Federal Reserve Bulletin, 1963-07

FEDERAL RESERVE B U LLETIN July 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 Monetary Developments, First Half '63 883 Measures of Member Bank Reserves 890 Bank Loans Secured by Stocks and Bonds 904 A Bank Examiner Looks at Agricultural Lending 922 Statement on Proposed Changes in Securities Exchange Act 929 Law Department 932 Announcements 946 National Summary of Business Conditions 947 Guide to Tabular Presentation 950 Financial and Business Statistics, U. S. (Contents on p. 951) 952 International Financial Statistics (Contents on p. 1013) 1014 Board of Governors and Staff 1032 Open Market Committee and Staff; Federal Advisory Council 1033 Federal Reserve Banks and Branches 1034 Federal Reserve Board Publications 1035 Index to Statistical Tables 1037 Map of Federal Reserve System Insideback cover Volume 49 * Number 7 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

As THE FIRST HALF of 1963 unfolded, The move to somewhat less ease was indomestic economic prospects brightened. tended to help restrain the outflow of capital Yet the deficit in the U.S. balance of pay- from the United States and maintain interments persisted. These economic develop- national confidence in the dollar. At the ments, taken together, suggested a need for same time, it was expected that sufficient a modification of current monetary policy. credit and money would be available to fi- Hence, in the late spring the Federal Re- nance continued domestic economic expanserve moderated slightly further the prevail- sion. ing degree of credit ease. And on July 16 Bank credit remained in good supply the Board of Governors approved increases throughout the first half of 1963. It rose at in the discount rates at 7 Federal Reserve an annual rate of 10 per cent, a little more Banks from 3 to 3V^ per cent and raised to than the unusually large increase last year. 4 per cent the maximum rates of interest As in 1962, this year's credit expansion was that member banks are permitted to pay on enhanced by a continuing large flow of fitime deposits and certificates with maturi- nancial savings to banks in response to the ties from 90 days to 1 year. The Board's rise in interest rates paid on time deposits statement announcing these actions, both of early in 1962. which were effective as of July 17, appears Time and savings deposits at commercial on page 946 of this BULLETIN. banks continued to expand rapidly in the RESERVES AND CREDIT coBtiaa* to Mo««t; Treasury bill rat« «p slightly TOTAL RCSIRV ; ADJUSTED '..••; »ANK LOANS •" • AND INVESTMENTS TBIASUKY till (AT! 1957 1959 1961 1963 1957 1959 1961 1963 1957 1959 1961 1963 NOTE.—Total reserves adjusted are seasonally adjusted figures (except for June 30, Dec. 31, call dates). Interbank monthly averages of daily figures. Total reserves are adjusted loans excluded. Treasury bill rates are monthly averages of to exclude the effects of changes in reserve requirements. Coml. market yields on 3-month bills. Latest figures, June. bank credit data are seasonally adjusted last-Wed, of month 883 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

884 FEDERAL RESERVE BULLETIN • JULY 1963 first half of 1963. But the pace was some- Banks' holdings of real estate loans inwhat less rapid than it had been a year creased by about $2 billion in the first half earlier. U.S. Government demand deposits of 1963, nearly the same rate of expansion at commercial banks rose much more than as in 1962. Over the past year and a half usual. Meanwhile, expansion in the money banks have taken more than 15 per cent of supply was moderate, as it generally has the record net increase in all mortgages outbeen in recent years. standing, compared with an average share Although the flow of reserves to banks of less than 10 per cent during the preceding continued to be large enough to support 5 years. This heavy investment by banks has rapid expansion of credit, the margin of been an important element in the continued free reserves available to member banks was ease in mortgage markets. reduced moderately after April, as banks During the first half of this year banks' economized on excess reserves and found it consumer loans outstanding rose by an estinecessary to obtain somewhat more of their mated $1.5 billion. This was about the same reserves by borrowing at Federal Reserve pace as in the first half of 1962, but a more Banks. rapid one than in the second half when bank Accompanying this moderate shift in re- lending to consumers slackened after ecoserve availability, rates on 3-month Treasury nomic activity slowed down in the summer. bills rose to the 3 per cent level in June. Since early 1962 banks have acquired a Earlier in the year they had fluctuated nar- half of the total increase in consumer loans rowly around 2.90 per cent. outstanding, while in the previous 5 years their share was closer to two-fifths. FLOW OF BANK CREDIT Loans for purchasing or carrying securi- Commercial banks advanced more than $ 11 ties declined less than usual over the first billion in credit during the first 6 months of half of 1963, although the volume out- 1963, after allowance for seasonal influ- standing and the composition fluctuated conences. Over half of the increase was in loans siderably. Banks made large temporary adand the remainder was in investments, prin- vances of credit to Government security cipally State and local government issues. dealers in connection with Treasury financ- In general, banks followed the same invest- ing operations in February, March, and ment policies as they had last year when May, but at midyear the volume of these they began to stress longer-term, higher- loans outstanding was much below the high yielding investments and loans rather than level at the end of 1962. Loans to brokers short-term U.S. Government securities. for purchasing or carrying private securities Bank loans. In their more intensive search increased throughout the first half. Beginfor higher earnings to cope with the expense ning in midspring, the increase was more of the large inflow of interest-bearing de- rapid, reflecting in part increased activity in posits, banks have continued to emphasize the stock market and greater use of stock mortgage and consumer loans. The asso- market credit. ciated increase in credit availability has con- In the first half of 1963 outstanding busitributed to a growth in outlays financed by ness loans, seasonally adjusted, increased by such loans, and this growth has helped to about $1.2 billion, close to the pace of the sustain general economic expansion. early months of 1962 but well below the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONETARY DEVELOPMENTS, FIRST HALF '63 885 rapid rise later in that year. Business needs 58 per cent, slightly above the peak it for funds have been moderate this year rela- reached at the end of the previous upswing tive to the increased supply that has become in mid-1960. available from internal sources—retained Securities. Holdings of U.S. Government earnings and depreciation allowances. The securities at all commercial banks declined 1962 revision of rules governing allowable by $2.9 billion during the first half of 1963, depreciation in calculating Federal income somewhat less than a normal seasonal detaxes and the investment tax credit con- cline. Banks sold Treasury bills or let them tributed to this increased flow. Part of the mature. They also reduced their holdings heavy borrowing by business in the latter of other issues maturing within a year. Howpart of last year may have represented temporary financing through banks by some borrowers who expected further declines in 10ANS slower in expanding than capital market rates. in previous recoveries Cyclical loan experience. In the 28 months since the recession low of February 1961, 140 total outstanding bank loans have increased by about 22 per cent. This is considerably 120 less than the percentage increase during the equivalent 1954-56 period and is about the same as the increase over the 28 months after the 1958 trough, by which time the 1960 recession had already begun. Similarly, business loans have increased much less in the current upswing than in the 1954- 56 period, and they have also increased moderately less than in the 1958-60 upswing. Expansion in total bank credit, however, has been much larger than in these -100 earlier comparable periods, that is, more than 20 per cent, compared with not quite 8 12 16 20 10 per cent previously. This reflects the dif- Months offer cyclical low ferent movement in bank holdings of securities in the current business upswing. These NOTE.—Indexes based on seasonally adjusted data excluding interbank loans, at all coml. banks for last Wed. of month holdings have increased whereas in earlier (except for June 30, Dec. 31, call dates). Cyclical lows— Aug. 1954, Apr. 1958, Feb. 1961. periods of expansion they declined. With loan demand moderate and with ever, they added to holdings of securities monetary policy remaining relatively easy, maturing in more than a year—especially loan-deposit ratios have not risen so rapidly to their holdings of intermediate-term issues as in other recent expansions. In the pre- —through participation in the Treasury's ceding recession, moreover, the decline had advance refunding in late winter and the exbeen moderate. By June 1963, the loan- change offering in May and through purdeposit ratio for all commercial banks was chases of new bonds for cash in June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 FEDERAL RESERVE BULLETIN • JULY 1963 As a result of these changes, the ratio of yields available since the beginning of 1962. bank holdings of short-term U.S. Govern- Another reason was that businesses and ment securities to total deposits declined other large investors continued to place subfrom 9.5 per cent at the end of 1962 to stantial amounts of funds in time deposits, about 7.8 per cent in May. At that level the which were yielding more than competing ratio was about 4 percentage points below short-term market instruments, such as its recent peak in the summer of 1962 but Treasury bills. still about 3 percentage points above the At weekly reporting member banks in low reached in the summer of 1960. leading cities time deposits represented The decline in the banks' ratio of short- about two-thirds of the increase in their term securities to deposits represented time and savings deposits combined during mainly the continuing adaptation of bank investment portfolios to the heavy inflow of time and savings deposits. It did not to any BANK PREFERENCE is for securities marked extent reflect, as it often has in the other than Governments past, a response to a combination of growing loan demand and increasing monetary restraint. In the first half of 1963 bank holdings of non-U.S. Government securities, mainly State and local government issues, rose $3.5 U.S. GOVT. SECURITIES billion or at an annual rate of 24 per cent, after allowing for seasonal influences. This was an even more rapid expansion than the unusually large increase of 22 per cent OTHER SECURITIES recorded in 1962. In that year demand by banks for municipal securities sparked a BANK LIQUIDITY continues dawn downward movement in their yields. But this year yields on these issues have risen SHORT-TERM U.S. GOVT. SECURITIES/TOTAL DEPOSITS along with those on long-term U.S. Government securities. EXPANSION OF TIME AND SAVINGS DEPOSITS Time and savings deposits at commercial NOTE.—U.S. Govt. and other securities are seasonally adjusted data for last Wed. of month (except for June 30, Dec. banks rose at an annual rate of about 14 per 31, call dates). Short-term U.S. Govt. securities are those maturing within 1 year. Deposits are net of cash items in process cent in the first half of 1963. This was be- of collection. Latest figures, U.S. Govt. and other securities, June; ratio, May. low the unusually high rate of 20 per cent attained in the first half of both 1958 and the first half of 1963. This was an even 1962, but even so it was very rapid by stand- larger proportion than in the first half of ards of most earlier years. 1962. One reason for this rapid increase was The continued availability of negotiable that individuals continued to make large ad- time certificates of deposit at favorable rates ditions to savings deposits at the higher of interest contributed to the growth in total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONETARY DEVELOPMENTS, FIRST HALF '63 887 tively issue negotiable time certificates face INCREASE in time and savings deposits continues the necessity of taking account of the vol- Ralio scale billicns of dollars " so ume and distribution of maturing certificates TOTAL TIME AND. 60 in determining liquidity positions. SAVINGS — «0 MONEY SUPPLY 30 In the first half of this year the active money especially far TIME DEPOSITS supply—privately held currency and de- IS mand deposits—has increased only mod- INDIVIDUALS, PARTNERSHIPS, erately, at an annual rate of 2Vi per cent. AND CORPORATIONS This is somewhat above the average rate of increase for last year as a whole but well below the rapid 7 per cent rate that de- STATE AND LOCAL veloped in the last quarter. GOVERNMENTS ,.«-•* The behavior of the money supply is subject to many influences. Some are regular or recurring and allowance can be made for them by seasonal adjustment procedures. Others cause longer-run shifts in direction and rate of change in the seasonally adjusted NOTE.—Weekly reporting member banks in leading cities. Foreign includes deposits of foreign govts. and official institu- data as well as the erratic movements that tions, central banks, and intl. institutions. Total includes deposits of U.S. Govt. domestic and foreign coml. banks, and show up in the series. mutual savings banks, not shown separately. Latest figures, June 26. The availability of bank reserves is a funtime deposits. As noted in an article in the damental influence. But the amount of April 1963 issue of the BULLETIN, only $1 money supplied through the banking system billion of such certificates were outstanding is also influenced by the changing needs and at the end of 1960, but by the end of last desires of the public for cash balances. year the total had risen to $6.2 billion. Frag- For example, when business is rising mentary data for this year indicate that briskly and the demand for bank loans is growth has continued to be substantial. large, growth in the money supply tends to For many years now time and savings de- accelerate because depositors and borrowers posits have bulked larger and larger as a make payments that increase the nation's source of funds to banks. During the past 3 flow of incomes and expenditures and years the ratio of time and savings deposits thereby the need for money to hold as a to total deposits has been increasing by means of payment. Available yields on comabout 2 to 3 percentage points a year. It is peting liquidity instruments such as time denow 40 per cent, about as high as it was in posits and short-term U.S. Government sethe late 1920's. curities also influence the public's willing- A large part of the recent inflow of time ness to hold money. When yields are high, and savings deposits is likely to be quite in- for instance, businesses and other investors terest-sensitive and might move out at ma- often prefer to sacrifice some liquidity for turity if market interest rates rise relative to the larger interest earnings available on the time deposit yield. Thus banks that ac- these instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 FEDERAL RESERVE BULLETIN • JULY 1963 Any larger than usual change in U.S. During this period the turnover of money Government tax and loan accounts result- rose further, as it has over the whole posting from tax payments or purchases of Gov- war period. The public's willingness to ernment securities by the nonbank public economize on cash balances in order to hold also influences the money supply, especially more interest-earning assets has been a conin the short run. tinuing influence on the trend in the rate of The rapid increase in the money supply money use. Turnover has risen most rapidly, in the last quarter of 1962, with monetary though, in periods of buoyant cyclical expolicy generally unchanged until late in the pansion when the public has used existing period, was largely in response to the de- cash balances more intensively to finance a mand for bank credit, as indicated by the growing volume of transactions. In such rapid expansion in business loans. A larger periods a reduced availability of bank rethan usual decline in U.S. Government de- serves generally restrains the growth of the posits also added to the supply in that money supply and puts further upward presperiod. Apart from any effects flowing from sure on interest rates, thereby increasing the changes in reserve availability, the rise in incentive as well as the need to use money the privately held money supply was mod- more efficiently. The recent period of expansion—that is since early 1961—has seen a growth in money turnover but only a small rise in market rates of interest. This contrasts with other periods of expansion when both turnover and interest rates rose substantially because of greater restraint on the availability of bank reserves. BANK RESERVES During the first half of 1963, total reserves of member banks, seasonally adjusted, rose somewhat more slowly than they did last year. Federal Reserve holdings of U.S. Government securities increased more than they did in the corresponding period last year. But other factors affecting bank reserves— mainly movements of gold, currency in cir- NOTE.—Seasonally adjusted. Money supply, semi-monthly averages of daily figures. Money supply consists of demand culation, Federal Reserve float, and Treasdeposits at all coml. banks (except those due to domestic coml. banks and the U.S. Govt.); foreign demand balances at F.R. ury balances at the Federal Reserve—taken Banks; and currency in the hands of the public. Coml. bank and F.R. Bank float excluded. Turnover, monthly, of demand deposits except interbank and U.S. Goyt. at 343 centers outside together absorbed more funds. This closer New York. Latest figures, June, preliminary. balancing between the supply of reserves erated during the first half of 1963 by a and the demand for them served to implebuildup in U.S. Government deposits and by ment the Federal Reserve's policy of slightly the slower tempo of bank loan demand. less monetary ease. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MONETARY DEVELOPMENTS, FIRST HALF '63 889 Under these conditions banks economized that might have been expected in early 1963 on excess reserves, and they increased their from seasonal influences and from a large borrowings from Federal Reserve Banks reduction in short-term coupon issues in slightly. Thus, the margin of free reserves Treasury refunding operations was offset by declined. A detailed description of various a number of factors in addition to monetary measures of reserve availability useful in the policy actions. These included bank preferappraisal of monetary developments appears ence for longer-term securities and a large in the following article. increase in negotiable time certificates outstanding. INTEREST RATES The very narrow range within which The general level of interest rates in all ma- short-term rates fluctuated during the first turity ranges edged upwards in the first half of 1963. Long-term rates had declined on balance last year. But by late June 1963 the average yield on long-term U.S. Government securities had risen about 15 basis points from its recent low reached around the turn of the year. Movement in this rate during the first half of the year was influenced by the large-scale Treasury offerings of longer-term securities, by the more optimistic economic outlook, and by anticipated Treasury needs for heavy borrowing in the second half of the year. Other long-term rates showed divergent trends in response to differing supply and demand relationships in the various sectors of the capital markets. Yields rose on highgrade State and local government bonds, were relatively stable on lower-grade State and local and high-grade corporate issues, and declined on lower-grade corporate bonds and on residential mortgages. NOTE.—Weekly averages. Treasury bills market yield on 3nionth bills. U.S. Govt. bonds, issues maturing or callable in 10 years or more. Latest figures, July 6. The yield on 3-month Treasury bills—the pivotal rate in the short-term interest rate half was also influenced by pervasive exstructure—remained remarkably stable pectations on the part of active market parthrough mid-May of this year, after having ticipants that public authorities would act risen in the last quarter of 1962. It then rose so that rates would neither fall greatly, beclose to the 3 per cent discount rate in June cause of the risk of accentuating balance of as banks' net reserve position came under payments difficulties, nor rise very much, some additional pressure. because of the continuing lack of full utiliza- The downward effect on short-term rates tion of domestic labor and capital. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES are a key ele- monetary policy and the use of monetary ment in the process by which monetary instruments have to be a continuous and policy influences the performance of the flexible process in which the Federal Reeconomy. Accordingly, careful attention to serve constantly evaluates whether its imreserve changes is an integral part of day- pact on member bank reserves is approprito-day Federal Reserve operations. This ate in relation to other developments. article describes some of the aggregate re- In this evaluatory process the monetary serve measures that have been developed authorities make use of a great variety of for use in this connection in recent years economic and financial information, rangand presents seasonally adjusted data for ing from immediate indicators of money a number of these measures. market conditions to comprehensive measures of economic activity. Within the context of its frequent broader appraisals of economic conditions, the Federal Reserve The Federal Reserve's general instru- undertakes its day-to-day operations with ments of monetary policy—open market principal reference to developing conditions operations, reserve requirements, and the in the money and securities markets and the discount rate—have their principal impact indicated state of bank reserve positions.1 on the availability and cost of member bank To assist in appraising the latter, the reserves. Bank reserves in turn provide the monetary authorities have a variety of refoundation for expansion of bank credit serve measures at hand. These are designed and money. Movements of bank credit to help indicate how effective Federal Reand money, in their turn, influence over-all serve operations are in supplying funds to credit availability, interest rates, and gen- banks and how banks' desires to lend and eral liquidity—and ultimately economic invest are affecting their own demand for activity, the average level of prices, and reserve funds. The interaction of these supthe balance of payments. ply and demand factors determines the As the impact of monetary policy spreads availability of bank credit and money and from member bank reserves to conditions to an extent the terms on which bank credit which are of ultimate concern, such as the is available to the public. level of economic activity, more and more nonmonetary influences come into play. 1A detailed discussion of the methods of operation of the System Open Market Account through which all These are continuously changing in form Federal Reserve open market operations are conand direction, and they may offset or rein- ducted was presented in the April 1962 issue of the BULLETIN, pp. 429-57. force the effect of monetary actions. Because the economic and financial environ- NOTE.—This article was prepared by Edward R. Fry of the Banking Section of the Division of Research ment is so changeable, the formulation of and Statistics of the Board of Governors. 890 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 891 Data on these reserve measures are as- action of monetary policy and market forces sembled daily for use within the System, is the so-called net reserve position of banks. and they are published in the Board's weekly This measure is computed by subtracting release "Factors Affecting Bank Reserves member bank borrowings at the Federal and Condition Statement of the Federal Reserve from excess reserves. When this Reserve Banks." Popular attention has measure is positive, it is called net free refocused particularly upon the indicators serves, and when negative, net borrowed of marginal reserve availability, such as reserves. Figures for the net reserve position excess reserves, borrowings, or the differ- of banks, as well as for excess reserves and ence between these two (usually termed borrowings, are published regularly in the "free" or "net borrowed" reserves). The BULLETIN (see pages 952, 953, and 954 statement also carries statistics on the level of this issue) and in statistical releases. of and change in aggregates of reserves Week-to-week changes in banks' net provided and of reserves utilized—total re- reserve position are subject to wide variaserves and required reserves, respectively. tions in response to market forces. But a The significance of the published changes in these reserve aggregates is not easy to discern, inasmuch as such totals show wide Reserves: Definitions fluctuations. The greater part of these fluctuations, however, are systematic in char- Reserve measure Current definition Total reserves Member bank deposits with acter. In particular, they reflect major Federal Reserve Banks plus seasonal changes in reserve needs. When member bank vault cash Required reserves 4 per cent of total time deposits such changes are allowed for, the resulting plus 16.5 and 12 per cent, reseries can provide an added dimension of spectively, of reserve city and country bank net demand deinsight into the current trend of reserve posits utilization by the banking system. Excess reserves Total reserves less required reserves Later sections of this article describe the Member bank bor- Discounts and advances from seasonal and other adjustments applied to rowings Federal Reserve Banks, mainly advances secured by U.S. Govthe aggregate reserve statistics by the Board ernment securities or eligible staff to enhance their usefulness in current paper Net free or net bor- Excess reserves less member analysis. rowed reserves bank borrowings from Federal Reserve Banks Nonborrowed re- Total reserves less member bank RELATIONSHIPS AMONG RESERVE serves borrowings, or required reserves MEASURES plus free reserves No one series measuring bank reserves can serve all the needs of economic analysis and monetary policy formulation. The vari- persistent change in net reserve position ous kinds of reserve breakdowns illuminate over a period of several weeks often indidifferent aspects of the monetary process, cates a basic shift in the credit climate. For with some focusing more on short-run than instance, when monetary authorities act to on longer-run aspects. supply reserves less freely, banks tend to General relationships. One of the most economize on excess reserves or, more sensitive measures of the day-to-day inter- often, to increase their borrowings at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 FEDERAL RESERVE BULLETIN • JULY 1963 Federal Reserve. In either instance free tions cannot be gauged only by reference reserves decline. to free reserves, excess reserves, and bor- On the other hand, when monetary ac- rowings, or to changes in their levels and tions increase the supply of reserves after distributions. Although these measures proa period of restraint, banks tend to use these vide sensitive short-run indications of the funds first to reduce their indebtedness to pressure of policy on reserve positions, the the Federal Reserve and perhaps also to longer-run consequences of such pressure rebuild somewhat their working level of are to be seen in the trends in total reserves excess reserves. In either instance, free re- and required reserves and in the portion of serves increase. total reserves provided by means other than Viewed separately, excess reserves and member bank borrowings—nonborrowed borrowings provide valuable insight into the reserves. Adjustment of such measures to distribution of reserves among banks. These eliminate seasonal influences helps to reveal measures often help to explain the reactions these trends. of banks and the money market to existing The underlying movements of required conditions of reserve availability or to cur- reserves give an early indication of the rent operations of the Federal Reserve. extent to which banks are expanding or While a high degree of reserve mobility contracting credit in the prevailing climate among banks has been developed, the exist- of reserve availability. Comparison of the ence of excess reserves and borrowings con- movements in required reserves and noncurrently indicates that reserves are not borrowed reserves indicates to what extent perfectly mobile. reserve utilization by the banks is being Some banks traditionally maintain re- supported by reserves provided by the comserves in excess of their legal requirements. bination of Federal Reserve open market Some move toward full utilization of re- purchases and reserve requirement changes serves only toward the end of their reserve and of market factors such as currency incomputation periods. And others seek to flows and float. Total reserves is a composite minimize their excess reserves throughout of all the influences operating on the reserve reserve computation periods by investment base. It provides a standard to which any and lending operations that are highly sensi- deviation in the movement of component tive to changes in reserve availability and to reserve measures can be related. current developments in the money market. Influence of Federal Reserve policy. How In general, large banks in money market Federal Reserve open market operations centers tend to keep excess reserves near a affect required reserves and total reserves minimum while country banks as a group depends in part on how banks respond to typically maintain substantial excess re- the flow of newly supplied reserve funds. serves. In planning and evaluating its day- Their responses, in turn, depend on market to-day operations, the Federal Reserve must conditions and the demand for bank loans. take into account shifts in the distributions For instance, if market rates of interest are of member bank excess reserves and bor- rising or if borrowers are seeking loans rowings, as well as in the relative levels of from banks, or both, banks as a group are these reserve components. not likely to use the added reserve funds The impact of current monetary opera- to reduce their indebtedness to the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 893 Reserve. In fact, such market conditions eral Reserve takes account of such bank are likely to stimulate growth in total bank responses as they develop. Hence these rereserves by increasing the willingness of sponses may affect the further course of member banks to borrow from the Federal policy actions. It thus becomes important, Reserve. for instance, for the System to know However, if a rise in total reserves is whether banks are adding to total reserves composed largely of borrowed reserves, it but not to required reserves—under these is less likely to be sustainable than if it is circumstances bank credit and money excomposed mainly of nonborrowed reserves. pansion may be lagging—or whether they Member bank borrowing at Federal Re- are adding to required reserves and to total serve Banks is generally regarded as a tem- reserves but not to nonborrowed reserves porary source of reserves both by the bor- —under these conditions future expansion rowing bank and by the Federal Reserve of bank credit may be limited. officials who administer discount opera- The interrelation of these aggregate retions. This transitory or emergency nature serve measures, suggested by the above of borrowed reserves, which is formally discussion, can be traced through the recent recognized in the regulation governing movements of total, nonborrowed, and remember bank borrowing, tends to limit the quired reserves shown in Chart 1. The data volume of credit that can be supported by on the chart have been adjusted to eliminate such reserves. the effects of changes in reserve require- In its open market operations the Fed- ments and of seasonal influences, as ex- CHANGH is oggregotfi n«nbir b«»k feierves mirror t|««fi*f inwoittry <einHtiMs TOTAL RESERVES REQUIRED RESERVES NONBORROWED RESERVES »*»*•'• ' :-m*:,-••••:• ••;«f*r' NOTE.—Monthly averages of daily figures. Adjusted for also the technical note at the end of the article. seasonal variation and changes in reserve requirements. See Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 FEDERAL RESERVE BULLETIN • JULY 1963 plained in the technical note at the end of operations to reduce borrowed reserves. Althis article. Table 1 on page 900 presents though demands for some types of loans data so adjusted for the period 1951 to date were declining, banks increased their holdand also the seasonal factors applicable to ings of securities, and their required and the current year. excess reserves showed little change. By defi- As can be discerned from the chart, non- nition, of course, the reduction in borrowborrowed reserves are considerably more ings relative to excess reserves meant that variable than either total or required re- banks' net borrowed reserves were being serves. This is true because Federal Reserve reduced. operations have an immediate impact on By January 1958 nonborrowed reserves nonborrowed reserves that is not offset by had increased by about $500 million, yet actions of banks in using these reserves. there was little change in either total or Effects of such operations on total reserves required reserves. Nonborrowed reserves and required reserves may be delayed or available to banks at this time were about cushioned for a time if banks make offset- equal to required reserves for all member ting adjustments in their borrowing from the banks. Consequently, the total amount of Federal Reserve or in their loans and in- excess reserves maintained by some banks vestments. about matched total borrowings by other For example, when the System buys U.S. banks. Government securities to expand bank re- After January 1958 the Federal Reserve serves, the increase shows up in nonbor- made reserves available at an increasing rowed reserves. At first, this operation will rate, partly through reductions in reserve also increase excess and total reserves. How- requirements. As nonborrowed reserves rose ever, banks may use the added reserves rapidly in succeeding months, banks requickly to reduce indebtedness to the Fed- duced their borrowings to low levels. The eral Reserve. If so, both total and excess increase in nonborrowed reserves was more reserves would decline. Or the initial in- rapid than liquidation of member bank borcrease in excess reserves may be employed rowings, so total reserves also rose. Banks to support an expansion of bank credit. If seeking to minimize excess reserves sought so, required reserves would increase. This to employ the added reserves by expanding latter action would not affect the new higher credit. This caused a rapid increase in relevel of total reserves. quited reserves. The increase of nonbor- An illustration of this process is seen rowed reserves above required reserves, or in the latter part of 1957, when Federal the decline 6f borrowings relative to excess Reserve operations began to supply more reserves, meant that net free reserves were than seasonal amounts of reserves follow- increasing. ing a period of restraint. For some months, This process, by which bank credit exas the System continued to supply reserves, pansion was being fostered in early 1958, nonborrowed reserves increased, borrowed was reversed after the middle of that year. reserves (green area on the chart) declined, The Federal Reserve began to limit the and total reserves changed little. amount of reserves it supplied through open During this period member banks were market operations, and nonborrowed reusing reserves supplied by Federal Reserve serves declined. Member banks borrowed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 895 an increasing amount of reserves to meet ments that may at times give misleading reserve requirements, with the result that impressions of what is being achieved in total reserves were maintained near their terms of broader goals. Changes in the midyear peak. deposit mix and their effect on reserve ab- Deposits and required reserves increased sorption are a particular hazard in this further into 1959, financed by increased respect. borrowing at the Reserve Banks. Accom- Changes in total required reserves, for panying the policy of continuing restraint example, are complicated by the fact that as the year progressed, nonborrowed re- reserve requirements applicable to time and serves declined to levels well below required to demand deposits are different. Because reserves and net borrowed reserves increased the requirements against time accounts are to nearly $500 million. After mid-1959 the lower, increases in these deposits absorb continued reduction of nonborrowed re- only about one-fourth as much reserves as serves was accompanied by declines in total do increases in demand deposits. Conseand required reserves. quently, a given increase in required re- Experience during the ensuing 3 years, serves could support a much larger expan- 1960-62, illustrates the relationship of re- sion of bank credit and total deposits if the serve measures over an extended period of public decided to hold a substantial volume reserve expansion. Throughout most of this of its deposits in time form. period Federal Reserve operations increased Another distinction in reserve absorpnonborrowed reserves. During the first year tion that is not disclosed by the aggregate member banks reduced their borrowings figures is the use of reserves to support U.S. from the Federal Reserve to minimum levels. Government demand deposits on the one Thereafter, total and nonborrowed reserves hand and private deposits on the other. moved upward in close proximity. Required Changes in U.S. Government deposits often reserves increased at about the same rate absorb large amounts of reserves with difas banks used the added reserves to expand fering impacts on holdings of private decredit. System operations enabled member posits. While Government deposits are outbanks to maintain net free reserve positions, side the area that Federal Reserve policy is although at somewhat reduced levels over trying to influence, the reserves absorbed by time. anything more than transitory changes in these deposits must be taken into account in providing reserves to support the genera] LIMITATIONS OF AGGREGATES objectives of monetary policy. This framework for reserve analysis does not change the need for broader measures REQUIRED RESERVES BY TYPE of financial performance such as aggregate OF DEPOSIT bank credit, the money supply, and total liquid assets, nor does it provide a precise To extract the maximum analytical value link between reserve actions and these from the statistics for required reserves, it is broader measures. In fact, those who use necessary to distinguish among types of deaggregate required reserves as a measure of posits and to eliminate seasonal and other reserve use must be on guard against move- systematic influences for each type. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 FEDERAL RESERVE BULLETIN • JULY 1963 Board's staff has applied the necessary ad- quirements and shifts of deposits among justments to four component series of de- classes of banks. Each group of deposits posits subject to reserve requirements: time, and the methods of adjustment are described demand adjusted, net interbank demand, more fully in the technical note at the end and U.S. Government demand. Each of of this article. these series has been seasonally adjusted and Chart 2 shows that most of the nonconverted to approximate required reserve seasonal, month-to-month fluctuation in reequivalents.2 Table 2 on page 901 contains quired reserves is due to changes in demand these series. deposits. Time deposits account for only Required reserves data for each type of a small proportion of this fluctuation for deposit reflect seasonally adjusted movetwo reasons: requirements against time dements in the deposits for all member banks posits are lower and movements in these at current reserve requirements. The use of deposits tend to be smoother than is true constant reserve requirements eliminates for demand deposits. Over time, however, such influences as changes in reserve regrowth in time deposits may absorb sub- 2 Seasonal adjustments for these series were com- stantial amounts of reserves even though the puted by ratio-to-moving-average methods, utilizing reserve requirement applicable to these dethe X-9 and X-10 variants of Census Method II. Reserve equivalents were derived by applying current posits is small. As may be noted from Chart time and net demand reserve requirements to the corresponding deposit series. 2, time deposits accounted for a consider- Chort 2 ABSORPTION OF RESERVES by vario.s types of deposits riflocts differing novemeits la these deposits end differences in reserve reqeirenents Billions of dollars. 14- ^ - "^ ADJUSTED ~^^y^ BY DEMAND -- 13. 11 4 - BY; TIME ^ . __ • " NET INTERBANK DEMAND - 1 1 I 1 1 f 1 1 I 19S4 195 S 195* 1957 195S 1959 1960 19*1 19*3 NOTE.