Federal Reserve Bulletin, 1963-02

FEDERAL RESERVE B U LLETIN February 1963 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

E D I T O R I AL C O M M I T T EE Charles Molony Ralph A. Young Guy E. Noyes The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed, except in official statements and signed articles. Contents Money and Bank Credit in 1962 115 Monetary Policy and the Economy 122 Farm Debt as Related to Value of Sales 140 Directors of Federal Reserve Banks and Branches 149 Law Department 163 Announcements 200 National Summary of Business Conditions 201 Guide to Tabular Presentation 204 Financial and Business Statistics, U. S. (Contents on p. 205) 206 International Financial Statistics (Contents on p. 277) 278 Board of Governors and Staff 294 Open Market Committee and Staff; Federal Advisory Council 295 Federal Reserve Banks and Branches 295 Federal Reserve Board Publications 297 Index to Statistical Tables 299 Map of Federal Reserve System Inside back cover Volume 49 * Number 2 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

MONETARY POLICY continued to be ex- to be conducted throughout the maturity pansive in 1962. Reserves were readily avail- range of U.S. Government securities. Over able to commercial banks, and their loans the year the System's net acquisitions of Govand investments outstanding rose $19 bil- ernment securities totaled $1.9 billion, of lion, a record amount for the postwar period. which $1.8 billion were issues maturing With credit generally in large supply, long- in more than a year. These were concenterm interest rates declined somewhat despite rather strong financing demands. Shortterm rates rose slightly over the year and in early 1963. An exceptionally rapid expansion in time and savings deposits at commercial banks, influenced by the rise in interest rates paid on such deposits early in the year, contributed to the growth in bank credit. The active money supply—privately held currency and demand deposits—rose moderately, with the growth concentrated in the last few months of the year. The money supply increased somewhat on the average in January 1963, while time and savings deposits expanded rapidly. FEDERAL RESERVE OPERATIONS AND NOTE.—Monthly averages of daily figures. Total reserves BANK RESERVES adjusted are seasonally adjusted and are based on actual figures for the period beginning with Nov. 1962 when the latest change in reserve requirements became effective. In order to In 1962, as in other recent years, the Fed- eliminate the effects of differences in reserve requirements in earlier months, figures for those months were constructed by eral Reserve had to take both domestic eco- taking the sum of actual excess reserves and a figure for required reserves obtained by applying Nov. 1962 reserve requirenomic expansion and the state of the balance ments against demand and time deposits by class of bank. Excess reserves and borrowings of all member banks at F. R. Banks. Latest figures, Jan., preliminary. of payments into account in its policy decisions and operations. To facilitate domestic trated in the 1-5 year maturity range. The economic growth, it supplied reserves in Treasury also purchased longer-term Govample volume to member banks. But it sup- ernment securities for its agency and trust plied them in ways that kept downward pres- accounts and helped to maintain upward sures on short-term interest rates at a mini- pressures on short-term interest rates by mum and which moderated incentives to raising most of the new cash it needed outflows of volatile short-term capital. For through the sale of Treasury bills. instance, open market operations continued Tn other actions, the Board in late Octo- I 15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 ber and early November lowered from 5 to red mainly in the spring and autumn, after 4 per cent the reserves that member banks changing little in winter when inflows to are required to maintain against savings and time and savings deposits were at their peak. time deposits. This action released about Federal Reserve actions added enough to $780 million of reserves in anticipation of member bank reserve availability to more the banking system's large seasonal need for than offset the impact of other factors that reserves in the closing months of the year. drained bank reserves in 1962. An unusually Such reserves would otherwise have been large outflow of currency into circulation, made available through open market opera- amounting to $ 1.1 billion, absorbed reserves, tions, principally purchases of Treasury bills and so did a continued decline in the U.S. because the volume of buying would have gold stock, which amounted to about $950 been large. Thus, the action kept some down- million on a monthly average basis. ward pressures off short-term interest rates. With ample reserves available from Fed- Meanwhile, the cost of reserves borrowed eral Reserve operations, member bank borby member banks from Federal Reserve rowings from Federal Reserve Banks gener- Banks—the discount rate—remained at 3 ally stayed near minimal levels except in per cent. The cost of borrowing reserve midsummer and again late in the year. In the funds through the Federal funds market rose, meantime, member banks' excess reserves however. Early in the year the Federal funds fluctuated but changed little on balance. As rate—the rate of interest on excess reserves a result, their net free reserves—excess rethat banks lend mainly to each other—was serves less borrowings—fluctuated between generally well below the discount rate, as it $370 million and $470 million on a monthly had been in the last part of 1960 and in average basis after the early part of the year 1961. In the latter part of 1962, though, the and then declined in December. In January Federal funds rate was generally at or only 1963 free reserves averaged $385 million. slightly below the discount rate as demand During the whole course of economic exfor reserve funds rose relative to the supply pansion since the early 1961 cyclical trough, of excess reserves that commercial banks bank borrowings have been much lower than were willing to lend. excess reserves. This has reflected the ample Actual total reserves of member banks supply of funds to banks relative to the dedeclined slightly in 1962. However, after mand for bank credit. Another consideraadjustment for the reserves released by the tion, though, is the fact that yields on 3reduction in time deposit reserve requiremonth Treasury bills and on Federal funds ments, total reserves rose about $700 milwere below the discount rate for most of the lion. This was more than in most other period, which limited the incentive for memrecent years, after adjustment for reserve reber banks to borrow from Federal Reserve quirement changes, but somewhat less than Banks when they experienced temporary rein 1958 or 1961. Nevertheless, the greater serve deficiencies. increase during 1962 in time deposits, which require much smaller reserves than demand TIME AND SAVINGS DEPOSITS deposits, contributed to a growth in total bank credit that was larger than in each of The ability of commercial banks to extend the two earlier years. Reserve growth occur- credit last year was enhanced by the un- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY AND CREDIT IN 1962 117 usually large inflow of funds to time and sav- tions were affected by increased competiings deposits. About $15 billion, net, flowed tion from commercial banks. To the extent into such deposits in 1962. This increased that there was a diversion of funds from the volume outstanding by 18 per cent, the other assets into savings deposits at comlargest increase for any postwar year. mercial banks, it would appear to have been The volume of time and savings deposits more a movement away from marketable securities and demand deposits. responded quickly to the higher interest rates offered by commercial banks early in the year, after the ceiling on these rates was raised as of January 1. After the first quarter the rate of increase slowed and returned to a rate just above that of 1961, when it was 13 per cent. Late in the year and in early 1963 growth in these deposits accelerated. The temporary character of the rapid first-quarter increase seems to indicate that it may have been caused to a certain extent not by new saving, but by consumers and businesses shifting the types of assets they INDIVIDUALS, PARTNERSHIPS held, or would otherwise have held, in re- AND CODPODATIONS action to the higher interest rates at commercial banks. The distribution of the increase in time and savings deposits between passbook savings and other time deposits provides a basis for evaluating to what extent this was true, not only in the first quarter but also throughout the year. A part of the greater increase in time and savings accounts during the first quarter NOTE.—Weekly reporting member banks in leading citieswas additional passbook savings of indi- Foreign includes deposits of foreign governments and official institutions, central banks, and international institutions. Tolal includes deposits of U. S. Govt., domestic and foreign comviduals. Net inflows of such funds remained mercial banks, and mutual savings banks, not shown separately. Latest figures, Jan. 30. high throughout the year, although tapering off from first-quarter rates. Only a Most of the increased inflow to time and small part of the increase in passbook sav- savings deposits in the first quarter was acings accounts, either in the first quarter or counted for by a sharp increase in time delater, seemed to represent funds diverted posit accounts of individuals, partnerships, from closely competitive assets such as sav- and corporations following a decline in the ings and loan shares or deposits in mutual fourth quarter of 1961. Business funds consavings banks. In the aggregate, funds flowed stituted a substantial, if not the major, porinto those institutions in record volume dur- tion of this shift, although individual savers ing the year, although there were areas of also apparently increased funds held in these the country in which inflows to such institu- accounts. Funds placed in time deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 might otherwise have been left in demand MONEY SUPPLY accounts or invested in Treasury bills or The privately held money supply increased other short-term market instruments. There by about 1.5 per cent over the year, about were apparently large declines in business the same as the average annual rate for demand deposits in the first half of the year, the past 10 years. The increase was conafter allowance for seasonal variation, while centrated in the last quarter, when the anbusiness acquisitions of Federal obligations nual rate of rise was 8 per cent. Earlier, the were moderate. money supply had declined slightly, in part After the first quarter of 1962 the net because of the strong rise in time and savflow of funds into other time deposits fell ings deposits early in the year and in part off. In late October and November there because of a larger than usual build-up in was a relatively large increase in time deposits of foreign governments and official institutions in response to the raising of interest rates at some banks after Congress exempted such deposits from interest rate regulation for a period of 3 years beginning October 15. Rates were apparently raised mainly on deposits maturing within 3 months so that the deposits would be competitive with securities of the shortest term. In summary, there may have been some diversion of funds to time and savings deposits from marketable securities by investors and from demand deposits, especially early in the year by businesses and individual holders having larger balances than currently needed. There may also have been some small diversion to commercial banks of funds that would otherwise have gone into savings and loan associations. NOTE.—Seasonally adjusted. Money supply, semimonthly Such shifts among assets as did occur, averages of daily figures. Money supply consists of (1) demand deposits at all commercial banks, other than those due to however, were within the context of an en- domestic commercial banks and the U. S. Govt., less cash items in process of collection and F. R. float; (2) foreign larged flow of financial saving. In particular, demand balances at F. R. Banks; and (3) currency outside the Treasury, the Federal Reserve, and the vaults of all commercial banks. Turnover, monthly, of demand deposits except individuals acquired an estimated $41 bil- interbank and U. S. Govt., at 343 centers outside New York. Latest figures, Jan., preliminary. lion of financial assets of all types in 1962. This was about 20 per cent more than in 1961, with growth in time and savings de- U.S. Government deposits, which reached a posits accounting for the bulk of the rise. peak in early summer. Government deposits At the same time, there was a rise in con- generally remained high until early fall, sumer borrowing. Nevertheless, the margin when they began to be drawn down. The enof funds available from consumers to other suing decline in Government deposits, tosectors of the economy continued to be large. gether with strengthened demand for bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY AND CREDIT IN 1962 loans, contributed to growth in the privately held money supply over the last few months BANK LENDING lorgt in 1962 Nat change Billions of dollars of the year. With growth in demand deposits moderate over the year, and with strong public preference for other liquid assets, existing demand deposits were used more intensively to support growth in income and transactions in the economy. The turnover of money at 343 reporting centers outside New York City rose, and in the fourth quarter of 1962 it averaged about 8 per cent higher than in the last quarter of 1961. TOTAL LOANS AND u.s. eovi. OTHU INVESTMENTS SECURITIES SICUCITIES COMMERCIAL BANK CREDIT Most of the rapid growth in bank credit dur- NOTE.—Based on data for Dec. 31. Figures for 1962 estimated. Interbank loans excluded. ing 1962 was in loans. In consequence, the loan-deposit ratio for all commercial banks recent years; and loans to retail and wholerose during the year, and at the year-end was sale trade concerns rose more than usual. close to 57 per cent, or just slightly below the The strength of demand in the second half recent peak in mid-1960. can be explained only partly by business de- Bank holdings of State and local govern- velopments. Inventory accumulation, for inment securities grew by an unusually large stance, was slight, and expansion in ecoamount, as banks stressed longer-term and nomic activity was comparatively slow higher-yielding investments in an effort to with employment and industrial production increase earnings in the face of the persistent changing little. Unexpectedly large sales of rise in time and savings deposits at the higher autos and other durable goods, especially in interest rates. Holdings of U.S. Government the fourth quarter, however, may have insecurities declined slightly on balance, in creased the need for bank loans. But finansharp contrast to 1958 and 1961, when a cial conditions also seem to have influenced rapid expansion of total bank credit included business bank loan demand. Some corporasubstantial growth in holdings of U.S. Gov- tions may have substituted bank credit for ernment securities. In those years demand capital market financing because they found for bank loans was not so strong, and banks more favorable terms at banks or because were rebuilding liquidity. they expected a further decline in long-term Loans. Outstanding business loans of market rates of interest. banks rose by more than $4 billion during Banks were very active in the mortgage 1962. or 9 per cent, which was twice as market last year as they sought higher earnmuch as in the year before. Business demand ings through longer-term investments. Real for bank loans was strongest in the second estate loans increased by $4 billion, more of half of the year. Borrowing by public utilities an increase than in other postwar years. was large; outstanding loans to durable Consumer loans of banks increased modgoods producers declined much less than erately during the year in line with the genthey usually have in the last 6 months of eral increase in the demand for consumer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 credit. Loans for purchasing or carrying directly on yields on State and local governsecurities also increased, especially early in ment securities, especially in the first few the year during Treasury financing opera- months of the year. Interest rates on morttions and again in December. In that month, gages also came under some downward pres- U.S. Government security dealers were fi- sure, as there was a large supply of mortnancing an unusually large inventory of gage funds not only from commercial banks securities. but also from savings and loan associations Securities. Bank holdings of non-U.S. Gov- and mutual savings banks, which invest the ernment securities, principally State and lo- bulk of their funds in mortgages. cal government issues, rose a record $5.3 Rates on U.S. Government intermediatebillion. This was another sign of their em- and long-term issues also declined, as did phasis on longer-term investments. In mak- high-grade corporate bond yields. The latter ing portfolio adjustments they also showed fell to some extent in sympathy with the dea preference for longer-term U.S. Govern- clines in other long-term rates but also bement issues. They were generally net sellers cause of a decline in corporate demands for of securities maturing within a year, while new long-term funds. they added on balance to their holdings of The general downward movement of longer-term issues through participation in long-term bond yields contrasts with a small Treasury financings and through market advance in short-term rates. This diverse purchases. Passage of time, however, brought some existing U.S. Government security holdings into the "within 1 year" category, which in part offset the effect of market sales and redemptions on short-term holdings for the year as a whole. The ratio of banks' liquid asset holdings —Government securities maturing within a year together with net free reserves—to demand deposits fell in the last few months of the year, partly because of the spurt in loan demand and partly because of continued efforts by banks to lengthen maturities of security holdings. At year-end the ratio was, at 16 per cent, still high by standards of recent years and only 1 percentage point lower than at the end of 1961. INTEREST RATES The heavy inflow of saving to commercial banks and to savings institutions contributed to a decline in long-term rates of interest NOTE.—Monthly averages. Treasury bills, market yields on 3-month bills. Corporate and State and local govt. bonds, last year. The impact of banks' concentra- Moody's Investors Service. U.S. Govt. bonds, issues maturing or callable in 10 years or more. Bank prime rate, rate charged by large banks on short-term loans to business borrowers of tion on longer-term investments fell most the highest credit standing. Latest figures shown, Jan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONEY AND CREDIT IN 1962 121 movement of long- and short-term rates was economy raised a record $58 billion of influenced in part by Treasury and Federal short- and long-term funds last year. This Reserve actions and by banks' portfolio pref- was about 25 per cent more than in 1961. erences. Although short-term rates were The highest previous year was 1959 when firm, bank and other short-term credit was the comparable figure was $53 billion. In available in ample supply to meet domestic general, funds were in ample supply last year short-term financing demands. to sustain economic expansion, with com- In fact, with conditions in credit markets mercial banks taking an especially active generally easy, nonfinancial sectors of the role in meeting the nation's financial needs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress: Monetary Policy and the Economy Statement by William McChesney Martin, of State and local securities accounted for Jr., Chairman, Board of Governors of the the rest. The rate of expansion, 8.5 per cent Federal Reserve System, before the Joint for the year as a whole, was rising more Economic Committee, February 1, 1963. rapidly as the last 5 months went by. One particular display of enterprise by the The focus of my remarks will be on the banks seems worthy of special attention. The financial aspects of the economic situation story behind it begins with the start of 1962 and particularly on the role of monetary when, taking swift advantage of authorizapolicy. tions from the Federal Reserve and the Fed- Individuals, business concerns, and gov- eral Deposit Insurance Corporation, banks ernments—national. State, and local—ob- in impressive numbers set out to gain detained financing in record volume in 1962. posits by raising the interest rates they pay Altogether, through borrowing and the for savings accounts and also for time deissuance of securities, they acquired addi- posits of 6 months or more. tional funds in the net amount of $58 bil- The results were dramatic: the public relion. That surpassed 1959's previous record sponded to the higher rates by increasing by $5.5 billion. It exceeded 1961 by $12 its time and savings deposits some $15 bilbillion. lion, net, or 18 per cent—at an annual rate Mortgage loans registered a record ex- —a development unequaled in postwar expansion of $24 billion. Consumer credit perience. Also dramatic was the aftermath: outstanding showed a marked rise of $5.5 the banks responded to the mounting inflow billion, three times as much as in 1961. of funds by lending on real estate in an Corporations cut back the issuance of bonds amount unmatched since the war and by and stocks but stepped up their short-term purchasing State and local securities in a borrowing. New borrowing by the Fed- volume unpredecented in history. Meaneral government equaled that of the previ- while, in further reflection of the effect proous year, while new borrowing by State duced by the rising supply of savings, inand local governments continued in about terest rates on mortgages and interest yields the same record volume as in 1961. on State and local securities moved gen- A considerable part in supplying the erally lower despite rising borrower definancial needs of the nation was played by mands. Thus, the flow of funds that was the banking system. Commercial banks in- given impetus by the offer of benefits for creased their outstanding loans and invest- savers brought about benefits for borrowments by a record $19 billion. The increase ers as well, and, I might add, for the entire in loans amounted to $14 billion; purchases economy. 122 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 123 To backstop and sustain that movement Yet we continue to be plagued by relaof funds—plus the still more massive process tively high unemployment and by a subof total bank credit extensions—the Fed- stantial deficit in our international balance eral Reserve provided the reserves required of payments. to support the considerable expansion of de- The number of people having jobs rose posits entailed. Indeed, it went beyond that, 1.2 million in 1962—and at the seasonal so that, at all times in 1962, the banks had peak of employment last summer there were an extra margin of reserves that would have almost 70 million people at work, suggesting enabled them to meet an even greater loan that we may indeed top the 70-million-job demand than actually materialized. Over the milestone this coming summer. Yet the avercourse of 1962, the Federal Reserve pro- age rate of unemployment declined only to vided a total of $ 1.9 billion of reserve funds, 5.6 per cent in 1962 from 6.7 per cent in through its payments for Government se- 1961. Furthermore, despite an increase in curities purchased in the open market, to industrial production to a level 8 per cent support bank credit and monetary expan- above the previous high in the first quarter sion. For this purpose, it also released in of early 1960, the number of workers on late autumn another $750 million in bank the production lines of the nation's factories reserves by reducing from 5 to 4 per cent declined 500,000, or 4 per cent, in the same the reserves required against savings and period. time deposits. And even though continuing efforts to re- Bearing in mind that the course of the duce the deficit in our international payeconomy is determined by a whole complex ments registered some success, the gap beof individual, business, and Government de- tween our payments abroad and our receipts cisions in which monetary policy plays only from international transactions continued a modest part, it seems to me that the Fed- large for the fifth consecutive year. In 1962, eral Reserve System did just about what that deficit is now estimated at somewhat could and should have been expected of it more than $2 billion, even though it was in 1962. Monetary policy most certainly did held down, as it had been the year before, not provide—nor could it have provided—a by large prepayments by foreign governsolution to the major economic problems ments of long-term debt to the United which confronted us during the year. But States. Noteworthily, imports of merchanit did contribute to credit conditions that dise, given impetus by expansion in the were, I think, conducive to that end. American economy, rose more than exports. The American economy progressed in In consequence, the trade surplus on which many respects in 1962. For the year as a we count to help cover our military expendiwhole, gross national product (in constant tures abroad, foreign aid programs, and our dollars) rose 5 per cent, industrial produc- capital outflow narrowed to less than $4.5 tion nearly 8 per cent, nonagricultural em- billion in 1962, compared with nearly $5.5 ployment 2 per cent, personal incomes 6 per billion in 1961. cent, and corporate profits 12 per cent. Con- Let me say here that providing a sound sumer prices rose 1.2 per cent during the financial basis for healthy growth in the year, but wholesale prices remained virtu- United States and maintaining international ally unchanged. confidence in the dollar as a reserve cur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 rency are but two sides of one indivisible tend further credits. Taken altogether, the problem. There is no set of policies that is banks continue to have more reserves than truly good for the domestic economy, but they are required to carry, and only a very bad for the dollar; and there is no course of small fraction of these excess reserves are action that is really good for the dollar, as attributable to borrowing from the Federal an international currency, which is not good Reserve System. In other words, the banks for the American economy. as a group have a considerable margin of There is the tendency to speak of interna- "free reserves." They also have a sizable tional versus domestic goals. This seems to portfolio of near-term Government securime to be only the latest version of a series ties that they can use to raise further funds of problem formulations in terms of un- for loan expansion as opportunities to extend realistic alternatives. Over the years, we have private credit arise. seen counterposed full employment or price In the language of the market place, the stability, social objectives or financial ob- posture of monetary policy has been and rejectives, and stagnation or inflation. In the mains "easy." At the same time, we have last case there was even serious discussion tried to avoid placing banks in a position of the number of percentage points of infla- which would impel them to reach beyond tion we might trade off for a percentage point the bounds of prudence and good financial increase in our growth rate. The underlying judgment in extending credit. We have tried fallacy in this approach is that it assumes to keep enough "give" in the credit structure that we can concentrate on one major goal to meet the growing needs of the economy, without considering collateral, and perhaps but not so much as to encourage speculadeleterious, side effects on other objectives. tive excesses. This program has served the But we cannot. If we were to neglect inter- dual purpose of maintaining the soundness national financial equilibrium, or price sta- of domestic credit developments and at the bility, or financial soundness in our under- same time lessening incentives to transfer standable zeal to promote faster domestic short-term funds abroad. growth, full employment, or socially desir- Keeping day-to-day policy in consonance able programs, we would be confronted with with these basic System objectives is a nevergeneral failure. ending process of evaluating the contin- In the search for an appropriate policy in uously changing scene, on both the domestic the monetary sphere, many factors must be and international economic and financial weighed together to strike a balance. There fronts. One of the great strengths of the is no ideal policy that will solve at one and Federal Reserve System is that it has a 7-man the same time the balance of payments Board of Governors and 12 regional Reproblem, the unemployment problem, the serve Banks from which a wide variety of growth problem, the wage-price problem, views is brought to bear on all monetary the profit squeeze problem, the housing decisions. problem, or any other problem—for none of Quite naturally, and I believe quite helpthese problems can be attacked in isolation fully, there have been some differences of through monetary policy. view in the System over the precise course of As we enter 1963, the banking system current action most likely to achieve the obcontinues to be in a favorable position to ex- jectives upon which we have been mutually Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 125 agreed. On several occasions some members writer x put it—very well, I thought—in a of our Open Market Committee have felt recent column: that we would contribute more to the The method of financing the deficit can (1) lay achievement of healthy expansion by increas- the base for another inflationary upsurge and weaken the dollar's value. Or it can (2) have some ing slightly the availability of reserves, while stimulating impact on the economy, just because others have felt that the situation, particuthe government is putting more money into our larly for balance of payments reasons, called pockets than it is taking out in taxes. But it must for a modest move in the opposite direction. not flood the business stream with extra money, Yet the range of these differences was nar- set off another speculative spiral, or undermine the row and consequently the differences be- dollar's value here or abroad. This is the crucial point, but it is so much in tween the policies adopted and the alternathe sphere of technical high finance tives proposed were, typically, quite small. —and mind you I am still reading from the It is not my practice to attempt to forearticle— cast the future course of economic events or that very few people out of Washington grasp to comment on the monetary and credit poliwhat it means. cies that would be appropriate to them. Over Consider what is happening to this year's budget the years I have found that viewing the ecodeficit. nomic prospects for the United States in the We are running a budget deficit now estimated year ahead with cautious optimism is as at $8.3 billion. Most of the money to cover this good a working assumption as I have been deficit already has been borrowed by the Treasury. How has it been borrowed? Almost entirely outable to discover. I agree with the statement side of the banking system—which is the heart of in the President's Economic Report that the whole matter. the broad outlook is for continued moderate United States corporations have bought large expansion. amounts of the Treasury's short-term securities Without in any way retreating from my and have put their extra cash into Treasury I.O.U.s instead of spending it. Foreign investors and forposition of cautious optimism, I would like eign central banks have bought big chunks of the to call attention to three things that concern Treasury's I.O.U.s and have been investing their me as I review our national situation and its extra cash instead of spending it. There is nothing prospects. First, the problem of financing inflationary about these operations at this time. the large Federal deficit that seems inevitable Had the Treasury borrowed the money from the for fiscal 1964, whether or not the tax re- United States banking system, though, the picture could be drastically different. For when banks buy ductions recommended by the President are the Treasury's securities, they simply place a deenacted. Second, the problem of finding an posit in the Treasury's name on their books; they economically sound and workable program put up only a fraction of their own cash. When to reduce unemployment and to take care of these deposits in the Treasury's name are on the those who, despite their efforts to find work, books of the banks, the Treasury has the money to spend. are caught in a maelstrom of economic As the Treasury spends the money for goods and forces that causes them prolonged joblessservices, the extra cash goes into the hands of the ness. Third, and finally, the problem of public in the form of profits and paychecks. This achieving a satisfactory equilibrium in our means the nation has more buying power—and unbalance of payments. less the supply of goods and services also rises, the Let me take first the matter of deficit 1 Sylvia Porter, The Evening Star (Washington, financing. As a widely read financial D. C). Jan. 28, 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 base for potentially inflationary price increases is hand, there is a reciprocal obligation on the established. part of the Treasury to conduct its opera- Today, there are no shortages of goods and tions with recognition of the Federal Reservices. Today, the supply of money and credit is serve's responsibility for healthy credit and ample, but it is not flooding the business stream. The Treasury has managed its borrowing in a economic conditions, and for stability of the primarily non-inflationary way. The Federal Re- dollar. The Treasury obviously would not serve System has kept its control over the money expect the Federal Reserve to inflate the supply. The result is that price inflation is hardly money supply, thereby putting the entire a problem now. . . . economy in jeopardy, merely so that the This year's $8.8 billion deficit is not causing in- Treasury could get money at an artificially flation. Next year's deficit need not do so either. low rate. So, with complementary responsi- It all depends on how the deficit is financed. bilities, the Federal Reserve and the Treas- As a comment of my own, let me add that, ury must work together in complementary in my judgment, the Open Market Com- fashion. Neither can ignore the forces of mittee of the Federal Reserve System would supply and demand that are reflected in the be derelict in its responsibilities were it—in market place. Instead, both must assess marthe light of a large deficit—to add to bank ket forces and determine their policies acreserves and to bring about substantial credit cordingly. expansion solely to facilitate the financing of The accommodation of the Treasury's the deficit. It would be improper to risk financing needs, without disrupting the unsettling the balance of payments or to money and capital markets, is always one tempt banks to make imprudent investments important objective of Federal Reserve through a sudden expansion of liquidity. policy. But this does not mean that bank Above all, it would be ill-advised to gen- credit should be expanded automatically by erate the danger of inflation, either long-run the amount of each Treasury issue that goes or short-run, by creating redundant dollars, to market. Our objective at all times must in order to make easier the financing of a be, as it has been in the past, to foster deficit. growth and employment, a stable value for the dollar, and equilibrium in the balance of In our system of government, it is the duty payments. and responsibility of the Congress and of the This question of financing deficits has President to make the decisions on Governraised, and will doubtless continue to raise, ment expenditure and tax policies by which troublesome semantic problems. The word the size of Federal deficits is determined. "saving" has many meanings. As I pointed Determination of those policies is not the out to your committee last summer, the total responsibility of the Federal Reserve, but the expansion of bank credit in our financial System does have a responsibility in helping structure reflects both savings placed with to finance any deficits. It is the manner in banks as intermediaries and the creation of which help is provided that is critical. money through the expansion of demand de- So, seeing to it that the Treasury is able posits. After the fact of creation these deto carry out its borrowing operations in an posits become incorporated in our accountorderly manner is an obligation binding ing of financial savings. upon the Federal Reserve. On the other Once the semantic difficulties have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 127 cut through, the difference of view among and growing levels of long-term unemploythoughtful people seems to me to be very ment among certain groups in our populasmall. I have never said that there should be tion in good times and bad indicates some no monetary expansion in a year in which very serious imbalances between the dethe Federal Government is incurring a veloping demand for labor and the existing deficit, and, as the Council of Economic supply. Advisers points out in its Report, no one Demands for labor must be sufficient in seriously contemplates that the Federal Re- total terms. But the characteristics and locaserve should increase bank reserves in an tion of workers who are seeking employamount equal to the deficit. What we should ment must also be suited to those demands. do, and will try to do, is to maintain con- Actions taken to upgrade the work force, ditions of reserve availability in the banking to increase its mobility and productivity, system which will help to match the rate of will make it much easier for unemployed total bank credit and monetary growth to workers and new workers to meet the rethe needs of the total economy. This is not quirements of rapidly changing technology financing deficits with bank created money. and job demands. Nor is it offsetting or stifling any construc- In the recession-recovery periods since tive impulse to economic expansion that may 1953 the same underlying employment patflow from tax reduction. terns have recurred. Although total employ- Let me turn now to the second of the ment and industrial production rebounded in problems I have singled out for special men- 1962 to new record levels, as after each of tion. Unemployment is a complex problem the preceding recessions, the number of facthat has no simple solution. Many workers tory and related industrial workers required have gone through the cyclical ups and to produce an increased volume of goods dedowns of the postwar period with little di- clined. In contrast, in service occupations, rect experience with unemployment, while both private and public, employment has some groups of workers have suffered severe continued to expand and new employment hardship from it. Large clusters of unem- records are set month after month. ployment have plagued certain communities, As we look toward the future, two feaoccupations, age brackets, and racial groups. tures of special importance may complicate The continuing high levels of persistent efforts to achieve low unemployment. First, unemployment reflect a combination of de- technological changes in the economy have mand and structural forces. We need a had an important influence in sharply alterhigher rate of sustainable growth to absorb ing the character and content of job opporthe unemployed and provide jobs for a rap- tunities. These changes are bound to conidly growing labor force, and fiscal and tinue, perhaps at an accelerated pace. They monetary policies can help to bring that foreshadow a further rapid upgrading in the about. But other measures are needed to demand for labor which will outpace the deal with structural problems. upgrading of the labor supply. The transi- Unemployment is not merely a count of tion to new jobs will be slow and difficult interchangeable units of labor. The unem- for the displaced worker. Action will be ployed are people whose characteristics and needed to ease the burdens of those who abilities vary greatly. The existence of high become unemployed lest restrictive work Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 practices reduce productive efficiency. ing the composition of the labor supply to Second, we also face the inescapable chal- meet the changing needs of our economy. lenge of a faster growing population of At the same time, of course, I recognize that working age. Many more jobs will have to be we need also to pursue fiscal and monetary found each year. About a million and a policies that will help to encourage growth quarter persons are expected to be added to in the total demand for our labor force. The the labor force in each of the next 5 years important thing, as I stated to this commitcompared with only about 800,000 in the tee 2 years ago, is to proceed simultaneously, past 5 years. By 1965, the burgeoning popu- on the one hand, to invigorate the economy lation of 18-24 years of age will account for and, on the other, to alleviate unemploymore than half of the annual growth in the ment resulting from structural changes. labor force. Unemployment rates are now Finally, let me comment briefly on our very high among these young people, espe- balance of payments problem. At the begincially those with insufficient education. The ning of my remarks, I pointed out that ballong anticipated expansion in demand for ance in international payments is not a goal homes, cars, and all sorts of goods and serv- that monetary policy can pursue apart from ices will hardly materialize if we fail to find its domestic goals. Indeed, the objective of job opportunities for our growing popula- payments equilibrium must be achieved at tion. the same time we are achieving orderly and The likely characteristics of unemploy- vigorous economic growth domestically or ment caused by structural change in the we will risk achieving neither objective. coming years also indicate the need for a As a result of five large successive deficits, wide range of approaches by State and local we have transferred to foreigners some $7 governments, the educational system, the billion from our monetary gold stock and parties to collective bargaining, and other added another $9 billion to our liquid liaprivate organizations. Foremost is the need bilities. Through a combination of market for continued increases in the productivity processes and through some shifting in the and quality of our work force to meet the balance of Government transactions, we rapidly changing content of jobs. For our have made progress in lowering the size of youth we must provide better vocational our deficit. But I agree with the view exguidance and greater opportunities to get pressed recently by your subcommittee, training for skilled and professional work. under the chairmanship of Mr. Reuss, that Experimental programs for training and this progress had not been satisfactory. Acretraining unemployed workers have had cordingly, we must more firmly pursue those some success in increasing skills and occupa- policies that hold promise of eliminating our tional mobility. Such training should be payments deficit and establishing a viable given to more of the unemployed. More in- equilibrium in our international accounts. tensive efforts are required to get unem- The volume of Government expenditures ployed workers in depressed areas to areas abroad—for economic aid to the less dewhere jobs are available. veloped nations and for the defense of the The reduction in unemployment which we free world—is and must be determined by are able to achieve will continue to depend broad considerations of national interest and importantly on the success we have in shift- security. The administration has been press- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS; MONETARY POLICY AND THE ECONOMY 129 ing with some success for a greater sharing of deficit since 1959 comes from the relative these burdens by our allies. As your Sub- stability of prices and labor costs in this committee has recommended, continued ef- country as compared with those in Europe. forts in this direction are certainly appro- Our national financial policies have a vital priate and will be made, I am sure. role to play in strengthening our competitive But correction of the imbalance in our in- position internationally, both in markets for ternational transactions requires persistent goods and services and in investment potenimprovement in the competitive position of tial. Fiscal policy will need to avoid, on the our export industries and our industries one hand, a too heavy burden on economic competing with imports, and a related in- incentives to invest and consume and, on the crease in the attractiveness of investing in other, budget deficits too large to be financed the United States compared with investing without inflation. Monetary policy will need in other industrial countries. This method to facilitate the meeting of legitimate bank can be effective only in the long run, but in credit demands in our growing economy, but the long run it is bound to be effective. Its it must avoid a domestic monetary expansion accomplishment, however, requires the com- so rapid as to induce rising costs and prices, bined efforts of all of us. unwise speculation, and excessive capital Business management has a vital role to outflows to other countries. play because of its organizing role in a pri- In connection with our balance of payvate enterprise economy. Businesses must ments problem, we need always to keep in meet the test of constant adaptation to the mind the central role that the dollar plays most efficient production techniques, and in the international payments system and the they must design and price their products fact that this role is founded upon freedom with a view to the widest profitable distri- from exchange restrictions. Whatever tempobution at home and abroad. Competitive rary advantage might be gained for our pricing is vital. payments deficit by direct controls over our Moderation in wage demands is also vital international transactions would be more to our international competitive effort. Sus- than offset by the damage such controls tainable increases in wages can be achieved would do to the widespread use of the dollar only within limits of realizable increases in in settlement of international transactions. productivity. And we need to remember that With the economies of the free world beover-rapid increases in labor costs add to the coming more closely knit together by an inproblem of unemployment by creating exag- ternational payments system based on congerated incentives to economize on the use vertible currencies and open competitive of labor. markets, cooperative international efforts are To me, an encouraging development of needed to restore and maintain payments recent years has been an increasing aware- equilibrium and to guard against disruptive ness by both business and labor that these exchange market developments. Fortuconsiderations—which were always in their nately, the need is widely recognized and the own interest—are now urgently in the na- responsibility widely accepted. tional interest because of our difficult pay- This past year the Federal Reserve Sysments position. Part of the progress we have tem gave formal recognition to this responbeen able to make in reducing the payments sibility by inaugurating foreign currency op- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 erations under the supervison of the Fed- lar following its devaluation in the spring, eral Open Market Committee. This action and of the unsettlement of international marput the System in a position to intervene in kets occasioned by the Cuban crisis. And to the exchange markets for the protection of the extent that the world's payments system the dollar under conditions of transitional absorbed these adverse developments with unsettlement of those markets arising from little unsettlement, the impact of these devolatile shifts in the stream of international velopments on the domestic financial marpayments. The System has further supported kets was also cushioned. its participation in foreign currency opera- From my remarks today, it should be tions by cooperating more actively and di- clear that the year 1963 will confront us with rectly with the central banks of our principal important and difficult problems. We must trading partners and with international or- work toward a solution of structural unemganizations playing a coordinating role in ployment at the same time that we genthe functioning of the world payments erate more aggregate demand for our mansystem. power by healthy over-all expansion of the Because of our balance of payments situa- economy. We must finance our prospective tion, the newly inaugurated Federal Reserve deficit in a noninflationary way. And finally, operations in foreign currencies have con- we need to make decisive gains in restoring centrated this past year on the establishment our balance of payments equilibrium. If of a network of mutual currency credits with your review a year hence shows substantial other central banks, principally on a stand- progress in meeting these problems, it will by basis. We now have arrangements total- indeed be a gratifying occasion. ing more than $1 billion with the central banks of Europe and Canada and the Bank for International Settlements in Basle, which are capable at our call of providing foreign Statement of George W. Mitchell, Memcurrencies to that amount if needed to meet ber of the Board of Governors of the Fedundesirable exchange market developments. eral Reserve System, before the Joint Eco- It is our hope that these arrangements will nomic Committee, February 1, 1963. remain a useful international device and a continuing symbol of active cooperation in Two problems—slack growth in the dopreserving and strengthening the world pay- mestic economy and an adverse balance of ments system. payments in our international accounts— Closer cooperation among leading central now occupy the stage of economic policy banks has already contributed much to discussion. Not so many years ago, a pergreater resiliency and flexibility of the sistently rising price level and an apparent world's payments mechanism. This was dem- dollar shortage in the world economy were onstrated in 1962 by its absorption of the the dominant problems of such discussion. shock of sharp worldwide decline in equity Though the problems have changed, the values in the late spring and early summer, tools to deal with them are unchanged: fiscal of the potentially disruptive effects of the policy, monetary policy, and structural difficulties encountered by the Canadian dol- alterations in particular institutions, prac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 131 tices, or programs. The mix of these alterna- space, and international requirements and tive and complementary approaches de- the needs of our rapidly growing population. pends on varying judgments of their rela- Total construction expenditures have been tive efficacy and on the current economic en- running at record highs, and the recent volvironment and outlook. In my remarks ume of contract awards suggests a continued today, I want mainly to focus on the recent high level of construction activity in the role of monetary policy in coping with both period ahead. problems and to suggest in very general The expansion in final sales, if continued, terms the role that monetary policy might should soon call for a higher rate of indusplay in the developing situation. trial output and should serve to augment Much of the commentary on the recent business demands as well. Business invenperformance of the U.S. economy has noted tories, for example, have changed very little that 1962 was the most prosperous year in in recent months, but with final sales up our history. This is true but not especially strongly, some restocking to accommodate notable. Real output per capita rose during a larger volume of business may now be in the year but 1 per cent. Total output in- order. creased less than 3 per cent from the end of The outlook as regards business capital 1961 to the end of 1962 even though we had outlays is more doubtful. The rate of exexcessive unemployment and idle plant ca- pansion in such outlays last year was disappacity throughout the year. pointing, reflecting mainly the lack of pres- At the same time, the continuing deficit sure on existing productive facilities, and the in our balance of payments acted as a con- official surveys project a small decline in the straint on efforts to stimulate higher levels current quarter. But operating rates in many of domestic economic activity. A trade sur- industries have been inching upward, and it plus of between $4 billion and $5 billion seems to me that the combination of rising was exceeded by our payments abroad on final sales, continued high-level profits, and account of private capital, military outlays, the considerable incentives provided by the and foreign aid. To reduce this deficit is a tax-credit and accelerated depreciation acmost pressing problem for the year ahead. tions last summer and the prospective tax reduction for this year should give renewed BUSINESS OUTLOOK impetus to investment plans and outlays as At the moment, it seems to me that the im- the year progresses. mediate economic prospects are favorable— The basis for accelerated economic exmore favorable than for some time past. pansion which I have sketched here owes Spurred by the excellent public reception of much to the dramatic turn in business and the 1963 model cars, retail sales rose sub- public psychology which followed the quick stantially in the fourth quarter, and con- and successful conclusion of the Cuban sumer demand generally now appears more crisis. Since then, the pronounced recovery vigorous than at any time during 1962. Gov- in stock market prices, the more buoyant aternment purchases, especially at State and titude of consumers revealed by recent surlocal levels, are clearly destined to continue veys, the strength in new car sales and housupward, under the pressure of our defense, ing starts—all point to a marked improve- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 ment in the business tone. It is important rose by large amounts and this would seem to note also that the stimulating effect of tax to indicate that monetary policy was strongly reduction on consumer buying and business stimulative; but (2) the money supply rose investment plans will be buttressed by the very little for the year as a whole, and not record increase last year in public holdings at all until the fourth quarter, and its rate of of liquid assets and by the ready availability use increased sharply, suggesting that moneof credit on relatively favorable terms. tary policy was not actively expansionary. I have characterized the balance of pay- When analyzed in the context of other dements problem as a most urgent issue. I say velopments during the year, these facts this because delay in its solution increasingly seem to me to show that monetary policy exposes us to pressure from our creditors was inhibited throughout much of the year and because it inhibits our freedom to stimu- by balance of payments considerations and late a sluggish domestic economy, which was less stimulative than was appropriate has performed below par for several years. to the domestic situation. I fully agree with those who say that we All of the monetary and credit magnicannot neglect either the domestic or the tudes for 1962 were significantly affected by international problem as we pursue a solu- the upward movement a year ago in the tion to the other. On the other hand, the interest rates paid on commercial bank time two problems may call for different types of deposits, following the change in the Board's solution. Regulation Q. In order to interpret and ap- In these circumstances, what contribu- praise monetary developments during the tion can monetary policy make to achieve- year, it is vital to disentangle the various ment of fuller use of domestic resources and effects of this change, which enabled comto improvement in the balance of payments? mercial banks to attract a large inflow of time and savings deposits. MONETARY POLICY IN 1962 Where did these time and savings de- The bare financial facts usually used in an posits come from? Do they represent in efevaluation of monetary policy over the past fect a net addition to the community's stock year are as follows: While GNP in current of money, which the public chooses to hold dollars rose about 4 per cent, bank credit— as time rather than as demand deposits? Or, that is, total loans and security holdings of does the build-up in time deposits reflect a commercial banks—increased about 9 per rechanneling of the flows of saving, as the cent. The money supply, narrowly defined as public decided to hold more of its financial currency and demand deposits, increased assets in the form of interest-earning deabout 1.5 per cent, but time and savings de- posits at commercial banks and less of its posits went up 18 per cent. The rate of turn- financial assets in the form of securities and over of the money supply increased about deposits in other institutions? 8 per cent. Market interest rates were rela- I believe it is correct to say that a sizable tively stable over the year, as long-term fraction of the build-up in time and savings yields crept downward and short-term rates deposits at commercial banks last year edged up. simply represented a shift in the public's On the surface, these facts are conflicting attitude toward the commercial bank as a in that (1) bank credit and time deposits financial intermediary. We know, for ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 133 ample, that individuals acquired a consider- pense of these other outlets for savings, the ably smaller volume of State and local gov- resulting increase in bank assets and deposits ernment bonds and corporate stock in 1962 does not represent injections of new money than in earlier years, even though their total and credit into the economy. savings increased. It is reasonable to think Finally, there is no doubt that the advance that as individuals reduced their purchases in bank interest rates induced some inof securities, they put the funds into time dividuals and business corporations to shift and savings deposits, on which interest pay- from demand deposits to interest-earning ments were now higher. Similarly, corpora- time deposits at commercial banks. That is, tions acquired a substantial volume of newly the attractiveness of a prominent nearavailable negotiable certificates of deposit at money asset was enhanced, and the public commercial banks in 1962. These funds, too, was thereby induced to economize further would presumably have gone directly into its holdings of cash balances. Or to put it Treasury bills and other short-term securities differently, as bank credit expanded in 1962, if they had not gone into commercial bank the public found it desirable to place the time accounts. monetary counterpart of the credit expan- What happened, in other words, was that, sion into time and savings deposits. To the to a degree, the public chose to invest in- extent that such conversions occurred, our directly through acquiring commercial bank comparative statistics on money supply fail time balances rather than directly by pur- to take into account the increased substituchasing securities. The banks' role as finan- tion of time for demand deposits. cial intermediatries between savers and It is unfortunate that we are unable to credit market was thereby enlarged. To the measure and compare these various comextent that this happened, the resulting in- ponents of the build-up in time deposits. All crease in total bank deposits and total bank we can say is that the growth of total bank assets should not be regarded as constituting credit and deposits exaggerates the degree of monetary expansion or as contributing to monetary stimulus in 1962, while the growth total credit expansion. Rather, it represented of money supply understates the contribumerely a rechanneling of the financial flow tion of monetary policy to economic expanof funds, as the public exchanged securities sion. Let us, therefore, examine two other for bank time deposits. variables that usually express the extent to Another portion of the increase in com- which the economy has been supplied with mercial bank time deposits includes funds new money and bank credit. that would have gone into other savings in- The turnover of demand deposits, a measstitutions if commercial banks had not raised sure of the velocity or rate of use of money their rates. Although deposits at mutual balances, has trended upward in the postwar savings banks and shares at savings and loan period. If we look at the cycles around this associations increased substantially in 1962, rising trend, we find that they conform rather they might have gone up even more if com- well to the business cycle. We also find that mercial banks had not become more attrac- turnover has generally increased faster in tive as savings depositaries. Here again, to years of monetary restraint and slower in the extent that commercial banks increased years of monetary ease. In the year just their role as savings institutions at the ex- ended, the rate of turnover rose by as much Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 as it did in some earlier years of vigorous the duration, and cutting down the amplieconomic expansion and restrictive mon- tude, of cyclical downswings and extending etary policy. I take this as an indication that the period and amplitude of upswings. The the public has not been supplied with re- secular tilt of the economy is more approdundant amounts of new money in relation priately the concern of fiscal actions and to its transactions and income. structural reforms. This observation is confirmed by what happened to interest rates in 1962. As I BALANCE OF PAYMENTS CONSIDERATIONS noted earlier, short-term rates crept up dur- Just how is monetary policy constrained by ing the year. Although long-term rates sank balance of payments considerations? Since a little, they remain high by historical stand- 1961 the objective has been to maintain a ards. Reflecting, as they do, the interaction level of short-term interest rates in the of the supply of funds with the demand for United States that is tolerably competitive, funds, interest-rate movements in 1962 re- exchange risk considered, with the level of veal to us that the supply was not pressing short-term rates in other money markets, very strongly on demand. mainly in London and, to a lesser extent, All in all, therefore, I would character- Western Europe. This competitive level has ize monetary policy in 1962 as having been succeeded in limiting, though not eliminatpassively responsive to the bank credit and ing, incentives that U.S. banks and corporamonetary needs of the economy but not tions, or foreigners with short-term dollar actively stimulative. And this judgment is holdings, would otherwise have to add to the borne out by the fact that it was not until U.S. balance of payments deficit by switchthe final quarter of the year, when business ing from short-term dollar investments to and consumer psychology strengthened and short-term investment abroad. business loan demand picked up, that money Flows of funds of this kind are sometimes supply rose. It was at this point that the interpreted by important dollar holders, economy overtook the monetary posture of domestic as well as foreign, not as ratesupplying reserves on terms consistent with conscious money seeking gain from interest a short-term rate pattern based on balance differentials, but as the consequence of apof payments considerations. prehensions about the strength of the dollar. Could monetary policy have done more to Thus, monetary policy has in effect been encourage economic expansion in 1962? I directed at maintaining a psychology of inbelieve that the answer is "yes" but judg- ternational confidence in the dollar. ments may differ on this—and particularly This is a perfectly proper objective for would they differ as to the consequences on monetary policy to pursue, but it is not one the balance of payments. The range of dif- that can have a significant impact on correctference is not very wide and would not ing whatever basic imbalance exists in our cover, so far as I am concerned, a sufficiently trading-investing relationships with the rest aggressive monetary policy to have single of the world. And it is only through changes handedly restored the economy to full use in these basic factors that a real solution to of its resources. As far as long-run growth is the problem can be achieved. Can monetary concerned, the major contribution that policy also play a role here? First, as to inmonetary policy can make is in shortening vesting relationships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 135 A number of domestic and foreign ob- the direct foreign investments of U.S. busiservers have noted that our international ness could only be significantly effective at transactions on current account and Govern- the expense of declines in other closely ment economic aid have in fact given rise to linked sectors of the domestic capital marnearly equal U.S. payments and receipts in kets and therefore domestic expenditure. recent years. In consequence, they have Other flows of capital are probably more identified our deficit on all transactions with responsive than direct investments to changes our deficit on private capital account. They in credit and interest-rate conditions, but have argued that in order to bring our over- some of these flows, too, are less responall payments flows into balance, we must sive than is often supposed. Much foreign sharply reduce net outflows of private cap- borrowing last year, for example, through ital. They have thought this result might bond issues in our markets—the second readily be accomplished by a tightening of largest category of capital outflow—was by monetary policy and a rise in interest rates. foreign governments whose demands for ex- I would not deny that reduced credit avail- ternal funds were not very flexible because ability and higher interest rates might have they could find no other international capital some significant and lasting effects in reduc- market open and able to accommodate their ing net capital outflows. They could; but transactions. Also, a good deal of lending much depends on the circumstances. In the abroad by U.S. banks was associated with economic environment of today, my judg- U.S. exports whose financing could not ment is that it would take more monetary readily be transferred to foreign credit maraction than is desirable to significantly cur- kets. tail net capital exports. Furthermore, it can hardly be argued that The largest outflows of U.S. capital rep- reduced credit availability and higher inresent direct investments by U.S. corpora- terest levels could have big effects on intertions in foreign branches and subsidiaries. national capital flows but only minor effects Basically, these investment decisions must on domestic credit flows. To have tightened take into account the relationship between monetary policy last year enough to have long-term interest yields on market invest- exerted significant restraint on those outments and the prospective profit yield of a flows of capital that are responsive could, in particular investment. If credit conditions my judgment, also have had a strong brakin this country should tighten as a result of ing effect on the lagging domestic economic vigorous, but noninflationary, domestic eco- expansion. nomic expansion in which the relative profit- How could monetary policy be used to imability of investment in this country was prove our basic trading position—to make rapidly improving, then indeed U.S. firms our exports of goods and services more comwould invest more at home and less abroad, petitive? There is traditional orthodox preand foreign capital, too, would be attracted scription for a certain situation. The classical here. But if last year's climate of less than case for the application of "monetary disvigorous growth, with some slack in re- cipline," so called, is that in which a country source use, were to continue and credit con- is suffering from excess demand and is atditions were tightened by restrictive mone- tempting to deal with the twin phenomena tary policy alone, a large retarding effect on of inflation at home and a deficit abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 Here monetary restraint has the dual pur- or desirable for advanced countries, with balpose of tempering the climate of the domes- ance of payments surpluses, to have recourse tic economy and reducing the deficit in the to our capital market on the recent large international accounts. But our current do- scale while they restrict and hamper entry of mestic problem is not one of inflation but of outside borrowers to their own capital marlagging expansion, and to attack the balance kets. If these countries are unwilling to open of payments problem with stringent mon- their capital markets, possibly we should etary measures would risk imposing a costly look toward tax measures that might help to drag on an already sluggish pace of eco- remedy this unbalanced position. In general, nomic growth. we need to explore the possibilities of various Thus, the role of monetary policy can be, tax measures that might, consistent with under present circumstances, only of limited our obligations as an international good effectiveness in dealing with the basic bal- neighbor, and with the status of the dollar ance of payments problem just as it is of as a world reserve currency, discourage caplimited effectiveness in dealing with the do- ital movements that appear to flow "uphill" mestic problem of lagging long-run eco- to countries that are already capital-rich. nomic growth. We also need to explore the possibility In the past 2 years a good deal of direct that tax measures might be used to encourattention has been given to the conditions age exports. As a matter of principle, there and environments which can be altered to is no good reason why our exports should improve our basic international economic bear U.S. taxes. Taxation is a means by position—through the reduction of tariffs, which we pay for government services. Why lowering of barriers to capital outflow by should foreign purchasers of our exports other high-savings industrial nations, the help to pay for the services provided by the tieing of foreign aid, and the fuller sharing of U.S. Government to its citizens, and why free world burdens for mutual security. But should our exporters be expected to be so the situation fails to show the degree of im- competitive that their product prices have to provement needed to clearly indicate to the absorb U.S. as well as foreign taxes and rest of the world our capacity and intent to tariffs? reach an equilibrium payments position. We It may be that foreign countries in their probably should be giving consideration to tax policies also discriminate against their alternatives that up to now have been re- nationals' exporting activities. This is not jected. easy to ascertain given the complication of For example, we might consider a more various national, State, and local tax laws direct attack on the capital outflow prob- and conditions under which tax burdens are lem. The United States has the largest and shifted to customers. But the discrimination most accessible capital market in the world, against exporters of our country can hardly be doubted. and it ought to be kept free of exchange restrictions. It is proper and desirable that MONETARY AND FISCAL POLICY IN THE capital-poor developing countries should YEAR AHEAD utilize this market to meet a portion of their If the proposed tax reduction is successful in enormous needs for foreign capital. It is not stimulating more rapid economic expansion, so clear, however, that it is either necessary bank credit and monetary needs will in all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 137 likelihood accelerate. Business demands for ing monetary policy in relation to deficit loans will increase, consumers will impose financing, what matters most is not whether larger calls on credit markets, and the Treas- the banks or the nonbank public purchase ury will be financing an enlarged deficit. In the securities to finance the deficit, but such circumstances, the supply of bank whether the economy as a whole is provided credit and money can increase without with a volume of money and bank credit condownward pressures on interest rates and sistent with sustainable expansion at relaaggravation of capital outflows. In fact, bank tively stable prices. This is not to say that credit, the money supply, and interest rates the Treasury does not have a debt maturity might well rise more in relation to advanc- problem. Its market offerings need to be ing gross national product than in compar- fitted into a balanced structure of maturities. able periods of expansion. This is so because In financing an enlarged deficit, the Treasury monetary expansion has lagged during the may find it necessary at various points to past year. The fact that deposit turnover or compete with other borrowers in the different velocity has continued to rise rapidly over maturity sectors of the market. Under the the past year suggests that we cannot count economic environment that we hope to as much as in other recent periods on past achieve, the competition may prove to be monetary creation to satisfy future monetary strong and the Treasury should be prepared needs. to meet it. As to the question of how the enlarged budget deficit will be financed, I see this as a problem that can only be considered in the economic environment in which it occurs. The budget went into deficit during the re- Statement of Eliot J. Swan, President of cession of 1960 and, just as the recovery the Federal Reserve Bank of San Francisco, in the economy has been incomplete, the before the Joint Economic Committee, Febrestoration of balance in the budget has been ruary 1, 1963. incomplete. The past year's deficit has been successfully financed outside the banking I will not attempt to review the record of system. the economy in detail in 1962, since that has The proposed tax cut will enlarge the de- been done for you most capably by a number ficit, but gradually rather than all at once. of others. I will offer some general observa- In view of the purpose of the tax cut, which tions in this regard, however, for what they is to stimulate the economy, a consistent na- may be worth. tional policy would hardly call for monetary Since early 1961, we have had a broadly action to offset its effects if the economy con- based recovery, with remarkably few distinued to operate well below its capacity. tortions. The economy absorbed without Similarly, if excess demand develops, gen- serious difficulty a sharp stock market deerating inflationary pressures and psychol- cline earlier this year, took the Cuban crisis ogy, offsetting action by the Federal Reserve in stride, and shows little indication of unwould be clearly appropriate. Thus, the eco- sustainable growth or speculative weaknomic climate at the time should determine nesses in inventories or new plant and equipthe posture of our monetary policy. In judg- ment, the principal areas of fluctuation in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 the past. The index of wholesale prices has believe developments so extreme in either been remarkably stable, the behavior of direction are imminent, I do not believe that consumer prices not quite as satisfactory. At either might well be encouraged by an arbithe same time, however, over-all growth has trary and abrupt switch in monetary policy been disappointingly modest, the level of at this time. At this point, shift to really unemployment continues to be of real con- tight money could place a roadblock in the cern, and there seems to be no clear and im- upward path of the economy; a shift to subminent prospect of a significantly more rapid stantially easier money could contribute to upward pace of business activity. a loss of confidence in the dollar and to an The other pressing problem that has per- exchange crisis. Under present conditions, I sisted throughout the recovery is the deficit in see no alternative to making haste slowly our balance of payments. The improvement with monetary policy, frustrating as that may in 1962 over 1961 was disappointingly be to the impatient who hope for simple small, and there is clearly a considerable solutions to extremely complex problems. way yet to go to reach a satisfactory position. In no sense am I decrying the importance Despite these serious and persistent prob- of monetary policy. The wrong monetary lems, I believe monetary policy was reason- policy can do incalculable harm, and the ably satisfactory in 1962. Continued reserve right monetary policy can help to provide availability resulted in a record increase in a climate in which appropriate adjustments bank credit; longer-term interest rates de- can take place. However, no monetary polclined, in contrast to their behavior in other icy can directly make or assure such adjustperiods of rising activity; and short-term rate ments—nor should it, so long as we depend levels, in combination with foreign currency on the greater share of our economic deoperations of the Treasury and the Federal cisions taking place through market proc- Reserve, helped to discourage outflows of esses. short-term funds, whether for speculative In my opinion, monetary policy has been reasons or because of interest-rate differ- easy in 1962. Time deposits increased marentials. kedly throughout the year, and demand de- There are those who would say that the posits have risen significantly since August. level of unemployment requires a much Business spending, however, must be motieasier monetary policy, and there are those vated by prospective profits, which result in who would say that the balance of payments large measure from market opportunities situation requires a much tighter monetary that can be developed from new processes at policy. I fear that I could not satisfy either lower costs and new products. Some portion group of critics under present circumstances, of our unemployment appears most unlikely although I am fully aware that a significant to respond directly to increased demand. decline in business activity or a real loss of Job opportunities and unemployment unconfidence in the dollar leading to a run to fortunately may be found together, as eviother currencies and gold—neither of which denced by the demands of defense-related I hope will occur—might well raise con- industries on the West Coast for skilled persiderations of a marked policy shift in the sonnel, even though we have many people one direction or the other. While I do not looking for jobs in the same areas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS: MONETARY POLICY AND THE ECONOMY 139 Under present circumstances, relative ally be directed toward facilitating the flow price stability is doubly important; not only of funds in the money and capital markets to discourage unsound and speculative de- without inflation, and this is what the Fedvelopments in the domestic economy, but eral Reserve is seeking to accomplish. In this also to encourage our industries to become connection, the question of the degree to increasingly competitive throughout the which the prospective Federal deficit should world, if we are to increase exports further be financed through the banking system, relative to imports. But again, the search for which has been given further currency by the new markets in other countries and the deproposed tax reductions, involves the difvelopment of products and marketing efficulty of seeking an answer, in isolation, to forts that will expand markets abroad are a problem that cannot be isolated. I do not essential. Many other factors in the balance believe a categorical answer can be provided, of payments are also obviously outside of since the problem is really the ever-present the realm of monetary policy. The need for one of the sources of funds to meet total greater sharing of military and foreign aid credit demands, both public and private. burdens by our allies, for lowering of bar- This is a continuous process, involving a riers to our exports, and for removal of limicontinuing judgment about the relation of tations in foreign capital markets are bank credit expansion to the flow of saving familiar problems to all of you. and spending, the availability of labor and Certainly, I share the compelling concern other productive resources, the behavior of for economic growth. But growth that is not the price level, and our international ecosustainable, growth that creates imbalances nomic position. that lead to severe readjustments and recession, growth that does not reflect the mix of Monetary policy can assist significantly in goods and services desired by the American providing a climate or a setting favorable to people, as expressed both in the market and balanced and sustainable economic growth, collectively through the processes of gov- but such growth itself can only be the result ernment, is not an adequate answer. of a complex of factors related to the whole In the monetary area, policy should basic- range of private decisions and public policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Farm Debt as Related to Value of Sales This is the second in a series of articles Agencies cooperating in the debt Survey based on the debt portion of the Sample were the Department of Agriculture, the Survey of Agriculture conducted by the Bu- Farm Credit Administration, and the Fedreau of the Census in 1960. eral Reserve Banks. These agencies will also The article was prepared by Raymond J. publish reports on findings from the Survey Doll, Vice-president of the Federal Reserve data. Bank of Kansas City and Chairman of the The 1960 Sample Survey of Agriculture, System Committee on Agriculture. Other published by the Bureau of the Census, also articles analyzing the results of the debt por- contains a number of tables on farm debt. tion of the Survey will appear in future issues Among those contributing to this study of the BULLETIN. It is also contemplated were Fred Garlock and Philip Allen, Dethat the Board will publish a handbook of partment of Agriculture; Martin Planting, the more important statistics on farm debt Farm Credit Administration; and Wilellyn and related characteristics of farms and farm Morelle, J. H. Atkinson, Emanuel Melichar, operators and landlords. and Lewis N. Dembitz, Board of Governors. Innovation in agriculture, as in many same economic class who differ with respect other sectors of the economy, has resulted to these other variables. For example, for in increasing investment, output, and spe- farms of similar economic class, operators cialization in recent years. Capital resources in the West used more credit than operhave been partially substituted for labor and ators in the South.1 Except on the largest land resources. The number of small farms farms, younger operators used more credit has declined, and the number of large ones than older operators. Debt also varied by has increased. With these changes, the need tenure and type of farm within the same for farm capital and credit has increased. economic class. Analysis of data collected in the 1960 In this article, farm debt is analyzed by Sample Survey of Agriculture indicates that economic class of farm and other economic value of sales is an extremely important characteristics on the basis of data from the variable in determining the amount of credit Bureau of the Census' 1960 Sample Survey that farmers use. Thus, for analytical purposes farms are often grouped into "eco- 1 In tabulations of the Sample Survey, the West is defined to include North Dakota, South Dakota, Nenomic classes" with different levels of sales braska, Kansas, Oklahoma, Texas, and all States to volume. Subsequent evaluation of the data the west of these. The South includes Arkansas, Tenby region, tenure, type of farm, and age of nessee, Kentucky, Virginia, Maryland, Delaware, and States to the south, and the North encompasses the operator becomes more meaningful if comremaining States. Alaska and Hawaii were not inparisons are made among farmers in the cluded in the Survey. 140 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FARM DEBT AS RELATED TO VALUE OF SALES 141 of Agriculture. For information on the reli- In this article, references to economic ability of the data obtained from the Survey classes are to the groupings set up by the and the reasons for the differences between Census Bureau, with one exception: the Survey data and other estimates relating to group referred to as Class VIII is a combifarm debt see the technical note at the end nation of Census Classes VIII (part-retireof the article. ment farms) and IX (institutional farms and Indian reservations). ECONOMIC CLASSES OF FARMS Because of the limited size of the sample and of the necessity to avoid making esti- In the 1960 Sample Survey, the Census Bumates for small groupings where there would reau grouped farms into two major ecobe undue risk of large sampling errors, it nomic categories, commercial farms and was necessary to combine economic classes other farms, mainly on the basis of total when different cross classifications were value of products sold. In general, all farms made. In evaluating debt by such cross claswith annual sales amounting to $2,500 or sifications as region, source, tenure, type of more were classified as commercial. Farms farm, and age of operator, the economic with annual sales of $50-2,499 were classiclasses of farms were combined into three fied as commercial if the farm operator was categories—Classes I and II, Classes III under 65 years of age and (1) he did not and IV, and Classes V-VIII. work off the farm 100 or more days during the year, and (2) the income that he and Class I farms comprised 3.2 per cent of members of his family received from sources the total number of farms, but the operators other than the farm operated was less than of these farms worked 25 per cent of the the total value of farm products sold. The farm land, representing—together with commercial farms were further divided into buildings—more than 20 per cent of the six economic classes according to value of value of all farm land and buildings. They farm products sold, as follows: I, $40,000 produced 33 per cent of the total value of and over; II, $20,000-39,999; III, $10,000- farm products sold and collected 20 per cent 19,999; IV, $5,000-9,999; V, $2,500- of the net cash income from sale of farm 4,999; and VI, $50-2,499. products.2 At the other extreme for commercial farms, operators of Class VI farms ac- Noncommercial farms were divided into counted for 9.4 per cent of the total number three economic classes. Farms with sales of of farms but farmed only 2.6 per cent of the $50-2,499 were classified as part-time (Class land and collected 2.4 per cent of the net VII) if the operator was under 65 years of cash income from sale of farm products. age and he either worked off the farm 100 Between these extremes, the number of or more days in 1960 or the income he and operators on commercial farms increased members of his family received from sources through Class IV and then declined. The other than the farm operated was greater percentage of total resources employed and than the total value of farm products sold. volume of farm products sold, however, Farms with sales of farm products of $50- 2,499 on which the operator was 65 years 2 In computing net cash income from the sale of old or over were considered part-retirement farm products no cost was deducted for such items farms (Class VIII). Finally, all institutional as family labor and interest on operator's equity in the business. The relative importance of these nonfarms and Indian reservations were placed cash costs varies, of course, by economic class of in Class IX. farm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 tended to decline from Class I through VI. On the average, operators of Class I and Operators of Class VII and VIII farms— VIII farms without debt had a larger acreage the noncommercial farms—accounted for and handled a higher value of land and 30 per cent of all operators, farmed 10 per buildings than did indebted operators. In cent of the land, and collected 4 per cent of the other economic classes there was a tendthe net cash income derived from sale of ency toward the opposite situation, but the farm products. differences were not significant. The total amounts of income from off- Because credit in agriculture is used farm sources varied with the number of largely for financing nonlabor resources, it farmers in each class rather than with the was to be expected that the operators of the total size of their farm operations. There larger farms would use relatively large were more operators in Class VII than in amounts of the dollar volume of credit. The any other class and, by definition, they either indebted operators on Class I, II, and III worked off the farm 100 or more days in farms accounted for only 19 per cent of all 1960 or had larger incomes from nonfarm operators, but they used 65 per cent of all sources than from the sale of farm products. agricultural credit. Hence operators in this class received by far The data in Table 1 show the distribution the largest proportion of all income from of operator debt by economic class of farm off-farm sources. There were also many op- for total debt, major real estate debt, and erators in Classes III, IV, and V, and they non-real-estate and related debt.3 It should also received relatively large proportions of be pointed out that, to the extent non-realtheir income from off-farm sources. Largely estate debt may have been underreported by definition, operators of Class VI farms more than real estate debt in the Survey, received an unusually small proportion of comparisons of these two types of debt may such income. Had they received very large not be fully accurate. off-farm incomes they would have been con- The average debt per indebted operator sidered part-time farmers (Class VII). was closely related to class of farm. For those on Class I farms the average debt was VARIABILITY IN FARM OPERATOR DEBT 23 times as large as that of Class VI opera- According to the Sample Survey, the opera- tors (the smallest commercial unit). The tors of 58 per cent of the farms in the United average size of operator debt on the larger States at the time of enumeration had some 3 Major real estate debt is defined to exclude realdebt (Table 1). A relatively large proporestate-secured debt owed to production credit association of the operators on the larger commertions and to merchants and dealers. It includes all cial farms had debt—approximately three- real-estate-secured debt to Federal land banks, life insurance companies, and individuals from whom the fourths on Class I, II, and III farms—while farm was purchased. Loans of the Farmers Home less than half of those on Class VI farms Administration, banks, other institutions, and indiwere in debt. More than half of the Class VII viduals other than those from whom the farm was purchased were included only if they were the largest farmers had debt. This probably can be (or the only) real estate loans owed by borrowers. explained by the fact that these farmers had Non-real-estate and related debt consists of all relatively large incomes from off-farm debt other than major real estate. This classification was designed to avoid including as real estate debt sources and relied on this income for debt loans primarily secured by non-real-estate assets but repayment. which also had real estate as supplementary security. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FARM DEBT AS RELATED TO VALUE OF SALES 143 TABLE 1 FARM-OPERATOR DEBT, 1960 Operators with debt Amount of debt Number * Per cent of all operators Total Average (thousands) in class (millions of dollars) (dollars) Class of farm Non- Non- Non- Non- Major real- Major real- Major real- Major real- Any real estate Any real estate Total real estate Total real estate debt estate and debt estate and debt estate and debt estate and debt related debt related debt related debt related debt debt debt debt Commercial: I 80 48 67 76 46 65 3,919 2,131 1,788 48,813 26,540 22,273 II.. 170 89 141 75 39 62 3,017 1,701 1,315 17,744 10,007 7,737 Ill 359 197 313 73 40 64 3,928 2,332 1,596 10,936 6,494 4,443 IV 390 205 328 66 35 56 2,'/49 1,704 1,044 7,044 4,368 2,676 V 296 146 235 55 27 44 1,249 775 474 4,220 2,619 1,601 VI 145 54 121 47 17 40 303 173 130 2,094 1,193 900 Other: VII 382 219 276 57 33 41 1,507 1,055 453 3,950 2,764 1,186 vin 75 31 55 24 10 18 126 85 41 1,666 1,125 540 All classes 1,897 988 1,538 58 30 47 16,798 9,956 6,841 8,853 5,247 3,606 1 Figures for farm operators with major real estate debt and for Alaska and Hawaii were not included in the Survey. those with non-real-estate and related debt cannot be added because Details may not add to totals because of rounding. some farmers had both types of debt. Economic classes of farms are as defined by the Bureau of the Census, NOTE.—Unpublished data, 1960 Sample Survey of Agriculture, except that data shown for Class VIII are the combined totals for Cen- Bureau of the Census. Data are estimates based on information sus Classes VIII and IX. obtained from a sample of farms. See technical note at the end of this article lor references on the sampling procedure, estimated sampling errors, and definitions of terms. TABLE 2 SOURCES OF FARM OPERATORS' LARGEST DEBTS, 1960 All classes Class of farm Debt I and II III and IV V-VIII Opera- Source s (t w d a t h o n e i o r d b t s h u t s - ) ( A d m o m i l l o l o l a f i u o rs n n ) t s c P e e n r t O s (t a w d t p h o n e e i o r d b t r s h u s t a - ) - ( A d m o m i l l o l o l a f i u o r D s n n ) e t s bt c P e e n r t O s (t w d a t p h o n e e i o r d b t r s h u s t a - ) - ( A d m o m i l l o l o l a f i u o r D s n n ) e t s bt c P e e n r t O s (t a w d t p h o n e e i o r d b t r s h u s t a - ) - ( A d m o m i l l o l o l a f i u o r D s n n ) e t s bt c P e e n r t Major real estate debtl Federal land banks 231 1,836 19.4 36 647 18.2 103 828 21.3 93 361 17.7 Commercial banks 2 262 1,713 18.1 32 627 17.6 91 604 15.5 139 483 23.7 Insurance companies 96 1,676 17.7 25 951 26.8 45 564 14.5 26 161 7.9 Seller of farm: 3 By mortgage or deed of trust 134 1,384 14.6 13 475 13.4 55 556 14.3 66 353 17.3 By contract 85 1,381 14.6 12 498 14.0 44 695 17.8 28 188 9.2 All other 180 1,496 15.6 17 358 10.0 64 648 16.6 98 489 24.2 All sources 988 9,485 100.0 136 3,555 100.0 402 3,896 100.0 450 2,034 100.0 Non-real-estate and related debt1 Commercial banks 2 526 2,422 42.3 88 1,203 46.0 232 837 38.9 206 383 39.9 Merchants and dealers 521 1,066 18.6 55 421 16.1 206 405 18.8 260 239 25.0 Production credit associations 145 1,016 17.8 27 532 20.4 78 399 18.5 39 86 8.9 All other 347 1,220 21.3 39 457 17.5 125 512 23.8 183 251 26.2 All sources 1,538 5,724 100.0 209 2,613 100.0 641 2,152 100.0 688 958 100.0 i Each operator was classified according to the source of his largest 2 Includes savings banks and trust companies. debt of this type. Figures represent only the amounts of this debt 3 Individual sellers. owed to that principal source. NOTE.—See also notes to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 farms indicates that many rural banks may West and 61 per cent in the North. Howhave problems in financing these operators ever, as pointed out above, part of this because the amount that may be lent to a difference probably is caused by regional single borrower is limited, in relation to size variation in the proportion of farms in each of bank, by the National Banking Act and economic class. by various State laws as well as by bankers' CREDIT SOURCE own prudence. Each farm operator was classified accord- There was considerable regional variation ing to the source of his largest debt. The in both the total amount and the average amounts of these debts owed to each source size of farm-operator debt. The West had 27 are shown in Table 2. per cent of the farm operators and was using Individuals from whom the farm was pur- 43 per cent of the outstanding credit, while chased were the most important source of the South had 32 per cent of the operators major real estate debt, providing 29 per cent and was using only 17 per cent of the outof the total. The three major types of instistanding credit. The North accounted for tutional lenders—Federal land banks, com- 41 per cent of the operators and 40 per mercial banks, and insurance companies— cent of the credit. each provided about 18 or 19 per cent of Part of the reason for this variability is the total.4 The individuals and financial agenthat the West had more Class I and II farms cies lending to farmers vary with respect to and fewer Class V-VIII farms than other the kinds of operators they finance. Some regions. The South, on the other hand, had agencies provide a relatively large proporfewer Class I and II farms and more Class tion of the financing for operators of larger V-VIII ones. farms, while others emphasize financing Not all the regional difference in average smaller farmers. Insurance companies were size of debt, however, is explained by the the leading institutional source of real estate relative importance of the different ecocredit for operators of Class I and II farms nomic classes of farms. Even when comparibut were relatively unimportant as a source sons are made within economic classes of of credit for operators of Class V-VIII farms, the average size of loan tended to be farms. The "all other" category and comsubstantially larger in the West than in the mercial banks were relatively most im- South and somewhat larger than in the portant as sources for operators of smaller North. For example, in Classes III and IV farms. The Federal land banks provided the average loan per indebted operator was about the same proportion of the financing $10,709 in the West; $8,749 in the North; for each of the economic classes of farms, and $6,317 in the South. as did the "seller of farm" groups. Part of the difference can probably be Commercial banks provided about 40 per attributed to variation in type of farm. The cent of the largest non-real-estate and re- South has a large number of cotton and lated debt of farm operators, merchants and tobacco farms. Debt on these farms is near dealers about 19 per cent, and production a seasonal low late in the year, at which time credit associations (PCA's) 18 per cent. the Survey was taken. At that time only 51 per cent of the farmers in the South were in- 4 "Commercial banks" as used here includes savings debted as compared with 63 per cent in the banks and trust companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FARM DEBT AS RELATED TO VALUE OF SALES 145 Commercial banks were the major source of of his land. In the 1960 Sample Survey, non-real-estate and related credit for all farm operators were classified into four economic classes but provided a somewhat tenure groups—full owner, part owner, manlarger proportion of this kind of credit used ager, and tenant. The manager group is not on Class I and II farms. PCA's provided discussed in this article because the number relatively more of the financing for the larger of managers in the sample was not large farms and were relatively less important as enough to give the data adequate statistical a source of credit for Classes V-VIII. Mer- reliability. chants and dealers and the "all other" Aggregate debt varied significantly by groups were relatively more important as tenure, with the full-owner and part-owner sources of credit for the smaller farms and groups each using more than four times as less important for the larger farms. much credit as tenants (Table 3). Part of the difference can be attributed to the fact DEBT BY TENURE that there were more indebted full-owner Farm operators have several means for ac- and part-owner operators than indebted quiring the assets needed in their businesses. tenant operators. Of all indebted operators, They may use their own funds for purchas- 48 per cent were full owners, 30 per cent ing needed resources, borrow to do so, or part owners, and 21 per cent tenants. The lease resources. Since land is a resource that other 1 per cent were managers. lends itself readily to renting, it is common The aggregate debt also was influenced for a farm operator to rent either all or part by average size of loan. For part owners, this was about three times and for full owners about twice that for tenants. Even TABLE 3 though there were 55 per cent more in- DEBT STATUS AND TENURE OF FARM OPERATORS, 1960 debted full owners than indebted part owners, the aggregate amount of debt used by Class of farm All full owners was only a little more than that Debt status and tenure classesl I and III and II IV V-V1II used by part owners because the average loan of full owners was so much smaller. A Operators without debt: greater proportion of the part-owner opera- All operators (number, in thousands) 1,349 331 936 tors were on large farms—Classes I and II— Full owners 828 142 655 Part owners 235 96 109 and had larger loans on the average. The Tenants 276 89 169 Operators with debt: 117,000 part owners in these two classes All operators (number, in were using $3.4 billion of credit in late thousands) 1.897 250 749 Full owners 906 67 280 559 1960, more than one-fifth of all farm debt Part owners 582 117 280 186 Tenants 396 58 188 150 on the Survey date. In each economic class, Total debt (millions of dollars) 16,798 6,936 6,676 3,185 however, average debt of full owners was Full owners , 7,326 1,948 3,132 2,248 Part owners 6,919 3,446 2,797 676 not significantly different from that of the Tenants 1,584 643 735 207 part owners. Average debt per indebted operator (dollars) 8,853 27,709 8,910 3,548 The extent to which an operator rents Full owners 8,085 29,213 11,165 4,020 Part owners 11,882 29,565 9,992 3,636 land also influences the amount and type of Tenants 3,997 11,000 3,919 1,373 his debt. Full owners and part owners must 1 Totals shown include data for manager-operators not listed separately. finance all or part of their real estate invest- See also Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 ments in addition to their non-real-estate III and IV were indebted, making the perinvestments. Tenants, by definition, only centage for this combined class somewhat need to finance their non-real-estate invest- larger than that for Classes I and II. ments. Because indebted part owners oper- Average debt per indebted operator ated more of the larger units, their average varied substantially by type of farm. The investment in owned real estate was larger average for livestock farms other than dairy than that of full owners. Indebted part and poultry farms was considerably larger owners had an average investment in owned than for any other type-of-farming group. real estate of $34,346, compared with $28,- This was true for all three of the combined 380 for indebted full owners. The average economic classes. Operators of cash-grain real estate debt of indebted part owners was farms in Classes I and II had a smaller-than- $7,390, compared with $5,578 for full owners. If non-real-estate and related debt is TABLE 4 used for comparing variation in debt by TOTAL DEBT RELATED TO TYPE OF FARM, 1960 tenure, the average indebtedness was: full Class of farm owners, $2,507; part owners, $4,493; and Type of farm All tenants, $3,997. It also should be pointed classes I and III and II IV V-VIII out that the proportion of part owners with debt was larger than the proportion of either Number of operators with debt (thousands) full owners or tenants. Commercial—total 1,440 250 749 441 Cash-grain 276 50 165 61 DEBT BY TYPE OF FARMING L C i o v t e to s n tockl 3 1 4 1 6 9 8 2 0 1 1 2 7 8 4 9 6 2 9 Tobacco 115 4 43 68 Resource requirements, organization, man- D O a th ir e y r 3 2 3 8 0 2 3 2 6 9 6 1 1 9 4 7 2 5 95 6 agement, and financing needs vary by type Other 457 457 of farm within each economic class. In the All types. 1,897 250 749 1960 Sample Survey the Bureau of the Cen- Indebted operators as per cent of sus classified the different types of farms by all operators in group major source of income from farm sales. To Commercial—total. 64 75 69 52 Cash-grain 67 76 69 56 be classified as a particular type, a farm had Livestock * 62 78 67 47 Cotton 54 70 58 49 to have sales of a particular product or Tobacco 54 (2) 58 50 Dairy 71 67 78 54 group of products amounting to 50 per cent Other 3 60 78 69 57 or more of the total value of all farm prod- Other 46 ucts sold during the year. All types. 58 75 69 49 The sample used in the 1960 Sample Average debt per indebted operator (dollars) Survey was not large enough to permit evaluation of debt statistics by economic class Commercial—total 10,529 27,709 8,910 3,522 Cash-grain [0,312 21,455 9,100 4,392 within type-of-farm groups except by com- Livestock l 14,958 34,466 11,133 5,318 Cotton 7,313 27,875 6,182 1,410 bining the classes, as indicated earlier. Gen- Tobacco 3,170 4,159 2,126 Dairy 9,456 26,003 8,667 3,499 erally, the largest proportion of indebted Other 3 10,724 25,895 8,290 3,775 operators in each type-of-farm group was in Other 3,573 3,573 Classes I and II, the next largest in Classes All types. 8,853 27,709 8,910 3,548 III and IV, and the smallest in Classes V- 1 Other than dairy and poultry. 2 Number of observations in sample too small to allow reliable VIII (Table 4). However, a large propor- estimates. 3 Includes other field crops, vegetables, fruits, poultry, general, tion of the dairy farm operators in Classes and miscellaneous types. See also Note to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FARM DEBT AS RELATED TO VALUE OF SALES 147 average debt per indebted operator com- TABLE 5 INDEBTED FARM OPERATORS, BY AGE, 1960 pared with the average for all farms in these classes, whereas in the Class V-VIII group Class of farm they had a larger-than-average debt per in- Age group cl A as l s l es I and II III and IV V-VIII debted operator. Within the Class III and IV and the Class Number (thousands) V-VIII categories, the average debt per in- Under 35 260 42 127 92 35-54 953 132 412 409 debted operator was significantly smaller 55 and over 494 55 157 282 than for all types on tobacco and cotton All ages i 1,897 250 749 898 farms and larger on livestock farms other Indebted operators as per cent of than dairy and poultry. Some factors that all operators in group probably influenced this variation by type Under 35 77 85 83 68 35-54 68 78 74 61 of farm include season of year when the 55 and over 42 65 53 36 Survey was taken, difference in size of farm All ages i 58 75 69 49 by type, differences in kind and amount of Average debt per indebted operator collateral by type, regional variation in type (dollars) of farm, and regional differences in average Under 35 9,568 19,781 9,692 4,741 size of debt. 35-54 9,351 27,732 8,987 3,794 55 and over 6,636 25,242 7,901 2,273 All ages i 8,853 27,709 8,910 3,548 DEBT BY AGE OF OPERATOR 1 Includes farmers who did not report their age. The debt status and amount of credit used See also Note to Table 1. varied by age of operator. The young operator, in his effort to start farming, usually has In Classes I and II, indebted operators not had much opportunity to accumulate an under 35 had a substantially lower average equity in his business and must make an debt than did older operators. In Classes III intensive effort to obtain supplementary re- and IV and Classes V-VIII, however, aversources through renting and borrowing. age debt tended to decrease as age increased. Thus, a relatively large proportion of the For all classes, the average indebtedness of younger operators were tenants or part own- operators over 54 was lower than the averers, and were indebted. In the under 35 age age for either of the younger groups. group, 44 per cent of the operators were The younger operators on Class I and II tenants and 25 per cent part owners, while farms operated somewhat smaller units than in the 55 and over age group only 10 per did the older operators. The average value cent were tenants and 20 per cent part of the farm products they sold in 1960 was owners. $40,096, compared with $49,257 for opera- Table 5 indicates that a large percentage tors in the 35-54 year age group and $46,of younger operators were indebted. This is 342 for the oldest group. The average value true for all economic classes, with a higher of land and buildings operated per indebted percentage of the young operators on the operator was also about a fifth less for the larger farms being indebted and a some- younger operators. The difference did not what lower percentage on the smaller farms. exist in the other economic classes. Since A relatively large percentage of the opera- there is a close relationship between size of tors in the 35-54 age group also were in- farm and average indebtedness, the variadebted. tions in relative size of operation probably Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 account in part for the difference in debt analysis of farm debt, one must evaluate between older and younger farmers in landlord debt, too. Classes I and II. It was estimated that 481,000 landlords had a total outstanding debt of $3,099 mil- FARM LANDLORDS' DEBT lion in 1960 (Table 6). For commercial Up to this point, all evaluations have been farms, landlords of Class I operators had the based upon operator debt. For a complete largest average debt and those of Class VI the smallest. Average size of debt per land- TABLE 6 lord declined consistently from Class I INDEBTED LANDLORDS, 1960 through Class VI. Landlords of part-time Amount of debt operators (Class VII) had a larger aver- Class of farm (th N o u u m sa b n e d r s) o ( f m T d i o l o l t i l a o la l n r s s) A (d v o e ll r a a r g s e ) C ag la e s s d e e s b t V t h o a r n V d I i . d landlords of operators in Most landlord debt was owed to institu- Commercial 428 2,896 6,766 I 33 589 17,854 tions extending real estate mortgage credit II 65 787 12,104 Ill 123 827 6,725 and was secured by a real estate mortgage, IV 109 474 4,353 V 64 170 2,649 deed of trust, or land-purchase contract. A VI 34 49 1,439 substantial amount of landlord borrowing, Other 53 203 3,834 VIT 43 197 4.586 VIII 10 6 600 however, was done through commercial All classes 481 3,099 6,443 banks, individuals, and merchants and dealers without the use of real estate as security. See Note to Table 1. TECHNICAL NOTE The estimates given in the accompanying farm, and value of farm products sold, see article are based on unpublished Census U. S. Census of Agriculture: 1959, Volume data collected from a sample of the farms II, General Report, Statistics by Subjects— existing in the 48 States, excluding Alaska Introduction and Chapter II. For a listing and Hawaii, at the time of the Survey in of items reported as debt, see excerpt from 1960. All farms were represented and had the survey questionnaire shown in the Dea chance to be included in the sample. A cember 1962 BULLETIN. stratified random sampling procedure was A more extended technical note appeared used, which allowed heavier sampling rates in the BULLETIN for December 1962 at the for farms with higher values of farm prod- end of the first article in this series, "A New ucts sold. Look at the Farm Debt Picture." That note For a comprehensive treatment of the discussed reasons for differences between nature of the sample, see 1960 Sample Sur- the estimates of debt of farm operators and vey of Agriculture, published by the Bureau farm landlords for 1960 in the Survey and of the Census. those made by other agencies on the basis Brief working definitions of several terms of other surveys. It also discussed the statistiappear in the text. For comprehensive defini- cal reliability of estimates obtained in the tions of such terms as farm, farm operator, 1960 Sample Survey and contained tables economic class, off-farm income, type of that gave measures of sampling errors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches Following is a list of the directorates of the Federal Reserve Banks and branches as at present constituted. The list shows, in addition to the name of each director, his principal business affiliation, the class of directorship, and the date when his term expires. Each Federal Reserve Bank has nine directors; three Class A and three Class B directors, who are elected by the stockholding member banks, and three Class C directors, who are appointed by the Board of Governors of the Federal Reserve System. Class A directors are representative of the stockholding member banks. Class B directors must be actively engaged in their district in commerce, agriculture, or some industrial pursuit, and may not be officers, directors, or employees of any bank. For the purpose of electing Class A and Class B directors, the member banks of each Federal Reserve district are classified by the Board of Governors of the Federal Reserve System into three groups, each of which consists of banks of similar capitalization, and each group elects one Class A and one Class B director. Class C directors may not be officers, directors, employees, or stockholders of any bank. One Class C director is designated by the Board of Governors as Chairman of the Board of Directors and Federal Reserve Agent and another as Deputy Chairman. Federal Reserve Bank branches have either five or seven directors, of whom a majority are appointed by the board of directors of the parent Federal Reserve Bank and the others are appointed by the Board of Governors of the Federal Reserve System. One of the directors appointed by the Board of Governors at each branch is designated annually as Chairman of the Board in such manner as the Federal Reserve Bank may prescribe. District 1—FEDERAL RESERVE BANK OF BOSTON Term expires Class A: Dec. 31 ARTHUR F. MAXWELL President, The First National Bank of Biddeford, Maine 1963 WILLIAM M. LOCKWOOD President, The Howard National Bank and Trust Company, Burlington, Vt. 1964 OSTROM ENDERS Chairman, Hartford National Bank and Trust Company, Hartford, Conn. 1965 Class B: WILLIAM R. ROBBINS Vice President and Controller, United Aircraft Corporation, East Hartford, Conn. 1963 JAMES R. CARTER President, Nashua Corporation, Nashua, N. H. 1964 JOHN R. NEWELL President, Bath Iron Works Corp., Bath, Maine 1965 Class C: WILLIAM WEBSTER2 President, New England Electric System, Boston, Mass. 1963 ERWIN D. CANHAM1 Editor, The Christian Science Monitor, Boston, Mass. 1964 WILBUR H. NORTON President, Gorham Corporation, Providence, R. I. 1965 1 Chairman. 2 Deputy Chairman. 149 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN * FEBRUARY 1963 District 2—FEDERAL RESERVE BANK OF NEW YORK Term expires Class A: Dec. 31 A. LEONARD MOTT President, The First National Bank of Moravia, N. Y. 1963 GEORGE CHAMPION Chairman of the Board, The Chase Manhattan Bank, New York, N. Y. 1964 RALPH H. RUE Chairman, The Schenectady Trust Company, Schenectady, N. Y. 1965 Class B: ALBERT L. NICKERSON Chairman of the Board, Socony Mobil Oil Company, Inc., New York,N. Y. 1963 B. EARL PUCKETT Chairman of the Board, Allied Stores Corporation, New York, N. Y. 1964 KENNETH H. HANNAN Executive Vice President, Union Carbide Corporation, New York, N. Y. 1965 Class C: EVERETT N. CASE President, Alfred P. Sloan Foundation, New York, N. Y. 1963 JAMES DECAMP WISE2 Formerly Chairman of the Board, Bigelow-Sanford, Inc., Frenchtown, N. J. 1964 PHILIP D. REED a Formerly Chairman of the Board, General Electric Company, New York, N. Y. 1965 BUFFALO BRANCH Appointed by Federal Reserve Bank: JOHN M. GALVIN Chairman, Executive Committee, The Marine Trust Company of Western New York, Buffalo, N. Y. 1963 ANSON F. SHERMAN President, The Citizens Central Bank, Arcade, N. Y. 1964 ELMER B. MILLIMAN President, Central Trust Company Rochester N. Y. 1964 J. MONROE HODGES President, The Exchange National Bank of Olean, N. Y. 1965 Appointed by Board of Governors: THOMAS E. LAMONT X Farmer, Albion, N. Y. 1963 WHITWORTH FERGUSON President, Ferguson Electric Construction Co., Inc., Buffalo, N. Y. 1964 MAURICE R. FORMAN President, B. Forman Company, Inc., Rochester, N. Y. 1965 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA Class A: J. MILTON FEATHERER Executive Vice President and Trust Officer, The Penn's Grove National Bank and Trust Company, Penns Grove, N. J. 1963 EUGENE T. GRAMLEY President, Milton Bank and Safe Deposit Company, Milton, Pa. 1964 BENJAMIN F. SAWIN Vice Chairman of the Board, Provident Tradesmens Bank and Trust Company, Philadelphia, Pa. 1965 Class B: LEONARD P. POOL President, Air Products and Chemicals, Inc., Allentown, Pa. 1963 FRANK R. PALMER Chairman of the Board, The Carpenter Steel Company, Reading, Pa. 1964 RALPH K. GOTTSHALL Chairman of the Board and President, Atlas Chemical Industries, Inc., Wilmington, Del. 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 151 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued Term expires Class C.- Dec. 31 WALTER E. HOADLEY Vice President and Treasurer, Armstrong Cork Company, Lancaster, Pa. 1963 WILLIS J. WINN Dean, Wharton School of Finance and Commerce, University of Pennsylvania, Philadelphia, Pa. 1964 DAVID C. BEVAN 2 Vice President, Finance, The Pennsylvania Railroad Company, Philadelphia, Pa. 1965 District 4—FEDERAL RESERVE BANK OF CLEVELAND Class A: PAUL A. WARNER President, The Oberlin Savings Bank Company, Oberlin, Ohio 1963 C. N. SUTTON President, The Richland Trust Company, Mansfield, Ohio 1964 FRANK E. AGNEW, JR. Chairman of the Board, Pittsburgh National Bank, Pittsburgh, Pa. 1965 Class B: EDWIN J. THOMAS Chairman of the Board and Chief Executive Officer, The Goodyear Tire & Rubber Company, Akron, Ohio 1963 DAVID A. MEEKER President, The Hobart Manufacturing Company, Troy, Ohio 1964 WALTER K. BAILEY Chairman of the Board, The Warner & Swasey Company, Cleveland, Ohio 1965 Class C: AUBREY J. BROWN Professor of Agricultural Marketing and Head of Department of Agricultural Economics, University of Kentucky, Lexington, Ky. 1963 JOSEPH B. HALL 1 Chairman of the Board, The Kroger Co., Cincinnati, Ohio 1964 LOGAN T. JOHNSTON : President, Armco Steel Corporation, Middletown, Ohio 1965 CINCINNATI BRANCH Appointed by Federal Reserve Bank: JOHN W. HUMPHREY President, The Philip Carey Manufacturing Company, Cincinnati, Ohio 1963 H. W. GILLAUGH President, The Third National Bank and Trust Company of Dayton, Ohio 1963 G. CARLTON HILL Chairman of the Board and President, The Fifth Third Union Trust Co., Cincinnati, Ohio 1964 JOHN W. WOODS, JR. President, The Third National Bank of Ashland, Ashland, Ky. 1965 Appointed by Board of Governors: WALTER C. LANGSAM President, University of Cincinnati, Cincinnati, Ohio 1963 BARNEY A. TUCKER President, Burley Belt Plant Food Works, Inc., Lexington, Ky. 1964 HOWARD E. WHITAKER Chairman of the Board, The Mead Corporation, Dayton, Ohio 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN * FEBRUARY 1963 District 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued PITTSBURGH BRANCH Term expires Dec. 31 Appointed by Federal Reserve Bank: CHAS. J. HEIMBERGER President, The First National Bank of Erie, Pa. 1963 S. L. DRUMM President, West Penn Power Company, Greensburg, Pa. 1963 JAMES B. GRIEVES President, Commonwealth Bank and Trust Company, Pittsburgh, Pa. 1964 ALFRED H. OWENS President, The Citizens National Bank of New Castle, Pa. 1965 Appointed by Board of Governors: G. L. BACH Maurice Falk Professor of Economics and Social Science, Carnegie Institute of Technology, Pittsburgh, Pa. 1963 WILLIAM A. STEELE X Chairman of the Board and President, Wheeling Steel Corporation, Wheeling, W. Va. 1964 F. L. BYROM President, Koppers Company, Inc., Pittsburgh, Pa. 1965 District 5—FEDERAL RESERVE BANK OF RICHMOND Class A: ADDISON H. REESE President, North Carolina National Bank, Charlotte, N. C. 1963 J. MCKENNY WILLIS, JR. Director, Maryland National Bank (Baltimore), Easton, Md. 1964 DAVID K. CUSHWA, JR. President, The Washington County National Savings Bank, Williamsport, Md. 1965 Class B: ROBERT E. L. JOHNSON Chairman of the Board, Woodward & Lothrop, Incorporated, Washington, D. C. 1963 ROBERT R. COKER President, Coker's Pedigreed Seed Company, Hartsville, S. C. 1964 R. E. SALVATI Chairman of the Board, Island Creek Coal Company, Huntington, W. Va. 1965 Class C: WILLIAM H. GRIER 2 President, Rock Hill Printing & Finishing Company, Rock Hill, S. C. 1963 EDWIN HYDE 1 President, Miller & Rhoads, Inc., Richmond, Va. 1964 WILSON H. ELKINS President, University of Maryland, College Park, Md. 1965 BALTIMORE BRANCH Appointed by Federal Reserve Bank: J. N. SHUMATE President, The Farmers National Bank of Annapolis, Md. 1963 HARVEY E. EMMART Senior Vice President and Cashier, Maryland National Bank, Baltimore, Md. 1964 MARTIN PIRIBEK Executive Vice President, The First National Bank of Morgantown, W. Va. 1964 JOSEPH B. BROWNE President, Union Trust Company of Maryland, Baltimore, Md. 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 153 District 5—FEDERAL RESERVE BANK OF RICHMOND—Continued BALTIMORE BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 HARRY B. CUMMINGS X Vice President & General Manager, Metal Products Division, Koppers Company, Inc., Baltimore, Md. 1963 LEONARD C. CREWE, JR. President and Treasurer, Maryland Fine & Specialty Wire Co., Inc., Cockeysville, Md. 1964 E. WAYNE CORRIN President, Hope Natural Gas Company, Clarksburg, W. Va. 1965 CHARLOTTE BRANCH Appointed by Federal Reserve Bank: W. W. MCEACHERN President, The South Carolina National Bank, Greenville, S. C. 1963 JOE H. ROBINSON Senior Vice President, Wachovia Bank and Trust Company, Charlotte, N. C. 1964 WALLACE W. BRAWLEY President, The Commercial National Bank of Spartanburg, S. C. 1964 G. HAROLD MYRICK Executive Vice President and Trust Officer, The First National Bank of Lincolnton, N. C. 1965 Appointed by Board of Governors: GEORGE H. AULL X Agricultural Economist, Clemson College, Clemson, S. C. 1963 CLARENCE P. STREET President, McDevitt & Street Company, Charlotte, N. C. 1964 J. C. COWAN, JR. Vice Chairman of the Board, Burlington Industries, Inc., Greensboro, N. C. 1965 District 6—FEDERAL RESERVE BANK OF ATLANTA Class A: GEORGE S. CRAFT President, Trust Company of Georgia, Atlanta, Ga. 1963 D. C. WADSWORTH, SR. President, The American National Bank, Gadsden, Ala. 1964 M. M. KIMBREL Chairman of the Board, First National Bank, Thomson, Ga. 1965 Class B: W. MAXEY JARMAN Chairman, Genesco, Inc., Nashville, Tenn. 1963 JAMES H. CROW, JR. Vice President, The Chemstrand Corporation, Decatur, Ala. 1964 MCGREGOR SMITH Chairman of the Board, Florida Power & Light Company, Miami, Fla. 1965 Class C.- HENRY G. CHALKLEY, JR.2 President, The Sweet Lake Land & Oil Company, Lake Charles, La. 1963 JACK TARVER 1 President, Atlanta Newspapers, Inc., Atlanta, Ga. 1964 J. M. CHEATHAM President, Dundee Mills, Incorporated, Griffin, Ga. 1965 BIRMINGHAM BRANCH Appointed by Federal Reserve Bank: FRANK A. PLUMMER Chairman of the Board and President, Birmingham Trust National Bank, Birmingham, Ala. 1963 JOHN H. NEILL, JR. President, Union Bank & Trust Co., Montgomery, Ala. 1964 W. H. MITCHELL President, The First National Bank of Florence, Ala. 1964 A. CALVIN SMITH President, First National Bank, Greenville, Ala. 1965 1 Chairman. - Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN « FEBRUARY 1963 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued BIRMINGHAM BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 SELDEN SHEFFIELD X Cattleman, Greensboro, Ala. 1963 C. CALDWELL MARKS Chairman of the Board, Owen-Richards Company, Inc., Birmingham, Ala. 1964 JACK W. WARNER Chairman of the Board and President, Gulf States Paper Corporation, Tuscaloosa, Ala. 1965 JACKSONVILLE BRANCH Appointed by Federal Reserve Bank: GODFREY SMITH President, Capital City National Bank of Tallahassee, Fla. 1963 J. T. LANE Chairman of the Board, The Atlantic National Bank, Jacksonville, Fla. 1964 HARRY FAGAN President, First National Bank in Fort Myers, Fla. 1964 ARTHUR W. SAARINEN President, Broward National Bank of Fort Lauderdale, Fla. 1965 Appointed by Board of Governors: J. OLLIE EDMUNDS President, Stetson University, DeLand, Fla. 1963 HARRY T. VAUGHN * President, United States Sugar Corporation, Clewiston, Fla. 1964 CLAUDE J. YATES Vice President and General Manager, Southern Bell Telephone and Telegraph Company, Jacksonville, Fla. 1965 NASHVILLE BRANCH Appointed by Federal Reserve Bank: D. W. JOHNSTON Executive Vice President, Third National Bank in Nashville, Tenn. 1963 TRAVIS HITT President, Farmers National Bank, Winchester, Tenn. 1964 HARRY M. NACEY, JR. President, Hamilton National Bank, Knoxville, Tenn. 1964 R. S. WALLING President, First National Bank, McMinnville, Tenn. 1965 Appointed by Board of Governors: W. N. KRAUTH 1 President and General Manager, Colonial Baking Company of Nashville, Tenn. 1963 V. S. JOHNSON, JR. Chairman of the Board and President, Aladdin Industries, Inc., Nashville, Tenn. 1964 ANDREW D. HOLT President, University of Tennessee, Knoxville, Tenn. 1965 NEW ORLEANS BRANCH Appointed by Federal Reserve Bank: GILES W. PATTY President, First National Bank, Meridian, Miss. 1963 LEWIS GOTTLIEB Chairman of the Board, City National Bank, Baton Rouge, La. 1964 JOHN OULLIBER President, The National Bank of Commerce in New Orleans, La. 1964 J. R. MCCRAVEY, JR. Vice President, Bank of Forest, Miss. 1965 1 Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 155 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued NEW ORLEANS BRANCH—Continued Term expires Appointed by Board of Governors: Dec, 31 FRANK A. GODCHAUX, III Vice President, Louisiana State Rice Milling Company, Inc., Abbeville, La. 1963 KENNETH R. GIDDENS X President, WKRG-TV, Inc., Mobile, Ala. 1964 J. O. EMMERICH Editor, Enterprise-Journal, McComb, Miss. 1965 District 7—FEDERAL RESERVE BANK OF CHICAGO Class A: DAVID M. KENNEDY Chairman of the Board, Continental Illinois National Bank and Trust Company of Chicago, 111. 1963 JOHN H. CROCKER Chairman of the Board, The Citizens National Bank of Decatur, 111. 1964 HARRY W. SCHALLER President, The Citizens First National Bank of Storm Lake, Iowa 1965 Class B: Treasurer and Assistant Secretary, Allis-Chalmers Manufactur- G. F. LANGENOHL ing Company, Milwaukee, Wis. 1963 Director, Giddings & Lewis Machine Tool Company, Fond du WILLIAM E. RUTZ Lac, Wis. 1964 Director, Eli Lilly and Company, Indianapolis, Ind. 1965 WILLIAM A. HANLEY Class C.- JOHN W. SHELDON President, Chas. A. Stevens & Co., Chicago, 111. 1963 ROBERT P. BRIGGS X Executive Vice President, Consumers Power Company, Jackson, Mich. 1964 JAMES H. HILTON 2 President, Iowa State University of Science and Technology, Ames, Iowa 1965 DETROIT BRANCH Appointed by Federal Reserve Bank: WILLIAM A. MAYBERRY Chairman of the Board, Manufacturers National Bank of Detroit, Mich. 1963 FRANKLIN H. MOORE President, The Commercial and Savings Bank, St. Clair, Mich. 1963 DONALD F. VALLEY Chairman of the Board, National Bank of Detroit, Mich. 1964 C. LINCOLN LINDERHOLM President, Central Bank, Grand Rapids, Mich. 1965 Appointed by Board of Governors: MAX P. HEAVENRICH, JR. President and General Manager, Heavenrich Bros. & Company, Saginaw, Mich. 1963 JAMES WILLIAM MILLER X President, Western Michigan University, Kalamazoo, Mich. 1964 GUY S. PEPPIATT President, Federal-Mogul-Bower Bearings, Inc., Detroit, Mich. 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 District 8—FEDERAL RESERVE BANK OF ST. LOUIS Term expires Class A: Dec. 31 H. LEE COOPER President, Ohio Valley National Bank of Henderson, Ky. 1963 ARTHUR WERRE, JR. Executive Vice President, First National Bank of Steeleville, 111. 1964 HARRY F. HARRINGTON Chairman of the Board and President, The Boatmen's National Bank of Saint Louis, Mo. 1965 Class B: Chairman of the Finance Committee and member of Board of EDGAR M. QUEENY Directors, Monsanto Chemical Company, St. Louis, Mo. 1963 Chairman of the Board, Rebsamen & East, Inc., Little Rock, RAYMOND REBSAMEN Ark. 1964 Senior Executive Vice President, Mead Johnson & Company, HAROLD O. MCCUTCHAN Evansville, Ind. 1965 Class C.- JESSE D. WOOTEN Executive Vice President, Mid-South Chemical Corporation, Memphis, Tenn. 1963 J. H. LONGWELL 2 Director, Special Studies and Programs, College of Agriculture, University of Missouri, Columbia, Mo. 1964 ETHAN A. H. SHEPLEY X Of Counsel, Shepley, Kroeger, Fisse & Shepley, St. Louis, Mo. 1965 LITTLE ROCK BRANCH Appointed by Federal Reserve Bank: J. W. BELLAMY President, National Bank of Commerce of Pine Bluff, Ark. 1963 R. M. LAGRONE, JR. President, The Citizens National Bank of Hope, Ark. 1963 Ross E. ANDERSON President, The Commercial National Bank of Little Rock, Ark. 1964 H. C. ADAMS Executive Vice President, The First National Bank of De Witt, Ark. 1965 Appointed by Board of Governors: FREDERICK P. BLANKS X Planter, Parkdale, Ark. 1963 WALDO E. TILLER President, Tiller Tie and Lumber Company, Inc., Little Rock, Ark. 1964 CAREY V. STABLER President, Little Rock University, Little Rock, Ark. 1965 LOUISVILLE BRANCH Appointed by Federal Reserve Bank: RAY A. BARRETT President, The State Bank of Salem, Ind. 1963 JOHN G. RUSSELL President, The Peoples First National Bank & Trust Company of Paducah, Ky. 1963 JOHN R. STROUD Executive Vice President, The First National Bank of Mitchell, Ind. 1964 JOHN H. HARDWICK President, The Louisville Trust Company, Louisville, Ky. 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 157 District 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued LOUISVILLE BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 PHILIP DAVIDSON 1 President, University of Louisville, Louisville, Ky. 1963 RICHARD T. SMITH Farmer, Madisonville, Ky. 1964 C. HUNTER GREEN Vice President and General Manager, Southern Bell Telephone and Telegraph Company, Louisville, Ky. 1965 MEMPHIS BRANCH Appointed by Federal Reserve Bank: JOHN E. BROWN Chairman of the Board and President, Union Planters National Bank of Memphis, Tenn. 1963 SIMPSON RUSSELL Chairman of the Board, The National Bank of Commerce of Jackson, Tenn. 1963 LEON C. CASTLING President, First National Bank at Marianna, Ark. 1964 CHARLES R. CAVINESS President, National Bank of Commerce of Corinth, Miss. 1965 Appointed by Board of Governors: EDWARD B. LEMASTER1 President, Edward LeMaster Company, Inc., Memphis, Tenn. 1963 FRANK LEE WESSON President, Wesson Farms, Inc., Victoria, Ark. 1964 WILLIAM KING SELF President, Riverside Industries, Marks, Miss. 1965 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS Class A: HAROLD C. REFLING Cashier, First National Bank in Bottineau, N. Dak. 1963 ROLLIN O. BISHOP Consultant, The American National Bank of Saint Paul, Minn. 1964 CURTIS B. MATEER Executive Vice President, The Pierre National Bank, Pierre, S. Dak. 1965 Class B.- RAY C. LANGE President, Chippewa Canning Company, Inc., Chippewa Falls, Wis. 1963 T. G. HARRISON Chairman of the Board, Super Valu Stores, Inc., Minneapolis, Minn. 1964 HUGH D. GALUSHA, JR. Lawyer and Certified Public Accountant, Helena, Mont. 1965 Class C: JUDSON BEMIS 2 President, Bemis Bro. Bag Co., Minneapolis, Minn. 1963 JOHN H. WARDEN President, Upper Peninsula Power Company, Houghton, Mich. 1964 ATHERTON BEAN X President, International Milling Company, Minneapolis, Minn. 1965 HELENA BRANCH Appointed by Federal Reserve Bank: O. M. JORGENSON Chairman of the Board, Security Trust and Savings Bank, Billings, Mont. 1963 ROY G. MONROE Chairman of the Board and President, The First State Bank of Malta, Mont. 1964 HARALD E. OLSSON President, Ronan State Bank, Ronan, Mont. 1964 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN * FEBRUARY 1963 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS—Continued HELENA BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 JOHN M. OTTEN X Farmer and rancher, Lewistown, Mont. 1963 HARRY K. NEWBURN President, Montana State University, Missoula, Mont. 1964 District 10—FEDERAL RESERVE BANK OF KANSAS CITY Class A: HAROLD KOUNTZE Chairman of the Board, The Colorado National Bank of Denver, Colo. 1963 W. S. KENNEDY President and Chairman of the Board, The First National Bank of Junction City, Kans. 1964 BURTON L. LOHMULLER President, The First National Bank of Centralia, Kans. 1965 Class B.- MAX A. MILLER Livestock rancher, Omaha, Nebr. 1963 ROBERT A. OLSON President, Kansas City Power & Light Company, Kansas City, Mo. 1964 K. S. ADAMS Chairman of the Board, Phillips Petroleum Company, Bartlesville,Okla. 1965 Class C: HOMER A. SCOTT X Vice President and District Manager, Peter Kiewit Sons' Company, Sheridan, Wyo. 1963 DOLPH SIMONS 2 Editor and President, The Lawrence Daily Journal-World, Lawrence, Kans. 1964 DEAN A. MCGEE President, Kerr-McGee Oil Industries, Inc., Oklahoma City, Okla. 1965 DENVER BRANCH Appointed by Federal Reserve Bank: EUGENE H. ADAMS President, The First National Bank of Denver, Colo. 1963 J. H. BLOEDORN President, The Farmers State Bank of Fort Morgan, Colorado 1964 J. P. BRANDENBURG President, The First State Bank of Taos, N. Mex. 1964 Appointed by Board of Governors: ROBERT T. PERSON 1 President, Public Service Company of Colorado, Denver, Colo. 1963 R. A. BURGHART Ingle Land and Cattle Company, Colorado Springs, Colo. 1964 OKLAHOMA CITY BRANCH Appointed by Federal Reserve Bank: C. P. STUART Chairman of the Board, The Fidelity National Bank & Trust Company, Oklahoma City, Okla. 1963 R. L. KELSAY Chairman of the Board and President, The First National Bank in Hobart, Okla. 1964 GUY L. BERRY, JR. President, The American National Bank and Trust Company, Sapulpa, Okla. 1964 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 159 District 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued OKLAHOMA CITY BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 JAMES E. ALLISON X President, Warren Petroleum Corporation, Tulsa, Okla. 1963 OTTO C. BARBY Attorney and rancher, Beaver, Okla. 1964 OMAHA BRANCH Appointed by Federal Reserve Bank: R. E. BARTON President, The Wyoming National Bank of Casper, Wyo. 1963 HENRY D. KOSMAN Chairman of the Board and President, Scottsbluff National Bank, Scottsbluff, Nebr. 1963 JOHN F. DAVIS President, First National Bank, Omaha, Nebr. 1964 Appointed by Board of Governors: JOHN T. HARRIS Merchant and cattleman, McCook, Nebr. 1963 CLIFFORD MORRIS HARDIN X Chancellor, The University of Nebraska, Lincoln, Nebr. 1964 District 11—FEDERAL RESERVE BANK OF DALLAS Class A: ROY RIDDEL President, First National Bank at Lubbock, Tex. 1963 J. EDD MCLAUGHLIN President, Security State Bank & Trust Company, Rails, Tex. 1964 RALPH A. PORTER Executive Vice President, The State National Bank of Denison, Tex. 1965 Class B: D. A. HULCY Chairman of the Board, Lone Star Gas Company, Dallas, Tex. 1963 H. B. ZACHRY President and Chairman of the Board, H. B. Zachry Co., San Antonio, Tex. 1964 J. B. PERRY, JR. President and General Manager, Perry Brothers, Inc., Lufkin, Tex. 1965 Class C.- MORGAN J. DAVIS 2 Chairman of the Board, Humble Oil & Refining Company, Houston, Tex. 1963 LAMAR FLEMING, JR. Member, Board of Directors, Anderson, Clayton & Co., Inc., Houston, Tex. 1964 ROBERT O. ANDERSON 1 President, Hondo Oil & Gas Company, Roswell, N. Mex. 1965 EL PASO BRANCH Appointed by Federal Reserve Bank: FLOYD CHILDRESS Vice Chairman of the Board, The First National Bank of Roswell, N. Mex. 1963 DICK ROGERS President, First National Bank in Alpine, Tex. 1963 JOSEPH F. IRVTN President, Southwest National Bank of El Paso, Tex. 1964 CHAS. B. PERRY President, First State Bank, Odessa, Tex. 1965 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN - FEBRUARY 1963 District 11—FEDERAL RESERVE BANK OF DALLAS—Continued EL PASO BRANCH—Continued Term expires Appointed by Board of Governors: Dec, 31 WILLIAM R. MATHEWS X Editor and Publisher, The Arizona Daily Star, Tucson, Ariz. 1963 DYSART E. HOLCOMB Director of Research, El Paso Natural Gas Products Company, El Paso, Tex. 1964 ROGER B. CORBETT President, New Mexico State University, University Park, N. Mex. 1965 HOUSTON BRANCH Appointed by Federal Reserve Bank: J. A. ELKINS, JR. President, First City National Bank of Houston, Tex. 1963 JOHN E. GRAY President, First Security National Bank of Beaumont, Tex. 1963 J. W. MCLEAN President, Texas National Bank of Houston, Tex. 1964 M. M. GALLOWAY President, First Capitol Bank, West Columbia, Tex. 1965 Appointed by Board of Governors: MAX LEVINE 1 President, Foley's, Houston, Tex. 1963 EDGAR H. HUDGINS Ranching—Partner in Hudgins Division of J. D. Hudgins, Hungerford, Tex. 1964 D. B. CAMPBELL Works Manager, Sabine River Works, E. I. du Pont de Nemours & Company, Orange, Tex. 1965 SAN ANTONIO BRANCH Appointed by Federal Reserve Bank: DONALD D. JAMES Vice President, The Austin National Bank, Austin, Tex. 1963 FORREST M. SMITH President, National Bank of Commerce of San Antonio, Tex. 1963 MAX A. MANDEL President, The Laredo National Bank, Laredo, Tex. 1964 DWIGHT D. TAYLOR President, Pan American State Bank, Brownsville, Tex. 1965 Appointed by Board of Governors: G. C. HAGELSTEIN 1 President and General Manager, Union Stock Yards San Antonio, Tex. 1963 HAROLD D. HERNDON Independent Oil Operator, San Antonio, Tex. 1964 JOHN R. STOCKTON Professor of Business Statistics and Director of Bureau of Business Research, The University of Texas, Austin, Tex. 1965 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO Class A: CARROLL F. BYRD Chairman of the Board and President, The First National Bank of Willows, Calif. 1963 CHARLES F. FRANKLAND President, The Pacific National Bank of Seattle, Wash. 1964 M. VILAS HUBBARD President and Chairman of the Board, Citizens Commercial Trust and Savings Bank of Pasadena, Calif. 1965 1 Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 161_ District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued Term expires Class B: Dec. 31 JOSEPH ROSENBLATT President, The Eimco Corporation, Salt Lake City, Utah 1963 WALTER S. JOHNSON Chairman of the Board, American Forest Products Corporation, San Francisco, Calif. 1964 FRED H. MERRILL President, Fireman's Fund Insurance Company, San Francisco, Calif. 1965 Class C.- JOHN D. FREDERICKS 2 President, Pacific Clay Products, Los Angeles, Calif. 1963 FREDERIC S. HIRSCHLER President, The Emporium Capwell Company, San Francisco, Calif. 1964 F. B. WHITMAN 2 President, The Western Pacific Railroad Company, San Francisco, Calif. 1965 LOS ANGELES BRANCH Appointed by Federal Reserve Bank: RALPH V. ARNOLD President, First National Bank of Ontario, Calif. 1963 DOUGLAS SHIVELY President, Citizens State Bank of Santa Paula, Calif. 1964 ROY A. BRITT President, Citizens National Bank, Los Angeles, Calif. 1964 Appointed by Board of Governors: ROBERT J. CANNON1 President, Cannon Electric Company, Los Angeles, Calif. 1963 S. ALFRED HALGREN Vice President and Director, Carnation Company, Los Angeles, Calif. 1964 PORTLAND BRANCH Appointed by Federal Reserve Bank: C. B. STEPHENSON Chairman of the Board, The First National Bank of Oregon, Portland, Oreg. 1963 D. S. BAKER President, The Baker-Boyer National Bank, Walla Walla, Wash. 1964 E. M. FLOHR President, The First National Bank of Wallace, Idaho 1964 Appointed by Board of Governors: GRAHAM J. BARBEY President, Barbey Packing Corporation, Astoria, Oreg. 1963 RAYMOND R. RETER 1 Reter Fruit Company, Medford, Oreg. 1964 SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank: OSCAR HILLER President, Butte County Bank, Arco, Idaho 1963 J. E. BRINTON President, The First National Bank of Ely, Nev. 1964 REED E. HOLT President, Walker Bank & Trust Company, Salt Lake City, Utah 1964 1 Chairman. 2 Deputy Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN - FEBRUARY 1963 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued SALT LAKE CITY BRANCH—Continued Term expires Appointed by Board of Governors: Dec. 31 HOWARD W. PRICE Executive Vice President, The Salt Lake Hardware Co., Salt Lake City, Utah 1963 THOMAS B. ROWLAND * President and General Manager, Rowland's Inc., Pocatello, Idaho 1964 SEATTLE BRANCH Appointed by Federal Reserve Bank: JOSHUA GREEN, JR. Chairman of the Board, Peoples National Bank of Washington, Seattle, Wash. 1963 CHAS. H. PARKS Executive Vice President, Seattle-First National Bank, Spokane and Eastern Division, Spokane, Wash. 1964 M. F. HASTINGS President, The First National Bank of Ferndale, Wash. 1964 Appointed by Board of Governors: HENRY N. ANDERSON1 President, Twin Harbors Lumber Company, Aberdeen, Wash. 1963 ROBERT D. O'BRIEN President, Pacific Car and Foundry Company, Seattle, Wash. 1964 1 Chairman. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Collection of Noncash Items Grace Periods in Computing Twelve Months Interest on Savings Deposits The Board of Governors, effective January 1, 1964, has amended Section 207.1 of Regulation G, The Board recently was asked for an opinion entitled Collection of Noncash Items, by adding as to whether the so-called "grace periods" pera new paragraph (d). The purpose of this amend- mitted by Section 217.3 (d) of Regulation Q, may ment is to reduce the volume of items collected by be taken into account in determining the maximum the Federal Reserve Banks as "cash items" which, rate of interest that may be paid on a savings because of their physical nature, require special deposit. handling. The text of the amendment reads as The Supplement to Regulation Q provides that follows: a member bank may pay interest at the maximum rate of 4 per cent per annum, compounded quarterly, "on, that portion of any savings deposit that AMENDMENT TO REGULATION G has remained on deposit for not less than 12 months." Section 217.3 (d) of Regulation Q pro- Effective January 1, 1964, paragraphs (d) vides that a member bank may pay interest on a through (/) of Section 207.1 are redesignated as savings deposit received during the first 10 calparagraphs (e) through (g), respectively, and the endar days of any calendar month at the applicable following new paragraph (d) is added: maximum rate permitted, calculated from the first day of such calendar month, and may pay SECTION 207.1—DEFINITION OF NONCASH ITEMS interest on a savings deposit withdrawn during the last three business days of any calendar month (d) Checks, drafts, and other items with special ending a regular quarterly or semiannual interest instructions or requiring special handling. period at the applicable maximum rate permitted by the Regulation, calculated to the end of such Maximum Interest on Savings Deposits Acquired calendar month. from Absorbed Bank Accordingly, giving effect to the purpose of allowing these "days of grace," it is the Board's The Board recently considered the question opinion that if, for example, funds were deposited whether savings deposits that have been on deposit in a savings account in a member bank during in another bank for a period of at least 12 months the first 10 calendar days of January 1962 and and which are acquired by a member bank through withdrawn during the last three business days of assumption of liability must remain on deposit for December 1962, Regulation Q permits interest to an additional 12 months in order to receive interest be paid thereon at the present maximum rate of at the maximum 4 per cent rate. 4 per cent per annum. Although the words "any savings deposit that has remained on deposit," as contained in the Supplement to Regulation Q (Section 217.6), con- Applicability of Bank Service Corporation Act in Certain Bank Holding Company Situations template that normally this means a deposit in the same bank, the Board is of the opinion that in Questions have been presented to the Board of cases where a member bank takes over another Governors regarding the applicability of the rebank by merger, consolidation, or purchase of cently enacted Bank Service Corporation Act assets, savings accounts in such other bank may (Public Law 87-856, approved October 23, 1962) be treated as having been on deposit in the result- in cases involving service corporations that are ing bank for the time they were on deposit in the subsidiaries of bank holding companies under the absorbed bank. Bank Holding Company Act of 1956. In addition 163 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 to being charged with the administration of the ample, of the electronic data processing of delatter Act, the Board is named in the Bank Service posit accounts), the holding company's owner- Corporation Act as the Federal supervisory agency ship of the corporation's shares in the situation with respect to the performance of bank services described above clearly is permissible under that for State member banks. section of the Act. (1) Holding company-owned corporation serv- (2) Bank service corporation owned by holding only subsidiary banks,—One question is ing company subsidiaries and serving also other whether the Bank Service Corporation Act is ap- banks.—The other question concerns the applicaplicable in the case of a corporation, wholly owned bility of the Bank Service Corporation Act and the by a bank holding company, which is engaged in Bank Holding Company Act in the case of a corperforming "bank services," as defined in Section poration, all the stock of which is owned either l(b) of the Act, exclusively for subsidiary banks by a bank holding company and its subsidiary of the holding company. banks together or by the subsidiary banks alone, Except as noted below with respect to Section which is engaged in performing "bank services," 5 thereof, the Bank Service Corporation Act is not as defined in Section l(b) of the Bank Service applicable in this case. This is true because none Corporation Act, for the subsidiary banks and for of the stock of the corporation performing the other banks, as well. services is owned by any bank and the corporation, In contrast to the situation under question (1), therefore, is not a "bank service corporation" as the corporation in this case is a "bank service defined in Section l(c) of the Act. A corporation corporation" within the meaning of Section l(c) cannot meet that definition unless part of its stock of the Bank Service Corporation Act because of is owned by two or more banks. The situation the ownership by each of the subsidiary banks of clearly is unaffected by Section 2(b) of the Act a part of the corporation's stock. This stock ownerwhich permits a corporation that fell within the ship is one of the important facts differentiating definition initially to continue to function as a this case from the first one. Being a bank service bank service corporation although subsequently corporation, the corporation in question is subject only one of the banks remains as a stockholder in to Section 3 of the Act concerning applications the corporation. to bank service corporations by competitive banks However, although it is not a bank service cor- for bank services, and to Section 4 forbidding a poration, the corporation in question and each of bank service corporation from engaging in any the banks for which it performs bank services are activity other than the performance of bank servsubject to Section 5 of the Bank Service Corpora- ices for banks. Section 5, mentioned previously tion Act. That section, which requires the fur- and relating to "assurances," also is applicable in nishing of certain assurances to the appropriate this case. Federal supervisory agency in connection with the The other important difference between this performance of bank services for a bank, is ap- case and the situation in question (1) is that here plicable whether such services are performed by a the bank service corporation performs services bank service corporation or by others. for nonsubsidiary banks, as well as for subsidiary Section 4(a)(l) of the Bank Holding Company banks. This is permissible because Section 2(a) Act prohibits the acquisition by a bank holding of the Bank Service Corporation Act, which aucompany of "direct or indirect ownership or con- thorizes any two or more banks to invest limited trol" of shares of a nonbanking company, subject amounts in a bank service corporation, removes to certain exceptions. Section 4(c)(l) of the Act all limitations and prohibitions of Federal law exexempts from Section 4(a)(l) shares of a com- clusively relating to banks that otherwise would pany engaged "solely in the business of furnishing prevent any such investment. From the legislative services to or performing services for" its bank history of Section 2(a), it is clear that Section 6 holding company or subsidiary banks thereof. of the Bank Holding Company Act is among the Assuming that the bank services performed by the limitations and prohibitions so removed. But for corporation in question are "services" of the kinds such removal, Section 6(a)(l) of that Act would contemplated by Section 4(c)(l) of the Bank make it unlawful for any of the subsidiary banks Holding Company Act (as would be true, for ex- of the bank holding company in question to own Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

