720 3,346 13,681115,120 15,453 ,627 5,945 11,674 4,602 117,103 1,799 262 4,544 66,836 116633 20,986 1961—Dec. 30... 16,918 3,689 14,169122,654 16,574 ,340 5,946 12,242 5,056 124,622 481 283 5,465 76,680 47122,459 1962—Mar. 26«.. 16,520 3,760 11,270114,720 12,710 ,140 6,780 11,280 3,540 111,460 390 280 6,070 81,680 2,130 2222,790 June 30.. 16,839 3,185 11,799114,043 13,185 ,215 9,554 11,814 4,437 112,534 525 300 6,341 85,393 786 23,183 All insured: 1941—Dec. 31... 12,396 1,358 8,570 37,845 9,823 673 ,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 ,224488 23,740 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 ,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1960—Dec. 31... 16,720 3,326 13,409114,292 15,339 ,582 5,932 11,582 4,564 116,388 1,667 262 4,481 66,605 149 20,628 1961—Dec. 30.. 16,918 3,670 13,871121,671 16,440 ,298 5,934 12,149 5,023 123,878 333 283 5,412 76,426 1,089 1962—Mar. 26.. 16,518 3,740 11,039113,838 12,625 ,128 6,768 11,192 3,522 110,793 364 284 6,013 81,412 2,117 22,442 June 30.. 16,839 3,168 11,524 111133,136 13,053 ,182 9,529 11,727 4,390 111,874 388 300 6,290 85,124 773 22,810 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 ,224433 2122,179 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 ,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—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 43818,638 1962—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 73519,179 Sept. 28.. 16,999 2,553 7.291 94,666 13,017 1,065 7,653 8,961 3,448 95,901 352 245 4,916 71,788 1,45519,562 New York City ;3 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 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 14 1,418 30 2,259 I960—Dec. 31.. 3,398 199 147 15,352 4,105 1,184 1,217 305 2,476 19,051 ,216 203 3,976 3,554 1961—Dec. 30.. 3,286 240 143 17,089 4,330 967 1,267 333 2,583 20,213 191 162 6,735 283 3,683 1962—June 30.. 3,495 165 106 15,796 3,643 874 1,918 327 2,390 17,580 210 221 7,824 381 3,761 Sept. 28.. 3,338 184 99 15,710 3,579 784 1,544 310 1,892 17,589 208 230 8,073 567 3,839 City of Chicago:* 1941—Dec. 31.. 1,021 298 2,215 1,027 127 233 34 2,152 476 288 1945—Dec. 31.. 942 200 3,153 1,292 1,552 237 66 3,160 719 377 1947—Dec. 31.. 1,070 175 3,737 1,196 72 285 63 3,853 902 426 1960—Dec. 31.. 899 171 3,968 1,327 327 298 102 4,499 1,521 35 822 1961—Dec. 30.. 889 158 3,809 1,578 369 315 124 4,830 1,996 35 870 1962—June 30.. 916 94 3,728 1,083 546 330 109 4,082 2,581 34 894 Sept. 28.. 996 113 3,869 1,194 477 325 104 4,255 2,788 112 933 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 2,566 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—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—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 Sept. 28.. 7,435 771 2,081 33,232 6,668 223 3,008 2,928 834 36,093 78 88 2,493 21,214 638 7,168 Country: 1941—Dec. 31.. 2,210 526 3,216 9,661 790 225 1,370 239 8,500 31 146 6,082 4 1,982 1945_Dec. 31.. 4,527 796 4,665 23,595 ,199 5,465 2,004 435 21,797 52 219 12,224 11 2,525 1947—Dec. 31.. 4,993 929 3,900 27,424 ,049 432 2,647 528 25,203 45 337 14,177 23 2,934 1960—Dec. 31.. 5,070 1,534 5,655 40,917 ,755 1,783 5,083 713 37,598 122 1,562 27,327 23 6,599 1961—Dec. 30.. 5,210 1,678 5,881 43,575 ,910 1,641 5,320 796 40,095 108 1,891 29,834 40 7,088 1962—June 30.. 5,023 1,438 4,872 40,321 ,512 2,601 5,261 676 36,660 104 2,158 32,541 80 7,323 Sept. 28.. 5,230 1,564 4,998 41,855 ,575 2,623 5,398 618 37,964 102 2,178 33,654 139 7,621 Nonmember: 2 1947—Dec. 31.. 544 3,947 13,595 385 167 1,295 180 12,284 190 172 6,858 1,596 1960—Dec. 31.. 828 5,099 20,525 578 657 2,658 357 17,970 160 985 13,378 3,590 1961—Dec. 30.. 876 5,446 21,994 649 565 2,755 402 19,168 178 1,094 14,169 3,822 1962—June 30.. 787 4,617 20,489 553 819 2,707 356 17,708 174 1,245 15,614 4,005 * 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

1656 WEEKLY REPORTING MEMBER BANKS A SSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financial institutions Loans Wednesday m i T l n o a e v o a n n e t n d t a s s s t l - i j i m u n a s a v e n t d e n e d - s t d t s - 2 j L us a o t d a e - n d s 2 i C m n t a c r o d n i e i a u m a d r l l s - - - A t c u g u r r l a - i l - G U a T o n . o S v d t . b . d r e o O a k l s e t e e h r r - s e s r G U T o .S v o t . . oth O e s t r e h s - er For B - ank m D ti e o c s - - P s a a e N n l r e d s o s . nbank e R st e a a t l e o A th l e l r V s t e a r i r o e l v u - n e a s se- curi- curi- eign com- finan. Other c t u ie r s i- ties c t u ie n s - ties m ci e a r l - C e O tc S . ., Total- Leading Cities 1961 Nov. 1 118,898 117,467 71,843 32,085 1,210 1,072 2,055 98 1,310 525 ,431 3,132 2,226 13,245 16,456 1,571 3 118,220 116,899 71,647 32,010 1,206 986 1,966 97 1,317 540 ,321 3.108 2,245 13,269 16,475 1,572 15 119,516 118,162 72,434 32,136 1,216 1,341 2,080 100 1,318 553 ,354 3,106 2,314 13,312 16,527 1,569 22 118,707 117,255 71,741 32,024 1,220 833 2,016 103 1,330 566 ,452 3,023 2,308 13,338 16,541 1,561 29 118,628 117,319 71,670 32,109 1,226 520 2,063 102 1,319 587 ,309 3,073 2,302 13,347 16,584 1,562 1962 Oct. 3 126,698 124,897 77,726 34,081 1,318 661 2,131 1,270 642 ,801 3,572 2,707 14,940 18,062 1,741 10 126,104 124,344 77,708 34,085 ,327 758 2,123 1,272 652 ,760 3,429 2,724 15,008 17,991 1,741 17 126,955 125,093 77,981 34,221 ,340 823 2,142 1,285 648 .862 3,422 2,737 15,084 17,939 1,742 24 125,924 124,200 77,441 34,009 ,351 614 2,069 1,288 653 ;724 3,314 2,703 15,155 17,947 1,742 31 127,402 125,533 78,765 34,290 ,384 1,186 2,196 1,301 663 ,869 3,432 2,712 15,203 18,065 1,748 Nov. 7 126,479 124,672 78,432 34,322 ,421 887 2,004 1,320 644 ,807 3,431 2,763 15,231 18,076 1,747 14 126,688 124,798 78,980 34,617 ,442 948 2,020 1,322 644 ,890 3,456 2,767 15,309 18,120 1,746 21 127,170 125,459 79,037 34,787 ,452 700 2,082 1,321 621 1,711 3,445 2,734 15,384 18,172 1,746 126,979 125,472 78,861 34,680 ,480 661 2,077 1,334 623 1,507 3,371 2,714 15,399 18,183 1,743 28 New York City 1961 28,876 28,496 18,092 10,655 705 1,201 420 226 380 1,024 429 809 3,029 435 Nov. 1 28,469 28,303 17,981 10,617 657 1,149 428 239 166 1,020 438 818 3,021 435 8 29,334 29,129 18,469 10,688 991 1,243 417 236 205 1,018 435 826 3,020 435 15 28,724 28,306 17,803 10,661 510 1,155 420 253 418 915 438 826 3,026 432 22 28,756 28,189 17,645 10,675 190 1,216 421 261 567 960 440 827 3,056 432 29 1962 Oct. 3 30,117 29,399 19,131 11,298 454 ,128 387 272 1,104 546 1,109 3,311 499 10 29,852 29,157 19,045 11,270 512 ,073 385 274 695 1,052 545 1,123 3,290 499 17 30,175 29,393 19,151 11,345 549 ,091 390 267 782 1,066 549 1,146 3,227 499 24 29,771 29,051 18,903 11,234 470 ,039 385 280 720 1.018 547 1,173 3,235 500 31 30,568 30,065 19,747 11,357 961 ,125 384 297 503 1,118 557 1,179 3,244 502 Nov. 7 29,666 29,053 19,25 11,344 639 992 391 272 613 1,114 568 1,178 3,234 502 14 29,781 29,227 19,563 11,452 730 999 398 277 554 1,168 579 1,198 3,244 502 21 29,848 29,327 19,434 11,502 462 1,051 399 278 521 1,155 585 1,232 3,252 502 28 29,730 29,229 19,176 11,455 375 1,042 401 285 501 1,091 573 1,233 3,202 501 Outside New York City 1961 Nov. 1 90,022 88,971 53,751 21,430 1,201 367 854 890 299 1,051 2,108 1,797 12,436 13,427 1,136 8 89,751 88,596 53,666 21,393 1,197 329 817 889 301 1,155 2,088 1,807 12,451 13,454 1,137 15 90,182 89,033 53,965 21,448 1,207 350 837 901 317 1,149 2,088 1,879 12,486 13,507 1,134 22 89,983 88,949 53,938 21,363 1,210 323 861 910 313 1,034 2,108 1,870 12,512 13,515 1,129 29 89,872 89,130 54,025 21,434 1,216 330 847 898 326 742 2,113 1,862 12,520 13,528 1,130 1962 Oct. 3 96,581 95,498 58,595 22,783 1,310 207 ,003 883 370 .083 2,468 2,161 13.831 14,751 1,242 10 96,252 95,187 58,663 22,815 1,320 246 ,050 887 378 ,065 2,377 2,179 13;885 14,701 1,242 17 96,780 95,700 58,830 22,876 1,333 274 ,051 895 381 .080 2,356 2,188 13,938 14,712 1,243 24 96,153 95,149 58,538 22.775 1,342 144 ,030 903 373 ,004 2,296 2,156 13,982 14,712 1,242 31 96,834 95,468 59,018 22^33 1,370 225 ,071 917 366 ,366 2,314 2,155 14,024 14,821 1,246 Nov. 7 96,813 95,619 59,175 22,978 1,407 248 ,012 929 372 .194 2,317 2,195 14,053 14,842 1,245 14 96,907 95,571 59,417 23,165 1,435 218 ,021 924 367 ,336 2,288 2,188 14,111 14.876 1,244 21 97,322 96,132 59,603 23,285 1,445 238 ,031 922 343 ,190 2.290 2,149 14,152 14,920 1,244 28 97,249 96,243 59,685 23,225 1,473 286 ,035 933 338 1,006 2,280 2,141 14,166 14.981 1,242 For note see p. 1658. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

WEEKLY REPORTING MEMBER BANKS 1657 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Investments Cash assets 3 Total U. S. Government securities assets—• All Total Wednesday No m te a s tu an ri d n g b — onds O se t c h u e - r Total a w B n a i c t l e h - s a w B n a i c t l e h - s Cu a rr n e d ncy s w e R r i v e th - es a o s t s h e e t r s lia a ti b n e i d s li- Cer- rities domes- for- coin F. R. capital Total Bills tifi- W 1 i y i n t e h a - r 5 1 y e t a o rs 5 A y f e te a r rs ba t n ic ks b e a i n g k n s Banks accounts Total- Leading Cities 1961 Nov. 1 34,087 5,772 1,482 6,233 16,645 3,955 11,537 17,493 2,950 166 1,399 12,978 4,457 154,004 8 33,770 5,500 1,456 6,301 16,540 3,973 11,482 17,145 2,744 161 1,438 12,802 4,540 152,693 15 34,181 5,752 1,484 5,079 18,234 3,632 11,547 17,475 3,047 160 1,458 12,810 4,443 156,543 22 33,867 5,491 1,485 5,067 18,320 3,504 11,647 17,490 2,782 162 1,435 13,111 4,367 153,505 29 33,932 5,569 1,475 5,064 18,326 3,498 11,717 17,516 3,166 175 1,651 12,524 4,436 152,656 1962 Oct. 3 31,995 4,310 2,102 5,925 13,989 5,669 15,176 18,025 3,004 147 1,506 13,368 4,560 162,241 10 31,513 3,972 2,096 5,884 13,925 5,636 15,123 17,171 2,762 144 ,609 12,656 4,569 160,490 17 31,846 4,356 2,096 5,863 13,916 5,615 15,266 17,712 2,979 144 ,591 12,998 4,510 164,094 24 31,444 4,019 2,105 5,819 13,871 5,630 15,315 17,211 2,790 146 ,610 12,665 4,520 160,500 31 31,432 4,017 2,098 5,758 13,897 5,662 15,336 17,390 2,975 245 ,585 12,585 4,710 164,676 Nov. 7 30,952 3,605 2,090 5,743 13,826 5,688 15,288 16,994 2,883 160 ,561 12,390 4,715 162,229 14 30,594 3,271 2,099 5,703 13,794 5,727 15,224 17,195 3,094 138 .709 12,254 4,731 163,804 21 31,034 3,727 2,273 3,942 14,761 6,331 15,388 17,207 2,933 147 ;550 12,577 4,592 163,263 31,124 3,854 2,276 3,975 14,763 6,256 15,487 17,530 3,204 158 ,802 12,366 4,682 162,359 28 New York City 1961 7,710 1,939 488 1,334 3,253 696 2,694 4,048 72 190 3,721 1,876 39,504 Nov. 1 7,695 1,845 487 1,430 3,226 707 2,627 3,916 71 218 3,564 1,940 39,288 8 7,999 2,106 510 1,013 3,685 685 2,661 3,720 90 197 3,373 1,938 40,346 15 7,810 1,911 524 1,021 3,677 677 2,693 4,028 70 203 3,687 1,896 38,947 22 7,790 1,871 490 1,038 3,711 680 2,754 3,813 179 231 3,329 1,916 38,665 29 1962 Oct. 3 6,435 1,222 477 1,235 2,321 ,180 3,833 4,235 90 79 229 3,837 1,858 40,491 10 6,357 1,124 478 1,237 2,357 ,161 3,755 66 77 263 3,337 1,848 39,743 17 6,446 1,248 473 1,222 2,357 ,146 3,796 98 79 233 3,422 1,816 41,034 24 6,326 1,178 477 1,200 2,339 ,132 3,822 58 76 232 3,534 1,824 40,141 31 6,527 1,454 456 1,140 2,329 ,148 3,791 110 128 229 3,681 1,903 42,844 Nov. 7 6,096 1,046 449 1,161 2,310 ,130 3,700 3,813 83 92 255 3,383 1,941 40,633 14 5,972 919 453 1,147 2,307 ,146 3,692 3,772 96 69 256 3,351 1,950 40,660 21 6,114 1,105 471 628 2,609 .301 3,779 3,898 96 73 225 3,504 1,877 40,253 28 6,181 1,159 477 677 2,576 3,872 4,008 114 83 257 3,554 1,930 40,378 Outside New York City 1961 Nov. 1 26,377 3,833 994 4,899 13,392 3,259 8,843 13,445 2,878 101 ,209 9,257 2,581 114,500 8 26,075 3,655 969 4,871 13,314 3,266 8,855 13,229 2,673 98 ,220 9,238 2,600 113,405 15 26,182 3,646 974 4,066 14,549 2,947 8,886 13,755 2,957 100 ,261 9,437 2,505 116,197 22 26,057 3,580 961 4,046 14,643 2,827 8,954 13,462 2,712 94 ,232 9,424 2,471 114,558 29 26,142 3,698 985 4,026 14,615 2,818 8,963 13,703 2,987 101 ,420 9,195 2,520 113,991 1962 Oct. 3 25,560 3,088 1,625 4,690 11,668 4,489 11,343 13,790 2,914 ,277 9,531 2,702 121,750 10 25,156 2,848 1,618 4,647 11,568 4,475 11,368 13,428 2,696 67 ,346 9,319 2,721 120,747 17 25,400 3,108 1,623 4,641 11,559 4,469 11,470 13,880 2,881 65 ,358 9,576 2,694 123,060 24 25,118 2,841 1,628 4,619 11,532 4,498 11,493 13,311 2,732 70 ,378 9,131 2,696 120,359 31 24,905 2,563 1,642 4,618 11,568 4,514 11,545 13,242 2,865 117 ,356 8,904 2,807 121,832 Nov. 7 24,856 2,559 1,641 4,582 11,516 4,558 11,588 13,181 2,800 68 ,306 9,007 2,774 121,596 14 24,622 2,352 1,646 4,556 11,487 4,581 11,532 13,423 2,998 69 ,453 8,903 2,781 123,144 21 24,920 2,622 1,802 3,314 12,152 5,030 11,609 13,309 2,837 74 ,325 9,073 2,715 123,010 28 24,943 2,695 1,799 3,298 12,187 4,964 11,615 13,522 3,090 75 ,545 8,812 2,752 121,981 For notes see p. 1658. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1658 WEEKLY REPORTING MEMBER BANKS ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time Wednesday ju u T s n o t a e t d a d l - 4 ju p m D s o d a a t s d e e e n i - - - d t d s 5 Total 6 IPC G S l a o t o n c a v d a te t l . e F ig o n r - 7 G U o . v S t . . c m m D c o t i i e e m o a c s r - l - - - Total 8 S in a g v s - IPC Oth S l a e o t n r c a d a t t e l ime For- F B F. r a o n R m k . s F ot r h o e m rs O li i t a t h i b e e i s r l- c C o i a t a u c a p n - l - ts banks Govt. Total- Leading Cities 1961 Nov. 1 133,867 63,423 92,658 66,407 5,027 1,606 4,07112,008 41,209 29,621 6,406 2,693 2,175 241 1,727 5,35012,819 8 132,117 62,388 90,858 65,364 4,620 1,586 3,42912,253 41,259 29,708 6,373 2,694 2,169 462 1,824 5,44512,845 15 135,765 62,777 94,714 67,454 4,743 1,626 4,15212,676 41,051 29,724 6,163 2,658 2,181 581 1,774 5,58312,840 22 132,617 62,644 91,449 65,932 4,793 1,598 4,12411,740 41,168 29,790 6,127 2,727 2,203 362 2,085 5,618 12,823 29 132,404 63,906 91,216 66,183 4,894 1,647 3,41411,820 41,188 29,771 6,190 2,721 2,194 14 1,690 5,69512,853 1962 Oct. 3 141,070 60,744 92,845 64,085 4,631 1,533 7,022 12,121 48,225 33,921 !,566 3,218 2,177 117 2,343 5,24313,468 10 139,490 61,377 91,059 64,492 4,491 1,500 4,868 12,168 48,431 34,058 !,647 3,188 2,185 54 2,247 5,231 13,468 17 142,578 61,511 94,07167,053 4,350 ,534 4,829 12,814 48,507 34,126 ,664 3,165 2,199 136 2,616 5,28213,482 24 139,300 62,311 90,684 6'5",269 4,623 ,689 3,98611,542 48,616 34,185 ,696 3,148 2,232 122 2,311 5,281 13,486 31 143,170 63,025 94,512 66,996 5,017 ,681 4,283 12,030 48,658 34,246 1,688 3,144 2,231 160 2,433 5,35213,561 Nov. 7 140,067 61,472 91,26165,092 4,815 ,672 3,092 12,656 48,806 34,355 :,654 3,118 2,336 548 2,640 5,38513,589 14 141.813 62,197 93,047 6'7",537 4,743 ,617 3,043 12,617 48,766 34,343 ;,628 3,074 2,374 69 2,875 5,478 13,569 21 14i;422 61,986 92,687 66,268 4,970 ,576 4,314 12,093 48,735 34,418 :,476 3,087 2,408 105 2,623 5,573 13,540 140.862 63,007 91.839 65,916 4,938 ,552 3,63412,030 49,023 34,459 :,590 3,192 2,435 55 2,233 5,63213,577 28 New York City 1961 32,093 16,297 25,08317,253 394 1,197 1,137 2,945 7,010 2,787 2,185 236 1,658 113 879 2,739 3,680 Nov. t 31,613 15,529 24,62416,767 255 1,181 1,000 3,132 6,989 2,805 2,155 231 1,654 126 1,068 2,795 3,686 8 32,461 15,858 25,48017,180 270 1,243 1,101 3,167 6,981 2,814 2,131 228 1,662 285 1,127 2,785 3,688 15 31,139 15,812 24,12416,753 270 1,209 1,052 2,961 7,015 2,819 2,148 228 ,679 55 1.246 2,830 3,677 22 31.511 16,468 24,46717,218 266 1,245 832 2,987 7,044 2,826 2,197 214 ,671 603 2,879 3,672 29 1962 Oct. 32,976 15,369 24.74016,151 297 1,110 2,082 3,008 ,236 3,788 2,562 197 ,517 1.123 2,604 3,788 10 32,408 15,344 24,10915,962 312 1,114 1,441 3,024 ,299 3,819 2,584 197 ,519 '939 2,608 3,788 17 33,382 15,189 25,08416,797 295 1,112 1,409 3,275 ,298 3,840 2,563 191 ,524 ,255 2,567 3,790 24 32,745 15,604 24,41716,344 268 1,282 1,134 3,033 ,328 3,848 2,560 191 ,549 ,019 2,568 3,789 31 35,064 15,953 26,74917,290 486 1,269 1,280 3,291 ,315 3,860 2,549 193 ,538 ,333 2,640 3,807 Nov. 7 32,755 15,096 24,38416,172 278 1,271 890 3,185 ,371 3,878 2,487 188 ,645 60 ,336 2,662 3,820 14 32,743 15,276 24,32516,901 263 1,196 836 3,056 ,418 3,886 2,491 184 ,684 ,447 2,650 3,820 21 32,528 15,314 24,08216,517 248 1,171 1,127 3,011 ,446 3,897 2,472 182 ,722 ,316 2,615 3,794 28 33.008 15,507 24,40216,418 254 1,131 900 3,285 ,606 3,900 2,555 227 ,750 936 2,633 3.801 Outside New York City 1961 Nov. 1 101,774 47,126 67,575 49,154 4,633 409 2,934 9,063 34,199 26,834 4,221 2,457 517 128 848 2,611 9,139 100,504 46,859 66,234 48,597 4,365 405 2,429 9,121 34,270 26,903 4,218 2,463 515 336 756 2,650 9,159 15 103,304 46,919 69,234 50,274 4,473 383 3,051 9,509 34,070 26,910 4,032 2,430 519 296 647 2,798 9,152 22 101,478 46,832 67,: ,179 4,523 389 3,072 8,779 34,153 26,971 3,979 2,499 524 307 839 2,788 9,146 29 100,893 47,438 66,749 48,965 4,628 402 2.582 8,833 34,144 26,945 3,993 2,507 523 14 1,087 2,816 9,181 1962 Oct. 3 108,094 45,375 68,105 47,934 4,334 423 4,940 9,113 39,989 30,133 6,004 3,021 660 117 ,220 2,639 9,680 10 107,082 46,033 66,950 48,530 4,179 386 3,427 9,144 40,132 30,239 6,063 2,99! 666 54 ,308 2,623 9,680 17 109,196 46,322 68,987 50,256 4,055 422 3,420 9,539 40,209 30,286 6,101 2,974 675 96 ,361 2,715 9,692 24 106,555 46,707 66,267 48,925 4,355 407 2,852 8,509 40,288 30,337 6,136 2,957 683 102 ,292 2,713 9,697 31 108,106 47,072 67.763 49,706 4,531 412 3,003 8,739 40,343 30,386 6,139 2,951 693 160 ,100 2,712 9,754 Nov. 7 107,312 46,376 66,877 48,920 4,537 401 2,202 9,471 40,435 30,477 6,167 2,930 691 488 ,304 2,723 9,769 14 109,070 46,921 68,72250,636 4,480 421 2,207 9,561 40,348 30,457 6,137 2,890 690 69 ,428 2,828 9,749 21 108,894 46,672 68,605 4'"9,751 4,722 405 3,187 9,082 40,289 30,521 6,004 2,905 686 105 ,307 2,958 9,746 28 107,854 47.500 67,437 49,498 4,684 421 2,734 8,745 40,417 30,559 6,035 2,965 685 55 ,297 2,999 9,776 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 shown separately. of valuation reserves; individual loan items are shown gross. 7 Deposits of foreign governments and official institutions, central 3 Excludes cash items in process of collection. banks, international institutions, banks in foreign countries, and foreign 4 Total demand and total time deposits. branches of U. S. banks other than reporting bank. 5 Demand deposits other than domestic commercial 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 1659 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (Net change in millions of dollars) Week Month Quarter Half year Industry i 1962 1962 1962 1962 1961 N 2 o 8 v. N 2 o 1 v. N 1 o 4 v. No 7 v. O 3 c 1 t. Nov. Oct. Sept. III II I 1st. 1st. Classification basis New Old Durable goods manufacturing: Primary metals -5 3 -1 o -25 -11 -49 -119 -12 -131 Machinery .... -I 16 5 16 14 -44 69 31 -50 138 89 Transportation equipment 46 8 -6 -6 56 -58 57 -15 27 69 96 -100 O O t t h h e e r r f d a u b r r a i b ca le te g d o o m d e s tal products. . . -8 2 -5 - - 3 9 -1 8 - - 1 3 9 5 - - 2 3 6 0 -9 31 - 1 4 4 8 0 1 5 1 0 2 7 1 6 6 1 12 2 8 6 Nondurable goods manufacturing: -9 Food, liquor, and tobacco........ -19 46 46 -3 48 71 217 160 111 -152 -345 -497 -498 Textiles, apparel, and leather -29 -42 6 8 -35 -58 -153 -13 96 42 247 289 177 Petroleum refining —4 10 10 -3 23 14 6 11 12 -14 -53 -67 Chemicals and rubber 2 -1 39 -1 4 39 -10 -51 -154 37 39 76 \ 81 Mi O n t i h n e g r , n in on cl d u u d r i a n b g l e c g ru o d od e s petroleum -10 1 -2 -1 -19 -12 -63 17 7 164 10 174 and natural gas -16 6 15 -14 5 12 3 -25 8 170 178 249 Trade: Commodity dealers 10 8 11 30 24 65 126 42 87 -161 -77 -237 -325 Other wholesale -24 15 19 -1 11 19 32 63 52 -18 34 Retail -16 36 58 19 25 97 148 30 36 52 10 61 > —175 Transportation, communication, and Cons o t t r h u e c r t io p n ublic utilities -1 1 0 8 J? 2 4 5 1 13 1 2 0 -1 6 3 1 -6 88 2 -4 12 3 2 0 9 9 -2 1 2 6 3 4 -28 1 8 8 -5 1 1 8 0 2 -33 5 0 3 All other types of business, mainly services 12 51 67 37 87 -13 26 8 127 79 205 406 -44 Net change in classified loans -97 181 282 9 248 375 188 602 640 116 80 196 -463 Commercial and industrial change— all weekly reporting banks -118 170 295 32 281 379 227 621 709 340 94 434 2-387 i Because of ^classifications 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 r n 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 r n 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 10 100 200 and over 10 100 200 and over Year: Quarter—cont.: 1 19 large cities: New York City: 1961—Sept 4.75 5.65 5.36 5.06 4.64 1953 3 7 5 0 4 4 3 9 3 5 Dec . ... 4 77 5 66 5 37 5 04 4 66 1954 3.6 5 0 4.3 3.9 3.4 1962—Mar 4.78 5 65 5.36 5.04 4 68 1955 3 7 5 0 4 4 4 0 3 5 June . .. 4 79 5 64 5 35 5 09 4 68 1956 4.2 5.2 4.8 4.4 4.0 Sept 4.77 5.60 5.35 5.14 4.65 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—Sept 5.05 5.86 5.53 5.18 4.93 I960 5.2 6.0 5.7 5.4 5.0 Dec 4.96 5.82 5.51 5.22 4.81 1961 5 0 5 9 5 5 5 2 4 8 1962—Mar 4 97 5 85 5 53 5.17 4 83 June 5.00 5.83 5.52 5.21 4.86 Sept 5.00 5.87 5.51 5.20 4.87 Quarter:! 19 large cities: 11 southern and western cities: 1961 Sept 4.99 5.87 5.52 5.19 4.82 1961—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 oo 5.53 5.25 4.84 5.33 6.01 5.65 5.39 5.12 Sept 4.99 5.86 5.53 5.21 4.82 Sept 5.32 5.98 5.65 5.28 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, 3V,; 1956-Apr. 13, 3%; Aug. 21, 4; 1957—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 I960—Aug. 23, 4%. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1660 INTEREST RATES MONEY MARKET RATES (Per cent per annum) Lh S. Government securities (taxable) 4 Finance Prime CO. Prime coml. paper bankers' 3-month bills 6-month bills 9- to 12-month issues Period 4 p - a t p o e r 6 , - d p ir la e c c e tl d y, a a c n c c e e p s t , - 3- to 5months 1 m 3 o - n to th 6 s - 2 90 days 3 on i R s s a n u t e e e w M y a ie r l k d et on i R s s a n u t e e e w M y a ie r l k d et (m y B i a e i r l l l k d s e ) t Other 5 iss y u e e a s r 6 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—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 AUK 3.30 3.12 3.11 2.837 2.82 3.005 2.99 3.10 3.13 3.57 Sept 3.34 3.13 3.09 2.792 2.78 2.947 2.93 2.99 3.00 3.56 Oct 3.27 3.04 3.03 2.751 2.74 2.859 2.84 2.90 2.90 3.46 Nov 3.23 3.08 3.00 2.803 2.83 2.875 2.89 2.94 2 92 3 46 Week ending— 1962 Nov 3 3.15 '2.94 3.00 2.686 2.74 2.774 2.82 2.90 2.87 3.45 10 3.22 3.03 3 00 2 841 2.82 2 927 2.87 2.92 2.89 3.43 17 3.25 3.11 3.00 2.801 2.82 2.846 2.86 2.94 2.91 3.46 24 3.25 3.13 3.00 2.833 2.84 2.892 2.90 2.95 2.94 3.49 Dec. 1 3.25 3.13 3.00 2.853 2.86 2.936 2.94 2.97 2.95 3.48 1 Averages of daily offering rates of dealers. 4 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) Total i Aaa Baa Aaa Baa Indus- Rail- Public Pre- Com- Comtrial 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 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 5 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 June 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 July 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 Sent 3.94 3.28 3.01 3.66 4.61 4.32 5.03 4.45 4.88 4 49 4 50 3 60 Oct 3.89 3.21 2.94 3.62 4.57 4.28 4.99 4.40 4.85 4.46 4.49 3.71 Nov . . . 3 87 3.15 2.89 3.53 4.55 4.25 4.96 4.39 4.83 4 42 4 45 1 50 Week ending— 1962 Nov 3 3.87 3.15 2 88 3.53 4.57 4.26 4.99 4.40 4.86 4.45 4.49 3 69 10 3 86 3 15 2 88 3 53 4 56 4 26 4 97 4 39 4 86 4 42 4 49 3 55 17 3.87 3.15 2.89 3.53 4.55 4.25 4.96 4.40 4.84 4.42 4.43 3.52 24 3.88 3.15 2.89 3.53 4.55 4.24 4.95 4.39 4.83 4 42 4 44 3 49 Dec. 1 3.88 3.17 2.89 3.54 4.54 4.25 4.94 4.39 4.80 4.42 4.43 3.43 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

SECURITY MARKETS 1661 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 (h r M ic a i i g d u p h e - 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 To M tal anu r D a fa b u c l - t e urin N ra d g o b u n l - e - T p t r o i a o r n t n a s - - P u l i u t i t i b o y l - - T n s a a r e i f n a c n r i d v e - d c e e - , , M in i g n- s t s h h a ( i a o n o i n r n f u d g e - s 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—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 65.77 145.8 135.6 138.1 133.3 107.9 188.4 188.0 101.1 4,120 1962—Jan... 85.34 109.9 94.5 69.07 72.99 33.77 62.69 140.4 130.8 133.6 128.1 108.5 181.4 175.2 104.1 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 64.51 142.9 133.5 134.0 133.1 107.4 184.2 175.2 106.6 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. 161.6 97.5 5,045 June.. 87.61 111.2 95.7 55.63 58.32 28.05 53.32 114.3 105.7 103.2 108.1 90.2 151. 141.3 88.3 4,770 July.. 86.07 110.2 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 Sept.. 87.02 112.1 95.8 58.00 60.67 27.68 56.96 117.9 108.9 106.2 111.5 88.5 158.2 141.6 92.3 3,310 Oct.. 87.73 114.4 96.6 56.17 58.66 27.40 55.63 114.3 105.6 102.5 108.4 86.6 154.3 135.9 91.3 3,423 Nov.. 87.96 114.5 96.6 60.04 62.42 30.17 57.42 122. 114.0 110.7 117.3 97.2 162.0 145.4 97.7 4,803 Week ending— 1962—Nov. 3. 87.94 115.1 96.6 56.73 59.36 28.19 55.65 118.0 109.7 106.5 112.8 90.4 156.0 138.9 93.4 4,015 10. 88.12 115.1 96.6 58.54 61.31 29.171 56.59 120.1 111.3 107.5 114.9 94.4 159.9 141.3 95.6 4,353 17. 88.00 114.6 96.7 59.87 62.93 30.38 57.43 122.8 114.2 110.8 117.3 97.9 161.6 146.4 96.6 4,758 24. 87.87 114.6 96.6 60.66 63.55 31.20 58.32 125.5 116.7 113.7 119.6 100.1 164. 149.4 101.5 4,618 Dec. 1. 87.89 113.7 96.6 61.98 64.97 31.92 59.131 127.4118.3 114.8 121.7|103.2 167.8 150.9 101.3 5,502 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 Common stocks, Standard and Poor's index based on averages of daily weekly data are computed as follows: figures; Securities and Exchange Commission index on weekly closing U. S. Govt. bonds, derived from average market yields in preceding prices. able on basis of an assumed 3 per cent, 20-year bond, averages of daily Volume of trading, average daily trading in stocks on the N. Y. Stock figures. Exchange for a 5Vi-nour trading day. Municipal and corporate bonds, derived from average yields, as computed by Standard and Poor's Corp., on basis of a 4 per cent, 20-year bond; Wed. closing prices. 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 t s o e c c k u re E d x c b h y a — nge bro c k h e a r s s i n a g n d an d d e a c l a e r r r s y i f n o g r — pur- Money bon•owed 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 I960 Dec 4,415 95 3,222 134 1,193 142 2,133 1,135 1961 Nov 5 460 39 4,141 102 ,319 51 2,752 1213 Dec 5,602 35 4,259 125 1,343 48 2,954 1,219 1962 Jan 5,464 34 4,111 111 1,353 51 2,860 1,225 Feb 5,426 34 4,066 133 1,360 71 2,812 1,190 Mar 5,457 34 4,083 105 1,374 52 2,912 1,154 Apr 5,491 36 4,079 117 1,412 57 3,015 1,110 May 5,408 35 4,000 91 1,408 44 2,845 1,205 4,938 32 3,605 92 1,333 46 2,194 1,374 July 4 876 29 3,562 83 ,314 32 2,091 1,252 5,073 23 3,773 80 ,300 35 2,472 1,130 Sept 5 156 27 3,887 81 ,269 49 2,689 091 Oct 5,165 25 3,864 81 ,301 29 2,596 ,126 Nov 5,285 24 3,951 82 ,334 28 2,558 I 151 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 of 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. borrowed includes borrowings from banks and from other lenders except memb«r firms of national securities exchanges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1662 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 ly2 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 3 2,751 840 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—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 1,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962 Jan 5,556 1,762 3 794 2,621 1,163 804 359 45 120 1,294 477 946 74 271 853 Feb 5,520 1,762 3,758 2,559 1,093 788 305 44 113 1,309 472 915 106 223 844 Mar 5,713 1,876 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 1,869 4,048 2,345 949 733 216 33 112 1,251 462 787 96 145 855 June 5,864 1,878 3,986 2,342 965 731 234 60 85 1,232 473 751 145 117 857 July 6,169 2.002 4,167 2,306 1,009 736 273 43 80 1,175 485 705 143 93 881 Aue .. ... 6,575 2,119 4 456 2,277 937 721 216 35 71 1,234 488 667 138 72 912 Sept 6,573 2,228 4,345 2,281 952 748 204 36 68 1,225 520 674 144 73 870 Oct 6,970 2,417 4,553 2,367 1,025 824 201 34 69 1.239 502 679 160 110 917 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. i nvestors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total End of period M ga o g r e t- Other G U o .S v . t. S l a o t n c a d a te l C r o a a n r t p d e o- a C s a se sh ts O as t s h e e ts r a s l s T u i s a a t r o e i b n p e t t i d s l s a l u — i l - s D i e ts p 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 c M om or m tg i a t g m e e n lo ts a n s govt. other i accts. Number Amount 1941 4,787 89 3,592 1,786 829 689 11,772 10,503 38 1 231 1945 4 202 62 10,650 1,257 606 185 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 [,170 I 1 9 9 6 6 0 1 2 28 6 , , 9 7 0 0 2 2 4 4 1 7 6 5 6 6 , , 1 2 6 4 0 3 6 67 7 2 7 5 5, , 0 0 4 7 0 6 9 87 3 4 7 6 58 4 9 0 4 4 2 0 , , 8 5 2 7 9 1 3 38 6 , , 2 3 7 4 7 3 6 7 7 8 8 1 3 3, , 7 5 7 5 1 0 6 5 1 8 , , 8 3 5 5 5 0 E f,6 f2 5 0 4 0 1961—Sept 28,335 455 6,305 687 5,118 867 654 42,422 37,859 823 3,739 65,662 1,526 Oct. 28,513 420 6,185 682 5,062 840 645 42,348 37,844 788 3,716 62,918 [,546 Nov 28,680 469 6,172 677 5,042 847 642 42,529 37,892 857 3,779 59,882 [,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 1 588 Feb 29,333 461 6,322 651 5,065 884 661 43,378 38,611 944 3,823 65,839 1,644 Mar « 29,563 508 6,531 633 5,090 896 676 43,897 39,083 973 3,840 69,223 1,698 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 30,398 519 6,296 582 5,069 883 675 44,421 39,642 921 3,859 79,248 I 940 July 30,688 506 6,285 577 5,135 837 678 44,706 39,814 1,021 3,871 84,357 1.994 AUE . ...... 31,000 560 6,311 568 5,149 808 677 45,073 40,029 1,127 3,917 83 803 2 088 Sept 31,243 563 6,314 563 5,151 852 702 45,388 40,458 996 3,934 88,882 2,122 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. 1649. 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. 4 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 1663 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 ndForeign 1 Total Bonds Stocks M ga o g r e t s - i 1 e R st e a a t l e i | 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 i 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 I 1954 84,486 12,262 9,070 1,846 1,346 37.300 34,032 3.268 25,976 2,298 3,127 3,523 1955 90,432 11,829 8,576 2,038 1,215 39,545 35.912 3.633 29,445 2,581 3,290 3,743 1956 96,011 11,067 7.555 2,273 1,239 41,543 38,040 3,503 32,989 2,817 3,519 4.076 1957 101,309 10,690 7,029 2,376 1,285 44,057 40,666 3,391 35,236 3,119 3,869 4,338 1958 107.580 11,234 7,183 681 1,370 47,108 42,999 4,109 37,062 3,364 4,188 4,624 1959 113,650 11,581 6,868 200 1,513 49,666 45,105 4,561 39,197 3,651 4,618 4,937 1960 119,576 11,679 6,427 588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961 126,816 11,896 6,134 1.874 55,294 49,036 6,258 44,203 4.007 5,733 5.683 Book value: 1959—Dec. 113,650 11,599 6,858 3,221 1,520 48,840 45,157 3.683 39,237 3.678 4,620 5.676 1960—Dec... 119,576 11,699 6,428 3,606 1,665 51,063 46,967 I 4,086 41,815 I 3,796 5,233 5,980 1961—Sept 124,411 12,057 6,390 3,851 1,816 53,003 48,533 i 4,470 43,381 I 3,917 5,618 6.435 Oct 125,064 12,093 6,403 3,868 1,822 53,292 48,767 4,525 43,580 3,936 5,652 6,511 Nov 125,706 12,133 6,360 3,904 1,869 53,473 48,891 ' 4,582 43,815 I 3.952 5,683 6,650 Dec 126.589 11,893 6,104 3,922 1,867 53,938 49,158 4,780 I 44,241 | 3,966 5,720 6,831 1962—Jan 127.311 12,155 6,314 3,958 1,883 54,329 49,506 4,823 44,,378 3,973 5,768 6,708 Feb 127,731 12,196 6.335 3,960 1.901 54,519 49,657 4,862 44-,,494 3,992 5,792 6,738 Mar 128,108 12.248 6,257 4,078 1,913 54,704 49.814 4,890 44,,637 3,989 5,834 6.696 Apr 128,569 12,341 6,351 4,064 1,926 54,965 50,039 4,926 44,,751 4,010 5.880 6,622 May 128,931 12,323 6,325 4.050 1.948 55,274 50.307 4,967 44^,946 4,024 5,927 6.437 June 129,144 12,237 6,230 4,058 1,949 55,445 50,491 4,954 45,,142 4,043 ! 5,981 6.296 July 130,002 12,418 6,406 4,062 1,950 55,697 50,706 4,991 45,,340 4,097 ! 6,038 6.412 Aug 130,596 12.459 6,385 4,090 1,984 55,927 50,908 5-,,0--1-9 45,,576 4,106 6,079 6.449 Sept 131.069 12:451 6.337 4,104 2.010 56.165 51.099 5.066 ! 45,758 4,110 ! 6,114 6.471 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) Liabilities Total Mortgage E pe n r d i o o d f M ga o g r e t s - s G U ec o . u v S r t i . . - Cash Other ! a li s a T s b e o i t l s t 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 e n v r d i v d e e s d B m o o rr n o e w y e 3 d : \ L p o r a o n c s e 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 4,682 475 256 636 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 1,244 1955 31,408 2,338 2,063 1,789 37,656 32,142 2,557 1.546 1,411 833 1956 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 55,139 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—Sept. 66,507 5,050 2,685 4,500 78,742 67,839 5,290 2,290 ,589 1,734 2,110 Oct.. 67,317 5,095 2,766 4,603 79,781 68,565 5,289 2,364 ,579 1,984 2,128 Nov. 68,069 5,177 2,850 4,801 80,897 69,340 5,293 2,445 ,558 2,261 2,028 Dec. 68,833 5,222 3,298 4,743 82,096 70,851 5,721 2,863 ,547 1,114 1,908 1962—Jan.. 69,368 5,408 2,933 4,628 82,337 71,342 5,745 2,480 ,488 1,282 1,988 Feb.. 69,968 5,503 3,031 4,668 83,170 71,920 5,748 2,384 ,539 1,579 2,150 Mar. 70,769 5,539 3,162 4,761 84,231 72,854 5,751 2,301 ,657 1,668 2,335 Apr.. 71.616 5,493 3,084 4,851 85,044 73,240 5,747 2,427 ,795 1,835 2,474 May. 72.587 5,480 3,094 5,264 86,425 74,022 5,753 2,525 ,911 2,214 2,616 June. 73,631 5,413 3,357 5,206 87,607 75,449 6,042 2,890 ,985 1,241 2.556 July. 74,525 5,459 2,963 5,012 87,959 75,467 6,047 2,979 ,010 1,456 2:551 Aug. 75,542 5,448 2,924 5,117 89,031 76,115 6,047 3,071 ,999 1,799 2.518 Sept. 76,385 5,490 3,012 5,194 90,081 76,985 6,063 3,166 2,006 1,861 2,472 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 Sayings 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