—Monthly averages of daily figures for seasonally adjusted deposits multiplied by current average reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 897 able proportion of the reserve absorption liquidity and to have provided accordingly. during the past 3 years. Similarly, Treasury financing operations In studying the reserves against various may result in shifts of deposits from private types of demand deposits, the category de- to Government accounts; or if banks buy mand deposits adjusted is given the most the securities issued, the new Treasury balattention. This category accounts for the ances created absorb excess reserves that largest proportion of total required reserves, might otherwise support private credit exand it is responsible for most of the sensi- pansion. The relationship of Treasury optivity of required reserves to seasonal and erations to reserve needs of the private econcyclical influences. These deposits—owned omy is highly variable, especially in connecmainly by individuals, partnerships, and tion with cash financings. As can be seen corporations—also represent the largest on Chart 2, many of the fluctuations in recomponent of the money supply. Conse- serves supporting Government deposits are quently, they help to explain the relation temporary. Others, such as the increase bebetween movements in required reserves fore the middle of last year, are more longand the money supply. Thus, the economy's lasting. requirements for reserves to meet seasonal Presumably very temporary net transfers, and growth needs are usually assessed in of deposits from private to Government acterms of demand deposits adjusted and time counts would not involve any significant deposits taken together. reduction of private liquidity and hence The Treasury accumulates and holds would not be any reason for monetary aumost of its cash balances with member thorities to consider offsetting monetary acbanks. While U.S. Government demand de- tion. The same could be true of the kind posits are smaller than the aggregates for of deposit transfers that are associated with other types of deposits subject to reserves, substitutions among very liquid assets, such large amounts of funds flow through these as might result from a corporate treasurer accounts and they fluctuate widely. Receipts investing a temporarily idle bank balance and expenditures of the Treasury and its in a new issue of Treasury bills. However, financing operations in the money market if shifts of deposits from private to Governall have direct impacts on private deposits. ment hands are longer-lived, or if they in- To the extent that these flows are regular volve a substantial reduction in private liqfrom year to year, they affect seasonal pat- uidity, they may create a need for some reterns in private deposits. plenishment of private deposit holdings, by The seasonal influences of Treasury flows compensatory reserve provision if neceson private deposits are especially large sary, in order to maintain a stable monetary around tax-payment dates. For example, climate. tax collections by the Treasury are associ- Member banks also are required to hold ated with reductions in private cash balances reserves against balances due to other banks. or with temporary private borrowing from Balances due from domestic commercial banks to cover tax payments. For the most banks are deducted in computing demand part, taxpayers can be presumed to have deposit reserve requirements. Therefore, deforeseen the need for such seasonal pay- mand balances "due to" and "due from" ments and the resulting impact on their banks are netted in this reserve analysis in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 FEDERAL RESERVE BULLETIN • JULY 1963 order to account for all deposits subject to each year, but their broad movements are reserves. This residual is positive for all similar from year to year. The net movemember banks as a group, combining net ment of projected reserve needs to support balances due to nonmember commercial U.S. Government deposits and seasonal banks with balances due to foreign and mu- fluctuations in private deposits provides a tual savings banks. The resulting series, useful aid to implementation of current called net interbank demand deposits, shows monetary policy. considerably less fluctuation on a seasonally Chart 3 illustrates these patterns for the adjusted basis than do other demand de- year ending June 26, 1963. The top panel posits. ANTICIPATION OF RESERVE PATTERNS SEASONAL CHANGES ii reserves against private deposits The analysis of required reserves by type Billions of dollars of deposit can be adapted to the projection NET INTERBANK of patterns of reserve use for a number of DEMAND days and weeks ahead. Such projected patterns have proved helpful in deciding upon the timing and extent of Federal Reserve TOGETHER with changes in reserves operations to affect the supply of reserves. against Government This is true not only with respect to the dayto-day activities of the System Open Market Account, but also in the implementation of less frequent actions such as changes in reserve requirements. The major factors taken into account in these projections of required reserves are ACCOUNT FOR MOST OF the weehly llecteatioes seasonal patterns in private deposits and in required reserves anticipated actual movements in U.S. Gov- "1 ernment demand deposits for the weeks im- /V\ ESTIMATED mediately ahead. The latter projections are based on detailed analysis of prospective Treasury receipts, expenditures, and financing operations. These projections of U.S. Government deposits vary considerably from one year to the next, reflecting differences in over-all level of economic ac- NOTE.—Changes in weekly averages cumulated from June tivity, in the Federal budget, and in day-to- 27, 1962. day operations of the Treasury. Estimated monthly seasonal patterns in of the chart shows estimated seasonal flucreserves supporting private deposits are tuations in reserve absorption for the three broken down into weekly patterns of esti- categories of private deposits discussed mated seasonal needs for reserves. These above, each accumulated from June 1962 weekly seasonal patterns differ somewhat through June 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 899 The prominence of demand deposits ad- these compensating seasonal movements, justed in the total seasonal variations of movements in both Government and private private deposits is immediately apparent deposits normally contribute to the very from the chart. Weekly seasonal absorption large seasonal decline in reserve needs at of reserves by these deposits moves over a the beginning of the year. Both the Govrange of $1.1 billion during the year, com- ernment and the private components of repared with about $200 million for inter- quired reserve projections show wide swings bank deposits and only $50 million for time over the year. deposits. The largest weekly seasonal change A combination of these estimated reserve in reserves supporting private deposits, patterns is shown in the bottom panel of which normally occurs in mid-December, the chart together with the actual pattern of exceeds $300 million. This reflects an inrequired reserves. This combined pattern crease of more than $2.0 billion in demand moved over a range of about $1.1 billion deposits. in 1962-63 before allowance for reductions The middle panel of Chart 3 compares in reserve requirements against time dethe estimated seasonal pattern of reserves posits at the end of October 1962. Because supporting all private deposits with actual actual changes in Government deposits and fluctuations in reserves absorbed by U.S. seasonal movements in private deposits dom- Government deposits in the period July inate the weekly fluctuations in required re- 1962-June 1963. For purposes of this chart, serves, most of the large weekly changes reserves supporting U.S. Government dereported in total required reserves are anposits were based on reported data for these ticipated by the estimated pattern. deposits. In practice, these reserve projec- The effects of reductions in reserve retions are prepared for several weeks in adquirements applicable to time deposits apvance, and they are revised frequently as pear in the actual figures for the weeks endnew information concerning Treasury oping October 31 and November 7, but they erations becomes available. Weekly projecare not incorporated in the seasonal estitions of this component differ markedly mates shown on the chart. Over the year from year to year, whereas the estimated 1962-63 the reported figures on required reseasonal patterns in reserves supporting priserves showed a net increase of $53 million vate deposits are fairly similar from year after the reduction in reserve requirements to year. against time deposits released $780 million Some seasonal relationships between the of reserves. This small increase in required two series are apparent. These are normally reserves, together with the reduction in remost noticeable around major tax-payment serve requirements, supported substantial dates—as, for example, in March, April, expansion in time deposits and smaller in- June, and September—when compensating creases in Government and private demand movements reflect shifts between private and Government deposits. In addition to deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 FEDERAL RESERVE BULLETIN • JULY 1963 TABLE 1 MEMBER BANK RESERVES, SEASONALLY ADJUSTED (Monthly averages of daily figures; in billions of dolars) Year Jan. Feb. Mar. Apr. May June July Aug. Sept. Cct. Nov. Dec. Total reserves 1951 14.68 14.74 15.02 15.37 15.03 15.18 15.07 15.07 15.09 15.41 15.34 15.48 1952 15.64 15.60 15.85 15.72 15.74 15 82 16.00 15 95 16 00 15 96 16 06 16 13 1953 16.03 16.03 15.98 15.89 15.84 15.97 16.14 16.26 16.18 16.09 16.20 16.94 1954 16.45 16.21 16.28 16.33 16.43 16.55 16.48 16.72 16.59 16.90 17.15 16.93 1955 16.93 16.98 16.87 17.07 17.07 16.91 16.96 16.95 16.89 16.94 16.90 16.91 1956 16.95 16.98 17.15 17.04 17.02 17 12 16 97 17 00 17 17 17 01 17 20 17 20 1957 17.09 17.07 17.11 17.25 17.08 17.14 17.21 17 04 17 09 17 08 17 00 17.08 1958 17.08 17.24 17.54 17.63 17.83 18.11 18.05 18.08 17.92 17.89 17.95 17.94 1959 18.04 18.15 18.07 18.20 18.18 18.02 18.13 18.14 18.10 18.03 18.02 17.98 I960 18.02 17.80 17.71 17.69 17.86 17.87 17.98 18.01 18.16 18.25 18.40 18.28 1961 18.39 18.47 18.42 18.41 18.39 18.53 18.47 18 64 18 74 18 92 19 06 18 98 1962 19.06 18.99 19.06 19.15 19.25 19.31 19.35 19.24 19.31 19.43 19.49 19.61 1963 19.68 19.70 19.75 19.73 19.86 19.87 1 i Seasonal factors 1963 101.8 99.4 98.8 99.2 99.1 99.3 99.7 99.6 99.8 100.5 100.6 102.2 Nonborrowed reserves 1951 14.45 14.44 14.79 15.20 14.61 14.85 14 85 14 78 14 73 15 24 15.08 15 01 1952 15.39 15.27 15.55 15.33 15.19 15.07 14.92 14 91 15.29 14.84 14.64 14.75 1953 14.63 14.75 14.78 14.70 14.92 15.38 15.69 15.64 15.70 15.65 15.84 15.83 1954 16.24 15.95 16.09 16.19 16.29 16.26 16.37 16.64 16.51 16.82 17.14 16.76 1955 . ... 16.47 16.64 16.39 16.60 16 74 16 38 16 37 16 23 16 07 16 06 16 03 16 14 1956 16.05 16.11 16.15 16.04 16.07 16.25 16.19 16.15 16.43 16.30 16.56 16.56 1957 16.61 16.35 16.25 16.25 16.18 16.08 16.25 16.07 16.15 16.27 16.25 16.42 1958 16.56 16.93 17.36 17.52 17.71 17.97 17.89 17.92 17 50 17.47 17.50 17.43 1959 17.42 17.59 17.39 17.53 17.41 17.13 17.15 17.19 17.23 17.13 17.17 17.13 I960 17.08 16.96 17.01 17.07 17.35 17.48 17.59 17.79 17.97 18.07 18.24 18.23 1961 18.27 18.33 18.31 18.33 18.31 18.50 18 42 18 63 18 71 18 82 18.95 18.89 1962 18.92 18.92 18.95 19.08 19.21 19.25 19.28 19 17 19 22 19.32 19.35 19.33 1963 19.51 19.53 19.58 19.61 19.66 19.67 Seasonal factors 1963.... 102.2 99.4 98.9 99.2 99.0 99.1 99.5 99.3 99.8 100.8 100.7 102.1 Required reserves 1951 13.93 14.04 14.26 14.43 14.37 14.42 14.38 14.36 14.42 14.53 14.59 14.70 1952 14.77 14.83 14.91 14.95 15.03 15.18 15.48 15.29 15.28 15.33 15.39 15.46 1953 15.35 15.33 15.34 15.25 15.15 15.26 15.43 15.64 15.56 15.35 15.51 15.46 1954 15.53 15.53 15.54 15.49 15.62 15.75 15.72 15.91 15.86 16.19 16.33 16.27 1955 16.24 16.34 16.25 16.37 16.42 16.37 16.43 16.40 16.36 16.39 16.38 16.38 1956 16.41 16.41 16.52 16.50 16.52 16 52 16 44 16 47 16 61 16 48 16 62 16.61 1957 16.58 16.55 16.57 16.73 16.60 16.63 16.68 16.52 16.59 16.60 16.48 16.56 1958 16.52 16.67 16.90 16.99 17.14 17.46 17.39 17.48 17.35 17.35 17.43 17.49 1959 17.57 17.71 17.60 17.76 17.71 17.57 17.73 17.68 17.67 17.57 17.58 17.56 I960 17.50 17.35 17.27 17.28 17.37 17.38 17.47 17.48 17.52 17.56 17.63 17.58 1961 17.68 17.83 17.85 17.80 17.82 17.90 17.87 18.05 18.16 18.38 18.44 18.49 1962 18.48 18.50 18.57 18.65 18.73 18.82 18.81 18.69 18.85 18.91 18.90 19.09 1963 19.23 19.24 19.30 19.31 19.37 19.47 Seasonal factors 1963 101.7 99.3 98.9 99.1 99.2 99.4 99.7 99.5 99.8 100.7 100.7 102.0 NOTE.—All June 1963 figures are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 901 TABLE 2 MEMBER BANK REQUIRED RESERVES, BY TYPE OF DEPOSIT, SEASONALLY ADJUSTED (Monthly averages of daily figures; in billions of dollars) Against private deposits Against Against private deposits Against Month D ad e j m us a te n d d in d t e e N m rb e a a t n n d k Time Total d d G e e IUT p m o o . a o v C s n . t i . t d s Month D ad e j m us a te n d d in d t e e N m rb e a a t n n d k Time Total d d G e e U p m o . o S v a s . n t i . t d s 1954—Jan.. . 12.41 .91 1.45 14.77 .59 1959—Jan.. . 13.76 .97 16.88 .60 Feb.. . 12.41 .92 .46 14.80 .57 Feb.. 13.78 .98 16.92 .72 Mar... 12.43 .92 .48 14.83 .52 Mar.. 13.81 .99 16.96 .53 Apr.. . 12.39 .92 .49 14.80 .49 13.87 .98 17.01 .66 May.. 12.53 .93 .51 14.97 .48 y 13.90 .97 17.04 .58 June.. 12.55 .93 .52 14.99 .55 June. 13.88 .97 17.02 .47 July. . 12.60 .93 .54 15.06 .47 July. 13.98 .96 17.12 .55 Aug... 12.65 .95 .55 15.16 .56 Aug., 13.91 .95 17.03 .61 Sept.. 12.66 .94 .56 15.16 .49 Sept. 13.83 .96 2.17 16.97 .67 Oct.. . 12.74 .94 .57 15.25 .71 Oct.. 13.78 .96 16.91 .58 Nov.., 12.84 .94 .57 15.35 .72 Nov. 13.77 .95 16.90 .62 Dec... 12.86 .94 1.58 15.38 .69 Dec. 13.73 .96 2.18 16.87 .69 1955—Jan.. . 12.95 .94 1.58 15.47 .64 1960—Jan.. 13.63 .96 2.17 16.76 .72 Feb... 13.05 .94 1.58 15.57 .65 Feb.. 13.59 .95 2.15 16.69 .63 Mar.. 13.03 .94 1.59 15.56 .50 Mar. 13.54 .94 2.15 16.63 .61 Apr.. 13.11 .95 1.59 15.65 .62 Apr., 13.52 .95 2.16 16.63 .59 May. 13.15 .95 1.59 15.68 .58 May, 13.47 .94 2.16 16.57 .73 June. . 13.11 .95 1.59 15.66 .55 June 13.41 .96 2.18 16.55 .77 July. . 13.17 .94 1.60 15.72 .56 July. 13.47 .97 2.20 16.64 .78 Aug.. 13.15 .93 1.60 15.69 .57 Aug. 13.49 .98 2.24 16.71 .73 Sept.. 13.16 .94 1.61 15.71 .50 Sept. 13.52 .99 2.27 16.78 .69 Oct.. . 13.18 .93 1.62 15.73 .53 Oct.. 13.50 1.01 2.30 16.81 .67 Nov.. 13.14 .93 1.62 15.69 .52 Nov. 13.48 1.02 2.33 16.82 .75 Dec. 13.20 .93 1.63 15.75 .49 Dec 13.50 1.01 2.36 16.87 .65 1956—Jan... 13.22 .94 1.62 15.79 .48 1961—Jan.. . 13.53 1.02 2.38 16.94 .70 Feb.. 13.21 .95 1.62 15.78 .51 Feb.. 13.59 1.04 2.43 17.06 .71 Mar.. 13.26 .96 1.62 15.84 .57 Mar.. 13.64 1.04 2.45 17.14 .67 Apr.. 13.27 .96 1.63 15.85 .51 Apr.. 13.68 1.03 2.48 17.20 .48 May. 13.24 .95 1.63 15.82 .59 May. 13.71 1.04 2.52 17.26 .52 June. 13.28 .96 1.64 15.87 .54 June. 13.72 1.05 2.55 17.31 .54 July. . 13.27 .97 1.65 15.88 .44 July. . 13.73 1.03 2.58 17.34 .51 Aug.. 13.22 .97 1.66 15.84 .50 Aug.. 13.75 1.03 2.61 17.39 .64 Sept.. 13.28 .97 1.67 15.92 .58 Sept.. 13.81 1.02 2.64 17.47 .64 Oct.. . 13.28 .96 1.67 15.92 .47 Oct.. . 13.84 .05 2.67 17.56 .75 Nov.. 13.28 .99 1.68 15.95 .53 Nov.. 13.89 .09 2.70 17.67 .73 Dec. 13.33 .99 1.69 16.00 .47 Dec.. 13.97 .07 2.72 17.76 .69 1957—Jan.. . 13.35 .98 1.71 16.03 .40 1962—Jan... 13.96 .11 2.76 17.83 .65 Feb.. 13.35 .96 1.73 16.03 .34 Feb... 13.89 .08 2.81 17.79 .68 Mar.. 13.36 .96 1.74 16.06 .43 Mar.. 13.89 2.86 17.83 .74 Apr.. 13.33 .95 1.76 16.04 .54 Apr.., 13.93 2.90 17.92 .69 May. 13.34 .97 1.77 16.08 .45 May.. 13.93 .01 2.92 17.86 .81 June. 13.30 .96 1.78 16.04 .45 June. . 13.91 .01 2.97 17.89 .88 July. . 13.31 .97 1.79 16.06 .53 July.. 13.91 .02 3.00 17.93 .85 Aug.. 13.31 .98 1.80 16.10 .36 Aug.. 13.88 .00 3.03 17.91 .81 Sept.. 13.26 .96 1.82 16.04 .44 Sept.. 13.87 .00 3.06 17.94 .89 Oct.. 13.23 .97 1.83 16.03 .48 Oct.. . 13.93 .03 3.11 18.07 .83 Nov.. 13.20 .95 1.85 15.99 .36 Nov.. 13.97 .06 3.16 18.18 .74 Dec. 13.14 .96 1.86 15.96 .45 Dec. 14.05 .05 3.22 18.32 .78 1958—Jan.. . 13.12 .97 1.88 15.97 .43 1963—Jan.. . 14.17 .07 3.26 18.50 Feb.. 13.21 .97 1.93 16.10 .40 Feb... 14.09 .05 .30 18.44 Mar.. 13.22 .97 1.97 16.16 .57 Mar... 14.12 .03 3.34 18.49 .86 Apr.. 13.28 .99 2.00 16.28 .54 Apr... 14.16 .02 3.37 18.55 .79 May. 13.32 1.01 2.03 16.37 .58 May.. 14.14 .02 3.40 18.55 June. 13.45 1.00 2.06 16.50 .72 Junep. 14.13 1.03 3.43 18.58 .92 July. . 13.44 1.02 2.09 16.55 .63 July. ., Aug.. 13.52 1.05 2.11 16.68 .63 Aug... Sept.. 13.58 1.01 2.12 16.70 .48 Sept... Oct.. 13.63 .99 2.12 16.74 .51 Oct.. . Nov.. 13.69 .98 2.13 16.80 .52 Nov... Dec. 13.73 .98 2.14 16.84 .54 Dec.. . v Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

902 FEDERAL RESERVE BULLETIN • JULY 1963 TECHNICAL NOTE Explanation of data on aggregate reserves. each type of deposit by each class of bank. Basic data for total and required reserves, The use of current reserve requirements beas well as for member bank borrowings used fore November 1962 changes the weights in computing nonborrowed reserves, are of time and demand deposits in the reserve published weekly in the Federal Reserve aggregates from those actually existing in statement and monthly in the Federal Re- earlier periods. Since October 1962 the serve BULLETIN. The three reserve aggre- basic data for these three series are the same gate series presented in Table 1 have been as the published figures. adjusted to eliminate estimated effects of 2. Adjustment for seasonal variation. changes in reserve requirements and of After elimination of effects of changes in reseasonal influences as follows: serve requirements, the aggregate series were 1. Reconstruction of basic data to reflect seasonally adjusted by a ratio-to-moving avcurrent reserve requirements. Required re- erage method known as the X-9 variant of serve figures were recomputed for the period Census Method II. These seasonal adjustshown before the latest change in reserve re- ments were reviewed and modified somequirements, January 1951 through October what to take account of movements in ex- 1962. This adjustment was made by multi- cess reserves and member bank borrowings plying time and net demand deposits by cur- in an attempt to improve the consistency rent reserve requirements applicable to these between seasonal factors computed indedeposits for each class of bank. The reserve pendently for the three series. Seasonal facrequirement for time deposits currently is tors shown in the table for the year 1963 4 per cent for all member banks, and for may be used to keep the seasonally adjusted net demand deposits the reserve require- series current as data for future months bements are 16.5 and 12 per cent, respectively, come available. The published monthly for reserve city and country banks. Required average figures for total and required rereserves so adjusted were combined with serves and the computed figures for nonactual excess reserves to obtain a total re- borrowed reserves should be divided by the serves series on the same basis. Nonborrowed corresponding seasonal factors to obtain reserves were reconstructed by subtracting seasonally adjusted data in each case. actual member bank borrowings from the Explanation of data on reserves by type of revised total reserves series. Fluctuations in deposit. Basic data used in constructing these revised data reflect the effects of shifts monthly average required reserves by type in deposits between classes of banks as well of deposit were derived from member bank as the actual fluctuations in deposits sub- reserve reports. These reports, which project to reserves. From 1951 through Octo- vide daily data in the necessary detail, are ber 1962, a number of changes were made also the basis for 4-week averages published in reserve requirements applicable to each regularly in the Federal Reserve BULLETIN type of deposit and to each class of bank. (p. 957). The four deposit series presented Most of these changes reduced required in Table 2 were constructed from comreserves and changed somewhat the propor- ponents of deposits subject to reserves as tions of total required reserves held against follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK RESERVES 903 1. Demand deposits adjusted—total de- were compared and modified slightly in demand deposits less U.S. Government de- termining final seasonal factors. mand deposits, demand balances due to The three demand deposit components banks, and cash items in process of collec- account for all deposits subject to demand tion. deposit reserve requirements. Figures for 2. Net interbank demand deposits—de- each category were multiplied by the curmand balances due to banks less demand rent effective reserve requirement against balances due from domestic commercial net demand deposits averaged for all membanks. ber banks (approximately 14.8 per cent for 3. U.S. Government demand deposits— the year ending May 1963). Similarly, the as reported. current average reserve requirement for time 4. Time deposits—as reported. deposits (4 per cent) was applied to time Each of these deposit series was first sea- deposits. The resulting series do not reflect sonally adjusted and then converted to ap- changes in reserve requirements. Nor do proximate required reserve equivalents on they incorporate reserve effects of shifts in the basis of current average reserve require- deposits between classes of banks. Consements for all member banks. Seasonal ad- quently, each of these reserve series reflects justments were computed by the ratio-to- seasonally adjusted movements in deposits moving-average methods known as the X-9 weighted according to current average reand X-10 variants of Census Method II. serve requirements for net demand and time The results of these two computer programs deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank Loans Secured by Stocks and Bonds A SURVEY of bank loans that have securi- secured loans, $6.2 billion were secured by ties as collateral was conducted as of Sep- shares traded on a national securities extember 26, 1962, by the Federal Reserve change and another $243 million was se- System. Estimates of the total number and cured principally by mutual fund shares. amounts of such loans at member banks, Unlisted stocks served as the principal based on a broad sample, indicate that se- collateral for $3.1 billion in loans. An accurities play a significant role in the exten- tively traded issue was the single most imsion of bank credit for a wide variety of portant collateral for $1.2 billion of this purposes. amount, or about 40 per cent.1 The main As of the survey date loans that were collateral for the remaining 60 per cent collateralized either wholly or partly by se- included public issues in which trading incurities and that were made to borrowers terest was insufficient to support wide pubother than brokers and dealers and banks lication of price quotations, as well as shares amounted to nearly $11 billion—or just in closely held corporations or companies under one-tenth of all loans outstanding at whose stock is not freely marketable. member banks. The estimated number of Only 10 per cent of the estimated colsuch loans exceeded 750,000. lateral loan total was secured by bonds Stocks were reported as principal col- other than those convertible into stock. The lateral for $9.6 billion, or 88 per cent, of amount secured by U.S. Government bonds, this total. An additional 3 per cent, or $286 $309 million, was small considering the million, was secured principally by bonds total volume held by the public. The remainconvertible into stocks. Among the stock- ing $792 million, secured largely by other bonds, included a small volume of loans NOTE.—The Survey of Member Bank Loans Col- for which securities constituted only seclateralized by Stocks and Bonds was made by the Federal Reserve System in cooperation with the Se- ondary collateral. curities and Exchange Commission's Special Study of Securities Markets, under the supervision of Lewis DESIGN OF SURVEY N. Dembitz, Associate Adviser, and J. Charles Par tee, Chief of the Capital Markets Section, of the Board's These estimates for all member banks are Division of Research and Statistics. The field work in derived from data for a sample of about connection with the survey was the responsibility of the Federal Reserve Banks. Programming for editing 25,000 loans representing all loans collatthe basic data, tabulating the results, and computing eralized by securities except loans to banks sampling variances was prepared by various staff members of the Board's Division of Data Processing. In addition to the present article, a summary of 1 In making this classification, issues were defined as survey results is appearing as an appendix item to actively traded if market interest was sufficient to Chapter X of the Report of Special Study of Securi- warrant their inclusion in any daily list of quotations ties Markets of the Securities and Exchange Com- (national or regional) of the National Association of mission. Both were prepared primarily by Ann P. Security Dealers or in the national and eastern weekly Ulrey of the Board's Capital Markets Section. list. 904 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 905 and those to brokers and dealers in securi- secondary collateral for almost all types of ties. Participating banks, selected for inclu- loans, 94 per cent of those reported in the sion on the basis of total loans outstanding survey fell into three categories—singleat the end of 1961, numbered 472. payment personal loans, business loans, and The sample was designed to give any loan loans for the purpose of purchasing or with securities collateral roughly 1 chance carrying securities. in 25 of being included. Individual loans In addition, the survey showed relatively were drawn into the sample by asking re- small amounts of instalment loans to indispondent banks to report all loans to cus- viduals (estimated at $214 million) and tomers whose last names started with desig- loans to financial institutions other than nated letters of the alphabet. Banks with banks ($331 million) that had securities as total loans of $200 million or more were collateral. A small residual category—1 per included in the sample automatically and cent of the sample—included principally were assigned alphabetic clusters designed loans to nonprofit institutions. to yield a 4 per cent sample of their loans. Possibly the most striking single finding Smaller banks had a decreasing likelihood was the extent to which single-payment of selection, but those chosen reported an loans to individuals for household and other increasing proportion of their loans. personal purposes appear to have had se- The survey itself showed that banks dif- curities as collateral. The estimated total fer widely in the proportion of their loans of these loans, involving nearly half a milthat have securities as collateral. Conse- lion individual borrowers, was $4.6 billion; quently, the necessity for selecting respond- this would represent almost 60 per cent of ents on the basis of total rather than all single-payment personal loans reported collateral loan volume resulted in substan- by member banks on their September 28, tial sampling variance. For a more detailed 1962 condition reports. description of sampling procedure and for The volume of loans for business purcomputations showing sampling variance, poses with securities as collateral (includsee the technical note at the end of this ing some loans to farmers) was also large, article. Detailed data appear in an appendix amounting to one-third of the estimated coltable. lateral loan total. But the $3.7 billion of Throughout the remainder of this article, credit in this category represented only a the term "loans outstanding"—unless other- small fraction of all business loans at memwise noted—refers to dollar amounts. ber banks. Of the $10.9 billion in loans secured by PURPOSES OF LOANS stocks and bonds, only $1.9 billion—just Each of the respondent banks was asked under 20 per cent—was identified as being to indicate the category to which each expressly for the purpose of purchasing or loan in its sample would be assigned in carrying securities. In their condition reits quarterly report of condition. The loans ports, banks class such loans separately and covered in this survey exemplify the wide in this article they are referred to as serange of purposes for which bank borrowers curity loans. may pledge securities as collateral. Although Not all security loans as here defined are securities are sometimes used as primary or subject to initial margin requirements under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 FEDERAL RESERVE BULLETIN • JULY 1963 the Board's Regulation U. As the Securi- that may be extended on any stocks pledged ties Exchange Act and this regulation pro- for a regulated loan. According to estimates vide, a stock-secured loan is regulated only based on the survey, $909 million—just if it is for the purpose of purchasing or under half of the security credit outstanding carrying stocks registered on a national se- at banks on the survey date—was subject curities exchange (referred to in this article to this regulation. as listed stocks) or shares in a mutual fund Variations in size of loan. Personal loans in customarily holding such issues. Bank loans general were much smaller than other types to purchase or carry unlisted stocks or other of collateral loans. These loans constituted securities, and loans for which securities more than 40 per cent of the dollar volume other than stocks make up the entire col- of all collateral loans, but they represented lateral, are not regulated. a much higher share of the number of loans Regulation U limits the amount of credit —65 per cent of the total. Loans to indi- TABLE 1 PURPOSE AND PRINCIPAL COLLATERAL OF BANK LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962 Secured by stocks Secured by bonds All Other unlisted col- Purpose lateral Mutual Con- U.S. loans Listed funds Other i Not vertible Govt. shares Actively Total actively traded traded Amount outstanding (millions of dollars) Single-payment personal... 4,613 3,040 115 1,046 455 591 47 77 289 Business 3,718 2,062 100 1,056 366 690 24 129 348 Security 1,949 795 18 789 288 501 203 48 97 Other: To financial institutions. 331 73 * 160 66 93 13 51 34 Instalment to individual. 214 143 8 52 18 33 * 4 8 Other 111 74 2 18 3 15 1 17 All purposes 10,936 6,187 243 3,120 1,196 1,924 286 309 792 Number (thousands) Single-payment personal... 488 340 27 90 34 56 12 15 Business 150 88 12 36 11 25 6 7 Security 69 29 2 28 9 19 1 6 Other: To financial institutions. 2 * Instalment to individuals 44 30 Other 2 1 All purposes 754 488 44 163 57 106 10 20 29 * Figure not significant. i Includes some loans secured principally by collateral other than stocks or bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 907 viduals written on an instalment basis, with the dollar total of personal credit collateraleven smaller balances in most instances, ized by securities. accounted for another 6 per cent. Principal collateral. Personal loans also dif- When the loans falling into each of the fered from those in other major purpose major purpose categories are distributed categories in that they were more likely to be according to loan size, this disparity in the secured by listed stocks. Such shares figured relative size of personal loans is shown more as the principal security for 66 per cent of directly, as can be seen in Chart 1. In each the dollar amount of personal loans, whether purpose classification most loans—from 80 single-payment or instalment. In contrast, they were reported as principal collateral for only 55 per cent of the business loans, 41 Chart 1 SINGLE-PAYMENT PERSONAL LOANS per cent of the loans for purchasing or carrytended to be smaller than other types ing securities, and 22 per cent of the loans SIZE OF COLLATERAL LOAN to financial institutions. in thousands of dollars COLLATERAL TYPES RELATED TO 100 AND OVER LOAN PURPOSE The contrasting ratios shown above suggest important differences among collateralized loans according to the type of security offered as collateral. These differences relate not only to purpose classification and terms but also to the types of banking offices making the loans. They appear to derive in large - 20 part from the fact that securities differ widely in the characteristics that determine PERSONAL BUSINESS SECURITY their acceptability as collateral. PURPOSE CATEGORY Since stock-secured loans made up nearly 90 per cent of all loans collateralized by to 93 per cent of the total number—were securities, the analysis which follows is confor sums of less than $25,000. For business cerned principally with the differing purand security loans, however, less than 20 poses and other characteristics of loans per cent of the dollar total was in this size secured by listed and by unlisted stocks. A category, while more than half went to borrowers in amounts of $100,000 and over. further distinction of importance, particu- In sharp contrast, not quite 30 per cent larly at certain banking offices, appears to of the credit outstanding as single-payment be whether or not there is an active trading personal loans represented sums of $100,- market for the main unlisted stocks pledged. 000 and over. The personal loan category, The value of securities collateral to both moreover, included a much larger propor- borrowers and banks in helping to establish tion of really small loans—those for less credit eligibility and terms stems, in large than $5,000. Such loans accounted for 66 measure, from the marketability of such colper cent of the total number of personal lateral. Since stock prices are often volatile, loans outstanding and for 12 per cent of the acceptability of stock collateral to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 FEDERAL RESERVE BULLETIN • JULY 1963 lender is much enhanced if the issues Loans on unlisted stocks were almost pledged are traded continuously and if fre- twice as likely to be for the purpose of purquent price quotations reflecting current chasing or carrying securities as those with transactions are available. listed collateral. Of the total credit secured In general, issues listed on the national by unlisted stocks, 25 per cent fell into this securities exchanges possess these character- classification, compared with 13 per cent for istics to a larger extent than unlisted shares. listed issues. This greater relative impor- Unlisted issues range from a number that tance at banks of security loans backed by are as widely held and continuously traded unlisted issues is to be expected. Bank loans as many listed issues to others in closely to carry unlisted issues are excluded by law held corporations where there is no market. from margin regulation whereas brokers are Only a rough distinction could be made for prohibited, by statute, from extending marpurposes of this survey between traded and gin credit on such stocks. untraded issues, but it is clear that unlisted stocks with widely published price quota- Chart 2 LOANS BACKED BY readily marketable stocks tions would, as a group, approach more were more likely to be personal loans closely the degree of marketability repre- LOAN PURPOSE CATEGORY Per cent of sented by listed stocks. tota amount Loans secured principally by listed stocks OTHER 100 were far more likely to be classed as per- SECURITY i sonal loans than were those secured by L m1 — 80 other stocks or bonds. In fact, single- BUSINESS •ii jjjggg payment loans to individuals made up 49 § m §§§ m §§& — 60 per cent of the total dollar amount of bank I; loans secured by listed issues compared with - 40 38 per cent of the loans secured by actively ySSSSSSa ^^^^H ^^^^^H TO^^^M traded unlisted stocks and only 31 per cent SINGLE-PAYMENT of those secured by other unlisted shares. PERSONAL III - 20 In this and other respects, actively traded unlisted stocks appear to occupy an inter- _ _ 0 ACTIVELY OTHFR mediate position between the other types of LISTED U T N R L A I D ST ED E D U U M N I L I I C S T T P E P D TYPE OF COLLATERAL equities. TOTAL OUTSTANDING About a third of all bank credit secured in billions of dollars 6.2 1.2 1.9 by stocks—both listed and unlisted issues— For listed stocks, on the other hand, stock represented business loans. Among loans on market credit is available at brokerage unlisted shares, however, those secured by houses as well as at banks and is subject to stocks not actively traded were somewhat the same margin requirements at both more likely to be made for business purposes places. At the end of last September customwhile those with active trading markets were ers' net debit balances with member firms somewhat less. This may indicate that stock of the New York Stock Exchange amounted in closely held corporations is sometimes to about $4 billion, more than four times used as collateral for business loans when it the estimated amount of security credit at would probably not be proffered or taken banks that had listed stocks as principal for other purposes. collateral. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 909 As can be seen from Chart 2, actively in the 1960 census—accounted for 62 per traded issues were no more likely than other cent of total bank loans of all types, but unlisted issues to serve as principal collateral they extended 75 per cent of the estimated for security credit, despite the presumably total of credit secured by listed stocks and greater market interest in the former. only a little less of that secured by actively traded unlisted issues. LENDING OFFICE PATTERNS RELATED Loans secured by other unlisted issues, TO TYPE OF COLLATERAL however, were less concentrated, and in Lending patterns at different types of bank- fact were relatively more important at banks ing offices proved significant when examined in smaller metropolitan centers. Such banks, separately for the various types of stock with only a 15 per cent share of the national collateral and appeared to reflect varying total for all bank loans, were responsible institutional practices. In tabulating the sur- for 22 per cent of the loans for which inacvey data, banking offices were classified as tively traded unlisted stocks were pledged as to geographic location; amount of total collateral. Banking offices located outside loans, of collateral loans, and of security metropolitan areas also had a higher proloans; and various internal loan ratios. The portion of loans secured by inactive stocks observations that follow are drawn from than of loans with either listed or more these tabulations. readily marketable equity collateral. Location of lending office. Use of stocks— In this connection it is worth noting that and especially listed stocks—as collateral loans on unlisted stocks at banks outside the for bank loans is primarily an urban prac- major metropolitan areas were far more tice. Banking offices in large metropolitan likely to be business loans than those in the areas—populations of 500,000 and over urban centers. Forty per cent of the "un- TABLE 2 LOCATION OF BANKING OFFICES MAKING LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962 (Percentage distribution of amounts of loans) Loans secured by stocks and bonds Total Unlisted stocks1 Location loans of Total all types (incl. Listed bonds stocks Not Actively and other) Total actively traded traded Large metropolitan areas: Main offices of money market banks. 28 26 21 35 37 33 Other central city offices 25 38 43 28 29 28 Suburban banks and offices 9 9 11 4 5 3 Small metropolitan areas, all offices... 15 14 11 20 18 22 Outside metropolitan areas, all offices. 19 11 11 11 8 13 Location of office not indicated 4 2 3 2 3 1 All offices 100 100 100 100 100 100 1 Except shares in mutual funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 FEDERAL RESERVE BULLETIN • JULY 1963 listed" loan total at banks in small metro- offices and in small cities as well. Fully half politan areas and 55 per cent of the total at of all credit secured by unlisted issues, rebanks outside metropolitan areas fell into gardless of lending office location, was exthe business category as against less than 30 tended at banking offices with total loans per cent for all offices in major metropolitan of $100 million or more. These same offices, centers. When loans secured by inactively with a 43 per cent share in total loans of traded issues were considered separately, the all types, accounted for only a third of the differences were even larger. loans with listed shares as collateral. Within the major urban areas, loans secured by unlisted stocks were more likely to TABLE 3 be obtained at the main offices of money SIZE OF BANKING OFFICES MAKING LOANS SEmarket banks than were those for which CURED BY LISTED AND UNLISTED STOCKS, listed collateral was provided.2 These offices SEPTEMBER 26, 1962 carried on their books 35 per cent of all (Percentage distribution of amounts of loans) bank lending on unlisted collateral, compared with only 21 per cent of the loans on Total loans at office Listed Unlisted 1 (millions of dollars) listed shares. In turn, loans on listed stocks were strik- All offices ingly concentrated at other central city banks and branch offices. These offices, with Less than 5 28 11 5-25 20 18 a 25 per cent share of total bank loans, were 25-100 18 21 100 and over 33 50 responsible for 43 per cent of the loans secured by listed stocks—more than twice All offices 100 100 the proportion outstanding at main offices of Other central city offices 2 money market banks. Suburban banks accounted for better than 10 per cent of all Less than 5 38 15 loans on listed issues but were not a signifi- 5-25 17 20 25-100 24 29 cant source of credit on unlisted stocks. 100 and over 21 37 Size of lending office. Small banking of- All offices 100 100 fices were responsible for a substantial share of the loans secured by listed issues, but large 1 Excludes shares in mutual funds. 2 Excludes main offices of money market banks. offices accounted for a larger proportion of loans secured by unlisted stocks. In part, At central city banks other than money this reflects the concentration, already noted, market main offices, the largest offices— of loans with unlisted collateral at large main those with $100 million or more in total offices, but it was true at other central city loans—accounted for 37 per cent of the total loaned on unlisted issues as compared with only 21 per cent of that on listed issues. 