165 LAW DEPARTMENT stock in the bank service corporation subsidiary "10 per centum [of the bank's] . . . paid-in and of the holding company, as the exemption in Sec- unimpaired capital and unimpaired surplus." tion 6(b)(l) would not apply because of the The Board's view is that this aspect of the servicing by the bank service corporation of non- matter should be determined in accordance with subsidiary banks. the principles set forth in the January, 1963 FED- Because the bank service corporation referred ERAL RESERVE BULLETIN, at page 9, involving to in the question is serving banks other than the the application of Sections 4(a)(l) and 4(c)(4) subsidiary banks, the bank holding company is not of the Bank Holding Company Act in the light exempt under Section 4(c) (1) of the Bank Hold- of Section 302(b) of the Small Business Investing Company Act from the prohibition of acquisi- ment Act limiting the amount eligible for investtion of nonbanking interests in Section 4(a)(l) of ment by a national bank in the shares of a small that Act. The bank holding company, however, business investment company to two per cent of is entitled to the benefit of the exemption in Sec- the bank's "capital and surplus." tion 4(c)(4) of the Act. That section exempts Except for the differences in the percentage from Section 4(a) "shares which are of the kinds figures, the investment limitation in Section 302(b) and amounts eligible for investment by National of the Small Business Investment Act is essentially banking associations under the provisions of Sec- the same as the investment limitation in Section tion 5136 of the Revised Statutes." Section 5136 2(a) of the Bank Service Corporation Act since, provides, in part, that: "Except as hereinafter as an accounting matter and for the purposes under provided or otherwise permitted by law, nothing consideration, "capital and surplus" may be reherein contained shall authorize the purchase by garded as equivalent in meaning to "paid-in and the association for its own account of any shares unimpaired capital and unimpaired surplus." Acof stock of any corporation." As the provisions of cordingly, the maximum permissible investment Section 2(a) of the Bank Service Corporation Act by a bank holding company system in the stock and its legislative history make it clear that shares of a bank service corporation should be deterof a bank service corporation are of a kind eligible mined in accordance with the formula prescribed for investment by national banks under Section in 1963 FEDERAL RESERVE BULLETIN, p. 9, re- 5136, it follows that the direct or indirect owner- ferred to above. ship or control of such shares by a bank holding company are permissible within the amount limita- Applicability of the Bank Holding Company Act tion discussed below. to Industrial Banks (3) Limit on investment by bank holding company system in stock of bank service corporation. Questions have been presented to the Board —In the situation presented by question (2) the of Governors regarding the applicability of the bank holding company clearly owns or controls, Bank Holding Company Act of 1956 (12 U.S.C. directly or indirectly, all of the stock of the bank 1841 et seq.) to the acquisition of the stock of service corporation. The remaining question, there- so-called "industrial banks." fore, is whether the total direct and indirect in- Section 2(c) of the Act (12 U.S.C. 1841 (c)) vestment of the bank holding company in the bank provides that the term "bank" means, for purservice corporation exceeds the amount permissible poses of the Act, "any national banking associaunder the Bank Holding Company Act. tion or any State bank, savings bank, or trust The effect of Sections 4(a)(l) and 4(c)(4) company * * *." of the Bank Holding Company Act is to limit Industrial banks are State-chartered institutions the amount of shares of a bank service cor- which engage in the furnishing of consumer credit. poration that a bank holding company may own Although these institutions customarily accept or control, directly or indirectly, to the amount from borrowers instalment payments on "investeligible for investment by a national bank, as ment certificates" (or similar instruments, by whatpreviously indicated. Under Section 2(a) of the ever name called) the proceeds of which, when Bank Service Corporation Act, the amount of fully paid, may be used to retire the loan, they shares of a bank service corporation eligible for may also issue either instalment or paid-up ininvestment by a national bank may not exceed vestment certificates unrelated to loan transactions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 and, in some States, may receive "savings de- falls within one of the exceptions set forth in posits" evidenced by passbook or otherwise. Section 4 of the Act. Since industrial banks are obviously not national banking associations, savings banks, or trust Orders Under Bank Merger Act companies, the question is whether they are to be regarded as "State banks" under the Act. The Board of Governors of the Federal Re- It appears that a principal purpose of the Act serve System has issued the following Orders and was the control of concentration of commercial Statements with respect to applications for apbanking resources because of their influence on the proval of the merger, consolidation, or acquisition money and credit system of the country. While of assets of certain banks: not conclusive, statements in the Committee Reports on the Act indicate that it was directed BANK OF JAMESTOWN, JAMESTOWN, NEW principally at control of "commercial" banks, and YORK statements made during debates on the bill suggest specifically that "industrial banks," as that In the matter of the application of Bank of term is usually understood, were not regarded as Jamestown for approval of merger with Clymer being engaged in commercial banking. In any State Bank. event, it is clear that the Congress did not intend to include all financial intermediaries within the ORDER APPROVING MERGER OF BANKS purview of the Act, as is evidenced by subsequent There has come before the Board of Governors, enactment of other legislation to regulate holding pursuant to the Bank Merger Act of 1960 (12 companies controlling savings and loan associa- U.S.C. 1828(c)), an application by Bank of tions. Therefore, while the legislative history of the Jamestown, Jamestown, New York, a member Act is not clear regarding the status of industrial bank of the Federal Reserve System, for the banks thereunder, it seems reasonable to conclude Board's prior approval of the merger of that bank that the key term "State bank" in the Act was emand the Clymer State Bank, Clymer, New York, ployed by the Congress in its restrictive sense as under the charter and title of the former. As an a word of art (i.e., limited in applicability to those incident to the merger, the sole office of Clymer institutions engaged in operations characteristic State Bank would be operated as a branch of the of commercial banking) rather than as a "basket" Bank of Jamestown. Notice of the proposed merprovision. ger, in form approved by the Board, has been In light of the foregoing, it is the opinion of the published pursuant to said Act. Board that, taking into account the spirit and Upon consideration of all relevant material in purpose of the Act, industrial banks are not within the light of the factors set forth in said Act, inthe purview of the term "State bank" as used in cluding reports furnished by the Comptroller of the Act, unless in a particular case, regardless the Currency, the Federal Deposit Insurance Corof the title of the institution or the form of the poration, and the Department of Justice on the transaction, it accepts deposits subject to check or competitive factors involved in the proposed otherwise accepts funds from the public that are, merger, in actual practice, repaid on demand, as are de- IT IS HEREBY ORDERED, for the reasons set forth mand or savings deposits held by commercial in the Board's Statement of this date, that said banks. application be and hereby is approved, provided Accordingly, the Board concludes that industrial that said merger shall not be consummated (a) banks and similar institutions that do not fall within seven calendar days after the date of this within the exception above stated are not "banks" Order or (b) later than three months after said within the meaning of the Act and control of such date. institutions does not cause a corporation to be a Dated at Washington, D. C, this 14th day of "bank holding company." It follows also, of course, January, 1963. that, since such an institution is not a bank for purposes of the Act, its stock may not be acquired By order of the Board of Governors. by a bank holding company, unless the acquisition Voting for this action: Chairman Martin, and Gov- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 167 ernors Balderston, Mills, Robertson, and Shepardson. operation of Clymer Bank and also would solve Absent and not voting: Governors King and Mitchell. the serious management succession problem that (Signed) MERRITT SHERMAN, has followed the bank's quite recent loss of its two Secretary. active officers through resignation and illness. No [SEAL] inconsistency with the purposes of 12 U.S.C, Ch. 16, is indicated. STATEMENT Convenience and needs of the communities. Bank of Jamestown, Jamestown, New York Jamestown (1960 city population 42,000 and trade ("Jamestown Bank"), with deposits of $44.8 mil- area population 150,000) is situated in Chautaulion as of June 29, 1962, has applied, pursuant to qua County in southwestern New York about 75 the Bank Merger Act of 1960 (12 U.S.C. miles from Buffalo. The economy of the area, de- 1828(c)), for the Board's prior approval of the pendent principally on diversified manufacturing merger of that bank and Clymer State Bank, Cly- and agriculture, is stable. Four offices of Jamesmer, New York ("Clymer Bank"), with deposits town Bank are in Jamestown and the bank's reof $2.4 million as of the same date. The banks maining office is in the village of Sherman, about would merge under the charter and title of James- 22 miles west of Jamestown and 12 miles north town Bank, which is a member State bank of the of Clymer. The service area of Jamestown Bank Federal Reserve System; and, as an incident to is limited mainly to the communities of Jamesthe merger, the sole office of Clymer Bank would town and Sherman. become a branch of the resulting bank, increas- The unincorporated village of Clymer (popuing the number of its offices from 5 to 6. lation 1,400) is situated in the extreme south- Under the Act, the Board is required to con- western corner of New York about 25 miles southsider, as to each of the banks involved, (1) its west of Jamestown. Clymer Bank is the only bankfinancial history and condition, (2) the adequacy ing office in the village, and the area served by of its capital structure, (3) its future earnings prosthe bank has a population of about 2,000. This pects, (4) the general character of its managearea, as well as that surrounding Sherman, is ment, (5) whether its corporate powers are conchiefly agricultural and has experienced little popusistent with the purposes of 12 U.S.C, Ch. 16 (the lation growth over the past decade. Federal Deposit Insurance Act), (6) the con- Consummation of the proposed merger would venience and needs of the community to be served, affect principally the convenience and needs of the and (7) the effect of the transaction on competi- Clymer area. The resulting bank plans to make tion (including any tendency toward monopoly). available to the area through its Clymer branch a The Board may not approve the transaction unbroader range of services, such as FHA and VA less, after considering all these factors, it finds the loans, and trust and other specialized services. transaction to be in the public interest. Moreover, the resulting bank would be able to Banking factors. Jamestown Bank has a satismake more and larger loans for which there apfactory financial history. The bank also has a pears to be a demand in the Clymer area. satisfactory financial condition, an adequate cap- Competition. Little, if any, competition exists ital structure, and its earnings prospects are favorbetween Clymer Bank and the four offices of able. This would be equally true of the resulting Jamestown Bank in Jamestown because of the bank which would be under the competent manintervening distance of 25 miles. There is moderate agement of Jamestown Bank. competition for business from the countryside be- Clymer Bank has had a reasonably satisfactory financial history and capital structure, and its tween Clymer Bank and the branch of Jamesearnings have been above average for banks of town Bank in Sherman, 12 miles north of Clymer. comparable size. Recently, however, the bank's Although this competition would be eliminated financial condition has deteriorated, partially be- if the proposal were effected, services of banks cause of the strain on its resources that has re- other than Jamestown Bank would remain reasonsulted from attempts to meet requests for loans. ably accessible to persons in the communities of Consummation of the proposal would provide Clymer and Sherman. There are two banks in strengthened management to what has been the Corry, Pennsylvania, about 8 miles south of Cly- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 mer, and one of the two other banks with main IT IS HEREBY ORDERED, for the reasons set forth offices in Jamestown has a branch in Mayville, 9 in the Board's Statement of this date, that said miles northeast of Sherman. Consummation of application be and hereby is approved, provided the proposal would have no significant impact on that said merger shall not be consummated (a) banking competition in Jamestown. within seven calendar days after the date of this Summary and conclusion. Effectuation of the Order or (b) later than three months after said proposal would replace Clymer Bank with a date. branch of Jamestown Bank and eliminate a mod- Dated at Washington, D. C, this 17th day of erate amount of competition between the former January, 1963. and the latter's branch at Sherman. Other sources By order of the Board of Governors. of banking services, however, would remain Voting for this action: Chairman Martin, and Govreasonably accessible to persons in these two comernors Balderston, Mills, Robertson, and Shepardson. munities. This, together with the management Absent and not voting: Governors King and Mitchell. strength and succession, and increased banking (Signed) MERRITT SHERMAN, services and resources that the transaction would Secretary. be expected to bring to the Clymer community, [SEAL] outweigh the adverse considerations relating to the competitive factor. STATEMENT Accordingly, the Board finds this merger to be in Lock Haven Trust Company, Lock Haven, the public interest. Pennsylvania ("Lock Haven Trust"), with deposits of $13.8 million,* has applied, pursuant to the LOCK HAVEN TRUST COMPANY, LOCK Bank Merger Act of 1960 (12 U.S.C. 1828(c)), HAVEN, PENNSYLVANIA for the Board's prior approval of the merger of that bank and The Mill Hall State Bank, Mill In the matter of the application of Lock Haven Hall, Pennsylvania ("Mill Hall Bank"), with de- Trust Company for approval of merger with The posits of $3.4 million.* The banks would merge Mill Hall State Bank. under the charter and title of Lock Haven Trust, which is a State-chartered member of the Federal ORDER APPROVING MERGER OF BANKS Reserve System. As an incident to the merger, the sole office of Mill Hall Bank would become There has come before the Board of Governors, a branch of the resulting bank, increasing the numpursuant to the Bank Merger Act of 1960 (12 ber of its offices from one to two. U.S.C. 1828(c)), an application by Lock Haven Under the law, the Board is required to con- Trust Company, Lock Haven, Pennsylvania, a sider, as to each of the banks involved, (1) its member bank of the Federal Reserve System, for financial history and condition, (2) the adequacy the Board's prior approval of the merger of that of its capital structure, (3) its future earnings bank and The Mill Hall State Bank, Mill Hall, prospects, (4) the general character of its man- Pennsylvania, under the charter and title of the agement, (5) whether its corporate powers are former. As an incident to the merger, the sole consistent with the purposes of 12 U.S.C, Ch. office of The Mill Hall State Bank would be op- 16 (the Federal Deposit Insurance Act), (6) the erated as a branch of Lock Haven Trust Company. convenience and needs of the community to be Notice of the proposed merger, in form approved served, and (7) the effect of the transaction on by the Board, has been published pursuant to said competition (including any tendency toward Act. monopoly). The Board may not approve the Upon consideration of all relevant material in transaction unless, after considering all these facthe light of the factors set forth in said Act, intors, it finds the transaction to be in the public cluding reports furnished by the Comptroller of interest. the Currency, the Federal Deposit Insurance Corporation, and the Department of Justice on the * Deposit figures are as of July 9, 1962, for Lock competitive factors involved in the proposed Haven Trust and as of April 16, 1962, for Mill Hall merger, Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

169 LAW DEPARTMENT Banking factors. Lock Haven Trust has owned simplification in administration and related beneover 50 per cent of the stock of Mill Hall Bank fits, referred to previously, would tend to inure to continuously since 1927, when stock control was the customers of the resulting bank and the comfirst acquired as a measure to restore confidence munities involved. in the latter bank. The same person is president Competition. Mill Hall Bank is the only banking of both banks which also have two common office in Mill Hall. Lock Haven has one bank in directors. These persons have been dominant in addition to Lock Haven Trust, which is the larger the satisfactory management of both banks and of the two institutions. Consummation of the transthey will continue to be influential in the manage- action would increase Lock Haven Trust's share ment of the resulting bank. Each bank has a sound of the total IPC deposits of commercial banks in financial condition, an adequate capital structure, its service area from around 40 per cent to 50 and both have satisfactory earnings prospects. per cent, and its share of total loans of com- These attributes would also characterize the re- mercial banks in the area from about 44 per cent sulting bank which, together with its customers, to 54 per cent. The other Lock Haven bank has would be expected to benefit from the sim- about 33 per cent and 28 per cent of the total plification in management and related efficiencies of such deposits and loans, respectively. Two implicit in the proposal. No inconsistencies with smaller banks are located in Avis and Beech Creek the purposes of 12 U.S.C., Ch. 16 are indicated. which lie, respectively, about 9 miles northeast Convenience and needs of the communities. and about 10 miles southwest of Lock Haven. Lock Haven (1960 population 13,000) is the seat While consummation of the transaction would of Clinton County (1960 population 38,000) in increase Lock Haven Trust's dominant position in central Pennsylvania, and is primarily an indus- its service area, it does not otherwise appear that trial community which is the chief trading center there would be any significant effect on competiin the County. Lock Haven Trust's service area tion. As indicated earlier, Lock Haven Trust has (i.e., the geographical area from which the bank owned more than 50 per cent of the stock of Mill derives 75 per cent or more of its deposits, both Hall Bank for over 35 years, and the same persons demand and time, of individuals, partnerships, are dominant in the management of the two banks, and corporations, referred to as "IPC" deposits) the policies of which have been much the same. has a population of at least 22,000. The controlling stock interest on which this durable Mill Hall (1960 population 1,700) is prin- relationship between the two banks has been based cipally a residential community 3 miles southwest would seem much less likely to terminate than of Lock Haven. The service area of Mill Hall might reasonably be expected if the stock were Bank has a population of over 7,000, and the owned by common individual owners. In view of bank's total area of service extends to Lock Haven. these circumstances and those noted previously, Virtually all of the service area of Mill Hall Bank effectuation of the transaction would unite two is within the service area of Lock Haven Trust. banks which have been operating as separate units, Consummation of the transaction would have for the most part, in name only. its main effect on the convenience and needs of Summary and conclusion. The proposal would Mill Hall. The ownership and management ties unite two banks which are already under common between Lock Haven Trust and Mill Hall Bank ownership and management, and between which long have been well-known publicly, and Mill little or no true competition exists. The merger Hall Bank has frequently referred its customers would eliminate administrative duplication and to Lock Haven Trust for banking accommodations tend to increase efficiency with probable benefits which the smaller bank could not supply. Never- from increased availability of expanded banking theless, operation of Mill Hall Bank as a branch services. Otherwise it is expected that there would of Lock Haven Trust would make the facilities be little or no change with respect to banking in of the trust and instalment loan departments and the Lock Haven-Mill Hall area as a result of this the higher lending limit of the latter institution transaction. more conveniently available to bank customers in Accordingly, the Board finds that the proposed Mill Hall and vicinity. Moreover, the consequent transaction would be in the public interest. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 THE HACKENSACK TRUST COMPANY, Jersey ("Bogota Bank"), with deposits of $8.6 HACKENSACK, NEW JERSEY million.* The banks would merge under the charter and title of Hackensack Trust, which is a In the matter of the application of The Hack- State-chartered member bank of the Federal Reensack Trust Company for approval of merger serve System. As an incident to the merger, the with Bank of Bogota. sole office of Bogota Bank would become a branch ORDER APPROVING MERGER OF BANKS of Hackensack Trust, increasing the number of its offices from six to seven. There has come before the Board of Governors, Under the law, the Board is required to conpursuant to the Bank Merger Act of 1960 (12 sider, as to each of the banks involved, (1) its U.S.C. 1828 (c)), an application by The Hackfinancial history and condition, (2) the adequacy ensack Trust Company, Hackensack, New Jerof its capital structure, (3) its future earnings sey, for the Board's prior approval of the merprospects, (4) the general character of its manger of that bank and the Bank of Bogota, agement, (5) whether its corporate powers are Bogota, New Jersey, under the charter and consistent with the purposes of 12 U.S.C, Ch. 16 title of the former. As an incident to the mer- (the Federal Deposit Insurance Act), (6) the conger, the sole office of the latter bank would be venience and needs of the community to be operated as a branch of the former bank. Notice served, and (7) the effect of the transaction on of the proposed merger, in form approved by the competition (including any tendency toward Board, has been published pursuant to said Act. monopoly). The Board may not approve the trans- Upon consideration of all relevant material in action unless, after considering all these factors, the light of the factors set forth in said Act, init finds the transaction to be in the public interest. cluding reports furnished by the Comptroller of Banking factors. Hackensack Trust and Bogota the Currency, the Federal Deposit Insurance Cor- Bank have satisfactory financial histories. The poration, and the Department of Justice on the financial condition of Bogota Bank also is satiscompetitive factors involved in the proposed merfactory, its capital structure is adequate, and the ger, bank's earnings compare well with the average for IT IS HEREBY ORDERED, for the reasons set forth banks of similar size in the Third Federal Reserve in the Board's Statement of this date, that said District. The management of Bogota Bank, while application be and hereby is approved, provided satisfactory at present, is lacking in depth, and the that said merger shall not be consummated (a) bank has not been successful in its efforts to rewithin seven calendar days after the date of this cruit a successor to its present president. Order or (b) later than three months after said The street on which Bogota Bank is located date. was once the main thoroughfare of Bogota. How- Dated at Washington, D. C, this 30th day of ever, the elimination of railroad grade crossings January, 1963. a few years ago left the bank on a street ending By order of the Board of Governors. at the railroad with access to the more densely Voting for this action: Chairman Martin, and Govpopulated areas restricted to a bridge and underernors Balderston, Mills, and Shepardson. Voting against this action: Governors Robertson and Mitchell. pass. This appears to have had an unfavorable Absent and not voting: Governor King. effect on the growth of Bogota Bank which has not (Signed) MERRITT SHERMAN, kept pace with the growth of the more accessible Secretary. larger bank in Bogota. [SEAL] Hackensack Trust's financial condition is generally satisfactory, although its capital structure STATEMENT is somewhat below an appropriate level. The The Hackensack Trust Company, Hackensack, bank's earnings prospects are favorable, and its New Jersey ("Hackensack Trust"), with deposits management is competent. of $64.6 million,* has applied, pursuant to the The resulting bank would be under the man- Bank Merger Act of 1960 (12 U.S.C. 1828(c)), agement of Hackensack Trust and would be exfor the Board's prior approval of the merger of that bank and the Bank of Bogota, Bogota, New * Deposit figures are as of June 30, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 171 pected to have favorable earnings prospects. The out-of-County banks, including banks in New financial condition of the resulting bank would York City. compare favorably with that now prevailing at Consummation of the proposal also would make Hackensack Trust, but the need for some strength- available to present and prospective customers of ening of capital structure would continue. Bogota Bank a broader range of services, including There is no evidence that the corporate powers financing of seasonal inventories and plant expanof the banks are, or would be, inconsistent with sion, comprehensive personal loan service, prop- 12 U.S.C., Ch. 16. erty improvement loans, payroll deduction plans Convenience and needs of the communities. for industrial employees, and expanded trust Hackensack and the Borough of Bogota (1960 services. populations 31,000 and 8,000, respectively) are Competition. The main office of Hackensack located in Bergen County, which is situated on Trust is about one mile west of Bogota Bank, the west bank of the Hudson River opposite New which would become the larger bank's nearest York City. Hackensack lies in the southern part branch if the proposed merger were effectuated. of the County, of which it is the seat, about 6 The Hackensack River separates the service areas miles west of New York City, and is separated of the banks (i.e., the areas from which each of from Bogota on the east by the Hackensack River. the banks derives 75 per cent or more of its During the past decade the County (1960 popu- deposits, both demand and time, of individuals, lation 780,000) has been one of the most rapidly partnerships, and corporations). Nevertheless, it developing industrial and residential sections of is evident that the two banks are in competition the State. While the areas for expansion in Hack- with one another, as well as with the other banks ensack and Bogota are quite limited, each benefits in the immediate region, and with larger banks economically from the residential and industrial in the County and in New York City. There are growth of neighboring communities. 13 depositors with accounts in both banks, and Hackensack Trust, with its main office and one no common borrowers. Of Hackensack Trust's branch in Hackensack, is the second largest of total deposits and loans, 3.6 per cent and .58 per the four commercial banks in the city. The four cent, respectively, originate in the service area out-of-town branches of Hackensack Trust serve of Bogota Bank, while 9.1 per cent and 13.6 per areas south and west of Hackensack. Bogota Bank cent of the deposits and loans, respectively, of is the smaller of the two banks in the borough. Bogota Bank originate in the service area of The areas served by Hackensack Trust and Bogota Hackensack Trust. Bank encompass much of the commercial and in- The relatively high proportion of deposits and dustrial activity in the County. loans from Hackensack which are held by Bogota Both Hackensack and Bogota are served by Bank appears to be due to personal efforts of its numerous other banks with offices in the County, president. In view of the difficulty which the bank as well as by New York City banks which advertise has experienced in trying to provide for managein the County and are conveniently accessible to ment succession, it seems probable that the bank's the many residents of Hackensack and Bogota business originating in Hackensack would diminwho commute to and from the City. ish with his retirement, and that the expanded loan If the proposal were consummated, the result- limit and expanded services which the merger ing bank would have a loan limit to any one would bring to Bogota would serve to strengthen borrower of $421,000, as against the present limits competition in the Hackensack-Bogota area. of $300,000 for Hackensack Trust and $80,000 Thirty-two commercial banks with 85 offices are for Bogota Bank. The aggregate credit needs of located in Bergen County. If the proposed merger the County's highly diversified industrial and com- were consummated, Hackensack Trust would be mercial complex are large, and Hackensack Trust the third, rather than fourth, largest bank in the has a number of customers with maximum credit County, but would continue to rank in second lines. The resulting bank would be able to serve place in Hackensack. Additional competition in the credit needs of an increased number of bor- the County is provided by out-of-County banks; rowers who now seek credit accommodations from savings and loan associations in the service areas the two largest banks in the County, or from larger of the two banks offer strong competition for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 savings and mortgage loans; and credit unions, quite as easily as a larger bank can move sales finance companies and personal loan com- a branch. panies are also active competitors in the County. 3. If the larger bank has a real need for an Summary and conclusion. The Bank Merger Act increased loan limit, in order to attract the requires the Board to take into consideration not business of larger concerns than it can now only the effect on competition between the banks accommodate, there are other ways than involved, but also the effect on the general com- merger of increasing its capital. petitive situation in the areas served by those 4. There is nothing in the record—especially in banks. While consummation of the proposal would view of the residential character of the comeliminate the moderate competition existing be- munity—to indicate unsatisfied credit or tween Hackensack Trust and Bogota Bank, there service needs in Bogota on a scale that would would remain readily accessible to residents of justify approval of the application to merge Bogota a wide variety of alternative sources for a sound independent bank and eliminate the bank services and credit. Furthermore, the trans- competition it affords. action would replace Bogota Bank with the office 5. There is nothing in the record to establish of a bank offering a broader range of banking a likelihood that the merged institution, with services, remove the present problem with respect its head office in Hackensack, will better to management depth and succession at Bogota serve (through a branch office) the banking Bank, strengthen the ability of Hackensack Trust needs of the people in Bogota than is now to meet the credit needs of its customers, and being done by the existing Bank of Bogota. enable that bank to compete more effectively in If there are needs on the part of some people the heavily populated and highly industrialized in Bogota for banking services more specialized area concerned without adverse effects on other than those provided by the Bank of Bogota, those banks serving Hackensack and Bogota. needs can admittedly be met with ease through For these reasons, the Board finds that the remaining alternative sources. But the existence of proposed merger would be in the public interest. those alternative sources of banking facilities does not comfort me, as it does the majority, for here it is being used as a justification for the elimination DISSENTING STATEMENT OF GOVERNOR ROBERTof competition which I think should be preserved. SON, WITH WHICH GOVERNOR MITCHELL CONCURS I do not think Congress intended, in enacting Today the majority of the Board is approving the Bank Merger Act of 1960, that competitive the merger of a small, exceptionally sound and neighborhood banks should be absorbed through well-managed neighborhood bank, which has been mergers simply because larger banks would like adequately serving the needs of its residential com- to eliminate competition or because the neighbormunity, into an aggressive larger bank with a head hood banks do not provide the whole gamut of office only 1.1 miles away. The small bank has specialized services which could be provided by been surprisingly successful in competing with the larger institutions. Consequently, I would deny the larger one, so much so that the larger one seeks to application. acquire it. This competition will be eliminated by the merger. ANN ARBOR BANK, ANN ARBOR, This constitutes a basic negative factor which MICHIGAN is not outweighed by any of the reasons cited In the matter of the application of Ann Arbor by the majority. For example: Bank for approval of consolidation with The Dex- 1. Assuming that the success of the smaller ter Savings Bank. bank has been due in part to the efforts of one man, the fact that this man will retire ORDER APPROVING CONSOLIDATION OF BANKS in a few years hardly justifies wiping the There has come before the Board of Governors, bank out of existence today. pursuant to the Bank Merger Act of 1960 (12 2. If the location of the smaller bank, hemmed U.S.C. 1828(c)), an application by Ann Arbor in beyond a railroad underpass, handicaps Bank, Ann Arbor, Michigan, a member bank of its operations, then it could move its office— the Federal Reserve System, for the Board's prior Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