1664 FEDERAL FINANCE FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Derivation of U S. iGrovernment cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net rects. Bu n d e g t et, f T P u r l n u u d s s : s t g I L n o e t v s r t s a . : * - E r T e q c o u t t a s a . l l 2 s: Budget f T P u l r n u u d s s : s t m A L d e e n j s u t s s s : t 3 - E p T q a o u y t a t a s l l s . : pa o y r ts. & C (d d h a i i e a r n g b n e e t c g n t e .) a I t g L n r e e b v u n s e y s s . s t : s t & , L N c d e a e o s s b n s h t : - Eq N u e a t 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 24,54? 4,268 104,738 -6,809 6,791 -434 470 6,755 Fiscal year—1959 67,915 16,950 3,161 81,660 80.34? 18,46? 4,002 94,804-13,144 9,656 -1,181 2,160 8,678 1960 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 1962* 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 4C,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 41,165 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 Oct 3,141 979 239 3,872 1,796 1,994 405 9,385 -5,512 1,934 -905 64 2,775 Nov 6,424 2,438 304 8,554 1 1,958 225 9,218 -663 1,519 396 417 707 Dec 7,967 1,484 577 8,868 1,160 1,934 519 8,576 292 -716 -860 114 30 1962 Jan 5,357 866 250 5,968 1,395 2,322 991 8,726 -2,758 608 -737 102 1,243 Feb 6,729 2,743 -98 9,567 f 2,077 -82 8,967 600 450 366 31 53 Mar 9,104 1,828 245 10,685 ,749 2,040 1,525 8,263 2,422 -641 329 223 -1,193 Apr 5,754 1,587 279 7,060 ,789 1,867 83 9,074 -2,014 784 -737 39 1,482 May 7,024 4,053 222 10,850 1,591 -340 9,160 1,690 2,386 2,168 85 133 June* 11,566 2,586 1,106 13,042 ,983 2,761 741 9,503 3,539 -675 581 41 -1,296 July 3,566 1,194 190 4,567 - 252 1,859 -203 9,314 -4,747 -62 -940 101 11% Aus 7,089 3,447 204 10,328" i5,541 2,082 46 10,577 -249 4,266 1,511 411 2,344 Sept 10,053 1,622 532 11,140 1 'ill 2, 1,049 8,639 2,501 -2,309 -624 21 -1,706 Oct 3,030 1,377 253 4,150 5,524 2, 197 573 10,149 -5,998 2,974 -353 121 3,206 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 Tr ( e e a n s d ur o er f 's p e a r c io co d u ) nt Period Agencies& trusts Change Operating bal. s B d u u e r o f d p i r c g lu i e t s t T fu 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 r a c f k n .4 e c t e in I G n s e U v o c e v . . s t 4 t . S , . p d g d u i r r i e b o n e b s l c i t s c t T o r H u e t a e s s l i u d d r e y a T u c r c r e e o r a u ' s n s - t Balance b F a . n R ks . a l T a c o n c a a t d x n s. O as n t s h e e t e t r s Fiscal year 1959 -12,427 -1,511 -29 71 1,112 i3,363 -23 -4,399 5,350 535 3,744 1,071 I960 1,224 -359 -149 1,023 -714 ,625 -4 2,654 8,005 504 6,458 1,043 1961 -3,856 565 285 -733 -435 >,640 -222 -1,311 6,694 408 5 453 833 1962* -6,308 219 568 658 -445 (),230 186 3,736 10,430 612 8,815 1,003 Half year: I960—July-Dec -4,888 -341 19 -493 275 5,886 52 -1,594 6,411 485 5,165 761 1961—Jan.-June 1,032 906 266 -240 -710 -' ,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.-JuneP 1,031 1,557 705 264 -1,666 >,032 -13 3,936 10,430 612 8,815 1,003 Month: 1961—Oct -4,655 -1,015 170 33 828 ,911 30 -2,759 6,197 502 4 834 861 Nov -1,060 479 -560 28 -191 ,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 >,222 -319 2,145 8,140 526 6 623 991 June* 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 Aug -1,452 1,365 -356 46 -1,470 L966 -52 2,151 8,530 478 7 210 842 Sept 2,727 -739 541 41 572 -2,344 60 738 9,268 400 7,919 949 Oct ... -5,494 -821 151 10 796 2,569 -39 -2,750 6,518 513 5,131 874 1 Primarily interest payments by Treasury to trust accounts and accumu- 4 Excludes net transactions of govt. sponsored enterprises. lations to U. S. employees trust funds. 5 Primarily military defense, military assistance, and atomic energy. 2 Includes small adjustments not shown separately. 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 1665 FEDERAL FISCAL OPERATIONS: DETAILS (In millions of dollars) Budget receipts Selected excise taxes (IRS data) Transfers to trusts Indiv. taxes Period Net 2 O ag ld e - H w ig ay h- R t r i . r e e - R . . fu R n e d - s Total W he it l h d - Other C r t a a o t x i r o e p s n o- ta c E i x x s e e - s p m t E a l x o e m e n 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 - Fiscal year—1959... 67,915 7,920 2,074 525 5,114 83,90429,001 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 1962*.. 81,360 11,557 2,949 570 6,265 103,78636,216 14,404 21,296 12,749 12,726 6,395 3,341 2,026 5,536 Half year: 1960—July-Dec... 35,329 4,762 1,497 297 872 43,070 16,616 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*. 45,534 6,816 1,416 292 5,380 60,21118,564 11,215 13,037 6,355 7,702 3,338 1,587 991 2,880 Month: 1961—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 1,106 450 961 257 148 Aug 7,089 1,699 332 86 193 9,445 5,298 169 431 1,188 1,786 573 289 197 n.a. Sept 10,053 911 287 50 111 11,414 2,980 2,092 3,533 1,103 962 744 290 171 Oct 3,030 536 276 14 200 4,068 1,156 235 460 1,150 551 516 n.a. Budget expenditures Period Total f t e i N n d o s e n a e - - a l 5 a I f n fa t i l r . s s S e p r a e a r - c c e h c A ul g tu ri 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 de c i o n v o u g e m s l - . . l H w ab e e o l a f 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 1,832 401 4,882 1,714 1,963 122 3,690 866 5,266 9,266 1,542 1961... 81,515 47,494 2,500 744 5,173 2,006 2,573 320 4,244 943 5,414 9,050 1,709 1962*.. 87,668 51,042 2,771 1,257 6,036 2,133 2,755 335 4,425 1,076 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—Oct 7,796 4,067 363 75 912 220 219 113 413 69 449 718 187 Nov 7,485 4,261 326 97 486 188 176 105 459 54 452 744 138 Dec 7,160 4,286 172 80 550 166 206 -21 409 68 485 788 157 1962—Jan 7,395 4,290 237 96 394 154 190 41 467 113 503 808 186 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 19 367 102 449 733 161 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* 7,983 4,970 246 142 562 196 290 -105 394 116 399 847 158 July 7,252 3,954 95 135 664 191 156 190 460 84 442 834 138 Aug 8,541 4,448 276 187 ,126 247 300 23 348 131 492 806 195 Sept 7,327 4,035 204 141 570 268 224 -19 415 125 401 813 150 Oct 8,524 4,610 358 187 978 231 232 -23 454 61 440 826 182 1960 1961 1962 1960 1961 1962 Item IV II III IV II III IV III IV II III Seasonally adjusted Not seasonally adjusted Cash budget: Receipts... 24.6 23.3 24.6 24.9 25.3 24.6 26.8 27.6 20.6 24.8 28.5 23.4 21.3 26.2 31.0 26.0 Payments.. 24.3 25.1 26.5 26.2 26.9 27.8 26.8 28.0 24.5 23.4 27.4 26.7 27.2 26.0 27.7 28.5 Net .3 18 -1.9 1.4 -1.6 -3.2 -.3 -3.9 1.4 1.1 -3.3 5.9 3 3.2 -2.5 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1666 U. S. GOVERNMENT SECURITIES TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 Total Total Marketable Nonmarketable End of period gross gross Con- Special debt* direct vert- issues6 debt 2 Total Total Bills Certifi- Notes Bonds 4 b i o b n le ds Total 5 S in a g v s 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—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 43.8 302.3 301.8 252.5 199.3 43.6 20.4 58.1 77.2 4.2 49.0 47.7 45.4 Sept . . 300.0 299.5 251.0 197.9 42.2 17.8 58.1 79.8 4.1 48.9 47.7 44.6 Oct 302.6 302.1 254.3 201.3 46.1 17.9 57.6 79.7 4.0 48.9 47.7 43.9 Nov 7 305.9 305.4 257.2 204.2 47.8 22.7 53.7 80.0 4.0 49.0 47.7 44.2 1 Includes some debt not subject to statutory debt limitation (amounting 5 Includes Series A investment bonds, depositary bonds, armed forces to $372 million on Nov. 30, 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 $12,162 million on Oct. 31, 1962. 7 Includes $1.4 billion of 2ty per cent partially tax-exempt bonds, 4 Includes Treasury bonds and minor amounts of Panama Canal and acquired by Treasury for retirement on Dec. 15, 1962, in exchange for postal savings bonds. various issues on Nov. 15, 1962. NOTE.—Based on daily statement of U. S. Treasury 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 . n u S v c d s . i t t e . s B F a . n R k . s Total b m C a e n o r k m c 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 v c a d a t t e s l . Savi I n n g d s ividu O al th s er n F a i o t n a i r n o t e e n d i r g a - n l3 O i t m n o v t r i h s s e e c s r « . funds 1 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 '18.7 45.7 '19.3 13.0 11.2 1961—Oct 296.0 55.0 28.3 212.9 67.3 6.2 11.6 19.5 18.9 46.4 '18.4 12.9 11.6 Nov 297.3 55.4 29.2 212.7 66.9 6.2 11.5 20.3 '18.6 46.5 '18.6 13.1 11.0 Dec 296.5 54.5 28.9 213.1 67.2 6.1 11.4 19.4 r18.7 46.4 '18.8 13.4 11.6 1962—Jan 296.9 53.8 28.5 214.6 67.8 6.2 11.6 20.4 '19.0 46.5 '18.8 12.9 11.2 Feb 297.4 54.2 28.4 214.8 66.6 6.3 11.5 21.4 19.1 46.6 '18.8 13.0 11.5 Mar 296.5 54.5 29.1 213.0 64.0 6.6 11.5 20.2 '19.5 46.6 '19.1 13.6 12.0 297.4 53.7 29.2 214.4 65.3 6.3 11.5 20.4 rl9.6 46.6 '18.9 13.3 12.5 May 299.6 55.9 29.6 214.1 65.2 6.3 11.5 20.8 '19.7 46.6 '18.5 13.5 11.8 June 298.6 56.5 29.7 212.5 65.0 6.3 11.3 19.3 '19.7 46.6 '18.5 14.1 11.6 July 298.3 55.5 29.8 213.0 64.5 6.3 11.5 20.0 '19.9 46.7 '18.7 14.2 11.3 Aug 302.3 57.1 30.4 214.9 64.5 6.3 11.5 21.1 '19.9 46.8 '18.8 14.6 11.5 Sept 300.0 56.4 29.8 213.7 64.6 6.3 11.4 '19.1 '19.8 46.8 '18.8 15.2 11.9 Oct 302.6 56.1 30.2 216.3 65.9 6.1 11.5 20.2 19.5 46.9 18.6 15.3 12.3 1 Includes the Postal Savings System. * 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 amounted 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. Gort. 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 1667 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 1 y 0 e - a 2 rs 0 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—Sept. 30.. 197,951 84,467 42,236 42,231 58,158 32,411 7,353 15,562 Oct. 31 201,311 88,284 46,139 42,145 57,728 32,403 7,348 15,548 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—Sept. 30.. 9,343 1,220 605 615 1,345 2,814 1,407 2,557 Oct. 31 9,645 1,513 923 590 1,345 2,821 1,409 2,557 Federal Reserve Banks: 1959—Dec. 31 26,648 18,654 2,626 16,028 6,524 677 765 28 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—Sept. 30 29,825 17,200 2,373 14,827 10,127 2,300 135 64 Oct. 31.. .. 30,201 17,491 2,516 14,975 10,183 2,325 138 65 Held by public: 1959—Dec. 31.. 154,227 58,765 36,757 22,008 53,176 21,066 13,812 7,407 1960—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—Sept. 30.. 158,783 66,047 39,258 26,789 46,686 27,297 5,811 12,941 Oct. 31. . 161,465 69,280 42,700 26,580 46,200 27,257 5,801 12,926 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—Sept. 30.. 56,390 19,696 6,850 12,846 24,968 10,969 350 467 Oct. 31.. 57,404 21,010 8,352 12,658 24,651 10,938 349 456 Mutual savings banks: 1959—Dec. 31 6,129 486 191 295 1,401 2,254 1,427 560 I960—Dec. 31.... 5,944 480 144 336 1,544 1,849 897 1,174 1961—Dec. 31 5,867 6S6 181 505 1,514 1,708 662 1,298 1962—Sept. 30 5,985 702 347 355 1,448 2,115 392 1,328 Oct. 31... 5,850 649 267 382 1,415 2,070 395 1,321 Insurance companies: 1959—Dec. 31... 9,175 1,024 416 608 2,279 2,422 2,396 1,054 I960—Dec. 31 9,001 940 341 599 2,508 2,076 1,433 2,644 1961—Dec. 31 9,020 1,228 442 786 2,222 1,625 1,274 2,671 1962—Sept. 30 9,226 1,350 536 814 1,977 2,043 945 2,910 Oct. 31 9,289 1,348 582 766 2,006 2,077 948 2,910 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—Sept. 30 8,956 7,442 4,609 2,833 1,316 160 17 21 Oct. 31 9,923 8,321 5,812 2,509 1,401 162 17 22 Savings and loan associations: 1959—Dec. 31 1960—Dec. 31 2,454 322 163 159 858 473 396 406 1961—Dec. 31 2,760 446 155 291 895 617 371 431 1962—Sept. 30 2,844 321 153 168 727 1,112 193 490 Oct. 31 2,844 389 161 227 708 1,063 200 485 State and local governments: 2 1959—Dec. 31..... I960—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—Sept. 30 11,862 4,711 3,336 1,375 965 1,196 966 4,024 Oct. 31... 11,746 4,508 3,181 1,327 977 1,268 964 4,029 All others: 1959—Dec. 31 I960—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—Sept. 30 63,520 31,825 23,429 8,395 15,284 9,762 2,948 3,701 Oct. 31 64,408 33,056 24,345 8,711 15,043 9,679 2,927 3,703 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 6,176 commercial banks, 508 mutual savings banks, and 812 insurance for Dec. 1960-Sept. 1961 shown in the Feb. 1962 Treasury Bull.t pp. 59-60. 4 co 8 s 8 . s c a o v m in b g i s n e a d n ; d (2 lo ) a a n b a o s u s t n 5 s. 0 ; p an er d c ( e 3 n ) t a b b y o u th t e 6 0 4 7 p 3 e r n o c n e f n i t n a b n y c i 4 a 8 l 0 c S or ta p t s e , a a n nd d 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

1668 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 W 1 i y th e i a n r y 1 e - a 5 rs y 5 e - a 1 r 0 s 10 A f y t e e a r rs U.S. m b C e a o r n c m k ia s - l o A th l e l r securities Govt. Other securities 1961—Oct 1.690 1.389 254 27 20 547 38 695 410 61 Nov 1,686 1,295 309 41 43 514 33 691 448 90 Dec 1,653 ,328 228 45 52 540 29 698 386 69 1962—Jan 1,717 1,478 149 64 26 538 25 716 438 98 Feb 1,970 L,52O 295 95 60 565 36 832 537 83 Mar [,675 1,332 217 69 56 569 33 659 414 80 Apr 1,689 1,350 180 114 45 541 42 653 453 90 May 1,694 1,338 218 114 24 564 35 662 433 90 1,681 1,357 191 100 33 553 29 652 446 89 July 1,682 1,457 139 63 23 529 34 621 498 82 Aug 1,603 1,318 158 94 33 542 27 600 435 78 Sept 1,913 1,432 293 147 40 571 42 766 534 105 Oct 1 967 1,517 263 159 28 682 40 744 502 115 Week ending— 1962—Oct 3 2,209 1,689 324 154 42 636 34 857 681 83 10 1,714 1,287 261 137 28 651 33 649 381 170 17 2,064 1,678 247 119 20 685 37 796 546 110 24 1,622 1,260 180 142 40 594 42 600 387 108 31 2,378 1,799 331 229 20 »781 '51 '925 '622 »"89 Nov 7 2,000 1,511 234 222 33 674 36 805 486 61 14 1,967 1,432 255 239 40 661 48 820 438 53 21 . 1,601 1,109 278 188 25 502 28 637 433 108 28 1,574 1,065 265 206 38 405 23 633 513 46 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. tsA. veAravgeersa goef daily figures based on the number of trading do not include allotments of and exchanges for new U. S. Govt. securities, days in th 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 U.S. Commercial banks Period mat A ur l i l ties W 1 i y th e i a n r y 1 e - a 5 rs 5 A y f e te a r rs se a c g u e r n i c ti y es Period sou A r l c l es Y N o e r w k w E h ls e e r - e C t o io rp n o s r * a- o A th l e l r City 1961—Oct 3,227 3,044 194 -12 105 Nov 3,807 3,272 464 71 140 1961—Oct 3,077 926 735 1,029 387 Dec . . 2,939 2,655 260 23 86 Nov 3,915 1,173 870 1,477 393 Dec 3,088 725 744 1,345 275 1962—Jan 2,778 2,589 184 5 93 Feb 2,265 1,914 297 54 115 1962—Jan 2,740 482 596 1,341 320 Mar 3,056 2,721 228 106 168 Feb 2,296 426 449 1,218 203 Apr 3,771 3,388 252 131 193 Mar 3,025 855 637 1,299 235 May 3,642 2,985 403 255 196 Apr 3,621 976 835 1,354 456 June 3,777 3,398 261 118 293 May 3,738 978 769 1,612 379 July 2,881 2,818 94 -32 232 June 3,900 1,092 720 1,798 290 Aug 2,647 2,484 72 91 165 July 3,053 636 521 1,631 266 Sept 3,177 2,643 323 211 190 Aug 2,597 460 405 1,438 294 Oct 3,569 2,991 383 194 248 Sept 3,332 943 660 1,307 421 Oct 3,528 1,074 707 1.301 445 Week ending— Week ending— 1962—Sept. 5.. 2,923 2,892 17 14 167 3,087 2,988 70 29 154 1962—Sept. 5... 2,990 519 494 1,490 488 19^ 3,128 2,265 490 372 167 3,145 660 479 1,487 519 26.. 3,254 2,443 506 305 230 19!'.! 3,903 1,395 793 1,263 453 26... 3,261 1,014 776 1,159 312 Oct. 3. . 3,375 2,761 377 236 257 10.. 3,326 2,729 361 236 283 Oct. 3... 3,138 998 709 1,149 282 17.. 3,649 3,087 394 169 287 10.. . 3,310 990 639 1,257 424 24.. 3,544 3,011 384 148 225 17 3 535 1,134 684 1,237 480 31.. 3,929 3,332 404 191 203 24. . . 3,618 961 779 1,382 496 31. . . 3,874 1,287 752 1,378 457 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 1669 U. S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, OUTSTANDING NOVEMBER 30,1962 (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. Dec. 6,1962. 2,003 May 23, 1963 800 Apr. 1,1965 1 466 Mar. 15, 1966-71... 2' 1,412 Dec. 13, 1962. 2,001 May 31, 1963 801 May 15, 1965 4' 2,113 June 15, 1967-72..."' 1,328 Dec. 20, 1962. 2,002 July 15, 1963 2,004 Oct. 1, 1 9 6 5V 315 Sept. 15, 1967-72,..- 1,952 Dec. 27, 1962. 2,001 Oct. 15, 1963 2,500 Nov. 15, 1965 3,287 Nov. 15, 1967 3! 3,604 Jan. 3, 1963. 2,001 Feb. 15, 1966 3! 3,114 Dec. 15, 1967-72... 2' 2,810 J J J F F J J a a a a a e e n n n n b n b . . . . . . . 2 3 1 1 1 1 7 4 1 4 7 0 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 3 3 3 3 3 3 3 . . . . . . . 2 2 2 2 2 2 2 , , , , , , , 0 0 1 1 1 1 1 0 0 0 0 0 0 0 1 1 3 0 1 1 6 Ce F A M N rt e u i o a b f g v y i . . c . a 1 1 1 1 te 5 5 5 5 s , , , , 1 1 1 1 9 9 9 9 6 6 6 6 3 3 3 3 3 3 3 3 1 V % y 4 8 i 5 4 5 6 , , , , 7 8 2 8 1 5 8 5 9 1 4 6 A A O A A O u p c p u c g t r t r g . . . . . . 1 1 1 1 1 5 5 1 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 7 6 7 7 6 6 V 3 i I V 3 y V / 4 A 2 i i 4 5 , , 4 2 6 2 3 5 8 7 5 7 1 4 2 5 7 0 3 O M A A N F F e e u u c o a b b g g t v y . . . . . . 1 1 1 1 1 1 5 5 5 5 5 1 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 7 6 7 6 7 9 9 2 8 1 8 1 3 I 3 V " % * 4 4 4 4 2 2 2 2 1 1 1 , , , , , , , 5 2 8 4 8 2 3 5 4 0 3 0 6 4 8 4 4 8 6 0 4 Feb. 21, 1963. 2,100 Treasury notes Aug. 15, 1972 4 2,579 Feb. 28, 1963. 2,101 Feb. 15, 1963 2% 1,487 Treasury bonds Nov. 15, 1974 3% 1,171 Mar. 7, 1963. 800 Feb. 15,1963 3% 2,259 Dec. 15, 1959-62.. 218 May 15, 1975-85.. AlA 470 Mar. 14, 1963. 801 Apr. 1,1963 \Vi 533 Dec. 15, 1960-652. 1,485 June 15, 1978-83... 3% 1,593 Mar. 21, 1963. 800 May 15, 1963 4 1,183 June 15, 1962-67.. 1,462 Feb. 15, 1980 4 1,446 Mar. 22, 19631 ,005 May 15,1963 3*4 3,027 Aug. 15,1963 4,317 Nov. 15, 1980 3Vi 1,915 Mar. 28, 1963. 700 Oct. 1,1963 IV? 506 Dec. 15, 1963-68.. 1,816 May 15, 1985 3VA 1,131 Apr. 4, 1963. 701 Nov. 15, 1963 4% 3,011 Feb. 15, 1964 2,700 Feb. 15, 1990 3Vi 4,915 Apr. 11, 1963. 701 Apr. 1, 1964 li/i 457 June 15, 1964-69.. 2,633 Aug. 15, 1987-92... AVA 365 Apr. 15, 1963. 2,001 May 15, 1964 4% 4,933 Dec. 15, 1964-69.. 2,545 Feb. 15, 1995 3 2,612 Apr. 18, 1963. 700 May 15, 1964 3% 3,893 Feb. 15, 1965 4,682 Nov. 15, 1998 ZVi 4,460 Apr. 25, 1963. 700 Aug. 15, 1964 5 2,316 Mar. 15, 1965-70.. 2,423 May 2,1963. 701 Aug. 15, 1964 334 5,019 May 15, 1966 3,597 Convertible bonds May 9, 1963. 702 Oct. 1,1964 11/2 490 Aug. 15, 1966 1,484 Investment Series B May 16, 1963. 701 Nov. 15, 1964 4% 4,195 Nov. 15, 1966 2,438 Apr. 1, 1975-80... 23^ 4,024 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 3 Total Use of proceeds 3 amount Period deliv- Total g G o a e t b a n i l l o e i- n r- s R n e u v e e- 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 c E a d ti u o - n b R r a o i n d a d g d e s s i U tie ti s l - 6 H in o g u s 7 - V a a e n i t d s 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 1 333 1955 5,976 3,770 1,730 474 2 1,408 1,097 3,472 5,911 1,516 1 362 881 570 169 1 414 1956 5,446 3,577 1,626 199 44 800 983 3,664 5,383 1,455 698 1,399 258 110 1,464 1957 8 6,925 4,792 1,967 66 99 1,489 1,272 4,163 6,568 6,874 2,524 1,036 1,516 113 333 1,352 1958 7,526 5,447 1,777 187 115 1,993 1,371 4,162 7,708 7,441 2,617 1,164 1,412 251 339 1 657 1959 7,695 4,778 2,409 333 176 1,686 2,120 3,889 7,423 7,588 2,314 844 1,989 402 355 1 683 I960 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 1,894 1961 8,562 5,721 2,406 315 120 1,928 2,164 4,470 8,298 8,460 2,821 1,167 1,700 385 478 1 909 1961—July 488 318 103 52 16 115 111 262 965 485 160 69 93 52 110 Aug.. 605 423 112 60 10 134 163 309 517 604 281 55 86 61 121 S O e c p t t . . . . . • 7 68 4 0 2 5 5 7 1 0 6 1 1 5 6 0 8 1 4 5 2 2 2 8 5 9 1 7 2 6 4 3 3 7 2 8 8 5 7 7 1 8 6 7 6 3 7 4 8 2 1 8 9 2 3 4 5 9 8 1 1 4 2 7 5 3 4 0 1 6 0 5 0 2 1 0 5 8 2 Nov 793 376 326 79 12 103 402 288 614 789 150 284 101 80 175 Dec... 675 371 297 1 6 39 325 311 877 606 194 112 162 9 128 1962 Jan . 885 497 348 33 7 218 348 320 706 876 324 252 94 33 172 Feb... 1,189 803 299 80 7 202 296 691 805 1,132 386 265 157 87 25 211 Mar . 644 395 241 8 72 198 374 1,130 628 220 137 147 4 120 Apr... 896 601 180 101 14 66 266 563 704 874 274 111 152 106 230 May 934 668 256 10 206 230 498 896 910 348 31 233 58 241 Juner. 789 554 206 29 173 163 453 841 784 326 67 128 100 164 July 632 392 231 9 34 179 419 839 594 186 61 145 202 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. 7 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

1670 SECURITY ISSUES NEW SECURITY ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all isues ! 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 S d a t . e l Other * Total Total P li u c b ly - v P at r e i- ly Pre- Com- Total Total m N on ew ey6 O p p o t u h s r e e - s r s ri e o t c i f e u s offered placed ferred mon 1954... 29,765 12,532 458 6,969 289 9,516 7,488 4,003 3 484 816 1,213 9,365 1 490 6 780 709 1,875 1955 26,772 9,628 746 5,977 182 10,240 7,420 4,119 3,301 635 2,185 10,049 8,821 I 957 864 1,227 1956 22,405 5,517 169 5,446 334 10,939 8,002 4,225 3,777 636 2,301 10,749 10,384 663 721 364 1957 30,571 9.601 572 7 6,958 557 12,884 9,957 6,118 3,839 411 2,516 12,661 12,447 784 663 214 11 1958 34,443 12,063 2,321 7,449 1,052 11,558 9,653 6,332 3,320 571 1,334 11,372 10.823 907 915 549 1 1 9 9 5 6 9 0 2 3 7 1 , , 5 0 4 7 1 4 1 7 2 , , 9 3 0 2 6 2 1,6 7 7 0 2 7 7 7, , 6 2 8 3 1 0 6 57 1 9 6 1 9 0 , , 7 1 4 5 8 4 7 8 , ,0 1 8 9 1 0 4 3 , , 8 5 0 5 6 7 3 3 , , 2 6 7 3 5 2 4 5 0 3 9 1 2 1 , , 0 66 2 4 7 9 9 , , 9 5 2 2 4 7 < ) > , , 3 6 9 5 2 3 98 8 7 5 5 7 8 8 8 8 1 9 4 5 2 1 7 3 1 5 1961 35.494 12.253 1,448 8.345 302 13,147 9,425 4,706 4,720 449 3,273 12,874 I ,979 10829 1,150 895 1961—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 ,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 4,075 1,506 '*46i 877 14 1,217 881 654 227 120 216 1,185 1,113 033 80 72 M^y!!!!! 2,149 352 897 99 801 667 247 420 14 120 785 760 1 621 139 25 June 2,422 363 760 67 1.232 1,063 488 575 46 124 1,214 1,132 953 180 82 July '1,663 358 641 '34 '630 '565 200 '366 32 r621 r582 '504 '78 '39 Aug..... '4,056 2,408 150 559 17 '922 '840 477 '363 24 58 '907 '749 '620 '129 '159 Sept 1,568 300 175 426 34 632 472 176 295 51 110 6!8 579 441 138 39 ]Proposed ate• of net proceeds, major croups of corporate isimeirs 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 al f i e n s a t n a 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 capital* secu- capital* secu- capital* secu- capital* secu- capital* secu- capital * securities rities rities rities rities rities 1954 2,044 190 831 93 501 770 ?,675 990 651 60 788 273 1955 2,397 533 769 51 544 2,254 174 1,045 77 1,812 56 1956 3,336 243 682 51 694 20 ,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 18 ,605 138 1,294 118 1,014 47 1959 1,941 70 812 28 942 ,189 15 70*7 1,801 6 I960 1,997 79 794 30 672 39 ,754 51 1,036 1 2,401 71 1961 3,708 306 1,095 46 680 76 7,892 104 1,423 378 2,176 36 1961 Sept 252 8 76 1 28 111 It 105 1 Oct 271 28 146 1 60 • 306 8 2* 281 2 Nov 215 10 61 56 362 8C) 174 2 Dec 306 18 151 7 32 1 168 40 4:> 302 6 1962—-Jan 205 14 99 1 23 1 89 24 71 102 1 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 81i * 134 1 May 270 5 100 1 38 198 16 64 91 3 342 14 90 4 48 * 410 56 75) 163 7 July '217 '31 '28 '24 '118 r4 8!I H '107 Aug '218 4 '47 7 71 '110 ) '183 '3 Sept 166 21 56 1 54 148 14 6"1 i 88 1 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. * All issues other than those for retirement of securities. * Foreign governments, International Bank for Reconstruction and Development, and domestic nonprofit organisations. NOTE.—Securities and Exchange Commission estimates of new issues 5 Estimated gross proceeds less cost of flotation. maturing m 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 1671 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1961 1962 Industry 1957 1958 1959 1960 1961 II III IV 1 TI III Manufacturing Total (180 corps.): Sales 14 105,134 118,4? 3 ?8 651 31 ?33 ?9 541 33,?07 33 ?91 r34 602 986 Profits after taxes 1 7 3. , 3 1 4 7 9 7 10 5 , , 4 7 6 1 6 4 1 7 4, , 0 4 9 4 0 0 1 7 3 , 4 1 6 2 3 1 1 7 3, , ? 1 9 8 3 0 14 6 3 93 6 3 1 , , 4 8 7 3 8 8 tt 9 6 6 1 1 8 4 2 , ,2 1 8 6 8 1 2 3, , 9 0 0 3 8 3 ' ' 2 4 , , 0 0 9 9 6 6 I,7 ?4 1 1 0 Dividends 4,192 4,078 4 342 4,464 4,710 1 103 1,111 \, 117 1,380 1,154 1,158 1 163 Nondurable goods industries (79 corps.): * Sales 41,704 41,541 45 44? 47 ?77 49,??6 11 831 P 133 P ?05 13,056 1?793 12 984 P 999 Profits before taxes 5,010 4,40? 5 648 5 570 5,659 1 374 1,385 11406 \s 545 461 1 501 515 Profits after taxes 2,944 2 574 3 210 3 210 3,246 757 772 796 921 816 815 835 Dividends 1776 1785 1912 1953 2,036 486 486 488 577 512 513 516 Durable goods industries (101 corps.):2 Sales 72 525 63 593 72 981 75 849 73,406 16820 19,100 17,336 20, 151 20 499 '21,619 18987 P P r r o o f f i i t t s s b af e t f e o r r e ta t x a e x s es 4 8 2 3 3 3 3 9 6 3 0 1 6 4 5 0 8 4 4 2 4 3 ? 1 7 3 9 8 1 9 1 3 7 3, , 9 6 3 3 5 4 1 6 36 7 8 9 ? 1 , , 0 0 9 6 4 6 1J8 55 2 5 2 1, 6 3 1 6 6 7 ? 4 2 4 1 7 7 ' ' 2 1 . , 5 2 9 8 5 2 17 8 ^ 74 6 Dividends 416 294 430 510 2,674 618 625 629 803 642 644 647 Selected industries: Foods and kindred products (25 corps.): Sales 9 987 10707 303 901 12 578 3 021 3 154 3 233 3,169 3 231 3.267 3 331 10?4 15? l\ ?74 3?8 14^4 319 360 379 365 336 355 179 Profits after taxes.. . .... 497 555 604 631 672 150 170 179 174 160 167 181 Dividends 289 312 344 367 392 95 96 99 101 103 103 104 Chemicals and allied products (21 corps.): Sales 10 669 10 390 11 979 1? 411 P 788 979 3 ?50 ?10 3,348 37? 3 567 "t467 Profits before taxes 1 823 1 538 2 187 2 010 2 015 438 514 499 564 545 586 571 Profits after taxes. . . .. 948 829 131 1061 1063 229 267 260 306 279 297 294 Dividends 737 717 799 795 843 193 189 191 270 198 196 199 Petroleum refining (16 corps.): Sales 13463 1? 838 13 37? 13815 14409 488 3 398 474 4 100 3 771 3 612 T,730 Profits before taxes 1 3?,5 919 1 187 ?67 1 ^55 354 ?70 ?9? 339 343 300 136 Profits after taxes 075- 791 969 1026 1011 272 214 243 283 262 227 251 Dividends 51? 516 518 5?1 578 1?9 134 131 133 139 142 141 Primary metals and products (35 corps.): Sales ?? 468 19 ?1 035 ?0 898 ''O 155 4,396 5 189 5 ?35 5 335 5 733 '5 535 4 978 Profits before taxes 2 977 182 2 331 ,215 ?020 309 560 550 602 620 505 367 Profits after taxes . . ... 540 1 154 222 1 170 090 166 295 299 329 320 '269 194 Dividends 873 802 831 840 844 207 208 208 221 209 210 209 Machinery (25 corps.): Sales 15 115 14 685 17095 16 8?6 17 531 4,137 4 367 4 ?95 4 73? 4 537 4 916 4 647 Profits before taxes • 1,457 1,463 ,890 1,499 1675 362 398 384 530 454 490 436 Profits after taxes . 729 734 934 763 837 178 202 191 267 225 '240 221 Dividends 416 422 448 482 497 121 125 124 128 129 '129 132 Automobiles and equipment (14 corps.): Sales ?3 453 18469 731 ?5 738 ?? 781 5 793 6 309 4 604 6 577 6 904 '7 515 5 708 Profits before taxes 701 1 33? 2 985 3 185 788 478 840 319 1 151 1,096 '1.253 D Pr iv of id it e s n a d f s ter taxes . .. ..... 1,3 8 5 0 4 5 7 75 0 8 6 1,4 8 7 0 9 7 1,5 8 2 3 7 3 14 9 0 6 8 7 2 ? 2 0 3 5 4 ? 1 0 7 7 ? 1 0 7 7 3 5 3 9 4 6 8 5 ? 3 1 1 5 '596 2 ? 8 1 7 6 Public Utility Railroad: Operating revenue . 10,491 9,565 9,825 9,514 9,189 2,129 2,289 2,355 2 414 2,296 2,408 Profits before taxes 1,058 843 845 648 6? 5 77 137 184 ?78 133 186 737 60? 578 445 38? -1? 74 17? ?00 66 105 438 419 406 385 356 86 91 67 IP 84 91 Electric power: Operating revenue . .. 9,670 10,195 11,129 11,906 12,594 3,314 3,007 3,050 3,223 3,399 '3.209 3,260 Profits before taxes 2,579 2,704 2,983 3,163 3,331 918 767 802 844 1,051 835 887 Profits after taxes 1,413 1,519 1,655 1,793 1,894 523 447 447 477 585 472 488 Dividends 1,069 1,134 1 1,307 1,375 343 344 335 353 366 T71 356 Telephone: Operating revenue 6,467 6,939 7,572 8,111 8,615 2,090 2,139 2,156 2,230 2,245 2.296 2.300 Profits before taxes . ,562 1,860 2,153 2,326 2,478 587 614 620 657 648 678 683 Profits after taxes., 788 1,073 1,155 1?33 790 307 310 376 3?0 335 337 Dividends •• 613 674 743 806 867 210 214 218 225 231 232 235 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

1672 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 1955 12,474 5,599 6,875 7,571 3,383 4,188 4,903 2,216 2,687 1958 37.4 18.6 18.8 12.4 6.4 1956 13,201 5,038 8,162 7,934 3,203 4,731 5,267 1,836 3,432 1959 47.7 23.2 24.5 13.7 10.8 1957 14.350 3,609 10,741 9.638 2,584 7,053 4,712 1,024 3.688 1960 45.4 22.4 23.0 14.4 8.6 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—11.. 51.9 25.2 26.6 13.4 13.3 I960 12,958 4,760 8,198 8,044 3,010 5,034 4,914 1,751 3,164 III. 46.5 22.6 23.9 14.1 9.8 1961 16,745 6,967 9,778 9,205 4,090 5,114 7,540 2,876 4,664 IV.. 45.3 22.0 23.3 14.2 9.0 1961 n 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 m., 46.3 22.6 23.7 14.9 8.7 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 IV.. II 4,097 1,633 2,463 2,606 793 1,813 1,491 840 651 1962—1... 50.1 24.4 25.6 15.8 9.8 II.. 50.9 24.9 26.1 15.8 10.3 NOTE.—Securities and Exchange Commission estimates reflect cash transactions only. Unlike data shown on p. 1670 new issues exclude foreign and include offerings of open-end NOTB.—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. 1670. 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 Govt. Inven- Other Total Federal Other securi- tories income ties G U o . v S t . . * Other G U o . v S t . .1 Other taxes 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 2-3 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 L8 103.1 13.5 38.6 1961—III 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 1.8 109.5 14.1 40.3 1962—I 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 ! 8 111.6 13.6 42.4 Ill 142.1 317.5 36.3 18.8 3.4 145.4 100.3 13.3 175.4 1.9 115.7 14.6 43.2 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.1books. banks, savings and loan associations, and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Transportation Year Total M fa i c a n t n u g u r- - M in i g n- Rail- 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 Other1 Quarter Total m M a in n i f n g d g - . T p t o r i a o r n t n a s - - P u u t t i b e il l s i i - c ot A he l r l 2 a T ( r n S a o n t . t u A e a ) a l . l road 1954 26.8 11.0 1.0 .9 1.5 4.2 1.7 6.5 1961—II... 8.6 3.7 .7 1-4 2.9 33.5 1955 28.7 11.4 1.0 .9 1.6 4.3 2.0 7.5 III.. 8.7 3.6 .6 1.5 2.9 34.7 1956 35.1 15.0 1.2 1.2 1.7 4.9 2.7 8.4 IV.. 9.5 4.1 .7 1.5 3.2 35.4 1957 37.0 16.0 ? 1.4 1.8 6.2 3.0 7.4 1958 30.5 11.4 .9 .8 1.5 6.1 2.6 7.2 1962—1... 8.0 3.4 6 l.l 2.9 35 7 1959 32.5 12.1 1.0 .9 2.0 5.7 2.7 8.2 II... 9.5 4.0 .9 3.3 37 0 I960 35.7 14.5 .0 1.0 1.9 5.7 3.1 8.4 III'. 9.6 4.0 .7 .5 3.4 38.4 1961 34.4 13.7 L.O .7 1.9 5.5 3.2 8.5 I\3r 10.3 4.6 .5 3.5 38.4 19623» 37.1 14.8 1.1 .9 2.0 5.5 i: .1 1963—13.. 8.5 3.6 l.l 3.3 37.7 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 1673 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties ]^onfarm Farm ho O ld th e e r r s 2 1- to 4-family houses com M me u r lt c i i f a a l m p i r ly op a e n r d ties 3 End of period h e o A r l ll d s - t F u i i n t c n i i s o a a t n l i n - s - 1 U.S. v I i a d n n u d d a i- ls h e o A r l ll d s - Total t F u i t n in i s o a t n i n - s . 1 O h e o t r h ld s e - r Total t F u in t in i s o a t n i n - s . 1 O h e o t r h ld s e - r h e o A r l ll d s - t F u in i t c n i i s o a a t n i l n - s - 1 h O ol t d h e e r r s4 others 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 I960 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 9.2 1960—11 198.9 151.3 10.6 37.0 186.1 135.9 113.3 22.5 50.2 33.4 16.9 12.8 4.6 8.2 in 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—I»» 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 II v 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 8.9 219.9 168.4 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 UP 236.5 181.6 12.1 42.8 221.5 160.0 135.2 24.8 61.5 41.1 20.4 14.9 5.3 9.7 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) Commercial bank holdings 1 Mutual savings bank holdings2 Residential Residential End of period Other Total Total FH in A - - g V u A ar - - C ve o n n - - n fa o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - O f n a t o 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 1,367 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 1,471 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 1,588 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 1,648 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 1960—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 m 3 28,693 20,399 5,906 2,919 11,574 6,651 1,643 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 1,648 26,935 24,306 7,074 8,986 8,246 2,575 54 1961—1 28,864 20,281 5,793 2,776 11,712 6,906 1,677 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 rv 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 1962—1 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 II 32,194 22,049 6,195 2,593 13,260 8,218 1,927 30,638 27,632 8,662 9,502 9,469 2,954 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 S40 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

1674 REAL ESTATE CREDIT MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total VA- Farm 1 Total VA- Farm Total FHA- guar- Other 1 Total FHA- guar- Other 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 1960. 6,086 5,622 1,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961. 6,785 6,233 1,388 220 4,625 522 44,203 41,033 9,665 6,553 24,815 3,170 1961— Oct.r 579 541 113 24 404 38 43,631 40,486 9,630 6,593 24,263 145 Nov.. 590 543 110 26 407 47 43,815 40,656 9,620 6,566 24,470 159 Dec. 878 826 134 44 648 52 44,241 41,070 9,664 6,552 24,854 171 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 Aug.. 637 597 118 38 441 40 45,576 42,247 10,005 6,412 25,830 3,329 Sept.. 566 530 109 41 380 36 45,758 42,413 10,051 6,403 25,959 3,345 Oct.. 719 673 139 54 480 46 46,051 42,686 10,107 6,397 26,182 3,365 1 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 New Home FHA- VA- Con- Period Sav- Insur- Com- Total i con- pur- Total 2 in- guar- ven- ings & ance merstruc- chase sured anteed tional 2 S.A.2 N.S.A. loan com- cial ings tion panies banks banks 1941 1,379 437 581 4,578 1941. 4,732 1,490 404 1.165 218 1945 1,913 181 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 5,6!7 .858 1956 10,325 3,699 4,620 35,729 1,486 6,643 27,600 1956. 27,088 9,532 1,799 5,458 ,824 1957 10,160 3,484 4,591 40,007 1,643 7,011 31,353 1957. 24,244 9,217 1,472 4.264 ,429 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1958. 27,388 10,516 1,460 5,204 ,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 ,780 1960 14,304 4,678 6,132 60,070 3,524 7,222 49,324 1960... 29,341 12,158 1,318 4,520 ,557 1961 17,364 5,081 7,207 68,833 4,167 7,152 57,514 1961... 31', 157 13.662 1.160 4,997 ,741 1961 1961 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 Jan 1,323 353 550 69,368 4,204 7,161 58,003 1962 Feb 1,303 362 509 69,968 4,241 7,160 58,567 Mar 1,611 464 633 70,769 4,276 7,170 59,323 Jan.. 2,696 2,459 041 88 400 138 Apr 1,661 512 635 71,616 4,312 7,122 60,182 Feb.. 2,682 2,238 971 79 374 114 May 1,857 584 739 72,587 4,332 7,132 61.123 Mar.. 2,670 2,627 172 90 442 120 June 1,936 572 823 73,631 4,355 7,119 62;157 Apr.. 2,745 2,704 210 89 482 131 July 1,839 515 796 74,525 4,379 7,102 63,044 May. 2,836 2,983 350 100 534 154 Aug 2,036 540 920 75,542 4,399 7,093 64,050 June. 2,891 3,075 391 107 542 177 Sept 1,731 495 746 76,385 4,415 7,084 64,886 July.. 2,973 3,134 382 107 549 201 Oct.P 1,953 548 816 77,324 4,427 7,078 65,819 Aug.. 2,933 3,333 501 123 563 201 Sept.. 2,861 285 104 476 183 1 Includes loans for repair, additions and alterations, refinancing, etc. not shown separately. 1 Includes amounts for other lenders, not shown separately. 2 Beginning with 1958 includes shares pledged against mortgage loans. 2 Three-month moving average, seasonally adjusted by Federal Reserve. 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 1675 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMILY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Period Mortgages Prop- Mortgages End of Con- Total h N om ew es h is o E t m i x n - e g s e P c r t o s j - i m pr e i e o m r n t v y t - s e - 2 Total 3 h N om ew es h i o s E t m i x n - e g s period Total Total s F u i H n re - A d - a g V n u t A a e r e - - d ti v o e n n a - l 1945 18.6 4.3 4.1 .2 14.3 1945 665 257 217 20 171 192 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 7 6 3 3, , 7 4 1 6 5 1 1, 8 1 8 3 0 3 1 1, , 3 5 7 0 1 5 5 1 9 3 5 0 6 86 9 9 2 5 3, , 7 8 6 6 1 8 2 3 , ,9 8 1 9 0 0 1,9 8 4 6 8 3 1 1 9 9 5 5 7 8. . . . 1 11 0 7 7 . . 7 6 4 5 7 0 .1 2 1 1 9 6 . . 7 5 3 3 0 0 . . 7 4 6 6 7 0 . . 6 4 1958 6,349 1,666 2,885 929 868 1,865 1,311 549 1959 130.9 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 1960 6,293 2,197 2,403 711 982 1,985 i,554 428 1961* 153.4 59.1 29.5 29.6 94.3 1961 6,546 1,783 2,982 926 855 1,829 1,170 656 I960—II 135.9 55 0 25.2 29.8 80.9 1961—Oct.. 599 148 285 83 83 201 114 86 Ill 138.8 55.7 26.0 29.7 83.2 Nov. 622 174 310 65 73 206 118 87 IV 141.3 56.4 26.7 29.7 84.8 Dec.. 553 153 273 62 65 197 112 84 1961—IP... 143.3 57.1 27.4 29.7 86.2 1962—Jan.. 617 179 301 74 63 227 127 99 II*....... 146.5 57.8 28.0 29.8 88.7 Feb.. 474 150 248 26 50 175 95 80 Ill* 149 9 58 7 28.8 29.9 91.2 Mar. 541 157 261 70 53 205 115 90 IV* .. 153.4 59.1 29.5 29.6 94.3 Apr.. 515 132 240 88 56 182 99 83 May. 560 140 263 87 70 184 96 88 1962—1* 156.0 59 9 30.3 29.6 96.1 J J u u n ly e . . 6 6 4 7 3 8 1 14 3 4 7 2 28 6 9 7 1 1 4 6 3 4 9 8 6 1 2 21 0 9 7 1 10 0 9 8 1 9 1 9 0 UP 160.0 60.4 30.9 29.5 99.6 Aug. 670 157 308 130 75 247 120 127 Sept. 576 144 287 62 83 231 114 117 NOTE.—For total debt outstanding, figures are Oct.. 673 193 353 54 72 285 136 149 FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank Board, Federal Housing Administration, and Veterans Administration. )nly such 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 End of ( p d e u ri r o in d g ) m m e i n t- ts Period va A n d c - es R m e e p n a ts y- M de e p m o b s e it r s s' period Total F su H in re A - d - a g n V u t A e a e r - - d Pur- Sales bu d u r i n s s- e - d Total S te h r o m rt 1 - L te o r n m g 2 chases 1945 278 213 195 176 19 46 1955 2,615 901 1,714 411 62 76 1955 1,251 702 1,417 991 426 698 1956 3,047 978 2,069 609 5 360 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 2,418 623 482 1,541 1958.. . . 1,364 1,331 1,298 685 613 819 1959 5,531 2,546 2,985 1,907 5 568 1959 2,067 1,231 2,134 1.192 942 589 I960 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 J.1R0 1961—Oct 5,916 3,345 2,571 108 2 653 1961—Nov 263 178 2,287 1,269 1,018 1,029 Nov 6,004 3,417 2,587 121 3 656 Dec 510 135 2,662 1,447 1,216 1,180 Dec 6,093 3,490 2,603 127 2 631 1962—Jan 265 608 2,320 1,293 1,027 995 1962—Jan 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 Apr 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 [,107 May 6,120 3,627 2,493 82 76 527 June 503 165 2,767 1,569 1,198 1,192 6,035 3,571 2,464 52 101 504 July 480 387 2,860 1,708 1,151 976 Julv 5,989 3,557 2,432 34 47 485 Aug 312 225 2,948 1,787 1,161 954 5,969 3,556 2,413 35 19 442 Sept 279 180 3,046 1,835 1,211 984 Sept 5,951 3,552 C2,399 32 12 429 Oct 383 338 3,091 1,876 1,215 ,016 Oct 5,944 3,555 2,389 39 11 431 Nov 252 275 3,068 1,821 1,246 ,028 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, the Public Housing Admin- 1 year but not more than 10 years. istration and Community Facilities Administration. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1676 CONSUMER CREDIT TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e o il r - e co O g n o s t o h u d e m r s er e a r n R n d i e z p m a a t o i i o r d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e e s n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e paper loans i 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 '38,830 '28,906 '13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1956 '42,334 '31,720 '14,420 8,606 1,905 6,789 10,614 3,253 4,995 2,366 1957 '44,970 '33,867 '15,340 8,844 2,101 7,582 11,103 3,364 5,146 2,593 1958 '45,129 '33,642 '14,152 9,028 2,346 8,116 11,487 3,627 5,060 2,800 1959 '51,542 '39,245 '16,420 10,630 2,809 9,386 12,297 4,129 5,104 3,064 1960 '56,028 '42,832 '17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961' 57,678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1961—Oct.' 55,340 42,494 17,153 11,142 3,193 11,006 12,846 4,894 4,448 3,504 Nov.r 55,915 42,737 17,211 11,264 3,204 11,058 13,178 5,025 4,601 3,552 Dec' 57,678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1962—Jan.' 56,711 43,265 17,155 11,720 3,151 11,239 13,446 4,930 4,784 3,732 Feb.' 56,093 43,074 17,191 11,496 3,123 11,264 13,019 4,988 4,192 3,839 Mar.'..... 56,275 43,211 17,348 11,407 3,113 11.343 13,064 5,146 4,074 3,844 Apr.'' 57,314 43,837 17,671 11,498 3,128 1K540 13,477 5,241 4,319 3,917 Mayr 58,318 44,495 18,032 11,598 3,169 11,696 13,823 5,400 4,544 879 Juner 59,108 45,208 18,410 11,726 ,200 11,872 13,900 5,428 4,596 3; 876 July 59,364 45,650 18,680 11,754 3,226 11,990 13,714 5,402 4,457 3,855 Aug.' 60,003 46,204 18,933 11,824 3,260 12,187 13,799 5,469 4,491 3,839 Sept.r. 60,126 46,310 18,881 11,861 3,277 12,291 13,816 5,481 4,495 3,840 Oct 60.624 46,720 19,083 11,984 3,289 12.364 13,904 5,442 4,663 3,799 1 Holdings of financial institutions; holdings of retail outlets are in- mortgage Joans. 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 a description of the series NOTE —Consumer credit estimates cover loans to individuals for see BULL. Apr. 1953. Back data are available upon request. household, family, and other personal expenditures, except real estate INSTALMENT CREDIT (In millions of dollars) Financial insitutions Retail outlets End of period Total Total m C b e a o r n m c k ia - s l fi S n c a o a l s n e . s ce u C n r i e o d n i s t f s in u C a m o n e n c r - e] Other * Total D st m e o p 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 A ea o u l b e to i r l s - e 3 Other 1939 4.503 3,065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941 6,085 4,480 1,726 1,797 198 759 1,605 320 496 206 188 395 1945 2,462 1,776 745 300 102 629 686 131 240 17 28 270 1955 28,906 24,398 10,601 '8,447 1,678 2,623 ,049 4,508 1,511 ,044 365 487 ,101 1956 '31,720 26,977 11,777 '9,117 2,014 2,940 ,129 4,743 1,408 ,187 377 502 ,269 1957 '33,867 29,200 12,843 '9,609 2,429 3,124 ,195 4,668 1,393 ,210 361 478 ,226 1958 '33.642 28,659 12,780 '8,844 2,668 3,085 .282 4.983 1,882 ,128 292 506 ,175 1959 '39,245 33,570 15,227 r10,319 3,280 3,337 ,407 5.676 2,292 ,225 310 481 ,368 1960 '42,832 37,218 16,672 r\ 1,472 3,923 3,670 ,481 5.615 2,414 ,107 333 359 ,402 1961' .. 43,527 37,935 17,008 11,273 4,330 3,799 ,525 5;595 2,421 ,058 293 342 ,481 1961—Oct.'. 42.494 37,501 16,988 11,088 4,252 3,671 ,502 4,994 2,097 997 291 341 ,268 Nov.' 42^737 37.572 16,974 11,100 4,297 3,684 ,517 165 2,208 1,015 288 342 ,312 Dec.'. 43,527 37,935 17,008 11,273 4,330 3,799 ,525 595 2,421 1,058 293 342 ,481 1962—Jan.'. 43,265 38,002 16,964 11,468 4,283 3.782 ,505 5,263 2,158 1,036 287 339 ,443 Feb.'. 43,074 37,904 16,967 11,361 4,288 3,783 .505 5,170 2,153 1,018 283 336 ,380 Mar.' 43.211 37,995 17,062 11,283 4,333 3,795 ,522 5,216 2,227 998 278 330 ,383 Apr.'. 43,837 38,497 17,366 11,359 4,426 3,826 .520 5,340 2,339 991 275 320 ,415 May'. 44,495 39,032 17,686 11,440 4,520 3,836 ,550 5,463 2,430 991 274 310 ,458 June'. 45,208 39,639 18,024 11,570 4,616 3,876 ,553 569 2,522 988 276 302 ,481 July'. 45,650 40,062 18,235 11,682 4,681 3,907 ,557 588 2,545 989 275 298 ,481 Aug.' 46,204 40,537 18,427 11,796 4,783 3,948 ,583 667 2,609 999 275 296 ,488 Sept'. 46,310 40,597 18,443 11,787 4,814 3,969 .584 713 2,675 998 273 299 ,468 Oct... 46,720 40,896 18,613 11,860 4,874 3,974 .575 5.824 2,737 1,002 273 298 1,514 1 Consumer finance cos. included with 'other" financial institutions 3 Automobile paper only; other instalment credit held by automobile until Sept. 1950. dealers is included with "other" retail outlets. 2 Includes mail-order houses. See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 1677 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Aut p o a m pe o r bile O co th n e - r R a e n p d air Per- Auto- O c t o h n e - r R a e n p d air Per- End of period Total sumer mod- sonal End of period Total mobile sumer modern- sonal Pur- Direct g p o ap o e d r s er t n io iz n a- loans paper g p o ap od er s i l z o a a ti n o s n loans chased loans 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 '8,447 r6,905 1,048 28 466 1955 10,601 3,243 2,062 2,042 1,338 1,916 1956 '9,117 '7,238 1,277 32 570 1956 11,777 3,651 2,075 2,464 1,469 2,118 1957 '9,609 r7,393 1,509 31 676 1957 12,843 4,130 2,225 2,557 1,580 2,351 1958 r8,844 r6,310 1,717 36 781 1958 12,780 4.014 2,no 2,269 1,715 2,612 1959 10,319 '7,187 2,114 72 946 1959 15,227 4,827 2,525 2,640 2,039 3,196 I960 '11,472 r7,528 2,739 139 1,066 I960 16,672 5,316 2,820 2,759 2.200 3,577 1961' . ... 11,273 6,811 3,100 161 1,201 1961r 17,008 5,391 2,860 2,761 2,198 3,798 1961 Oct 11,088 6,843 2,929 157 1.159 1961—Oct.'" 16,988 5.365 2,824 2,820 2,210 3,769 Nov. . . . 11,100 6,833 2,940 160 ,167 Nov.r 16,974 5.384 2,851 2.764 2,210 3,765 Dec 11,273 6,811 3,100 161 ,201 Dec' 17,008 5,391 2,860 2,761 2,198 3,798 1962—Jan 11,468 6,754 3,345 162 ,207 1962—Jan.' 16,964 5,379 2,885 2,718 2,170 3,812 Feb 11,361 6,745 3,243 162 ,211 Feb.'" 16,967 5,398 2,911 2,690 2,147 3,821 Mar 11,283 6,772 3,134 163 ,214 Mar.*" 17,062 5,457 2,965 2,656 2,132 3,852 Apr . . 11,359 6,864 3,093 165 ,237 Apr.r 17,366 5,569 3,056 2,653 2,143 3,945 May 11,440 6.991 3,027 167 .255 May1" 17,686 5,692 3,144 2,682 2,165 4,003 June 11,570 7,122 2,997 168 ,283 June*" 18,024 5,823 3,229 2,716 2,188 4,068 July 11,682 7,228 2,981 171 ,302 July' 18,235 5,922 3,270 2,734 2,206 4,103 Aus ... 11 796 7,327 2,969 171 ,329 Aug.' 18,427 6,008 3,295 2,726 2,224 4,174 Sept 11,787 7,296 2,957 172 ,362 Sept.r 18,443 6,009 3,259 2,732 2,235 4,208 Oct 11,860 7,350 2.952 172 ,386 Oct 18,613 6,091 3,305 2,746 2,246 4,225 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- \o?tns End of Period Total mobile sumer modern- sonal 1 1 9 9 3 4 9 1 9 78 5 9 7 pap 1 e 8 2 r 1 2 g p o a o p d e 2 3 r s 4 6 iz lo a a ti n o 1 1 s n 5 4 loa 7 6 n 8 6 s 5 9 End of period Total b C m c a o i n e a m r k l - s - t f O u i i n c n t t i i s h a a o t n e i l n - r - s s m t p D o a e r e r e n - t- s t 1 o O r u e t t t h l a e e i t l r s C ca re r d d i s t 2 S c e r r e v d i i c t e 1945 731 54 20 14 643 1955 5,350 763 530 327 3,730 1939 2,719 625 162 236 1,178 518 1956 6,083 954 624 404 4,101 1941 3,087 693 152 275 1,370 597 1957 6,748 1,114 588 490 4,555 1945 3'203 674 72 290 1,322 845 1958 7,035 1,152 565 595 4,723 1959 8,024 1,400 681 698 5,244 1955 9,924 2.635 367 862 3,717 216 2,127 1956 10.614 2,843 410 893 3,842 260 2.366 1960 9,074 1,665 771 800 5,837 1957 11,103 2,937 427 876 3,953 317 2,593 1961^ 9,654 1,819 743 832 6,257 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—Oct.' 9,425 1,781 740 826 6,078 Nov. 9,498 1,801 737 834 6,126 1960 13,196 3,884 623 941 3,952 436 3,360 Dec. 9,654 1,819 743 832 6,257 1961' 14,151 4,413 723 948 3,907 469 3,691 1962—Jan.' 9,570 1,798 733 819 6,220 1961—Oct.'... 12,846 4,247 647 656 3,321 471 3,504 Feb.' 9,576 1,801 729 814 6,232 Nov.r.. 13,178 4,312 713 717 3,424 460 3,552 Mar. 9,650 1,824 731 818 6,277 Dec.'.. 14,151 4,413 723 948 3,907 469 3,691 Apr.5 9,772 1,862 732 820 6,358 May' 9,906 1,895 736 837 6,438 1962—Jan.'... 13,446 4,240 690 804 3,501 479 3,732 June1 10,045 1,934 746 844 6,521 Feb.'. . 13,019 4,294 694 635 3,085 472 3,839 July' 10,145 1,962 749 849 6,585 Mar.'.. 13,064 4,391 755 594 3,025 455 3,844 Aug. 10,314 2,007 758 865 6,684 Apr.'.. 13,477 4,544 697 620 3,249 450 3,917 Sept. 10,367 2,018 758 870 6,721 May'.. 13,823 4,614 786 636 3,444 464 3,879 Oct.. 10,423 2,039 760 871 6,753 June'.. 13,900 4,671 757 612 3,505 479 3,876 July'... 13,714 4,662 740 569 3,388 500 3,855 Aug.'.. 13,799 4,657 812 570 3,394 527 3,839 NOTE.—Institutions represented are consumer finance cos., credit Sept.'.. 13,816 4,666 815 614 3,353 528 3,840 unions, industrial loan cos., mutual savings banks, savings and loan Oct 13,904 4,662 780 638 3,507 518 3,799 assns., and other lending institutions holding consumer instalment loans. See NOTE to first table on preceding page. 1 Includes mail-order houses. 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