2 Money market banks are defined as large banks ($200 million or more in deposits) that manage their Conversely, the most striking evidence of money position so as to minimize excess reserves, by concentration at small offices of lending on dealing regularly in markets for Federal funds, Treasury bills, bankers' acceptances, and credit for brokers listed stocks occurred at central city offices and dealers in securities. In this article this classifi- with loan totals of less than $5 million. Of cation refers only to the main offices of such banks in large metropolitan areas. all credit secured by listed stocks at other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 911 central city offices, offices in this size class cant source of credit—further evidence of extended 38 per cent, though they accounted their preference for listed stocks as collateral. for only 15 per cent of the loans with un- The incidence of large loans at small offices listed security. probably reflects the fact that many offices Both the concentration of loans with falling into the smallest size category are in unlisted collateral at large banking offices fact branches of larger banks. Branches of and that of loans against listed securities the 50 largest banks reporting in the survey at small offices may be partly attributable to accounted for about 80 per cent of the credit the fact that loans secured by unlisted stocks tended to be larger than those with listed Chart 3 SMALL BANKING OFFICES were more important collateral. More than half of the unlisted lenders on listed stocks for loans in all size classes total took the form of loans for $100,000 SIZE OF OFFICE and over whereas loans of this magnitude Total loans, LISTED UNLISTED Per cent of accounted for only 39 per cent of the total in millions of dollar total amount 200 AND OVER 100 amount secured by listed issues. Conversely, not quite 25 per cent of the loan total secured by unlisted shares was made up of loans for less than $25,000, but 33 per cent of the loans with listed collateral fell within that size range. Larger loans are, of course, more likely to be made at larger banking offices. This size differential, however, does not appear to be the sole—or even the major— explanation for differences among lending offices according to type of stock pledged. When loans secured by listed and unlisted Thousands of dollars stocks, respectively, are cross-classified by SIZE OF LOAN loan size and size of lending office, it is extended by central city offices with total clear that for every size category of loan, loans of less than $5 million. small offices—those with total loans of less The substantial concentration of unlisted than $5 million—accounted for a much collateral at really large offices, on the other larger percentage of all loans with listed hand, suggests greater familiarity with such collateral than they did of the loans with securities, wider discretion in granting loans unlisted collateral. Chart 3 shows how uni- than branch offices have, and the existence form this pattern was. Even for very small of established procedures for determining loans, small offices supplied only 26 per and checking collateral value. cent of the credit extended against unlisted Consistent with this pattern is the related collateral compared with 44 per cent of that finding that credit on unlisted stocks was for which listed issues were the principal more likely to be extended by banking offices security. that had on their books a substantial abso- For large loans on listed issues, more- lute amount of loans collateralized by securiover, these small lenders remained a signifi- ties. Offices reporting total collateral loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 FEDERAL RESERVE BULLETIN • JULY 1963 of $10 million or more accounted for 54 and only 20 per cent of that secured by unper cent of the credit on unlisted stocks but listed collateral. only 38 per cent of that on listed stocks. On the other hand, banking offices with less than LENDING OFFICE PATTERNS RELATED $1 million in collateral loans carried only TO LOAN PURPOSE 15 per cent of the loans on unlisted stocks Comparisons between the purpose disthough they supplied 23 per cent of the tribution of loans secured respectively by credit on listed stocks. listed and by unlisted stocks at different Collateral loan ratios. Though offices mak- types of lending offices reflect both instituing loans on unlisted stocks were likely to tional preferences among collateral types handle a large absolute volume of collateral and patterns in loan demand. lending, such credit rarely constituted as For all geographical categories of lendmuch as 30 per cent of their total loans. ing office, single-payment personal loans Lenders with this high a ratio of collateral made up close to half of the loan total seto total loans accounted, collectively, for cured by listed stocks and a varying but only 11 per cent of the total credit outstand- smaller proportion of that with unlisted coling on actively traded unlisted issues and lateral. In each instance, a somewhat larger barely 6 per cent of that on other unlisted share of loans with actively traded collateral issues. was classed as personal than was true for On the other hand, offices that made a those secured by other unlisted issues. practice of taking securities as collateral It is significant, however, that at central for a high percentage of their loans—30 city offices other than the main offices of per cent and over—were responsible for a money market banks single-payment persubstantial share of the credit secured by sonal loans made up 49 per cent of all loans listed stocks. Although they accounted for secured by readily marketable unlisted isonly 4 per cent of total member bank loans sues—as high a proportion as they did of on the survey date, they supplied nearly a the loans secured by listed stocks. The comquarter of all loans secured by listed stocks: parable percentage among loans secured by other unlisted issues was only 35 per cent. Collateral loans Listed Unlisted stocks— This is thoroughly consistent with the ap- As per cent stocks Actively of total loans traded Other parent stress on marketability of collateral (per cent of loans) by this group of lenders. Less than 10 34 37 40 Other variations in the distribution of 10-30 42 51 54 30 and over 24 11 6 loans by purpose category appear to reflect All offices 100 100 100 the character of loan demand at various The most important concentration of banking offices. At main offices of money lenders with high collateral loan ratios oc- market banks, business loans were relatively curred among central city offices other than less important as a purpose category than the main offices of money market banks. at most other banking offices, probably be- Among the loans made by banks in this cause business loans handled through these group, offices reporting collateral ratios of offices were less likely to have securities of 30 per cent and over accounted for 47 per any type as collateral. The greater relative cent of all credit secured by listed stocks importance of business loans on unlisted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 913 stocks at banks outside the major metro- collateral loans fell into the security catepolitan areas was noted earlier. gory. Loans for the purpose of purchasing or As might be expected, and as Chart 4 carrying securities were very likely to be shows for the three main purpose categocarried at money market main offices, where ries, banking offices in the smallest size they made up a larger than average share group were a much more important source of credit on listed than unlisted collateral in of the loan volume regardless of collateral— all purpose categories. This reflects once 33 per cent of all loans on unlisted stocks again the greater acceptability of such coland more than a fifth of all loans on listed lateral at these offices. issues. Although the proportion of security Among the unlisted shares taken as prinloans to all loans with listed collateral was cipal collateral at these small offices, actively lower than the comparable ratio for unlisted issues, it was higher than at any other type of banking office. LARGE BANKING OFFICES were more important The concentration of the security loans lenders on unlisted stocks for three main purposes at main offices appears to be a function of SIZE OF OFFICE office size as well as location. Large bank- Total loans, in millions of dollars ing offices—with total loans of $100 million and over—played a major role in supply- LESS THAN S ing this type of credit. They accounted for more than 50 per cent of the total on listed stocks and for 65 per cent of that on unlisted, as Chart 4 shows. These large offices were much less important in furnishing stock-secured credit for personal and business purposes. Extension of security credit tended to be concentrated in large banks which handled these loans in volume but at which only a PERSONAL BUSINESS SECURITY small fraction of business and personal loans PURPOSE CATEGORY were backed by securities collateral. In fact, traded issues appeared to be substantially more than a third of all security credit was more acceptable than less readily marketextended by offices that classified over half able issues as collateral for single-payment of their collateral loans as security loans. personal loans. Such offices accounted for On the other hand, most personal and 20 per cent of the loans on such issues combusiness loans with securities as collateral pared with 29 per cent of all loans on listed were reported by offices that made rela- issues and only 12 per cent of those on istively few security loans. More than 60 per sues not actively traded. No comparable cent of the business and personal loans on distinction appeared between actively traded listed stocks—and 50 per cent of those on and other unlisted collateral for business unlisted issues—originated at banks which and security loans. reported that less than 5 per cent of their Thus, a primary concentration of per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 FEDERAL RESERVE BULLETIN • JULY 1963 sonal loans secured by listed stock at these listed stocks, 56 per cent of the total was small urban offices—predominantly branch due on demand, and only 8 per cent maoffices of large city banks—was reinforced tured after 8 months. by a secondary concentration of personal In the case of single-payment personal loans secured by actively traded unlisted loans, a further distinction is worth noting. issues. This supports the interpretation that Of such loans, half of those secured by personal loans at many such offices were listed issues were written as demand loans customarily made more readily or on more as compared with 42 per cent of those with favorable terms if acceptable collateral was unlisted collateral. However, when the latter available. This would also account for the were further classified to distinguish actively higher incidence of loans on listed stocks at traded issues from the rest, 47 per cent of small offices with high ratios of collateral the loans with actively traded collateral to total loans. were written on a demand basis but only 38 per cent of the others were. In this respect, OTHER LOAN CHARACTERISTICS RELATED as in those already noted, personal loans se- TO COLLATERAL TYPE cured by actively traded unlisted shares Data on loan characteristics supplied in the more nearly followed the pattern for loans survey have made it possible to classify each on listed stocks. loan according to specified maturity, dura- There may be little practical distinction tion of borrower's indebtedness, and regu- between demand loans and those with fixed latory status. These data round out the pic- maturities. More than 90 per cent of all the ture already presented of a divergence in credit outstanding which specified a fixed lending patterns according to the type of maturity could, in fact, be called by the collateral pledged. bank in the event of a substantial decline Maturity. Most loans reported in the sur- in the market value of the collateral. vey were either demand loans or had rela- Duration of indebtedness. Although most tively short fixed maturities. Of all credit loans in the survey were on the books either secured by listed stocks, 50 per cent was in as demand loans or with short fixed maturithe form of demand loans, and another 25 ties, more than 75 per cent of the outstandper cent carried a specified maturity of less ing credit was to borrowers who had been than 4 months. Less than 10 per cent of indebted on a predecessor collateral loan. the total had a fixed maturity of 8 months Indeed, on loans involving 53 per cent of or more. For credit secured by unlisted the credit on listed stocks and 44 per cent stocks, on the other hand, only 31 per cent of that on unlisted, the borrower had been of the amount outstanding had been written continuously indebted on this or a predeceson a demand basis, and maturities consist- sor loan since prior to 1960. Of the loans ently tended to be longer. outstanding on the survey date, only 15 per This difference in treatment by collateral cent of the credit secured by listed stocks type was particularly notable for security and 23 per cent of that secured by unlisted loans, where only 25 per cent of those with had first come onto the books in 1962. unlisted stocks as collateral were demand The accompanying tabulation summarizes loans and 32 per cent had maturities of 8 for each of the major purpose categories months or longer. For security loans on what proportion of the loans outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 915 on the date of the survey was to borrowers lateral, a small amount—$86 million—was to whom credit secured by stocks or bonds shown as unregulated. This represented had been outstanding (not necessarily in loans whose proceeds were applied to purthe same amount) since prior to 1960. chasing or carrying unlisted stocks or bonds. Comparisons of the $909 million of regu- Secured by— Purpose category Listed stocks Unlisted stocks lated loans and of the $1,040 million of un- (per cent) regulated loans according to characteristics Single-payment personal 57 50 showed that distributions of the two groups Business 49 43 had similar patterns for size of loan but that Security 56 41 there was considerable difference with re- Total 53 44 gard to both maturity and duration of in- Of the loans remaining on the books for debtedness. long periods of time, with or without re- Regulated loans were much more likely newal, a higher proportion tended to be to be written as demand loans than were demand loans. Most demand loans origiloans for the purpose of purchasing or carrynating in 1960 or 1961 had been rewritten ing unlisted (or nonequity) securities—55 within 6 months of the survey date; most of per cent as compared with 30 per cent. those on the books since before 1960 had Relatively long fixed maturities (8 months not. Loans secured by bonds were just as or more) were more common among the likely to have been renewed as those secured unregulated group—25 per cent versus 11 by stocks. per cent for regulated loans. Regulatory status. The distinction between Borrowers subject to margin regulations regulated and unregulated security credit is were much more likely to have carried their not always determined by the character of security loan indebtedness continuously for the principal collateral. Thus, about 20 per a longer period—since before 1960 in cases cent of the regulated loan total in the survey accounting for 58 per cent of the regulated was secured principally not by listed stocks total. The comparable figure for the unor mutual fund shares but by other collateral regulated security loan category was only —bonds or unlisted stocks. Such loans are 35 per cent. subject to regulation if listed stocks make In each of these respects, unregulated up any portion of the securities being carried security credit conformed more closely to by the loan and if any stocks (listed or unthe loan characteristics generally observable listed) serve as any part of the collateral.3 for credit extended upon unlisted stock col- Of the total amount of security loans for lateral, suggesting once again that the type which listed stocks were the principal colof collateral pledged is the most important 8 The fact that a loan is subject to margin require- determinant of loan characteristics and ments does not, however, affect the loan value of nonterms. equity collateral. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 FEDERAL RESERVE BULLETIN • JULY 1963 TECHNICAL NOTE SAMPLING PROCEDURES option of sampling banking offices in their Method of sampling banks. The sample system. This was done in a manner exactly of member banks included in this survey analogous to that used in selecting the samwas based on total loans outstanding on ple of banks. December 31, 1961. Loan totals for that Method of sampling loans within banks. date were cumulated for each Federal Re- For the 84 banks falling into the sample with serve district, from largest to smallest mem- certainty, each bank was assigned two alphaber bank, so that there was for each bank betical clusters drawn at random from a list a "cumulative loan figure" equal to the sum of "alphabetical cluster limits" that divided of loans for that bank and all larger banks the alphabet into 50 clusters, each representin the district. In drawing the sample, a ing about 2 per cent of all names. Thus the series of numbers was selected of which the combined sample for these banks was about first was a random number between 1 and 4 per cent. 200 million; the next was this figure plus For other banks, the fraction giving the 200 million, followed by further figures at bank's probability of selection for the sample intervals of 200 million. Each bank whose was multiplied by 25 and the result rounded cumulative loan figure fell next above a to the nearest whole number. This number number in this selector series was included would fall from 1 to 25 and was designated in the sample. as P. The Reserve Banks were provided with All banks with loans of $200 million or 24 different listings of alphabetical clusters more thus fell into the sample with certainty; dividing the alphabet into various numbers for banks with loans of $50 million to $200 of equal segments—ranging from 2 (a 50 million, the probability of inclusion was per cent sample) up to 25 (a 4 per cent given by the ratio between the bank's total sample). The listing of segments of the alloans and the sampling interval of $200 mil- phabet used for each bank depended on the lion; the bank weight used in blowing the P calculated for that bank, and was used in sample to universe proportions was the sam- selecting a cluster at random. The bank then pling interval divided by the bank's loan reported on loans to customers whose names total. For banks with loans of less than $50 fell within the selected cluster. million, the increment of selection was re- To give a concrete example for a bank duced to $100 million, so that each bank with loans of $150 million: selected in this size range represented loans totaling $100 million. = 19 200 This procedure produced a sample of 472 out of 6,100 member banks. Eighty- From the table of alphabetical cluster four banks fell into the sample with cer- limits, the group dividing the alphabet into tainty. 19 clusters would have been used. The sam- Most respondent banks that had branch ple cluster for the bank would have been offices reported on loans at each of their chosen by selecting from a table of random branches as well as the main office. Large numbers a number between 1 and 19. If, branch systems, however, were given the for example, the number 7 were drawn, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 917 bank's reporting segment would have been each of these figures, the chances are two "Gay, Charles" to "Hanke, Melvin C." out of three that the actual dollar amount The probability of drawing a particular of loans outstanding in the collateral class loan account in any bank was 1/P, except on the survey date fell within a range of ± for loans of $1 million or more which were one standard error around the estimated reported in full if they met the survey defini- figure. tion. For certainty banks, the bank weight Table B gives similar computations for was 1, and the probability of an account fall- loan estimates in the major purpose cateing into the sample was exactly 4 per cent; gories, cross-classified by the most imporin blowing the sample to universe propor- tant collateral types. tions the weight assigned was 25. For other B. STANDARD ERROR OF ESTIMATE FOR LOANS banks, it was the bank weight (selection CLASSIFIED BY PURPOSE CATEGORY AND SELECTED interval -f- loan total) times P. In most TYPES OF COLLATERAL instances, this combined weight was also Amounts in millions of dollars) close to 25, but for very small banks it Principal collateral could run much higher. Purpose category Listed Unlisted All stocks stocks! types SAMPLING VARIABILITY Single-payment personal Shown below are variance computations loans: Estimated amount 3,040 1,046 4,613 for collateral loan totals estimated from the Standard error: Amount 154 69 196 sample, classified according to the principal Per cent 5.1 6.6 4.2 Business I oans: collateral pledged and purpose category of Estimated amount 2,062 1,056 3,718 Standard error: loan—the two underlying classifications Amount 174 60 204 Per cent 8.4 5.7 5.5 used in the survey. Security loans: Table A gives the estimated dollar amount Estimated amount 795 789 1,949 Standard error: of loans in each collateral category together Amount 96 66 146 Per cent 12.1 8.4 7.5 with one standard error of estimate, ex- 1 Excluding shares in mutual funds. A. STANDARD ERROR OF ESTIMATE FOR LOANS Table C gives standard errors for the per- CLASSIFIED BY PRINCIPAL COLLATERAL centage distribution among purpose categories of all loans within each principal Standard error of estimate Estimated loan total collateral type. In this instance, the standard Principal collateral (millions Amount of dollars) (millions Per cent error is expressed as a range of percentage of dollars) points around the estimated proportion of Listed stocks 6,187 275 4.4 total loans attributed to each purpose classi- Mutual fund shares 243 18 7.4 Other unlisted stocks.... 3,120 110 3.5 fication. It will be noted that these com- Convertible bonds 286 68 23.8 U.S. Govt. bonds 309 38 12.3 Other bonds 792 51 6.4 parative percentage distributions, which All types 10,936 347 3.2 were of primary significance in interpreting survey results, show less sampling variabilpressed both as an absolute dollar amount ity for key cells than do the estimates of and as a percentage of the loan figure. For absolute loan magnitudes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 FEDERAL RESERVE BULLETIN • JULY 1963 C. LOANS CLASSIFIED BY PURPOSE AND SELECTED TYPES OF PRINCIPAL COLLATERAL: DISTRIBUTION AND STANDARD ERROR (Distribution in per cent; standard error in percentage points) Listed stocks Unlisted stocks All types of securities Purpose category Distribution St e a r n r d o a r rd Distribution Sta e n rr d o a r rd Distribution St e a r n r d o a r rd Single-payment personal 49 2.0 34 1.9 42 1.4 Business 33 2.0 34 1.5 34 1.3 Security 13 1.4 25 1.8 18 1.2 Other: To financial institutions I .1 5 .6 3 .3 Instalment to individuals 2 .4 2 .3 2 .3 Other 1 .6 1 • .3 All purposes 100 100 100 • Less than Moo of I percentage point. APPENDIX TABLE BANK LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962 A. PURPOSE OF LOAN RELATED TO PRINCIPAL COLLATERAL Secured by stocks Secured by bonds All Other unlisted Purpose collateral loans Listed M s f h u u a n t r u d e a s l Total A tr c a ti d v e e d ly a t c r N t a i d v o e e t d ly ve C r o ti n b - le G U o . v S t . . Other i Percentage distribution of amount Single-payment personal 42 49 47 34 38 31 16 25 37 Business 34 33 41 34 31 36 8 42 44 Security 18 13 7 25 24 26 71 16 12 Other: To financial institutions 3 1 * 5 6 5 4 16 4 I O n t s h t e a r lment to individuals 2 1 2 3 2 1 2 * 2 • * 2 1 All purposes. . . . 100 100 100 100 100 100 100 100 100 Percentage distribution of number Single-payment personal 65 70 61 55 60 52 38 59 51 Business 20 18 26 22 19 24 7 32 23 Security 9 6 3 17 16 18 50 3 19 Other: To financial institutions * * « * 4 * Instalments to individuals 6 6 8 5 5 5 1 5 6 Other * * * * * 1 * All purposes 100 100 100 100 100 100 100 100 100 • Figure not significant. 1 Includes loans secured principally by collateral other than stocks and bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 919 BANK LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962—Continued B. SIZE OF LOAN RELATED TO PURPOSE (Percentage distribution within selected purpose categories) S p i e n r g s l o e n -p al a y lo m a e n n s t Business loans Security loans All l o c a o n ll s a t 1 eral Size of loan (thousands of dollars) a D m o o ll u a n r t Number a D m o o ll u a n r t Number a D m o o l u la n r t Number a D m o o l u la n r t Number Less than 5 12 66 3 39 3 43 8 59 5-25 29 27 17 40 15 37 22 29 25-100 29 6 28 16 26 16 27 9 100-250 13 1 18 3 24 5 16 2 250-1 000 12 * 20 1 19 1 16 1 1,000 and over 4 * 13 * 13 * 10 * All sizes 100 100 100 100 100 100 100 100 * Figure not significant. 1 Includes categories not shown. C. SIZE OF LOAN RELATED TO PRINCIPAL COLLATERAL Secured by stocks Secured by bonds Secured by stocks Secured by bonds All All Size of loan collat- collat- (thousands of dollars) eral Mutual Other Con- eral Mutual Other Conloans Listed fund un- vert- U.S. Other i loans Listed fund un- vert- U.S. Other 1 shares listed ible Govt. shares listed ible Govt. Amount outstanding (millions of dollars) Number (thousands) Less than 5 810 538 54 167 7 22 24 449 302 31 87 3 11 14 5 25 2,392 1,467 105 579 59 69 112 221 137 11 53 5 7 9 2 1 5 0 - 0 1 - 0 2 0 50... ....... . 2 1 , ,7 9 9 8 0 2 1,7 9 7 5 6 5 6 1 4 6 7 5 7 2 2 4 9 7 2 6 8 3 2 7 1 1 9 8 6 2 6 1 6 2 40 7 2 1 4 7 2 1 2 * 4 1 250-1,000 1,821 965 627 47 46 134 4 2 2 * * * 1,000 and over 1,141 486 5 451 6 50 144 1 All sizes 10,936 6,187 243 3,120 286 309 792 754 488 44 163 10 20 28 Percentage distribution of amount Percentage distribution of number Less than 5 7 9 22 5 2 7 3 60 62 72 54 28 57 48 5 25 22 24 43 19 21 22 14 29 28 24 33 47 33 32 25 100 27 29 26 25 32 27 25 9 8 4 11 19 9 15 100-250 16 15 7 17 27 12 23 2 1 2 5 2 5 250-1 000 17 16 20 16 16 17 * * 1 1 1 1 1,000 and over 10 8 2 14 2 16 18 * * * * 4c * * All sizes 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Figure not significant. 1 Includes some loans secured principally by collateral other than stocks or bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 FEDERAL RESERVE BULLETIN • JULY 1963 BANK LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962—Continued D. MATURITY OF LOAN RELATED TO PURPOSE AND COLLATERAL (Percentage distribution of amounts of loans) S p i e n r g s l o e n -p al a y l m oa e n n s t Business loans Security loans All collateral loans Maturity Listed Unlisted Listed Unlisted Listed Unlisted Listed Unlisted Demand loan 51 42 44 27 56 25 50 31 Less than 120 days . 25 28 28 24 18 12 25 21 120-239 . . 17 19 13 23 18 31 15 24 240-394 .. 4 9 7 12 4 21 5 14 395 days and over 1 2 6 12 4 11 4 9 All maturities 100 100 100 100 100 100 100 100 E. PURPOSE AND SIZE OF LOAN RELATED TO SIZE OF LENDING OFFICE (Percentage distribution of amounts) All offices Purpose or size category On listed stocks Selected purpose categories: Single-payment personal. 100 Business 100 Security 100 All collateral loans1.. 100 Size of loan (in thousands of dollars): Less than 5 100 5-25 25-100 100-250 250-1 000 1,000 and over All size categories.... * Figure not significant. 88888 Size of office (total loans, in millions of dollars) Less than 5 5-25 25-100 100-200 200 or more On un- On On un- On On un- On On un- On On un- On On unlisted listed listed listed listed listed listed listed listed listed listed stocks stocks stocks stocks stocks stocks stocks stocks stocks stocks stocks 100 29 16 21 20 18 21 11 15 20 28 100 30 12 21 25 19 23 13 13 16 27 100 16 5 14 10 18 21 13 18 39 47 100 28 11 20 18 18 21 12 15 21 35 100 44 26 28 31 16 23 5 10 7 10 100 38 21 26 29 19 24 7 12 10 14 100 30 14 25 23 20 26 10 17 15 20 100 15 7 22 22 24 27 15 13 24 31 100 25 4 4 9 13 15 19 24 38 48 100 7 3 7 9 7 19 8 58 81 100 100 28 11 20 18 18 21 12 15 21 35 1 Includes categories not shown. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK LOANS SECURED BY STOCKS AND BONDS 921 BANK LOANS SECURED BY STOCKS AND BONDS, SEPTEMBER 26, 1962—Continued F. CHARACTERISTICS OF LENDING OFFICE AND OF LOAN RELATED TO LOCATION OF LENDING OFFICE (Percentage distribution of amounts of loans) Large metropolitan areas Small Out All offices1 Main offices metropolitan metrop>olitan of money Other central Suburban banks areas—all offices areas—a11 offices Characteristic market banks city offices and offices On On un- On On un- On On un- On On un- On On un- On On unlisted listed listed listed listed listed listed listed listed listed listed listed stocks stocks stocks stocks stocks stocks stocks stocks stocks stocks stocks stocks Size of lending office (total loans, in millions of dollars): Less than 5 28 11 38 15 32 23 12 5 48 39 5_25 20 18 * * 17 20 29 43 33 23 43 49 25 100 18 21 4 3 24 29 19 18 38 47 8 12 100-500 12 15 50 48 19 36 20 16 17 25 • * 500 and over 21 35 45 49 2 All loans 100 100 100 100 100 100 100 100 100 100 100 100 Ratio of collateral to total loans at banking office (per cent): Less than 10 34 39 53 41 17 27 38 42 45 39 44 57 10-30 42 53 45 59 36 53 48 44 52 58 43 35 30 and over 24 8 2 47 20 14 15 3 3 13 8 All loans ... 100 100 100 100 100 100 100 100 100 100 100 100 Selected purpose categories: Business 33 34 23 27 37 29 23 33 34 40 40 34 Security 13 25 22 33 12 25 11 15 11 25 4 55 Single-payment personal. 49 34 50 25 47 41 54 47 52 35 50 8 All collateral loans2 .. 100 100 100 100 100 100 100 100 100 100 100 100 Specified maturity: Demand 50 31 47 26 46 29 65 37 42 29 64 46 Less than 120 days 25 21 21 19 33 25 17 24 28 23 12 15 120 239 15 24 18 26 13 22 12 31 20 27 13 16 240 394 5 14 7 16 4 13 3 3 7 14 f 11 395 days and over 4 9 7 12 3 8 1 2 2 5 4 10 All maturities . ... 100 100 100 100 100 100 100 100 100 100 100 no * Figure not significant. 2 Includes categories not shown. 1 Includes offices for which location was not indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Bank Examiner Looks at Agricultural Lending by BRENTON C. LEAVITT SIGNIFICANT CHANGES have taken place in years 1953 through 1962, other instituagricultural lending during the past three tional lenders as a group experienced decades. As a result of improved communi- larger percentage increases in both types of cations and better information, many farm- credit during this period. ers now have access to national credit mar- It is not clear why this has happened. kets; they are no longer confined to purely Have bankers found the competition from local sources. Also, many lenders besides other lenders—both governmental and noncommercial banks now make credit availa- governmental—too keen? Are farmers findble to farm operators. ing that their credit needs Despite these changes, can be filled more easily or STAFF PAPERS—In addicommercial banks continue at better terms by other tion to its regular contents, to be an important source the Federal Reserve Bulletin lenders? Are other lenders of agricultural credit. Data from time to time includes spe- more aggressive in seeking collected in the 1960 Sam- cial papers on economic and farm business? Are other ple Survey of Agriculture financial subjects. These palending fields more profitpers, prepared originally for conducted by the Bureau of the information of the Board able? Are agricultural credthe Census showed that of Governors by individuals on its becoming so compliabout a fourth of all farm its staff, are selected for pub- cated that bankers are debt was owed to commer- lication because of their genavoiding them? cial banks. Other agencies eral interest. The authors are Or is the attitude of the responsible for the analyses cooperating in the 1960 and conclusions set forth. bank supervisory authori- Sample Survey were the ties in any way responsible? Department of Agriculture, For example, it came as an the Farm Credit Administration, and the unpleasant surprise to be informed recently Federal Reserve System. that numerous bankers are reluctant to ex- However, according to one of the findings tend farm production credit except at shortof the Survey as reported in the December term because they think that Federal bank 1962 BULLETIN, farmers who used banks examiners would disapprove of longer-term as a major source of either real estate or production loans. This belief is particularly non-real-estate credit made relatively little unfortunate, for intermediate-term credit— use of the banks' ability to extend both kinds extended under a carefully worked out plan of credit. Although banks can tailor credit —often can be the most useful type of credit, terms to fit individual needs, it is apparent in that it can be used by the borrower to that farmers were using banks for either improve his land, or acquire more stock or major real estate credit needs or for shortermachinery. The loan then can be repaid term credit—but not for both. Furtherfrom the increased earnings these improvemore, while banks expanded their outstandments should enable him to achieve. ing farm real estate and non-real-estate loans by 86 and 88 per cent, respectively, in the Commercial banks, because of their im- 922 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AGRICULTURAL LENDING 923 portant role in agricultural lending, should loans are most desirable when they are used lead in developing ways in which such credit for improvements such as increasing soil can be extended safely to those borrowers fertility and new livestock facilities; more who can use it to advantage. Once such new livestock; fencing, ditching, or irrigation imapproaches have been developed, bank ex- provements; and machinery and equipment. aminers must appraise not only the risk in- The purpose of these programs of improvevolved in single loans but also determine ment or expansion is to increase the earning what is the risk in the more comprehensive capacity of the farm, but the increase in inlending programs. come may not be forthcoming for some time. The discussion in this paper is mainly de- Thus when a banker makes a loan of this voted to the problems the farmer and the type, in all probability he is establishing a banker will have to solve in arriving at mu- relationship between himself and the bortually satisfactory programs for intermedi- rower that may continue for a number of ate-term production credit and those the years. bank examiner will face in assessing such The total capital involved may be large. credits. This is a relatively new and grow- Studies of improvement programs carried ing type of agricultural credit. Thus the prin- out on individual farms over a period of ciples involved are less familiar than those years reveal that their cost frequently exlong used in advancing short-term credit for ceeds the original investment in real estate current operations or long-term credit for and non-real-estate assets. Farmers and the acquisition of real estate. ranchers who can borrow and repay such debt and be in a better financial position PURPOSE OF INTERMEDIATE-TERM after having done so should be able to obtain CREDIT credit from their commercial banks. In extending loans to farmers, either to the According to Glenn E. Heitz, Deputy successful operator or to the striving young Governor and Director of the Cooperative farmer whose background and training indi- Bank Service, Farm Credit Administration,, cate ability to manage a successful operathe following are what farmers want from tion, lenders vary the maturities of the loans their source of credit: depending on the use for which the funds 1. An understanding, permanent, and are advanced. dependable source of credit. It is usual to advance short-term credit 2. A credit plan that fits the farm plan for current operating expenses, with the loan by providing the right amount of money to be repaid when the crops or livestock on when needed and scheduling repayments which it is extended are marketed. Longterm credit now is used generally to finance when products are marketed. the purchase of real estate, and its repay- 3. A credit plan that charges interest on ment tends to depend on net earnings money only when it is actually used. derived over a period of years. 