173 LAW DEPARTMENT approval of the consolidation of that bank and Under the law, the Board is required to consider, The Dexter Savings Bank, Dexter, Michigan, as to each of the banks involved, (1) its financial under the charter and title of the former. As an history and condition, (2) the adequacy of its incident to the consolidation, the sole office of The capital structure, (3) its future earnings prospects, (4) the general character of its manage- Dexter Savings Bank would be operated as a ment, (5) whether its corporate powers are conbranch of Ann Arbor Bank. Notice of the prosistent with the purposes of 12 U.S.C, Ch. 16 (the posed consolidation, in form approved by the Federal Deposit Insurance Act), (6) the con- Board, has been published pursuant to said Act. venience and needs of the community to be Upon consideration of all relevant material in served, and (7) the effect of the transaction on the light of the factors set forth in said Act, incompetition (including any tendency toward cluding reports furnished by the Comptroller of monopoly). The Board may not approve the transthe Currency, the Federal Deposit Insurance Cor- action unless, after considering all these factors, poration, and the Department of Justice on the it finds the transaction to be in the public interest. competitive factors involved in the proposed mer- Banking factors. Ann Arbor Bank's financial hisger, tory and condition are satisfactory, its capital IT IS HEREBY ORDERED, for the reasons set forth structure is adequate, and it has satisfactory manin the Board's Statement of this date, that said ap- agement. The earnings prospects of Ann Arbor plication be and hereby is approved, provided that Bank, like the economic prospects for the area, said consolidation shall not be consummated (a) are regarded as favorable. within seven calendar days after the date of this A management problem at the Dexter Bank Order or (b) later than three months after said bears on its future prospects. In 1962 the chief executive officer and two directors of Dexter Bank date. died. Efforts of the bank to recruit an experienced Dated at Washington, D. C, this 5th day of managing officer have been unsuccessful, although February, 1963. some necessary counsel and advice have been ob- By order of the Board of Governors. tained from Ann Arbor Bank. In addition, there exists a need for strengthening the asset condition Voting for this action: Chairman Martin, and Governors Balderston, Mills, Robertson, Shepardson, and and capital structure of Dexter Bank. Mitchell. Absent and not voting: Governor King. The financial condition, capital structure, earnings prospects, and management of the resulting (Signed) MERRITT SHERMAN, bank would be satisfactory. Secretary. There is no indication that the powers exercised [SEAL] by the banks involved are or would be inconsistent with the purposes of 12 U.S.C, Ch. 16. STATEMENT Convenience and needs of the communities. Ann Ann Arbor Bank, Ann Arbor, Michigan, with Arbor (1960 population about 67,000) is about deposits of $63.7 million,3 has applied, pursuant to 40 miles west of Detroit and is the center of a trade the Bank Merger Act of 1960 (12 U.S.C. area with about 240,000 people. The University 1828(c)), for the Board's prior approval of the of Michigan helps to provide Ann Arbor and enconsolidation of that bank and The Dexter Sav- virons with a stable economic base, and the atings Bank, Dexter, Michigan ("Dexter Bank"), traction of manufacturing and research facilities to with deposits of $4.4 million, under the charter the area has contributed to the substantial growth and economic development experienced during the and title of the former. Incident to the consolidapast ten years by Ann Arbor, as well as by tion, the sole office of Dexter Bank would become Washtenaw County, of which Ann Arbor is the a branch of the resulting bank, which would thereseat. fore have six offices, pending the opening of an ad- Dexter (population about 1,700) is about 10 ditional one which Ann Arbor Bank has received miles west of Ann Arbor. While its trade area of permission to establish. some 5,000 to 6,000 persons is essentially agricul- 1 Deposit figures herein are as of June 30, 1962. tural, there are two principal industries employing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 about 1,800. Future growth of Dexter's economy fore remain substantially unchanged by the conis linked with the general growth in the area cen- solidation. Similarly, as to needs for credit and tering on Ann Arbor, in connection with which specialized services beyond those available at Dexthe interrelationship of the two communities would ter Bank, that bank does not effectively compete be expected to increase. with Ann Arbor Bank. Thus, present competition Ann Arbor is served principally by Ann Arbor between the consolidating banks is not such as to Bank and the slightly smaller National Bank and be important to the preservation of a reasonable Trust Company (deposits $55.4 million). Ann choice of banking service for the public concerned. Arbor Bank operates three branches within the This is particularly true now when Dexter Bank city and one at Whitmore Lake, about 10 miles is depending on Ann Arbor Bank for important north. A fourth in-town branch has been ap- management assistance. proved but is not yet in operation. Ann Arbor The consolidation would not significantly affect Trust Company, the only other bank in the city, the present competitive situation in the immediate provides only fiduciary services. The organization Ann Arbor area. It would increase Ann Arbor of a new commercial bank in Ann Arbor, Huron Bank's size further over that of National Bank Valley National Bank, received preliminary ap- and Trust Company, but not so as to give a sigproval from the Comptroller of the Currency in nificant advantage over that bank or so as to affect October 1962. materially the smaller banks in the outlying areas, Dexter Bank is the only banking office in Dexter; and the elimination of the Dexter Bank as an inthere are several other banks in the general area dependent bank would not eliminate a significant but none is nearer than nine miles and, except for alternative source of service for Ann Arbor. the Ann Arbor banks, they do not serve Dexter While the alternatives in Ann Arbor are limited, to any material extent. Because of their size and a new national bank is being organized there, as since Dexter is to some extent a tributary com- previously indicated. munity to Ann Arbor, the two commercial banks Summary and conclusion. The prospects for are alternate sources of banking service to Dexter adequate and convenient banking service to the residents and businesses, and Ann Arbor Bank Dexter community by Dexter Bank as an indehas functioned as Dexter Bank's chief corre- pendent bank are presently in question because spondent. of the failure of the bank's efforts to obtain suc- Consummation of the proposed consolidation cessor management. Consummation of the prowould have little effect on the convenience and posed consolidation with Ann Arbor Bank would needs of Ann Arbor. However, there would be solve this problem as well as the need for immade available in Dexter an office of a bank with provement in the capital position of Dexter Bank. greater resources and higher loan limits than those Elimination of the moderate amount of competiof Dexter Bank which, it is reported, have fre- tion between the two banks would be offset by quently been inadequate to accommodate local these considerations. Furthermore, there also requirements. There also would be more con- would be made available in Dexter the broader veniently available in Dexter banking services not banking services of the larger bank. available at Dexter Bank, such as single payment Accordingly, the Board finds the proposed transloans to individuals, FHA insured and VA guar- action to be in the public interest. anteed real estate and improvement loans, trust FIRST STATE BANK, CANISTEO, services, night depository services, and other spe- NEW YORK cialized services of the Ann Arbor Bank. In the matter of the application of First State Competition. Some of Ann Arbor Bank's busi- Bank for approval of acquisition of assets of ness derives from residents and businesses within Greenwood Branch of Security Trust Company of the service area of the Dexter Bank. Present active Rochester. competition is limited, however, with respect to the relatively high proportion of small customers ORDER APPROVING ACQUISITION OF BANK'S ASSETS in Dexter for which the Ann Arbor banks would There has come before the Board of Goverbe inconvenient alternatives and for which the nors, pursuant to the Bank Merger Act of 1960 scope of choice of banking service would there- (12 U.S.C. 1828(c)), an application by First Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 175 State Bank, Canisteo, New York, a member bank (Greenwood Branch) of about $900 thousand. of the Federal Reserve System, for the Board's Incident to such application, First has also applied, prior approval of its acquisition of the assets of under Section 9 of the Federal Reserve Act, for and assumption of deposit liabilities in the Green- the Board's prior approval of the establishment wood Branch of Security Trust Company of of a branch at the present location of the Green- Rochester, Rochester, New York, and, as an in- wood branch of Security Trust. That office would cident thereto, First State Bank has applied, under be First's only branch. Section 9 of the Federal Reserve Act, for the Under the law, the Board is required to con- Board's prior approval of the establishment of a sider, as to each of the banks involved, (1) its branch by that bank at the present location of financial history and condition, (2) the adequacy Greenwood Branch (Greenwood, New York) of of its capital structure, (3) its future earnings Security Trust Company of Rochester. Notice of prospects, (4) the general character of its managethe proposed acquisition of assets and assumption ment, (5) whether its corporate powers are conof deposit liabilities, in form approved by the sistent with the purposes of 12 U.S.C, Ch. 16 Board of Governors, has been published pursuant (the Federal Deposit Insurance Act), (6) the to said Bank Merger Act. convenience and needs of the community to be Upon consideration of all relevant material, served, and (7) the effect of the transaction including the reports furnished by the Comptroller on competition (including any tendency toward of the Currency, the Federal Deposit Insurance monopoly). The Board may not approve the Corporation, and the Department of Justice on transaction unless, after considering all these facthe competitive factors involved in the proposed tors, it finds the transaction to be in the public transaction, interest. In this case, the situation of the Green- IT IS HEREBY ORDERED, for the reason set forth wood branch will be considered apart from that in the Board's Statement of this date, that said of Security Trust as a whole, so far as may be applications be and hereby are approved, provided appropriate. that said acquisition of assets and assumption of Banking factors. The Greenwood branch was deposit liabilities and establishment of a branch The First National Bank of Greenwood prior to shall not be consummated (a) within seven calen- 1956 when it was merged with Security Trust dar days following the date of this Order, or (deposits about $195 million) largely at the insti- (b) later than three months after said date. gation of the New York State Banking Depart- Dated at Washington, D. C, this 8th day of ment. The deposits of the branch have grown February, 1963. slightly since the merger, but its distance from Security Trust's principal area of operations (about By order of the Board of Governors. 85 miles) has been an obstacle to economic opera- Voting for this action: Chairman Martin, and Govtion of the branch since the demand for banking ernors Balderston, Mills, Robertson, Shepardson, and Mitchell. Absent and not voting: Governor King. service in Greenwood (population about 840) (Signed) MERRTTT SHERMAN, appears to be sufficient to support only a limited Secretary. operation that can work relatively closely with the main office. First, on the other hand, while [SEAL] much smaller than Security Trust, is located only STATEMENT 12 miles from Greenwood, which should enable First State Bank, Canisteo, New York ("First"), First to improve the profitability of the office by with deposits of $4.6 million,* has applied, pur- improving the direct availability of service adesuant to the Bank Merger Act of 1960 (12 U.S.C. quate to Greenwood's needs as well as by im- 1828(c)), for the Board's prior approval of its proving the efficiency with which such service is acquisition of the assets of and assumption of provided. deposit liabilities in the Greenwood Branch of Thus, as to all the banking factors, the absorp- Security Trust Company of Rochester, Roches- tion of the Greenwood branch by First should be ter, New York ("Security Trust"), with deposits beneficial to the operation of that office, and it does not appear that it would be detrimental to * Deposit figures herein are as of September 28, 1962. First's own capital structure, financial condition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 or prospects which, like its management, are pursuant to the Bank Merger Act of 1960 (12 satisfactory. U.S.C. 1828(c)), an application by Peoples Bank Convenience and needs of the communities. of Glen Rock, Glen Rock, Pennsylvania, for the While the banking needs of Greenwood and en- Board's prior approval of the merger of that bank virons may be limited, there is sufficient banking and Codorus National Bank in Jefferson, Codorus business, present and potential, to justify the step (Jefferson Borough), Pennsylvania, under the here proposed for continuing service to the area charter and title of the former. As an incident to and to give promise that such service will be the merger, the sole office of the latter bank would economically feasible. The similarity of the bank- be operated as a branch of the former bank. Notice ing needs of the Greenwood area to those of the of the proposed merger, in form approved by the area now served by First reinforces the prospect Board, has been published pursuant to said Act. of improved service to Greenwood. Moreover, it Upon consideration of all relevant material in appears that First can expand its operations as the light of the factors set forth in said Act, proposed without detriment to the service of its including reports furnished by the Comptroller present market. of the Currency, the Federal Deposit Insurance Competition. The Greenwood office has not Corporation, and the Department of Justice on been a vigorous competitor for banking business the competitive factors involved in the proposed in the area. The office seems to have relied more merger, on physical convenience for the retention and IT IS HEREBY ORDERED, for the reasons set forth attraction of business rather than on active compe- in the Board's Statement of this date, that said tition in service or business development. Thus, application be and hereby is approved, provided although the absorption of that office by First that said merger shall not be consummated (a) would represent to some extent a reduction in within seven calendar days after the date of this alternative sources of service for the local Green- Order or (b) later than three months after said wood area, that area would not be losing an inde- date. pendent competitive force of the kind that tends Dated at Washington, D. C, this 8th day of actively to improve the nature of banking service February, 1963. offered to the public. Moreover, the absorption By order of the Board of Governors. would not nullify any strong potential for competition in the future since discontinuation of the Voting for this action: Governors Balderston, Mills, office is in prospect if it is not taken over by Robertson, and Shepardson. Absent and not voting: Chairman Martin, and Governors King and Mitchell. another bank in a position to operate it. (Signed) MERRTTT SHERMAN, Summary and conclusion. The proposed trans- Secretary. action would forestall the possible loss to the Greenwood area of locally available banking serv- [SEAL] ice. It would also be likely to lead to improvement STATEMENT in such service. Therefore, considerations as to the Peoples Bank of Glen Rock, Glen Rock, Pennconvenience and needs of that area outweigh such sylvania ("Peoples Bank"), with deposits of $5.4 slight adverse effects on banking competition as million, as of June 30, 1962, has applied, pursuant might result. to the Bank Merger Act of 1960 (12 U.S.C. Accordingly, the Board finds the proposed trans- 1828(c)), for the Board's prior approval of the action to be in the public interest. merger of that bank and Codorus National Bank in Jefferson, Codorus (Jefferson Borough), Penn- PEOPLES BANK OF GLEN ROCK, sylvania ("Codorus National"), with deposits of GLEN ROCK, PENNSYLVANIA $1.5 million, as of the date previously mentioned. In the matter of the application of Peoples Bank The banks would merge under the charter and of Glen Rock for approval of merger with Codorus title of Peoples Bank, a State member bank of the National Bank in Jefferson. Federal Reserve System. As an incident to the merger, the sole office of Codorus National would ORDER APPROVING MERGER OF BANKS become a branch of Peoples Bank, increasing the There has come before the Board of Governors, number of its offices from two to three. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 177 Under the law, the Board is required to con- people within its area for larger and varied types sider, as to each of the banks involved, (1) its of loans but has been handicapped principally by financial history and condition, (2) the adequacy its low lending capacity. Consummation of this of its capital structure, (3) its future earnings proposal would increase materially the bank lendprospects, (4) the general character of its manage- ing limit at Codorus and would make available ment, (5) whether its corporate powers are con- in that area broader banking services, such as sistent with the purposes of 12 U.S.C., Ch. 16 business and consumer instalment loans and spe- (the Federal Deposit Insurance Act), (6) the cial purpose savings accounts. convenience and needs of the community to Competition. The service area of Peoples Bank be served, and (7) the effect of the transaction lies principally within a radius of five miles of on competition (including any tendency toward Glen Rock, while that of Codorus National is monopoly). The Board may not approve the trans- slightly smaller. Although the service areas of the action unless, after considering all these factors, two banks overlap somewhat, this occurs in the it finds the transaction to be in the public interest. hilly, sparsely populated region between Glen Rock Banking factors. Peoples Bank and Codorus and Codorus. No direct road connects Peoples National have satisfactory financial histories and Bank and Codorus National, and there is little conditions, and the capital structure of each is competition between them. reasonably adequate. The earnings of Peoples Besides Peoples Bank and Codorus National, Bank compare favorably with those of banks of there are twelve banks operating offices in central similar size in the Third Federal Reserve District, and southern York County. Four of the twelve and the bank's management is competent. Con- banks have one or two offices within five miles summation of the proposal would provide a basis of one or the other of the banks involved in the for needed improvement in earnings and would proposed transaction, and all but one of the solve a management succession problem at Codorus twelve have one or more offices within five to National. Present management of Codorus Na- fourteen miles of Peoples Bank or Codorus National is satisfactory, but the circumstances indi- tional. Of the entire fourteen banks in this area, cate probable difficulty in attracting satisfactory Peoples Bank and Codorus National are the smallpersonnel to the small bank to replace two senior est based on deposits of individuals, partnerships, officers who are past the usual retirement age. and corporations. There is no evidence that the The resulting bank, which would be under the effect of the proposed merger would be adverse management of Peoples Bank, would have a satis- to banking competition in central and southern factory financial condition, a reasonably adequate York County. capital structure, and favorable earnings prospects. Summary and conclusion. Although this merger There is no indication of any inconsistency with would eliminate the small amount of competition the provisions of 12 U.S.C., Ch. 16. between the two banks, this would be offset by the Convenience and needs of the communities. resulting benefits. The transaction would solve the The main office of Peoples Bank is in Glen Rock, management succession problem, strengthen earn- Pennsylvania (1960 population 1,500 and trade ings prospects, increase the lending limit, and area population 8,600), fifteen miles south of provide broader banking services at the only bank- York. The single branch office of Peoples Bank ing office in Codorus. There would be no signifiis eight miles to the north of Glen Rock in Jacobus cant competitive effect with respect to the other (1960 population 1,000 and trade area population banks in central and southern York County. 8,400). Codorus National is the only bank in Accordingly, the Board finds the proposed trans- Codorus (population about 500). Codorus is in action to be in the public interest. Jefferson Borough about 10 miles west of Glen Rock. The population of the borough is about Orders Under Section 3 of Bank Holding 500 and that of the trade area 6,500. Glen Rock, Company Act Jacobus, and Codorus are located in the southcentral section of York County, for which the The Board of Governors of the Federal Reserve economic outlook is favorable. System has issued the following Orders and State- This merger would affect principally the service ments with respect to applications by bank holding area of Codorus National. This bank has en- companies for approval of the acquisition of votdeavored to meet the increasing needs of the ing shares of certain banks: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 VALLEY BANCORPORATION, APPLETON, STATEMENT WISCONSIN Valley Bancorporation ("Applicant"), a Wisin the matter of the application of Valley Ban- consin corporation formed in 1962, with its princorporation for permission to become a bank cipal place of business in Appleton, Wisconsin, holding company through the acquisition of voting has filed an application pursuant to Section shares of three banks in the State of Wisconsin. 3(a)(l) of the Bank Holding Company Act of 1956, for the Board's approval of its becoming ORDER APPROVING APPLICATION UNDER BANK a bank holding company through the acquisition HOLDING COMPANY ACT of 80 per cent or more of the outstanding voting shares of Appleton State Bank, Appleton ("State There has come before the Board of Governors, Bank"); Bank of Black Creek, Black Creek pursuant to Section 3 (a) (1) of the Bank Holding ("Black Creek Bank"); and Northern State Bank, Company Act of 1956 (12 U.S.C. 1842) and Sec- Appleton ("Northern Bank"), all in the State of tion 222.4(a) (1) of the Board's Regulation Y (12 Wisconsin. CFR 222.4(a) (1) ), an application by Valley Ban- As applied to this application, Section 3(c) of corporation, Appleton, Wisconsin, for the Board's the Act requires the Board to take into consideraapproval of action that would result in Applicant tion the following factors: (1) the financial hisbecoming a bank holding company through acquitory and condition of the Applicant and the banks sition of 80 per cent or more of the voting shares concerned; (2) their prospects; (3) the character of Appleton State Bank and Northern State Bank, of their management; (4) the convenience, needs, both in Appleton, Wisconsin, and of Bank of Black and welfare of the communities and areas con- Creek, Black Creek, Wisconsin. cerned; and (5) whether the effect of the proposed As required by Section 3(b) of the Act, the acquisition would be to create a bank holding Board notified the Commissioner of Banks of the company system of a size or extent beyond limits State of Wisconsin of the receipt of the applicaconsistent with adequate and sound banking, the tion and requested his views. The Deputy Compublic interest, and the preservation of competimissioner replied that he had no objection to Aption in the field of banking. plicant's becoming a holding company through the Banking factors. Since Applicant was organized acquisitions proposed. recently, it has no financial history. If it becomes Notice of receipt of the application was puba bank holding company, its principal earning lished in the Federal Register on June 16, 1962 assets will consist of its shares of its subsidiary (27 Federal Register 5752), affording opportunity banks. Accordingly, its financial condition and for submission of comments and views regarding prospects will depend primarily upon, and closely the proposed acquisitions. The time provided by parallel, those of its subsidiary banks. the notice for filing comments and views has ex- State Bank and Black Creek Bank, each in operpired and the matter has been considered fully by ation for more than 50 years, have sound financial the Board. histories and their present condition and prospects IT IS HEREBY ORDERED, for the reasons set forth appear satisfactory. Northern Bank was opened in the Board's Statement of this date, that said for business on January 7, 1963. On the basis of application be and hereby is granted, provided that its paid-in capital and its location in the rapidly the acquisitions as approved shall not be consumexpanding industrial and residential section of mated (a) within seven calendar days after the north Appleton, the projection made as to deposit date of this Order or (b) later than three months growth for Northern Bank appears reasonable and after said date. supports the conclusion that its prospects are Dated at Washington, D. C, this 24th day of satisfactory. On the basis of the foregoing, it is January, 1963. concluded that Applicant's condition and pros- By order of the Board of Governors. pects also would be satisfactory. Voting for this action: Unanimous, with all members present. The management of the respective banks is (Signed) MERRITT SHERMAN, experienced and appears competent. Since Appli- [SEAL] Secretary. cant's management will be composed of officers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 179 and directors of the respective subsidiary banks, Appleton and the area within a three-mile radius it may be concluded that Applicant's management of the City's north boundary. The estimated popualso will be competent and similarly satisfactory. lation of the area is 20,000. Northern Bank's pri- Convenience, needs, and welfare of the commu- mary service area is described as having very good nities and areas concerned. Geographically, the residential and industrial growth potentials. Sixty City of Appleton and environs may be considered per cent of new homes constructed in Appleton in the focal point in the Board's consideration of the 1960 were erected in this northern area. Northern convenience, needs, and welfare of the communi- Bank is the only bank located within its designated ties and areas concerned. State Bank's main office primary service area. and Northern Bank are both located within the Black Creek Bank, with total deposits of $1.8 corporate limits of the City. Appleton, situated on million, is located in the Village of Black Creek, the Fox River in the east-central part of the State, Outagamie County, about 16 miles north of State just north of Lake Winnebago and about 30 miles Bank's main office. Its primary service area comsouthwest of Green Bay, is the county seat of prises the Village and surrounding agricultural Outagamie County. Its population is approxi- area within a three-mile radius. The area's populamately 48,500. Within an eight-mile radius of tion is estimated at 2,900. While there are no Appleton's downtown business district, in both an other banks located in the primary service area of easterly and southerly direction, there are six Black Creek Bank, five other banking offices, incities or villages which, together with Appleton, cluding an office of State Bank, compete, in varyare known as the Fox Cities. Appleton's trade area ing degrees of intensity, for the business originatis described as encompassing all of the Fox Cities ing in the northern part of Outagamie County as well as a considerable portion of the agricul- served by Black Creek Bank. tural area within a sixty-mile radius. The Fox In support of its application, Applicant has set Cities area encompasses residential, industrial, and forth numerous banking services that it proposes agricultural communities. The industrial commu- to inaugurate, supplement, or facilitate through nities contain some of the nation's leading paper ownership of the banks in question. Applicant's products manufacturers, as well as other indus- presentation of its proposals makes clear that the tries producing wood, metal, concrete, knitted, communities served by State Bank have been and and dairy products. Outagamie County ranks fifth are presently afforded a full range of banking servin total farm income among Wisconsin counties. ices, including the services of State Bank's trust State Bank, with June 30, 1962 a total deposits department. This is true of the villages and rural of $25.4 million, is the second largest of Apple- areas served by its four offices—three in Outaton's three banks. In addition to its main office, gamie County and one in Waupaca County. There State Bank operates three other offices in Outa- is no evidence of an existing or reasonably foregamie County and one in adjoining Waupaca seeable need on the part of State Bank's present County. The four branches had aggregate deposits or potential customers, particularly those in the of $5.6 million. The primary service area2 of State downtown Appleton area, that is or cannot be Bank's main office is the City of Appleton. Its served adequately by State Bank as presently branch offices, located in villages that are situated, owned and operated. respectively, about 13 and 23 miles west, and 13 It is recognized that, in major respects, the and 19 miles northwest of Appleton, derive a banking needs of residents and businesses within majority of their business from the villages in Northern Bank's service area will be served, and which they are located and from immediately perhaps wholly satisfied, whether or not Applisurrounding agricultural areas. cant's control of Northern Bank is realized. How- Northern Bank's projected primary service area ever, as a subsidiary of Applicant and affiliate of encompasses the northernmost one-third part of State Bank, Northern Bank would appear to be able to make available to its customers, present 1 Unless otherwise stated, all statistics are of this and prospective, a broader range of banking servdate. ice more immediately than could be expected 2 The area from which about 75 per cent of the ordinarily of a newly opened bank. This fact, bank's demand and time deposits of individuals, partnerships, and corporations ("IPC") arises. weighed in the light of the continuing rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 population increase, residential construction, and and potential customers of the two banks will be industrial development in the area served by the better served. Northern Bank, constitutes a benefit weighing in In sum, it is the Board's conclusion that benefavor of approval of the application. fits to the communities and areas involved are Moreover, it appears that in view of the con- sufficiently probable following the acquisitions tinued residential expansion to and industrial loca- here proposed, as to constitute a consideration tion in Northern Bank's primary service area, favorable to approval of the application. many of State Bank's customers formerly located Effect of proposed acquisition on adequate and downtown will be more conveniently accommo- sound banking, the public interest, and banking dated by access to the services and facilities of competition. Previous statements by this Board Northern Bank which, through its affiliation with reflect its concern over proposals that, if consum- State Bank under Applicant's ownership, will pre- mated, would result in holding company control sumably offer services of breadth and quality com- of the largest banks in an area, or that would add parable to those State Bank now offers. to an already heavy concentration of large banks Black Creek Bank, located in and serving a in a particular area or State controlled by one or predominantly agricultural district of Outagamie another of several major banking groups. The County, wherein no marked population growth is fact of such resulting concentrations, among other anticipated, cannot, in the Board's judgment, be reasons, has required the Board's denial of Section said to have any real need for a majority of the 3 applications involving existing and proposed expanded bank services which Applicant asserts holding companies. would be made available through its ownership The present application does not threaten such of the banks. There is some evidence of an in- a concentration as to warrant similar concern or creasing demand within the area served by bank opposition. Approval of Applicant's proposal for fiduciary services and advice. State Bank is would bring under its control three banks, with the only bank in Outagamie County operating aggregate deposits of $27.2 million, exclusive of a trust department. While certain services such as deposits held by the recently opened Northern trust services and other assistance may be made Bank. Applicant would be the fifth largest bank more readily available through the form of affilia- holding company operating in the State, measured tion proposed, Applicant concedes that there will by deposits of subsidiary banks. These banks would be no change in operation of the Black Creek control .8 per cent of the offices of all banks in Bank except in ownership of capital stock. Fifty- the State and .6 per cent of their aggregate detwo per cent of that stock has been owned by posits. The three largest Wisconsin-based holding State Bank since prior to 1948. Applicant asserts companies control, respectively, 18.3, 7, and 6.7 that State Bank's ability to make available to per cent of the aggregate deposits of all banks in Black Creek Bank managerial and other technical the State. State Bank, with total deposits of $25.4 million, ranks 30th in size of all Wisconsin banks. assistance had been impeded by an awareness of Thus measured, Applicant's proposed subsidiaries the fact that the minority stockholders of Black would not represent a concentration of control of Creek Bank (owning 48 per cent of the bank's banks or banking resources of such magnitude as stock) are equal beneficiaries of the efforts and to be inimical to banking competition and the expenditures by State Bank. public interest. Assuming acquisition by Applicant of 80 per Turning to a consideration of the probable cent or more of the stock of each of the three effects of the Applicant's formation upon bankbanks, it is reasonable to conclude that a greater ing and the banking public within the areas most degree of exchange and availability among the immediately concerned, consummation of this affiliated banks of experienced personnel and techproposal would result in Applicant's control of nical assistance will be realized than under the two of the four banking offices (including Northrelationship presently existing among the banks. ern Bank) in Appleton; the deposits held by State It follows that by thus facilitating access by the Bank's head office represented 25 per cent of the two smaller banks to the resources, technical skills, total deposits of the banking offices in Appleton. and managerial experience of State Bank, present This percentage increases to 29.9 if the deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 181 of all of State Bank's offices are included. In stantial. However, in view of the fact that a ma- Outagamie County, Applicant would control 6 jority of the directors and officers of Northern of 17 offices (35.3 per cent), and those offices, Bank are also directors and officers of State Bank, excluding Northern Bank, held 23.2 per cent of the existence of genuine competition between the the deposits held by all offices in the County. In two banks cannot be assumed. Similarly, State the Fox Cities area, Applicant would have 2 of Bank's controlling ownership of Black Creek Bank 12 banking offices (16.7 per cent) and State renders improbable any genuinely vigorous effort Bank's entire deposits represented 15.9 per cent on the part of either bank to compete for the of the $160.4 million of deposits of banks therein. small volume of deposits found to originate in the Of the 26 commercial banking offices located in primary service area of each, but held by the Outagamie County and in the three counties ad- other. Under the aforesaid circumstances, the joining Outagamie County in which are located question as to elimination of existing or potential banks that compete with Applicant's proposed competition between and among Applicant's prosubsidiaries, Applicant would control seven of posed subsidiary banks is not of sufficient signifisuch offices (27 per cent) and $27.2 million (14.4 cance to constitute a consideration adverse to per cent) of the $188.7 million of aggregate de- approval of Applicant's proposal. posits held by those offices, excluding Northern Finally, the Board is satisfied that within the Bank. communities and areas herein discussed there will Viewing the size of Applicant's proposed sys- remain adequate alternative sources of banking tem as reflected in the comparisons relating to the services following consummation of Applicant's particular areas above mentioned, it is the Board's proposal to assure that in this respect, as in the judgment that approval of Applicant's proposal other respects heretofore considered, the public would not result in a concentration of control of interest will not be adversely affected. banking resources within any of those areas that Conclusion. Viewing the relevant facts in the would be contrary to the public interest. light of the general purposes of the Act and the State Bank presently competes with the other factors enumerated in Section 3(c), it is the judgtwo downtown Appleton Banks; and approximent of the Board that the proposed acquisition mately 20 per cent of its IPC deposits originate would be consistent with the statutory objectives in Northern Bank's primary service area. No and the public interest and that the application other commercial banks are located within the should be approved. respective primary service areas of State Bank's four branches. It does not appear that the acquisitions proposed would adversely affect State FIRST WISCONSIN BANKSHARES CORPO- Bank's two downtown Appleton competitors. First RATION, MILWAUKEE, WISCONSIN National Bank is nearly twice the size of State In the matter of the application of First Wis- Bank. The anticipated result from these acquisiconsin Bankshares Corporation for prior approval tions is that Northern Bank may be expected to of acquisition of shares of American Bank and offer First National Bank more vigorous competi- Trust Company, Racine, Wisconsin. tion for accounts of customers located in the north Appleton area. While the Outagamie County Bank is but two-fifths the size of State Bank, the ORDER DENYING APPLICATION UNDER BANK competitive pattern established between these two HOLDING COMPANY ACT banks should not be altered substantially, since Northern Bank's primary service area does not There has come before the Board of Governors, overlap to any significant extent the areas which pursuant to Section 3(a) (2) of the Bank Holding the Outagamie County Bank is considered to serve. Company Act of 1956 (12 U.S.C. 1842) and As to competition between State Bank and Section 222.4(a)(2) of Federal Reserve Regula- Northern Bank, measured by the percentage of tion Y (12 CFR 222.4(a)(2)), an application by State Bank's IPC deposits originating in North- First Wisconsin Bankshares Corporation, Milern Bank's primary service area, it would appear waukee, Wisconsin, for the Board's prior approval that competition between the banks could be sub- of the acquisition of 80 per cent or more of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 voting shares of common stock of American Bank General background. Racine, with a population and Trust Company, Racine, Wisconsin. of almost 90,000, is the trading center of Racine As required by Section 3(b) of the Act, the County and a part of the industrial complex ex- Board notified the Commissioner of Banks for the tending from Milwaukee to Chicago along the State of Wisconsin of the receipt of the applica- shores of Lake Michigan. In size, American is tion and requested his views. The Commissioner the second bank in Racine and the eighteenth in replied that he would interpose no objection to the State, with $33.9 million in deposits,1 about the Board granting its approval to the application. half those of its chief competitor, First National A Notice of Receipt of Application was pub- Bank and Trust Company, which has $63 million lished in the Federal Register on June 27, 1962 in deposits, and ranks fifth among banks in the (27 F.R. 6057), which provided an opportunity State. for the filing of comments and views regarding It is a key fact to be remembered in scrutinizing the proposed acquisition, and the time for filing banking in Wisconsin that the top banks decline such comments and views has expired and all very sharply in order of size. First Wisconsin comments and views filed with the Board have National Bank, Milwaukee ("First Wisconsin"), been considered by it. the leading bank in Applicant's system, has $682.5 IT IS HEREBY ORDERED, for the reasons set forth million in deposits. The second bank in size, Marin the Board's Statement of this date, that the said shall and Ilsley Bank, of Milwaukee, has $261.2 application be and hereby is denied. million, and the third, Marine National Exchange Dated at Washington, D. C, this 31st day of Bank, also of Milwaukee, has $178.5 million. The January, 1963. fourth is a $90 million bank in Madison which is By order of the Board of Governors. a subsidiary of the Applicant. Each of the three largest banks is the dominant institution in a bank Voting for this action: Unanimous, with all members present. holding company system. Disregarding proposed acquisitions, total deposits of the respective hold- (Signed) MERRITT SHERMAN, Secretary. ing company systems are: Bankshares—$875 mil- [SEAL] lion, Marshall and Ilsley Bank Stock Corporation ("Bank Stock")—$336 million, and the Marine STATEMENT Corporation ("Marine")—$320 million. Bank- First Wisconsin Bankshares Corporation shares now has 3.3 per cent of the offices and ("Bankshares"), has applied to the Board of 18.3 per cent of the total deposits in the State, Governors, under the Bank Holding Company and Bank Stock and Marine have .8 and 7.0 per Act of 1956 ("the Act"), for permission to ac- cent, and 1.6 and 6.7 per cent, respectively. In quire 80 per cent or more of the 30,000 out- addition, there are three other holding companies standing voting shares of the common stock of having subsidiary banks in Wisconsin. All exist- American Bank and Trust Company, Racine, ing holding companies, taken together, now con- Wisconsin ("American"). trol 6.4 per cent of the banking offices and 33.7 In determining whether to approve the pro- per cent of the total deposits in the State. posed acquisition, the Board is required by Sec- Concurrently with the application discussed in tion 3(c) of the Act (12 U.S.C. 1842) to take this Statement, there were before the Board appliinto consideration the following factors: (1) the cations by Bankshares to acquire a controlling financial history and condition of the proposed interest in Merchants & Savings Bank, Janesville, holding company and the banks concerned; (2) and by Marine to acquire a controlling interest in their prospects; (3) the character of their man- Beloit State Bank. The Department of Justice agement; (4) the convenience, needs, and welfare filed a Statement in opposition in respect to the of the communities and the area concerned; and present application, as it also did in regard to the (5) whether the effect of such acquisition would applications in the Janesville and Beloit cases. be to expand the size or extent of Bankshares' Applicant filed a Rebuttal to the Statement, and system beyond limits consistent with adequate and sound banking, the public interest, and the pres- 1 Unless otherwise indicated, deposit figures herein ervation of competition in the field of banking. stated are as of June 30, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 183 the Board has considered all these documents in First National Bank and Trust Company, during reaching its decision. the years from 1948 through 1961. Prospects for its Banking factors. The financial history, condi- continued growth are favorable, whether or not it tion, prospects, and managements of both Bank- joins the Bankshares system. American has sold shares and American are satisfactory. no stock since it was organized in 1916, and while Applicant was organized as Wisconsin Bank- Applicant states it would furnish additional capital shares Corporation in 1929 and adopted its pres- if the proposed acquisition is approved, the Board ent name in 1960. Bankshares' system includes is of the opinion that any capital increase which seven banks and one trust company, a reduction the bank believed necessary could be effected difrom 43 banks and three trust companies in 1930. rectly by American as an independent bank. Bankshares states that none of its subsidiary banks Management of American is satisfactory. Howhas failed, and that no depositor of any of its sub- ever, Applicant contends that the bank's executive sidiary banks has suffered a deposit loss or been management is not supported by sufficient replacesubjected to deferred payment. As of December ments to fill the gaps which will appear, in the 30, 1961, 93.9 per cent of its assets consisted of relatively near future, as key executives reach norits investment in capital stock of the subsidiary mal retirement age. Access to the pool of trained banks and trust company. These banks include, in management provided by the joint program of addition to First Wisconsin, Southgate National First Wisconsin and Bankshares, it is urged, will Bank, Milwaukee, with deposits of $5.3 million, solve a serious existing management problem. The Mayfair National Bank, of Wauwatosa, with de- Board agrees that entering into Applicant's system posits of $4.2 million, First National Bank, Fond would simplify American's recruiting problem, du Lac, with deposits of $30.7 million, First Na- and concludes that this factor lends some small tional Bank of Madison, with deposits of $90.8 weight for approval of the application. However, million, Union National Bank, Eau Claire, with to give critical, or even considerable, weight to deposits of $25.8 million, and First National Bank, this advantage would be to suggest that any $33 Oshkosh, with deposits of $33.7 million. The de- million bank located in a relatively large, attracposits of the First Wisconsin Trust Company, tive community, easily accessible to two of the Milwaukee, were $2.3 million. Their condition biggest cities in the nation, may find it so difficult and the condition of Bankshares itself are satis- to recruit management succession that resort to a factory, and on the basis of their size and location pool recruited by a holding company provides the and their record of past operations, the Board con- only solution. If this were the case, the day of the siders Bankshares' prospects to be favorable. Its independent community-owned and managed bank management is highly competent, and it conducts would indeed be over. a management training program jointly with First Other advantages listed by Bankshares in sup- Wisconsin for which more than 30 young college port of its application, by way of increased servgraduates with both general and professional tech- ices which American would render as part of the nical training have been hired within the last holding company system, would, it is urged, tend three years. to improve the prospects of the bank. However, American was organized in 1916 under the the impact of these advantages, Applicant argues, name of American Trades and Savings Bank, and would be felt more under the fourth factor, and assumed its present name in 1932. In 1933, The they are discussed below. Racine City Bank merged with it, and the sole Convenience and needs of communities. While office of that bank became, and still is, the only customers of others of Applicant's banks might branch of American. Racine County is one of the benefit to some degree from access to an affiliated most industrialized counties in Wisconsin, and it bank in Racine, the chief effect of the acquisition has experienced a vigorous economic growth in would, of course, be felt in the Racine area. Rerecent years. In this favorable climate, the rate duced to essentials, the thrust of Applicant's arguof growth of American, as measured by IPC de- ment is that this area is heavily industrialized and posits,2 slightly exceeded that of its larger rival, is becoming more so, that no banks in the area are 3 Deposits of individuals, partnerships, and corpora- equipped to offer the services which local firms of tions. a certain size require, and that, as a result, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 growing businesses tend to bank, more and more, participations within a holding company system outside Racine. If American were affiliated with as compared with participations through non-af- Bankshares, it is argued, many of the specialized filiated banks. The fact remains that, on the facilities which these firms need could be offered record, American has made very little use of the to them, and a substantial portion of their business latter technique, preferring, evidently, to keep as might be recaptured or retained in the area. much as it could of the business of its local clients, There are 37 Racine manufacturers who em- rather than risk losing them to big-city correspondploy 100 or more persons. Five of these employ ents to whom it might introduce them. over 1,000, six from 500 to 800, and eight from Even if participating larger loans with corre- 300 to 475. Many of the larger firms serve a na- spondent banks is not workable, as Applicant contional market, and local banking facilities are not tends it is not, there is no evidence that credit sufficient for their needs. Although some of them needs are going unserved in the area. While may be willing to do some banking locally, it American would undoubtedly prefer to retain its seems doubtful that much of their business would accounts as long as possible, the customers thembe concentrated in Racine. Indeed, although Ap- selves are not greatly disadvantaged in having to plicant states that Racine (and Wisconsin) banks go to Milwaukee, Chicago, or New York for should enjoy a "fair share" of the banking done larger loans; hence, the slight added convenience by large businesses located in Racine, it appears of obtaining the funds at home adds little weight doubtful that much of this type of banking can under the fourth factor for approval of the apbe held in or brought back to Racine. plication. As an added argument, Applicant sug- The contention that permitting affiliation of gests that, if more of the larger loans were made American with Bankshares would make it possible locally, additional deposits would remain in the to keep in Racine banking business which now community and would benefit local business. The flows to the money centers seems to be directed point to consider, however, is whether these large principally at the business of medium-size local concerns are predominantly depositors or borfirms as they grow toward the size where they will rowers, in their banking relations. If they are tend to look for outside banking connections. The predominantly credit users, the community is first and most important advantage American better off economically if the credit is supplied could offer as a member of the Bankshares system from outside markets, because this means that would be access to an increased loan limit. Ameri- locally generated deposit resources remain availacan's lending limit is $270 thousand, and that of ble to other local users to a greater extent than its larger competitor is $264 thousand. The four would be the case if the large concerns were abother banks in Racine are relatively small, and the sorbing more of those resources. On the other combined lending limit of all six banks is less than hand, if the concerns are primarily depositors, $1 million. The lending limit of the Bankshares there are no legal restrictions which would limit system is over $5 million, and since Applicant the amount of their deposits in an independent states that the loan ratios of the system banks were local bank. lower than for all federally insured banks, it is Aside from enlarged credit facilities, Applicant possible that larger loans could be made available suggests that, as a member of the Bankshares sysin Racine without taking loanable funds away tem, American would be in a position to furnish from smaller local borrowers elsewhere. a variety of specialized services to the Racine This larger lending limit would not, of course, business community, which it does not now enjoy. be American's to command. Over-limit loans by a Among these are advice on international banking holding company bank, as by any bank, can be transactions, advice on industrial development, famade only through participations. The other banks cilities for specialized types of lending, and advice must be willing to so participate. On the other and assistance in handling larger and more comhand, participations might be arranged more plex trust accounts than American can now quickly and more easily through the system than handle. through non-affiliated correspondent banks. Emphasis has been placed on the international Much can validly be said on both sides of the banking aspect. Applicant states that, while larger question, in a discussion of the relative merits of Racine firms sell abroad as a matter of course, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 185 many of the smaller firms, which may actually be slightly in favor of approval, there is no evidence ready for foreign markets, may not even recognize that needs in this respect are going unmet in the the opportunity, or understand the availability of community, and the weight accorded this considbanking counsel in this field. According to Appli- eration cannot be very substantial. cant, these firms are too small to be visited by American hired a full-time trust officer in 1960. specialists from international departments of big Prior to that time, the trust department had been city banks, and they remain unserved. If the appli- operated primarily as a convenience for the bank's cation were approved, First Wisconsin would pre- commercial customers. The application states that, sumably educate and back up American's per- in a number of instances, trust business has gone sonnel in offering advice of this kind. However, it outside Racine because local facilities were inadeseems doubtful that any business in Racine with quate, and that this number would be reduced by foreign trade potential would miss an opportunity American's affiliation with Applicant. However, to increase its business because a local bank could Applicant concedes that a number of large acnot give guidance on foreign banking. Milwaukee counts would probably always be placed outside is only 25 miles, and Chicago 67 miles, distant Racine. American's department appears to have from Racine, and it does not seem reasonable to been growing satisfactorily, and between Ameriassume that the larger banks in these cities would can and First National, trust business of a nature not give service to Racine firms which requested likely to be required by the local community will advice and counsel in these matters. probably be adequately served without the help Similarly, an industrial development committee Applicant could give through the larger and more was established in Racine in 1961, under the highly developed trust facilities of First Wisconsin. leadership of a vice-president of American. If Essentially, then, the banking needs of the com- American were a member of Bankshares' system, munity are being served at present, but Applicant Applicant states, the well-established industrial argues that Racine and Wisconsin banks are endevelopment department of First Wisconsin would titled to a "fair share" of banking business genhelp and advise this committee and lend prestige erated in Racine, and that, if the independent local to American's efforts. Since American is already banks cannot attract this share, then the facilities actively participating in the committee's work, of a holding company and of its more powerful however, the Board considers that any added as- member banks should be brought into the comsistance that might be lent by the larger Milwau- munity to capture and hold what rightfully bekee bank is not of significant weight toward ap- longs there. Had Congress intended such regional proval of the present application. splitting up of the national banking market to be In a third category, specialized lending, Bank- a basis for approving bank holding company exshares states that American has refused numerous pansion, it would have so stated. It did not so loan requests in the past because it lacked lending direct the Board. officers or analytical personnel and data or legal This is not to say that the banks in a community counsel with appropriate background and experi- should not be strong and supple enough to serve ence. These requests have ranged from legally the banking needs of that community. Where complex financial arrangements with political banking needs were going unmet, and where consubdivisions to unsecured credit requests of small siderations under the remaining factors were not and medium-sized businesses where audited state- adverse to holding company acquisitions, then the ments were unavailable. Applicant states that its Board has granted its approval to those acquisiextensive centralized credit information is made tions. available to all banking offices of its members, Considerations under the fourth factor, then, and that additional assistance would be provided lend some but only slight weight for approval. American with respect to credit analysis and colla- Competitive effect. The United States Court of tion and preservation of credit data, and in other Appeals for the Eighth Circuit recently held that, ways, which would tend to overcome these handi- under the fifth factor, the Board must view "the caps. Although furnishing this data and expert as- structure of the entire industry of banking" in a sistance might to some extent serve the conven- relevant area, and not the holding company and ience of the Racine community and thus weigh the bank concerned alone. To do otherwise, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 Court held, "would be to force the Board to act competitive vigor. Or it might be due, in part at more or less in a vacuum. Realities must be con- least, to a tendency on the part of larger banks to sidered." 3 concentrate on serving the larger, and more Holding companies now control roughly a third profitable, accounts and a willingness to leave of the deposits in Wisconsin banks, and of this small customers to smaller banks. amount, Bankshares controls more than half. The existence of a tendency to concentrate ac- More important, the development pattern of the tivity in larger banks, in the denser, more profitathree Milwaukee-based holding companies, Ap- ble markets, is borne out by the fact that of 19 plicant, Marine, and Bank Stock, has involved ac- banks sold by Applicant between 1934 and 1944, quiring (in the case of Applicant, selectively re- 11 had approximate deposits of $1 million, and 8 taining) dominant or near-dominant banks in the more had deposits of less than $4.5 million. Apmore densely populated areas of the State. Marine plicant's two remaining small banks are both has offices in three of the State's Standard Statisti- recently established, in rapidly growing sections cal Metropolitan Areas (Milwaukee, Madison, of the Milwaukee area. As the Board indicated in and Green Bay); Bank Stock has offices in the its Statement in connection with the denial of the Milwaukee Metropolitan Area; and if Applicant application of Morgan New York State Corporais permitted to acquire American, it would have tion to become a bank holding company,4 where offices in the Milwaukee, Madison, and Racine one or more of the larger banks in an area affiliates Metropolitan Areas and in three (Eau Claire, with a holding company, the smaller banks are Fond du Lac, and Oshkosh) of the State's twelve left with a longer uphill climb in their efforts to cities having 1960 populations in excess of 25,000 catch up—their existing competitive disadvantage which are not located within the four metropolitan is increased. The resulting competitive situation areas which have been mentioned. These four may not be unbalanced unduly, at least as yet, but metropolitan areas and three cities contained in bolstering the position of the big banks necesthe aggregate 45.5 per cent of the State's 1960 sarily has that tendency. Any tendency to extend the sphere of Bankshares' influence at the same population and, as of June 30, 1962, 20.5 per level must, therefore, be viewed with particular cent of all banking offices in the State. As of that caution. date, banks in those areas and cities held 53.4 per cent of the deposits of all banks in the State, and Turning from the general competitive picture the three Milwaukee-based holding companies in the State to that in the Racine area, it appears held 59.2 per cent of that 53.4 per cent; the ac- that neither the deposits and loans of Bankshares' quisition of American by Applicant would increase subsidiaries, other than First Wisconsin, which the proportion to 60.6 per cent. originate from Racine, nor the deposits and loans Bankshares is a leading factor in this increas- of American, which originate from the five ing tendency toward holding company dominance counties where Bankshares' present subsidiaries of the larger and more profitable banking markets. are located, are significant. Five Bankshares banks rank first, fourth, nine- As of March 6, 1962, First Wisconsin had deteenth, twenty-first, and twenty-ninth in the State. posit relationships with 14 large industrial con- More significant, in Milwaukee, Eau Claire, Fond cerns located in Racine whose aggregate deposits du Lac, Oshkosh, and Madison, a Bankshares were over $4 million. These deposits represented bank is largest in the city and in the respective balances maintained by the firms in connection county. True, the record does not suggest that the with large loans, aggregating over $11 million, made to them by First Wisconsin, and Applicant system has been at all predatory in its relations stated that in each case the credit requirements of with the remaining, smaller banks in these areas. the firm were greater than the combined loan limit Deposits of smaller banks in these areas have of all Racine banks. Moreover, First Wisconsin shown greater relative growth during the last was merely one of the large banks located in decade than have deposits of holding company various sections of the country with which these banks. But this fact could as well be due to public concerns had banking relationships. While Ameripreference for local banks, rather than to lack of can might conceivably have been able to partici- 3 Northwest Bancorporation v. Board of Governors, 303 F. 2d 832 at 842 (8th Cir. 1962). 41962 Federal Reserve BULLETIN 567. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 187 pate, in a small way, in some of the loans, it was larger competitor in Racine, and it has been sughardly an effective competitor of First Wisconsin. gested that, for this reason, effective competition Entering the Bankshares system would, if any- between the two sizable Racine banks would be thing, increase the proportion of such loans which reduced if American entered Applicant's fold. might, from time to time, fall to the share of Since the Board has denied the application on American. other grounds, it does not find it necessary to pass The impact of approval on competition in on the degree to which a link of this kind might Racine would be felt, rather by the remaining in- reduce future competition. dependent local banks, chiefly in respect to their Conclusions. Evaluating the whole picture, it ability to attract and hold accounts of small to appears that approval of this application might medium-size firms. If it is true that the small in- produce some small advantages under the managedividual depositor prefers a locally owned bank, ment factor, and to the convenience, although not, he would lose one such alternative source of bank- apparently, to the needs of the Racine community ing facilities through approval, but five would re- or area. These advantages are outweighed howmain, four of them relatively small. Farmers & ever, in the Board's judgment, by the dangers im- Merchants Bank has deposits of $4.8 million, plicit in the situation under the competitive factor. North Side Bank of $15.7 million, West Racine Acquisitions by larger holding companies in the Bank of $12.2 million, and Bank of Elmwood, State of the first or second biggest banks in larger which was organized in 1960, of $2.6 million. industrial areas may, if continued, result in more As to medium-sized business accounts, on the and more communities being dominated by one or other hand, the proposed affiliation would enable another holding company system. This is not to say American further to widen the gap between the that the Board would not, in an appropriate case, two large and the four smaller Racine banks. At approve further holding company formations or present, when a business customer of one of the acquisitions in Wisconsin,5 but it does mean that smaller banks grows to the size where it will need each such application will be scrutinized with parlarger credit lines and more varied services than ticular care as to the effect of an increase in size that bank, or any group at Racine banks, can and extent of an applicant's system, and of bank provide, it may go outside the city, but its local holding companies in the relevant communities business, presumably, remains with and continues and area generally, on the public welfare and the to nourish its original local bank. If a larger preservation of banking competition. Racine bank, bolstered by holding company af- On the basis of all the relevant facts as confiliation, could meet all of those needs, there could tained in the record before the Board and in the be a tendency for all the banking of the firm to be light of the factors set forth in Section 3(c) of the transferred to that bank, thus inhibiting the ability Act and the underlying purposes of the Act, it is of the smaller banks to grow into rounded service the Board's judgment that the transaction here institutions and, by sharing in locally generated proposed would not be consistent with the public banking business, augment the number competing interest and that the application should therefore in the provision of a broad range of services in be denied. the Racine market. Applicant argues that large banks and smaller banks are intrinsically different FIRST WISCONSIN BANKSHARES species, but it must be remembered that American CORPORATION, MILWAUKEE, WISCONSIN was once a small bank, and grew to its present size in the normal course of business life. In the In the matter of the application of First Wiscon- Board's judgment, approval of this application sin Bankshares Corporation, Milwaukee, Wisconwould inhibit the development and maintenance sin, for prior approval of the acquisition of 80 per of a vigorous competitive atmosphere over the cent or more of the voting shares of Merchants & full range of banking services in Racine. Savings Bank, Janesville, Wisconsin. A further consideration as to competition has been urged by the Department of Justice. A direc- 5 See the Board's Order and Statement in Matter of tor of Applicant is also a director of American's the Application of Valley Bancorporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 ORDER DENYING APPLICATION UNDER BANK STATEMENT HOLDING COMPANY ACT First Wisconsin Bankshares Corporation There has come before the Board of Governors, ("Bankshares" or "Applicant"), Milwaukee, Wispursuant to Section 3(a) (2) of the Bank Holding consin, a registered bank holding company, has Company Act of 1956 (12 U.S.C. 1842) and Sec- filed an application pursuant to Section 3 (a) (2) tion 222.4(a) (2) of Federal Reserve Regulation of the Bank Holding Company Act of 1956 ("the Y (12 CFR 222.4(a)(2)), an application on be- Act") for the Board's approval of the acquisition half of First Wisconsin Bankshares Corporation, of 80 per cent or more of the outstanding voting Milwaukee, Wisconsin, for the Board's prior ap- shares of Merchants & Savings Bank ("Merproval of the acquisition of 80 per cent or more chants"), Janesville, Wisconsin. of the voting shares of Merchants & Savings Bank, Bankshares owns seven banks and one trust Janesville, Wisconsin. company operating a total of 24 offices in five counties in Wisconsin. As of June 30, 1962,1 the As required by Section 3(b) of the said Act, the seven banks and the trust company had total de- Board gave notice of receipt of the application to posits of approximately $875 million, of which the Commissioner of Banks of the State of Wisapproximately $683 million were held by First consin, soliciting his views and recommendation. Wisconsin National Bank, Milwaukee, with 13 By letter of May 25, 1962, the Commissioner of offices. Two of the other six banks and the trust Banks recommended denial of the application. company are located in Milwaukee County, with However, the letter was not received within the one office each and about $12 million of total deperiod of thirty days within which the receipt of posits combined. The other four banks are located such a recommendation would, under the Act, in Fond du Lac (Fond du Lac County), Eau have required the Board to hold a formal hearing Claire (Eau Claire County), Madison (Dane on the application. County), and Oshkosh (Winnebago County). Notice of Receipt of Application was also pub- Merchants, with about $22 million in total lished in the Federal Register on April 12, 1962 deposits, operates its only office in Janesville, Rock (27 F.R. 3530), which provided an opportunity County, about 71 miles southwest of Milwaukee. for submission of comments and views regarding As stated in the Board's Order, the recommenthe proposed acquisition. The Department of dation of denial by the Wisconsin Commissioner of Justice submitted to the Board a Statement of the Banks was not received in time to make mandatory United States in Opposition to the proposed aca formal hearing on this application. It is neverthequisition. The Applicant filed with the Board a less appropriate for the Board to take his views Rebuttal to the said Statement of the United into account. The grounds of the Commisisoner's States. Following the expiration of the time for recommendation were, in part, that in addition to filing views and comments, the Board ordered a controlling more than 50 per cent of the volume public proceeding for the oral presentation of of deposits in Milwaukee the Applicant already views, notice of which was published in the Fedcontrols the "largest and most dominant bank" eral Register on June 27, 1962 (27 F.R. 6057). in four other Wisconsin cities and would, by the In accordance therewith, the said proceeding was acquisition of Merchants, gain control of the conducted before the Board on August 7, 1962. "largest and most dominant bank" in Janesville; IT IS HEREBY ORDERED, for the reasons set forth that Merchants in the Board's Statement of this date, that said "currently is well managed, has an adequate application be and hereby is denied. reserve for successor management, and is in Dated at Washington, D. C, this 31st day of a position to adequately meet the credit needs January, 1963. of the community in cooperation with other By order of the Board of Governors. existing banks in said city"; Voting for this action: Unanimous, with all members present. and that "In summary . growth and expansion of (Signed) MERRITT SHERMAN, Secretary. 1 All statistics herein are as of June 30, 1962, except [SEAL] as otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 189 holding companies in the State of Wisconsin sufficient management depth to ensure continuity should be halted if monopoly of banking of quality leadership and that the bank, on the operations is to be avoided, particularly when basis of past experience, anticipates difficulty in such growth and expansion involves the ac- recruiting and retaining adequate personnel. There quisition of the dominant independent banks is some ground for belief that affiliation with Bankin the respective areas where such banks shares would facilitate provision for management are located." succession, but it appears that Merchants has consistently obtained competent management in With respect to this application, Section 3(c) of the past, and the evidence that it cannot continue the Act requires the Board to take into considerato do so is not strong. Consequently, while contion the following factors: (1) the financial hissiderations relative to the management factor may tory and condition of the company and the bank be regarded as favorable in a slight degree, they concerned; (2) their prospects; (3) the character do not argue strongly for approval of the appliof their management; (4) the convenience, needs, cation. and welfare of the communities and the area Convenience, needs, and welfare. Since the concerned; and (5) whether or not the effect of Bankshares subsidiary nearest to Merchants is such acquisition would be to expand the size or about 42 miles distant in Madison, Dane County, extent of the bank holding company system inand since the addition of Merchants to the system volved beyond limits consistent with adequate and would not substantially affect the service capacity sound banking, the public interest, and the presof the system's banks individually or as a group, ervation of competition in the field of banking. consideration of the convenience, needs, and wel- Banking Factors. Consideration of the financial fare of the communities and area involved is history and condition of both Applicant and Merproperly focused on the area served by Merchants discloses nothing that would constitute a chants and the effect which its affiliation with reason for either approval or disapproval. Mer- Bankshares would be expected to have on banking chants appears to have been soundly and successservice in that area now and in the future. fully operated since its organization in 1875 with- The City of Janesville, comprising about 12 out being party to any mergers, reorganizations, square miles with a population of about 35,000, or the like, except for its absorption in 1922 of a substantially represents the primary service area2 bank that had failed. In spite of an asserted loss of Merchants, whose only office is located in the of business to larger banks and out-of-State banks, city's principal commercial district. Janesville is the ten-year period ended December 31, 1961, saw the largest city in Rock County and is a principal Merchants' deposits grow by more than 40 per industrial and trading center of the County. There cent, and the bank has remained well capitalized. are four other banks in Janesville, with an ag- At the same time, the Bankshares system has a gregate of about $35 million in total deposits, the sound record in the operation of its banks and its largest of these having about $17 million as comcontrol of Merchants would not be expected to pared with $22 million for Merchants. One of the have any adverse effect on the condition of that four, the Bank of Janesville, with a little over $1 bank. million in deposits, was recently organized by and The past performance of the holding company's is now owned by directors and principal stockbanks indicates favorable prospects for the sysholders of Merchants. While its size limits its prestem, and there is no reason for supposing that ent importance in the local banking scene, the affiliation of Merchants with this system would ad- Bank of Janesville should be regarded more as an versely affect that bank's prospects. However, on affiliate than as an independent competitor of the basis of the bank's past performance, pres- Merchants. ent situation, and the prospects for the economy Besides the Janesville banks, there are eleven of the area served by the bank, its prospects would banks in Rock County, seven of which are bebe favorable without the proposed holding comlieved by Applicant to draw a substantial amount pany affiliation. of their banking business from Janesville. Of these This latter conclusion takes into account assertions by Applicant that Merchants, while 2 The area from which the bank draws about 75 per strongly and capably managed at present, lacks cent of its deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 seven, four are in the $1 million to $4 million de- posed. To the extent service is desired beyond the posit range, the other three being two commercial capacity of the area's banks, the resources of combanks and one mutual savings bank in Beloit, petitive correspondent banking alternatives would with about $34 million, $20 million, and $14 mil- seem adequate to the demand for local service. lion, respectively, in total deposits. Thus, it ap- The fact that large national industries or busipears that banking service is being provided to ness concerns have operations in or near a com- Janesville and the surrounding area in varying munity does not necessarily mean that the comdegrees by a number of banks. The Applicant as- munity must be in a position to satisfy all their serts, however, that there remain banking needs banking needs or even that such apparent conthat the affiliation of Merchants with Bankshares venience is desired by the businesses in question. could help fill, and that also, through improve- Large industries locate their offices all over the ments in present banking service, such affiliation country even though they are aware that they would be of benefit to the community and the will be turning directly to the financial centers for area. their major credit needs. Geographical proximity With respect to lending services, the Applicant to sources of adequate credit is not a prime conalleges that large businesses with operations in sideration to the larger business borrowers; more- Janesville now turn to outside sources, in particu- over, it is not inimical to the welfare of a comlar the financial centers of Chicago and New York, munity in Wisconsin that it is unable to compete for their credit needs. It is urged that, through on an equal footing with New York, Chicago, or participations with Bankshares' other subsidiaries, even Milwaukee, in the credit service it can afford Merchants, as a subsidiary, could make available to large concerns with local operations. Nor is it an effective lending limit of $5 million that would inimical to the interests of individuals and the aid in retaining and recovering the loan accounts smaller local businesses that their credit needs of large customers. In other lending activities such do not have to compete with those of the largest as instalment loans, equipment loans, and in- concerns in the area. The extent to which ecoventory financing, and in other fields such as in- nomic growth in the Janesville area can be acternational banking, trust services, investment celerated by better banking and credit facilities portfolio management, and technical services, the depends more on the quality and adequacy of Applicant urges that the advice and assistance it service to the smaller businesses of the area than could provide to Merchants would substantially to the large businesses with alternatives elsewhere. improve the scope and quality of the service Furthermore, any increase the affiliation might offered by Merchants and therefore benefit the effect in Merchants' ability to service the larger area it serves. Anticipated assistance in the pro- credit accounts locally would not necessarily vision of management succession and easier ac- mean that the banking resources generated thereby cess to additional capital are also cited for their would be wholly retained by Merchants. In genindirect beneficial effect on the bank's service eral effect as to such accounts the affiliation would capacity. represent at best an improvement in the corre- Conceding the alleged advantages of access to spondent banking service available in Janesville, the experience and facilities of the holding com- and as the other banks in the system (notably pany organization that could be afforded to Mer- First Wisconsin National Bank in Milwaukee) chants as a member of the Bankshares system, the made their resources and facilities available to question is not so much how a particular bank Merchants so would they be expected to particimay improve or expand its services as whether pate in the benefits of the business thereby atsuch improvement or expansion is indicated for tracted to the system. Depending on the policies the provision of adequate and convenient bank- and practices within the system, Merchants might ing service to the community and area. While all fare better in this respect than it would as an the Applicant's presentations of fact and opinion arm's-length correspondent; nevertheless, only a on this aspect of the application have been con- portion of the business attracted from out of town sidered, the Board is not convinced that the Janes- to Merchants as an affiliate would represent inville area so lacks scope and quality in banking creased economic benefit to Janesville, At that, service as to indicate a need for the step here pro- for the purposes of the Act less importance would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 191 attach to such economic benefit than would at- It cannot be said that these figures necessarily tach if the area's economy were not prospering. indicate an undue competitive advantage on the For the above reasons, the Board does not be- part of Bankshares' banks in their markets, parlieve that a strong case for approval has been ticularly in view of the generally lower rates of presented under the fourth factor. growth of Bankshares' banks as compared with Effect on adequate and sound banking, the pub- other banks in the same areas. The fact remains, lic interest, and banking competition. For the most however, that the system's present subsidiaries not part, the information on distribution of banking only comprise the largest banking organization in resources and offices in Wisconsin does not, on the State, but also are individually the largest banks its face, present a picture of a situation that is in their respective counties. now manifestly hostile to healthy competition or Merchants is the largest bank in Janesville, and that would be substantially altered in that direc- in the County is second only to Beloit State Bank, tion by the proposed acquisition. Nor does it ap- Beloit. Merchants' $22 million of total deposits pear that the proposed acquisition would so ex- represent about 39 per cent of the total deposits of tend the holding company system as to be in- all banks in Janesville. Other banks in the area consistent with adequate and sound banking. The offer considerable competition, but Merchants' situation in the pertinent markets of the State is size gives it a competitive advantage not only in such, however, that if the proposed acquisition serving credit needs too large for the other banks would have a tendency contrary to the statutory in the Janesville area but also in drawing other aim of preserving banking competition, such fact banking business—both that relate to the large must be viewed adversely even though the acquisi- credit accounts and other business not so related— tion's direct effects might be slight. all of which could be handled by the other banks. The nearest Bankshares' subsidiary to Mer- Since it appears, apart from questions of conchants is in Madison, 42 miles distant, and Mil- venience, needs, and welfare, that membership in waukee, where First Wisconsin National is located, the Bankshares system would increase Merchants' is 71 miles away. Thus, while it appears that the effective capacity to supply business credit and latter bank, as the largest bank in Wisconsin, draws serve specialized business needs, to the extent such some kinds of business from a State-wide market, added capacity were utilized the affiliation would the elimination of present competition between set Merchants further apart as the bank for busi- Merchants and Bankshares' subsidiaries by the ness customers in Janesville and thus expand its proposed acquisition is not a significant considera- potential for dominance. The acquisition would tion. thus tend to restrict the range of opportunities within which other Janesville banks could effec- As regards concentration of banking resources, tively compete for the banking business of the consideration is to be given to the position of the Janesville area. Bankshares system in the markets in which it operates, to the position of Merchants in its mar- If Merchants were thus enabled to pre-empt an ket, and to the probable effect of the proposed ac- even greater share of Janesville's banking busiquisition on these positions. With some $875 mil- ness than it now has without having to rely on the lion of deposits, the Bankshares banks comprise success of its direct competitive efforts, the simthe largest banking organization in the State, that ilar efforts of the other banks would be in part amount representing about 18 per cent of the total negated and the future growth and development for the State. Of the $875 million more than 75 of those banks would be further inhibited. This, per cent is held by First Wisconsin National Bank, in turn, would dull their very incentive to com- Milwaukee, the "keystone" bank of the system pete and thereby lessen the vigor of banking and the largest in the State. That bank's deposits competition in the area. represent over 40 per cent of the total deposits of As discussed previously, there seems to be no banks in Milwaukee County. In each of the other such void in the banking service required in four counties in which Bankshares has subsidiaries, Janesville that the impact of the acquisition of their deposits represent from about 27 per cent Merchants by Bankshares would work immediate to about 45 per cent of the totals for all banks in major changes in the area's competitive picture, each county. but it does appear to the Board that such effects Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 as would result would be contrary to the public's of the voting shares of The Beloit State Bank, interest in the preservation of competition. Beloit, Wisconsin. Docket No. BHC-65 The addition of Merchants to the Bankshares system could also be regarded as contributing to ORDER DENYING APPLICATION UNDER BANK the protection of First Wisconsin National Bank HOLDING COMPANY ACT in its position as the leading bank in a State financial center. As discussed in connection with the There has come before the Board of Governors, fourth factor, the acquisition of Merchants would pursuant to Section 3 (a) (2) of the Bank Holding not necessarily result in a substantial shift of the Company Act of 1956 (12 U.S.C. 1842) and banking business of Janesville concerns to the Section 222.4(a)(2) of Federal Reserve Regula- Bankshares' banks; but the affiliation of the largest tion Y (12 CFR 222.4(a)(2)), an application on bank in the State with the largest bank in a fifth behalf of The Marine Corporation, Milwaukee, area of the State outside Milwaukee would tend Wisconsin, for the Board's prior approval of the contrary to flexibility and vigor of competition in acquisition of 80 per cent or more of the voting the broader commercial and industrial market shares of The Beloit State Bank, Beloit, Wisconsin. served by Milwaukee banks. As required by Section 3(b) of the said Act, Conclusion, The declared aims and desires of the Board gave notice of receipt of the application the parties to a proposal such as that before the to the Commissioner of Banks for the State of Board are not to be disregarded. However, even Wisconsin. Notice of receipt of the application was granting full force to the assertions of the proalso published in the Federal Register on June 20, ponents as to the benefits that would flow to both 1962 (27 F.R. 5828), affording opportunity for the bank and the holding company from the submission of comments and views regarding the affiliation, they do not add up to the degree of proposed acquisition. public benefit which would make it consistent Within 30 days after having been notified of the with the terms and purposes of the Act to permit Board's receipt of the application, the Commisthe absorption of a strong and vigorous indesioner of Banks for the State of Wisconsin advised pendent bank, the largest in its own area, by the the Board in writing of his recommendation that largest banking organization in the State. The the application be disapproved. In such circumresponsibility imposed on the Board by Congress stances, the Board is required by Section 3(b) of to restrain the aggregation of banking resources the Act to order a hearing. Accordingly, the Board through the holding company device is not limited issued an Order for Public Hearing, which was to situations where immediate adverse effects may published in the Federal Register on July 21, 1962 be foreseen, but extends also to those where al- (27 F.R. 6958), and a hearing was held before a ready existing competitive advantage would be induly selected Hearing Examiner on August 14 and creased without foreseeeable compensating bene- 15, 1962, at which testimony and exhibits bearing fit to the public. on the application were received. Accordingly, viewing the relevant facts in the Applicant has filed a Brief and Proposed Findlight of the general purposes of the Act and the ings of Fact and Conclusions of Law, and the factors enumerated in Section 3(c), it is the judg- Hearing Examiner has filed with the Board a ment of the Board that the proposed acquisition Report and Recommended Decision recommendwould not be consistent with the statutory obing approval of the application. In addition, the jectives and the public interest and that the appli- United States Department of Justice has submitted cation should be denied. Objections to Hearing Examiner's Recommended Decision and the Applicant has filed a Reply to Department of Justice Objections. THE MARINE CORPORATION, MILWAUKEE, WISCONSIN Having considered all matters properly before the Board in this proceeding, In the matter of the application of The Marine IT IS HEREBY ORDERED, for the reasons set forth Corporation, Milwaukee, Wisconsin, for prior in the Board's Statement of this date, that the said approval of the acquisition of 80 per cent or more application be and hereby is denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 193 Dated at Washington, D. C, this 31st day of the letter of the Commissioner recommending dis- January, 1963. approval and a Statement of the United States in By order of the Board of Governors. Opposition, filed by the Department of Justice, were received in evidence. Voting for this action: Chairman Martin, and Governors Balderston, Mills, Robertson, Shepardson, and Subsequent to the hearing, Applicant filed a Mitchell. Voting against this action: Governor King. Brief and Proposed Findings of Fact and Con- (Signed) MERRITT SHERMAN, clusions of Law. On November 9, 1962, the Hear- Secretary. ing Examiner filed his Report and Recommended [SEAL] Decision with the Board, recommending approval of the application. Thereafter, the Department of STATEMENT Justice submitted Objections to Hearing Exam- The Marine Corporation ("Applicant"), Mil- iner's Recommended Decision, and the Applicant waukee, Wisconsin, a bank holding company, has filed a Reply to Department of Justice Objections. applied, pursuant to Section 3(a) (2) of the Bank On the basis of the factual record made at the Holding Company Act of 1956 ("the Act"), for hearing, including the Hearing Examiner's report the Board's prior approval of the acquisition of and the pleadings described above presenting argu- 80 per cent or more of the voting shares of The ment based upon the hearing record, the matter Beloit State Bank ("Beloit State" or "Bank"), is now before the Board for decision. Beloit, Wisconsin. Views and recommendation of supervisory au- Background. Following the filing of the applicathority. As noted, the Commissioner of Banks for tion and pursuant to requirement of the Act, views the State of Wisconsin has recommended disapon the application were requested of the Commisproval of the application. His letter to the Board sioner of Banks for the State of Wisconsin. Notice containing this recommendation stated in part of receipt of the application was also transmitted that— to the United States Department of Justice and was published in the Federal Register on June 20, ". . . the major bank holding companies of 1962 (27 F.R. 5828). Wisconsin are engaged in a struggle for con- By letter dated July 13, 1962, the Commissioner trol of our dominant independent banks and, recommended to the Board that the application be unless stopped at this point, will ultimately disapproved. This recommendation was made lead to monopoly control of banking in the within 30 days of the Board's notice to the Com- State of Wisconsin." missioner of receipt of the application and, therefore, as required by Section 3(b) of the Act, the Statutory factors. Section 3(c) of the Act re- Board, by Order dated July 18, 1962, scheduled quires the Board to take into consideration the a public hearing to commence on August 14, following five factors: (1) the financial history 1962. Applicant and the Commissioner were di- and condition of the holding company and bank rectly notified, as required by the statute, and concerned; (2) their prospects; (3) the character notice of the hearing was published in the Fed- of their management; (4) the convenience, needs, eral Register on July 21, 1962 (27 F.R. 6958). and welfare of the communities and the area con- The hearing was held in Chicago, Illinois, on cerned; and (5) whether the effect of the acquisi- August 14, 1962, and in Beloit, Wisconsin, on tion would be to expand the size or extent of the August 15, 1962, before Hearing Examiner bank holding company system involved beyond Charles W. Schneider, who was selected for such limits consistent with adequate and sound bankpurpose by the United States Civil Service Coming, the public interest, and the preservation of mission pursuant to Section 11 of the Administracompetition in the field of banking. tive Procedure Act (5 U.S.C. 1010). Witnesses called and examined by Applicant were also sub- Financial history and condition. Applicant bejected to examination by counsel for the Board, gan operations as a bank holding company on and exhibits were introduced on behalf of the December 31, 1958, and at the present time con- Applicant and of the Board. No witnesses opposing trols 10 banks operating in the State of Wisconthe application appeared at the hearing, although sin. These banks, together with their deposits as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 of March 26, 1962,1 are as follows: Marine Na- its reserve for bad debts increased from $258 tional Exchange Bank, Milwaukee ($173 million); thousand to $656 thousand. The Hearing Exam- Wisconsin Marine Bank, Milwaukee ($32 mil- iner found, and the Board agrees, that the finanlion); Security State Bank, Madison ($21 mil- cial history and condition of Beloit State are lion);2 National Manufacturers Bank of Neenah satisfactory. ($18 million); Peoples Trust and Savings Bank, Prospects. The prospects of Applicant are in- Green Bay ($17 million); Capitol Marine Bank, timately related to the prospects of its subsidiary Milwaukee ($15 million); Cudahy Marine Bank, banks. Each present subsidiary is located in a Cudahy ($14 million); South Milwaukee Marine prosperous and growing area of the State. Six of Bank, South Milwaukee ($9.3 million); Waukesha these subsidiaries are located in Milwaukee County Marine Bank, Pewaukee ($9.2 million); County: Marine National Exchange Bank, located and Oak Creek Marine National Bank, Oak Creek in downtown Milwaukee, is the third largest bank ($1.3 million). In addition, the Board has given in the City and State; Capitol Marine Bank is its approval to Applicant's acquisition of Waulocated in the northeast section of Milwaukee in kesha Marine National Bank, Waukesha (a new a prosperous business, industrial, and residential bank, not yet open). In terms of total deposits, area; South Milwaukee Marine Bank is located Applicant is the third largest of the holding comin South Milwaukee, a growing suburb of the City panies headquartered in the State of Wisconsin, of Milwaukee; Cudahy Marine Bank is located in and (as of December 31, 1961) the fifteenth Cudahy, another suburb of Milwaukee, which largest in the United States. has experienced substantial population growth and Since Applicant's principal assets are the stocks industrial development in the last decade; Wisconof its subsidiary banks, the condition of those sin Marine Bank has experienced a striking recent banks is the principal factor bearing on the finan- growth and is located in a section of the south cial condition of Applicant. Total deposits and side of the City of Milwaukee which is being recapital accounts of Applicant's subsidiary banks developed; and Oak Creek Marine Bank is located are $308 million and $29 million, respectively, and in a growing community in the southeastern on the basis of all available information the finan- corner of Milwaukee County with its service area cial condition of these banks appears to be satis- bounded on the north by the city limits of Milfactory. Accordingly, the Board finds, as did the waukee. The Waukesha County Marine Bank, Hearing Examiner, that Applicant's financial Pewaukee, is located in the county to the west of history and condition are satisfactory. Milwaukee County, and its head office is approx- Beloit State was organized and began opera- imately 20 miles west and somewhat north of tions in 1892 and has shown a relatively con- the downtown business district of the City of Milsistent pattern of growth. Deposits have increased waukee. Peoples Trust and Savings Bank is located six-fold since 1940. Since 1955 this deposit growth in downtown Green Bay, a prosperous community has been largely in time deposits; from year-end located approximately 115 miles north of Mil- 1955 to March 26, 1962, while total deposits were waukee. The National Manufacturers Bank of increasing from $24 million to $34 million, de- Neenah, the second largest bank in the cities of mand deposits actually declined slightly (by $300 Neenah and Menasha, is located approximately 70 thousand), a situation which appears attributable, miles northwest of Milwaukee in Winnebago in large part, to a decline in large commercial and County. The recently acquired Security State Bank industrial demand accounts. Beloit State has loans is located in a rapidly growing trade area on the of $16 million and total assets of $38 million. east side of the city of Madison, 77 miles west of From December 31, 1956, to March 26, 1962, Milwaukee in Dane County. The Waukesha Beloit State's capital accounts increased from $2 Marine National Bank, when opened, will be million to $2.9 million from retained earnings and located in downtown Waukesha, 18 miles west of the downtown business district of Milwaukee. 1 Unless otherwise indicated, all figures used herein Each of these banks appears to have good prosare of this date. 2 This bank was acquired by Applicant on June 29, pects, and therefore the Board concludes, as did 1962, and all figures herein have been adjusted, where the Hearing Examiner, that the prospects of Applinecessary, to reflect this acquisition. cant are satisfactory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

195 LAW DEPARTMENT So far as concerns Beloit State, Applicant ex- would probably be bettered to some degree by presses the view that the prospects for continued consummation of the proposed acquisition. growth and expansion and development of its Management. Applicant has 21 directors; 15 are services are good if it can meet the challenge aris- officers and/or directors of Marine National Exing from the expansion of its primary trade area change Bank, including its president, 3 are presiand the increasing competition from banks in the dents of other subsidiary banks (Cudahy Marine large metropolitan centers for the credit and de- Bank, National Manufacturers Bank of Neenah, posit business of the principal industrial concerns and Wisconsin Marine Bank), 1 is a director of in its primary trade area. This latter point was the Oak Creek Marine National Bank, and only 2 have subject of considerable attention and emphasis, no official relationship with Applicant's subsidboth in the application and during the course of iaries. Applicant's officers are drawn predomithe hearing, and, in the final analysis, may be nantly from the ranks of officers of Marine Nacharacterized as the primary consideration upon tional Exchange Bank, Applicant's largest subwhich Applicant seeks to justify the proposed sidiary. Collectively, these directors and officers acquisition. represent considerable knowledge and experience in the field of banking, and in the Board's opinion It is possible, as contended by Applicant, that the character of Applicant's management is satisif Beloit State were to become affiliated with Apfactory. This is in accord with the finding of the plicant's holding company system, some of the Hearing Examiner. credit and service requirements of the large industrial concerns in the Beloit area might be Applicant states that the present management of more readily accomodated locally, and that this, Beloit State is competent, and all indications support this comment. Its Board of Directors includes in turn, might enable Beloit State to recapture the President of Beloit College and the presidents some of the loan and deposit business of these of four large local manufacturing concerns, which firms which has migrated to the large financial gives Bank access to a pool of mature and thoughtcenters such as Chicago and New York. Assumful business judgment. Beloit State's officers are ing, without conceding, the correctness of Applirelatively young and appear to be able and aggrescant's assertion that a major portion of the resive. In light of the foregoing, the Board is of the captured deposits could be expected to remain view that the character of Bank's management is with Beloit State and be utilized in the Beloit area, satisfactory, which is consistent with the Hearing nevertheless this is only one of the economic con- Examiner's finding that management is "apparsiderations which has a bearing on the prospects ently outstanding." of Beloit State. The City of Beloit is in the center Applicant claims, however, that notwithstanding of an area which has demonstrated a vigorous upthe present quality of Beloit State's management, ward trend in population and business over the Bank is finding it increasingly difficult to fill manpast two decades, and according to a population agement vacancies and attract adequate personnel, study prepared for the Beloit City Planning Comand that this situation bodes ill for the future unmission in March 1962, there is every indication less access is had to the pool of experienced perthat this trend will continue. Based on Beloit sonnel in Applicant's system. Certainly this con- State's pattern of growth to date and taking into tention merits careful consideration by the Board. account its dynamic management, it appears reas- However, the record shows that during the past onable to conclude that it will capture a fair share five years Beloit State has been able to find and of the new banking activity inherent in the ex- employ five capable executives. Viewed in perpansion of population and business in the vicinity spective, there is no indication that Beloit State's of Beloit, and that effective steps will be taken by problems with regard to management succession Bank to keep pace with the demand from the and replacement differ markedly from those facing community at large for new and improved banking the banking industry in general or, more particuservices. The Hearing Examiner found Beloit larly, other banks of similar size and operating cir- State's prospects to be good and, in the Board's cumstances. Thus, while it is recognized that stafopinion, this would be true whether or not it is fing problems might be solved more readily as a affiliated with Applicant, although its prospects member of a holding company system, the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 cannot conclude that affiliation with Applicant is the field of foreign trade, thereby attracting larger the only reasonable means of insuring continued deposit balances from these firms which would invitality and competence in Bank's management crease the strength of Bank and enhance its ranks, and therefore does not regard this consid- growth, leading to improvement in the financial eration as weighing significantly in favor of ap- strength and stability of the community. A colproval of the application. lateral consideration also advanced is that local Convenience, needs, and welfare of the com- availability of the necessary banking services could munities and the area concerned. Beloit State's attract new concerns to the Beloit area and enonly office is located in the City of Beloit, Rock courage existing firms to expand operations in County, Wisconsin, which is immediately north of Beloit rather than elsewhere. the Illinois-Wisconsin border, 107 miles northwest (c) Bank would be better able to develop its of Chicago, 73 miles southwest of Milwaukee, 48 instalment loan business, a service for which there miles southeast of Madison, and 13 miles south of is great potential in the Beloit area. Janesville. Bank's primary service area encom- (d) Bank would be able to provide better trust passes all of the City of Beloit and almost all of and investment services, particularly in the field the Town of Beloit and the Town of Turtle; the of corporate fiduciary operations. estimated population of this area, as of the date of In addition to the foregoing, it is claimed that the application, was 45,541. affiliation with Applicant would give Beloit State Besides Beloit State, with deposits of $34 mil- access to improved operational features such as lion, there are two other banks in the City of automation, portfolio management and analysis, Beloit—the First National Bank and Trust Com- system and procedure studies, participation in pany and the Beloit Savings Bank (an insured joint advertising programs, credit investigation and mutual savings bank), having deposits of $20 mil- review, centralized purchasing, personnel training lion and $14 million, respectively. All three banks and development, coordinated fringe benefit adare located within a block of each other. ministration, and coverage in group insurance Rock County had a population of 113,913 at policies; also, that new capital would be more the time of the 1960 census, representing a 22.8 readily available when required. Presumably, it is per cent increase over the preceding 10 years. In Applicant's position that these incidental advanaddition to the 3 Beloit banks, there are 13 other tages of Bank's affiliation would redound to the banks in the County. Beloit State is the largest of benefit of the individuals and businesses in the these 16 banks, followed by Merchants & Savings Beloit area by making Bank stronger and more Bank, Janesville (deposits $21 million), First Na- efficient, thereby enabling it better to serve its tional Bank & Trust Company, Beloit (deposits customers. $20 million), First National Bank of Janesville With respect to the circumstances bearing on (deposits $16 million), and Beloit Savings Bank the fourth statutory factor, the Hearing Examiner (deposits $14 million). The 11 remaining Rock concluded that— County banks range in deposits from $9.2 million "On the basis of the evidence presented the down to $1.2 million. program would appear to be in the public in- According to Applicant, the trade area served terest, in that it would contribute to the conby Beloit State would benefit in the following ways venience, needs, and welfare of the comfrom approval of the proposed acquisition: munity and the area concerned and introduce (a) Bank would be able to maintain and add to desirable competitive forces within the afits experienced staff, both on the management level fected banking structure. It would seem reaand in the various service areas, thereby bringing sonable to conclude that strengthening a local to the area a degree of specialization in banking financial institution so as to enable it to serve services which is now lacking. local needs with greater adequacy, and thus to (b) Bank would be better able to compete with compete more effectively with out-of-area the large metropolitan banks in serving the large banks for area business should provide a industrial concerns located in its primary service broader competitive base, and consequent area, both in terms of credit demands and with better service, and thus further the legitimate respect to highly specialized counsel such as in interests of the local community. In this sense Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 197 the tendency of the result would appear to be State will arise out of the useful services available to diffuse and to moderate existing concentra- through Bank and the profitable opportunities for tion of banking power and resources. It investment in the area which it serves. With regard would thus seem that unless there are sub- to this point, there is no indication in the evidence stantial countervailing considerations the ap- before the Board of a relatively profitable unsatplication should be approved. * * * " isfied margin of local credit demands in the Beloit area, nor are there signs that the growth of the Although agreeing in principle with the conclusion Beloit area has been or will be hampered by reason of the Hearing Examiner concerning the favorable of inadequate bank credit. Thus, there can be no impact of the circumstances bearing on the fourth firm reason to believe that the proposed acquisistatutory factor in this case, the Board does not tion would have a significant impact in this respect regard the evidence relating thereto as being quite on the welfare of Beloit and environs. so persuasive. There is no evidence of record to indicate that So far as concerns the convenience of banking there are banking needs within Beloit State's serv- services in Beloit, the record supports the conice area which are presently unserved. Nor would clusion that the general banking requirements of it appear that the welfare of the community would the majority of Beloit's residents are adequately be materially affected by consummation of the and conveniently served by the local banks, and proposed transaction. that the principal beneficiaries, in terms of convenience, of the proposed acquisition would be Applicant asserts its belief that should Beloit the few large business enterprises in the Beloit State become affiliated with Applicant's holding area which might benefit from having a local concompany system, a substantial portion of the large duit for counsel and services of a highly specialbusiness concerns in and around Beloit would ized nature, such as foreign trade and corporate thereafter utilize Bank's service to a greater extent, fiduciary activities, as well as from having an augresulting in Bank's acquiring some of the deposits mented supply of credit available through a local of these businesses now held by banks in Chicago, source. Milwaukee, and New York. While it appears equally likely that a substantial part of any such Certainly Bank's desire to accommodate this deposits moving to Beloit State from the banks in segment of the business community as well as the the large financial centers might in fact be trans- public at large is a legitimate and laudable obferred to other subsidiaries of Applicant, princi- jective, and it appears in the present case, whatpally Marine National Exchange Bank, to the ever the usual situation with regard to correspondextent that Applicant's management found it ad- ent relationships may be, that Beloit State has vantageous to leave these deposits in Beloit State, found resort to its correspondent banks for credit there could be, as Applicant argues, some positive and service assistance unsatisfactory, compoundinfluence on the economy of the Beloit area. How- ing the difficulties which it has faced and foresees ever, former customers attracted back to Beloit in aspiring to the patronage of the large businesses State by the larger loan and service potential of in the Beloit area. Possibly Beloit State could, by the holding company system may well be bor- diligent search, find a correspondent or correrowers as well as depositors, and it may be ques- spondents which would be willing to engage in a tioned whether their additions to the local pool of viable and mutually satisfactory working relationloanable funds (through recaptured deposits) ship.3 By the same token, in light of Beloit State's would exceed their drains upon the local pool of past history and the enterprising character of its loanable funds (through repatriated loans). present management, it might reasonably be expected to take necessary action to broaden its To be sure, the management of the holding comservices. However, the fact of the matter is that pany system and that of its larger customers may were the proposed affiliation to take place it is arrange the distribution of loans, deposits, and services through the holding company system in 3 It may well be that this has already been accomany desired fashion that conforms to legal limitaplished, since shortly before the public hearing Marine tions. Nevertheless, the long-run incentives for National Exchange Bank in Milwaukee, the largest management to make such distribution in ways bank in Applicant's holding company system, became which enlarge the net lending potential of Beloit Beloit State's principal correspondent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 reasonable to predict that Beloit State might well sin and controlling $308 million in deposits,4 ranks be in a position better to meet at least part of the as the third largest bank holding company headbanking requirements of the firms in question, and quartered in Wisconsin and (as of December 31, the local availability of this alternative source of 1961) the fifteenth largest (out of 46) in the service could reasonably be regarded as represent- United States. Although only a bit over one-third ing a greater convenience to such firms. (36%) as large as the largest Wisconsin holding Thus, while the circumstances surrounding the company in terms of deposits, if the deposits of application here under consideration which have a the principal bank in each system are deducted bearing on the statutory factor of convenience, from the ratio, Applicant is almost three-quarters needs, and welfare of the community and area (73%) the size of the largest. involved resolve themselves into a question pri- If this application were to be approved, the marily of the convenience of Beloit State's present aggregate deposits of Applicant's subsidiaries and potential customers, and in this regard the would increase to $343 million and its banking issue is one essentially of the convenience of the offices to 13. This would make Applicant the seclarge industrial concerns in Bank's service area, ond largest Wisconsin holding company in terms the Board regards the contribution to the con- of total deposits. The proposed acquisition would venience of this important segment of the com- give Applicant representation in six Wisconsin munity as weighing, although not heavily, in favor counties. of approval of the application. Beloit State (the largest bank in the City of Effect on adequate and sound banking, the pub- Beloit and in Rock County) has deposits of $34 lic interest, and competition. The fifth statustory million and operates one banking office, which factor which the Board is directed to consider is represents 50.7 per cent and 25.0 per cent, rewhether the proposed acquisition would expand spectively, of the deposits and banking offices in the size or extent of the holding company system the City of Beloit and 23.2 per cent and 5.9 per involved beyond limits consistent with adequate cent, respectively, of the deposits and banking and sound banking, the public interest, and the offices in Rock County.5 preservation of competition in the field of banking. There is no indication that consummation of the acquisition here under consideration would be in- As pointed out by the Board in the Morgan New consistent with adequate and sound banking, either York State Corporation case (1962 Federal Rein Beloit or elsewhere. However, the impact of the serve BULLETIN (May) pp. 579 et seq.), while acquisition upon the preservation of competition each of the statutory factors is important and no in the field of banking, and, more broadly, the single one controlling, in evaluating the weight public interest, deserves close attention. and significance of the various considerations which are found to exist with respect to a given Applicant claims that the proposed acquisition proposal the Board must bear in mind the over- would not result in any adverse effect upon bankall purposes of the statute. The legislative history ing competition in the Beloit area. Apart from the of the Act reveals that a principal impetus for its fact that none of Applicant's present subsidiary enactment was the belief of the Congress that banks is located in or does any significant amount there was need for regulatory control over affilia- of business in Beloit State's primary service area, tions of banks through the holding company de- it is suggested that the present pattern of compevice because, uncontrolled, such activity could tition between Beloit State and the two other local lead to undue concentration of banking resources banking institutions would not be disturbed, beand activities as well as restraint or inhibition of cause the objective and effect of the proposed competition. acquisition would be to strengthen Beloit State's The first point to be considered in relation to 4 Excludes the Marine National Bank of Waukesha, this factor is the effect of the proposed acquisition acquisition of which has been approved by the Board in this case upon the size and extent of Appli- but which is not yet open for business, but includes Security State Bank, Madison, which was acquired on cant's holding company system. June 29, 1962. Applicant, with its 10 operating subsidiary banks 5 Data includes deposits of $14 million and one having 12 banking offices in the State of Wiscon- office of a mutual savings bank in Beloit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 199 ability to compete with large metropolitan banks the local market dominance of what is already the for the business of large corporate clients in the largest bank in the City of Beloit and in Rock Beloit area, which neither of the other local banks County, thereby having a potential long-range is in a position to seek. Indeed, it is argued, the detrimental competitive effect on the remaining competitive picture of banking in the community smaller independent banks located therein, and will actually be enhanced, since by affiliation with this negative consideration is sufficient to outweigh Applicant Beloit State will be better able to service the favorable circumstances found to exist with the banking demands of the large local businesses, respect to the first four statutory factors in this thereby bringing to the community a new alterna- case and to call for disapproval of the application. tive source of banking. A further aspect of the competitive question to This line of argument was found persuasive by which consideration has been given is the effect the Hearing Examiner, and he concluded that which consummation of the proposed acquisition "there is no apparent reason to apprehend that af- would have on the concentration of banking refiliation of the Bank with Applicant will adversely sources in the State of Wisconsin. alter existing competitive relationships as between The three largest Wisconsin bank holding comthe Beloit banks." The Board does not agree. panies together account for 42 offices (5.8 per It may well be that the proposed transaction cent) and 31.7 per cent and 34.2 per cent, rewould, through the benefits of direct affiliation spectively, of the deposits and loans of the insured with the third largest Wisconsin bank holding commercial banks in the State; and if this applicompany (which would become second if the ap- cation were to be approved, these three holding plication were to be approved), serve to place companies would control 6.0 per cent of the com- Beloit State in a position to compete more vig- mercial banking offices in Wisconsin, and 32.4 per orously with other banks in Chicago, New York, cent and 35.0 per cent, respectively, of the deand elsewhere. On balance, however, it may be posits and loans of these offices. questioned whether, in fact, the impact of Beloit The Hearing Examiner concluded that Appli- State's enhanced competitive strength could be or cant's acquisition of Beloit State would not tend to would be channeled only into the recapture of monopoly control of banking in the State of Wisbusiness now handled by the large metropolitan consin. While this may be true, the Board's rebanks; many of the improved and expanded serv- sponsibility under the Act requires it to consider ices which Applicant claims will be instituted by more than the question of monopoly control. Beloit State following affiliation would, perforce, Perhaps, viewed in the abstract, the extent to redound to the benefit of the Bank in serving not which Beloit State's acquisition would add to the only large corporate clients but the public at large. total commercial banking offices and deposits The Board is not unmindful of the evidence under holding company control in the State or in adduced which purports to show that independent the County involved would not be considered subbanks in certain Wisconsin communities have stantial. However, since the three largest bank flourished in the face of competition with a local holding companies in Wisconsin already control a bank holding company subsidiary. However, there significant portion of the deposit and loan busiis nothing to indicate that, as applied to the Beloit ness of banks in the State, under circumstances area, the nature of the banks involved or the eco- such as those here presented, where one of the nomic, demographic, or geographic circumstances large holding companies proposes to add the are comparable; nor is it clear as to what the ex- largest bank in a trade area (indeed, Beloit State planation for this phenomenon is or the extent to ranks 17th in amount of deposits in the State) which it may be true in other locations. In this to an already significant pattern of control of posture of the record, the Board does not feel at banking resources by the large holding companies liberty to infer that Beloit State's affiliation with in the State, the Board would consider itself remiss Applicant would not place the other banks in in its statutory duties were it to grant approval Beloit and, to a lesser extent, in Rock County at a without the most clear-cut showing of counterdisadvantage in competing with Bank for business. vailing benefits. It is the opinion of the Board that consumma- Conclusion. All things considered, it is the contion of the proposed acquisition would increase clusion of the Board that, taking into account the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 present dominant position of Beloit State in its and contrary to the public interest. This adverse trade area and the existing degree of control of consideration is not sufficiently offset, in the banking resources by the three large holding com- Board's judgment, by favorable considerations panies in the State of Wisconsin, Applicant's under other statutory factors as to warrant apacquisition of Bank would be inimical to the pres- proval of the application. ervation of competition in the field of banking Announcements APPOINTMENT OF DIRECTOR the Federal Reserve System, Washington 25, D. C. For announcements of previous pamphlets, see On January 25, 1963, the Board of Governors announced the appointment of C. Hunter Green BULLETINS for January 1962, p. 38; March 1962, p. 300; August 1962, p. 993, and October 1962, of Louisville, Kentucky, as a director of the Louisp. 1295. ville Branch of the Federal Reserve Bank of Saint Louis for the unexpired portion of a term ending BANKING AND MONETARY STATISTICS December 31, 1965. Mr. Green is Vice President and General Manager, Southern Bell Telephone The annual banking and monetary statistics on and Telegraph Company, Louisville. As a director pp. 268-75 of this BULLETIN are complete except of the Louisville Branch he succeeds William H. for reserves and borrowings of member banks, Harrison, President, Taylor Drug Stores, Inc., which will be included in the March BULLETIN. Louisville, whose term expired December 31,1962. ADMISSION OF STATE BANK TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO BANKING AND MONETARY STATISTICS The following bank was admitted to Membership Another pamphlet, entitled "Currency," Section 11 in the Federal Reserve System during the period of Supplement to Banking and Monetary Statistics, January 16, 1963, to February 15, 1963. is now available for distribution. Copies may be Wisconsin obtained for 35 cents each from the Division of Administrative Services, Board of Governors of Chippewa Falls . Northwestern State Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication February 14 Industrial production, nonfarm employment, CONSTRUCTION ACTIVITY and retail sales continued to change little in Jan- New construction put in place, which was reuary. Commercial bank credit rose further. Bevised downward for December, increased in Jantween mid-January and mid-February, bond yields uary to the November seasonally adjusted annual increased somewhat. rate of %62Vi billion. Residential building rose 2 INDUSTRIAL PRODUCTION per cent further while most other types of private activity and public construction changed little. Industrial production in January was unchanged from the revised December index of 119 per cent EMPLOYMENT of the 1957-59 average. Output of consumer goods Seasonally adjusted employment in nonfarm increased, but production of equipment and maestablishments in January remained at the level terials declined somewhat. In both December and prevailing since mid-1962. Employment was re- January production was limited by strikes and duced in transportation because of the dock strike severe weather. affecting Eastern and Gulf ports from December Auto assemblies in January remained at the 23 to January 27. Employment in other activities advanced level of the previous six months. Outshowed only small changes, with manufacturing put of home goods recovered further, returning to down and trade up. In manufacturing, both emthe high of last spring; gains were particularly ployment and the average workweek were somelarge for television sets. Production of consumer what below their levels in mid-1962. The rate of staples was maintained at the record level reached unemployment in January was 5.8 per cent of the last summer. civilian labor force, compared with 5.6 per cent Output of construction materials declined furin December and 5.8 per cent in November and ther in January, and production of crude oil and January 1962. some other nondurable materials was curtailed. Output of primary metals changed little. In early DISTRIBUTION February, steel ingot production increased somewhat. Preliminary retail sales figures for January were V2 per cent below the advanced November-December level. Sales declined at department stores and INDUSTRIAL PRODUCTION at most other types of retail outlets other than the 1957-59 -• 100 140 automotive group. Dealer deliveries of new autos, 130 after declining from the near-record rate reached FINAL 120 in October, rose substantially in January. Dealer PRODUCTS , stocks of new autos increased somewhat more than seasonally but were only 2 per cent higher than a year earlier while sales were up 12 per cent. J COMMODITY PRICES NONDURABLE The wholesale commodity price index continued MANUFACTURES to change little between mid-January and mid- February. Apart from a rise in steel scrap, prices of sensitive materials changed little and prices of I, L 1 L I J industrial products generally were stable. Live- 1959 1961 1963 stock prices declined about 5 per cent, reflecting Federal Reserve indexes, seasonally adjusted. Monthly ures, latest shown are lor January. fig- mainly sharp decreases in cattle. 201 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 BANK CREDIT, MONEY SUPPLY, AND RESERVES Government securities. Required reserves increased further, and excess reserves declined. Total commercial bank credit, seasonally ad- Member bank borrowings at the Federal Reserve, justed, rose further in January by $1.2 billion, an which had been temporarily high in December, amount not quite as large as in other recent were reduced; in late January and early February, months. Security holdings increased contraseasonhowever, they increased somewhat. ally, but total loans changed little following a sharp rise in December. The money supply declined SECURITY MARKETS $600 million between the second half of December Yields on U. S. Government securities and on and the second half of January, following sub- State and local government bonds rose somewhat stantial growth in late 1962. Time and savings debetween mid-January and mid-February while posits at commercial banks rose $1.7 billion, a larger amount than the monthly increases in late those on corporate bonds changed little. Rates on 1962. 3-month Treasury bills, at around 2.95 per cent, Total reserves, which usually decline in Janu- were near their 1962 highs. ary, changed little. Reserves were supplied prin- Common stock prices increased slightly furcipally through currency inflow and were absorbed ther on balance, and trading remained active. By through increases in Treasury deposits at the Re- mid-February average prices had recovered twoserve Banks, an outflow of gold, and a $350 mil- thirds of the decrease from the peak in December lion reduction in Federal Reserve holdings of U. S. 1961 to the low in late June 1962. RETAIL TRADE INTEREST RATES 1957-59 = 100 RETAIL SALES DEPARTMENT STORES TOTAL /\f"^ \ f\\ . /• >t f TREASURY lilLLS — TOTAL IK5S — AUTOMOIIVE OKOUP>^\ ? ? ! T ! ? \ T Federal Reserve indexes, seasonally adjusted; retail sales Discount rate, range or level for all F. R. Banks. Weekly based on Department of Commerce data. Monthly figures; average market yields for U. S. Government bonds maturing latest for stocks is December, for other series, January. in 10 years or more and for 90-day Treasurey bills. Latest figures shown are for week ending February 8. 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 rp Revised preliminary S Financial sources of funds: net change in liabilities I, n, U Financial uses of funds: net acquisitions of in, iv Quarters assets n.a. Not available n.e.c. Not elsewhere classified Amounts insignificant in terms of the par- S.A. Monthly (or quarterly) figures adjusted for ticular unit (e.g., less than 500,000 when seasonal variation the unit is millions) N.S.A. Monthly (or quarterly) figures not adjusted (1) Zero, (2) no figure to be expected, or (3) for seasonal variation figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a negative figure, or (3) an outflow. A heavy vertical rule is used (1) to the right (to the left) of a total when the components shown to the right (left) of it add to that total (totals separated by ordinary rules include more components than those shown), (2) to the right (to the left) of items that are not part of a balance sheet, (3) to the left of memorandum items. "U.S. Govt. securities" may include guaranteed issues of U.S. Govt. agencies (the flow of funds figures also include not fully guaranteed issues) 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 Annually—cont. Issue Page Flow of funds Jan. 1963 82-89 Selected assets and liabilities of Federal busi- (Feb. 1963 268-75 ness-type activities Jan. 1963 90 Banking and monetary statistics, 1961 {Mar. 1962 362-63 |May 1962 652-55 Semiannually Banks and branches, number of, by class and Banking offices: State Apr. 1962 482-83 Analysis of changes in number of Feb. 1963 266 On, and not on, Federal Reserve Par List, Income and expenses: number of. Feb. 1963 267 Federal Reserve Banks Feb. 1963 264-65 Member banks: rflIpnHarvpar /May 1962 644-51 Annually Calendar year |Ju{y 1%2 9Q2 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, Stock Exchange firms, detailed debit and credit Dec. 31, 1961 Aug. 1962 1075 balances Sept. 1962 1234 204 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 206 Reserve Bank discount rates; margin requirements; reserve requirements. 210 Federal Reserve Banks . 212 Bank debits; currency in circulation 214 Money supply; banks and the monetary system 216 Commercial and mutual savings banks, by classes. 218 Commercial banks, by classes . . .... 222 Weekly reporting member banks. . 224 Business loans 227 Interest rates 228 Security prices; stock market credit; open market paper. , 229 Savings institutions . ... 230 Federal finance 232 Security issues. ... 237 Business finance . . . 239 Real estate credit 241 Consumer credit 244 Industrial production 248 Business activity 252 Construction 252 Employment and earnings 254 Department stores 256 Foreign trade . 257 Wholesale and consumer prices ... 258 National product and income series . . 260 Flow of funds, saving and investment 262 Earnings and expenses of Federal Reserve Banks during 1962. 264 Changes in number of banking offices in the United States. . . 266 Banking offices on Federal Reserve par list and not on par list. 267 Banking and monetary statistics, 1962. 268 Guide to tabular presentation. 204 Index to statistical tables. 299 The data for F. R. Banks, member banks, and ties are obtained from Treasury statements; department stores, and consumer credit are the remaining data are obtained largely from derived from regular reports made to the other sources. For many of the banking and Board; production indexes are compiled by the monetary series back data and descriptive text Board on the basis of data collected by other are available in Banking and Monetary Staagencies; figures for gold stock, currency, Fed- tistics and its Supplements (see list of publieral finance, and Federal business-type activi- cations at end of the BULLETIN). 205 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 BANK RESERVES AND RELATED ITEMS FEBRUARY 1963 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 P d e o r a i r t o e d T U o . t S a . l G B o r o o v i u g u t g . h t - h t s t ec R u m c a r e h i g e t p a r i n u e e s t s e e r s - - c v D o a a a n u n i d s c d n - - e ts s Float i t T a o l - 2 s G to o c ld k T r s c o r e t u i e a u n n u r n a r g y c t s - 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 r u o n e a r l g s a y d h s s - - th w a i n th m r F e e s . F e m R o rv b r . - e e B s r , a O b n a t k h n s e k ri c O F o . a t u c h R - n e t . r s B F W a i . n t R k M h s e r m e c r C s b o a e e u i e n n r r r n c d v - 3 y e b s an T k otal 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 11J473 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 23,708 381 652 24,744 20,047 4,322 28,452 2,269 625 1,247 493 16,027 16,027 1950—Dec 20,345 20,336 9 142 ,11721,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1951—Dec 23,409 23,310 99 657 ,37525,446 22,483 4,701 29,139 1,280 271 571 264 796 ?0310 20,310 1952—Dec 24,400 23,876 524 1,633 ,26227,299 23,276 4,806 30,494 1,271 569 745 290 832 180 21,180 1953—Dec 25,639 25,218 421 448 ,01827,107 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 1955—Dec 24,602 24,318 284 840 ,38926,853 21,689 5,008 31,265 777 434 459 394 983 19, 19,240 1956—Dec 24,765 24,498 267 706 ,63327.156 21,942 5,064 31,775 772 463 372 247 998 19,535 1957—Dec 23,982 23,615 367 716 ,44326;186 22,769 5,144 31,932 768 385 345 186 1,063 19,420 19,420 1958—Dec 26,312 26,216 96 564 ,49628,412 20,563 5,230 32,371 691 470 262 337 1,174 18,899 1959—Dec 27,036 26,993 43 911 ,42629,435 19,482 5,311 32,775 396 524 361 348 1,195 18628 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 16688 2595 19,283 1961—Dec 29,098 29,061 37 152 1,92131,217 16,929 5,587 33,954 422 514 229 244 1,112 17259 2,859 20,118 1962—Jan... 28,519 28,478 41 93 1,807 30,468 16,852 5,588 33,291 441 417 234 288 1,042 17195 2894 20,089 Feb... 28,384 28,377 7 118 1,29029,839 16,793 5,586 32,848 449 426 211 272 1,096 16916 2,655 19,571 Mar... 28,570 28,524 46 156 ',29330,063 16,707 5,588 32,996 439 448 215 272 1,049 16939n 611r19,55O Apr... 29,143 29,015 128 134 ,31730,634 16,564 5,588 33,235 428 485 220 350 985 17083 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 17122r270119,823 June.. 29,568 29,510 58 154 ,50831,265 16,434 5,601 33,626 402 514 269 322 971 17196 2728 19,924 July.. 29,581 29,540 41 109 ,73631,475 16,310 5,602 33,989 398 490 273 312 654 17272n,771r20,043 Aug... 30,088 30,074 14 143 ,33031,600 16,136 5,598 33,962 405 524 200 335 764 17144r2780r19,924 Sept... 29,921 29,865 56 91 ,76031,807 16,079 5,548 34,004 398 500 211 296 799 17227 2807 20,034 Oct.. . 30,241 30,178 63 76 ,70532,057 16,050 5,55f 34,111 404 517 216 320 710 17382 2823 20,205 Nov.., 30,195 30,064 131 129 694 32,053 15,978 5,55: 34,584 401 472 202 293 925 16706 2895 19,601 Dec... 30,546 30,474 72 305 2,29833,218 15,978 C5,561 C35,281 C398 587 222 290 1,048 16932 3 105 20,037 1963—Jan 30,198 30,148 50 101 2,27832,663 15,950 5,568 34,574 422 777 226 299 976 16909 132 P3 Week ending— 1961 Dec. 6. 29,274 29,274 36 1,27' 30,631 16,975 5,588 33,579 416 501 216 258 1,143 17082 2682 19,764 13. 29,334 29,334 40 1,363 30,780 16,961 5,590 33,937 423 460 247 228 1,131 16906 2836 19,742 20. 29,007 29,007 109 2,24031,401 16,920 5,588 34,072 424 600 215 219 1,102 17277 2957 20,234 27. 28,845 48 218 2,52631,685 16,889 5,584 34,171 421 511 207 238 1,106 17506 2842 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 17740 3062 20,802 10 28,784 28,717 6' 79 22,005599 30,972 16,883 5,587 33,661 434 380 240 261 ',043 17421 2871 20,292 17 28,520 28,501 19 89 11,887700 30,529 16,839 5,586 33,386 440 435 232 29: ,040 17130 2926 20,056 24 28,279 28,279 72 1,778866 30,185 16,839 5,589 33,070 442 439 220 305 ,043 17094 2878 19,972 31 28,310 28,310 94 1,227 29,678 16,832 5,590 32,793 450 424 213 296 ,04f 16882 2876 19,758 Feb. 7 28,588 28,588 122 1,11729,873 16,804 5,584 32,776 460 359 223 27 ,04: 17125 2573 19,698 14 28,575 28,575 120 1,050 29,791 16,789 5,585 32,888 448 444 197 252 ,02: 16914 2606 19,520 21 28,090 28,062 28 12: 1,655 29,913 16,790 5,586 32,870 447 433 197 274 ,163 16904 2676 19,580 28 28,285 28,285 108 1,340 29,778 16,790 5,588 32,857 439 470 227 285 ,156 16721 2764 19,485 Mar. 7. 28,433 28,419 14 156 1,339 29,974 16,77: 5,587 32,908 440 401 214 283 ,100 16,987 2497 19,484 14. 28,502 28,463 39 118 1,25229,917 16,724 5,590 33,066 441 461 224 234 ,053 16,751 2597 19,348 21. 28,487 28,415 72 198 1,446 30,176 16,709 5,586 33,048 446 460 219 224 ,02 17,048 2617 19,665 28. 28,679 28,651 28 151 1,248 30,121 16,666 5,587 32,951 433 481 197 318 1,028 16,966 2682 19,648 Apr. 4. 29,150 28,996 154 140 1,029 30,361 16,609 5,591 33,050 433 400 220 351 1,025 17,080 2,583 19,663 29,281 29,134 147 125 1,156 30,603 16,609 5,589 33,27-' 43: 458 252 327 1,030 17,027 2477 19,504 18. 29,030 28,957 73 140 1,412 30,622 16,585 5,584 33,356 425 480 204 364 960 17,002 2684 19,686 25. 29,033 28,882 151 150 1,500 30,722 16,523 5,586 33,244 428 518 209 35. 963 17,115 2,763 19,878 May 2. 29,188 29,093 95 128 1,35 30,704 16,494 5,590 33,133 419 607 213 366 958 17,091 2,777 19,868 9. 29,634 29,467 16' 112 1.245 31,025 16,490 5,594 33,26^ 41 502 224 372 956 17,369 2,48.- 19,852 16. 29,532 29,511 21 129 1,276 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 1,66~ 31,153 16,434 5,593 33,327 41 599 23' 327 1,132 17,138 2,693 19,831 30. 29,560 29,560 15 1,19 30,935 16,434 5.59< 33,33' 418 52- 208 344 1,130 17,007 2,802 19,809 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 BANK RESERVES AND RELATED ITEMS 207 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 ec R u m c a r e h g i e p t a r i n u e s e t e e s r s - - c v D o a a a n u n i d s c n d - - e ts s Float t T a o l - 2 s G to o c ld k T r s o c r e t u i e a u n n u r a n r g c y t s - - d y - - r c C t e c u i i n u o i n l r c a r n - - y - T h c i r u o n e a r l g s a y d h s s - - th w r a a i s n y th - m r F e e s F . e e m o i R r r g v b . - n e e B s r , a O b n a t k h n s e k r i c O F o . a t u c h - R n e t r . s B F W a . i n t k R M h s . e r m e c r C s b a o e u e i e n n r r n r c d v - 3 y e b s an T k otal Averages of daily figures Week ending— 1962 June 6 29.837 29.837 117 1,21131,198 16,434 5,597 33,534 413 474 209 367 1,077 17,155 2,646 19,801 13 29,672 29,672 107 1,304 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 1,779 31,423 16,434 5,604 33,654 400 509 274 337 996 17,291 2,747 20,038 27 29,320 29,233 216 1,668 31,236 16,433 5,600 33,584 396 550 343 266 886 17,244 2,818 20,062 July ,?::::::: 29,884 29,707 177 153 1,498 31,597 16,435 5,600 33,863 391 533 330 290 699 17,527 2,713 20,240 29,962 29,870 92 81 1,627 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 2,039 31,561 16,298 5,601 34,091 388 496 315 298 607 17,265 2,829 20,094 25 29,230 29,230 74 1,968 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 8 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 30,160 145 279 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 92 287 31,433 16,112 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 Sept-,!::::: 30 396 30,269 127 89 400 31,921 16,093 5,550 34,167 392 503 204 293 839 17,165 2,787 19,952 19 29,748 29,748 36 136 31,955 16,067 5,544 34,045 390 579 222 284 774 17,273 2,886 20,159 26 29,340 29,340 152 176 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 ' ,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 ,229 16.067 5,551 34,256 397 480 214 336 717 17 445 2.861 20,306 24 29 931 29,931 67 083 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 91 475 31,491 16,006 5,552 34,042 406 541 207 311 672 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 1,300 31,868 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 32,299 15,978 5,550 34,684 394 464 193 289 ,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 ,023 16,597 3,033 19.630 Dec. 5 30,411 30,223 188 93 1,832 32,373 15,977 5,556 34,860 390 500 207 315 ,068 16,565 2,964 19,529 12 30,698 30,603 95 109 1,75532,629 15,977 5,559 35,226 402 478 207 268 ,068 16,517 3,010 19,527 2 1 6 9 3 3 0 0 , , 4 5 9 1 3 0 ' 3 3 0 0 , , 4 4 8 9 9 3 "ii 3 1 0 6 8 4 2 2, , 8 4 4 4 2 3 3 ~ 3 ~ J 1 7 6 3 3 3 1 15 5 , , 9 9 7 7 8 8 5 5 , , 5 5 6 6 0 4 3 3 5 5, , 4 3 7 6 1 6 3 3 9 9 5 9 6 66 6 5 9 2 2 1 0 0 8 2 2 9 7 5 7 , ,0 0 1 2 1 6 1 16 7 , , 7 2 7 1 1 2 3 3, , 1 1 1 8 3 2 2 1 0 9 , , 3 9 2 5 5 3 1963 Jan. 2 30,598 30,478 120 716 2,684 34,104 15,978 5,568 35,349 399 628 280 319 1,054 17,623 3,456 21,079 9 30,404 30,404 65 2,72833,286 15,978 5,572 35,022 423 711 226 306 991 17,157 3,139 20,296 16 30,227 30,227 80 2,39232,784 15,963 5,563 34,694 412 767 232 298 980 16,927*>3,174*>20,101 23 29,898 29,898 172 2,30732,464 15,928 5,567 34,361 429 823 225 281 960 16,881*3,034^19,915 30,123 29,975 148 101 1,615 3"1,916 15,928 5,571 34,080 432 837 220 297 966 16,583^3,048^19,631 30 End of month 1962 30,454 30,200 254 1,88532,448 15,977 5,557 34,782 381 585 203 305 1,078 16,648'3,346'19,994 Nov 30,820 30,478 342 2,903 33,871 15,978 5,567 35,338 380 597 247 393cl,006 17,454 3,234 20,688 Dec 1963 30,289 30,110 179 87 1,51131,959 ^5,567^34,081 P416 821 197 327 968 16,644*3,284 19,928 Jan Wednesday Dec. 15962 30,285 30,275 191 1,602 32,117 15,978 5,559 35,066 407 359 218 316 1,077 16,211 3,060 19,271 12 30,678 30,651 238 1,696 32,664 15,978 5,560 35,334 405 532 213 261 1,006 16,451 3,432 19,883 19 30,489 30,489 317 2,770 33,643 15,978 5,560 35,437 404 708 207 296 1,017 17,113 3,463 20,576 26 30,634 30,489 145 248 2,56233,529 15,978 5,568 35,572 395 602 229 316 1,093 16,867 3,299 20,166 1963 Jan. 30,478 30,478 2,91333,589 15,978 5,572 35,267 416 694 248 289 993 17,233 3,520 20,753 0,266 30,266 2,200 "32,625 15,978 5,573 34,889 429 813 241 292 989 16,523 3,440 19,963 30,038 30,038 2,175 32,383 15,928 5,565 34,549 425 780 200 287 958 16,677^3,391 20,068 29,863 29,863 650 1,65132,245 15,928 5,568 34,218 438 863 232 276 958 16,756^3,340 20,096 30,306 30,054 252 150 1,178 3"1,713 15,928 5,571 34,080 423 779 219 325 968 16,419"3,340*>19,759 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 Oct. 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