1678 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 rn ep iz a a i t r i o a n n d loans Personal loans 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 '38,972 '16,734 10,642 1,393 10,203 1956 '39,868 '15,515 11,721 1,582 11,051 1957 '42.016 '16,465 11,807 1,674 12,069 1958 '40.119 '14,226 11,747 1,871 12,275 1959 2 '48!052 '17,779 13,982 2,222 14,070 1960. '49,560 '17,654 14,470 2,213 15,223 1961 ^ 48,396 16,007 14,578 2,068 15,744 1961— Oct.' 4,235 4,291 1,419 1,481 ,267 1,312 174 188 ,375 1,311 Nov.r 4,332 4,312 1,510 ,433 ,265 1,323 172 180 ,385 1,376 Dec/ 4,409 4,835 1,469 ,320 ,402 1,795 167 148 ,371 1,572 1962—Jan.'. 4,327 3,878 1,504 ,355 ,280 1,116 171 126 ,372 1,281 Feb.' 4,356 3,611 1,546 ,318 ,276 973 166 126 ,368 1,194 Mar.' 4,499 4,392 1,582 ,616 ,328 1,196 174 160 ,415 1,420 Apr.' 4,659 4,737 1,675 ,732 ,345 1,319 182 181 ,457 1,505 May- 4,650 4,950 1,655 ,837 ,338 1,383 183 216 ,474 1,514 June1" 4,623 4,923 1,621 ,810 ,344 1,384 187 201 ,471 1,528 July. 4.669 4,720 1,631 ,751 ,368 1,290 189 199 ,481 1,480 Aug.r 4.619 4,862 1,602 ,731 ,325 1,345 179 209 ,513 1,577 Sept. ' 4.491 4,098 1,505 ,309 ,308 1,255 170 176 ,508 1,358 Oct.. 4.680 4.911 1,685 ,816 ,333 1,430 169 191 ,493 1,474 Repayments 1955 '33,634 '13,082 9.752 ,316 9,484 1956 '37,054 '14,555 10,756 ,370 10,373 1957... r39,868 '15.545 11,569 .477 11,276 1958 '40,344 '15,415 11,563 ,626 11,741 1959 2 '42.603 '15,579 12,402 ,765 12,857 1960. '45.972 '16,384 13.574 1,883 14,130 1961 ^ 47.700 16,472 14,246 2,015 14.967 1961—Oct.' 4.073 4,131 .396 ,462 ,217 1,225 175 183 ,285 ,260 Nov.' 4,063 4,071 ,384 ,375 ,206 ,203 166 169 ,307 ,325 Dec' 4,061 4,041 ,375 ,307 ,233 ,200 169 161 ,284 ,373 1962—Jan.'. 4,048 4,140 ,401 ,423 ,190 ,253 165 166 ,292 ,298 Feb.'. 4,084 3,802 ,390 ,282 ,236 ,197 167 154 .291 .169 Mar.' 4,121 4,255 ,415 ,459 ,231 ,285 168 170 ,307 ,341 Apr.'. 4,166 4,111 ,435 ,409 ,247 ,228 168 166 ,316 ,308 May'. 4,211 4,292 ,447 ,476 ,260 ,283 173 175 ,331 ,358 June'. 4.202 4.210 ,433 ,432 ,260 ,256 170 170 .339 ,352 July'. 4,283 4,278 ,456 ,481 .296 ,262 170 173 ,361 ,362 Aug.' 4.261 4.308 ,446 ,478 .281 ,275 172 175 ,362 ,380 Sept.' 4.289 3:992 .440 ,361 .298 .218 169 159 ,382 ,254 Oct.. . 4.298 4.501 .491 .614 .261 .307 165 179 .381 ,401 Net change in credit outstanding 7 1955... '5.338 '3,652 890 77 719 1956... '2.814 '960 965 212 678 1957... '2,148 '920 238 197 793 1958... '-225 -1,189 184 245 534 1959 2.. '5,601 '2,268 1,602 463 1,269 1960. '3.588 '1,270 896 330 1,093 1961 ' 696 -465 332 53 111 1961—Oct.'. 162 160 23 19 50 87 -1 5 90 51 Nov.1". 269 i 241 126 58 59 120 6 11 78 51 Dec/. 348 j 794 94 13 169 595 -2 -13 87 199 1962—Jan.'. 279 | -262 103 -68 90 -137 6 -40 80 -17 Feb.'. 272 ! -191 156 36 40 -224 -1 -28 77 25 Mar.'. 378 ' 137 167 157 97 -89 6 -10 108 79 Apr.'. 493 626 240 323 98 91 14 15 141 197 May. 439 i 658 208 361 78 100 10 41 143 156 June '. 421 I 713 188 378 84 128 17 31 132 176 July. 386 I 442 175 270 72 28 19 26 120 118 Augr. 358 1 554 156 253 44 70 7 34 151 197 Sept.'. 202 ! 106 65 -52 10 37 1 17 126 104 Oct.. . 382 i 410 194 202 72 123 4 12 112 73 1 Includes adjustment for difference in trading days. NOTE.—Estimates are based on accounting records and often include 2 Includes data for Alaska and Hawaii beginning with the months in financing charges. Renewals and refinancing of loans, purchases and which they became States. sales of instalment paper, and certain other transactions may increase Net changes in credit outstanding equal extensions less repayments the amount of extensions and repayments without affecting the amount except in 1959, when the differences do not reflect the introduction outstanding. of outstanding balances for Alaska and Hawaii. For a description of the series in this and the following table see Jan. 1954 BULL., pp. 9-17. Back data upon request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 1679 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p f a in n a ie n s ce Ot i h n e s r ti t f u i t n i a o n n c s ial Retail outlets 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. Extensions 2 1955 '38,972 14,109 '10,206 6,281 1956 '39,868 14,463 a),619 6,638 1957 '42,016 15,355 '10,250 6,495 1958 '40,119 14,860 r() 043 6,563 1959 3 '48,052 17,976 '1,196 7,940 1960 '49,560 18,269 '1,456 7,762 1961'.... 48,396 17,711 10.667 7,736 1961— Oct.r. . 4,235 4,291 1,548 1,571 928 970 718 Nov.r.. 4,332 4,312 1,582 1,491 968 941 762 Dec.'.. 4,409 4,835 1,571 1,469 1,123 ,101 1,024 1962—Jan.r. . 4,327 3,878 1,575 1,498 977 884 554 Feb.'.. 4,356 3,611 1,642 1,418 955 788 492 Mar.r.. 4,499 4,392 1,637 1,648 955 937 691 Apr.r. . 4.659 4,737 1,726 1,816 1,010 1,008 759 Mayr.. 4,650 4,950 1,710 1,881 1,007 1,059 805 Juner. . 4,623 4,923 1,720 1,862 992 1,081 786 July'.. 4,669 4,720 1,708 1,789 984 ,069 710 Aug.r.. 4,619 4,862 1,679 1,773 971 ,068 788 Sept.1".. 4,491 4,098 1,643 1,486 944 863 734 Oct.. . . 4,680 4.911 1,722 1,806 1,021 ,108 861 Repayments 2 1955... '33,634 12,304 '7,903 7,536 5,891 1956... '37,054 13,362 '8.949 8,415 6,328 1957.., '39,868 14,360 '9,759 9,250 6,499 1958.. '40,344 14,647 '9.842 9,365 6,490 1959 3. '42,603 15,560 '9,742 10,020 7,281 1960 . '45,972 16,832 '10,442 11,022 7,676 1961 ' 47,700 18,294 10,943 11,715 6,749 1961— Oct.r, 4,073 4,131 ,539 ,575 936 986 ,009 589 584 Nov.r 4,063 4,071 ,511 ,488 922 929 ,030 1,046 600 608 Dec.r 4,061 4,041 ,512 ,435 943 928 ,005 1,084 601 594 1962--Jan.r. . 4,048 4,140 ,502 ,542 920 911 ,017 1,023 609 664 Feb.'". 4,084 3,802 ,493 ,415 981 895 ,003 907 607 585 Mar.r. 4,121 4,255 ,520 ,553 966 1,015 ,018 1,042 617 645 Apr.'. 4,166 4,111 ,514 ,503 952 941 ,042 1,032 658 635 Mayr. 4,211 4,292 ,526 ,561 965 978 ,047 1,071 673 682 Juner. 4,202 4,210 ,526 ,524 960 951 ,038 1,055 678 680 July'. . 4,283 4,278 ,546 ,578 956 957 ,055 1,052 726 691 Aug.r. 4,261 4,308 ,555 ,581 932 954 ,054 1,064 720 709 Sept.r. 4,289 3,992 ,562 ,470 936 872 ,062 962 729 688 Oct 4,298 4,501 ,546 ,636 949 1,035 ,071 1,080 732 750 Net change in credit outstanding 2 1955.. '5,338 1,805 '2,303 840 390 1956.. '2,814 1,176 '670 733 235 1957.. '2,148 1,066 '491 665 -75 1958.. '-225 -63 '-765 289 315 1959 3. '5,601 2,447 '1,475 986 693 I960.. '3,588 1,446 '1,152 1,051 -61 1961 r. 696 335 -199 578 -20 1961— Oct.r. . 162 160 9 -4 -16 65 47 96 134 Nov.r. 269 241 54 -14 46 12 66 72 103 170 Dec.r. 348 794 59 34 180 173 72 157 37 430 1962—Jan.T. . 279 -262 73 -44 279 195 38 -81 -111 -332 Feb.r., 272 -191 149 3 -26 -107 51 6 98 -93 Mar.r. 378 137 117 95 -11 -78 94 74 178 46 Apr.'.. 493 626 203 304 67 76 107 122 116 124 May7", 439 658 184 320 42 81 103 134 110 123 June1". 421 713 194 338 32 130 101 139 94 106 July1-.. 386 442 162 211 28 112 91 100 105 19 Aug.r. 358 554 124 192 39 114 123 169 72 79 Sept.r. 202 106 81 16 8 -9 76 53 37 46 Oct 382 410 176 170 72 73 73 56 61 111 1 Includes adjustment for differences in trading days. months the differences between the two for some types of holders do not 2 Net changes in credit outstanding equal extensions less repayments equal the changes in outstanding credit. Such transfers do not affect except: (1) in 1959, when the differences do not reflect the introduction of total instalment credit outstanding. outstanding balances for Alaska and Hawaii, and (2) in certain months 3 Includes data for Alaska and Hawaii beginning with the months in when data for extensions and repayments have been adjusted, as necessary which they became States. to eliminate duplication resulting from large transfers of paper. In those See also Note to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1680 INDUSTRIAL PRODUCTION: S.A. MARKET GROUPINGS (1957-59= 100) 1957-59 1961 1961 1962 Grouping p p o ro r- - avertion age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct. Total index 100.00 109.8 113.5 114.8 115.6 114.3 116.0 117.0 117.7 118.4 118.6 119.3 >-119.7 119.9 119.5 Final pvoducts total 47.35 111.3 114.8 116.4 116.9 115.7 116.8 118.2 118.5 120.2 120.6 121.7 121.6 122.0 122.2 32.31 112.7 115.9 117.5 117.9 116.5 117.3 118.8 119.1 121.1 120.9 121.7 no.9 121.6 121.6 Equipment, including defense.... 15.04 108.3 112.4 114.1 114.9 112.7 115.0 116.1 117.0 118.5 120.1 121.8 123.2 123.6 124.2 52.65 108.4 112.9 113.9 114.8 113.7 115.5 116.9 117.1 117.0 117.1 117.0 117.7 118.0 117.2 Consumer goods Automotive pvoducts 3 21 111.8 116.4 127.3 130.8 127.8 123.7 122.6 129.4 132.8 126.8 135.2 134.1 135.2 135.4 Autos . 1 82 108 6 114 4 131.5 136.1 132 8 125 5 123.8 133.9 140.8 129.3 142.4 140.0 141.2 142.1 Auto parts and allied products 1.39 116.0 119.0 121.6 123.7 121.1 121.4 121.0 123.5 122.3 123.6 125.7 126.3 127.4 126.6 Home goods and apparel 10 00 110.5 114.2 115.7 117.2 114.1 116.5 119.0 120.1 121.2 121.7 120.1 118.7 120.0 119.9 Home goods 4.59 112.2 116.0 117.9 120.3 118.8 120.4 122.6 124 A 126.0 126.2 122.7 121.2 122.2 121.1 Appliances, TV, and radios 1.81 109.9 113.8 115.7 116.3 114.0 116.0 120.3 123.8 124.2 123.3 118.5 115.2 115.8 116.7 1.33 110.7 117.8 118.4 119.0 115.4 114.9 117.7 120.1 120.7 122.9 120.9 119.3 120.7 125.0 TV and home radios 47 107.8 102.4 107.8 108.5 110.1 118.8 127.5 134.2 133.9 124.7 112.0 103.7 102.1 93.3 Furniture and rugs. 1.26 112.8 118.5 120.7 120.1 118.5 121.0 121.5 123.8 124.5 126.5 124.3 125.4 127.9 126.2 Miscellaneous home goods 1.52 114.5 116.5 118.3 125.2 124.8 125.1 126.3 125.6 129.5 129.3 126.2 123.4 125.2 122.2 Apparel, knit goods, and shoes 5.41 109.0 112.6 113.9 114.6 110.2 113.2 116.0 116.5 117.1 118.0 118.0 116.5 118.1 Consumer staples 19 10 114.0 116.7 116.8 116.1 115.8 116.6 118.0 117.1 118.8 119.2 120.3 119.7 120.2 120.1 Processed foods 8.43 110.5 112.8 112.7 111.6 111.3 111.5 113.2 113.6 114.3 112.8 115.9 M15.6 115.6 Beverages and tobacco 2 43 109.5 112.8 112.1 110.7 108.4 109.9 113.7 106.9 109.1 109.0 110.9 108.0 110.7 Drugs, soap, and toiletries 2.97 120.7 123.7 125.2 125.2 123.6 126.6 127.5 125.8 129.9 131.9 131.5 131.0 132.0 130.9 Newspapers, magazines, and books. 1.47 114.9 116.6 115.9 115.2 116.2 116.9 116.6 115.7 117.4 117.7 117.7 117.0 117.0 116.6 Consumer fuel and lighting .... 3 67 119.2 122.4 122.5 122.7 124.2 124.3 124.8 125.1 126.9 130.7 128.3 127.0 128.5 Fuel oil and gasoline 1.20 107.6 109.7 110.7 110.0 110.1 111.1 111.3 110.4 112.3 115.0 111.7 108.4 114.0 113.1 Residential utilities 2.46 124.9 128.5 128.3 128.9 131.1 130.8 131.5 132.3 134.0 138.4 136.4 136.0 135.6 Electricity 1.72 125.3 129.2 128.9 129.3 131.7 131.1 131.3 131.6 133.6 139.5 141.4 140.4 139.3 Gas .74 124.0 Equipment Business eauipment . 11.63 110.1 114.1 115.8 116.4 113.4 116.3 118.0 119.3 121.2 123.1 124.4 r125.6 126.2 126.7 Industrial equipment 6.85 107.4 110.4 111.8 113.4 112.2 113.4 114.2 115.1 116.7 118.5 119.0 119.2 118.9 120.1 Commercial equipment 2.42 127.0 131.0 133.7 135.2 136.3 139.3 141.7 144.0 144.4 144.8 145.6 144.7 144.9 144.0 Freight and passenger equipment... 1.76 103.4 109.7 113.7 113.8 107.0 109.0 111.6 109.7 111.2 114.9 121.0 '124.2 122.6 128.0 Farm equipment .61 93.4 85.1 91.3 90.3 87.8 94.3 99.9 102.6 105.6 110.4 110.4 110.8 123.4 112.6 3 41 Materials Durable goods materials 26.73 104.8 110.2 110.9 111.8 110.8 113.1 115.1 116.2 114.6 113.7 113.8 114.8 114.8 114.3 3.43 107.9 109.3 114.0 120.3 120.5 119.2 124.1 134.7 134.5 127.0 134.2 130.6 132.4 126.4 Equipment 7.84 105.7 111.1 111.7 113.4 113.1 114.5 116.9 120.3 119.5 120.8 119.3 119.2 121.3 121.0 9.17 105.2 107.9 107.5 106.5 103.0 107.3 109.9 110.7 111.4 111.8 112.1 112.6 113.2 111.2 Metal materials n.e.c 6.29 101.2 106.8 108.5 114.3 116.9 120.1 118.1 114.6 104.5 99.4 96.4 98.5 99.9 99.2 Nondurable materials 25.92 112.1 115.7 116.9 118.0 116.6 7/7.5 118.6 117.9 119.3 120.5 120.3 120.7 121.4 120.2 Business supplies 9.11 110.5 112.3 114.2 114.9 113.1 115.0 115.8 114.1 116.1 116.9 116.1 116.5 118.1 115.9 Containers •. . . 3.03 111.3 114.6 117.2 117.1 114.1 116.7 119.7 113.1 115.9 117.5 117.2 116.4 118.6 115.2 General business supplies 6.07 110.0 111.2 112.7 113.8 112.6 114.2 113.9 114.6 116.2 116.6 115.5 116.6 117.9 116.3 Nondurable materials nee 7.40 120.6 127.5 128.8 132.0 128.8 130.4 132.5 131.3 133.9 135.9 135.3 135.5 136.7 135.5 Business fuel and power 9.41 107.1 109.7 110.1 109.9 110.5 110.5 110.2 110.9 110.9 111.8 112.6 112.0 112.4 112.4 Mineral fuels 6.07 102.0 103.8 104.1 103.4 103.7 103.2 103 2 104.6 103.6 104.5 106.1 105.5 106.5 106.2 2.86 121.0 124.7 125.4 126.0 127.5 128.0 128.0 127.7 130.2 131.4 130.9 129.1 129.5 Electricity 2.32 121.7 125.6 126.2 127.0 128.4 128.5 128.2 127.6 130.4 131.9 132.4 130.1 130.4 General industrial • •.. .. 1.03 114 8 118.3 118.8 119.9 121.9 122.4 121.3 122.7 121.6 122.6 124.1 122.0 122.7 Commercial and other 1.21 129.1 134.0 134.7 135.2 136.4 136.1 136.4 134.1 140.5 142.4 142.0 139.5 139.5 Gas .54 118.0 Supplementary groups of consumer goods Automotive and home goods 7.80 112.0 116.2 121.8 124.6 122.6 121.8 122.7 126.5 128.9 126.5 127.9 '126.3 127.7 127.1 Apparel and staples 24.51 112.9 115.8 116.1 115.8 114.6 115.9 117.6 117.0 118.4 118.9 119.8 118.7 119.7 119.9 Sec NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION: S.A. 1681 INDUSTRY GROUPINGS (1957-59= 100) Grouping 19 p p 5 r o 7 o r - - - 59 a 1 v 9 e 6 r 1 - 1961 1962 tion age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total index. 100.00 109.8 113.5 114.8 115.6 114.3 116.0 117.0 117.7 118.4 118.6 119.3 119.7 119.9 119.5 Manufacturing, total.. 86.45 109.7 775.5 115.0 775.9 114.4 116.3 777.4 775.7 775.5 775.9 779.7 r720.3 720.5 779.5 Durable 48.07 107.0 111.2 113.0 114.5 113.2 115.4 116.5 118.5 118.2 117.7 118.7 119.8 119.8 118.8 Nondurable 38.38 112 9 116.5 117.5 117.7 115.9 117.3 118.6 117.5 119.6 120.3 121.0 '120.8 121.4 121.0 Mining 8.23 102.6 104.4 105.2 104.7 104.0 104.3 104.8 105.5 104.8 104.6 106.1 105.5 105.8 106.6 Utilities 5.32 122.8 126.5 126.7 127.3 128.8 129.0 128.8 128. 129.8 132.4 133.5 132.3 132.3 133.5 Durable manufactures Primary and fabricated metals 12.32 102.2 705.7 109.4 112.0 777.5 775.7 775.3 774.7 705.3 705.3 705.3 705.2 705.3 705.9 Primary metals 6.95 98.9 106.7 106.2 111.0 111.9 117.5 116.6 112.4 101.3 96.8 96.6 99.1 99.8 98.8 Iron and steel 5.45 96.5 103.8 103.9 110.6 112.9 117.7 118.5 112 6 96.5 89.5 87.8 92.1 92.8 91.7 Nonferrous metals and products. 1.50 107.5 113.2 115.9 119.2 117.6 122.0 120.6 118.6 120.8 118.2 117.9 112.9 118.3 120.4 Fabricated metal products 5.37 106.5 111.3 113.5 113.3 111.0 111.9 113.6 116.3 117.4 118.5 118.8 119.9 119.3 117.4 Structural metal parts 2.86 105.2 109.4 109.8 110.0 107.3 108.6 110.2 113.7 115.7 116.4 115.6 115.2 115.1 115.1 Machinery and related products. ... 27.98 108.8 772.4 114.9 116.6 115.4 775.5 775.2 727.2 122.9 722.9 724.5 725.5 725.3 725.0 Machinery 14.80 110.4 113.9 114.7 116.8 115.6 117.5 120.2 122.9 124.5 125.9 125.4 126.5 126.3 125.4 Nonelectrical machinery 8.43 106.5 110.0 110.1 111.6 110.1 112.4 115.2 117.8 120.0 121.8 121.9 124.6 123.9 123.0 Electrical machinery 6.37 115.7 119.0 120.9 123.6 122.9 124.3 126.8 129.7 130.4 131.3 130. 129.0 129.6 128.6 Transportation equipment 10.19 103.6 107.0 112.2 113.7 112.5 113.4 113.4 116.8 119.4 116.8 122. 122.0 122.0 122.4 Motor vehicles and parts 4.68 111.9 116.0 125.1 127.9 126.9 126.2 126.3 134.4 139. 132.0 141.3 r138.1 138.8 139.1 Aircraft and other equipment.. . 5.26 95.7 98.5 100.4 100.6 99.6 101.5 101.4 100.7 101.6 103.0 104.7 107.3 106.7 107.5 Instruments and related products.. 1.71 115.8 118.0 119.4 119.8 118.9 118.5 119.0 122.3 122.6 124.7 124.9 125.8 124.3 123.8 Ordnance and accessories 1.28 C C l l a a y yt , g g l l a as s s s , , a an n d d l s u to m n b e e r products. 4 2 . . 7 9 2 9 7 1 0 0 4 6. . 3 5 7 1 0 08 5 . . 5 3 7 1 0 0 5 7. . 9 5 7 1 0 0 4 6. . 0 7 7 1 0 0 7 4. . 4 5 7 1 0 0 5 5. . 1 5 7 1 0 0 5 4. . 8 9 7 1 0 1 5 0. . 3 9 7 1 7 1 0 1 . . 7 9 7 1 7 1 0 2. . 5 7 7 1 0 1 9 3. . 7 9 7 1 7 1 2 4 . . 7 9 7 1 7 1 2 4 . . 2 9 7 1 0 1 5 2. . 9 5 Lumber and products 1.73 101.3 99.9 101.6 102.4 96.5 109.2 107.9 106.4 107.1 107.5 103.4 107.4 107.6 101.7 Furniture and miscellaneous.. 3.05 774.7 779.0 727.3 720.5 777.5 775.2 727.5 725.7 727.3 727.4 727.3 725.5 725.5 725.7 Furniture and fixtures 1.54 115.3 120.6 123.2 123.2 118.3 120.8 124.0 126.6 129.3 129.2 127.7 128.3 129.2 127.3 Miscellaneous manufactures. 1.51 112.8 117.3 119.4 118.3 116.9 115.5 119.0 125.5 125.2 125.5 126.9 123.3 124.4 122.8 Nondurable manufactures Textiles, apparel, and leather. 7.60 705.4 773.7 774.9 775.5 772.4 773.5 774.5 774.5 775.2 775.5 775.5 '775.2 775.7 115.1 Textile mill products 2.90 106.9 113.0 113.7 114.1 113.4 114.6 116.8 115.0 116.1 117.1 116.6 117.1 115.9 114.8 Apparel products. 3.59 112.1 116.5 118.9 119.8 115.5 116.0 116.5 117.6 118.3 118.4 119.2 '118.1 119.3 Leather and products 1.11 100.2 102.7 104.9 107.3 100.1 103.0 104.0 105.5 102.9 103.8 100.5 100.6 106.6 Paper and printing. 5.77 772.4 774.2 775.2 775.7 775.7 775.2 775.9 775.7 777.0 775.7 775.0 775.7 775.2 775.9 Paper and products 3.43 113.7 116.4 118.2 119.3 117.3 119.0 120.7 117.5 119.9 119.6 121. 120.5 120.9 118.7 Printing and publishing. 4.74 111.5 112.6 113. 113.0 113.5 114.2 114.1 114.4 114.9 114.7 115.7 116.3 116.2 114.6 Newspapers 1.53 106.0 106.7 107.6 107.9 108.6 109.4 108.6 107.5 107.9 108.6 110.3 111.8 111.3 108.2 Chemicals, petroleum, and rubber. 77.54 775.5 724.5 725.2 725.9 724.7 725.5 725.7 725.5 730.5 732.5 733.2 733.2 733.7 134.4 Chemicals and products 7.58 123.3 129.0 130.0 130.0 128.4 131. 131.8 131.6 135.7 137. 137.6 138.3 139.0 139.7 Industrial chemicals 3.84 129.6 138.7 139. 139.0 138.6 140.4 141.0 142.2 145.8 147.7 149.7 150.7 151.0 Petroleum products 1.97 108.7 111.7 111.3 110.7 112.2 111. 114.0 109.6 112.6 115. 113.4 112.1 113.6 114.1 Rubber and plastics products 1.99 111.9 120.3 120.8 125.1 119.6 120.5 119.9 124.0 130.2 132.8 136.1 134.8 133.4 Foods, beverages, and tobacco 77.07 770.4 772.0 772.9 772.0 777.2 777.7 773.5 772.7 772.5 772.5 774.2 r773.5 774.4 7/4.7 Foods and beverages 10.25 110.3 111.9 112.8 112.0 111.4 111.7 113.2 112.3 112.9 112.9 114.3 r114.0 114.3 Food manufactures 8.64 110.6 111.8 113.1 112.4 112.0 112.2 113.4 113.6 113.9 113.5 115.1 115.5 115.5 Beverages 1.61 107.9 111.4 110.1 108.7 108.1 109.3 112.2 105.2 107.3 109.4 109.7 105.9 108.0 Tobacco products .82 110.8 113.8 114.1 112.4 109.1 111.1 116.8 110.3 112.5 108.2 113.4 112.0 116.0 Mining Coal, oil, and gas 6.80 700.9 702.5 703.3 703.7 702.9 702.3 702.9 704.0 702.5 703.0 704.7 704.7 705.7 705./ Coal 1.16 90. 94.9 96.9 96.9 98.0 95.2 96.3 97.6 92.2 91.8 91.8 93.7 93.8 94.0 Crude oil and natural gas 5.64 103. 104.1 104.6 104.4 103.9 103.8 104.2 105.3 104.7 105.3 107.4 106.2 107.4 107.3 Oil and gas extraction 4.91 104.9 105.9 105.8 105.0 105.0 105.1 104.8 106.2 106.3 107.4 109.5 108.3 109.5 109.1 Crude oil 4.25 103.0 103.8 103.2 102.8 102.7 103.2 102.4 104.1 104. 105.6 107.7 106.7 107.8 106.7 Gas and gas liquids .66 116.8 119.6 122.2 118.7 119.8 117.4 120.4 119.7 120.5 119.2 Oil and gas drilling .73 91.3 91.5 97.0 100.8 96.5 95.0 100.2 99.2 93.7 91.1 '92.3 95 A Metal, stone, and earth minerals., 7.43 770.5 773.7 773.9 777.9 709.4 773.9 773.9 772.5 775.7 772.0 772.5 772.0 709.5 114.0 Metal mining .61 111.9 115.5 122.4 125.0 129.4 131.7 128.9 120.0 116.6 109.5 110.4 104.1 97.9 113.4 Stone and earth minerals .82 109.4 111.3 107.7 102.2 94.5 100.6 102.7 106.9 115.1 113.8 114.5 117.9 118.2 114.5 Utilities Electric. 4.04 123.2 127.2 127.3 128.0 129.8 129.6 129.5 129.3 131.8 135.1 136.2 134.5 134.2 Gas 1.28 121.5 124.4 124.7 125.4 125.5 126.9 126.5 124.2 123.6 123.8 NOTE.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures tor individual series and shown separately. A description and historical data are available in 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

1682 INDUSTRIAL PRODUCTION: N.S.A. MARKET GROUPINGS (1957-59= 100) 1957-59 1961 1961 1962 Grouping pro- averp ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.' Oct. Total index. 100 00 109.8 117 1 115.8 114.0 113.1 116.4 118.1 118.3 118.2 119.9 113.9 '117.7 122.2 123.0 Final products, total 47 35 111.3 119.0 117.0 115.2 113.8 116.7 118.6 118.6 118.5 121.3 117.5 119.4 725.0 726.7 32.31 112.7 122.7 118.9 115.1 113.9 116.9 118.7 118.5 118.2 121.3 116.5 118.8 126.3 127.7 Equipment, including defense.... 15.04 108.3 111.1 112.9 115.4 113.6 116.1 118.3 118.6 119.1 121.1 119.6 120.6 122.4 122.8 Materials 52 65 108.4 115.4 114.7 112.9 112.6 116.1 117.6 118.2 118.0 118.7 110.7 '116.1 119.6 120.0 Consumer goods Automotive products .... 3.21 777.5 726.5 756.7 757.6 757.7 750.0 757.5 755.6 755.5 755.7 129.8 79.4 124.9 148.1 Autos 1.82 108.6 129.3 149.9 152.4 139.4 136.8 139.9 150.0 149.3 137.1 136.7 43.4 120.0 160.6 Auto parts and allied products 1.39 116.0 123.5 117.8 118.1 120.2 121.0 120.1 123.6 124.2 127.9 120.7 126.8 131.2 131.6 Home goods and apparel 10.00 770.5 727.9 777.7 777.9 709.2 779.5 722.9 720.5 777.6 720.5 107.7 '779.6 724.2 724.4 Home goods 4.59 112.2 126.3 123.6 119.6 112.1 119.9 124.2 122.4 121.0 125.5 110.7 117.8 130.6 131.4 Appliances, TV, and radios 1.81 109.9 126.6 122.4 113.1 108.2 120.8 127.2 121.3 117.2 124.3 99.6 103.6 127.5 128.8 Appliances .... 1 33 110.7 121.1 118.1 115.1 109.5 121.5 132.5 125.8 120.8 129.9 107.1 101.7 127.1 128.4 TV and home radios .47 107.8 142.3 134.7 107.4 104.6 118.8 112.2 108.7 107.1 108.5 78.4 108.9 128.6 129.7 Furniture and rugs 1.26 112.8 123.9 123.1 124.9 113.8 119.8 121.3 121.9 120.1 123.5 116.8 126.7 131.4 132.0 Miscellaneous home goods .... 1 52 114.5 127.8 125.4 122.9 115.2 118.8 123.0 124.1 126.3 128.5 119.0 127.3 133.6 134.0 Apparel, knit goods, and shoes 5.41 109.0 118.2 112.8 105.4 106.9 118.9 121.8 118.8 114.8 116.8 105.0 121.2 118.7 Consumer staples 19.10 114.0 122.4 116.6 113.0 113.4 113.5 114.4 114.1 115.1 779.7 118.9 125.0 127.6 125.9 Processed foods 8.43 110.5 124.6 115.9 108.0 104.6 103.9 104.7 106.3 107.4 112.0 116.1 124.2 131.0 Beverages and tobacco 2.43 109.5 118.9 105.9 95.7 95.5 100.2 109.3 109.7 116.6 125.0 113.6 117.8 113.6 Drugs soap and toiletries 2.97 120.7 126.8 125.6 123.9 123.6 126.2 126.2 127.7 128.7 133.2 125.3 133.9 132.4 134.2 Newspapers, magazines, and books.. 1.47 114.9 118.3 115.9 115.2 116.2 116.3 117.8 115.7 116.2 115.9 114.8 117.6 119.9 118.3 Consumer fuel and lighting 3.67 119.2 117.3 118.1 126.1 135.7 132.3 128.7 122.8 120.0 124.3 125.7 127.6 128.5 Fuel oil and gasoline 1.20 107.6 107.1 110.2 112.8 114.8 113.3 109.5 105.1 108.6 113.4 114.2 112.3 113.5 110.4 Residential utilities 2 46 124 9 Electricity 1.72 125.3 120.3 119.9 134.5 152.8 146.6 140.8 130.3 121.6 126.9 134.0 139.1 139.7 Gas .74 124.0 Equipment Business equipment 11.63 770.7 772.6 114.1 776.9 114.5 777.5 720.2 727.5 722.0 724.6 722.0 '722.6 724.9 725.7 Industrial equipment . .... 6.85 107.4 109.7 110.2 114.1 111.9 112.8 114.3 115.7 116.8 119.6 117.8 118.8 120.0 119.4 Commercial equipment 2.42 127.0 133.2 135.3 137.5 135.6 138.3 140.4 141.3 142.7 145.2 142.7 145.0 147.1 146.4 Freight and passenger equipment. . . 1.76 103.4 106.4 111.4 110.2 104.9 111.4 117.3 116.2 116.1 119.5 117.6 '116.6 118.2 124.2 Farm equipment .... .61 93.4 81.1 80.5 85.7 88.7 104.5 114.0 120.2 114.9 113.7 99.6 94.1 111.4 107.9 Defense equipment . . .... 5 41 Materials Durable goods materials .... 26.73 104.8 112.4 772.0 770.5 709.5 113.4 775.5 776.9 776.5 776.7 705.7 777.5 776.7 117.0 Consumer durable 3.43 107.9 116.0 126.8 129.9 128.1 126.9 128.4 128.4 130.6 123.6 117.4 107.5 130.5 134.1 Equipment .. . . 7.84 105.7 110.3 112.9 115.7 115.0 116.7 119.0 120.9 119.7 119.8 115.4 116.1 119.4 120.2 Construction 9.17 105.2 113.2 107.3 100.5 94.8 100.2 103.4 109.6 114.7 118.8 113.8 119.4 119.8 116.6 6.29 101.2 112.0 109.4 109.3 113.9 121.2 120.9 116.3 107.1 103.6 88.4 '95.7 101.4 104.1 Nondurable materials 25.92 772.7 775.5 777.5 775.7 115.7 775.5 720.0 779.4 779.7 727.5 112.7 '727.7 722.6 725.7 Business supplies 9.11 110.5 117.6 115.1 109.1 109.5 113.5 116.6 117.2 117.3 118.2 108.7 '118.5 121.9 121.3 Containers 3.03 111.3 120.3 110.8 101.9 107.3 114.4 119.7 116.5 117.1 123.4 112.5 128.0 126.3 121.0 General business supplies 6.07 110.0 116.2 117.2 112.7 110.6 113.1 115.0 117.5 117.4 115.6 106.8 '113.7 119.7 121.5 Nondurable materials nee. .... 7.40 120.6 130.1 130.1 128.0 128.8 134.3 135.1 133.9 135.9 136.6 124.9 '134.8 135.3 138.2 9.41 107.1 110.3 109.9 110.8 111.5 111.7 111.4 110.2 109.2 112.3 107.0 112 8 113.4 112.9 Mineral fuels .... 6.07 102.0 104.0 104.8 105.7 105.9 106.8 106.2 105.4 102.5 104.8 96.4 103.7 104.7 106.4 Nonresidential utilities 2 86 121 0 Electricity 2.32 121.7 127.5 123.5 124.0 i26.i 123.1 124.6 122.3 126.6 133.6 136.1 140.3 139.3 General industrial 1.03 114.8 120.9 119.2 118.7 121.3 119.2 122.0 120.1 121.6 123.7 120.6 125.4 125.2 Commercial and other 1.21 129.1 135.3 129.2 130.5 132.4 128.6 129.0 126.2 133.1 144.7 152.2 156 1 154.3 Gas .54 118.0 Supplementary groups o! consumer goods 7.80 112.0 126.5 128.7 127.0 120.1 124.3 127.4 129.3 128.4 128.8 118.8 102.2 128.5 138 5 Apparel and staples 24.51 112.9 121.4 115.8 111.3 112.1 114.8 116.1 115.3 115.1 119.1 116.0 124.3 125.7 124.4 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION: N.S.A. 1683 INDUSTRY GROUPINGS (1957-59= 100) Grouping 19 p p 5 r o 7 o r - - - 59 a 1 v 9 e 6 r 1 - 1961 1962 tion age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct. Total index 100.00 109.8 117.1 115.8 114.0 113.1 116.4 118.1 118.3 118.2 119.9 113.9 '117.7 122.2 123.0 Manufacturing, total 86.45 109.7 117.7 116.3 114.0 112.7 116.6 118.6 119.1 119.0 120.4 114.0 r117.6 122.8 123.9 Durable 48.07 107.0 114.1 115.1 115.1 112.9 116.6 118.6 119.6 118.8 119.2 113.6 112.8 120.5 121.8 Nondurable 38 38 112.9 122 3 117.9 112.6 112.5 116 6 118.6 118 4 119 1 121.8 114.5 r123.6 125.7 126.5 Mining 8.23 102.6 106.0 105.3 104.6 103.1 103.7 103.5 104.9 105.5 107.5 101.0 106.4 106.5 108.3 Utilities 5.32 122.8 Durable manufactures Primary and fabricated metals 12.32 102.2 111.3 110.0 110.7 112.5 117.5 119.0 116.5 109.8 108.4 97.6 104.5 110.2 109.0 Primary metals 6.95 98.9 108.8 107.3 108.3 115.3 123.0 123.8 117.7 103.9 98.7 82.9 92.0 98.5 99.8 Iron and steel 5 45 96.5 106 9 104.9 107 8 115.2 122 8 124.4 116 0 97.5 91.3 76.8 86.6 92.8 93.5 Nonferrous metals and products.. 1.50 107.5 115.6 116.0 110.1 115.6 123.8 121.9 123.8 127.2 125.5 104.9 Mil.8 119.1 122.7 Fabricated metal products 5.37 106.5 114.6 113.6 113.9 108.8 110.4 112.7 115.1 117.4 120.9 116.7 120.7 125.3 120.9 Structural metal parts 2.86 105.2 112.9 112.9 112.2 106.2 106.9 108.2 110.7 113.4 116.4 113.9 115.8 118.6 117.6 Machinery and related products 27.98 108.8 114.3 117.8 119.4 116.7 119.0 121.4 122.7 123.2 123.4 119.8 113.4 124.0 127.3 Machinery 14.80 110.4 115.5 115.5 117.7 116.2 119.8 122.9 123.7 123.9 126.7 119.3 121.1 127.6 127.0 Nonelectrical machinery 8 43 106.5 107.9 108.0 112.6 111.9 115.5 119.6 121.5 121.9 123.6 119.1 118.0 121.2 120.7 Electrical machinery 6.37 115.7 125.6 125.5 124.4 122.0 125.6 127.2 126.7 126.5 130.8 119.6 125.2 136.1 135.3 Transportation equipment 10.19 103.6 109.8 118.6 119.8 115.2 116.0 117.9 119.8 120.9 117.0 118.0 97.1 116.6 126.4 4.68 111.9 122.7 138.4 140.0 132.1 131.1 133.4 139.7 141.9 133.6 135.0 87.0 128.8 148.3 Aircraft and other equipment.... 5.26 95.7 98.0 101.0 102.1 100.6 102.2 103.6 101.2 101.2 101.6 102.7 104.8 105.4 107.0 Instruments and related products... 1.71 115.8 119.3 121.6 121.4 119.0 118.3 119.4 121.0 121.4 124.1 122.2 125.0 125.2 125.2 Ordnance and accessories 1 28 C C l l a a y yt , g g l l a as s s s , a a n n d d l s u to m n b e e r products 4 2 . . 7 9 2 9 1 1 0 0 4 6 . . 5 3 1 1 1 1 2 3 . . 4 9 1 1 0 0 5 9 . . 6 0 1 9 0 6 0 . . 5 7 9 91 4 . . 0 0 9 9 9 7 . . 6 7 1 1 0 0 0 0 . . 4 6 1 1 0 0 8 9 . . 3 7 1 1 1 1 3 6 . . 9 4 1 1 1 1 8 8 . . 3 7 1 1 1 1 2 7 . . 6 7 1 1 2 2 0 1 . . 1 8 1 1 1 1 9 9 .5 2 1 1 1 1 6 8 .5 1 Lumber and products 1.73 101.3 109.9 99.7 89.1 85.9 102.9 100.0 105.8 109.6 117.6 103.9 117.2 118.6 111.9 Furniture and miscellaneous 3.05 114.1 125.5 125.4 122.6 113.7 117.0 120.1 121.8 123.3 126.4 122.5 129.1 131.9 131.9 Furniture and fixtures 1.54 115.3 125.4 125.2 125.7 116.2 120.6 122.5 123.6 124.3 127.9 124.8 132.1 133.1 132.4 Miscellaneous manufactures 1.51 112.8 125.5 125.5 119.5 111.1 113.4 117.5 120.0 122.2 124.9 120.2 126.0 130.6 131.4 Nondurable manufactures Textiles, apparel, and leather 7.60 108.4 117.3 112.5 107.8 109.0 119.5 122.0 118.0 116.6 117.9 102.4 r119.5 117.6 117.4 Textile mill products 2 90 106.9 117.5 113.7 110.1 111.1 116.9 119.1 115.0 119.6 121.2 100.9 r118.3 115.9 115.9 3.59 112.1 121.2 114.7 108.4 109.7 124.6 128.1 124.3 119.5 119.6 107.0 '124.0 122.9 Leather and products 1.11 100.2 104.2 102.3 99.6 101.6 110.1 109.7 105.5 99.1 104.2 91.9 107.9 105.2 Paper and printing 8.17 112.4 120.2 118.0 111.7 111.8 116.1 118.9 118.4 117.7 117.5 108.7 117.2 119.6 122.0 Paper and products 3.43 113.7 125.0 119.0 108.3 114.4 121.5 123.7 122.0 120.0 122.0 107.8 123.5 122.0 126.3 Printing and publishing 4.74 111.5 116.8 117.4 114.1 109.9 112.2 115.5 115.8 116.0 114.3 109.5 112.7 117.9 118.9 Newspapers 1.53 106.0 116.1 118.4 107.4 100.0 105.2 110.8 114.1 115.0 108.6 96.0 101.7 112.1 117.7 Chemicals, petroleum, and rubber 11.54 118.8 125.8 125.1 123.2 124.4 127.5 128.4 129.4 131.0 134.2 125.8 r132.1 134.2 135.9 Chemicals and products 7.58 123.3 129.0 129.4 111.9 127.7 132.2 133.8 135.8 137.1 138.7 131.2 M37.9 138.1 139.8 Industrial chemicals 3.84 129.6 137.3 139.9 139.0 138.6 143.5 144.8 145.2 146.8 147.7 142.5 M48.0 149.2 Petroleum products 1 97 108.7 112 3 109 6 109 0 110 5 109 4 110.0 106.3 110.9 117.4 117.9 116.6 118 1 114.7 Rubber and plastics products 1.99 111.9 127.0 123.9 119.5 125.7 127.5 126.1 127.8 127.6 133.5 113.0 M25.4 135.1 Foods, beverages, and tobacco 11.07 110.4 123.4 114.2 105.7 103.1 103.6 106.0 107.3 109.5 114.7 115.2 122.4 126.8 126.5 Foods and beverages 10.25 110.3 123.4 114.0 106.8 102.7 103.1 105.3 107.0 108.9 114.5 116.4 122.5 127.4 Food manufactures 8.64 110.6 124.7 116.5 108.5 105.3 104.6 105.0 106.6 107.5 111.8 115.7 123.7 130.5 Beverages 1.61 107.9 115.4 100.0 97.0 89.2 95.0 106.5 109.4 116.5 129.1 120.3 116.0 110.7 Tobacco products .82 110.8 123.9 115.9 91.5 107.9 110.5 115.0 110.1 116.6 116.9 100.4 121.2 119.4 Mining Coal, oil, and gas 6.80 100.9 102.7 104.1 105.5 105.4 105.3 104.6 104.0 101.4 103.5 96.2 102.8 103.7 105.3 Coal 1.16 90.1 103.4 100.9 95.9 95.1 95.4 96.1 94.9 93.1 103.8 60.7 98.6 99.2 102.5 Crude oil and natural gas 5 64 103.1 102.6 104.8 107.5 107 6 107.4 106.3 105.9 103 0 103.4 103.6 103.7 104.6 105.9 Oil and gas extraction 4.91 104.9 104.2 105.7 108.0 108.5 109.5 108.6 107.9 104.7 105.1 104.8 104.9 106.0 107.4 Crude oil 4.25 103.0 102.2 102.5 104.8 105.3 107.0 105.7 105.9 103.1 104.0 103.6 103.7 104.9 105.1 Gas and gas liquids .66 116.8 116.7 126.0 128.5 128.9 125.5 126.7 120.5 114.8 111.9 Oil and gas drilling .73 91.3 92.0 98.9 103.8 101.3 92.8 91.2 92.4 91.9 92.0 95.2 95.7 95.1 95.9 Metal, stone, and earth minerals 1.43 110.5 121.6 110.5 100.5 91.8 96.2 98.5 108.8 125.0 126.5 123.9 123.5 119.7 122.5 Metal mining .61 111.9 126.0 110.9 103.0 101.6 106.3 105.3 112.9 133.7 134.8 126.6 119.5 113.3 123.7 Stone and earth minerals .82 109.4 118.3 110.2 98.6 84.6 88.7 93.5 105.8 118.6 120.3 121.8 126.4 124.5 121.7 Utilities Electric 4.04 123.2 124.4 122.0 128.5 137.5 133.2 131.6 125.7 124.5 130.8 135.3 139.8 139.5 Gas 1 28 121 5 NOTE.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in 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