4. A credit plan that permits farming ac- Between these types lies intermediate- cording to sound management practices. term production credit, which is extended Although intermediate-term credit is of for periods of from 1 to 7 years. It is used extreme importance to agriculture, it is also* most often for purchasing assets that have a the most difficult credit for bankers to exproductive life of more than 1 year. These tend and for examiners to appraise. Never- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 FEDERAL RESERVE BULLETIN • JULY 1963 theless, many banks are making such loans, not from capital. Consequently, an analysis and examiners are finding such loans to be of cash flow is important. Depreciation is an sound credits appropriate for the loan port- important factor in such flows. As the investfolios of banks. ment in machinery and equipment increases, depreciation charges become a source of TECHNIQUES OF LENDING funds to be taken into account when assess- A study of successful intermediate-term ing repayment capacity. credit programs—such as those cited in Because the risk in extending intermedi- 1957 by the Agricultural Commission of the ate-term credit is greater than in many other American Bankers Association in a pam- kinds of credit, lenders must be certain to phlet, Intermediate-Term Bank Credit for obtain all the information they need to serv- Farmers—reveals that there are no easy ice these loans properly. As with all business general solutions to intermediate-term credit loans, both borrower and lender must keep programs for farmers. Such programs a necessary minimum of records. usually involve a complexity of credit ad- Having agreed that a farm business has vances, notes, collateral instruments, debt enough future to justify a loan, the bank consolidations, and sharp fluctuations in should start a credit file. This file should concredit demand that are difficult to foresee. tain mortgages, annual operating state- If improvement or capital investment pro- ments, annual financial statements, and grams are to be successful from the view- comments about the borrower's progress as points of the borrower, the lender, and the determined periodically in discussions with public authority—that is, the bank super- the borrower. These should be obtained not visory bodies—certain determinations must for the convenience of the bank examiner, be made by the lender with the full coopera- but because they are essential if the increastion of the borrower. ingly complex and larger credits required First, the lender must be able to estimate by agriculture are to be made on a basis how much the earning capacity of the farm satisfactory to the borrower and with miniwill increase after the capital investment pro- mum risk for the lender. gram is completed. Second, he must be able Sometimes the lender will be taking a calto determine when the program will be com- culated but greater than normal risk. If so, pleted and, more important, when the in- he may wish to reduce the risk by shortencreased earnings will be forthcoming. Third, ing the term of the loan. he should be able to determine how much Should the lender think that he can make higher the market value of the farm will be a loan only on an annual basis, he should on completion of the program. give the borrower a written statement indi- Bank examiners and most bankers agree cating what the conditions for its renewal that it is good business to take a mortgage will be. For when a lender merely assures a from a borrower. But bankers can be borrower that his loan will be extended if lulled into a false sense of security by the everything is "satisfactory" when the loan mortgage and be tempted to advance more falls due, the arrangement is one-sided. Who than they should on the basis of this security can blame the borrower if he wonders alone. Repayment of intermediate-term whether "satisfactory" may be decided by credit should always come from earnings, the convenience and needs of the lender and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AGRICULTURAL LENDING 925 whether his own needs may receive little steadily increases. From 1950 to 1962 the consideration? Generally speaking, if a loan number dropped by 2 million, or 37 per can be made, it can be made on terms cor- cent. responding to the repayment expectations. Many of the farms that have been or will After the loan has been made, each year's be consolidated into larger, more economic performance should be discussed with the units are ones that return so little income borrower. This is a job for which a bank that orderly repayment of even a modest agricultural representative is ideal. During debt is impossible. Technological advances such an annual interview, the farmer's needs and the rapidly changing size and scale of for the forthcoming year can be discussed, commercial farming operations have greatly a financial statement obtained, and a deter- widened the differences in the earning capacmination made of the farmer's progress. ity of both farms and operators. The results of the interview should be Individuals that operate small farms— placed in the borrower's credit file for use whether small in acreage or in income—fall by the bank and the bank examiners. When into three groups, whose needs differ. First, such information is available, banker and there are the elderly farmers who do not bank examiner probably will be fairly well wish to change occupations or take on added in agreement on the progress of the loan. responsibilities. They have accumulated Commercial banks are unique in that they some net worth, a portion of which may be can accommodate all a farmer's borrowing liquidated gradually to supplement their needs, provided loanable funds are available other income. Anyone lending to them and the lending limit is adequate to serve the should realize that repayment of the loan borrower's needs. There are advantages to will be slow, with liquidation of assets freboth lender and borrower if the farmer can quently the ultimate source of repayment. obtain what is often referred to as "package A second group consists of younger farmcredit." Too often a sound short-term financ- ers who do not have the managerial ability ing arrangement has been seriously jeop- necessary to operate a farm large enough to ardized by an intermediate-term financing provide more than a meager existence. For arrangement entered into elsewhere, or vice some, part-time employment off the farm versa. Examiners look on such split financ- might be a solution for their need for addiing arrangements with a skeptical eye. Ex- tional income. For others, their best interperience has taught them that the risk is ests might be served if they seek full-time greater for both borrower and lender under employment elsewhere. Extending credit to such conditions than where one lender ex- such farmers is risky and indeed may well tends both of these types of loans under a result in the borrower losing whatever equity comprehensive plan. he already had. The third group consists of young farmers NEED FOR MANAGEMENT SKILL who are now eking out a living on small In addition to all the mechanics involved in units but who have the managerial ability financing agriculture, lenders must take into necessary to operate on a larger scale. These consideration the changes taking place in farmers may need more land, either owned agriculture. The number of farms continues or rented; more machinery and equipment; to decrease while the size of operating farms or perhaps more livestock. Lenders can ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 FEDERAL RESERVE BULLETIN • JULY 1963 vance soundly based credit to these operators troublesome loans we can learn and improve so they can enlarge or alter their farm pro- lending techniques for extending intermedigrams and thus obtain a more efficient utili- ate-term loans. zation of labor and equipment and a greater BANK EXAMINERS AND PROBLEM LOANS gross and net income. Bank examiners know that bankers have What basis is there for the impression some always considered a farmer's managerial bankers have that bank examiners discapacity when granting credit. Often exam- approve of the extension of intermediateiners have refrained from criticizing some term credit? apparently weak loan when a banker stated In 1957 the three Federal agencies rethat the operator had considerable man- sponsible for the supervision of banks—the agerial competence. However, the changes Office of the Comptroller of the Currency, taking place in agriculture emphasize the the Federal Deposit Insurance Corporation, necessity of taking an even greater account and the Federal Reserve System—reached of the personal factor in future financing; an agreement on the criteria to be used in they have placed a premium on managerial appraising agricultural loans. The agreecompetence. Lenders must be able to iden- ment took into consideration the findings of tify those loan applicants who can build a the June 30, 1956, Agricultural Loan Surprofitable farming operation with the aid of vey, which had been conducted by the Syscredit and those who lack the necessary tem in cooperation with the other two agenability. cies. Farming has changed from a "way of life" These criteria were outlined in a stateto a "way of business," and farm credit must ment designed to guide examiners in the perbe treated like business credit. Good char- formance of their duties. It contained the acter, a willingness to work hard, and un- following directions for assessing intermeencumbered assets are still required as bases diate-term credit extended by banks to for loans to young farmers. However, of farmers: equal if not greater importance are technical No Federal law or regulation prevents commercial skill, business acumen, and the prospects for banks from extending credit to farmers on an intermediate-term repayment basis. Like all classes of income adequate to permit repayment of loans, each loan of this type should be evaluated on debt after provision for living expenses—al- the basis of its own characteristics—the risk involved, the character, ability, financial responsibility and recways the first lien on income. There is no ord of the borrower, value and character of collateral, and the feasibility and probability of its orderly gain to lender or borrower in granting credit liquidation in accordance with the repayment plan. or expanding the capital resources of a It is the belief of the Federal supervisory agencies that intermediate-term credit by commercial banks on farmer who cannot use it to produce a rea- a sound and prudent basis contributes greatly to the growth and strength of American agriculture. sonable return. Occasionally loans, apparently advanced To learn if Federal bank examiners are on a sound basis, will become troublesome— abiding by this policy, a few months ago I perhaps because the banker misjudged the reviewed 150 examination reports of banks borrower's ability, but perhaps due to cir- selected at random from the Minneapolis cumstances beyond the borrower's control, Federal Reserve District. In this sample incomplete planning by lender and bor- there were 50 reports of banks supervised by rower, or for other reasons. From these each of the Federal supervisory agencies, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AGRICULTURAL LENDING 927 and all States in the District were repre- $4,760, payable in 3 years. It was originally secured by a chattel mortgage on 30 head of dairy cattle and sented. farm machinery and by assignment of 50 per cent of About three-quarters of these banks had milk checks. In October 1962 the loan was $4,460, a reduction of only $300 in 2Vi years. The borrower either few or no loans classified as "sub- was not living up to his agreement with regard to the assignment of milk checks, and it was believed that he standard" by the examiners. Of the banks had pledged elsewhere the chattels covered by the that had larger amounts of criticized loans, mortgage given to the bank. The latest inspection showed the borrower to have only 20 head of dairy several were located in drought areas. cattle. Loan classified "doubtful" at $4,460. In all 150 reports, not once had an exam- Loan 3. This is a substandard loan for about $7,500 to a farmer and sheep rancher secured by a chattel iner criticized an intermediate-term loan if mortgage on 4 head of cattle, about 290 sheep, crops, and machinery. A November 1961 statement lists total the farmer was repaying it on the schedule assets of $23,000 including 360 acres of unencumbered that he and the bank had agreed on when the real estate and 680 acres in which debtor has an $800 equity. The loan has been increasing since 1958 with credit was extended. Apparently bankers are heavy carryovers due to poor crops and only fair lamb prices. The bank's management is aware of the making intermediate-term farm loans, and marginal aspects of this credit and sought to have it examiners of all three Federal supervisory refinanced by the Farmers Home Administration. That agency, however, was not interested as it considered agencies, upon appraising them, find them the operation too limited to ever be profitable. to be satisfactory loans. Loan 4. The total line of credit for $5,800 was classified substandard. This debt includes a real estate The loans that the examiners did criticize mortgage for $5,120 on a farm valued at $6,950, a fell into a definite pattern. These were $575 conditional sales contract on a tractor, and chattel mortgage on 20 head of cattle and machinery and usually loans of long standing that had equipment. The borrower has maintained a steady loan with the bank since 1952, his repayment record stayed at almost constant amounts because has been poor, and he has failed to increase his net the farmer or rancher had never been able worth. The bank's management agreed that this borrower was too involved in interests other than farmto generate enough income on his farm to ing to give his farming operations sufficient attention but expected that ultimately payment would be forthmake even gradual repayment. coming. Another reason for criticism often men- Many of the loans criticized by examiners tioned by examiners was the absence of in- were for $2,000 or $3,000, and few were formation needed for appraisal of the loan. for more than $7,000 or $8,000. Neverthe- All too often the banker could not provide less, almost all these loans had remained at the requested information. Yet, in the final about the same amount for years—in a few analysis, it is precisely the same information cases for as much as 10 years—with little a banker needs if he is to service the loan or no reduction. properly. These stagnant loans were not offset by A few examples from the reports will increases in net worth. The borrowers simillustrate the kinds of weaknesses that were ply did not have enough income after paying the basis for the examiners' criticisms. In living expenses to reduce their debts by even every case, criticism was based not on the a few hundred dollars annually. Such loans fact that the loan was of intermediate-term constitute a real problem. In the 1960 Sambut on other grounds. ple Survey of Agriculture, it was found that Loan 1. A substandard loan with a current balance while three-quarters of the farmers reporting of $2,600 originated 3 years ago at $3,000, payable on demand. The chattels pledged now are the same ma- debt owed less than $10,000, their average chinery and equipment as originally pledged, and no net income from sale of farm products was plan for reduction has been agreed upon with the borrower. The bank's management indicated that a plan about $1,750. The large number of farmers for reducing the loan periodically is to be determined with low net farm incomes is one of the this fall. Loan 2. The loan originated April 5, 1960, at major problems of agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 FEDERAL RESERVE BULLETIN • JULY 1963 CONCLUSION What is to be the attitude of the bank The commercial bankers of the United States examiners toward farm credit in the future? have done a creditable job in serving the In my opinion it will change little from their needs of agriculture. However, the needs for attitude of the past several years. The spemore credit, longer-term credit, and better cial survey confirmed my belief that bank credit counseling are steadily increasing. In- examiners are appraising farm credits in a termediate-term credits are complicated, and realistic manner. The loans criticized by some may wonder whether it is worth mak- examiners were primarily advances to oping such loans when there are easier ways to erators on farms where there was little hope invest funds. Bankers must find ways to of repayment by means other than liquidasatisfy the reasonable demands of the retion of collateral. sponsible farm businessman for soundly Examiners have been using, and will conbased intermediate-term credit. For in this tinue to use, the same criteria in appraising way they not only promote the general wellfarm loans as they do for other types of busibeing of the nation but can also maintain ness loans. In common with bankers we their traditional share of farm lending. shall be especially interested in the man- The competent farm businessman of toagerial capacity of the borrower, his present morrow has the right to expect that his and projected earnings, and the size of the banker understands his problems and his operation in relation to existing economic credit needs. Consequently all those conconditions. Most important of all, we shall cerned about this problem are encouraged continue to ask the question that bankers so by the progress being made in bringing persons trained in agriculture into the banking often ask their borrowers, "How is this loan profession. to be repaid?" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement on Proposed Changes in Securities Exchange Act I APPEAR TODAY in response to your invi- knows, very few bank stocks are listed on tation to present the views of the Board of securities exchanges, and these require- Governors of the Federal Reserve System on ments of the 1934 Act heretofore have not S. 1642, which would amend the Securities applied to them. However, it has been esti- Exchange Act of 1934. mated that of the several thousand actively The responsibilities of the Board of Gov- traded over-the-counter stocks that would ernors have a relationship to one important be reached by S. 1642, between 10 and 15 objective of the bill—to extend the report- per cent are stocks of banks. These ining, proxy, and "insider-trading" provisions clude most of the larger banks, and the of the 1934 Act, which are now applicable group probably holds a substantial majority only to "listed companies," to certain com- of the commercial banking assets of our panies whose securities are traded in the country. over-the-counter market. These provisions, The commercial banking system is one as applied to listed securities, have proved of the most closely supervised industries in their value over a period of almost 30 years. the United States, subject to numerous laws Meanwhile the economic importance of the and regulations, detailed examination, and over-the-counter markets and of the stocks requirements of reports to bank supervisors, traded in them has greatly increased. In the both State and Federal. The objectives of judgment of the Board of Governors, the bank supervision are, however, fundamenproposed extension of those requirements tally different from those of the Securities to widely held securities that are traded in Exchange Act. Bank supervision is inthe over-the-counter market would be bene- tended to assist in maintaining a sound, ficial to investors. Although the Board has serviceable banking structure, and to pronot made an independent study of the cri- tect bank depositors. As an incident to teria prescribed by S. 1642 to determine these principal functions, supervision also which over-the-counter securities would be benefits bank shareholders in important subject to the extended requirements, they ways. However, most of the information appear to us to be reasonable. about a bank that is developed by the su- More directly relevant to the Board's pervisory authorities must necessarily be work is the question whether the extended treated by them as confidential, and the requirements should apply to bank stocks data now available to a bank's shareholders that are widely held. As the Committee or prospective shareholders do not appear to provide all that they would need in order NOTE.—Statement of William McChesney Martin, to make sound investment decisions. Jr., Chairman, Board of Governors of the Federal Congress has sought in the Securities Acts Reserve System, before the Senate Committee on Banking and Currency, June 24, 1963. to assure the availability of information that 929 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 FEDERAL RESERVE BULLETIN • JULY 1963 would enable members of the public to make suers, this would be a costly arrangement their own decisions intelligently. This seems involving the working out of criteria and a very sound principle and just as applica- standards as well as forms, procedures, and ble to bank stocks as to other stocks. Simi- the like. Likewise, as for the control of larly, the Board feels that stockholders in "insider trading" in bank stocks, it would banks are entitled to the protection of the appear that administration by the SEC "insider trading" provisions of the Securi- would be a relatively minor addition to its ties Exchange Act. regulation of such trading in other stocks. If these provisions are to be applied to As to the handling of regular financial statebanks, as the bill provides, there still re- ments under Section 13 of the Act, a case mains the question of what agency should can be made for having this done by bank administer them. Any regulations or pro- supervisory agencies, although in our judgcedures should take into account the fact ment the balance of advantages lies strongly that banks are already subject to extensive on the side of vesting that responsibility Governmental supervision. At the same also in the SEC, to be performed with the time, efficiency and economy of administra- advice of the banking agencies. tion must be considered, and the full bene- It is also possible under the bill that the fits of the bill can be realized only if the provisions might be administered partly by reports of different banks are readily com- one or two of the bank supervisory agencies parable with each other. and partly by the SEC. But, to the extent Under the bill as introduced, administra- that some banks were governed by regulation of the provisions of the 1934 Act as tory requirements different from those imapplied to bank stocks might be divided posed upon other competing banks, inequiamong the three Federal bank supervisory ties and claims of unfairness inevitably agencies. Under this kind of arrangement, would arise. In the effort to avoid such inresponsibility would be fragmented and the equities, there might ensue a tendency tasks less efficiently performed. Considera- toward lower standards than would be deble expansion of staffs in these agencies sirable in the public interest. would be necessary, merely to do work that Furthermore, if a division of administrawould duplicate what the Commission's tion among two or more agencies led to difstaff would be doing with respect to corporaferent reporting requirements for different tions generally. groups of banks, this would tend to defeat The inefficiency of placing the administra- one of the purposes of the bill, namely, to tion in the hands of bank supervisory agen- provide investors with information that cies, rather than the Securities Exchange would enable them to make useful com- Commission, would seem to vary among parisons among securities. Even assuming the different areas of regulation. The admin- that the information required by each of istration of proxy rules for bank stocks these agencies was entirely adequate, any would be a minor addition to the SEC's differences among them would prevent the work in this field, while for any other agency, ready comparison of figures relating to difif there is contemplated the kind of scrutiny ferent banks. Of course it is possible, as by the administering agency that the SEC well as desirable, that the various agencies gives to proxy statements of nonbank is- might agree on a form that would be the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN SECURITIES EXCHANGE ACT 931 same for all classes of banks. But, if all reporting requirements, for any company banks were then to use the same form and whose accounting methods are already reguwere subject to the same definitions and lated by the Government, must not be ininstructions and so forth, there would be consistent with those other requirements. no benefit in dividing the administration of Beyond a mere formal compliance with this kind of requirement among several this, I think the public interest will require agencies when there exists in the SEC an that a real spirit of cooperation be mainagency that is equipped to handle it for tained, and I believe that it will be forthbanks along with other classes of issuing coming. companies. To sum up the Board's position, we feel Chairman Cary has made it clear that the that the provisions relating to reports, prox- SEC would consult and cooperate with the ies, and insider trading should be extended bank supervisory agencies in order to avoid to over-the-counter as well as listed stocks unnecessary duplication and to assure that and should apply to bank stocks as well as the actions of the Commission in this field would be consistent with those of the bank- other stocks, but that it would be preferable ing authorities. The Securities Exchange if those provisions were administered by the Act already provides that the Commission's SEC and not by bank supervisory agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Order Under Bank Merger Act Dated at Washington, D. C, this 17th day of June, 1963. The Board of Governors of the Federal Re- By order of the Board of Governors. serve System has issued the following Order and Statement with respect to an application for ap- Voting for this action: Chairman Martin, and Goverproval of the merger of two banks: nors Balderston, Mills, Shepardson, King, and Mitchell. Absent and not voting: Governor Robertson. (Signed) MERRITT SHERMAN, THE BANK OF VIRGINIA, RICHMOND, Secretary. VIRGINIA [SEAL] In the matter of the application of The Bank STATEMENT of Virginia for approval of merger with The Bank The Bank of Virginia, Richmond, Virginia of Henrico. ("Virginia Bank"), with deposits of $159 million as of December 31, 1962, has applied, pursuant to ORDER APPROVING MERGER OF BANKS the Bank Merger Act of 1960 (12 U.S.C. 1828 (c)), for the Board's prior approval of the merger There has come before the Board of Governors, of that bank and The Bank of Henrico, Sandston, pursuant to the Bank Merger Act of 1960 (12 Virginia ("Henrico Bank"), with deposits of $4.2 U.S.C. 1828(c)), an application by The Bank of million as of the same date, under the charter and Virginia, Richmond, Virginia, a State member title of Virginia Bank. The proposal contemplates bank of the Federal Reserve System, for the that the three existing offices of Henrico Bank Board's prior approval of the merger of that bank and an additional office, which has been approved and The Bank of Henrico, Sandston, Virginia, but not yet opened for business, would become under the charter and title of the former. As an branches of the resulting bank, increasing the incident to the merger, the three offices of The number of offices of Virginia Bank from 22 to 26. Bank of Henrico and an additional office, which Under the Act, the Board is required to conhas been approved but not yet opened for busisider, as to each of the banks involved, (1) its ness, would become branches of The Bank of Virfinancial history and condition, (2) the adequacy ginia. Notice of the proposed merger, in form of its capital structure, (3) its future earnings approved by the Board, has been published purprospects, (4) the general character of its mansuant to said Act. agement, (5) whether its corporate powers are Upon consideration of all relevant material in consistent with the purposes of 12 U.S.C, Ch. 16 the light of the factors set forth in said Act, in- (the Federal Deposit Insurance Act), (6) the concluding reports furnished by the Comptroller of venience and needs of the community to be served, the Currency, the Federal Deposit Insurance Corand (7) the effect of the transaction on competiporation, and the Department of Justice on the tion (including any tendency toward monopoly). competitive factors involved in the proposed mer- The Board may not approve the transaction unger. less, after considering all these factors, it finds the IT IS HEREBY ORDERED, for the reasons set forth transaction to be in the public interest. in the Board's Statement of this date, that said Banking factors. The financial histories of Virapplication be and hereby is approved, provided ginia Bank and Henrico Bank are satisfactory. that said merger shall not be consummated (a) Both banks also have satisfactory asset conditions, within seven calendar days after the date of this and this should be true of the resulting bank. The Order or (b) later than three months after said capital structure of the resulting bank will condate. tinue to reflect a need for some strengthening. 932 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 933 The net current earnings of Henrico Bank are other communities now being served by Virginia above average for banks of comparable size in the Bank. Fifth Federal Reserve District. Although Virginia The main office of Henrico Bank is located at Bank's net current earnings are below average, in- Sandston, Virginia, approximately seven miles creased automation and other operating economies east of Richmond. Its two operating branches and are expected to provide a basis for improved earn- the approved additional branch are situated just ings. outside the city of Richmond in the eastern section Henrico Bank, which began operations on April of Henrico County (population 117,339). The 15, 1957, was organized with the understanding areas served by the bank are predominantly resiat the time that it would be merged with Virginia dential and agricultural, although commercializa- Bank after operating for at least five years, the tion in the Sandston vicinity is progressing. Future period necessary under then existing State law. prospects are considered to be exceptionally good Under an amendment to the law, effective June with the continued expansion of the city of Rich- 29, 1962, the prescribed waiting period was elimi- mond, and the existing trend to locate business, nated. as well as residential developments, outside the Virginia Standard Corporation, then an affiliate corporate limits of the city. of Virginia Bank, on February 2, 1961, acquired Customers of Henrico Bank would have directly a two-thirds stock interest in Henrico Bank. When available a more complete range of banking serv- Virginia Commonwealth Corporation, a bank ices than those previously available at its offices, holding company, was established in 1962 (Fed- such as trust services, vacation savings, FHA Title eral Reserve BULLETIN, 1962, p. 1442), one of I loans, charge plan, and personal money orders. the subsidiary banks was Bank of Virginia. The This would be a beneficial factor in an area inholding company thereby acquired control of Vir- creasing in commercial importance. ginia Standard Corporation. Thereafter, all of the Competition. Due to the close relationship bestock of Henrico Bank, except for qualifying tween these two banks, and the administrative shares sold to bank directors under repurchase and operational assistance given Henrico Bank by agreements, was acquired by Virginia Common- Virginia Bank, little, if any, competition exists wealth Corporation. between them. No change in the control or owner- Virginia Bank was primarily responsible for ship would result from the merger. securing for Henrico Bank its chief executive of- Virginia Bank is the fifth largest bank in the ficer. The other two full-time active officers of State and holds four per cent of total bank dethe bank were supplied from the staff of Virginia posits in Virginia. It is not the dominant bank in Bank. Present management of Henrico Bank is any area in which it operates. satisfactory, and this would hold true for the re- The merger would increase Virginia Bank's sulting bank, Virginia Bank being adequately share of total deposits in the State by only one- Staffed with competent personnel in both junior tenth of one per cent and its rank would be unand senior positions. changed. Thus, the resources to be gained would No inconsistency with the purposes of 12 be too small to alter its competitive position in U.S.C., Ch. 16 is indicated. the State, as a whole, or in the primary areas it Convenience and needs of the communities. now serves. Since both banks are owned by Vir- Virginia Bank operates its main office and 13 ginia Commonwealth Corporation, as previously branches in the Richmond metropolitan area, 3 noted, the proposed merger would increase neither branches in the city of Norfolk, and 1 branch the size nor the area representation of the holding each in the cities of Newport News, Petersburg, company. Portsmouth, and Roanoke. On May 24, 1963, the All of Henrico Bank's offices are within 10 Board announced its approval of the merger of miles of downtown Richmond which contains the Virginia Bank and The Farmers Bank of Din- head offices of 6 banks, excluding Virginia Bank. widdie, Dinwiddie, Virginia, which is to be op- A branch office of First & Merchants National erated as a branch of Virginia Bank. Consumma- Bank, the largest bank in Virginia, is located one tion of the proposed merger would have little effect and one-fourth miles west of Henrico Bank's £>n the convenience and needs of Richmond or the Mechanicsville Pike office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 FEDERAL RESERVE BULLETIN • JULY 1963 In addition to that of other banks, competition tion 4 of the Act with respect to acquisition and is provided by a number of nonbanking financial retention of shares in nonbanking organizations institutions. to apply in order to carry out the purposes of the Summary and conclusion. The proposed merger Act. would unite two banks which are subsidiaries of A hearing has been held pursuant to Section a bank holding company, otherwise closely re- 4(c)(6) of the Act and in accordance with lated, and between which there is no significant Sections 222.5(b) and 222.7(a) (12 CFR § competition. The merger would increase efficiency 222.7(a)) of the Board's Regulation Y; a brief in and provide additional services in the area served support of its request has been filed by Virginia by Henrico Bank. Commonwealth Corporation; on March 29, 1963, Accordingly, the Board finds that the proposed the Hearing Examiner filed his Report and Recmerger would be in the public interest. ommended Decision wherein he recommended that the request with respect to Virignia Standard Order Under Section 4(c)(6) of Corporation and State-Wide Insurance Agency, Bank Holding Company Act Inc., be approved, and the time for filing with the Board exceptions and brief to the recommended The Board of Governors of the Federal Reserve decision of the Hearing Examiner has expired and System, on June 28, 1963, issued an Order grantno exceptions have been filed. The Board has given ing a request by a bank holding company for a due consideration to all relevant aspects of the determination that retention by it of voting shares matter, and all such steps have been taken in acof an insurance company is permissible under the Bank Holding Company Act. The Board's Order, cordance with the Board's Rules of Practice for accompanying Statement and Hearing Examiner's Formal Hearings (12 CFR 263). Accordingly, Report and Recommended Decision read as IT IS HEREBY ORDERED, for the reasons set forth follows: in the accompanying Statement of the Board of this date, that Virginia Standard Corporation and THE VIRGINIA COMMONWEALTH State-Wide Insurance Agency, Inc., and their CORPORATION, RICHMOND, VIRGINIA activities are determined to be so closely related to the business of banking or of managing or con- In the matter of the application of Virginia trolling banks as to be a proper incident thereto Commonwealth Corporation for a determination and as to make it unnecessary for the prohibitions pursuant to Section 4(c){6) of the Bank Holding Company Act of 1956 with respect to Virginia of Section 4 of the Bank Holding Company Act Standard Corporation, and State-Wide Insurance of 1956 to apply in order to carry out the purposes Agency, Inc. Docket No. BHC-67. of that Act, and therefore Applicant's request with respect to Virginia Standard Corporation and ORDER State-Wide Insurance Agency, Inc., shall be, and hereby is, granted provided that Virginia Standard The Virginia Commonwealth Corporation, Rich- Corporation shall be merged into Virginia Commond, Virginia, a registered bank holding commonwealth Corporation not more than sixty days pany as of May 20, 1963, pursuant to Section after the date of this Order; and provided further 222.3(a) and (b) of the Board's Regulation Y that State-Wide Insurance Agency, Inc., shall en- (12 CFR § 222.5(a) and (b)) filed, at a date prior gage only in the insurance business as described to its registration, a request for a determination by Applicant and set forth in the Statement acby the Board that Virginia Standard Corporation companying this Order and in no other activity or and State-Wide Insurance Agency, Inc., both Viractivities; and provided further that this determinaginia corporations, and their activities, are of the tion shall be subject to revocation by the Board if kind described in Section 4(c)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. § the facts upon which it is based should sub- 1843(c)(6) and Section 222.5(b) of the Board's stantially change in such a manner as to make the Regulation Y (12 CFR § 222.5(b)), so as to reasons for such determination no longer applimake it unnecessary for the prohibitions of Sec- cable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

935 LAW DEPARTMENT Dated at Washington, D. C, this 28th day of Section 4(c)(6) of the Act excepts shares of a June, 1963. nonbanking company if two requirements are met: (1) if all the activities of the companies are of a By order of the Board of Governors. financial, fiduciary, or insurance nature, and (2) Voting for this action: Governors Balderston, Mills, if the Board determines on the basis of the record Robertson, and Shepardson. Absent and not voting: Chairman Martin, and Governors King and Mitchell. made at a hearing, that all the activities of the (Signed) MERRITT SHERMAN, companies are so closely related to the business Secretary. of banking or of managing or controlling banks [SEAL] as to be a proper incident thereto and as to make STATEMENT it unnecessary for the prohibitions of Section 4 to apply in order to carry out the purposes of the Background of the case. Under date of May 16, Act.1 Section 222.5(b) of the Board's Regulation 1962, Virginia Commonwealth Corporation (hereafter sometimes called the "Applicant"), a Vir- Y, issued pursuant to the Act, paraphrases the ginia corporation with its principal office and provisions of the Act, but requires that the activiplace of business in Richmond, Virginia, filed ties of a company must be closely related to the with the Board of Governors of the Federal business of banking or of managing or controlling Reserve System (the "Board") a request for a banks "as conducted by such bank holding comdetermination that the acquisition and retention pany or its banking subsidiaries." of voting shares of two nonbanking corporations, As required by the Act, a hearing on the Ap- Virginia Standard Corporation ("Standard") and plicant's request was held at Washington, D. C, State-Wide Insurance Agency, Inc. ("State-Wide"), on January 15, 1963, before a duly designated and the proposed activities of those corporations, Hearing Examiner. Following the conclusion of would be of such a nature as to be exempt from the hearing, Applicant submitted proposed findthe prohibitions of Section 4(a) of the Act. ings of fact and conclusions of law. On March 29, In an Order dated October 25, 1962, the Board 1963, the Hearing Examiner filed with the Board approved Applicant's request for prior approval of his Report and Recommended Decision wherein an exchange of stock which took place on Decem- he recommended approval of the Applicant's ber 21, 1962. As a result of this exchange, Ap- request. plicant became a bank holding company as defined The salient facts with respect to the actitvities in Section 2(a) of the Act. and proposed merger of Standard into Applicant, Section 4(a) of the Act makes it unlawful, and with respect to the insurance business carried subject to certain exceptions, for a bank holding company (1) to acquire direct or indirect owner- xThe relevant language of the Act is as follows: ship or control of voting shares of any company "Sec. 4(a) Except as otherwise provided in this Act no bank holding company shall— that is not a bank, or (2) to retain direct or in- "(1) after the date of enactment of this Act acquire direct ownership or control of voting shares of direct or indirect ownership or control of any voting any such company after two years from the date shares of any company which is not a bank, or as of which it becomes a bank holding company. "(2) after two years from the date of enactment Standard and State-Wide are nonbanking com- of this Act . . . retain direct or indirect ownership or control of any voting shares of any company which panies incorporated under the laws of the State is not a bank or a bank holding company . . . of Virginia. In becoming a bank holding company, * # * * * * Applicant acquired more than 50 per cent of the "(c) The prohibitions of this Section shall not outstanding shares of Standard, which held and apply— * * :]: :!; t- * holds all the outstanding shares of State-Wide. "(6) to shares of any company all the activities of Applicant proposes to merge Standard into itself, which are of a financial, fiduciary, or insurance nature after which it would own directly all the voting and which the Board after due notice and hearing, shares of State-Wide. by order has determined to be so closely related to The Applicant's acquisition and proposed re- the business of banking or of managing or controlling banks as to be a proper incident thereto and as to tention of stock of Standard and State-Wide make it unnecessary for the prohibitions of this Section escapes the prohibitions of the Act only if it falls to apply in order to carry out the purposes of this within one of the exceptions provided by the Act. Act ... ." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 FEDERAL RESERVE BULLETIN • JULY 1963 on and to be carried on by State-Wide, are set approximately two-thirds of the stock of Henrico, forth hereafter in this Statement. Additional facts and all of the stock of State-Wide. with respect to these activities and this merger are Nature of State-Wide's activities. The Hearing contained in the Hearing Examiner's Report and Examiner found that for the two-year period Recommended Decision attached hereto; and to 1961-1962, of 7,888 automobile physical damage the extent not inconsistent with this Statement, insurance policies written by State-Wide, 97.2 nor specifically rejected herein, the findings of per cent of the policies, representing 97.9 per fact made by the Hearing Examiner are hereby cent of gross premiums on this type of policy, were adopted. written in cases where Bank was the lienholder In determining whether the pending request and loss-payee. Of the 221 remaining policies, 71 should be granted, the Board has considered solely were written as renewal policies in cases where the facts embraced in the record of the hearing Bank had been a lienholder but the loan has been held in this matter, the arguments presented in paid off before renewal of the policy, and 150 Applicant's proposed findings of fact and con- were written by sub-agents of State-Wide. These clusions of law, and the Hearing Examiner's sub-agents were automobile dealers who originated Report and Recommended Decision. The Board's a substantial amount of the automobile financing findings and conclusions are hereafter set forth. handled by Bank, and who were granted the privi- Factual summary. The main office of The Bank lege of writing occasional policies through Stateof Virginia ("Bank"), the principal subsidiary of Wide for customers preferring to pay cash, or to Applicant's system, is located at 800 East Main finance the purchase of an automobile through Street, Richmond, Virginia. In 1939 a corporation another bank, but who wished to have the agent with the same name as the present State-Wide arrange for insurance in connection with the purwas organized for the purpose of writing credit chase. life insurance and physical damage coverage on Having a related agency furnish automobile automobiles in connection with loans made by insurance on collateral which secures a bank loan Bank. Until 1953, the business of the corporation benefits the operations of the bank in several ways. was carried on by officers of Bank, on Bank's Since insurance of collateral is essential to an premises. In that year, at the suggestion of repautomobile loan, a lender cannot adequately comresentatives of the State Corporation Commission, pete for loans of this kind unless it can furnish the offices of the insurance corporation were set this insurance easily and almost automatically. up at 528 East Main Street, in Richmond, under Group policies, available through the agency, also separate officers and directors. afford coverage in individual instances in which it On June 29, 1960, the name of the insurance might otherwise be difficult to obtain insurance. corporation was changed to Virginia Standard Immediate coverage is available, avoiding a time Corporation, and stock of the corporation was lag which is likely to occur when insurance is distributed to the shareholders of Bank on a sharesought on an individual basis through independent for-share basis and stapled to the stock of Bank. agents. The bank is protected against mass can- As Virginia law permits, however, Standard concellation of policies. In addition, the agency facilitinued to do its insurance business under the trade tates the work of the bank by advising on rates, name of State-Wide Insurance Agency, Inc. handling claims, and the like. On February 2, 1961, Standard purchased All the credit life insurance written through from investors friendly to Bank 66-2/10 per cent State-Wide is written on the lives of borrowers of the outstanding shares of Bank of Henrico from Bank. The amount of the policy in effect ("Henrico"), a bank which had been organized several years before under the aegis of The Bank never exceeds the then outstanding balance due of Virignia. On January 2, 1962, the present on the loan. Some borrowers assign to the bank State-Wide was organized as a wholly-owned sub- policies of insurance which they already hold on sidiary of Standard, and the insurance business their own lives, as collateral for loans, and it is which had been done by Standard was transferred also possible for a borrower, if eligible, to obtain to the new State-Wide. Since that time, the activi- an individual term policy from an independent ties of Standard have consisted only in holding agent, to be used in connection with a loan from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 937 Bank. Rates on individual policies, however, are By making available to Applicant and its subconsiderably higher than the rates applying to the sidiary banks the types of insurance coverage so-called "group" term policies available through which State-Wide has been writing, as well as State-Wide. Credit life insurance in connection some or all of the additional types listed above, with a loan benefits both borrower and bank, State-Wide will improve their competitive position since, in the event of the borrower's death, an and facilitate their operations. outstanding loan will be discharged without bur- While no statistical data were introduced in dening the borrower's estate, and without creating evidence at the hearing as to the number of banks collection difficulties for the bank. in Virginia which have bank-related insurance Under recent legislation in the State of Vir- agencies, testimony was offered tending to prove ginia, certain types of credit life insurance may that the practice has been widespread for many now be written directly by banks. However, where years and has existed without objection from the policy is for more than five years in duration State banking authorities. and more than $10 thousand in amount, requiring Preliminary requirement as to nature of activithe issuance of an individual certificate of in- ties. It appears that as to State-Wide, the prelimisurance, the policy must still be written through nary requirement for exemption under Section an insurance agency. 