208 BANK RESERVES AND RELATED ITEMS FEBRUARY 1963 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t l a d l qu R i e r - ed Excess B F r i a . o n a n w g t R k - s . s s F e r r r e v e - e e s T h o e t ld al qu R i e r - ed Excess B F r i a o n . a n 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 qu R i e r - ed Excess B F r i o . a n a w n g R t - k s . s s F e r r r e v e - e es 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 7 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1951—Dec 20,310 19,484 826 657 169 5,275 5,231 44 151 -107 ,356 1,353 3 64 -61 1952—Dec 21,180 20,457 723 1,593 -870 5,357 5,328 30 486 -456 ,406 1,409 -4 232 -236 1953—Dec 19,920 19,227 693 441 252 4,762 4,748 14 115 -101 ,295 1,295 1 37 -36 1954_Dec 19,279 18,576 703 246 457 4,508 4,497 12 62 -50 ,210 1,210 -1 15 -16 1955—Dec 19,240 18,646 594 839 -245 4,432 4,397 35 197 -162 ,166 1,164 2 85 -83 1956—Dec 19,535 18,883 652 688 -36 4,448 4,392 57 147 -91 ,149 1,138 12 97 -86 1957—Dec 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 ,136 1,127 8 85 -77 1958—Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 ,077 1,070 7 39 -31 1959—Dec 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 ,038 1,038 104 -104 1960—Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 -4 1961—Dec 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 -22 1962—Jan 20,089'19,464 '625 70 '555 3,811 3,763 48 7 41 987 982 5 Feb 19,571 19,069 502 68 434 3,680 3,664 17 6 11 955 954 1 -3 Mar '19,550 19,077 '473 91 '382 3,693 3,705 -12 12 -24 964 949 15 -6 Apr 19,723 19,213 510 69 441 3,752 3,692 60 10 50 940 953 -13 -20 May 19,823 19,320 '503 63 '440 3,724 3,713 11 10 990 983 7 3 June 19,924'19,433 '491 100 '391 3,781 3,774 7 19 -12 976 977 -1 -3 July '20,043 19,514 '529 89 '440 3,766 3,732 34 16 18 1,000 989 10 6 Aug '19,924 19,358 '566 127 '439 3,709 3,684 24 17 7 1,017 1,013 4 -14 Sept 20,034'19,579 '455 80 '375 3,718 3,723 -4 15 -19 1,021 1,022 -1 -10 Oct 20,205 19,721 484 65 419 3,774 3,736 38 4 34 1,036 1 ,032 5 Nov 19.601 19,012 589 119 470 3,627 3,601 27 14 13 1,007 1 ,001 6 -7 Dec 20,037 19,468 569 304 265 3,863 3,817 46 108 -62 1,042 1,035 7 -11 1963—Jan ^20,041^19,574 ^467 99 ^368 *>3,857 *>3,840 P18 P1,O38 i,037 p-6 Week ending 1962- Jan. 20,802 20,076 726 341 385 4,00: 4,003 -1 179 -180 1,026 1,025 34 -34 20,292 19,682 610 64 546 3,88' 3,823 64 64 1,003 998 5 5 20,056 19,452 604 69 535 3,733 3,730 3 "*2 1 973 976 —4 -12 19,972 19,271 701 44 65 3,747 3,688 59 59 976 964 11 10 19,758 19,227 531 60 471 3,745 3,709 36 36 97 971 1 -3 Aug. 19,838 19,404 434 70 364 3,768 3,753 15 15 ,024 1,016 5 19,815 19,325 490 156 334 3,706 3,704 -15 ,012 1,010 2 -16 19,813 19,216 597 130 46' 3,667 3,630 37 29 997 999 -2 -25 20,010 19,468 542 156 386 3,716 3,704 12 -27 ,026 1,022 4 -22 19,914 19,379 535 73 46: 3,691 3,677 15 7 ,024 1,019 5 -5 Sept. 5. 19,839 19,418 421 94 327 3,697 3,689 ,024 1,021 3 -7 12. 19,952 19,427 525 77 448 3,676 3,664 12 -3 ,015 1,009 6 -3 19. 20,159 19,643 516 25 491 3,777 3,749 28 28 ,024 1,026 -5 26. 20,191 19,687 504 141 363 3,751 3,744 8 -29 ,031 1,025 6 -12 Oct. 3. 20,174 19,728 446 63 383 3,810 3,785 25 19 ,037 1,032 5 4 10. 20,333 19,854 479 44 435 3,779 3,764 15 15 ,042 1,040 C2 c-7 17. 20,306 19,821 485 71 414 3,721 3,729 -8 -22 ,035 1,035 -9 24. 20,358 19,853 505 56 449 3,772 3,755 18 15 ,041 1,042 -2 31. 19,807 19,353 454 79 375 3,735 3,675 61 61 ,014 1,009 Nov. 7. 19,559 19,010 549 158 391 3,667 3,655 12 -6 ,017 1,012 -35 14. 19,417 18,846 571 144 427 3,561 3,541 20 11 977 974 -13 21. 19,685 19,078 607 93 514 3,598 3,593 5 -27 ,014 1,008 5 28. 19,630 19,080 550 95 455 3,658 3,598 60 60 ,014 1,008 6 Dec. 5. 19,529 19,149 380 92 288 3,658 3,678 -20 11 -31 ,011 1,011 -2 12. 19,527 19,081 446 107 339 3,708 3,669 39 34 998 991 7 3 19. 19,953 19,438 515 163 352 3,840 3,826 14 39 -25 ,032 1,034 2 -4 26. 20,325 19,764 561 307 254 3,971 3,92" 49 126 -7 ,07'' 1,065 5 9 1963—Jan. 21,079 20,045 1,034 714 320 4,180 4,030 149 299 -150 ,102 1,09! 10 -55 20,296 19,858 438 63 375 3,973 3,934 39 39 ,063 1,056 7 6 2>20,!01*>19,578 »523 79 P444 3,81i 3,818 -8 ,028 1,029 -12 ^ *1 1 9 9 , , 6 9 3 1 1 5^ *> 1 1 9 9 , , 4 2 3 6 0 7 * P > 3 4 6 8 4 5 1 9 7 9 0 *> 3 3 ,8 ,7 1 5 ^ 3 3 , , 7 7 9 46 3 no n. , 0 o 3 r 0 ^1 1 , ,0 0 2 20 5 P - - 3 8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 BANK RESERVES AND RELATED ITEMS 209 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 ld al Required Excess B F. a n R k . s reserves T h o e t ld al Required Excess B F a . n R k . s reserves 1929—June 761 749 12 409 -397 632 610 22 327 -305 1 19 9 3 3 3 9 — _D ju e n c e 3 1 6 4 48 0 1,9 5 5 2 3 8 1,1 1 8 2 8 0 58 1,18 6 8 2 1 4 5 4 6 1 8 8 3 9 4 7 4 67 9 1 6 126 3 - 6 3 6 0 8 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—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 '6 462 r5l8 26 '492 Feb 8,094 8,047 47 25 22 6,842 6,405 437 33 404 Mar 8,106 8,065 41 26 15 '6,787 6,358 '"429 32 '397 Apr 8,195 8.158 37 28 9 6,836 6,410 425 24 401 May '8,234 8J74 '60 21 '39 '6,875 6,449 '425 37 '388 June 8,270 '8,209 '61 45 '16 6,896 6,473 423 34 389 July '8,306 8,266 r40 40 6 972 6,526 445 29 416 Aug '8,182 8,129 r52 47 '5 7,017 6,531 486 45 441 Sept '8,189 8,166 '23 26 '-3 '7,106 '6,668 438 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 6,975 6,459 515 32 483 Dec 8,178 8,100 78 130 -52 6,953 6,515 439 48 391 1963—Jan ^8,106 P\0 60 "-50 ^7,029 ^6,590 M39 27 Week ending— 1962—Jan. 3 8,576 8,526 50 107 -57 7,197 6,522 676 21 655 10 8,431 8,356 75 35 40 6,971 6,505 466 29 437 17 8,307 8,266 41 40 7,043 6,480 564 18 546 24 . . 8,276 8,172 103 15 88 6,973 6,446 527 28 499 31 8,163 8,119 44 23 21 6,878 6,428 450 33 417 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 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 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 8 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 C511 21 C556 28 8,022 7,969 53 64 -11 6,936 6,504 432 31 401 Dec. 5 8,005 7,987 18 40 -22 6,855 6,473 382 39 '343 12 . . 7,992 7,952 40 47 -6 6,829 6,469 359 51 308 19 8,105 8,073 31 80 -49 6,978 6,505 472 41 431 26 8,275 8,225 51 116 -65 7,004 6,552 452 61 391 1963—Jan. 2 8.455 8,318 137 315 -178 7,342 6,605 737 35 702 9 . 8,301 8,248 53 34 19 6,958 6,620 338 27 311 16 8 151 8,131 20 48 -28 "7,106 ^6,600 13 P493 23 8 077 8 036 41 U5 — 74 *>6 996 ?6 577 H20 33 30 *>7,948 53 *>6,877 38 r>286 1 This total excludes, and that in the preceding table includes, $51 Nov. 1959; thereafter on closing figures for balances with F. R. Banks million in balances of unlicensed banks. and opening figures for allowable cash; see also note 3 to preceding table. Required reserves: Based on deposits as of opening of business each NOTE.—Averages of daily figures. Beginning with Oct. 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

210 DISCOUNT RATES FEBRUARY 1963 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 13 3 Federal Reserve Bank Sees. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Jan. 31 date rate Jan, 31 date Jan. 31 date rate f Boston Aug. 23,1960 Aug. 23, 1960 Aug.23, 1960 New York... Aug. 12,1960 Aug. 12, 1960 June10, 1960 Philadelphia.. Aug. 19,1960 Aug. 19, 1960 Aug.19, 1960 Cleveland.... Aug. 12,1960 Aug. 12, 1960 Aug.12, 1960 5 Richmond.. . Aug. 12,1960 Aug. 12, 1960 Aug.12, 1960 4% Atlanta Aug. 16,1960 Aug. 16, 1960 Aug.16,1960 Chicago Aug. 19,1960 Aug. 19, 1960 June 10, 1960 5 St. Louis Aug. 19,1960 Aug. 19, 1960 Aug.19,1960 4j/ 2 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 ail F. R. of date ' all F. R. of date all F. R. of Banks N. Y. Banks N. Y. Banks N. Y. In effect Dec. 31, 1932 21/2 1950 1957—Cont. Aug. 21 Nov. 15 1933 Dec. 2 Mar. 3 4 31/2 1953 1958 Apr. 7 Jan. 16 Jan. 22 May 26 23 24 Oct. 20 Mar. 7 1954 13 1934 Feb. 5 21 Feb. 2 18 15 Apr. 18 Mar. 16 Apr. 14 May 9 16 Aug. 15 1935 May 21 J M an ay . 1 1 1 4 H 1 / % 2 Apr. 14 1955 m\ * O * ct • . % 2 : 4 : : : : : :: 1937 15 Nov. 7 Aug. 27 1 May 2 1959 Sept. 4 1 Aug. 4 Mar. 6 U.Y.V. 16 1942 May 29 Apr. 11 Sept- il::::: June 12 Oct. 15 Sept. 11 30 Nov. 18 18 23 1946 1956 1960 Apr. 25 'V Apr. 13 June 3 4 May 10 20 10 31/2 Aug. 24 14 f 1948 Aug. 12 3 Jan. 12 1 TJ 18 Sept. 9 19 1957 Aug. 13 Aug. 9 3 -3% 1963 23 11/2 23 3% In effect Jan. 31. 11/2 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

FEBRUARY 1963 RESERVE REQUIREMENTS 211 MAXIMUM INTEREST RATES PAYABLE ON TIME AND RESERVE REQUIREMENTS OF MEMBER BANKS SAVINGS DEPOSITS (Per cent of deposits) (Per cent per annum) Net demand deposits2 Time deposits Effective date Time deposit Central Jan. 1 Jan. 1 Jan. 1 Effective date1 Central Reserve Coun- reserve Coun- 1936 1957 1962 b re a c s n i e t k r y v s e 3 b c a i n ty ks ba tr n y ks re a c s i n e t r d y ve ba tr n y ks Savings deposits held for: banks Less than 1 year 3 { k In effect Dec. 31, 1948.. 26 22 16 7% 71/2 Postal savings deposits held for: L 1 e y s e s a t r h a o n r m 1 o y r e e ar }2 Vt 3 { k 1949— J M un a e y 30 1 , , 5 July 1.. 24 2 2 0 1 1 1 5 4 7 6 7 6 Aug. 1,11 g* 13 5 Other time deposits payable in:1 Aug. 16, 18 12 5 6 1 m ye o a n r t h o s r - 1 m o y r e e ar } 2* 3 A Se u p g t . . 25 1 i* 11* 9 L 0 e s d s a t y h s a - n 6 m 90 o d n a th y s s 1 2% 1 19 9 5 5 3 1 — — J J J a u a n n ly . 1 2 1 1 5 , , , 1 9 F 6 eb. 1. 2 2 3 4 2 1 0 9 1 1 1 3 4 3 6 6 1 For exceptions see Oct. 1962 BULL., p. 1279. 1954— J J u u l n y e 2 1 9 6 , ,2 A 4 ug. 1. 2 2 2 2 1 0 1 1 9 8 12 5 5 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* 171/2 Under this Regulation the rate payable by a member bank may not in Mar. 20, Apr. 1.. 17 any event exceed the maximum rate payable by State banks or trust com- Apr. 17 11* 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 16% 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 Feb. 1, 1963... 16% 12 4 4 MARGIN REQUIREMENTS (Per cent of market value) Present legal requirement: Minimum 10 7 3 3 Maximum 422 14 6 6 Effective date Regulation 1 When two dates are shown, first-of-month or midmonth dates record Oct. 16, July 28, July 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 dealers on listed securities 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 For loans by banks on stocks 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 2l/i 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 All Country All Country Item m b e a m n b k e s r Y N o ew rk C o it f y Other banks Item m b e a m nk b s er Y N o e r w k C o it f y Other banks City Chicago City Chicago Four weeks ending Dec. 12, 1962 Four weeks ending Jan. 9, 1963 Gross demand : Gross demand: Total 131,522 25,138 6,390 50,498 49,497 Total 137,309 21,411 6,758 52,646 50,427 Interbank 14,731 4,218 1,301 7,414 1,797 Interbank 15,504 4,536 1,335 7,748 1,886 U. S. Govt 5,280 1,013 287 1,951 2,030 U. S. Govt 5,325 1,186 336 2,029 1,774 Other (11,512 19,907 4,802 41,133 45,670 Other 116,479 21,756 5.087 42,869 46,767 Net demand 1 108,194 19,867 5,371 41,018 41,938 Net demand 1 12,126 21,536 5,695 42,361 42,534 Time 78,310 8,914 2,962 30,148 36,286 Time 79,737 9,367 3,049 30,663 36,65S Demand balances due Demand balances due from domestic banks. . 7,500 159 99 2,003 5,239 from domestic banks. 7,918 158 104 2,189 5,468 Currency and coin 2,977 248 41 915 1,773 Currency and coin 3,223 278 45 994 1,906 Balances with F. R. Balances with F. R. Banks 16,615 3,407 968 7,091 5,149 Banks 17,190 3,713 1,023 7,290 5,164 Total reserves held 19,592 3,655 1,009 8,006 6,922 Total reserves held 20,413 3,991 1,068 8,284 7,070 Required 19,097 3,635 1,005 7,974 6,484 Required 19,776 3,928 1,062 8,216 6,570 Excess 495 20 4 32 438 Excess 637 63 6 68 500 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

212 FEDERAL RESERVE BANKS FEBRUARY 1963 CONSOLIDATED STATEMENT OF CONDITION (In millions of dollars) Wednesday End of month Item 1963 1963 1962 Jan.30 Jan. 23 Jan. 16 Jan. 9 Jan. 2 Jan. Dec. Jan. Assets 14,385 14,363 14.363 14,415 14,430 14,385 14,430 15 388 1,275 1,276 1,279 1,277 1,266 1,275 1,266 1,154 15,660 15,639 15,642 15,692 15,696 15,660 15,696 16,542 Cash 437 418 371 323 282 449 288 483 Discounts and advances: 150 649 87 74 86 87 37 79 Other 1 1 1 1 1 50 59 59 59 59 54 62 52 45 Held under repurchase agreement 20 22 23 25 57 10 58 U. S. Govt. securities: Boupht outright: Bills 2,053 1.862 2,017 2,230 2,442 2 109 2 442 3 032 Certificates Special Other 13,182 n 182 13,182 13,182 13.182 13,182 13,182 1 680 Notes . .. 10,682 10,682 10,702 10,717 10,717 10,682 10 717 20 008 4,137 4,137 4,137 4,137 4,137 4,137 4,137 3,812 Total bought outright 30,054 29.863 30,038 30,266 30,478 30,110 30,478 28,532 Held under repurchase agreement 252 179 342 Total U. S. Govt. securities 30,306 29,863 30,038 30,266 30,478 30,289 30,820 28,532 30,535 30 594 30,208 30,425 30,676 30,448 30,968 28,706 Cash items in process of collection 4,806 5,570 6,562 5,971 6,908 4,846 6,518 4,405 Bank premises 104 105 104 104 104 104 104 111 Other assets: Denominated in foreign currencies 115 120 120 95 91 110 81 * All other 361 341 326 305 284 367 276 317 Total assets 52,018 52 787 53,333 52,915 54,041 51,984 53,931 50,564 Liabilities F. R. notes 29,100 ?9 217 29,494 29,782 30,110 29,111 30,151 27 844 Deposits: 16 419 16 756 16,677 16,523 17,233 16,644 17,454 16 872 U. S Treasurer—General account 779 863 780 813 694 821 597 362 219 232 200 241 248 197 247 229 Other 325 276 287 292 289 327 424 286 Total deposits 17,742 18 127 17,944 17,869 18,464 17,989 18,722 17,749 Deferred availability cash items .. 3,628 3919 4,387 3,771 3,995 3,335 3,584 3,499 Other liabilities and accrued dividends * 70 64 67 67 65 68 73 69 Total liabilities 50 540 51 327 51,892 51,489 52,634 50,503 52,530 49,161 Capital Accounts Capital paid in 471 470 470 470 469 471 467 448 934 934 934 934 934 934 934 888 Other capital accounts 73 56 37 22 4 76 67 Total liabilities and capital accounts 52 018 52 787 53,333 52,915 54,041 51,984 53,931 50,564 Contingent liability on acceptances purchased for 84 84 84 85 86 84 86 120 U. S. Govt. securities held in custody for foreign 7,107 7 143 7,138 6,977 6,955 7,033 6,990 5,403 Federal Reserve Notes—Federal Reserve Agents' Accounts F. R. notes outstanding (issued to Bank). . 31,627 31,757 31,891 31,996 32,10? 31,595 32,117 30,077 Collateral held against notes outstanding: Gold certificate account 7,517 7,576 7,598 7,617 7,699 7,517 7,643 8,309 Eligible paper 55 174 27 21 43 24 16 26 U. S. Govt. securities 25,231 25,172 25,152 25,163 25,124 25,231 25,179 23,105 Total collateral. 32,803 32,922 32,777 32,801 32,866 32,772 32,838 31,440 i No accrued dividends at end-of-December dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FEDERAL RESERVE BANKS 213 STATEMENT OF CONDITION OF EACH BANK ON JANUARY 31, 1963 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C 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 i a t n s y - Dallas F c S i r s a a c n n o - Assets 14,385 719 3,759 782 1,124 991 766 2,438 588 329 637 622 1,630 Redemption fund for F. R. notes.... 1,275 73 301 75 111 100 76 230 53 28 51 39 138 Total gold certificate reserves 15,660 792 4,060 857 1,235 1,091 842 2,668 641 357 688 661 1,768 735 63 145 77 59 49 76 63 22 38 19 39 85 Other cash 449 36 70 26 39 36 36 74 21 12 15 16 68 Discounts and advances: Secured by U. S. Govt. securities... 87 5 15 5 2 3 4 34 * 1 16 1 1 Other Acceptances: Bought outright 62 62 Held under repurchase agreement.. 10 10 U. S. Govt. securities: 30,110 1,528 7,436 1,659 2,531 1,983 1,645 5,098 1,203 620 1,313 1,224 3,870 Held under repurchase agreement.. 179 179 30,448 1,533 7,702 1,664 2,533 1,986 1,649 5,132 1,203 621 1,329 1,225 3,871 Cash items in process of collection... 5,999 424 1,153 356 519 436 431 1,015 277 163 301 269 655 104 3 8 3 7 5 13 24 6 4 7 13 11 Other assets: Denominated in foreign currencies. 110 5 130 6 10 5 6 15 4 3 5 6 15 All other 367 19 89 21 32 25 20 62 14 8 16 15 46 Total assets 53,872 2,875 13,257 3,010 4,434 3,633 3,073 9,053 2,188 1,206 2,380 2,244 6,519 Liabilities F. R. notes 29,846 1,752 7,071 1,814 2,604 2,446 1,721 5,415 1,264 566 1,196 882 3,115 Deposits: Member bank reserves 16,644 620 4,506 765 1,256 729 892 2,518 612 430 834 1,011 2,471 U. S. Treasurer—General account.. 821 63 139 55 37 64 36 103 50 40 52 61 121 197 9 2 60 11 17 9 10 27 6 4 8 11 25 Other 327 * 264 1 2 4 1 1 * 1 2 * 51 Total deposits 17,989 692 4,969 832 1,312 806 939 2,649 668 475 896 1,083 2,668 4,488 358 802 275 376 306 329 766 202 129 222 193 530 Other liabilities and accrued dividends. 68 3 18 4 5 4 3 11 3 2 3 3 9 Total liabilities 52,391 2,805 12,860 2,925 4,297 3,562 2,992 8,841 2,137 1,172 2,317 2,161 6,322 Capital Accounts Capital paid in 471 22 127 27 44 22 26 66 16 11 20 27 63 934 44 251 54 87 44 51 132 32 22 40 53 124 Other capital accounts 76 4 19 4 6 5 4 14 3 1 3 3 10 Total liabilities and capital accounts.. 53,872 2,875 13,257 3,010 4,434 3,633 3,073 9,053 2,188 1,206 2,380 2,244 6,519 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (per cent): Jan. 31 1963 32 7 32.4 33.7 32.4 31.5 33.5 31.7 33.1 33.2 34.3 32.9 33.6 30 6 Dec 31 1962 31.8 35.9 30.0 36.1 34.5 29.8 31.3 31.0 31.6 37.1 32.4 30.1 31.9 Jan. 31 1962 35.7 39.9 37.6 33.2 35.4 36.6 32.9 36.5 33.4 35.4 31.8 32.6 34 5 Contingent liability on acceptances purchased for foreign correspondents ... ... .. .... 84 4 3 23 5 8 4 5 12 3 2 3 4 11 Federal Reserve Notes—Federal Reserve Agent's Accounts F. R. notes outstanding (issued to Bank) 31,595 1,8V7 7,444 1,901 ? 8?? ?,608 1,817 ,654 1 338 664 1?3F 950 Collateral held against notes outstanding: 7,517 443 1,600 465 670 704 450 1,400 350 130 ?90 215 800 Elisible oaoer • • • * 24 s * 16 25,231 1,404 6,000 1,500 2,250 1,927 I,450 4,500 1,050 550 1,000 800 2,800 Total collateral 32,772 1,847 7,600 1,970 2,920 2,634 1,900 5,900 1,400 680 1,306 1,015 3,600 1 After deducting $80 million participations of other F. R. Banks. 3 After deducting $61 million participations of other F. R. Banks. 2 After deducting $137 million participations of other F. R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BANKS; BANK DEBITS FEBRUARY 1963 MATURITY DISTRIBUTION OF LOANS AND U. S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1963 1963 1962 Jan. 30 Jan. 23 Jan. 16 Jan. 9 Jan. 2 Jan. Dec. Jan. Discounts and advances—Total. 150 650 75 87 87 38 129 Within 15 days 148 648 87 72 84 85 35 78 16 days to 90 days 2 2 1 3 3 2 3 51 91 days to 1 year Acceptances—Total.. 79 81 82 84 111 72 110 45 Within 15 days.... 37 38 35 36 71 27 70 8 16 days to 90 days. 42 43 47 48 40 45 40 37 U. S. Government securities—Total.. 30,306 29,863 30,038 30,266 30,478 30,289 30,820 28,532 Within 15 days i 511 370 356 410 411 4,154 665 5,500 16 days to 90 days 5,021 4,811 4,958 4,998 5,164 1,256 5,252 1,408 91 days to 1 year 11,756 11,664 11,686 11,805 11,850 11,861 11,850 10,380 Over 1 year to 5 years 10,773 10,773 10,793 10,808 10,808 10,773 10,808 8,751 Over 5 years to 10 years 2,094 2,094 2,094 2,094 2,094 2,094 2,094 2,227 Over 10 years 151 151 151 151 151 151 151 266 i 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 e a rm rk a s n Ita li l r i e an g N u l e a i t n l h d d e e s r r - s f S ra w n i c ss s 1962—Apr.. 84 50 32 1 1 May. 134 50 50 32 1 1 June. 439 50 50 250 50 27 11 1 July. 418 50 50 250 50 16 1 1 Aug. 317 40 250 1 16 5 5 Sept. 350 50 251 1 31 15 Oct.. 214 40 127 1 31 10 5 BANK DEBITS AND DEPOSIT TURNOVER Debitsto demand deposit accounts l Annual rate of turnover (billions of dollars) of demand deposits l All Leadingcenters 337 other Leading centers 337 other Period 343 reporting reporting reporting 4 centers New York 6others 2 centers 3 New York 6 others 2 centers 3 N.S.A. S.A ]N.S.A. S.A N.S.A. S.A. N.S.A. S.A N.S.A. S.A. N.S.A. S.A. N.S.A. S.A N.S.A. 1955. 2,043.5 766.9 431.7 845.0 42.7 27 3 20.4 22.3 1956. 2,200.6 815.9 462.9 921.9 45.8 28 8 21.8 23.7 1957. 2,356.8 888.5 489.3 979.0 49.5 30.4 23.0 25.1 1958. 2,439.8 958.7 487.4 993.6 53.6 300 22.9 24.9 1959. 2,679.2 1,023.6 545.3 1,110.3 56.4 32 5 24.5 26.7 1960. 2,838.8 1,102.9 577.6 1,158.3 60.0 34 8 25.7 28.2 1961. 3,111.1 1,278.8 622.7 1,209.6 70.0 369 26.2 29.0 1962. 3,436.4 1,415.8 701.7 1,318.9 77.8 41 2 27.7 31.3 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 31.0 31.0 Feb '239.4 103.3 94.3 54.4 49.0 105.4 96.1 68.1 64.6 38.4 36 3 27 1 25.9 30.2 28.7 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 31.0 31.7 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 31.6 31.3 May.... '295.4 119.1 122.1 57.6 59.8 110.3 '113.5 78.8 79.0 40.8 41 5 28 0 28.4 31.7 31.9 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 31.6 32.5 July 279 7 114.4 111.4 59.0 57.5 '112.2 110.7 77.3 76.1 42.1 41 2 28 6 28.5 31.9 31.9 Aug '281 0 115.8 110.8 57.4 57.5 110.7 '112.7 78.8 74.3 41.1 399 28 3 27.9 31.8 31.0 Sept 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 31.1 30.9 Oct 3074 124.5 127.5 61.0 62.8 112.4 117.2 829 82.3 43.7 43 0 28 5 28.5 32.5 32.3 Nov 288 2 122.2 116.5 61.1 59.4 113.1 112.3 80.7 80.4 43.5 42 9 28 5 28.9 32.5 32.6 Dec 3209 134.2 141.6 60.9 63.7 rlll.3 115.6 889 93.7 43.4 44.4 27 7 28.5 31.3 32.6 1963—Jan 325 9 128.1 137.2 62.8 66.3 116.3 122.4 83 7 84.5 >44.1 ,43.7 ,28 8 ,28.7 ,32.6 i>32.6 1 Excludes interbank and U. S. Govt. demand accounts or deposits. 3 Before Apr. 1955, 338 centers. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco, and Los 4 Before Apr. 1955, 344 centers. Angeles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 U. S. CURRENCY 215 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28 868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5 070 428 782 5 17 1950 27,741 19,305 1,554 1.113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 ,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 I960 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—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 1,512 94 2,214 6,814 11,021 9,542 2,868 6,134 239 294 3 5 Aug 33,932 24 364 2,687 1,502 93 2,210 6,832 11,040 9,568 2 870 6 163 237 291 3 5 Sept 33,893 24,305 2,701 1,518 93 2,211 6,801 10,980 9,588 2,864 6,188 237 291 3 5 Oct . 34,109 24,440 2,727 1,542 94 2,228 6,819 11,031 9,669 2,882 6,254 237 289 3 5 Nov 34,782 24,991 2,756 1,570 94 2,294 7,009 11,268 9,791 2,924 6,333 237 289 3 4 Dec 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 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 circulition 1 Total out- Held by standing As security For F. R. Kind of currency Dec. 31, against F. R. Banks 1962 go s l i d lv e a r nd Tr c e a a s s h ury B a a n n d ks A a g n e d nts De 1 c 9 . 6 3 2 1, No 1 v 9 . 6 2 30, De 1 c 9 . 6 3 1 1, certificates Agents Gold 15,978 (15,696) 2 282 Gold certificates (15,696) 3 12,880 2,816 F R notes . . . ... ... 32 119 71 1 964 30 084 29 594 28 694 Treasury currency—Total 5,567 (2,215) 27 287 5,254 5,188 5,224 Standard silver dollars 487 76 18 8 385 378 346 Silver bullion 2,139 2,139 Silver certificates (2,215) 229 1,986 1,942 2 090 Subsidiary silver coin 1,759 3 17 1 739 1 726 1 622 Minor coin 663 1 4 658 652 614 United States notes 347 4 28 315 318 314 In process of retirement 4 173 * 172 172 238 Total Dec. 31 1962 5 53,665 (17,912) 380 12,880 5,066 35,338 Nov 30 1962 5 53.055 (17,928) 381 12,890 5,002 34,782 Dec. 31 1961 5 53,067 (18,952) 422 13,799 4,928 33,918 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. 207. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $156 million reserve against United States notes. are shown in parentheses. 3 Consists of credits payable in gold certificates: (1) the Gold Certificate Fund—Board of Governors, F.R.S., and (2) the Redemption Fund for NOTE.—Condensed from Circulation Statement of United States F.R. notes Money issued by the Treasury. For explanation of currency reserves and 4 Redeemable from the general fund of the Treasury. 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 Adjutment Act, to have been destroyed or lost. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 MONEY SUPPLY FEBRUARY 1963 MONEY SUPPLY AND RELATED DATA (In billions of dollars) Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U. S. deposits deposits Govt. Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d ed - 1 Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d e - d1 d d e e p m o a si n t d s1 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 A 30.2 119.2 81.8 4.9 1962—Dec 147.9 30.6 117.3 97.5 151.6 31.2 120.4 96.6 5.6 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 Apr 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 Aug 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 146.9 30.5 116.4 96.0 148.2 30.8 117.5 95.4 6.0 147.9 30.6 117.3 97.5 151.6 31.2 120.4 96.6 5.6 Dec 148.5 30.7 117.9 99.1 151.6 30.5 121.1 98.4 4.8 1963—Jan.p... Half month 146.1 30.3 115.8 94.3 145.7 30.6 115.2 94.7 8.2 1962—Oct. 1 146.2 30.3 115.9 95.0 147.2 30.3 117.0 95.2 6.5 2 Nov. 1 146.7 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 Dec. 1 147.5 30.6 116.9 97.0 150.5 31.2 119.4 96.1 5.0 2 148.3 30.5 117.8 97.9 152.6 31.2 121.4 97.0 6.1 1963—Jan. 1 149.3 30.7 118.7 98.6 152.8 30.8 122.0 98.0 5.4 147.8 30.7 117.1 99.6 150.5 30.3 120.2 4.1 2 Not seasonally adjusted Not seasonally adjusted Money supply Money supply en W di e n e g k — Total C c u o n r m 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 e T p s a i t o d m e s - d e i t i s d d e G e U p m o o .S s a v i . n t t . s d i en W di e n e g k — Total C c u o n r m e re n p n t o c - y D c d o e e n m m p e o n p a s t n o i d t - d ju e T p s a i t o d m e s - d e i t i s d d e G e U p m o o .S v a si . n t t . d sx 1961—Oct. 4.. 142.6 29.2 113.3 81.3 8.1 1962—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. 5. 149.1 30.9 118.1 95.8 6.3 13., 148.8 30.2 118.7 81.7 3.5 12. 150.7 31.2 119.5 96.2 4.5 20., 150.7 30.2 120.5 81.7 4.1 19. 152.6 31.2 121.4 96.6 4.5 27., 149.5 30.4 119.1 81.9 6.1 26. 152.2 31.4 120.8 96.9 6.4 1962—Jan. 3. 152.1 30.0 122.2 82.3 6.0 1963—Jan. 153.4 30.9 122.6 97.5 6.8 10. 149.7 29.9 119.7 82.8 4.6 152.4 31.0 121.5 97.8 6.0 17., 149.5 29.6 119.9 83.5 3.1 152.7 30.6 122.1 98.3 4.2 24. 148.1 29.3 118.8 83.9 2.9 151.5 30.4 121.1 98.7 4.2 31. 147 A 29.0 118.3 84.3 3.8 149.2 30.1 119.1 99.0 4.1 Feb. 7. 146.9 29.4 117.6 84.8 4.7 Feb. 6. 14. 146.3 29.5 116.9 85.3 3.7 13. 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

FEBRUARY 1963 BANKS AND THE MONETARY SYSTEM 217 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Date Gold T s r t c o e r u i a u n u n e r n r a g t c y d - - s y - - Total Lo n a e n t s, Tota U l . S. G m C o a e o v r n c m e d i r a - n l men R F t e e d s s e e e r c r v a u e l ritie O s ther O s r e i t t c h i u e e s - r c l T n a i i a a n p t o e n i b e i t e t t d t a i s - a l l - l, c d u T e r a p o r n o e t d s a n i l c ts y C c m o a a n a u p n i c e n s i d - t c t t a . s, l savings Banks banks 1929—June 29. 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30. 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30. 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31. 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—Dec. 31. 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947—Dec. 31. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,384 14,624 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—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 July 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. 31* 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 5,600 301,700 164,900 102,200 71,500 30,100 700 34,500 323,200 292,800 30,400 Dec. 26* 16,000 5,600 307,800 169,600 103,300 72,000 30,600 600 35,000 329,400 300,400 29,000 1963—Jan. 30*> 16,000 5,600 305,100 166,800 103,000 72,100 30,300 600 35,200 326,600 296,600 30,100 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted * Not seasonally adjusted Time 3 u. s Government Date 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 Sys- cash cial F.R. banks ad- banks ad- banks banks * 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 9 621 1 186 264 852 35 1939—Dec. 30 36,194 6,401 29,793 27,059 15,258 10,523 1,278 1,217 2,409 846 634 1941—Dec 31 48 607 9 615 38,992 27,729 15,884 10,532 1,313 ,498 2,215 1 895 867 I945—Dec. 31 102,341 26,490 75,851 48,452 30,135 15,385 2,932 > 141 2,287 24,608 977 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 ,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 1,518 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 J,203 391 5,319 504 1960—Dec. 31.... 139,200 28,200 111,000 144.458 29,356 115,102 108,468 71,380 36,318 770 5,184 377 6,193 485 1961—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*... 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 ,200 400 6,600 500 Nov. 28*... 145,700 29,600 116,100 147,600 30,100 117,500 136,800 95,300 41,000 500 ,200 400 6,200 600 Dec. 26*... 147,300 29,500 117,800 152,400 30,700 121,700 138,600 96,700 41,400 500 ,400 400 7,000 600 1963—Jan. 30*... 146,600 30.000 116,600 148,600 29,600 119,000 141,100 98,800 41,700 500 1,300 400 4,500 800 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 $1,900 million ($l,5C0 million to time and $400 million to demand deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 COMMERCIAL AND MUTUAL SAVINGS BANKS FEBRUARY 1963 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 te ank Total Loans U S .S ec . urities a C ss a e s t h s i c b T a i a l l p o i i n a t t i - d t i a e a l s l Total1 D In e t - erbank1 Dema O nd ther r B in o o w g r s - - c c T a o a o p u c t i - n a ta t l s l b N a b u o n e m f r ks - Govt. Other co a u c n - ts2 mand Time U.S. Time* Govt. Other AD banks: 1941—Dec. 31.. 61,126 26,615 25,511 8,99927,344 90,908 81,816 10,982 44,355 26,479 23 8,41414,826 1945—Dec. 31.. 40,227 30,362101,288 8,557777 3355,415 177,332 165,612 14,065 105 935 45.613 22710; 542 14,553 1947—Dec. 31 <. 134,924 43,002 81,19910,,7._23_ 38,388 175,091 161,865 12,793 2401,346 94,381 53,105 66 11,948"14,714 1960—Dec. 31... 238,623 44,764 67,224422: 2.6..,.6.1.7 53,022 298,126 266,196 17,080 1,800 5,949133,408107,959 167 24,53913,986 1961—June 30.. 242,192 46,164 68,104 27,923 46457 295,567 262.547 13,633 462 6,368 125,219116,865 452 25,40513,977 Dec. 30.. 256,700 54,318 72,715 29,667 57368 321,394 287,176 17,914 482 5,952141,979120,848 482 26.22713,946 1962—Apr. 25.. 259,680156,920 70,950 31,810 46.190 312940 276,440 13,730 520 3,920 130,180 128,090 2,360 26560 13,920 May 30.. 260,500158,050 70,680 31,770 46 i210 313 720 276. ,~9"70 3,200 520 7,170 126;370129,710 2,070 26780 13,926 June 30.. 263,542160,123 70,722 32,697 49:612320,638 285,18614,400 526 9,559 128845131,855 796 2703613,934 July 25.. 263,570 159,920 70,460 33,190 45,440 316 279 680 13,830 520 5,530 127,510132,290 1,930 26880 13,931 Aug. 29*. 265,700 61,980 70,160 33,560 45480 318 280 310 13,840 510 7,450 124960133,550 2,750 27100 13,932 Sept. 26*. 269,080164,640 70,560 33,880 47.480 323, 286,170 14,530 510 8,090 128 160 134.880 2,610 27,"~ 13,928 Oct. 31". 272,380166,480 71,600 3430050560 330; 292.250 15,260 510 6,330 134 136,120 2,780 27, 13,925 Nov. 28*. 273,310167,240 71,530 34.540 48280 328. 290;500 15,190 520 5,990 136,510 2,500 27; 13,938 1963— D Ja e n c. . 2 3 6 0 * * . . 2 2 7 7 9 6 , , 4 6 4 0 0 01 1 6 7 9 2 , ,4 2 8 7 0 0 7 7 2 2 , , 1 0 0 0 0 0 3 3 5 49 2 6 3 0 0 4 4 6 9 , 4 6 4 1 0 0 3 3 3 36 0 ; ,950 2 29 97 2, 5 6 6 1 0 0 1 1 5 4 , , 1 1 6 0 0 0 5 5 1 2 0 0 4 6 , , 2 7 2 8 0 0 132 1 1 3 4 8 0 , , 3 7 5 9 0 0 2 3 , , 6 2 7 2 0 0 2 27 7 ; ; 1 1 3 3 , , 9 9 4 5 3 0 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 «. 116,284 38,057 69,221 9,006 37,502 155,377 144,10312,792 240 1,343 94,367 35,360 10,059 14,181 1960—Dec. 31.. 199,509117,64r 61,003 20,864 5522,,150 257,552 222299,84317,079 1,799 5,945 133,379 71,641 163 20,98613,472 1961—June 30.. 201,848117,953 61,824 22,071-45,595253,749224,99713,633 461 6,362 125,161 79,380 443 21,74513,463 Dec. 30.. 215,441124,925 66,578 23,93756,443322 227788,561248,68917,914 481 5,946141,920 82,429 47122,459 13,432 1962—Apr. 25.. 217,390126,610 64,65026,13045390 269,180237,20013,730 520 3920 130,120 88,910 2,360 22,750 13,407 May 30.. 217,960127,480 64,400 080 45 390 269;690 237,58013,200 520 170 126,310 90,380 2,07022,93013,414 June 30.. 220,670129,193 64,443 034 48 728276,220245,29814,400 525 9; 554128,785 92,034 78623,18313,422 July 25.. 220,410128,730 64,18027,50044,600271,520 239,64013,830 520 5 530 127,450 92,310 1,93023,02013,419 Aug. 29». 222,140130,430 63,850 860 44,670273,230240,05013,840 510 7.450 124,900 93,350 2,75023,20013,421 Sept. 26*. 225,270132,840 64,250 180 46.630 278400245,48014,530 510 090 128,100 94,250 2,61023,33013,417 Oct. 31*. 228,460134,400 65,45028,61049690 284790251,37015,260 510 330 133,970 95,300 2,78023,56013,414 Nov. 28*. 229,060134,840 65,400 820 47, 283;110249,48015,190 520 990 132,230 95,550 2,50023,68013,427 Dec. 26*. 234,970139,860 65,870 240 48: 290,340256,14015,160 510 780 136,700 96,990 3,22023,78013,432 1963—Jan. 30*. 231,840136,420 65,92029,500 45,730284,610250,86014,100 520 220 132,920 99,100 2,67023,84013,439 Member banks: 1941—Dec. 31.. 43,521 18,021 19,539 5,96123,123 68,121 61,71 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.. 107,183 22,775 78,338 6,07029,845138,304129,67013,576 64 222,179 69,640 24,210 208 7,589 6,884 1947_Dcc. 31.. 97,846 32,628 57,914 7,304 "3,2845 132,060122,52812,353 50 1,176 80,609 28,340 54 8,464 6,923 1960—Dec. 31.. 165,61" 99,933 49,10616,579 45,756 216',577193,02916,436 1,639 5,287112,393 57,272 13017,398 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 Dec. 30.. 179,599106,232 54,05819,308 49579 235,11"209,63017,195 303 5,381 119,595 67,157 43818,638 6,113 1962—Apr. 25 180,87: 107,424 52,10321,34539,662226,233198,67- 13,178 340 3,506 109,04s 72,602 2,31 18,877 6,074 May 30 181,180107,980 51,91321,28739,702 226,556198,97812,689 345 6,463 105,629 73,85' 2,00219,015 6,073 June 30 183,497109,212 52,06522,21942,853232,359206,05' 13,796 351 8,734108,014 75,162 73519.179 6,070 July 25 183,008108,767 51,6ir22,629 39;001227,806 200,48213,241 347 4,952 106,611 75,331 1,87019,060 6,062 Aug. 29 184,398110,331 51,149 22,91839,107 229231200,66713,232 338 6,695104,280 76,122 2,68r19,212 6,060 Sept. 26* 186,641112,240 51,27123,130 40,87' 233 279 204.99513,878 33' 7,284106,702 76,794 2,58519,281 6,053 Oct. 31* 189,420113,711 52,23823,47143,686239,009 21032814,577 339 5,700 112,045 77,667 2,72219,466 6,054 Nov. 28* 189,619113,865 52,097 23,65741,564 237;050208;25914,502 34! ,301110,181 77,932 2,42: 19,546 6,056 Dec. 26* 195,195118,52 52,62524,04642,541243,824 214,41214,442 340 ,165114,220 79,245 3,15' 19,635 6,050 1963—Jan. 30* 192,301115,289 52,74924,26340,024238,565209,58913,449 341 ,785110,954 81,060 2,61419,697 6,046 Mutual savings banks: 1941—Dec. 31... 10,379 4,901 3,704 1,77- 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 19,71 17 763 17,745 1,889 533 I960—Dec. 31... 39,114 27,122 6,239 5,752 872 40,574 36,353 36,318 3,553 514 1961—June 30... 40.344 28,211 6,281 5,852 862 41,818 37,551 37.487 3,660 514 Dec. 30... 41,259 29,393 6,136 5,730 936 42,833 38,487 38,420 3,768 514 1962—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 5,690 820 44,030 39,390 39,330 3,850 512 June 30.. 42,872 30,930 6,278 5,663 884 44,418 39,888 39,821 10 3,853 512 July 25.. 43,160 31,190 6,280 5,690 840 44,680 40.040 39,980 3 860 511 Aug. 29*. 43,560 31,550 6,310 5,700 810 45,050 40 260 40,200 3 900 511 Sept. 26*. 43,810 31,800 6,310 5,700 850 45,370 40,690 40,630 3,920 511 Oct. 31*. 43,920 32,080 6,150 5,690 870 45,490 40,880 40,820 3,890 511 Nov. 28*. 44,250 32,400 6,130 5,720 830 45,760 41,020 40,960 3,950 511 Dec. 26*. 44,470 32,620 6,130 5,720 920 46,070 41,420 41,360 3.940 511 1963—Jan. 30*. 44,760 32,850 6,180 5,730 880 46,340 41,750 41,690 3,950 511 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 COMMERCIAL AND MUTUAL SAVINGS BANKS 219 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans G U o S . v S e t c . . 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 i n c a t i t n d i - - t a e t a l s s l 2 Total i m I D n a e t n e - d rba T nk im J 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 f m k r s - Govt. Other Reserve city member baaks: New York City:s 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 2,282 100,301 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 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—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 Dec. 26* 32,899 22,142 6,744 4,013 8,600 43,549 35,675 4,034 210 1,421 20,857 9,153 1,331 3,867 17 1963—Jan. 30* 31,808 20,649 7,009 4,150 8,731 42,626 34,799 4,119 213 769 20,231 9,467 l,08f 3,897 17 City of Chicago:3 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 5,931 1,333 4,213 385 1,489 7,459 7,046 ,312 1,552 3,462 719 377 12 1947—Dec. 31 5,088 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 61 327 4,899 1,530 35 822 10 1961—June 30 7,020 4,249 2,058 714 1,899 9,068 8,037 ,125 10 380 4,602 1,920 10 848 10 Dec. 30 7,606 4,626 2,041 940 2,603 10,383 9,283 ,624 14 369 5,268 2,008 35 870 1962—Apr. 25 7,504 4,557 1,880 ,067 1,912 9,592 8,421 ,177 18 158 4,676 2,392 73 877 9 May 30 7,631 4,592 1,926 ,113 1,928 9,720 8,524 ,118 19 356 4,548 2,483 75 884 9 June 30 7,937 4,672 1,936 ,329 1,893 10,009 8,810 ,128 18 546 4,520 2,598 34 894 9 July 25 7,765 4,510 1,907 ,348 1,860 9,795 8,584 ,203 17 256 4,489 2,619 75 890 Aug. 29 (old basis] 7,883 4,570 1,923 ,390 1,801 9,852 8,580 ,193 17 361 4,353 2,656 117 895 9 Aug. 29 (new basis] 8,201 4,761 2,001 ,439 1,870 10,247 8,934 ,201 17 384 4,554 2,778 122 925 12 Sept. 26* 8,293 4,879 2,028 ,386 1,997 10,469 9,087 ,243 15 440 4,569 2,820 163 930 12 Oct. 31* 8,552 4,961 2,175 ,416 2,073 10,815 9,380 ,281 15 366 4,826 2,892 267 944 12 Nov. 28* 8,456 5,029 2,025 ,402 2,102 10,738 9,450 ,326 15 279 4,879 2,951 66 941 12 Dec. 26* 8,911 5,340 2,163 ,408 2,010 11,115 9,686 ,268 14 418 4,953 3,033 224 951 13 1963—Jan. 30* 8,682 5,101 2,217 ,364 1,969 10,860 9,481 ,140 15 218 4,956 3,152 132 956 13 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 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11',423 1 2,844 353 1960—Dec. 31 62,953 40,002 17,396 5,554 1188,668 83,464 75,067 7,989 326 1,960 42, ,525 73 6,423 217 1961—June 30 63,670 39,747 18,053 5,87016,529 82,141 73,557 6,335 62 2,241 39,72125,199 131 6,684 205 Dec. 30 68,565 42,379 19,748 6,438 2"0,216 90,815 81,883 8,350 62 2,103 44,986 2"6,381 81 6,997 206 1962—Apr. 25 69,238 42,984 18,891 7,36316,641 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 7,54416,523 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 7,69417,602 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 1166,409 88,886 78,686 6,633 79 1,927 40,,336677 "2,9680 1,159 7,181 207 Aug. 29 (old basis) 70,333 44,540 17,987 7,80616,180 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 7,72916,027 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 1166,897 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 7,90517,046 90,244 80,217 7,235 71 2,063 40,78130,067 892 7,190 193 Nov. 28* 71,264 45,211 18,088 7,96516,881 90,307 79,777 7,139 69 1,918 40,61130,040 1,216 7,201 195 Dec. 26* 73,145 46,768 18,198 8,179 17,963 93,332 82,662 7,334 68 2,375 42,339 3300,546 1,365 7,237 191 1963— Jan. 30* 72,053 45,692 18,143 8,218 16,172 90,467 80,101 6,555 65 1,400 40,76531,316 1,178 7,263 189 Country member banks:* 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 ,207 5,465 24,23512,494 2,525 6,476 1947—Dec. 31 36,324 10,199 22,857 3,26810,778 47,553 44,443 ,056 432 28,37814,560 23 2,934 6,519 1960—Dec. 31 67,890 36,981 22,848 8,060 1144,740 84,126 76,004 ,778 1,783 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 ,406 1,730 41,41330,820 121 6,861 5,911 Dec. 30 73,131 39,693 24,407 9,031 15,595 90,376 81,646 ,925 1,641 46,21131,832 40 7,088 5,885 1962—Apr. 25 74,275 40,503 24,384 9,38813,046 88,846 79,997 ,467 1,208 43,43933,846 168 7,180 5,846 May 30 74,582 40,861 24,235 9,486 12,959 89,001 79,957 ,355 2,046 42,292 3"'4,227 263 7,228 5,845 June 30 , 75.019 41,492 23,843 9,68513,806 90,555 81,577 ,529 2,601 42,596 34,803 80 7,323 5,842 July 25 , 75,467 41,436 24,228 9,80313,154 90,135 81,147 ,482 1,832 42,767 35,029 243 7,241 5,833 Aug. 29 , 76,510 41,902 24,620 9,98813,184 91,177 81,995 ,541 2,380 42, ,483 282 7,339 5,838 Sept. 26* , 77,919 42,738 25,013 10,16813,495 92,992 83,929 ,635 2,546 43.820 35,880 100 7,394 5,832 Oct. 31* , 78,665 42,902 25,432 [0,33114,076 94,316 84,965 ,711 1,984 44,9 36,285 230 7,479 5,833 Nov. 28* 79,528 43,506 25,63810,38413,718 94,801 85,286 1,739 2,194 45,085 36,220 206 7,555 5,833 Dec. 26* 80,240 44,274 25,52010,44613,968 95,828 86,389 1,806 1,951 46,07136,513 237 7,580 5,829 1963—Jan. 30* 79,758 43,847 25,38010,53113,152 94,612 85,208 1,635 1,398 45,002 3"7,125 222 7,581 5,827 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 COMMERCIAL AND MUTUAL SAVINGS BANKS FEBRUARY 1963 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 i Other Cla a s n s d o d f a b te ank Total Loans as C s a e s ts h i c b a i a l l p i i n a t i d i t - e a s l Total i Demand 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 r ks - I U T . ^ o 1 . Other ac- jje- Time Time Govt. counts 2 mand U. S. Other Govt. Insured commercial LD amKe s,: 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 80,27629,876 215 8.671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,85112,615 54 1,325 92,97534,882 61 9,73413,398 1958—Dec. 31.. 183,596 97,730 65,66920,198 48,689 236,724 214,48515,653 2,209 4,241 129,21463,168 6718,15413,101 1959—Dec. 31.. 188,790110,299 58,34820,143 49,158 242,828 218,47415,500 1,358 5,037130,72065,858 60219,20613,107 1960—Dec. 31.. 198,011117,092 60,46820,451 51,836 255,669 228,40116,921 1,667 5,932132,53371,348 14920,628 13,119 1961—Dec. 30.. 213,904124,348 66,02623,531 56,086 276,600 247,17617,737 333 5,934141,05082,122 46222,08913,108 1962—June 30.. 219,163128,613 63,92126,630 48,415 274,318 243,85614,235 388 9,529 127,99091,714 77322,81013,104 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 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,664 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,54119,278 45 5,409 5,005 1958—Dec. 31.. 99,277 52,627 35,71410,936 26,781 128,397 116,714 9,035 767 2.292 69,80834,812 43 9,643 4,578 1959—Dec. 31.. 102,615 59,962 31,761 10,892 27,464 132.636 119,638 8,947 514 2,742 71,01536,421 34010,302 4,542 1960—Dec. 31.. 107,546 63,694 32.71211,140 28,675 139,261 124,911 9,829 611 3,265 71,66039,546 11111,098 4,530 1961—Dec. 30.. 116,402 67,309 36^88 13,006 31.078 150,809 135,51110,359 104 3,315 76.29245,441 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 69,25650,770 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 1 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 9 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 I960—Dec. 31.. 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40,733 17,727 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 43,30321,716 213 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 38,75824,392 355 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 6 959 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 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1958—Dec. 31.. 28,759 13,682 11,381 3,696 5,504 34,737 31,696 426 22 419 18,76612,063 13 2,696 6,793 1959—Dec. 31.. 30,939 15,534 11,546 3,859 5,651 37,132 33,795 451 20 533 19.73213,059 21 2,944 6,878 1960—Dec. 31.. 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 27 645 20,14014,095 19 3,232 6,948 1961—Dec. 30.. 34,320 18,123 11,972 4,225 6,508 41,504 37,560 543 30 553 21,456 14,979 24 3,452 6,997 1962—June 30.. 35,681 19,409 11,860 4,412 5,563 41,975 37,814 440 38 795 19,97616,565 38 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 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2.768 2,452 181 1,905 365 4 279 714 1947—Dec. 3H 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1958—Dec. 31.. 1,568 484 707 377 301 1,927 1,532 146 163 9 890 325 6 332 399 1959—Dec. 31.. 1,480 534 589 358 309 1,858 1,429 150 83 13 873 311 12 350 366 1960—Dec. 31.. 1,498 550 535 413 314 1,883 1,443 159 132 13 846 293 14 358 352 1961—Dec. 30.. 1,536 577 553 406 346 1,961 1,513 177 148 12 869 307 8 370 323 1962—June 30.. 1,507 580 523 404 313 1,902 1,442 165 137 24 795 320 13 372 318 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 18 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 11 1,362 7,130 1947—Dec. 31* 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 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 20 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 34 3,294 7,244 1960—Dec. 31.. 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,986 14,388 33 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 33 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 52 4,005 7,353 Insured mutual savings banks: 1941—Dec. 31.. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1 1 9 9 4 4 5 7 — — D D e e c c . . 3 3 1 1 . . . . 1 1 0 2 , , 8 6 4 8 6 3 3 3 , , 0 5 8 6 1 0 7 8 , , 1 16 6 5 0 9 6 5 0 8 6 4 6 2 7 9 5 1 13 1 , , 4 4 9 2 9 4 1 1 0 2 , , 3 2 6 0 3 7 1 2 12 12 1 1 0 2 , , 3 1 5 9 1 2 1 1 1 , , 0 2 3 5 4 2 1 1 9 9 2 4 1958—Dec. 31.. 28,980 19,180 5,215 4,585 752 30,189 27,277 2 3 2827,243 7 2,473 241 1959—Dec. 31.. 30,580 20,942 5,016 4,622 686 31,743 28,577 2 3 2828,544 9 2,654 268 1960—Dec. 31.. 33,794 23,852 4,787 5,155 766 35,092 31,502 1 4 2931,468 3 2,998 325 1961— Dec. 30.. 35,660 25,812 4,690 5,158 828 37,065 33,400 6 25633,137 11 3,191 330 1962—June 30.. 36,989 27,179 4,708 5,102 779 38,366 34,581 1 5 27534,300 9 3,259 331 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 COMMERCIAL AND MUTUAL SAVINGS BANKS 221 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans G U o S .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 u l a l o p i n i c n a t t i d - i a t - t e a s l s l 2 Total 1 m I D n a e t n e - d rba T nk im 1 e U.S D . e O m t a O h n e t d r 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 r ks - Govt. Noninsured mutual savings banks: 1941—Dec 31 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945 Dec 31 5,361 1,198 3,522 641 180 5,596 5,022 2 5,020 6 558 350 1947—Dec. 31 4 5,957 1,384 3,813 760 211 6,215 5,556 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 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 217. Virgin Islands that became a member in May 1957, 2 noninsured non- 4 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 seasonally adjusted Period Securities Securities Total 1 Loans* Total i Loansl G U. o v S t . . Other G U o .S v . t. Other 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 1962*2 227.6 134.8 63.8 29.0 233.1 138.0 65.9 29.2 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 5 220.3 127.3 65.0 28.0 219.0 127.3 63 9 27.9 Septp . . . . 222.0 129.7 64.3 28.0 223.1 130.6 64.3 28.2 Oct p 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 Dec*2 227.6 134.8 63.8 29.0 233.1 138.0 65.9 29.2 1963 Jan p . . . .. 228.8 134.9 64.3 29.6 229.0 133.6 65.9 29.5 1 Adjusted to exclude interbank loans. NOTE.—Data are for last Wed. of month (except for June 30 and 2 Data for Dec. are estimates for Dec. 31, 1962. Dec. 31 call dates). For description of seasonally adjusted series and back data, see July 1962 BULL., pp. 797-802. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 COMMERCIAL BANKS FEBRUARY 1963 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans 1 Investments For To purchasing financial U. S. Government b c C a a l n l a l k s d s a a o n te f d l i m o T n a a v o e n n e n t d s s a t t s l - i Total 2 C m d t a c i r o u n i n i e a m a s d - r l l - - - A c tu a u g r l l r - - i- o b k d a T s r r e e n e o o a r d c c s - l a u - r r o r it y t T i h i e n o e s g rs b i a T n n o s k ti s tut o io t T h n o e s rs R t e a e s t a - e l O u v i d t t a i n h o i d l - - e s - r Other Total Bills sec c C t u a i e f r t i e i r - t - s ies Notes Bonds g s S r l a o i e o t t n c c a i v e d u a t t e s l - . s O i e t t c i h e u e s r r ers Total: 2 1947—Dec. 31. 116,284 38,057 18,167 1,660 8301,220 115 9,393 5,723 947 69,221 2,193 7,789 6,034 53,205 5,2763,729 1960—Dec. 31. 199,509 117,64243,125 5,676 3,284 1,833 966 7,106 28,713 26,3962,90161,003 8,072 2,920 19,01330,99817,5703,294 1961—Dec. 30. 215,441 124,92545,172 6,248 4 """2134 1,033 7,311 ,847 3,412 66,57811,488 2,114 2"6',336 26,6412'0",3453,592 1962—June 30. 220,670 129,193 45,,909 6 3,254 2,005 1,474 7,221 . ,444 3,713 64,443 8,320 3, ,04126,45323,1653,869 Sept. 28. 224,950 132,340 46,780 6,360 3,530 1,950 2,040 7,440 33,240 29,850 3,830 64,390 8,490 3,530 24,00028,3702"4 ,0904,130 All insured: 1941—Dec. 31. 49,290 21,259 9,2141,450 614 662 40 4,773 4,505 21,046 988 3,15916,899 3,6513,333 1945—Dec. 31. 121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 8888,912 2,45519,07116,04551,342 3,873 3,258 1947__Dec. 31. 114,274 37,58318,0121,610 8"2"3 '1 ,1'9"0 114 9,266 5,654 914 67,941 2,124 7,552 5,918 5"2',347 5,129 3,621 1960- Dec. 31. 198,011 117,092 42,957 5,628 3,247 ,811 965 7,090 28,602 26,263 2,88360,468 7,994 2,88418,86830,72 17,300 3,150 1961—Dec. 30. 213,904 124,348 44,965 6,211 44,,003300 2,107 1,027 7,296 30,21127,7083,396 66,02611,356 2,098:2 6.,14526,42620,0683,462 1962—June 30. 219,163 128,613 45,717 6,766 3,234 ,981 1,469 7,200 31,915 29,2993,692 63,921 8,226 3,577 25,886 26,23122,8833,747 Sept. 28. 223,438 131,755 46,595 6,328 3,512 1^27 2,022 7,42133,114 29,700 3,81163,853 8,377 3,479 23,860 28,137:23,8214,009 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 3,090 2.871 1945—Dec. 31. 107,183 22,775 8,949 885555 3,1333,378 47 3,455 1,900 057 78,338 2,27516,98514,27144,807 3,254 2,815 1947—Dec. 31. 97,846 32,62816,9621,046 811 ,065 113 7,130 4,662 83957,914 1,987 5,816 4,815 45-,295 4,1993,105 1960—Dec. 31.. 165,619 99,93339,288 3,509 3,124 ,564 947 6,726 22,518 21,622 2,694 49,106 6,402 2,29615,072 25,33514,1412,439 1961—Dec. 30.. 179,599106,232 4400,,993311 3,934 3,877 ,827 1,014 6,893 23,987 22,852 3,19854,058 9,229 1,842 21,390 21 ;5981 166,6912,617 1962—June 30.. 183,497109,2 1"2 41,435 4,220 3,0881,699 1,453 6,789 25,362 24^06 3,480 5"2",065 6,467 2.984 21,367 2124719,3212,899 Sept. 28.. 186,518111,993 42,210 3,948 3,360 ,655 1,943 6,972 26,358 24,297 3,594 5"1',323 6,124 2,901 19,563 2273420,129 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 1,956 467 376 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 ,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 2,690 322 134 564 196 421 197 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 2,745 248 145 338 514 309 2,006 184 64 782 975 1,216 179 Other reserve city:^ 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 4271,503 17 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 15 3,147 1,969 35120,196 373 2,358 1,90115,563 1,3421,053 I960—Dec. 31. 62,953 40,00216,223 887 719 739 351 3,216 9,005 8,721 90917,396 2,031 794 5,461 9,111 4,817 738 1961—Dec. 30. 68,565 42,37916,879 ,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 43,82417,0771,184 888 727 556 3,14810,272 9,6821,12918,627 1,611 1,267 8,186 7,563 6,867 827 Sept. 28. 69,903 44,432 1"7,0921,028 926 705 797 3,20510,674 9,650 1,17717,769 1,305 1,291 7,275 7,898 6,894 808 Country: 1941—Dec. 31. 12,518 5,890 1,676 659 20 183 2 1,823 528 4,377 110 481 3,787 1,222 ,028 1945—Dec. 31. 35,002 5,596 1,484 648 42 471 4 1,881 707 35926,999 630 5,102 4,54416,722 1,342 ,067 1947—Dec. 31. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 480 2,583 2,10817,687 2,006 ,262 I960—Dec. 31. 67,890 36,981 9,499 2,589 508 293 29 1,14712,44910,550 64722,848 2,817 7,24011,903 6,752 ,308 1961—Dec. 30. 73,131 39,69310,1652,811 591 438 116 1,25113,24211,132 75124,407 3,614 566 9,56010,667 7,530 ,500 1962—June 30. 75,019 41,49210,,719 3,007 424 416 240 1,25613,72811,792 73223,843 2,667 1,075 9,405 10,696 8,146 ,539 Sept. 28. 77,759 42,55610,,854 2,890 499 397 478 1,30814,14512,054 76024,953 3,493 1,049 8,839 11,571 8,532 ,718 Nonmember: 2 1947—Dec. 31. 18,454 5,432 1,205 614 20 156 2,266 1,061 10911,318 206 1,973 1,219 7,920 1,078 625 1960—Dec. 31. 33,910 17,719 3,838 ,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 4,2412,314 179 306 418 6,341 4,995 21412,525 2,259 272 4,947 5,046 3,655 976 1962- June 30. 37,188 19,989 4,474 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 New York City and City of Chicago were central reserve city banks loans continue to be shown net, before July 28, 1962; reserve city banks thereafter. 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

FEBRUARY 1963 COMMERCIAL BANKS 223 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal- Deb c C a a l n l a l k s d s a a o n t f e d s B F w e R a r . i n e R v t - h k e . s s r C c a e o n n u i c r d n y - b m a a w d n e n i o c s t k - t e h i s s c * j p m u a o d s a t d s e n e i - - t d d s 5 m D e In o st - t i e c r 4 ba e F n ig k o n r- 6 G U o .S v . t. S g l a o o t n c a v a d t t e l . c C h c o a f e e e i f n e c r r fi d k d s t - i ' s - , IPC I b n a t n er k - P G U S i a o n o a . n s g S v v t d a s . t - . l S g l a o o t n c a v a d t t e l . IPC r B in o o w g r s - - c C o a t a u a c p n l - i t - s etc. Total: 2 1947—Dec. 31.... 17,796 2,216 10.216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1960—Dec. 31.... 16,720 3,346 13,681 115,120 15,453 1,627 5,945 11,674 4,602 117,103 1,799 262 4,544 66,836 16320,986 1961—Dec. 30.... 16.918 3,689 14,169122,654 16,574 1,340 5,946 12,242 5,056 124,622 481 283 5,465 76,680 47122,459 1962—June 30.... 16,839 3,185 11,799114,043 13,185 1,215 9,554 11,814 4,437 112,534 525 300 6,341 85,393 78623,183 Sept. 28«... 17,000 3,420 12,260115,810 13,600 1,100 8,600 11,590 3,790 114,330 430 270 6,180 87,8901,51023,690 AH insured: 1941_Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1960—Dec. 31.... 16,720 3,326 13,409114,292 15,339 1,582 5,932 11,582 4,564 116,388 1,667 262 4,481 66,605 14920,628 1961—Dec. 30.... 16.918 3,670 13,871121,671 16,440 1,298 5,934 12,149 5,023 123,878 333 283 5,412 76.426 46222,089 1962—June 30.... 16,839 3,168 11,524113,136 13,053 1,182 9,529 11,727 4,390 111,874 388 300 6,290 85,124 77322,810 Sept. 28«... 16,999 3,401 11,832114,922 13,482 1,088 8,573 11,508 3,745 113,672 395 268 6,131 87,623 1,49623,325 Member, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 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 1,455 19,562 New York City:* 1941—Dec 31... 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1 648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1960—Dec. 31.... 3,398 199 147 15,352 4,105 1,184 1,217 305 2,476 19,051 1,216 27 203 3,976 3,554 1961—Dec. 30.... 3,286 240 143 17,089 4,330 967 1,267 333 2,583 20,213 191 38 162 6,735 283 3,683 1962—June 30.... 3,495 165 106 15,796 3,643 874 1,918 327 2,390 17,580 210 53 221 7,824 381 3,761 Sept. 28.... 3,338 184 99 15,710 3,579 784 1,544 310 1,892 17,589 208 48 230 8,073 567 3,839 City of Chicago:* 1941—Dec 31 1,021 43 298 2,215 1.027 8 127 233 34 2,152 476 288 1945—t>ec 3i t 942 36 200 3,153 1,292 20 1,552 237 66 3 160 719 377 1947—Dec 31.... 1,070 30 175 3,737 ,196 21 72 285 63 3,853 2 9 902 426 1960—Dec. 31.... 899 33 171 3,968 1,327 53 327 298 102 4,499 61 2 7 1,521 35 822 1961—Dec. 30.... 889 37 158 3,809 1,578 45 369 315 124 4,830 14 5 8 1,996 35 870 1962—June 30.... 916 31 94 3,728 1,083 44 546 330 109 4,082 18 7 10 2,581 34 894 Sept. 28.... 996 35 113 3,869 1,194 42 477 325 104 4,255 18 7 15 2,788 112 933 Other reserve city: 3 1941_Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 t947_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 27,274 638 7,168 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4.527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947_Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1960—Dec. 31.... 5,070 1,534 5,655 40,917 1,755 23 1,783 5,083 713 37,598 37 122 1,562 27,327 23 6,599 1961—Dec. 30.... 5.210 1,678 5,881 43,575 1,910 15 1,641 5,320 796 40,095 37 108 1,891 29,834 40 7,088 1962—June 30.... 5,023 1,438 4,872 40,321 1,512 17 2,601 5,261 676 36,660 48 104 2,158 32,541 80 7,323 Sept. 28 5,230 1,564 4,998 41,855 1,575 17 2,623 5,398 618 37,964 48 102 2,178 33,654 139 7,621 Nonmember: 2 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1960—Dec. 31 , , 828 5,099 20,525 578 65 657 2,658 357 17,970 160 25 985 13,378 33 3,590 1961 Dec 30 876 5.446 21,994 649 70 565 2,755 402 19,168 178 23 1 094 14 169 33 3 822 1962—June 30..., 787 4,617 20,489 553 52 819 2,707 356 17,708 174 26 1,245 15,614 52 4,005 4 Beginning with 1942, excludes reciprocal bank balances. NOTE.—Data are for all commercial banks in the United States. These 5 Through 1960, demand deposits other than interbank and U. S. figures exclude data for banks in U. S. possessions except for member Govt., less cash items in process of collection; beginning with 1961 banks. During 1941 3 mutual savings banks became members of the demand deposits other than domestic commercial interbank and U. S. FRS; these banks (3 before Jan. 1960, 2 until June 1961, and 1 until Govt., less cash items in process of collection. July 1962) are included in member banks but are not included in all insured 6 Beginning with June 1961, reclassiftcation 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

224 WEEKLY REPORTING MEMBER BANKS FEBRUARY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financial institutions Loans Total and Wednesday m i l n o a e v n a n e n d t s s s t - * j i m u n s _ v e J t e n e s t d t s - 2 j L u o s _ t a J e n d s 2 i C n m t a c r o d n i e i a m u a d r l s - l - - A tu g r r a i l - G U c a T t s u o i n . e o e r S v d - s i- . t b . d r e o O a k c t l s u e t i e e h e r r r - s s i e s - r G U c t s u T o i . e e r v S o - s i - t . . oth O c e t s u t i r e h e s r - s i e - r F ei o g r n B - ank c m m D c o t i i e e o m a c s r - l - - - f P s C i a e a n e O N n t l a r c S e d s o n . . s , . . nba O n t k her e R st e a a t l e o A th l e l r V s t e a r i r e o l v u - n e a s - Total— Leading Cities 1962 Jan 3 122 631 120,354 74,285 32,797 1,303 847 2 363 137 1,358 674 2,277 3,729 2,430 13,403 16 940 [ 696 10 120,812 119,012 73,129 32,501 1,307 571 2,221 116 1,358 644 1,800 3,421 2,377 13,404 16,909 ,700 17 120,410 118,692 72,520 32,230 1,325 424 2,116 111 1,348 654 1,718 3,394 2,360 13,407 16,853 j70? 24 . . 119 432 118,038 71,553 31,981 1,322 208 1,982 110 1,348 630 1,394 3,115 2,325 13,406 16,827 701 31 r120,360 r118,515 rl1,870 r31,988 1,317 329 2,011 111 1,353 628 1,845 3,184 2,332 13,420 r16,902 ,705 Dec 5 128,058 126,113 79,364 34,779 1,493 849 2,169 86 1,334 613 1,945 3,420 2,700 15,415 18,251 ,745 12 128,706 126,817 79,821 34,807 1,503 863 2,309 82 1,348 618 1,889 3,544 2,726 15,470 18,299 ,748 19 131,160 129,361 81,920 35,075 1,526 1,824 2,632 88 1,358 625 1,799 3,935 2,776 15,483 18 339 I 741 26 132,075 129,940 82,311 35,166 1,529 1,604 2,748 97 1,369 650 2,135 4,237 2,774 15,504 18,374 ,741 1963 Jan 2 . . . .. 133,221 131,094 82,947 35,351 1,562 1,569 2,833 113 1,413 669 2,127 4,563 2,802 15 519 18 454 901 9 130,380 128,641 80,842 34,937 1,552 1,087 2,513 109 1,383 651 1,739 3,881 2,760 15,520 18,351 ,90^ 16 130,938 129,012 80,801 34,612 1,544 1,453 2,714 112 1,381 645 1,926 3,660 2,753 15,565 18,275 ,913 23 128,7^4 127,482 79,536 34,291 1,540 837 2,564 98 1,378 645 1,242 3,495 2,756 15,585 18,262 ,915 30 129,284 127,391 79,457 34,295 1,527 537 2,531 95 1,387 651 1,893 3,694 2,740 15,626 18,290 ,916 New York City 1962 Jan 3... 29,982 29,405 18,834 11,047 11 374 1,372 29 442 331 577 1,162 490 839 3,226 489 10. 29,310 28,705 18,322 10,901 11 281 1,316 23 448 303 605 1,013 467 839 3,209 489 17 29,171 28,637 17,984 10,768 11 160 1,193 22 448 309 534 1,060 455 833 3,215 490 24 28,909 28,319 17,555 10,673 11 90 1,123 24 445 292 590 892 457 837 3 201 490 31 29,465 28,813 17,769 10,685 11 149 1,139 24 445 290 652 984 449 837 3,246 490 Dec 5 30,534 29,671 19,594 11,545 7 631 1,114 14 400 281 863 1,088 558 1,234 3,223 sot 12 30,637 30,031 19,748 11,456 10 676 1,209 14 405 284 606 1,150 569 1,254 3,222 501 19 31,846 31,326 20,855 11,577 16 1,305 1,426 14 411 287 520 1,309 585 1,227 3,199 501 26 32,083 31,410 20,922 11,592 17 1,089 1,529 15 416 301 673 1,456 574 1,236 3,198 501 1963 Jan 2 32,216 31,709 21,075 11,751 17 945 1,567 17 428 317 507 1,606 562 1,209 3,205 549 9 31,132 30,434 19,913 11,570 17 647 1,354 19 415 314 698 1,193 558 1,208 3,167 549 16 31,544 30,860 19,985 11,373 11 927 1,483 15 412 313 684 1,083 551 1,224 3,147 SS4 23 30 488 30,198 19,447 11,248 11 645 1 358 16 404 312 290 1,058 556 1,221 3 172 554 10 30,940 30,192 19,368 11,317 12 388 1,304 15 408 312 748 1,197 546 1,230 3,193 554 Outside New York City 1962 Jan 3 92,649 90,949 55,451 21,750 1,292 473 991 108 916 343 1,700 2,567 1,940 12,564 13,714 ,207 10 91,502 90,307 54,807 21,600 1,296 290 905 93 910 341 1,195 2,408 1,910 12,565 13,700 ,211 17 91,239 90,055 54,536 21,462 1,314 264 923 89 900 345 1,184 2,334 1,905 12,574 13,638 ,212 24. 90,523 89,719 53,998 21,308 1,311 118 859 86 903 338 804 2,223 1,868 12,569 13 626 211 11 r90,895 r89,702 r54,101 r21,3O3 1,306 180 872 87 908 338 1,193 2,200 1,883 12,583 r13,656 ^15 Dec 5 97,524 96,442 59,770 23,234 1,486 218 1.055 72 934 332 1,082 2,332 2,142 14,181 15,028 ^44 12 98,069 96,786 60,073 23,351 1,493 187 ,100 68 943 334 1,283 2,394 2,157 14,216 15,077 ,247 19 99,314 98,035 61,065 23,498 1,510 519 ,206 74 947 338 1,279 2,626 2,191 14 256 15 140 240 26 99,992 98,530 61,389 23,574 1,512 515 ,?19 82 953 349 1,462 2,781 2,200 14,268 15,176 ^40 1963 Jan 2 101,005 99,385 61,872 23,600 1,545 624 ,266 96 985 352 1,620 2,957 2,240 14.310 15,249 ,352 9 99,248 98,207 60,929 23,367 1,535 440 159 90 968 337 1,041 2,688 2,202 14 312 IS 184 353 16 99,394 98,152 60,816 23,239 1,533 526 PM 97 969 332 1,242 2,577 2,202 14,341 15,128 1,359 23 . . 98,236 97,284 60,089 23,043 1,529 192 ,206 82 974 333 952 2,437 2,200 14,364 15,090 1,361 30 98,344 97,199 60,089 22,978 1,515 149 ->?7 80 979 339 1.145 2,497 2,194 14,396 15,097 1,362 For notes see p. 226. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 WEEKLY REPORTING MEMBER BANKS 225 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 Total Bills c C t a i e f t i e r - - s W i i N n th o - m te a s tu a 1 n r i t d n o g b — on A d f s ter O s ri e t t c h ie u e s - r Total d b a o w B a n t m n i a i c c t l e k e h - s s s - b a w B e f a n o i n a i c g r t l e k n - h - s s Cu a rr c n e o d n in cy B s F w e R a . r i n v e t R k h - e . s s a o s t s h e e t r s a c l c i a c a a t p i o b n e i u i d t s l a n i- l ts 1 year 5 years 5 years Total— Leading Cities 1962 Jan, 3......... 33,960 5,972 ,379 5,411 17,852 3,346 12,109 18,637 3,374 190 ,637 13,436 4,587 160,721 10......... 33,662 5,754 ,385 5,356 17,878 3,289 12,221 17,582 3,089 163 ,652 12,678 4,661 155,834 17 33,954 6,073 ,387 5,398 17,792 3,304 12,218 17,547 2,963 165 ,587 12,832 4,588 156,434 24......... 34,312 6,090 ,416 5,418 17,811 3,577 12,173 17,242 3,103 155 ,626 12,358 4,605 152,915 31.. '34,467 6,204 ,451 r5,481 r17,778 r3,553 12,178 '17,196 '2,893 159 ,532 12,612 4,782 '155,432 Dec. 5......... 31,277 4,231 2,278 4,006 14,573 6,189 15,472 16,885 3,014 145 ,616 12,110 4,764 163,590 12 31,231 4,225 2,288 4,037 14,513 6,168 15,765 17,419 3,029 151 ,861 12,378 A,112 165,587 19......... 31,619 4,640 2,317 4,042 14,450 6,170 15,822 18,032 3,128 156 ,831 12,917 4,753 169,242 26.. 31,808 4,921 2,346 r3,992 '14,386 6,163 15,821 18,162 3,187 188 ,959 12,828 4,848 168,379 1963 Jan. 2......... 32,369 5,487 2,368 3,996 14,330 6,188 15,778 18,596 3,761 181 ,816 12,838 4,972 173,985 9......... 31,961 5,164 2,363 3,988 14,286 6,160 15,838 17,386 3,006 163 ,761 12,456 4,831 166,627 16 32.409 5,651 2,360 3,929 14,299 6,170 15,802 17,467 3,137 184 ,665 12,481 4,831 168,749 23 32)116 5,353 2,348 3,961 14,297 6,157 15,830 17,459 2,898 173 ,687 12,701 4,817 163,546 30 315986 5,205 2,358 3,958 14,277 6,188 15,948 17,078 2,853 168 ,659 12,398 4,925 163,742 New York City 1962 7,659 1,979 435 1,086 3,498 661 2,912 4,457 119 273 3,971 2,010 41,180 Jan. 3 ... 7,440 1,809 454 1,087 3,476 614 2,943 4,087 87 258 3,666 2,120 39,996 10......... 7,664 1,993 451 1,090 3,507 623 2,989 4,088 109 241 3,659 2,051 40,112 17......... 7,838 2,075 466 1,091 3,487 719 2,926 3,934 75 231 3,560 2,069 39,095 24......... 8,099 2,261 472 1,172 3,495 699 2,945 3,964 68 220 3,603 2,123 40,583 31...... .... Dec. 5... 6,240 1,359 471 673 2,473 1,264 3,837 3,522 118 277 3,062 1,943 40,719 12 6,297 1,440 475 691 2,430 1,261 3,986 4,026 119 309 3,521 1,967 41,706 19 6,509 1,665 475 709 2,383 1,277 3,962 4,264 99 292 3,805 1,961 43,975 26 6,521 1,744 474 683 2,355 1,265 3,967 4,037 96 295 3,551 2,004 42,545 1963 Jan. 2......... 6,668 1,859 495 701 2,323 1,290 3,966 4,505 116 275 4,028 2,082 44,893 9......... 6,527 1,781 494 685 2,315 1,252 3,994 3,962 90 265 3,538 2,025 41,783 16. 6,905 2,195 490 689 2,321 1,210 3,970 3,979 110 246 3,537 2,059 42,985 23... 6,743 2,030 483 703 2,307 1,220 4,008 4,207 100 247 3,778 1,996 40,956 30... 6,752 2,032 491 708 2,306 1,215 4,072 4,076 94 248 3,651 2,036 41,561 Outside New York City 1962 Jan. 3..,.. 26,301 3,993 944 4,325 14,354 2,685 9,197 14,180 3,255 ,364 9,465 2,577 119,541 10......... 26,222 3,945 931 4,269 14,402 2,675 9,278 13,495 3,002 ,394 9,012 2,541 115,838 17......... 26,290 4,080 936 4,308 14,285 2,681 9,229 13,459 2,854 ,346 9,173 2,537 116,322 24......... 26,474 4,015 950 4,32.7 14,324 2,858 9,247 13,308 3,028 ,395 8,798 2,536 113,820 31... '26,368 3,943 979 r4,309 r14,283 r2,854 9,233 '13,232 '2,825 ,312 9,009 2,659 114,849 Dec. 5 25,037 2,872 1,807 3,333 12,100 4,925 11,635 13,363 2,896 ,339 9,048 2,821 122,871 12 24,934 2,785 1,813 3,346 12,083 4,907 11,779 13,393 2,910 ,552 8,857 2,805 123,881 19 25,110 2,975 1,842 3,333 12,067 4,893 11,860 13,768 3,029 ,539 9,112 2,792 125,267 26 25,287 3,177 1,872 r3,309 r12,031 4,898 11,854 14,125 3,091 ,664 9,277 2,844 125,834 1963 Jan. 2.... 25,701 3,628 1,873 3,295 12,007 4,898 11,812 14,091 3,645 ,541 8,810 2,890 129,092 9 25,434 3,383 1,869 3,303 11,971 4,908 11,844 13,424 2,916 ,496 8,918 2,806 124,844 16 25,504 3,456 1,870 3,240 11,978 4,960 11,832 13,488 3,027 ,419 8,944 2,772 125,764 23 25.373 3,323 1,865 3,258 11,990 4,937 11,822 13,252 2,798 ,440 8,923 2,821 122,590 30 25)234 3,173 1,867 3,250 11,971 4,973 11,876 13,002 2,759 ,411 8,747 2,889 122,181 For notes see p. 226. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 WEEKLY REPORTING MEMBER BANKS FEBRUARY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time De- Other CaP- Wednesday j T u us o n t t a e a d d l - 4 u p m s o a d a t s d e n e i - - t d d s ~ Tot<ll 6 IPC G S l a o t o n a v c d t a t e l . e F i o g r n - 7 G U o . v S t . . c m m D c o t e e i o i r m a s - c - - l - Total 8 S i a n v g - s IPC Oth S l e a t o r n a c d t a t e l ime e F i o g r n - 7 B F F a r . n o k m R s . o F t r he o r m s li i a t b i i e l s - co i a t u c ii - l Danks Govt. Total— Leading Cities 1962 jan 1 3 0 1 13 39 5 , 363 6 6 5 5 , 7 6 ? 4 9 4 9 9 7 3, ,9 3 5 0 8 5 6 7 8 0 ,4 1 3 1 3 8 4 5 , 0 7 0 9 ? 6 1, , 7 7 0 9 6 64, , 0 7 3 8 3 6 3 0 4 1 1 1 5 4 4 ? 1 ,0 6 5 0 8 3 ' 3 30 0 ,4 7 7 7 ? 5 59 1 4 ? 5 0 9 9 85 99 1 7 9, , 2 2 5 4 9 6 2 2 3 7 6 9 0 7 3 6 1 3 5 5,198 1?, 9 9 9 6 ? 3 17 135,548 65,050 93 186 69,069 4,757 ,6041,877 9J370 4?36?'30461'6,309 9j99? ,258 246 ?,184 5,491 1?,965 24 132,778 64,762 90,158 66,793 4,870 1,5772,082 1,678 42,620 '30,563 r6,427 3,021 2,266 47 1,547 5,578 12,965 31 '134,698 '64,350'91,839 '67, 204 1,6323,220 175 859 '30,641 548 068 2,262 52 2,011 5,641 030 Dec 5 141,566 6? 76? 9? 315 66 5000 1 5933,388 78? 49 751 34 535 8 713 3 7,440 167 583 5,66? 1361? 12 143,58? 65,0?9 93,988 69143 4857 ,6652,339 930 49594 34,57? 8,9?4 291 ,458 165 9 5 6?4 13,595 19 . ...147,798 663?6 97533 70345 4759 ,7213,600 9 310 49765 34607 900? 3351 7,453 290 9 490 5,57? 13,597 26 146,207 66,263 96,196 69,603 4,788 ,8074,772 1,867 50,011 34,712 9,080 3,344 2,521 212 836 5,497 13,627 1963 Jan 2 152,495 65 84310? 109 71 531 5 175 ,8494,749 4, 50 386 34 970 9 ??1 3 410 ,483 75 566 5 13,630 9 145?80 64787 94677 68378 4749 7042,916 944 50603 34993 9765 3475 ,514 54 9 453 5 ?08 13,63? 16 147033 65447 96160 70075 4939 7612,682 9 518 50873 35047 9 384 3537 545 76 ?607 5417 13616 23 142086 64,401 90951 6705? 4866 1,7652,566 1438 51135 35 106 9,463 3595 <-*,611 595 1799 5445 13, 30 142022 64,495 90,720 66 791 5,054 1,7162,76011010 51 302 35,143 9 542 3622 .,635 107 2398 5 558 13,657 New York City 1962 Jan 3 33 ?46 17074 349 18 185 1,3961,246 ?98 6 897 973 1990 168 ,668 110 456 9 694 3674 10 32354 17033 ?5387 17776 780 1,316 519 3356 6967 2985 1993 163 ,677 954 014 3674 17 32?63 16686 75?04 17845 789 1 713 534 318? 7059 3004 036 18? ,679 15 1161 9 998 3675 24 659 165?8 ?4534 17353 ?35 1,173 570 3951 7 3044 9 051 187 ,683 651 11? 3673 31 32816 16449 75597 17745 1,249 977 3140 7219 3069 119 194 ,678 946 3 3693 Dec 5 3315? 15667 ?4468 16578 ?78 1,169 944 3137 8684 3915 ? 61? 730 ,754 75 1011 667 3814 12 34076 1648? 75167 17564 759 1 ?33 633 7976 8859 3979 7769 ,756 38 1717 9 6?4 3801 19 36150 17340 77?56 1846? 1,286 893 3119 8894 3935 810 231 ,738 90 134? 9 59? 3801 26 34778 17087 95 806 17995 ?89 1,3691,404 9 894 897? 3950 9 837 223 ,782 133? 9 6?9 3806. 1963 Jan 2 37?54 16849 18341 360 1 3951,441 882 8999 974 9 864 919 ,760 1 580 817 9 34178 16416 25133 17116 979 1 ?77 857 ^ 196 9 045 4001 9 855 I 791 1?04 9 581 28?O 16 35030 16519 75919 17605 348 1,345 773 3??4 9 111 4017 867 226 ,816 ii ,458 665 3870 23 33369 16073 ?4176 16751 751 1 348 736 310? 9 193 4040 787? 777 868 67 987 7713 3 30 33857 16?64 ?4613 17043 306 1,295 757 3083 9 ?44 4050 789? 774 1,892 4 078 807 3815 Outside New York City 1962 Jan. 3 106,315 48,570 71,609 51,933 4 710 4002,78710,117 34,706 27,302 3,955 2,683 578 126 1,307 2,504 9,289 10 103 009 48 696 67 918 50,657 4 516 3901,267 9655 35,091'27437 '4177 7,759 58? 27 1077 7407 9318 17. 103?85 48364 6798? 51 4468 3911,343 9 188 35 303'77457'4773 810 579 231 1073 ,493 9 790 24 101,119 48?34 656?4 49440 4635 4041,512 84? 5 35495 519r4,376 9 834 583 47 896 9,466 9 797 31 '101,882'47,901 '66,242 ,383'4912 3832,243 8,035'35,640'27,572'4,429 2,874 584 52 1,065 2,513 '9,337 Dec. 5 108,414 47,095 67,847 49,651 4,722 4242,444 9,145 40,567 30,620 6,101 2,986 686 92 1,572 2,995 9,798 12 109 556 48.547 68 51,579 4 598 43?1,706 8954 40 735 30 643 6 155 3 060 70? 127 404 3,000 9794 19 111,148 48,986 70,277 51,883 4,488 4352,707 9,191 40,871 30,672 6,192 3,120 715 200 1,148 2,980 9,791 26 111,429 49,176 70,390 51,678 4,499 4383,368 8,973 41,039 30,762 6,243 3,121 739 212 ,504 2,868 9,821 1963 Jan. 2 115,241 48,994 73,847 53,190 4,765 4543,30810,439 41,394 30,946 6,357 3,198 723 75 1,324 2,639 9,813 9 111,102 48,371 69,544 51,262 4,477 4272,059 9,748 41,558 30,992 6,410 3,262 723 54 1,249 2,627 9,812 16 112,003 48,928 70,241 52,470 4,591 4161,909 9,294 41,762 31,025 6,517 3,311 729 64 1,149 2,752 9,796 23 108,717 48,328 66,775 50,301 4,615 4171,830 8,336 41,942 31,066 6,591 3,368 743 528 812 2,732 9,801 30 108,165 48,231 66,107 49,748 4,748 4212,003 7,927 42,058 31,093 6,650 3,398 743 103 ,320 2,751 9,842 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 loans 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