1684 BUSINESS ACTIVITY SELECTED BUSINESS INDEXES (1957-59= 100) Industrial production fac M tu a r n in u g - 2 Prices 3 Nonag- Period Major market groupings Ma g jo ro r u i p n i d n u g s s try C s t t i o r o u n n - - r t e i u c m r u a - l l - F l r o c e a a i r d g - - ht D m s e t p o e a n re r t t- Whole Total Final products Mate- t c ra o c n t - s m T p o e l n t o a t y l — - i p m E lo e m n y - t - P ro a l y ls - ings sales s C um on e - r m c s o o a d m l i e t - y Total g s C o u o o m d n e s r E m q e u n ip t - rials Mfg. M in i g n- U iti t e il s - 1948 68.4 66.6 69.2 58.3 70.2 68.9 84.0 41 85.4 102.5 64.8 127.6 70 83.8 87.9 1949 64.7 64.5 68.8 52.0 64.8 65.1 74.5 43.4 44 83.3 93.6 60.0 108.2 67 83.0 83.5 1950 74.9 72. 78.6 56.4 76.9 75.8 83.2 49.5 61 86.0 99.4 68.9 117.1 72 83.8 86.8 1951 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 63 91.0 106.1 80.3 121.5 76 90.5 96.7 1952 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 67 92.9 106.1 84.5 115.0 78 92.5 94.0 1953 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 70 95.6 111.6 93.6 116.6 80 93.2 92.7 1954 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 76 93.3 101.8 85.4 104.6 80 93.6 92.9 1955 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 91 96.4 105.5 94.8 115.3 93.3 93.2 1956 99.9 98. 95.5 103.7 101.6 100.2 104.8 87.9 92 99.7 106.7 100.2 115.9 94 94.7 96.2 1957 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 93 100.6 104.7 101.4 108.2 96 98.0 99.0 1958 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 102 97.8 95.3 93.5 93.8 99 100.7 100.4 1959 105.6 105.7 106.6 104. 105.4 106.0 99.7 108.0 105 101.6 100.0 105.1 97.9 105 101.5 100.6 1960 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.4 99.7 106.6 95.3 106 103.1 100.7 1961 109.8 111.3 112.7 108.3 108.4 109.7 102.6 122.8 108 102.9 95.6 105.2 91.2 109 104.2 100.3 1961—Oct 113.5 114.8 115.9 112.4 112.9 113.5 104.4 126.5 114 103.5 96.3 108.1 94.4 109 104.6 100.0 Nov 114.8 116.4 117.5 114.1 113.9 115.0 105.2 126.7 116 103.7 97.1 110.3 95.3 112 104.6 100.0 Dec 115.6 116.9 117.9 114.9 114.8 115.9 104.7 127.3 119 103.7 97.3 111.6 95.6 113 104.5 100.4 1962—Jan 114.3 115.7 116 112.7 113.7 114.4 104.0 128.8 115 103.5 96.8 110.8 93.9 110 104.5 100.8 Feb 116.0 116.8 117 115.0 115.5 116.3 104.3 129.0 119 104.2 97.7 112.7 96.8 110 104.8 100.7 Mar 117.0 118.2 118 116.1 116.9 117.4 104.8 128.8 131 104.4 98.4 113.4 96.6 117 105.0 100.7 Apr 117.7 118.5 119 117.0 117.1 118.1 105.5 128.1 121 105.1 99.6 114.8 96.1 113 105.2 100.4 May 118.4 120.2 121 118.5 117.0 118.8 104.8 129.8 117 105.4 99.8 113.7 94.0 115 105.2 100.2 June 118.6 120.6 120 120.1 117.1 118.9 104.6 132.4 120 105.6 99.9 113.5 89.9 111 105.3 100.0 July 119.3 121.7 121 121.8 117.0 119.7 106.1 133.5 117 105.8 99.7 113.1 89.6 114 105.5 100.4 Aug 119.7 121.6 120 123.2 117.7 120.3 105.5 132.3 118 105.6 98.7 112.5 90.2 115 105.5 100.5 Sept 119.9 '122.0 '121 '123.6 '118.0 120.5 r105.8 r132.3 113 105.7 98.8 115.2 90.0 117 106.1 101.2 Oct 119.5 122.2 121 124.2 117.2 119.8 106.6 133.5 117 105.8 98.6 113.2 90.3 "HO 106.0 r100.6 Nov '119.5 121.7^124.0 '117.2 119.8 ^106.2 "133.5 '105.7 ^98.0 '113.2 94.1 100.7 1 Employees only, excludes personnel in the armed forces. and heavy engineering; does not include data for Alaska and Hawaii. 2 Production workers only. Employment and payrolls: Based on Bureau of Labor Statistics data; 3 Prices 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total construction 36,318 37,135 3,291 3,008 2,712 2,658 2,749 3,986 3,860 4,009 3,900 3,747 3,631 3,273 3,425 By type of ownership: Public 1? 587 1? 547 1,021 942 1,091 922 877 1,475 1 1 1 331 1 1 039 1099 1 003 Private 731 ?4 588 2,270 2,066 1 1,736 1 871 2,511 ,650 ,78? 2,569 ,516 2,591 174 By type of construction: Residential 15,105 16,123 1,498 1,306 1,125 1,190 1,192 1,552 1,816 1,819 1,656 1,623 1,651 1,519 1? ?40 1? 1,005 1,095 883 853 1,325 1JO? 1 1,242 1 197 1 177 1019 Public works and utilities • 8,973 8,897 787 607 704 615 664 1,108 943 915 1,002 926 802 735 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 1685 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Period Total Total d N f e r a e n o r s t n m i i - a - l Total In tr d i u a B l s u - sin m e C s e s 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 i e l - - - r Total M ta i r l y i- H w ig a h y - S w a e a n w t d e e r r Other 1953 37,019 25,783 13,777 8,4^5 2,229 1,791 4,475 3,511 11,236 [,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 [,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 [,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 I960 55,556 39 603 22,546 12,354 2,851 4 180 5 323 4 703 15 953 I 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 .368 5,818 ,581 8,267 1961—Nov r60,744 42,044 24,504 12,542 2,554 4 608 5,380 4 998 18,700 1,457 7,099 ,586 '8.558 Dec '59,006 41,881 24,440 12,515 2,537 4,641 5,337 4,926 17,125 1,001 6,235 ,590 8,299 1962—Jan '59,166 41,077 23,187 12,875 2,590 4,928 5,357 5,015 18,089 r924 7,250 ,636 '8,279 Feb r56,714 39,909 22,245 12,622 2,592 4 756 5,274 5,042 r16 805 rl,211 5,414 8 514 Mar r57,748 40,553 22,507 12.897 2,653 4,795 5,449 5,149 ''17,195 r1,328 5,771 |715 8,381 Apr '58,279 41,747 23,484 12,973 2,792 4,793 5,388 5,290 16,532 1,381 5,057 1,775 '8.319 May r60,764 43,472 25,018 13,119 2,886 4,752 5,481 5,335 17 292 rl,354 5,830 ,805 r8.303 June 62,678 44,842 26,118 13,354 2,950 4,865 5,539 5,370 17,836 1,549 5,989 1,807 8;491 July 62,084 44,908 25,987 13,516 2,962 5,110 5,444 5,405 17,176 1,170 5,876 1,802 8,328 Aus 62,829 45,244 25,957 13,835 2,936 5,273 5,626 5,452 17,585 1,244 6,195 ,771 8,375 Sept 62,358 44,976 25,813 13,692 2,930 5,214 5,548 5,471 17,382 1,164 6,140 1,754 8,324 Oct.P 63,123 43,532 24,675 13,484 2,885 5 018 5,581 5 373 19 591 7,786 1,764 Nov p 61,628 43,326 24,601 13,402 2,820 4,967 5,615 5,323 18,302 786 l Beginning with 1959, includes data for Alaska and Hawaii. Beginning with 1959, figures are Census Bureau estimates. Data before 1959 are joint estimates of the Depts. of Commerce and Labor. NOTE.—Monthly data are at seasonally adjusted annual rates. NEW HOUSING STARTS (In thousands of units) Annual rate, By area 1 By type of ownership Government- (private only) underwritten Period Total Non- Prr*fate Tota 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 J.068 933 42 94 36 409 252 157 1954 1,220 897 324 ,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 [,118 780 338 ,094 981 31 82 24 465 195 271 1957 ,042 700 342 993 840 33 120 49 322 193 128 1958 I 209 827 382 142 933 39 170 68 439 337 102 1959 1,379 946 432 .341 1,079 49 215 36 458 349 109 1959 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 I960 1,296 889 407 1,252 995 44 214 44 336 261 75 1961 r 16S '948 '417 1,313 '975 44 '295 52 328 244 83 1961—Oct 1.443 1.413 '130 '89 41 '125 92 4 '28 5 33 23 9 Nov . .. ,368 1,345 106 '73 '33 103 74 '4 25 3 30 23 7 Dec 1,295 r1,255 87 63 24 82 '56 '2 25 4 23 17 6 1962—Jan ,273 1,247 83 60 23 81 54 3 23 2 23 18 4 Feb ,152 1,134 78 56 22 76 54 3 20 1 20 15 5 Mar ,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 ,579 1,566 156 112 44 154 107 5 42 2 34 26 8 June ,425 1,399 140 96 43 136 96 4 36 3 31 24 7 July ,466 [,447 139 98 42 136 95 4 36 4 33 25 7 Aug ,529 1,500 148 99 49 146 101 4 41 2 36 28 8 Sept p ,278 V1,250 82 33 77 4 32 26 20 6 Oct V ,497 V1,463 *132 90 42 P\29 *2 30 23 7 * Beginning with 1959, based on revised definition of metropolitan areas. Statistics, for which annual totals are given including overlap for 1959. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1686 EMPLOYMENT LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force Unemploy- Period in T s o t t i a tu l t n io o n n a - l T la o b t o a r l Employed * Not in the m ra e t n e t 2 population force Total In nonagri- In p U l n o e y m ed - (pe S r .A ce . nt) Total cultural industries 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 I960 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—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 S 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 Sept 130 546 74 914 72,179 68,668 63,103 5,564 3 512 55,631 5.8 Oct 130,730 74,923 72,187 68,893 63,418 5,475 3,294 55,808 5.5 Nov 130,910 74,532 71,782 67,981 63,098 4,883 3,801 56,378 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 fa g c- 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 u o s n b p l o & ic rta- Trade Finance Service G m ov e e n r t nutilities 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—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 July 55,617 16,908 648 2,738 3,913 11,652 2,792 7.783 9.183 Aug 55,536 16,795 646 2,731 3,932 11,627 2 796 7 805 9 204 Sept 55,583 16,805 641 2,715 3,928 11,612 2,799 7,809 9,274 Oct * . . . . 55,620 16,776 639 2,710 3 933 11 603 2 811 7 824 9 124 55,589 16,711 639 2,687 3,922 11,597 2,817 7,845 9,371 NOT SEASONALLY ADJUSTED 1961—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. 55,493 16,782 648 2,982 3,948 11,540 2,839 7,884 8,870 Aug 55,709 16,931 658 3,031 3,963 11,558 2,841 7,867 8,860 Sept 56,252 17,127 651 2,978 3,959 11,627 2,813 7,856 9,241 Oct.p. . . 56,306 17,024 646 2,930 3,957 11,691 2,805 7,863 9,390 NOV.P 56,206 16,908 641 2,792 3,938 11,838 2,803 7,829 9,457 * Data includes Alaska and Hawaii beginning with 1959. ending nearest the 15th of the month. Proprietors, self-emplo>ed 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 1687 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1961 1962 1961 1962 Nov. Sept. Nov." Nov. Sept. Nov." Total. 12,225 12,446 12,416 12,348 12,414 12,751 12,665 12,545 Durable goods 6,766 6,953 6,932 6,879 6,883 7,034 7,028 7,001 Ordnance and accessories 98 101 102 100 99 101 101 101 Lumber and wood products 538 541 538 544 542 567 557 548 Furniture and fixtures 310 315 313 313 316 323 322 319 Stone, clay, and glass products 457 462 465 460 463 479 474 466 Primary metal industries 944 906 892 885 953 911 898 894 Fabricated metal products 838 866 854 847 856 872 871 865 Machinery except electrical 974 1,026 1,035 1,030 960 1,021 1,018 1,016 Electrical machinery 983 1,032 1,048 1,034 1,013 1,059 1,063 1.065 Transportation equipment 1.084 1,160 1,141 1,116 1,124 1,133 1,152 1,157 Instruments and related products 226 228 227 229 229 230 230 232 Miscellaneous manufacturing industries. 314 316 317 321 330 338 342 337 Nondurable goods 5,459 5,493 5,484 5,469 5,531 5,717 5,637 5,544 Food and kindred products 1,200 1,179 1,177 1,179 1,220 1,330 1,265 1,199 Tobacco manufactures 77 84 81 79 82 105 98 84 Textile-mill products 797 787 783 780 805 796 793 788 Apparel and other finished textiles 1,073 1,105 1,103 1.098 1,092 1,125 1,117 1,118 Paper and allied products 473 477 479 476 478 485 485 481 Printing, publishing and allied industries 597 599 598 598 604 603 606 605 Chemicals and allied products 511 521 522 523 510 523 523 522 Products of petroleum and coal 126 121 122 121 126 123 122 121 Rubber products 288 304 301 300 296 309 311 309 Leather and leather products 317 316 318 315 320 319 317 318 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 Nov. Sept. NOV.P Nov. Sept. Oct.P Nov. Sept. Oct.* Nov." Total. 40.6 40.5 40.1 40.4 95.82 97.68 96.72 97.36 2.36 2.40 2.40 2.41 Durable goods 41.2 41.0 40.7 41.1 104.39 105.88 105.37 105.78 2.54 2.57 2.57 2.58 Ordnance and accessories 41.5 41.2 41.1 40.9 116.90 117.01 117.01 116.44 2.81 2.84 2.84 2.84 Lumber and wood products 39.6 40.2 39.5 39.8 78.41 82.01 79.80 78.41 1.99 2.01 1.99 1.98 Furniture and fixtures 41.0 40.8 40.4 40.4 80.21 81.54 81.14 79.77 1.94 1.96 1.96 1.96 Stone, clay, and glass products 40.8 41.3 40.9 40.8 97.17 101.50 100.60 99.63 2.37 2.44 2.43 2.43 Primary metal industries 40.6 39.9 39.6 40.1 119.39 118.80 116.62 117.91 2.97 2.97 2.96 2.97 Fabricated metal products 41.5 41.0 41.0 41.4 104.08 106.66 105.88 105.88 2.52 2.57 2.57 2.57 Machinery except electrical 41.6 41.7 41.5 41.5 109.18 112.74 112.61 111.79 2.65 2.71 2.72 2.72 Electrical machinery 40.7 40.6 40.5 40.4 96.70 99.22 98.49 98.42 2.37 2.42 2.42 2.43 Transportation equipment 42.7 42.4 42.2 43.3 123.83 124.49 126.52 129.03 2.90 2.95 2.97 2.98 Instruments and related products 41.0 40.8 40.7 40.3 99.53 100.61 100.21 99.47 2.41 2.46 2.45 2.45 Miscellaneous manufacturing industries.. 40.1 40.0 39.4 39.4 77.57 78.60 78.60 78.61 1.92 1.96 1.97 1.98 Nondurable goods 39.7 39.7 39.2 39.4 85.39 86.80 85.89 86.72 2.14 2.17 2.18 2.19 Food and kindred products 40.8 41.1 40.5 40.5 89.79 92.80 91.17 92.80 2.19 2.22 2.24 2.28 Tobacco manufactures 38.8 39.5 37.9 39.3 69.32 70.72 67.60 71.39 1.81 1.70 1.72 1.84 Textile-mill products 40.8 40.3 40.0 40.1 68.31 67.54 68.45 68.78 1.65 1.68 1.69 1.69 Apparel and other finished textiles 36.1 36.4 35.8 36.1 60.62 61.32 59.95 60.62 1.67 1.68 1.67 1.67 Paper and allied products 43.2 42.6 42.2 42.5 102.38 104.49 103.28 103.28 2.37 2.43 2.43 2.43 Printing, publishing and allied industries. 38.2 38.3 37.9 38.1 106.09 109.62 107.44 108.11 2.77 2.84 2.82 2.83 Chemicals and allied products 41.8 41.5 41.4 41.4 109.52 110.81 110.68 110.95 2.62 2.67 2.68 2.68 Products of petroleum and coal 41.6 42.1 41.7 41.5 126.46 131.09 126.88 126.99 3.04 3.07 3.05 3.06 Rubber products 41.2 41.0 40.6 40.8 100.12 101.76 101.02 100.78 2.43 2.47 2.47 2.47 Leather and leather products 38.1 37.8 37.0 37.3 64.98 64.36 62.80 64.36 1.71 1.73 1.73 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

1688 DEPARTMENT STORES SALES AND STOCKS, BY DISTRICT (1957-59= 100) Federal Reserve district Period U S n t i a t te e s d Boston Y N o e r w k a P p d h h e i i l l a - - C l l a e n v d e- m Ri o c n h d - l A a t nt - a c C a h g i o - Lo S u t i . s M a i po n l n i e s - K C a i n t s y as Dallas F c S r i a a sc n n o - 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—Oct 109 116 113 108 109 '108 '109 105 '104 106 108 101 115 Nov 112 119 115 111 115 111 111 108 107 109 112 104 118 Dec 113 116 116 111 114 112 112 108 106 108 112 106 120 1962—Jan 110 113 112 110 112 109 110 104 98 104 105 101 119 Feb 110 101 112 104 109 111 118 103 108 103 114 110 120 Mar 117 122 119 110 118 115 126 112 111 109 118 106 123 Apr 113 113 119 111 112 109 108 108 107 116 115 104 118 May 115 110 113 115 117 115 117 112 113 108 116 108 121 June 111 112 108 107 110 110 115 108 105 106 111 107 123 July 114 115 113 109 114 112 118 111 112 112 116 112 123 115 117 117 112 109 115 118 113 108 111 113 107 124 Sept 117 116 120 '113 116 118 121 '115 113 110 118 113 122 Oct 110 112 106 108 112 106 104 103 100 v\2\ NOT SEASONALLY ADJUSTED 1961—Oct 113 '120 121 '114 110 '116 110 109 '109 115 111 103 112 Nov 134 146 146 145 140 134 129 129 128 125 128 120 134 Dec 204 224 213 202 210 208 201 191 185 190 195 184 217 1962—Jan 83 86 90 80 84 77 85 77 75 74 79 79 90 Feb 83 72 87 75 81 78 91 75 78 78 82 80 95 Mar 96 94 99 95 93 92 105 93 90 87 97 91 99 Apr 112 115 113 112 114 113 115 108 105 112 111 103 116 May 110 108 109 110 111 110 111 111 113 103 113 104 110 105 108 105 102 102 101 104 103 97 106 105 96 117 July .. 96 87 86 84 95 94 106 92 94 88 105 102 112 Aue 104 96 94 92 99 103 109 101 103 106 111 108 119 Sept 117 117 120 113 114 118 114 116 114 118 119 109 121 Oct 115 120 112 109 113 111 110 112 "111 102 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—Oct 112 113 '110 107 114 111 110 113 114 109 110 '103 '116 Nov 113 114 113 109 113 114 110 113 116 108 110 106 118 Dec 113 116 112 109 115 114 109 113 119 110 111 106 118 1962 Jan 114 114 112 110 114 116 112 114 112 111 111 111 121 Feb 115 115 114 110 114 117 111 114 114 113 113 113 122 Mar 116 117 113 112 114 118 114 116 115 113 114 114 124 Apr 115 116 112 111 115 118 114 113 117 114 114 111 124 May 117 115 113 112 115 116 114 116 121 112 115 114 127 June 118 115 113 112 117 119 115 121 117 113 114 115 128 July 118 118 113 113 116 119 120 122 117 109 115 114 127 Auc 118 115 116 113 115 117 116 123 116 110 115 112 126 O Se c n t t *' 1 1 1 2 8 0 1 11 1 6 4 1 1 1 1 6 8 ' 1 1 1 1 4 2 1 1 1 1 8 8 1 1 1 1 9 7 1 1 1 2 9 5 1 12 2 4 2 1 11 1 5 7 ' 1 1 1 1 3 3 v\ 11 \ 1 \ n 1 \ 1 2 0 PJ 1 2 2 9 7 NOT SEASONALLY ADJUSTED 1961—Oct '125 131 '125 '123 130 126 123 123 130 123 '122 '117 '128 Nov 130 135 131 127 133 130 129 126 131 126 127 121 134 Dec 104 108 105 100 105 105 98 101 106 104 103 98 108 1962—Jan 102 100 102 96 98 101 101 102 100 99 101 96 109 Feb 108 106 106 103 106 108 108 106 106 106 107 106 115 Mar 116 115 114 112 114 119 116 116 116 111 114 115 125 Apr 118 117 116 116 116 121 117 118 121 112 116 115 125 May 117 116 115 114 115 118 113 119 120 111 114 112 125 June 112 109 106 106 111 112 107 117 111 104 109 108 123 July 112 108 102 103 112 111 110 119 112 107 110 109 123 Aug 117 114 113 109 115 119 116 122 117 111 112 115 126 Sent 125 123 121 '119 125 126 126 129 123 '120 116 117 132 Oct H35 134 134 131 135 135 140 135 133 127 P123 ^126 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 rrocth 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 1689 DEPARTMENT STORE MERCHANDISING DATA Amounts (millions of dollars) Ratios to sales Period Out- Out- Stocks Sales Stocks st i a n n g d- c R ei 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 1.1 4.1 1954 409 ,140 388 410 412 3.0 1.0 4.0 1955 437 ,195 446 444 449 2.9 1.1 4.0 1956 454 ,286 470 459 458 3.0 1.1 4.1 1957 459 ,338 461 461 458 3.1 1.1 4.1 1958 462 ,323 437 462 464 3.0 1.0 4.1 1959 488 ,391 510 495 498 3.0 1.1 4.1 1960 494 ,474 518 496 493 3.1 1.1 4.3 1961 503 ,485 530 508 512 3.1 1.1 4.3 1961 —Oct... r525 ,705 '661 r653 r656 3.2 M.3 '4.5 Nov.. 630 ,776 555 698 608 2.8 .9 3.7 Dec. 965 ,406 391 595 431 1.5 .4 1.9 1962—Jan... 408 ,408 476 410 495 3.5 1.2 4.6 Feb.., 360 ,466 532 418 474 4.1 .5 5.6 Mar.. 472 ,576 498 582 548 3.3 .1 4.4 Apr.. 502 ,589 457 515 474 3.2 .9 4.1 May. 507 ,571 499 489 531 3.1 .0 4.1 June. 472 ,509 679 410 590 3.2 .4 4.6 July.. 406 ,490 724 387 432 3.7 .8 5.5 Aug.. 482 ,571 675 563 514 3.3 .4 4.7 Sept.. 493 ,700 706 622 653 3.4 .4 4.9 Oct.* 553 ,843 682 696 672 3.3 1.2 4.6 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 3 Period Total * military E - x ai c d l u s d h i i n p g ments 2 1960 1961 1962 1960 1961 1962 1960 1961 1962 Jan J 561 J 644 J 641 J 4R4 1,536 1,592 J 174 J 15ft Feb 1,579 ,671 1,775 1,500 1,606 1,712 1,329 ,068 ,224 Mar ,753 ,933 ,845 1,636 1,888 1.783 ,410 ,255 ,386 Apr 1,817 1,707 1,881 1,703 1,648 1,799 1,294 ,063 ,333 May ,814 1,749 ,973 1,720 1,677 1,892 1,289 ,223 1,454 June ,742 ,699 1,970 1,642 1,644 1,894 1,332 ,232 ,350 July 1,702 1,637 1,709 1,632 1,558 1,622 1,183 ,285 ,337 AUJT 1,619 1,669 1,683 1,556 1,598 1,635 1,259 ,252 ,359 Sept ,612 1,631 1,761 1,559 1,557 1,711 1,193 ,197 r ,342 Oct..:: 1,746 1,890 .614 1,692 1 817 1,583 1,184 1,364 .419 Nov ,799 ,818 .716 1,759 1,197 ,342 Dec . .. .. .806 .827 1,752 1,777 1.175 .295 Jan.-Oct 16,945 17,230 17,853 16,124 16.529 17.223 12,647 12,089 13,597 * 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

1690 PRICES CONSUMER PRICES (1957-59= 100) Housing Read- Other Period it A em ll s Food Total Rent tr e G a i l c n e a i d c s t - y p S l f a e e u o u n t e l r d m l i o s d - H n i f n o u is g u r h - s se- o H h t p o i o e o u l r n d s a e - - p A a p re - l T p t o r i a o r n t n a s - - M c ic a e a r d e l - s P c 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 o r e v d d s - s 1929 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 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 I960 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 Oct 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 AUR 105.5 103.8 104.8 105.8 108.0 100.1 98.5 107.4 102.5 107.4 114.6 106.8 110.3 105.5 Sept 106.1 104.8 104.9 105.9 108.0 101.3 98.7 107.6 104.6 107.8 114.7 106.8 110.0 105.6 Oct 106.0 104.3 105.0 106.1 108.0 102.4 98.8 107.6 104.9 108.1 114.9 106.9 109.5 105.6 NOTE.—Bureau of Labor Statistics index for city wage-earner and clerical-worker families. WHOLESALE PRICES: SUMMARY (1957-59= 100) Other commodities All Farm Proc- Period m c t o o ie m d s i - - p u r c o t d s - f e o s o se d d s Total t T e il e t e c x s . - , H e i t d c e . s, Fuel, C ic e h t a e c l m . s, - R b e u t e c b r . , - L b e u t e c m 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 90.1 102.8 94. 95.9 96.1 86.3 99.4 88.7 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 84.3 83.2 93.9 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. 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. 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. 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—Oct.. 100.0 95.1 '100.5 100.5 100.1 108.9 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 99.3 101.6 103.8 106.3 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. 93.3 95.2 99.9 100.6 102.3 99.1 102.1 103.8 105.6 Mar. 100.7 98.4 101.4 100.8 100.5 107.4 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 97.1 100.8 100.2 102.3 99.0 102.1 105.1 106.0 June 100.0 95.3 99.8 100.7 100.8 108.0 99.6 97.6 93.0 97.3 100.5 99.8 102.2 98.9 101.9 104.1 105.4 July. 100.4 96.5 100.8 100.8 100.9 107.5 100.0 97.2 92.7 97.5 100.0 99.7 102.3 98.8 101.6 104.0 107.6 Aug. 100.5 97.6 101.5 100.6 100.8 107.0 99.5 97.0 92.7 97.4 99.7 99.8 102.3 98.7 101.6 104.2 107.2 Sept. 101.2 100.6 103.3 100.8 100.6 107.5 100.8 96.9 r92.8 r97.0 99.5 99.7 102.3 98.6 M01.5 104.2 109.1 Oct.. 100.7 98.7 101.5 100.7 100.5 107.5 100.8 97.0 93.2 96.6 99.3 99.4 102.4 98.5 101.5 104.4 108.7 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICES 1691 WHOLESALE PRICES: DETAIL (1957-59= 100) 1961 1962 1961 1962 Group Group Oct. Aug. Sept. Oct. Oct. Aug. Sept. Oct. Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 89.1 90.9 94.9 97.5 Woodpulp 95.0 93.6 93.6 91.3 Grains 97.0 98.1 98.6 98.5 Wastepaper 108.1 95.1 96.4 96.1 Livestock and poultry 89.4 98.5 104.4 98.6 Paper 102.0 102.6 102.4 102.4 Plant and animal fibers 98.2 98.4 97.4 97.5 Paperboard 89.7 94.0 94.0 94.0 Fluid milk 105.8 100.8 101.6 102.3 Converted paper and paperboard . 100.2 100.4 100.0 100.0 Eggs 106.2 98.0 110.7 103.1 Building paper and board 100.8 97.1 97.1 96.4 Hay and seeds 101.7 105.2 99.8 103.1 Other farm products 93.5 89.9 90.8 89.7 Metals and Metal Products: Processed Foods: Iron and steel 100.9 99.1 99.0 98.7 D C C M e a a e r n i a e r n y t a , e l d p p a r o n o a u d d n lt u d b r c y a t f , k s r o e a a r z n y n e d d n p f i r c i f o s r e d h u u c it r c s e t , s am and veg- 1 1 9 0 0 4 9 6 . . . 7 5 0 1 1 1 0 0 0 8 1 6 . . . 0 0 1 1 1 1 0 0 0 6 7 6 . . . 8 8 0 1 1 10 0 0 7 0 7 . . . 7 0 8 N P H M l o a u e r n m t d a f l w e b r i c a r n o o r g e n u t s e a q i m n u e i e p r t s m als ent 1 1 1 1 0 0 0 0 0 2 4 4 . . . . 9 0 3 2 1 1 9 9 0 0 9 7 3 3 . . . . 0 8 7 7 1 1 9 9 0 0 8 7 3 3 . . . . 9 8 7 7 1 1 9 9 0 0 8 8 3 3 . . . . 1 1 7 7 A S P u a n e c g i t k m a a a r b a g l a l e e n d s fa d t b s c e o a v n e n f r d e a c g o t e i i l o s m ne a r t y erials 1 9 8 8 0 9 6 2 0 . . . . 5 0 4 4 1 9 8 8 0 7 9 2 2 . . . . 1 5 6 7 1 ' ' 9 9 8 0 6 1 2 2 . . . . 6 4 4 1 1 9 9 8 0 6 5 0 3 . . . . 4 9 2 0 H F F a a e u b b a c r r t i t i i s c c n a a g t t e e e d d q u n s i t o p r n m u s c e t t r n u u t r c a t l u m ra e l t m al e p ta r l o p d r u o c d t - s. 1 9 0 4 3. .4 4 1 9 9 0 2 8 3 . . . 9 3 9 1 9 9 0 8 2 3 . . . 2 6 9 1 9 9 0 2 8 3 . . . 6 2 8 Crude vegetable oils 96.0 77.9 '76.7 80.8 Refined vegetable oils 118.9 85.2 84.6 86.2 Machinery and Motive Products: Vegetable oil and products 102.9 92.9 '92.6 90.9 Miscellaneous processed foods 105.3 101.1 102.8 104.6 Agricultural machinery and equip 107.4 109.4 109.4 109.6 Construction machinery and equip.. . 107.6 107.7 107.7 108.0 Textile Products and Apparel: Metalworking machinery and equip... 107.4 109.5 109.3 109.4 General purpose machinery and Cotton products 101.5 101.7 101.3 101.0 equipment 102.3 103.3 103.6 103.7 Wool products 97.7 99.3 99.4 99.6 Miscellaneous machinery 103.0 103.8 103.6 103.6 Man-made fiber textile products 92.6 94.3 94.0 93.6 Special industry machinery and equip- Silk products 114.6 132.4 125.2 129.5 ment (Jan. 1961 = 100) 100.7 102.0 102.0 102.2 Apparel 101.2 101.8 101.6 101.7 Electrical machinery and equip 99.5 98.2 98.1 98.1 Other textile products 124.4 119.0 121.6 121.9 Motor vehicles 100.5 100.9 100.9 100.9 Transportation equip., RR. rolling Hides, Skins, Leather, and Products: stock (Jan. 1961=100) 100.5 100.5 100.5 100.5 H L Fo e id a o t e t h w s e e a r a n r d skins 1 1 1 2 0 1 1 8 1 . . . 2 4 5 1 1 1 0 0 0 5 8 6 . . . 1 9 8 1 1 1 1 0 0 0 8 6 . . . 8 8 6 1 1 1 0 0 0 8 8 6 . . . 8 7 5 Furni b t l u e r s e : and Other Household Dura- Other leather products 103.6 103.9 r104.0 105.2 Household furniture 103.1 104.0 103.9 104.0 Fuels and Related Products, and Power: Commercial furniture 102.1 102.5 102.5 102.5 Floor coverings 99.4 96.7 96.7 96.8 C C G o o a a k s l e fuels (Jan. 1958= 100) 1 1 9 0 1 8 3 9 . . . 0 6 4 1 1 9 0 1 5 3 7 . . . 6 6 8 1 1 '9 2 0 6 0 3 . . . 6 1 6 1 1 9 2 0 7 2 3 . . . 0 7 6 H T O e o t l h u e e s v r e i s h h i o o o l u n d , s e r a h a p d o p i l l d o i a s d , n u c a e n ra s d b l p e h g o o n o o d g s raphs.. 1 9 9 0 5 3 2 . . . 2 7 7 1 r9 9 0 3 0 2 . . . 4 8 9 1 r9 9 0 3 0 3 . . . 2 7 1 1 9 9 0 3 0 2 . . . 1 7 8 Electric power (Jan. 1958= 100) 102.5 102.8 102.8 102.7 Crude petroleum and natural gasoline. 98.2 98.2 98.2 98.2 Nonmetallic Mineral Products: Petroleum products, refined , 95.8 97.2 99.2 Flat glass 96.2 '96.6 '96.6 96.6 Chemicals and Allied Products: Concrete ingredients 102.9 103.3 103.3 103.3 Concrete products 102.7 102.8 102.8 102.8 Industrial chemicals , 97.3 95.9 95.9 96.1 Structural clay products 103.3 103.6 103.6 103.6 Prepared paint 103.6 103.8 103.8 103.8 Gypsum products 105.0 105.0 105.0 105.0 Paint materials 98.0 95.3 94.5 93.9 Prepared asphalt roofing 102.8 89.4 89.4 89.4 Drugs and Pharmaceuticals 97.1 95.0 95.0 94.9 Other nonmetallic minerals 102.0 101.7 101.5 101.9 Fats and oils, inedible 78.1 73.0 72.3 76.7 Mixed fertilizers 103.2 103.9 104.1 104.1 Fertilizer materials 104.4 98.4 98.6 99.0 Tobacco Products and Bottled Bev- Other chemicals and products 99.0 99.4 r99.5 99.5 erages: Tobacco products 102.0 102.0 102.0 102.1 Rubber and Products: Alcoholic beverages 100.5 101.1 101.1 101.5 Crude rubber 96.7 92.3 92.0 93.6 Nonalcoholic beverages 116.2 117.1 117.1 117.1 Tires and tubes 92.9 86.4 86.4 86.4 Miscellaneous rubber products 99.4 99.1 r99.4 99.9 Miscellaneous Products: Lumber and Wood Products: Toys, sporting goods, small arms. . 101.6 101.0 101.1 101.2 Manufactured animal feeds 98.2 110.2 113.7 112.8 Lumber 94.0 97.7 '97.2 96.7 Notions and accessories 98.7 98.7 98.7 Millwork 101.2 102.7 '102.3 102.3 Jewelry, watches, photo equipment 103.9 104.4 104.4 104.4 Plywood 92.5 92.1 92.2 91.9 Other miscellaneous products 101.6 101.0 101.2 101.8 NOTE.—Bureau of Labor Statistics Index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1692 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 III IV I II III 104.4 56.0 125.8 284.6 442.8 444.5 482.7 503.4 518.7 522.3 538.6 545.0 552.0 555.3 79.0 46.4 81.9 195.0 285.2 293.2 313.5 328.5 338.1 340.1 346.1 350.2 354.9 358.2 Durable goods 9.2 3.5 9.7 30.4 40.4 37.3 43.6 44.8 43.7 44.0 46.6 46.3 47.2 47.1 37.7 22.3 43.2 99.8 137.7 141.6 147.1 151.8 155.2 156.2 157.2 159.9 161.3 163.0 Services 32.1 20.7 29.0 64.9 107.1 114.3 122.8 131.9 139.1 139.9 142.3 144.1 146.3 148.1 16.2 1.4 18.1 50.0 66.1 56.6 72.7 72.4 69.3 72.4 76.6 75.9 77.4 76.3 8.7 1.4 6.6 24.2 36.1 35.5 40.2 40.7 41.6 42.6 43.2 41.6 44.5 46.1 Residential nonfarm 3.6 .5 3.5 14.1 17.0 18.0 22.3 21.1 21.0 21.9 22.8 21.2 23.3 24.3 Other 5.1 1.0 3.1 10.1 19.0 17.4 17.9 19.7 20.5 20.7 20.4 20.5 21.2 21.8 Producers* durable equipment 5.9 1.6 6.9 18.9 28.5 23.1 25.9 27.6 25.5 25.8 27.4 27.6 28.9 29.2 Change in business inventories 1.7 -1.6 4.5 6.8 1.6 -2.0 6.6 4.1 2.1 4.0 6.0 6.7 4.0 1.0 Nonfarm only .. 1.8 -1.4 4.0 6.0 .8 -2.9 6.5 3.7 1.9 3.8 5.9 6.6 3.9 1.0 Q Exports 7.0 2.4 6.0 13.1 26.2 22.7 22.9 26.4 27.3 26 9 28.3 28.2 29.0 28.3 6.3 2.3 4.8 12.5 21.3 21.5 23.6 23.5 23.3 24.1 24.5 24.5 25.3 25.8 Government purchases of goods and services.. 8.5 8.0 24.8 39.0 86.5 93.5 97.2 99.7 107.4 106.9 112.1 115.2 116.0 118.2 Federal 1.3 2.0 16.9 19.3 49.7 52.6 53.6 53.2 57.0 56.5 59.5 61.9 62.1 62.7 Other I f 1i '3-J 2.0 j \ 13 3 . . 8 2 1 5 4 . . 2 3 44 5 . A 7 4 8 4 . . 3 8 4 7 6 . . 9 2 4 8 5 . . 1 7 4 8 9 . . 7 0 4 8 8 . . 7 4 5 9 0 . . 2 8 5 9 3 . . 6 0 5 9 3 . . 5 2 5 9 4 . . 6 0 .1 .4 .5 .5 .6 .6 6 6 .6 .6 .8 State and local 7.2 6.0 7.8 19.7 36.8 40.8 43.6 46.5 50.4 50.4 52.6 53.3 54.0 55.5 Gross national product in constant (1954) dollars 181.8 126.6 238.1 318.1 408.6 401.3 428.6 440.2 447.9 450.4 463.4 467.4 470.8 471.6 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally and Output (a supplement to the Survey of Current Business) and th 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 III IV I II III National income 87.8 40.2 104.7 241.9 366.9 367.4 400.5 415.5 427.8 431.3 444.0 448.9 456.7 Compensation of employees 51.1 29.5 64.8 154.2 255.5 257.1 278.5 293.7 302.2 304 5 309 9 315 2 321 7 323 8 50.4 29.0 62.1 146.4 238.5 239.8 258.5 271.3 278.8 281.0 286.1 289.9 295.9 297.8 Private 45.5 23.9 51.9 124.1 198.4 196.6 213.1 222.9 227.0 228 8 232 5 235 0 240.1 241.4 Military .3 .3 1.9 5.0 9.6 9.8 9.9 9.9 10.2 10.0 10.8 11.2 11.2 J56.4 Government civilian • . . 4.6 4.9 8 3 17 3 30 5 33 5 35 4 38 5 41 6 42 2 42 8 43 7 44 6 Supplements to wages and salaries .7 .5 2.7 7.8 17.0 17.3 20.1 22.4 23.4 23.5 23.8 25.2 25.8 25.9 Employer contributions for social insurance .1 .1 2.0 4.0 7.8 8.0 9.7 11.4 12.0 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 11.4 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 48 1 49 5 49 1 49 5 49.7 8.8 3.2 10.9 23.5 32.7 32.5 35.1 34.2 34.8 35.1 36.0 36.2 36.8 37.0 Farm 6.0 2.4 6.5 14.0 11.8 13.5 11.4 12.0 13.1 13.1 13.6 12.9 12.8 12.8 5.4 2.0 3.5 9.0 11.9 12.2 11.9 11.9 12.3 12.3 12.5 12.6 12.8 12.9 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 41.7 37.2 47.2 45.6 45.5 46.0 51.1 50.4 50.7 Profits before tax 9.6 .2 17.0 40.6 43.2 37.4 47.7 45.4 45.6 46.3 51.4 50.1 50.9 Profits tax liability 1.4 .5 7.6 17.9 20.9 18.6 23.2 22.4 22.3 22.6 25.1 7AA 24.9 Profits after tax 8.3 -.4 9.4 22.8 22.3 18.8 24.5 23.0 23.3 23.7 26.3 25.6 26.1 Dividends 5.8 2.1 4.5 9.2 12.6 12.4 13.7 14.4 15.0 14.9 15.5 15.8 15.8 Undistributed profits 2.4 -2.4 4.9 13.6 9.7 6.4 10.8 8.6 8.3 8.7 10.8 9.8 16.3 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 -1.5 -.3 -.5 .2 -.3 -.3 .3 -.2 Net interest 6.4 5.0 4.5 5.5 13.4 14.8 16.4 18.1 20.0 20.3 21.0 21.5 22.0 22.5 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 1693 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 III IV I II III 104.4 56.0 125.8 284.6 442.8 444.5 482.7 503.4 518.7 522.3 538.6 545.0 552.0 555.3 Less * Capital consumption allowances 8.6 7.2 9.0 19.1 37.4 38.6 41.0 43.2 45.3 45.7 46.6 47.0 47.5 M7.5 Indirect business tax and nontax liability 7.0 7.1 11.3 23.7 38.2 39.3 42.6 46.5 48.2 48.3 49 7 50 2 51.4 51.8 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 -.7 -.6 -1.5 -3.0 -3.4 -3.1 — 3 1 — 1 9 — 1 4 —4 0 Plus: Subsidies less current surplus of gov- -.1 .2 1.0 1.1 .4 .5 1.7 2.1 2.0 1.8 1.8 1.8 Equals: National income 87.8 40.2 104.7 241.9 366.9 367.4 400.5 415.5 427.8 431.3 444.0 448.9 456.7 Less: Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 41.7 37.2 47.2 45.6 45.5 46.0 51.1 50.4 50.7 Contributions for social insurance.... .2 .3 2.8 6.9 14.5 14.8 17.6 20.6 21.6 21.8 22.1 23.6 23.9 24.6 Plus: Government transfer payments .9 1.5 2.6 14.3 20.1 24.5 25.4 27.3 31.3 31.6 31.6 31.9 32.0 32.3 Net interest paid by government 1.0 1.2 1.3 4.8 6.2 6.2 7.1 7.8 7.3 7.2 7.2 7.3 7.4 7.5 Dividends ... ... . 5.8 2.1 4.5 9.2 12.6 12.4 13.7 14.4 15.0 14.9 15.5 15.8 15.8 15.8 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 Equals: Personal income 85.8 47.2 96.3 228.5 351.4 360.3 383.9 400.8 416.4 419 4 427 3 432 0 439 5 442 6 Less: Personal tax and nontax payments 2.6 7.5 3.3 20.8 42.6 42.3 46.8 51.4 52.8 53.0 54.6 56.4 57.7 58.5 Federal . .. 1.3 .5 2.0 18.2 37.3 36.6 40.4 44.0 45.0 45.1 46.1 48.0 49.2 49.9 State and local 1.4 1.0 1.3 2.6 5.3 5.7 6.4 7.4 7.8 7 9 8 0 8 4 8 5 8 6 Equals: Disposable personal income 83.1 45.7 93.0 207.7 308.8 317.9 337.1 349 4 363 6 366 3 372 6 375 6 381 8 384 1 Less: Personal consumption expenditures... 79.0 46.4 81.9 195.0 285.2 293.2 313.5 328.5 338.1 340.1 346.1 350.2 354.9 358.2 Equals: Personal saving 4.2 -.6 11.1 12.6 23.6 24.7 23.6 20.9 25.6 26.3 26.5 25.4 26.9 '26.0 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 293.8 296.3 310.7 317.3 327.3 329.7 334.5 336.6 340.9 342.1 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 Item 1960 1961 Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct." Total personal income .. . 400.8 416.4 423.6 427.8 430.5 428.8 431.9 435.2 438.3 439.7 440.7 441.9 443.0 443.5 445.6 Wage and salary disbursements 271.3 278.8 283.6 286.4 288.3 287.4 290.3 292.2 295.3 296.0 296.9 297.8 298.1 298.0 298.6 Commodity-producing industries... 110.4 110.8 113.1 115.0 114.9 113.8 115.2 116.1 118.2 118.2 118.1 118.4 118.1 117.9 117.9 Manufacturing only 87.4 87.5 89.4 91.1 91.5 90.8 92.0 92.8 94.4 94.5 94.5 94.5 94.1 94.0 94.0 Distributive industries 71.8 72.9 73.6 73.5 74.5 74.4 75.0 75.4 75.8 76.1 76.2 76.4 76 6 76.7 76.9 Service industries . . 40.7 43.4 43.9 44.2 44.9 44.9 45.1 45.3 45.6 45.9 46.5 46.7 47.0 47.0 47.1 Government 48.4 51.8 53.0 53.7 54.0 54.4 55.0 55.4 55.6 55.8 56.0 56.3 56.5 56.4 56.7 Other labor income 11.0 11.4 11.5 11.6 11.6 11.8 12.0 12.1 12.2 12.3 12.4 12.4 12.4 12.4 12.5 Proprietors* income .. 46 2 47.8 49.1 49.9 49.7 49.2 49.0 49.3 49.4 49.6 49.6 49.6 49.8 49.9 50.2 Business and professional 34.2 34.8 35.6 36.1 36.2 36.1 36.2 36.4 36.6 36.8 36.8 36.9 37.0 37.0 37.1 Farm 12.0 13.1 13.5 13.8 13.5 13.1 12.8 12.9 12.8 12.8 12.8 12.7 12.5 12.9 13.1 11.9 12.3 12.4 12.5 12.5 12.6 12.6 12.7 12.7 12.8 12.8 12.8 12.9 12.9 12.9 Dividends 14.4 15.0 15.3 15.4 15.9 15.6 15.8 15.9 15.8 15.8 15.8 15.7 15.7 16.0 16.3 Personal interest income .... 25.8 27.4 27.9 28.1 28.4 28.6 28.8 29.0 29.2 29.4 29.6 29.8 30.0 30.2 30.4 Transfer rjavments 29.4 33.4 33.5 33.8 34.0 33.9 33.8 34.5 34.2 34.2 34.1 34.2 34.5 34.5 35.2 Less: Personal contributions for 9.2 9.7 9.8 9.9 9.9 10.3 10.4 10.4 10.5 10.5 10.5 10.5 10.5 10.4 10.5 384.7 399.1 405.9 409.5 412.7 411.6 414.8 418.0 421.2 422.6 423.5 424.8 425.9 426.4 428.3 16.1 17.3 17.7 18.3 17.8 17.2 17.1 17.2 17.1 17.1 17.2 17.1 17.1 17.1 17.3 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