4(c) (6) of the Act will be met—that all the activi- State-Wide does not hold itself out to the general ties of the company involved, present and propublic as being in the insurance business, nor does posed, are and will be of an insurance nature. In it advertise, or solicit insurance business. Bank view of the fact that Standard will be merged has never required that automobile physical dam- into Applicant, the Board finds it unnecessary to age insurance or credit life insurance be written reach the question whether holding stock in through State-Wide, and to do so would be illegal Henrico and in State-Wide is a "financial" activity. in the State of Virginia. Until the present time, Relation to banking business. In addition to the State-Wide has confined itself to writing insurance required finding as to the nature of the companies' of these two kinds, but it is contemplated that in existing or proposed business, the statute and the the future, it may write the following additional Board's Regulation Y also require that their actypes of insurance for Applicant and for its sub- tivities must be determined by the Board to be so sidiary banks: "closely related" to the business of banking or of (1) public liability, coincident with the automo- managing or controlling banks, as conducted by bile physical damage insurance written by it, the Applicant or its banking subsidiaries, as to (2) public liability on premises occupied by be a "proper incident" to such business and as to Applicant and it subsidiaries, (3) physical damage and public liability on motor make it unnecessary for the prohibitions of Secvehicles owned by Applicant and its subtion 4 of the Act to apply in order to carry out sidiaries, (4) public liability non-ownership motor vehicle the purposes of the Act. As required by Section protection for Applicant and its subsidiaries, 4(c)(6) of the Act, this determination is to be (5) blanket bond or other fidelity coverage on personnel of Applicant and its subsidiaries, made by the Board "after due notice and hearing, (6) workmen's compensation and employer's lia- and on the basis of the record made at such bility for Applicant and its subsidiaries, hearing." (7) fire and extended coverage and boiler and machinery coverages on property owned or The weight which the Board believes should be occupied by Applicant and its subsidiaries, given various factors and circumstances has been (8) errors and omissions protection for Applicant and its subsidiaries, discussed in a number of its previous decisions, (9) safe deposit liability for Applicant's subsidiary and particularly in its Statement in the First Bank banks, (10) garage keepers' legal liability coverage on Stock Corporation matter, 1959 F.R. BULLETIN motor vehicles parked on premises or park- 917, 930-933. In the case now before it, "the deing lots owned or operated by Applicant and gree of direct and functional connection found to its subsidiaries, (11) registered, certified, and first-class mail and exist . . ." is sufficient, in the Board's judgment, express protection for Applicant and its sub- "to warrant the conclusion that . . . [the] activities sidiaries, and (12) group life, major medical, hospitalization, and [of State-Wide] are so closely related to the busimedical-benefit coverages offered as fringe ness of subsidiary banks as to be a 'proper inbenefits by Applicant and its subsidiaries to their employees. cident' thereto and as to be consistent with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 FEDERAL RESERVE BULLETIN • JULY 1963 purposes of the Act." 2 More than 97 per cent of Board's rejection of the Hearing Examiner's conthe insurance written by State-Wide, whether clusion in this regard, the proportion of insurance measured by number of policies or by gross of these two kinds to the total insurance business amount of premiums, is written in connection with of State-Wide has been so small as not to affect loans by Bank. From the side of Bank, the pro- the Board's conclusion on the closeness of the portion is substantial of loans on which insurance, relationship involved. whether credit-life or automobile physical damage, The Board has in the past made favorable is required and where that insurance is written by determinations in regard to bank-related insurance State-Wide. Moreover, the record amply demon- agencies which, as an incidental part of their busistrates that in the areas in which Applicant's banks ness, took care of the direct insurance needs of operate it is very useful, if not essential, for a the banks, including insurance on bank property, bank which wishes to compete in the consumer bankers' blanket bonds, and the like.3 It seems credit field to have available the services of a evident that such insurance activities, of a more related insurance agency. or less "housekeeping" nature, undertaken on be- The Hearing Examiner has found, as to the half of the subsidiary banks of a bank holding instances of automobile insurance "when there is company, are "related to the business of . .. no immediate connection with a present loan by a managing or controlling banks, as conducted by such bank holding company" within the meaning bank," that making such insurance available "is of Section 222.5(b) of the Board's Regulation Y. likely to result in new bank business when later a loan becomes appropriate, as when a new pur- Assuming that the Board makes a favorable chase is made or further credit is requested," and determination in regard to the application before that for this reason, these instances "seem to be it, the record indicates that the insurance business sufficiently closely related to the bank's business of State-Wide will be carried on in connection as to justify broadening the insurance activities of with the banking business of the remaining sub- State-Wide Agency" to this extent. A plausible sidiary banks of Applicant, in substantially the argument may perhaps be made to this effect, as same manner in which it has been carried on in to renewal of policies covering automobiles pur- the past in connection with the banking business chased with loans made by Bank, where the loan of The Bank of Virginia. Accordingly, on the has been paid off and the borrower wishes to con- basis of the record, it is believed that the total tinue the same policy. Renewals of this kind may relationship, past and projected, supports a favorable determination. tend to maintain a link with the customer and to encourage him to borrow again from a bank in Closeness and propriety of relationship. On the purchasing his next automobile. The Board does basis of the record and particularly the facts herenot find it necessary to pass on the validity of this tofore stated, it is the Board's view that the activiargument. However valid such a conclusion, it has ties of State-Wide will bear a direct and substantial no application to instances where insurance is relationship to the business of the subsidiary banks of Applicant's system. For the reasons set written by automobile dealers who place most of forth in the Board's Statement in the First Bank their automobile financing with a bank for cus- Stock Corporation matter, cited above, and intomers who borrow elsewhere than at the bank. corporated herein, the Board belives that the re- The Board cannot conclude, as did the Hearing lationship of State-Wide's activities to the business Examiner, that such insurance business is suffiof the subsidiary banks of Applicant's system will ciently closely related to the business of banking not be inconsistent with the purposes of the Act. as done by Applicant's subsidiaries so as to pro- Conclusion. After considering the extent of vide additional weight tending to establish the direct connection between the present and prorequisite close relationship between bank and inposed activities of State-Wide and the activities of surance agency. A similar argument could be used the subsidiary banks of Applicant's system, as deto characterize as "bank-related" almost any inscribed above, and the fact that bank-related insursurance activity which might tend to maintain ance agencies are prevalent in the State of Vircustomer good-will for the bank. Despite the 8 Matter of the Request of St. Joseph Agency, Inc., 1959 F.R. BULLETIN at p. 931. 1961 F.R. BULLETIN, pp. 290, 296. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 939 ginia, the Board concludes that the activities of (since approval by the Board on October 25, 1962, of an application under Section 3(a)(l) of the Act, State-Wide are and will be so closely related to filed as of April 30, 1962), filed with the Board on the business of banking as conducted by the sub- May 16, 1962, an application for a determination by sidiary banks of Virginia Commonwealth Corpora- the Board, pursuant to Section 4(c) of the Bank Holding Company Act of 1956 (12 U.S.C.A. § 11841, tion as to be a proper incident thereto and as to et seq.), relating to the proposed acquisition, ownermake it unnecessary for the prohibitions of Sec- ship, and control of the voting stock of Viriginia Standard Corporation, Richmond, Virginia, and Statetion 4 of the Act to apply in order to carry out the Wide Insurance Agency, Inc., Richmond, Virginia. purposes of the Act. That application asked that the Board determine that Applicant has initiated action to merge Virginia upon Commonwealth becoming a bank holding company (as it later became on October 25, 1962) and Standard Corporation into itself, and has described acquiring more than 50 per cent of the voting shares of this undertaking in a letter to the Hearing Ex- Virginia Standard Corporation and upon the approval of holders of more than 66% per cent of the stock of aminer dated February 12, 1963, which was made Virginia Standard Corporation to a proposed merger a part the record in this proceeding. Since, ac- of Virginia Standard Corporation into Virginia Comcording to Applicant, this merger is expected to monwealth Corporation, and upon merger as contemplated, the proposed activities of Commonwealth take place within the period of two years after as a bank holding company and of State-Wide In- December 21, 1962, the date as of which Appli- surance Agency, Inc., as an insurance agency, will cant became a bank holding company, and as of be so closely related to the business of banking and managing or controlling banks as to be a proper inciwhich the prohibitions of Section 4 of the Act dent thereto so as to make it unnecessary for the probecame applicable to Applicant, the Board does hibitions of Section 4 of the Bank Holding Company not find it necessary to pass on the question Act against a bank holding company holding stock in a nonbanking company to apply in order to carry out whether the activities of Virginia Standard Cor- the purposes of the Act. poration are so closely related to the business of In accordance with the requirements of the Act and Regulation Y, the Board provided for a hearing upon banking as conducted by the subsidiary banks of the application before the undersigned Hearing Virginia Commonwealth Corporation as to be a Examiner duly designated and selected. Upon due proper incident thereto and as to make it un- notice, such hearing was held in Washington, D. C, on January 15, 1963. The Applicant and the Board necessary for the prohibitions of Section 4 of the were represented in the hearing by counsel and af- Act to apply in order to carry out the purposes of forded full opportunity to be heard, to examine witthe Act. Accordingly, it is the Board's judgment nesses, and to introduce evidence. Thereafter certain information requested by the Hearing Examiner was that the requested exemption with respect to State- supplied by Counsel for the Applicant and admitted Wide Insurance Agency, Inc., should be granted into evidence by order of the trial examiner, dated February 6, 1963. The transcript of record was oron the condition that Virginia Standard Corporadered by the Hearing Examiner corrected in certain tion be merged with Virginia Commonwealth Cor- particulars specified by Counsel for the Applicant and poration within a period of sixty days after the by Counsel for the Board. Upon request of Counsel for the Applicant time for filing briefs and proposed date of the Board's Order; and upon the further findings was fixed at February 19, 1963. Counsel for condition that State-Wide Insurance Agency, Inc., the Applicant filed on February 18, 1963, Proposed shall engage only in the insurance business which Findings of Fact and Conclusions of Law, and a Brief in Support of the Proposed Findings of Fact and it has identified and has been described in this Conclusions of Law. To the extent consistent with the Statement. findings of fact and conclusions of law made below, the said Proposed Findings of Fact and Conclusions As indicated in the Board's Order, its approval of Law are accepted. Upon the entire record in the of this request is based solely on the facts dis- proceeding, giving consideration to the contentions of all parties of record, and those of their counsel, and closed by the record; and if the facts should sub- from my own observations of the witnesses, the oral stantially change in the future in such manner as testimony, and the exhibits, I make the following to make the reasons for the Board's conclusion no longer applicable, the statutory exemption result- FINDINGS OF FACT ing from the Board's present determination would, I. Introduction of course, cease to obtain. The Section of the Act and the Section of the Board's REPORT AND RECOMMENDED DECISION Regulation's Involved STATEMENT OF THE CASE The pertinent portion of the Act is as follows: "SEC. 4. (a) Except as otherwise provided in this The Applicant, Virginia Commonwealth Corpora- Act, no bank holding company shall— tion, Richmond, Viriginia, a bank holding company "(1) after the date of enactment of this Act acquire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 FEDERAL RESERVE BULLETIN • JULY 1963 direct or indirect ownership or control of any voting the purposes of writing physical damage insurance on shares of any company which is not a bank, or automobile financed by The Bank of Virginia, and "(2) after two years from the date of enactment of credit life insurance in connection with loans made by this Act or from the date as of which it becomes a that bank. That corporation is not the same corporabank holding company, whichever is later, retain tion as the present State-Wide Insurance Agency, Inc. direct or indirect ownership or control of any voting The present insurance agency was organized as a new shares of any company which is not a bank or a corporation on lanuary 2, 1962, as a wholly-owned bank holding company or engage in any business subsidiary of Virginia Standard Corporation, which in other than that of banking or of managing or control- 1960 changed its name from the previous name of ling banks or of furnishing services to or performing State-Wide Insurance Agency, Inc., to Virginia Standservices for any bank of which it owns or controls 25 ard Corporation, and all of Virginia Standard's inper centum or more of the voting shares. surance business, licenses, agency agreement con- • * * tracts, and other assets incident to the insurance "(c) The prohibitions in this section shall not agency business theretofore carried on under the name apply- * * * of State-Wide Insurance Agency, Inc. from 1939 to 1960, and under the name of Virginia Standard Cor- "(6) to shares of any company all the activities poration from 1960 to January 2, 1962, to the new of which are of a financial, fiduciary, or insurance corporation under the present name of State-Wide nature and which the Board after due notice and Insurance Agency, Inc., and since that date all such hearing, and on the basis of the record made at such business has been conducted by State-Wide in the same hearing, by order has determined to be so closely manner in which the insurance agency business was related to the business of banking or of managing or previously thereto conducted by State-Wide Insurance controlling banks as to be a proper incident thereto Agency, Inc. (1939-1960) and Virginia Standard Corand as to make it unnecessary for the prohibitions of poration (1960-1962), as above found. this section to apply in order to carry out the purposes Originally, the insurance agency activities of the of this Act; ..." named State-Wide Insurance Agency, Inc. were Section 5(b) of the Board's Regulation Y, is- carried on in The Bank of Virginia by bank personnel and there was no separation of the work of sued pursuant to and implementing the Act, pro- the then named State-Wide Insurance Agency, Inc. vides as follows: from the work of the bank. In 1953, at the suggestion of the bank and insurance authorities of Virginia (the "(b) Shares of financial, fiduciary, or insurance State Corporation Commission of Virginia), the operacompanies.—Any bank holding company which is of tions of the insurance agency were separated from the the opinion that a company all the activities of which operations of the bank and were thereafter carried on are of a financial, fiduciary, or insurance nature is so separately in nearby offices by separate operating perclosely related to the business of banking or of managsonnel employed by the insurance agency. At the ing or controlling banks, as conducted by such bank present time, the main office of The Bank of Virginia holding company or its banking subsidiaries, as to be is located at 800 East Main Street, Richmond, and the a proper incident thereto and as to make it unnecesplace of business of the present insurance agency sary for the prohibitions of section 4 of the act to (State-Wide Insurance Agency, Inc.) is located at 528 apply in order to carry out the purposes of the act, may request the Board for such a determination pur- East Main Street in Richmond, and has provided insuant to section 4(c)(6) of the Act. ..." surance services to the branch offices of The Bank of Virginia in Petersburg, Newport News, Portsmouth, II. Historical Origin, Past Insurance Operations and Norfolk, and Roanoke, all in Virginia, and it is con- Present Status of Virginia Standard Corporation templated that State-Wide will serve the banks above named as branch banks of The Bank of Virginia and In 1939, a corporation named State-Wide Insur- the other subsidiaries of the Applicant upon deterance Agency, Inc. was organized by certain officers mination by the Board favorably on the application in of The Bank of Virginia as a corporation to serve as this proceeding and the completion of the merger. an insurance agency in writing physical damage insurance on automobiles financed by The Bank of Automobile physical damage insurance and credit Virginia and credit life insurance in connection with life insurance are closely related to banking, particuloans made by that bank. larly banking in the consumer credit field. Automobile In 1957, The Bank of Henrico was organized, and physical damage insurance affords protection against in 1961, in contemplation of the proposed plan in- the loss of the automobile through the usual hazards volved in this proceeding, and in contemplation of the of fire, theft, collision, and glass breakage, and proformation of a bank holding company, two-thirds of tects any lienholder afforded protection in the rethe stock of The Bank of Henrico was purchased by payment of the loan in the event of loss or damage to Virginia Standard and since the formation of State- the collateral. Credit life insurance affords protection Wide Insurance Agency, Inc., on lanuary 2, 1962, in case of the death of a borrower by guaranteeing the Virginia Standard has limited its activities to holding payment of the unpaid balance of the loan, thus rethe shares of stock in The Bank of Henrico and the lieving the borrower's estate of the obligation and holding of all the stock of State-Wide Insurance protecting the bank against loss. It thus enables Agency, Inc. banks to make loans that they would otherwise be unwilling to make. III. The Present State-Wide Insurance Agency, The insurance agency business here involved has Inc. and Its Proposed Operations not advertised, solicited, or held itself out to the As found above, a corporation was organized in public generally as being in the insurance business, 1939 by certain officers of The Bank of Virginia for does not now do so, and does not propose to do so Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 941 in the future. Its activities have been almost entirely State-Wide would extend its services to other subconfined to the writing of insurance in connection with sidiary banks of the Applicant. Each of those banks loans made by The Bank of Virginia and it similarly either has no insurance connection or such connection plans to limit its activities to insurance written in has been limited to that of an officer or employee connection with loans made by that bank and of the serving as an insurance agent, with the result that subsidiary banks of the Applicant. Exhibits pre- these banks have not been competitive in the consented show that for the two-year period 1961-1962, sumer credit field. If the insurance services of Stateof 7,888 automobile physical damage insurance Wide are extended to the other subsidiary banks, it policies written by this insurance agency for gross will enable them to be more competitive in this field, premiums totaling $1,103,334.69, 7,667 policies for especially in the area of dealer-originated automobile gross premiums of $1,080,197.06 (or 97.2% in num- loans. ber and 97.9% in amount) were written in cases The insurance activities operated as above found where The Bank of Virginia was the lienholder and in connection with The Bank of Virginia have been loss-payee. Of the 221 remaining policies, 71 (.9% limited to automobile physical damage and consumer of the total) for gross premiums of $4,097.80 (.4% credit life. The Applicant states that it may desire of total gross premiums) were written as renewal that State-Wide write certain other and additional policies in cases where The Bank of Virginia was types of insurance coverage for the Applicant and its once a lienholder but the insurance was renewed subsidiary banks, bank holdings, and bank personnel, after the loan had been paid off. The remaining 150 to wit: policies (1.9% of the total) for gross premiums of (a) Public liability coincident with the automobile $19,039.83 (1.7% of total gross premiums) were physical damage insurance written by it. written by subagents of State-Wide in cases where (b) Public liability on premises occupied by the The Bank of Virginia was not a lienholder. All of Applicant and its subsidiaries. the credit life insurance written by Virginia Standard (c) Physical damage and public liability on motor and State-Wide (in 1961 the gross premiums totalled vehicles owned by the Applicant and its subsidiaries. $4,944.00 and in 1962 they totalled $5,045.00) was (d) Public liability non-ownership motor vehicle written in connection with loans made by The Bank protection to the Applicant and its subsidiaries. of Virginia. (e) Blanket bond or other fidelity coverage on per- There are six automobile dealers who originate a sonnel of the Applicant and its subsidiaries. substantial amount of automobile financing handled (f) Workmen's compensation and employers' liaby The Bank of Virginia who have been named sub- bility for the Applicant and its subsidiaries. agents of State-Wide. Occasionally, these dealers have (g) Fire and extended coverage and boiler and customers who pay cash or who do their financing machinery coverages on property owned or occupied with other banks, but who are willing to have the by the Applicant and its subsidiaries. particular dealer write the automobile physical (h) Errors and ommissions protection for the damage insurance through State-Wide. State-Wide Applicant and its subsidiaries. writes the insurance under those circumstances, even (i) Safe deposit liability for the Applicant's subthough The Bank of Virginia is not involved, in order sidiary banks. to properly service, from an insurance standpoint, (j) Garage keeper's legal liability coverage on dealers who refer most of their automobile financing motor vehicles parked on premises or parking lots to The Bank of Virginia. Of the 150 policies so written owned or operated by the Applicant and its subduring 1962, 129 represented transactions with the sidiaries. financing done by other banks and finance companies (k) Registered, certified, and first-class mail and and 21 were cash transactions involving no lien. express protection for the Applicant and its sub- The Bank of Virginia does not, in cases where it sidiaries. deems insurance necessary as security in connection (1) Group life, major medical, hospitalization, and with a loan, require that the borrower secure the medical-benefit coverages offered as fringe benefits insurance through State-Wide or any other particular by the Applicant and its subsidiaries to their emagent or agency, as to do so is prohibited by Virginia ployees. law. However, the insurance is available through State-Wide if the borrower so desires. An exhibit presented discloses that of the 10,374 automobile IV. The Applicant and Its Subsidiaries finance loans originated through dealers in 1961 and the 12,180 so originated in 1962 (automobile physical As above found, the Applicant was organized in damage insurance having been required in connection January 1962, for the purpose of becoming a bank with nearly all of these loans), 3,381 policies in 1961 holding company, and on October 25, 1962, the or 32.6% and 3,670 policies in 1962 or 30.1% were Board entered an order granting approval for the written through State-Wide. Of the 6,579 automobile Applicant to become a bank holding company and loans originating directly with the bank in 1961 and particularly to become the owner, by exchanging its the 6,693 so originated in 1962, 267 policies in 1961 stock for the stock of The Bank of Virginia, The or 4.1% and 349 policies in 1962 or 5.2% were Bank of Henrico, The Bank of Occoquan, The Bank written through State-Wide. In the case of the loans of Salem, the Bank of Warwick, and Virginia Standard originating directly with the bank, many were not Corporation. On December 21, 1962, the exchange of for the purchase of the automobile, but were loans stock, with respect to the said five banks, was commade for other purposes where the automobile was pleted and since said acquisition of stock in the five used as security and no insurance was required. banks, it is now furnishing accounting, advertising, To the present time, the activities of State-Wide investment, public relation, and data processing serhave been primarily limited to writing insurance in vices to some of said subsidiaries' banks, and proposes connection with loans by The Bank of Virginia. If to furnish expanded services to all of them. The the present application is granted, it is proposed that applicant contemplates registering as a bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 FEDERAL RESERVE BULLETIN • JULY 1963 company and will apply for a voting permit as re- Standard will be merged into the Applicant and will quired by the applicable banking laws. cease to exist as a separate corporation and that there- The Applicant now owns 96.5% of the stock of The by the Applicant will acquire direct ownership of the Bank of Virginia, 92.9% of the stock of The Bank of stock of The Bank of Henrico (now held by Virginia Salem, 94.0% of the stock of The Bank of Occoquan, Standard) and all of the stock of State-Wide Insurance 97.4% of the stock of the Bank of Warwick, and Agency, Inc., which will continue to conduct an in- 27.8% of the stock of The Bank of Henrico. After surance agency business. deduction from the number of shares acquired by The banking authorities of the State of Virginia the Applicant, the shares which it sold to directors of and the Federal Government knew of and did not each of said banks for qualifying shares, it also con- object to the ownership by The Bank of Virginia of trols an additional 66.2% of The Bank of Henrico State-Wide Insurance Agency, Inc., and Virginia through its ownership of 97.1% of the stock of Standard Corporation as insurance agencies and the Virginia Standard. The Bank of Virginia, in turn, operation thereof as insurance agencies handling conowns 100% of the stock of Branch Building sumer credit insurance for The Bank of Virginia as Corporation, Virginia Branch Building Corporation, above found. Portsmouth Branch Building Corporation, and Peters- It is the custom and practice in Virginia, including burg Building Corporation, all of which are engaged the areas where the subsidiary banks of the Applicant solely in holding properties used by The Bank of Vir- operate, for banks, particularly those doing a subginia in its operations. The Bank of Warwick, in turn, stantial volume of consumer credit business, to have owns 100% of the stock of Bank of Warwick Building a related insurance agency to handle bank related Corporation, which is likewise engaged solely in insurance. Such relationships take the form of (i) the holding properties used by the Bank of Warwick in direct ownership of the insurance agency by the bank, its operations. Except for Virginia Standard, State- (ii) bank officers or employees being licensed as Wide, and the above-mentioned building corporations, agents and handling such insurance, or (iii) a close the Applicant has never acquired direct or indirect working relationship with a friendly insurance agency. ownership or control of any voting shares of any This custom and practice has been in existence at corporation which is not a bank. least since 1928 and has become more prevalent in The Applicant has 497,783 shares of common stock, recent years as more banks have gone into the conpar value $10 per share outstanding, which, as of sumer credit field. Until recent years, most automobile December 21, 1962, were held by 3,612 shareholders. financing was done by finance companies, all of whom Apparently it has approximately the same number of have some type of insurance connection providing austockholders at the present time. tomobile physical damage insurance, some even own- All of the subsidiary corporations of the Applicant ing their own insurance companies. It has been are corporations organized under the laws of the found that for a bank to do any volume of direct State of Virginia. All of the subsidiary banks of the dealer automobile financing in competition with other Applicant are engaged in the banking business pur- banks and finance companies it must have a connecsuant to the laws of that State. tion with an insurance agency that writes automobile The total resources of the subsidiary banks of the physical damage insurance. Those banks that do not Applicant, as of December 31, 1962, and expressed to maintain such a connection do very little business in the nearest thousand dollars, were as follows: the automobile finance field. Also approximately 95% The Bank of Virginia $176,059,000.00 of the banks in Virginia offer credit life insurance in Bank of Warwick $ 18,521,000.00 connection with their loans. Of those so offering credit life insurance 75% offer credit life insurance of The Bank of Salem $ 11,430,000.00 the type that must be written through an insurance The Bank of Occoquan $ 9,231,000.00 agency and have a connection with an agency for The Bank of Henrico $ 4,839,000.00 that purpose. The custom and practice of banks hav- Deducting inter-banks deposits among five banks, the ing a connection with insurance agencies which write total combined resources of the Applicant's subsidiary bank-related insurance has been known to and countebanks as of said date were $218,639,000.00. nanced by the regulatory authorities, both State and The Bank of Virginia, The Bank of Salem, and the Federal, although such authorities do not have avail- Bank of Warwick, members of the Federal Reserve able specific information as to the number of bank- System, are examined by the Board as well as by the connected agencies in Virginia. Bureau of Banking of the State Corporation Commission of Virginia. The Bank of Occoquan and The In Virginia, the regulatory authorities do not permit Bank of Henrico are examined by the Federal De- a bank, itself, to be licensed as an insurance agency. posit Insurance Corporation and by the Bureau of Although the Virginia law restricting investments by Banking of the State Corporation Commission Vir- banks would prohibit a bank from investing its funds ginia. in the stock of a corporate insurance agency, there Although the charters of Virginia Standard and is no prohibition against a bank's otherwise acquiring State-Wide contain broad general powers, as is and owning a corporate agency. Several Virginia customary in the case of Virginia business corpora- banks do own their own insurance agencies, and many tions, the activities of both corporations have been Virginia banks have an officer or employee who is limited to those of a financial or an insurance nature. licensed individually as an insurance agent. This is Until its acquisition of two-thirds of the stock of The a custom and practice that is not peculiar to banks Bank of Henrico in 1961, Virginia Standard had in a holding company system, but rather one which limited its business to that of an insurance agency. is necessary for and adopted by all banks doing a State-Wide, since its incorporation on January 2, 1962, large volume of consumer credit business, particularly has limited its activities to those of an insurance automobile financing. agency business. The advantages to a bank of having a connection It is contemplated that upon approval by the with an insurance agency, particularly an incorporated Board of the determination here involved, Virginia agency owned by the bank or its controlling interests, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 943 are substantial. Not only does a bank-related in- insurance within certain limits, The Bank of Virginia surance agency, keep its bank informed as to rates has been writing some of its credit life insurance and other matters involving automobile physical directly without the services of an agent or agency. damage insurance, but also through its agency agree- However, in cases of loans such as tuition loans, ments with the insurance companies which it repre- mortgage loans, and loans on heavy equipment that sents it can provide its bank with such protection as extend for more than five years or are in excess of immediate coverage, single-interest coverage and re- $10,000.00, credit life insurance must still be written strictions on mass cancellations. These protective through an insurance agent or agency. State-Wide features are not available to a bank when the in- serves as the agency through which the credit life surance is obtained by the borrower through inde- insurance is written for such loans made by The pendent agencies. Also, when the insurance is provided Bank of Virginia. When life insurance is required in by the borrower through independent agents or connection with a loan, the bank permits a borrower agencies, difficulties are encountered by the bank in who has life insurance to assign the policy to the bank securing evidence of insurance. Since immediate or the borrower may secure individual term insurance coverage is no afforded, the bank must incur the in- from an independent agent, but usually this can be convenience and expense of following up the trans- done only after the requirement of a physical examinaaction in order to be certain that insurance is actually tion and at higher premium cost than that for regular in effect. Through "master" or "franchise" policies credit life insurance. issued by the companies that it represents, the insurance agency originally operated by Virginia V. The Bank of Virginia and Its Branches Standard and now operated by State-Wide has been able to effect immediate coverage for The Bank of The Bank of Virginia was organized originally as Virginia and, therefore, these difficulties have been a Morris Plan Bank holding only sayings deposits avoided. Likewise, this insurance agency has been able and making only amortized loans to individuals. It to work out agreements with its insurance companies has expanded its business into the commercial bankproviding single-interest coverage to protect the bank ing field and has done more consumer credit business, to the extent of its loan even though the insurance probably more than any other bank or finance comcompany may decide that it does not wish to provide pany in Virginia. It now does a substantial consumer coverage to the purchaser of the automobile. Also, credit business with almost 50% of its outstanding the insurance companies have agreed that they will loans being amortized consumer loans. Compared with not, in any one month, cancel more than \2Vi% of most banks in the State which began as commercial the total amount of policies then outstanding. Such banks and which have only in recent years operated in provisions are not available where the borrower the consumer credit field, The Bank of Virginia has a chooses to place the insurance through an independent higher percentage of consumer loans. For example, agent or agency. Moreover, this insurance agency as shown by the evidence as of December 31, 1961, assists in adjusting claims and can see that the loss is The First and Merchants National Bank in Richmond promptly repaired and in doing so can usually arrange with $313 million of total resources had $12 million of to have any repair work done by the automobile consumer loans, or 4%. The Citizens Marine Jefferson dealer who originated the particular financing busi- Bank in Newport News with $22.8 million of total ness, thus furthering the bank's relationship with the resources had $3.9 million of consumer loans, or 17%. dealer. The National Bank of Commerce in Norfolk with $201 million of total resources had $39 million of Credit life insurance is life insurance written in consumer loans, or 19%. The Bank of Virginia, howconnection with specific indebtedness and is made ever with $171 million in total resources had $53 milavailable to the public only through association with lion in consumer loans, or 31%. a lending institution. It is designed generally to offer protection only to the extent of the remaining balance VI. Discussion of Case on the indebtedness and to provide low cost insurance without particular reference to the health or other The application herein requests a determination by personal condition of the borrower. It is normally pro- the Board that the prohibition of Section 4 of the Act vided on a group basis. It is of such a highly shall not apply to the acquisition and retention by the specialized nature that most general insurance agents Applicant, a bank holding company, of the stock of are not conversant in the terminology and are not State-Wide Insurance Agency, Inc. The Applicant, familiar with the procedures involved or the special although not a bank holding company at the time it statutes governing this type of insurance. Agency filed the application, became such, as found above, agreements between the insurance companies affording after approval by the Board of Governors. Virginia such insurance and the agency writing the insurance Standard Corporation has transferred and conveyed specify the lending company with respect to whose all of its insurance business to this nonbanking loans such insurance is written. Therefore, a close corporation in exchange for the stock, and said nonrelationship between the lending company and the banking corporation is now functioning as an active agency is necessary. business, and the subject of this inquiry is whether the The insurance agency originally operated as State- activities it is now engaged in and proposes to carry Wide Insurance Agency, Inc. and thereafter operated on are closely enough connected with the bank holdas Virginia Standard Corporation until the transfer ing business of the Applicant with respect to the bankof the insurance agency to a new corporation named ing subsidiaries of the Applicant. Thus, the real ques- State-Wide Insurance Agency, Inc., and thereafter and tion for determination in this proceeding is whether at the present time operated as State-Wide Insurance the activities of State-Wide Insurance Agency, Inc., Agency, Inc., has been writing and is now writing which the Applicant now owns indirectly through Vircredit life insurance for The Bank of Virginia except ginia Standard Corporation, and which, upon the conthat since the enactment of a Virginia statute in 1960 summation of the proposed merger of Virginia Standwhich permits lending institutions to write credit life ard Corporation into Virginia Commonwealth Cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 FEDERAL RESERVE BULLETIN • JULY 1963 poration, will be owned directly by the Applicant, are determined that exceptions are appropriate. of the kind described by Section 4(c)(6) of the Act (5) The present and proposed insurance operations so as to make it unnecessary for the prohibitions of of State-Wide Insurance Agency, Inc., are almost ex- Section 4 to apply in order to carry out the provisions clusively and closely connected with the operations of the Act. of The Bank of Virginia and the other subsidiary To qualify for the exemption under Section 4(c) banks of the Applicant. As found above, the insurance (6), it is first necessary that the nonbanking corpora- business of the original State-Wide Insuranc Agency, tion be of a "financial, fiduciary, or insurance nature." Inc., of Virginia Standard Corporation, and of the Here it is entirely clear that the activities