FEBRUARY 1963 BUSINESS LOANS OF BANKS 227 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (Net change in millions of dollars) Week Month Quarter Half year Industry 1963 1963 1962 1962 1962 J 3 a 0 n. J 2 a 3 n. Ja 1 n 6 . Ja 9 n. Ja 2 n. Jan. Dec. Nov. IV III 2nd 1st Durable goods manufacturing: Primary metals 20 -10 -2 1 -12 -3 -25 -49 -119 -74 -131 Machinery -8 -25 -8 2 -17 -56 17 14 -13 31 -50 19 89 Transportation equipment 3 -10 -11 -3 -31 -58 64 56 62 -15 27 47 96 Other fabricated metal products. .. 9 -15 -11 -3 8 -12 1 -19 -44 -48 50 -91 126 Other durable goods A -17 n -12 -9 -49 -92 -35 -158 140 112 -18 128 Nondurable goods manufacturing: Food, liquor, and tobacco -75 -14 -112 -4 -205 129 71 416 111 -152 528 -497 Textiles, apparel, and leather -16 8 -7 -33 -38 -64 -58 -275 96 42 -179 289 Petroleum refining -4 -11 -1 -3 -6 -24 11 14 31 12 -14 43 -67 Chemicals and rubber 11 -13 6 -30 -28 -4 39 25 -154 37 -129 76 Other nondurable goods , 3 -15 -3 -5 -16 -37 -12 -112 7 164 -105 174 Mining, including crude petroleum and natural gas -24 17 5 242 232 74 5 91 -25 66 178 Trade: Commodity dealers 28 19 Q -7 -14 19 -58 65 133 87 -161 220 -237 Other wholesale -11 -27 -19 -7 -108 31 11 60 63 52 123 34 Retail 3 -7 -38 -119 -169 -128 97 117 36 52 154 61 Transportation, communication, and other public utilities -37 -56 -157 -28 95 -183 197 61 346 309 -223 655 -510 Construction , -17 -11 -20 -28 9 -67 -27 -13 -46 29 164 -17 182 All other types of business, mainly services 49 -43 -18 -93 49 -57 209 87 283 127 290 205 Net change in classified loans 23 -315 -293 -353 116 -821 329 375 893 640 116 1533 196 Commercial and industrial changes— all weekly reporting banks -321 -325 -414 185 -871 486 390 1103 709 340 1812 434 NOTE.—Data for sample of about 200 banks reporting changes in their cent of those of all commercial banks. larger loans; these banks hold about 95 per cent of total commercial and End-of-week date shown. Figures for periods other than week are industrial loans of all weekly reporting member banks and about 70 per based on weekly changes. BANK RATES ON SHORT-TERM BUSINESS LOANS (Per cent per annum) Size of loan Size of loan Area All (thousands of dollars) Area All (thousands of dollars) pe a r n i d od loans 1 10— 100— 200 pe a r n i d od loans 1— 10— 100— 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.: i 19 large cities: New York City: 1961—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 Dec 4.78 5.61 5.33 5.12 4.68 1958 4.3 5.5 5.0 4.6 4.1 1959 5.0 5.8 5.5 5.2 4.9 7 northern and eastern cities: I960 5.2 6.0 5.7 5.4 5.0 1961—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 1962 5.0 5.9 5.5 5.2 4.8 June 5.00 5.83 5.52 5.21 4.86 Sept 5.00 5.87 5.51 5.20 4.87 Dec 5.05 5.85 5.55 5.23 4.92 Quarter:1 19 large cities: 11 southern and western cities: 1961—Dec 4.96 5.84 5.52 5.21 4.78 1961—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 5.88 5.53 5.25 4.84 June 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 Dec 5.02 5.88 5.55 5.28 4.85 Dec 5.33 6.01 5.68 5.41 5.10 l Based on new loans and renewals for first 15 days of month. per cent): 1954—Mar. 17, 3; 1955—Aug. 4, 3%; Oct. 14, 3V4; 1956— NOTE.—Weighted averages. For description see Mar. 1949 BULL., Apr. 13, 3%; Aug. 21, 4; 1957—Aug. 6, 4%; 1958—Jan. 22, 4; Apr. 21, pp. 228-37. Bank prime rate was 31/4 per cent Jan. 1,1954-Mar. 16,1954. 3%; Sept. 11, 4; 1959—May 18, 4%; Sept. 1, 5; and 1960—Aug. 23, 4%. Changes thereafter occurred on the following dates (new levels shown, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 INTEREST RATES FEBRUARY 1963 MONEY MARKET RATES (Per cent per annum) U. S. Government securities (taxable)3 Finance Prime CO. Prime coml. paper bankers' 3-month bills 6-month bills 9- to 12-month issues Period paper, placed accept- 4- to 6- directly, ances, 3- to 5months * m 3 o - n to th s 6 - 2 90 days * on R is 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 d k s ) et Other 4 iss y u e e a s r 5 1960 3.85 3 54 3 51 2.928 2.87 3.?47 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 1962 3.26 3.07 3.01 2.778 2.77 2.908 2.90 3.01 3 02 3.57 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 Aue 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 Dec 3.29 3.16 3.00 2.856 2.87 2.908 2.91 2.94 2.95 3.44 1963—Jan 3.34 3.18 3.07 2.914 2.91 2.962 2.96 3.00 2.97 3.47 Week ending— 1963 Jan 5 3.38 3.23 3.00 2.926 2.89 2.966 2.94 2.95 2.99 3.44 12 3.38 3.25 3.04 2.920 2.90 2.966 2.95 2.96 2 99 3.45 19 3.38 3.15 3.06 2.884 2.90 2.932 2.95 3.00 2.96 3.44 26 3.30 3.13 3 10 2.923 2.93 2.976 2 99 3 03 2 97 3 50 Feb 2 3.25 3.13 3.13 2.917 2.93 2.972 2.99 3.02 2.95 3.50 1 Averages of daily offering rates of dealers. * Certificates of indebtedness and selected note and bond issues. 2 Averages of daily rates, published by finance cos., for varying maturi- 5 Selected note and bond issues. ties in the 90-179 day range. 3 Except for new bill issues, yields are averages computed from daily closing bid prices. BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United imd local rating group price ratio price ratio ( S l t o a n te g s - Total i term) Total i Aaa Baa Aaa Baa In tr d i u al s- R ro a a i d l- P u u ti b li l t i y c fe P r r r e e - d C m o o m n - C m o o m n - 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 1962 3 95 3 30 3 03 3.67 4 61 4 33 5.02 4 47 4 86 4 51 4 50 3 37 1962 Tan . ... 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 M^ay 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 3.97 3.38 3.10 3.74 4.64 4.35 5.06 4.51 4.90 4.50 4.55 3.57 Sept 3.94 3.28 3.01 3.66 4.61 4.32 5.03 4.45 4.88 4.49 4.50 3.60 6.22 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 3.50 Dec .. 3.87 3.22 2.93 3.57 4.52 4.24 4.92 4.40 4.76 4.41 4.42 3.40 1963—Jan 3.88 3.22 2.95 3.56 4.49 4.21 4.91 4.38 4.72 4.38 4.34 3.31 Week ending— 1963—Jan. 5 3.87 3.22 2.94 3.57 4.51 4.22 4.93 4.40 4.73 4.39 4.40 3.41 12. 3.87 3.22 2.94 3.57 4.50 4.21 4.92 4.39 4.73 4.38 4.38 3.31 19 3.87 3.20 2.94 3.55 4.49 4.20 4.91 4.37 4.72 4.38 4 35 3 31 26 3.91 3.21 2.95 3.55 4.49 4.21 4.91 4.37 4.71 4.37 4.30 3.26 Feb. 2 3.90 3.23 2.97 3.57 4.48 4.21 4.90 4.37 4.70 4.38 4.28 3.25 4-11 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/orice 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 fohowsr 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

FEBRUARY 1963 SECURITY MARKETS 229 SECURITY PRICES Bonds Common stocks Vol- Standard and Poor's index Securities and Exchange Commission index ume (1941-43= 10) (1957-59= 100) of Cor- trad- Period G U o .S v . t. n M ici u p - al r p a o t - e Manufacturing Trade, (th in o g u- ( t l e o r n m g ) - g (h ra ig d h e - ) g (h ra ig d h e - ) Total d t I r u n i s a - - l R ro a a i d l- P u i l u t t i i b y c l - - Total Total r D ab u l - e N ra d o b u n l - e - p T t o r i a r o t n n a s - - P u i l u t t i i b y c l - - n s a a e i f c n n r i e v - d c - e, M in i g n- s s h a a o n r f d es s ) 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 1962.... 86.94 112.0 95.6 62.38 65.54 30.56 59.16 127. 118.0 116.5 119.4 97.8 167.2 155.0 98.0 3,820 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. 180.3 172.0 103.9 3,263 May 87.87 113.5 95.9 62.99 66.32 30.71 58.84 128.3 119.0 117.5 120.6 98.5 167.1 161.6 97.5 5,045 June 87.61 111.2 95.7 55.63 58.32 28.05 53.32 114.3 105.7 103.2 108. 90.2 151.1 141.3 88.3 4,770 July 86.07 110.2 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 62.90 30.47 57.69 122.8 114.0 110.7 117.3 97.2 162.0 145.4 97.7 4,803 Dec 87.96 113.0 96.6 62.64 65.59 32.24 60.24 128.0 119.1 114.0 123.8 102.3 167.9 151.8 101.5 4,048 1963—Jan 87.81 113.0 97.4 65.06 68.00 34.06 63.35 132.6 123.6 119.2 127.7 107.3 173.0 155.8 106.8 4,574 Week ending— 1963—Jan. 5 88.00 113.2 96.8 63.41 66.28 33. 61.65 130.6 121.8 117.2 126.1 106.4 170.3 153.5 104.2 4,484 12 88.01 113.7 96.8 64.60 67.49 34.17 63.01 132.2 123.3 118.9 127.4 107.2 171.8 156.3 106.0 4,779 19 87.99 113.5 97.7 65.06 67.99 33.86 63.41 133.0 123.8 119.4 127.9 106.9 174.5 155.8 107.3 4,761 26 87.50 112.5 97.7 65.60 68.58 34.13 63.81 134.5 125.3 121.1 129.4 108.7 175.5 157.7 109.6 4,663 Feb. 2 87.55 111.9 97.8 66.17 69.18 34.47 64.27 135.2 126.0 121.4 130.2 108.8 176.9 158.2 110.2 4,274 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. table 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-hour 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 Total N. Y. Stock Exchange brokers and dealers for pur- Money borrowed on— Customers' Month securities firms secured by— chasing and carrying— net other than free U. S. Govt. credit securities U s . e c S u . r G iti o e v s t. se O cu th ri e ti r es U s . e S cu . r G iti o e v s t. se O cu th ri e ti r es U s ec S u . r G iti o e v s t. se O cu th ri e ti r es balances 1959—Dec 4,461 150 3,280 r167 1 181 221 2 362 996 1960—Dec 4,415 95 3,222 '138 1,193 142 2,133 1,135 1961 Dec 5,602 35 4,259 125 1,343 48 2,954 1,219 1962 Jan . 5,464 34 4,111 111 J TSl 51 2,860 1,225 Feb 5,426 34 4,066 133 ,360 71 2,812 [,190 Mar . .. 5,457 34 4,083 105 ,374 52 2,912 1,154 Apr 5,491 36 4,079 117 ,412 57 3,015 110 May 5,408 35 4,000 91 ,408 44 2,845 ,205 June 4,938 32 3,605 92 ,333 46 2,194 1,374 July 4,876 29 3,562 83 ,314 32 2,091 1,252 Aug 5,073 23 3,773 80 ,300 35 2,472 ,130 Sept 5,156 27 3,887 81 .269 49 2,689 1,091 Oct 5,165 25 3,864 81 1,301 29 2,596 1,126 Nov 5,285 24 3,951 82 1,334 28 2,558 1,151 Dec 5,494 24 4,125 97 1,369 35 2,785 .216 1963—Jan. 95 1,387 32 2,895 ... 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 exchanges 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 member firms of national securities exchanges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 OPEN MARKET PAPER; SAVINGS INSTITUTIONS FEBRUARY 1963 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 Total t P hr la o c u e g d h P di la re c c e t d - Total Banks Others p i I o n m r to t - s p f E r o o x r m t - s Do ex ll - ar ship p p o e in d t s b i e n t — ween dealers 1 ly2 Total O bi w ll n s bo B u il g ls ht O ac w ct n . c F e o i o g r r n r - . U S n ta i t t e e s d U S n ta i t t e e s d change U S n ta i t t e e s d c F o o u r n e t i r g ie n s 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 3 1,911 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 K060 403 669 122 308 524 1961—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 Aug 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 Nov 7,070 2,501 4,569 2,476 1,086 841 245 38 88 1,264 525 719 173 145 914 Dec 5,961 2,088 3,873 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 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; place directly, $1,899. investors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— Mortgage loan End of period Mort- U.S. S a t n a d te C r o a r t p e o- a C s a se sh ts O as t s h e e ts r l T ia t o i b e t i s a li l - D i e t p s o 2 s- l O ia t t i b e h i s e li r - S c u o a r u c p n - lu ts s commitments 3 gage Other Govt. local and and govt. other i s a u c rp ct l s u . s 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 4 24,769 358 6,871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 1,170 1960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1961—Nov. 28,680 469 6,172 677 5,042 847 642 42,529 37,892 857 3,779 59,882 1,533 Dec. 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1962—Jan.. 29,145 455 6,245 669 5,064 837 655 43,071 38,446 845 3,780 68,614 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 1,940 July. 30,688 506 6,285 577 5,135 837 678 44,706 39,814 1,021 3,871 84,357 1,994 Aug. 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 Oct. 31,548 536 6,152 548 5,154 867 697 45,502 40,644 955 3,904 93,526 2,229 Nov. 31,820 586 6,133 542 5,181 832 683 45,776 40,791 1,025 3,960 99,616 2,323 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. 217. 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

FEBRUARY 1963 SAVINGS INSTITUTIONS 231 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a t l s Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks M ga o g r e t s - e R st e a a t l e P lo o a li n c s y O as t s h e e ts r Statement value: 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 1954 84,486 12,262 9,070 1,846 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 2,681 1,370 47,108 42,999 4,109 37,062 3,364 4,188 4,624 1959 113,650 11,581 6,868 3,200 1,513 49,666 45,105 4,561 39,197 3,651 4,618 4,937 1960 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961 126,816 11,896 6,134 3,888 ],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 ,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 ,665 51,063 46,967 4,086 41,815 3,796 5,233 5,980 1961— Nov 126,007 12,161 6,396 3,879 ,886 53,548 48,921 4,627 43,868 3,990 5,701 6,739 Dec 126,816 11,915 6,135 3,902 1,878 53,967 49,149 4,818 44,250 4,011 5,735 6,938 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 5,019 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 Oct 131,735 12,609 6,368 4,080 2,161 56,359 51,246 5,113 46,051 4,124 6,151 6,441 Nov 132,505 12,720 6,405 4,062 2,253 56,509 51,352 5,157 46,380 4,134 6,185 6,577 i Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item, separately, but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage End of assets 2— loan period M ga o g r e t s - s G U ec o . u S v r . t i . - Cash Other i lia T b o il t i a ti 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 ro an ce s s i s n Other co m m e m nt 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 I960., 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—Nov 68,069 5,177 2,850 4,801 80,897 69,340 5,293 2,445 1,558 2,261 2,028 Dec 68,833 5,222 3,298 4,743 82,096 70,851 5,721 2,863 1,547 1,114 1,908 1962—Jan 69,368 5,408 2,933 4,628 82,337 71,342 5,745 2,480 1,488 1,282 1,988 Feb 69,968 5,503 3,031 4,668 83,170 71,920 5,748 2,384 1,539 1,579 2,150 Mar.... 70,769 5,539 3,162 4,761 84,231 72,854 5,751 2,301 1,657 1,668 2,335 Apr.... 71,616 5,493 3,084 4,851 85,044 73,240 5,747 2,427 1,795 1,835 2,474 May.. 72,587 5,480 3,094 5,264 86,425 74,022 5,753 2,525 1,911 2,214 2,616 June.. 73,631 5,413 3,357 5,206 87,607 75,449 6,042 2,890 1,985 1,241 2,556 July... 74.525 5,459 2,963 5,012 87,959 75,467 6,047 2,979 2,010 1,456 2,551 Aug... 75,542 5,448 2,924 5,117 89,031 76,115 6,047 3,071 1,999 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 Oct.... 77,345 5,521 3,110 5,238 91,214 77,820 6,077 3,202 1,992 2,123 2,439 Nov... 78,137 5,556 3,234 5,448 92,375 78,728 6,081 3,173 1,941 2,452 2,431 1 Includes other loans, stock in the Federal home loan banks, other 3 Consists of advances from FHLB and other borrowing. investments, real estate owned and sold on contract, and office buildings and fixtures. NOTE.—Federal Savings and Loan Insurance Corp. data; figures are 2 Before 1958 mortgages are net of mortgage pledged shares. Asset estimates for all savings and loan assns. in the United States. Data items will not add to total assets, which include gross mortgages with no beginning with 1954 are based on monthly reports of insured assns. and deductions for mortgage pledged shares. Beginning with January 1958, annual reports of noninsured assns. Data before 1954 are based entirely no deduction is made for mortgage pledged shares. These have declined on annual reports. Data for current and preceding year are preliminary consistently in recent years and amounted to $42 million at the end of even when revised. 1957. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL FINANCE FEBRUARY 1963 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Derivation of U. S. Government cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net rects. Bu n d e g t et, T f 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 . : - i E r T e q c o u t t a s a . l l 2 s: Budget T f P u r l n u u d s s s : t m A L d e e n j s u t s s s : ^ t- E p T q a o u y t a t a s l l s . * pa o y r ts. C ( h d d a i e i n r n b e g t c e t a L I g n e e v b s n s e y . : s t & . N L c d e a e o s s b n s h t - : Eq N u e a t ls * & agen.) trust* Cal. year—1960 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 '24,260 '4,425 97,929 84,463 '24,689 '4,414 104,738 -6,809 6,791 -434 470 6,755 1962 84,709 25,508 3,942 106,230 91,908 24,456 4,414 111,949 -5,721 9,053 1,056 1,386 6,612 Fiscal year—1959... 67,915 16,950 3,161 81,660 80,342 18,462 4,002 94,804-13,144 9,656, -1,181 2,160 8,678 196@... 77,763 20,534 3,167 95,078 76,539 20,891 3,129 94,301 777 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... 81,409 24,325 3,789 101,887 87,787 24,109 4,185 107,711 -5,824 11,010 465 923 9,621 Half year: 1961—Jan.-June.. 42,330 13,442 2,497 53,249 41,298 12,533 2,990 50,840 2,408 -1,307 1,052 68 -2,426 July-Dec... 35,826 10.673 1,782 44,680 43,165 12,010 1,278 53,898 -9,217 8,098 -1,484 402 9,180 1962—Jan.-June. 45,583 13,652 2,007 57,207 44,622 12,099 2,907 53,814 3,393 '2,911 -1,950 521 440 July-Dec... 39,126 11,856 1,935 49,023 47,286 12,357 1,507 58,136 -9,114 6,142 -894 865 6,172 Month: 1961—Dec 7,967 1.484 577 8,868 7,160 1,934 519 8,576 292 -716 -860 114 30 1962-^Jan 5,357 866 250 5,968 7,395 2,322 991 8,726 -2,758 608 -737 102 1,243 Feb 6,729 2,743 -98 9,567 6,858 2,027 -82 8,967 600 450 366 31 53 Mar 9,104 1,828 245 10,685 7,749 2,040 1,525 8,263 2,422 -641 329 223 -1,193 Apr 5,754 1,587 279 7,060 7,289 1,867 83 9,074 -2,014 784 -737 39 1,482 May 7.024 4,053 222 10,850 7,229 1,591 -340 9,160 1,690 2,386 2,168 85 133 June 11,615 2,575 1,109 13,077 8,102 2,252 730 9,624 3,453 -674 564 41 -1,278 July 3,566 1,194 190 4,567 7,252 1,859 -203 9,314 -4,747 -62 -940 101 778 Aug 7,089 3,447 204 10,328 8,541 2,08: 46 10,577 -249 4,266 1,511 411 2,344 Sept 10,053 1,622 53: 11,140 7,327 2,36: 1,049 8,639 2,501 -2,309 -624 21 -1,706 Oct 3,030 1,377 253 4,150 8,524 2,197 573 10,14c -5,998 2,974 -353 121 3,206 Nov 7,027 2,531 265 9,289 8,070 2,04^ 95 10,021 -732 3,258 449 6 1,548 1,262 Dec 8,360 1,684 491 9,548 7,57:" 1.811 -53 9,436 112 -1,984 -936 6-1,337 289 Effects of operations on Treasurer's account Net operating transactions Net financing transactions ca C sh h a b n a g l e a n i c n es Tre (e a n s d u r o er f 's p e a r c io co d) unt Period Agencies & trusts Change Operating bal. s B d u u e r o f d p i r g c lu i e t s t f T u r n u d s s t a C c l c e o a u ri n n t g s i M ssu a o r a f k n e c t e in I G n v U o e v . s t t . S . . p d g d u i r i r e b o n e b l s c i t s c t T o r H u e t a e s s l i u d d r e y a T u cc r r e e o a r u ' s s n - t Balance b F a . n R ks . l T a o n a a d x n O as n t s h e e t e ts r sec. •• sec.-• accts. Fiscal year—1959. -12,427 -1,511 -29 71 1,112 8,363 -23 -4,399 5,350 535 3,744 1,071 1960. 1,224 -359 -149 1,023 -714 1,625 -4 2,654 8,005 504 6,458 1,043 1961. -3,856 565 285 -733 -435 2,640 -222 -1,311 6,694 408 5,453 833 1962. -6,378 213 566 658 -435 9,230 118 3,736 10,430 612 8,815 1,003 Half year: 1961—Jan.-June 1,032 906 266 -240 -710 -1,246 -274 283 6,694 408 5,453 833 July-Dec., -7,339 -1,338 -137 394 1,221 7,198 199 -200 6,494 465 5,157 872 1962—Jan.-June 962 1,551 703 263 -1,656 2,032 -81 3,935 10,430 612 8,815 1,003 July-Dec. -8,160 -502 -598 -62 1,135 5,269 4 -2,922 7,509 597 6,092 820 Month: 1961—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 -8% -62 1,293 6,919 403 5,568 948 -1,535 -279 10 -43 455 864 395 -924 5,995 569 4,150 1,276 M*ay!!!!! -205 2,461 -449 -21 -2,182 2,222 -319 2,145 8,140 526 6,623 991 June 3,513 320 -44 5 -642 -973 -111 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 3,966 -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 Nov -1,042 485 -440 3 -382 3,323 6 1,355 591 7,109 585 5,728 796 Dec 788 -127 -332 -42 626 -1,920 i-1,406 400 7,509 597 6,092 820 1 Primarily interest payments by Treasury to trust accounts and accumu- 5 Primarily military defense, military assistance, and atomic energy. ations to U. S. employees trust funds. 6 Includes $1,412 million of 2% percent Treasury bonds of 1960-65 2 Includes small adjustments not shown separately. acquired by Treasury for retirement on Dec. 15, 1962, in exchange for 3 Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing various issues on Nov. 15, 1962. accounts, and (4) Govt. sponsored enterprises. 4 Excludes net transactions of Govt. sponsored enterprises. NOTE.—Treasury Dept. & Bureau of the Budget. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FEDERAL FINANCE 233 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Selected excise taxes Budget receipts (IRS data) Transfers to trusts Indiv. taxes Period Net 2 O ag ld e - H w ig a h y - R ti r . r e e - R . . fu R n e d - s Total W he it ld h- Other C r t a a o t x i r o e p s n o- t c a 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 a o c - co 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 83,904 29,001 11,733 18.092 10,760 8,854 5,464 3,002 1,807 4,315 1960 77,763 10,122 2,539 607 5,237 96,962 31,675 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... 81,409 11,545 2,949 564 6,266 103,81836,246 14,403 21,296 12,752 12,708 6,412 3,341 2,026 5,536 Half year: 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 45,583 6,802 1,415 288 5,380 60,24318,593 11,213 13,036 6,358 7,686 3,357 1,587 991 2,880 July-Dec 39,126 5,311 1,672 291 805 47,55318,958 3,319 8,810 6,808 5,608 4,050 n.a. n.a. n.a. Month: 1961—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 82 101 10,658 5,287 955 469 1,157 2,266 524 305 169 1,356 June 11,615 1,001 233 51 233 13,346 3,024 1,985 5,377 1,126 1,054 780 311 192 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 1,509 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 1,150 551 516 363 190 n.a. Nov 7,027 1,129 218 77 73 8,533 5,195 117 412 1,125 1,208 478 339 182 n.a. Dec 8,360 600 277 51 64 9,553 3,131 407 3,450 1,136 652 780 n,a. Budget expenditures Period Total 2 f t e i N d o n e n a s - - e a 5 l a I ff n a t i l r . s s S e p r a e a r - c c e h c A ul g tu ri r - e so N u u r r e a r a - c t l - es t m C r a a e o n n r m d s c p e - . & H de i o c n b u o g e s m l - . . l H w ab e e a l o f l r 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 a v 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 I960.. 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.. 87,787 51,103 2,817 1,257 5,895 2,147 2,774 349 4,524 1,076 5.403 9,198 1,875 Half year: 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 23,980 1,634 482 3,567 1,179 1,262 346 2,397 462 2,725 4,502 938 1962—Jan.-June. 44,622 27,123 1,183 775 2,328 968 1,512 3 2,127 614 2,678 4,696 937 July-Dec.. 47,286 25,953 1,317 1,024 4,590 1,331 1,339 364 2,556 578 2,663 4,936 979 Month: 1961—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 1 186 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 8,102 5,036 314 142 396 209 308 -90 492 109 397 831 168 July 7,252 3,954 95 135 664 191 156 190 460 84 442 834 138 Aug 8,541 4,448 276 187 1,126 247 300 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 Nov 8,070 4,566 327 187 531 219 212 72 470 79 443 814 156 Dec 7,572 4,344 57 187 721 175 215 121 409 98 445 843 158 1961 1962 1961 1962 Item II III IV III IV III IV II III IV Seasonally adjusted Not seasonally adjusted Cash budget: Receipts. .. 23.3 24.6 24.9 25.3 24.6 26.8 27.6 27.3 24.8 28.5 23.4 21.3 26.2 31.0 26.0 23.0 Payments.. 25.1 26.5 26.2 26.9 27.8 26.8 28.0 29.3 23.4 27.4 26.7 27.2 26.0 27.7 28.5 29.6 Net -1 .8 -1. 9 -1 .4 -1.6 -3.2 - .3 -2.0 1.4 1.1 -3. 3 -5 .9 3 3.2 -2 .5 -6.6 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 U.S. GOVERNMENT SECURITIES FEBRUARY 1963 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues3 Total Total Marketable Nonmarketable End of period gross gross Con- Special debt i d d e ir b e t c 2 t Total Total Bills C c e a r t t e if s i- Notes Bonds 4 b v i o b e n r le d t- s Total 5 S in a g v s - issues 6 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 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 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 42.8 297.4 297.0 251.2 198.1 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 Aus 302.3 301.8 252.5 199.3 43.6 20.4 58.1 77.2 4.2 49.0 47.7 45.4 Sent 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 Dec 304.0 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Jan 303.9 303.4 257.1 204.0 48.9 22.7 53.7 78.6 4.0 49.2 47.7 42.2 1 Includes some debt not subject to statutory debt limitation (amounting leave bonds, adjusted service bonds, certificates of indebtedness—Foreign to $371 million on Jan. 31, 1963), and fully guaranteed securities, not series, and Rural Electrification Administration bonds, and before 1956, shown separately. tax and savings notes, not shown separately. 2 Includes non-interest-bearing debt, not shown separately. 6 Held only by U. S. Govt. agencies and trust funds. 3 Includes amounts held by U. S. Govt. agencies and trust funds, which 7 Includes $1.4 billion of 2% per cent partially tax-exempt bonds, totaled $12,146 million on Dec. 31, 1962. acquired by Treasury for retirement on Dec. 15, 1962, in exchange for 4 Includes Treasury bonds and minor amounts of Panama Canal and various issues on Nov. 15, 1962. postal savings bonds. 5 Includes Series A investment bonds, depositary bonds, armed forces 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 io 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 n a a o n s n m u c ie e r - - s r c O a o t t r i h o p e n o r - s g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o t n e e n d i r g a - l n 3 O i t m n o t v r i h s s e e c s 4 r . funds ! bonds securities 1941_Dec 64.3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945—Dec 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947_Dec 257.0 34.4 22.6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 1954—Dec 278.8 49.6 24.9 204.2 69.2 8.8 15.3 19.2 14.4 50.0 13.5 6.3 7.6 1955—Dec 280.8 51.7 24.8 204.3 62.0 8.5 14.6 23.5 15.4 50.2 14.5 7.5 8.1 1956—Dec 276.7 54.0 24.9 197.8 59.5 8.0 13.2 19.1 16.3 50.1 15.4 7.8 8.4 1957—Dec 275.0 55.2 24.2 195.5 59.5 7.6 12.5 18.6 16.6 48.2 15.8 7.6 9.0 1958—Dec 283.0 54.4 26.3 202.3 67.5 7.3 12.7 18.8 16.5 47.7 15.3 7.7 8.9 1959—Dec 290.9 53.7 26.6 210.6 60.3 6.9 12.5 22.6 18.0 45.9 22.3 12.0 10.1 1960—Dec 290.4 55.1 27.4 207.9 62.1 6.3 11.9 19.7 18.7 45.7 19.3 13.0 11.2 1961—Dec 296.5 54.5 28.9 213.1 67.2 6.1 11.4 19.4 18.7 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 Apr 297.4 53.7 29.2 214.4 65.3 6.3 11.5 20.4 19.6 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 '19.8 19.9 46.7 '18.9 14.2 11.3 Aug 302.3 57.1 30.4 214.9 64.5 6.3 11.5 '20.9 19.9 46.8 '18.9 14.6 11.5 Sept 300.0 56.4 29.8 213.7 64.6 6.3 11.4 '18.8 19.8 46.8 '19.1 15.0 11.9 Oct 302.6 56.1 30.2 216.3 65.9 6.1 11.5 r19.8 19.6 46.8 '18.9 15.4 12.3 Nov 305.9 57.9 30.5 217.5 65.4 6.1 11.5 '21.7 19.3 46.9 '18.9 15.4 12.2 Dec 304.0 55.6 30.8 217.6 66.5 6.1 11.5 20.3 19.6 46.9 18.7 15.3 12.7 1 Includes the Postal Savings System. 4 Includes savings and loan assns., dealers and brokers, nonprofit 2 Includes holdings by banks in territories and insular possessions, institutions, and corporate pension funds. which 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. Govt. agencies and in the United States. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 U. S. GOVERNMENT SECURITIES 235 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 1959—Dec. 31 188,269 78,456 39,643 38,813 61,609 23,625 16,494 8,085 I960—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—Nov. 30 1 204,221 88,580 47,843 40,737 61,614 31,140 7,342 15,545 Dec 31 203,011 87,284 48,250 39,034 61,640 33,983 4,565 15,539 U. S. Govt. agencies and trust funds: 1959—Dec. 31 7,394 1,037 260 111 1,909 1,882 1,917 650 I960—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—Nov. 30 Ul,233 3,190 1,050 2,139 1,426 2,603 1,437 2,578 Dec 31 9,638 1,591 865 726 1,425 2,731 1,309 2,583 Federal Reserve Banks: 1959—Dec. 31 26,648 18,654 2,626 16,028 6,524 677 765 28 I960—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—Nov. 30 30,454 17,521 2,445 15,076 10,740 1,967 147 78 Dec. 31 30,820 17,741 2,723 15,018 10,834 2,094 68 83 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—Nov. 30 162,534 67,869 44,348 23,521 49,448 26,570 5,758 12,889 Dec. 31 162,553 67,952 44,662 23,290 49,381 29,158 3,188 12,873 Commercial banks: 1959—Dec 31 51,841 11,198 5,011 6,187 28,778 9,235 2,173 457 I960—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 Nov. 30 56,976 18,487 8,404 10,083 26,753 10,945 348 443 Dec. 31 58,004 19,885 9,838 10,047 26,348 11,163 191 417 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 5,867 686 181 505 1,514 1,708 662 1,298 1962 Nov 30 5,822 632 234 398 1,397 2,089 393 1,311 Dec. 31 5,793 635 252 383 1,337 2,210 306 1,305 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 2,044 1961—Dec. 31 9,020 1,228 442 786 2,222 1,625 1,274 2,671 1962 Nov 30 9,319 1,307 577 730 2,212 1,956 946 2,898 Dec 31 .. 9,265 1,259 552 707 2,175 2,223 718 2,890 Nonfinancial corporations: 2 1959—Dec. 31 I960—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—Nov. 30 11,340 9,619 7,076 2,543 1,510 170 17 24 Dec 31 10,750 9,063 6,551 2,512 1,524 149 5 9 Savings and loan associations: 2 1959—Dec. 31 I960—Dec. 31 2 454 322 163 159 858 473 396 406 1961—Dec. 31 2,760 446 155 291 895 617 371 431 1962—Nov. 30 2 870 331 170 161 857 999 203 480 Dec 31 2,862 437 254 183 817 1,030 105 473 State and local governments: 3 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—Nov. 30 11,443 4,182 2,992 1,190 1,039 1,263 933 4,026 Dec. 31 11,716 4,447 3,282 1,165 1,059 1,505 688 4,017 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—Nov. 30 64,762 33,311 24,896 8,415 15,679 9,148 2,918 3,707 Dec. 31 64,162 32,227 23,935 8,292 16,121 10,877 1,175 3,761 1 Includes $1,412 of 2% per cent partially tax exempt bonds, acquired but for other groups are based on Treasury Survey data. Of total marby Treasury for retirement Dec. 15, 1962, in exchange for various issues ketable issues held by groups, the proportion held on latest date and the on Nov. 15, 1962. number of reporting owners surveyed were: (1) about 90 per cent by the 2 First reported separately in the Feb. 1960 Survey. Monthly figures 6,159 commercial banks, 508 mutual savings banks, and 812 insurance for Feb.-May 1960 shown in the Sept. 1960 Treasury Bull. pp. 55-56. cos. combined; (2) about 50 per cent by the 473 nonfinancial corps, and 3 First reported separately in the Dec. 1961 Survey. Monthly figures 488 savings and loan assns.; and (3) about 60 per cent by 480 State and for Dec. 1960-Sept. 1961 shown in the Feb. 1962 Treasury Bull, pp. 59-60. local govts. Holdings of "all others," a residual throughout, include holdings of NOTE.—Direct public issues only. Based on Treasury Survey of all those not reporting in the Treasury Survey, including investor groups Ownership. not listed separately. Data complete for U. S. Govt. agencies and trust funds and F. R. Banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 IT. S. GOVERNMENT SECURITIES FEBRUARY 1963 DEALER TRANSACTIONS (Par value, in millions of dollars) U. S. Government securities By maturity By type of customer U.S. Govt Period Dealers and brokers se a c g u e r n i c ti y es Tota 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 m c k ia s - l o A th l e l r Govt. Other securities 1961—Dec 1,653 1,328 228 45 52 540 29 698 386 69 1962—Jan 1,717 1,478 149 64 26 538 25 716 438 98 Feb 1,970 1,520 295 95 60 565 36 832 537 83 Mar 1,675 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 June.... 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 Nov 1,770 1,266 262 210 33 550 32 722 466 70 Dec 2,071 1,446 366 222 38 610 38 881 543 88 Week ending— 1962—Dec. 5. 1,750 1,292 272 156 30 554 22 758 416 71 12. 1,833 1,160 410 232 32 580 40 746 467 66 19. 1,808 1,154 382 218 54 482 37 847 443 105 26, 2,203 1,540 390 234 38 701 40 969 494 81 Week ending— 1963—Jan. 2. 3,061 2,471 299 269 21 864 47 1,179 971 116 9. 1,862 1,445 236 132 49 621 34 702 505 70 16. 2,094 1,673 262 118 40 638 47 876 534 80 23. 1,636 1,265 230 104 37 559 25 632 420 124 30. 1,438 1,163 163 81 23 484 36 534 384 55 NOTE.—The transactions data combine market purchases and sales of ties under repurchase agreements, reverse repurchase (resale), or similar U. S. Govt. securities dealers reporting to the F. R. Bank of N. Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of and exchanges for new U S. Govt. securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi- DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars U. S. Government securities, by maturity U. S. Commercial banks Period mat A ur l i l ties W 1 i y th ea in r y 1 e - a 5 rs 5 A y f e te a r rs se a G c g u e o r n v i c t t i . y es Period so A ur l c l es Y N C o e it r w y k w E h ls e e r - e C t o io rp n o s r i a- o A th l e l r 1961 -Dec 2,939 2,655 260 23 86 1961—Dec 3,088 725 744 ,345 275 1962—Jan 2,778 2,589 184 5 93 Feb . - 2,265 1,914 297 54 115 1962—Jan 2,740 482 596 ,341 320 Mar. 3.056 2,721 228 106 168 Feb 2,296 426 449 ,218 203 Apr . 3.771 3,388 252 131 193 Mar 3,025 855 637 1.299 235 May. 3.642 2,985 403 255 196 Apr 3,621 976 835 ,354 456 June. 3.777 3,398 261 118 293 May 3,738 978 769 1,612 379 Julv . 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 Nov.. 4.013 3,309 447 256 204 Oct 3,528 1,074 707 1,301 445 Dec. 4,268 3,829 365 74 215 Nov 4,100 1,170 716 1,666 548 Dec 4,378 1,563 839 1,566 411 Week ending— Week ending— 1962—Nov. 7.. 3,734 2,788 561 385 200 14.. 4,223 3,392 518 314 209 1962—Nov. 7... 4,125 1,429 698 1,415 584 21.. 4,070 3,364 452 254 206 14... 4,015 1,083 616 1,682 634 28.. 4,055 3,555 344 157 202 21... 4,194 1,175 827 1,713 479 28... 4,071 998 758 1,820 495 Week ending— Week ending— Dec. 5. . 4,035 3,680 272 83 199 12.. 3,899 3,575 265 60 180 Dec. 5... 4,055 1,215 569 1,756 514 19.. 4,367 3,946 361 60 193 12... 3,842 897 608 1,897 441 26.. 4,511 4,001 423 87 288 19... 4,519 1,782 914 1,503 318 26... 4,560 1,905 961 1,334 360 NOTE.—lit figures include all securities sold by dealers under repurchase* contrai ts regardless of the maturity date of the contract unless the 1 All business corps, except commercial banks and insurance cos. contract is matchet t y a reverse repurchase (resale) agreement or delayed delivery sale with h< same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Iiclud<d in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent iny- stments by the holders of the securities rather than note of the opposite table on this page. dealer tradin; positions. A verag-es of a ail> f gures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FEDERAL FINANCE; SECURITY ISSUES 237 U. S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, OUTSTANDING JANUARY 31,1963 (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. Feb. 7,1963. 2,101 July 25, 1963 800 Apr. 1,1965 IV 466 Sept. 15, 1967-72...2% 1,952 Feb. 14,1963. 2,106 Aug. 1,1963 800 May 15, 1965 4* 2,113 Nov. 15, 1967 3% 3,604 Feb. 21, 1963. 2,100 Oct. 15, 1963 2,500 Oct. 1,1965 IV 315 Dec. 15, 1967-72...2V4 2,800 Feb. 28,1963. 2,101 Jan. 15, 1964 2,496 Nov. 15, 1965 3V 3,286 May 15, 1968 3% 2,460 M M M a a a r r r . . . 2 1 7 4 1 , , , 1 1 1 9 9 9 6 6 6 3 3 3 . . . 2 2 2 , , , 1 1 0 0 0 0 1 1 1 Ce F rt e if b i . c a 1 te 5 s , 1963 3# 5,719 A F A e u p b g r . . . 1 1 1 5 5 , , , 1 1 1 9 9 9 6 6 6 6 6 6 3 \ * \ 4 3 , , 4 1 6 1 5 7 4 4 5 O A Fe u c b g t . . . 1 15 1 5 , , , 1 1 1 9 9 9 6 6 6 9 9 8 3y 4 4 4 2 1 1 , , , 2 5 8 5 4 3 8 4 8 M A A M p p a a r r r r . . . . 2 2 1 2 4 8 1 , , , , 1 1 1 1 9 9 9 9 6 6 6 6 3 3 3 3 1 . . . 2 2 2 3 , , , , 0 0 0 0 0 0 0 0 1 9 2 5 A M N u o a g v y . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 6 6 6 3 3 3 3 3 3 % % H 6 4 5 , , , 8 8 2 5 5 8 1 6 4 A O A O u p c c g t t r . . . . 1 1 1 1 5 , , , , 1 1 1 1 9 9 9 9 6 6 6 6 7 6 7 7 I I I 3 V V V } 5,2 2 3 8 7 5 5 0 7 2 7 N A A Fe o u u b g v g . . . . 1 1 1 1 5 5 5 5 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 2 1 1 2 3% 4 4 4 2 2 2 1 , , , , 8 5 3 2 0 7 4 4 6 9 4 6 Apr. 15, 1963. 2,001 Nov. 15, 1974 3% 1,171 Apr. 18, 1963. 2,001 Treasury notes May 15, 1975-85...4% 470 Apr. 25, 1963. 2,002 Feb. 15, 1963 2% 1,487 Treasury bonds June 15, 1978-83... 3# 1,592 May 2,1963. 2,001 Feb. 15, 1963 3V4 2,259 June 15, 1962-tf7...2Vi 1,462 Feb. 15, 1980 4 1,480 May 9,1963. 702 Apr. 1,1963 IK 533 Aug. 15, 1963 2Vi 4,317 Nov. 15, 1980 3% 1,915 May 16,1963. 701 May 15,1963 4 1,183 J3ec. 15, 1963-68... 2Vi 1,816 May 15, 1985 3% 1,131 May 23, 1963. 800 May 15, 1963 3*4 3,027 Feb. 15, 1964 3 2,700 Feb. 15,1990 3V4 4,914 May 31, 1963. 801 Oct. 1,1963 \Vi 506 June 15, 1964-69...2Vi 2,633 Aug. 15, 1987-92... A\k 365 June 6, 1963. 801 Nov. 15, 1963 4% 3,011 Dec. 15, 1964-69...2V4 2,544 Feb. 15, 1988-93 4 250 June 13,1963. 801 Apr. 1,1964 IVi 457 Feb. 15, 1965 2% 4,682 Feb. 15, 1995 3 2,601 June 20,1963. 800 May 15, 1964 4*4 4,933 Mar. 15, 1965-70...2Vi 2,423 Nov. 15, 1998 3Vi 4,460 J J u u l n y e 2 5 7 , , 1 1 9 9 6 6 3 3 . . 8 80 0 1 2 A M u a g y . 1 1 5 5 , , 1 1 9 9 6 6 4 4 l*/ 5 A 2 3 , , 3 8 1 9 6 3 A M u a g y . 1 1 5 5 , , 1 1 9 9 6 6 6 6 ZVA 3 3 1 , ,4 5 8 9 4 7 J J u u l l y y 1 1 5 1 , , 1 1 9 9 6 6 3 3 . . 2,0 8 0 0 4 0 A O u ct g . . 15 1 , , 1 1 9 9 6 6 4 4 3 V V A 4 5,0 4 1 9 9 0 N M o a v r . . 1 1 5 5 , , 1 1 9 9 6 6 6 6 -71.. .2 3 ^ % 2 2 1 , , 4 41 3 1 8 Co I n n v v e e r s t t i m bl e e n b t o S n e d r s ies B July 18, 1963. 800 Nov. 15, 1964 4% 4,195 June 15, 1967-72...2Vi 1,325 Apr. 1, 1975-80... 2% 3,957 * Tax anticipation series. NOTE.—Direct public issues only. Based on Daily Statement of 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- PHAi 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* ered* Total c E a d ti u o - n R br a o i n d a d g d e s s i U tie ti s l - « 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 1955 5,976 3,770 1,730 474 2 1,408 1,097 3,472 5,911 1,516 1*362 *881 570 169 \A\A 1956 5 446 3,577 1 626 199 44 800 983 3 664 5 383 1 455 698 [ 399 258 110 I 454 1957 • 6,925 4,792 1,967 66 99 1,489 1,272 4,163 6,568 6,874 2,524 1,036 I',516 113 333 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 ,6^7 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 ,683 I960 7,302 4,677 2,097 403 125 1,110 1,985 4,206 7,112 7 257 2 411 1 007 I 318 425 201 I 894 1961 8,562 5,721 2,406 315 120 1,928 2,164 4,470 8,298 8,460 2,821 1,167 .700 385 478 909 1961—Oct 680 516 150 15 225 76 378 716 678 193 58 125 30 65 208 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 M!ay .. 934 668 256 10 206 230 498 896 910 348 31 233 58 241 June.... 789 554 206 29 173 163 453 841 784 326 67 128 * 100 164 July 649 404 236 9 34 179 436 841 611 190 62 146 213 Auc . .. 562 250 200 106 6 62 184 317 640 543 127 33 151 106 126 Sept.. . . 434 343 68 23 60 54 320 558 422 172 31 85 7 127 Oct 638 371 252 15 150 232 256 412 627 203 12 132 280 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. * Beginning with 1957, coverage is considerably broader than earlier. 7 Includes urban redevelopment loans. * 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 * 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

238 SECURITY ISSUES FEBRUARY 1963 NEW SECURITY ISSUES (In millions of dollars) Gross proceeds, all issues 1 Prop a o l s l e c d o r u p s o e r o a f te n i e s t s u p e r s o c 5 eeds, 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 4 Total Total o P f l f i u c e b r ly e - d p v l P a a t r c e i- e ly d fe P r r r e e - d C m o o m n - Total Total m N on ew ey6 O p p o t u h s r e e - s r s ri e t o c i f e u s - 1954.. . . 29,765 12,532 458 6,969 289 9,516 1,488 4,003 3,484 816 1,213 9,365 7,490 6,780 709 1,875 1955 26,772 9,628 746 5,977 182 10,240 ,4^0 4,119 3,301 635 2,185 10,049 8,821 7,957 864 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 9,663 721 364 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 11,784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 q,653 6,332 3,320 571 1,334 11,372 10,823 9,907 915 549 1959 31,074 12,322 707 7,681 616 9,748 l 3,557 3,632 531 2,027 9,527 9,392 8,578 814 135 I960 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 9,653 8,758 895 271 1961 35,494 12,253 1,448 8,345 302 13,147 9,425 4,706 4,720 449 3,273 12,874 11,979 10,829 1,150 895 1961—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 7?8 497 232 9 146 866 859 792 67 7 Mar. 1,877 372 621 38 847 638 386 253 5 204 823 807 709 97 16 Apr.. 4,075 1,506 461 877 14 1,217 881 654 227 120 216 1,185 1,113 1,033 80 72 May. 2,149 352 897 99 801 667 247 420 14 120 785 760 621 139 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 32 621 582 504 78 39 Aug.. 4,056 2,408 150 559 17 922 840 All 363 24 58 907 749 620 129 159 Sept. 1,568 300 175 426 34 632 472 176 295 51 110 618 579 441 138 39 Oct.. 2,199 359 646 157 1,037 540 372 49 77 1,021 ooo 795 93 134 Nov. 1,857 327 595 112 824 772 295 All 24 28 815 737 525 213 78 :Proposed usas of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Publicutility Communication a R nd e a f l i n e a s n ta c t i e al Period Retire- Retire- Retire- Retire- Retire- Retire- New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 securities rities rities rities rities rities 1954 2,044 190 831 93 501 ?70 ?,675 990 651 60 788 273 1955 . 2,397 533 769 51 544 338 ,254 174 1,045 77 1,812 56 1956 ... . 3,336 243 682 51 694 20 2,474 14 1,384 21 1,815 17 1957 4,104 49 579 29 802 14 ,821 51 1,441 4 1,701 67 1958 3,265 195 867 13 778 38 ,605 138 1,294 118 1,014 47 1959 1,941 70 812 28 942 15 3,189 15 707 * 1,801 6 1960 .. 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961 3,708 306 1,095 46 680 26 ,892 104 1,427 378 2,176 36 1961—Nov.. 215 10 61 56 362 80 174 2 Dec.. 306 18 151 7 32 1 168 40 42 302 6 1962 Jan 205 14 99 23 1 89 24 73 102 1 Feb.. 131 2 52 * 45 * 148 4 362 122 1 Mar 318 2 75 2 74 * 193 21 126 10 Apr.. 384 67 103 3 28 377 88 * 134 1 May. 270 5 100 1 38 198 16 64 91 3 June. 342 14 90 4 48 * 410 56 79 163 7 Julv 217 31 28 24 118 4 88 4 107 Aug.. 218 4 47 7 71 110 142 120 2 183 3 Sept.. 166 21 56 1 54 148 14 67 2 88 1 Oct.. 170 19 48 1 27 141 108 257 246 5 Nov.. 266 4 53 2 32 15 193 53 3 * 189 3 1 Gross proceeds are derived by multiplying principal amounts or 6 For plant and equipment and working capital. number of units by offering price. 7 Beginning with 1957 this figure differs from that shown on the previ- 2 Includes guaranteed issues. ous page because this one is based on Bond Buyer data. 3 Issues not guaranteed. 8 AH issues other than those for retirement of securities. * Foreign governments, International Bank for Reconstruction and Development, and domestic nonprofit organizations. NOTE.—Securities and Exchange Commission estimates of new issues 5 Estimated gross proceeds less cost of flotation. maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 BUSINESS FINANCE 239 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1961 1962 Industry 1957 1958 1959 1960 1961 I II HI rv I II III Manufacturing Total (180 corps.): Sales 114,229105,134118,423123,126122,632 28,651 31,233 29,541 33,207 33,291 34,602 31,986 Profits before taxes 13,349 10,466 14,090 13,463 13,293 2,693 3,478 2,961 4,161 3,908 4,096 3,241 Profits after taxes 7,177 5,714 7,440 7,121 7,180 1,436 1,838 1,618 2,288 2,033 2,096 1,710 4,192 4,078 4,342 4,464 4,710 1,103 1,111 1,117 1,380 1,154 1,158 1,163 Nondurable goods industries (79 corps.):1 Sales 41,704 41,541 45,442 47,277 49,226 11,831 12,133 12,205 13,056 12,793 12,984 12,999 Profits before taxes 5,010 4,402 5,648 5,570 5,659 1,324 1,385 1,406 1,545 1,461 1,501 1,515 Profits after taxes 2,944 2,574 3,210 3,210 3,246 757 772 796 921 816 815 835 1,776 1,785 1,912 1,953 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 16,820 19,100 17,336 20 151 20 499 21 619 18 987 Profits before taxes 8,339 6,065 8,442 7,893 7,634 1,368 2,094 1,555 2,616 2,447 2,595 1,726 Profits after taxes.» 4,233 3,140 4,231 3,911 3,935 679 1,066 822 1,367 1,217 1,282 874 Dividends 2,416 2,294 2,430 2,510 2,674 618 625 629 803 642 644 647 Selected industries: Foods and kindred products (25 corps.): Sales 9,987 10,707 11,303 11,901 12,578 3,021 3,154 3,233 3,169 3,231 3,267 3,331 1,024 1,152 1,274 1,328 1 424 319 360 379 365 336 355 379 Profits after taxes 497 555 604 631 672 150 170 179 174 160 167 181 289 312 344 367 392 95 96 99 101 103 103 104 Chemicals and allied products (21 corps.): Sales 10,669 10,390 11,979 12,411 12,788 2,979 3,250 3,210 3,348 3,372 3,567 3,467 1,823 1,538 2,187 2,010 2,015 438 514 499 564 545 586 571 Profits after taxes 948 829 1,131 1,061 1 063 229 267 260 306 279 297 294 Dividends 737 111 799 795 843 193 189 191 270 198 196 199 Petroleum refining (16 corps.): Sales 13,463 12,838 13,372 13,815 14,409 3,488 3,398 3,424 4,100 3,771 3,612 3,730 1,325 919 1,187 1,267 1,255 354 270 292 339 343 300 336 Profits after taxes 1,075 791 969 1,026 1 011 272 214 243 283 262 227 251 Dividends 512 516 518 521 528 129 134 131 133 139 142 141 Primary metals and products (35 corps.): Sales 22,468 19,226 21,035 20,898 20,155 4,396 5,189 5,235 5,335 5,733 5,535 4,978 Profits before taxes 2,977 2,182 2,331 2,215 2,020 309 560 550 602 620 505 367 1,540 1,154 1,222 1,170 1 090 166 295 299 329 320 269 194 Dividends . ... 873 802 831 840 844 207 208 208 221 209 210 209 Machinery (25 corps.): Sales ... 15,115 14,685 17,095 16,826 17,531 4,137 4,367 4,295 4,732 4,537 4,916 4,647 1,457 1,463 1,890 1,499 1,675 362 398 384 530 454 490 436 Profits after taxes 729 734 934 763 837 178 202 191 267 225 240 221 416 422 448 482 497 121 125 124 128 129 129 132 Automobiles and equipment (14 corps.): Sales 23,453 18,469 22,731 25,738 22,781 5,293 6,309 4,604 6,577 6,904 7,515 5,708 Profits before taxes 2,701 1,332 2,985 3,185 2,788 478 840 319 1,151 1,096 1,253 589 1,354 706 1,479 1,527 1 408 223 417 173 596 531 596 287 Dividends 805 758 807 833 967 205 207 207 348 215 216 216 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 2,332 1,058 843 845 648 625 27 137 184 278 133 186 Profits after taxes 737 602 578 445 382 — 12 74 122 200 66 105 438 419 406 385 356 86 91 67 112 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 1,413 1,519 1,655 1,793 1,894 523 447 447 477 585 472 488 Dividends 1,069 1,134 1,219 1,307 1,375 343 344 335 353 366 371 356 Telephone: 6,467 6,939 7,572 8,111 8,615 2,090 2,139 2,156 2,230 2,245 2,296 2,300 1,562 1,860 2,153 2,326 2,478 587 614 620 657 648 678 683 788 921 1,073 1,155 1,233 290 307 310 326 320 335 337 Dividends 613 674 743 806 867 210 214 218 225 231 232 235 * 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 tho 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 sec 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

240 BUSINESS FINANCE FEBRUARY 1963 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 change change 1956 44.7 21.2 23.5 12.1 11.3 1957 43.2 20.9 22.3 12.6 9.7 1958 37.4 18.6 18.8 12.4 6.4 1954 11,694 5,629 6,065 7,832 4,033 3,799 3,862 1,596 2,265 1959 47.7 23.2 24.5 13.7 10.8 1955 12,474 5,599 6,875 7,571 3,383 4,188 4,903 2,216 2,687 1956 13,201 5,038 8,162 7,934 3,203 4,731 5,267 1,836 3,432 1960 45.4 22.4 23.0 14.4 8.6 1957 14,350 3,609 10,741 9,638 2,584 7,053 4,712 1,024 3,688 1961 , 45.6 22.3 23.3 15.0 8.3 1958 14,761 5,296 9,465 9,673 3,817 5,856 5,088 1,479 3,609 19621 50.9 24.8 26.0 15.9 10.1 1959 12,855 4,858 7,998 7,125 3,049 4,076 5,730 1,809 3,922 1960—III. 46.5 22.6 23.9 14.1 9.8 1960 12,958 4,760 8,198 8,044 3,010 5,034 4,914 1,751 3,164 IV. 45.3 22.0 23.3 14.2 9.0 1961 16,745 6,967 9,778 9,205 4,090 5,114 7,540 2,876 4,664 1961—1... 39.8 19.4 20.3 14.7 5.6 1961—III. 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 III.. 46.3 22.6 23.7 14.9 8.7 IV.. 51.4 25.1 26.3 15.5 10.8 1962—1.. 3,226 1,406 1,820 1,668 730 938 1,558 676 882 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 III. 2,744 1,634 1,110 1,816 1,082 734 928 552 376 II.. 50.9 24.9 26.1 15.8 10.3 III. 51.1 24.9 26.1 15.8 10.3 NOTE.—Securities and Exchange Commission estimates reflect cash transactions only. Unlike data shown on p. 238 new issues exclude foreign and include offerings of open-end 1 Preliminary estimates by Council of Economic investment cos., sales of securities held by affiliated cos., special offerings to employees, Advisers. and also new stock issues and cash proceeds connected with conversions of bonds into NOTE.—Dept. of Commerce estimates. Quarterly data stocks. Retirements include similar issues, and also securities retired with internal funds are at seasonally adjusted annual rates. or with proceeds of issues for that purpose shown on p. 238. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . - I t n o v ri e e n s - Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt. i Govt.i 1954 94.9 194.6 33.4 19.2 2.4 71.2 65.3 3.1 99.7 2.4 59.3 15.5 22.5 1955 103.0 224.0 34.6 23.5 2.3 86.6 72.8 4.2 121.0 2.3 73.8 19.3 25.7 1956 107.4 237.9 34.8 19.1 2.6 95.1 80.4 5.9 130.5 2.4 81.5 17.6 29.0 1957 111.6 244.7 34.9 18.6 2.8 99.4 82.2 6.7 133.1 2.3 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 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 1.8 103.1 13.5 38.6 1961—in 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 1.8 111.6 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 i Receivables from, and payables to, the U. S. Govt. exclude NOTE.—Securities and Exchange Commission estimates; excludes mounts offset against each other on corps.' books. banks, savings and loan associations, and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Year Total M fa i c a n t n u g u r- - M in i g n- T R r r o a a a n i d l s - port O a t t h io e n r P u u t t i b i e l l s i i - c c m C at o u io m n n i - - s Other i Quarter Total M m a in n i f n g d g - . T p t o r i a o r n t n a s - - P u u t t i b i e l l s i i - c ot A he ll r2 a T ( r n S a o n . t t u A e a ) a l . l 1954 26.8 11.0 1.0 .9 1.5 4.2 1.7 6.5 1961—11... 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 1.2 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 1.1 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 1.4 3.3 37.0 III.. 9.6 4.0 .7 1.5 3.4 38.4 I960 35.7 14.5 1.0 1.0 1.9 5.7 3.1 8.4 IV3. 10.3 4.6 .7 1.5 3.5 38.4 1961 34.4 13.7 1.0 .7 1.9 5.5 3.2 8.5 1962 3 37.1 14.8 1.1 .9 2.0 5.5 i:1.1 1963—13.. 8.5 3.6 .4 1.1 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

FEBRUARY 1963 REAL ESTATE CREDIT 241 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties ]""Jonfarm Farm Other Multifamily and holders 2 1- to 4-family houses commercial properties 3 End of period ho e A r l 1 d s 1 - t F u i t i n c i n i o s a a t n i l n - s - 1 a U g . e S n . - v I id n u d a i- ls ho e A r l 1 s d 1 - Total F i i n n s a ti n - . O ho th ld e - r Total F i i n n s a ti n - . O ho th ld e - r h e o A r l l s d l - t F u i t i n c i n i s o a a t n i l n - s - 1 h O ol t d h e e r r s'* cies and tutions1 ers tutions 1 ers 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 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? 225.5 172.6 11.8 41.1 211.3 153.0 128.7 24.3 58.3 38.9 19.4 14.2 5.0 9.2 1962P 249.9 192.3 234.3 168.7 65.6 15.5 I960—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—IP 210.3 160.2 11.3 38.9 197.0 143.2 119.7 23.5 53.7 35.7 18.0 13.3 4.7 8.6 UP 215.2 164.4 11.2 39.6 201.5 146.3 122.8 23.5 55.1 36.7 18.4 13.7 4.8 8.9 IIIP 220.1 168 4 11.4 40.3 206.1 149.6 125.8 23.8 56.5 37.7 18.9 14.0 4.9 9.1 iyp 225.5 172.6 11.8 41.1 211.3 153.0 128.7 24.3 58.3 38.9 19.4 14.2 5.0 9.2 1962 JP 230.2 176.0 12.1 42.1 215.7 155.9 130.9 25.0 59.9 40.0 19.8 14.5 5.1 9.4 l\p 236 8 181 6 12.1 43 2 221.9 160.1 135.0 25.1 61.8 41.3 20.4 14.9 5.3 9.7 HI? 243 2 186 9 12.1 44.2 227.9 164.3 138.9 25.4 63.6 42.6 21.0 15.2 5.4 9.9 IVP 249.9 192.3 234.3 168.7 65.6 15.5 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 onfdata 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 l Mutual savings bank holdings 2 Residential Residential End of period Total FHA- VA- Con- O n t o h n e - r Farm Total FHA- VA- Con- O n t o h n e - r Farm Total in- guar- ven- fartn Total in- guar- ven- 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 23,3^7 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 [,648 26,935 24,306 7,074 8,986 8,246 2,575 54 1961 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,028 2,753 51 I960—in 3 28,693 20,399 5,906 2,919 11,574 6,651 ,643 26,430 23,835 6,832 8,941 8,062 2,542 53 rv 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 I 28,864 20,281 5,793 2,776 11,712 6,906 ,677 27,447 24,800 7,353 9,111 8,336 2,597 50 II 29,383 20,595 5,820 2,726 12,049 7,072 ,716 28,015 25,318 7,634 9,192 8,492 2,645 51 in 29,920 20,953 5,905 2,676 12,372 7,227 ,740 28,589 25,892 7,811 9,231 8,850 2,(46 51 rv 30,442 21,225 5,975 2,627 12,623 7,470 ,747 29,145 26,341 8,045 9.267 9,028 2,753 51 1962—1 30,844 21,211 6,003 2,547 12,661 7,817 ,816 29,833 26,940 8,340 9,392 9,208 2,842 51 II 32,194 22,049 6,195 2,593 13,260 8,218 ,927 30,638 27,632 8,662 9,502 9,469 2,954 51 III 33,268 22,662 6,214 2,617 13,831 8,628 978 31,504 28,484 8,984 9,647 9,853 2,968 52 1 Includes loans held by nondeposit trust cos., but not bank trust depts. series for all commercial and mutual savings banks in the United States 2 Data for 1941 and 1945, except for totals, are special F. R. estimates. and possessions;?first and third quarters, estimates based on FDIC data 3 Reflects a $40 million reclassification of loans from commercial for insured banks beginning in 1962. For earlier years the basis for and industrial to real estate by 1 bank. first and third quarter estimates included F. R. commercial bank call data and data from National Assn. of Mutual Savings Banks. NOTE.—Second and fourth quarters, Federal Deposit Insurance'Corp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 REAL ESTATE CREDIT FEBRUARY 1963 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total FHA- VA- Farm l Total FHA- VA- Farm Total guar- Other i Total 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—Nov 588 542 110 25 407 46 43,868 40,709 9,677 6,570 24,462 3,159 Dec 878 826 134 44 648 52 44,241 41,070 9,664 6,552 24,854 3,171 1962—Jan 560 495 122 34 339 65 44,378 41,209 9,726 6,532 24,951 3,169 Feb 457 40C 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 3,310 637 597 118 38 441 40 45,576 42,247 10,005 6,412 25,830 3,329 SeDt 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 Nov 727 683 142 46 495 44 46,380 43,003 10,182 6,389 26,432 3,377 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 year-end adjustments are more complete. NOTE.—Institute of Life Insurance data. For loans acquired, the 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 i By type of lender (N.S.A.) Period New Home FHA- VA- Con- Period Sav- Insur- Com- Mutual Total i s c t o ru n c - - c p h u a r s - e Total 2 su in re - d a g n u te a e r- d ti v o e n n a - l 2 S.A.2 N.S.A. in lo gs a n & c a o n m ce - m ci e a r l - i s n a g v s tion assns. 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 1956 10,325 3,699 4,620 35,729 1,486 6,643 27,600 1955 28,484 10,452 J.932 5,617 1,858 1957 10,160 3,484 4,591 40,007 1,643 7,011 31,353 1956 27,088 9,532 ,799 5,458 1,824 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1957 24,244 9,217 1,472 4,264 1,429 1959 15,151 5,201 6,613 53,141 2,995 7,186 42,960 1958 27,388 10,516 1,460 5,204 1,640 1959 32,235 13,094 1,523 5,832 1,780 1960 14.304 4,678 6,132 60,070 3,524 7,222 49,324 1961 17,364 5,081 7,207 '68,834 4,167 7,152 '57,515 1960 .. 29,341 12,158 1,318 4,520 1,557 1962*? 20,722 5,965 8,517 78,932 4,477 7,010 67,445 1961 31,157 13,662 .160 4,997 1,741 1961 1961 Dec 1,500 417 598 '68,834 4,167 7,152 '57,515 Nov 2,779 2,754 1,209 97 440 173 Dec 2,763 2,579 1,132 96 399 156 1962 1962 Jan 1,323 353 550 '69,363 4,203 7,160 58,000 Feb 1,303 362 509 '69,964 4,240 7,158 58,566 Jan 2,696 2,459 1,041 88 400 138 Mar 1,611 464 633 '70,766 4,276 7,169 59,321 Feb 2,682 2,238 971 79 374 114 Apr 1,661 512 635 '71,608 4,311 7,120 60,177 Mar 2,670 2,627 1,172 90 442 120 May 1,857 584 739 '72,585 4,333 7,133 61,119 Apr 2,745 2,704 1,210 89 482 131 June 1,936 572 823'73,631 4,355 7,120 62,156 May 2,836 2,983 1,350 100 534 154 July 1,839 515 796r74,511 4,378 7,105 63,028 2,891 3,075 1,391 107 542 177 Aug 2,036 540 920 '75,527 4,399 7,097 64,031 July 2,973 3,134 1,382 107 549 201 Sept 1,731 495 746'76,371 4,414 7,086 64,871 Aug 2,933 3,333 1,501 123 563 201 Oct 1,953 543 823'77,333 4,425 7,081 65,827 Sept 2,929 2,861 1,285 104 476 183 Nov 1,750 505 708 78,137 4,459 7,069 66,609 Oct 2,925 3,208 1,403 116 554 191 Dec.?' 1,723 520 636 78,932 4,477 7,010 67,445 Nov 2,883 1,270 105 490 178 1 Includes loans for repair, additions and alterations, refinancing, etc. 1 Includes amounts for other lenders, not shown separately. not shown separately. 2 Three-month moving average, seasonally adjusted by Federal Re- 2 Beginning with 1958 includes shares pledged against mortgage loans. serve. NOTE.—Federal Home Loan Bank Board data. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 REAL ESTATE CREDIT 243 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMLLY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Period Total h N o M m ew e o s rtga i g s E e ti x s n - g e P c r t o s j - i m p P r e i e r o m r o n t v y t p - e s - - 2 Total 3 h N o M m ew e o s rtga i g s E e ti x s n - g E pe n r d i o o d f Total Total s F u i H n re - A d - a g V n u t A a e r e - - d t C i v o e o n n n a - - l homes homes 1945 18.6 4.3 4.1 .2 14.3 1945 665 257 217 20 171 192 1956 99.0 43.9 15.5 28.4 55.1 1956 3,461 1,133 1,505 130 692 5,868 3,910 1,948 1957 107.6 47.2 16.5 30.7 60.4 1957 3,715 880 1,371 595 869 3,761 2,890 863 1958 117.7 50.1 19.7 30.4 67.6 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 1960 141.3 56.4 26.7 29.7 84.8 1960 6,293 2,197 2,403 711 982 1,985 1,554 428 1961^ 153.0 59.1 29.5 29.6 93.9 1961 6,546 1,783 2,982 926 855 1,829 1,170 656 1962^ 168 7 1962 7,184 1,849 3,421 1,079 834 2,652 1,357 1,292 I960—IV .... 141.3 56.4 26.7 29.7 84.8 1961—Dec. 553 153 273 62 65 197 112 84 1961_I 143.2 57.1 27.4 29.7 86.1 1962—Jan.. 617 179 301 74 63 227 127 99 II . .. 146.3 57.8 28.0 29.8 88.6 Feb.. 474 150 248 26 50 175 95 80 HI 149.6 58.7 28.8 29.9 90.9 Mar. 541 157 261 70 53 205 115 90 IV* 153.0 59.1 29.5 29.6 93.9 Apr.. 515 132 240 88 56 182 99 83 May. 560 140 263 87 70 184 96 88 1962—1^ 155.9 59.9 30.3 29.6 95.9 June. 643 137 267 143 96 207 108 99 UP 160.1 60.4 30.9 29.5 99.7 July. 678 144 289 164 81 219 109 110 IIIP 164.3 61.0 31.5 29.5 103.3 Aug. 670 157 308 130 75 247 120 127 IVP 168.7 Sept. 576 144 287 62 83 231 114 117 Oct.. 673 193 353 54 72 285 136 149 Nov. 649 172 321 86 70 254 124 129 NOTE.—For total debt outstanding, figures are Dec. 589 145 284 95 65 236 115 121 FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank 1 Monthly figures do not reflect mortgage amendments included in annual totals. Board, Federal Housing Administration, and Veterans 2 Not ordinarily secured by mortgages. Administration. 3 Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. NOTE.—Federal Housing Administration and Veterans Administration data. FHAinsured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts 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 Mortgage holdings transactions Com- Advances outstanding (during mit- (end of period) E pe n r d i o o d f FHA- VA- period) m u e n n - ts Period va A n d c - es R m e e p n a ts y- M de e p m o b si e t r s s Total su in re - d a g n u te a e r- d c P ha u s r e - s Sales bu d r i s s- ed Total t S e h rm or t- ! t L e o rm ng 2 - 1945 278 213 195 176 19 46 1956 3,047 978 2,069 609 5 360 1957 3,974 1,237 2,737 1,096 3 764 1956 745 934 1,228 798 430 683 1958 3,901 1,483 2,418 623 482 1,541 1957 1,116 1,079 1,265 731 534 653 1959 5,531 2,546 2,985 1,907 5 568 1958 1,364 1,331 1,298 685 613 819 1959 2,067 1,231 2,134 J 109 942 589 1960 6,159 3,356 2,803 1,248 357 576 1961 6,093 3,490 2,603 815 541 631 I960 1,943 2,097 1,981 1,089 892 938 1962 .. . 5,923 3,571 2,353 P740 355 1961 2,882 2,200 2,662 ,447 1,216 1,180 1962 4,111 3,294 3,479 >,005 1,474 1,213 1961—Dec 6,093 3,490 2,603 127 2 631 1961—Dec 510 135 2,662 1,447 1,216 1,180 1962—Jan 6,186 3,566 2,620 124 637 Feb 6,248 3,618 2,630 102 7 605 1962—Jan 265 608 2,320 1,293 1,027 995 Mar 6,231 3,653 2,578 97 80 613 Feb 145 236 2,228 1,228 1,000 1,007 Apr 6,151 3,616 2,535 60 106 562 Mar 204 281 2,151 1,170 981 1,109 May . .. 6,120 3,627 2,493 82 76 527 Apr 382 209 2,323 1,244 1,079 1,096 June 6,035 3,571 2,464 52 101 504 May 295 189 2,429 1.319 [,110 1,107 July 5,989 3,557 2,432 34 47 485 June 503 165 2,767 1,569 1,198 1,192 Aug 5,969 3,556 2,413 35 19 442 July 480 387 2,860 1,708 1,151 976 Sept 5,951 3,552 2,399 32 12 429 Aug 312 225 2,948 1,787 :1,161 954 Oct 5,944 3,555 2,389 39 11 431 Sept 279 180 3,046 1,835 1,211 984 5,949 3,575 2,374 57 19 366 Oct 383 338 3,091 1,876 1,215 1,016 Dec 5,923 3,571 2,353 26 18 355 Nov 252 275 3,068 1.821 1,246 1,028 Dec 611 200 3,479 2,005 1,474 1,213 NOTE.—Federal National Mortgage Association data excluding conventional mortgage loans acquired by FNMA from the RFC Mortgage 1 Secured or unsecured loans maturing in 1 year or less. Company, the Defense Homes Corporation, the Public Housing Admin- 2 Secured loans, amortized quarterly, having maturities of more than istration and Community Facilities Administration. 1 year but not more than 10 years. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 CONSUMER CREDIT FEBRUARY 1963 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 g O p n o a s t p o h u d e e m r r s er e a r n R l n o d i e a z p m n a a s t o i i o r J d n - Pe lo rs a o n n s al Total p S a l i o y n m a g n l e e s n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 . 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 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 I960 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 1962 . . 63,447 48,232 19,373 12,855 3,290 12,714 15,215 5,579 5,642 3,994 1961—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 11,540 13,477 5,241 4,319 3,917 May 58,318 44,495 18,032 11,598 3,169 11,696 13,823 5,400 4,544 3,879 June.. . • 59,108 45,208 18,410 11,726 3,200 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 60,003 46,204 18,933 11,824 3,260 12,187 13,799 5,469 4,491 3,839 Sept 60,126 46,310 18,881 11,861 3,277 12,291 13,816 5,481 4,495 3,840 Oct 60,626 46,722 19,083 11,986 3,289 12,364 13,904 5,442 4 663 3,799 Nov 61,473 47,274 19,307 12,186 3,302 12,479 14,199 5,526 4,825 3,848 Dec 63,447 48,232 19,373 12,855 3,290 12,714 15,215 5,579 5,642 3,994 i Holdings of financial institutions; holdings of retail outlets are in- mortgage loans. The estimates include data for Alaska beginning with cluded in other consumer goods paper. Jan. 1959 (except for instalment credit held by sales finance cos.) and for Hawaii beginning with Aug. 1959. For 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 it s f s in u C a m n o c e n e r - * Other i 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 t e o 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 1956 31,720 26,977 11,777 9,117 2,014 2,940 1,129 4,743 1,408 1,187 377 502 1,269 1957 33,867 29,200 12,843 9,609 2,429 3,124 1,195 4,668 1,393 1,210 361 478 1,226 1958 33,642 28,659 12,780 8,844 2,668 3,085 1,282 4,983 1,882 1,128 292 506 1,175 1959 39,245 33,570 15,227 10,319 3,280 3,337 1,407 5,676 2,292 1,225 310 481 1,368 1960 42,832 37,218 16,672 11,472 3,923 3,670 1,481 5,615 2,414 1,107 333 359 1,462 1961 43,527 37,935 17,008 11,273 4,330 3,799 1,525 5,595 2,421 1,058 293 342 1,481 1962 48,232 41,796 18,909 12,183 4,973 4,131 1,600 6,436 3,013 1,073 279 284 1,787 1961—Dec. 43,527 37,935 17,008 11,273 4,330 3,799 1,525 5,595 2,421 1,058 293 342 1,481 1962—Jan.., 43,265 38,002 16,964 11,468 4,283 3,782 1,505 5,263 2,158 1,036 287 339 1,443 Feb.. 43,074 37,904 16,967 11,361 4,288 3,783 1,505 5,170 2,153 1,018 283 336 1,380 Mar.. 43,211 37,995 17,062 11,283 4,333 3,795 1,522 5,216 2,227 998 278 330 1,383 43,837 38,497 17,366 11,359 4,426 3,826 1,520 5,340 2,339 991 275 320 1,415 M*ay*. 44,495 39,032 17,686 11,440 4,520 3,836 1,550 5,463 2,430 991 274 310 1,458 June. 45,208 39,639 18,024 11,570 4,616 3,876 1,553 5,569 2,522 988 276 302 1,481 July. 45,650 40,062 18,235 11,682 4,681 3,907 1,557 5,588 2,545 989 275 298 1,481 Aug.. 46,204 40,537 18,427 11,796 4,783 3,948 1,583 5,667 2,609 999 275 296 1,488 Sept. 46,310 40,597 18,443 11,787 4,814 3,969 1,584 5,713 2,675 998 273 299 1,468 Oct.. 46,722 40,896 18,613 11,860 4,874 3,974 1,575 5,826 2,737 1,002 273 298 1,516 Nov., 47,274 41,285 18,765 11,986 4,928 4,009 1,597 5,989 2,835 1,019 274 292 1,569 Dec. 48,232 41,796 18,909 12,183 4,973 4,131 1,600 6,436 3,013 1,073 279 284 1,787 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

FEBRUARY 1963 CONSUMER CREDIT 245 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Total ch P A a u s u r e - t p d o a m pe o D r b i i r l e e ct s O g p c u o a t o m h o p n d e e e - r r s r R e m l r t o a e n i o n p a o iz d n d a n a s i - r - s l P o o e a n r n a - s l End of period Total m A pa o u p b t e o il r - e s O g p c u o a t o m o p h n d e e e - r r s r m R iz l o o a e a n d a p ti n d e a o s r i n r n- l s P o o e a n r n a - s l 1939 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945 300 164 24 58 54 1945 745 66 143 114 110 312 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 7,393 1,509 31 676 1957 12,843 4,130 2,225 2,557 1,580 2,351 1958 8,844 6,310 1,717 36 781 1958 12,780 4,014 2,170 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 7,528 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 1961 17,008 5,391 2,860 2,761 2,198 3,798 1962 12,183 7,438 3,123 170 1,452 1962 18,909 6,181 3,393 2,811 2,238 4,286 1961 Dec 11,273 6,811 3,100 161 1,201 1961—Dec 17,008 5,391 2,860 2,761 2,198 3,798 1962—Jan 11,468 6,754 3,345 162 1,207 1962—Jan 16,964 5,379 2,885 2,718 2,170 3,812 Feb 11,361 6,745 3,243 162 1,211 Feb 16,967 5,398 2,911 2,690 2,147 3,821 Mar 11 283 6,772 3,134 163 1,214 Mar 17,062 5,457 2,965 2,656 2,132 3,852 Apr 11,359 6,864 3,093 165 1,237 Apr 17,366 5,569 3,056 2,653 2,143 3,945 11,440 6,991 3,027 167 1,255 May 17,686 5,692 3,144 2,682 2,165 4,003 June 11 570 7 122 2,997 168 1,283 June 18,024 5,823 3,229 2,716 2,188 4,068 July 11,682 7,228 2,981 171 1,302 July 18,235 5,922 3,270 2,734 2,206 4,103 Aug • • • • 11,796 7,327 2,969 171 1,329 18,427 6,008 3,295 2,726 2,224 4,174 Sept 11,787 7,296 2,957 172 1,362 Sept 18,443 6,009 3,259 2,732 2,235 4,208 Oct 11,860 7,350 2,952 172 1,386 Oct 18,613 6,091 3,305 2,746 2,246 4,225 Nov 11 986 7 440 2,967 171 [,408 Nov 18,765 6,160 3,357 2,762 2,250 4,236 Dec 12,183 7,438 3,123 170 1,452 Dec 18,909 6,181 3,393 2,811 2,238 4,286 See NOTE to first table on previous page. See NOTE to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single- Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal paper goods ization loans End of period Total Service 1 1 9 9 3 4 9 1 9 7 5 8 7 9 1 8 2 1 2 pape 2 3 r 4 6 loan 1 1 s 4 5 7 6 8 6 5 9 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 s i h a a o t n e l i n - r - s s m p t D o a e r e r n e - t- s t 1 o O r u e t t t h l a e e i t l r s C c r a e r d d i s t 2 credit 1945 731 54 20 14 643 1956 6,083 954 624 404 4,101 1939 2,719 625 162 236 1,178 518 1957 6,748 1,114 588 490 4,555 1941 3,087 693 152 275 1,370 597 1958 7,035 1,152 565 595 4,723 1945 3,203 674 72 290 1,322 845 1959 8,024 1,400 681 698 5,244 1956 10,614 2,843 410 893 3,842 260 2,366 I960 9,074 1,665 771 800 5,837 1957 11,103 2,937 427 876 3,953 317 2,593 1961 9,654 1,819 743 832 6,257 1958 11,487 3,156 All 907 3,808 345 2,800 1962 10,704 2,077 769 882 6,976 1959 12,297 3,582 547 958 3,753 393 3,064 1961—Dec .. . 9,654 1,819 743 832 6,257 1960 13,196 3,884 623 941 3,952 436 3,360 1961 14,151 4,413 723 948 3,907 469 3,691 1962—Jan 9,570 1,798 733 819 6,220 1962 15,215 4,704 875 927 4,203 512 3,994 Feb 9,576 1,801 729 814 6,232 Mar 9,650 1,824 731 818 6,277 1961—Dec... 14,151 4,413 723 948 3,907 469 3,691 Apr 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 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 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 Nov 10,534 2,058 760 881 6,835 July... 13,714 4,662 740 569 3,388 500 3,855 Dec 10,704 2,077 769 882 6,976 Aug... 13,799 4,657 812 570 3,394 527 3,839 Sept... 13,816 4,666 815 614 3,353 528 3,840 Oct.... 13,904 4,662 780 638 3,507 518 3,799 NOTE.—Institutions represented are consumer finance cos., credit Nov... 14,199 4,680 846 688 3,629 508 3,848 unions, industrial loan cos., mutual savings banks, savings and loan Dec... 15,215 4,704 875 927 4,203 512 3,994 assns., and other lending institutions holding consumer instalment loans. See NOTE to first table on previous 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