1694 FLOW OF FUNDS/SAVING SAVING, INVESTMENT, AND FINANCIAL FLOWS (Billions of dollars) 1960 1961 1962 Transaction category, 1957 1958 1959 1960 1961 or sector II III IV II III IV I II I. Saving and investment A Gross national saving 109.4 102.9 115.6 120.4 116.9 123.1 118.6 114.9 106.0 116.4 119.3 126.1 126.6 130.5 A B Consumer and nonprofit 68.6 68.1 73.9 72.4 76.8 72.7 72.2 71.9 71.3 77.3 77.3 81.4 82.4 80.9 B C Farm and noncorp. business 12.0 20.7 12.4 12.7 12.7 12.8 12.6 12.7 12.6 12.7 12.8 13.0 13.0 13.0 C D Corporate nonfin. business 26.3 25.0 35.6 31.5 35.0 32.4 29.3 28.8 28.2 34.2 36.2 41.2 40.5 41.5 D E Federal Government .... .... 3.7 -7.9 -4.5 4.3 -5.2 4.5 4.6 1.7 -5.0 -6.6 -4.3 -4.9 -5.6 -1.2 E F State and local govt -3.7 -5.0 -4.0 -3.4 -4.5 -2.5 -3.6 -4.2 -4.3 -3.9 -4.3 -5.7 -4.9 -4.9 F G Financial sectors 2.6 2.1 2.1 2.9 2.1 3.2 3.4 4.0 3.1 2.8 1.7 .9 1.3 1.4 G H Gross national investment 110.8 94.3 114.7 117.9 114.8 118.6 116.0 112.5 104.3 111.3 118.8 124.6 123.3 127.3 H I Consumer durable goods 40.4 37.3 43.6 44.8 43.7 45.8 44.5 44.0 40.8 43.5 44.0 46.6 46.3 47.7 I Business inventories 1.6 -2.0 6.6 4.1 2.1 4.4 2.1 -1.1 -3.6 2.1 4.0 6.0 6.6 4.5 J J K Gross pvt. fixed investment 64.6 58.6 66.2 68.3 67.1 69.2 68.1 67.5 63.7 65.5 68.5 70.8 68.5 74.1 K L Consumer and nonprofit 18.1 18.1 22.1 21.7 20.1 21.6 22.0 21.6 20.3 19.5 19.3 21.2 21.7 20.2 L M Nonfin. business 45.7 39.8 43.2 45.8 46.2 46.8 45.2 45.0 42 5 45.2 48.4 48.8 45.9 53.0 M 8 7 8 .8 8 .8 .8 .8 .8 .8 .8 .8 8 8 N O Net financial investment 4 3 4 — 1 7 7 1 8 -.8 1.2 2 2 3.4 2 2 3 1.1 2 0 1 1 O — 1 3 8 6 9 2.5 2.2 4.6 2.6 2.3 1.7 5.0 .6 1.5 3 2 3 1 P II. Financial flows—summary A Net funds raised—nonfin. sectors.... 32.5 42.8 52.7 36.2 46.3 38.8 32.0 34.3 29.5 45.2 55.3 55.2 59.4 61.6 A B Loans and short-term securities.... 12.8 3.3 19.2 7.8 19.4 5.2 19.3 2.0 22.9 18.8 4.0 31.8 32.0 19.1 B C Long-term securities and mtgs 19.7 39.5 33.5 28.4 26.9 33.6 12.7 32.3 6.7 26.4 51.3 23.3 27.8 42.4 C D Federal Go B ve y r n se m c e to n r t -1.3 8.6 8.7 -2.2 7.4 * -2.7 -2.4 .4 9.3 15.3 4.6 15.2 8.7 D E Short-term securities 5.5 -1.2 5 5 -5.1 11.3 -9.3 12.2 -10.8 22.0 16 6 -4 6 11.4 21.4 5 1 E F Other securities -6.4 9.5 3.8 2.4 -4.2 8.5 -16.0 8.2 -22.2 -7.1 20.9 -8.3 -6.9 3.7 F 1 4 2.3 8 2.0 2 7 1.7 1.7 3 1 2.8 3 1 4 8 3 6 I 6 G H Loans .9 1.1 .2 1.4 1.9 1.1 1.1 2.4 2.6 -1.0 2.4 3.7 3.1 .4 H J Pvt. domestic nonfin. sectors 32.4 c 31 1 .9 3 43.2 7 36 . . 7 4 36.2 8 37.1 6 33. . 0 6 33.6 6 26 . . 2 3 36.0 9 36.9 7 45 1 . 7 1 40.6 5 51 1 .3 2 J I L K . Lo C a o n n s sumer credit 2 6 .8 6 3. . 1 7 1 6 4 . . 2 1 1 4 1 . . 4 1 5 1. . 4 8 1 6 3 . .1 0 3 6. . 2 4 2 8 . . 4 7 1.2 2. . 5 4 6. . 9 6 1 4 2 . .8 7 3 7 . . 4 8 1 6 2 . . 0 8 K L 2.3 1.9 5.5 3.0 2.2 2.9 - .1 2.7 2 .2 1.4 7.2 2 0 3 0 M N Other loans 1.9 1.1 2.4 3.7 2.2 4.2 2.9 3.6 1..13 1.9 4.9 .9 2.4 4.0 N O Securities and mortgages 25.6 28.8 29 A 25.3 30.4 24.0 26.8 24.9 25.1 33.5 30.0 32.9 32.8 38.1 O P State and local oblig 4.6 5.5 4.7 3.7 5.7 3.4 4.9 3.7 4.3 3.9 5.6 6.7 7.7 5.7 P Q Corporate securities 8.8 8.0 5.4 5.4 7.0 4.9 6.2 5.9 5.0 12.3 6.0 4.7 4.5 6.9 Q R 1- to 4-family mortgages 8.6 10.1 13.2 10.4 12.1 10.1 10.5 10.0 10.2 11.8 12.4 14.2 12.4 75.5 R 55 Other mortgages 3.5 5.2 5.8 5.8 6.1 5.6 5.2 5.4 5.5 5.5 6.0 7.3 8.2 10.2 S T Net sources of credit (= A) 32.5 42.8 52.7 36.2 46.3 38.8 32.0 34.3 29.5 45.2 55.3 55.2 59.4 61.6 T U Chg in federal cash balance .1 .6 .8 4.2 1.4 -1.4 -5.4 2.7 5 5 — 2 4 2 2 7 0 U V Federal lending ... 2.4 1.7 3.8 2.4 2.8 4.0 1.7 2.6 1.8 -.5 5.1 4.8 3.3 4.1 V ^ X N P F v or t. e i i g n n s ur f . u n a d n s d pension reserves. . - 7 .1 .0 7 3 . . 8 1 8 3 . . 8 6 8 3 . . 2 2 2 8. . 7 5 7 1 . . 4 5 9 3 . . 0 8 5 7 . . 9 5 2 7. . 7 8 - 7 .8 .5 9 3 . 2 8 1 4 0 .2 1 3 8 .6 6 9 2 .1 0 W X Y Sources n.e.c 3.2 4.9 5.9 6.8 5.1 7.8 3.9 6.4 1.7 1.5 12.7 4.6 2.8 -2.4 Y Z Pvt. domestic nonfin. sectors 19.8 25.2 30.0 14.8 27.2 13.8 J2.2 13.2 20.9 34.8 19.1 33.9 38.8 41.8 Z AA Deposits and U.S. Govt. secur. 10.5 17.8 23.3 7.7 23.2 6.8 7.8 9.2 15.4 26.8 19.0 31.5 29 A 34.4 AA A B Deposits 11.0 20.6 10.8 13.6 24 A 8.6 20.3 20.9 24.3 25.8 19.3 26.8 25.3 29.8 AB AC Demand dep. and curr . . . —14 4.9 3.9 -4.0 2.2 1.1 1.1 3.7 2.2 8 8 -9.7 3.9 AC AD Time and svgs. accounts . . 12.4 15.7 10.5 14.9 20.1 12.6 18.2 19.8 23.2 22.2 17.1 18.0 35.0 25.9 AD AE At commercial banks... . 5.5 6.9 2.1 5.3 8.8 3.1 8.2 9.1 72.7 10.9 6.5 5.7 22.9 13.8 AE AF At savings ins tit 6.8 8.7 8.4 9.6 11.4 9.5 10.0 10.8 77.2 11.3 10.6 12.4 12.2 72./ AF AG U.S. Govt. securities — . A -2.8 12.5 -5.9 _ 9 -1.8 -12.5 -11.7 -8.9 .9 2 4.7 3.8 4.6 AG AH Other securities and mtgs 8.* 8.3 7.0 6.1 5.3 6.5 5.3 3.7 5.6 11.0 .6 3.9 9.5 3.5 AH AI Less security debt 9 1.3 c .9 — .3 . 1 3 0 6 1 4 — .3 — 39 AI III. Financial institutions A Net funds advanced—Total 22.3 37.2 30.9 34.5 43.9 32.9 43.4 42.5 32.3 40.4 54.4 48.7 434 47.3 A B Federal obligations -.8 11.0 -6.2 2.8 7.7 1.1 9.4 8.4 8.2 9.3 15.5 -1.9 10.0 1.9 B C Other securities and mtgs 17.6 23.1 23.1 20.7 27.9 19.2 23.5 24.0 21.9 26.0 31.3 32.3 25.9 38.8 C D Loans 5.5 3.1 14.0 11.0 8.3 12.6 10.4 10.1 2.2 5.1 7.7 18.4 7.5 6.6 D By sector E Banking system 4.3 17.0 5.6 10.0 17.5 9.4 16.4 17.3 11.6 15.8 24.5 17.9 19.2 19.5 E F Savings institutions 7.2 9.3 10 6 9.3 12.0 8.3 9.0 10.7 11.4 10.9 11.7 14.1 13.8 13.1 F G Insurance and pension funds 8.4 9.0 10.1 10.2 10.7 9.1 11.2 10.3 10.1 9.2 11.0 12.6 10.0 10. S G H Finance nee 2.3 1 9 4.6 5.0 3.7 6.1 6.8 4.3 -.8 4.5 7.2 4 1 4 3 9 H I Net sources of funds—Total 22.3 37.2 30.9 34.5 43.9 32.9 43.4 42.5 32.3 40.4 54.4 48.7 43.4 47.3 I J Gross savings 2.6 2.1 2.1 2.9 2.1 3.2 3.4 4.0 3.1 2.8 1.7 1.3 1.4 J K Deposit claims 11.! 22.6 10.6 15.3 26.5 14.: 23.5 21.2 20.9 29.9 28.0 27! 5 30.4 35.9 K L Demand deposits and curr 5.8 1.1 5.6 4.1 -2.0 6.5 9.6 8.3 -4.4 9.7 L M Time dep. at comm. banks 7.9 1.1 5.8 9.4 9.4 11.7 11.9 7.8 6.3 22.6 13.9 M N Other savings accounts 6.< 8.9 8.4 9.5 11.5 8.9 10.0 io!9 11.2 11.5 10.6 12.9 12.2 12.3 N O Svg. through life insurance 2.7 3.: 3.6 3.5 3.7 3.1 3.5 3.4 3.7 3.3 4.0 3.9 4.6 4.3 O P Svg. through pension funds 4.4 5.2 4.7 4.9 4.4 5.5 4.2 4.0 4.2 5.2 6.3 4.0 4.8 P Q Credit market instruments 2.: 5.9 3.5 3.7 3.5 2.( 3.4 2.6 6.0 6.2 4.9 7.4 Q R Investment co. shares 1 .< 1.8 1.5 2.0 1.6 1.3 \'.6 1.5 2.C 2.7 3.3 1.5 R S Corporate bonds 1.0 1.4 \A 1.9 9 1.3 9 * 1.2 S T Loans i 2 3 1 n — 8 -2.4 3.8 2.6 1.5 4.6 T U Security credit .< 1.2 3.1 1.2 -1.3 1.0 -1.7 -.9 U V Other sources, net 3.7 3.4 4J 2J 3.2 2.3 5.1 1.8 -4^6 8.5 2.: -5.6 V NOTE.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FLOW OF FUNDS/SAVING 1695 PRINCIPAL FINANCIAL TRANSACTIONS (Billions of dollars) 1960 1961 1962 Transaction category, 1957 1958 1959 1960 1961 or sector II III IV I II III IV I II I. Demand deposits and currency C B A Ne O U t S t in h c e r r G . o in v t b a d n e k o in o g s i s ts ystem liability.. - - 1 . . 8 0 .2 5 5 . . . 8 6 1 1. . . 1 6 5 -.8 .8 * 5 5 . . . 6 5 1 -3 4 1 . . . 0 2 2 4 2 1 . . . 1 8 4 -1 2 . . 4 . 1 7 - - 2 5 3 . . 0 4 .4 6 2 3 . . . 5 7 8 4 9 5. . . 5 1 6 - 1 2 8 0 . . 4 . 3 7 - - 4 6 2 . . . 4 6 2 9 7 2 . . . 7 7 0 A B C D Net increase in assets, by sector. . . . .7 6.3 .3 .2 4.8 1.9 3.9 .8 -1.9 4.5 11.3 5.2 -1.2 7.8 D E Federal Govt .7 .9 .3 4.5 1.7 -1.5 -5.7 1.0 8.9 -3.0 2.0 6.4 E G j H F Ot F C N h i e o o n r n n a s f d n i u n o c m m a ia n e l e r c s s i t a e a ic l c n t d b o s e r u n c s s t o i o n n r e p s s r s ofit _ 9 2 2 . . . 5 7 7 2 -2 1 .2 . . 0 1 — .2 6 4 1 1 1 . . . . . 1 6 4 0 2 - - - 2 2 2 1 . . . 1 4 0 . . 8 4 -1 2 1 1 . . 6 . . . 2 7 6 4 -1 2 1 . . 6 . . . 2 5 7 2 -2 - 2 5 1 . . 7 8 . . . 9 0 4 - 4 1 1 1 .1 . . . . 4 9 6 1 -1 1 1 1 .7 . . . . 9 5 6 5 -2 7 2 6 . . . . 5 1 7 1 9 - - - 5 5 3 3 1 . . . . 9 2 6 1 2 -4 2 5 1 . . . 6 . 3 5 7 2 H G F J I L K Di R sc e r s e t p o a f n c t y h — e w F o e r d l d cash * * * -.1 .1 * * .4 - - . . 5 3 -.3 * . . 8 1 . . 9 3 - 1 .9 .7 -3.4 .4 1 . . 5 0 1 . . 2 9 -.9 .6 K L M Other .9 -.4 .6 -.2 -.5 .3 1.8 2.5 3 3 1 3 M II. Time and savings accounts A Net increase—Total 12.3 16.8 9.5 15.2 20.9 13.1 19.4 20.6 22.9 23.4 18.4 19.2 34.8 26.2 A C B At C c o o r m po m r e a r t c e i a b l u b si a n n e k ss s—Total 5.4 7.9 9 — 1 . . 1 4 5. . 8 8 9 1 . . 4 3 4.2 9 1 . . 4 6 9 2 . . 7 0 1 5 1 . . 6 7 1 1 1 . . 2 9 7. . 8 8 -2 6 . . 4 3 2 4 2 . . 8 6 1 2 3 . . 6 9 C B D g F C S F t o o a r n t e e s i u g a m n n e d d r e l p o a c n o a s d i l t n o g o r o s n v p ts rofit 5.2 * 5. . 3 9 - 3 .9 .0 3.2 6. . 6 6 2 1. . 1 3 4 2 1 . . . 1 4 2 2 5 . . . 1 0 3 -5.3. . 5 9 8. . . 8 8 7 4 1 . . . 8 9 3 7. . 2 9 6 1 2 6 . . 1 4 0 10. . 9 3 2 D E F G At savings institutions 6.9 8.9 8.4 9.5 11.5 8.9 10.0 10.9 11.2 11.5 10.6 12.9 12.2 12.3 G H Memo—Consumer and nonprofit organ —Total 12.0 14.0 11.3 12.8 18.0 11.7 14.4 15.8 16.7 20.1 15.4 19.6 28.1 22.9 H III. Federal obligations 9 8.2 9.3 — 2.7 7.2 -.8 -3.8 -2.7 -.2 9.5 16.2 3.2 14.5 8.7 A B Short-term direct 5.5 — 1.2 5.5 -5.1 11.3 -9.3 12.2 -10.8 22.0 16.6 -4.6 11.4 21.4 5.1 B C Other • -6.4 9.5 3.8 2.4 -4.2 8.5-16.0 8.2 -22.2 -7.1 20.9 -8.3 -6.8 3.5 C D Net acquisitions, by sector -1.] 8.3 9.3 -2.6 7.2 Q -3.8 -2.6 -.2 9.5 16.2 3.2 14.5 8.7 D E Pvt. domestic nonfin. sectors -2.8 12.5 -5.9 — .9 -12.5 -11.7 -8.9 .9 2 4.7 3.8 4.6 E F Consumers and nonprofit c -2.2 6.3 -3.1 -2.7 -3.3 -7.8 -8.0 -4.1 6.2 -1.4 2.2 F G 5v<? bds & postal svg dep . .., 2 2 2.0 5 5 s'.i 1 2 2 G H Securities 1.3 -1.4 8.: -2.7 ^ -1.5 -3.1 -8.4 -8.2 -4.6 4.48 5 0 1 3 2.0 H J State and local govts • r A 4 l. . i 4 3.0 9 2 2 1 . 1 7 -1 7 . . 8 4 — 3 . 3 6 1. .6 6 4 1 . . 1 0 - 5 .3 1 9 5 2 2 9 3 1 5 9 J I 11.0 -6.2 2.8 7.7 1.1 9.4 8.4 8.2 9.3 15.5 -1.9 10.0 1.9 K 1_ Banking system c 10.1 -7.1 2.7 7.4 1.9 8.6 8.3 7.1 10.7 13.9 -2.2 8.1 3.3 L j 2 2 1 5 2.9 1 2 —. 7 2.2 7.5 2.0 5.7 .6 M 7 9 7 4 2 0 5 9 — 1 0 7 4 9 0 4 9 10 5 12 4 4 2 2.4 2.7 N .6 9 -1.1 1.2 — . 1 -.1 1.2 1.4 -.9 O Q 2 — 8 9 — I 2 3 5 -.1 P 2 1.0 _ | 9 .6 c * 1.9 -1.5 .1 -.4 O R Rest of the world * 3.0 2 -.1 -*7 -.7 1.0 .4 .8 2 2 R IV. Other securities A Total net issues, by sector 14.6 14.9 11.8 11.2 13.7 10.0 13.2 12.0 10.5 18.4 12.5 13.4 12.7 15.1 A B State and local govts 4 6 5 5 4 7 3 7 5 1 3 4 4 9 3 7 4 3 3 9 5 6 6 7 7 7 C Nonfinancial corporations 8.8 8 1 . 0 3 5 1 . 4 0 5 1 . 4 4 7.0 g g 4. . 9 6 6 1 . . 2 6 4 5 1 . 9 9 6 5.0 9 2 1 1 2 .3 3 9 6.0 4 1 . 7 9 1 4.5 * 6 1 1 . . 9 2 .2 E C D F Net purchases 14.6 14.9 11.8 11.2 13.7 10.0 13.2 12.( 10.5 18.4 12.5 13.4 12.7 15.1 F G Consumers & nonprofit org 5. 3.8 3.0 2.3 1.5 2.3 1.9 7.0 -2.8 1.6 2.8 -2.1 G 1.3 1.5 1.6 2.0 1.5 K5 1.5 1.6 1 5 1.8 1 3 1.9 H .1 .6 .6 1 1 0 2 4 A 2 7 1.3 15 2 2 2 8 13 3 7 4.7 5.6 J K Insurance and pension funds 6.5 6.5 7.0 7.0 7.7 6.0 7.9 7.8 6.0 7.2 9.0 8.7 5.9 7 6 K .6 1 e 1.0 g 3 9 1.8 L M Security brokers & dealers. * 1.4 g 2 -.8 * 1.9 — 2 4 8 M — 6 2 c 1 g 1 i 1 4 1.2 N 1 i 1 2 1 0 1 4 1.0 1 1 g 1 2 1.5 1 2 1 6 1 9 2.7 O 1 2 1 6 1.8 1.5 2.0 1.6 1.4 1.3 1.6 1.5 2.0 2.7 3.2 1.5 P O Rest of the world * .4 e .1 • Q V. Mortgages A Total net borrowing 12.1 15.3 19.0 16.2 18.2 15.7 15.7 15.4 15.7 17.3 18.4 21.5 20.6 25.6 A B 1- to 4-family 8.6 10.1 13.2 10.4 12.1 10.1 10.5 10.0 10.2 11.8 12.4 14.2 12.4 15.3 B C Other 3.5 5.2 5.8 5.8 6.1 5.6 5.2 5.4 5.5 5.5 6.0 7.3 8.2 10.2 C 12. 15.3 19.( 16.2 is.: 15.7 15.7 15.4 15.7 17.3 18.4 21.5 20.6 25.6 I> E Consumer & nonprofit org 1.9 2.2 2.3 1.6 1.9 1.8 2.3 1.0 .6 3 3 2 5 E P Federal Government 1.4 2 1 2 2 .2 6 1 6 1.4 1. . 4 6 1.1 9 1 1 . . 0 8 1 1 . 7 9 2 1 . . 2 0 - 5 .1 .1 G F H Savings institutions 5.7 7.! 9.5 8.8 11.0 8.4 8.9 9.5 9.5 10.9 11.2 12.4 12.0 13.6 H 1 Insurance sector 2.! 2.7 3. 2.: 2.6 2.: 2.7 2.0 3.3 2.( 2.6 I J Mortgage companies. .8 1.2 1.3 J VI. Bank loans n.e.c. A Total net borrowing 2.3 1.2 7.4 2.8 3.1 3.3 2.4 5.1 9.0 3.9 5.1 A B Nonfinancial business 2 2 . 0 5 3 .3 8 2 2 .8 6 2.0 3 3 . . 0 2 1.2 2 1 . 2 9 1.7 1.5 4 6. . 4 5 1 1 . . 6 0 2.9 • C B D Nonfarm noncorporate -1.' -1.9 * 1.1 .* 2.7 I> E Farm J i i ,9 .2 E F Rest of the world .8 l.i .1 F A 1 6 2 2 -1.3 -2.1 -1.0 3.3 4 1.9 O NOTE.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1696 CONSUMER CREDIT REVISED ESTIMATES OF SHORT- AND INTERMEDIATE-TERM CREDIT, 1961 (Amounts outstanding at end of month, in millions of dollars) Type of credit or holder Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Consumer credit, by major parts: Total 55,013 54,144 53,929 54,026 54,434 54,815 54,750 55,078 55,149 55,340 55,915 57,678 Instalment credit, total 42,346 41,875 41,671 41,627 41,787 42,089 42,141 42,358 42,334 42,494 42,737 43,527 Automobile paper 17,456 17,241 17,139 17,087 17,143 17,272 17,285 17,292 17,133 17,153 17,211 17,223 Other consumer goods paper 11,353 11,123 10,990 10,900 10,912 10,944 10,931 10,989 11,056 11,142 11,264 11,857 Repair and modernization loans. 3,100 3,076 3,067 3,075 3,102 3,125 3,134 3,170 3,188 3,193 3,204 3,191 Personal loans 10,437 10,435 10,475 10,565 10,630 10,748 10,791 10,907 10,957 11,006 11,058 11,256 Noninstalment credit, total 12,667 12,269 12,258 12,399 12,647 12,726 12,609 12,720 12,815 12,846 13,178 14,151 Single-payment loans 4,502 4,571 4,608 4,585 4,712 4,738 4,732 4,823 4,916 4,894 5.025 5,136 Charge accounts 4,754 4,187 4,141 4,229 4,375 4,440 4,327 4,360 4,366 4,448 4,601 5,324 Service credit 3,411 3,511 3,509 3,585 3,560 3,548 3,550 3,537 3,533 3,504 3,552 3,691 Instalment credit, by holder: Total 42,346 41,875 41,671 41,627 41,787 42,089 42,141 42,358 42,334 42,494 42,737 43,527 Financial institutions, total 37,947 37,561 37,318 37,224 37,275 37,466 37,467 37,584 37,474 37,501 37,572 37,935 Commercial banks 17,539 17,285 17,148 17,072 17,079 17,113 17,094 17,121 16,993 16,988 16,974 17,008 Sales finance companies 11,405 11,288 11,163 11,113 11,087 11,144 11,130 11,113 11,104 11,088 11,100 11,273 Credit unions 3,878 3,883 3,914 3,956 4,011 4,096 4,132 4,192 4,218 4,252 4,297 4,330 Consumer finance companies. 3,645 3,621 3,603 3,606 3,607 3,622 3,633 3,659 3,650 3,671 3,684 3,799 Other 1,480 1,484 1,490 1,477 1,491 1,491 1,478 1,499 1,509 1,502 1,517 1,525 Retail outlets, total 4,399 4,316 4,353 4,401 4,510 4,623 4,674 4,772 4,860 4,994 5,165 5,595 Department stores x 1,327 1,367 1,452 1,545 1,650 1,748 1,811 1,896 1,979 2,097 2,208 2,421 Furniture stores 1,069 1,040 1,011 995 989 991 981 987 994 997 1,015 1,058 Household appliance stores... 323 313 305 297 296 296 295 295 294 291 288 293 Automobile dealers 356 352 352 351 352 354 352 350 343 341 342 342 Other 1,324 1,244 1,233 1,213 1,223 1,234 1,235 1,244 1,250 1,268 1,312 1,481 Instalment credit held by commercial banks, by type of credit: Total 17,539 17,285 17,148 17,072 17,079 17,113 17,094 17,121 16,993 16,988 16,974 17,008 Automobile paper: Purchased 5,255 5,174 5,170 5,216 5,275 5,310 5,340 5,326 5,365 5,384 5,391 Direct 2,805 2,802 2,810 2,836 2,861 2,861 2,859 2,821 2,824 2,851 2,860 Other consumer goods paper 3,742 3,449 3,309 3.202 3,095 3,026 2,962 2,864 2,820 2,764 2,761 Repair and modernization loans 2,171 2,134 2,141 2,155 2,170 2,179 2,197 2,206 2,210 2,210 2,198 Personal loans 3,566 3,566 3,589 3,642 3,670 3,712 3,719 3,763 3,775 3,769 3,765 3,798 Instalment credit held by sales finance companies, by type of credit: Total 11,405 11,288 11,163 11.113 11,087 11,144 11,130 11,113 11,104 11,088 11,100 11,273 Automobile paper 7,392 7,268 7,156 7,088 7,047 7,058 7,026 6,983 6,872 6,843 6,833 6,811 Other consumer goods paper 2,814 2,821 2,806 2,813 2,824 2,848 2,854 2,865 2,937 2,929 2,940 3,100 Repair and modernization loans 139 140 143 146 146 149 155 149 153 157 160 161 Personal loans 1,060 1,059 1,058 1,066 1,070 1,089 1,095 1,116 1,142 1,159 1,167 1,201 Instalment credit held by other financial insti tutions, by type of credit:2 Total 9,003 8,988 9,007 9,039 9,109 9,209 9,243 9,350 9,377 9,425 9,498 9,654 Automobile paper 1,648 1,646 1,655 1,667 1,692 1,724 1,736 1,760 1,771 1,781 1,801 1,819 Other consumer goods paper 754 742 734 728 728 732 729 740 738 740 737 743 Repair and modernization loans 790 788 790 788 801 806 800 824 829 826 834 832 Personal loans 5,811 5,810 5,828 5,857 5,890 5,947 5,977 6,028 6,040 6,078 6,126 6,257 Noninstalment credit: Total 12,667 12,269 12,258 12,399 12,647 12,726 12,609 12,720 12,815 12,846 13,178 14,151 Single-payment loans Commercial banks 3,882 3,927 3,925 3,970 4,028 4,090 4,133 4,161 4,221 4,247 4,312 4,413 Other financial institutions 620 644 683 615 684 648 599 662 695 647 713 723 Charge accounts Department stores * 810 669 637 631 634 624 574 589 623 656 717 948 Other retail outlets 3,506 3,085 3,079 3,172 3,321 3,380 3,296 3,280 3,260 3,321 3,424 3,907 Credit cards 438 433 425 426 420 436 457 491 483 471 460 469 Service credit 3,411 3,511 3,509 3,585 3,560 3,548 3,550 3,537 3,533 3,504 3,552 3,691 1 Includes mail-order houses. For other notes, see notes to tables on pages 1676-79. 2 Other than commercial banks and sales finance cos. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER CREDIT 1697 REVISED ESTIMATES OF INSTALMENT CREDIT EXTENDED AND REPAID, 1961 (In millions of dollars) By Type of Credit Automobile Other consumer Repair and Personal Total paper goods paper modernization loans loans Period E s x io te n n s - m p R e a e n y - t - s s C i t c n a h r n e a o d d n u i i g t t n - e g E s x io te n n s - m p R e a e n y - t - s s C i t c n a h r n e a o d d n u i i g t t n - e g E s x io te n n s - m p R e a e n y - t - s s C i t c n a h r n e a o d d n u i i g t t n - e g E s x io te n n s - m p R e a e n y - t - s s C i t c n a h r n e a o d d n u i i g t n t - e g E s x io te n n s - m p R e a e n y - t - s s C i t c n a h r n e a o d d n u i i g t t n - e g Seasonally adjusted Jan 3,879 3,904 -25 ,285 ,373 -88 1,184 1,162 22 169 167 2 1,241 1,202 39 Feb 3,829 3,915 -86 1,229 ,370 -141 1,155 1,140 15 163 163 0 1,282 ,242 40 Mar.... 3,879 3,925 -46 1,277 ,366 -89 1,147 1,174 -27 171 163 8 1,284 ,222 62 Apr.... 3,836 3,957 -121 ,255 ,378 -123 1,162 1,203 -41 170 167 3 1,249 ,209 40 May... 3,905 3,914 -9 ,297 ,354 -57 1,163 1,168 -5 171 169 2 1,274 ,223 51 June... 4,024 3,980 44 ,344 ,372 -28 1,178 1,188 -10 179 171 8 1,323 ,249 74 July.... 3,961 3,957 4 ,318 ,379 -61 1,191 ,176 15 169 165 4 1,283 ,237 46 Aug 4,071 4,016 55 ,312 ,377 -65 1,229 ,197 32 185 169 16 1,345 ,273 72 Sept 4,018 3,969 49 1,297 ,360 -63 1,232 ,188 44 174 169 5 1,315 ,252 63 Oct 4,235 4,073 162 1,419 1,396 23 1,267 ,217 50 174 175 1,375 ,285 90 Nov... . 4,332 4,063 269 1,510 1,384 126 1,265 ,206 59 172 166 6 1,385 ,307 78 Dec.. . . 4,409 4,061 348 ,469 ,375 94 1,402 ,233 169 167 169 2 1,371 ,284 87 - Not seasoi>nally adjusted Jan 3,427 3,915 -488 ,138 1,372 -234 1,018 ,191 -173 129 166 -37 ,144 ,186 -42 Feb.... 3,190 3,660 -470 ,054 1,266 -212 886 ,115 -229 127 152 -25 ,124 ,127 -3 Mar.... 3,920 4,126 -206 ,334 1,436 -102 1,104 ,239 -135 162 170 -8 ,320 ,281 39 Apr 3,737 3,784 -47 ,251 1,304 -53 1,073 ,164 -91 165 159 6 ,247 ,157 90 May... 4,224 4,063 161 ,466 1,410 56 1,218 ,206 12 201 172 29 ,340 1,275 65 June... 4,367 4,064 303 ,533 1,403 130 1,232 ,198 34 196 174 22 ,407 1,288 119 July.... 3,954 3,901 53 ,390 1,377 13 1,129 ,142 -13 174 165 9 ,261 1,217 44 Aug.... 4,294 4,079 215 ,422 1,414 8 1,256 ,200 56 210 174 36 ,407 1.291 116 Sept 3,843 3,864 -21 ,186 1,345 -159 1,231 ,162 69 188 169 19 ,238 1,188 50 Oct 4,291 4,131 160 ,481 1,462 19 1,312 1,225 87 188 183 5 ,311 1,260 51 Nov.... 4,312 4,071 241 ,433 1,375 58 1,323 1,203 120 180 169 11 ,376 1,325 51 Dec... 4,835 4,041 794 ,320 1,307 13 1,795 1,200 595 148 161 -13 ,572 1,373 199 By Holder Total Com ba m n e k r s cial S c a o le m s p f a in n a ie n s ce Ot i h n e st r i t f u in ti a o n n c s ial o R u e t t l a e i t l s Period Change Change Change Change Change Ex- Re- in out- Ex- Re- in out- Ex- Re- in out- Ex- Re- in out- Ex- Re- in outten- pay- stand- ten- pay- stand- ten- pay- stand- ten- pay- stand- ten- pay- standsions ments sions ments ing sions ments ing sions ments ing sions ments ing credit credit credit credit credit Seasonally adjusted Jan 3,879 3,904 -25 1,437 ,445 968 853 896 958 927 31 631 636 -1,021 Feb 3,829 3,915 -86 1.404 ,547 -143 828 873 -45 980 961 19 617 534 83 Mar 3 879 3,925 -46 1,431 ,535 -104 841 906 -65 995 965 30 612 519 93 Apr 3,836 3,957 -121 1,417 ,582 -165 848 909 -61 958 941 17 613 525 88 May 3,905 3,914 -9 1,438 ,531 -93 849 902 -53 997 956 41 621 525 96 June 4,024 3,980 44 ,449 ,537 -88 894 925 -31 1,046 983 63 635 535 100 July 3,961 3,957 4 ,465 ,525 -60 823 905 -82 1,003 977 26 670 550 120 Aug 4,071 4,016 55 ,501 ,529 -28 862 926 -75 1,048 994 65 660 567 93 Sept 4,018 3,969 49 1,476 ,514 -79 854 901 2 1,029 984 45 659 570 81 Oct 4,235 4,073 162 ,548 ,539 9 928 936 -8 1,074 1,009 65 685 589 96 Nov 4,332 4,063 269 ,582 ,511 54 968 922 46 1,096 1,030 66 686 600 103 Dec 4,409 4,061 348 ,571 ,512 59 1,123 943 180 1,077 1,005 72 638 601 37 Not seasonally adjusted Jan 3,427 3,915 -488 [,350 ,460 866 765 872 -67 845 916 -71 467 668 -1,217 Feb 3,190 3,660 -470 1,217 ,471 -254 683 800 -117 855 871 -16 436 519 -83 Mar 3,920 4,126 -206 1,465 ,602 -137 844 970 -126 1,026 1,006 20 585 548 37 Apr 3,737 3,784 -47 1,435 ,511 -76 815 866 -51 932 900 32 555 507 48 May 4,224 4,063 161 1,608 ,600 8 909 934 -25 1,064 994 70 644 535 109 4,367 4,064 303 ,603 ,569 34 995 938 57 1,119 1,019 100 651 538 113 July 3,954 3,901 53 1,510 ,529 -19 878 891 -13 990 956 34 576 525 51 Aus 4 294 4,079 215 1,590 1,563 27 944 951 -18 1,101 1,004 108 659 561 98 Sept 3,843 3,864 -21 1,403 [,490 -128 822 879 -8 959 933 26 659 562 89 Oct 4,291 4,131 160 1,571 1,575 A 970 986 -16 1,033 986 47 718 584 134 Nov 4,312 4,071 241 1,491 .488 -14 941 929 12 1,118 1,046 72 762 608 170 Dec 4,835 4,041 794 1,469 1,435 34 1,101 928 173 1,241 1,084 157 1,024 594 430 See notes to tables on pages 1676-79 of this BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments. 1700 Gold production 1701 Net gold purchases and gold stock of the United States 1702 Estimated foreign gold reserves and dollar holdings 1703 International capital transactions of the United States 1704 U. S. balance of payments 1713 Money rates in foreign countries 1713 Foreign exchange rates 1715 Guide to tabular presentation. 1636 Index to statistical tables 1723 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- 1699 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1700 GOLD RESERVES GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti- Intl. Estip E e n r d io o d f w m t o o a r t t l a e d l d i M F t u a o r n n y d e- U S n ta it te e s d r m w es o a t r t 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 el m - Brazil Canada Chile lo C m o b - ia C o R o f n e t p h g . 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 r40,530 2,439 17,804 r20,285 104 147 293 1,170 287 885 45 78 1961—Oct 2,055 17,331 190 155 302 1,203 289 932 48 86 Nov 2,059 17,021 190 159 302 1,234 285 941 49 87 Dec Ml, 155 2,077 16,947 r22,130 190 162 303 1,248 285 946 48 88 1962—Jan 2,079 16,847 190 164 303 J.277 285 950 48 89 Feb 2,096 16,795 165 164 304 .291 285 962 47 89 Mar r41 290 2 098 16 643 r22 550 164 167 344 297 285 964 46 91 Apr 2 099 16 519 114 170 363 315 285 963 46 91 May 2,106 16,458 114 174 363 ,318 286 913 45 92 June 4i 285 2 110 16 527 22 650 102 177 363 335 286 669 45 93 July 2,136 16,182 78 180 419 ,335 286 674 44 93 2,155 16,139 74 182 419 ,342 286 683 44 94 Sept .... P41,345 2,175 16,081 ^23,090 184 419 ,341 286 689 43 83 Oct 2,179 16,026 429 ,341 695 43 Domin- Ger- E p n er d i o o d f Cuba m De a n rk - R i e c p a u n b- 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 m F a e n d y . , Greece G m u a a l t a e- India I n n e d s o ia - Iran lic Rep. of 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 31 10 20 30 38 1,290 2,637 26 24 247 33 140 I960 31 10 20 30 41 1,641 2,971 76 24 247 58 130 1961 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 43 130 Feb 31 3 19 18 46 2,144 3,664 87 24 247 43 130 Mar 31 3 19 18 61 2,171 3,666 91 24 247 43 129 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 24 247 129 June 31 3 19 18 62 2,270 3,667 96 24 247 129 July 31 3 19 18 62 2,417 3,667 92 24 247 129 31 3 19 18 62 2 450 3 667 86 247 129 Sept 31 3 19 18 61 2,481 3,668 86 247 129 Oct 31 3 19 61 2,513 3,669 247 129 E pe n r d i o o d f Iraq R l e a I p r n e . d - o , f 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 in il e - s Po g r a t l u- A So fr u i t c h 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 ,050 33 43 49 19 10 493 211 1959 84 18 1,749 102 142 ,132 34 30 50 28 9 548 238 I960 98 18 2,203 119 137 ,451 35 30 52 42 15 552 178 1961—Oct 84 18 2,226 140 116 ,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 1,581 30 53 47 28 444 361 Mar 98 18 2,229 140 109 ,581 30 53 47 30 446 379 Apr 98 18 2,234 140 109 1,581 30 53 47 31 446 386 May 98 18 2,240 140 107 1,581 30 53 47 33 447 407 June 98 18 2,242 151 106 1,581 30 53 47 34 454 432 July 98 18 2,244 172 106 1,581 30 53 47 35 455 446 Aug . 98 18 2,244 172 98 1,581 30 53 47 36 467 468 Sent 18 2 241 172 1 581 30 53 47 37 469 488 Oct 18 1,581 30 53 469 501 For notes tee end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GOLD RESERVES AND PRODUCTION 1701 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E p n e d r io 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 in i m t g e 2 - d g U u r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n o tt t r l l e . - EPUments3 1955 132 276 1,597 19 112 144 174 2,120 216 403 121 244 1956 132 266 1,664 19 112 144 188 2,133 186 603 59 268 1957 101 219 1,706 24 112 144 188 2,273 180 719 24 254 1958 57 204 1,925 24 112 144 174 3,069 180 719 -42 126 1959 68 191 1,934 19 104 133 174 2,736 180 652 -134 40 1960 178 170 2,185 19 104 134 174 3,231 180 r401 -19 55 1961— Oct 291 180 2,525 104 139 174 3,531 180 r401 164 Nov 301 180 2,505 104 139 174 3,556 180 r401 183 Dec 316 180 2,560 104 139 174 3,318 180 r401 115 56 1962—Jan 331 181 2,505 104 140 174 3,410 180 176 Feb 341 181 2,481 104 140 174 3,424 180 176 Mar 351 181 2,444 104 140 174 3,452 180 '401 171 61 Apr 376 181 2,424 104 140 174 3,472 180 r401 162 May 400 181 2,409 104 140 174 3,525 180 r401 165 June 409 182 2,409 104 140 174 3,433 180 '401 203 46 July 429 182 2,459 104 140 174 2,915 180 r401 209 Aug 429 181 2,459 104 140 174 2,848 180 r401 210 Sept 428 181 2,453 104 140 174 2,792 180 r401 200 '62' Oct 438 181 2,452 140 174 2,822 401 172 i 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) Aftica North and South America Other World All Period p t r i o o d n u c i - 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 other 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 Sent 68 5 J £ 4.5 12.1 .6 .3 1.4 3.2 .5 Oct . 68.9 6 3.9 12.7 .6 .4 1.4 3.5 .4 Nov 69.2 6 4.1 13.0 .9 .4 1.1 3.1 .5 Dec 67.8 1.6 3.4 12.9 .5 .4 1.1 3.3 .5 1962 Jan 70.6 1.6 3.5 12.6 .7 .4 1.3 2.9 .5 Feb 67.4 6 3.2 11.4 .9 .4 1.4 2.9 .5 Mar 72 9 7 3.5 12.8 1.1 .4 1.2 3.1 .5 Apr 72.3 1.6 3.0 12.4 .9 .3 1.2 2.6 .4 May 74.0 1.5 3.4 12.3 .6 .4 1.2 3.0 .5 75.2 1.6 3.1 11.8 .8 .4 .9 3.3 July 76.3 1 6 4.0 11.9 .6 .4 1.2 3.3 Aug 76.6 1.6 4.6 12.0 .4 3.4 Sept . . . 76 1 4.8 11.7 .3 1 Estimated; excludes U.S.S.R., other Eastern European countries, Bureau of Mines. Country data based on reports from individual countries China Mainland, and North Korea. and of the Bureau of Mines except Brazil, data for which are from 2 Gold exports. American Bureau of Metal Statistics. For the United States, annual figures are from the Bureau of the Mint and monthly figures are from American NOTE.—Estimated world production based on reports of the U. S. Bureau of Metal Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1702 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 III IV I II III Western Europe: Austria -6 -84 -83 -1 -39 -17 -56 Belgium . . 3 -329 -39 -141 -144 -63 -81 -28 -35 France -68 -34 -266 -173 -45 -98 -214 Germany Fed Rep of -226 -10 -34 -23 Italy . . — 349 100 N etherlands 25 — 261 — 30 — 249 — 25 — 25 Portugal -55 -5 -20 -10 Spain . 31 32 -iti -156 — 58 -40 -47 -59 -20 Switzerland -16 -8 -215 20 -324 -125 -45 -5 62 35 -45 United Kingdom -50 100 -900 -350 -550 -306 -55 -326 -181 -150 -64 Bank for Intl Settlements — 20 -178 -32 -36 -23 Other -6 4 18 8 -21 -38 -96 -53 * -14 -11 -15 * Total -378 -78 80 68 -2.326 -827 -1,718 -754 -246 -466 -290 -339 -399 Canada 15 5 190 Latin American republics: Argentina 115 75 67 — 50 -90 60 80 -30 Venezuela — 30 — 200 65 Other . 12 14 56 6 2 -16 -30 -19 -9 — 4 -1 1 9 Total 62 14 -28 81 69 19 -100 -109 -9 -4 24 59 9 Asia: -30 - 157 - 15 Other -10 c * 18 -4 -28 -97 J -101 -34 -20 -24 -16 -41 Total -10 — 5 * 18 -34 -186 -113 -101 -34 -20 -24 -16 -41 All other ... -1 1 14 -3 -5 -38 -6 * A -1 3 -2 Total foreign countries -327 -68 80 172 -2.294 -998 -1.969 -970 -288 -494 -291 -102 -434 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 -138 -494 291 -102 -434 1 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 Goyt. securities; scription less sale by the IMF of $300 million (see also note 2). upon termination of the investment the IMF can re<icquire the same U. S. GOLD STOCK AND HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES BY U. S. MONETARY AUTHORITIES (In millions of dollars) End of period Changes in— End of period Changes in— Year Total Tot G aU old s T to re c a k sury c h F u o o r l r r d e e i i n n g c g n y s Total T g o o t l a d l Month Total Tot G al o i ld s T to re c a k sury h c F o u o l r d r r e e in i n g g c n s y 2 Total T g o o t l a d l 1950 22,820 22,820 22.706 -1,743 -1,743 1961—Nov.... 17,148 17,021 16,975 127 -295 -310 1951 22,873 22.873 22^695 53 53 Dec... 17,063 16,947 16,889 116 -85 -74 1952 23.252 23,252 23,187 379 379 1953 22,091 22.091 22.030 -1,161 -1,161 1962—Jan 16,963 16,847 16,815 116 -100 -100 1954 21,793 21,793 21,713 -298 -298 Feb... . 16,948 16,795 16,790 153 -15 -52 Mar.... 16,873 16,643 16,608 230 -75 -152 1955 21,753 21,753 21,690 -40 -40 Apr.... 16,762 16,519 16,495 243 -111 -124 1956 22,058 22,058 21,949 305 305 May... 16,718 16,458 16,434 260 -44 -61 1957 22,857 22,857 22,781 799 799 June... 17,081 16,527 16,435 554 363 69 1958 20,582 20,582 20,534 -2,275 -2,275 July. . . 16,678 16,182 16,147 496 -403 -345 1959 19,507 19,507 19,456 -1,075 3-1,075 Aug.... 16,562 16,139 16,098 423 -116 -43 Sept.... 16,531 16,081 16,067 450 -31 -58 I960 17,804 17,804 17.767 -1,703 -1,703 Oct 16,364 16,026 15,978 338 -167 -55 1961 17,063 16,947 16,889 116 -741 -857 Nov.P. . 16.217 16,015 15,978 202 -147 -11 1 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 8 on page 1711 for gold held under earmark at 2 For holdings of F. R. Banks only see pp. 1644 and 1646. F. R. Banks for foreign and international accounts. Gold under car- 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 1703 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 31, 1960 Sept. 30, 1961 Dec. 31, 1961 Mar. 31, 1962 June 30, 1962 Sept. 30, 1962? Area and country Gold & U.S. Gold& Gold& U.S. Gold& U.S. Gold & U.S. Gold& U.S. short- Govt. short- short- Govt. short- Govt. short- Govt. short- Govt. term bonds term term bonds term bonds term bonds term bonds dollars & notes dollars dollars & notes dollars & notes dollars & notes dollars & notes Western Europe: Austria 536 526 558 594 640 744 Belgium 1.312 1,476 1,574 1.616 1,593 1,511 Denmark 85 31 79 83 30 80 83 78 30 Finland 87 134 138 2 138 133 135 France 2,160 3,014 3,110 4 3.360 3,664 3,643 Germany, Fed. Rep. of 6,447 6,394 6,505 3 6,200 6,289 6,467 Greece 139 120 154 189 206 187 Italy 3,080 3,377 3,459 3.416 3,429 3,533 Netherlands 1,779 4 1,804 3 1,797 3 1,822 1,888 2 1,857 2 Norway 112 148 135 128 135 126 142 93 131 85 142 91 Portugal 636 1 523 1 542 1 532 584 1 610 1 Spain 327 1 405 1 469 1 516 1 568 1 588 1 Sweden 397 82 566 71 586 93 584 92 607 123 639 102 Switzerland 2.863 94 3,177 86 3,435 83 3,262 83 3,360 83 3,285 86 Turkey 152 * 158 165 * 160 163 * 162 * United Kingdom ! 4,467 420 4,719 483 4,526 435 4,941 388 4,864 440 4,402 418 Other 2 529 44 788 47 678 48 '728 46 667 46 696 47 25,108 838 27,395 864 27,914 840 r28,280 751 28,869 820 28,679 786 Total 3,324 446 3,576 465 3,704 459 3,454 423 3,566 227 4,169 240 Canada.... Latin America: Argentina 419 454 425 407 310 304 Brazil 481 551 513 492 511 499 Chile 180 178 153 160 176 147 Colombia 236 222 235 228 252 228 Cuba 78 46 44 40 38 37 Guatemala 68 70 70 82 76 58 Mexico 534 529 606 615 624 559 Panama, Republic of. 123 79 87 82 87 85 Peru 114 123 131 137 137 154 Uruguay 231 229 237 255 259 1 272 Venezuela '799 r849 '819 '801 765 1 780 Other 3,4 370 297 '255 192 '305 188 360 156 376 132 Total. . . r3,633 '3,627 89 '3,575 204 '3,604 200 3,595 168 3,499 144 Asia: India 301 333 325 321 6 296 293 Indonesia 236 120 119 137 1 125 76 Iran 152 167 161 165 * 155 157 Japan 2,166 1,953 ,894 '2.054 3 5 2,210 2,344 Philippines 218 174 212 '195 1 ; 213 196 Thailand 290 344 368 410 * 431 430 Other 991 1,130 45 ,168 1,215 1 ! 1,207 41 1,268 Total. . 4,354 4,221 57 4,247 56 '4,497 52 | 54,637 52 4,764 All other: Australia 235 238 260 268 * i 281 315 South Africa 207 251 330 415 * ] 471 535 U.A.R. (Egypt). 196 189 189 190 * 193 186 Other 6 600 579 635 39 '631 42 I 640 663 Total 1,238 1,257 1,414 39 '1.504 42 1,585 1,699 39 Total foreign countries 7. •37,657 1,426 '40,076 r40,854 1,598 r41,339 1,468 | 542,252 1,306 42,810 1,261 International 4. . . . '6,337 900 '5,422 '5,767 1.240 '6,392 1,087 i 6,563 1,009 6,992 861 Grand total 7 r43,994 2,326 r45,498 46,621 2,838 r47,731 2,555 548,815 2,315 49,802 2,122 Sterling area. 5,558 536 5,863 5,841 520 6.357 474 6,328 525 5,979 504 1 Gold reserves are estimated. 6 Includes unspecified countries in Africa, Oceania, and Eastern 2 In addition to other Western European countries includes unpub- Europe, and all Western European dependencies located outside Europe lished gold reserves of certain Western European countries; gold to be and Asia. distributed by the Tripartite Commission for the Restitution of Mone- 7 Excludes gold reserves of the U. S. S. R., other Eastern European tary Gold; European Fund; and the Bank for International Settlements countries, and China Mainland. (the figures for the gold reserves of the BIS represent the Bank's net NOTE.—Gold and short-term dollars include reported and estimated gold assets; see note 1 to table on gold reserves). official gold reserves, and official and private short-term dollar holdings 3 Includes other Latin American republics and the Inter-American (principally deposits and U. S. Treasury bills and certificates). U. S. Development Bank. Govt. bonds and notes are official and private holdings of U. S. Govt. 4 Data for short-term dollars revised to exclude nonnegotiable, non- securities with an original maturity of more than 1 year. interest-bearing special U. S. notes held by the Inter-American Develop- See also NOTE to table on gold reserves. ment Bank and the International Development Association. 5 Total short-term dollars include $109 million reported by banks initially included as of June 30, of which $105 million reported for Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1704 INT'L 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- Latin End of period Grand terna- Ger- Canada Amer- Asia All total i tional Offi- many, United ica i Other J, 2 Total i cial Other Fed. King- Other Total 1, 3 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 43,158 16,231 9,154 7,076 1,987 990 5,496 8,473 2,198 2,408 2,780 373 I960 '21,272 '3 897 17,374 10,327 7,047 3,476 1,667 3,903 9,046 2,439 2,422 3,115 352 1961—Oct r22 152 r3 657 '18,495 '10,679 '7.816 2,544 2,676 4,894 10,113 2,907 '2,287 2,807 382 Nov '22,276 '3,721 '18,556 '10,581 7,975 2,531 2,505 4,969 10,004 3,029 '2,318 2,819 385 Dec . '22,415 '3,690 '18,725 '10,966 7,759 2,841 2,226 '5,250 10,317 2,758 '2,371 2,892 387 1962—Jan '22 362 '3 701 '18 661 '10.256 8,405 2 299 2 501 '5 285 '10 084 2,909 '2 327 2,926 415 Feb '22,667 '4,014 '18,653 '10,103 8,550 2,401 2,566 '5,218 '10,185 2,761 '2,333 '2,995 378 Mar '23,081 '4,294 '18,787 '10,498 8,289 2,534 2,491 '5,356 10,381 2,490 '2,432 '3,092 392 Apr .. r23 265 '4 393 '18,873 '10,289 8,584 2,518 2,468 '5 378 '10,364 2,503 '2,543 '3,070 392 Mav '23,402 '4,483 '18,919 '10,480 8,439 2,509 2,398 5,562 10,469 2,514 '2,410 '3,090 437 June.. .. '23,947 '4,453 '19,494 '11,247 8.247 2,622 2,262 5,709 10,593 2,897 '2,478 '3,106 '420 Junes '24,056 '4,453 '19,603 '11,247 8,356 2,622 2,264 5,709 10,595 2,897 '2,479 '3,212 421 July '23 624 '4,735 '18 889 '10,816 8,073 2,543 1,853 5,220 9,616 3,120 '2,504 3,200 449 Aug 24,175 4,893 19,282 11,170 8,112 2,592 1,846 5,289 9,726 3,416 2,448 3,233 458 Sept p.. . . 24,538 4,817 19,721 11,696 8,025 2,799 1,802 5,455 10,056 3,480 2,443 3,280 462 Oct." 25.223 4,839 20,383 12,134 8,249 2,823 1,853 5,592 10,268 3,886 2,418 3,345 467 la. Other Europe Neth- Swit- End of period Total Aus- Bel- Den- Fin- France Greece Italy er- Nor- Por- Spain Swe- zer- Tur- Other 6 tria gium mark land lands way tugal den land key 1957 4,310 349 130 112 64 354 154 ,079 203 93 142 24 260 967 18 360 1958 5,081 411 115 169 69 532 126 ,121 339 130 163 36 303 852 20 694 1959 5,496 331 138 137 71 655 186 ,370 485 95 138 86 213 969 31 590 1960 3,903 243 142 54 46 519 63 877 328 82 84 149 227 678 18 393 1961_Oct.. 4,894 228 311 56 92 43 ,191 227 110 133 391 689 21 427 Nov. 4,969 241 330 49 89 957 50 ,203 231 99 90 134 379 712 28 376 Dec. '5,250 255 326 52 91 989 67 ,234 216 105 99 153 406 875 26 354 1962—Jan.. '5,285 256 357 52 90 1,083 76 ,248 218 93 93 159 392 '775 34 359 Feb.. '5,218 262 328 55 90 1,097 85 ,100 263 103 91 152 394 '819 37 345 Mar., '5,356 250 319 49 77 1,189 98 ,187 241 112 86 165 403 818 20 342 Apr.. '5,378 229 293 49 74 1,261 104 ,185 247 141 98 160 391 '808 19 321 May. 5,562 238 293 60 70 1,445 103 ,147 259 123 108 153 415 830 16 302 June. 5,709 277 258 52 71 1,394 110 ,187 307 101 130 159 425 951 23 263 July. 5,220 291 204 44 68 1,046 100 ,095 339 103 132 176 425 913 17 266 Aug.. 5,289 316 184 52 70 1,080 98 ,244 258 117 137 144 463 832 17 279 Sept. t 5,455 325 170 47 74 1,162 101 ,292 276 112 141 160 458 832 22 283 Otp 5,592 319 190 55 73 1,205 103 ,310 259 109 156 151 458 885 26 292 1 b. Latin America Neth., Pan- Do- An- ama, Co- min- El tilles Re- End of period Total i Argen- Bo- Brazil Chile lom- Cuba ican Sal- Guate- Mex- and pub- Peru Uru- Vene- Other tina livia bia Rep. vador mala ico Suri- lic of guay zuela 1, 7 nam 1957 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 1960 2,422 315 23 194 135 158 77 37 24 44 397 72 123 72 51 398 302 1961—Oct '2,287 246 23 254 96 137 46 27 28 43 403 88 84 73 50 406 '282 Nov '2,318 240 25 260 96 130 45 23 23 43 439 87 85 77 53 416 '275 Dec '2,371 235 26 228 105 147 43 23 22 46 494 89 87 84 57 r418 '268 1962—Jan '2,327 228 23 252 99 119 41 26 24 48 473 86 79 79 68 '397 '285 Feb '2,333 217 23 241 95 139 40 28 29 54 474 88 83 80 80 '381 '283 Mar. '2,432 243 24 207 114 137 39 34 28 58 506 92 82 90 75 '400 '303 Apr '2,543 221 24 '255 '110 140 38 42 29 57 516 97 90 92 75 '447 '308 May '2,410 209 24 '236 '110 142 37 43 34 55 490 90 91 90 72 '379 '308 June '2,479 208 25 225 131 159 37 48 35 52 518 87 87 90 79 364 '334 July '2,504 231 23 201 113 149 37 43 36 42 489 96 87 96 73 436 '351 Aug 2,448 210 21 198 106 143 36 42 33 37 484 93 87 104 87 394 374 Sept.* 2,443 230 22 213 104 145 36 40 31 34 461 94 85 107 92 379 370 Oct.p 2,418 187 24 180 112 152 8 15 35 25 33 467 91 84 103 90 417 404 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. 1705 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 1c. Asia and All Other Asia All other End of period K re o a - , Con- Total H K o o n n g g India I n n e d s o ia - Iran Israel Japan p R l u i e c b - - P p i i h p n i - e l- s Tai- T la h n a d i- Other Total A tra u l s i - a R t o h e f e p, A S f o r u ic t a h ( U E . g A y . p R t) .Other of 1957 1,946 70 82 151 52 586 117 175 86 157 417 355 85 38 40 1958 2,205 62 77 108 56 145 176 99 133 371 279 79 30 16 125 1959 2,780 60 114 139 87 ,285 148 172 94 141 494 373 110 49 20 162 1960 3,115 57 54 178 75 ,887 152 203 84 186 217 352 88 29 22 181 1961—Oct 2,807 59 88 92 65 ,535 195 134 92 240 273 382 90 46 15 192 Nov.... 2,819 59 90 82 62 ,532 198 150 90 248 276 385 91 44 12 199 Dec... 2,892 55 78 76 63 ,590 199 185 92 264 258 387 98 32 15 209 1962—Jan 2,926 59 75 86 63 ,599 188 202 98 276 246 415 127 32 21 204 Feb r2,995 57 74 100 87 187 171 103 293 255 378 95 36 14 205 Mar.... r3,092 57 74 94 71 ,'750 183 165 92 306 262 392 101 36 16 213 Apr r3,070 58 70 88 78 ,708 181 173 90 314 287 392 96 43 17 May,... r3,090 61 54 80 76 ,752 174 184 85 323 283 437 97 42 25 June.... r3,106 56 49 82 76 ,800 164 179 85 327 261 421 104 39 19 222 June 5..... r3,212 56 49 82 76 ,906 164 179 85 327 261 421 104 39 19 222 July.... 3,200 60 39 79 76 ,903 160 169 86 327 267 449 122 36 22 Aug... . 3,233 60 39 83 89 ,942 155 169 82 327 250 458 126 45 13 Sept 3,280 57 46 33 81 2,040 153 159 79 326 279 462 131 47 12 Oct.^... 3,345 63 49 39 74 2,104 147 163 77 326 276 467 155 42 13 Id. Supplementary Data9 (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. .2 .3 .5 .7 China Mainland 1 ° 36.0 35.8 34.8 34.6 .6 .7 1.0 .9 Goa 2.5 2.3 1.4 .9 Hungary .9 1.3 1.0 1.0 18.0 63.1 13.8 n.a. 3.5 2.7 5.1 3.1 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. 5.9 5.3 4.1 3.4 37.9 38.0 36.2 n.a. Poland ] ° 4.9 4.0 6.1 7.2 1.2 1.4 6.3 4.4 .9 .9 1.1 1.5 Nepal 1.2 1.8 1.2 n.a. Soviet Zone of Germany .. .. .. 1.4 1.5 1.3 1.3 5.6 23.5 10.6 10.1 U. S. S. R. io 2.2 2.6 12.1 4.8 15.2 14.8 14.2 n.a. Yugoslavia i ^ •. . . 9.5 6.2 10.0 11.6 Saudi Arabia 60.2 111.6 18.4 24.9 2.5 3.5 1.9 3.2 Other Latin America: 47 2 77.5 V Sy ie ri t a -N a . m . 4 4 8 . . 7 8 6 5 8 . . 0 3 1 4 4 . . 2 6 7 2 . . 9 6 Bermuda • • . • • • » • 6.8 14.3 21.7 33.5 Costa Rica 2 1 4 7 . . 5 4 2 1 1 8 . . 7 9 2 1 7 9 . . 3 8 2 1 3 3 . . 6 3 Al A l o lg th er e i r a : .5 .6 .4 .5 H H P T F a r h o a e r e i n a n t d i g c W u u h r a e a W s y s t e In st 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 l n l ch Guiana.. 3 1 7 6 3 1 1 . . . . . . 3 7 4 6 5 3 3 1 1 1 6 2 2 2 0 . . . . . . 7 6 5 8 5 5 1 1 1 1 4 1 1 0 5 . . . . . . 6 9 4 3 7 0 12 1 1 1 4 4 7 4 . ! . . 9 . 5 3 8 0 E F L L M r t i i h b b e a n y d i e o r c a e i p h i a r i a a S o I a s m n l d a a n l E i d l s r a i n tr d ea 4 2 1 6 3 7 1 1 3 . . . . . . . 0 4 0 5 8 7 0 2 5 1 1 2 7 0 8 7 . . . . . . . 0 8 3 4 6 7 6 6 1 9 5 4 6 . . . . . . . 3 6 9 3 9 8 9 2 1 5 1 1 1 . . . . . 1 4 9 8 1 2.9 2 0 2.2 l!6 Other Asia: 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 4.5 11.0 9.8 3.6 Rhodesia and Nyasaland, Federation of.. .2 .3 3.9 n.a. .9 .9 .5 .6 Somali Republic . • .. 1.3 8 3.5 1.7 5.9 4.3 .9 n.a. 5.2 1.6 1.9 n.a. 24.9 19.7 10.9 15.3 Tunisia . . .3 8.4 2.8 1.2 1 Series revised to exclude nonnegotiable, non-interest-bearing special 8 Decline from September reflects reclassification of deposits for U. S. notes held by the International Development Association and the changes in domicile over the past few years from Cuba to other countries. Inter-American Development Bank. 9 Except where noted, data based on reports by banks in the Second 2 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. i o Based on reports by banks in all F. R. districts. 3 Foreign central banks and foreign central governments and their 11 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.). 12 Excludes Jamaica. 4 Includes $1,031 million representing increase in V. S. dollar subscription to the IMF paid in June 1959. NOTE.—For back figures and description of the data in this and the 5 These figures reflect the inclusion of data for banks initially included following tables on international capital transactions of the United States, as of June 30. see "International Finance" Section 15, Supplement to Banking and Mone- 6 Includes Bank for International Settlements. tary Statistics. 7 Beginning with 1960 includes Inter-American Development Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1706 INT'L 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 End of period, or area To banks and official institutions To all other foreigners Payable Total in foreign and country currencies U. S. U. S. 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 ls a s a u n r d y Other 2 certificates1 certificates Total amounts outstanding 1957 15.158 12,847 5,875 5.840 1,132 2,252 ,766 278 209 59 1958 16^159 13,669 6 772 5 823 1 075 2 430 ,951 306 174 59 1959 19,389 16,913 6,341 9,245 1,328 2,398 ,833 295 270 77 I960 '21,272 '18,929 7,568 '9,960 1,401 2,230 ,849 148 233 113 1961_Oct '22,152 '19,701 8,899 '9,403 1.398 2,293 ,918 151 224 159 Nov '22,276 '19,802 8,843 '9,514 1,445 2,333 ,930 147 256 142 Dec '22,415 '19 909 '8 655 '9 751 1 504 '2,356 ,976 149 '230 150 1962—Jan '22,362 '19,839 '9,152 '9,232 1,455 '2,361 ' ,967 151 '243 161 Feb . . .. '22,667 '20,085 '9,139 '9,500 1,446 '2,430 .973 166 '290 152 Mar '23,081 '20,443 '8,774 '10,218 1,451 '2,454 '2,004 156 '294 184 Apr '23,265 '20,609 '9,124 '10,011 1,474 '2,475 '2,038 140 '297 181 May '23,402 '20,741 '8,829 '10,409 1,503 '2,494 '2,050 100 '344 167 June '23,947 '21,096 8,671 '10,973 1,453 2,674 2,207 107 360 177 June 3 '24,056 '21,203 8,739 '10,973 1,491 2,676 2,209 107 360 177 July '23,624 '20,891 8,410 '11,020 1,461 2,553 2,088 112 353 180 Aug 24 175 21 38^ 8 340 11 645 1 404 2 540 2,066 109 365 246 Sept.p 24.538 21,723 8,227 12,082 1,414 2,561 2,088 100 373 254 Oct." 25.223 22,390 8,516 12,455 1.419 2,550 2,081 108 361 282 Area and country detail, Aug. 31, 1962 Europe: Austria 316 314 251 55 8 2 2 Belgium 184 154 84 50 20 30 26 * 4 * Denmark 52 43 36 6 9 8 * * * Finland 70 69 47 19 3 1 1 * France 1,080 1,027 205 776 46 50 43 A" 3 2 Germany, Fed. Rep. of 2,592 2,554 248 1,944 362 35 29 2 5 2 Greece 98 82 65 17 16 16 Italy 1,244 1,066 187 738 141 27 25 2 * 150 Netherlands 258 215 91 114 10 41 31 2 9 1 Norway. 117 86 42 23 22 30 29 I * * Portugal 137 102 98 5 34 34 * * Spain 144 119 102 16 26 23 * 2 * Sweden 463 443 94 337 12 20 20 1 * Switzerland 832 724 251 298 175 98 61 15 22 10 Turkey 17 15 15 * 2 * 2 United Kingdom 1,846 1,386 1,139 185 62 141 33 231 54 Yugoslavia 13 12 11 2 405 * * Other 266 252 78 102 73 9 9 * * 4 Total . 9,726 8,664 3,042 4,680 943 838 500 60 277 224 Canada 3,416 3 171 1,623 1.507 41 235 175 31 28 Latin America: Argentina 210 99 79 18 2 110 105 4 * Bolivia.. 21 5 5 * 16 16 * * Brazil 198 73 65 * 7 124 122 1 1 Chile . 106 28 28 * 78 77 1 Colombia... 143 61 54 * 6 82 79 a 2 Cuba 36 2 2 34 34 i * Dominican Republic ... . 42 23 19 4 19 19 i * El Salvador 33 17 7 9 1 16 15 i Guatemala 37 18 14 4 19 19 Mexico 484 288 248 27 195 191 4 * Neth. Antilles and Surinam . . 93 42 26 12 4 51 34 2 15 Panama Rep of 87 12 11 75 63 10 Peru 104 38 38 66 65 1 * Uruguay 87 38 34 1 3 49 44 2 3 * Venezuela 394 171 171 * * 222 220 1 2 * Other 374 247 152 26 69 124 106 8 10 3 Total 2,448 1,162 955 78 129 1,281 1,210 16 55 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. 1707 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (In millions of dollars) Payable in dollars To banks and official institutions To all other foreigners A c r o e u a n t a r n y d Total in P a fo y r a e b i l g e n U.S. U.S. currencies Total Deposits T bi r l e ls a s a u n ry d Other 2 Total Deposits T bi r l e ls a s a u n r d y Other 2 certificates certificates Area and country detai, Aug. 31, 1962—Cont. Asia: 59 28 23 5 32 29 * 3 * India 39 33 23 3 6 6 6 * I Indonesia 83 81 60 21 * 2 2 37 30 30 * 7 7 * Israel . .... 89 84 52 6 26 5 5 * Japan 1,942 1,923 1,197 554 173 19 18 * 1 * 155 154 150 4 1 169 141 126 14 29 28 * * Taiwan 82 76 68 * 7 6 6 327 324 87 230 7 3 3 Other 250 209 163 24 21 40 40 * 1 1 Total 3,233 3,082 1,980 838 264 150 145 * 4 9 Allother: Australia 126 122 43 73 6 * * Conco Reo of the .. 41 39 39 2 2 South Africa .... 45 41 34 6 * 3 3 * U A R (Egypt) 13 13 1 1 1 * * * Other 232 201 146 46 10 28 27 1 Total 458 417 274 126 17 38 36 * 2 4 Total foreign countries. 19,282 16,496 7,874 7,229 1,393 2,540 2,066 109 365 246 International 4,893 4,893 467 44,416 * * Grand total 24,175 21,389 8,340 4 11,645 1,404 2,540 2,066 109 365 246 i Includes nonnegotiable, non-interest-bearing special U. S. notes held 2 Principally bankers' acceptances and commercial paper. by the International Monetary Fund, which amounted to $3,002 million 3 These figures reflect the inclusion of data for banks initially included on Oct. 31, 1962; excludes such notes held by the International Develop- as of June 30. ment Association and the Inter-American Development Bank, which 4 Includes $3,002 million of nonnegotiable, non-interest-bearing special amounted to $200 million on Oct. 31. U. S. notes held by the International Monetary Fund. 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 e G F p a e 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 i r n - 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 ,099 435 69 1959 2,623 57 54 30 38 121 234 534 272 ,175 586 56 1960 3,614 32 82 34 60 245 264 717 421 ,356 1,052 69 1961 Oct . 4,347 37 140 34 72 169 182 634 618 1,412 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 ,504 1,807 85 1962 Jan 4,570 40 157 36 68 163 214 678 483 ,425 1,892 92 Feb . 4,688 44 155 39 71 160 215 683 496 1,456 1,964 89 Mar 4,871 52 144 37 76 159 222 690 540 1,496 2,051 94 Apr 4,852 47 161 41 68 142 207 667 517 1,520 2,046 101 May . . . 4,836 55 139 37 68 158 229 686 453 1,565 2,029 103 June 4,778 55 129 36 68 151 254 693 431 1,529 2,009 117 June ^ 4,835 55 129 36 68 151 254 693 436 1,532 2,058 117 July 4,829 51 137 43 67 161 244 703 451 1,526 2,026 124 Aug 4 788 42 139 39 69 166 255 709 430 ,508 2,015 127 Sept v 4,767 43 135 41 68 163 277 726 443 1,504 1,954 140 Oct v 4,932 44 143 45 74 202 253 760 547 ,525 1,967 133 1 These figures reflect the inclusion of data for banks initially included foreigners where collection is being made by banks and bankers for as of June 30. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and NOTE.—Short-term claims are principally the following items payable their customers in the United States. Excludes convertible currencies on demand or with a contractual maturity of not more than 1 year: loans held by U. S. monetary authorities. made to and acceptances made for foreigners; drafts drawn against See also NOTE to Table I. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1708 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 I960 264 2 65 13 9 6 33 17 4 8 28 49 11 19 1961—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 23 Apr 207 5 15 7 24 4 58 21 5 13 17 13 5 21 May 229 6 18 9 26 4 62 23 5 16 19 13 5 23 254 5 18 11 27 5 59 24 7 12 20 37 6 23 July 244 7 19 11 28 5 57 26 8 12 16 27 6 22 255 6 19 11 28 5 55 27 9 18 17 31 6 22 Sept.p 277 7 15 12 28 5 60 28 11 22 16 41 6 26 Oct p 253 7 16 10 31 6 46 30 8 24 15 24 6 28 3b. Latin America 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 i D ca o 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 t A a i e l n l n t e d h - s ., a P p R m u a e n b a - - - , Peru U gu r a u y - V zu e e n l e a - Other Rep. Suri- lic of nam 1957 Q56 28 100 33 103 113 15 8 8 231 2 18 31 42 170 51 1958 1,099 40 148 52 51 166 19 10 12 293 6 23 31 52 142 53 1959 ,175 60 117 59 68 115 29 15 10 291 4 18 36 47 247 57 I960 1,356 121 4 225 73 80 26 16 22 14 343 8 23 44 57 234 66 1961—Oct 1,412 171 5 233 116 87 19 12 14 17 385 8 30 71 43 124 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 ,4?5 179 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 1,496 205 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 [,565 204 5 173 139 163 17 14 9 17 427 9 59 80 61 117 71 June ,529 188 6 200 154 143 17 15 10 13 408 7 41 81 68 108 71 June i ... ,532 189 6 200 154 143 17 15 11 13 409 7 41 81 68 108 71 July ,526 177 6 199 164 147 18 15 12 14 393 7 37 83 63 111 80 Aug ,508 164 8 191 158 138 17 15 11 14 397 10 36 86 80 107 74 Sept p . .... ,504 183 4 196 158 137 17 14 10 16 369 11 36 86 89 101 75 Oct p I 525 169 4 189 172 152 17 13 12 17 376 10 32 86 101 96 79 3c. Asia and All Other Asia All other End of period Total H Ko o n n g g India Iran Israel Japan ip P p h in il 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 th p g e . o, A So fr u i t c h 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 12 21 I960 1,052 9 9 33 24 RfM 19 7 24 121 69 28 3 11 3 24 1961—Oct 1,597 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 1,445 114 10 34 119 85 29 6 10 13 27 1962—Jan 1,892 10 10 30 36 1,515 133 11 34 114 92 31 6 11 14 31 Feb........ 1,964 9 10 28 37 1,605 118 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 June 2,009 11 14 24 39 ,680 91 7 30 113 117 35 4 11 24 44 June i 2,058 11 14 24 39 1,728 91 7 30 114 117 35 4 11 24 44 July 2jO26 11 14 24 38 [,731 76 6 30 96 124 34 2 12 26 49 Aug 2,015 11 14 25 37 1,736 69 6 33 84 127 40 4 12 23 48 Sept* 1,954 13 18 23 36 ,683 69 8 30 74 140 46 4 12 25 53 Oct.p 1,967 13 18 21 37 [,693 70 9 32 74 133 45 2 11 23 51 For notes see preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INFL CAPITAL TRANSACTIONS OF THE U. S. 1709 TABLE 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 End of period, or area Longand country t t e o rm ta — l1 Loans to— Total Total Ba i o n n f s f k i t c s it i a u a l - nd Others s C ta t o o i n o u l d l n t e i - s n c- g Other Total f D or e e w p ig i o t n h s e i t r s s I Other 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 1960 1,698 3,614 3,135 815 482 605 1,233 480 242 238 1961—Oct... 1,847 4,347 3,799 780 600 683 ,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 ,789 586 385 200 1962—Jan... 2,046 4,570 4,113 1,003 617 708 ,785 458 287 171 Feb... 2,081 4,688 ,246 1,088 623 715 ,819 443 288 154 Mar... 2,139 4,871 ,399 1,214 644 732 ,809 473 307 166 Apr... 2,086 4,852 ,393 1,236 679 726 ,752 459 274 184 May.. 2,080 4,836 ,326 1,304 570 711 ,742 510 293 217 June.. 2,175 4,778 4,299 1,314 539 698 ,749 479 313 165 June 2 2,175 4,835 4,354 1,324 543 703 ,784 481 316 165 July.. 2,195 4,829 4,339 1,290 559 701 ,789 490 311 179 Aug... 2,186 4,788 4,325 1,259 604 698 ,763 463 304 159 Sept.* 2,173 4,767 4,271 1,260 592 690 ,730 496 312 184 OtP 2,114 4,932 4,309 1,243 634 706 ,727 622 416 207 Area and country detail, Aug. 31, 1962 Europe: Austria... 56 6 6 2 1 Belgium.. 8 19 16 9 2 Denmark. 9 11 10 3 6 Finland.. 3 28 28 2 23 France... 22 42 33 12 10 9 9 Germany, Fed. Rep. of.. 83 139 115 30 41 19 25 23 18 N I G ta e r l e t y h ec e e rlands 2 8 4 6 5 3 5 5 9 4 3 7 5 7 4 2 9 9 1 1 5 2 7 " I i 2 8 He 2 8 Norway 188 27 26 5 2 18 1 1 Portugal.... 24 9 9 4 2 3 Spain 8 18 17 4 6 5 3 1 1 Sweden.... 44 17 15 1 * 2 2 Switzerland. 16 69 40 12 13 28 22 7 Turkey 31 31 28 3 United Kingdom. 26 166 53 20 12 15 114 99 15 Yugoslavia 2 6 6 4 * 2 Other 22 22 2 13 3 Total. 527 709 516 129 122 142 193 166 28 122 Canada 291 430 267 13 118 130 162 38 124 7 Latin America: Argentina 69 164 162 30 22 41 69 2 Bolivia 8 8 4 * 4 1 Brazil 264 191 147 32 54 20 40 "45' 45 Chile 23 158 158 36 25 24 73 Colombia 71 138 138 32 36 27 42 Cuba 1 17 17 16 Dominican Republic 15 15 2 El Salvador , 11 11 5 4 Guatemala 9 14 14 1 1 7 5 Mexico 204 397 393 166 80 34 114 Netherlands Antilles and Surinam , 10 10 Panama, Rep. of. 21 36 36 7 16 6 6 Peru 14 86 86 7 12 26 41 Uruguay 1 80 80 10 3 6 61 Venezuela 211 107 106 12 21 58 15 Other 74 74 74 11 17 31 15 Total. 970 1,508 1,455 355 295 317 489 52 48 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1710 INTL. CAPITAL TRANSACTIONS OF THE U. S. 4. CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Tn millions of dollars) Short-term Payable in dollars Payable in foreign currencies Long- Area and term- Loans to— country total l Total Collections Deposits Total Banks and out- Other Total with Other official Others standing foreigners institutions Area and country detail, Aug. 31, 1962—Cont. Asia: Hong Kong.. 3 11 11 5 2 3 * India 20 14 14 3 1 7 3 * • * Indonesia . 43 * * Iran 11 25 25 3 1 19 2 Israel 28 37 37 4 3 4 26 Japan 54 1,736 1,692 614 24 139 915 44 44 Korea Rep. of * 6 6 * 6 1 Philippines 61 69 69 52 7 3 7 * * Taiwan .. 1 6 6 2 2 1 * Thailand 3 33 33 10 5 18 Other 9 77 77 48 4 21 4 * • * Total 234 2,015 1,970 742 42 209 977 45 44 * All other: Australia 42 40 32 2 5 15 11 8 5 3 Congo Rep of the .... 40 4 4 2 2 South Africa 29 12 10 1 * 9 * 2 2 * U A R fEevot) 3 23 23 10 13 * * Other 50 48 47 6 22 18 2 * * Total 163 127 116 20 27 44 26 10 7 3 Total foreign countries. 2,186 4,788 4,325 1,259 604 698 1,763 463 304 159 [ Mainly loans with an original maturity of more than 1 year. 2 These figures reflect the inclusion of data for banks initially included as of June 30. 5. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U. S. Govt. bonds & notes U. S. corporate securities i Foreign bonds Foreign stocks Net purchases Period or sales Pur- Sales Pur- Net pur- Pur- Net pur- Pur- Net purchases chases Sales chases or chases Sales chases or chases Sales chases or Foreign sales sales sales Total ountries 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 1960 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—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. 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 -35 57 67 -10 May 122 299 -176 -113 286 260 26 125 301 -176 79 79 June 108 136 -28 -25 245 309 -64 56 136 -80 70 108 -38 July. 146 119 26 31 168 200 -32 64 89 -24 48 37 11 Aug. 135 347 -211 -32 163 156 7 50 65 -15 45 41 4 Sept. 327 334 -8 -44 125 140 -15 44 100 -57 44 39 4 Oct.* 2 77 107 2 -30 '• -29 155 160 -5 251 401 -151 58 40 18 1 Includes small amounts of State and local govt. securities. NOTE.—Statistics include transactions of international organizations. 2 Excludes nonmarketable U. S. Treasury bonds, foreign currency See also NOTE to Table 1. series, issued and payable in Italian lire ($25 million equivalent) and in Swiss frances ($23 million equivalent). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U. S. 1711 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 Total* Neth- Switz- United Latin All Stocks Bonds Belgium France la e n r- ds la e n r- d K d i o n m g- E O u t r h o e p r e E T u o ro ta p l e Canada Am ica er- other ] 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 1960 252 202 50 5 38 171 -48 66 234 -45 36 28 1961 223 323 -99 4 21 20 166 -17 38 232 -112 44 58 • 1961—-Oct 14 28 -15 2 1 24 -10 2 19 -7 1 1 Nov 20 25 -5 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 -3 Feb 30 36 -6 1 5 -1 34 -2 • 37 -9 -1 3 Mar 34 20 14 1 16 — 1 — 1 16 17 -1 3 Apr 22 21 1 • • • 18 15 • 34 -6 2 -8 May 26 28 1 2 4 21 13 2 43 1 -10 -8 June -64 -65 1 —2 —2 2 -6 —29 1 -36 -14 -4 -9 July -32 -18 -13 • 1 -1 6 -28 -23 -13 * 4 A S O e u c p t g t p .* -1 -5 5 7 - - 4 9 7 - - 2 6 • • * * - - 1 1 * -2 * • -1 1 5 * 3 -1 -5 0 9 - - 3 2 2 -1 -7 0 1 -4 2 1 -2 * 1 -1 8 * 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) Total Assets in custody Period na In ti t o e n r- al f c o o re u i n g - n Europe C a a d n a - A La m t e in r- Asia o A th l e l r End of period Deposits tries ica U. S. Govt. Earmarked 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 I960 217 5,726 11,843 1961—Oct... -5 -47 -17 -7 1 -26 1 Nov... 1 -83 -26 -15 -9 -15 -18 1961—Nov 198 5,793 11,840 Dec... -7 -116 -85 -28 1 -9 6 Dec 279 6,006 11,905 1962—Jan.... • -20 -9 22 -1 -9 -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 -21 -24 -23 2 -3 1 Apr 230 5,551 12,230 May.''.. -11 -165 -22 -91 -3 -26 -23 May 223 5,754 12,308 June... • -117 -66 -31 -18 -5 3 June 334 6,228 12,368 July... -4 -10 9 8 * -1 -26 July 248 6,026 12,678 Aug.... 4 -14 -14 4 • -5 1 Aug • • 168 6,407 12,689 Sept.*.. 9 -61 8 -14 2 -57 * SeDt 229 6,767 12,687 Oct.P... -4 -128 29 -125 -2 -6 -24 Oct 182 7,137 12,706 Nov 202 7,132 12,680 1 U. S. Treasury bills, certificates of indebtedness, notes, and bonds; includes securities 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