of State- present State-Wide Insurance Agency, Inc., have Wide are of an insurance nature, in fact, only of an never advertised, solicited, or held themselves out to insurance nature. The question next arises whether the general public as insurance agents. They have such insurance activities are "so closely related to written insurance unconnected with the bank only in the business of banking or of managing or controlling rare instances where automobile dealers have been banks" as to be a "proper incident thereto" and to asked by purchasers of automobiles that loans be make it unnecessary for the prohibitions of the Act made by finance companies or other banks. To proto apply "in order to carry out the purposes" of the vide for such instances, the automobile dealers have Act. been appointed subagents by State-Wide Insurance As pointed out by the Hearing Examiner in Mon- Agency, Inc. Most of the insurance written by such tana Shares Incorporated, 47 Federal Reserve BULLE- subagents was in connection with loans from The TIN 767, at page 782, the Board has considered various Bank of Virginia. Some insurance was also written criteria in determining whether insurance activities by State-Wide Insurance Agency, Inc., on automobiles are sufficiently closely related to the banking business for which a loan made by The Bank of Virginia had involved in the particular case for the prohibitions of been paid, and upon notice to the insured from State- Section 4 not to apply. These criteria, as set out in the Wide that the insurance was expiring, the owner rebrief of the Applicant, are the following: quested that it be renewed. (1) The general practice in the area for banks to As pointed out in the Applicant's brief, these inhave a related insurance agency. stances of insurance when there is no immediate con- (2) Has the practice been in existence for some nection with a present loan by a bank is likely to retime? sult in new bank business when later a loan becomes (3) Has the practice continued without objection appropriate, as when a new purchase is made or from the bank authorities in the area? further credit is requested. These seem to be suffi- (4) Has the relationship been prevalent among ciently closely related to the bank's business as to nonholding-company banks or only among holding- justify broadening the insurance activities of Statecompany banks? Wide Agency to the extent requested. (5) Are the insurance agency operations related to (6) There can be no question that substantially bank operations? the business of State-Wide has in the past been related (6) Is a substantial part of the insurance business to The Bank of Virginia in connection with loans by done with customers of the banks? its customers and that in the future as contemplated it (7) The physical relationship of the insurance will be similarly carried on with the banks which are agency to the bank. subsidiaries of the Applicant. In 1961-1962, of 7,888 (8) Do bank employees operate the insurance automobile physical damages policies written, 7,667 agency? or 97.2% were written in connection with loans made (9) Is the insurance agency operation beneficial to by The Bank of Virginia. All of the credit life inthe operation of the bank? surance written through Virginia Standard (during its (10) Do bank customers obtain insurance volun- insurance agency operations) and State-Wide was in tarily? connection with loans made by The Bank of Virginia. These factors will be considered seriatim. It is reasonable to expect that the contemplated ex- (1) The evidence clearly shows a general practice pansion of the insurance business to the banks here inin Virginia for banks to have a related insurance volved as subsidiary banks of the Applicant will reagency and particularly in the consumer credit field of sult in similar substantial proportions. automobile loan financing. Such practice was recog- (7)—(8) Until 1953, the insurance business was nized by the Board in the case of The First Virginia operated on the premises of The Bank of Virginia and Corporation, 45 Federal Reserve BULLETIN 1247. by bank personnel. At that time, the insurance and (2) The evidence clearly indicates that such prac- banking authorities of the State of Virginia suggested tice has existed in Virginia for a number of years, that, while the relationship was apparently not illegal, witnesses giving the particular years of 1928 and the physical locations should be separated. The in- 1939 as times from which at least the practice has surance agency was then moved to a nearby building existed. and carried on by separate operating personnel em- (3) The testimony is without conflict that the bank- ployed by the insurance agency. That situation exists ing authorities have known of such practice and have today. The Bank of Virginia is located three blocks not objected thereto. The case of The First Virginia from the bank and is operated by its own personnel. Corporation mentioned above is in accord. (9) It is definitely indicated by the evidence that (4) It is apparent from the evidence that such the operations of State-Wide do benefit The Bank of practice is not peculiar to bank holding companies Virginia and will very likely definitely benefit the and their insurance agencies, but is at least equally other banks involved when its services are extended to prevalent among banks not affiliated with bank hold- them. As pointed out in the Applicant's brief, there ing companies. Thus, as indicated in a number of are numerous advantages, including authentic in- Board cases, the particular dangers sought to be de- formation and advice on insurance rates, on consumer feated by the prohibitions in Section 4 are not likely credit loans for the protection of the bank, immediate to be greater in bank holding company cases if it is coverage, protection to the bank to the extent of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 945 loan even if insurance is not given to the automobile 4. It is unnecessary for the prohibitions of Section purchaser, protection to the bank and to its customers, 4 of the Act to apply in order to carry out the purarrangements to discourage mass cancellations, and poses of the Act; and bank good will from dealers, repairmen, and the 5. The application herein should be granted. borrower by helping in handling claims, adjustments, I therefore make the following and repairs. (10) This question seems important, as one of the VIII. Recommendations potential evils in granting exceptions under Section 4 of the Act would be the coercion of a possible bank It is recommended that the Board of Governors borrower to take out his insurance with the bank's of the Federal Reserve System; particular insurance agency. The evidence as to past 1. Enter an order determining the issues in this practices is a clear denial of such practices and a proceeding in accordance with the Findings of Fact definite indication that it will not be included in the and Conclusions of Law above made, and expanded insurance service contemplated in this 2. Approve the proposed method of operation of plan. Since such practice is prohibited by law, it State-Wide Insurance Agency, Inc., as a wholly-owned would seem that it is unlikely to create a problem in subsidiary of Virginia Commonwealth Corporation, the future. in relation to the operations of the banks held or There is also to be considered in the matter of the managed or controlled by Virginia Commonwealth closeness of the relationship of the insurance Corporation as a bank holding company. operations with the banks involved, the proposed pos- Dated at Washington, D. C, this 29th day of sible expansion of types of insurance which the ap- March, 1963. plicant and the banks may wish, with reference to William R. Ringer, their own property, public liabilities which inhere Hearing Examiner. from their corporate and banking operations, or their relations with their employees. These are all clearly bank related, although not in connection with loans ORDER BY HEARING EXAMINER CORRECTING made by the banks. There is also a probability that in REPORT AND RECOMMENDED DECISION connection with loans by banks on which the physical property damage insurance is to be written, there will The Report and Recommended Decision issued on be a need and desire to include in one policy also March 29, 1963, is hereby corrected in the following public liability protection for the insured. This seems respects; so closely related that it is also proper, and the Board Corrected has already indicated such propriety. See First Page Line Erroneous Reading Reading Virginia Corporation, 45 Federal Reserve BULLETIN 1247; Otto Bremer, 46 Federal Reserve BULLETIN 1 2 since approval by Since an ex- 621. the Board change of stock It is thus apparent that the factors to be considered which took place in the closeness of the relationship of the insurance on December 21, operations and the bank operations are favorably 1962, pursuant to shown by the evidence as to the past and present, and approval by the the probability of definitely favorable answer for the Board expanded insurance service to the subsidiary banks. 6 1 2 U. S. C. A. § 12 U. S. C. A. § Even upon consideration of the less positive close- 11841 1841 ness with respect to insurance on occasional trans- U as it later became as it later became actions not immediately and directly connected with a on October 24, on December 21, present loan by one of the banks, I think the answer 1962 1962 is sufficiently favorable to justify and impel a general 4 under the name of under that same favorable indication of justified closeness of the re- Virginia Standard name by Virginia lationship present and prospective to bring the plant Corporation Standard Corpowithin the exceptions in Section 4. ration 15 1962, to the new 1962, were trans- VII. Conclusions of Lcnv ferred to the new 4 25 the the bank the bank Accordingly, upon the foregoing findings of fact and in accordance with my opinions as expressed in 8 1 and Virginia Stand- of Virginia Standthe foregoing discussion, I reach the following con- ard Corporation. ard Corporation. clusions of law: 15 43 three blocks from three blocks from 1. All the activities of State-Wide Insurance the bank and is the insurance Agency, Inc. are, and under the contemplated plan agency, which is will be, of an insurance nature; -7 8-9 said Virginia Com- said State-Wide 2. Virginia Commonwealth Corporation is a bank monwealth Corpo- I n s u r a n ce holding company within the meaning of Section ration Agency, Inc. 3(a)(l) of the Act; 17 10-11 said State-Wide In- said Virginia 3. The insurance activities of said Virginia Comsurance Asency, Commonwealth monwealth Corporation are so closely related to the Inc., Corporation. banking business of the subsidiary banks held, managed, or controlled by said State-Wide Insurance (Signed) William R. Ringer, Agency, Inc., and such managing and controlling of Hearing Examiner. such banks as to be a proper incident thereto; April 29, 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN DISCOUNT RATES AND IN MAXIMUM tributed materially to the substantial deficit in- INTEREST RATES PAYABLE ON TIME DEPOSITS curred once again in the balance of payments On July 16, the Federal Reserve System acted on during the second quarter of this year. two fronts to aid in the United States' efforts to Recently, market rates on U.S. Treasury bills combat its international balance of payments and other short-term securities have risen to levels problem. well above the 3 per cent discount rate that had The Board of Governors approved actions by prevailed for nearly 3 years, making it less costly the directors of the Federal Reserve Banks of for member banks to obtain reserve funds by bor- Boston, New York, Cleveland, Richmond, St. rowing from the Federal Reserve Banks rather Louis, Minneapolis, and Dallas, increasing the than by selling short-term securities. discount rates at those Banks from 3 per cent to The increased discount rates will reverse that 3Vi per cent, effective Wednesday, July 17, 1963. circumstance, making it once again more ad- The change was the first since mid-1960, when vantageous for member banks seeking reserve Federal Reserve Bank discount rates were refunds to obtain them by selling their short-term duced in two steps from 4 per cent to 3 per cent. securities rather than by borrowing from the Fed- The Board of Governors also increased to 4 eral Reserve Banks. Sales so made should have a per cent, effective Wednesday, July 17, the maxibolstering effect on short-term rates, keeping them mum rate of interest that member banks are permore in line with rates in other world financial mitted to pay on time deposits and certificates markets. with maturities from 90 days to 1 year. Since Meanwhile, the increase in the maximum rates January 1962 the permissible rate ceilings had of interest payable on time deposits and certifibeen 2>Vi per cent on time deposits and certificates with maturities from 90 days to 1 year will cates with maturities of 6 months to 1 year and permit member banks to continue to compete IVi per cent on those of 90 days to 6 months' effectively to attract or retain foreign and doduration. mestic funds for lending or investing. Payment of the higher rates was authorized by These actions to help in relieving the potential a revision of the Supplement to the Board's Regudrain on U.S. monetary reserves associated with lation Q. There were no changes in the maximum the long-persistent deficit in the balance of payrates that member banks are permitted to pay on ments do not constitute a change in the System's savings deposits. Neither were there any changes policy of maintaining monetary conditions conin the maximum rates on time deposits and cerducive to fuller utilization of manpower and other tificates having maturities of less than 90 days, resources in this country. which remain at 1 per cent, or on those of 1 year or more, where the ceiling remains 4 per cent. ADMISSION TO FEDERAL RESERVE MEMBERSHIP Both actions are aimed at minimizing short- During the period from June 15 to July 15, 1963, term capital outflows prompted by higher interest the Yellowstone Bank of Absarokee, Montana, rates prevalent in other countries. Preliminary in- was admitted to membership in the Federal Reformation indicates that short-term outflows con- serve System. 946 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication July 16 Industrial production and construction activity cate that auto assemblies will return to about the rose further in June while retail sales were again level in most earlier months of the 1963 modelunchanged. Reversing developments in May, young year. Output of business equipment, which turned people entered the labor market in less than ex- up in May after several months of little change, pected numbers and the unemployment rate de- rose further in June and was slightly above the clined slightly to 5.7 per cent. Bank credit rose previous high reached last October. sharply. The money supply and time and savings Iron and steel production was down 5 per cent deposits at commercial banks increased, and U. S. in June, and the decline is continuing in the cur- Government deposits rose to an unusually high rent month. Also, in June, production was curlevel. In early July interest rates, particularly tailed in the lumber industry because of strikes. short-term rates, increased. Meanwhile output of parts for business equipment and for consumer durable goods increased, and production of nondurable materials changed INDUSTRIAL PRODUCTION little. Industrial production rose 1 point further in CONSTRUCTION June to 125 per cent of the 1957-59 average. Output of final products—both consumer goods and New construction activity rose 2 per cent further business equipment—increased and was 2Vi per in June to about the advanced rate reached last cent higher than during the second half of 1962. October. Residential activity, already at a record Although steel ingot production turned down early rate in May, continued to increase while most in June in anticipation of the new labor contract other types of private activity changed little. Public that was signed late in the month, over-all output construction advanced moderately further but reof materials was unchanged. mained appreciably below earlier highs. Production of consumer goods increased in June reflecting mainly a rise of a tenth in autos from an DISTRIBUTION already advanced level. Schedules for July indi- In each month from February to June sales at retail stores were unchanged. In June, department INDUSTRIAL PRODUCTION stores sales rose 3 per cent and slightly exceeded 1957-59 = 100 the previous high set in March. Dealers' deliveries of new cars declined about 5 per cent from the advanced level in the earlier months of the 1963 model-year, and sales of used cars also declined moderately. AGRICULTURE The July 1 report of crop conditions indicated a harvested acreage 1 per cent larger than in 1962. Prospective crops of wheat, corn, soybeans, and sugar are larger than a year earlier. A smaller cotton crop is in prospect, reflecting a 10 per cent cut in acreage allotments. Commercial production of red meat in the first half of 1963 was 5 per F. R. indexes, seasonally adjusted. Latest figures shown are for June. cent above a year earlier. 947 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 FEDERAL RESERVE BULLETIN • JULY 1963 COMMODITY PRICES rose further, although less rapidly than early this year and in 1962. U.S. Government deposits in- Demands for nonferrous metals remained strong creased sharply in late June and at the month's end in late June and early July, and prices of lead, were about $11 billion, an unusually high level. zinc, and some aluminum products increased. Required and total reserves increased in June. However, prices declined further for steel scrap Excess reserves declined and member bank borand continued to change little for most other rowings from the Federal Reserve rose somewhat. sensitive industrial materials. There were few Reserves were absorbed principally through an changes in prices of fabricated industrial materials outflow of currency and were supplied through an and products, following a number of increases over increase of $400 million in System holdings of the previous 2 months. Among foodstuffs, prices U.S. Government securities. of livestock and meats changed little through June, but prices of steers rose sharply in early July. SECURITY MARKETS BANK CREDIT, MONEY SUPPLY, AND RESERVES In early July market expectations of higher interest rates developed, and the rate on 3-month Seasonally adjusted commercial bank credit in- Treasury bills rose from about 3.00 per cent at creased $4.6 billion in June, reflecting to some ex- the end of June to around 3.20 per cent in the tent Treasury financing activity. Holdings of U.S. second week of July. Yields on Treasury bonds Government securities rose sharply as banks ac- and those on corporate and State and local govquired Treasury bonds offered in a cash financing. ernment issues increased moderately. Holdings of other securities continued to expand Between mid-June and mid-July common stock rapidly and loans, particularly security loans, rose prices showed little net change, within a range substantially. The money supply increased, and 3 to 4 per cent below the peak of December 1961. time and savings deposits at commercial banks The volume of trading declined somewhat. RETAIL TRADE PRICES RETAIL SALES DEPARTMENT STORES TOTAL Af^ ALL COMMODITIES 1 1 1 1 -j ! ' 1 I -^ COMMODITIES FOODS ^-^^"*"<"—^ NONFOOD ~ COMMODITIES - TOTAL LESS - 1 1 1 1 ! i i ! AUTOMOTIVE GROUP^^"^^1 STOCKS,,.' PROCESSED FOODS ._,.. •••"• *^*SER VICES 1 1 1 1 1 1 1 1 FARM PRODUCTS 1 1 /v> 1 i 1 1. -^ F.R. indexes; retail sales based on Dept. of Commerce data. Seasonally adjusted figures; latest for stocks, May; other series, Bureau of Labor Statistics indexes. Latest figures shown June. for consumer prices, May; for wholesale prices, June. 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 r P R r e e v li i m se i d nary L Liabilities rp Revised preliminary S Financial sources of funds s net change in liabilities ' ra, iv Quarters U Financial uses of funds: net acquisitions of 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 ... Apr. 1963 542-550 (Feb. 1963 268-75 Banking and monetary statistics, 1962 \ Mar. 1963 394-95 (May 1963 720-23 Semiannually Banks and branches, number of, by class and Banking offices: Analysis of changes in number of Feb. 1963 266 State Apr. 1963 551-52 On. and not on, Federal Reserve Par List number of. Feb. 1963 267 Income and expenses: Federal Reserve Banks Feb. 1963 264-65 Member banks: Calendar year May 1963 710-18 Annually Operating ratios Apr. 1963 553-55 Insured commercial banks May 1963 719 Bank holding companies: List of, Dec. 31, 1962 June 1963 856 Banking offices and deposits of group banks, Stock Exchange firms, detailed debit and credit Dec. 31,1962 July 1963 1012 balances Sept. 1962 1234 950 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. 952 Reserve Bank discount rates; margin requirements; reserve requirements 956 Federal Reserve Banks 958 Bank debits; currency in circulation. 960 Money supply; banks and the monetary system 962 Commercial and mutual savings banks, by classes 964 Commercial banks, by classes. 968 Weekly reporting member banks 970 Business loans 973 Interest rates 974 Security prices; stock market credit; open market paper 975 Savings institutions . 976 Federal finance; Federally sponsored credit agencies 978 Security issues 983 Business finance 987 Real estate credit 989 Consumer credit 992 Industrial production 996 Business activity 1000 Construction 1000 Employment and earnings 1002 Department stores 1004 Wholesale and consumer prices 1006 National product and income series 1008 Flow of funds, saving and investment 1010 Bank holding companies, December 31, 1962 1012 Guide to tabular presentation 950 Index to statistical tables 1037 The data for F.R. Banks, member banks, and ties are obtained from Treasury statements; department stores, and consumer credit are the remaining data are obtainedlargely from derived from regular reports made to the other sources. For many of thebanking and Board; production indexes are compiled by the monetary series back data and descriptive text Board on the basis of data collected by other are available in Banking and Monetary Staagencies; figures for gold stock, currency, Fed- tistics and its Supplements (see list of publieral finance, and Federal business-type activi- cations at end of the BULLETIN) 951 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 BANK RESERVES AND RELATED ITEMS JULY 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 than member bank ! Member bank P d e o a r r i t o e d T U o t S a . l G B o o r v o i u g u t. g h t - s h t e t cu R m c r a i e h g t e p i a r n e e u s s t e e r s - - c v D o a a a n u n d is d c n - - e ts s oat! tafz s G to o c ld k s r o c e t u i a u n u n r n r g y c t - - d y - r c C t e c u i i n u i o n l r c a r n - - y - T h c i u r o n a e r g l s a v d h s s - - Tr u e w r a y i s t - h !e F s e F . s R i o g rv . r n - e B s, a O n t k h s er' c C 1 > - • a > . t c R u h - n e . t r s B W F a . n R it k h . s r c e r C s o e a e n n u in r c d r v - y 3 es Total i 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 8 831 2,612 17,518 2,956 7,609 2,402 616 739 248 11 473 11.473 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1,531 292 12 812 12,812 1945_Dec 23,708 23,708 381 652 i 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 ,117121,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1951—Dec 23,409 23,310 99 657! 1,375 25.446 22,483 4,701 29,139 1,280 271 571 264 796 20.310 20,310 1952—Dec 24,400 23.876 524 1,633 ,26227.299 23,276 4 806 30,494 1,271 569 745 290 832 21 180 21 180 1953—Dec . .. 25,639 25,218 421 448 ,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 '9 279 19,279 1955—Dec 24,602 24,318 284 840 ,38926.85.3 21,689 5,008 31,265 111 434 459| 394 983 19.240 19,240 1956—Dec 24,765 24,498 267 706 ,633127.156 21,942 5,064 31,775 772 463 372{ 247 998 19.535 19 535 1957—Dec 23,982 23,615 367 716 ,44326,186 22,769 5.144 31,932 768 385 3451 186 .063 19 420 19,420 1958—Dec 26,312 26,2*6 96 564 ,49628,412 20,563 5,230 32,371 691 470 262 337 174 18,899 18,899 1959—Dec. 27,036 26,993 43 911! ,42629.435 19,482 5.311 32.775 396 524 361 348 ,195 18 628 304 18.932 1960—Dec 27,248 27,170 78 94! ,665 29.060 17,954 5,396 33,019 408 522 250 495 ,029 16.688 2,595 19,283 1961—Dec 29,098 29,061 37 152; ,92131,217 16,929 5.587 33,954 422 5*4 229 244 17 259 2,859 20,118 1962—June 29.568 29.510 58 154 ,50831,265 16,434 5.601 33.626 402 514 269 322 971 17,196 2,728 19,924 July 29,581 29,540 41 109 ,73631,475 16,310 5,602 33.989 398 490 273 312 654 17,272 2,771 20,043 30,088 30,074 14 143 ,33031,600 16,136 5,598 33,962 405 524 200 335 764 17,144 2,780 19,924 Sept 29,921 29,865 56 91j 1,76031,807 16,079 5,548 34,004 398 500 211 296 799 17,227 2,807 20,034 Oct 30,241 30,178 63 76 ,70532,057 16,050 5.552 34,111 404 517 216 320 710 17 382 2,823 20,205 Nov 30,195 30,064 131 120! 1,69432,053 15,978 5.552 34,584 400 472 202 293 925 16,706 2,898 19,604 Dec 30,546 30,474 72 305 I ?9833,218 15,978 5,561 35,281 398 587 222 290 048 16,932 3,108 20,040 1963—Jan 30,198 30,148 50 101 2,27832 663 15 950 5.568 34 574 422 777 226 299 976 16,909 3,126 20,035 Feb 30,541 30,355 186 181 1,50332,287 15,922 5,567 34,230 437 832 208 305 1,041 16,724 2,857 19,581 Mar 30,613 30,507 106 185) 1,62632,477 15,878 5,576 34,431 446 878 188 185 .095 16,707 2 809 19,516 Apr 30,897 30,833 64 151 I.S9632,692 15,878 5,578 34,719 436 917 183 199 ,0?? 16,671 2,903 19,574 May 31,138 31,041 97 229! 1,56032,972 15,834 5,576 34,879 423 890 171 183 ,075 16,761 2,915 19,676 June 31 540 31,446 94 236 63533,454"15 785 »35.292 ''401 794 193 216 16,800r2 928>;19,728 Week ending— 1962 May 2 29,188 29,093 95 128 1,351 30,704 16,494 5,590 33,133 419 607 213 366 958 17,091 2.777 19,868 9... 29.634 29,467 167 112 1.245 31,025 16,490 5,594 33,267 419 502 224 372 956 17,369 2,483 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 66731 153 16 434 5 593 33,327 419 599 237 327 1 132 17 P8 2 693 19 831 30 29,560 29,560 151 1,191 30,935 16,434 5.594 33,33' 418 524 208 344 1.130 17,007 2 802 19,809 June 6 29 837 29 837 117 I 21131 198 16 434 5 597 33 534 413 474 209 3*7 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 77 180 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 87 216| 1 66831,236 16,433 5.600 33,584 396 550 343 266 886 17,244 2,818 20,062 1 July 4 29,884 29,707 177 153 1 49831,597 16,435 5,600 33,863 391 533 330 290 699 17,527 2.713 20.240 11 29 962 29,870 92 81 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 O39|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 968131 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 1,346 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 1,150 31,559 16,148 5,603 33,938 417 488 217 331 692 17,226 2,589 19,815 15 30,177 30,160 17 145 1,279 31,642 16,148 5,596 34,059 402 598 198 375 703 17,050 2,763 19,813 22 29,902 29,890 12 171 1,684 31,795 16,147 5,597 34,003 397 553 189 325 827 17,247 2,763 20,010 29 30,019 30,019 92 1,287 31,433 16,112 5,601 33,870 404 502 192 314 820 17,044 2,870 19,914 Sept. 5.... 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 12 30,396 30,269 127 89 1,400 31,921 16,093 5,550 34,167 392 503 204 293 839 17,165 2,787 19,952 19 . ... 29,748 29,748 36 2,13631,955 16,067 5,544 34,045 390 579 222 284 774 17,273 2,886 20,159 26 29,340 29,340 152 2,17631,702 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 16,067 5.552 33,914 400 476 217 323 754 17,352 2,822 20,174 10 30,682 30,546 136 56 1,645 32,416 16,067 5,555 34,102 410 513 243 314 751 17,706 2,627 20,333 17 30 480 30,385 95 82 1,633 32,229 16,067 5,551 34,256 397 480 214 336 111 17 445 2 861 20 306 24. 29 931 29,931 67 2,08332,116 16,052 5,551 34,115 398 519 211 315 684 17,476 1 882 20,358 31 29,888 29,853 35 91 1,475 31,491 16,006 5,552 34,042 406 541 207 311 672 16,872 2,935 19,807 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 BANK RESERVES AND RELATED ITEMS 953 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 Total tal 2 s G to o c ld k T r s o c r e t u i e a n u n u r a n g r c y 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 - I T h c i r u o n e a r l g a s y d h s s - - T t r u h e w r a a y i s n t - h m r e F e s F e . m e R i o g rv b . r n - e e B s r , a O b n a t k h n s e k r i Me r m es b e e r r v e b s an T k otal Averages of daily figures Week ending— 1962 Nov. 7 30,235 30,048 187 170 1,247 311,686 15,977 5,555 34,231 410 392 184 302 822 16,878 2,681 19,559 30,378 30,138 240 156 1,300 311,868 15,978 5,550 34,560 401 523 216 309 798 16,589 2,828 19,417 14 30,104 30,044 60 105 2,056 322,,299 15,978 5,550 34,684 394 464 193 289 1,020 16,783 2,902 19,685 30,012 29,994 18 103 2,109 322,225599 15,978 5,551 34,803 400 488 214 262 1,023 16,597 3,033 19,630 28'.'. '.'. '.'. '. 30,411 30,223 188 93 1,832 32,373 15,977 5,556 34,860 390 500 207 315 1,068 16,565 2,964 19.529 Dec. 5 30,698 30,603 95 109 32,629 15,977 5,559 35,226 402 478 207 268 1,068 16,517 3,010 19,527 12 30,493 30,493 164 2,44333.163 15,978 5,560 35,366 399 669 208 277 1,011 16,771 3,182 19,953 19 30,510 30,489 'ii 308 2',842 33',733 15,978 5,564 35,471 395 665 210 295 1,026 17,212 3.113 20.325 26 1963 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 2,728 33,286 15,978 5,572 35,022 423 711 226 306 991 17,157 3,139 20,296 Jan. 126 30,227 30,227 80 2,392 32,784 15,963 5,563 34,694 412 767 232 298 980 16,927 3,173 20,100 23 29,898 29,898 172 2,307 32,464 15,928 5,567 34,361 429 823 225 281 960 16,881 3,034 19,915 30 30,123 29,975 148 101 1,615 31,916 15,928 5,571 34,080 432 837 220 297 966 16,583 3,028 19,611 Feb. 6. 30,540 30,235 305 225 1,358 32,194 15,928 5,569 34,107 421 783 206 297 971 16,907 2,777 19,684 13. 30,786 30,447 339 165 1,319 32,330 15,928 5,563 34,263 427 838 212 298 959 16,825 2,799 19,624 20. 30,392 30,337 55 157 1.702 32,312 15,928 5,566 34,293 444 901 187 310 1,086 16,586 2,926 19,512 27. 30,405 30,361 44 159 1,596 32,219 15,913 5,570 34,228 454 801 230 314 1,125 16,550 2,927 19,477 Mar. 6.... 30,552 30,402 150 172 1,665 32,444 15,878 5,573 34,282 448 856 188 213 1,135 16,772 2,745 19,517 13... . 30,651 30,528 123 168 ' 1,402 15,877 5,576 34,454 450 783 191 181 1,114 16,682 2,740 19,422 20.... 30,430 30,430 87 1,441 15,878 5,577 34,511 448 845 180 191 1,073 16,648 2,857 19,505 27.... 30,635 30,519 116 271 ,598 32,555 15,878 5,576 34,415 451 1,014 186 174 1,078 16,690 2,908 19,598 Apr. 3. 30,997 30,855 142 204 345 32,596 15.878 5,577 34,535 428 895 189 191 1,074 16,740 2,868 19,608 10. 31,188 31,106 82 117 12,779 15,878 5,578 34,745 441 897 184 194 1,076 16,696 2,675 19,371 17. 30,988 30,946 42 187 630 32,853 15,878 5,574 34,915 427 826 190 216 1,001 16,730 2,960 19,690 24. 30,589 30,589 188 919 32,743 15,877 5,578 34,685 437 996 191 192 987 16,710 3,019 19,729 May 1 30,808 30,646 162 124 1,522 32,500 15,877 5,582 34,583 438 963 167 196 997 16,615 3,029 19,644 8.... 31,350 31,113 237 141 1,545 33,081 15,864 5,580 34,755 435 969 172 191 990 17,012 2,703 19,715 15.... 31,333 31,211 122 229 1,471 33,077 15,828 5,570 34,933 416 1,047 156 189 984 16,750 2,910 19,660 22.... 30,914 30,914 304 1.899 33,163 15,828 5,574 34,896 422 931 190 177 1,162 16,787 2,896 19.683 29.... 30,910 30,910 266 1,44632,667 15,819 5,578 34,911 419 673' 168 174 1,155 16,565 3; 034 19,599 i June 5. 31,293 31,191 102 216 1,318 32,868 15,797 5,583 35,108 407 643 169 183 1,156 16,582 2,856 19,438 12. 31,587 31,513 74 249 1,382 33,261 15,797 5,581 35,298 402 774 218 205 1,156 16,587 2,841 19,428 19. 31,317 31,244 73 284 1.853 33,498 15,798 5,582 35,331 404 781 202 237 1,111 16,813^2,983^19.796 26. 31,583 31,430 153 234 1.854 33,714 15,779 5,582 35,279 402 892 185 217 1,099 17,001 3O53*2O'.O54 End of month 1963 t Apr 31,182 30,691 491 153 446 32,825 15,877 5,581 34,645 420 952 160 206 997 16,904 3,171 20.075 May 31,254 31,101 153 208 304 32,808 15,797 5,583 35,067 391 651 171 177 1,155 16,574 3,164 19;738 June 32,027 31,988 39 96 638 33.804"15,733"5,588!'35,455 806 175 242 1,097 16,965^2.649 "19,614 Wednesday 1963 \ May 1 31,394 31,042 3521 1531 ,474 33,065 15,878 5,580 34,660 443 960 170 183 1,001 17,106 3,172 20,278 31,382 31,224 1581 382i ,233 33,041 15,828 5,567 34,905 423 984 183 194 976 16,771 2,881 19,652 15. 31,289 31,184 105 642 ,42133,396 15,828 5,572 34,964 418 1,050! 167 193 ,173 16,830 3,292 20,122 2 2 9 2 . . 3 3 0 1 , , 8 0 3 8 5 9 3 3 0 1 , , 8 0 3 8 5 9 'I 7 1 6 4 9 9 , ,1 4 0 2 1 0 3 3 2 3 , , 3 0 8 6 1 8 1 1 5 5 , , 8 7 2 9 8 8 5 5 , , 5 5 7 8 5 3 3 3 4 5 , , 8 0 9 7 1 7 4 4 1 3 8 3 6 8 0 3 9 0 ' 1 1 5 5 6 6 1 1 7 8 6 5 1, , 1 1 5 5 1 0 1 1 6 6 , , 8 1 3 6 6 6 3 3, , 3 2 8 1 5 0 2 1 0 9, , 5 0 5 4 1 6 June 5 31,561 31,531 30 171 ,305 33,079 15,798 5,585 35,235 415 499! 164 189 ,161 16,800 2,950 19,750 12 31,692 31,545 147 255 ,258 33,247 15,798 5,581 35,349 409 6341 219 243 1,103 16,669 3,242 19.911 19 31,586 31,340 246 754 ,68434,069 15,798 5,582 35,339 410 873 167 242 1,122 17,297^3,274 >20; 571 26 31,597 31,448 149 612 ,41133,658 15,733 5,582 35,357 402 1,054 182 211 ,103 16,664^3,387^20,051 1 Beginning with 1960 reflects a minor change in concept, see Feb. 3 Part allowed as reserves Dec. 1, 1959-Nov. 23, 1960; all allowed 1961 BULL., p. 164. thereafter. Beginning with Jan. 1963 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

954 BANK RESERVES AND RELATED ITEMS JULY 1963 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city bank"5 All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Borr in ow gs - Free r in ow gs - Free r in ow gs - Free at re- at re- at re- T h o e t l a d l qu R i e r - ed Excess B F a . n R k . s serves T h o e t l a d l qu R i e r - ed Excess B F a . n R k . s serves T h o e t ld al qu R i e r - ed Excess B F a . n R k . s serves 1929—June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 12,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec 11,473 6,462 5,011 5,008 5,623 3,012 2,611 2,611 ,141 601 540 540 1941 Dec 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 J43 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 ,024 1,011 13 6 7 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 ,199 1.191 8 5 3 1951—Dec 20,310 19,484 826 657 169 5,275 5,231 44 151 -107 ,356 >W 3 64 -61 1952—Dec 21,180 20,457 723 1,593 -870 5,357 5,328 30 486 -456 ,406 ,409 -4 232 -236 1953—Dec 19,920 19,227 693 441 252 4,762 4,748 14 115 -101 ,295 ,295 1 37 -36 1954—Dec 19,279 18,576 703 246 457 4,508 4,497 12 62 -50 ,710 ,710 -1 15 -16 1955_Dec 19,240 18,646 594 839 -245 4,432 4,397 35 197 -162 ,166 ,164 2 85 -83 1956—Dec 19,535 18,883 652 688 -36 4,448 4,392 57 147 -91 149 ,138 12 97 -86 1957—Dec 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 ,136 ,127 8 85 -77 1958—Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 —81 077 ,070 7 39 -31 1959 Dec 18,932 18,450 482 906 -424 3,920 3,930 — 10 99 -109 1.038 .038 104 -104 I960—Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1961 Dec . 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962—June 19,924 19,433 491 100 391 3,781 3,774 7 19 -12 976 977 -1 2 -3 July 20,043 19,514 529 89 440 3,766 3,732 34 16 18 ,000 989 10 4 6 AUK 19,924 19,358 566 127 439 3,709 3,684 24 17 7 ,017 jOn 4 18 -14 Sept 20,034 19,579 455 80 375 3,718 3,723 -4 15 -19 ,071 ,07? -1 9 -10 Oct 20,205 19,721 484 65 419 3,774 3,736 38 4 34 ,036 ,03? 5 6 — 1 Nov 19,604 19,012 592 119 473 3,627 3,601 27 14 13 ,007 ,001 6 13 -7 Dec 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 ,04? ,035 7 18 -11 1963—Jan 20,035 19,552 483 99 384 3,857 3,840 18 5 13 ,038 037 1 7 -6 Feb 19,581 19,109 472 172 300 3,721 3,704 17 42 -25 1,016 ;oi? 4 15 -11 Mar 19,516 19,090 426 155 271 3,752 3,734 19 27 -8 ,009 ,008 1 38 -37 Apr 19,574 19,140 434 121 313 3,727 3,716 11 12 -1 ,003 998 5 14 -9 May 19,676 19,219 457 209 248 3,769 3,735 34 34 1.025 ,025 8 -8 June ^19,728^19,352 P376 236 ?'14O *>3,722 ^3.742 p-20 39 P-59 P1,029 0M P-3 3 P-6 Week ending— 1962—June 6 ... 19,801 19,289 512 55 457 3,740 3,733 7 7 962 970 7 "7 13 19 638 19,245 393 47 346 3,691 3 689 2 1 963 959 4 4 20 20,038 19,568 470 124 346 3,831 3,807 24 36 -12 982 986 -4 7 -12 27 20,062 19,569 493 168 325 3,827 3,813 14 35 -22 993 986 7 1 6 1963—Jan. 2 21,079 20,045 1,034 714 320 4,180 4,030 149 299 -150 1,102 1,092 10 65 -55 9 . 20,296 19,858 438 63 375 3,973 3,934 39 39 1.063 1,056 7 2 6 16 20,100 19,579 521 79 442 3,816 3,818 <2 6 -8 1,028 1,029 -1 12 -12 23 19,915 19,429 486 170 316 3,811 3,793 18 13 5 1,030 1,025 6 9 -3 30 19,611 19,180 431 99 332 3,757 3,746 11 11 1,019 1,017 2 7 e Feb. 6 19,684 19,227 457 223 234 3,785 3,777 8 54 -46 1,030 1,024 6 15 -9 13 19,624 19,121 503 165 338 3,707 3,683 24 14 10 1,011 1,008 3 44 -41 20.... 19,512 19,087 425 157 268 3,699 3,682 17 51 -34 1,011 1,006 5 1 4 27 19,477 19,010 467 129 338 3,691 3,682 10 34 -24 1.004 1,009 -5 -5 Mar 6 .. 19,517 19,121 396 142 254 3,746 3,740 6 36 -30 1,032 1,022 9 9 13.... 19,422 18,933 489 137 352 3,696 3,667 29 20 8 990 994 -4 26 -30 20 19,505 19,129 376 57 319 3,775 3,773 2 6 -3 1,023 1,011 12 1 11 27 19,598 19,135 463 241 222 3,752 3,730 21 40 -19 1,016 1,012 4 112 -108 Apr. 3 19,608 19,154 454 174 280 3,787 3,767 20 31 -11 1,003 994 8 29 -21 10.... 19,371 18,997 374 87 287 3,668 3,669 -1 7 -8 982 981 1 6 -5 17 19,690 19,157 533 157 376 3,736 3,701 36 24 12 995 994 1 36 -35 24 19,729 19,216 513 157 356 3,719 3,715 5 18 -13 1,006 1,003 4 15 -11 May 1 19,644 19,244 400 94 306 3,848 3,799 49 49 1,020 1.023 q 3 -6 8 19,715 19,354 361 110 251 3,839 3,822 17 17 1,032 1,027 5 26 -21 15.... 19,660 19,201 459 199 260 3,702 3,711 -9 53 -62 1,021 1,019 3 5 -3 22 19,683 19,230 453 281 172 3,753 3,729 24 81 -57 1,035 1,031 4 2 2 29.... 19,599 19,122 477 266 211 3,737 3,683 54 15 39 1,027 1,024 3 2 1 June 5.... 19,438 19,098 340 216 124 3,672 3,662 10 11 -1 1,028 1,025 2 3 -1 1 1 9 2.... ^ 1 1 9 9 , , 4 7 2 9 8 6*> 1 1 9 9 ,0 ,2 0 9 9 7 P 4 4 1 99 9 2 2 4 8 8 4 P2 1 1 7 5 1 3 3 , ,7 6 4 3 9 2 3 3 , , 6 7 2 4 1 3 12 < 6 1 3 8 - - 5 6 8 1 1, , 0 0 1 1 6 2 1 1, , 0 0 2 0 1 9 3 5 2 3 -8 1 26 ^20,054P19,674 2>380 234 P146 3,848 3,828 20 73 -53 1,058 1,051 7 5 2 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 BANK RESERVES AND RELATED ITEMS 955 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow- Reserves Borrow- Free ings at Free T h o e t ld al Required Excess Banks reserves T h o e t l a d l Required Excess B F a . n R k . s reserves 1929—June 761 749 12 409 -397 632 610 22 327 -305 I933_june 648 528 120 58 62 441 344 96 126 -30 1939 Dec 3,140 1,953 1,188 1,188 1,568 897 671 3 668 1941_Dec 4 317 3,014 1,303 1 1,302 2 210 1,406 804 4 800 1945_Dec 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 1947 Dec 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950—Dec 6,689 6,458 232 50 182 4,761 4,099 663 29 634 1951—Dec 7,922 7,738 184 354 — 170 5 756 5,161 596 88 508 1952—Dec 8,323 8,203 120 639 -519 6,094 5,518 576 236 340 1953—Dec 7,962 7,877 85 184 -99 5,901 5,307 594 105 489 1954—Dec 7,927 7,836 91 117 -26 5,634 5,032 602 52 550 1955—Dec 7,924 7,865 60 398 -338 5,716 5,220 497 159 338 1956—Dec 8,078 7,983 96 300 -203 5 859 5,371 488 144 344 1957 Dec . 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 1958—Dec 7,940 7,883 57 254 -198 5,849 5,419 430 162 268 1959—Dec 7,954 7,912 41 490 -449 6 020 5,569 450 213 237 1960—Dec 7,950 7,851 100 20 80 6,689 6,066 623 40 583 1961—Dec 8,367 8,308 59 39 20 6,931 6,429 502 31 471 1962 June 8,270 8,209 61 45 16 6,896 6,473 423 34 389 July 8,306 8,266 40 40 6,972 6,526 445 29 416 8,182 8,129 52 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 7,995 7,951 44 60 -16 6 975 6,459 515 32 483 Dec 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 1963 Jan 8,115 8104 10 60 -50 7,025 6,572 453 27 426 Feb 7,945 7,919 25 80 -55 6,899 6,474 425 35 390 Mar 7,936 7,916 20 50 -30 6 818 6,432 386 40 346 Apr 7,995 7,965 29 54 -25 6,849 6,461 388 41 347 May 8,013 7,962 51 117 -66 6,868 6,496 372 50 322 June "8,037 129 "6,562 *>378 65 Week ending— 1962—June 6 8,201 8,152 49 26 23 6,897 6,434 463 29 433 13 8,174 8,139 36 13 23 6,810 6,458 352 33 318 20 8,307 8,274 33 64 -31 6,919 6,501 418 17 401 27. 8,325 8,288 38 69 -31 6,918 6,483 435 63 372 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 7,105 6,601 504 13 490 23 8,077 8,036 41 115 -74 6,997 6,576 421 33 388 30 7,972 7,938 34 53 -19 6,862 6,479 383 38 345 Feb. 6 7,982 7,960 22 90 -68 6,887 6,467 420 64 356 13 7,950 7,927 23 80 -57 6,956 6,503 453 27 426 20 7,944 7,923 21 75 -54 6,858 6,476 382 30 352 27 7,895 7,869 26 70 A ^ 6,887 6,451 436 25 411 Mar. 6 7,940 7,910 31 70 -39 6,800 6,449 350 36 314 13 7,897 7,854 42 50 -3 6,840 6,417 423 41 382 20 7.93S 7,915 23 20 3 6 769 6,430 338 30 308 27 7,969 7,951 18 50 -32 6,861 6,441 420 39 381 Apr. 3 8,007 7,969 38 49 -11 6,810 6,423 387 65 322 10 7,947 7,921 26 47 -21 6,774 6,427 347 27 32C 17 8,045 7,993 51 37 14 6,914 6,469 445 60 385 24 8,012 7,992 20 101 -81 6,991 6,506 485 23 462 May 1 7,987 7,966 21 49 -28 6,789 6,457 333 42 291 8,053 8,025 27 58 -30 6,792 6,480 312 26 285 15 7,994 7,954 40 89 -49 6,943 6,517 426 52 374 22 7,986 7,957 29 161 -132 6,910 6,513 397 37 360 29 8,012 7,928 84 172 -88 6,823 6,487 336 77 259 June 5 7,937 7,913 24 128 -104 6,801 6,497 304 74 230 12 7,893 7,869 24 150 -126 6,891 6,511 380 78 302 19 8,014 7,986 28 159 -131 »7,018 »6,547 »471 59 26 8,194 8,163 31 81 -50 »321 75 ^246 i This total excludes, and that in the preceding table includes, $51 Nov. 1959; thereafter on closing figures for balances with F.R. Banks million in balances of unlicensed banks. and opening figures for allowable cash: see also note 3 to preceding table. Required reserves: Based on deposits as of opening of business each NOTE.—Averages of daily figures. Beginning with Jan. 1963 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