246 CONSUMER CREDIT FEBRUARY 1963 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 su p m er er mode R r e n p iz a a ir ti o a n n d loans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 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 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 1962 55,389 19,509 16,129 2,113 17,638 1961—Dec 4,409 4,835 1,469 1,320 1,402 1,795 167 148 1,371 1,572 1962—Jan 4,327 3,878 1.504 1.355 1,280 1,116 171 126 1.372 1.281 Feb 4,356 3,611 ,546 1,318 1.276 973 166 126 1,368 1,194 Mar 4,499 4,392 1,582 1,616 1,328 ,196 174 160 1,415 1,420 Apr 4,659 4,737 1,675 1,732 1,345 ,319 182 181 1,457 1,505 May 4,650 4,950 1,655 1,837 1,338 ,383 183 216 1,474 1,514 4,623 4,923 1,621 1,810 1,344 ,384 187 201 1,471 1,528 Julv 4,669 4,720 1,631 1,751 1,368 ,290 189 199 1,481 1,480 4,619 4,862 1,602 1,731 1,325 ,345 179 209 1,513 1,577 4,491 4,098 1,505 1,309 1,308 1,255 170 176 1,508 1,358 Oct 4,682 4,913 1,685 1,816 1,335 ,432 169 191 1,493 1,474 Nov 4,961 4,932 ,797 1,701 1,425 ,499 168 177 1,571 1.555 Dec 4,823 5,373 .678 1.533 .469 .937 172 151 1.504 1,752 Repayments 1956 37,054 14,555 10,756 1,370 10,373 1957 39,868 15,545 11,569 1,477 11,276 1958 . .. 40,344 15,415 11,563 1,626 11,741 1959 42,603 15,579 12,402 1,765 12,857 I960 . 45,972 16,384 13,574 1,883 14,130 1961 47,700 16,472 14,246 2,015 14,967 1962 50,684 17,359 15,131 2,014 16,180 1961 Dec 4,061 4,041 1,375 1,307 1,233 1,200 169 161 1,284 1,373 1962 Jan 4,048 4,140 1.401 1.423 1.190 1.253 165 166 1.292 1.298 Feb 4,084 3,802 1,390 1,282 1,236 11,197 167 154 1,291 1,169 Mar 4,121 4,255 1,415 1,459 1,231 1,285 168 170 1,307 1,341 Apr 4,166 4,111 1,435 1,409 1,247 1,228 168 166 1,316 1,308 May 4,211 4,292 1,447 1,476 1,260 [,283 173 175 1,331 1,358 4,202 4,210 1,433 1,432 1,260 ,256 170 170 1,339 1,352 July 4,283 4,278 1,456 1,481 1,296 1,262 170 173 1,361 1,362 AUB 4,261 4,308 ,446 [,478 ,281 ,275 172 175 1,362 [,380 Sept 4,289 3,992 1,440 1,361 1,298 1,218 169 159 1,382 1,254 Oct 4,298 4,501 1,491 1,614 1,261 1,307 165 179 1,381 1,401 Nov 4,380 4,380 [.490 1,477 [.302 ,299 163 164 1,425 1,440 Dec 4,376 4,415 l',518 1.467 ^293 [.268 171 163 1.394 1.517 Net change in credit outstanding 2 1956 2,814 960 965 212 678 1957 2,148 920 238 197 793 1958 -225 — 1,189 184 245 534 5 601 2,268 1,602 463 1 269 1960 3 588 1,270 896 330 1 093 1961 696 -465 332 53 777 1962 4 705 2 150 998 99 1,458 1961 Dec 348 794 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 439 658 208 361 78 100 10 41 143 156 421 713 188 378 84 128 17 31 132 176 July 386 442 175 270 72 28 19 26 120 118 358 554 156 253 44 70 7 34 151 197 Sect 202 106 65 -52 10 37 1 17 126 104 Oct 384 412 194 202 74 125 4 12 112 73 Nov 581 552 307 224 123 200 5 13 146 115 Dec 447 958 160 66 176 669 1 -12 110 235 1 Includes adjustment for difference in trading days. sales of instalment paper, and certain other transactions may increase 2 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 ofjthe series in this and the following table see Jan. 1954 BULL., pp. 9-17. Back data upon request. NOTE.—Estimates are based on accounting records and often include financing charges. Renewals and refinancing of loans, purchases and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 CONSUMER CREDIT 247 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 i n es ce Ot i h n e s r ti t f u in ti a o n n c s ial Retail outlets Period S.A.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1956 39,868 14,463 9,619 9,148 6,638 1957 42,016 15,355 10,250 9,915 6,495 1958 40,119 14,860 9,043 9,654 6,563 1959 48,052 17,976 11,196 10,940 7,940 1960 49,560 18,269 11,456 12,073 7,762 1961 48,396 17,711 10,667 12,282 7,736 1962 55,389 20,360 12,118 13,623 9,288 1961—Dec 4,409 4,835 1,571 1,469 1,123 1,101 1,077 1,241 638 1,024 1962 Jan. 4,327 3,878 1.575 J.49R 977 884 j nss 942 720 554 Feb 4,356 3,611 ,642 ,418 955 788 ,054 913 705 492 Mar 4,499 4,392 ,637 ,648 955 937 ,112 1,116 795 691 Apr 4,659 4,737 ,726 ,816 1,010 1,008 ,149 1,154 774 759 May 4,650 4,950 ,710 ,881 1,007 1,059 ,150 1,205 783 805 4,623 4,923 ,720 1,862 992 1,081 ,139 1,194 772 786 July. . 4,669 4,720 ,708 ,789 984 1,069 ,146 1,152 831 710 Aug. 4,619 4,862 ,679 ,773 971 1,068 ,177 1,233 792 788 Sept 4,491 4,098 ,643 .486 944 863 ,138 1,015 766 734 Oct.. . .. 4,682 4,913 ,722 i;806 1,021 1,108 144 1,136 795 863 Nov 4,961 4,932 ,813 1,701 1,104 1,070 1,208 1,231 836 930 Dec 4,823 5,373 ,772 1,682 1,183 1,183 1,143 1,332 725 1,176 Repayments 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 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 1962 50,684 18,450 11,439 12,570 8,225 1961—Dec 4,061 4,041 1,512 1,435 943 928 1,005 1,084 601 594 1962—Jan. 4,048 4,140 1.502 1.542 920 911 1.017 1,023 609 664 Feb 4,084 3,802 1,493 1,415 981 895 1,003 907 607 585 Mar 4,121 4,255 1,520 1,553 966 1,015 1,018 1,042 617 645 Apr 4,166 4,111 1,514 1,503 952 941 1,042 1,032 658 635 May 4,211 4,292 1,526 1,561 965 978 1,047 1,071 673 682 June 4,202 4,210 1,526 1,524 960 951 1,038 1,055 678 680 July 4,283 4,278 1,546 1,578 956 957 1,055 1,052 726 691 4,261 4,308 1,555 1,581 932 954 1,054 1,064 720 709 Sept 4,289 3,992 1,562 1,470 936 872 1,062 962 729 688 Oct 4,298 4,501 1,546 1,636 949 1,035 1,071 1,080 732 750 Nov. 4,380 4,380 1,579 1,549 937 944 [.105 1,120 759 767 Dec 4,376 4,415 1,594 1,538 983 986 1,060 1,162 739 729 Net change in credit outstanding 2 1956 2,814 1,176 670 733 235 1957 2 148 1 066 491 665 —75 1958 -225 —63 —765 289 315 1959 5,601 2,447 1,475 986 693 I960 3,588 1,446 1,152 1,051 -61 1961 696 335 -199 578 -20 1962 4,705 1,901 910 ,053 841 1961—Dec 348 794 59 34 180 173 72 157 37 430 1962 Jan.. 279 -262 73 -44 279 195 38 -81 -111 -332 Feb 272 -191 149 3 -26 -107 51 6 98 -93 Mar 378 137 117 95 -11 -78 94 74 178 46 Apr 493 626 203 304 67 76 107 122 116 124 May. 439 658 184 320 42 81 103 134 110 123 June 421 713 194 338 32 130 101 139 94 106 July 386 442 162 211 28 112 91 100 105 19 Aug 358 554 124 192 39 114 123 169 72 79 Sept 202 106 81 16 8 9 76 53 37 46 Oct 384 412 176 170 72 73 73 56 63 113 Nov 581 552 234 152 167 126 103 111 77 163 Dec 447 958 178 144 200 197 83 170 -14 447 1 Includes adjustment for differences in trading days. to eliminate duplication resulting from large transfers of paper. In 2Net changes in credit outstanding equal extensions less repayments those months the differences between the two for some types of holders except: (1) in 1959, when the differences do not reflect the introduction of do not equal the changes in outstanding credit. Such transfers do not outstanding balances for Alaska and Hawaii, and (2) in certain months affect total instalment credit outstanding. when data for extensions and repayments have been adjusted, as necessary See also Note to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 INDUSTRIAL PRODUCTION: S.A. FEBRUARY 1963 MARKET GROUPINGS (1957-59- 100) 19 pr 5 o- 7-59 1961 1961 1962 Grouping por- avertion age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec. Total index 100.00 109.8 115.6 114.3 116.0 117.0 117.7 118.4 118.6 119.3 119.7 119.8 119.2 119.5 119.2 47.35 111.3 116.9 115.7 116.8 118.2 118.5 120.2 120.6 121.7 121.6 122.0 121.5 121.5 121.6 32.31 112.7 117.9 116.5 117.3 118.8 119.1 121.1 120.9 121.7 120.9 121.8 120.8 120.8 120.7 Equipment, including defense.... 15.04 108.3 114.9 112.7 115.0 116.1 117.0 118.5 120.1 121.8 123.2 123.2 123.6 123.3 123.2 Materials 52.65 108.4 114.8 113.7 115.5 116.9 117.1 117.0 117.1 117.0 117.7 118.1 117.2 117.7 117.1 Consumer goods Automotive products 3.21 111.8 130.8 127.8 123.7 122.6 129.4 132.8 126.8 135.2 134.1 135.3 135 8 135 4 137 2 1.82 108.6 136.1 132.8 125.5 123.8 133.9 140.8 129.3 142.4 140.0 141.2 142.1 141.1 142.0 Auto parts and allied products 1.39 116.0 123.7 121.1 121.4 121.0 123.5 122.3 123.6 125.7 126.3 127.5 127.5 128.0 130.9 Home Hoods and avoarel 10.00 110.5 117.2 114.1 116.5 119.0 120.1 121.2 121.7 120.1 118.7 119.8 119.3 119.8 120 A Home goods 4.59 112.2 120.3 118.8 120.4 122.6 124.4 126.0 126.2 122.7 121.2 122.2 121 1 122.1 124 5 Appliances, TV, and radios 1.81 109.9 116.3 114.0 116.0 120.3 123.8 124.2 123.3 118.5 115.2 115.8 116.7 118.1 120.4 1.33 110.7 119.0 115.4 114.9 117.7 120.1 120.7 122.9 120.9 119.3 120.7 124.0 127.3 130.0 TV and home radios .47 107.8 108.5 110.1 118.8 127.5 134.2 133.9 124.7 112.0 103.7 102.1 96 1 92 3 93 3 1.26 112.8 120.1 118.5 121.0 121.5 123.8 124.5 126.5 124.3 125.4 127.9 125.8 125.8 125.2 Miscellaneous home goods . 1.52 114.5 125.2 124.8 125.1 126.3 125.6 129.5 129.3 126.2 123.4 125.2 122.3 123.9 128.9 Apparel, knit goods, and shoes 5.41 109.0 114.6 '109.1 '112.2 '113.8 '114.2 '114.8 '115.6 '115.4 '114.9 116.1 116.2 116.3 Consumer staples 19.10 114.0 116.1 115.8 116.6 118.0 117.1 118.8 119.2 120.3 119.7 120 6 119 1 119 7 120 1 Processed foods 8.43 110.5 111.6 111.3 111.5 113.2 113.6 114.3 112.8 115.9 115.6 115.7 114.0 114.3 114 2 Beverages and tobacco 2.43 109.5 110.7 108.4 109.9 113.7 106.9 109.1 109.0 110.9 108.0 111.9 109.5 112.1 Drugs soap and toiletries 2.97 120.7 125.2 123.6 126.6 127.5 125.8 129.9 131.9 131.5 131.0 132.0 131.6 130 8 Newspapers, magazines, and books. 1.47 114.9 115.2 116.2 116.9 116.6 115.7 117.4 117.7 117.7 117.0 117.0 116.4 116.4 116.1 3.67 119.2 122.7 124.2 124.3 124.8 125.1 126.9 130.7 128.3 127.0 128.9 128.0 129.0 Fuel oil and gasoline ... 1.20 107.6 110.0 110.1 111.1 111.3 110.4 112.3 115.0 111.7 108.4 114.0 112 8 112 0 112 7 Residential utilities 2.46 124.9 128.9 131.1 130.8 131.5 132.3 134.0 138.4 136.4 136.0 136.2 135.5 137.4 Electricity 1.72 125.3 129.3 131.7 131.1 131.3 131.6 133.6 139.5 141.4 140.4 139.3 137.6 139.9 Gas .74 124.0 Equipment 11.63 110.1 116.4 113.4 116.3 118.0 119.3 121.2 123.1 124.4 125.6 126.2 126.6 126.2 126.1 Industrial eouiDinent 6.85 107.4 113.4 112.2 113.4 114.2 115.1 116.7 118.5 119.0 119.2 118.9 120 4 120 ^ 119 9 Commercial equipment 2.42 127.0 135.2 136.3 139.3 141.7 144.0 144.4 144.8 145.6 144.7 144.9 143.8 144.4 144.5 Freight and passenger equipment... 1.76 103.4 113.8 107.0 109.0 111.6 109.7 111.2 114.9 121.0 124.2 125.2 125.6 124.5 126.9 Farm equipment .61 93.4 90.3 87.8 94.3 99.9 102.6 105.6 110.4 110.4 110.8 116.6 117.3 117.6 123.8 3.41 Materials 26.73 104.8 111.8 110.8 113.1 115.1 116.2 114.6 113.7 113.8 114.8 114.9 114.0 114.0 113.0 Consumer durable .. 3.43 107.9 120.3 120.5 119.2 124.1 134.7 134.5 127.0 134.2 130.6 129.7 127.6 126.9 128.4 Equipment 7.84 105.7 113.4 113.1 114.5 116.9 120.3 119.5 120.8 119.3 119.2 121.3 121.0 120.4 120.3 9.17 105.2 106.5 103.0 107.3 109.9 110.7 111.4 111.8 112.1 112.6 113.3 111.2 111.2 108.4 NCetal materials nee 6.29 101.2 114.3 116.9 120.1 118.1 114.6 104.5 99.4 96.4 98.5 r98.5 99.1 102.3 102.8 Nondurable materials . . .. 25.92 112.1 118.0 116.6 117.8 118.6 117.9 119.3 120.5 120.3 120.7 121.5 120.5 121.5 121.3 9.11 110.5 114.9 113.1 115.0 115.8 114.1 116.1 116.9 116.1 116.5 118.1 116.2 118.2 117.2 Containers 3.03 111.3 117.1 114.1 116.7 119.7 113.1 115.9 117.5 117.2 116.4 118.6 115.9 120.5 117.9 General business suDDlies 6.07 110.0 113.8 112.6 114.2 113.9 114.6 116.2 116.6 115.5 116.6 117.9 116.3 117.1 116.8 Nondurable materials nee 7.40 120.6 132.0 128.8 130.4 132.5 131.3 133.9 135.9 135.3 135.5 136.7 135.2 137.6 138.6 9.41 107.1 109.9 110.5 110.5 110.2 110.9 110.9 111.8 112.6 112.0 112.7 113.1 114.1 111.6 Mineral fuels 6.07 102.0 103.4 103.7 103.2 103.2 104.6 103.6 104.5 106.1 105.5 106.6 106.5 107.2 103.3 Nonresidential utilities 2.86 121.0 126.0 127.5 128.0 128.0 127.7 130.2 131.4 130.9 129.1 130.2 131.9 133.1 Electricity. 2.32 121.7 127.0 128.4 128.5 128.2 127.6 130.4 131.9 132.4 130.1 130.4 132.3 133.6 General industrial • • • • 1.03 114.8 119.9 121.9 122.4 121.3 122.7 121.6 122.6 124.1 122.0 122.7 124.3 123.5 1.21 129.1 135.2 136.4 136.1 136.4 134.1 140.5 142.4 142.0 139.5 139.5 141.7 144.9 Gas .54 118.0 Supplementary groups of consumer goods A utomotive and home soods 7.80 112.0 124.6 122.6 121.8 122.7 126.5 128.9 126.5 127.9 126.3 127.6 127.1 127.6 129 7 ADDirel and staDles 24.51 112.9 115.8 '114.3 '115.6 '117.1 '116.5 '117.9 r118.4 '119.2 H18.6 '119.6 118.4 118.4 119.2 See NOTE om opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INDUSTRIAL PRODUCTION: S.A. 249 INDUSTRY GROUPINGS (1957-59- 100) 19 p 5 r 7 o - - 59 1961 1961 1962 Grouping por- avertion age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec. 100.00 109.8 115.6 114.3 116.0 117.0 117.7 118.4 118.6 119.3 119.7 119.8 119.2 119.5 119.2 86.45 109.7 115.9 114.4 116.3 117.4 118.1 118.8 118.9 119.7 120.3 120.4 119.7 119.9 119.7 Durable 48.07 107.0 114.5 113.2 115.4 116.5 118.5 118.2 117.7 118.7 119.8 119.5 118.6 119.0 119.® Nondurable 38.38 112.9 117.7 115.9 117.3 118.6 117.5 119.6 120.3 121.0 120.8 121.5 120.9 121.0 120.6 Mining 8.23 102.6 104.7 104.0 104.3 104.8 105.5 104.8 104.6 106.1 105.5 105.9 105.5 106.2 102 6 Utilities 5.32 122.8 127.3 128.8 129.0 128.8 128.1 129.8 132.4 133.5 132.3 133.0 133.5 135.1 136.0 Durable manufactures Primary and fabricated metals 12.32 102.2 112.0 111.5 115.1 115.3 114.1 108.3 106.3 106.3 108.2 108.2 107.1 108.5 107.6 Primary metals 6.95 98.9 111.0 111.9 117.5 116.6 112.4 101.3 96.8 96.6 99.1 99.6 98.9 100.7 100.2 Iron and steel 5.45 96.5 110.6 112.9 117.7 118.5 112.6 96.5 89.5 87.8 92.1 92.8 91.0 95.3 95.7 Nonferrous metals and products.. 1.50 107.5 119.2 117.6 122.0 120.6 118.6 120.8 118.2 117.9 112.9 118.4 120.1 121.2 118.3 Fabricated metal products 5.37 106.5 113.3 111.0 111.9 113.6 116.3 117.4 118.5 118.8 119.9 119.3 117.8 118.5 117.2 Structural metal parts 2.86 105.2 110.0 107.3 108.6 110.2 113.7 115.7 116.4 115.6 115.2 115.1 114.2 112.8 112.5 Machinery and related products 27.98 108.8 116.6 115.4 116.8 118.2 121.2 122.9 122.9 124.8 125.6 124.9 124.6 124.4 124.9 Machinery 14.80 110.4 116.8 115.6 117.5 120.2 122.9 124.5 125.9 125.4 126.5 126.4 125 6 125.3 125 9 8.43 106.5 111.6 110.1 112.4 115.2 117.8 120.0 121.8 121.9 124.6 123.9 123.0 122.8 121.3 Electrical machinery 6.37 115.7 123.6 122.9 124.3 126.8 129.7 130.4 131.3 130.1 129.0 129.6 129.0 128.6 132.1 Transportation equipment 10.19 103.6 113.7 112.5 113.4 113.4 116.8 119.4 116.8 122.1 122.0 121 5 121.8 121.5 121 9 4.68 111.9 127.9 126.9 126.2 126.3 134.4 139.1 132.0 141.3 138.1 137.8 138.1 137.3 138.0 Aircraft and other equipment.... 5.26 95.7 100.6 99.6 101.5 101.4 100.7 101.6 103.0 104.7 107.3 106.7 107.2 107.2 107.1 Instruments and related products... 1.71 115.8 119.8 118.9 118.5 119.0 122.3 122.6 124.7 124.9 125.8 124.3 124.2 125.0 124.8 1.28 4.72 104.5 104.7 101.5 106.6 105.9 108.9 110.1 110.7 109.9 112.1 112.5 108.9 110.5 109.6 Clay, glass, and stone products 2.99 106.3 106.0 104.4 105.1 104.8 110.3 111.9 112.5 113.7 114.9 114.9 113.2 113.3 110.6 1.73 101.3 102.4 96.5 109.2 107.9 106.4 107.1 107.5 103.4 107.4 108.3 101.5 105.8 107.9 3.05 114.1 120.8 117.6 118.2 121.5 126.1 127.3 127.4 127.3 125.8 126.8 125.3 125.5 125.5 1.54 115.3 123.2 118.3 120.8 124.0 126.6 129.3 129.2 127.7 128.3 129.2 128 2 129.3 128 9 1.51 112.8 118.3 116.9 115.5 119.0 125.5 125.2 125.5 126.9 123.3 124.4 122.3 121.7 122.0 Nondurable manufactures 7.60 108.4 115.8 112.4 113.6 114.8 114.8 115.2 115.8 115.5 115.2 116.7 115.7 115.4 115 3 Textile mill products 2.90 106.9 114.1 113.4 114.6 116.8 115.0 116.1 117.1 116.6 117.1 115.9 114.5 112.6 112.6 Apparel products 3.59 112.1 119.8 115.5 116.0 116.5 117.6 118.3 118.4 119.2 118.1 120 5 121 4 122.3 122 ? Leather and products 1.11 100.2 107.3 100.1 103.0 104.0 105.5 102.9 103.8 100.5 100.6 106.6 100.8 100.7 8.17 112.4 115.7 115.1 116.2 116.9 115.7 117.0 116.7 118.0 118.1 118 2 117 2 117.9 115 3 Paper and products . . ..... 3.43 113.7 119.3 117.3 119.0 120.7 117.5 119.9 119.6 121.1 120.5 120.9 120.8 122.1 119.6 Printing and publishing 4.74 111.5 113.0 113.5 114.2 114.1 114.4 114.9 114.7 115.7 116.3 116.2 114.6 114.8 112.3 1.53 106.0 107.9 108.6 109.4 108.6 107.5 107.9 108.6 110.3 111.8 111.3 108.2 109.7 100.5 Chemicals, petroleum, and rubber.... 11.54 118.8 125.9 124.1 125.8 126.7 126.6 130.8 132.6 133.2 133.2 133.7 134.2 133.6 134.2 Chemicals and products 7.58 123.3 130.0 128.4 131.1 131.8 131.6 135.7 137.1 137.6 138.3 139.0 139.5 139.0 139.0 Industrial chemicals 3.84 129.6 139.0 138.6 140.4 141.0 142.2 145.8 147.7 149.7 150.7 151.0 153.1 152.4 Petroleum products 1.97 108.7 110.7 112.2 111.1 114.0 109.6 112.6 115.1 113.4 112 1 113 6 113 6 113 0 i i 3 2 Rubber and plastics products 1.99 111.9 125.1 119.6 120.5 119.9 124.0 130.2 132.8 136.1 134.8 133.4 134.1 133.4 Foods beverages, and tobacco....... 11.07 110.4 112.0 111.2 111.7 113.5 112.1 112.8 112.5 114.2 113.8 114 7 113 5 114.1 114 2 10.25 110.3 112.0 111.4 111.7 113.2 112.3 112.9 112.9 114.3 114.0 114.6 113.9 114.0 114 1 Food manufactures 8.64 110.6 112.4 112.0 112.2 113.4 113.6 113.9 113.5 115.1 115.5 115.5 114.6 114.7 114.9 1.61 107.9 108.7 108.1 109.3 112.2 105.2 107.3 109.4 109.7 105.9 109 8 109.9 110.5 .82 110.8 112.4 109.1 111.1 116.8 110.3 112.5 108.2 113.4 112.0 116.0 108.6 115.2 Mining Coal oil and gas 6.80 100.9 103.1 102.9 102.3 102.9 104.0 102.6 103.0 104.7 104.1 105.2 105.3 105.5 101.9 Coal 1.16 90.1 96.9 98.0 95.2 96.3 97.6 92.2 91.8 91.8 93.7 93.8 94.0 96.3 93 2 Crude oil and natural gas 5.64 103.1 104.4 103.9 103.8 104.2 105.3 104.7 105.3 107.4 106 2 107 5 107 6 107 4 103 7 4.91 104.9 105.0 105,0 105.1 104.8 106.2 106.3 107.4 109.5 108.3 109.6 109.4 109.8 105 7 Crude oil 4.25 103.0 102.8 102.7 103.2 102.4 104.1 104.1 105.6 107.7 106.7 107 8 107 2 107 5 103 2 Gas and gas liquids .66 116.8 118.7 119.8 117.4 120.4 119.7 120.5 119.2 .73 91.3 100.8 96.5 95.0 100.2 99.2 93.7 91.1 "92.3 "93.0 "9K5 Metal, stone, and earth minerals 1.43 110.5 111.9 109.4 113.9 113.9 112.5 115.7 112.0 112.8 112.0 109.5 106.7 109.3 105.8 Metal mining .61 111.9 125.0 129.4 131.7 128.9 120.0 116.6 109.5 110.4 104.1 97 8 96.8 106 2 115 0 Stone and earth minerals .82 109.4 102.2 94.5 100.6 102.7 106.9 115.1 113.8 114.5 117.9 118.2 114.0 111.6 99.0 Utilities Electric 4.04 123.2 128.0 129.8 129.6 129.5 129.3 131.8 135.1 136.2 134.5 134.2 134.5 136.3 Gas 1.28 121.5 125.4 125.5 126.9 126.5 124.2 123.6 123.8 NOTE.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures 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

250 INDUSTRIAL PRODUCTION: N.S.A. FEBRUARY 1963 MARKET GROUPINGS (1957-59- 100) 1957-59 1961 1961 1962 Grouping pro- averp ti o o r n - age Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov.r Dec Total index. 100.00 109.8 114.0 113.1 116.4 118.1 118.3 118.2 119.9 113.9 117.7 122.2 122.5 120.5 117.2 Final products, total 47.35 111.3 115.2 113.8 116.7 118.6 118.6 118.5 121.3 117.5 119.4 125.0 125.3 122 J 119.5 Consumer goods 32.31 112.7 115.1 113.9 116.9 118.7 118.5 118.2 121.3 116.5 118.8 126.5 126.7 122.2| 117.6 Equipment, including defense... 15.04 108.3 115.4 113.6 116.1 118.3 118.6 119.1 121.1 119.6 120.6 122.0 122.5 122.0 123.5 Materials 52.65 108.4 112.9 112.6 116.1 117.6 118.2 118.0 118.7 110.7 116.1 119.7 119.9 119.1 115.1 Consumer goods Automotive products 3.21 111.8 137.6 131.1 130.0 131.3 138.6 138.5 133.1 129.8 79.4 124.9 148.1 145.1 143.7 Autos 1.82 108.6 152.4 139.4 136.8 139.9 150.0 149.3 137.1 136.7 43.4 120.0 160.6 159.4 157.6 Auto parts and allied products 1.39 116.0 118.1 120.2 121.0 120.1 123.6 124.2 127.9 120.7 126.8 131.3 131.6 126.3 125.6 Home goods and apparel 10.00 110.5 111.9 109.2 119.3 122.9 120.5 117.6 120.8 107.7 119.6 124.0 123.9 120.1 110.9 Home goods 4.59 112.2 119.6 112.1 119.9 124.2 122.4 121.0 125.5 110.7 117.8 130.6 131.1 128.3 122.5 Appliances, TV, and radios.. 1.81 109.9 113.1 108.2 120.8 127.2 121.3 117.2 124.3 99.6 103.6 127.5 128.1 124.8 113.6 Appliances 1.33 110.7 115.1 109.5 121.5 132.5 125.8 120.8 129.9 107.1 101.7 127.1 127.5 128.1 122.1 TV and home radios .47 107.8 107.4 104.6 118.8 112.2 108.7 107.1 108.5 78.4 108.9 128.6 129.7 115.4 89.6 Furniture and rugs 1.26 112.8 124.9 113.8 119.8 121.3 121.9 120.1 123.5 116.8 126.7 131.4 131.6 129.6 130.2 Miscellaneous home goods... 1.52 114.5 122.9 115.2 118.8 123.0 124.1 126.3 128.5 119.0 127.3 133.6 134.2 131.3 126.6 Apparel, knit goods, and shoes.. 5.41 109.0 105.4 106.9 118.9 121.8 118.8 114.8 116.8 105.0 121.2 118.4 117.8 113.2 101.2 Consumer staples 19.10 114.0 113.0 113.4 113.5 114.4 114.1 115.1 119.7 118.9 125.0 128.0 124.5 119.5 116.8 Processed foods 8.43 110.5 108.0 104.6 103.9 104.7 106.3 107.4 112.0 116.1 124.2 131.0 126.0 117.5 110.5 Beverages and tobacco 2.43 109.5 95.7 95.5 100.2 109.3 109.7 116.6 125.0 113.6 117.8 116.4 113.9 105.9 Drugs, soap, and toiletries 2.97 120.7 123.9 123.6 126.2 126.2 127.7 128.7 133.2 125,3 133.9 132.4 134.2 131.2 130.8 Newspapers, magazines, and books. 1.47 114.9 115.2 116.2 116.3 117.8 115.7 116.2 115.9 114.8 117.6 119.9 118.1 116.4 116.1 Consumer fuel and lighting 3.67 119.2 126.1 135.7 132.3 128.7 122.8 120.0 124.3 125.7 127.6 128.9 122.7 124.3 Fuel oil and gasoline 1.20 107.6 112.8 114.8 113.3 109.5 105.1 108.6 113.4 114.2 112.3 113.5 110.1 111.5 115.6 Residential utilities 2.46 124.9 Electricity 1.72 125.3 134.5 152.8 146.6 140.8 130.3 121.6 126.9 134.0 139.1 139.7 128.1 130.1 Gas .74 124.0 Equipment Business equipment 11.63 110.1 116.9 114.5 117.5 120.2 121.3 122.0 124.6 122.0 122.6 124.9 125.3 124.3 126.2 Industrial equipment 6.85 107.4 114.1 111.9 112.8 114.3 115.7 116.8 119.6 117.8 118.8 120.0 119.7 118.8, 120.6 Commercial equipment 2.42 127.0 137.5 135.6 138.3 140.4 141.3 142.7 145.2 142.7 145.0 147.1 146.2 146.1 147.0 Freight and passenger equipment. 1.76 103.4 110.2 104.9 111.4 117.3 116.2 116.1 119.5 117.6 116.6 118.2 124.3 122.0 122.8 Farm equipment .61 93.4 85.7 88.7 104.5 114.0 120.2 114.9 113.7 99.6 94.1 111.4 108.0 106.61 116.8 Defense equipment 3.41 Materials Durable goods materials 26.73 104.8 110.8 109.5 113.4 115.3 116.9 116.5 116.1 108.7 111.3 116.8 116.6 115.5 112.0 Consumer durable 3.43 107.9 129.9 128.1 126.9 128.4 128.4 130.6 123.6 117.4 107.5 130.5 134.1 136.0 138.7 Equipment 7.84 105.7 115.7 115.0 116.7 119.0 120.9 119.7 119.8 115.4 116.1 119.4 120.2 121.7 122.7 Construction 9.17 105.2 100.5 94.8 100.2 103.4 109.6 114.7 118.8 113.8 119.4 119.9 116.7 111.0 102.3 Metal materials n.c.c 6.29 101.2 109.3 113.9 121.2 120.9 116.3 107.1 103.6 88.4 95.7 101.5 102.5 103.1 98.3 Nondurable materials 25.92 112.1 115.1 115.7 118.8 120.0 119.4 119.7 121.3 112.7 121.1 122.7 123.4 122.9 118.3 Business supplies 9.11 110.5 109.1 109.5 113.5 116.6 117.2 117.3 118.2 108.7 118.5 121.9 121.6 119.2 111.3 Containers 3.03 111.3 101.9 107.3 114.4 119.7 116.5 117.1 123.4 112.5 128.0 126.3 121.7 113.9 102.6 General business supplies. 6.07 110.0 112.7 110.6 113. 115.0 117.5 117.4 115.6 106.8 113.7 119.7 121.5 121.8 115.6 Nondurable materials n.e.c.. 7.40 120.6 128.0 128.8 134.3 135.1 133.9 135.9 136.6 124.9 134.8 135.3 137.9 139.0 134.4 Business fuel and power 9.41 107.1 110.8 111.5 111.7 111.4 110.2 109.2 112.3 107.0 112.8 113.6 113.6 113.7 112.4 Mineral fuels 6.07 102.0 105.7 105.9 106.8 106.2 105.4 102.5 104.8 96.4 103.7 104.8 106.7 107.8 105.6 Nonresidential utilities 2.86 121.0 Electricity 2.32 121.7 124.0 126. 123.1 124.6 122.3 126.6 133.6 136.1 140.3 139.3 134.2 130.7 General industrial 1.03 114.8 118.7 121.3 119.2 122.0 120.1 121.6 123.7 120.6 125.4 125.2 127.0 123.9 Commercial and other. 1.21 129.1 130.5 132.4 128.6 129.0 126.2 133.1 144.7 152.2 156.1 154.3 143.1 139.0 Gas .54 118.0 Supplementary groups of consumer goods Automotive and home goods. 7.80 112.0 127.0 120.1 124.3 127.4 129.3 128.4 128.8 118.8 102.2 128.3 138.1 135.2 131.2 Apparel and staples 24.51 112.9 111.3 112.1 114.8 116.1 115.3 115.1 119.1 116.0 124.3 125.9 123.0 118.1 113.3 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INDUSTRIAL PRODUCTION: N.S.A. 251 INDUSTRY GROUPINGS (1957-59« 100) 1957-59 1961 1961 1962 Grouping p p ti r o o o r n - - a a v g e e r- Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Octr Nov.r Dec. Total index. 100.00 109.8 114.0 113.1 116.4 118.1 118.3 118.2 119.9 113.9 117. 122.2 122.5 120.5 117.2 Manufacturing, total... 86.45 109.7 114.0 112.7 116.6 118.6 119.1 119.0 120.4 114.0 117.6 122.8 123. 727.3 777.4 Durable 48.07 107.0 115.1 112.9 116.6 118.6 119.6 118.8 119.2 113.6 112.8 120.4 121.7 121.0 119.3 Nondurable 38.38 112.9 112.6 112.5 116.6 118.6 118.4 119.1 121.8 114.5 123.6 125.8 125.5 121.7 114.9 Mining 8.23 102.6 104.6 103.1 103.7 103.5 104.9 105.5 107.5 101.0 106.4 106.5 107. 106.3 102.7 Utilities 5.32 122.8 Durable manufactures Primary and fabricated metals 12.32 102.2 110.7 112.5 117.5 119.0 116.5 109.8 108.4 97.6 104.5 110. 109. 109.0 106.0 Primary metals 6.95 98.9 108.3 115.3 123.0 123.8 117.7 103.9 98.7 82.9 92.0 98.5 99.9 101.7 96.8 Iron and steel 5.45 96.5 107.8 115.2 122.8 124.4 116.0 97.5 91.3 76.8 86.6 92.8 93.7 96.3 93,3 Nonferrous metals and products. 1.50 107.5 110.1 115.6 123.8 121.9 123.8 127.2 125.5 104.9 111.8 119. 122.4 121.2 109.3 Fabricated metal products 5.37 106.5 113.9 108.8 110.4 112.7 115.1 117.4 120.9 116.7 120.7 125.3 121.3 118.6 117.8 Structural metal parts 2.86 105.2 112.2 106.2 106.9 108.2 110.7 113.4 116.4 113.9 115.8 118.6 117.9 116.0 114.8 Machinery and related products 27.98 108.8 119.4 116.7 119.0 121.4 122.7 123.2 123.4 119.8 113.4 123.8 127.0 727.7 127.6 Machinery 14.80 110.4 117.7 116.2 119.8 122.9 123.7 123.9 126.7 119.3 121.1 127.6 127.0 126.2 126.8 Nonelectrical machinery 8.43 106.5 112.6 111.9 115.5 119.6 121.5 121.9 123.6 119.1 118.0 121. 120.7 120.5 122.4 Electrical machinery 6.37 115.7 124.4 122.0 125.6 127.2 126.7 126.5 130.8 119.6 125.2 136.1 135.3 133.6 132.7 Transportation equipment 10.19 103.6 119.8 115.2 116.0 117.9 119.8 120.9 117.0 118.0 97.1 116.6 126.3 127.2 127.6 Motor vehicles and parts 4.68 111.9 140.0 132.1 131.1 133.4 139.7 141.9 133.6 135.0 87.0 128.9 148.3 149. 148.9 Aircraft and other equipment... 5.26 95.7 102. 100.6 102.2 103.6 101.2 101.2 101.6 102.7 104.8 105.4 106.7 107.8 108.7 Instruments and related products.. 1.71 115.8 121.4 119.0 118.3 119.4 121.0 121.4 124.1 122.2 125.0 125.2 125.6 127.2 126.4 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 104.5 96.5 91.0 99.6 100.4 108.3 775.9 775.3 772.5 720.7 779.4 775.3 110.2 99.6 Clay, glass, and stone products. 2.99 106.3 100.7 94.0 97.7 100.6 109.7 116.4 118.7 117.7 121.8 119.5 118.9 113.9 102.9 Lumber and products 1.73 101.3 89.1 85.9 102.9 100.0 105.8 109.6 117.6 103.9 117.2 119.3 111.7 103.8 93.9 Furniture and miscellaneous.. 3.05 114.1 122.6 113.7 777.0 720.7 727.5 725.3 126.4 722.5 729.7 737.9 732.7 729.6 727.4 Furniture and fixtures...... 1.54 115.3 125.7 116.2 120.6 122.5 123.6 124.3 127.9 124.8 132.1 133.1 133.3 131.4 131.5 Miscellaneous manufactures. 1.51 112.8 119.5 111.1 113.4 117.5 120.0 122.2 124.9 120.2 126.0 130.6 130.9 127.9 123.2 Nondurable manufactures Textiles, apparel, and leather 7.60 108.4 107.8 109.0 119.5 722.0 775.0 775.5 777.9 702.4 779.5 777.4 775.9 774.4 704.7 Textile mill products 2.90 106.9 110.1 111.1 116.9 119.1 115.0 119.6 121.2 100.9 118.3 115.9 115.6 114.9 108.1 Apparel products 3.59 112.1 108.4 109.7 124.6 128.1 124.3 119.5 119.6 107.0 124.0 122.3 122.6 119.2 105.7 Leather and products 1.11 100.2 99.6 101.6 110.1 109.7 105.5 99.1 104.2 91.9 107.9 105.2 102.3 98.2 Paper and printing 8.17 112.4 111.7 111.8 775.7 775.9 118.4 777.7 777.5 705.7 777.2 779.5 122.4 720.5 777.3 Paper and products 3.43 113.7 108.3 114.4 121.5 123.7 122.0 120.0 122.0 107.8 123.5 122.0 127.3 123.0 108.6 Printing and publishing. 4.74 111.5 114.1 109.9 112.2 115.5 115.8 116.0 114.3 109.5 112.7 117.9 118.9 119.2 113.3 Newspapers 1.53 106.0 107.4 100.0 105.2 110.8 114.1 115.0 108.6 96.0 101.7 112.1 117.7 120.7 100.0 Chemicals, petroleum, and rubber.. 11.54 118.8 123.2 124.4 727.5 128.4 129.4 757.0 134.2 725.5 732.7 734.2 735.4 133.0 737.4 Chemicals and products 7.58 123.3 127.9 127.7 132.2 133.8 135.8 137.1 138.7 131.2 137.9 138,1 139.4 138.4 136.9 Industrial chemicals 3.84 129.6 139.0 138.6 143.5 144.8 145.2 146.8 147.7 142.5 148.0 149.2 151.6 153.3 Petroleum products 1.97 108.7 109.0 110.5 109.4 110.0 106.3 110.9 117.4 117.9 116.6 118.1 114.2 111.3 i i i 15 Rubber and plastics products 1.99 111.9 119.5 125.7 127.5 126.1 127.8 127.6 133.5 113.0 125.4 135.1 141.6 134.2 Foods, beverages, and tobacco... 11.07 110.4 105.7 103.1 103.6 106.0 107.3 709.5 114.7 775.2 722.4 727.4 723.5 775.4 707.4 Foods and beverages 10.25 110.3 106.8 102.7 103.1 105.3 107.0 108.9 114.5 116.4 122.5 128.1 123.9 115.3 108.5 Food manufactures 8.64 110.6 108.5 105.3 104 6 105.0 106.6 107.5 111.8 115.7 123.7 130 5 126.1 118.1 110.9 Beverages 1.61 107.9 97.0 89.2 95.0 106.5 109.4 116.5 129.1 120.3 116.0 114.8 111.7 100.3 Tobacco products .82 110.8 91.5 107.9 110.5 115.0 110.1 116.6 116.9 100.4 121.2 119.4 118.3 117.0 Mining Coal, oil, and gas 6.80 100.9 105.5 105.4 105.3 104.6 104.0 707.4 703.5 96.2 102.8 103.8 705.5 705.2 704.3 Coal 1.16 90.1 95.9 95.1 95.4 96.1 94.9 93. 103.8 60.7 98.6 99 2 102.5 100.2 92.3 Crude oil and natural gas 5.64 103.1 107.5 107.6 107.4 106.3 105.9 103.0 103.4 103.6 103.7 104.7 106.1 107.5 106.7 Oil and gas extraction 4.91 104.9 108.0 108.5 109.5 108.6 107.9 104.7 105.1 104.8 104.9 106. 107.6 109.6 108.7 Crude oil 4.25 103.0 104.8 105.3 107.0 105.7 105 9 103.1 104.0 103.6 103.7 104.9 105.6 106.7 105.2 Gas and gas liquids .66 116.8 128.5 128.9 125.5 126.7 120.5 114.8 111.9 Oil and gas drilling .73 91.3 103.8 101.3 92.8 91.2 92.4 91.9 92.0 95^7 *95li '9313 Metal, stone, and earth minerals. 1.43 110.5 100.5 91.8 96.2 98.5 705.5 725.0 725.5 723.9 723.5 779.7 774.5 705.5 95.2 Metal mining .61 111.9 103.0 101.6 106.3 105.3 112.9 133.7 134.8 126.6 119.5 113 2 105.6 96.2 94.8 Stone and earth minerals , .82 109.4 98.6 84.6 88.7 93.5 105.8 118.6 120.3 121.8 126.4 124.5 121.2 114.2 95.5 Utilities Electric. 4.04 123.2 128.5 137.5 133.2 131.6 125.7 124.5 130.8 135.3 139.8 139.5 131.6 130.4 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

252 BUSINESS ACTIVITY FEBRUARY 1963 SELECTED BUSINESS INDEXES (1957-59= 100) Industrial production fac M tu a r n in u g - 2 Prices 3 Nonag- Major market groupings Con- ricul- Major industry stru- tural Freight Depart- Period Final products groupings c ti o o n n - p e l m oy - - Em- load- store Whole- Total tracts ment— ploy- Pay- ings sales Con- sale Mate- Total» ment rolls sumer com- 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 - modity 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 72.8 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 88 93.3 93.2 1956 99.9 98.1 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 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 105 101.6 100.0 105.1 97.9 105 101.5 100.6 I960 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 1962 P105.2 »98 6 nn 3 114 1961—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 114.3 115.7 116.5 112.7 113.7 114.4 104.0 128.8 115 103.5 96.8 110.8 93.9 110 104.5 100.8 Feb 116.0 116.8 117.3 115.0 115.5 116.3 104.3 129.0 119 104.2 97.7 112.7 96.8 Mil 104.8 100.7 Mar 117.0 118.2 118.8 116.1 116.9 117.4 104.8 128.8 131 104.4 98.4 113.4 96.6 117 105.0 100.7 Apr 117.7 118.5 119.1 117.0 117.1 118.1 105.5 128.1 121 105.1 99.6 114.8 96.1 113 105.2 100.4 May 118.4 120.2 121.1 118.5 117.0 118.8 104.8 129.8 117 105.4 99.8 113.7 94.0 115 105.2 100.2 June 118.6 120.6 120.9 120.1 117.1 118.9 104.6 132.4 120 105.6 99.9 113.5 89.9 111 105.3 100.0 July 119.3 121.7 121.7 121.8 117.0 119.7 106.1 133.5 117 105.8 99.7 113.1 89.6 114 105.5 100.4 Aug 119.7 121.6 120.9 123.2 117.7 120.3 105.5 132.3 118 105.6 98.7 112.5 90.2 115 105.5 100.5 SeDt 119.8 122.0 121.8 123.2 118.1 120.4 105.9 133.0 113 105.7 98.8 115.2 90.0 117 106.1 101.2 Oct r119.2 121.5 '120.8 '123.6 '117.2 '119.7 105.5 133.5 117 105.9 98.6 113.2 90.3 110 106.0 100.6 119.5 '121.5 r120.8 '123.3 '117.7 '119.9 '106.2 '135.1 123 '105.8 '97.9 '113.3 94.1 118 106.0 100.7 Dec . 119.2 121.6 120.7 123.2 117.1 119.7 102.6 136.0 138 105.8 97.9 114.3 90.5 pin 105.8 100.4 1963—Jan *>119.0^122.1*>121.9H22A P116.2 P119.4 ^102.5 P131.5 ^105.7 *97.4 HU.6 88.2 «114 100.6 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 Type of ownership and 1QC1 type of construction Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total construction V7, 41,303 7 7T7 7 6S8 7,749 3,986 ,860 4,009 3,900 3,747 ,773 3,425 ,188 3,198 By type of ownership: Public 1? ^47 13,599 1091 9?? 877 1,475 1711 1,227 1,331 1,231 1 1 1,003 1 1,100 Private 24,588 27,705 1621 1,736 1,871 2,511 2,650 2,782 2,569 2,516 2,591 2,174 2,422 2,089 2,009 By type of construction: Residential. •• •• 18,039 1 1.1P0 1.IP? 1,552 1 1,656 1,623 1,651 1 SIP 1 610 t 361 1? 115 13.010 883 8S3 893 1,325 1JO? 1,275 1,242 1,197 1,177 1 1,075 1 Public works and utilities. • • 8,897 10,255 704 615 664 1,108 943 915 1,002 926 802 735 740 761 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

FEBRUARY 1963 CONSTRUCTION 253 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 m n i i - a - l Total Indu B s u - sine C ss om- Public O n d re t o e h s n n i e - - - r Total M ta i r l y i- H w ig ay h- S w a e a n w t d e e r r Other trial mercial utility tial 1954 39,234 27,556 15,379 8,403 2,030 2,212 4,161 3,774 11,678 [,003 3,680 985 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 1,085 5,491 1956 45,815 33,067 17,677 11,608 3,084 3,631 4,893 3,782 12,748 1,360 4,431 1,275 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 1,344 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 1,387 7,123 1959 l 56,555 40,344 24,962 11,044 2,106 3,930 5,008 4,338 16,211 1,488 5,870 1,467 7,386 I960 55,556 39,603 22,546 12,354 2,851 4,180 5,323 4,703 15,953 1,386 5,464 1,487 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 1962? 61,095 43,389 24,846 13,284 2,814 4,964 5,506 5,259 17,706 1,266 6,254 1,754 8,432 1962—Jan 59,166 41,077 23,187 12,875 2,590 4,928 5,357 5,015 18,089 924 7,250 1,636 8,279 Fcb . . .. 56,714 39,909 22,245 12,622 2,592 4,756 5,274 5,042 16,805 1,211 5,414 1,666 8,514 Mar 57,748 40,553 22,507 12,897 2,653 4,795 5,449 5,149 17,195 1,328 5,771 1,715 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 60,764 43,472 25,018 13,119 2,886 4,752 5,481 5,335 17,292 1,354 5,830 [,805 8,303 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 Aug 62,829 45,244 25,957 13,835 2,936 5,273 5,626 5,452 17,585 1,244 6,195 1,771 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 63,517 43,843 25,013 13,478 2,885 5,018 5,575 5,352 19,674 [,492 7,786 1,764 8,632 Nov 62,610 44,059 25,432 13,424 2,820 4,967 5,637 5,203 18,551 ftftt 6,922 1,755 8,871 Dec p . 61,954 44,264 25,811 13,397 2,788 4,979 5,630 5,056 17,690 6,343 1 .738 1963 Jan P 62,590 45,003 26,334 13,531 2,773 5,086 5,672 5,138 17,587 1 764 i 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) Private underwritten Period Total Non- Total N fa o rm n- p M o e li t t r a o n - p m o e li t t r a o n - Total fam 1 i - ly fam 2- ily M fam ul i t l i y - Public Total FHA VA 1954 1.220 897 324 1,202 1,077 34 90 19 583 276 307 1955 ,329 976 353 1,310 1,190 33 87 19 670 111 393 1956 1,118 780 338 1,094 981 31 82 24 465 195 271 1957 ,042 700 342 993 840 33 120 49 322 193 128 1958 ,209 827 382 1,142 933 39 170 68 439 337 102 1959 ,379 946 432 1,343 1,079 49 215 36 458 349 109 1959 1,554 1,077 All 1,517 1,234 56 227 37 458 349 109 I960 ,296 889 407 1,252 995 44 214 44 336 261 75 1961 1,365 948 417 1,313 975 44 295 52 328 244 83 1962*> 483 1 046 438 1 455 29 339 261 78 1961 Dec 1 295 1,255 87 63 24 82 56 2 25 4 23 17 6 1962 Jan 1,273 1,247 83 60 23 81 54 3 23 2 23 18 4 Feb 1,152 1,134 78 56 22 76 54 3 20 1 20 15 5 Mar 1,431 1,407 118 84 34 115 80 5 31 3 27 21 6 Apr 1,542 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 1,425 1,399 140 96 43 136 96 4 36 3 31 24 7 July 1,466 1,447 139 98 42 136 95 4 36 4 33 25 7 Aug 1,529 1,500 148 99 49 146 101 4 41 2 36 28 8 Sept 1,289 1,261 115 83 33 114 76 4 34 2 26 20 6 Oct 1,550 1,504 136 93 43 134 91 4 39 3 30 23 7 Nov V1,591 Pl,576 2>122 83 39 P121 81 4 36 P2 25 19 6 Dec VI 499 *>1,479 *96 71 26 P 95 n 20 16 5 i 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 arm and nonfarm series developed initially by the Bureau of Labor inspections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 EMPLOYMENT FEBRUARY 1963 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force Unemploy- Period i T ns 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 Unem- (per cent) Total In c u n l o t n ur a a g l ri- In ployed S.A. industries agriculture 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 1962 130,081 74,681 71,854 C67,846 62,657 5,190 4,007 55,400 5.6 1962—Jan 129.118 72,564 69,721 65,058 60,641 4,417 4,663 56,554 5,8 Feb. 129,290 73,218 70,332 65,789 61,211 4,578 4,543 56,072 5 6 Mar. 129,471 73,582 70,697 66,316 61,533 4,782 4,382 55,889 5 5 Apr 129,587 73,654 70,769 66,824 61,863 4,961 3,946 55,933 5.5 May 129,752 74,797 71,922 68,203 62,775 5,428 3,719 54,956 5.4 June 129,930 76,857 74,001 69,539 63,249 6,290 4,463 53,072 5.5 July 130,183 76,437 73,582 69,564 63,500 6,064 4,018 53,746 5.3 130,359 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 Dec 131,096 74,142 71,378 67,561 63,495 4,066 3,817 56,954 5.6 1963—Jan 131,253 73,323 70,607 65,935 61,730 4,206 4,672 57,930 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 - Tr u a t p i t n o u i s l n b i p t l o i & i e c r s ta- Trade Finance Service G m ov e e n r t n- 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 l 53,380 16,667 731 2,955 4,010 11,125 2,597 7,105 8,190 I960 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 1962*> 55,325 16,750 647 2,696 3,925 11,571 2,793 7,757 9,185 fEASONALLY ADJUSTED 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 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 55,536 16,795 646 2,731 3,932 11,627 2,796 7,805 9,204 SeDt 55,583 16,805 641 2,715 3,928 11,612 2,799 7,809 9 274 Oct 55,647 16,781 638 2,716 3,935 11,594 2,813 7,831 9 339 Nov 55,597 16,695 636 2,696 3,918 11,600 2,822 7,846 9,384 Decp . 55,617 16,690 623 2,655 3,923 11,595 2,821 7,874 9,436 1963 Jan v 55,551 16,636 623 2,648 3,846 11,649 2,828 7,885 9,436 NOT SEASONALLY ADJUSTED 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 July 5 5 5 5 , , 7 4 7 9 7 3 1 16 6 , , 7 8 8 7 2 0 6 66 4 1 8 2 2 , , 8 9 3 8 9 2 3 3 , , 9 9 6 4 5 8 1 1 1 1 , , 5 5 8 4 2 0 2 2 , , 8 8 3 0 9 8 7 7, , 8 8 8 8 1 4 9 8 } 1 8 7 7 1 0 55,709 16,931 658 3,031 3,963 11,558 2,841 7,867 8,860 Sect 56,252 17,127 651 2,978 3,959 11,627 2,813 7,856 9 241 Oct 56,333 17,028 645 2.936 3,959 11,682 2,807 7,870 9,406 Nov 56.214 16,891 638 2,801 3,934 11,842 2,808 7,830 9,470 Decv 56;482 16,733 626 2,533 3,939 12,426 2,807 7,803 9,615 1963 Jan P . . 54,842 16,550 617 2,346 3,804 11,532 2,803 7,751 9,439 1 Data includes Alaska and Hawaii beginning with 1959, ending nearest the 15th of the month. Proprietors, self-employed persons, domestic servants, unpaid family workers, and members of the NOTE.—Bureau of Labor Statistics; data include all full- and part- armed forces are excluded. time employees who worked during, or received pay for, the pay period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 EMPLOYMENT AND EARNINGS 255 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1962 1963 1962 1963 Jan. Nov. Dec.*7 Jan. *' Jan. Jan." Total 12,197 12,324 12,324 12,265 12,118 12,518 12,371 12,193 Durable goods 6,760 6,875 6,888 6,860 6,764 6,994 6,937 6,868 Ordnance and accessories 96 101 101 100 97 102 102 101 Lumber and wood products 535 543 541 545 507 547 530 516 Furniture and fixtures 308 317 317 316 308 323 319 316 Stone, clay, and glass products 448 459 451 447 432 465 447 431 Primary metal industries 966 885 898 895 969 894 900 898 Fabricated metal products 834 847 850 845 840 865 860 851 Machinery except electrical 977 1,031 1,022 1,014 982 1,017 1,019 1,019 Electrical machinery 998 1,029 1,035 1,037 1,008 1,060 1,054 1,047 Transportation equipment 1,067 1,119 1,132 1,121 1,111 1,160 1,169 1,167 Instruments and related products 224 228 227 228 225 231 229 229 Miscellaneous manufacturing industries. 307 316 314 312 288 332 309 293 Nondurable goods 5,437 5,449 5,436 5,405 5,354 5,524 5,434 5,325 Food and kindred products 1,184 1,168 1,176 1,168 1,109 1,188 1,148 1,094 Tobacco manufactures 78 79 76 75 79 84 80 76 Textile-mill products. 799 780 778 774 793 788 780 769 Apparel and other finished textiles 1.062 1,093 1,090 1,080 1,062 1,113 1.098 1,080 Paper and allied products 472 476 478 475 470 481 480 473 Printing, publishing and allied industries 594 597 585 583 592 604 590 581 Chemicals and allied products 512 520 518 520 509 519 516 517 Products of petroleum and coal 129 120 120 119 127 120 519 118 Rubber products 290 300 301 301 294 309 307 305 Leather and leather products 317 316 314 310 319 319 317 312 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 1962 1963 1962 1963 1693 Jan. Nov. Jan. Nov. Decv> Jan.? Total 39.8 40.4 40.3 40.2 94.88 97.36 98.42 97.44 Durable goods 40.3 41.1 41.0 40.7 103.17 106.19 107.27 105.82 2.56 2.59 2.61 Ordnance and accessories 40.6 41.4 41.6 41.5 115.21 118.69 120.96 120.67 2.81 2.86 2.88 Lumber and wood products 38.1 39.7 39.7 40.2 73.48 79.00 78.01 77.62 1.97 2.00 1.99 Furniture and fixtures 39.4 40.6 40.4 40.5 75.66 80.16 81.58 79.00 1.94 1.96 1.98 Stone, clay, and glass products , 39.5 40.9 40.5 40.5 92.97 100.28 97.84 97.63 2.39 2.44 2.44 Primary metal industries 40.6 40.1 40.2 40.4 122.81 117.91 120.39 121.39 3.01 2.97 2.98 Fabricated metal products 40.5 41.3 40.7 41.2 102.36 105.63 106.04 105.78 2.54 2.57 2.58 Machinery except electrical 41.3 41.7 41.6 41.5 110.27 112.75 114.26 113.71 2.67 2.73 2.74 Electrical machinery 40.3 40.5 40.4 40.5 95.91 98.66 100.21 98.82 2.38 2.43 2.45 Transportation equipment 40.8 42.9 42.3 41.2 118.66 128.27 129.73 123.55 2.88 2.99 3.01 Instruments and related products 40.8 40.9 41.2 40.8 99.14 101.76 102.18 100.78 2.43 2.47 2.48 Miscellaneous manufacturing industries. 39.3 39.3 39.5 39.4 77.03 78.01 79.40 78.79 1.97 1.97 2,00 Nondurable goods 39.2 39.4 39.6 39.4 84.24 86.72 86.94 86.24 2.16 2.20 Food and kindred products 40.4 41.0 40.9 40.9 90.45 93.52 94.12 94.02 2.25 2.31 Tobacco manufactures 36.6 39.4 38.5 39.1 66.25 72.35 74.66 75.07 1.81 1.92 Textile-mill products 40.3 39.9 40.2 40.0 66.17 68.45 68.45 67.26 1.65 1.69 Apparel and other finished textiles 34.7 36.1 36.3 35.3 57.62 60.62 59.95 58.97 1.67 1.68 Paper and allied products , 42.3 42.5 42.8 42.3 100.20 103.28 104.68 103.15 2.38 2.45 Printing, publishing and allied industries 38.1 38.1 38.3 38.2 105.36 108.49 109.62 107.54 2.78 2.83 Chemicals and allied products 41.5 41.4 41.4 41.5 109.56 111.37 112.17 112.05 2.64 2.70 Products of petroleum and coal 41.9 41.6 41.7 42.1 128.44 127.71 126.38 130.31 3.08 3.11 Rubber products 40.9 40.9 41.0 41.3 99.31 101.84 103.00 103.16 2.44 2.51 Leather and leather products 37.8 36.9 37.5 37.2 66.18 64.03 64.84 66.29 1.71 1.74 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