1712 INT'L 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 3d revised ser. 4th revised ser. 3d revised ser. 4th revised ser. Area and country 1962 1962 1961 1961 1961 1961 II III III IV II III III IV Europe: Austria 2 2 5 4 4 4 3 4 Belgium 25 25 35 17 17 25 26 22 Denmark 3 3 5 6 6 7 6 7 Finland 1 1 2 2 2 2 2 2 France 40 41 40 36 37 46 46 37 Germany, Fed. Rep. of. . . 40 40 68 74 76 78 101 118 Greece 2 2 3 2 2 3 3 4 Italy 30 30 36 34 34 47 51 60 Netherlands 48 49 22 23 23 28 35 43 Norway 9 9 7 7 8 10 10 12 Portugal 1 1 4 6 6 5 7 7 Spain 5 5 10 10 9 9 12 12 14 Sweden 6 6 6 8 7 19 18 19 19 21 22 Switzerland 39 39 39 25 15 19 15 16 18 28 24 Turkey 4 4 4 4 4 5 5 5 6 5 4 United Kingdom 109 110 110 111 120 117 225 187 188 198 194 165 Yugoslavia 1 2 2 3 5 6 2 2 2 2 2 2 Other 2 2 2 2 2 5 5 6 5 Total 388 370 371 366 350 322 509 454 460 516 560 552 Canada 49 45 45 49 45 47 558 653 655 607 687 679 Latin America: Argentina 10 6 34 Bolivia 1 3 Brazil 20 27 59 Chile 5 4 21 Colombia 7 2 14 Cuba 2 2 6 Dominican Republic 4 El Salvador 3 Guatemala 5 Mexico 41 Neth. Antilles and Surinam 3 Panama, Rep. of 10 Peru 12 Uruguay 4 Venezuela 40 Other 31 Total 102 106 109 105 126 109 286 350 356 295 295 291 Asia: Hong Kong 3 3 3 India 5 6 24 Indonesia 10 6 2 Iran 5 6 6 Israel 2 3 10 Japan 68 68 100 96 Korea, Rep. of * * 2 3 T P T O h a h th i i a w l e i i l p r a a p n n i d nes 7 * 3 9 3 1 22 5 3 3 3 9 4 3 1 11 Total 114 122 122 114 115 98 118 127 129 155 176 192 All other: Australia 23 Congo, Rep. of the 2 South Africa 9 U.A.R. (Egypt) 15 Other 17 Total 31 29 30 44 42 43 56 62 64 64 66 International Grand total 684 672 676 680 677 618 ,528 1,646 1,664 ,638 1,783 1,780 i Includes data for a number of firms reporting for the first time on mercial concerns in the United States. Data exclude claims held through June 30, 1961 (3rd revised series), and on Sept. 30, 1961 (4th revised U. S. banks, and intercompany accounts between U. S. companies and series). their foreign affiliates. NOTE.—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 1713 U. S. BALANCE OF PAYMENTS (In millions of dollars) 1959 1960 1961 1962 Item III IV III IV III IV Exports of goods and services, total1.. 5,848 5,950 6,448 6,280 6,882 6,581 7,270 6,820 6,952 6,656 7,638 6,995 7,791 Merchandise 4,074 4,058 4,343 4,615 5,008 4,691 5,145 5,012 4,922 4,673 5,308 5,015 5,505 Services* 1,774 1,892 2,105 1,665 1,874 1,890 2,125 lf" 2,030 1,983 2,330 1,980 2,286 Imports of goods and services, total... 5,964 6,228 5,944 5,740 6,045 6,018 5,385 5,276 5,595 6,078 5,974 5,882 6,271 Merchandise 3,879 3,847 3,974 3,830 3,858 3,551 3,484 3,400 3,458 3,682 3,974 3,946 4,078 Services 1,296 1,595 1,216 1,139 1,429 1,670 1,179 1,106 1,381 1,697 1,278 1,184 1,450 Military expenditures 789 786 754 771 758 797 722 770 756 699 722 752 743 Balance on goods and services1 -116 -278 504 540 837 563 1,885 1,544 1,357 578 1,664 1,113 1,520 Unilateral transfers (net) -581 -547 -675 -582 -620 -624 -680 -694 -706 -633 -696 -748 -720 Private remittances and pensions... -187 -214 -206 -201 -202 -207 -232 -216 -218 -213 -231 -228 -220 Government nonmilitary grants.... -394 -333 -469 -381 -418 -417 -448 -478 -488 -420 -465 -520 -500 U.S. long- and short-term capital (net). 3-1,032 -607 -595 -883 -1,131 -1,088 -1,885 -1,372 -540 -1,104 -1,863 -1,268 -1,101 Private, total -738 -387 -838 -653 -741 -943 -1,545 -989 -955 -637 -1,372 -866 -686 Direct investment -442 -224 -419 -303 -331 -327 -733 -441 -324 -341 -369 -196 -449 Portfolio and short-term investment -296 -163 -419 -350 -410 -616 -812 -548 -631 -296 -1,003 -670 -237 Government 3-294 -220 243 -230 -390 -145 -340 -383 415 -467 -491 -402 -415 Foreign capital and gold (net) 31,439 1,440 620 851 1,014 1,239 1,156 506 185 916 1,460 752 402 Increase in foreign short-term assets and Government securities.. 3 847 1,109 425 586 740 548 254 38 314 626 881 402 547 Increase in other foreign assets.... 195 164 123 215 180 54 -19 122 201 20 123 160 62 Gold sales by United States 4 3 397 167 72 50 94 637 921 346 -330 270 456 190 -207 Errors and omissions 290 -8 146 74 -100 -90 -476 16 -296 243 -565 151 -101 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) Switzer- Canada United Kingdom France Germany Netherlands land Month 3 T m r b e o i a l s n ls u t , h ry s1 m D o a d n y a e - y t y o - 2 3 B a a a m c n n c c o k e e n p e s t r t , h - s' 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 a s e i n r t s c s ' e m D o a d y n a e - y t y o - 3 T d r 6 b e a 0 i a y l - s l 9 s s u 0 4 , ry m D o a d n y 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 c i 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 I960—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—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 5.65 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 [.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 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 Aug 5.15 5.03 4.02 3.79 3.32 2.50 3.46 2.50 2.50 1.53 1.03 2.00 Sept 5.03 4.99 3.93 3.69 3.36 2.50 3.48 2.50 3.06 1.57 1.10 2.00 Oct 4.46 4.64 3.92 3.71 3.16 2.50 2.63 2.50 1.96 1.50 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

1714 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 Nov. 30, 1961 Rate as of Country 1961 1962 Nov. 30, 1962 Per Month cent effective Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Argentina 6.0 Dec. 1957 6.0 Austria 5.0 Mar. 1960 5.0 Belgium 4.75 Aug. 1961 4.5 4.25 4.0 3.75 3.75 Brazil 10.0 Apr. 1958 10.0 Burma 3.0 Nov. 1957 4 0 4.0 Canada1 2.75 Nov. 1961 3.24 3.35 3.42 3.37 3.32 3.77 16.0 5.5 5.0 4.0 4.0 4.0 Aug. 1960 4.0 Chile* 15.88 July 1961 15.27 14.62 14.62 Colombia 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 Egypt 3.0 Nov. 1952 5.0 5.0 El Salvador 6.0 June 1961 6.0 Finland 6.75 Mar. 1959 8.0 7.0 7.0 3.5 Oct. 1960 3.5 Germany 3.0 May 1961 3.0 Greece 6.0 Nov. 1960 6.0 Honduras3 2.0 Jan. 1953 3.0 3.0 Iceland 9.0 Dec. 1960 9.0 India* 4.0 May 1957 4.0 3.0 Apr. 1946 3.0 Iran 6 0 Nov. 1960 6.0 Ireland 5.94 Nov. 1961 5.56 5.44 4.70 4.31 4.09 4.0 3.94 4.06 4.06 Israel 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 3.5 Japan 7.3 Sept. 1961 6.94 6.57 6.57 Mexico 4.5 June 1942 4.5 Netherlands 3.5 Nov. 1959 4 0 4.0 New Zealand 7.0 Mar. 1961 7.0 Nicaragua 6.0 Apr. 1954 6.0 Norway 3.5 Feb. 1955 3.5 Pakistan 4.0 Jan. 1959 4.0 Peru 9.5 Nov. 1959 9.5 Philippine Republics 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 3.5 3.5 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 Turkey 7.5 May 1961 7.5 United Kingdom 6.0 Nov. 1961 «5.0 4.5 4.5 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks the largest proportion of its credit operations. Other rates for some of was fixed at 6 per cent. Rates on loans to money market dealers will these countries follow: continue to be .25 of 1 per cent above latest weekly Treasury bill tender Argentina—3 and 5 per cent for certain rural and industrial paper, deaverage rate but will not be more than the bank rate. pending on type of transaction: 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at Brazil—8 per cent for secured paper and 4 per cent for certain agricultural the average rate charged by banks in the previous half year. Old redis- paper; counts remain subject to old rates provided their amount is reduced by one-eighth each month beginning with May 1, 1959, but the rates are Colombia—3.5 per cent for agricultural and industrial development raised by 1.5 per cent for each month in which the reduction does not occur. paper of up to 150 days, 3 per cent for economic development paper 3 Rate shown is for advances only. of up to 5 years, and 2 per cent for specific small business, cooperative 4 Rate applies to advances against commercial paper as well as against and employee paper; govt. securities and other eligible paper. Costa Rica—5 per cent for paper related to commercial transactions 5 Beginning with June I, 1962, the rediscount rate for commercial (rate shown is for agricultural and industrial paper); bank loans financing the purchase of surplus agricultural commodities Cuba—5.5. per cent for sugar loans and 5 per cent for loans secured by under U. S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, national public securities; 1962, the rediscount rate for commercial bank financing of 9 categories Ecuador—-6 per cent for bank acceptances for commercial purposes; of development loans was reduced from 6 to 3 per cent. Indonesia—various rates depending on type of paper, collateral, com- 6 On Mar. 8, 1962 the discount rate had been reduced to 5.5 per cent. modity involved, etc.; Japan—penalty rates (exceeding the basic rate shown) for borrowings NOTE.—Rates shown are mainly those at which the central bank either from the Central bank in excess of an individual bank's quota; discounts or makes advances against eligible commercial paper and/or Peru—8 per cent for agricultural industrial and mining paper; and govt. securities for commercial banks or brokers. For countries with Venezuela—4 per cent for rediscounts of certain agricultural paper and more than one rate applicable to such discounts or advances, the rate for advances against government bonds or gold and 5 per cent on adshown is the one at which it is understood the central bank transacts vances against securities of Venezuelan companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE RATES 1715 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Argentina Period (peso) (p t A r o a u u l s n i - a d) (s A ch u i s l t l r in ia g) B ( e fr l a g n iu c m ) C (d a o n l a la d r a ) C (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n nc c ) e 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 1 20.389 1961 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .31098 20.384 1961—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 3 1.0444 224.22 3.8690 2.0080 95.232 21.059 14.510 .31070 20.405 May .9600 224.07 C3.8698 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 Sept 223.18 3.8700 2.0093 92.848 21.008 14.443 .31058 20.405 Oct ... 223.21 3.8701 2.0094 92.914 21.009 14.442 .31057 20.405 Nov 6 .6746 223.26 3.8680 2.0098 92.849 21.011 14.455 .31058 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 a l 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 - r s ) ( 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 I960 23.976 20.968 280.76 .16104 .27785 32.817 8.0056 26.513 277.98 1961 . . . . 7 24.903 20.980 280.22 .16099 .27690 32.659 8.0056 827.555 277.45 1961—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 21.116 278.18 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 Apr 25.006 21.075 281.40 .16107 .27623 32.766 8.0056 27.772 278.61 May 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 Sept 24.996 20.971 280.09 .16110 .27852 32.738 8.0056 27.755 277.32 Oct 24 963 20.963 280.13 .16106 .27902 32 745 8.0056 27 748 277.36 Nov 24.947 20.970 280.19 .16104 .27901 32.751 8.0056 27.748 277.42 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 o e p l ) - ic (e P s o g c r a u t l d u o - ) (pou S n o d u ) thAfr ( 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 I960 14 018 49 770 3 4937 279 71 1 6635 19 349 23 152 280 76 1961 14.000 3.4909 279.48 139.57 1.6643 19.353 23.151 280.22 1961—Nov 14 048 3 4990 140 22 1 6644 19 347 23 133 281 49 Dec 14.039 3.5020 139.96 1.6649 19.346 23.169 280.96 1962—Jan 14.027 3.5000 140.02 1.6650 19.348 23.158 281.10 Feb 14.037 3.4995 140.20 1.6650 19.388 23.111 281.46 Mar 14 037 3 5014 140 24 1 6651 19 408 23 042 281 53 Apr 14 033 3.5032 140.17 1.6651 19.424 23.011 281.40 May 14.022 3.5050 140.08 1.6651 19.428 23.098 281.21 June 14.013 3.5011 139.89 1.6651 19.436 23.172 280.83 Julv 14.005 3.5000 139.80 1.6651 19.428 23.162 280.66 Aug 13 994 3 4996 139 67 1 6651 19 432 23 136 280 38 Sept 13.982 3.5018 139.52 1.6659 19.410 23.129 280.09 Oct 13 983 3.4899 139.54 1.6661 19.409 23.139 280.13 Nov n 989 3.4900 139.57 1.6662 19.363 23.170 280.19 * A new franc equal to 100 old francs was introduced on Jan. 1, 1960. from 4.20 to 4.00 marks per U. S. dollar. 2 Based on quotations through Mar. 19, 1962. 8 Effective Mar. 7, 1961, the par value of the guilder was changed from 3 Based on quotations beginning with Apr. 4, 1962. 3.80 to 3.62 guilders per U. S. dollar. 4 Effective May 2, 1962, the par value of the Canadian dollar was set at 92.5 U. S. cents. NOTE.—Averages of certified noon buying rates in New York for 5 Based on quotations through July 10, 1962. cable transfers. For description of rates and back data, see "International 6 Based on quotations beginning Nov. 19, 1962. Finance," Section 15 of Supplement to Banking and Monetary Statistics. 7 Effective Mar. 5, 1961, the par value of the deutsche mark was changed 1962. 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 ELIZABETH L. CARMICHAEL, Assistant Secretary ROBERT C. MASTERS, Associate Director GLENN M. GOODMAN, Assistant Director LEGAL DIVISION HOWARD H. HACKLEY, General Counsel HENRY BENNER, Assistant Director DAVID B. HEXTER, Assistant General Counsel G. HOWLAND CHASE, Assistant General Counsel JAMES C. SMITH, Assistant Director THOMAS J. O'CONNELL, Assistant General BRENTON C. LEAVITT, Assistant Director Counsel JEROME W. SHAY, Assistant General Counsel ANDREW N. THOMPSON, Assistant Director WILSON L. HOOFF, Assistant General Counsel LLOYD M. SCHAEFFER, Chief Federal Reserve DIVISION OF RESEARCH AND STATISTICS Examiner GUY E. NOYES, Director ALBERT R. KOCH, Associate Director DIVISION OF PERSONNEL ADMINISTRATION DANIEL H. BRILL, Adviser FRANK R. GARFIELD, Adviser EDWIN J. JOHNSON, Director ROBERT C. HOLLAND, Adviser H. FRANKLIN SPRECHER, JR., Assistant Director KENNETH B. WILLIAMS, Adviser LEWIS N. DEMBITZ, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES DIVISION OF INTERNATIONAL FINANCE JOSEPH E. KELLEHER, Director RALPH A. YOUNG, Director J. HERBERT FURTH, Adviser HARRY E. KERN, Assistant Director A. B. HERSEY, Adviser ROBERT L. SAMMONS, Adviser SAMUEL I. KATZ, Associate Adviser OFFICE OF THE CONTROLLER RALPH C. WOOD, Associate Adviser J. J. CONNELL, Controller DIVISION OF BANK OPERATIONS SAMPSON H. BASS, Assistant Controller 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 1716 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 1717 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 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