956 DISCOUNT RATES JULY 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 i Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous June 30 date rate June 30 date rate June 30 date rate Boston, Aug. 23,1960 Aug. 23, 1960 Aug.23, 1960 New York . . . Aug. 12,1960 Aug. 12, 1960 June 10, 1960 Philadelphia.. Aug. 19,1960 Aug. 19, 1960 Aug.19, 1960 Cleveland Aug. 12,1960 Aug. 12, 1960 Aug. 12, 1960 Richmond. . . Aug. 12,1960 Aug. 12, 1960 Aug.12, 1960 Atlanta Aug. 16,1960 Aug. 16, 1960 Aug. 16, 1960 Chicago Aug. 19,1960 Aug. 19, 1960 June 10, 1960 St. Louis Aug. 19,1960 Aug. 19, 1960 Aug.19, 1960 Minneapolis.. Aug. 15,1960 Aug. 15, 1960 Aug. 15, 1960 Kansas City.. Aug. 12,1960 Aug. 12, 1960 Aug. 12, 1960 Dallas. Sept. 9,1960 Sept. 9, 1960 Sept. 9, 1960 San Francisco Sept. 2,1960 Sept. 2, 1960 June 3, 1960 i 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 I F.R. Range F.R. Effective (or level)— Bank Effective (or level)—; Bank Effective (or level)— Bank date all F.R. of date all F.R. I of date all F.R. of Banks N.Y. Banks I N.Y. Banks N.Y. In effect Dec. 31, 1932 2V4 1950 1957—Cont. Aui-S::::: WI-WA WA Nov. 15 3 -3 1933 WA WA Dec. 2 Mar. 3 4 1953 1958 Apr. 7 Jan. 16 WA-2 Jan. 22 May 26 2* 23 24 Oct. 20 2 -3 Mar. 7 214-3 1954 13 1934 Feb. 5 WiA-12 21 21/4 Feb. 2 15 Apr. 18 t WA Mar. 16 Apr. 14 May 9 WA 1935 May 2 1 1 6 Aug. 15 A-2 I* Jan. 11 Sept^::::::::::::::: A-2 May 14 1955 Oct. 24 2 2 S A e u p g t . . 2 4 7 1937 1 1 - - 1 2 V4 A A M p u a r g - y . & 4 2 :::: W IV A L W - - 2 W V A A A N M o a v r. . 6 7 1959 2% -2i/2 2 2 V4 Apr. 11 1942 Sept-. n i- .Y :: . . Y . . 2 2 W A f -2V - < 2 A VA J M u a n y e 2 1 1 9 2 6 3 3V -3 i »/2 Oct. 3 1 0 5 Nov. 2 1 3 8 Sept. 1 1 1 8 3V4-4 1946 1956 1960 Apr. 25 Apr. 13 2Vi-l June 3 4 May 10 Aug. 2 2 4 0 2VA -3 1 1 0 4 3V2 1948 31 Aug. 12 3 -3 Jan. 12 1 -WA Sept. 9 19 WA 1957 Aug. 13 1K1% 3 -3 1963 23 In effect June 30 1 Preferential rate of lA 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 rate 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

JULY 1963 RESERVE REQUIREMENTS 957 MAXIMUM INTEREST RATES PAYABLE ON TIME AND RESERVE REQUIREMENTS OF MEMBER BANKS SAVINGS DEPOSITS (Per cent of deposits) (Per cent per annum) Net demand deposits * Time deposits Effective date Time deposit Central Ja 1 n 93 . 6 1, Ja 1 n 95 . 7 1, Ja 1 n 96 . 2 1, Ju 1 l 9 y 6 1 3 7, Effective date * b C re a e c s n n i e k t t r y s r v a e 3 l R b e c a s i n e ty k rv s e C ba o tr n u y k n s - r r e e a c s s i n e e t r r d y v v e e C ba o tr n u y k n s - Sayings deposits held for: banks L 1 e y s e s a t r h a o n r m 1 o y r e e ar } m 3 { *m 4 3% In effect Dec. 31, 1948.. 26 22 16 Postal savings deposits held for: 1949—May 1,5 24 21 15 7 7 1 year or more } m 3 { k June 30, July 1.. 20 14 6 6 Less than 1 year { 3i/2 Aug. 1,11 8* 13 5 Aug. 16, 18 12 5 Other time deposits pay- { Aug. 25 ga abl 1 e y in ea : r l or more }« 3 ¥ i 4 1951— S Ja e n p . t . 1 1 1, 16 ,, 23 15* 13 6 6 6 months-1 year Jan. 25, Feb. 1. 24 14 90 days-6 months 1953—July 1,9 22 19 13 Less than 90 days 1954—June 16,24 21 20 5 5 July 29, Aug. 1. 20 1189 12 1 For exceptions with respect to foreign time deposits, see Oct. 1962 1958—Feb. 27, Mar. 1. 8* 17» BULL., p. 1279. Mar. 20, Apr. 1. Apr. 17 iS NOTE.—Maximum rates that may be paid by member banks as estab- Apr. 24 16% lished by the Board of Governors under provisions of Regulation Q. 1960—Sept. 1 Under this Regulation the rate payable by a member bank may not in Nov. 24 \2 any event exceed the maximum rate payable by State banks or trust com- Dec. 1 16% panies on like deposits under the laws of the State in which the member bank is located. Effective Feb. 1, 1936, maximum rates that may be 1962—Oct. 25, Nov. 1. 4 4 paid by insured nonmember commercial banks, as established by the FDIC, have been the same as those in effect for member banks. In effect July 1, 1963... 16% 12 4 4 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, 2V4 per cent. Present legal requirement: Minimum 10 7 3 3 MARGIN REQUIREMENTS Maximum 14 6 6 (Per cent of market value) 1 When two dates are shown, first-of-month or midmonth dates record changes at country banks, and other dates (usually Thurs.) record changes Effective date at central reserve or reserve city banks. 2 Demand deposits subject to reserve requirements are gross demand Regulation deposits minus cash items in process of collection and demand balances Oct. 16, July 28, July 10, due from domestic banks. 1958 1960 1962 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. Regulation T: * Before July 28, 1959, the minimum and maximum legal requirements For extensions of credit by brokers and for central reserve city banks were 13 and 26 per cent, respectively, and dealers on listed securities 90 70 50 the maximum for reserve city banks was 20 per cent. For short sales 90 70 50 Regulation (J: NOTE.—All required reserves were held on deposit with F.R. Banks, June For loans by banks on stocks 90 70 50 21, 1917, until late 1959. Since then, member banks have also been allowed to count vault cash as reserves, as follows: Country banks—in excess of 4 and 2% per cent of net demand deposits effective Dec. 1,1959 NOTE.—Regulations T and U, prescribed in accordance with Securities and Aug. 25, 1960, respectively. Central reserve city and reserve city Exchange Act of 1934, limit the amount of credit that may be extended on banks—in excess of 2 and 1 per cent effective Dec. 3, 1959 and Sept. 1, a security by prescribing a maximum loan value, which is a specified 1960, respectively. Effective Nov. 24, 1960, all vault cash. percentage of its market value at the time of extension: margin requirements are the difference between the market value (100+) and the maximum loan value. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks All Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l k b l s er Y N o e r w k C o it f y Other C b o a u n n k tr s y City Chicago City Chicago Four weeks ending May 1, 1963 Four weeks ending May 29, 1963 Gross demand: Gross demand: Total 128,535 24,684 6,167 49,535 48,149 Total 128,771 24,970 6.307 49,373 48,121 Interbank 13,887 4,129 1,215 6,889 1,654 Interbank 13,410 4,130 1,180 6.533 1,568 U.S. Govt 3,527 745 186 1,324 1,273 U.S. Govt 6,404 1,453 390 2,578 1,982 Other 111,121 19,810 4,767 41,322 45,222 Other 108,957 19,388 4,737 40,261 44,571 Net demand l 106,769 20,080 5,251 40,380 41,059 Net demand 1 107,035 20.146 5,375 40,271 41,242 Time 84,613 10,191 3,343 32,639 38,440 Time 85,544 10,299 3,456 33,035 38,754 Demand balances due Demand balances due from domestic banks.. 7,055 124 92 1,969 4,869 from domestic banks. 6,818 127 91 1,952 4,649 Currency and coin 2,921 236 41 900 1,745 Currency and coin 2,886 230 42 891 1,726 Balances with F.R. Balances with F.R. Banks 16,688 3,507 960 7,098 5,122 Banks 16,778 3.528 987 7,120 5,141 Total reserves held 19,609 3,743 1,001 7,998 6,867 Total reserves held 19,664 3.758 1,029 8,011 6,867 Required 19,154 3,721 1,000 7,968 6,465 Required 19,227 3.736 1,025 7,966 6,499 Excess 455 22 J 30 402 Excess 437 22 4 45 368 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

958 FEDERAL RESERVE BANKS JULY 1963 CONSOLIDATED STATEMENT OF CONDITION (In millions of dollars) Wednesday End of month Item 1963 1963 1962 June 26 June 19 June 12 June 5 May 29 June May June Assets Gold certificate account 14,152 14,227 14,235 14,247 14,256 14,166 14,256 14,990 Redemption fund for F.R. notes 1,290 1,287 1,282 1,274 1,268 1,291 1,268 1,168 Total gold certificate reserves 15,442 15,514 15,517 15,521 15,524 15,457 15,524 16,158 Cash 356 348 343 342 353 366 362 384 Discounts and advances: Member bank borrowings 612 754 255 171 149 96 208 43 Other 33 Acceptances—Bought outright 38 40 42 42 42 38 42 34 Held under repurchase agreement 5 5 26 U.S. Govt. securities: Bought outright: Bills 2,870 2,806 3,011 2,997 2,592 3,332 2,604 2,827 Certificates—Special Other 14,443 14,443 14,443 14,443 J4,438 14,454 14,438 5,619 Notes 9,723 9,699 9,699 9,699 9,680 9 753 9 680 17,202 Bonds 4,412 4,392 4,392 4,392 4,379 4,449 4,379 3,845 Total bought outright 31,448 31,340 31,545 31,531 31,089 31,988 31,101 29,493 Held under repurchase agreement 149 246 147 30 39 153 170 Total U.S. Govt. securities 31,597 31,586 31,692 31,561 31,089 32,027 31,254 29,663 Total loans and securities 32,247 32,385 31,989 31,774 31,280 32,166 31,504 29,799 Cash items in process of collection 5,438 6,909 5,423 5,019 4,894 5,229 4,733 4,707 Bank premises 102 102 102 102 102 102 102 107 Other assets: Denominated in foreign currencies 118 102 108 123 136 113 128 439 All other 265 243 237 218 199 274 205 258 Total assets 53,968 55,603 53,719 53,099 52,488 53,707 52,558 51,852 Liabilities F R notes 30,242 30,230 30,239 30,129 29,991 30,342 29,966 28,658 Deposits: Member bank reserves 16,664 17,297 16,669 16,800 16,166 16,965 16,574 17,206 U.S. Treasurer—General account 1,054 873 634 499 609 806 651 612 Foreign 182 167 219 164 156 175 171 334 Other 211 242 243 189 185 242 177 293 Total deposits 18,111 18,579 17,765 17,652 17,116 18,188 17,573 18,445 Deferred availability cash items 4 027 5 225 4 165 3,714 3,793 3,591 3,429 3,245 Other liabilities and accrued dividends 1 85 81 81 80 79 71 76 65 Total liabilities 52,465 54,115 52,250 51,575 50,979 52,192 51,044 50,413 Capital Accounts Capital paid in 481 481 480 480 480 481 480 458 934 934 934 934 934 934 934 888 Other capital accounts §8 73 55 110 95 100 100 93 Total liabilities and capital accounts 53,968 55,603 53,719 53,099 52,488 53,707 52,558 51,852 Contingent liability on acceptances purchased for foreign correspondents 83 83 83 83 83 83 83 85 U.S. Govt. securities held in custody for foreign account 8,057 8,054 7,985 7,962 7,880 7,957 7,886 6,228 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).. 31,923 31,922 31,829 31,674 31,583 32,014 31,583 30,160 Collateral held against notes outstanding: Gold certificate account 7,243 7,258 7,258 7,248 7,248 7,243 7,248 1,1 AS Eligible paper 46 111 32 28 22 23 '75 7 U.S. Govt. securities 25,650 25,650 25,500 25,470 25,470 25,674 25,470 23,410 Total collateral. 32,939 33,019 32,790 32,746 32,740 32,940 32,793 31,162 1 No accrued dividends at end-of-June dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 FEDERAL RESERVE BANKS 959 STATEMENT OF CONDITION OF EACH BANK ON JUNE 30, 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 a i p n o n li e s - K C s a a it n s y - Dallas F c S i r s a a c n n o - Assets 14,166 793 3,543 758 1,079 890 836 2,382 521 314 641 589 1 820 Redemption fund for F.R. notes..... 1,291 73 314 74 114 106 76 224 53 28 50 40 139 Total gold certificate reserves 15,457 866 3,857 832 1,193 996 912 2,606 574 342 691 629 1,959 F R notes of other Banks 328 18 77 28 22 24 30 23 13 26 13 16 38 Other cash 366 23 67 17 34 26 33 69 18 9 12 13 45 Discounts and advances: Secured by U.S. Govt. securities. -. 90 1 3 3 28 3 11 * 6 23 2 10 Other 6 6 * * * * Acceptances: Bought outright 38 38 Held under repurchase agreement.. 5 5 U.S. Govt. securities: Bought outright . 31,988 1,630 8,062 1,758 2,640 2,127 1,733 5,347 1,272 620 1,338 1,301 4,160 Held under repurchase agreement.. 39 39 Total loans and securities. 32,166 1,630 8,145 1,761 2,643 2,155 1,742 5,358 1,272 626 1,361 1,303 4,170 Cash items in process of collection... 6,508 550 1,280 399 528 507 471 1,034 263 196 323 308 649 Bank premises 102 3 8 3 7 5 14 23 6 4 7 12 10 Other assets: Denominated in foreign currencies. 113 6 127 7 11 5 6 16 4 3 5 7 16 All other 274 14 68 15 23 18 16 46 11 5 12 11 35 Total assets . 55,314 3,110 13,529 3,062 4,461 3,736 3,224 9,175 2,161 1,211 2,424 2,299 6,922 Liabilities F R notes ....... 30,670 1,828 7,365 1,824 2,633 2,468 1,752 5,518 1,266 568 1,215 915 3 318 Deposits: Member bank reserves 16,965 778 4,483 778 1,197 714 940 2,542 580 419 831 995 2 708 U.S. Treasurer—General account.. 806 69 153. 54 46 86 47 78 43 40 60 41 89 Foreign 175 9 2 46 10 16 8 10 25 6 4 7 10 24 Other . . . 242 * 183 2 2 3 1 2 * 1 1 46 Total deposits 18,188 856 4,865 844 1,261 811 998 2,647 629 464 899 1,047 2,867 Deferred availability cash items 4,870 350 875 305 423 380 386 783 211 143 241 249 524 Other liabilities.....».,.,.. 71 4 17 3 6 4 4 12 3 1 3 3 11 Total liabilities 53,799 3,038 13,122 2,976 4,323 3,663 3,140 8,960 2,109 1,176 2,358 2,214 6,720 Capital Accounts Capital paid in 481 23 129 27 44 23 27 68 16 11 21 28 64 Surplus 934 44 251 54 87 44 51 132 32 22 40 53 124 Other capital accounts 100 5 27 5 7 6 6 15 4 2 5 4 14 Total liabilities and capital accounts.. 55,314 3,110 13,529 3,062 4,461 3,736 3,224 9,175 2,161 1,211 2,424 2,299 6,922 Ratio of gold certificate reserves to deposit and F.R. note liabilities combined (per cent): June 30, 1963. ... 31.6 32.3 31.5 31.2 30.6 30.4 33.2 31.9 30.3 33.1 32.7 32.1 31.7 May 31, 1963 32.4 32.6 32.9 32.1 33.2 32.0 29.9 33.2 30.8 31.7 30.0 35.0 32.0 June 30, 1962.. . 34.0 34.8 32.8 35.3 33.5 33.6 34.5 35.0 33.7 32.7 33.8 34.9 34.9 Contingent liability on acceptances purchased for foreign correspond- 83 4 3 22 5 8 4 4 12 3 2 3 5 11 Federal Reserve Notes—Federal Reserve Agent's Accounts F.R. notes outstanding (issued to Bank) 39 014 1,891 7 669 1,905 2,808 2,582 1 877 5,647 1,325 654 1 976 3,481 Collateral held against notes outstanding: 7 453 1 600 465 580 605 400 1,400 310 130 785 215 800 Elicible oaDer ' 23 1 22 U.S. Govt. securities 25,674 1,464 6,200 1,500 2,300 2,010 1,450 4,500 1,100 550 1,000 800 2,800 Total collateral 32,940 1,917 7,800 1,966 2,880 2,615 1,850 5,900 1,410 680 1,307 1,015 3,600 1 After deducting $86 million participations of other F.R. Banks. 3 After deducting $61 million participations of other F.R. Banks. 2 After deducting $129 million participations of other F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 FEDERAL RESERVE BANKS; BANK DEBITS JULY 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 June 26 June 19 June 12 June 5 May 29 June May June Discounts and advances -Total. 612 754 255 171 149 96 208 76 Within 15 days 606 750 253 170 146 89 206 40 16 days to 90 days 6 4 2 1 7 2 36 91 days to 1 year 3 Acceptances—Total 38 45 42 42 42 43 42 60 Within 15 days 13 18 14 12 9 17 8 33 16 days to 90 days 25 27 28 30 26 34 27 U.S. Government securities—Total 31.597 31.586 31.692 31.561 31,089 32.027 '31,254 29.663 Within 15 days* 750 '711 743 608 448 645 ^450 641 16 days to 90 days 5,421 5,558 5.583 5,594 5,419 5,681 5,608 5,163 91 days to 1 year 14.944 14,879 14,928 14,921 14,804 15,166 14,778 Over 1 year to 5 years 8,285 8,241 8,241 8,241 8.233 8,306 8,233 10^031 Over 5 years to 10 years 2.032 2,032 2,032 2,032 2; 020 2.057 2,020 2.219 Over 10 years 165 165 165 165 165 172 165 214 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalents) End of period Total P st o e u rl n in d g s B fr e a lg n i c a s n C d a o n l a la d r ia s n F fr r a e n n c c s h G m er a m rk a s n Ita li l r i e an g N u l e a i t l n h d d e e s r r s - f S r w an is c s s 1962—Sept 350 * 50 251 31 15 Oct 214 * 40 127 31 10 5 Nov 154 * 30 77 31 11 4 Dec 81 * 36 2 27 11 4 1963—jan 110 20 45 2 27 11 4 Feb 93 25 50 2 10 4 Mar 94 25 50 10 4 1 BANK DEBITS AND DEPOSIT TURNOVER Debits to demand deposit accounts' Annual rate of turnover (billions of dollars) of demand deposits * All Leading centers 337 other Leading centers 337 other 343 Period reporting reporting reporting centers * centers New York 6 others 2 centers3 New York 6others 2 centers 3 N.S./ 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 30.0 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 36.9 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—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 39.9 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 307.4 124.5 127.5 61.0 62.8 112.4 117.2 82.9 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 320.9 134.2 141.6 60.9 63.7 111.3 115.6 88.9 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 32.6 Feb 274.6 127.7 116.6 61.2 55.2 112.7 102.8 84.6 80.3 42.7 40.4 28.3 27.1 32.2 30.6 Mar r306.8 128.9 133.0 61.6 62.5 '113.1 nil.3 85.8 88.4 43.1 45.6 28.3 28.3 '32.1 r32.8 Apr 307.8 125.0 126.9 63.9 64.2 119.3 116.8 82.2 80.6 44.2 45.2 29.6 28.7 33.3 33.0 May 318.1 129.8 133.1 62.1 64.4 117.2 120.6 85.0 85.2 43.1 43.9 29.1 29.5 33.2 33.3 June.... 299.6 121.5 125.0 61.6 61.7 113.9 112.9 79.3 85.1 H2 .8 2'44.5 ^28.1 ^29.0 ^32.2 "33.1 * 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 • Before Apr. 1955, 344 centers. Angeles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 U. S. CURRENCY 961 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation ! Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7 598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 ,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28 868 20,020 1,404 ,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 ,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 ,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 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 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 5 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962—May 33,518 24,057 2,637 1,515 93 2,225 6,789 10,798 9,461 2,831 6,089 238 295 5 June 33 770 24,267 2,652 1,516 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 AUK 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 ,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 1963—Jan 34 093 24,214 2,759 1,524 95 2,217 6.723 10.899 9,879 2,937 6,407 239 289 3 4 Feb 34,286 24,385 2,773 ,519 95 2,219 6,788 10,991 9,902 2,939 6,427 239 289 3 4 Mar. . .. 34,513 24,548 2,795 1,523 95 2,230 6,838 11,067 9,965 2,954 6,471 241 292 3 4 Apr. . 34,645 24,613 2,827 1,539 95 2,232 6,819 11,102 10,032 2,975 6.516 242 291 3 4 May 35,067 24,953 2,850 ,562 96 2,266 6,932 11,246 10,114 3,001 6,572 243 292 3 4 i Outside Treasury and F.R. Banks. Before 1955 the totals shown as 2 Paper currency only; $1 silver coins reported under coin. in circulation were less than totals of coin and paper currency shown by denomination by amounts of unassorted currency (not shown separately). NOTE.—Condensed from Circulation Statement of United States Money, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation i Total out- He F l . d R . by Kind of currency s M ta 1 a n y 9 d 6 i 3 3 n 1 g , A g s a o s g l s i d a l e v i c n e a u s r n r t d ity Tr c e a a s s h ury B F F a a . n o n R d r k . s A B a g a n e n d n k t s s M 1 a 9 y 6 3 3 1. Ap 1 r 9 . 6 3 3 0, M 1 ay 96 3 2 1, certificates Agents Gold 15,797 (15,524) 2 273 Gold certificates . . (15,524) 3 i 2 708 2.816 F R notes 31.584 75 1,621 29,888 29,505 28,322 Treasury currency Total 5,583 "(2J25)' 43 361 5,178 5,139 5,196 Standard silver dollars. .... 486 41 29 12 405 400 356 Silver bullion 2,084 2,084 S S i u lv b e si r d c ia e r r y ti f s ic il a v t e e r s coin (2 1 , ,8 1 1 2 9 5) io' 28 3 5 5 1 1 , , 8 7 4 7 0 4 1 1, , 7 8 5 2 9 9 2 K ,0 6 0 5 5 5 Minor coin 678 1 5 '672 668 626 United States notes . . . 347 3 24 320 314 320 In process of retirement ** 169 1 169 169 234 Total May 31 1961 552,964 (17,649) 391 12,708 4,798 35 067 Apr 30 1963 5 52.887 (17,719) 420 12,778 5,044 34 645 May 31 I967 5 51,931 (18.434) 398 13.342 4 675 33,518 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. 953. 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, FRS, 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 Adjustment Act, to have been destroyed or lost. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 MONEY SUPPLY JULY 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 D d e e m po a s n it d jus a t d ed - 1 Total c C om ur p re o n n c e y nt D d e e m po a s n it d jus a t d e - d i d d e e p m o a si n t d s! component component 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 196l_Dec 145.7 29.6 116.1 82.5 149.4 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—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 Dec..... 147.9 30.6 117.3 97.5 151.6 31.2 120.4 96.6 5.6 1963—Jan 148.7 30.7 118.1 99.1 151.8 30.5 121.3 98.4 4.8 Feb 148.6 30.9 117.7 100.3 148.3 30.5 117.8 99.9 5.6 Mar.... 148.9 31.1 117.8 101.8 147.4 30.7 116.7 101.7 5.9 Apr 149.4 31.2 118.2 102.6 149.5 30.9 118.6 102.9 4.2 May.... 149.4 31.3 118.1 103.7 147.3 31.1 116.2 104.0 7.0 June 149.8 31.6 118.2 104.5 148.2 31.4 116.7 105.0 7.4 Half month 1963—Mar. 1. 149.0 31.0 118.0 101.3 147.9 30.8 117.1 101.2 5.2 2. 148.8 31.1 117.6 102.2 146.9 30.7 116.2 102.1 6.6 Apr. 1. 149.5 31.3 118.3 102.4 148.9 31.1 117.7 102.7 4.5 149.3 31.1 118.1 102.8 150.2 30.7 119.5 103.0 3.9 May 1. 149.8 31.3 118.5 103.3 148.6 31.1 117.5 103.7 6.3 2. 149.1 31.3 117.8 104.0 146.0 31.0 115.0 104.4 7.7 June 1. 149.9 31.5 118.4 104.3 148.6 31.5 117.1 104.9 5.4 2. 149.7 31.6 118.1 104.7 147.8 31.4 116.4 105.2 9.4 Not seasonally adjusted Not seasonally adjusted I Money supply Money supply Week Time U.S. Week Time U.S. ending— Total C c u o n r m e re n p n t o c - y D c d o e e n m m p e o n p a s t n o it d - d ju e s p a t o d ed s - i t 1 s d d e G e p m o o s a v i n t t . s d 1 ending— Total C c u o n r m e re n p n t o c - y D c d o e e n m m p e o n a p s t n o it d - d ju e s p a t d o e s d - i ts ! d d e G e p m o o s v a i n t t . s d l 1962—Mar. 7. 144.4 29.6 114.8 86.6 5.0 1963—Mar. 6., 147 A 30.7 116.7 100.8 6.4 14. 145.0 29.6 115.3 87.2 3.2 13., 148.0 30.9 117.2 101.4 4.5 21. 145.0 29.6 115.4 87.4 4.9 20.. 148.4 30.8 117.7 101.8 4.9 28. 142.8 29.4 113.4 88.0 6.8 27.. 146.1 30.6 115.5 102.1 7.2 Apr. 4. 143.7 29.6 114.0 88.4 6.1 Apr. 3.. 146.8 30.8 116.1 102.5 6.9 11. 145.5 30.0 115.5 88.8 3.7 10.. 148.3 31.2 117.1 102.8 4.5 18. 147.4 29.8 117.6 88.9 2.5 17.. 151.1 31.1 120.0 102.8 3.2 25. 147.2 29.6 117.6 89.0 3.5 24.. 150.2 30.8 119.5 102.9 3.6 May 2. 145.9 29.5 116.4 89.2 4.8 May 1.. 149.6 30.6 119.0 103.2 4.6 9. 145.1 30.0 115.2 89.5 6.3 8.. 148.7 31.2 117.6 103.5 6.6 16. 144.6 29.8 114.7 89.7 6.5 15.. 148.3 31.1 117.1 103.9 6.2 23. 142.0 29.8 112.2 90.1 8.0 22.. 145.9 31.1 114.8 104.2 8.1 30. 142.1 29.6 112.5 90.4 7.5 29.. 146.1 30.9 115.2 104.5 7.5 June 6. 143.5 30.0 113.5 90.7 7.1 June 5. . 147.4 31.4 116.0 104.8 6.7 13. 144.8 30.1 114.6 91.0 5.3 12.. 148,8 31.6 117.2 104.9 4.6 20. 145.0 30.0 114.9 6.8 19.. 149.2 31.4 117.8 105.0 5.9 27. 142.8 29.9 112.9 8.6 26.. 147.0 31.3 115.7 105.1 10.3 July 4. 143.3 30.2 113.1 91.9 9.5 July 3. 11. 143.9 30.6 113.4 92.1 8.2 10. 18. 144.7 30.4 114.3 92.2 6.6 17. i 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 FRS, 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

JULY 1963 BANKS AND THE MONETARY SYSTEM 963 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Treas- net— ury U.S. Government securities Total Capital Date Gold s r t o c e i a u n u n n r g t c d - - y - Total Lo n a e n t s, Total m C a e o r n m c d ia - l R Fe e d se e r r v a e l Other O s r e i t t c h i u e e s - r c l a i i a a n p t n i b e i e t d t i s a l- l, c d u e T r a p o r n o e t d s a n i l c ts y c m o a n a u i n c e n s d - t c t . s, savings Banks banks 1929—June 29.. 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30.. 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30.. 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31.. 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—Dec. 31.. 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947—Dec. 31.. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30.. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,384 14,624 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—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 5,600 300,800 164,200 102,300 71,700 30,000 700 34,300 322,400 292,000 30,300 Nov. 28. 16,000 5,600 301,900 164,900 102,400 71,700 30,100 700 34,500 323,400 293,000 30,400 Dec. 28. 15,978 5,568 309,389 170,693 103,684 72,563 30,478 643 35,012 330,935 302,195 28,739 1963—Jan. 30. 15,900 5,600 305,500 167,000 103,300 72,400 30,300 600 35,200 327,000 297,100 29,800 Feb. 27. 15,900 5,600 307,100 168,900 102,600 71,500 30,500 600 35,600 328,500 298,500 30,100 Mar. 27. 15,900 5,600 309,100 170,300 102,500 71,300 30,600 600 36,300 330,500 300,600 29,900 Apr. 24» 15,900 5,600 309,600 171,100 101,500 70,300 30,500 700 37,000 331,000 301,100 29,900 May 29* 15,800 5,600 311,500 173,100 100,900 69,100 31,100 700 37,500 332,900 301,900 31,000 June 26p, 15,700 5,600 317,200 177,100 101,900 69,700 31,600 700 38,100 338,500 308,500 30,000 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted l Not seasonally adjusted Time 3 U.S. Government Date Total o b r u C e a t n u n s c i r k d y - s e d ju m e s D p a t a d o e e n - d - s d i t 2 s Total o b r u C e a t n u n si c r k d y - s e d ju m e s D p a t a d o e e n - d - s d i t 2 s Total m b C e a o r n m c k ia - s l b M sa a v n u i t k n u s g a s « l S P a S t o e v y s m i s t n a - g l s n e F i e o g t r n - » , T h c i u r o n a e r l s g a y d k s s - - sa c B a c v o A i i n i e m a n t d r l g - - s B F A a .R n t k . s basks 1929 June 29 ... 26,179 3,639 22,540 28,611 19,557 8,905 149 3*5 204 381 36 1933 June 30 19,172 4,761 14,411 21,656 10,849 9,621 1,186 50 264 852 35 1939 Dec 30 ... 36.194 6,401 29,793 27,059 15,258 10,523 1,278 1,217 2,409 846 634 1941—Dec. 31.... 48,607 9,615 38,992 27,?29 15,884 10,532 1,313 1,498 2,215 1,895 867 1945 Dec. 31 .. 102,341 26,490 75.851 48,452 30,135 15,385 2,932 2,141 2,287 24,#08 977 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35.249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24.600 90,000 117,670 25,398 92,272 59,247 36,314 20.009 2,923 2,518 1,293 2,9«9 668 1959—Dec. 31.... 140,200 28,200 112,000 144.824 29.422 115,402 101,779 65,884 34,947 948 3,203 391 5,319 504 1960—Dec. 31.... 139,200 28,200 111,000 144,458 29,356 115,102 108,468 71,380 36,318 770 3,184 377 6.193 485 1961—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—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 40© 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 8,30© 500 Oct. 31.... 145,100 29,400 115,700 146,800 29,700 117,100 136,500 95,100 40,800 600 1,200 400 6,600 500 Nov. 28.... 145,800 29,600 116,200 147,600 30,100 117,600 136,800 95,300 41,000 500 1,200 400 €,300 600 Dec. 28.... 147,600 29,600 118,000 153,162 30,904 122,258 139,448 97,440 41,478 530 1,488 465 7,090 602 1963—Jan. 30.... 146,800 30,100 116,700 148,900 29,700 119,200 141,200 99,000 41,700 500 1,300 400 4,600 800 Feb. 27.... 147,100 30,200 116,900 146,400 29,800 116,500 142,900 100,500 41,900 500 1,200 50© 6,700 80@ Mar. 27.... 147,700 30,400 117,300 145,500 30,100 115,400 145,100 102,200 42,400 500 1,200 400 7,600 900 Apr. 24»... 148,300 30,500 117,800 148,400 30,200 118,200 146,000 103,000 42,500 500 1,200 400 4,000 1,100 May 29?... 146,500 30,600 115,900 144,900 30,700 114,200 147,700 104,500 42,800 500 1,200 400 7,100 600 June 26"... 148,200 30,700 117,500 146,200 30,700 115,500 148,700 105,100 43,100 500 1,200 400 10,800 1,100 1 Series began 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. accouats, net. savings banks as demand deposits, previously reported as time deposits Except on call dates, figures are partly estimated aad are rounded to or other liabilities. nearest $100 million. 5 Reclassification of deposits of foreign central banks in May 1961 reduced this item by $1,900 million ($1,500 million to time and $400 million to demand deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 COMMERCIAL AND MUTUAL SAVINGS BANKS JULY 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 t a e nk Total Loans U S .S e . curities 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 i t a e a l s l Total i I D n e t - erbank 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 k - s Govt. Other co a u c n - ts2 mand Time U.S. Time 3 Govt. Other All banks: 1941—Dec. 31. 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31. 140,227 30,362101,288 8,577 35,,4 15 117777,332165,612 14,065 105,935 45,613 22710,54214,553 1947—Dec. 314 134,924 43,002 81,199 10,,7 233_8_,,3.88 1.7.5.,0,91161,86512,793 240 1,346 94,381 53,105 6611,94814,714 1961—Dec. 30. 256,700154,318 72,715 29,667 57,368 321,394 287,17617,914 482 5,952 141,979120,848 482 26,22713,946 1962—June 30. 263,542160,123 70,722 32697 49,612 320638 285, 14,400 526 9,559 845 131,855 796 27,03613,934 Aug. 29. 265,700161,980 70,160 33560 45.480 318280 280; 13,840 510 7,450 960 133,550 2,750 27100 13,932 Sept. 26. 269,080164,640 70,560 33!880 47;480 323770 286; 14,530 510 8,090 160 134,880 2,610 27250 13,928 Oct. 31. 272,480166,480 71,700 34!300 50,560 330380 292 15,260 520 380 134030 136,160 2,780 27450 13,925 Nov. 28. 273,510167,240 71,730 34;540 48,280 329070 290,70015,190 520 6,090 340 136,560 2,500 27630 13,938 Dec. 28. 280,397172,822 72,563 35;012 54.939 343201303,65316,008 535 6,839 084 139,188 3,635 28046 13,940 1963—Jan. 30. 276,950169,410 72,350 35;190 46;780 331500 293,03014,100 520 4,320 110 140,980 2,670 27790 13,951 Feb. 27. 278,850171,800 71,450 35;600 48,410 335030 29545014,140 520 6,440 670 142,680 3,070 28000 13,954 Mar. 27. 280,650173,090 71,280 36;280 46,530 335010 29546013,800 520 7,330 950 144,860 3,100 28090 13,962 Apr. 24*> 280,730173,470 70,250 37;010 47,290 335;960 29604013,910 560 760 132060 145,750 3,270 28140 13,967 May 29*>. 282,540175,920 69,120 37;500 47,720 338,150 29809013,730 540 820 129 147,460 2,990 28,35013,983 June 26?. 287,220179,460 69,6503811048,690 343,950 304;13014,010 53010,610130, 148,470 3,000 2841013,999 Commercial banks: 1941—Dec. 31. 50,746 21,714 21, 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,17314,278 1945—Dec. 31. 124,019 26,083 90,606 7,331 34.,806 160,312150,227 14,065 105,921 30,241 219 8,995500 14,011 1947—Dec. 31 4. 116,284 38,057 69,221 9,006 37,502 155,377144,10312,792 240 1,343 94,367 35,360 6510,05914,181 1961—Dec. 30. 215,441124,925 66,578 23,937 56,432 278,561248,68917,914 481 5,946 141,920 82,429 47122,45913,432 1962—June 30. 220,670129,193 64,443 27,034 48728 276,220 245 14,400 525 9,554 785 92,034 786 2318313,422 Aug. 29. 222,140130,430 63,850 27;860 44670 273,230 240 13,840 510 7,450 900 93,350 2,750 23200 13,421 Sept. 26. 225,270132,840 64,250 28;180 46630 278400 245 14,530 510 8,090 100 94,250 2,610 23330 13,417 Oct. 31., 228,560134,400 65,550 28.610 49690 284890 251 15,260 520 6,380 970 95,340 2,780 23560 13,414 Nov. 28. 229,260134,840 65,600 28;820 47450 283,310 249 15,190 520 6090 132^80 95,600 2,500 23680 13,427 Dec. 28. 235,839140,106 66,434 29;298 54;049 297;116 262 16,008 535 6 829141041 97,709 3,627 24094 13,429 1963—Jan. 30. 232,040136,340 66,200 29;500 45;970 285;050 251 14,100 520 4 320 133050 99,280 2,670 23 840 13,440 Feb. 27. 233,620138,410 65,270 29;940 47;540 288;210 253 14,140 520 440 131610100,760 3,070 24010 13,443 Mar. 27. 234,860139,360 64,840 30;660 45;640 287;590 252, 13,800 520 330 128890102,420 3,100 24070 13,451 Apr. 24P. 234,890139,440 64,010 3i;440 46;460 288;550 253; 13,910 560 760 132000 103,260 3,270 24,150 13,456 May 29*\ 236,390141,550 62,910 31,930 46,880 290,410 255, 13,730 540 820 ,4"8"0 104,710 2,990 24, 13,472 June 26P, 240,750144,650 63,510 32,590 47.830 295.870 260, 14,010 53010,610 ,450105,360 3,000 24, 13,488 Member banks: 1941—Dec. 31. 43,521 18,021 19,539 5,96123,123 68,121 61,71710,385 140 ,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31. 107,183 22,775 78,338 6,070 29,845138,304 12"9,,667700 1133,576 64 22:,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31. 97,846 32,628 57,914 7,304 32,845 1_3_2_,,0.6 0 122,,5.28 _12_,353 50 1,176 80,609 28,340 54 8,464 6,923 1961—Dec. 30. 179,599 106,232 54,05819,308 49,579 235,112 209,630 17,195 303 5,381119,595 67,157 438 18,638 6,113 1962—June 30. . 183,497109,212 52,065 22219 42,853 232,359 206,05713,796 351 ,734108,014 75,162 73519,179 6,070 Aug. 29.. 184,398110,331 51,149 22918 39,107 229,231 200,66713,232 338 ,695104,280 76,122 2,682 1199,212 6,060 Sept. 26. 186,641112,240 51,27123', 130 40,877 233,,227799 2 20044;,99513,878 337 284 106,702 76,794 2,58519,281 6,053 Oct. 31. 189,420113,711 52,238 23471 43,686 239,009 210; 14,577 339 700 112,045 77,667 2,722 1199,466 6,054 Nov. 28. 189,619113,865 52,097 23657 41564 237,,1050 208; 14,502 343 110,181 77,932 2,42319,546 6,056 Dec. 28. 195,698118,637 52,968 24092 47427 249,,488 219 15,309 358 117,999 79,716 3,550 "1,9854 6,049 1963—Jan. 30. . 192,301115,289 52,749 24263 40,024 238,565 209. 13,449 341 110,954 81,060 2,614 19,697 6,046 Feb. 27., 193,6"9'4 117,075 51,984 24635 41471241,,407 211; 13,501 347 109,730 82,280 3,03319,819 6,042 Mar. 27., 194,884 117,883 51,719 25282 39685 240.,835 211;146 13,186 345 107,402 83,690 3,042 1199,851 6,039 Apr. 24., 194,589117,677 50,950 25962 40434 241;,409 211 13,290 380 109,920 84,384 3,23519,925 6,041 May 29.. 195,892119,515 50,023 26,354 41,009 243,246 213 13,146 361 107,939 85,640 2,910 20,082 6,052 June 26*. 199,719122,201 50,58926929 41;772 247,939 218; 13,398 355 108,691 86,182 2,928 20,133 6,059 Mutual savings banks 1941—Dec. 31. 10,379 4,901 3,704 1,774 793 11,804 10,533 6 10,527 1,241 548 1945—Dec. 31. 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 1,592 542 1947—Dec. 31 4. 18,641 4,944 11,978 1,718 886 19,714 17,763 17,745 1,889 533 1961—Dec. 30., 41,259 29,393 6,136 5,730 936 42,833 38,487 38,420 3,768 514 1962—June 30., 42,872 30,930 6,278 5,663 884 44,418 39,821 10 3,853 512 Aug. 29., 43,560 31,550 6,310 5,700 810 45,050 40,200 3,900 511 Sept. 26., 43,810 31,800 6,310 5,700 850 45,370 40,630 3,920 511 Oct. 31., 43,920 32,080 6,150 5,690 870 45,490 40,820 3,890 511 Nov. 28., 44,250 32,400 6,130 5,720 830 45,760 40,960 3,950 511 Dec. 28., 44,558 32,716 6,129 5,714 890 46,086 10 41,478 3,951 511 1963—Jan. 30., 44,910 33,070 6,150 5,690 810 46,450 41,700 3,950 511 Feb. 27., 45,230 33,390 6,180 5,660 870 46,820 41,920 3,990 511 Mar. 27., 45,790 33,730 6,440 5,620 890 47,420 42,440 4,020 511 Apr. 24P, 45,840 34,030 6,240 5,570 830 47,410 42,490 3,990 511 May 29P. 46,150 34,370 6,210 5,570 840 47,740 42,750 4,020 511 June 26*\ 46,470 34,810 6,140 5,520 860 48,080 43,110 4,020 511 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 COMMERCIAL AND MUTUAL SAVINGS BANKS 965 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 U S .S e . curities a C ss a e s t h s1 c b T a i a l l o p i i n a t t i d i a t - e a l s l Total i I D n e t - erbank 1 Dema O n t d her r B i o n o w g r s - - c c T a o a o p u c t i - n a ta t l s l b N a b o u n e f m k r s - Govt. Other co a u c n - ts2 mand Time U.S. Time Govt. Other Reserve city member banks: New York City:s 1941—Dec. 31 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 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 1961—Dec. 30., 30,297 19,535 7,862 2,9r"00 11,164 43,538 36,818 5,296 191 1,267 23,129 6,935 283 3,683 13 1962—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 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 3,81910,491 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. 28 32,989 21,954 7,017 4,01711,050 46,135 37,885 4,783 207 1,408 22,231 9,256 1,728 3,898 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 1,082 3,897 17 Feb. 27 32,302 20,874 7,125 4,303 9,125 43,563 35,044 4,047 209 1,068 20,000 9,720 1,645 3,904 16 Mar. 27... 32,533 20,950 7,096 4,487 7,987 42,652 34,794 3,913 214 1,385 19,320 9,962 1,117 3,904 16 Apr. 24.. 31,829 20,258 6,805 4,766 8,296 42,343 34,091 3,919 227 669 19,303 9,973 1,352 3,927 16 May 29 32,115 20,886 6,478 4,751 9,323 43,624 35,459 4,278 207 1,198 19,61210,164 1,292 3,947 C16 June 26" 32,821 21,355 6,598 4,868 8,749 43,749 35,803 4.066 196 2,002 19,44410,095 1,286 3,929 13 City of Chicago:5 1941—Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 .035 127 2,419 476 288 13 1945—Dec. 31 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 1961—Dec. 30..., 7,606 4,626 2,041 940 2,603 10,383 9,283 ,624 369 5,268 2,008 35 870 9 ? W 1962—June 30 7,937 4,672 1,936 1,329 1,893 10,009 8,810 ,128 546 4,520 2,598 34 894 9 Aug. 29 (old basis' 7,883 4,570 1,923 1,390 1,801 9,852 8,580 ,193 361 4,353 2,656 117 895 9 Aug. 29 (new basis; 8,201 4,761 2,001 1,439 1,870 10,247 8,934 ,201 384 4,554 2,778 122 925 12 Sept. 26 8,293 4,879 2,028 1,386 1,997 10,469 9,087 ,243 440 4,569 2,820 163 930 12 Oct. 31..... 8,552 4,961 2,175 1,416 2,073 10,815 9,380 ,281 366 4,826 2,892 267 944 12 Nov. 28 8,456 5,029 2,025 1,402 2,102 10,738 9,450 ,326 279 4,879 2,951 66 941 12 Dec. 28 8,957 5,418 2,129 1,409 2,280 11,432 9,993 ,277 410 5,264 3,025 262 948 13 1963—Jan. 30... 8,682 5,101 2,217 1,364 1,969 10,860 9,481 ,140 218 4,956 3,152 132 956 13 Feb. 27 8,901 5,348 2,232 1,321 1,982 11,092 9,594 ,194 309 4,872 3,204 235 955 13 Mar. 27 9,138 5,376 2,440 1,322 1,899 11,260 9,410 ,155 427 4,619 3,198 596 957 13 Apr. 24 8,813 5,291 2,168 1,354 1,949 10,983 9,469 ,182 161 4,757 3,357 313 963 12 May 29... 8,832 5,428 2,050 1,354 2,084 11,143 9,759 ,122 346 4,791 3,488 165 971 12 June 26'' 9,129 5,593 2.080 1,456 2,103 11,441 10,006 ,206 562 4,751 3,474 202 969 12 Other reserve city:6 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31... 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2,566 359 1947—Dec. 31.. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,99011,423 2,844 353 1961—Dec. 30 68,565 42,379 19,748 6,43820,216 90,815 81,883 8,350 62 2,103 44,986 2"6',381 81 6,997 206 1962—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 Aug. 29 (old basis^ 70,333 44,540 17,987 7,806 16,180 88,626 78,317 6,662 74 2,639 39,1"2-6 2"9,816 1,058 7,214 200 Aug. 29 (new basis' 69,597 44,049 17,819 7,729 16,027 87,722 77,524 6,646 74 2,599 38,620 29,585 1,036 7,142 194 Sept. 26 69,932 44,389 17,809 7,73416,897 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. 28 73,130 46,567 18,398 8,165 19,539 94,914 84,248 7,477 82 2,337 43,6"09 '3"0,743 1,388 7,263 191 1963—Jan. 30 72,053 45,692 18,143 8,218 16,172 90,467 80,101 6,555 65 1,400 40,765 31,316 1,178 7,263 189 Feb. 27..., 72,315 46,412 17,564 8,33916,884 91,380 81,023 6,660 75 2,276 40,298 31,714 994 7,298 189 Mar. 27 72,850 46,821 17,420 8,60916,603 91,622 81,320 6,561 72 2,605 39,698 32,384 1,082 7,315 189 Apr. 24..... 72,921 46,791 17,329 8,801 16,940 92,086 81,349 6,616 90 1,218 40,822 32,603 1,429 7,330 191 May 29 73,497 47,300 17,187 9,010 16,603 92,362 81,610 6,275 91 2,387 39,706 33,151 1,131 7,413 191 June 26* 74,829 48.293 17.387 9.149 17,391 94,494 83,830 6,566 95 3,691 40,064 33,414 1.171 7,428 193 Country member banks:6 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 5,465 24,23512,494 11 2,525 6,476 1947—Dec. 31 36,324 10,199 22,857 3,26810,778 47,553 44,443 1,056 432 28,37814,560 23 2,934 6,519 1961_Dec. 30 73,131 39,693 24,407 9,031 15,595 90,376 81,646 1,925 1,641 46,21131,832 40 7,088 5,885 1962—June 30 75,019 41,492 23,843 9,68513,806 90,555 81,577 1,529 2,601 42,596 34,803 80 7,323 5,842 Aug. 29 76,510 41,902 24,620 9,98813,184 91,177 81,995 1,541 2,380 42,554 35,483 282 7,339 5,838 Sept. 26.......... 77,919 42,738 25,01310,16813,495 92,992 83,929 1,635 2,546 43,820 35,880 100 7,394 5,832 Oct. 31 78,665 42,902 25,43210,33114,076 94,316 84,965 1,711 1,984 44,93736,285 230 7,479 5,833 Nov. 28 79,528 43,506 25,63810,38413,718 94,801 85,286 1,739 2,194 45,0"8"5 "3'6,220 206 7,555 5,833 Dec. 28 80,623 44,698 25,42510,50114,559 97,008 87,342 1,773 1,931 46,895 36,692 172 7,744 5,828 1963—Jan. 30 79,758 43,847 25,38010,53113,152 94,612 85,208 1,635 1,398 45,002 37,125 222 7,581 5,827 Feb. 27 80,176 44,441 25,06310,67213,480 95,372 85,864 1,600 2,014 44,560 37,642 159 7,662 5,824 Mar. 27 80,363 44,736 24,76310,86413,196 95,301 85,622 1,557 2,106 43,765 38,146 247 7,675 5,821 Apr. 24 81,026 45,337 24,64811,04113,249 95,997 86,366 1,573 1,253 45,038 38,451 141 7,705 5,822 May 29 81,448 45,901 24,30811,23912,999 96,117 86,276 1,471 2,087 43,830 38,837 322 7,751 C5,833 June 26*> 82,940 46,960 24,524 456 13,529 98,255 88,391 1,560 3,149 44,43239,199 269 7,807 5,841 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 COMMERCIAL AND MUTUAL SAVINGS BANKS JULY 1963 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total Cla a s n s d o d f a b t a e nk Total Loans U S .S ec . urities a C ss a et s s h 1 c b T a i a l l p o i i n a t t i d i t - a e a l s l Total i I D n e te - rbank 1 Dema O n t d her r B in o o w g r s - - c c T a o a o p u c t i n - a ta t l s l b N a b o u n e f m r k - s Govt. Other cou a n c t - s 2 mand Time U.S. Time Govt. Other Insured commercial banks: 1941—Dec. 31. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,29815,699 10 6,844 13,426 1945—Dec. 31. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80i,,227766 "2"9,876 215 8,67113,297 1947—Dec. 31. 114,274 37,583 67,941 8,750 36,926 152,733 141,85112,615 54 1,325 92,975 34,882 61 9,734 "1,3398 1959—Dec. 31. 188,790110,299 58,348 20,143 49,158 242,828 218,474 15,500 1,358 5,037 130,720 65,858 602 19,206 13,107 1960—Dec. 31. 198,011 117,092 60,468 20,451 51,836 255,669 228,40116,921 1,667 5,932 132,533 71,348 149 20,62813,119 1961—Dec. 30. 213,904124,348 66,026 23,531 56,086 276,600 247,176 '1-7,737 333 5,934 141,050 82,122 462 22,08913,108 1962—June 30. 219,163 128,613 63,92126,630 48,415 274,318 243,856 14,235 388 9,529127,990 91,714 773 22,810 13,104 Dec. 28. 234,243 1"3"9,449 65,89128,903 53,702 295,093 260,60915,844 402 6,815140,169 97,380 3,584 23,712 13,119 National member banks: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,47316,224 4,644 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 5,409 5,005 1959—Dec. 31.. 102,615 59,962 31,76110,892 27,464 132,636 119,638 8,947 514 2,742 71,015 36,421 340 10,302 4,542 1960—Dec. 31.. 107,546 63,694 32,712 1111,140 28,675 139,261 124,911 9,829 611 3,265 71,660 39,546 11111,098 4,530 1961—Dec. 30.. 116,402 67,309 36,08813,006 31,078 150,809 135,51110,359 104 3,315 76,292 45,441 22511,875 4,513 1962—June 30.. 119,241 69,771 34,50814,962 26,860 149,559 133,728 8,154 123 5,424 69,256 50,770 37912,243 4,500 Dec. 28.. 127,254 75,548 35,66316,042 29,684 160,657 142,825 9,155 127 3,735 76,075 53,733 1,63612,750 4,505 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 1959—Dec. 31.. 55,264 34,817 15,052 5,396 16,045 73,090 65,069 6,102 825 1,763 39,974 16,406 240 5,962 1,691 1960—Dec. 31.. 58,073 36,240 16,394 5,439 17,081 77,316 68,118 6,608 1,028 2,022 40,73317,727 20 6,299 1,644 1961—Dec. 30.. 63,196 38,924 17,971 6,302 18,501 84,303 74,119 6,835 199 2,066 43,303 21,716 213 6,763 1,600 1962—June 30.. 64,256 39,442 17,557 7,257 15,993 82,800 72,329 5,641 227 3,310 38,758 24,392 355 6,936 1,57© Dec. 28.. 68,444 43,089 17,305 8,050 17,744 88,831 76,643 6,154 231 2,351 41,,924 25,983 1,914 7,104 1,544 Insured nonmember commercial banks: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 1,271 6,478 1959—Dec. 31.. 30,939 15,534 11,546 3,859 5,651 37,132 33,795 451 533 19,732 13,059 2,944 6,878 1960—Dec. 31.. 32,411 17,169 11,368 3,874 6,082 39,114 35,391 484 645 20, ,095 3,232 6,948 1961—Dec. 30.. 34,320 18,123 11,972 4,225 6,508 41,504 37,560 543 553 21,45614,979 3,452 6,997 1962—June 30.. 35,681 19,409 11,860 4,412 5,563 41,975 37,814 440 795 19,976 1'6,565 3,633 7,036 Dec. 28.. 38,557 20,811 12,932 4,814 6,276 45,619 41,142 535 729 22,170 17,664 3,870 7,072 Noninsured nonmember commercial banks: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 329 1,291 253 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 279 714 1947—Dec. 31* 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 325 783 1959—Dec. 31.. ,480 534 589 358 309 1,858 1,429 150 83 873 311 350 366 1960—Dec. 31.. ,498 550 535 413 314 1,883 1,443 159 132 846 293 358 352 1961—Dec. 30.. ,536 577 553 406 346 1,961 1,513 177 148 869 307 370 323 1962—June 30.. ,506 580 523 404 313 1,901 1,442 165 137 795 320 372 317 Dec. 28.. ,584 657 534 392 346 2,009 1,513 164 133 872 330 371 308 Nonmember commercial banks: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 1,362 7,130 1947—Dec. 31* 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 1,596 7,261 1959—Dec. 31.. 32,419 16,068 12,134 4,216 5,961 38,990 35,224 601 103 545 20,.6.0 5 13,370 3,294 7,244 1960—Dec. 31.. 33,910 17,719 11,904 4,287 6,396 40,997 36,834 643 160 657 20,§86 14,388 3,590 7,300 1961_Dec. 30.. 35,856 18,700 12,525 4,631 6,854 43,465 39,073 719 178 565 15,286 3,822 7,320 1962—June 30.. 37,188 19,989 12,383 4,816 5,876 43,877 39,256 605 174 819 16,886 4,005 7,353 Dec. 28.. 40,141 21,469 13,466 5,206 6,622 47,628 42,654 699 176 743 23; 042 17,994 4,240 7,380 Inured mutual tarings banks: 1941—Dec. 31.. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945—Dec. 31.. 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 12 12,192 1,252 194 1959—Dec. 31.. 30,580 20,942 5,016 4,622 686 31,743 28,577 28 28,544 2,654 26S 1960—Dec. 31.. 33,794 23,852 4,787 5,155 766 35,092 31,502 29 31,468 2,998 325 1961—Dec. 30.. 35.660 25,812 4,690 5,158 828 37,065 33,400 3,137 3,191 330 1962—June 30.. 36,989 27,179 4,708 5,102 779 38,366 34,581 275 34,300 3,259 331 Dec. 28.. 38,597 28,778 4,639 5,180 784 39,951 36,104 267' 35,827 3,343 331 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 COMMERCIAL AND MUTUAL SAVINGS BANKS 967 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loains and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans IT S Q ecurities a C ss a e s t h s1 c b T a i a l l o p i n i a t t i d i a t - e a l s l Total 1 Interbank * Dema O n t d her r B i o n o w g r s - - c c T a o a o p u c t i - n a ta t l s l b N a b u o n e f m r ks - Govt. Other cou ac n - ts2 mand Time U.S. Other Time Govt. Noninsured mutual savings banks: 1941—Dec. 31 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945 DeC 31.. 5,361 1,198 3,522 641 180 5 596 5,022 2 5 020 6 558 350 1947—Dec. 31 < 5,957 1,384 3,813 760 211 6,215 5,556 1 2 5,553 637 339 1959—Dec 31 6,981 4,184 1,848 949 143 7 200 6,405 1 6 404 1 705 249 1960—Dec. 31 5,320 3,270 1,453 597 107 5,481 4,850 4,850 555 189 1961—Dec. 30 5,600 3 581 1,446 572 108 5,768 5,087 1 4 5,083 577 184 1962—June 30 5,882 3,751 1,570 561 104 6,052 5,306 1 15 5 291 594 181 Dec. 28 5,961 3,938 1,490 533 106 6,134 5,427 1 6 5,420 1 608 180 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 963. Virgin Islands that became a member in May 1957, 2 noninsured non- * Beginning with Dec. 31, 1947, the series was revised. A net of 115 deposit trust cos. and, before July 1962, mutual savings banks that noninsured nonmember commercial banks with total loans and invest- became members of the Federal Reserve System during 1941 (3 before ments of about $110 million were added, and 8 banks with total loans Jan. 1960, 2 until June 1961, and 1 until July 1962). These banks were and investments of $34 million were transferred from noninsured mutual excluded from commercial banks. savings to nonmember commercial banks. Comparability of figures for classes of banks w 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 Beginning with June 1963, 3 New York City banks with loans and For revisions in series before June 30, 1947, see July 1947 BULL., investments of $392 million and total deposits of $441 million were pp. 870-71. reciassified as country banks. Also see note 6, Oct. 1962 BULL., p. 1315. LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Securities Securities Period Total 1 Loans1 Total 1 Loans1 G U o . v S t . . Other G U o .S vt . . 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 1960..... 194.5 114.2 59.6 20.7 198.5 116.7 61.0 20.9 1961 209.6 121.1 64.7 23.8 214.4 123.9 66 6 23 9 1962 2 ., 228.1 134.7 64.3 29.1 233.6 137.9 66.4 29.3 1962-—June 220.3 126.6 66.6 27.1 219.2 127.7 64.4 27.0 Julv 217.8 126.1 64.1 27.6 217.8 126.1 64.2 27.5 AuB 220.3 127.3 65.0 28.0 219.0 127.3 63.9 27.9 Sept 222.0 129.7 64.3 28.0 223.1 130.6 64.3 28.2 Oct 224.4 131.6 64.2 28.6 225.7 131.5 65.6 28.6 Nov 225.9 132.2 64.6 29.1 226.8 132.3 65.6 28.8 Dec. 2 , 228.1 134.7 64.3 29.1 233.6 137.9 66.4 29.3 1963- Jan 228.9 134.7 64.6 29.6 229.1 133.4 66.2 29.5 Feb 232.3 136.8 65.4 30.1 230.4 135.2 65.3 29.9 Mar 235.0 137.8 66.7 30.5 231.9 136.4 64.8 30.7 Apr p 232.6 137.4 64.0 31.2 232.4 136.9 64.0 31.4 Mayp 234.8 138.8 64.1 31.9 233.6 138.8 62.9 31.9 Junep 239.4 140.8 66.0 32.6 238.2 142.1 63.5 32.6 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