256 DEPARTMENT STORES FEBRUARY 1963 SALES AND STOCKS, BY DISTRICT (1957-59= 100) Federal Reserve district Period United States 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 an t t - a c Ch a i g - 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 a n o - SALES 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 '105 107 104 103 106 108 100 110 1961 109 112 112 107 110 '108 '110 105 '104 108 111 102 115 1962 114 114 116 110 113 113 117 110 109 109 114 108 123 SEASONALLY ADJUSTED 1961—Dec 113 116 116 '112 114 112 '114 108 '107 108 112 106 120 1962—Jan 110 113 112 110 112 109 110 104 98 104 105 101 119 Feb '111 101 112 104 109 111 118 103 108 103 114 110 120 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 115 110 113 115 117 115 117 112 113 108 116 108 121 111 112 108 107 110 110 115 108 105 106 111 107 123 July 114 115 113 109 114 112 118 111 112 112 116 112 123 115 117 117 112 109 '116 118 113 108 111 113 107 124 Sept 117 116 120 113 116 118 121 115 113 110 118 113 122 Oct 110 110 112 106 108 107 112 107 104 103 108 100 121 Nov . 118 '120 121 111 116 119 125 113 111 114 117 109 128 Dec 116 118 112 114 122 113 115 111 PH7 112 P127 NOT SEASONALLY ADJUSTED 1961 Dec 204 224 213 r203 210 208 '204 191 '187 190 '193 '183 '218 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 '93 105 93 90 87 97 91 99 Apr 112 115 113 112 114 113 115 108 105 112 111 103 May 110 108 109 110 111 110 111 111 113 103 113 104 110 105 108 105 102 102 '102 104 103 97 106 105 96 117 July 96 87 86 84 95 94 106 92 94 88 105 102 112 AUR 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 113 115 120 112 109 115 113 111 110 111 111 102 117 Nov 141 147 152 145 141 142 139 '136 133 130 133 '126 145 Dec P2U 225 216 202 211 2>211 219 201 201 196 ^203 193 2>231 STOCKS 1955 85 88 78 87 86 90 86 89 93 88 90 '79 81 1956 94 96 89 95 93 99 98 97 102 98 99 '91 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 '111 '109 105 112 '110 108 109 '111 108 111 '103 '115 1962 117 116 115 112 116 118 118 119 117 112 113 112 125 SEASONALLY ADJUSTED 1961 Dec 113 '115 112 '108 115 114 '110 113 119 110 111 '105 118 1962—Jan 114 114 112 110 114 116 112 114 112 111 111 111 121 Feb 115 115 114 110 114 '118 111 114 114 113 113 113 122 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 117 115 113 112 115 116 114 116 121 112 115 114 127 118 115 113 112 117 119 115 121 117 113 114 115 128 July 118 118 113 113 116 119 120 122 117 109 115 114 127 118 115 116 113 115 117 116 123 116 110 115 112 126 Scot 118 114 116 112 118 117 119 122 115 113 111 110 127 Oct 120 116 118 114 118 119 125 124 117 113 111 113 129 Nov 118 116 119 '112 116 121 123 122 119 '113 108 '112 '118 Dec 118 120 112 114 122 130 121 121 109 111 110 108 NOT SEASONALLY ADJUSTED 1961—Dec '103 '107 105 '98 105 105 98 101 106 104 103 '97 108 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 '113 107 117 111 104 109 108 123 July 112 108 102 103 112 '112 110 119 112 107 110 109 123 117 114 113 109 115 119 116 122 117 111 112 115 126 Sept 125 123 121 119 125 126 126 129 123 120 116 117 132 Oct 135 134 134 131 135 135 140 135 133 128 123 127 143 Nov 135 137 138 '132 138 138 144 136 135 '131 126 128 129 Dec 110 112 102 105 112 115 108 108 105 103 101 118 NOTE.—Based on retail value figures; sales are average per trading day; For description of series and for back data beginning with 1947, see stocks are as of end of month or averages of monthly data. July 1962 BULL., p. 803. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 DEPARTMENT STORES; FOREIGN TRADE 257 DEPARTMENT STORE MERCHANDISING DATA Amounts (millions of dollars) Ratios to sales Period Out- Out- Stocks Sales Stocks st i a n n g d- ce R i e p - ts o N rd e e w rs Stocks st i a n n g d- o p u lu ts s , c R ei e p - ts orders orders orders 1953 406 1,163 421 408 401 3.0 J 1 4 1 1 0 1954 409 1,140 388 410 412 3.0 L.O 4.0 1 0 1955 437 1,195 446 444 449 2.9 L.I 4.0 1.0 1956 454 1,286 470 459 458 3.0 t.l 4.1 1.0 1 19 9 5 5 8 7 4 4 5 6 9 2 1 1 , , 3 3 3 2 8 3 4 4 6 3 1 7 4 4 6 6 1 2 4 4 6 5 4 8 3 3 . . 1 0 !o 4 4 . . 1 1 1 1 . 0 0 1959 488 1,391 510 495 498 3.0 1 4.1 1.1 1 I9 9 6 6 0 1 . . r5 4 0 9 6 4 1 1 , , 4 4 7 8 4 5 '5 5 2 1 9 8 » 4 -5 9 1 6 2 r5 4 1 9 7 3 3 3 . . 1 1 1 1 . . 1 1 r4 4 . . 2 3 1 1. 0 0 1962 526 1,594 571 535 534 3.2 1.2 4.4 1.0 1961—Dec. ••976 1,421 r394 r616 r451 1.5 .4 1.9 .6 1962 Jan . 408 1,408 476 410 495 3.5 1.2 4.6 1.0 Feb 360 1,466 532 418 474 4.1 1.5 5.6 1 2 Mar 472 1,576 498 582 548 3.3 1.1 4.4 1.2 Apr. . . . 502 1,589 457 515 474 3.2 .9 4.1 1.0 May 507 1,571 499 489 531 3.1 1.0 4.1 1.0 472 1,509 679 410 590 3.2 1.4 4.6 .9 July 406 1,490 724 387 432 3.7 1.8 5 5 1 0 Aug 482 1,571 675 563 514 3.3 1.4 4.7 1.2 Scot. . 493 1,700 706 622 653 3.4 1.4 4.9 1.3 O N c o t v . . . .. 5 6 5 5 6 7 1 1 , , 8 8 4 9 5 2 6 5 6 4 6 9 7 7 0 0 1 4 6 5 6 8 1 7 32..39 1. . 2 8 43..57 1 1 . . 3 1 Dec.37 998 1,508 386 614 451 1.5 .4 1.9 .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, seasonally adjusted) Exports : Imports 2 Export surplus Period 1960 1961 1962 ' 1960 1961 r 1962 r 1960 1961 r 1962 r Month: Jan... 1,561 1,646 1,681 1,246 1,151 1,315 315 495 366 Feb... 1,566 1,739 1,853 1,348 1,146 1,313 218 593 540 Mar.. 1,518 1,713 1,632 1,290 1,159 1,332 228 554 300 1,622 1,658 1,799 1,349 1,159 1,374 273 499 425 May!! 1,659 1,581 1,774 1,269 1,155 1,384 390 426 390 June.. 1,634 1,599 1,862 1,277 1,177 1,344 357 422 518 July.. 1,707 1,680 1,716 1,271 1,368 1,354 436 312 362 Aug.. 1,625 1.661 1,650 1,256 1,262 1,374 369 399 276 Sept.. 1,647 i;673 1,935 1,221 1,280 1,498 426 393 437 Oct... 1,668 1,788 1,503 1,206 1,317 1,339 462 471 164 Nov.. 1,681 1,737 1,705 1,162 1,303 1,420 519 434 285 Dec... 1,645 1,740 1,855 1,125 1,296 1,353 520 444 502 Quarter: 4,645 5,098 5,166 3,884 3,456 3,960 761 1,642 1,206 ii!!.. 4,915 4,838 5,435 3,895 3,491 4,102 1,020 1,347 1,333 in... 4,979 5,014 5,301 3,748 3,910 4,226 1,231 1,104 1,075 IV... 4,994 5,265 5,063 3,493 3,916 4,112 1,501 1,349 951 Year 3.. 19,609 20,152 20,901 15,017 14,713 16,397 4,592 5,439 4,504 1 Exports of domestic and foreign merchandise; excludes Dept. of 2 General imports including imports for immediate consumption plus Defense shipments of grant-aid military equipment and supplies under entries into bonded warehouses. Mutual Security Program. 3 Sum of unadjusted figures. NOTE.—Bureau of the Census data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 PRICES FEBRUARY 1963 CONSUMER PRICES (1957-59* 100) Housing Read- Other Period it A em ll s Food Total Rent e G a l n e a c d s - p S le a e o u n t l r m i d o d - H n f o u is r u h - se- H o h p o o e u l r d s a e - - p A a p re - l T p t o r i a r o n t n a s - - M c ic a e a r d e l - s c P o a e n r r a e - l re t a i c i n n o r g e d n a- g s a o i e c n o r e v d d s - s tricity fuels ings tion 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—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 99.0 107.5 102.9 106.8 114.6 106.8 110.0 105.6 105.5 103.8 104.8 105.8 108.0 100.1 98.5 107.4 102.5 107.4 114.6 106.8 110.3 105.5 Sect 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 Nov 106.0 104.1 105.1 106.2 108.1 103.6 98.7 107.8 104.3 108.3 115.0 107.1 110.1 105.6 Dec 105.8 103.5 105.2 106.2 108.1 104.8 98.6 108.1 103.9 108.0 115.3 107.6 110.0 105.6 NOTB.—Bureau of Labor Statistics index for city wage-earner and clerical-worker families. WHOLESALE PRICES: SUMMARY (1957-59-* 100) Other commodities All com- Farm Proc- Non Period m t o ie 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 t e e c x s . - , H e i t d c e . s, F e u tc e . l C ic e h a t e c l m s . , - R b e u t e c r b . , - L b e u t e c m r . , - P e a t p c e . r'Metals c M e h r i a n y - - F t e u u t r r c e n . , i- t m m al i l e n i - c - b T ac o c - o n c M e e l o i l s u a - - s erals 1953. 92.7 105.9 97.0 90.1 102.8 94.1 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 88.8 84.3 83.2 93.9 88.8 93.8 110.5 1955. 93.2 97.9 94.3 92.4 100.7 89.5 94 <5 96.9 99.2 10? 3 91.1 90.0 85.8 94.3 91 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.? 95.1 98.1 1957. 99.0 99.2 97.9 99.2 100.8 94.9 102.7 99.6 100.2 98.5 99.0 99.7 97.7 99.4 98.9 98.0 96.6 1958. 100.4 103.6 102.9 99.5 98.9 96.0 98.7 100.4 100.1 97.4 100.1 99.1 100.1 100.2 99.9 99.7 101.5 1959. 100.6 97.2 99.2 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.2 100.4 101.2 102.2 101.9 1960. 100.7 96.9 99.9 101.3 101.5 105.2 99 6 100.2 99.9 100.4 101.8 101.3 102.4 100.1 101.4 102.5 99.3 1961. 100.3 96.0 100.6 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100.7 102.3 99.5 101.8 103.2 103.9 1961--Dec 100.4 95.9 r101.0 100.9 100.3 108.2 1006 98.1 94.5 94 6 99.6 100.b r102.2 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 98.1 93.3 95.? 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. 97.0 92.7 91 4 99.7 99.8 102.3 98.7 101.6 104.2 107.2 Sent 101.2 100.6 103.3 100.8 100.6 107.5 100.8 96.9 92.8 97.0 99.5 99.7 102.3 98.6 101.5 104.2 109.1 O N c o t v 1 1 0 0 0 0 . . 6 7 9 9 8 9 . . 7 3 1 1 0 0 1 1 . . 5 3 1 1 0 0 0 0. . 7 7 1 1 0 0 0 0 . . 5 5 1 10 0 7 7 . . 3 4 1 1 0 0 0 0 . . 8 8 9 9 7 7 . . 1 0 r9 9 3 3 . . 7 1 9 9 6 6 . . 6 ? 9 99 9 . . 1 3 r9 9 9 9 . . 3 4 r1 1 0 0 2 2 . . 2 2 r9 9 8 8. . 5 6 1 1 0 0 1 1 . .6 6 1 1 0 0 4 4. . 5 5 1 1 0 0 8 9 8 7 Dec 100.4 97,3 100.9 100.7 100.6 106.8 100.9 96.8 94.4 95.9 99.0 99.4 102.1 98.5 101.5 104.3 110.2 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 PRICES 259 WHOLESALE PRICES: DETAIL (1957-59= 100) 1961 1962 1961 1962 Group Group Dec. Oct. Nov. Dec. Dec. Oct. Nov. Dec. Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 87.2 97.5 '96.4 89.2 Woodpulp 95.0 91.3 89.4 89.4 Grains , 98.4 98.5 99.5 101.1 Wastepaper 93.8 96.1 96.0 94.6 Livestock and poultry 92.4 98.6 98.3 96.2 Paper 102.0 102.3 102.2 102.2 Plant and animal fibers 98.1 97.5 97.6 98.1 Paperboard 89.7 94.0 '94.1 94.1 Fluid milk 105.5 102.5 r102.4 101.8 Converted paper and paperboard.... 101.2 100.0 99.7 99.7 Eggs 96.0 103.1 112.4 99.3 Building paper and board 99.7 96.3 96.6 96.8 Hay and seeds 103.9 103.1 106.9 108.2 Other farm products 94.5 89.7 90.1 89.0 Metals and Metal Products: Processed Foods : Iron and steel 100.2 98.7 98.4 98.7 D C S C P A M u a a e a n e e c g n r i i t a k r e m a n a y t a a r b , e a l g d l p a p l e e a n r o s d f n o a d a u d d n t b l s c t u d e b r o c v a y a n t f n e , k s r f r d o e e a a a c r z n g o y n t e d e i i d n o l p s m n i r c e f o a r e r d u t y e u c i r t r c s i e a t f , s a i l s s m a h n d veg- , , , , , 1 1 1 1 9 8 8 0 0 1 0 5 2 4 0 6 0 1 . . . . . . . 9 6 7 4 1 2 2 '1 1 1 1 0 9 9 8 0 0 0 7 6 5 0 3 7 0 . . . . . . . 6 4 2 2 0 7 0 1 1 1 1 ' 0 9 9 8 0 0 0 7 2 6 0 0 8 2 . . . . . . . 7 2 3 2 1 0 5 1 1 1 9 9 8 8 0 0 0 9 5 0 5 8 7 2 . . . . . . . 6 7 2 2 0 6 8 N H P H M F F l a a o a e u e u b b r a n m t c d r r t a f t i i i w e l b s c c n r i a a c g a r n t t o o r g e e e e n u d d q t s e a u n q s i i m t o n u p r e i n m u e p r s t c s m a e t t r l n u e s u t r n c a t 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 1 1 1 1 9 9 0 0 0 0 0 8 4 2 0 4 4 3 . . . . , . . 6 5 0 8 1 4 2 1 1 1 '9 9 9 9 0 0 0 7 7 2 8 3 3 3 . . . . . . . 2 9 7 2 7 7 8 1 1 1 ' ' 9 9 9 9 0 0 0 7 2 8 8 3 3 3 . . . . . . . 5 8 3 1 8 7 9 1 1 1 9 9 9 9 0 0 0 7 3 8 7 3 3 3 . . . . . . . 5 6 2 7 7 8 8 Crude vegetable oils 96.0 80.9 '79.8 78.6 Refined vegetable oils , 113.1 86.2 88.7 90.0 Machinery and Motive Products: Vegetable oil and products 103.4 90.9 91.8 91.8 Miscellaneous processed foods 102.3 104.6 r101.2 100.4 Agricultural machinery and equip.... 108.5 109.6 110.2 110.3 Construction machinery and equip.. . 107.6 108.0 108.2 108.3 Textile Products and Apparel: Metalworking machinery and equip... 108.4 109.3 109.3 109.3 General purpose machinery and Cotton products 101.9 101.0 100.7 100.7 equipment 102.6 103.7 103.7 103. Wool products 97.7 99.6 100.1 100.2 Miscellaneous machinery 103.0 103.6 103.7 103. Man-made fiber textile products.... 93.2 93.6 93.6 93.7 Special industry machinery and equip- Silk products 111.4 129.5 130.3 143.3 ment (Jan. 1961= 100) 100.9 102.2 102.5 102.5 Apparel 101.2 101.7 101.7 101.6 Electrical machinery and equip 99.4 98.0 97.6 97.3 Other textile products 123.1 121.6 r127.8 127.9 Motor vehicles 100.3 100.4 100.4 100.4 Transportation equip., RR. rolling Hides, Skins, Leather; and Products: stock (Jan. 1961= 100) 100.5 100.5 100.5 100.5 Hides and skins 112.5 108.8 107.1 101.6 F L o e o at t h w e e r a . r 1 1 1 0 0 8 . . 5 5 1 1 0 0 6 8 . . 5 6 1 1 0 0 6 8 . . 8 6 1 1 0 0 6 8 . . 1 7 Furn b it l u e r s e : and Other Household Dura- Other leather products 104.2 104.8 105.0 104.9 Household furniture 103.3 104.0 104.1 104.2 Fuels and Related Products, and Power: C Fl o o m or m c e o rc v i e a r l i n f g u s rniture 1 9 0 9 2 . . 2 2 1 9 0 6 2 . . 8 5 1 9 0 6 2 . . 8 5 1 9 0 6 2 . . 4 5 C C G o o a k a s l e fuels (Jan. 1958= 100) 1 1 9 1 0 8 8 3 . . . 6 4 6 1 1 9 2 0 7 2 3 . . . 2 7 6 '1 1 2 9 0 2 7 3 . . . 3 7 6 1 1 9 0 2 8 3 3 . . . 6 0 0 H T O e o th l 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 ia 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 3 4 2 . . . 8 9 3 1 9 9 0 3 0 2 . . . 0 7 9 1 '9 9 0 3 0 2 . . . 1 7 9 1 9 9 0 2 0 2 . . . 9 7 8 Electric power (Jan. 1958= 100) 102.5 102.7 102.7 102.7 Crude petroleum and natural gasoline 98.2 98.1 98.1 98.1 Nonmetallic Mineral Products: Petroleum products, refined 98.9 98.9 Flat glass 96.2 96.6 96.6 96.6 Chemicals and Allied Products: Concrete ingredients....... 101.8 103.3 103.3 103.2 Concrete products 102.4 102.9 102.9 102.7 Industrial chemicals 97.1 96.1 95.9 95.9 Structural clay products 103.3 103.4 103.4 103.5 Prepared paint 103.6 103.8 103.8 103.8 Gypsum products 105.0 105.0 105.0 105.0 Paint materials 97.1 93.9 r93.9 92.9 Prepared asphalt roofing 102.8 89.4 89.4 89.4 Drugs and Pharmaceuticals 97.3 95.1 95.1 94.7 Other nonmetallic minerals. 101.7 102.2 102.4 102.4 Fats and oils, inedible 78.4 76.7 r75.9 72.8 Mixed fertilizers 103.6 103.4 103.1 102.8 Fertilizer materials 104.7 99.0 99.2 99.6 Tobacco Products and Bottled Bev- Other chemicals and products 99.1 99.5 99.5 99.5 erages: Rubber and Products: Tobacco products 102.0 102.2 102.2 102.2 Alcoholic beverages 100.5 101.5 101.5 101.2 Crude rubber 93.8 92.7 92.8 94.7 Nonalcoholic beverages 116.2 117.4 117.4 117.4 Tires and tubes 89.9 86.4 '88.0 89.0 Miscellaneous rubber products 99.4 100.0 '99.7 99.7 Miscellaneous Products: Lumber and Wood Products: Toys, sporting goods, small arms... 100.9 101.2 101.2 101.3 Manufactured animal feeds 108.6 112.8 '114.9 115.7 Lumber 93.7 96.7 96.3 95.9 Notions and accessories 98.8 98.7 98.7 98.7 Millwork 100.9 102.3 102.3 102.1 Jewelry, watches, photo equipment.. 104.2 104.4 104.4 104.4 Plywood 92.7 91.9 91.5 90.8 Other miscellaneous products 101.1 101.6 '101.7 101.5 NOTE.—Bureau of Labor Statistics Index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 NATIONAL PRODUCT AND INCOME FEBRUARY 1963 GROSS NATIONAL PRODUCT OR EXPENDITURE (In billions of dollars) 1961 1962 Item 1929 1933 1941 1950 1958 1959 1960 1961 1962 IV I n in IV GTOSS national product 104.4 56.0 125.8 284.6 444.5 482.7 503.4 518.7 553.9 538.6 545.0 552.0 555.3 563.5 Personal consumption expenditures 79.0 46.4 81.9 195.0 293.2 313.5 328.5 338.1 356.7 346.1 350.2 354.9 358.2 363.5 Durable goods 9.2 3.5 9.7 30.4 37.3 43.6 44.8 43.7 47.5 46.6 46.3 47.2 47.1 49.6 Nondurable goods 37.7 22.3 43.2 99.8 141.6 147.1 151.8 155.2 162.0 157.2 159.9 161.3 163.0 163.9 32.1 20.7 29.0 64.9 114.3 122.8 131.9 139.1 147.1 142.3 144.1 146.3 148.1 150.1 Gross private domestic investment 16.2 1.4 18.1 50.0 56.6 72.7 72.4 69.3 76.6 76.6 75.9 77.4 76.3 76.2 8.7 1.4 6.6 24.2 35.5 40.2 40.7 41.6 44.5 43.2 41.6 44.5 46.1 45.0 Residential, nonfarm ..... 3.6 .5 3.5 14.1 18.0 22.3 21.1 21.0 23.3 22.8 21.2 23.3 24.3 23.8 Other 5.1 1.0 3.1 10.1 17.4 17.9 19.7 20.5 21.2 20.4 20.5 21.2 21.8 21.3 Producers* durable equipment 5.9 1.6 6.9 18.9 23.1 25.9 27.6 25.5 28.9 27.4 27.6 28.9 29.2 29.9 Change in business inventories 1.7 -1.6 4.5 6.8 -2.0 6.6 4.1 2.1 3.2 6.0 6.7 4.0 1.0 1.2 1.8 -1.4 4.0 6.0 -2.9 6.5 3.7 1.9 3.2 5.9 6.6 3.9 1.0 1.1 .8 .2 1.1 .6 1.2 -.8 2.9 4.0 3.3 3.8 3.7 3.7 2.5 3.2 Exports 7.0 2.4 6.0 13.1 22.7 22.9 26.4 27.3 28.4 28.3 28.2 29.0 28.3 28.2 6.3 2.3 4.8 12.5 21.5 23.6 23.5 23.3 25.2 24.5 24.5 25.3 25.8 25.0 Government purchases of goods and services.. 8.5 8.0 24.8 39.0 93.5 97.2 99.7 107.4 117.3 112.1 115.2 116.0 118.2 120.7 Federal 1 3 2.0 16.9 19.3 52.6 53.6 53.2 57.0 62.4 59.5 61.9 62.1 62.7 63.4 N O a th ti e o r nal defense \I K1 3i 2.0 j \ 13 3 . . 8 2 1 5 4 . . 2 3 4 8 4 . . 3 8 4 7 6 . . 9 2 4 8 5 . . 1 7 4 8 9 . . 7 0 5 9 3 . . 7 4 5 9 0 . . 2 8 5 9 3 . . 6 0 5 9 3 . . 5 2 5 9 4 . . 6 0 5 1 4 0. . 1 2 .1 .5 .5 .6 .6 .8 .6 .6 .6 .8 .9 State and local 7.2 6.0 7.8 19.7 40.8 43.6 46.5 50.4 55.0 52.6 53.3 54.0 55.5 57.3 Gross national product in constant (1954) dollars 181.8 126.6 238.1 318.1 401.3 428.6 440.2 447.9 471.9 463.4 467.4 470.8 471.6 477.7 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally and Output (a supplement to the Survey of Current Business) and the adjusted totals at annual rates. For explanation of series see U.S. Income July 1962 Survey of Current Business. NATIONAL INCOME (In billions of dollars) 1961 1962 Item 1929 1933 1941 1950 1958 1959 1960 1961 1962 rv I n III IV National income 87.8 40.2 104.7 241.9 367.4 400.5 415.5 427.8 457.5 444.0 448.9 456.7 459.8 ConipeMation of employees 51.1 29.5 64.8 154.2 257.1 278.5 293.7 302.2 321.6 309.9 315.2 321.7 323.8 325.8 50.4 29.0 62.1 146.4 239.8 258.5 271.3 278.8 295.8 286.1 289.9 295.9 297.8 299.7 Private 45.5 23.9 51.9 124.1 196.6 213.1 222.9 227.0 239.7 232.5 235.0 240.1 241.4 242.2 Military .3 .3 1.9 5.0 9.8 9.9 9.9 10.2 11.0 10.8 11.2 11.2 10.9 10.6 4.6 4.9 8.3 17.3 33.5 35.4 38.5 41.6 45.2 42.8 43.7 44.6 45.5 46.9 .7 .5 2.7 7.8 17.3 20.1 22.4 23.4 25.8 23.8 25.2 25.8 25.9 26.1 Employer contributions for social insurance .1 .1 2.0 4.0 8.0 9.7 11.4 12.0 13.5 12.2 13.3 13.4 13.5 13.6 .6 .4 .7 3.8 9.4 10.4 11.0 11.4 12.3 11.6 12.0 12.3 12.4 12.5 14.8 5.6 17.4 37.5 46.1 46.5 46.2 47.8 49.8 49.5 49.1 49.5 49.7 50.9 Business and professional 8.8 3.2 10.9 23.5 32.5 35.1 34.2 34.8 36.8 36.0 36.2 36.8 37.0 37.3 Farm 6.0 2.4 6.5 14.0 13.5 11.4 12.0 13.1 13.0 13.6 12.9 12.8 12.8 13.6 5.4 2.0 3.5 9.0 12.2 11.9 11.9 12.3 12.8 12.5 12.6 12.8 12.9 12.9 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 37.2 47.2 45.6 45.5 51.0 51.1 50.4 50.7 51.0 Profits before tax 9.6 .2 77.0 40.6 37.4 47.7 45.4 45.6 50.9 51.4 50.1 50.9 51.1 Profits tax liability 1.4 .5 7.6 17.9 18.6 23.2 22.4 22.3 24.8 25.1 24.4 24.9 24.9 Profits after tax 8.3 -.4 9.4 22.8 18.8 24.5 23.0 23.3 26.0 26.3 25.6 26.1 26.1 Dividends 5.8 2.1 4.5 9.2 12.4 13.7 14.4 15.0 15.9 15.5 15.8 15.8 15.8 16.4 Undistributed profits 2.4 -2.4 4.9 13.6 6.4 10.8 8.6 8.3 10.1 10.8 9.8 10.3 10.3 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 -.3 -.5 .2 .2 -.3 .3 -.2 -.1 .8 6.4 5.0 4.5 5.5 14.8 16.4 18.1 20.0 22.2 21.0 21.5 22.0 22.5 23.0 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 NATIONAL PRODUCT AND INCOME 261 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING (In billions of dollars) 1961 1962 T 1Q90 1Q33 1Q41 IQKfi |QfO 1OSQ IV I II HI IV 104.4 56.0 125.8 284.6 444.5 482.7 503.4 518.7 553.9 538.6 545.8 552.0 555.3 563.5 Less : Capital consumption allowances • • 8.6 7.2 9.0 19.1 38.6 41.0 43.2 45.3 47.6 46.6 47.0 47.5 47.5 48.3 Indirect business tax and nontax liability 7.0 7.1 11.3 23.7 39.3 42.6 46.5 48.2 51.6 49.7 50.2 51.4 51.8 52.9 Business transfer payments ... .6 .7 .5 .8 1.8 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 Statistical discrepancy .3 .9 .4 -.7 -1.5 -3.0 -3.4 -3.1 -3.3 — 1 9 — 1.4 -4.0 —4 3 Plus: Subsidies less current surplus of gov- — .1 .1 .2 1.1 .4 .5 1.7 1.7 2.0 1.8 1.8 1.8 1.6 Equals: National income 87.8 40.2 104.7 241.9 367.4 400.5 415.5 427.8 457.5 444.9 448.9 456.7 459.8 Less: Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 37.2 47.2 45.6 45.5 51.0 51.1 50.4 50.7 51.0 Contributions for social insurance.... .2 .3 2.8 6.9 14.8 17.6 20.6 21.6 23.9 22.1 23.6 23.9 24.0 "l4.2 Plus: Government transfer payments .9 1.5 2.6 14.3 24.5 25.4 27.3 31.3 32.4 31.6 31.9 32.0 32.3 33.5 Net interest paid by government 1.0 1.2 1.3 4.8 6.2 7.1 7.8 7.3 7.4 7.2 7.3 7.4 7.5 7.6 Dividends 5.8 2.1 4.5 9.2 12.4 13.7 14.4 15.0 15.9 15.5 15.8 15.8 15.8 16.4 Business transfer payments .6 .7 .5 .8 1.8 2.1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 Equals: Personal income 85.8 47.2 96.3 228.5 360.3 383.9 400.8 416.4 440.5 427.3 432.0 439.5 442.6 448.0 Less: Persona! tax and nontax payments 2.6 7.5 3.3 20.8 42.3 46.8 51.4 52.8 57.6 54.6 56.4 57.7 58.5 58.7 Federal 1.3 2.0 18.2 36,6 40.4 44.0 45.0 49.1 46.7 48.0 49.2 49.9 50.1 State and local 1.4 1.0 1.3 2.6 5.7 6.4 7.4 7.8 8.5 8.0 8.4 8.5 8.6 8.7 83.1 45.7 93.0 207.7 317.9 337.1 349.4 363.6 382.9 372 6 375.6 381.8 384.1 389.3 Less: Personal consumption expenditures... 79.0 46.4 81.9 195.0 293.2 313.5 328.5 338.1 356.7 346.1 350.2 354.9 35S.2 363.5 4.2 -.6 11.1 12.6 24.7 23.6 20.9 25.6 26.2 26.5 25.4 26.9 26.0 25.8 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 296.3 310.7 317.3 327.3 341.6 334.5 336.6 340.9 342.1 345.8 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 1961 1962? Dec Jan. Feb. Mar. Apr, May June July Aug. Sept. Oct. Nov. Dec.p Total personal income. 416.4 440.5 430.5 428.8 431.9 435.2 438.3 439.7 440.7 441.9 443.0 443.5 445.6 448.2 450.4 Wage and salary disbursements.... 278.8 295.8 288.3 287.4 290.3 292.2 295.3 296.0 296.9 297.8 298.1 298.0 298.5 299.8 300.7 Commodity-producing industries... 110.8 117.2 114.9 113.8 115.2 116. 118.2 118.2 118.1 118.4 118.1 117.9 117.8 117.8 117.8 Manufacturing only , 87.5 93.6 91.5 90.8 92.0 92.8 94.4 94.5 94.5 94.5 94.1 94.0 93.9 94.0 94.0 Distributive industries 72.9 76.2 74.5 74.4 75.0 75.4 75.8 76.1 76.2 76.4 76.6 16.1 76.9 77.1 11A Service industries 43.4 46.3 44.9 44.9 45.1 45.3 45.6 45.9 46.5 46.7 47.0 47.0 47.1 47.2 47.5 Government 51.8 56.2 54.0 54.4 55.0 55.4 55.6 55.8 56.0 56.3 56.5 56.4 56.7 57.7 58.0 Other labor income. 11.4 12.3 11.6 11.8 12.0 12.1 12.2 12.3 12.4 12.4 12.4 12.4 12.5 12.5 12.5 Proprietors* income.... 47.8 49.8 49.7 49.2 49.0 49.3 49.4 49.6 49.6 49.6 49.8 49.9 50.3 50.9 51.4 Business and professional. 34.8 36.8 36.2 36.1 36.2 36.4 36.6 36.8 36.8 36.9 37.© 37.0 37.1 37.3 37.4 Farm 13. 13.0 13.5 13.1 12.8 12.9 12.8 12.8 12.8 12.7 12.5 12.9 13.2 13.6 14.0 Rental income 12.3 12.8 12.5 12.6 12.6 12.7 12.7 12.8 12.8 12.8 12.9 12.9 12.9 12.9 12.9 Dividends 15.0 15.9 15.9 15.6 15.8 15.9 15.8 15.8 15.8 15.7 15.7 16.0 16.1 16.2 17.0 Personal interest income. 27.4 29.7 28.4 28.6 28.8 29.0 29.2 29.4 29.6 29.8 30.0 30.2 30.4 30.6 30.8 Transfer payments 33.4 34.6 34.0 33.9 33.8 34.5 34.2 34.2 34.1 34.2 34.5 34.5 35.5 35.8 35.7 Less: Personal contributions for social insurance 9.7 10.5 9.9 10.3 10.4 10.4 10.5 10.5 10.5 10.5 10.5 10.4 10.5 10.5 10.6 Nonagricultural income. 399.1 423.2 412.7 411.6 414.8 418.0 421.2 422.6 423.5 424.8 425.9 426.4 428.2 430.4 432.2 Agricultural income 17.3 17.3 17.8 17.2 17.1 17.2 17.1 17.1 17.2 17.1 17.1 17.1 17.4 17.8 18.2 Note.—Dept. of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FLOW OF FUNDS/SAVING FEBRUARY 1963 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1960 1961 1962 Transaction category, or sector 1957 1958 1959 1960 1961 III IV II III IV II III I. Saving and investment A Gross national saving 109.4 94.1 115.6 120.4 116.9 118.6 114.9 106.0 116.4 119.3 126.1 127.6 129.3 124.9 B Consumer and nonprofit 68.6 68.1 73.9 72.4 76.9 72.2 71.9 71.3 77.3 77.3 81.8 83.0 79.8 82.3 C Farm and noncorp. business 12.0 11.9 12.4 12.7 12.7 12.6 12.7 12.6 12.7 12.8 13.0 13.6 13.0 13.0 D Corporate nonfin. business 26.3 25.0 35.6 31.5 35.0 29.3 28.8 28.2 34.2 36.2 41.2 40.6 40.2 38.1 E U.S. Government 3.7 -8.0 -4.5 4.3 -5.3 4.6 1.7 -5.0 -6.6 -4.3 -5.2 -5.9 .2 -4.1 F State and local govt -3.7 -5.0 -4.0 -3.4 -4.5 -3.6 -4.2 -4.3 -3.9 -4.3 -5.7 -4.8 -4. -5.7 G Financial sectors 2.6 2.1 2.1 2.9 2.1 3.4 4.0 3.1 2.8 1.7 .9 1.1 .9 1.3 H Gross national investment 110.8 94.3 114.7 117.9 114.8 116.0 112.5 104.3 111.3 118.8 124.6 124.7 126.4 123.4 H I Consumer durable goods 40.4 37.3 43.6 44.8 43.7 44.5 44.0 40.8 43.5 44.0 46.6 46.3 47.2 47.1 I J Business inventories 1.6 -2.0 6.6 4.1 2.1 2.1 -1.1 -3.6 2.1 4.0 6.0 6.7 4.0 1.0 J K Gross pvt. fixed investment 64.6 58.6 66.2 68.3 67.1 68.1 67.5 63.7 65.5 68.5 70.8 69.2 73.5 75.5 K L Consumer and nonprofit 18.1 18.1 22.1 21.7 20.1 22.0 21.6 20,3 19.5 19.3 21.2 21.9 20.3 20.7 L M Nonfin. business 45.7 39.8 43.2 45.8 46.2 45.2 45.0 42.5 45.2 48.4 48.8 46.5 52.4 53.9 M N Financial sectors .7 .8 .8 .8 .8 .8 N 0 Net financial investment 4.3 .4 -1.7 .7 1.8 1.2 2.2 3.4 .2 2.3 1.1 2.6 1.7 O P Discrepancy (A—H) -1.3 -.2 .9 2.5 2.2 2.6 2.3 1.7 5.0 .6 1.5 2.9 2.8 1.4 P II. Financial flows—Summary 32.5 42.8 52.7 36.2 46.3 31.9 34.0 30.0 44.3 56.0 54.7 61.5 63.9 41.5 A Net funds raised—Nonfin. sectors.. 12.8 3.3 19.2 7.8 19.3 20.4 .3 26.9 17.0 4.5 28.8 34.9 20.9 -7.1 B Loans and short-term securities 19.7 39.5 33.5 28.4 27.0 11.4 33.7 3.1 27.3 51.6 25.9 26.5 43.0 48.5 C Long-term securities and mtgs D J K E G H 1 L N F M U P F v o . S L L O S S r t. e h o o . e t i B O d C h o c a a g G o u a e r n n t o n t o h m r r n s s n - i v e k t b t s s e e i r e u o e e s r r l c s m r t l m o n i o r u c a m o e a r n B r w i s n n e t e s c i s y o n e e c r n n r t s u e s s . f r e d e i i . n c i t c t i t . e o s s r ectors - - 3 1 6 5 2 2 6 1 2 1 . . . . . . . . 3 4 . . . 6 3 5 8 4 9 9 5 4 - 3 1 9 2 8 3 1 1 1 1 1 . . . . . . . . . 2 . . 5 6 3 8 1 1 3 1 1 9 4 1 3 5 8 5 3 6 2 4 . . . . . . . . . . . 1 6 1 7 5 8 4 2 8 7 1 - - 3 1 5 2 2 2 4 2 3 1 6 1 . . . . . . . 1 2 . . . . 4 9 4 0 7 3 4 7 0 - 3 1 4 7 2 2 5 2 1 1 6 1 . . . . . . . . 2 . . . 3 4 8 7 3 9 2 8 2 3 - - 1 3 1 2 - 6 3 . 2 6 2 1 2 1 . . . . . 7 . . ' . 0 3 0 . 9 8 7 2 6 - - 1 3 2 0 2 2 2 8 3 8 3 3 . . . . . . . . 4 . . . 8 4 4 2 4 6 4 6 3 1 -2 2 2 2 2 2 2 6 1 1 . . . . . . . . . . . 2 6 8 0 2 7 1 4 2 4 7 - -U 3 1 - 7 9 . 1 5 1 6 . 0 2 . . . . . . 3 7 9 9 3 6 * - 2 3 1 4 2 4 7 3 1 1 0 7 5 . . . . . . . . 6 . . . 0 7 9 6 4 1 9 7 4 3 - 4 1 1 8 4 4 4 5 3 7 1 1 2 . . . . . . . . 2 . . . 1 8 7 3 1 7 1 9 4 2 - 4 2 1 7 3 3 2 8 2 3 3 2 5 . . . . . . , . 9 . . 1 3 7 8 7 4 2 1 0 5 1 7 4 6 4 5 3 1 4 1 6 . . . . . . . . . . . 7 3 6 1 6 2 5 6 8 3 6 - - 1 4 1 1 - - 4 8 4 4 5 6 6 4 . . . 3 7 . . . . . 4 . . . 4 6 5 3 2 4 1 3 M D H K N G E F L J I 0 Securities and mortgages 25.6 28.8 29.1 25.3 30.4 26.8 24.9 25.1 33.5 30.0 32.9 33.9 38.2 31.9 O P State and local oblig 4.6 5.5 4.7 3.7 5.1 4.9 3.7 4.3 3.9 5.6 6.7 7.7 6.1 3.2 P Q Corporate securities 8.8 8.0 5.4 5.4 7.0 6.2 5.9 5.0 12.3 6.0 4.7 4.7 7.0 3.9 Q R 7- to 4-family mortgages 8.6 10.1 13.2 10.4 12.1 10.5 10.0 10.2 11.8 12.4 14.2 13.5 16.0 15.6 R S Other mortgages 3.5 5.2 5.8 5.8 6.1 5.2 5.4 5.5 5.5 6.0 7.3 8.0 9.1 9.3 S T Net sources of credit ( = A) 32.5 42.8 52.7 36.2 46.3 31.9 34.0 30.0 44.3 56.0 54.7 61.5 63.9 41.5 T U Chg. in U.S. Govt. cash bal .2 .1 .6 .8 .1 1.4 -1.4 -5.4 2.7 5.5 -2.4 3.6 6.4 -4.3 U V U.S. Govt. lending 2.4 1.7 3.8 2.4 2.8 1.7 2.6 1.8 -.5 5.1 4.8 3.3 4.4 2.0 V W Foreign funds -.1 3. 3.6 3.2 2.5 3.8 5.9 2.8 -.8 3.8 4.1 3.5 2.0 1.7 w X Pvt. insur. and pension reserves.. 7.0 7.8 8.8 8.2 8.7 9.0 7.5 7.7 7.5 9.2 10.2 8.6 9.7 9.8 X V Sources n.e.c 3.2 4.8 5.8 6.8 5.1 3.7 6.1 2.1 .7 13.4 4.1 3.0 2.9 7.3 Y Z Pvt. Domestic Nonfin. Sectors 19 8 25.2 30 0 14.8 27.2 12 2 13 2 20.9 34 8 19.1 34.0 39 4 38.4 24 9 Z AA Deposits and U.S. Govt. secur.... 10.5 17.8 23.3 7.7 23.2 7.8 9.2 15.4 26.8 19.0 31.5 27.3 32.2 26.0 AA AB Deposits 11.0 20.6 10.8 13.6 24. 20.3 20.9 24.3 25.8 19.3 26.8 24.8 26.5 28.1 AB AC Demand dep. and curr -1.4 4.9 .3 -1.3 3.9 2.2 1.1 1.1 3.7 2.2 8.8 -10.5 .6 5.4 AC AD Time and svgs. accounts 12.4 15.7 10.5 14.9 20.1 18.2 19.8 23.2 22.2 17.1 18.0 35.3 25.9 22.7 AD AE At commercial banks.... 5.5 6.9 2.1 5.3 8.8 8.2 9.1 12.1 10.9 6.5 5.7 23.0 13.7 9.8 AE AF At savings instit 6.8 8.7 8.4 9.6 11.4 10.0 10.8 11.2 11.3 10.6 12.4 12.3 12.2 13.0 AF AG U.S. Govt. securities -A -2.8 12.5 -5.9 -12.5 -11.7 -8.9 .9 -.3 4.7 2.6 5.7 -2.1 AG AH Other securities and mtgs 8.3 7.0 6.8 5.3 5.3 3.7 5.6 11.0 .6 3.9 11.7 2.4 1.7 AH AI Less security debt -.4 .9 .2 -.3 1.3 .9 -.3 .1 3.0 .6 1.4 -.4 -3. 2.8 AI III. Financial institutions 22.3 37.2 30.8 34.5 43.9 43.2 42.5 32.7 39.8 54.8 48.1 43.9 49.1 45.9 A A Net funds advanced—Total 11.0 -6.2 2.8 7.8 9.4 8.4 8.2 9.3 15.5 -1.9 11.0 -.2 -1.4 B B U.S. Govt. securities 17.6 23.1 23.1 20.7 27.9 23.5 24.0 21.9 26.0 31.3 32.3 24.7 40.7 32.0 C C Other securities and mtgs 5.5 3.1 13.9 11.0 8.2 10.3 10.0 2.6 4.5 8.1 17.7 8.2 8.6 15.3 D D Loans By sector E Banking system 4.3 17.0 5.5 10.0 17.4 16.2 17.2 12.0 15.2 25.0 17.5 20.1 19.6 13.4 E F Savings institutions 7.2 9.3 10.6 9.3 12.0 9.0 10.7 11.4 10.9 11.7 14.1 13.8 12.9 15.2 F G Insurance and pension funds 8.4 9.0 10. 10.2 10.7 11.2 10.3 10.1 9.2 11.0 12.6 9.9 11.1 11.4 G H Finance n.e.c 2.3 1.9 4.6 5.0 3.7 6.8 4.3 4.5 7.2 4.0 .1 5.4 5.8 H 1 Net sources of funds—Total 22.3 37.2 30.8 34.5 43.9 43.2 42.5 32.7 39.8 54.8 48.1 43.9 49.1 45.9 J Gross saving 2.6 2.1 2. 2.9 2.1 3.4 4.0 3.1 2.8 1.7 .9 1.1 .9 1.3 K Deposit claims 11.5 22.6 10.6 15.3 26.5 23.5 21.3 20.9 29.9 28.0 27.5 31.4 32.5 23.8 L Demand deposits and curr -.8 5.8 1.1 4c 5.6 4.1 .7 -2.0 6.5 9.6 8.3 -3.6 6.3 1.3 M Time dep. at comm. banks 5.4 7.9 1.1 5.8 9.4 9.4 9.7 11.7 11.9 7.8 6.3 22.7 13.8 9.6 N Other savings accounts 6.9 8.9 8.4 9.5 11.5 10.0 10.9 11.2 11.5 10.6 12.9 12.3 12.4 13.0 O Svg. through Life insurance 2.7 3.3 3.6 3.5 3.7 3.5 3.4 3.7 3.3 4.0 3.9 4.7 4.9 4.8 P Svg. through pension funds 4.4 4.4 5.2 4.7 4.9 5.5 4.2 4.0 4.2 5.2 6.3 4.0 4.9 4.9 Q Credit market instruments 2.2 .5 5.9 3.5 3.7 2.0 3.4 .1 2.6 6.0 6.1 4.2 7.1 6.8 R Investment co. shares 1.2 1.6 1.8 1.5 2.0 1.4 1.3 1.6 1.5 2.0 2.7 3.3 2.1 1.3 T S U Sec L C u o o r a r it p n y o s r c a r t e e d i b t onds . . . 1 6 1 -1.2 . . 1 6 2 1 . . 9 0 * 1. . . 4 4 5 .9 - 3 1 .8 . . 4 1 1 1 . . . 9 2 1 - - 2 1 . . 5 3 .9 - 2 1 .2 . . 3 2 3 1 . . . 7 0 2 2 1 . . . 0 7 9 -1.9 .7 * - 3 1 .8 . . 2 7 5. . 3 3 V Other sources, net -1.2 3.7 3.3 4.1 1.9 2.2 5.0 2.1 -5.2 8.9 1.9 .5 -.3 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Jan. 1963 BULL., p. 85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FLOW OF FUNDS/SAVING 263 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1960 1961 1962 Transaction category, or sector 1957 1958 1959 1960 1961 III IV III IV III I. Demand deposits and currency A Net incr. in banking system liability. -.8 5.8 1.1 5.6 4.1 .7 -2.0 6.5 9.6 -3.6 6.3 1.3 B U. S. Govt. deposits .2 .1 .6 .1 1.4 -1.4 -5.4 2.7 5.5 -2.4 3.6 6.4 -4.3 C Other -1.0 5.6 5.5 2.8 2.1 3.4 3.8 4.1 10. -7. 5.5 D Net increase in assets, by sector... 6.3 .2 4.8 3.9 .8 -1.9 4.5 11.3 5.3 -.2 AA 1.8 E U.S. Govt .1 1.7 -1 -5.7 1.0 8.9 -3.0 3.5 6.0 -3.0 F Other domestic sectors .3 6.1 -.6 4.1 2.2 1.5 2.9 4.4 1.9 7. -5.6 5.8 G Consumer and nonprofit -.9 2.5 .3 1.4 1.7 2.2 5.0 1.6 1.5 -2.4 2. \\l 2.8 H Nonfinancial business .7 2.7 -2.: -1.7 .9 -1,6 -1.6 -2 -.1 .6 6.0 -6.4 -4.4 -.4 J I F S i t n at a e n c a i n a d l s lo e c c a to l r g s ovts . . 3 3 . . 7 3 .i . . 2 5 1. .6 2 1. . 4 6 . . 2 7 - 1 .7 .4 1 1 . . 1 9 -1 1 . . 7 5 2. . 6 9 -3 1 . . 3 4 1. . 7 2 2 1 . . 2 2 K L Di R sc e r s e t p a o n f c t y h — e w U o .S rl . d cash .2 * -.1 .1 -.2 .4 -.3 * . . 1 8 . . 9 3 - 1 .9 .7 -3.4 .4 1. . 0 5 2. . 0 1 -.9 .4 - -1 1 . . 3 1 M Other -1.5 -.5 .9 -.2 1.0 .6 -.2 -.5 .3 1.8 2.5 -3.6 1.5 II. Time and savings accounts A Net increases-Total.. 12.3 16.8 9.5 15.2 20.9 19.4 20.6 22.9 23.4 18.4 19.2 35.0 26.2 22.6 B At commercial banks- Total. 5.4 7.9 1.1 5.8 9.4 9.4 9.7 11.7 11.9 7.8 6.3 22.7 13.8 9.6 C Corporate business .9 -.4 .8 1.3 1.6 2.0 5.6 1.2 .8 -2.4 4.8 2.6 .6 D State and local govts.... .3 .7 5 1.3 .9 2.1 2.1 .9 .8 .9 .9 2.1 .3 .4 E Foreign depositors..... * .9 -'.9 .3 .6 1.2 .3 -.3 .7 1.3 .6 -.5 .2 -.1 F Consumer and nonprofit 5.3 3.0 3.2 4.4 5.0 5.5 16.0 5.2 6.6 8.8 4.8 7.2 10.8 G At savings institutions 8.9 8.4 9.5 10.0 10.9 11.2 12.3 13.0 G H Memo—Consumer and nonprofit 6.9 11.5 11.5 10.6 12.9 12.4 organ.—Total 14.0 11.3 12.8 14.4 15.8 16.7 28.3 21.7 H 12.0 18.0 20.1 15.4 19.6 23.0 III. U. S. Govt. Securities A Total net issues -.9 8.2 9.3 -2.7 7.2 -3. -2.7 -.2 9.5 16.2 3.3 14.3 7.8 -2.4 A B Short-term direct. 5.5 -1.2 5.5 -5.1 11.3 12.2 -10.8 22.0 16.6 -4.6 11.4 22.1 4.1 -18.6 B C Other -6.4 9.5 3.8 2.4 -4.2 -16.0 8.2 22.2 -7.1 20.9 -8.2 -7.9 3.6 16.1 C Net acquisitions, by sector -1.1 8.3 9.3 -2.6 7.2 -3.8 -2.6 -.2 9.5 16.2 3.3 14.3 7.8 -2.4 Pvt. domestic nonfin. sectors... A -2.8 12.5 -5.9 Q-12.5 -11.7 -8.9 .9 -.3 4.7 2.6 5.7 -2.1 Consumers and nonprofit. .. -'.9 -2.2 6.3 -3. -'.2 -3.3 -7.8 -8.0 -4. 5.1 6.3 -1.0 2.8 .5 Svg. bds. & postal svg. dep. -2.2 -.7 -2.0 A .7 2 .5 .3 .5 .8 1.2 -.1 .1 .4 Securities 1.3 -1.4 8.3 -2.7 -.8 -3.1 -8.4 -8.2 -4.6 4.4 5.2 -.8 2.6 .1 Corp. nonfin. business * -.2 4.4 -3.0 -.9 -7.4 -3.3 -1.6 4.1 -5.1 -1.0 1.3 .8 -3.1 State and local govts .5 -.4 1.8 .3 .2 -1. -.6 .6 1.0 -.3 -.6 2.2 2.1 .5 Financial sectors -.8 11.0 -6.2 2.8 7.8 9.4 8.4 8.2 9.3 15.5 -1.9 11.0 -.2 -1.4 Banking sysiem -.5 10.1 -7.1 2.7 7.4 8.6 8.3 7.1 10.7 13.9 -2.3 8.6 .8 -3.1 Monetary authorities -.7 2.2 .3 .7 7.5 1.2 n 2.2 1.5 2.0 5.5 .3 -.3 Commercial banks .2 7.9 -7.4 2.0 5.9 7.4 9.0 4.9 10.5 12.4 -4.3 3.1 .6 -2.8 Savings institutions .3 A .6 -A .5 -1.1 .3 1.2 -.2 1.2 1.7 -1.0 .4 Insurance and pension funds. -.9 .3 .2 -.1 -.9 .7 -1.2 -'.3 .6 .7 * .3 Finance n.e.c .2 .2 1 1.0 2.0 . 1,9 -1.3 * -.1 1.0 Rest of the world 3.0 .4 .3 -.7 .7 .5 -.7 1.0 .4 .7 2.3 1.1 IV. Other securities A Total net issues, by sector.. 14.6 14.9 11.8 11.2 13.7 13.2 12.0 10.5 18.4 12.5 13.4 12.9 15.5 7.8 A B State and local govts 4.6 5.5 4.7 3.7 5.1 4.9 3.7 4.3 3.9 5.6 6.7 7.7 6. 3.2 B C Nonfinancial corporations. 8.8 8.0 5.4 5.4 7.0 6.2 5.9 5.0 12.3 6.0 4.7 4.7 7.0 3.9 C D Finance companies .6 1.0 1.4 1.4 1.9 .9 1.3 .2 .9 1.2 .3 D E Rest of the world .5 .7 .7 .6 .6 .2 .9 .7 1.1 .5 1.2 .4 E F Net purchases 14.6 14.9 11.8 11.2 13.7 13.2 12.0 10.5 18.4 12.5 13.4 12.9 15.5 7.8 F G Consumers and nonprofit org.. 5.1 3. 3.0 2.3 1.5 1.9 .4 .3 7.0 -2.8 1.6 3.8 -2.0 -2.8 G H State and local govts 1.3 1.5 1.3 1.5 1.6 1.5 1.5 1.5 1.6 1.5 1.8 1.3 1.9 1.7 H I Corp. business .1 .5 .7 .3 .4 .2 .1 .2 .4 .5 .7 .6 .6 .5 I J Commercial banks 1.0 2.4 .2 .4 2.7 1.5 2.2 2.8 1.3 3.7 3.1 4.6 6.0 3.7 J K Insurance and pension funds... 6.5 6.5 7.0 7.0 7.7 7.9 7.8 6.0 7.2 9.0 8.7 5.6 7.2 6.9 K L Finance n.e.c c -.5 -.5 -.4 .4 .2 -1.5 -.1 1.0 -.8 -4.2 2.6 -2.5 L O M N S In e v P c e u u s r r t i c m t h y e a b n se t r o s c k o e s r . s — a n n e d t dealers. '.9 '. 3 2 - - ' A 1 .1 .1 — 1 .2 \l i!o * - 1 .6 . . 4 2 - 1 .3 . . 1 9 -.5 . . 2 8 - - 1 . . 8 4 .2 - 1 .1 .5 * - 1 1 .8 . . 9 2 -1 - 1 . . 2 1 .6 - -1 2 2 . . 3 . 3 0 2 2 . . . 1 7 6 - - - 1 . . . 4 6 6 M N O P Net issues 1.2 1.6 1.8 1.5 2.0 1.4 1.3 1.6 1.5 2.0 2.7 3.3 2.1 1.3 P Q Rest of world .2 .4 .3 .3 .1 .4 .5 .1 .3 .5 -.1 .1 Q V. Mortgages A Total net borrowing. 12.1 15.3 19.0 16.2 18.2 15.7 15.4 15.7 17.3 18.4 21.5 21.5 25.1 24.9 B 1- to 4-family 8.6 10.1 13.2 10.4 12.1 10.5 10.0 10.2 11.8 12.4 14.2 13.5 16.0 15.6 C Other 3.5 5.2 5.8 5.8 6.1 5.2 5.4 5.5 5.5 6.0 7.3 8.0 9.1 9.3 Net acquisitions 12.1 15.3 19.0 16.2 18.2 15.7 15.4 15.7 17.3 18.4 21.5 21.5 25.1 24.9 Consumer and nonprofit org., 1.9 2.2 1.7 2.3 1.3 1.9 1.8 2.3 1.0 1.2 .6 4.5 1.6 2.2 U.S. Government. 1.4 .3 2.2 1.2 .6 1.4 1.1 -.2 1.0 1.7 1.0 -.2 .1 Commercial banks .6 2.1 2.6 .7 1.6 .6 .3 1.8 1.8 1.9 2.1 5.1 4.8 Savings institutions 5.7 7.8 9.5 8.8 11.0 8.9 9.5 9.5 10.9 11.2 12.4 11.7 13.6 13.4 Insurance sector 2.4 2.0 2.4 2.8 2.7 2.3 2.6 2.7 2.7 2.0 3.3 2.1 3.2 3.2 Mortgage companies -.3 .5 .2 .6 .1 -.3 .5 .8 1.2 -.3 1.2 VI. Bank loans n.e.c. Total net borrowing 2.3 1.2 7.4 2.8 3.1 -1.4 2.4 -1.4 -.3 5.1 8.9 4 8 6.3 6.2 Nonfinaneial business 2.1 1.4 5.3 2.8 2.0 -.4 2.2 .3 -.2 1.5 6.5 2.9 5.1 3.9 C N o o r n p f o ar r m at e noncorporate. - 2 .2 .0 . . 5 4 3. . 8 9 2.6 1. . 6 1 -1 1 . . 7 2 1. . 9 3 -1 1 .9 .7 -.3 .1 * 4 1 . . 6 7 1. . 7 7 4.4 3 . . 9 1 Farm .3 .6 .7 .3 .1 .5 .9 .2 .7 -.2 F R i e n s a t n o c f i a t l h e se w ct o o r r l s d -.4 .4 -1.1 .5 1. . 6 2 . . 7 1 -1.3 .1 -.6 .5 -2*.l -1.0 .8 3. . . 3 5 1 1. . 3 3 - \ . . 4 9 . . 9 1 1.8 * NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Jan. 1963 BULL., p. 85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BANKS, 1962 FEBRUARY 1963 EARNINGS AND EXPENSES OF Item Total Boston New York Philadelphia Cleveland Richmond Atlanta Current Earnings $4,131,703 $211,180 $1,059,944 $155,057 $215,615 $238,006 $235,404 Acceptances . . . 1,256,123 1 256 123 U. S. Govt. securities 1,039,308,345 53,177,710 258,585,831 58,879,903 87,613,782 67,479,038 56,157,918 3,502,378 164,612 959,652 203,138 329,224 157,607 185,626 All other 309,786 15,310 69,855 16,983 22,166 13,388 25,104 Total current earnings 1,048,508,335 53,568,812 261,931,405 59,255,081 88,180,787 67,888,039 56,604,052 Current Expenses Salaries: Officers 7,062,662 401,138 1,370,883 475,632 593,547 535,840 548,610 Employees . .... 95,592,862 5,936,672 22,400,775 4,886,087 7,919,279 6,265,040 5,673,421 16,649,188 1,010,221 3,679,983 876,069 1,395,365 1,154,385 1,052,408 545,108 20,734 75,872 24,234 63,203 37,977 87,318 Traveling expenses 2,073,512 120,532 329,803 94,334 181,136 154,912 178,036 Postage and expressage 19,941,300 1,672,284 2,697,255 969,838 1,606,532 1,840,828 1,718,292 Telephone and. telegraph .. 1,758,454 93,988 386,033 77,755 128,943 117,891 183,366 Printing and supplies 7,760,954 577,681 1,584,215 446,238 574,959 527,909 551,683 Insurance 357,332 28,850 40,222 14,630 36,611 30,692 33,233 Taxes on real estate 4,742,684 645,461 841,790 153,972 396,539 201,031 271,074 Depreciation (building) 6,451,769 413,761 488,050 270,528 950,616 546,369 521,939 Light, heat, power, and water 1,890,550 118,902 255,725 100,407 172,893 159,618 137,127 Repairs and alterations . ... 1,462,343 33,579 236,762 110,447 171,597 93,464 76,745 Rent 119,550 4,962 6,384 6,648 29,676 7,768 10,042 Furniture and equipment: Purchases 4,341,484 109,530 933,445 421,541 450,403 413,863 499,895 Rentals. 8,035,546 757,305 978,260 449,148 614,211 472,075 512,569 All other 2,847,248 115,157 654 562 99,847 443,419 113,206 141 434 Inter-Bank expenses 47,935 -689,060 58,616 95,275 -13,820 57,841 Subtotal 181,632,542 12,108,692 36,270,959 9,535,971 15,824,204 12,659,048 12,255,033 8,030,028 557,926 1,544,290 434,062 610,137 684,469 820,290 Assessment for expenses of Board of Governors. 6,654,900 315,200 1,817,000 383,300 623,300 301,900 355,900 Total 196,317,470 12,981,818 39,632,249 10,353,333 17,057,641 13,645,417 13,431,223 Less: Reimbursement for certain fiscal agency and other expenses 20,181,336 1,128,939 3,516,910 952,464 1,913,784 1,117,061 1,401,607 Net expenses 176,136,134 11,852,879 36,115,339 9,400,869 15,143,857 12,528,356 12,029,616 Profit and Loss 872,372,199 41,715,933 225,816,066 49,854,212 73,036,931 55,359,683 44,574,436 Additions to current net earnings: Profits on sales of U. S. Govt. securities (net) 1,990,257 102,782 492,364 110,867 167,498 130,618 107,685 All other 699,764 42,533 119,711 35,128 50,035 32,588 20,488 Total additions 2,690,022 145,315 612,075 145,995 217,533 163,206 128,173 Deductions from current net earnings 2,745,800 208,816 408,192 84,103 177,976 66,024 1,111,068 Net deductions from (—) or additions to current net earnings -55,779 -63,501 203,884 61,891 39,557 97,181 -982,895 Net earnings before payments to Treasury 872,316,422 41,652,432 226,019,950 49,916,103 73,076,488 55,456,865 43,591,542 Dividends paid. 27,412,241 1,296,552 7,419,208 1,565,035 2,547,615 1,272,977 1,481,974 799,365,981 37,797,780 210,885,742 45,863,269 66,832,373 50,222,987 38,318,568 Transferred to surplus 45 538 200 2 558 100 7,715 000 2,487,800 3,696,500 3,960,900 3,791 000 Surplus, January 1 888,313,200 42,112,000 242,996,100 51,281,600 83,271,900 40,141,400 47,453,600 Surplus, December 31 933,851,400 44,670,100 250,711,100 53,769,400 86,968,400 44,102,300 51,244,600 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FEDERAL RESERVE BANKS, 1962 265 FEDERAL RESERVE BANKS Chicago St. Louis Minneapolis K C an it s y as Dallas Fra S n a c n isco Item Current Earnings $875,033 $144,619 $53,485 $366,300 $269,378 5307,682 Discounts and advances Acceptances 175,591,640 41,509,385 21,999,161 45,468,307 42,036,531 130,809,139 U. S. Govt. securities 486,831 119,079 80,555 147,100 196,133 472,821 Foreign currencies 44,435 10,376 11,501 30,060 18,072 32,536 All other 176,997,939 41,783,459 22,144,702 46 011,767 42,520,114 131,622,178 Total current earnings Current Expenses Salaries: 627,475 566,717 407,250 541,427 447,369 546,774 Officers 13,993,493 5,226,166 3,144,641 5 007,635 4,081,128 11,058,525 Employees 2,346,374 923,553 557,993 939,235 764,874 1,948,728 Retirement and other benefits 49,116 26,850 36,895 35,323 37,361 50,225 Fees—Directors and others 242,465 135,843 113,726 132,333 136,744 253,648 Traveling expenses 2,726,481 1,095,003 740,231 j 255,778 1,001,622 2,617,156 Postage and expressage 200,642 95,457 60,483 102,684 119,523 191,689 Telephone and telegraph 1,245,726 439,324 244,194 483,907 365,136 719,982 Printing and supplies 36,415 34,901 10,285 20,694 28,975 41,824 Insurance 749,888 181,247 334,379 203,526 269,887 493,890 Taxes on real estate 1,323,687 239,228 344,037 168,853 692,696 492,005 Depreciation (building) 293,969 137,417 95,074 145,864 129,491 144,063 Light, heat, power, and water 332,523 53,084 148,135 80,102 47,236 78,669 Repairs and alterations 37,038 1,571 1,965 5,044 1,509 6,943 Rent Furniture and equipment: 227,881 274,589 87,259 320,708 89,979 512,391 Purchases 1,395,464 323,724 281,345 524,656 448,779 1,278,010 Rentals 490,052 103,888 102,147 172,517 212,780 198,239 All other 141,474 36,603 24,008 45,125 58,244 137,755 Inter-Bank expenses 26,460,163 9,895,165 6,734,047 10,185,411 8,933,333 20,770,516 Subtotal 1,250,370 347,608 245,504 457,249 175,781 902,342 F. R. currency 927,100 228,000 152,100 280,200 374,700 896,200 Assessment for expenses of Board of Governors 28,637,633 10,470,773 7,131,651 10 922,860 9,483,814 22,569,058 Total Less: Reimbursement for certain fiscal agency 3,806,210 1,252,806 634,389 1 500,994 936,767 2,019,405 and other expenses 24,831,423 9,217,967 6,497,262 9 421,866 8,547,047 20,549,653 Net expenses Profit and Loss 152,166,516 32,565,491 15,647,439 36 589,901 33,973,067 111,072,524 Current net earnings Additions to current net earnings: Profits on sales of U. S. Govt. securities 336,027 79,230 41,395 86,574 80,701 254,516 (net) 130,050 16,637 20,958 49,429 129,938 52,269 All other 466,077 95,867 62,353 136,003 210,640 306,785 Total additions 226,167 86,140 34,417 62,605 82,713 197,579 Deductions from current net earnings Net deductions from (—) or additions to 239,910 9,727 27,936 73,398 127,927 109,206 current net earnings 152,406,426 32,575,218 15,675,375 36,663,299 34,100,994 111,181,730 Net earnings before payments to Treasury 3,849,832 940,346 634,325 1 157,408 1,573,113 3,673,856 Dividends paid 139,999,295 30,331,971 13,564,350 33 264,791 28,872,781 103,412,074 Paid Treasury (interest on F. R. notes) 8,557,300 1,302,900 1,476,700 2,241,100 3,655,100 4,095,800 Transferred to surplus 123,515,200 30,403,400 20,232,500 37,383,900 49,808,900 119,712,700 Surplus, January 1 132,072,500 31,706,300 21,709,200 39,625,000 53,464,000 123,808,500 Surplus, December 31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 BANKING OFFICES FEBRUARY 1963 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks ] Mutual savings baiiks Type of office and type of change All Member Nonmember banks Total Total ti N on a- al State 1 Total su In re - d in N s o u n r - ed su I r n ed - 1 in N su o r n e - d Banks (head office): Dec 31 1934 . 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31 1941 . . .. 14,826 14,278 6,619 5,117 ,502 7,662 6,810 852 52 496 Dec. 31, 1947 2 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec 31 1951 . 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1956 14,167 13,640 6,462 4,651 1,811 7,181 6,737 444 223 304 Dec 31 1957 14,090 13,568 6,393 4,620 1,773 7,178 6,753 425 239 283 Dec 31 1958 ... . 14,020 13,501 6,312 4,578 1,734 7,192 6,793 399 241 278 Dec. 31, 1959 13,991 13,474 6,233 4,542 1,691 7,244 6,878 366 268 249 Dec 31 1960 13,986 13,472 6,174 4,530 1,644 7,300 6,948 352 325 189 Dec. 31, 1961 13,946 13,432 6,113 4,513 1,600 7,320 6,997 323 330 184 Dec 31 1962 13,938 13,427 6,047 4,503 544 7,380 7,072 308 331 180 Branches, additional offices, and facilities: Dec. 31, 1934 3,133 3,007 2,224 1,243 981 783 7*3 126 Dec 31 1941 . . 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 2 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec 31 1951 . 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31 1956 7,955 7,589 5,886 3,809 2,077 1,703 1,666 37 257 109 Dec. 31, 1957 8,609 8,204 6,378 4,178 2,200 1,826 1,789 37 296 109 Dec 31 1958 9,286 8,861 6,924 4,534 2.390 1,937 1,898 39 305 120 Dec. 31, 1959 10,099 9,652 7,492 4,973 2,519 2,160 2,118 42 318 129 Dec 31 1960 10,969 10,483 8,133 5,509 2,624 2,350 2,303 47 381 105 Dec. 31 1961 . . 11,896 11,353 8,899 6,044 2,855 2,454 2,410 44 427 116 Dec. 11, 1962. 12,932 12 345 9,649 6,640 3.009 2,696 2,646 50 466 121 Changes Jan.-Dec. 31,1962 Banks: New banks -' . 183 183 67 63 4 116 103 13 Suspensions . -2 -2 -2 2 Reopenings 1 1 1 Consolidations and absorptions: Banks converted into branches -167 -164 -103 -72 -31 -61 -59 -2 -1 -2 Other -18 -18 -13 -8 -5 -5 -4 -1 Voluntary liquidations ^ -4 -4 -3 Other changes 5. . — 1 A -1 Interclass changes: 1 Nonmember to State member . . 5 5 5 -5 State member to nonmember -26 -26 25 25 National to State -6 -6 6 6 State to national 10 13 -3 -10 -8 -2 Noninsured to insured 18 -18 2 2 Net change . . -8 -5 -66 -10 -56 60 75 -15 1 -4 Number of banks Dec. 31, 1962 13,938 13,427 6,047 4,503 1,544 7,380 7,072 308 331 180 Branches and additional offices: De novo 918 874 641 486 155 233 225 8 38 6 Banks converted . . 167 164 131 97 34 33 33 1 2 Discontinued — 50 -47 -36 -27 -9 -11 -11 -1 -2 Interclass changes: Nonmember to State member 6 6 -6 -6 State member to nonmember — 16 -16 16 16 National to State . . .. .... — 13 -15 2 13 13 State to national 38 55 -17 — 38 — 36 2 1 -1 Net change 1,035 991 751 596 155 240 234 6 39 5 Number of branches and additional offices, Dec. 31, 1962 12,655 12,068 9,404 6,423 2,981 2,664 2,614 50 466 121 Banking facilities: 6 Established 8 8 6 6 2 2 Discontinued . . . .. -7 n -7 -7 Interclass changes: State member to national 1 -1 Net change 1 -1 2 2 Number of facilities Dec 31 1962 in 277 245 217 28 32 32 1 State member bank and insured mutual savings bank figures both 5 Ceased banking business. include, 1941 to 1959 inclusive, 3 member mutual savings banks not 6 Provided at military and other Govt. establishments through arrangeincluded in the total for commercial banks; and subsequent figures ments made by the Treasury Dept. reflect the withdrawal of 1 from membership in 1960, 1 in 1961, and 1 in 1962. State member bank figures also include noninsured trust cos. NOTE.—Beginning with 1959, figures include all banks in Alaska and without deposits (1 beginning 1954, 2 beginning 1962). Hawaii. One national bank in Alaska with no branches and 1 in the 2 Series revised as of June 30, 1947. The revision resulted in a net addi- Virgin Islands with 1 branch (2 in 1961) have been included in this series tion of 115 banks and 9 branches. since 1954 and 1957, respectively. Other banks in territories and posses- 3 Exclusive of new banks organized to succeed operating banks. sions are excluded. Beginning 1961, 3 branches in New York City of 2 4 Exclusive of liquidations incident to succession, conversion, and insured nonmember Puerto Rican banks are also included. absorption of banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FEDERAL RESERVE PAR LIST 267 NUMBER OF BANKING OFFICES ON AND NOT ON PAR LIST On par list Total Not on par list (nonmember) F. R. District, Total Member Nonmember State, or other area Banks a B n r d a n o c ff h ic e e s s Banks a B n r d a n o c ff h ic e e s s Banks a B n r d a n o c ff h ic e e s s Banks a B n r d a n o c ff h ic e e s s Banks a B n r d a n o c ff h ic e e s s Total, including Puerto Rico and Virgin Islands: 1 Dec 31 1961 13,345 11,465 11,709 11,143 6,110 8,917 5,599 2 226 1 636 322 Dec 31 1962 13,341 12,459 11,724 12,127 6,045 9,667 5,679 2,460 1,617 332 F. R. District, Dec. 31, 1962: Boston 391 886 391 886 253 696 138 190 New York 547 2,180 547 2,180 451 1,917 96 263 Philadelphia 592 807 592 807 456 631 136 176 Cleveland 883 1,134 883 1,134 527 982 356 152 Richmond 881 1,535 763 1,406 421 909 342 497 118 129 Atlanta 1,405 662 864 599 430 494 434 105 541 63 Chicago 2,499 1,287 2,499 1,287 1,005 806 1,494 481 St Louis 1,476 445 1,200 364 474 242 726 122 276 si Minneapolis 1,312 161 710 114 470 64 240 50 602 Kansas City 1,799 155 1,796 155 764 110 1,032 45 3 47 Dallas... 1,179 192 1,104 180 632 117 472 63 75 12 San Francisco 377 3,015 375 3,015 162 2,699 213 >•> State or area, Dec. 31, 1962: Alabama 239 108 158 105 94 96 64 9 81 Alaska 12 43 10 43 5 35 5 8 Arizona 10 203 10 203 4 164 6 39 Arkansas 241 67 137 45 78 39 59 6 104 7? California 123 1,964 123 1,964 62 1,821 61 143 Colorado 174 7 174 7 105 6 69 Connecticut . . 62 231 62 231 29 183 33 48 Delaware 19 56 19 56 6 28 13 28 District of Columbia 12 72 12 72 9 65 7 Florida 337 16 297 15 140 12 157 3 40 1 Georgia. 419 141 144 133 68 123 76 10 275 Hawaii 7 105 7 105 2 38 5 67 31 93 31 93 17 86 14 7 Illinois 996 4 995 4 525 4 470 i Indiana 438 366 438 366 225 249 213 117 Iowa 671 194 671 194 163 22 508 172 Kansas . . . .... 593 38 593 38 212 27 381 11 Kentucky 351 184 351 184 99 124 252 60 Louisiana 196 203 93 170 54 133 39 37 103 33 Maine 44 152 44 152 28 106 16 46 Maryland 121 301 121 301 55 185 66 116 Massachusetts 162 443 162 443 113 365 49 78 Michigan 371 672 371 672 214 547 157 125 Minnesota 693 6 291 6 207 6 84 402 Mississippi 192 162 58 86 34 52 24 34 134 76 623 44 571 44 169 26 402 18 52 Montana . . 122 3 122 3 88 3 34 Nebraska 421 19 421 19 136 16 285 Nevada. . .. 7 45 7 45 5 39 2 6 New Hampshire 73 3 73 3 52 2 21 1 New Jersey 239 517 239 517 204 461 35 56 60 69 60 69 37 38 23 31 New York 370 1,580 370 1,580 318 1,501 52 279 North Carolina 156 609 96 489 33 263 63 226 60 120 North Dakota . . 157 33 60 11 40 5 20 6 97 22 Ohio 564 744 564 744 357 649 207 95 Oklahoma 391 32 387 32 228 28 159 4 4 Oregon 48 213 48 213 13 184 35 29 Pennsylvania 633 946 633 946 482 784 151 162 Rhode Island 10 104 10 104 5 73 5 31 South Carolina 142 186 84 177 32 126 52 51 58 9 South Dakota 171 69 68 44 56 36 12 8 103 25 Tennessee 293 255 221 242 81 174 140 68 72 13 Texas 1,045 44 1,016 44 574 25 442 19 29 Utah 49 83 49 83 21 68 28 15 Vermont . 50 40 50 40 29 19 21 21 Virginia 292 367 292 367 193 270 99 97 NVashin gton 92 323 92 323 34 308 58 15 ^Vest Vircinia 182 182 109 73 Wisconsin 569 162 569 162 159 3\ 410 131 Wyoming 56 1 56 1 41 1 15 Puerto Rico ^ 11 131 11 131 15 11 116 Virgin Islands ^ . . .. 6 1 6 1 6 1 Puerto Rico and the Virgin Islands assigned to the New York District Puerto Rico, and the Virgin Islands on which checks are drawn, infor purposes of Regulation J, "Check Clearing and Collection." Member cluding 277 banking facilities. Number of banks and branches differs branches in Puerto Rico and all except 2 in the Virgin Islands are branches from that in the preceding table because this table includes banks in of New York City banks. Puerto Rico and the Virgin Islands but excludes banks and trust cos. on 2 Includes 3 New York City branches of 2 insured nonmember Puerto which no checks are drawn. Nonmember branches in Puerto Rico include Rican banks. 6 branches of Canadian banks. NOTE.—Includes all commercial banking offices in the United States, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 WEEKLY REPORTING MEMBER BANKS, 1962 FEBRUARY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financialinstitutions Loans Wedne-sday T lo a o a n t n d a s l i m n a v e n e n d s t t s - Loans C m o e m r- - Agri- a T n o d b d r e o a k l e e r r s s To others Bank ]Vonbank Valuainvest- cial Real All tion ments 1 jus _J ted2 justed2 in t a r d n i u a d l s- tural G U s o . e v S - . t. O c s u t e h r - i e - r G U s o . e v S - t . . O c s u t e h r - i e - r F ei o g r n - c m D o ti e m o c s - - - F P a i e n n r a d s n . . Other estate other se r r e v - es curi- ties curi- ties mer- COS., ties ties cial etc. 1961—Dec. 27 122,565 121,056 74,569 32,920 1,270 1,019 2 379 125 1,343 657 1,509 3,769 2,365 13,399 16,877 1,554 1962 Jan 3 122 631 120,354 74,?85 3? 797 1,303 847 363 137 1.358 674 2.277 3,7?9 2,430 13403 16,940 1,696 10 120,81? 119,01? 73, 501 1,307 571 116 ,358 644 ,800 3 2,377 13,404 16,909 1,700 17 120 410 118,69? 7? 5?0 3? ?30 2,325 424 116 111 ,348 654 ,718 3,394 2,360 13 407 16 853 1 702 24 119,43? 118,038 71,553 31,981 1,322 208 | J98? 110 ,348 630 ,394 3,115 2,325 406 16,827 1,701 31 120,360 118,515 71,870 31,988 1,317 329 011 111 ,353 628 ,845 3, 184 2,332 13,4?0 16,902 1,705 Feb. 7 119,704 117,866 71,705 3?,038 1,314 389 1,946 109 ,357 649 ,838 3 036 2,292 13,415 16,865 1,705 14 119,637 117,877 72,099 32,117 1,318 595 1,966 110 ,362 643 ,760 3,064 2,295 13,452 16,888 1,711 21 119 380 117,8?9 71,901 3?,176 1,315 322 1,996 107 ,361 650 ,551 3,079 2,285 n,475 16,847 1,712 28 120,656 118,9?8 7?,886 3?,?04 1,322 640 345 133 ,360 629 ,728 3,?74 2,301 13,497 16,894 1,713 Mar. 7.*.... 119,657 117,995 72,294 32,203 1,318 440 2,108 134 ,373 627 ,662 3,191 2,249 13,484 16,882 1,715 14 120,246 118,435 72,981 32,607 1,323 582 2,065 112 ,375 640 ,811 3,257 2,266 13,546 16,928 1,720 2 2 1 8 . . 1 1 2 2 1 1,349 1 1 1 1 9 9 , , 4 5 7 38 8 74,0 6 3 5 0 0 3 33 3 ,0 1 1 4 4 5 1 1 , , 3 3 2 2 8 2 4 8 7 37 2 9J ? 1 0 3 3 ? 1 10 1 5 5 , , 3 3 7 7 4 4 6 6 7 92 2 , , 8 7 1 0 1 4 3 3, ,3 35 4 1 8 2 2 , , 2 2 7 7 1 3 1 n 3 , ,6 5 ? 9 0 9 1 16 6 , , 9 9 5 1 8 3 1 1 , 7 7 1 1 9 9 Apr 4 120,91? 119, 73,874 33,064 1,329 581 ? ?50 109 ,383 700 ,710 3,309 2,257 13,6?4 16,989 1,721 11 120,992 119,628 74,054 32,970 1,350 687 2J,276 132 ,396 718 ,364 3,194 2,280 13,703 17,068 1,720 18 . . 122 684 121,069 74,671 3? 987 1,354 1,025 319 118 ,413 696 ,615 3,?50 2,316 13,757 17 159 1 723 25 122,089 120,48? 74 483 778 1,364 866 9'308 117 ,412 700 ,607 3, 2,324 n,840 17,231 1,723 May 2 123,697 121,909 75,930 3?,937 1,372 1,371 9 541 121 ,416 704 ,788 3 47? 2,288 13.874 17,558 1,724 9 122,038 120,379 75,073 32,910 1,377 929 2 357 106 ,418 701 ,659 3,267 2,272 13,923 17,536 1,723 16. . .. 123 080 121,31? 75,4?9 33 1,377 1,102 160 96 ,416 681 ,768 3,334 2,312 n,990 17,557 1 719 23 122,548 120,83? 74,719 3? 978 1,384 546 154 93 ,398 702 ,716 3, 2,308 14,041 17,570 1,717 30 122,354 1?0 660 74,647 3? 854 1,378 487 ? 91 ,408 693 ,694 3 316 2,320 14,068 17,625 1,716 June 6 122 496 120,816 74,677 32 791 1,381 499 2 022 92 ,381 690 ,680 3 436 2,334 14,084 17,685 1,718 13 123,547 121,640 75 075 3? 894 1,389 713 1940 93 ,354 707 ,907 3430 2,385 161 17,728 1,719 20 124 238 122,872 76,025 33 328 1,387 789 1939 91 ,339 741 ,366 3 670 2,448 14,227 17,784 1,718 27 124 345 122,806 75 90? 33 354 1,383 597 1936 92 ,333 749 ,539 3 549 2,490 ?68 17,872 1,721 July 4 124 658 122 775 75 900 33 183 1,381 513 1 980 89 ,317 767 ,883 3 703 2,486 14,311 17,894 1,724 11 123 934 1?? 506 75 539 33 ?78 1,384 423 1 776 91 ,311 770 ,428 3 471 2,484 14,400 17,877 1,726 18 . . 123 475 122 75 339 33 038 1,396 449 1 749 86 ,319 753 ,204 3 453 2,521 14 469 17.831 1,725 25 123 121 657 75 0?6 3? 954 1,408 289 1 755 83 ,314 736 ,556 3 359 2,528 14,506 17,818 1,724 Aug 1 124 op 122 314 75 73? 33 146 1,221 363 1 916 92 ,303 740 ,898 3 717 2,542 14,5?5 17,895 1,728 8 122 947 121 149 75 ?36 33 1,214 199 1 886 79 ,299 753 [,798 3 480 2,536 14,54? 17,856 1,728 15 124 437 122 717 76 074 33 360 1,218 452 009 83 ,306 739 1,720 3 60? 2,584 14,604 17,847 1,730 22 123 850 122 3?8 75 9?4 33 418 1,230 349 1 876 79 740 5?? 3 557 2,582 14 656 17,869 1,730 29 124 122 068 75 975 33 44? 1,230 298 1 9?6 80 1,300 744 2,037 3 505 2,599 14,696 17,883 1,728 Sept. 5 124,449 122 592 76 211 33,392 1,243 304 1,976 80 1,298 704 1,857 3 684 2,631 14,728 17,905 1,734 12 124,909 123 149 76 957 33,590 1,263 827 2,040 82 1,295 681 1,760 3 525 2,648 14,810 17,931 1,735 19 126,065 124 252 78 259 33,881 1,286 1,440 2,180 82 1,290 666 1,813 637 2,683 14,877 17,970 1,733 26 125,344 124 140 78 178 34,063 1,296 1,178 188 81 1,269 650 1,204 3 530 2,696 14,9?7 18,034 1,734 Oct. 3 126,698 124,897 77,726 34,081 1,318 661 2,131 83 1,270 642 1,801 3,572 2,707 14940 18,062 1,741 10 .. .. 126,104 124 344 77 708 34,085 1,327 758 2 80 1,272 652 1,760 34?9 2,724 15008 17,991 1,741 17 126,955 125,093 77,981 34,221 1,340 823 2; "142 82 1,285 648 1,862 3,422 2,737 15084 17,939 1,742 24 125,924 124,200 77,441 34,009 1,351 614 2,069 80 1,288 653 1,724 3,314 2,703 15 155 17,947 1,742 31 127,402 125,533 78,765 34,290 1,384 1,186 2,196 81 1,301 663 1,869 3,432 2,712 15203 18,065 1,748 Nov 7 126,479 124,672 78,432 34,322 1,421 887 2,004 80 1,320 644 1,807 3,431 2,763 15231 18,076 1,747 14 126,688 124,798 78,980 34,617 1,442 948 2,020 81 1,322 644 1,890 3,456 2,767 15 309 18,120 1,746 21 127,170 125,459 79,037 34,787 1,452 700 2,082 85 1,321 621 1,711 3,445 2,734 15 384 18,172 1,746 28 126,979 125,472 78,861 34,680 1,480 661 2,077 82 1,334 623 1,507 3,371 2,714 15399 18,183 1,743 Dec. 5 128,058 126,113 79,364 34,779 1,493 849 2,169 86 1,334 613 1,945 3,420 2,700 13415 18,251 1,745 12 128,706 126,817 79,821 34,807 1,503 863 2.309 82 1,348 618 1,889 3,544 2,726 470 18,299 1,748 19 131,160 129,361 81,920 35,075 1,526 1,824 2,632 88 1,358 625 1,799 3,935 2,776 \l 483 18,339 1,741 26 132,075 129,940 82,311 35,166 1,529 1,604 2,748 97 1,369 650 2,135 4,237 2,774 504 18,374 1,741 For notes see p. 270. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 WEEKLY REPORTING MEMBER BANKS, 1962 269 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Investments Cash assets3 U. S. Government securities Total assets— Wednesday Total Bills c C t a i e f t i e r - - s Wi N th o - m te a s tu a 1 r n i t d n o g b — on A d f s ter O s ri e t t c h ie u e s - r Total d b a o w B a n t m n i i a c c t l e k e h - s s s - b a w e B f a n o i n i a g c r t l k e n - h - s s Cu c a r o r n e i d n ncy s B F w e R . a r i e v n t R - h e k . s s a o s A t s h e l e l t r s a c l c T i a a a c t o p i b o n e i t i d u s t a l a n i l - l ts in lyear 5 years 5 years 1961—Dec. 27.... 34,247 6,168 1,421 5,359 17,894 3,405 12,240 19,025 3,262 238 1,863 13,662 4,520 161,739 1962—Jan. 3.... 33,960 5,972 ,379 5,411 17,852 3,346 12,109 18,637 3,374 190 1,637 13,436 4,587 160,721 10.... 33,662 5,754 ,385 5,356 17,878 3,289 12,221 17,582 3,089 163 1,652 12,678 4,661 155,834 17.... 33,954 6,073 ,387 5,398 17,792 3,304 12,218 17,547 2,963 165 1,587 12,832 4,588 156,434 24.... 34,312 6,090 ,416 5,418 17,811 3,577 12,173 17,242 3,103 155 1,626 12,358 4,605 152,915 31.... 34,467 6,204 ,451 5,481 17,778 3,553 12,178 17,196 2,893 159 1,532 12,612 4,782 155,432 Feb. 7.... 33,914 5,779 ,436 5,509 17,668 3,522 12,247 16,910 2,657 151 1,457 12,645 4,785 152,692 14.... 33,564 5,497 ,461 5,553 17,581 3,472 12,214 17,079 2,960 158 1,542 12,419 4,804 154,972 21.... 33,492 5,366 ;>,352 6,047 16,265 3,462 12,436 16,739 2,786 147 1,474 12,332 4,665 153,059 28.... 33,510 5,498 >,367 6,074 16,150 3,421 12,532 17,099 2,873 157 1,464 12,605 4,795 156,834 Mar. 7.... 32,908 4,995 2,355 6,073 15,921 3,564 12,793 17,022 2,682 158 1,407 12,775 4,754 152,914 14.... 32,585 4,944 2,351 6,051 15,218 4,021 12,869 17,201 2,996 153 1,523 12,529 4,717 155,945 21.... 32,556 4,952 2,361 6,090 16,065 4,088 13,272 17,717 2,823 178 1,485 13,231 4,615 155,794 28.... 32,214 4,598 2,390 6,145 14,991 4,090 13,294 17,163 2,790 166 1,531 12,676 4,592 154,769 Apr. 4.... 31,923 4,248 2,364 6,317 14,881 4,113 13,405 17,363 2,899 172 1,361 12,931 4,602 155,342 31,851 4,266 2,348 6,296 14,836 4,105 13,723 17,096 2,772 153 1,515 12,656 4,555 155,576 18*.'.!'. 32,441 4,381 2,351 6,341 14,834 4,534 13,957 17,248 2,871 154 1,531 12,692 4,544 158,148 25.... 32,097 4,037 2,365 6,339 14,808 4,548 13,902 17,295 2,774 152 1,571 12,798 4,541 155,779 Mav 2.... 32,069 3,874 2,370 6,455 14,805 4,565 13,910 17,241 2,968 137 1,443 12,693 4,701 159,588 9.... 31,667 3,432 2,371 6,501 14,798 4,565 13,639 16,853 2,667 153 1,478 12,555 4,600 155,410 16.... 32,125 3,831 2,171 6,536 14,584 5,003 13,758 17,393 2,922 136 1,489 12,846 4,478 159,508 23.... 32,320 3,970 2,147 6,635 14,525 5,043 13,793 16,825 2,640 153 1,540 12,492 4,489 155,769 30.... 32,256 3,962 2,121 6,608 14,535 5,030 13,757 17,132 2,887 164 1,581 12,500 4,572 156,349 June 6 32,266 3,980 2,141 6,651 14,476 5,018 13,873 17,208 2,850 139 1,446 12,773 4,582 156,780 13.... 32,255 4,065 2,138 6,718 14,406 4,928 14,310 17,459 2,945 151 1,583 12,780 4,521 159,476 20.... 32,526 4,184 2,210 6,694 14,756 4,682 14,321 17,783 2,866 141 1,538 13,238 4,508 159,739 27.... 32,418 3,997 2,215 6,749 14,798 4,659 14,486 17,665 2,805 172 1,620 13,068 4,551 159,214 July 4.... 32,195 3,822 2,124 6,800 14,814 4,635 14,680 18,112 3,112 156 1,419 13,425 4,612 162,132 11.... 32,237 3,896 2,105 6,778 14,808 4,650 14,730 17,194 2,921 162 1,616 12,495 4,594 159,345 18.... 32,245 4,024 2,109 6,759 14,731 4,622 14,687 17,725 2,895 154 1,566 13,110 4,596 159,679 25.... 31,745 3,624 2,095 6,754 14,668 4,604 14,886 17,010 2,807 155 1,582 12,466 4,641 156,239 Aug. 1.... 31,638 3,573 2,085 6,737 14,667 4,576 14,944 17,453 2,911 152 1,483 12,907 4,754 159,825 8.... 30,959 3,035 2,077 6,664 14,626 4,557 14,954 17,178 2,683 150 1,499 12,846 4,725 156,300 15.... 31,747 3,283 2,971 7,251 12,967 5,275 14,896 17,448 2,999 159 1,508 12,782 4,559 161,317 22.... 31,450 3,103 2,980 7,356 12,790 5,221 14,954 17,473 2,679 164 1,569 13,061 4,443 157.527 29.... 31,075 2,833 2,968 7,485 12,564 5,225 15,018 17,089 2,674 161 1,630 12,624 4,599 157,219 Sep.. i5.;;; 3 3 1 0 , , 3 9 7 1 0 7 3 3 , , 1 0 9 3 4 4 2 2 , ,9 9 2 3 1 9 7 7 , , 5 4 3 3 0 2 1 1 2 2 , , 4 3 6 6 6 6 5 5 , , 2 1 4 6 1 4 1 15 5 , , 2 0 7 1 5 1 1 1 7 7 , , 3 5 2 7 9 6 2 2 , , 9 9 0 6 1 4 1 1 5 5 9 7 1 1 , , 5 6 2 7 5 0 1 1 2 2 , , 7 7 4 8 6 3 4 4, , 5 6 8 2 9 8 1 1 5 6 8 1 , , 7 2 4 2 7 4 19 30,944 3,081 2,885 7,431 12,357 5,190 15,049 17,622 2,971 152 1,628 12,871 4,568 161,527 26.... 30,818 2,963 2,116 5,938 14,092 5,709 15,144 17,464 2,822 141 1,654 12,847 4,544 159,833 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 1,609 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 1,591 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 1,610 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 1,585 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 1,561 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 1,709 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 1,550 12,577 4,592 163,263 28.... 31,124 3,854 2,276 3,975 14,763 6,256 15,487 17,530 3,204 158 1,802 12,366 4,682 162,359 Dec. 5.... 31,277 4,231 2,278 4,006 14,573 6,189 15,472 16,885 3,014 145 1,616 12,110 4,764 163,590 12.... 31,231 4,225 2,288 4,037 14,513 6,168 15,765 17,419 3,029 151 1,861 12,378 4,772 165,587 19.... 31,619 4,640 2,317 4,042 14,450 6,170 15,822 18,032 3,128 156 1,831 12,917 4,753 169,242 26.... 31,808 4,921 2,346 3,992 14,386 6,163 15,821 18,162 3,187 188 1,959 12,828 4,848 168,379 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 WEEKLY REPORTING MEMBER BANKS, 1962 FEBRUARY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time De- Other Cap- Wednesday u u T s n o t t a e a d d l - 4 j m p u o s d a a s t d e n i e - : t d d s 5 Total 6 IPC G S l a o t o n a c v a t d t l e . e F i o g r n - 7 G U o . v S t . . c m m D c t e o e i o i r s a m - c - - l - Total« S i a n v g - s IPC Oth S l e a t o r n a c d t a t e l ime e F i o g r n - 7 F B F a r . n o k m R s .F ot r h o e m rs li i a ti b e il s - i co i a u t c a n - l ts banks Govt. 1961—Dec.27.. 40,742 66,343 99,27071,1564,863 1,822 4,55712,741 41,472 30,082 5,969 2,851 2,243 482 2,081 5,46112,973 1962—Jan. 3.. 39,561 65,644 97,95870,118 5,002 1,796 4,033 3,415 41,603 30,225 5,945 2,851 2,246 236 2,763 5,19812,963 10.. 35,363 65,729 93,30568,433 4,796 1,706 1,78613,011 42,058 30,422 6,120 2,922 2,259 27 2,031 5,42112,992 17.. 35,548 65,050 93,18669,069 4,757 1,604 1,87712,370 42,362 30,461 6,309 2,992 2,258 246 2,184 5,49112,965 24.. 132,778 64,762 90,15866,793 4,870 1,577 2,08211,678 42,620 30,563 6,427 3,021 2,266 47 547 5 57812,965 31..134,698 64,350 91,83967,128 5,204 1,632 3,22011,175 42,859 30,641 6,548 3,068 2,262 52 2,Oil 5,64113,030 Feb. 7.. 131,692 63,445 88,48364,941 4,973 1,567 2,324 421 43,209 '30,801'6,722 3,098 2,250 105 2,160 567213,063 2 1 1 4 . . . . 1 1 3 3 3 2 , , 8 3 7 9 8 5 6 6 3 2, ,0 1 7 4 1 8 9 8 0 8 , , 5 73 1 5 96 6 7 4 , ,5 1 2 3 3 3 4 4 , ,9 6 5 8 1 6 1 6 5 0 7 4 0 2 3 , , 4 4 8 4 9 5 o]5 8 0 6 7 7 4 4 3 3 , , 6 3 6 5 0 9 ' ' 3 3 0 1 , , 9 0 0 1 7 2 ' '6 6 , , 9 7 2 5 3 6 3 3 , ,1 1 3 0 9 8 2 2 , , 2 2 4 4 8 4 1 7 3 9 8 2 1,8 1 0 4 9 1 5 57 73 6 8 61 1 3 3 , , 0 0 4 3 9 8 28.. 135,777 63,104 91,87166,501 5,234 1595 3,316 11,167 43,906 '31,082'7,058 3,169 2,245 45 2,126 578913097 Mar. 7.. 131,627 62,286 87,29564,183 4,896 1580 2,17911,349 44,332 '31,258r7,327 3,126 2,264 298 2 141 574313 105 14..134,706 63,090 90,06067,160 4,489 1652 1,77911,410 44,646 r31,400r7,455 3,149 2,284 43 2 403 570313090 21.. 134681 61,904 8990364 573 4,617 1683 1,594H,125 44 778 '31,518r7,468 3,176 2,254 341 2 211 548413,077 28.. 134070 62,229 89,01563936 4,848 1663 4,27710,844 45,055 '31,634r7,614 3,212 2,237 150 2,154 529713098 Apr. 4.. 134932 62,012 89 63664447 4,885 1649 3,09212067 45 296 r31,741r7,704 3.238 2,248 67 2 075 5 11513 153 11..135,109 63,723 8971166536 4,770 1650 148911566 45 398 r31,765r7,746 3^287 2,231 247 1847 520213 171 18..137241 64,345 91 79667691 4,933 652 99411,785 45 445 '31,695r7,823 3,351 2,213 224 2 169 5 37313 141 25.. 135077 64,321 8956466274 5,146 1715 2 59310796 45 513 '31,740r7,804 3 381 2,223 266 1976 5 31813142 May 2.. 138731 63071 93061 458 5,771 1731 474411297 45 670 '31,776r7,860 3,426 2,245 36 2 098 549813225 9..134859 61 842 8895963 380 5 366 684 4 20110997 45 900 '31,891r7,964 3 420 2,256 36 1948 5 33013237 16.. 138450 60,657 92 37864770 5 179 1685 572511439 46 072 '31976'8,061 3 394 2,267 174 2 186 547813220 23.. 134954 60 857 8867562 589 5404 1622 552110 390 46 279 '32066'8169 3 404 2,264 44 2 120 543413217 30..135781 61621 8929763705 5404 1601 502810357 46 484 '32 116'8322 3 403 2,265 38 1804 547313253 June 6..135996 61 504 89 34163718 5 181 1658 390711436 46 655 '32 194'8399 3 422 2 264 26 1979 550513274 13..138317 62769 91 48766761 4 878 1654 331411455 46 830 '32287'8506 3 411 2 244 73 2 297 5 52413265 20.. 139016 62 226 92 15065457 4 688 1,723 548611228 46 866 '32384'8451 3 401 2 247 410 1723 5 34313247 27.. 138468 61472 91 39164022 4 829 1,716 6 59410672 47 077 '32539'8511 3 402 2 241 291 825 5 35613274 July 4.. 141339 60 865 94 15264819 5 100 1,718 662611911 47 187 32 740 8 437 405 228 45 ? 279 5,14713322 11..138884 61 567 91 62965 190 4 632 ,645 445011989 47 255 32 887 8 415 3 319 !252 10 ,916 5,22413311 18..138776 61768 91 53765639 4 595 17«P 96911917 47 239 32 981 8 343 3 283 251 634 697 s30213270 25.. 135872 62819 88,61564,644 4771 1,655 355710864 47257 33044 8296 2273 2263 72 1,657 5,36413274 Aug. 1..138,769 62451 91,52765,116 5 129 1,671 4 36911 301 47 242 1 1 1 14 8 251 3 252 2 269 133 2 136 5,426 \l 361 8..134,707 61 308 87,32663,018 4 953 1,611 3,07011,498 47,381 242 8 260 233 2 289 566 2,219 <;,436 372 15..140,054 60518 92,58364,914 4 848 1,644 5,32111,871 47,471 304 8 296 3 239 2 274 268 ,188 5,453 354 22. 136,323 60484 88,73562,687 4 697 1,605 5,41311077 47,588 33374 8 354 3 246 2 259 494 2,002 5,37013 338 29. 135,630 60638 87,90162,583 4 622 1,565 4,91710920 47,729 33404 8 428 3,255 2 282 77 2,547 5,57513,390 33 13 Sept 5. 137,348 60,899 89,62563,769 4,819 1,571 4,45111,934 47,723 33481 8 402 3,222 2 264 58 2,435 5,48313,423 12. 139,636 62,094 91,73566,878 4,389 1,575 3,24712,244 47,901 33552 8 548 3,216 230! 147 2,5791 5,44813,414 19. 140,077 61,758 92,17465,687 4,426 1,593 5,05212,092 47,903 33631 8 457 3,238 2 224! 40 2,588 ,42413,398 26. 138,524 61,073 90,42164,190 4 528 ,554 5,41811,449 48,103 33735 8,544 3,253 216 741 1,795 I,34413,429 Oct. 3. 141,070 60,744 92,84564,085 4,631 ,533 7,02212,121 48,225 33,921 8,566 3,218 2 177 117 *•,>343 5,243113,468 10. 139,490 61,377 91,05964,492 4,491 1,500 4,86812,168 48,431 34,058 8,647 3,188 2 185 54 2,247 5,23113,468 17. 142,578 61,511 94,07167,053 4,350 1,534 4,82912,814 48,507 34,126 8,664 3,165 199 136 2,616 5,28213,482 24. 139,300 62,311 90,68465,269 4,623 1,689 3,98611,542 48,616 34,185 8,696 3,148 2 232 122 2,311 5,28113,486 31. 143,170 63,025 94,51266,996 5,017 1,681 4,28312,030 48,658 34,246 8,688 3,144 2,231 160 2,433 5,35213,561 Nov 7. 140,067 61,472 91,26165,092 4,815 1,672 3,09212,656 48,806 34,355 S,654 3,118 2,336 548 2,640 5,38513,589 14. 141,813 62,197 93,04767,537 4,743 1,617 3,04312,617 48,766 34,343 8,628 3,074 2,374 69 2,875 5,47813,569 21. 141,422 61,986 92,68766,268 4,970 1,576 4,31412,093 48,735 34,418 8,476 3,087 2,408 105 2,623 5,57313,540 28. 140,862 63,007 91,83965,916 4,938 1,552 3,63412,030 49,023 34,459 8,590 3,192 2,435 55 2,233 5,63213,577 Dec. 5. 141,566 62,762 92,31566,229 5,000 1,593 3,38812,282 49,251 34,535 8,713 3,216 2,440 167 2,583 5,66213,612 12 143,582 65,029 93,98869,143 4,857 ,665 2,33911,930 49,594 34,572 8,924 3,291 2,458 165 2,621 5,62413,595 19*. 147,298 66,326 97,53370,345 4,759 ,721 3,60012,310 49,765 34,607 9,002 3,351 2,453 290 2,49C 5,57213,592 26. 146,207 66,263 96,19669,603 4,788 1,807 4,77211,867 50,011 34,712 9,080 3,344 2,521 212 2,836 5,49713,627 1 After deduction of valuation reserves. 6 Includes certified and officers' checks and deposits of mutual savings 2 Exclusive of loans to domestic commercial banks and after deduction banks, not 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 reported as in process of collection. and mutual savings banks, not shown separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 BUSINESS LOANS OF BANKS, 1962 271 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (Net change in millions of dollars) Industry Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Durable goods manufacturing: Primary metals -25 -12 25 -37 -91 8 -62 24 -11 -25 -8 8 -50 73 116 -90 15 25 -40 2 69 -44 14 17 Transportation equipment -55 28 97 -30 2 55 -152 80 57 -58 56 64 Other fabricated metal products.... -31 41 67 -19 28 41 -26 -14 -9 -26 -19 1 Other durable goods -38 10 44 6 54 51 90 19 31 -30 -35 -92 Nondurable goods manufacturing: Food liquor and tobacco -180 -98 -66 -146 -37 31 -101 52 160 217 71 129 Textiles, apparel and leather 22 122 103 7 35 9 101 -13 -153 -58 -64 Petroleum refining -26 -26 -1 8 -10 -12 n 7 11 6 14 11 Chemicals and rubber -73 22 89 14 9 14 -11 -26 -51 -10 39 -4 Other nondurable goods -40 18 31 10 86 68 -35 25 17 -63 -12 -37 Mining, including crude petroleum and natural gas 224 -13 -41 25 -8 -10 -10 -19 3 12 5 74 Trade * Commodity dealers -15 -13 -49 -25 -102 -34 3 42 42 126 65 -58 Other wholesale . .. ... -81 11 52 28 -7 32 -1 32 32 19 11 31 Retail -138 55 92 38 12 2 -18 25 30 148 97 -128 Transportation, communication, and other public utilities -265 -109 87 -143 -104 24 3 94 212 88 61 197 Construction -23 4 37 45 90 28 10 23 -4 -6 -13 -27 All other types of business, mainly services. . . -36 48 67 -6 70 62 21 -40 26 -13 87 209 Net change in classified loans -830 161 749 -315 7 424 -391 429 602 188 375 329 Commercial and industrial change—All weekly reporting banks ••-932 '216 810 -236 76 500 -400 488 621 227 390 486 Week ending— Industry Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. 3 10 17 24 31 7 14 21 28 7 14 21 28 Durable goods manufacturing: Primary metals -14 -8 3 -6 8 1 -14 -6 -1 14 5 7 Machinery — 11 -8 -39 — 16 23 16 7 38 12 3 38 87 -12 Transportation equipment -68 -2 4 -8 19 24 9 8 -13 35 14 53 -5 Other fabricated metal products... -18 4 -5 -7 -5 19 13 8 1 8 26 22 11 Other durable goods -1 2 -7 -22 -10 3 -17 13 10 14 14 15 Nondurable goods manufacturing: Food liquor and tobacco -2 -109 -26 -49 5 -45 -6 -28 -19 -35 7 29 -67 Textiles, apparel, and leather -19 5 7 1 28 51 31 23 18 30 27 38 9 Mi P C O n e h t i t h n e r e g m o r , l i e c n u i a o n m l n c s l d u a r u d e n r f i d a n in b g i r l n u e g b c p r b u o e d o r e d s petroleum - -1 3 1 5 8 6 -2 - - 6 6 0 - - 8 5 3 -1 -6 1 A - - 3 4 4 2 -13 4 4 2 4 4 -2 1 7 2 -1 1 4 4 3 -13 1 2 5 1 2 9 1 3 1 2 6 1 -7 4 8 and natural gas 192 30 -5 8 7 -6 -12 2 -11 -8 -24 Trade: Commodity dealers. 14 -15 -14 19 -19 20 -5 -26 -1 -29 -19 19 -20 Other wholesale -8 -20 -25 -19 -10 9 -6 -7 14 8 26 19 -1 Retail -95 -25 -19 2 11 13 20 11 -10 40 52 11 Transportation, communication, and other public utilities -103 15 -70 -64 -43 -73 -1 -23 -12 -14 74 71 -45 Construction . . 5 -9 1 -11 -9 -12 11 8 -3 20 8 8 All other types of business, mainly services 43 -48 -48 -20 38 -2 15 13 21 14 34 35 -17 -119 -249 -218 -231 -13 22 73 42 25 6 396 487 -140 Commercial and industrial change— All weekly reporting banks • • • -123 -296 -271 -249 n '50 79 59 28 -1 404 538 -131 For NOTE see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 BUSINESS LOANS OF BANKS, 1962 FEBRUARY 1963 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS—Continued (Net change in millions of dollars) Week ending— Industry APr. Apr. Apr. May May May May May June June June June 18 A2P/- 9 16 23 30 6 13 20 27 Durable goods manufacturing: -41 6 -7 5 -80 -6 2 -23 16 g 8 3 6 Machinery .. . -24 -42 -11 -14 20 1 4 -3 -7 -5 -10 43 -3 Transportation equipment 7 -19 -10 Q 50 -31 -7 -9 -7 -14 70 6 Other fabricated metal products... -1 1 -19 22 -3 14 -6 1 1 7 22 12 Other durable goods . 3 —2 6 — 2 27 24 4 14 13 26 -2 Nondurable goods manufacturing: -14 -52 2 -82 9 -60 41 -42 15 -24 -39 44 51 Textiles apparel and leather 13 14 <5 -15 15 4 26 -26 -19 14 10 9 3 Petroleum refining 33 -53 28 -1 -12 6 3 -4 -10 -8 3 4 Chemicals and rubber 10 18 — 14 20 — 1 11 T — 10 _7 16 39 -33 Other nondurable goods 1 4 2 3 67 6 13 —-2 11 2 30 17 14 8 Mining, including crude petroleum and natural gas • 34 -9 2 -2 -5 15 -4 -15 -10 8 -1 -6 Trade: Commodity dealers -7 -5 -12 -2 3 -36 -21 -34 -14 -17 4 -12 O Re th ta e i r l wholesale 18 2 3 3 4 1 1 0 1 - - 2 6 4 -4 4 10 3 -4 20 -6 1 - - 1 3 6 3 1 9 9 182 -15 9 Transportation, communication, and other public utilities 1 -38 -39 -66 -29 -6 3 -23 -49 -47 8 63 Construction 2 19 19 5 30 20 36 7 -2 -2 17 16 -3 All other types of business, mainly services 11 2 -4 -15 20 14 17 26 -7 5 25 30 2 Net change in classified loans 47 -115 -7 -240 156 -66 179 -146 -117 -73 74 394 28 Commercial and industrial change— All weekly reporting banks 50 -94 17 -209 159 -27 213 -145 -124 -63 103 434 26 Week ending— Industry July July July July Aug. Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. 4 11 18 25 1 8 15 22 29 5 12 19 26 Durable goods manufacturing: Primary metals -33 -1 -14 -15 8 -1 1 16 -10 -8 7 1 Machinery -17 -24 2 22 -8 17 -11 -18 9 -2 44 18 Transportation equipment . -35 -24 -89 -5 40 5 46 7 -18 8 -40 89 1 Other fabricated metal products... -2 2 -6 -20 8 -2 -7 -12 -10 14 1 -14 Other durable goods . • -21 124 -9 -4 5 10 5 5 -5 9 4 14 4 Nondurable goods manufacturing: 3 -44 6 -65 22 -23 46 -28 35 29 32 67 32 Textiles apparel and leather 31 -6 -5 -11 9 26 32 12 21 10 15 -20 -18 -1 10 -23 7 12 3 -2 -5 -1 -6 5 -2 15 Chemicals and rubber -36 c -34 -2 -21 3 7 -7 — 8 -31 -17 -1 2 Other nondurable goods -20 c4 -27 8 -3 6 10 7 5 6 5 6 Mining, including crude petroleum and natural gas -4 3 -7 -10 4 2 -16 -1 2 11 -Q 3 -9 -7 16 14 -4 10 2 20 16 31 -16 11 Other wholesale -2 5 6 -9 19 1 5 -2 8 8 12 7 5 Retail -19 5 1 -3 8 -7 25 15 -17 -6 4 29 4 Transportation, communication, and other public utilities • 21 1 -3 -16 35 -16 15 49 12 -8 69 48 103 Construction -6 11 -11 16 7 26 7 -17 -32 8 23 -3 All other types of business, mainly services -36 16 29 12 11 -22 -7 -29 8 -27 30 2 21 Net change in classified loans -172 92 -215 -96 187 -26 239 15 15 -44 165 306 175 Commercial and industrial change— All weekly reporting banks -171 95 -240 '-84 192 -26 240 58 24 -50 198 291 182 For NOTE see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 BUSINESS LOANS OF BANKS, 1962 273 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS—Continued (Net change in millions of dollars) Week ending— Industry Oct. Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. 3 10 17 24 31 7 14 21 28 5 12 19 26 Durable goods manufacturing: Primary metals — ?5 2 _3 — 1 3 —5 —5 8 1 2 —4 Machinery -18 -10 -4 -27 16 -1 5 16 -5 20 16 4 -23 Transportation equipment -23 -13 -2 -13 -6 -6 8 46 9 9 -19 51 23 Other fabricated metal products. . . -14 -3 -10 -7 8 -3 -5 -3 -8 -8 9 3 -3 Other durable goods -10 1 -10 -10 -1 -9 -18 Q -8 5 o -80 Nondurable goods manufacturing: food liquor and tobacco 70 9 118 -27 48 -3 46 46 -19 21 14 102 -8 Textiles, apparel and leather -8 -13 -45 -52 -35 8 6 -42 -29 -33 -9 n -15 -12 1 -14 8 23 -3 10 10 -4 -2 -12 8 18 Chemicals and rubber -4 -3 -1 4 -1 39 -1 2 -22 2 10 5 Other nondurable goods -7 6 -13 -30 -19 -1 -2 1 -10 -3 -12 -2 -20 Mining, including crude petroleum and natural gas 16 9 3 -1 -14 15 6 -16 40 3 20 10 17 25 27 34 24 30 11 8 17 -7 -20 -10 -21 Other wholesale 10 2 20 -13 -1 19 15 -24 9 -9 16 15 Retail 18 36 44 25 25 19 58 36 -16 7 -14 -43 -78 Transportation, communication, and other public utilities 14 19 -3 -74 132 1 25 17 18 18 -25 19 185 Construction -10 — 2 4 -9 10 4 -7 -10 -13 -7 2 -10 All other types of business, mainly services -13 -47 4 6 37 -44 67 51 12 52 41 68 48 Net change in classified loans 2 19 118 -199 248 9 282 181 -97 88 -37 233 45 Commercial and industrial change— All weekly reporting banks 18 136 -212 281 32 295 170 '107 99 28 268 91 NOTE.—Data for sample of about 200 banks reporting changes in their cent of those of all commercial banks. larger loans; these banks hold about 95 per cent of total commercial and End-of-week date shown. Monthly figures are based on weekly changes. industrial loans of all weekly reporting member banks and about 70 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 INTEREST RATES, 1962 FEBRUARY 1963 MONEY MARKET RATES (Per cent per annum) U. S. Government securities (taxable)3 Finance Prime CO. Prime coml. paper bankers' 3-mo nth bills 6-month bills 9- to 12-month issues Period m 4 p o - a n t p o t e h r s 6 , - J m d 3 p i o - r l n e a to c t c h t e l 6 s d y - , 2 90 a a c n d c c a e e y p s s t , - i 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 ) et Other 4 i 3 s - s y u t e o e a s r 5 5 - 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 3.25 3.02 2.90 2.719 2.73 2.804 2.80 2.89 3.02 3.51 July 3.36 3.20 3.07 2.945 2.92 3.085 3.08 3.17 3.23 3.71 Aug 3.30 3.12 3.11 2.837 2.82 3.005 2.99 3.10 3.13 3.57 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 Dec 3.29 3.16 3.00 2.856 2.87 2.908 2.91 2.94 2.95 3.44 Week ending— 1961—Dec. 30... 3.25 3.00 3.00 2.594 2.66 2.845 2.90 3.02 3.04 3.81 1962 Jan 6 3 25 3.00 3.00 2.703 2.72 2.941 2.96 3.06 3.07 3.79 13 3.35 3.09 3.00 2.823 2.78 3.073 3.02 3.12 3 13 3.83 20 3.30 3.11 3.00 2.770 2.73 2.970 2.90 3.27 3.09 3.87 27 3.20 3.03 3.00 2.688 2.67 2.875 2.89 3.25 3.04 3.85 Feb. 3 3.13 3.00 3.00 2.705 2.69 2.939 2.92 3.26 3.04 3.88 10 3.18 3.00 3.00 2.695 2.70 2.898 2 92 3.24 3 06 3 83 17..... 3.25 3.00 3.00 2.759 2.81 2.952 3.00 3.26 3.14 3.78 24 3.25 3.00 3.00 2.849 2.74 3.031 2.93 3.18 3.20 3.73 Mar 3 3.25 3.00 3.00 2.664 2.69 2.847 2.87 3.10 3.09 3.62 10 3.25 3.00 3.00 2.721 2.74 2 883 2 oo 3 05 3 04 3 60 17 3.25 3.00 3.00 2.804 2.74 2.972 2.91 3.02 3.02 3.61 24 3.25 3.00 3.00 2.689 2.70 2.854 2.84 2.93 2.96 3.49 31 3.25 3.09 3.00 2.719 2.73 2.857 2.86 2.90 2.93 3.50 Apr 7 3.25 3.13 3.00 2.757 2.72 2.875 2.82 2.86 2.88 3.43 14 3.25 3.13 3.00 2.720 2.74 2 814 2.84 2.86 2 94 3 47 21 3.19 3.08 3.00 2.723 2.72 2.825 2.82 2.95 2.96 3.48 28 3.13 3.06 3.00 2.740 2.73 2.837 2.83 2.95 2.98 3.52 May 5 3 13 3.00 3.00 2.748 2.74 2.845 2.83 2.94 2.97 3.52 12 3.13 3.00 2.95 2.720 2.67 2.816 2.77 2.90 2 91 3 47 19... 3.13 2.96 2.88 2.646 2.67 2.744 2.77 2.91 2.99 3.55 26 3.20 2.88 2.88 2.700 2.69 2.795 2.77 2.92 3.04 3.57 June 2. 3.25 2.88 2.88 2.656 2.68 2.743 2.76 2.88 3.00 3.53 9 3.25 2.99 2.88 2.691 2.65 2.787 2.74 2.86 2.97 3.50 16-.... 3.25 3.00 2.88 2.671 2.69 2.758 2.76 2.86 2.97 3.46 23... 3.25 3.03 2.88 2.721 2.73 2.800 2.80 2.88 3.03 3.50 30 3.25 3.11 2.98 2.792 2.84 2.872 2.90 2.97 3.12 3.60 July 7 3.28 3.17 3.00 2.930 2.92 3.008 3.00 3.06 3.18 3.66 14 3.38 3.25 3.00 2.974 2.97 3.096 3.09 3 12 3.22 3.71 21 3.38 3.25 3.10 2.983 2.95 3.133 3.13 3.26 3.27 3.73 28 3.38 3.16 3.13 2.892 2.88 3.103 3.09 3.22 3.25 3.71 3.38 3.13 3.13 2.874 2.85 3.075 3.03 3.19 3.22 3.68 §* 11 3.33 3.13 3.13 2.802 2.83 2.990 3.03 3.19 3.19 3.64 18 3 25 3.13 3.13 2.867 2.84 3.060 3.00 3.11 3.15 3.58 25... 3.28 3.13 3.13 2.837 2.82 2.984 2.96 3.04 3.08 3.51 Sept. 1 3.30 3.10 3.08 2.806 2.80 2.916 2.93 3.02 3.06 3.52 8 3 25 3.13 3.06 2.834 2.82 2.977 2.95 3 04 3.08 3.56 15 3 35 3 13 3 06 2 789 2 78 2 911 2 93 3 00 3 01 3 59 22 3 ^8 3.13 3 10 2 796 2 77 2 962 2 93 2 98 2 97 3 57 29 3.38 3.13 3.13 2.749 2.75 2.938 2.90 2.93 2.95 3.51 Oct 6 3 38 3 20 3 13 ~> 752 2 75 2 902 2 89 2 90 2 92 3 44 13 3.25 3.02 3.00 2.760 2.76 2.864 2.86 2.87 2.91 3.46 20 3 25 3.00 3.00 2.749 2.74 2.843 2.84 2.92 2.88 3.46 27... 3.25 3.00 3.00 2.742 2.74 2.828 2.83 2.91 2.89 3.48 Nov 3 3 15 2.95 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 i 2.82 2.927 2.87 2.92 2.89 3.43 17... 3.25 3.11 3.00 2.801 I 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 8 3 25 3.13 3.00 2.861 2.85 2.945 2.91 2.94 2.97 3.48 15 3.25 3.14 3.00 2.807 2.84 2.861 2.88 2.93 2.94 3.44 22.. . 3 28 3.19 3.00 2.861 2.88 2.901 2.90 2.94 2.94 3.41 29 3.38 3.19 3.00 2.894 2.89 2.924 2.93 2.95 2.96 3.41 1 Averages of daily offering rates of dealers. 4 Certificates of indebtedness and selected note and bond issues. 2 Averages of daily rates, published by finance cos., for varying maturi- 5 Selected note and bond issues. ties in the 90-179 day range. 3 Except for new bill issues, yields are averages computed from daily closing bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INTEREST RATES, 1962 275 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks By selected By Dividends / Earnings / Period United State and local ratings group price ratio price ratio States (long- Total* term) Total1 Aaa Baa Aaa Baa In tr d i u al s- R ro a a i d l- P u u ti b li l t i y c fe P r r r e e - d C m o o m n - C m o o m n - 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 ^ 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 1 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 Sept 3.94 3.28 3.01 3.66 4.61 4.32 5.03 4.45 4.88 4.49 4 50 3 60 6 22 Oct 3.89 3.21 2.94 3 62 4 57 4 28 4 99 4 40 5 85 4 46 4 49 3 71 Nov 3.88 3.15 2.89 3.53 4.55 4.25 4.96 4.39 4.83 4.42 4.45 3.50 Dec 3.87 3.22 2.93 3.57 4.52 4.24 4.92 4.40 4.76 4.41 4.42 3.40 Week ending— 1961 Dec 30 4.07 3.62 3.31 4.04 4.72 4.44 5.10 4.60 4.93 4.62 4.64 2.86 1962 Jan 6 4.06 3.59 3.26 4.04 4.71 4.43 5.11 4.59 4.93 4.62 4.64 2.88 13 4.08 3.57 3 22 4.04 4.70 4.42 5.09 4.57 4.92 4.61 4.59 2.97 20 4.08 3.54 3.19 4.00 4.70 4.42 5.08 4.57 4.92 4.61 4.59 3.00 27 4.08 3.50 3.17 3.96 4.70 4.41 5.08 4.57 4.91 4.61 4.57 3.00 Feb. 3 4.10 3.44 3.12 3.88 4.70 4.42 5.07 4.57 4.91 4 61 4 55 2 98 10 4.09 3.40 3.09 3.83 4.70 4.42 5.08 4.58 4.91 4.62 4.53 2.93 17 4.08 3.35 3.04 3.78 4.70 4.43 5.08 4.57 4.91 4.63 4.54 2.93 24 4.12 3.39 3.08 3.81 4.70 4.42 5.07 4.57 4.90 4.63 4.49 2.95 Mar 3 4.08 3.39 3.08 3.81 4.69 4.42 5.05 4.55 4.89 4.62 4.51 2.97 10 4.06 3.32 3.03 3.71 4.68 4.40 5.05 4.53 4.89 4.62 4 48 2 98 17 4.02 3.26 3.00 3.59 4.67 4.39 5.04 4.52 4.88 4.61 4.47 2.93 24 3.97 3.26 3.00 3.61 4.66 4.39 5.02 4.50 4.88 4.60 4.49 2.94 31 3.96 3.25 3.01 3.60 4.65 4.38 5.02 4.49 4.87 4.59 4.48 2.96 Apr. 7 3.90 3.24 3.01 3.57 4.65 4.37 5.03 4.48 4.87 4.59 4.49 3.03 14 3.89 3.24 3.01 3.57 4.63 4.34 5.02 4.46 4.86 4.58 4 44 3 04 21 3.88 3.21 2.97 3.55 4.62 4.33 5.01 4.45 4.86 4.56 4.46 3.05 28 3.90 3.17 2.93 3.52 4.61 4.31 5.01 AAA 4.85 4.54 4.42 3.07 May 5 . 3.87 3.16 2.92 3.52 4.61 4.30 5.02 4.43 4.85 4.54 4.43 3.16 3.85 3.17 2.93 3.52 4.59 4.29 5.00 4.43 4.84 4.52 4.42 3.23 19 3.87 3.18 2.94 3.52 4.58 4.28 4.99 4.42 4.82 4.49 4.43 3.23 26 3.90 3.24 3.00 3.58 4.57 4.27 4.98 4.41 4.81 4.48 4.44 3.39 June 2 . 3.89 3.27 3.04 3.60 4.57, 4.28 4.98 4.42 4.81 4.48 4.54 3.57 9 3.88 3.30 3.05 3.64 4.58 4.28 5.00 4.43 4.83 4.48 4.53 3.57 16 3.87 3.31 3.06 3.65 4.58 4.28 5.01 AAA 4.86 4.46 4.50 3.76 23 3.90 3.29 3.05 3.62 4.59 4.29 5.02 4.45 4.86 4.46 4 50 3 81 30 3.95 3.32 3.08 3.67 4.61 4.29 5.03 4.48 4.88 4.46 4.54 3.97 July 7 3.99 3.35 3.09 3.70 4.62 4.32 5.04 4.50 4.89 4.47 4.59 3.69 14 4.03 3.36 3.09 3.70 4.63 4.34 5.05 4.52 4.90 4.48 4.59 3.62 21 4.03 3.36 3,09 3.72 4.63 4.33 5.04 4.51 4.89 4.48 4.58 3.71 28 4.02 3.39 3.11 3.77 4.64 4.35 5.04 4.52 4.90 4.49 4.59 3.70 Aug 4 4.03 3.42 3.13 3.78 4.65 4.37 5.07 4.54 4.90 4.50 4.58 3.61 11 4.00 3.44 3.15 3.80 4.64 4.36 5.07 4.54 4.91 4.51 4 57 3 63 18 . . .. 3.98 3.41 3.13 3.78 4.65 4.36 5.07 4.52 4.91 4.51 4.55 3.56 25 3.94 3.33 3.05 3.10 4.63 4.34 5.05 4.50 4.91 4.50 4.51 3.49 Sep 1 3.94 3.31 3.03 3.66 4.63 4.33 5.05 4.48 4.90 4.50 4.52 3.56 8 3.96 3.30 3.02 3.66 4.62 4.33 5.04 4.47 4.89 4.50 4.50 3.59 15 3.95 3.29 3.02 3.66 4.61 4.32 5.03 4.46 4.88 4.50 4.50 3.55 22 3.94 3.27 3.01 3.66 4.61 4.31 5.03 AAA 4.88 4.50 4 50 3 54 29 3.93 3.26 3.00 3.65 4.60 4.31 5.02 AAA 4.87 4.49 4.49 3.72 Oct 6 3.90 3.26 3.00 3.65 4.59 4.29 5.00 4.42 4.85 4.48 4.50 3.72 13 3.90 3.25 2.99 3.65 4.57 4.28 4.99 4.40 4.85 4.46 4.47 3.66 20 3.88 3.17 2.89 3.59 4.57 4.27 4.98 4.40 4.85 4.46 4.48 3.68 27 3.89 3.16 2 88 3.58 4.57 4.27 4.98 4.39 4.85 4.46 4.51 3.79 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 4.25 4.97 4.40 4.85 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 8 3.89 3.21 2.92 3.57 4.54 4.26 4.93 4.39 4.79 4.42 4.44 3.39 15 3 88 3 22 2 93 3 57 4 52 4 25 4 92 4 40 4 77 4 42 4 42 3.40 22 .. 3.86 3.22 2.94 3.57 4.52 4.24 4.92 4.40 4.76 4.40 4.42 3.41 2Q 3.85 3.22 2.94 3.57 4.52 4.23 4.93 4.40 4.75 4.40 4.41 3.39 Number of issues 4-10 20 5 5 120 30 30 40 40 40 14 500 500 1 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 airraatteellyy.. BBeeccaauussee ootf aa lliimmiitteedd nnuummbbeerr ootf ssuuiittaabbllee iissssuuees, the number of from Moody's Investors Service series. coorrpooorraattee bboonnddss iinn ssoommee ggrroouuppss hhaass vvaarriieedd ssoommeewwhhaatt.. 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.—Computed as follows: U.S. Govt. bonds: Averages of daily Preferred stock ratio is based on 8 median yields for a sample of nonfigures for bonds maturing or callable in 10 years or more. callable issues—12 industrial and 2 public utility; common stock ratios on the 500 stocks in the price index. Quarterly earnings are seasonally State and local govt. bonds: General obligations only, based on Thurs. adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments. .. 278 Gold production . 279 Net gold purchases and gold stock of the United States. . . 280 Estimated foreign gold reserves and dollar holdings... 281 International capital transactions of the United States... 282 U. S. balance of payments . 291 Money rates in foreign countries. . . 291 Foreign exchange rates. . 293 Guide to tabular presentation. . . 204 Index to statistical tables. . 299 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- 277 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 GOLD RESERVES FEBRUARY 1963 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) E pe n r d io o d f m t E o a s t t t a e i- l d M I ta n o r t n l y e . - U S n ta it te e s d r m E es a s t t t e i o - 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 o ft n i g i« o, world i Fund world 1955 37,620 1,808 21,753 14,060 372 144 71 928 323 1,134 44 86 116 1956 38,105 1,692 22,058 14,355 224 107 71 925 324 1,103 46 57 122 1957 38,810 1,180 22,857 14,775 126 126 103 915 324 1,100 40 62 81 1958 39,490 1,332 20,582 17,575 60 162 194 1,270 325 1,078 40 72 83 1959 40,185 2,407 19,507 18,270 56 154 292 1,134 327 960 43 71 42 I960 40,530 2 439 17,804 20,285 104 147 293 I 170 287 885 45 78 1961 Dec . ... 41,155 2 077 16 947 22,130 190 162 303 I 248 285 946 48 88 1962 Jan. . ... 2 079 16 847 190 164 303 I 277 285 950 48 89 Fcb 2,096 16,795 165 164 304 1,291 285 962 47 89 Mar 41,290 2,098 16,643 22J550 164 167 344 1,297 285 964 46 91 Apr 2 099 16 519 114 170 363 I 315 285 963 46 91 May 2 106 16,458 114 174 363 I 318 286 913 45 92 41,285 2,110 16,527 22,650 102 177 363 1,335 286 669 45 93 Julv 2 136 16 182 78 180 419 I 335 286 674 44 93 A.Ug 2,155 16,139 74 182 419 1,342 286 683 44 94 Sept *41,345 2,175 16,081 »23,090 71 184 419 1,341 286 689 43 83 Oct 2 179 16,026 68 186 429 t 341 286 695 43 Nov . 2,190 16 014 64 187 439 I 340 286 702 43 Dec 2,195 16,057 190 454 365 708 43 Domin- Ger- E pe n r d io 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 va l 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 si o a - Iran lic Rep. of 1955 136 31 12 23 28 35 942 920 11 27 247 81 131 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 1 31 10 20 30 41 1,641 2,971 76 24 247 58 130 1961—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 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 AUg 31 3 19 18 62 2,450 3,667 86 24 247 129 Sept 31 3 19 18 61 2 481 3 668 86 247 129 Oct 31 3 19 18 61 2,513 3 669 81 247 129 Nov . 31 3 19 18 61 2,545 3 669 77 247 129 Dec 31 3 19 18 61 2,587 3,679 247 129 E p n er 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 1,132 34 30 50 28 9 548 238 I960..... 98 18 2,203 119 137 1,451 35 30 52 42 15 552 178 1961—Dec 84 18 2,225 140 112 1,581 1 30 53 47 27 443 298 1962—Jan 98 18 2,228 140 111 1,581 1 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 1,581 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 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 Sept 98 18 2,241 172 97 1,581 30 53 47 37 469 488 N O o ct v 98 1 1 8 8 2 2 , , 2 2 3 3 9 7 1 1 7 7 2 2 95 1 1 , , 5 5 8 8 1 1 3 3 0 0 5 5 3 3 4 4 7 7 38 4 4 7 6 1 9 r5 5 0 0 9 1 Dec . 18 2,243 1,581 30 53 47 471 499 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 GOLD RESERVES AND PRODUCTION 279 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 - U gu 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 . - E E P F U * ments3 1955 132 276 1,597 19 112 144 174 2,120 216 403 16 121 244 1956 132 266 1,664 19 112 144 188 2,133 186 603 18 59 268 1957 101 219 1,706 24 112 144 188 2,273 180 719 14 24 254 1958 57 204 1,925 24 112 144 174 3,069 180 719 17 -42 126 1959 68 191 1,934 19 104 133 174 2,736 180 652 10 -134 40 I960 178 170 2,185 19 104 134 174 3,231 180 401 4 -19 55 1961—Dec 316 180 2,560 104 139 174 3,318 180 401 6 115 56 1962 Jan . . 331 181 2 505 104 140 174 3 410 180 401 6 176 Feb 341 181 2,481 104 140 174 3,424 180 401 6 176 Mar 351 181 2,444 104 140 174 3,452 180 401 6 171 61 Apr . 376 181 2 424 104 140 174 3 472 180 401 6 162 May 400 181 2,409 104 140 174 3,525 180 401 6 165 409 182 2,409 104 140 174 3,433 180 401 6 203 46 July 429 182 2 459 104 140 174 2 915 180 401 3 209 Aue 429 181 2,459 104 140 174 2,848 180 401 3 210 Sept 428 181 2,453 104 140 174 2 792 180 401 3 200 62 Oct 438 181 2,452 104 140 174 2,822 180 401 3 172 Nov .. 437 181 2,421 104 140 174 2,884 180 401 4 151 Dec 446 181 2,667 140 174 2,806 180 -50 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) Africa North and South America Other World Period p t r i o o d n u 1 c- A So fr u ic th a R de h s o ia - Ghana C o R o f n e t g p 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 ia - India ot A he ll r* 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—Nov 69.2 1-6 4.1 13.0 .9 .4 1 -1 3.1 .5 Dec 67.8 6 3.4 12.9 .5 .4 1 3.3 5 1962—Jan 70.6 6 3.5 12.6 .7 .4 2.9 .5 Feb 67.4 6 3.2 11.4 .9 .4 4 2 9 5 Mar 72.9 7 3.5 12.8 1.1 .4 *) 3.1 5 Apr 72.3 6 3.0 12.4 .9 .3 2 6 4 May 74.0 5 3.4 12.3 .6 .4 3.0 .5 June . 75.2 1.6 3.1 11.8 .8 .4 .9 3.3 .5 J A u u l g y 7 7 6 6 .6 3 I 6 6 4 4 . . 0 6 1 12 1 . 0 9 .8 6 .4 4 1.2 -> 3 3 .4 3 .5 5 Sept 76.1 7 4.8 11.7 .7 .3 1 Oct . . .. 78 1 1.6 4.3 12 5 Nov 78.5 3.8 12.1 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