1718 FEDERAL RESERVE BULLETIN • DECEMBER 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 Alan R. Holmes Walter H. Rozell, Jr. William F. Treiber Charles A. Coombs Herbert H. Kimball H. L. Sanford Howard D. Crosse Robert G. Rouse Robert W. Stone Marcus A. Harris Todd G. Tiebout Philadelphia Karl R. Bopp Hugh Barrie Norman G. Dash Harry W. Roeder Robert N. Hilkert John R. Bunting David P. Eastburn James V. Vergari Joseph R. Campbell Murdoch K. Goodwin Richard G. Wilgus Cleveland W. D. Fulton Roger R. Clouse W. Braddock Hickman Martin Morrison Donald S. Thompson E. A. Fink 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 Harry A. Shuford 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 James L. Cauthen G. R. Murff Thomas W. Plant Philip E. Coldwell Ralph T. Green James A. Parker W. M. Pritchett Thomas A. Hardin Thomas R. Sullivan San Francisco... Eliot J. Swan J. L. Barbonchielli E. H. Galvin John A. O'Kane H. E. Hemmings Paul W. Cavan A. B. Merritt D. M. Davenport1 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 C. H. Watkins 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, material may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington 25, D. C. The items desired should be checked and the mailing address indicated on the order form (page 4 of this list). Where there is a charge, remittance should accompany order and be made payable to the order of the Board of Governors of the Federal Reserve System. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. FUNCTIONS. 1961. 238 pp. 172 pp. $1.00 per copy; in quantities of 10 or more for single shipment, $.85 each. ANNUAL REPORT OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. THE FEDERAL FUNDS MARKET—A Study by a FEDERAL RESERVE BULLETIN. Monthly. Subscrip- Federal Reserve System Committee. 1959. Ill tion prices: (1) $6.00 per annum or $.60 a pp. $1.00 per copy; in quantities of 10 or more copy in the United States and its possessions, for single shipment, $.85 each. Bolivia, Canada, Chile, Columbia, Costa Rica, DEBITS AND CLEARINGS STATISTICS AND THEIR Cuba, Dominican Republic, Ecuador, Guate- USE (rev. ed.). 1959. 144 pp. $1.00 per copy; mala, Haiti, Republic of Honduras, Mexico, in quantities of 10 or more for single shipment, Nicaragua, Panama, Paraguay, Peru, El Salva- $.85 each. dor, Uruguay, and Venezuela. (2) Elsewhere, $7.00 per annum or $.70 per copy. (3) In quan- ALL-BANK STATISTICS, 1896-1955. Pt. I, U. S. tities of 10 or more copies sent to one address in Summary. Pt. II, Summaries by States and other the United States, $5.00 per annum or $.50 per areas. 1959. 1,229 pp. $4.00. copy per month. THE FEDERAL RESERVE ACT, as amended through FEDERAL RESERVE CHART BOOK ON FINANCIAL October 1, 1961, with an Appendix containing AND BUSINESS STATISTICS. Monthly. Annual provisions of certain other statutes affecting the subscription includes one issue of Historical Reserve System. 386 pp. $1.25. Chart Book. Subscription prices: (1) $6.00 per annum or $.60 per copy in the United States FLOW OF FUNDS IN THE UNITED STATES, 1939-53. and the countries listed above. (2) Elsewhere, 1955. 390 pp. $2.75. $7.00 per annum or $.70 per copy. (3) In quantities of 10 or more of same issue for single FLOW OF FUNDS/SAVING ACCOUNTS, 1946-60, Supp. 5. 1961. shipment, $.50 each. HISTORICAL CHART BOOK. Issued annually in Sep- SUPPLEMENT TO BANKING AND MONETARY STAtember. Annual subscription to monthly chart TISTICS. Sec. 1 Banks and the Monetary System. book includes one issue of the Historical. Prices: 1962. 35 pp. $.35. Sec. 10. Member Bank Re- (1) $.60 each in the United States and the coun- serves and Related Items 1962. 64 pp. $.50. tries listed above. (2) Elsewhere, $.70 each. (3) Sec. 14. Gold. 24 pp. $.35. Sec. 15. Interna- In quantities of 10 or more for single shipment, tional Finance. 1962. 92 pp. $.65. $.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF TREASURY-FEDERAL RESERVE STUDY OF THE GOV- THE FEDERAL RESERVE SYSTEM. ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. RULES OF ORGANIZATION AND PROCEDURE—BOARD Individual books $1.00 each; set of 3 books OF GOVERNORS OF THE FEDERAL RESERVE SYS- $2.50. TEM. 1962. 40 pp. INDUSTRIAL PRODUCTION—1959 REVISION. 1960. PUBLISHED INTERPRETATIONS of the Board, as of 229 pp. $.50. December 31, 1961. $2.50. 1719 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1720 FEDERAL RESERVE BULLETIN • DECEMBER 1962 PERIODIC RELEASES INTERDISTRICT SETTLEMENT FUND (G.15) WEEKLY INDEX NUMBERS OF WHOLESALE PRICES (G.8) CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS BY INDUSTRY (H.I2) MONTHLY DEPARTMENT STORE SALES (G.7.2) CHANGES IN STATE BANK MEMBERSHIP (K.3) MONTHLY DEPARTMENT STORE SALES AND STOCKS, CONDITION OF WEEKLY REPORTING MEMBER BY DEPARTMENTS (G.7.3) BANKS IN NEW YORK AND CHICAGO (H.4.3) MONTHLY DEPARTMENT STORE STOCKS (G.7.4.2) CONDITION OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES (H.4.2) MONTHLY FOREIGN EXCHANGE RATES (G.5) FACTORS AFFECTING BANK RESERVES AND CON- NATIONAL SUMMARY OF BUSINESS CONDITIONS DITION STATEMENT OF F. R. BANKS (H.4.1) (G.12.2) WEEKLY DEPARTMENT STORE SALES (H.8a) OPEN MARKET MONEY RATES AND BOND PRICES WEEKLY DEPARTMENT STORE SALES—SELECTED (G.13) CITIES AND AREAS (H.8b) WEEKLY FOREIGN EXCHANGE RATES (H.10) RETAIL FURNITURE STORE REPORT (G.16) WEEKLY U. S. GOVERNMENT SECURITY YIELDS SALES FINANCE COMPANIES (G.20) AND PRICES (H.15) STATE MEMBER BANKS OF THE FEDERAL RESERVE SEMIMONTHLY-IRREGULAR SYSTEM AND NONMEMBER BANKS THAT MAIN- APPLICATIONS TO MERGE BANKS OR TO FORM OR TAIN CLEARING ACCOUNTS WITH FEDERAL RE- EXPAND A BANK HOLDING COMPANY RECEIVED SERVE BANKS (Also annual list) (G.4) BY OR ACTED ON BY THE BOARD (K.2) U. S. GOVERNMENT SECURITY YIELDS AND PRICES DEMAND DEPOSITS, CURRENCY, AND RELATED (G.14) ITEMS (J.3) DEPOSITS, RESERVES, AND BORROWINGS OF MEM- QUARTERLY-SEMIANNUAL BER BANKS (J.I) ALL BANKS IN THE UNITED STATES AND OTHER RESEARCH LIBRARY—RECENT ACQUISITIONS (J.2) AREAS—PRINCIPAL ASSETS AND LIABILITIES, BY STATES (E.4) MONTHLY ASSETS AND LIABILITIES OF ALL BANKS IN THE BANK RATES ON SHORT-TERM BUSINESS LOANS UNITED STATES (Including Consolidated State- (E.2) ment for Banks and the Monetary System) SUMMARY REPORT—ASSETS AND LIABILITIES OF (G.7) MEMBER BANKS (E.3.1) ASSETS AND LIABILITIES OF ALL MEMBER BANKS, BY DISTRICTS (G.7.1) MEMBER BANK INCOME (E.5) BANK DEBITS AND DEPOSIT TURNOVER (G.6) MEMBER BANK LOANS (E.3.4) BUSINESS INDEXES (G.I2.3) SALES, PROFITS, AND DIVIDENDS OF LARGE COR- CONSUMER CREDIT (G.19) PORATIONS (E.6) CONSUMER CREDIT AT CONSUMER FINANCE COM- PANIES (G.22) ANNUAL CONSUMER INSTALMENT CREDIT AT COMMERCIAL BANK DEBITS TO DEMAND DEPOSITS ACCOUNTS BANKS (G.I8) (C.5) DEPARTMENT STORE CREDIT (G.17) DEPARTMENT STORE TRADE, UNITED STATES DEPARTMENT STORE MERCHANDISING DATA, (C.7.3) UNITED STATES (G.7.4.1) BIENNIAL FEDERAL RESERVE PAR LIST (Also annual list. Both available at Federal Reserve Banks only) DISTRIBUTION OF BANK DEPOSITS BY COUNTIES (G.3) AND STANDARD METROPOLITAN AREAS (C.8) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS 1721 REPRINTS FEDERAL RESERVE OPERATIONS IN PERSPECTIVE. {From Federal Reserve BULLETIN unless preceded Mar. 1961. 10 pp. by an asterisk) STATISTICS ON THE GOVERNMENT SECURITIES THE HISTORY OF RESERVE REQUIREMENTS FOR MARKET. Apr. 1961. 8 pp. BANKS IN THE UNITED STATES. NOV. 1938. OWNERSHIP OF DEMAND DEPOSITS. Apr. 1961. 20 pp. 3 pp. ADJUSTMENT FOR SEASONAL VARIATION. Descrip- CLASSIFICATION SYSTEM FOR SAVINGS AND OTHER tion of method used by Board in adjusting TIME DEPOSITS. May 1961. 2 pp. (Also, similar economic data for seasonal variation. June reprint from July 1960 BULL.) 1941. 11 pp. SURVEY OF FINANCE COMPANIES, MID-1960. Oct. THE MONETARY SYSTEM OF THE UNITED STATES. 1961. 21 pp. (Also, similar reprint from Apr. Feb. 1953. 16 pp. 1957 BULL.) INFLUENCE OF CREDIT AND MONETARY MEASURES LIQUIDITY AND PUBLIC POLICY. Oct. 1961. 17 pp. ON ECONOMIC STABILITY. Mar. 1953. 16 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. FEDERAL FINANCIAL MEASURES FOR ECONOMIC 1961. 15 pp. STABILITY. May 1953. 7 pp. THE PRIVATE DEMAND FOR GOLD, 1931-53. Sept. REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. 1961. 3 pp. 1954. 10 pp. DIRECTLY PLACED FINANCE COMPANY PAPER. THE MEANS OF ECONOMIC PROGRESS. Feb. 1962. Dec. 1954. 8 pp. 9 pp. UNITED STATES BANKS AND FOREIGN TRADE FI- MONETARY EXPANSION DURING 1961. Feb. 1962. NANCING. Apr. 1955. 11 pp. 7 pp. BANKERS' ACCEPTANCE FINANCING IN THE UNITED INTEREST RATES ON TIME DEPOSITS, Mid-January STATES. May 1955. 13 pp. 1962. Feb. 1962. 5 pp. REVISION OF CONSUMER CREDIT STATISTICS. Oct. CAPITAL FLOWS AND INTERNATIONAL PAYMENTS. 1956. 24 pp. (Also, similar reprint from Apr. Mar. 1962. 8 pp. 1953 BULL.) MONETARY FUND RESOURCES AND THE INTER- SEASONAL FACTORS AFFECTING BANK RESERVES. NATIONAL PAYMENTS SYSTEM. Mar. 1962. 4 pp. Feb. 1958. 12 pp. GROWTH IN INSTITUTIONAL SAVINGS. May 1962. OPEN MARKET OPERATIONS IN LONG-TERM SE- 9 pp. CURITIES. Nov. 1958. 15 pp. *PART I, ALL-BANK STATISTICS, 1896-1955. Re- SURVEY OF COMMON TRUST FUNDS, 1961. May print of the U. S. Summary containing a de- 1962. 7 pp. (Also, similar reprint from May scription of revised statistics for all banks in 1961 BULL.) the United States, by class of bank, together MONETARY POLICY, BANK CREDIT, AND MONEY. with revised statistics. Apr. 1959. 94 pp. July 1962. 8 pp. THE GOVERMENT SECURITIES MARKET. Aug. 1959. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 22 pp. July 1962. 6 pp. CONSUMER BUYING INTENTIONS AND QUARTERLY REVISION OF MONTHLY DEPARTMENT STORE IN- SURVEY OF CONSUMER BUYING INTENTIONS. Combined reprint. Sept. 1960. 31 pp. DEXES. July 1962. 6 pp. IMPLEMENTATION OF THE 1959 ACT ON RESERVE ECONOMIC AND CREDIT CONDITIONS. Aug. 1962. 5 pp. REQUIREMENTS. Dec. 1960. 6 pp. SMALL BUSINESS FINANCING: CORPORATE MANU- REVISION OF MONEY SUPPLY SERIES. Aug. 1962. FACTURERS. Jan. 1961. 15 pp. ii pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1722 FEDERAL RESERVE BULLETIN • DECEMBER 1962 REVISION OF WEEKLY DEPARTMENT STORE SALES FLOW OF FUNDS SEASONALLY ADJUSTED. NOV. INDEX. Aug. 1962. 3 pp. 1962. 15 pp. THE BALANCE SHEET OF AGRICULTURE, 1962. AUTOMATION AT COMMERCIAL BANKS. NOV. 1962. Aug. 1962. 10 pp. 13 pp. INTEREST RATES IN THE CURRENT CYCLE. Sept. 1962. 9 pp. QUARTERLY SURVEY OF CONSUMER BUYING IN- TENTIONS. Nov. 1962. 6 pp. (Also, similar re- INTEREST RATES AND MONETARY POLICY. Sept. prints from BULLS, for Dec. 1960, Mar., May, 1962. 28 pp. Aug., and Nov. 1961, Mar., May, and Aug. TREASURY AND FEDERAL RESERVE FOREIGN EX- 1962.) CHANGE OPERATIONS. Sept. 1962. 16 pp. A SECTORAL ANALYSIS OF VELOCITY. Dec. 1962. U. S. BALANCE OF PAYMENTS IN 1962. Oct. 1962. 14 pp. 8 pp. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. A NEW LOOK AT THE FARM DEBT PICTURE. Dec. 1962. 10 pp. 1962. 18 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 48 GUIDE TO PAGE NUMBERS Month of issue Pages Month of issue Pages Month of issue Pages January . . 1-130 May .... 513-680 September 1101-1258 February 131-270 June . 681-788 October 1259-1384 March . . . 271-388 July . 789-928 November 1385-1548 April 389-512 August .. 929-1100 December 1549-1739 Pages Pages Acceptances, bankers*: Articles—Continued Open market rates 62, 196, 324, 436, 606, Farm debt picture. . . . 1571 724, 864, 1020, 1196, 1322, 1474, 1660 Flow of funds seasonally adjusted. .1393 Volume outstanding 64, 198, 326, 438, 608, Growth in international savings 513 726, 866, 1022, 1198, 1324, 1476, 1662 Industrial production—1957-59 base 1267 Adams, Eugene H., appointed director at Denver Interest-rate ceilings on foreign official de- Branch ... 36 posits, statement of Chairman Martin on. .813 Adams K. S., reelected Class B director at Kan- Interest rates in the current cyde n 01 sas City . . . . .. . \b3\ Interest rates and monetary policy. . . . 1110 Agnew Frank E., Jr., elected Class A director at *^ y . : Jnterest mtes on tf midJanu Cleveland 1630 ^ > ary 1%2 147 , by classes. . . .56, 190, 318, 430, 600, 718, 858, 1014, 1190, 1316, T f Martin on. ^809 ' ' ' 1468 1654 Labor market, stability in. 1385 Weekly reporting member banks. . . .58, 192, 320, Me™s. of economic progress, statement of 432, 602, 720, 860, 1016, 1192, 1318, _ _Chairman Martin on 131 1470, 1656 Member bank income, 1961. . . . 522 Agriculture: ' Monetary expansion during 1961 140 Balance sheet of, 1962. . .965 Monetary Fund resources and the interna- Farm debt picture, article on 1571 tional payments system, statement of Allen, Carl E., resignation as President of Federal Chairman Martin on 279 Reserve Bank of Chicago. . . 37 Monetary policy, bank credit, and money. .789 Allison, James E., reappointed director at Okla- Money supply series, revision of. 941 homa City Branch 31 Recent patterns of demand. , 929 American Telephone and Telegraph Co. stock, Sectoral analysis of velocity. 1557 bank loans to purchase, under employees' stock Stability in prices 1 plan . Treasury and Federal Reserve foreign ex- Anderson, Henry N., reappointed director at change operations 1138 Seattle Branch •••.••.• ^ . • • • 31 U. S. balance of payments in 1962 1259 J u Anderson Robert O., redesignated Chairman and Asbury Park and Ocean Grove Bank, Asbury j Park? N> Order under Bank M Act 83? Federal Reserve Agent at Dallas, and reap- ^d clafms)^8 <*" ^ *"*» ***** AnSn, RosSs i.drpCpomted director^^ie Antal SS Board of Governors, 1961.. . . ' !300 14«I'1*50 36 Articles Commercial banks 56, 190, 318, 430, 600, Automation at commercial banks. . .1408 718, 858, 1014, 1190, 1316, 1468, 1654 Balance sheet of agriculture, 1962 965 Consolidated monetary statement 52, 186, Bank credit, seasonally adjusted series. .797 314, 426, 596, 714, 854, 1009, 1185, Banking legislation, statement of Chairman 1311, 1463, 1649 Martin on 961 Corporate, current . 74, 208, 336, 448, 618, Capital flows and international payments. .271 736, 876, 1032, 1208, 1334, 1486, 1672 Common trust funds, survey of, 1961. .528 Federal business-type activities. . . .245, 487, 904 Construction and mortgage markets. . 1549 Federal Reserve Banks . .48, 182, 310, 422, 592, Consumer buying intentions, quarterly o 850, 1004, 1180, 1306, 1458, 1644 survey . . . 283, 535, 955, 1421 Mutual sav 71 in ? gs banks. . .64, 198, 326, 438, 608, Consumer credit rise. . 681 ?26 866 1022 n 9g 1324 1476 1662 Consumer spending patterns of .389 , Weekl r tin member banks 58> 192? 320 Department store indexes: J ° Revision of monthly indexes. . .803 ^ n 8> 1470' \^ Revision of weekly sales index 952 y Economic and credit conditions, statement of Atkinson, J. H., article on farm debt 1571 Chairman Martin on. .936 Automation at commercial banks, article on. 1408 1723 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1724 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Automobiles: Bank Merger Act—Continued Consumer buying intentions. .283, 535, 955, 1421 Orders issued under—Continued Consumer instalment credit 78-80, 212-14, Connecticut Bank and Trust Company, 340-42, 452-54, 622-24, 740-42, 880-82, Hartford, Conn 1155 1036-38, 1212-14, 1338-40, 1489-91, 1675-77 County Trust Company, White Plains, Production index . . 85, 219, 347, 459, 629, 747, N. Y 1435 887, 1043, 1219, 1345, 1494, 1680 Dauphin Deposit Trust Company, Har- Axilrod, Stephen H., article on interest rates and risburg, Pa . 984 monetary policy .1110 Elyria Savings and Trust Company, Elyria, Ohio 9 Bailey, Walter K., elected Class B director at Farmers and Merchants Bank of Law- Cleveland .1630 renceville, Va 1159 Balance sheet of agriculture, 1962. .965 Farmers and Merchants Bank of Long Bank credit {See also Loans): Beach, Calif . 4 09 Monetary policy, bank credit, and money, Fifth Third Union Trust Company, Cinarticle on 789 cinnati, Ohio 14 Seasonally adjusted series. . . .797, 1013, 1189, First Trust Company of Albany, N. Y.. . 402 1315, 1467, 1653 Gary Trust and Savings Bank, Gary, Bank debits {See Debits to deposit accounts) Ind 1433 Bank holding companies, compilation of Federal Genesee Merchants Bank & Trust Co., and State laws .1428 Flint, Mich 1591 Bank Holding Company Act: Hackensack Trust Company, Hacken- Banking offices and deposits of group banks, sack, N. J 165 Dec. 31, 1961 ... 1075 Hillsboro Bank and Savings Company, List of companies registered pursuant to Sec- Hillsboro, Ohio 825 tion 5, Dec. 31, 1961. 762 Lawrence Savings and Trust Company, Litigation: New Castle, Pa .1158 Liberty Bank and Trust Company, Buf- Northwest Bancorporation, Board's defalo, N. Y .293 nial of application affirmed by U. S. Peoples Bank and Trust Company, Court of Appeals. . .814 Grand Haven, Mich 835 Orders issued under: Peoples Savings and Trust Company, Bank Stock Corporation of Milwaukee. . 400 Hazleton, Pa 694 Brenton Companies, Inc . 1596 Peoples Union Bank and Trust Com- C. B. Investment Corporation.. 298 pany, McKeesport, Pa. 1280 Commercial Associates, Inc 1161 Peru Trust Company, Peru, Ind.. . 408 First Bancorporation of Florida, Inc. . 978 Southern Bank and Trust Company, First Oklahoma Bancorporation, Inc.. .1608 Richmond, Va 824 First Security Corporation 295 Springfield Safe Deposit and Trust Com- First Virginia Corporation. .299, 1163, 1437 pany, Springfield, Mass.. 170 General Bancshares Corporation 557 State Bank of Salem, Ind. 987 Marine Corporation 695, 1283 State-Planters Bank of Commerce and Marine Midland Corporation . 1597 Trusts, Richmond, Va 1156 Montana Shares, Incorporated 1285, Union and New Haven Trust Company, 1288, 1289 New Haven, Conn 1281 Morgan New York State Corporation. 567 Union Trust Company of Maryland, United Virginia Bankshares, Inc.. . . 1620 Baltimore, Md 404, 833, 1432 Virginia Commonwealth Corporation 1442 United California Bank, Los Angeles, Whitney Holding Corporation. .560, 1442 Calif 291, 827, 989 Bank Merger Act: Walker Bank & Trust Company, Salt Orders issued under: Lake City, Utah 1592 Asbury Park and Ocean Grove Bank, Wells Fargo Bank American Trust Asbury Park, N. J 837 Company, San Francisco, Calif. 10 Bank of Idaho, Boise, Idaho 290 Wilmington Trust Company, Wilming- Bank of Wood County Company, Bowl- ton, Del . 830 ing Green, Ohio 822 Windber Bank and Trust Company, Central Trust Company, Rochester, Windber, Pa.. 831 N. Y 1595 Bank mergers: Chase Manhattan Bank, New York, Compilation of Federal and State laws. 1280 N. Y 544 National banks, retention of branches upon Chemical Bank New York Trust Com- conversion or consolidation or merger 1279 pany, New York, N. Y .548 Bank of Idaho, Boise, Idaho, Order under Bank Citizens Bank of Perry, N. Y 990 Merger Act 290 Citizens Central Bank, Arcade, N. Y.. .167 Bank of Wood County Company, Bowling Green, City Trust Company, Bridgeport, Conn . 405 Ohio, Order under Bank Merger Act. . 822 Columbus Junction State Bank, Colum- Bank reserves {See Reserves) bus Junction, Iowa 168 Bank Service Corporation Act 962, 1428 Commerce Union Bank, Nashville, Bank Stock Corporation of Milwaukee, Order un- Tenn. .555 der Bank Holding Company Act. 400 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1725 Pages Pages Bankers' balances {See also Foreign liabilities Board of Governors—Continued and claims): Staff—Continued Commercial banks 57, 191, 319, 431, 601, Hostrup, C. C, retirement as Assistant 719, 859 1015, 1191, 1317, Director, Division of Examinations. .37 1469, 1655 Koch, Albert R., appointed Associate Weekly reporting members banks... 59, 193, Director, Division of Research and 321, 433, 603, 721, 861, 1017, Statistics 1447 1193, 1319, 1471, 1657 Langham, Lee W., appointed Assistant Banking legislation, statement of Chairman Director, Division of Data Process- Martin on .961 ing 1291 Banking and monetary statistics: Schwartz, M. H., appointed Director, For 1961 . . 172, 238, 362, 652 Division of Data Processing 1291 Supplements to.. .38, 300, 993, 1295 Shay, Jerome W., appointed Assistant Banking offices: General Counsel 37 Changes in number 236, 1073 Thomas, Woodlief, retirement as Ad- On, and not on, Par List, number. . . 237, 1074 viser to the Board 699 Banks and branches, number, by class and State .482 Thompson, Andrew N., appointed As- Banks and the monetary system, consolidated sistant Director, Division of Examistatement ...52, 186, 314, 426, 596, 714, 854, nations 37 1009, 1185, 1311, 1463, 1649 Williams, Kenneth B., title changed to Barbey, Graham J., reappointed director at Port- Adviser, Division of Research and land Branch 31 Statistics 37 Barby, Otto C, reappointed director at Oklahoma Wood, Ralph C, appointed Associate City Branch 1627 Adviser, Division of International Fi- Barton, R. E., reappointed director at Omaha nance 37 Branch 36 Bonds {See also U. S. Govt. securities): Bean, Atherton, redesignated Chairman and Fed- Corporate, outstanding, net change in. . . .74, 208, eral Reserve Agent at Minneapolis, and reap- 336, 448, 618, 736, 876, 1032, 1208, pointed Class C director 29, 1625, 1626 1334, 1486, 1672 Beasley, R. S., resignation as director at Los New issues. . . .72, 206, 334, 446, 616, 734, 874, Angeles Branch .37 1030, 1206, 1332, 1484, 1670 Bemis, Judson, reappointed Deputy Chairman at Prices.. . .63, 197, 325, 437, 607, 725, 865, 1021, Minneapolis . 29, 1625 1197, 1323, 1475, 1661 Bevan, David C, appointed Deputy Chairman at State and municipal securities. . . .71, 205, 333, Philadelphia, and reappointed Class C 445, 615, 733, 873, 1029, 1205, director . . 29, 1625, 1626 1331, 1483, 1669 Board of Governors: Yields. .62, 196, 324, 436, 606, 724, 864, 1020, Annual Report, 1961 300 1196, 1322, 1474, 1660 Division of Data Processing, establish- Branch banks: ment of .... 1291 Domestic, number, by class and State. .483 Litigation . .541, 814 Federal Reserve: Members: Buildings, amendments to Sections 10 List, 1913-62 .396 and 3 of Federal Reserve Act. .1154 Martin, Wm. McC, Jr.: Directors {See Directors, Federal Economic and credit conditions, Reserve branch banks) statement on 936 Managing officers 1718 Interest-rate ceilings on foreign offi- Foreign branches of national banks, legiscial deposits, statement on 813 lation 961, 1154 Inventory changes and cyclical National banks, retention of branches upon movements, statement on 809 conversion or consolidation or merger. 1279 Means of economic progress, state- Brawley, Wallace W., appointed director at Charment on 131 lotte Branch .34 Monetary Fund resources and the Brenton Companies, Inc., Order under Bank international payments system, Holding Company Act 1596 statement on 279 Bretton Woods Agreements Act, statement of Proposed banking legislation, state- Chairman Martin on bill to amend 279 ment on 961 Briggs, Robert P., reappointed Class C director Mitchell, George W., reappointment. . . 172 and redesignated Chairman and Federal Re- Members and officers, list . . .1716 serve Agent at Chicago 29, 30, 1625 Publication {See Publications) Brill, Daniel H., appointed Associate Adviser, Di- Regulations {See Regulations) vision of Research and Statistics. . . . 1447 Rules of Organization and Procedure 17, 28 Brokers and dealers in securities, bank loans to: Staff: Brill, Daniel H., appointed Associate Commercial banks.. 56, 190, 318, 430, 600, Adviser, Division of Research and 718, 858, 1014, 1190, 1316, 1468, 1654 Statistics . . . . 1447 Weekly reporting member banks 58, 192, Cardon, Robert L., appointed Legis- 320, 432, 602, 720, 860, 1016, 1192, lative Counsel. .37 1318, 1470, 1656 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1726 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Buildings of Federal Reserve branch banks, Check clearing and collection: amendments to Sections 10 and 3 of Federal Nonmember clearing accounts with Federal Reserve Act 1154 Reserve Banks, amendment of Section Burghart, R. A., reappointed director at Denver 210.2(a) of Regulation J 1277 Branch 1627 Chemical Bank New York Trust Company, Order Business conditions, national summary.... 39, 173, under Bank Merger Act 548 301, 413, 583, 700, 841, 994, 1170, 1296, Citizens Bank of Perry, N. Y., Order under Bank 1448, 1633 Merger Act 990 Business expenditures on new plant and equip- Citizens Central Bank, Arcade, N. Y., Order unment...^, 208, 336, 448, 618, 736, 876, 1032, der Bank Merger Act 167 1208, 1334, 1486, 1672 City Trust Company, Bridgeport, Conn., Order Business indexes. . . .88, 222, 350, 462, 632, 750, 890, under Bank Merger Act 405 1046, 1222, 1348, 1498, 1684 Coin, circulation of. . . .50, 184, 312, 424, 594, 712, Business loans (See Commercial and industrial 852, 1007, 1183, 1309, 1461, 1647 loans) Columbus Junction State Bank, Columbus Junc- Byrom, F. L., appointed director at Pittsburgh tion, Iowa, Order under Bank Merger Act. . .168 Branch 30, 1626 Commerce Union Bank, Nashville, Tenn., Order C. B. Invstment Corporation, Order under Bank under Bank Merger Act 555 Holding Company Act .298 Commercial Associates, Inc., Pensacola, Fla., Order under Bank Holding Company Act 1161 Cagle, Caroline H., article on interest rates on Commercial banks: time deposits, mid-January 1962 147 Assets and liabilities. .. .53-57, 187-91, 315-19, Campbell, Donald B., appointed director at Hous- 427-31, 597-601, 715-19, 855-59, 1010-15, ton Branch.... 1627 1186-91, 1312-17, 1464-69, 1650-55 Canham, Erwin D.: Automation at commercial banks 1408 Designated Chairman and Federal Reserve Banking offices, changes in number. .236, 1073 Agent at Boston 1625 Branches, number, by State 483 Reappointed Class C director and Deputy Consumer loans held 79, 213, 341, 453, 623, Chairman at Boston 29, 30 741, 881, 1037, 1213, 1339, 1491, 1677 Cannon, Robert J., reappointed director at Los Deposits. .. .51, 185, 313, 425, 595, 713, 853, Angeles Branch. . ..31 1008, 1184, 1310, 1462, 1648 Capital accounts: Income and expenses 903 Banks, by classes. .. .53, 187, 315, 427, 597, 715, Loans and investments. 797, 800, 1013. 1189, 855, 1010, 1186, 1312, 1464, 1650 1315, 1467, 1653 Number, by class and State 482 Commercial banks.... 57, 191, 319, 431, 601, Real estate mortgages held .75, 209, 337, 449, 719, 859, 1015, 1191, 1317, 1469, 1655 619, 737, 877, 1033, 1209, 1335, 1487, 1673 Federal Reserve Banks. . . .48, 182, 310, 422, 592, U. S. Govt. security holdings 68, 202, 330, 710, 850, 1004, 1180, 1306, 1458, 1644 442, 612, 730, 870, 1026, 1202, Weekly reporting member banks.... 60, 194, 1328, 1480, 1666 322, 434, 604, 722, 862, 1018, 1194, Commercial and industrial loans: 1320, 1472, 1658 Commercial banks 56, 190, 318, 430, 600, Capital flows and international payments, 718, 858, 1014, 1190, 1316, 1468, 1654 article on 271 Weekly reporting member banks: Cardon, Robert L., appointed Legislative Counsel Sample. 61, 195, 323, 435, 605, 723, 863, of Board of Governors 37 1019, 1195, 1321, 1473, 1659 Carloadings. .88, 222, 350, 462, 632, 750, 890, Total, leading cities 58, 192, 320, 432, 1046, 1222, 1348, 1498, 1684 602,720, 860, 1016, 1192, 1318, Carter, James R., elected Class B director at 1470, 1656 Boston . . . . 1632 Commercial paper: Castling, Leon C, appointed director at Memphis Rates 62, 196, 324, 436, 606, 724, 864. Branch 35 1020, 1196, 1322, 1474, 1660 Central banks, foreign: Volume outstanding 64, 198, 326, 438, 608, Discount rates 122, 262, 380, 504, 672, 778, 726, 866, 1022, 1198, 1324, 1476, 1662 920, 1092, 1250, 1376, 1540, 1714 Common trust funds: Gold reserves 108, 248, 366, 490, 658, 764, Legislation .... 1277 906, 1078, 1236, 1362, 1526, 1700 Survey of, 1961 .528 Central reserve city classification, termination Condition statements (See Assets and liabilities) of 975, 993 Connecticut Bank and Trust Company, Hartford, Central Trust Company, Rochester, N. Y., Order Conn., Order under Bank Merger Act. 1155 under Bank Merger Act ... 1595 Construction: Chairmen of Federal Reserve Banks (See Article on construction and mortgage Directors, Federal Reserve Banks) markets 1549 Chalkley, Henry G., Jr., reappointed Deputy Contracts awarded 88, 222, 350, 462, 632, Chairman at Atlanta . . . .29, 1625 750, 890, 1046, 1222, 1348, 1498, 1684 Chase Manhattan Bank, Order under Bank New housing starts 89, 223, 351, 463, 633, Merger Act. . 544 751, 891, 1047, 1223, 1349, 1499, 1685 Cheatham, J. M., reappointed Class C director at Value of new activity 89, 223, 351, 463, 633, Atlanta 1626 751, 891, 1047, 1223, 1349, 1499, 1685 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1727 Pages Pages Construction and real estate loans by national Currency—Continued banks, amendments to Section 24 of Federal Money supply and related data. . . .51, 185, 313, Reserve Act .963,1278 425, 595, 713, 853, 1008, 1184, Consumer buying intentions: 1310, 1462, 1648 Quarterly survey. .283, 535, 955, 1421 Outstanding and in circulation. . . .50, 184, 312, Consumer credit: 424, 594, 712, 852, 1007, 1183, Article on consumer credit rise. .681 1309, 1461, 1647 Instalment credit: Cushwa, David K., Jr., elected Class A director Extensions and repayments. .80, 214, 342, at Richmond 1630 454, 624, 742, 882, 1038, 1214, 1340, Customer credit, stock market: 1492, 1678 Monthly data 63, 197, 325, 437, 607, 725, Outstanding, by holder 78, 212, 340, 452, 865, 1021, 1197, 1323, 1475, 1661 622, 740, 880, 1036, 1212, 1338, Stock Exchange firms, June 1955-62. . 1234 1490, 1676 Dauphin Deposit Trust Company, Harrisburg, Major parts 78, 212, 340, 452, 622, 740, 880, Pa., Order under Bank Merger Act 984 1036, 1212, 1338, 1490, 1676 Davis, Morgan J., appointed Deputy Chairman Noninstalment credit, by holder 79, 213, 341, at Dallas . . 1625 453, 623, 741, 881, 1037, 1213, 1339, Debits to deposit accounts 51, 185, 313, 425, 595, 1491, 1677 713, 853, 1006, 1182, 1308, 1460, 1646 Revision of statistics .1632 Decker, Alonzo G., Jr., redesignated Chairman Consumer goods: and Federal Reserve Agent at Richmond. . .29 Production index. . . .85, 219, 347, 459, 629, 747, Defense Production Act, extension of. . . .975 887, 1043, 1219, 1345, 1494, 1680 Demand deposits: Consumer price indexes 94, 228, 356, 468, 638, Adjusted, banks and the monetary system. . 52, 756, 896, 1052, 1228, 1354, 1504, 1690 186, 314, 426, 596, 714, 854, 1009, 1185, Consumer spending, patterns of, article on 389 1311, 1463, 1649 Consumption expenditures. . .96, 230, 358, 470, 640, Adjusted, commercial banks, by classes. .57, 191, 758, 898, 1054, 1230, 1356, 1506, 1692 319, 431, 601, 719, 859, 1015, 1191, Continental Bank and Trust Company, Salt Lake 1317, 1469, 1655 City, Utah: Banks, by classes. . . .53, 187, 315, 427, 597, 715, Litigation 541 855, 1010, 1186, 1312, 1464, 1650 Termination of administrative proceeding. . 1430 Member banks 47, 181, 309, 421, 591, 709, Coombs, Charles A., report on Treasury and Fed- 849, 1003, 1179, 1305, 1457, 1643 eral Reserve foreign exchange operations. . . .1138 Money supply and related data. . . .51, 185, 313, Corbett, Roger B., reappointed director at El Paso 425, 595, 713, 853, 1008, 1184, 1310, Branch . . 1627 1462, 1648 Corporate sales, profits, taxes, and dividends. . .73-74, Turnover of. .51, 185, 313, 425, 595, 713, 853, 1006, 1182, 1308, 1460, 1646 207-08, 335-36, 447-48, 617-18, 735-36, Weekly reporting member banks. .60, 194, 322, 875-76, 1031-32, 1207-08, 1333-34, 434, 604, 722, 862, 1018, 1194, 1320, 1485-86, 1671-72 1472, 1658 Corporate securities: Department store statistics: New issues. 72, 206, 334, 446, 616, 734, 874, Merchandising data 93, 227, 355, 467, 637, 1030, 1206, 1332, 1484, 1670 755, 895, 1051, 1227, 1353, 1503, 1689 Outstanding, net change in. . . .74, 208, 336, 448, Monthly indexes, revision of 803 618, 736, 876, 1032, 1208, 1334, 1486, 1672 Sales and stocks. . .92, 226, 354, 466, 636, 754, Prices 63, 197, 325, 437, 607, 725, 865, 894, 1050, 1226, 1352, 1502, 1688 1021, 1197, 1323, 1475, 1661 Weekly sales index, revision of 952 Purchases by foreigners 119, 259, 377, 501, Deposits {See also specific types of deposits): 669, 775, 917, 1089, 1247, 1373, 1537, 1711 Adjusted, and currency 52, 186, 314, 426, Yields. .62, 196, 324, 436, 606, 724, 864, 596,714, 854, 1009, 1185, 1311, 1463, 1649 1020, 1196, 1322, 1474, 1660 Banks, by classes. . . .53, 187, 315, 427, 597, 715, Corrin, E. Wayne, appointed director at 855, 1010, 1186, 1312, 1464, 1650 Baltimore Branch . . . 1626 Commercial banks: Cost of living {See Consumer price indexes) By classes . 57, 191, 431, 601, 719, 859, County Trust Company, White Plains, N. Y., 1015, 1191, 1317, 1469, 1655 Order under Bank Merger Act. . ... 1435 Money supply and related data. .. .51, 185, Cowan, J. C, Jr., reappointed director at Char- 313, 425, 595, 713, 853, 1008, 1184, lotte Branch 1626 1310, 1462, 1648 Credit and economic conditions, statement Definition of savings deposits 7 of Chairman Martin on 936 Federal Reserve Banks: Crewe, Leonard C, Jr., appointed director Condition statement 48, 182, 310, 422, at Baltimore Branch . . . . .30 592, 710, 850, 1004, 1180, 1306, Currency {See also specific types of currency): 1458, 1644 Consolidated monetary statement 52, 186, Held for foreign correspondents. . .119, 259, 314, 426, 596, 714, 854, 1009, 1185, 377, 501, 669, 775, 917, 1089, 1247, 1311, 1463, 1649 1373, 1537, 1711 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1728 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Deposits—Continued Eckert, James B., article on automation Foreign time deposits, interest on (See For- at commercial banks . 1408 eign time deposits) Economic conditions: Maximum permissible rates, time and sav- Economic and credit conditions, statement of ings deposits . . .46, 180, 308, 420, 590, 708. Chairman Martin on .936 848, 1003, 1179, 1305, 1457, 1643 Recent patterns of demand, article on 929 Member banks. .47, 181, 309, 421, 591, 709, Economic progress, means of, statement of Chair- 849, 1003, 1179, 1305, 1457, 1643 man Martin on 131 Mutual savings banks 64, 198, 326, 438, 608, Elkins, Wilson H., appointed Class C director at 726, 866, 1022, 1198, 1324, 1476, 1662 Richmond 1626 Elyria Savings and Trust Company, Elyria, Ohio, Postal savings (See Postal Savings System) Order under Bank Merger Act 9 Time and savings (See Time deposits) Emmart, Harvey E., reappointed director at Balti- Turnover of (See Demand deposits) more Branch 34 Weekly reporting member banks. ... 60, 194, 322, Emmerich, J. O., reappointed director at New Or- 434, 604, 722, 862, 1018, 1194, leans Branch ..1626 1320, 1472, 1658 Employment: Deputy Chairmen of Federal Reserve Banks Labor force. .90, 224, 352, 464, 634, 752, 892, (See Directors, Federal Reserve Banks) 1048, 1224, 1350, 1500, 1686 Directors, Federal Reserve Banks: Manufacturing production worker 91, 225, Chairmen and Federal Reserve Agents 29, 353, 465, 635, 753, 893, 1049, 1225, 1625, 1717 1351, 1501, 1687 Class A and Class B, elections ... 1629, 1632 Nonagricultural 90, 224, 352, 464, 634, 752, Class C, appointments. .30, 412, 1626 892, 1048, 1224, 1350, 1500, 1686 Death 993 Stability in the labor market, article on. 1385 Deputy Chairmen 29, 412, 1625, 1717 Enders, Ostrom, elected Class A director at List 152 Boston 1629 Directors, Federal Reserve branch banks: Executive officers of member banks, loans to: Appointments. .30, 34, 172, 699, 993, 1447, 1626 Executive officer status arising from authority to sign documents, interpretation. .289 List 152 Exports (See Foreign trade) Resignations and death. .37, 582, 840, 1291 Discount rates: Fagan, Harry, appointed director at Jacksonville Federal Reserve Banks. . .46, 180, 308, 420, 590, Branch ... 35 708, 848, 1002, 1178, 1304, 1456, 1642 Farm debt picture, article on. .1571 Foreign central banks. . . 122, 262, 380, 504, 672, Farm mortgage loans: 778, 920, 1092, 1250, 1376, 1540, 1714 Bank holdings 75, 209, 337, 449, 619, 737, Discounts and advances by Federal Reserve Banks: 877, 1033, 1209, 1335, 1487, 1673 Condition statement data 48, 182, 310, 422, Life insurance company holdings. . .76, 210, 338, 592, 710, 850, 1004, 1180, 1306, 1458, 1644 450, 620, 738, 878, 1034, 1210, 1336, Farmers Home Administration insured notes 1488, 1674 as collateral for advances 690 Farmers Home Administration insured notes as Maturity distribution 47, 181, 309, 421, 591, collateral for advances by Federal Reserve 709, 849, 1006, 1182, 1308, 1460, 1646 Banks 690 Weekly and monthly data .42, 176, 304, 416, Farmers and Merchants Bank of Lawrenceville, 586, 704, 844, 998, 1174, 1300, 1452, 1638 Va., Order under Bank Merger Act 1159 Dividends: Farmers and Merchants Bank of Long Beach, Corporate. .73, 207, 335, 447, 617, 735, 875, Calif., Order under Bank Merger Act. . .409 1031, 1207, 1333, 1485, 1671 Federal Advisory Council 1717 Federal Reserve Banks 38, 234 Federal business-type activities, selected assets Insured commercial banks 903 and liabilities. ... 245, 487, 904 Member banks. ... .523, 525, 644, 902 Federal finance: Division of Data Processing, establishment of. .1291 Cash transactions . 66, 200, 328, 440, 610, 728, Dollar assets, foreign: 868, 1024, 1200, 1326, 1478, 1664 Foreign countries and international Receipts and expenditures. . . 67, 201, 329, 364, institutions 111,251,369,493,661,767, 441, 611, 656, 729, 869, 1025, 1201, 909, 1081, 1239, 1365, 1529, 1703 1327, 1479, 1665 Held at Federal Reserve Banks 119, 259, 377, Treasurer's balance 66, 200, 328, 440, 610, 501,669,775,917, 1089. 1247, 728, 868, 1024, 1200, 1326, 1478, 1664 1373, 1537, 1711 Federal home loan banks: Assets and liabilities 245, 487, 904 Earnings and expenses: Lending activity. 77, 211, 339, 451, 621, 739, Federal Reserve Banks.. . .37, 234 879, 1035, 1211, 1337, 1489, 1675 Insured commercial banks. 903 Federal Housing Administration: Member banks .522,644,902 Assets and liabilities 245, 487. 904 Earnings and hours, manufacturing Loans insured by 75-77, 209-11, 337-39, industries. . .91, 225, 353, 465, 635, 753, 893, 449-51, 619-21, 737-39, 877-79, 1033-35, 1049, 1225, 1351, 1501, 1687 1209-11, 1335-37, 1487-89, 1673-75 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1729 Pages Pages Federal National Mortgage Association: Federal Reserve credit: Assets and liabilities 245, 487, 904 Condition statement data 48, 182, 310, 422, Lending activity. . . .77, 211, 339, 451, 621, 739, 592, 710, 850, 1004, 1180, 1306, 1458, 1644 879, 1035, 1211, 1337, 1489, 1675 Maturity distribution. . . .47, 181, 309, 421, 591, Federal Open Market Committee: 709. 849, 1006, 1182, 1308, 1460, 1646 Foreign exchange operations: Weekly and monthly data. . . .42, 176, 304, 416, Regulation N, amendment to. . .289 586, 704, 844, 998, 1174, 1300, 1452, 1638 Report on 1138 Federal Reserve notes: Manager of System Account, selection of Federal Reserve Agents' accounts 48, 182, Mr. Stone to succeed Mr. Rouse 699 310, 422, 592, 710, 850, 1004, 1180, 1306, Members and staff 1717 1458, 1644 Rules of Organization and Procedure. . .691 Interest paid to Treasury 38, 234 Federal Reserve Act: Outstanding and in circulation. . .50, 184, 312, Sections 10 and 3, amendments with respect 424, 594, 712, 852, 1007, 1183, 1309, to Federal Reserve branch bank buildings 1154 1461, 1647 Section ll(k), with respect to trust powers Federal Reserve System: of national banks, repeal of 1277 Admissions of State banks to membership. . . 172, Section 14(b), authority of Federal Reserve 412, 840, 993, 1295, 1447 Banks to purchase Govt. obligations di- Federal Reserve and Treasury foreign exchange rectly from the U. S., extension of 975 operations, report on 1138 Section 19, amendment with respect to inter- Ferguson, Whitworth, reappointed director at est on foreign time deposits, and interpre- Buffalo Branch 30 tations 813, 1279, 1427, 1589 Fifth Third Union Trust Company, Cincinnati, Section 24, amendment with respect to real Ohio, Order under Bank Merger Act. .14 estate and construction loans by national Finance company paper: banks 963, 1278 Rates. 62, 196, 324, 436, 606, 724, 864, 1020, Section 25, amendment with respect to for- 1196, 1322, 1474, 1660 eign branches of national banks 961, 1154 Volume outstanding.... 64, 198, 326, 438, 608, Federal Reserve Agents. .29, 1625, 1717 726, 866, 1022, 1198, 1324, 1476, 1662 Federal Reserve Banks: Financial institutions, loans to: Accounts with foreign banks, amendment to Commercial banks 56, 190, 318, 430, 600, Regulation N 289 718, 858, 1014, 1190, 1316, 1468, 1654 Branches (See Branch banks) Weekly reporting member banks. ... 58, 192, 320, Chairmen and Deputy Chairmen (See 432, 602, 720, 860, 1016, 1192, 1318, Directors, Federal Reserve Banks) 1470, 1656 Condition statement 48, 182, 310, 422, 592, First Bancorporation of Florida, Inc., Order un- 710, 850, 1004, 1180, 1306, 1458, 1644 der Bank Holding Company Act . 978 Directors (See Directors) First Oklahoma Bancorporation, Inc., Order un- Discount rates 46, 180, 308, 420, 590, 708, der Bank Holding Company Act 1608 848, 1002, 1178, 1304, 1456, 1642 First Security Corporation, Order under Bank Earnings and expenses. ... 37, 234 Holding Company Act .295 Officers 1718 First Trust Company of Albany, N. Y., Order un- Presidents and First Vice Presidents: der Bank Merger Act 402 Allen, Carl E., resignation as President First Vice Presidents of Federal Reserve Banks at Chicago ... 37 (See Federal Reserve Banks) Coldwell, Philip E., appointed First Vice First Virginia Corporation, Orders under Bank President at Dallas 1291 Holding Company Act 299, 1163, 1437 Helmer, Hugh J., appointed First Vice Flechsig, Theodore G., articles on survey of con- President at Chicago 412 sumer buying intentions. ...... .283, 535, 1421 Johns, Delos C, resignation as President Fleming, Lamar, Jr., reappointed Class C director at St. Louis. . 300 and Deputy Chairman at Dallas 29, 30 List 1718 Float. .42, 176, 304, 416, 586, 704, 844, 998, 1174, Scanlon, Charles J., appointed President 1300, 1452, 1638 at Chicago ... 37 Flow of funds: Shuford, Harry A., appointed President Financial assets and liabilities 1065 at St. Louis .1291 Saving and financial flows. .98, 232, 360, 472, U. S. Govt. security holdings: 642, 760, 900, 1056, 1232, 1358, 1508, 1694 Authority to purchase Govt. obligations Seasonally adjusted, article on 1393 directly from the U. S., extension of 975 Foreign branches of national banks, legisla- Condition statement data. ... 48, 182, 310, tion 961, 1154 422, 592, 710, 850, 1004, 1180, 1306,Foreign central banks: 1458, 1644 Discount rates. . . 122. 262, 380, 504, 672, 778, Maturity distribution, 47, 181, 309, 421, 591, 920, 1092, 1250, 1376, 1540, 1714 709, 849, 1006, 1182, 1308, 1460, 1646 Gold reserves. . . .108, 248, 366, 490, 658, 764, Ownership data 68, 202, 330, 442, 612, 906, 1078, 1236, 1362, 1526, 1700 730, 870, 1026, 1202, 1328, 1480, 1666 Interest on time deposits of (See Foreign Weekly and monthly data .42. 176, 304, time deposits) 416, 586, 704, 844, 998, 1174, 1300. Foreign currency operations (See Foreign ex- 1452, 1638 change operations) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1730 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Foreign deposits in U. S. banks: Gary Trust and Savings Bank, Gary Ind., Order Bank for International Settlements, interpre- under Bank Merger Act 1433 tation with respect to interest on time de- General Bancshares Corporation, Order under posits of 1427 Bank Holding Company Act 557 Banks and the monetary system. . . .52, 186, 314, Genesee Merchants Bank & Trust Co., Flint, 426, 596, 714, 854, 1009, 1185, 1311, Mich., Order under Bank Merger Act. ... 1591 1463, 1649 Gerstacker, Carl A., resignation as director at Commercial banks, by classes. . . .57, 191, 319, Detroit Branch 1291 431, 601, 719, 859, 1015, 1191, 1317, Giddens, Kenneth R., appointed director at New 1469, 1655 Orleans Branch. .... 31 Federal Reserve Banks: Gold: Condition statement 48, 182, 310, 422, Earmarked. 110, 250, 368, 492, 660, 766, 908, 592, 710, 850, 1004, 1180, 1306, 1080, 1238, 1364, 1528, 1702 1458, 1644 Net purchases by U. S 110, 250, 368, 492, Held for foreign correspondents. . 