280 U. S. GOLD FEBRUARY 1963 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: -6 -84 -83 -1 -39 -17 -56 3 3 -329 -39 -141 -144 -63 -81 -28 -35 -68 -34 -266 -173 -45 -98 -214 Germany, Fed. Rep. of -226 -10 -34 -23 Italy -349 100 Netherlands 25 -261 -30 -249 -25 -25 -55 -5 -20 -10 Spain 31 32 -114 -156 -58 -40 -47 -59 -20 — 16 -8 -215 20 -324 -125 -45 -5 62 35 -45 -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: 115 75 67 -50 -90 25 60 80 —30 -20 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 -5 * 18 -4 -28 -97 i -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 * -4 -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 reacquire 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 Gold stock 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 Gold stock h c F o u o l r d r r i e e n i n g g c n s y 2 Total T g o o t l a d l Total i Treasury Total i Treasury 1951 22,873 22,873 22,695 53 53 1962—Jan.... 16,963 16,847 16,815 116 -100 -100 1952 23,252 23,252 23,187 379 379 Feb.... 16,948 16,795 16,790 153 -15 -52 1953 22,091 22,091 22,030 -1,161 -1,161 Mar.... 16,873 16,643 16,608 230 -75 -152 1954 21,793 21,793 21,713 -298 -298 16,762 16,519 16,495 243 -111 -124 M*ay*.'.'. 16,718 16,458 16,434 260 -44 -61 1955 21,753 21,753 21,690 -40 -40 June... 17,081 16,527 16,435 554 363 69 1956 22,058 22,058 21,949 305 305 July... 16,678 16,182 16,147 496 -403 -345 1957 22,857 22,857 22,781 799 799 Aug.... 16,562 16,139 16,098 423 -116 -43 1958 20,582 20,582 20,534 -2,275 -2,275 Sept... 16,531 16,081 16,067 450 -31 -58 1959 19,507 19,507 19,456 -1,075 3-1,075 Oct... 16,364 16,026 15,978 338 -167 -55 Nov... 16,216 16,014 15,977 202 -148 -12 1960 17,804 17,804 17,767 -1,703 -1,703 Dec... 16,156 16,057 15,978 99 -60 43 1961 17,063 16,947 16,889 116 -741 -857 1962 16,156 16,057 15,978 99 -907 -890 1963—Jan.p... 16,103 15,975 15,928 128 -53 -82 1 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 8 on page 289 for gold held under earmark at 2 For holdings of F. R. Banks only see pp. 212 and 214. F. R. Banks for foreign and international accounts. Gold under ear- 3 Includes payment of $344 million as increase in U. S. gold subscrip- mark is not included in the gold stock of the United States. tion to the International Monetary Fund. See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 GOLD RESERVES AND DOLLAR HOLDINGS 281 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. 3(), 1962* Area and country Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. term bonds term bonds term bonds term bonds term bonds term bonds dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes Western Europe: Austria • • • • 536 3 526 3 558 3 594 * 640 * 744 * 1,312 2 1,476 1 1,574 8 1,616 8 1,593 2 1,511 * 85 31 79 30 83 30 80 29 83 29 78 30 Finland 87 * 134 2 138 2 138 2 133 2 135 2 2,160 5 3,014 5 3,110 4 3,360 3 3,664 3 3,643 3 Germany Fed Rep of . .. 6,447 3 6,394 3 6,505 3 6,200 3 6,289 3 6,467 3 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 2 1,888 2 1,857 2 Norway 112 148 135 128 135 126 142 93 131 85 142 91 636 1 523 1 542 1 532 1 584 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 "> 2,863 94 3,177 86 3,435 83 3,262 83 3,360 83 3,290 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 46 695 47 Total 25,108 838 27,395 864 27,914 840 28,280 751 28,869 820 28,683 786 3,324 446 3,576 465 3,704 459 3,454 423 3,566 227 4,169 240 Latin America: 419 1 454 1 425 1 407 1 310 1 301 1 Brazil 481 2 551 1 513 1 492 1 511 1 499 1 Chile 180 * 178 * 153 * 160 * 176 * 147 * Colombia . 236 1 222 1 235 1 228 1 252 1 228 1 Cuba 78 1 46 * 44 * 40 * 38 * 37 * Guatemala 68 * 70 * 70 • 82 76 * 58 * Panama Republic of. . . 5 1 3 2 4 3 71 52 7 9 9 5 1 60 8 6 7 5 1 61 8 5 2 6 1 60 8 9 7 6 1 52 8 8 5 1 Peru 114 * 123 1 131 1 137 * 137 * 154 * Uruguay 231 1 229 1 237 1 255 259 1 272 1 Venezuela 799 1 849 1 819 1 801 1 765 1 780 1 Other*.4 370 297 77 255 192 305 188 360 156 380 132 Total 3,633 15 3,627 89 3,575 204 3,604 200 3,580 168 3,469 144 Asia: India 301 41 333 6 325 6 321 6 296 6 293 6 236 1 120 1 119 1 137 1 125 1 76 1 Iran 152 * 167 • 161 * 165 * 155 * 157 * 2,166 3 1,953 3 1,894 3 2,054 3 5 2,210 3 2,344 3 Philippines 218 2 174 2 212 1 195 1 213 1 198 1 Thailand 290 • 344 * 368 * 410 * 431 * 430 * Other 991 45 1,130 45 1,168 45 1,215 41 1,207 41 1,266 41 Total 4,354 92 4,221 57 4,247 56 4,497 52 5 4,637 52 4,764 52 All other: Australia 235 * 238 * 260 * 268 * 281 * 315 * South Africa 207 * 251 * 330 * 415 * 471 * 535 * U.A.R. (Egypt) 196 * 189 * 189 * 190 * 193 * 186 * Other 6 600 35 579 38 635 39 631 42 640 39 664 39 Total 1,238 35 1,257 38 1,414 39 1,504 42 1,585 39 1,700 39 Total foreign countries 7... 37,657 1,426 40,076 1,513 40,854 1,598 41,339 1,468 542,237 1,306 42,785 1,261 International4 6,337 900 5,422 1,127 5,767 1,240 r6,394 1,087 '6,565 1,009 6,994 861 Grand total f 43,994 2,326 45,498 2,640 46,621 2,838 r47,733 2,555 ••548,802 2,315 49,779 2,122 Sterling area 5,558 536 5,863 567 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. d ta i r s y tr i G bu o t l e d d ; E by u r t o h p e e a T n r i F pa u r n ti d t ; e a C n o d m t m he i s B si a o n n k f f o o r r t I h n e t e R rn e a s t t i i o tu n t a io l n S e o t f tl e M m o e n n e ts cou ? n E tr x i c e l s u , d a e n s d g C ol h d i n r a e s M er a v i e n s l a o n f d . the U. S. S. R.t other Eastern European (the figures for the gold reserves of the BIS represent the Bank's net gold assets; see note 1 to table on gold reserves). NOTE.—Gold and short-term dollars include reported and estimated 3 Includes other Latin American republics and the Inter-American official gold reserves, and official and private short-term dollar holdings Development Bank. (principally deposits and U. S. Treasury bills and certificates). U. S. 4 Data for short-term dollars exclude nonnegotiable, non-interest- Govt. bonds and notes are official and private holdings of U. S. Govt. bearing special U. S. notes held by the Inter-American Development securities with an original maturity of more than 1 year. Bank and the International Development Association. See also NOTE to table on gold reserves. 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

282 INT'L CAPITAL TRANSACTIONS OF THE U. S. FEBRUARY 1963 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) Foreign Europe In- End of period G to r t a a n l d 1 t t e io 1 rn , n 2 a a - l Total i O ci f a fi l - Other m F G a e e n d r y . - , U K n i i n t g e - d Other Total Canada A L ic m a a t e in i r- Asia O A th ll er 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—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 r23 083 r4 296 18,787 10,498 8,289 2,534 2,491 5,356 10,381 2,490 2,432 3,092 392 Apr r23,267 r4,395 18,873 10,289 8,584 2,518 2,468 5,378 10,364 2,503 2,543 3,070 392 May r23,404 '4,485 18,919 10,480 8,439 2,509 2,398 5,562 10,469 2,514 2,410 3,090 437 June. . . '23,934 '4,455 19,479 11,232 8,247 2,622 2,262 5,709 10,593 2,897 2,463 3,106 420 June ^ r24,043 '4,455 19,588 11,232 8,356 2,622 2,264 5,709 10,595 2,897 2,464 3,212 421 July r23,611 r4,737 18,874 10,801 8,073 2,543 1,853 5,220 9,616 3,120 2,489 3,200 449 Aug r24,147 r4,895 19,252 11,140 8,112 2,592 1,846 5,289 9,726 3,416 2,418 3,233 458 Scot. 24 515 4,819 19,696 11,696 8,000 2,799 1,802 5,460 10,061 3,480 2 413 3,280 462 Oct 25,203 4,841 20,361 12,134 8,227 2,823 1,853 5,593 10,268 3,894 2,388 3,345 467 Nov» 25,174 4,932 20,242 12,139 8,103 2,770 1,884 5,658 10,312 3,667 2,421 3,360 482 Dec p 24,984 4,934 20,050 12,154 7,896 2,730 1,617 5,843 10,191 3,343 2,621 3,426 469 la. 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 - France Greece Italy N la e e n r t d - h s - N w o a r y - t P u o g r a - l Spain S d w en e- S l z a w e n r i d t - - T k u e r y - Other* 1957 4,310 349 130 112 64 354 154 1.079 203 93 142 24 260 967 18 360 1958 5,081 411 115 169 69 532 126 1,121 339 130 163 36 303 8*52 20 694 1959 5,496 331 138 137 71 655 186 ,370 485 95 138 86 213 969 31 590 I960 3,903 243 142 54 46 519 63 877 328 82 84 149 227 678 18 393 1961—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 KO83 76 1,248 218 93 93 159 392 775 34 359 Feb 5,218 262 328 55 90 1,097 85 1,100 263 103 91 152 394 819 37 345 Mar 5,356 250 319 49 77 1,189 98 1,187 241 112 86 165 403 818 20 342 Apr 5,378 229 293 49 74 1,261 104 1,185 247 141 98 160 391 808 19 321 May 5,562 238 293 60 70 1,445 103 1,147 259 123 108 153 415 830 16 302 5,709 277 258 52 71 1,394 110 1,187 307 101 130 159 425 951 23 263 July 5,220 291 204 44 68 1,046 100 1,095 339 103 132 176 425 913 17 266 5,289 316 184 52 70 1,080 98 1,244 258 117 137 144 463 832 17 279 Sept. 5,460 325 170 47 74 1,162 101 1,292 276 112 141 160 458 837 22 283 Oct 5 593 319 190 55 73 .205 103 ,310 259 109 156 151 458 885 26 292 Nov.* 5,658 305 195 69 72 1,272 113 1,296 243 115 154 165 483 837 25 314 Dec.*> 5,843 329 174 67 73 1,154 119 ,384 248 125 161 176 490 908 25 411 lb. 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 m R D ic e i a o n p n - - . v S a E a d l l o - r G m u a a l t a e- M ic e o x- N S t A a i e u l n t l n r h e d i - s . - , a P p R m u a e b n a - - - , Peru U gu r a u y - V zu e e n l e a - Ot 1 h , e 7 r nam lic of 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 I960 2,422 315 23 194 135 158 77 37 24 44 397 72 123 72 51 398 302 1961—Dec 2,371 235 26 228 105 147 43 23 22 46 494 89 87 84 57 418 268 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 2,464 208 25 225 131 159 37 48 35 52 503 87 87 90 79 364 334 July 2,489 231 23 201 113 149 37 43 36 42 474 96 87 96 73 436 351 2,418 210 21 198 106 143 36 42 33 37 454 93 87 104 87 394 374 Sept 2,413 230 22 213 104 145 36 40 31 34 431 94 85 107 92 379 370 Oct 2 388 187 24 180 112 152 8 15 35 25 33 437 92 84 103 90 417 403 Nov.* 2,421 205 22 176 101 136 15 44 21 33 494 94 87 103 85 406 399 Dec.P 2,621 208 23 204 133 148 15 42 22 41 531 97 98 105 101 405 445 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INT'L CAPITAL TRANSACTIONS OF THE U. S. 283 t. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) lc. Asia and AH Other Asia All other Ko- End of period Total H K o o n n g g India I n n e d s o ia - Iran Israel Japan p r R l e u i e a c b - , - P p i h i p n i - e l- s T w a a i n - T la h n a d i- Other Total t A ra u l s i - a C R g o o e o f n p , . - S A o fr u i t c h a ( U E . g A y . p R t) . Other of the 1957 . .... 1,946 70 82 151 55 52 586 117 175 86 157 417 355 85 39 38 40 153 1958... 2,205 62 77 108 43 56 935 145 176 99 133 371 279 79 30 30 16 125 1959 2,780 60 114 139 47 87 1,285 148 172 94 141 494 373 110 31 49 20 162 1960 3,115 57 54 178 22 75 1,887 152 203 84 186 217 352 88 32 29 22 181 1961—Dec... 2,892 55 78 76 31 63 1,590 199 185 92 264 258 387 98 34 32 15 209 1962—Jan.. 2,926 59 75 86 34 63 1,599 188 202 98 276 246 415 127 31 32 21 204 Feb..... . . 2,995 57 74 100 35 87 1,633 187 171 103 293 255 378 95 28 36 14 205 Mar 3,092 57 74 94 36 71 1,750 183 165 92 306 262 392 101 27 36 16 213 Apr. ..... 3,070 58 70 88 23 78 1,708 181 173 90 314 287 392 96 27 43 17 210 May 3,090 61 54 80 18 76 1,752 174 184 85 323 283 437 97 40 42 25 232 June. 3,106 56 49 82 26 76 1,800 164 179 85 327 261 421 104 37 39 19 222 June5. 3,212 56 49 82 26 76 1,906 164 179 85 327 261 421 104 37 39 19 222 July....... 3.200 60 39 79 32 76 1,903 160 169 86 327 267 449 122 37 36 22 232 Aug....... 3,233 60 39 83 37 89 1,942 155 169 82 327 250 458 126 41 45 13 232 Sept 3,280 57 46 33 28 81 2,040 153 161 80 326 275 462 131 35 47 12 236 Oct 3,345 63 49 39 27 74 2,104 147 163 78 326 275 467 155 31 42 13 226 Nov p 3 360 62 46 26 22 81 2,111 142 171 76 324 300 482 157 38 43 17 227 Dec.?' 3,426 65 41 28 19 81 2,177 136 174 75 333 296 469 147 35 39 14 234 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 1.2 .5 1.2 Ceylon 44.1 34.4 6.9 n.a. Cyprus .3 .5 .7 China Mainland 1 ° . 36.0 35.8 34.8 34.6 Czechoslovakia J °. .7 1.0 .9 Goa 2.5 2.3 1.4 .9 Hungary 1.3 1.0 1.0 Iraq 18.0 63.1 13.8 n.a. Iceland 3.5 2.7 5.1 3.1 Jordan 2.8 2.5 1.8 1.6 Ireland, Republic of 10.0 5.4 2.7 3.2 Kuwait 10.3 9.4 9.6 27.1 Luxembourg. 16.1 7.2 12.6 16.1 Laos 20.9 21.0 5.0 n.a. Monaco 5.9 5.3 4.1 3.4 Lebanon 37.9 38.0 36.2 n.a. Poland 10 4.9 4.0 6.1 7.2 Malaya 1.2 1.4 6.3 4.4 Rumania ^ .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 Pakistan 5.6 23.5 10.6 10.1 U. S. S. R.JO...... 2.2 2.6 12.1 4.8 Ryukyu Islands 15.2 14.8 14.2 n.a. Yugoslavia 10. . . 9.5 6.2 10.0 11.6 Saudi Arabia 60.2 111.6 18.4 24.9 Singapore 2.5 3.5 1.9 3.2 Syria 4.7 5.0 4.2 2.6 Other Latin America; Viet-Nam 48.8 68.3 14.6 7.9 Bahamas ] l 47.2 77.5 Bermuda.... 6.8 14.3 21.7 33.5 All other: Costa Rica.. 24.5 18.9 19.8 13.3 Algeria .5 .6 .4 .5 Ecuador 17.4 21.7 27.3 23.6 Ethiopia and Eritrea 27.8 18.7 9.3 11.1 French West Indies and French Guiana. .5 .5 .4 .5 French Somaliland 1.0 2.0 .9 .8 Haiti 7.7 10.5 10.7 9.9 Ghana .7 .4 .9 1.1 Honduras 6.3 12.8 15.0 14.8 Liberia 13.0 20.3 16.8 21.9 Nicaragua 11.3 12.5 11.9 17.3 Libya 6.4 17.6 5.6 5.4 Paraguay 3.4 6.7 4.6 4.9 Madeira Islands 1.0 .6 .9 .7 The West Indies federation ]} 31.6 32.6 11.3 Morocco (incl. Tangier) 43.5 57.8 64.3 93.0 Mozambique 2.9 2.0 2.2 1.6 Other Asia: New Caledonia 1.4 1.3 1.4 n.a. Aden 1.7 2.2 2.3 n.a. New Zealand 6.9 6.8 35.1 4.0 Afghanistan 4.5 11.0 9.8 3.6 Rhodesia and Nyasaland, Federation of... .2 .3 3.9 n.a. Bahrain .9 .9 .5 .6 Somali Republic 1.3 .8 3.5 1.7 Burma 5.9 4.3 .9 n.a. Sudan 5.2 1.6 1.9 n.a. Cambodia... 24.9 19.7 10.9 15.3 Tunisia .3 8.4 2.8 1.2 1 Excludes nonnegotiable, non-interest-bearing special U. S. notes 8 Decline from September reflects reclassification of deposits for held by the International Development Association and the Inter-American changes in domicile over the past few years from Cuba to other countries. Development Bank. 9 Except where noted, data based on reports by banks in the second (N. Y.) F. R. District and are a partial breakdown of the amounts shown in the "other" categories in Tables la-lc. 1 o Based on reports by banks in all F. R. districts. 11 Before 1960, data for the Bahamas included with The West Indies agencies (including official purchasing missions, trade and ship federation. missions, diplomatic and consular establishments, etc.). 12 Excludes Jamaica. 4 Includes $1,031 million representing increase in U. 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, ass ooif jJuunnce 3J\0>.. see "International Finance" Section 15, Supplement to Banking and Mone- 6 Includes Bank for International Settlements. tary Statistics. 1 Beginning with 1960 includes Inter-Amleerriiccaa]n Development Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 INT'L CAPITAL TRANSACTIONS OF THE U. S. FEBRUARY 1963 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 Total To banks and official institutions To all other foreigners in P f a o y r a e b ig le n and country U.S. U.S. currencies Total Deposits T bi r l e l a s 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 certificates i certificates Total amounts outstanding 1957 15,158 12,847 5,875 5,840 1.132 2,252 1,766 278 209 59 1958 . ... 16,159 13,669 6,772 5,823 1,075 2,430 1,951 306 174 59 1959 19,389 16,913 6,341 9,245 1,328 2,398 1,833 295 270 77 I960 21,272 18,929 7,568 9,960 1,401 2,230 1,849 148 233 113 1961—Dec 22,415 19,909 8,635 9,751 1,524 2,356 1,976 149 230 150 1962 Jan 22,362 19,839 9,132 9,232 1,475 2,361 1,967 151 243 161 Feb 22,667 20,085 9,119 9,500 1,466 2,430 1,973 166 290 152 Mar '23,083 '20,445 8,754 10,218 1,473 2,454 2,004 156 294 184 Apr '23,267 '20,611 9,074 10,011 1,526 2,475 2,038 140 297 181 May '23,404 '20,743 8,774 10,409 1,560 2,494 2,050 100 344 167 June . '23,934 '21,083 8,616 10,973 1,495 2,674 2,207 107 360 177 '24,043 '21,190 8,684 10,973 1,533 2,676 2,209 107 360 177 July '23,611 '20,878 8,365 11,020 1,493 2,553 '2,087 112 '354 180 Aug '24,147 '21,361 8,280 11,645 1,436 2,540 '2,065 109 '367 246 Sept 24,515 21,730 8,197 12,082 1,451 2,531 2,057 100 374 254 Oct 25,203 22,400 8,486 12,463 1,451 2,520 2,050 108 362 282 25,174 22,413 8,430 12,459 1,524 2,557 2,047 130 380 204 Dec.* 24,984 22,272 8,510 12,226 1.536 2,568 2,090 116 361 143 Area and country detail, Oct. 1n, 1962 Europe: Austria . . 319 317 247 65 5 2 2 * Belgium 190 160 90 50 20 30 28 • 2 * 55 48 40 6 2 7 6 * * Finland . • . 73 72 43 21 7 2 2 * * France 1,205 1,154 192 916 46 49 43 4 3 2 Germany, Fed. Rep. of 2,823 2,783 275 2,166 342 37 30 2 5 3 Greece 103 87 66 20 * 17 17 # Italy 1,310 1,157 208 815 134 28 25 2 * 125 259 221 92 119 10 36 25 1 10 2 Norway • ..... 109 79 43 12 24 30 29 1 * Portusal 156 112 108 4 43 43 * * Spain 151 117 102 14 1 34 32 * 2 * Sweden 458 440 95 331 14 18 17 I * Switzerland 885 727 285 274 169 96 63 15 19 62 Turkey 26 24 24 * 2 2 United Kingdom 1,853 1,357 1,037 271 49 439 163 40 236 57 12 11 9 2 1 1 * Other 280 266 80 94 92 11 10 * * 4 Total 10,268 9,133 3,037 5,175 921 880 536 65 278 256 3,894 3,656 1,849 1,764 42 221 173 25 24 17 Latin America: 187 77 60 16 1 110 104 6 24 7 7 * 17 17 * Brazil 180 81 73 * 7 99 98 1 Chile 112 36 36 * 76 75 1 152 73 68 * 5 79 76 3 Cuba . • 15 1 13 13 35 18 17 * 18 17 * El Salvador 25 11 6 5 * 14 14 * Guatemala 33 16 14 2 17 16 * Mexico . . 437 243 186 57 193 189 3 * Neth. Antilles and Suri- 92 39 26 8 5 53 33 2 18 * Panama ReD of 84 11 10 1 73 64 8 Peru 103 40 39 63 62 1 * Uruguay .... 90 38 32 6 52 45 2 5 * Venezuela 417 186 186 230 225 4 2 1 Other 403 276 145 25 106 124 108 7 9 3 Total 2,388 1,152 907 54 192 1,231 1,157 18 56 4 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 CAPITAL TRANSACTIONS OF THE U. S. 285 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (In millions of dollars) Payable in dollars Area and Total To banks and official institutions To all other foreigners in P a f y o a re b i l g e n country U.S. U. S. currencies Total Deposits T bi r l e ls a s a u n r d y Other 2 Total Deposits T bi r l e ls a s a u n r d y Other 2 certificates certificates Area and country detai, Oct. 31 ,1962—Cont. Asia: Hong Kong 63 32 26 6 31 30 * * * India 49 41 23 12 6 6 6 * 1 Indonesia 39 37 16 21 * 2 2 Iran .... 27 20 20 * 7 7 * Israel 74 68 43 7 18 6 5 * 1 Japan 2,104 2,083 1,185 721 177 22 21 1 * Korea Rep of 147 146 143 3 1 1 Philippines . 163 139 129 1 9 24 24 * * * Taiwan 78 71 63 * 8 6 6 Thailand . . 326 323 92 224 6 3 3 Other 275 234 176 24 34 41 40 * 1 * Total .. . . 3,345 3,192 1,917 1,010 266 150 147 3 2 All other: Australia 155 150 47 93 10 4 3 * * 1 Congo Rep of the 31 30 30 * 1 1 South Africa 42 39 34 5 2 2 * * U A.R. (Egypt) 13 12 10 1 1 1 * * * Other 226 194 142 39 12 30 28 1 3 Total 467 425 264 138 23 38 36 1 4 Total foreign countries. 20,361 17,559 7,975 8,141 1,443 2,520 2,050 108 362 282 International 4,841 4,841 512 4 4,322 7 Grand total 25,203 22,400 8,486 4 12,463 1,451 2,520 2,050 108 362 282 1 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 $3,012 million 3 These figures reflect the inclusion of data for banks initially included on Dec. 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 $276 million on Dec. 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 in r- Asia o A th l e l r 1957 2,199 114 140 56 34 98 211 654 154 956 386 50 1958 . 2,542 102 77 36 42 124 315 696 243 1,099 435 69 1959 2,623 57 54 30 38 121 234 534 272 1 175 586 56 I960 3,614 32 82 34 60 245 264 717 421 1,356 1,052 69 1961 Dec r4,746 42 165 35 105 181 239 767 537 rl,519 1,838 85 1962 Jan •-4,623 40 157 36 68 163 214 678 483 1,440 1,930 92 Feb r4,738 44 155 39 71 160 215 683 496 r1,470 r2,000 89 Mar r4,922 52 144 37 76 159 222 690 540 rl 510 r2 087 94 Apr r4,901 47 161 41 68 142 207 667 517 1,535 r2,081 101 May r4,884 55 139 37 68 158 229 686 453 rl 579 r2 062 103 June . r4,821 55 129 36 68 151 254 693 431 1,543 r2,038 117 June i r4,878 55 129 36 68 151 254 693 436 1,546 '2,087 117 July r4,876 51 137 43 67 161 244 703 451 1,540 r2,058 124 Aug r4,832 42 139 39 69 166 255 709 430 1,522 r2,044 127 Sept '4,809 43 135 41 68 163 277 726 443 1,521 1,981 138 Oct . 4,952 47 143 45 75 201 252 763 547 1,524 1,983 135 Nov P 4,864 62 139 43 64 210 221 739 489 1,563 1,940 133 Decp ... 5,101 68 186 53 75 223 273 877 446 1,618 2,013 146 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 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 1NTT CAPITAL TRANSACTIONS OF THE U. S. FEBRUARY 1963 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 ey r- 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 3959.. 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—Dec 239 5 20 11 23 6 54 27 5 11 35 16 9 17 3962 Jan 214 4 18 13 23 5 60 26 2 14 17 7 7 19 Feb. 215 5 19 9 23 4 61 22 3 17 18 7 7 21 Mar 222 4 17 8 24 4 66 20 5 15 18 11 4 23 Apr. 207 5 15 7 24 4 58 21 5 13 17 13 5 21 May 229 6 18 9 26 4 62 23 5 16 19 13 5 23 June. 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 AUK. 255 6 19 11 28 5 55 27 9 18 17 31 6 22 Sept 277 7 15 12 28 5 60 28 11 22 16 41 6 26 Oct 252 7 16 10 31 6 49 27 8 24 15 24 6 28 Nov.** 221 7 21 10 32 7 24 28 9 23 18 12 S 26 Dec *" 273 7 31 14 30 6 27 35 9 21 18 42 6 27 3 b. 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 m R D ic e i a o n p n - - . v S a E a d l l o - r G m u a a l t a e- M ic e o x- N t S n A a il u e a n l n m t r e d h i - s - ., l a P p i R m c u a e n b a o - - - , f Peru U gu r a u y - V zu e e n l e a - Other 1957 .. 956 28 3 100 33 103 113 15 8 8 231 2 18 31 42 170 51 1958 1,099 40 3 148 52 51 166 19 10 12 293 6 23 31 52 142 53 1959 1,175 60 3 117 59 68 115 29 15 10 291 4 18 36 47 247 57 1960. . 1,356 121 4 225 73 80 26 16 22 14 343 8 23 44 57 234 66 1961—Dec rl,519 192 6 186 127 125 19 13 17 20 423 13 32 73 55 '144 74 1962 Jan '1,440 179 5 129 126 134 18 12 14 19 411 9 43 71 61 '136 71 Feb rl,470 184 6 130 125 160 19 11 16 19 396 6 41 70 62 r156 68 Mar rl,510 205 5 137 120 160 18 10 14 18 432 9 41 71 60 r141 69 Apr '1 535 203 5 161 120 156 18 12 15 18 433 9 52 74 61 '132 68 May '1, 579 204 5 173 139 163 17 14 9 17 427 9 59 80 61 '131 71 June '1,543 188 6 200 154 143 17 15 10 13 408 7 41 81 68 '122 71 June 1 '1,546 189 6 200 154 143 17 15 11 13 409 7 41 81 68 '122 71 J A u U ly K ' r 1 l, 5 5 2 4 2 0 1 16 7 4 7 8 6 1 1 9 91 9 1 15 6 8 4 1 1 4 38 7 1 17 8 1 15 5 1 11 2 1 14 4 3 39 9 7 3 1 7 0 3 36 7 8 86 3 6 80 3 ' ' 1 1 2 2 5 2 7 8 4 0 Sept rl,521 183 4 196 161 137 17 14 10 16 369 11 36 86 89 '115 75 Oct 1,524 169 4 188 174 151 17 13 12 17 376 10 32 87 99 94 81 Nov P 1,563 182 5 180 174 138 17 19 12 18 400 7 32 84 107 104 82 Dec..-'1 1,618 181 6 171 188 131 17 24 16 19 418 9 30 85 122 102 98 3c. Asia and All Other Asia All other End of period Total H K o o n n g g India Iran Israel Japan ip P p h i i n l e - s T w a a i n - T la h n a d i- Other Total t A ra u l s ia - C o R o f n e t p g h . o e , A So fr u ic th a U (E . g A y . p R t) . Other 1957 386 7 6 22 24 146 53 6 14 110 50 13 5 12 1 19 1958 435 6 4 27 23 179 67 6 13 111 69 13 4 21 3 29 1959.... 586 10 6 29 14 324 24 9 15 155 56 18 3 12 2 21 1960 1,052 9 9 33 24 806 19 7 24 121 69 28 3 11 3 24 1961—Dec. rl,838 9 8 31 36 '1.476 114 10 34 119 85 29 6 10 13 27 1962—Jan '1,930 10 10 30 36 1,554 133 11 34 114 92 31 6 11 14 31 Feb . '2,000 9 10 28 37 1,641 118 11 33 113 89 31 3 11 13 31 Mar r2,087 10 11 28 41 1,734 114 9 33 108 94 32 3 11 16 32 Apr r2,081 12 13 30 39 1,723 108 9 33 114 101 33 4 11 21 32 May r2,062 11 12 32 43 1,711 107 6 30 110 103 33 4 11 22 33 June. r2,038 11 14 24 39 1,709 91 7 30 113 117 35 4 11 24 44 June i..... '2,087 11 14 24 39 1,757 91 7 30 114 117 35 4 11 24 44 July '2,058 11 14 24 38 1,764 76 6 30 96 124 34 2 12 26 49 Aug '2,044 11 14 25 37 1,766 69 6 33 84 127 40 4 12 23 48 Sept 1,981 13 18 23 36 1.710 69 8 30 74 138 46 4 12 25 51 Oct... 1,983 13 18 21 37 i;709 70 9 32 74 135 45 2 11 23 53 Nov.* 1,940 13 18 23 34 1,660 77 8 33 73 133 44 ~> 12 25 50 Dec.*3...... 2,013 13 20 25 37 1,731 74 9 41 62 146 41 2 10 26 67 Fox notes see preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INT'L CAPITAL TRANSACTIONS OF THE U. S. 287 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 o a f n d p e c ri o o u d n , tr o y r area t L t e o r o t m n al g — i - Loans to— Total C t o io ll n e s c- Deposits Total Banks and out- Other Total with Other i o n f s fi t c it ia u l - Others standing foreigners tions Total amounts outstanding 1957 1,174 2,199 2,052 627 303 423 699 147 132 15 1958 1,362 2,542 2,344 840 428 421 656 198 181 16 1959 1,545 2,623 2,406 848 460 516 582 217 203 15 1960 1,698 3,614 3,135 815 482 605 1,233 480 242 238 1961—Dec... 2,034 '4,746 '4,160 '1,028 618 694 '1,821 586 385 200 1962—Jan.. . 2,060 '4,623 '4,165 1,017 617 708 1,823 458 287 171 Feb.. 2,096 '4,738 '4,296 1,102 623 715 1,855 443 288 154 Mar.. 2,153 '4,922 '4,449 1,228 644 732 1,845 473 307 166 Apr... 2,100 '4,901 '4,443 1,251 679 726 1,788 459 274 184 May. 2,094 '4,884 '4,374 1,318 570 711 1,775 510 293 217 June. 2,189 '4,821 '4,342 1,328 539 698 1,778 479 313 165 June 2 2,189 '4,878 '4,397 1,338 543 703 1,813 481 316 165 July.. 2,209 '4,876 '4,386 1,304 559 701 1,822 490 311 179 Aug.. 2,200 '4,832 '4,369 1,274 604 698 1,793 463 304 159 Sept.. 2,184 '4,809 '4,317 1,277 592 690 1,759 493 312 181 Oct.. . 2,131 4,952 4,327 1,243 631 706 1,747 625 419 207 NOV.P 2,144 4,864 4,295 1,195 643 718 1,738 569 364 205 Dec.*7 2,155 5,101 4,558 1,312 650 740 1,857 542 371 171 Area and country detail, Oct. 31, 1962 Europe: Austria 58 7 7 3 1 Belgium 7 16 12 1 1 Denmark 10 10 9 * 2 6 Finland 9 31 31 3 3 25 France 24 47 40 9 13 11 Germany, Fed. Rep. of... 143 111 24 40 20 27 33 27 Greece 13 6 5 * 5 * * Italy 32 45 43 7 9 17 10 2 2 Netherlands 7 49 40 4 23 12 1 10 10 Norway 187 27 27 5 2 2 17 1 Portugal 27 3 2 3 Spain 10 24 22 4 3 6 2 2 Sweden 42 15 14 1 6 7 2 2 Switzerland 20 75 40 14 8 6 35 22 Turkey 24 24 21 3 United Kingdom 26 201 69 24 12 27 132 113 19 Yugoslavia 2 6 6 3 2 ..... ..... Other 28 28 2 15 Total 563 763 535 129 121 121 165 228 190 38 Canada - 299 547 279 11 152 7 109 268 116 151 Latin America: Argentina 60 169 143 30 20 39 54 25 25 Bolivia * 4 4 He 3 1 Brazil 266 188 147 41 51 22 33 Chile 24 174 174 42 23 25 83 Colombia 67 151 151 26 44 25 56 Cuba 1 17 17 1 16 Dominican Republic 13 13 El Salvador 12 12 1 6 4 Guatemala 9 17 17 2 1 7 8 Mexico 202 376 372 136 81 34 120 Netherlands Antilles and Surinam 10 10 Panama, Rep. of 21 32 32 10 10 6 6 Peru 13 87 87 5 13 28 41 Uruguay 1 99 99 4 7 80 Venezuela 160 94 93 12 14 52 14 Other 72 81 80 17 16 31 17 Total 901 1,524 1,452 334 285 313 519 72 68 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 INTL. CAPITAL TRANSACTIONS OF THE U. S. FEBRUARY 1963 4. CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (In millions of dollars) Short-term Payable in dollars Payable in foreign currencies Long- Area and term— Loans to— country total i Total Collections Deposits Total Banks and out- Other Total with Other official Others standing foreigners institutions Area and country detaiI, Oct. 31, 1962—Cont. Asia: Hong Kong 3 13 13 5 4 4 1 * * India 16 1 • 8 1 * 7 6 * * 8 * 3 1 Iran ... 12 21 21 3 * 16 2 Israel 28 37 37 4 3 4 26 Japan 62 1,709 1,670 634 26 146 864 39 39 * Korea Rep. of. * 5 5 * 4 1 PhiliDoines 61 70 70 48 8 4 9 * * 1 9 9 3 * 4 2 Thailand 3 32 32 7 * 5 20 Other 10 69 68 38 4 22 4 1 i * Total 196 1,983 1,942 748 46 217 931 41 41 * All other: Australia 44 45 31 2 4 15 10 14 1 12 Con co Ret) of the 40 2 2 * 2 South Africa 29 11 9 * 8 * 2 2 * U A R (EevDf) 2 23 23 9 * 2 12 * * Other 58 53 52 10 22 20 1 1 * Total 172 135 118 21 26 47 24 17 4 13 Total foreign countries. 2,131 4,952 4,327 1,243 631 706 1,747 625 419 207 * 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 SECURITTES9 BY TYPE (In millions of dollars) U. S Govt. bonds & notes U. S. corporate securities l 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 countries 1959 1,217 528 689 527 2,593 2,158 435 946 1,458 -512 566 804 -238 I960 1,730 1,603 127 -98 2,419 2,167 252 883 1,445 —562 509 592 -83 1961 1,744 1,231 512 172 3,384 3,161 223 802 1,262 -460 596 966 —370 1962» 2 1,780 2,508 2 -728 2 -286 2,543 2,509 34 1,093 2,009 -916 699 777 -78 1961—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 104 141 '-37 -24 233 211 22 79 114 -35 57 67 — 10 May 142 299 '-156 '-93 286 260 26 125 301 -176 79 79 115 136 '-21 '-18 245 309 -64 56 136 -80 70 108 —38 July 146 119 26 31 168 200 —32 64 89 -24 48 37 11 135 347 -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 77 110 2-34 2-32 155 160 -5 251 401 — 151 58 40 18 NOV.P 2 251 319 2 -67 2 -6 210 198 12 70 201 — 131 69 48 22 Dec.P 2 167 105 2 62 2 62 196 212 -16 60 206 -146 61 61 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, as follows (in dollar equivalents): issued and payable in Italian lire (Oct., 25 million, Nov., 124 million, Dec, 50 million) and in Swiss francs (Oct., 23[million, Nov., 28 million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 INTL. CAPITAL TRANSACTIONS OF THE U. S. 289 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 i Neth- Switz- United Latin Stocks Bonds Belgium France er- er- King- Other Total Canada Amer- All lands land dom Europe Europe ica other i 1959 435 363 73 5 40 31 254 15 35 379 -30 40 46 I960 252 202 50 5 38 1 171 -48 66 234 -45 36 28 1961 223 323 -99 4 21 20 166 -17 38 232 -112 44 58 1962" 34 86 -51 -4 5 6 129 -31 -7 98 -43 -21 1961—Dec 14 15 -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 3 Mar . 34 20 14 -1 2 1 16 — 1 -1 16 17 -1 3 Apr 22 21 * * 18 15 * 34 -6 2 -8 May 26 28 2 1 2 4 21 13 2 43 1 -10 -8 June -64 -65 1 -2 -2 2 -6 —29 -36 -14 -4 -9 July -32 -18 -13 * 1 -1 6 -28 j -23 -13 * 4 Aug 7 7 * * -1 -2 13 — 10 2 1 1 -2 8 Sept -15 -9 -6 * -1 4c -5 -3 -10 -4 1 Oct e -4 -2 * * * -15 9 —2 -7 2 * * Nov v 12 21 -8 -1 -1 8 -1 2 6 * -3 10 Dec.*5 -16 -4 -12 -1 -3 6 -10 -3 -4 -15 2 « 2 1 Includes transactions of international organizations. NOTE.—Statistics include small amounts of State and local govt. securities. 7. NET PURCHASES OR SALES BY FOREIGNERS 8. DEPOSITS, U. S. GOVT. SECURITIES, AND GOLD HELD AT OF LONG-TERM FOREIGN SECURITIES, BY AREA F. R. BANKS FOR FOREIGNERS (In millions of dollars) (In millions of dollars) Period na In ti t o e n r- al f c o T t o r r o e i u t e i n a g s l - n Europe C a a d n a - A L i m a c t a e in r- Asia o A th l e l r End of period Deposits U. S A . G ss o e v ts t . in c E u a s r to m d a y rked securities 1 gold 1959 -157 -593 -50 -443 11 -97 -15 1960 .. — 147 — 498 -117 -196 -107 -41 -36 1958 272 3,695 8,538 1961 -832 -262 -318 -58 -121 -73 1959 345 4,477 9,861 1962^ -165 -829 -161 -353 -89 -175 -50 1960 217 5,726 11,843 1961 279 6,006 11,905 1961—Dec... -7 -116 -85 -28 1 -9 6 1962—Jan.. 229 5,403 11,969 1962—Jan * -20 -9 22 _1 -9 -23 Feb.. 204 5,432 12,006 Feb... -96 6 -22 2 4 -11 33 Mar. 221 5,762 12,148 Mar... -28 -54 -57 8 * -5 1 Apr.. 230 5,551 12,230 Apr... -21 -24 -23 2 1 -3 1 May, 223 5,754 12,308 May.. -11 -165 -22 -91 -3 -26 -23 June, 334 6,228 12,368 June.. * -117 -66 -31 -18 c 3 July. 248 6,026 12,678 July... 4 -10 9 8 * — 1 -26 Aug. 168 6,407 12,689 Aug... 4 -14 -14 3 * -5 1 Sept. 229 6,767 12,687 Sept... 9 -61 8 -14 2 -57 * Oct.. 182 7,137 12,706 Oct.... -4 -128 29 -125 -2 -6 -24 Nov. 202 7,132 12,680 Nov. P. -10 -99 4 -95 * -10 2 Dec. 247 6,990 12,700 Dec. P. -4 -142 2 -41 -73 -36 7 1963—Jan.. 197 7,033 12,789 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

290 ENTTL CAPITAL TRANSACTIONS OF THE U. S. FEBRUARY 1963 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 5th revisecI ser.1 5th revised ser.l Area and country 1961 1962 1961 1962 1962 1962 III IV I II II IllP III IV I II II Europe: 2 2 2 7, 2 3 4 4 3 4 5 4 25 31 27 23 24 24 17 25 26 22 25 27 3 5 5 4 5 5 6 7 7 g 1 1 1 1 1 2 2 2 2 3 4 41 32 33 28 30 34 37 46 46 37 43 49 40 34 30 32 34 38 76 78 101 118 130 106 2 2 2 2 3 2 3 3 4 4 Italy 30 31 24 22 25 27 34 47 51 60 67 62 49 44 43 41 41 27 23 28 35 43 47 37 9 10 8 8 8 9 8 10 10 12 12 13 1 1 1 1 1 1 6 5 7 7 7 6 Spain 5 8 10 8 8 11 9 12 12 14 16 15 Sweden 19 19 21 22 23 25 39 39 25 15 18 25 16 18 28 24 27 34 Turkey 6 110 111 120 117 122 115 188 198 194 165 178 245 2 3 5 6 6 4 2 2 2 2 2 2 Other 2 1 2 2 3 2 5 6 8 5 7 6 Total 371 366 350 341 341 460 516 560 552 609 654 45 49 45 47 58 67 655 607 687 679 723 822 Latin America: Argentina 7 € € 8 9 9 32 36 34 36 32 i i C B h ol i i l v e ia 24 5 25 5 2 4 7 7 4 5 265 1 2 2 5 3 9 1 1 7 ( 1 4 9 2 6 1 0 2 5 1 9 2 6 4 8 90 5 2 2 3 3 3 14 13 13 14 16 17 Cuba 2 2 2 2 2 1 7 5 5 6 7 7 Dominican Republic 1 1 1 1 1 1 3 3 3 4 4 4 El Salvador 1 3 3 3 3 3 3 Guatemala 5 5 5 5 6 6 5 8 4 6 6 49 41 42 41 52 50 Neth Antilles and Surinam 5 8 12 8 8 5 2 2 2 3 3 2 13 12 27 15 15 18 6 9 9 10 11 10 2 6 6 4 5 3 18 It 14 12 14 23 4 1 3 2 2 5 4 5 4 4 5 5 22 20 19 19 21 19 58 46 46 38 44 38 Other 10 12 8 8 9 16 45 24 28 31 39 43 Total 109 105 126 105 112 117 356 295 295 289 337 350 Asia: 3 3 3 2 2 2 3 4 4 3 3 4 6 8 6 4 8 10 13 12 15 24 40 29 Indonesia 7 6 6 2 2 2 3 2 3 2 3 3 Iran 5 5 Israel 3 5 3 1 1 1 S 10 11 10 14 12 71 62 68 57 59 66 63 80 100 96 101 11! * * * * * 1 1 1 2 3 3 3 7 8 9 4 5 5 7 8 5 9 11 9 1 2 1 * * * 2 7 3 4 5 3 3 3 5 3 3 3 3 3 3 4 Other 15 11 11 16 17 15 19 20 22 31 33 30 Total 122 114 115 98 107 111 129 155 176 192 223 2H All other: Australia 12 11 13 13 13 14 22 25 25 23 25 24 * * * • * 2 3 2 3 S U o u A t h R A . ( f E ric g a ypt) 42 13 121 12 1 1 1 4 12 1 1 1 1 0 1 1 0 0 1 8 5 1 9 5 1 17 0 1 12 1 Other 13 18 15 16 18 17 19 18 14 17 22 32 Total . 30 44 42 43 46 45 63 64 64 6( 77 International * * 1 1 1 * * 1 676 680 677 616 665 681 1,664 1,638 1,783 1,778 1,970 2,132 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, 1962 (5th revised series). U. S. banks, and intercompany accounts between U. S. companies and 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

FEBRUARY 1963 U. S. BALANCE OF PAYMENTS 291 U. S. BALANCE OF PAYMENTS (In millions of dollars) 1959 1960 1961 1962 Item in rv in rv in IV Exports of goods and services, total1. 5,950 6,448 6,280 6,882 6,581 7,270 6,820 6,952 6,656 7,638 6,995 7,806 7,126 Merchandise 4,058 4,343 4,615 5,008 4,691 5,145 5,012 4,922 4,673 5,308 5,015 5,497 4,898 Services2 1,892 2,105 1,665 1,874 1,890 2,125 1,808 2,030 1,983 2,330 1,980 2,309 2,228 Imports of goods and services, total.. 6,228 5,944 5,740 6,045 6,018 5,385 5,276 5,595 6,078 5,974 5,882 6,318 6,487 Merchandise 3,847 3,974 3,830 3,858 3,551 3,484 3,400 3,458 3,682 3,974 3,946 4,077 3,973 Services 1,595 1,216 1,139 1,429 1,670 1,179 1,106 1,381 1,697 1,278 1,184 1,495 1,784 Military expenditures 786 754 771 758 797 722 770 756 699 722 746 730 752 Balance on goods and services1 -278 504 540 837 563 1,885 1,544 1,357 578 1,664 1,488 639 1,113 Unilateral transfers (net) -547 -675 -582 -620 -624 -680 -694 -706 -633 -696 -686 -659 Private remittances and pensions.. -214 -206 -201 -202 -207 -232 -216 -218 -213 -231 -748 -221 -218 Government nonmilitary grants... -333 -469 -381 -418 -417 -448 -478 -488 -420 -465 -228 -465 -441 -520 U.S. long- and snort-term capital (not) -607 -595 -883 -1,131 -1,088 -1,885 -1,372 -540 -1,104 -1,863 -1,268 -1,166 -345 Private, total -557 -838 -653 -741 -943 -1,545 -989 -955 -637 -1,372 -866 -720 -355 Direct investment -224 -419 -303 -331 -327 -733 -441 -324 -341 -369 -196 -496 -189 Portfolio and short-term investment -163 -419 -350 -410 -616 -812 -548 -631 -296 -1,003 -670 -224 -166 Government -220 243 -230 -390 -145 -340 -383 415 -467 -491 -402 -446 10 Foreign capital and gold (net) 1,440 620 851 1,014 1,239 1,156 506 185 916 1,460 752 428 809 Increase in foreign short-term assets and Government securities. 1,109 425 586 740 548 254 38 314 626 881 402 550 296 Increase in other foreign assets... 164 123 215 180 54 -19 122 201 20 123 160 85 -37 Gold sales by United States 3 167 72 50 94 637 921 346 -330 270 456 190 -207 550 Errors and omissions.. -8 146 74 -100 -90 -476 16 -296 243 -565 151 -64 -444 Excludes military transfers under grants. 3 Beginning with the first quarter of 1961, net of change in convertible Includes military transactions. currencies held by U.S. monetary authorities. NOTE.—Dept. of Commerce estimates. 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 n s 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 s a e i n r t s c s ' e m D o a d n y 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 * , 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 .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 .13 2.00 1961—Dec 2.82 2.37 5.61 5.35 4.83 4.00 3.58 2.00 3.06 1.32 .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 .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 L59 2.00 Apr 3.08 312 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 3.51 2.63 2.50 1.96 1.50 2.00 Nov... 3.81 3.82 4.03 3.77 3.31 2.50 3.50 2.63 2.56 1.85 1.47 2.00 Dec 3.88 3.75 3.86 3.64 3.30 2.50 2.63 3.50 1.98 1.24 2.CO 1 Based on average yield of weekly tenders during month. NOTE.- For description of rates and back data, see "International - 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

292 MONEY RATES FEBRUARY 1963 CENTRAL BANK R ATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Jan. 31, 1962 Rate Country 1962 1963 Ja a n s . o 3 f 1, Per Month 1963 cent effective Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Argentina 6.0 Dec. 1957 6.0 5.0 Mar. 1960 5.0 Belgium . ... ..... 4.25 Jan. 1962 4 6 3 75 3 5 3.5 Brazil 10.0 Apr. 1958 10.0 3.0 Nov. 1957 4.0 4.0 3.35 Jan. 1962 3.42 3.37 3.32 3.77 16.0 5.5 5.0 4.0 4.0 Ceylon . • • 4.0 Aug. 1960 4.0 Chile 2 15.27 Jan. 1962 14 62 14.62 5.0 Aug. 1959 5.0 Costa Rica 3.0 Apr. 1939 3.0 Cuba 6.0 Jan. 1960 6.0 Denmark • 6.5 May 1961 6.5 5.0 Nov. 1956 5.0 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 3.0 May 1961 3.0 Greece •• ••• 6.0 Nov. 1960 5.5 5.5 3.0 Jan. 1962 3.0 9.0 Dec. 1960 9.0 India 4 4.0 May 1957 4.5 4.5 Indonesia • 3.0 Apr. 1946 3.0 6 0 Nov. 1960 6.0 5.56 Dec. 1961 5.44 4.70 4.31 4.09 4.0 3.94 4.06 3.86 3.86 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 4 5 June 1942 4.5 3 5 Nov. 1959 4.6 3.5 3.5 7.0 Mar. 1961 7.0 Nicaracua 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 Republic 5 6.0 Jan. 1962 6.0 2.0 Jan. 1944 2.0 South Africa 4.5 Dec. 1961 4 0 3 5 3.5 4.0 June 1961 4.0 Sweden .. • ... 5.0 Jan. 1960 4 5 4 0 3.5 3.5 Switzerland 2 0 Feb. 1959 2.0 Thailand 7.0 Feb. 1945 7.0 Turkey 7.5 Mav 1961 7.5 United Kingdom 6.0 Nov. 1961 65 0 4 5 4.0 4.0 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some of continue to be .25 of 1 per cent above latest weekly Treasury bill tender these countries follow: average rate but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de- 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction; the average rate charged by banks in the previous half year. Old redis- Brazil—8 per cent for secured paper and 4 per cent for certain agricultural counts remain subject to old rates provided their amount is reduced by paper; 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 paper of up to 150 days, 3 per cent for economic development paper occur. of up to 5 years, and 2 per cent for specific small business, cooperative 3 Rate shown is for advances only. and employee paper; 4 Rate applies to advances against commercial paper as well as against Costa Rica—5 per cent for paper related to commercial transactions govt. securities and other eligible paper. (rate shown is for agricultural and industrial paper); s Beginning with June 1, 1962, the rediscount rate for commercial Cuba—5.5 per cent "or sugar loans and 5 per cent for loans secured by bank loans financing the purchase of surplus agricultural commodities national public securities; under U. S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, Ecuador—6 per cent for bank acceptances for commerical purposes; 1962, the rediscount rate for commercial bank financing of 9 categories Indonesia—various rates depending on type of paper, collateral, comof development loans was reduced from 6 to 3 per cent. modity involved, etc.; 6 On Mar. 8, 1962 the discount rate had been reduced to 5.5 per cent. Japan—penalty rates (exceeding the basic rate shown) for borrowings from the Central bank in excess of an individual bank's quota; NOTE.—Rates shown are mainly those at which the central bank either Peru—8 per cent for agricultural, industrial and mining paper; and discounts or makes advances against eligible commercial paper and/or Venezuela—4 per cent for rediscounts of certain agricultural paper and govt. securities for commercial banks or brokers. For countries with for advances against government bonds or gold and 5 per cent on admore than one rate applicable to such discounts or advances, the rate vances against securities of Venezuelan companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEBRUARY 1963 FOREIGN EXCHANGE RATES 293 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 (f e r 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 n c c e ) Official Free 1957 5.556 2.506 222.57 3.8539 1.9906 104.291 20.913 14.482 .3995 .2376 1958 5.556 2 207 223.88 3.8536 2.0044 103.025 21.049 14 482 3118 .2374 1959. .. 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .3115 .2038 I960 I 2026 223.71 3.8461 2.0053 103.122 21.048 14 505 3112 20 389 1961 [.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .3110 20.384 1962 l .9080 223.73 3.8685 2.0093 2 93.561 21.034 14.490 .3107 20.405 1962—Jan . . 1.2056 223.98 3.8647 2.0086 95.678 21.051 14.527 .3108 20.403 Feb [ 2054 224.27 3.8643 2.0086 95.335 21.039 14.522 3107 20.402 Mar 3 .2081 224.32 3.8659 2.0086 95.277 21.058 14.534 .3107 20.405 Apr 4 n444 224.22 3.8690 2.0080 95.232 21.059 14.510 .3107 20.405 Mav .9600 224.07 3.8698 2.0089 2 92.394 21.057 14.496 .3107 20.405 June .8601 223.77 3.8700 2.0098 91.911 21.039 14.511 .3107 20.405 July .8130 223.63 3.8700 2.0103 92.654 21.036 14.483 3106 20.405 Aug .8121 223.41 3.8700 2.0105 92.777 21.021 14.458 .3106 20.405 Sept .7874 223.18 3.8700 2.0093 92.848 21.008 14.443 .3106 20.405 Oct .7392 223 21 3.8701 2.0094 92.914 21.009 14.442 .3106 20.405 Nov .6830 223.26 3.8680 2.0098 92.849 21.011 14.455 .3106 20.405 Dec .7057 223.37 3.8694 2.0098 92.924 21.013 14.498 .3106 20.404 1963—Jan .7466 223.49 3.8694 2.0086 92.823 21.021 14.487 531.056 6 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 si l 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 - s r) Z (p e N o a u e la w n n d d ) 1957 23 798 20.910 279.32 .16003 .27791 32.527 8.0056 26 170 276.56 1958 23.848 21.048 280.98 .16006 .27791 32.767 8.0056 26.418 278.19 1959.. 23 926 21.031 280.88 .16099 .27781 32 857 8 0056 26 492 278.10 1960 23.976 20.968 280.76 .16104 .27785 32.817 8.0056 26.513 277.98 1961 . . 24 903 20.980 280.22 .16099 .27690 32 659 8 0056 27 555 277.45 1962 25 013 21.026 280.78 .16107 .27712 32.757 8.0056 27 755 278.00 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. %3 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 Dec 25 031 20 989 280.33 .16105 .27897 32 790 8.0056 27 779 277.56 1963—Jari 24.966 20.996 280.48 .16104 .27894 32.817 8.0056 27.772 277.71 Period N (k o r r o w n a e y ) R P ( e p p h p e i i u n l s i b e o p l ) - ic (e P s o g c r u a t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e f S r 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 ) 1957 14 008 49 693 3.4900 278.28 19 331 23 330 279 32 1958 14 008 49 695 3 4900 279 93 2 3810 19 328 23 328 280 98 1959 14.028 49.721 3.4967 279.83 2 0579 19 324 23 142 280 88 1960 14.018 49.770 3.4937 279.71 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 1962 14 010 3.4986 139.87 1.6654 19.397 23.124 280.78 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 July 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 . 13 989 3.4900 139.57 1.6662 19.363 23.170 280.19 Dec 14.000 3.4902 139.64 1.6664 19.278 23.167 280.33 1963—Jan 14 000 3.4900 139.72 1.6665 19.313 23.120 280.48 1 Quotations not available Mar. 20-Apr. 3, 1962. 6 Effective Jan. 1, 1963, the franc again became the French monetary 2 Effective May 2, 1962, the par value of the Canadian dollar was set at unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. 92.5 U. S. cents. 3 Based on quotations through Mar. 19, 1962. NOTE.—Averages of certified noon buying rates in New York for 4 Based on quotations beginning with Apr. 4, 1962. cable transfers. For description of rates and back data, see "International 5 A new markka, equal to 100 old markkaa, was introduced on Jan. 1, Finance," Section 15 of Supplement to Banking and Monetary Statistics. 1963. 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 BANK OPERATIONS—Cont. MERRITT SHERMAN, Secretary M. B. DANIELS, Assistant Director KENNETH A. KENYON, Assistant Secretary JOHN N. KILEY, JR., Assistant Director ELIZABETH L. CARMICHAEL, Assistant Secretary DIVISION OF EXAMINATIONS LEGAL DIVISION FREDERIC SOLOMON, Director HOWARD H. HACKLEY, General Counsel ROBERT C. MASTERS, Associate Director DAVID B. HEXTER, Assistant General GLENN M. GOODMAN, Assistant Director Counsel HENRY BENNER, Assistant Director JAMES C. SMITH, Assistant Director THOMAS J. O'CONNELL, Assistant General BRENTON C. LEAVITT, Assistant Director Counsel ANDREW N. THOMPSON, Assistant Director JEROME W. SHAY, Assistant General Counsel LLOYD M. SCHAEFFER, Chief Federal Reserve WILSON L. HOOFF, Assistant General Examiner Counsel DIVISION OF RESEARCH AND STATISTICS DIVISION OF PERSONNEL ADMINISTRATION GUY E. NOYES, Director EDWIN J. JOHNSON, Director ALBERT R. KOCH, Associate Director H. FRANKLIN SPRECHER, JR., Assistant Director DANIEL H. BRILL, Adviser FRANK R. GARFIELD, Adviser DIVISION OF ADMINISTRATIVE SERVICES ROBERT C. HOLLAND, Adviser KENNETH B. WILLIAMS, Adviser JOSEPH E. KELLEHER, Director LEWIS N. DEMBITZ, Associate Adviser HARRY E. KERN, Assistant Director ROBERT SOLOMON, Associate Adviser DIVISION OF INTERNATIONAL FINANCE OFFICE OF THE CONTROLLER RALPH A. YOUNG, Director J. J. CONNELL, Controller J. HERBERT FURTH, Adviser SAMPSON H. BASS, Assistant Controller A. B. HERSEY, Adviser ROBERT L. SAMMONS, Adviser OFFICE OF DEFENSE PLANNING SAMUEL I. KATZ, Associate Adviser RALPH C. WOOD, Associate Adviser INNIS D. HARRIS, Coordinator DIVISION OF BANK OPERATIONS DIVISION OF DATA PROCESSING JOHN R. FARRELL, Director M. H. SCHWARTZ, Director GERALD M. CONKLTNG, Assistant Director LEE W. LANGHAM, Assistant Director 294 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANKS AND BRANCHES 295 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 LAWRENCE H. MARTIN, BOSTON KENNETH V. ZWIENER, CHICAGO GEORGE A. MURPHY, NEW YORK, President SIDNEY MAESTRE, ST. LOUIS HOWARD C. PETERSEN, PHILADELPHIA JOHN A. MOORHEAD, MINNEAPOLIS L. A. STONER, CLEVELAND M. L. BREIDENTHAL, KANSAS CITY ROBERT B. HOBBS, RICHMOND, Vice President JAMES W. ASTON, DALLAS J. FlNLEY McRAE, ATLANTA ELLIOTT MCALLISTER, SAN FRANCISCO HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Federal Reserve Banks and Branches Chairman and Deputy Chairman of Boards of Directors FEDERAL RESERVE CHAIRMAN AND DEPUTY CHAIRMAN BANK OF— FEDERAL RESERVE AGENT BOSTON ERWIN D. CANHAM WILLIAM WEBSTER NEW YORK PHILIP D. REED JAMES DECAMP WISE PHILADELPHIA WALTER E. HOADLEY DAVID C. BEVAN CLEVELAND JOSEPH B. HALL LOGAN T. JOHNSTON RICHMOND EDWIN HYDE WILLIAM H. GRIER ATLANTA JACK TARVER HENRY G. CHALKLEY, JR. CHICAGO ROBERT P. BRIGGS JAMES H. HILTON ST. LOUIS ETHAN A. H. SHEPLEY J. H. LONGWELL MINNEAPOLIS ATHERTON BEAN JUDSON BEMIS KANSAS CITY HOMER A. SCOTT DOLPH SIMONS DALLAS ROBERT O. ANDERSON MORGAN J. DAVIS SAN FRANCISCO F. B. WHITMAN JOHN D. FREDERICKS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 Presidents and Vice Presidents Federal Vice Presidents President Reserve (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 Luther M. Hoyle, Jr. 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 H. L. Sanford William F. Treiber Charles A. Coombs Herbert H. Kimball Robert W. Stone Howard D. Crosse Robert G. Rouse Todd G. Tiebout Marcus A. Harris Walter H. Rozell, Jr. Thomas O. Waage Philadelphia, Karl R. Bopp Hugh Barrie Norman G. Dash Harry W. Roeder Robeit N. Hilkert John R. Bunting David P. Eastburn James V. Vcrgari 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 Fred S. Kelly 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 Wilbur T. Billington C. A. Cravens L. F. Mills Henry O. Koppang John T. Boysen Ray J. Doll Clarence W. Tow D. R. Cawthorne J. R. Euans J. T. White F. H. Larson 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 A. B. Merritt H. E. Hemmings Paul W. Cavan David L. Grove D. M. Davenport1 1 Assigned to Los Angeles Branch. Vice Presidents in Charge of Branches of Federal Reserve Banks Federal Reserve Federal Reserve Branch Vice Presidents Branch Vice Presidents Bank of Bank of 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. Bonne 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, the material listed may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington 25, D. C. Where a charge is indicated, remittance should accompany order and be made payable to the order of the Board of Governors of the Federal Reserve System, A more complete list, including periodic releases and additional reprints, appeared on pages 1719-1722 of the December 1962 BULLETIN. (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, Cuba, Dominican Republic, Ecuador, Guate- DEBITS AND CLEARINGS STATISTICS AND THEIR 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 quantities of 10 or more copies sent to one address in ALL-BANK STATISTICS, 1896-1955. Pt. I, U. S. 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. FEDERAL RESERVE CHART BOOK ON FINANCIAL THE FEDERAL RESERVE ACT, as amended through AND BUSINESS STATISTICS. Monthly. Annual October 1, 1961, with an Appendix containing subscription includes one issue of Historical provisions of certain other statutes affecting the Chart Book. Subscription prices: (1) $6.00 per Reserve System. 386 pp. $1.25. annum or $.60 per copy in the United States and the countries listed above. (2) Elsewhere, FLOW OF FUNDS IN THE UNITED STATES, 1939-53. 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 shipment, $.50 each. SUPPLEMENT TO BANKING AND MONETARY STA- TISTICS. Sec. 1 Banks and the Monetary System. HISTORICAL CHART BOOK. Issued annually in Sep- 1962. 35 pp. $.35. Sec. 10. Member Bank Retember. Annual subscription to monthly chart serves and Related Items 1962. 64 pp. $.50. book includes one issue of the Historical. Prices: Sec. 14. Gold. 24 pp. $.35. Sec. 15. Interna- (1) $.60 each in the United States and the coun- tional Finance. 1962. 92 pp. $.65. Sec. 11 Curtries listed above. (2) Elsewhere, $.70 each. (3) rency. 1963. 11 pp. $.35. In quantities of 10 or more for single shipment, $.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. TREASURY-FEDERAL RESERVE STUDY OF THE GOV- ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 RULES OF ORGANIZATION AND PROCEDURE—BOARD pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. OF GOVERNORS OF THE FEDERAL RESERVE SYS- Individual books $1.00 each; set of 3 books TEM. 1962. 40 pp. $2.50. INDUSTRIAL PRODUCTION—1959 REVISION. 1960. PUBLISHED INTERPRETATIONS of the Board, as of 229 pp. $.50. December 31, 1961. $2.50. 297 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 REPRINTS GROWTH IN INSTITUTIONAL SAVINGS. May 1962. (From Federal Reserve BULLETIN unless preceded 9 pp. by an asterisk) SURVEY OF COMMON TRUST FUNDS, 1961. May 1962. 7 pp. (Also, similar reprint from May THE MONETARY SYSTEM OF THE UNITED STATES. Feb. 1953. 16 pp. 1961 BULL.) INFLUENCE OF CREDIT AND MONETARY MEASURES MONETARY POLICY, BANK CREDIT, AND MONEY. July 1962. 8 pp. ON ECONOMIC STABILITY. Mar. 1953. 16 pp. FEDERAL FINANCIAL MEASURES FOR ECONOMIC SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. STABILITY. May 1953. 7 pp. July 1962. 6 pp. REVISION OF CONSUMER CREDIT STATISTICS. Oct. REVISION OF MONTHLY DEPARTMENT STORE IN- 1956. 24 pp. (Also, similar reprint from Apr. DEXES. July 1962. 6 pp. 1953 BULL.) ECONOMIC AND CREDIT CONDITIONS. Aug. 1962. OPEN MARKET OPERATIONS IN LONG-TERM SE- 5 pp. CURITIES. Nov. 1958. 15 pp. REVISION OF MONEY SUPPLY SERIES. Aug. 1962. •PART I, ALL-BANK STATISTICS, 1896-1955. Re- 11 pp. print of the U. S. Summary containing a description of revised statistics for all banks in REVISION OF WEEKLY DEPARTMENT STORE SALES the United States, by class of bank, together INDEX. Aug. 1962. 3 pp. with revised statistics. Apr. 1959. 94 pp. THE BALANCE SHEET OF AGRICULTURE, 1962. THE GOVERMENT SECURITIES MARKET. Aug. 1959. Aug. 1962. 10 pp. 22 pp. INTEREST RATES IN THE CURRENT CYCLE. Sept. CONSUMER BUYING INTENTIONS AND QUARTERLY 1962. 9 pp. SURVEY OF CONSUMER BUYING INTENTIONS. INTEREST RATES AND MONETARY POLICY. Sept. Combined reprint. Sept. 1960. 31 pp. 1962. 28 pp. IMPLEMENTATION OF THE 1959 ACT ON RESERVE TREASURY AND FEDERAL RESERVE FOREIGN EX- REQUIREMENTS. Dec. 1960. 6 pp. CHANGE OPERATIONS. Sept. 1962. 16 pp. SMALL BUSINESS FINANCING: CORPORATE MANU- U. S. BALANCE OF PAYMENTS IN 1962. Oct. 1962. FACTURERS. Jan. 1961. 15 pp. 8 pp. STATISTICS ON THE GOVERNMENT SECURITIES MARKET. Apr. 1961. 8 pp. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. 1962. 10 pp. CLASSIFICATION SYSTEM FOR SAVINGS AND OTHER TIME DEPOSITS. May 1961. 2 pp. (Also, similar FLOW OF FUNDS SEASONALLY ADJUSTED. NOV. reprint from July 1960 BULL.) 1962. 15 pp. SURVEY OF FINANCE COMPANIES, MID-1960. Oct. AUTOMATION AT COMMERCIAL BANKS. NOV. 1962. 1961. 21 pp. (Also, similar reprint from Apr. 13 pp. 1957 BULL.) QUARTERLY SURVEY OF CONSUMER BUYING IN- LIQUIDITY AND PUBLIC POLICY. Oct. 1961. 17 pp. TENTIONS. Nov. 1962. 6 pp. (Also, similar re- REVISION OF CONSUMER CREDIT STATISTICS. Dec. prints from BULLS, for Dec. 1960, Mar., May, 1961. 15 pp. Aug., and Nov. 1961, Mar., May, and Aug. 1962.) REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. 1961. 3 pp. A SECTORAL ANALYSIS OF VELOCITY. Dec. 1962. THE MEANS OF ECONOMIC PROGRESS. Feb. 1962. 14 pp. 9 pp. A NEW LOOK AT THE FARM DEBT PICTURE. Dec. INTEREST RATES ON TIME DEPOSITS, Mid-January 1962. 18 pp. 1962. Feb. 1962. 5 pp. MONEY AND BANK CREDIT IN 1962. Feb. 1962. CAPITAL FLOWS AND INTERNATIONAL PAYMENTS. Mar. 1962. 8 pp. 8 pp. MONETARY FUND RESOURCES AND THE INTER- FARM DEBT AS RELATED TO VALUE OF SALES. NATIONAL PAYMENTS SYSTEM. Mar. 1962. 4 pp. Feb. 1962. 9 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Statistical Tables Acceptances, bankers', 228, 230, 274 Department stores: Agricultural loans of commercial Merchandising data, 257 banks, 222, 224, 268 Sales and stocks, 252, 256 Assets and liabilities (See also Foreign liabilities and Deposits (See also specific types of deposits): claims): Adjusted, and currency, 217 Banks and the monetary system, consolidated, 217 Banks, by classes, 211, 218, 223, 226, 230, 270 Corporate, current, 240 Federal Reserve Banks, 212, 289 Domestic banks, by classes, 218, 222, 224, Postal savings, 211, 217 230, 268 Discount rates, 210, 292 Discounts and advances by Federal Reserve Federal Reserve Banks, 212 Banks, 206, 212, 214 Automobiles: Dividends, corporate, 239, 240 Consumer instalment credit, 244, 245, 246 Dollar assets, foreign, 281, 289 Production index, 248, 249 Bankers' balances, 223, 225, 269 Earnings and expenses, Federal Reserve Banks, 264 (See also Foreign liabilities and claims) Earnings and hours, manufacturing indus- Banking and monetary statistics for 1962, 268 tries, 252, 255 Banking offices: Employment, 252, 254, 255 Changes in number, 266 On and not on, Par List, number 267 Farm mortgage loans, 241, 242 Banks and the monetary system, consolidated Federal finance: statement, 217 Cash transactions, 232 Bonds (See also U. S. Govt. securities): Receipts and expenditures, 233 New issues, 237, 238, 240 Treasurer's balance, 232 Prices and yields, 228, 229, 275 Federal home loan banks, loans, etc., 243 Brokers and dealers in securities, bank loans to, 222, Federal Housing Administration, loans, etc., 241, 224, 268 242, 243 Business expenditures on new plant and equip- Federal National Mortgage Association, loans, etc. 243 ment, 240 Federal Reserve Banks: Business indexes, 252 Condition statement, 212 Business loans (See Commercial and industrial loans) Earnings and expenses, 264 U. S. Govt. securities held by, 206, 212, 214. Capital accounts: 234, 235 Banks, by classes, 218, 223, 226, 270 Federal Reserve credit, 206, 212, 214 Federal Reserve Banks, 212 Federal Reserve notes, 212, 215 Carloadings, 252 Finance company paper, 228, 230, 274 Central banks, foreign, 278, 292 Financial institutions, loans to, 222, 224, 268 Coins, circulation of, 215 Float, 206 Commercial banks: Flow of funds, saving and financial flows, 262 Assets and liabilities, 218, 221, 222 Foreign central banks, 278, 292 Consumer loans held, by type, 245 Foreign currencies, convertible, holdings by U. S. Number, by classes, 218 monetary authorities, 212, 214, 280 Real estate mortgages held, by type, 241 Foreign deposits in U. S. banks, 206, 212. 217, 223. Commercial and industrial loans: 226, 270, 289 Commercial banks, 222 Foreign exchange rates, 293 Weekly reporting member banks, 224, 227, 271 Foreign liabilities and claims: Commercial paper, 228, 230, 274 Banks, 282, 284, 287, 289 Condition statements (See Assets and liabilities) Nonfinancial concerns, 290 Construction, 252, 253 Foreign trade, 257 Consumer credit: Instalment credit, 244, 245, 246, 247 Gold: Major parts, 244, 246 Earmarked, 280 Noninstalment credit, by holder, 245 Net purchases by U. S., 280 Consumer price indexes, 252, 258 Production, 279 Consumption expenditures, 260, 261 Reserves of central banks and governments, 278 Corporate sales, profits, taxes, and dividends 239, 240 Reserves of foreign countries and international Corporate security issues, 238, 240 institutions, 281 Corporate security prices and yields, 228, 229, 275 Stock, 206, 217, 280 Cost of living (See Consumer price indexes) Gold certificates, 212, 215 Currency in circulation, 206, 215, 216 Govt. debt (See U. S. Govt. securities) Customer credit, stock market, 229 Gross national product, 260, 261 Debits to deposit accounts, 214 Demand deposits: Hours and earnings, manufacturing industries, 252, 255 Adjusted, banks and the monetary system, 217 Housing starts, 253 Adjusted, commercial banks, 214, 216, 223 Banks, by classes, 211, 218, 226, 270 Industrial production index, 248, 252 Turnover of, 214 Instalment loans, 244, 245, 246, 247 Type of holder, at commercial banks, 223 Insurance companies, 231, 234, 235, 242 299 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN • FEBRUARY 1963 Insured commercial banks, 220, 222, 266 Reserves: Interbank deposits, 214, 218, 223 Commercial banks, 223 Interest rates: Federal Reserve Banks, 212 Bond yields, 228, 275 Foreign central banks and governments, 278 Business loans by banks, 227 Foreign countries and international Federal Reserve Bank discount rates, 210 institutions, 281 Foreign countries, 291, 292 Member banks, 206, 208, 211, 223, 225, 269 Open market, 228, 274, 291 Residential mortgage loans, 241, 242, 243 Stock yields, 228, 275 Time deposits, maximum rates, 211 Sales finance companies, consumer loans of, 244, International capital transactions of the U. S., 282 245, 247 International institutions, 278, 280, 281 Saving: Inventories, 260 Flow-of-funds series, 262 Investments {See also specific types of investments): National income series, 261 Banks, by classes, 218, 222, 225, 230, 269 Savings deposits {See Time deposits) Commercial banks, 221 Savings institutions, principal assets, 230, 231 Federal Reserve Banks, 212, 214 Savings and loan associations, 231, 235, 242 Life insurance companies, 231 Securities, international transactions, 288, 289 Savings and loan associations, 231 Security issues, 237, 238, 240 Silver coin and silver certificates, 215 Labor force, 254 State member banks, 220, 266 Loans {See also specific types of loans): State and municipal securities: Banks, by classes, 218, 222, 224, 230, 268 New issues, 237, 238 Commercial banks, 221 Prices and yields, 228, 229, 275 Federal Reserve Banks, 206, 212, 214 States and political subdivisions: Insurance companies, 231, 242 Deposits of, 223, 226, 270 Savings and loan associations, 231, 242 Holdings of U. S. Goyt. securities, 234 Loans insured or guaranteed, 241, 242, 243 Ownership of obligations of, 222, 230, 231 Stock market credit, 229 Manufacturers, production index, 249, 252 Stocks: Margin requirements, 211 New issues, 238 Member banks: Prices and yields, 228, 229, 275 Assets and liabilities, by classes, 218, 222 Banking offices, changes in number, 266 Tax rceipts, Federal, 233 Borrowings at Federal Reserve Banks, 208, 212, Time deposits, 211, 216, 217, 218, 223, 226, 270 226, 270 Treasurer's account balance, 232 Deposits, by classes, 211 Treasury cash, 206, 215, 217 Number, by classes, 219 Treasury currency, 206, 215, 217 Reserve requirements, by classes, 211 Treasury deposits, 206, 212, 232 Reserves and related items, 206 Weekly reporting series, 224, 268 Unemployment, 254 Mining, production index, 249, 252 U. S. balance of payments, 291 Money rates {See Interest rates) U. S. Govt. balances: Money supply and related data, 216 Commercial bank holdings, by classes, 223, 226 Mortgages {See Real estate loans) Consolidated monetary statement, 217 Mutual savings banks, 217, 218, 220, 230, 234, 235, Treaury deposits at Federal Reserve Banks, 206, 241, 266 212, 232 National banks, 220, 266 U. S. Govt. securities: National income, 260, 261 Bank holdings, 217, 218, 222, 225, 230, 234, National security expenditures, 233, 260 235, 269 Nonmember banks, 212, 220, 222, 223, 266 Dealer transactions, positions, and financing, 236 Federal Reserve Bank holdings, 206, 212, 214, Par List, banking offices on, and not on, number, 267 234, 235 Payrolls, manufacturing, index, 252 Foreign and international holdings, 212, 281 Personal income, 261 International transactions, 288 New issues, gross proceeds, 238 Postal Savings System, 211, 217 Outstanding, by type of security, 234, 235, 237 Prices: Ownership of, 234, 235 Consumer, 252, 258 Prices and yields, 228, 229, 274, 275 Security, 229 United States notes, outstanding and in circulation, 215 Wholesale commodity, 252, 258 Utilities, production index, 249, 252 Production, 248, 252 Profits, corporate, 239, 240 Vault cash, 206, 211,223 Real estate loans: Banks, by classes, 222, 224, 230, 241, 268 Veterans Administration, loans, etc., 241, 242, 243 Type of mortgage holder, 241, 242, 243 Type of property mortgaged, 241, 242, 243 Weekly reporting member banks, 224, 268 Reserve requirements, member banks, 211 Yields {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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