119, 259, 660, 766, 908, 1080, 1238, 1364, 377, 501, 669, 775, 917, 1089, 1247, 1528, 1702 1373, 1537, 1711 Outstanding, U. S. money 50, 184, 312, 424, Weekly and monthly data. . . .42, 176, 304, 594, 712, 852, 1007, 1183, 1309, 416, 586, 704, 844, 998, 1174, 1300, 1461, 1647 1452, 1638 Production 109, 249, 367, 491, 659, 765, 907, Interest on foreign time deposits {See For- 1079, 1237, 1363, 1527, 1701 eign time deposits) Reserves of central banks and governments. .108, Weekly reporting member banks. .60, 194, 322, 434, 604, 722, 862, 1018, 1194, 248, 366, 490, 658, 764, 907, 1078, 1320, 1472, 1658 1236, 1362, 1526, 1700 Foreign exchange operations: Reserves of foreign countries and interna- Currencies held by Federal Reserve Banks 300, national institutions Ill, 251, 369, 493, 310, 422, 592, 710, 850, 1004, 1180, 1182, 661, 767, 909, 1081, 1239, 1365, 1306, 1308, 1458, 1460, 1644 1646 1529, 1703 Stock: Currencies held by U. S. monetary authori- Changes in 110, 250, 368, 492, 660, 766, ties 110, 250, 368, 492, 660, 766, 908, 1080, 1238, 1364, 1528, 1702 908, 1080, 1238, 1364, Regulation N, amendment to 289 1528, 1702 Statement of Chairman Martin on. . . 279 Consolidated monetary statement 52, 186, Treasury and Federal Reserve operations, 314, 426, 596, 714, 854, 1009, 1185, report on 1138 1311, 1463, 1649 Foreign exchange rates. . . .123, 263, 381, 505, 673, Weekly and monthly data 42, 176, 304, 779, 921, 1093, 1251, 1377, 1541, 1600 416, 586, 704, 844, 998, 1174, 1300, Foreign liabilities and claims: 1452, 1638 Banks .112, 252, 370, 494, 662, 768, 910, Gold certificates: 1082, 1240, 1366, 1530, 1704 Collateral against Federal Reserves notes .48, Nonfinancial concerns 120, 260, 378, 502, 182, 310, 422,592, 710, 850, 1004, 670, 776, 918, 1090, 1248, 1374, 1538, 1180, 1306, 1458, 1644 1712 Outstanding and in circulation. .50, 184, 312, Foreign time deposits, interest on: 424, 594, 712, 852, 1007, 1183, Bank for International Settlements, interpre- 1309, 1461, 1647 tation 1427 Gottlieb, Lewis, appointed director at New Federal Reserve Act and Regulation Q, Orleans Branch 35 amendment and interpretations. .813, 1279, Gottshall, Ralph K., elected Class B director at 1427, 1589 Philadelphia 1630 Foreign central bank deposits transferred to Govt. debt {See U. S. Govt. securities) other persons or organizations, interpre- Govt. securities {See U. S. Govt. securities) tation 1589 Green, Joshua, Jr., reappointed director at Statement of Chairman Martin on H.R. Seattle Branch ... .36 12080 813 Grier, William H., appointed Deputy Chairman Foreign trade: at Richmond. . . 1625 Merchandise exports and imports 93, 227, Grieves, James B., appointed director at Pitts- 355, 467, 637, 755, 895, 1051, 1227, burgh Branch. . . 34 1353, 1503, 1689 Gross national product 96, 230, 358, 470, 640, Forman, Maurice R., appointed director at Buf- 758, 898, 1054, 1230, 1356, 1506, 1692 falo Branch 1626 Growth in international savings, article on. .513 Fredericks, John D., appointed Deputy Chairman at San Francisco 412, 1625 Hackensack Trust Company, Hackensack, N. J., Freight carloadings {See Carloadings) Order under Bank Merger Act 165 Halgren, S. Alfred, reappointed director at Los Galusha, Hugh D., Jr., elected Class B director Angeles Branch 1627 at Minneapolis 1631 Hall, Joseph B., appointed Class C director and Galvin, John M., appointed director at Buffalo designated Chairman and Federal Reserve Branch 699 Agent at Cleveland 29, 30, 1625 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1731 Pages Pages Hanley, William A., reelected Class B director at Insurance companies—Continued Chicago . . 1631 U. S. Govt. security holdings 68, 202, 330, Hannan, Kenneth H., reelected Class B director 442, 612, 730, 870, 1026, 1202, 1328, at New York . 1630 1480, 1666 Hardin, Clifford Morris, reappointed director at Insured commercial banks: Omaha Branch 1627 Assets and liabilities 55-57, 189-91, 317-19, Harrington, Harry F., elected Class A director at 429-31, 599-601, 717-19, 857-59, 1012-15, St. Louis .1631 1188-91, 1314,-17, 1466-69, 1652-55 Harris, John T., appointed director at Omaha Banking offices, changes in number. . . .236, 1073 Branch 31 Branches, number, by State.... . 483 Heavenrich, Max P., Jr., appointed director at Income and expenses 903 Detroit Branch 1447 Number, by State. . . . .482 Helmer, Hugh J., appointed First Vice President Interbank deposits: of Federal Reserve Bank of Chicago 412 Banks, by classes 53, 187, 315, 427, 597, 715, Herndon, Harold D. appointed director at San 855, 1010, 1186, 1312, 1464, 1650 Antonio Branch 31 Commercial banks. . 57, 191, 319, 431, 601, 719, Hill, G. Carlton, appointed director at Cincinnati 859, 1015, 1191, 1317, 1469, 1655 Branch 34 Member banks 47, 181, 309, 421, 591, 709, Hiller, Oscar, reappointed director at Salt Lake 849, 1003, 1179, 1305, 1457, 1643 City Branch 36 Interest on deposits: Hillsboro Bank and Savings Company, Hillsboro, Bank for International Settlements, interpre- Ohio, Order under Bank Merger Act . 825 tation with respect to interest on time Hilton, James H., reappointed Deputy Chairman deposits of ... 1427 and Class C director at Chicago. .29, 1625, 1626 Conversion of six-months time certificate of Hirschler, Frederic S., appointed Class C director deposit into twelve-months certificate 8 at San Francisco 412 Definition of savings deposits 7 Hitt, Travis, appointed director at Nashville Foreign time deposits, amendment of Federal Branch ... .35 Reserve Act and Regulation Q, and inter- Hoadley, Walter E., designated Chairman and pretations 813, 1279, 1427, 1589 Federal Reserve Agent at Philadelphia. .29, 1625 Interest rates on time deposits, mid-January Holcomb, Dysart E., reappointed director at El 1962, article on 147 Paso Branch 31 Rate of interest on interest compounded Holt, Andrew D., reappointed director at Nash- quarterly at maximum rate 398 ville Branch . 1626 Savings deposit created from matured time Hostrup, C. C, retirement as Assistant Director, certificate, rate of interest on 398 Division of Examinations 37 Time and savings deposits, maximum per- Hours and earnings, manufacturing industries . 91, missible rates 46, 180, 308, 420, 590, 708, 225, 353, 465, 635, 753, 893, 1049, 1225, 848, 1003, 1179, 1305, 1457, 1643 1351, 1501, 1687 Interest rates: Housing: Article on interest rates in the current cycle. 1101 Construction and mortgage markets, Bond yields. .62, 196, 324, 436, 606, 724, 864, article on . 1549 1020, 1196, 1322, 1474, 1660 New housing starts 89, 223, 351, 463, 633, Business loans by banks 61, 195, 323, 435, 751, 891, 1047, 1223, 1349, 1499, 1685 605, 723, 863, 1019, 1195, 1321, 1473, 1659 Hubbard, M. Vilas, reelected Class A director at Discount rates, Federal Reserve Banks. 46, 180, San Francisco 1631 Hudgins, Edgar H., appointed director at Houston 308, 420, 590, 708, 848, 1002, 1178, 1304, Branch .. 31 1456, 1642 Hyde, Edwin: Foreign countries: Designated Chairman and Federal Reserve Discount rates 122, 262, 380, 504, 672, Agent at Richmond 1625 778, 920, 1092, 1250, 1376, 1540, 1714 Reappointed Class C director and Deputy Open market rates 121, 261, 379, 503, Chairman at Richmond .29, 30 671, 777, 919, 1091, 1249, 1375, 1539, 1713 Imports (See Foreign trade) Foreign time deposits, amendment of Fed- Income and expenses: eral Reserve Act and Regulation Q, and Insured commercial banks. 903 interpretations 813, 1279, 1427, 1589 Member banks... . 522, 644, 902 Monetary policy and interest rates, Industrial production index. . . .82, 216, 344, 456, 626, article on 1110 744, 884, 1040, 1216, 1342, 1494, 1680 Open market rates, domestic 62, 196, 324, Industrial Production—1957-59 Base 1267, 1295 436, 606, 724, 864, 1020, 1196, 1322, Instalment loans 78-81, 212-15, 340-43, 452-55, 1474, 1660 622-25, 740-43, 880-83, 1036-39, 1212-15 Savings account, rate of interest on interest 1338-41, 1490-93, 1676-79 compounded quarterly at maximum rate. .398 Insurance companies: Savings deposit created from matured time Mortgage activity 76, 210, 338, 450, 620, certificate, rate of interest on. . .398 738, 878,1034, 1210, 1336, 1488, 1674 Stock yields. 62, 196, 324, 436, 606, 724, 864, Principal assets 65, 199, 327, 439, 609, 727, 1020, 1196, 1322, 1474, 1660 867 1023, 1199, 1325, 1477. 1663 Time deposits, mid-January 1962, article on 147 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1732 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Interest rates—Continued Johnson, V. S., Jr., reappointed director at Nash- Time and savings deposits, maximum permis- ville Branch 31 sible rates. . . .46, 180, 308, 420, 590, 708, 848, Johnston, Logan T., appointed Class C director 1003, 1179, 1305, 1457, 1643 and Deputy Chairman at Cleveland. . . . 1625, 1626 Interlocking directorates: Jorgenson, O. M., reappointed director at Helena Securities companies, with member banks: Branch . .35 Special or limited partner of securities company serving bank 975 Kimbrel, M. M., reelected Class A director at International capital transactions of the U. S 112, Atlanta 1630 252, 370, 494, 662, 768, 910, 1082, 1240, Koch, Albert R., appointed Associate Director, 1366, 1530, 1704 Division of Research and Statistics 1447 International institutions: Kosman, Henry D., appointed director at Omaha Gold purchases ... 110, 250, 368, 492, 660, 766, Branch .36 908, 1080, 1238, 1364, 1528, 1702 Gold reserves 108, 248, 366, 490, 658, 764, Labor force. .90, 224, 352, 464, 634, 752, 892, 906, 1078, 1236, 1362, 1526, 1700 1048, 1224, 1350, 1500, 1686 Gold reserves and dollar holdings Ill, 251, Labor market, article on stability in 1385 369, 493, 661, 767, 909, 1081, 1239, 1365, Lane, J. T., appointed director at Jacksonville 1529, 1703 Branch 35 International payments and capital flows, Langham, Lee W., appointed Assistant Director, article on . 271 Division of Data Processing 1291 International payments system and Monetary Lawrence Savings and Trust Company, New Fund resources, statement of Chairman Martin Castle, Pa., Order under Bank Merger Act. 1158 on 279 Legislation: International savings, article on. .513 Authority of Federal Reserve Banks to pur- Interpretations: chase Govt. obligations directly from the Farmers Home Administration insured notes U. S., extension of 975 as collateral for advances 690 Bank holding companies, compilation of Interest on time deposits of Bank for Inter- Federal and State laws 1428 national Settlements 1427 Bank mergers, compilation of Federal and Interest rate on time deposits of foreign cen- State laws 1280 tral banks transferred to other persons or Bank reserves, compilation of State laws. . . 814 organizations 1589 Bank Service Corporation Act 962, 1428 Interlocking directorates (See Interlocking Branches of national banks, retention upon directorates) conversion or consolidation or merger. . 1279 Published interpretations of the Board. . . .300 Bretton Woods Agreements Act, statement Regulations, Board of Governors (See Regu- of Chairman Martin on H.R. 10162 to lations, Board of Governors) amend 279 Inventories. . . .96, 230, 358, 470, 640, 758, 898, 1054, Defense Production Act, extension of. . . .975 1230, 1356, 1506, 1692 Federal Reserve branch bank buildings 1154 Inventory changes and cyclical movements, state- Foreign branches of national banks. . . .961, 1154 ment by Chairman Martin on.... . 809 Interest on foreign time deposits. . .813, 1279, Investments (See also specific types of 1427, 1589 investments): International Monetary Fund, statement of Banks, by classes. . . .53, 187, 315, 427, 597, 715, Chairman Martin on H.R. 10162 279 855, 1010, 1186, 1312, 1464, 1650 Proposed banking legislation, statement of Commercial banks. .797, 800, 1013, 1189, Chairman Martin on 961 1315, 1467, 1653 Real estate and construction loans by na- Commercial banks, by classes 56, 190, 318, tional banks, amendments to Section 24 of 430, 600, 718, 858, 1014, 1190, 1316, Federal Reserve Act 963, 1278 1468, 1654 Trust powers of national banks, transfer of Federal Reserve Banks 48, 182, 310, 422, authority to Comptroller of the Currency. 1277 592, 710, 850, 1004, 1180, 1306, 1458, 1644 Liberty Bank and Trust Company, Buffalo, N. Y., Govt. agencies, etc 245, 487, 904 Order under Bank Merger Act 293 Life insurance companies. ... 65, 199, 327, 439, Life insurance companies (See Insurance 609, 727, 867, 1023, 1199, 1325, 1477, 1663 companies) Mutual savings banks 64, 198, 326, 438, 608, Litigation: 726, 866, 1022, 1198, 1324, 1476, 1662 Continental Bank and Trust Company, Salt Savings and loan associations 65, 199, 327, Lake City, Utah. , 541 439, 609, 727, 867, 1023, 1199, 1325, Northwest Bancorporation, Minneapolis, 1477, 1663 Minn 814 Weekly reporting member banks. . 59, 193, 321, Loans (See also specific types of loans): 433, 603, 721, 861, 1017, 1193, 1319, Bank credit, money, and monetary policy, 1471, 1657 article on . . . 789 Irvin, Joseph F., reappointed director at El Paso Bank loans to purchase stock of American Branch 36 Telephone and Telegraph Co. under employees' stock plan 690 Johns, Delos C, resignation as President of Fed- Banks, by classes . . .53, 187, 315, 427, 597, 715, eral Reserve Bank of St. Louis 300 855, 1010, 1187, 1312, 1464, 1650 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1733 Pages Pages Loans—Continued Margin requirements—Continued Commercial banks .797, 800, 1013, 1189, Special cash accounts—Continued 1315, 1467, 1653 Exception to 90-day rule, interpretation Commercial banks, by classes 56, 190, 318, of Regulation T 399 430, 600, 718, 858, 1014, 1190, 1316, Time of payment for mutual fund shares 1468, 1654 purchased in, interpretation of Regu- Executive officers of member banks (See lation T 1427 Executive officers) Table of 46, 180, 308, 420, 590, 708, 848, Federal Reserve Banks: 1003, 1179, 1305, 1457, 1643 Condition statement 48, 182, 310, 422, Marine Corporation, Orders under Bank Holding 592, 710, 850, 1004, 1180, 1306, 1458, 1644 Company Act 695, 1283 Farmers Home Administration insured Marine Midland Corporation, Order under Bank notes as collateral for advances by... 690 Holding Company Act 1597 Maturity distribution 47, 181, 309, 421, Marks, C. Caldwell, appointed director at Bir- 591, 709, 849, 1006, 1182, 1308, 1460, 1646 mingham Branch .... 993 Member bank borrowings. . . .44, 178, 306,Martin, Wm. McC, Jr.: 418, 588, 706, 846, 1000, 1176, 1302, Economic and credit conditions, statement 1454, 1640 on 936 Weekly and monthly data 42, 176, 304, Interest-rate ceilings on foreign official de- 416, 586, 704, 844, 998, 1174, 1300, posits, statement on H.R. 12080 813 1452, 1638 Inventory changes and cyclical movements, Govt. agencies, etc . . 245, 487, 904 statement on 809 Life insurance companies: Means of economic progress, statement on. . .131 Assets. . . .65, 199, 327, 439, 609, 727, 867, Monetary Fund resources and the interna- 1023, 1199, 1325, 1477, 1663 tional payments system, statement on. . . .279 Mortgage activity 76, 210, 338, 450, 620, Proposed banking legislation, statement on. .961 Mateer, Curtis B., elected Class A director at 738, 878, 1034, 1210, 1336, 1488, 1674 Minneapolis 1631 Mutual savings banks 64, 198, 326, 438, 608, McBride, Pierre B., redesignated Chairman and 726, 866, 1022, 1198, 1324, 1476, 1662 Federal Reserve Agent at St. Louis 29 National bank real estate and construction McCutchan, Harold O., reelected Class B director loans, amendments to Section 24 of Fedat St. Louis 1631 eral Reserve Act 963, 1278 McGee, Dean A., appointed Class C director at Savings and loan associations: Kansas City 1626 Assets. . . .65, 199, 327, 439, 609, 727, 867, McGouldrick, Paul F., article on sectoral analy- 1023, 1199, 1325, 1477, 1663 sis of velocity 1557 Mortgage activity 76, 210, 338, 450, 620, McLean, J. W., reappointed director at Houston 738, 878, 1034, 1210, 1336, 1488, 1674 Branch 36 Weekly reporting member banks. ...58, 192, 320, Means of economic progress, statement of Chairman Martin on 131 432, 602, 720, 860, 1016, 1192, 1318, Member banks: 1470, 1656 Assets and liabilities 57, 191, 319, 431, 601, Loans insured or guaranteed: 719, 859, 1015, 1191, 1317, 1469, 1655 FHA-insured (See Federal Housing Bank service corporations 962, 1428 Administration) Banking offices, changes in number. . .236, 1073 VA-insured (See Veterans Administration) Borrowings at Federal Reserve Banks. . . .44, 178, Lohmuller, Burton L., reelected Class A director 306, 418, 588, 706, 846, 1000, 1176, at Kansas City 1631 1302, 1454, 1640 Longwell, J. H., reappointed Class C director and Branches, number, by State 483 Deputy Chairman at St. Louis. . .29, 30, 1625 Deposits, by classes 47, 181, 309, 421, 591, Mandel, Max A., appointed director at San An- 709, 849, 1003, 1179, 1305, 1457, 1643 tonio Branch 36 Income and expenses 522, 644, 902 Manookian, Edward A., article on industrial pro- Interlocking directorates with securities comduction—1957-59 base 1267 panies (See Securities companies) Manufactures, production index. . . .82, 216, 344, 456, Loans to executive officers (See Executive officers) 626, 744, 884, 1040, 1216, 1342, 1495, 1681 Number, by class and State . 482 Margin requirements: Operating ratios 484 Bank loans to purchase stock of American Reserve requirements (See Reserve require- Telephone and Telegraph Co. under emments) ployees' stock plan 690 Reserves (See Reserves) Credit extended to corporation in connection Weekly reporting series 58, 192, 320, 432, with retirement of stock, interpretation of 602, 720, 860, 1016, 1192, 1318, Regulation T 1589 1470, 1656 Reduction in. .814, 840 Membership in Federal Reserve System: Special cash accounts: Admissions of State banks 172, 412, 840, Amendments to Regulation U to prevent 993, 1295, 1447 improper use of credit to finance Merrill, Fred H., elected Class B director at transactions in . .398 San Francisco. . . .1631 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1734 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Miller, James William, appointed director at De- National security expenditures—Continued troit Branch 31 Treasury statement basis 67, 201, 329, 441, Milliman, Elmer B., appointed director at Buffalo 611, 729, 869, 1025, 1201, 1327, 1479 1665 Branch 34 National summary of business conditions. . . .39, 173, Mining, production index. . . .82, 216, 344, 456, 626, 301, 413, 583, 700, 841, 994, 1170, 1296, 1448, 1633 744, 884, 1040, 1216, 1342, 1495, 1681 Neill, John H., Jr., appointed director at Birming- Mitchell George W., reappointment as member ham Branch 34 of Board of Governors 172 Newburn, Harry K., reappointed director at Mitchell, W. H., appointed director at Birming- Helena Branch 1627 ham Branch 35 Newell, John R., elected Class B director at Monetary expansion during 1961, article on 140 Boston . 1629 Monetary Fund resources and the international Nonmember banks: payments system, statement of Chairman Assets and liabilities 55-57, 189-91, 317-19, Martin on 279 429-31, 599-601, 717-19, 857-59, 1012-15, Monetary policy, bank credit, and money 789 1188-91, 1314-17, 1466-69, 1652-55 Monetary policy and interest rates, article on. .1110 Banking offices, changes in number. . . .236, 1073 Money rates {See Interest rates) Branches, number, by State 483 Clearing accounts with Federal Reserve Money supply and related data. .. .51, 185, 313, 425, Banks, amendment of Section 210.2(a) of 595, 713, 853, 1008, 1184, 1310, 1462, 1648 Regulation J 1277 Revision of series 941 Discounts and advances by Federal Reserve Montana Shares, Incorporated, Orders under Banks 48, 182, 310, 422, 592, 710, 850, Bank Holding Company Act 1285, 1288, 1289 1004, 1180, 1306, 1458, 1644 Morgan New York State Corporation, Order un- Number by State 482 der Bank Holding Company Act. .567 Noory, George G., article on survey of common Mortgages {See Real estate loans) trust funds. 528 Mutual savings banks: Northwest Bancorporation, Board's denial of ap- Assets and liabilities. . . .53, 187, 315, 427, 597, plication under Bank Holding Company Act 715, 855, 1010, 1186, 1312, 1464, 1650 affirmed by U. S. Court of Appeals 814 Banking offices, changes in number. .236, 1073 Norton, Wilbur H., appointed Class C director at Branches, number, by State 483 Boston .. 1626 Consolidated monetary statement. .52, 186, 314, 426, 596, 714, 854, 1009, 1185, 1311, O'Brien, Robert D., appointed director at Seattle 1463, 1649 Branch 1627 Monthly table 64, 198, 326, 438, 608, 726, Open Market Committee {See Federal Open 866, 1022, 1198, 1324, 1476, 1662 Market Committee) Open market rates {See Interest rates) Number, by State 482 Operating ratios, member banks 484 Real estate loans held. . . .75, 209, 337, 449, 619, Otten, John M., reappointed director at Helena 737, 877, 1033, 1209, 1335, 1487, 1673 Branch 31 U. S. Govt. security holdings 68, 202, 330, 442, 612, 730, 870, 1026, 1202, 1328, Oulliber, John, appointed director at New 1480, 1666 Orleans Branch. .35 Par List.. . . 237, 1074 Nacey, Harry M., Jr., appointed director at Nash- Patterns of consumer spending, article on 389 ville Branch. 35 Payrolls, manufacturing index 88, 222, 350, 462, National banks: 632, 750, 890, 1046, 1222, 1348, 1498, 1684 Assets and liabilities 55, 189, 317, 429, 599, Peoples Bank and Trust Company, Grand Haven, 717, 857, 1012, 1188, 1314, 1466, 1652 Mich., Order under Bank Merger Act . . . .835 Banking offices, changes in number .236, 1073 Peoples Savings and Trust Company, Hazleton, Branches: Pa., Order under Bank Merger Act 694 Number, by State 483 Peoples Union Bank and Trust Company, Mc- Keesport, Pa., Order under Bank Merger Act. . 1280 Retention upon conversion or consoli- Peppiatt, Guy S., appointed director at dation or merger. . . . 1279 Detroit Branch ... 1626 Foreign branches, legislation 961, 1154 Perry, J. B., Jr., reelected Class B director at Number, by State .... 482 Dallas 1631 Real estate and construction loans, amend- Person, Robert T., reappointed director at Denver ments to Section 24 of Federal Reserve Branch 31 Act .963, 1278 Personal income. .97, 231, 359, 471, 641, 759, 899, Trust powers: 1055, 1231, 1357, 1507, 1693 Termination of Board's Regulation F. . 1278 Peru Trust Company, Peru, Ind., Order under Transfer of authority to Comptroller of Bank Merger Act 408 the Currency 1277 Piribek, Martin, appointed director at Baltimore National income. .96, 230, 358, 470, 640, 758, 898, Branch 34 1054, 1230, 1356, 1506, 1692 Porter, Ralph A., elected Class A director at National security expenditures: Dallas ...1631 National product series 96, 230, 358, 470, Postal Savings System: 640, 758, 898, 1054, 1230, 1356, Consolidated monetary statement . .52, 186, 314, 1506, 1692 426, 596, 714, 854, 1009, 1185, 1311, 1463, 1649 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1735 Pages Pages Postal Savings System—Continued Regulations, Board of Governors: Deposits, maximum permissible rates . . 46, 180, D, Reserves of Member Banks: 308, 420, 590, 708, 848, 1003, 1179, Definition of savings deposits. .7 1305, 1457, 1643 Reserve requirements, reduction Presidents of Federal Reserve Banks (See Federal in 1447, 1589 Reserve Banks) Revision of .975 Price, Howard W., reappointed director at Salt F, Trust Powers of National Banks: Lake City Branch 31 Termination of . 1278 Prices: J, Check Clearing and Collection: Consumer. .94, 228, 356, 468, 638, 756, 896, Nonmember clearing accounts, amend- 1052, 1228, 1354, 1504, 1690 ment of Section 210.2(a) . 1277 Security. .63, 197, 325, 437, 607, 725, 865, N, Relations with Foreign Banks and 1021, 1197, 1323, 1475, 1661 Bankers: Stability in prices, article on 1 Accounts with foreign banks, amend- Wholesale commodity. . . .94, 228, 356, 468, 638, ment with respect to 283 756, 896, 1052, 1228, 1354, 1504, 1690 O, Loans to Executive Officers of Member Production: Banks: Industrial. . . .82, 216, 344, 456, 626, 744, 884, Executive officer status arising from au- 1040, 1216, 1342, 1494, 1680 thority to sign documents... 289 Industrial Production—1957-59 Base 1267, 1295 Q, Payment of Interest on Deposits: Profits: Conversion of six-months time certifi- Corporate. .73, 207, 335, 447, 617, 735, 875, cate of deposit into twelve-months 1031, 1207, 1333, 1485, 1671 certificate 8 Insured commercial banks 903 Definition of savings deposits. ... .7 Member banks 523, 525, 644, 902 Interest on foreign time deposits 1279, Publications, Board of Governors: 1280, 1427, 1589 Annual Report, 1961 300 Rate of interest on interest compounded Banking and Monetary Statistics, supplequarterly at maximum rate 398 ments 38, 300, 993, 1295 Rate of interest on savings deposit cre- Compilation of Federal and State laws relatated from matured time certificate. .398 ing to bank holding companies. . ... 1428 T, Credit by Brokers, Dealers, and Members Compilation of Federal and State laws relatof National Securities Exchanges: ing to bank mergers 1280 Margin requirements: Compilation of State laws relating to bank Applicability to credit extended to reserves . .814 corporation in connection with Industrial Production—1957-59 Base. 1295 retirement of stock. . . . .1589 List . 1719 Reduction in 814, 840 Published Interpretations of the Board. .300 Exception to 90-day rule in special cash Quarterly survey of consumer buying inten- account 399 tions . .283, 535, 955, 1421 Time of payment for mutual fund shares purchased in special cash account. . 1427 U, Loans by Banks for the Purpose of Pur- Real estate loans: chasing or Carrying Registered Stocks: Bank holdings 75, 209, 337, 449, 619, 737, Bank loans to purchase stock of Ameri- 877, 1033, 1209, 1335, 1487, 1673 can Telephone and Telegraph Co. Commercial banks . .56, 190, 318, 430, 600, under employees' stock plan 690 718, 858, 1014, 1190, 1316, 1468, 1654 Margin requirements, reduction in 814, 840 Construction and mortgage markets, article Special cash accounts, amendments to on 1549 prevent improper use of credit to fi- Life insurance companies. . . 76, 210, 338, 450, nance transactions in. 398 620, 738, 878, 1034, 1210, 1336, 1488, 1674 Reserve cities: Mutual savings banks. . . .64, 198, 326, 438, 608, 726, 866, 1022, 1198, 1324, 1476. 1662 Change in classification of central reserve National bank loans, amendments to Section city banks . , 975, 993 24 of Federal Reserve Act 963, 1278 List of member banks by reserve classifica- Savings and loan associations. . . .76, 210, 338, tions 1291 450, 620, 738, 878, 1034, 1210, 1336, Rule for classification of, amendment to. . . 975 1488, 1674 Termination of designations of Topeka, Type of mortgage holder and property mort- Wichita, and Kansas City, Kansas 1154 gaged. 75-77, 209-11, 337-39, 449-51, 619-21 Reserve requirements, member banks: 737-39, 877-79, 1033-35, 1209-11, 1335-37, List of member banks in reserve cities, by 1487-89, 1673-75 reserve classifications . . .1291 Weekly reporting member banks 58, 192, Reduction in 1447, 1589 320, 432, 602, 720, 860, 1016, 1192, Regulation D and Supplement, revision of . 975 1318, 1470, 1656 Table of. .47, 181, 309, 421, 591, 709, 849, Recent patterns of demand, article on 929 1003, 1179, 1305, 1457, 1643 Reed, Philip D., redesignated Chairman and Fed- Reserves: eral Reserve Agent at New York, and reap- Commercial banks . .57, 191, 319, 431, 601, pointed Class C director 29, 1625, 1626 719, 859, 1015, 1191, 1317, 1469, 1655 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1736 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Reserves—Continued Savings and loan associations: Federal Reserve Banks 48, 182, 310, 422, Mortgage activity 76, 210, 338, 450, 620, 738, 592, 710, 850, 1004, 1180, 1306, 1458, 1644 878, 1034, 1210, 1336, 1488, 1674 Foreign central banks and governments. ... 108, Principal assets 65, 199, 327, 439, 609, 727, 248, 366, 490, 658, 764, 906, 1078, 1236, 867, 1023, 1199, 1325, 1477, 1663 1362, 1526, 1700 U. S. Govt. security holdings 69, 203, 331, Foreign countries and international 443, 613, 731, 871, 1027, 1203, 1329, institutions.. . Ill, 251, 369, 493, 661, 767, 1481, 1667 909, 1081, 1239, 1365, 1529, 1703 Sawin, Benjamin F., elected Class A director at Member banks: Philadelphia 1630 Accounts with Federal Reserve Banks. . .48, Scanlon, Charles J., appointed President of 182, 310, 422, 592, 710, 850, 1004, 1180, Federal Reserve Bank of Chicago .37 1306, 1458, 1644 Schaller, Harry W., elected Class A director at By class of bank 44, 178, 306, 418, 588, Chicago 1631 706, 846, 1000, 1176, 1302, 1454, 1640 Schwartz, M. H., appointed Director of Division Commercial bank statement. . .57, 191, 319, of Data Processing 1291 431, 601, 719, 859, 1015, 1191, 1317, Scott, Homer A., designated Chairman and 1469, 1655 Federal Reserve Agent at Kansas City 29, 1625 List of, in reserve cities, by reserve Sectoral analysis of velocity, article on 1557 classifications .1291 Securities: Regulation D, revision of.. . .975 International transactions. ... 118, 258, 376, 500, Reserve requirements {See Reserve 668, 774, 916, 1088, 1246, 1372, 1536, 1710 requirements) Securities companies: Reserves and related items. . . .42, 176, 304, Interlocking directorates with member banks: 416, 587, 704, 844, 998, 1174, 1300, 1452, 1638 Special or limited partner of securities Weekly reporting banks 59, 193, 321, company serving bank. .975 433, 603, 721, 861, 1017, 1193, 1319, Security issues: 1471, 1657 Corporate, outstanding, net change in. . .74, 208, State laws relating to bank reserves 814 336, 448, 618, 736, 876, 1032, 1208, 1334, Residential mortgage loans. . . .75-77, 209-11, 337-39, 1486, 1672 449-51, 619-21, 737-39, 877-79, 1033-35, New issues. .72, 206, 334, 446, 616, 734, 874, 1209-11, 1335-37, 1487-89, 1673-75 1030, 1206, 1332, 1484, 1670 Reter, Raymond R., reappointed director at State and local governments 71, 205, 333, Portland Branch . 1627 445, 615, 733, 873, 1029, 1205, 1331, Robinson, Joe H., appointed director at 1483, 1669 Charlotte Branch 34 Self, William King, reappointed director at Rouse, Robert G., resignation as Manager of Sys- Memphis Branch 1627 tem Open Market Account, to become Vice Shay, Jerome W., appointed Assistant General President and Senior Adviser of Federal Re- Counsel, Legal Division 37 serve Bank of New York 699 Shepley, Ethan A. H., appointed Class C director Rowland, Thomas B., reappointed director at and designated Chairman and Federal Reserve Salt Lake City Branch 1627 Agent at St. Louis 1625, 1626 Rue, Ralph H., elected Class A director at New Sherman, Anson F., reappointed director at York 1630 Buffalo Branch 34 Rule for Classification of Reserve Cities, amend- Shively, Douglas, appointed director at Los ment to 975 Angeles Branch . , 172 Rules of Organization and Procedure: Shuford, Harry A., appointed President of the Board of Governors . 17, 28 Federal Reserve Bank of St. Louis. .... . .1291 Federal Open Market Committee. .691 Silver coin and silver certificates, outstanding and in circulation. 50, 184, 312, 424, 594, 712, 852, Sales finance companies: 1007, 1183, 1309, 1461, 1647 Consumer loans of 79, 213, 341, 453, 623, Simons, Dolph, appointed Class C director and 741, 881, 1037, 1213, 1339, 1491, 1677 Deputy Chairman at Kansas City 30, 1625 Salvati, R. E., reelected Class B director at Smith, Francis A., director at Buffalo Branch, Richmond . 1630 death of 582 Saving: Smith, McGregor, reelected Class B director at Flow-of-funds series 98, 232, 360, 472, 642, Atlanta 1630 760, 900, 1056, 1232, 1358, 1508, 1694 Smith, Richard T., appointed director at Louis- National income series. . . .97, 231, 359, 471, 641, ville Branch 31 759, 899, 1055, 1231, 1357, 1507, 1693 Southern Bank and Trust Company, Richmond, Savings deposits {See also Time deposits): Va., Order under Bank Merger Act 824 Definition of 7 Springfield Safe Deposit and Trust Company, Maximum permissible rates. . . .46, 180, 308, 420, Springfield, Mass., Order under Bank Merger 590, 708, 848, 1003, 1179, 1305, 1457, 1643 Act 170 Rate of interest on interest compounded Stability in the labor market, article on. .1385 quarterly at maximum rate 398 Stability in prices, article on 1 Rate of interest on savings deposit created Stabler, Carey V., appointed director at Little from matured time certificate 398 Rock Branch ... .... . . .1627 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1737 Pages Pages Staff of Board of Governors {See Board of Stocks—Continued Governors) Yields. .62, 196, 324, 436, 606, 724, 864, 1020, Stanford, Henry King, appointment as director at 1196, 1322, 1474, 1660 Birmingham Branch, and resignation. . .31, 33, 840 Stockton, John R., reappointed director at San State Bank of Salem, Ind., Order under Bank Antonio Branch 1627 Merger Act . ... 987 Stone, Robert W., selected as Manager of System State member banks: Open Market Account 699 Admissions to membership in Federal Street, Clarence P., reappointed director at Char- Reserve System. . 172, 412, 840, 993, lotte Branch 30 1295, 1447 Stroud, John R., reappointed director at Louisville Assets and liabilities 55, 189, 317, 429, 599, Branch 35 717, 857, 1012, 1188, 1314, 1466, 1652 Stuart, C. P., reappointed director at Oklahoma Bank mergers {See Bank Merger Act) City Branch. 36 Bank service corporations 962, 1428 Surveys: Banking offices, changes in number. . . .236, 1073 Automation at commercial banks 1408 Branches, number, by State 483 Common trust funds, 1961 528 Continental Bank and Trust Company, Salt Consumer buying intentions. .. .283, 535, 955, Lake City, Utah: 1421 Litigation . .541 System Open Market Account: Termination of administrative Manager of, selection of Mr. Stone to succeed proceeding . . .1430 Mr. Rouse. . 699 Number, by State . .482 State and municipal securities: Tarver, Jack, appointed Class C director and New issues 71, 205, 333, 445, 615, 733, 873, designated Chairman and Federal Reserve 1029, 1205, 1331, 1483, 1669 Agent at Atlanta 29, 30, 1625 Prices. .63, 197, 325, 437, 607, 725, 865, 1021, Tax receipts, Federal. . . .67, 201, 329, 441, 611, 729, 1197, 1323, 1475, 1661 869, 1025, 1201, 1327, 1479, 1665 Yields. 62, 196, 324, 436, 606, 724, 864, 1020, Thomas, Woodlief, retirement as Adviser to the 1196, 1322, 1474, 1660 Board .699 State-Planters Bank of Commerce and Trusts, Thompson, Andrew N., appointed Assistant Richmond, Va., Order under Bank Merger Director, Division of Examinations 37 Act 1156 Thompson, Joseph H., reappointed Deputy Chair- States and political subdivisions: man at Cleveland 29 Deposits: Tiller, Waldo E., reappointed director at Little Commercial banks 57, 191, 319, 431, Rock Branch 31 601, 719, 859, 1015, 1191, 1317, 1469, 1655 Time deposits: Weekly reporting member banks.... 60, 194, Adjusted, banks and the monetary system .... 52, 322, 434, 604, 722, 862, 1018, 1194, 186, 314, 426, 596, 714, 854, 1009, 1185, 1320, 1472, 1658 1311, 1463, 1649 Holdings of U. S. Govt. securities 68, 202, Bank for International Settlements, interpre- 330, 442, 612, 730, 870, 1026, 1202, tation with respect to interest on deposits 1328, 1480, 1666 of 1427 Ownership of obligations of: Banks, by classes . . 53, 187, 315, 427, 597, 715. Commercial bank holdings. . . .56, 190, 318, 855, 1010, 1186, 1312, 1464, 1650 430, 600, 718, 858, 1014, 1190, 1316, Commercial banks: 1468, 1654 By classes 57, 191, 319, 431, 60U 719, Life insurance company holdings. . .65, 199, 859, 1015, 1191, 1317, 1469, 1655 327, 439, 609, 727, 867, 1023, 1199, 1325, 1477, 1663 Money supply and related data. . . .51, 185, Mutual savings bank holdings 64, 198, 313, 425, 595, 713, 853, 1008, 1184, 326, 438, 608, 726, 866, 1022, 1198, 1310, 1462, 1648 1324, 1476, 1662 Conversion of six-months time certificate Steele, William A., reappointed director at into twelve-months certificate. . . . .8 Pittsburgh Branch . .30 Definition of savings deposits 7 Stephenson, C. B., reappointed director at Foreign time deposits, interest on, amend- Portland Branch .36 ment of Federal Reserve Act and Regula- Stock market credit: tion Q, and interpretations . 813, 1279, 1280, Monthly table 63, 197, 325, 437, 607, 725, 1427, 1589 865, 1021, 1197, 1323, 1475, 1661 Interest rates on, mid-January 1962, article Stock Exchange firms, June 1955-62 1234 on 147 Stocks: Maximum permissible rates. . . .46, 180, 308, 420, Corporate, outstanding, net change in. . .74, 208, 590, 708, 848, 1003, 1179, 1305, 1457, 1643 336, 448, 618, 736, 876, 1032, 1208, Member banks. . . .47, 181, 309, 421, 591, 709, 1334, 1486, 1672 849, 1003, 1179, 1305, 1457, 1643 New issues. 72, 206, 334, 446, 616, 734, 874, Rate of interest on interest compounded 1030, 1206, 1332, 1484, 1670 quarterly at maximum rate 398 Prices. 63, 197, 325, 437, 607, 725, 865, 1021, Rate of interest on savings deposit created 1197, 1323, 1475, 1661 from matured time certificate. . 398 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1738 FEDERAL RESERVE BULLETIN • DECEMBER 1962 Pages Pages Time deposits—Continued U. S. Govt. balances—Continued Weekly reporting member banks. ... 60, 194, 322, Treasury deposits—Continued 434, 604, 722, 862, 1018, 1194, 1320, 1472, Weekly and monthly data 42, 176, 304, 416, 1658 586, 704, 844, 998, 1174, 1300, 1452, 1638 Treasurer's account balance... 66, 200, 328, 440, Weekly reporting member banks 60, 194, 610, 728, 868, 1024, 1200, 1326, 1478, 1664 322, 434, 604, 722, 862, 1018, 1194, 1320, Treasury cash: 1472, 1658 Consolidated monetary statement.... 52, 186, U. S. Govt. securities: 314, 426, 596, 714, 854, 1009, 1185, 1311, Bank holdings: 1463, 1649 By class of bank 53, 187, 315, 427, 597, Weekly and monthly data 42, 176, 304, 416, 715, 855, 1010, 1186, 1312, 1464, 1650 586, 704, 844, 998, 1174, 1300, 1452, 1638 Commercial banks 56, 190, 318, 430, 600, Treasury currency: 718, 858, 1014, 1190, 1316, 1468, 1654 Consolidated monetary statement 52, 186, Consolidated monetary statement 52, 186, 314, 426, 596, 714, 854, 1009, 1185, 1311, 314, 426, 596, 714, 854, 1009, 1185, 1311, 1463, 1649 1463, 1649 Outstanding and in circulation 50. 184, 312. Mutual savings banks . .64, 198, 326, 438, 424, 594, 712, 852, 1007, 1183, 1309, 1461, 1647 608, 726, 866, 1022, 1198, 1324, 1476, 1662 Weekly and monthly data 42, 176, 304, 416, Ownership data 68, 202, 330, 442, 612, 586, 704, 844, 998, 1174, 1300, 1452, 1638 730, 870, 1026, 1202, 1328, 1480, 1666 Treasury deposits at Federal Reserve Banks: Weekly reporting member banks. . . 59, 193, Condition statement data .. 48, 182, 310, 422, 321, 433, 603, 721, 861, 1017, 1193, 1319, 592, 710, 850, 1004, 1180, 1306, 1458, 1644 1471, 1657 Treasury statement basis. . .66, 200, 328, 440, Dealer transactions, positions, and 610, 728, 868, 1024, 1200, 1326, 1478, 1664 financings 70, 204, 332, 444, 614, 732, Weekly and monthly data. . .42, 176, 304, 416, 871, 1028, 1204, 1330, 1482, 1668 586, 704, 844, 998, 1174, 1300, 1452, 1638 Federal Reserve Bank holdings: Treasury and Federal Reserve foreign exchange Authority to purchase Govt. obligations operations, report on. .1138 directly from the U. S., extension of. . 975 Trust funds, common: Condition statement. . . .48, 182, 310, 422, Legislation .... . 1277 592, 710, 850, 1004, 1180, 1306, 1458, 1644 Survey of, 1961 528 Maturity distribution. .47, 181, 309, 421, Trust powers of national banks: 591, 709, 849, 1006, 1182, 1308, 1460, 1646 Termination of Board's Regulation F 1278 Ownership data 68, 202, 330, 442, 612, Transfer of authority to Comptroller of the 730, 870, 1026, 1202, 1328, 1480, 1666 Currency 1277 Weekly and monthly data. . .42, 176, 304, Tucker, Barney A., appointed director at Cincin- 416, 586, 704, 844, 998, 1174, 1300, 1452, nati Branch 30 1638 Foreign and international holdings. . . Ill, 251, Unemployment 90, 224, 352, 464, 634, 752, 892, 369, 493, 661, 767, 909, 1081, 1239, 1365, 1048, 1224, 1350, 1500, 1686 1529, 1703 Union and New Haven Trust Company, New International transactions. . . .118, 258, 376, 500, Haven, Conn., Order under Bank Merger Act 1281 668, 774, 916, 1088, 1246, 1372, 1536, 1710 Union Trust Company of Maryland, Baltimore, New issues, gross proceeds. . . .72, 206, 334, 446, Md., Orders under Bank Merger Act 404, 833, 616, 734, 874, 1030, 1206, 1332, 1484, 1670 1432 Outstanding, by type of security . . .71, 205, 333, United California Bank, Los Angeles, Calif., 445, 615, 733, 873, 1029, 1205, 1331, 1483, Orders under Bank Merger Act . 291, 827, 989 1669 U. S. balance of payments: Ownership of 68, 202, 330, 442, 612, 730, Article on . 1259 870, 1026, 1202, 1328, 1480, 1666 Table 121, 261, 379, 503, 671, 777, 919, Prices. .63, 197, 325, 437, 607, 725, 865, 1021, 1091, 1249, 1375, 1539, 1713 1197, 1323, 1475, 1661 U. S. Govt. balances: Yields. 62, 196, 324, 436, 606, 724, 864, 1020, Commercial bank holdings: 1196, 1322, 1474, 1660 By class of bank. . . .57, 191, 319, 431, 601, United States notes, outstanding and in 719, 859, 1015, 1191, 1317, 1469, 1655 circulation. .50, 184, 312, 424, 594, 712, 852, Money supply and related data. . 51, 185, 1007, 1183, 1309, 1461, 1647 313, 425, 595, 713, 853, 1008, 1184, United Virginia Bankshares, Incorporated, Order 1310, 1462, 1648 under Bank Holding Company Act 1620 Consolidated monetary statement ...52, 186, Utilities, production index . 82, 216, 344, 456, 626, 314, 426, 596, 714, 854, 1009, 1185, 1311, 744, 884, 1040, 1216, 1342, 1495, 1681 1463, 1649 Treasury deposits at Federal Reserve Banks: Valley, Donald F., reappointed director at Condition statement data. .48, 182, 310, Detroit Branch .35 422, 592, 710, 850, 1004, 1180, 1306, Vaughn, Harry T., reappointed director at 1458, 1644 Jacksonville Branch .31 Treasury statement basis . . 66, 200, 328, Vault cash: 440, 610, 728, 868, 1024, 1200, Commercial banks 57, 191, 319, 431, 601, 1326, 1478, 1664 719, 859, 1015, 1191, 1317, 1469, 1655 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 48 1739 Pages Pages Vault cash—Continued Whitaker, Howard E., reappointed director at Member banks: Cincinnati Branch 1626 By classes 47, 181, 309, 421, 591, 709, Whitman, F. B., redesignated Chairman and Fed- 849, 1003, 1179, 1305, 1457, 1643 eral Reserve Agent at San Francisco, and re- Weekly and monthly data 42, 176, 304, appointed Class C director 29, 1625, 1626 416, 586, 704, 844, 998, 1174, 1300, Whitney Holding Corporation, Orders under 1452, 1638 Bank Holding Company Act 560, 1442 Veenstra, Theodore A., Jr., article on member Whittemore, Eugene B., Class B director at bank income . 522 Boston, death of . 993 Veterans Administration: Willham, Oliver S., appointed Deputy Chairman Assets and liabilities 245, 487, 904 at Kansas City . . . .29 Loans guaranteed by. . . .75-77, 209-11, 337-39, 449-51, 619-21, 737-39, 877-79, 1033-35, Williams, Kenneth B., title changed to Adviser, 1209-11, 1335-37, 1487-89, 1673-75 Division of Research and Statistics. . .37 Virginia Commonwealth Corporation, Order un- Wilmington Trust Company, Wilmington, Del., der Bank Holding Company Act. . 1442 Order under Bank Merger Act .830 Windber Bank and Trust Company, Windber, Pa., Walker Bank & Trust Company, Salt Lake City, Order under Bank Merger Act 831 Utah, Order under Bank Merger Act 1592 Winn, Willis J., appointed Class C director at Warden, John H., reappointed Class C director Philadelphia ... . .30 at Minneapolis .30 Wise, James DeCamp, reappointed Class C direc- Warner, Jack W., reappointed director at tor and Deputy Chairman at Birmingham Branch 1626 New York 29,30,1625 Webster, William, appointed Deputy Chairman Wood, Ralph C, appointed Associate Adviser, at Boston 1625 Division of International Finance. ... .37 Weekly reporting member banks 58, 192, 320, Wyand, Robert R., II, article on automation at 432, 602, 720, 860, 1016, 1192, 1318, 1470, 1656 commercial banks 1408 Wells Fargo Bank American Trust Company, San Francisco, Calif., Order under Bank Mer- Yates, Claude J., reappointed director at ger Act 10 Wessell, Nils Y., redesignated Chairman and Jacksonville Branch ... . 1626 Federal Reserve Agent at Boston 29 Yields (See Interest rates) Wesson, Frank Lee, reappointed director at Young, Ralph A., article on interest rates and Memphis Branch . .31 monetary policy 1110 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES ($ THE FEDERAL RESERVE SYSTEM o) C? HAWAII a 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