968 COMMERCIAL BANKS JULY 1963 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans 1 Investments For To purchasing financial U.S. Government Class of lo T a o n t s a l * C m o e m r- - o s r e c c a u r r r i y ti i e n s g institutions Other securities \5 ca a l n l k d a a n te d i m n a v e n e n d s t t s - Total 2 a c i n n ia d - l A c tu u g r l r - - i- To R t e a e s t a - e l i d t n o i- - Other dus- al bro- vidtrial kers To To To uals Total and ithers banks others dealers Total: 2 1947—Dec. 31..16,284 38,057 1,660 830 ,220 115 9,393 5,723 947 69.221 1961—Dec. 30..115,441 24,925 ,172 66,2484,0562,134 1,033 7,31130,320 27",,8_4.7. 3,412 66J578 1962—June 30..120,670 29,193 4 ,9.09 6,8013,2542,005 1,474 7,221 32,,0 36 29., 4,4 4. 3 ,7.13 64,443 Dec. 28.. 135,839 40,106 48,673 7,097 ,1442,131 2,578 8,459 34,259 30,5533,909 66,434 1963—Mar. 18e.35,550 40,380 ,710 7,4604,4802,130 3,120 8,050 34,'920 30,'720 3.780 64,820 All insured: 1941_Dec. 31.. 49,290 21,259 9,,214 1,450 614 662 40 4,773 4,505 21,046 1945—Dec. 31.. 21,809 25,765 9,461 1,314 ,1643,606 49 4,677 2,361 1,132 8888,912 1947—Dec. 31.. 14,274 37,583 [8,012 1,610 823 ,190 114 9,266 5,654 914 67,941 1961—Dec. 30.. 213,904 24,348 44,,965 6,2114,0302,107 1,027 7,296 30,211 27,708 3,396 66,026 1962—June 30., 219,163 28,613 45,,717 6,7663,2341,981 1,469 7,200 31,915 29,299 3,692 63,921 Dec. 28.. 234,243 39,449 48,458 7,060 ,1192,103 2,551 8,434 34,123 30,402 3,890 65,891 1963—Mar. 18.. 233,975 39,731 4-8,'499 7,4174,4592,105 3,098 8,022 34,781 30,568 3,763164,290 Member, total: 1941_Dec. 31. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 119,539 1945—Dec. 31., 07,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 78,338 1947—Dec. 31. 97,846 32,62816,962 1,046 8111,065 113 7,130 4,662 839 57,914 1961—Dec. 30., 79,599 06,232 40,9313,934 3,877 ,827 1,014 6,893 23,987 22,852 3,198 54,058 !6,691 2,617 1962—June 30., 83,497 09,212 41,435 4• ^"2~03,O88 ,699 1,453 6,789 25,362 24,006 3,480 52,065 9,321 2,899 Dec. 28., 95,698 18,637 43,843 4,419 44,954 ,777 2,445 7,936 27,162 24,799 3,657 52,968 20,773 3,319 1963—Mar. 18., 95,060 18,490 43,832 4 580 4,283 ,790 2,994 7,528 27,683 24,869 3,53151,461 21,978 3.131 New York City: 3 1941—Dec. 31. 12,896 4,072 2,807 412 169 32 123 522 I 7,265 1945—Dec. 31. 26,143 7,334 3,044 2,453 ,172 26 80 287 272 17,574 1947—Dec. 31. 20,393 7,179 5,361 545 267 93 111! 564 238 11,972 1961—Dec. 30. 30,297 19,53511,278 231,956 467 376 1,711 934 2,072 1,220 7,862 1962—June 30. 30,396 19,22410,980 10 1,512 409 568 1,774 1,084 2,075 1,321 7,659 Dec. 28. 32,989 21,95411,943 2,766 425 572 2,087 1,329 2,143 1,196 7,017 1963—Mar. 18. 32,941 21,50111,839 2,138 409 1,020 2,040 1,425 2,119 1,082 6,984 City of Chicago: 3 1941—Dec. 31. 2,760 954 732 48 52 22 95 1,430 1945—Dec. 31. 5,931 1,333 760 211 233 36 51 40 4,213 1947—Dec. 31. 5,088 1,801 1,418 73 87 46 149 26 2,890 1961—Dec. 30. 7,606 4,626 2,609 354 137 669 221 476 229 2,041 1962—June 30. 7,937 4,672 2,659 265 147 611 278 456 298 1,936 Dec. 28. 8,957 5,418 2,941 407 152 703 362 523 369 2,129 1963—Mar. 18. 9,078 5,473 2,989 350 163 139 698 379 537 369 2,275 Other reserve city: 1941—Dec. 31. 15,34' 7,105 3,456 300 114 194! 4 1,527 1,508 6,467 1945—Dec. 31. 40,108 8,514 3,661 205 42' ,503 17 1,459 855 387 29,552 1947—Dec. 31. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 1961—Dec. 30. 68,565 42,37916,8791,076 976 784 470 3,261 9,590 9,172 99819,748 1962—June 30. 70,145 43,82417,0771,184 888 727 556 3,148 10,272 9,682 1,12918,627 Dec. 28. 73,130 46,56717,660 11,179 1,053 752 1,020 3,58311,030 9,860 1,26618,398 1963—Mar. 18. 72,594 46,71017,5551,179 1,159 767 1,128 3,40911,252 9,894 1,28417,382 Country: 1941—Dec. 31. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 i 4,377 1945—Dec. 31. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 j 26,999 1947—Dec. 31. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 22,85" 1961—Dec. 30. 73,131 39,69310,165 2,811 591 4381 116 1,251113,24211,132 75124,407 1962—June 30. 75,019 41,49210, ,007 424 416 240 1,256 13,72811,792 732 23,843 Dec. 28. 80,623 44,69811, ,187 728 447 764 1,563 14,44112,273 826 25,425 1963—Mar. 18. 80.44^ 44,80511,4483,360 635 452 708 1,381 14,62712,319 796 24,820 Nonmember: : 1947—Dec. 31. 18,45 5,432 1,205 61 20 156 2 2,266 1,061 10911,318 1961—Dec. 30. 35,856 18,700 4,2412,31 179 306 19 418 6,341 4,995 21412,525 1962—June 30. 37,188 19,989 4,474 2,580 165 306 22 431 6,682 5,439 23312,383 Dec. 28. 40,14' 21,469 4,8302,678 190 354 132 523 7,097 5,754 25213,466 i Beginning with June 30, 1948, figures for various loan items are 2 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for earlier dates appear in the add to the total and are not entirely comparable with prior figures. Total preceding table. loans continue to be shown net. 3 New York City and city of Chicago were central reserve city banks before July 28, 1962; reserve city banks thereafter. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 COMMERCIAL BANKS 969 RESEHNES AM) LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Re- Bal- Deb c C a a l n l a l k s d s a a o n te f d s B w F e a r R i v n t e k h . s s r C c e a o n n u i d c r n - y b m a a w d n e n i o c s t k - e t h i s s c 4 j p m u o a s a t d s n e i - t d d s 5 | | ; m D e In o st - t i e c r 4 ba e n F i k o g r n - 6 G U o .S v . t. S g l a o o t n c a v d a t t e l . c C h c o f a e e e i f n e r c f r d i d t s k - i ' - s, IPC b n a t n e k r- G ' S U a o o a . n s v v S t d t - a . . i S g l a t o o n c a v a d t t l e . C t a a p l ietc. ings ta S947—Dec 31.... 17,796 2,2l6i 10,216; 87.123 11,362 ,430 1,343 6,799 2,581 84,987 240 111 866 0,059 1961— Dec. 30 16,918 3,689 14,1691122.654 16,574 ,340 5.946 12,242 5,056 124,622 481 283 5.465 22.459 1962—June 30.... 16,839 3,185 11.7991114,043i 13,185 ,215 9.554 11,814 4,437 112,534 525 100 6.341 ^3.183 Dec. 28.... 17,680 4.252 13.099'124.342! 14,713 ,295 6.829 12,071 4.511 124,459 535 269 6.450 90,991 3.62724.094 196.3—Mar. 18'... 16,100 3,920 12,630M18.930' 14,120 150 5,400 11,720 4,340 117,480 460 270 7,150 94.610 2.99024.140 AH insured: 1941_Dec. 31.... 12,396 1,3581 8,570] 37,845 9,823 673 1,762 3.677 1,077 36,544 158 59 492 15.146 10| 6.844 1945—Dec. 31.... 15,810 1,829! 11,075 74,722 12,566 24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8.671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 379 1,325 6,692 2,559 83,723 54 HI 826 33,946 61 9,734 1961—Dec. 30..., 16,918!, 3,670 13,871121,671 16,440 ,298 5,934 12,149 5,023 123,878 333 283 5,412 76,426 462 22,089 1962-June 30..., 16,839 3,168 11,524113,136 13,053 ,182 9,529 11,727 4,390 111,874 388 300 6,290 85,124 77322,810 Dec. 28..., 17,680 4,232 12.795123,361 14,579 ,265 6,815 11,991 4.434 123.744 402 269 6,397 90,7143,584 23,712 1963—Mar. 18.... 16,098 3,906 12,162118.014 14,021 ,138 5,391 11.636 4,284 116,825 422 267 7.091 94.3202.95323.784 Member, total: 1941— Dec. 31..., 12,3%! 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' .243 22,179 4,240 2.450 62.950 64 99 399 23,712 208 7,589 1947—Dec. 31... 17,797i 1.672! 6.270^ 73 528 10.978J .375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1961—Dec. 30... 16,918 2,813! 8,724! 100,660! 15,924 ,270 5,381 9,487 4,654 105,454 303 260 4,371 62,526 43818,638 3962—June 30... 16,839 2,399 7,182 93,555| 12,633 ,163 8,734 9,107 4,080 94,826 351 274 5,096 69,793 73519,179 Dec. 28... 17,680 3,263 7,897 101,528| 14,071 ,23' 6,086 9,270 4,083 104,646 358 243 5,158 74,316 3,550 19,854 1963—Mar. 18... 16,098 3,005 7,689^ 96,903! 13,558 4,760 8,874 3,950 98,481 374 241 5,745 77,352 2,883 19,919 New York City 3 1941—Dec. 3'... 5,105; 93! 14l| 10,761i 3,595 607 866 319 450 11,282 6 29 778 1,648 1945_Dec. 31... 4,0151 111! 78| 15.065! 3,535 ,105 6,940 237 1,338 15,712 17 20 1,206 195 2,120 1947—Dec. 31... 4,639| 151! 70j 16 653! 3,236 ,217 267 2S0 1,105 17,646 1 14 1,418 30 2,259 1961—Dec. 30... 3,286 2401 143 17,089 4,330 967 1,267 333 2,583 20,213 191 162 6,735 283 3,683 1962—June 30... 3,495 165| 106 15,796 3,643 87- 1,918 327 2,390 17,580 210 221 7,824 381 3,761 Dec. 28... 4,121 251! 156 17,095 3,854 929 1,408 366 2,237 19,628 207 266 8,9371,728 3,898 1963—Mar. 18... 3,341 254i 126 16,103 3,926 818 880 309 2,231 17,953 215 318 9,541 1,357 3,920 Citv of Chicago:* 1941 - Dec. 3>.., 1.02l| 2981 2,215! 1,027 127 2331 3 2,152 ..! 476 288 1945- Dec. 31... 942! | 3 153! 1,292 20 1.552 237 66 3,160 ..I 719 377 1947-Dec. 31... 1,070! 175 3 737! 1,196 72 285 63 3,853 9; 902 426 1961 -Dec. 30... 889 158, 3,809! 1,578 369 124 4,830 8 1,996 870 1962—June 30... 916; 94J 3,7281 1,083 546 109 4,082 10 2.581 894 Dec. 28... 1.0711 * ?*2| 1.235 410 • 09 4 R04 if 1 001 1963—Mar. 18... 8561 42 4.1461 1,190 265 118 4,458 49 3,161 267 954 Of her reserve citv: 3 | 1941—Dec. 31... 4,060l 2,5901 11,117! 4,302! 54 491! 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31... 6,326! 4941 2.1741 22,372j 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947— Dec. 31... 7,095| 562| 2.125! 25,714| 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1961—Dec. 30... 7,533^ 8581 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,lllj 33,710! 6,394 228 3,670 3,191 907 36,504 75 110 2,706 26,847 240 7,201 Dec. 28... 7,671 1,021 2,253! 35,481! 7,229 248 2,337 3.216 980 39,413 83 2,633 28,0271,388 7,263 1963—Mar. 18... 7,130 935 2,301! 33,917! 6,829 237 1,863 2,822 90 37,199 82 2,873 29,2051,038 7,294 Country: 1941—Dec. 31... 2,210 «26 3,216 9 661| 790! 225 1,370 239 8,500 146 6,082 4 1,982 1945—Dec. 31... 4,527 796 4.665 23,595! 1,199! 5,4*5 2,004 43: 21,797 52 219 12,224 11 2,525 1947—Dec. 31... 4.993] 929 3.9C0 27.424 1,049! 432 2,647 52* 25,203 45 337 14,177 23 2,934 1961—Dec. 30... 5,210 1,678 5,881 43,575 ,,„«! 1,641 5,320 796 40,095 108 1,891 29,834 40 7,088 1962—June 30... 5,023 1,438 4,872 40,32l| 1,512 2,601 5,261 676 36,660 104 2,158 32,541 80 7,323 Dec. 28... 4,817 1,947 5,389 44,689i 1,753| 1,931 5,337 75^ 40,801 100 2,242 34,350 172 7,744 1963—Mar. 18... 4,771 1,774 5,105] 42,737j l,612j 1,752 5,456 70C 38,872 97 2,504 35,446 222 7.750 Nonmember:2 1947—Dec. ^1. 544 3,947 13.595J 385 167 V95 12,284 19C 6 172 6 858 12| 1,596 1961—Dec. 30. 876 5,446 21,994 649 565 2,755 19,168 73 1094 14,169 3,822 1962—June 30. 787 4,617! 20,489 819! 2.707 17,70r 174 26 1 245 15.614 4,C05 Dec. 28. 989 5,202! 22,814 642 743! 2,802 19,81: 176 26 1,292 16,675 77 4,240 * 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 membe r 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 * Beginning with June 1961, reclassification of deposits of foreign or total banks. Comparability of figures for classes of banks is affected central banks reduced foreign interbank demand deposits by about $400 somewhat by changes in F.R. membership, deposit insurance status, and million and interbank time deposits by about $1,500 million. These the reserve classifications of cities and individual banks, and by mergers, amounts are now included in demand and time deposits of individuals, etc. partnerships, and corporations. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 WEEKLY REPORTING MEMBER BANKS JULY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing ox carrying securities To financial institutions Wednesday m i T l n o a e v o n a n e t n d a t s s s t l - 1 j i L m u n a s a o v e n t d a e n e d - n s d t t s s * - j L u a o st d a 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 t c u u g r l r a - i l - G U c a T t u i o n . o e n S v d s - . t b . d r e o O a k c l t s e u t e i e h e r r r - s s e i s - r G U c t u T i o . e r S v o s i- . t. oth O c e t u t i r h e r s s i e - r F ei o g r n - Ban c k m m D c o t i i e e o m a c s r - l - - - f P s C i a e n a O e N n t l a r c S e d n s o . . s . , . nb O an t k her e R s e ta a t l e o A th l e l r V s t e a r i r o e l v u - n e a s - Total- Leading Cities 1962 June 6. 122,496 120,816 74,677 32,791 1,381 499 2,022 1,381 690 1,680 3,436 2,334 14,084 17,685 1,718 13 123,547 121,640 75,075 32,894 1,389 713 1,940 1,354 707 1,907 3,430 2,385 14,161 17,728 1,719 20 124,238 122,872 76,025 33,328 1,387 789 1,939 1,339 741 1,366 3,670 2,448 14,227 17,784 1,718 27 124,345 122,806 75,902 33,354 1,383 597 1,936 1,333 749 1,539 3,549 2,490 14,268 17,872 1,721 1963 May 1 133,015 130,890 82,961 35,337 ,540 1,036 3,064 85 ,459 684 2,125 3,943 2,762 16,237 18,751 ,937 8 131,491 129,777 82,285 35,232 ,538 840 2,836 77 ,469 679 1,714 3,779 2,769 16,310 18,694 ,938 15 132,329 130,716 82,963 35,433 ,548 747 3,063 77 ,475 694 1,613 3,878 2,796 16,421 18,765 ,934 22 131,969 130,540 82,755 35,267 ,555 634 3,160 75 ,488 707 1,429 3,730 2,800 16,502 18,769 ,932 29 131,565 129,843 82,280 35,068 ,560 294 3,070 75 ,492 702 1,722 3,714 2,869 16,537 18,833 ,934 June 5 131,641 129,645 82,388 34,962 ,548 323 3,080 81 ,489 707 1,996 3,800 2,866 16,566 18,904 ,938 12 131,882 129,961 82,686 35,034 ,549 376 3,111 77 ,494 714 1,921 3,765 2,931 16,645 18,928 ,938 19 133,219 131,935 84,167 35,489 ,550 594 3,309 76 ,498 761 1,284 4,152 3,013 16,703 18,960 ,938 134,553 133,116 84,693 35,599 ,533 645 3,423 104 ,522 728 1,437 4,178 3,074 16,771 19,055 ,939 26 New York City 1962 29,431 28,764 18,321 10,730 339 1,016 421 339 667 ,197 487 949 3,310 492 June 6 29,857 29,117 18,449 10,735 514 954 409 357 740 ,163 512 960 3,312 492 13 30,060 29,759 18,858 10,984 500 986 404 372 301 ,281 521 974 3,305 491 20 30,029 29,654 18,707 11,018 373 988 403 380 375 ,188 526 980 3,320 491 27 1963 May 1 32,453 31,793 20,582 11,564 588 1,698 410 323 660 ,379 538 1,519 3,097 563 8 , 31,491 30,992 20,134 11,474 508 1,524 415 319 499 ,259 535 1,561 3,077 563 15 31,810 31,461 20,449 11,553 429 1,690 419 326 349 ,342 522 1,608 3,099 563 22 31,530 31,278 20,194 11,492 339 1,688 424 334 252 ,221 520 1,626 3,089 563 29 31,374 30,829 19,935 11,420 121 1,664 429 330 545 ,230 525 1,646 3,108 563 June 5 31,345 30,640 19,946 11,327 144 1,686 423 332 705 ,264 524 1,668 3,111 566 12 31,695 30,848 20,025 11,345 190 1,711 428 336 847 ,235 530 1,685 3,103 566 19 31,981 31,743 20,706 11,530 347 1,839 429 349 238 ,441 534 1,693 5,082 566 26 32,455 32,151 20,867 11,589 280 1,891 436 331 304 ,470 544 1,712 3,129 565 Outside New York City 1962 June 6 93,065 92,05: 56,356 22,061 1,372 160 1,006 960 351 1,013 2,239 1,847 13,135 14,375 ,226 13 93,690 92,52: 56,626 22,159 1,380 199 986 945 350 1,167 2,267 1,873 13,201 14,416 ,227 20 94,178 93,11: 57,167 22,344 1,378 289 953 935 369 1,065 2,389 1,927 13,253 14,479 ,227 27 94,316 93,15: 57,195 22,336 1,374 224 948 930 369 1,164 2,361 1,964 13,288 14,55" ,230 1963 May 1 100,562 99,097 62,379 23,773 1,528 448 1,366 ,049 361 ,465 2,564 2,224 14,718 15,654 ,374 8 100,000 98,785 62,151 23,758 1,525 332 1,312 ,054 360 ,215 2,520 2,234 14,749 15,617 ,375 15 100,519 99,255 62,514 23,880 1,536 318 1,373 ,056 368 ,264 2,536 £.274 14,813 15,666 ,371 22 100,439 99,262 62,561 23,775 1,543 295 1,472 ,064 373 ,177 2,509 2,280 14,876 15,680 ,369 29 100,191 99,014 62,345 23,648 1,547 173 1,406 ,063 372 ,177 2,484 2,344 14,891 15,725 ,371 June 5 100,296 99,00: 62,44: 23,635 1,535 179 1,394 ,066 375 ,291 2,536 2,34: 14,898 15,793 ,372 12 100,187 99,11: 62,661 23,689 1,536 186 1,400 ,066 378 ,074 2,530 2,401 14,960 15,825 ,372 19 101,238 100,19: 63,461 23,959 1,538 24' 1,470 ,069 412 1,046 2,711 2,479 15,010 15,878 ,372 26 102,098 100,96: 63,826 24,010 1,520 365 1,53" 1,086 397 1,133 2,708 2,530 15,059 15,926 ,374 For notes see p. 972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 WEEKLY REPORTING MEMBER BANKS 971 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 Notes and bonds Other a B n a c l e - s a B n a c l e - s Currency se R rv e- es a o s t s h e e t r s lia ti b e i s li- Total Bills C ti e fi r - - maturing— s ri e t c ie u s - Total do w t m i i c t e h s- w e fo i i g r t n h - c a o n i d n B F w a . i n R t k h . s a c c a c a p o n i u d ta n l ts cates W 1 y i i n e th a - r 5 1 y e t a o rs 5 A y f e te a r rs banks banks Total- Leading Cities 1962 June 6 32,266 3,980 2,141 6,651 14,476 5,018 13,873 17,208 2,850 139 ,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 ,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 ,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 ,620 13,068 4,551 159,214 1963 May 1 30,689 4,537 ,841 2,441 14,168 7,702 17,240 18,028 3.361 194 ,554 12,919 5,126 171,271 8 30,277 4,156 ,857 2,444 14.203 7.617 17,215 17,341 2,943 200 ,567 12,631 5,076 166,664 15 30,481 4,342 ,754 2,381 14,618 7,386 17,272 17,716 3,256 199 ,628 12,633 5,020 171,255 22 30,225 4,220 ,779 2,378 14,602 7,246 17,560 17,606 2,977 207 ,648 12,774 4,952 167,600 29 29,966 4,145 ,774 2,390 14,530 7,127 17,597 16,910 2,931 210 ,618 12,151 5,074 167,292 June 5 29,660 3,929 ,773 2,413 14,491 7,054 17,597 17,350 3,002 208 ,525 12,615 5,150 167,715 12 29,566 3,876 ,769 2,437 14,512 6,972 17,709 17,670 3,157 231 ,701 12,581 5,067 169,401 19 29,791 4,068 ,761 2,472 14,494 6,996 17,977 18,194 3,167 219 ,670 13,138 5,032 170,641 30,377 4,223 ,757 2,462 14,524 7,411 18,046 17,702 3,048 214 ,746 12,694 5,091 170,720 26 New York City 1962 7,223 1,687 438 1,430 2,510 ,158 3,220 3,742 220 3,373 1,919 39,393 June 6 7,232 \776 432 1,429 2,508 ,087 3,436 3,990 226 3,606 1,868 40,352 13 7,509 ,905 512 1,441 2,558 ,093 3,392 4,181 218 3,820 1,863 40,669 20 7,502 ,866 521 1,475 2,581 ,059 3,445 4,207 225 3,807 1,886 40,758 27 1963 May 1.., 6,639 ,850 245 501 2,390 ,653 4,572 4,240 112 77 227 3,824 2,165 44,455 8 6,406 ,625 266 490 2,399 ,626 4,452 3,934 71 82 242 3,539 2,139 42,054 15 6,564 ,875 232 347 2,582 ,528 4,448 4,087 100 76 231 3,680 2,100 43,660 22 6,452 ,794 230 347 2,591 ,490 4,632 4,193 117 79 239 3,758 2,097 42,337 29 6,238 ,630 235 357 2,544 ,472 4,656 3,903 79 85 227 3,512 2,136 42,708 June 5 6,002 ,412 233 350 2,549 ,458 4,692 3,886 94 78 239 3,475 2,219 42,097 12 6,046 ,459 236 363 2,565 ,423 4,777 3,933 84 92 249 3,508 2,131 42,652 19 6,263 ,636 225 373 2,558 ,471 4,774 4,434 104 80 242 4,008 2,094 43,052 26 6,470 ,741 230 382 2,552 ,565 4,814 4,066 90 78 252 3,646 2,138 43,296 Outside New York City 1962 June 6.. , 25,043 2,293 1,703 5,221 11,966 3,860 10,653 13,466 2,771 ,226 9,400 2,663 117,387 13 25,023 2,289 1,706 5,289 11,898 3,841 10,874 13,469 2,865 ,357 9,174 2,653 119,124 20 25,017 2,279 1,698 5,253 12,198 3,589 10,929 13,602 2,791 ,320 9,418 2,645 119,070 27 24,916 2,131 1,694 5,274 12,217 3,600 11,041 13,458 2,729 ,395 9,261 2,665 118,456 1963 May 1 24,050 2,687 1,596 1,940 11,778 6,049 12,668 13.788 3,249 117 ,327 9,095 2,961 126,816 8 23,871 2,531 1.591 1,954 11,804 5,991 12,763 13,407 2,872 118 ,325 9,092 2,937 124,610 15 23,917 2,467 1,522 2,034 12,036 5,858 12,824 13,629 3,156 123 ,397 8,953 2,920 127,595 22 23,773 2,426 1,549 2,031 12,011 5,756 12,928 13,413 2,860 128 ,409 9,016 2,855 125,263 29.. 23,728 2,515 1,539 2,033 11,986 5,655 12,941 13,007 2,852 125 ,391 8,639 2,938 124,584 j line 5 23,658 2,517 1,540 2,063 11,942 5,596 12,905 13,464 2,908 130 ,286 9,140 2,931 125.618 12... 23,520 2,417 1,533 2,074 11,947 5,549 12,932 13,737 3,073 139 ,452 9,073 2,936 126,749 19......... 23,528 2,432 1,536 2,099 11,936 5,525 13,203 13,760 3,063 139 ,428 9,130 2,938 127,589 26 23,907 2,482 1,527 2,080 11,972 5,846 13,23: 13,636 2,958 136 ,494 9,048 2,953 127,424 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 WEEKLY REPORTING MEMBER BANKS JULY 1963 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time De- Other C i a ta p l - Wednesday ju u T s n o t a e t d a d l - * ju m po s d a a t e d s e n - i - t d d s 5 Total* IPC O S l a o t o n a c v t d a e t l s . e F ig o n r- ? G U o .S v . t. c m m D c o t i e i e o m a c s r - l - - - Total * S in a g v s - IPC Oth S l a o e t n a r c t d a e t l i s me For- B F F a r . o n R m k . s o F t r h o e m rs lia ti b e i s li- co a u c n - ts banks Govt. Total- Leading Cities 1962 June 6 135,996 61,504 89,341 63,718 5,181 1,658 3,907 11,436 46,655 32,194 '8,399 3,422 2.264J 26 1,979 5,505 13,274 13 138,317 62,769 91,487 66,761 4,878 1,654 3",314 11,455 46.830 32,287 r8,506 3,411 2;244! 73 2,297 5,524j 13,265 20 139,016 62,226 92,150 65,457 4,688 1,723 5,48611,228 46,866 32,384 '8,451 3,401 2.247! 410 1,723 5,343! 13,247 27 138,468 61,472 91,391 64,022 4,829 1,716 6,59410,672 47,077 32.539 r8.5U 3,402 2,241! 291 1,825 5,356i 13.274 1963 May 1 148,923 63,699 95,172 67,004 5,993 1,6914,957 11,414 53,751 35,82210,679 4,0191 2,834; 75 2,671 5,737 13,865 8 144,163 61,888 90,137 63,914 5,376 1,—773 4,19111,302 54,026 35,909 10,854 4,052 2,818 332 2,551 13,880 15 148,507 61,006 94,266 66,197 5,364 1,748 5,20411,866 54,241 35,95211,036 4' ,0M2" 7 2,834 565 2,481 13,869 22 144,892 61,245 90,477 63,760 5,367 1,672 5,481 10,678 54,415 36,01411,133 4,039 2,847 732 2,293 13,866 29 144,714 61,143 90,176 64,260 5,399 1,635 4,53710,753 54,538 36,04811,175 4,076 2,857| 79 2,662 13,911 June 5 144,910 61,452 90,353 64,401 5,280 1,640 3,87011,457 54,557 36,12611,160 4,035 2.857 133 2,852 5,896 13,924 12 146,706 62,785 92,014 67,442 4,834 1,637 2,825 11,622 54,692 36,18111,275 4,001 2,859 170 2,694 5,917l 13,914 19 148,061 62,191 93,460 66,389 4,684 1,772266 5,58711,486 54.601 36,22011,206 3,928 2.871! 716 2,079 5,891 13.894 148,336 62,010 93,480 65,147 4,905 1,6937,144 10,952 54,856 36.35511.269 3,966 2,894! 568 2,250 5,623 13.943 26 New York City 1962 32,113 15,787 24,139 16,440 334 1,251 1,078 2,973 7,974 3,460 2,508 205 1,621 758 2,781 3,741 June 6 32,821 16,313 24,746 17,434 260 1,241 881 2,915 8,075 3,484 2,599 206 1,604 10 1,056 2,723 3,742 13 33,253 16,233 25,212 17,006 276 1,295 1,447 2,967 8,041 3,505 2,541 206 1,605 101 946 2,630 3,739 20 33,356 15,961 25,278 16,751 252 1,290 1,797 2,884 8,078 3,524 2,570 201 1,599 97 870 2,705 3.730 27 1963 May 1 36,615 16,422 26,831 17,405 755 1,259 1,579 3,233 9,784 4,175 3,126 265 2,026 1,073 2,883 3,884 8 34,122 15,372 24,287 15,974 312 1,341 1,279 3,146 9,835 4,194 3,172 265 2,011 1,185 2,860i 3,887 15 35,416 15,004 25,529 16,620 311 1,304 1,466 3,396 9,887 4,204 3,212 270 2,020 257 1,248 2,8541 3,885 22 34,116 15,262 24,203 15,976 331 1,251 1,462 2,962 9,913 4,216 3,211 274 2,030 282 ,226 2,838 3,875 29 34,653 15,025 24,711 16,414 394 1,225 1,185 3,206 9,942 4,215 3,231 279 2,035 ,293 2,887 3,875 June 5 34,120 15,327 24,192 16,181 289 1,221 1,113 3,105 9,928 4.220 3.220 278 2,028J. ,192 2,905 3.880 12 34,735 15,983 24,735 17,165 286 1,210 785 3.074 10.000 4.234 3.288 273 2.024J 25 ,169 2,845 3,878 19 34,902 15,920 24,980 16,845 278 1,266 ,528 2^989 9,922 4.239 3.191 274 2.039,1 330 ,121 2,825 3,874 26 35,415 15,792 25,424 16,614 287 1,259 ,998 2,997 9,991 4.252 3,181 2,052! 212 ,075 2,700 3.894 Outside New York City 1962 June 6... 103,883 45,717 65,202 47,278 4,847 407 2,829 8.463 38.681 28.734 r5.891 3.217 643 26 1,221 2,724 9,533 13... 105,496 46,456 66,741 49,327 4,618 413 2,433 8; 540 38,755 28 803 r5 907 3,205 640 63 1,241 2,801 9,523 20... 105,763 45,993 66,938 48,451 4,412 428 4,039 8,261 38,825 28 879 r5 910 3,195 642 309 777 2,713 9,508 27... 105,112 45,511 66,113 47,271 4,577 426 4,797 7,788 38,999 29 015 r5 941 3,201 642 194 955 2,651 9.544 1963 May 1... 112,308 47,277 68,341 49,599 5,238 432 3,378 8,181 43,967 31,647 7,553 3,754 808 75 1,598 2,854 9,981 8... 110,041 46,516 65,850 47,940 5,064 432 2,912 8,156 44,191 31,715 7,682 3,787 807 332 1,366 2,878 9,993 15 113,091 46,002 68,737 49,57? 5,053 444 3,738 8,470 44,354 31,748 7,824 3,757 814 308 1,233 2,979 9,984 22... 110,776 45,983 66,274 47,784 5,036 421 4,019 7,716 44,502 31,798 7,922 3,765 817 450 1,067 2,979 9,991 29... 110,061 46,118 65,465 47,846 5,005 410 3,352 7,547 44,596 31,833! 7,944 3,797 822 79 1,369 3,039 10,036 June 5... 110,790 46,125 66,161 48,220 4,991 4192,757 8,352 44.629 31.906! 7.940] 3.757 829 133 1,660 2,991 10,044 12... 111,971 46,802 67,279 50,277 4,548 4272,040 8,548 44.692 31,947! 7.987! 3.728 835 145 1,525 3,072 10,036 19 113,159 46,271 68,480 49,544 4,406 460 4',059 8.497 44.679 31,981j 8,015! 3,654 832 386 958 3,066 10,020 26... 112,921 46,218 68,056 48,533 ; 4345,146 7,955 44,865 32.1031 8,088| 3,639 842 356 1,175 2,923 10,049 1 After deduction of valuation reserves. * 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

JULY 1963 BUSINESS LOANS OF BANKS 973 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (Net change in millions of dollars) Week Month Quarter Half year Industry 1963 1963 1963 1962 1963 1962 Ju 2 n 6 e Ju 1 n 9 e Ju 1 n 2 e Ju 5 ne M 2 a 9 y June May Apr. 11 I IV 1st 2nd Durable goods manufacturing: Primary metals -1 3 2 -12 8 -7 18 -61 -50 12 -25 -38 -74 Machinery 8 44 3 j -1? 54 -26 -12 16 135 -13 151 19 Transportation equipment 23 45 2 2 68 -44 -105 -80 -11 62 -91 47 Other fabricated metal products . . . _2 17 8 -18 1 6 20 9 36 22 -44 58 -91 Other durable goods 16 9 -9 -5 26 23 9 58 33 -158 91 -18 Nondurable goods manufacturing: Food, liquor, and tobacco 21 60 -22 -26 -46 34 -120 -136 -222 -371 416 -593 528 Textiles, apparel, and leather 10 16 16 4 -13 46 26 9 80 207 -275 288 -179 Petroleum refining 3 -5 7 -5 19 26 12 39 -32 31 7 43 Chemicals and rubber -10 11 2 8 -24 11 -52 17 -24 90 25 66 -129 Other nondurable goods -1 18 6 10 4 33 20 -7 47 46 -112 92 -105 Mining, including crude petroleum and natural gas -32 15 8 -27 -15 -36 6 -30 -59 296 91 237 66 Trade: Commodity dealers — 12 -10 -2 -7 -23 -94 -78 -195 -69 133 -263 220 Other wholesale 9 -6 1 3 13 7 43 50 100 -77 60 23 123 Retail 21 18 2 -16 -6 25 24 22 71 -7 117 64 154 Transportation, communication, and other public utilities 29 83 — 22 -7 -39 83 -41 -64 -22 -233 346 -255 655 Construction 11 20 3 -3 9 31 91 53 175 -42 -46 133 - 17 All other types of business, mainly services -3 51 43 -3 -32 88 32 67 187 21 283 208 290 Net change in classified loans 84 407 59 -104 -171 446 -46 -244 156 21 893 177 1533 Commercial and industrial change— all weekly reporting banks 110 455 72 -106 -199 531 32 -172 391 42 1103 433 1812 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 p A e a r n r i e d o a d lo A a l n l s 1- (thou 1 s 0 a - nds of 1 d 0 o 0 l - lars) 200 p A e a r n r i e d o a d lo A a l n l s 1- (thou 1 s 0 a - nds of 1 d 0 o 0 l - lars) 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.: i 19 large cities: New York City: 1962—June 4.79 5.64 5.35 5.09 4.68 1954 3.6 5.0 4.3 3.9 3.4 Sept 4.77 5.60 5.35 5.14 4.65 1955 3.7 5.0 4.4 4.0 3.5 Dec 4.78 5.61 5.33 5.12 4.68 1956 4.2 5.2 4.8 4.4 4.0 1963—Mar 4.80 5.62 5.36 5.06 4.70 1957 4.6 5.5 5.1 4.8 4.5 June 4.78 5.61 5.37 5.05 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: 1960 5.2 6.0 5.7 5.4 5.0 1962—June 5.00 5.83 5.52 5.21 4.86 1961 5.0 5.9 5.5 5.2 4.8 Sept 5.00 5.87 5.51 5.20 4.87 1962 5.0 5.9 5.5 5.2 4.8 Dec 5.05 5.85 5.55 5.23 4.92 1963—Mar 4.98 5.85 5.53 5.18 4.84 June 5.01 5.84 5.54 5.27 4.87 Quarter: * 19 large cities: 11 southern and western cities: 1962—June.. 5.01 5.88 5.53 5.25 4.84 1962—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 1963—Mar.. 5.00 5.89 5.55 5.21 4.83 1963—Mar 5.30 6.02 5.66 5.33 5.07 June.. 5.01 5.86 5.54 5.24 4.84 June 5.32 5.97 5.63 5.34 5.12 1 Based on new loans and renewals for first 15 days of month. Changes thereafter occurred on the following dates (new levels shown, in NOTE.—Weighted averages. For description see Mar. 1949 BULL., pp. 228-37. Bank prime rate was 3lA per cent Jan. 1, 1954-Mar. 16, 1954. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 INTEREST RATES JULY 1963 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) Finance Prime CO. Prime compl. 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 * 3- to 6- 90 days i Rate Rate Bills year months 2 on is s n u e e w M y a ie r l k d et on is s n u e e w M y a ie r l k d et (m yi a e r ld k ) et Other 4 issues 5 1960 3.85 3.54 3.51 2.928 2.87 3.247 3.20 3.41 3.55 3.99 1961 2.97 2.68 2.81 2.378 2.36 2.605 2.59 2.81 2.91 3.60 1962 3.26 3.07 3.01 2.778 2.77 2.908 2.90 3.01 3.02 3.57 1962—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 Aus 3.30 3.12 3.11 2.837 2.82 3.005 2.99 3.10 3.13 3.57 Sent 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 Fcb 3.25 3.13 3.13 2.916 2.92 2,970 2.98 3 00 2.89 3.48 Mar 3.34 3.15 3.13 2.897 2.89 2.950 2.95 2.97 2.99 3.50 Apr 3.32 3.17 3.13 2.909 2.90 2.988 2.98 3.03 3.02 3.56 May 3.25 3.15 3 13 2 920 2.92 3 006 3.01 3 06 3.06 3.57 June 3.38 3.21 3.24 2.995 2.99 3.078 3.08 3.11 3.17 3.67 Week ending— 1963—June 1 . .. 3.25 3.13 3.13 2.974 2.98 3.055 3.06 3.09 3.17 3.64 8 3.38 3.19 3.23 3.028 3.00 3.098 3.08 3.12 3.21 3.68 15 3.38 3.19 3.25 2.975 2.98 3.063 3.07 3.11 3.18 3.66 22 3.38 3.21 3.25 2.997 2.98 3.081 3.08 3.11 3.15 3.68 29 3.38 3.25 3.25 2.979 2.99 3.070 3.07 3.11 3.14 3.67 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- 3 Selected note and bond issues. ties in the 90-179 day range. * 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 Stock!J State By selected By Dividend/ Earnings/ Period United iind loca rating group price ratio price ratio States Total i (longterm) 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 - 1960 4.01 3.69 3.26 4.22 4.73 4.41 5.19 4.59 4.92 4.69 4.75 3.47 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 2.97 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 6.05 1962 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 6.40 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 Auc . 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 r6.22 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 '6.57 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 Feb 3.92 3.24 2.99 3.57 4.48 4.19 4.89 4.37 4.69 4.37 4.27 3.27 Mar 3.93 3.21 2.97 3.56 4.47 4.19 4.88 4.38 4.65 4.38 4.24 3.28 *5.53 Apr 3.97 3.21 2.97 3.55 4.47 4.21 4.87 4.40 4.63 4.39 4.31 3.15 May. . 3.97 3.21 2.99 3.54 4.48 4.22 4.86 4.40 4.63 4.39 4.29 3.13 June 4.00 3.31 3.09 3.62 4.47 4.23 4.84 4 40 4 61 4.40 4.29 3.16 Week ending— 1963 June 1 3.99 3.22 3.00 3.55 4.48 4.23 4.84 4.40 4.63 4.39 4.27 3.15 8 4.00 3.29 3.06 3.60 4.47 4.23 4.84 4.40 4.62 4.39 4.27 3.15 15 3.99 3.30 3.08 3.62 4 47 4.23 4.83 4.40 4 61 4 39 4 28 3 15 22 4.00 3.32 3.10 3.63 4.47 4.22 4.84 4.40 4.61 4.40 4.30 3.16 29 . . .. 4.00 3.32 3.10 3.63 4.47 4.22 4.84 4.40 4.63 4.40 4.31 3.19 4-12 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 from Moody's Investors Service series. of corporate bonds in some groups has varied somewhat. Stocks: Standard and Poor's Corp. series. Dividend/price ratios are based on Wed. figures; earnings price ratios are as of end of period. NOTE.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on 8 median yields for a sample of non- Monthly and weekly yields are computed as follows: U.S. Govt. bonds: callable issues—12 industrial and 2 public utility; common stock ratios Averages of daily figures for bonds maturing or callable in 10 years or on the 500 stocks in the price index. Quarterly earnings are seasonally more. adjusted at annual rates. State and local govt. bonds: General obligations only, based on Thurs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 SECURITY MARKETS 975 SECURITY PRICES Bonds Common stocks Vol- Standard Standard and Poor's index Securities and Exchange Commission index ume and Poor's (1941-43= 10) (1957-59= 100) of trad- Period U.S. ing Govt. Manufacturing Trade, (thou- ( t l e o r n m g ) - S l a o t n c a d a te l A C r p a A o o t r - e A - 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 y b 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 y b 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 e d s 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 69.99 32.83 61.87 134.2 126.7 129.2 124.4 105.7 168.4 160.2 92.5 4,085 1962 86.94 112.0 95.6 62.38 65.54 30.56 59.16 127.1 118.0 116.5 119.4 97.8 167.2 155.0 98.0 3,820 1962—June 87.61 111.2 95.7 55.63 58.32 28.05 53.32 114.3 105.7 103.2 108.1 90.2 151.1 141.3 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. 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. 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 '4,573 Feb 87.33 112.1 97.8 65.92 68.91 34.59 64.07 135.0 125.5 121.0 129.7 110.3 177.5 158.4 109.3 4,168 Mar 87.15 113.3 97.8 65.67 68.71 34.60 63.35 133.7 124.5 118.7 129.9 109.3 174.5 158.6 111.5 3,565 Apr 86.63 113.2 97.4 68.76 72.17 36.25 64.64 140.7 132.0 126.9 136.9 116.3 179.2 164.8 120.1 5,072 May 86.66 112.6 97.1 c70.14 73.60 38.37 C65.52 143.2 134.3 130.7 137.7 124.2 180.6 170.0 123.2 4,781 June 86.36 110.7 97.1 70.11 73.61 39.34 64.87 142.5 133.7 130.8 136.7 127.2 178.0 170.6 125.2 4,529 Week ending— 1963—June 1 . 86.45 111.8 97.1 70.25 73.71 39.49 65.40 144.1 135.4 133.3 137.5 127.6 179.6 171.1 124.7 4,155 8.. 86.35 111.1 97.0 70.58 74.14 39.32 65.20 143.2 134.5 132.2 136.8 126.2 178.6 170.7 124.8 5,463 15....... 86.45 110.8 97.0 70.17 73.71 38.90 64.83 142.9 134.1 131.1 136.9 125.9 178.7 171.6 123.9 4,566 22....... 86.32 110.3 97.2 70.06 73.55 39.30 64.90 142.8 133.9 130.9 136.8 129.0 178.5 171.0 125.5 4,110 29 86.32 110.7 97.2 69.62 73.04 39.83 64.56 141.0 132.1 127.9 136.2 127.8 176.3 169. 126.7 3,976 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 N.Y. Stoci: Exchange brokers and dealers for pur- Money borrowed on— Cus- Months Total firms secured by— chasing and carrying— tomers' securities net other than Other securities free U.S. Govt. G U o .S v . t. Other G U o .S v . t. Other G U o .S v . t. c b re a d l- it securities securities securities securities securities Customer Other ances Total lOlai collateral collateral 1959—Dec 4,461 150 3,280 167 1.181 221 2,362 2,044 318 996 1960—Dec 4,415 95 3,222 138 1,193 142 2,133 1,806 327 1,135 1961—Dec 5,602 35 4,259 125 1,343 48 2,954 2,572 382 1,219 1962—June.... 4,938 32 3,605 92 1,333 46 2,194 1,897 297 1,374 July.... 4,876 29 3.562 83 1,314 32 2,091 1,856 235 1,252 Aug 5,073 23 3,773 80 1,300 35 2,472 2,190 282 1,130 Sept 5,156 27 3,887 81 1,269 49 2,689 2,381 308 1,091 Oct 5,165 25 3,864 81 1,301 29 2,596 2,271 325 1,126 Nov 5,285 24 3,951 82 1,334 28 2,558 2,269 289 1,151 Dec 5,494 24 4,125 97 1,369 35 2,785 2,434 351 1,216 1963—Jan 5,595 28 4,208 95 1,387 32 2,895 2,556 339 1,199 Feb 5,717 23 4,332 91 1,385 35 3,059 2,695 364 1,191 Mar 5,754 28 4,331 100 1,423 63 3,129 2,754 375 [,175 Apr 5,978 27 4,526 99 1,452 33 3,239 2,889 350 1,201 May.... 6,229 24 4,737 75 1,492 33 3,655 3,150 505 ,166 June.... 6,420 32 4,898 104 1,522 44 3,909 3,333 576 ,152 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

976 OPEN MARKET PAPER; SAVINGS INSTITUTIONS JULY 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 Banks Im- Ex- shipped between Total th P r la o c u e g d h P di l r a e c c e t d - Others p i o n r to ts p fr o o r m ts Do ex ll - ar points in— dealers i ly2 Total O bi w ll n s bo B u il g ls ht O ac w ct n . F ei o g r n - U S n ta i t t e e s d U S n ta it te e s d change United Foreign corr. States countries 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 1960 4,497 1,358 3,139 2,027 662 490 173 74 230 ,060 403 669 122 308 524 1961 4,686 1,711 2,975 2,683 1,272 896 376 51 126 ,234 485 969 117 293 819 1962—May. 5,919 1,869 4,050 2,345 949 733 216 33 112 ,251 462 787 96 145 855 June...... 5,865 1,878 3,987 2,342 965 731 234 60 85 ,232 473 751 145 117 857 July 6,170 2,002 4,168 2,306 1,009 736 273 43 80 ,175 485 705 143 93 881 Aug.. * 6,576 2,119 4,457 2,277 937 721 216 35 71 ,234 488 667 138 72 912 Sept. 6,577 2,228 4,349 2,281 952 748 204 36 68 ,225 520 674 144 73 870 Oct .... 6,986 2,417 4,569 2,367 1,025 824 201 34 69 ,239 502 679 160 110 917 Nov .. 7,091 2,501 4,590 2,476 1,086 841 245 38 88 ,264 525 719 173 145 914 Dec 6,000 2,088 3,912 2,650 1,153 865 288 110 86 ,301 541 778 186 171 974 1963—Jan.. 6,790 2,091 4,699 2,593 1,153 849 304 72 84 ,284 538 730 149 180 996 Feb 6,996 2,193 4,803 2,565 1,141 840 301 54 84 ,285 542 703 159 148 1,013 Mar 7,076 2,260 4,816 2,589 1,167 886 280 52 83 ,288 554 730 142 122 1,041 Apr.. 7,359 2,204 5,155 2,658 1,251 977 274 44 83 ,280 523 750 146 108 1,130 May....... 7,486 2,084 5,402 2,696 1,148 923 225 42 83 ,422 525 808 149 72 1,142 1 As reported by dealers; includes finance co. paper as well as other 3Beginning 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— End of period M ga o g r e t- Other G U o .S v . t. S l a o t n c a d a te l Co r a a n r t p d e o- a C s a se sh ts O as t s h e e ts r s l T u ia a t r o i b n p e t i d l a s l u i l - s D i e t p s o 2 s- l O ia t t i b h e i s e li r - S c u o a r u c p n - lu ts s c M om or m tg i a t g m e e n lo ts a n 3 govt. other * accts. Number Amount 1941 4,787 89 3,592 1,786 829 689 11,772 10,503 38 1,231 1945 4,202 62 10,650 1,257 606 185 16,962 15,332 48 1,582 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 19594 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 1962..... 32,056 602 6,107 ' 527 5,177 956 695 46,121 41,336 828 3,957 114,985 2,548 1962—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 Dec. 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 114,985 2,548 1963—Jan.. 32,492 575 6,146 512 5,173 819 735 46,451 41,565 932 3,955 101,815 2,345 Feb.. 32,812 583 6,177 501 5,162 870 722 46,826 41,780 1,052 3,993 108,060 2,398 Mar. 33,125 611 '6,437 475 5,153 891 743 r47,436 '42,306 '1,106 4,023 103,534 2,379 Apr., 33,452 568 6.195 470 5,081 830 728 47,325 42.318 1.034 3,973 107,672 2,409 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. 963. are based on reports filed with U.S. Goyt. 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

JULY 1963 SAVINGS INSTITUTIONS 977 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort- Real Policy Other End of period assets Total U S n ta i t t e e s d Sta lo te c a a l ndForeign * Total Bonds Stocks gages estate loans assets 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 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 195S 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 I960 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 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 Book value: I960—Dec 119,576 11,699 6,428 3,606 1,665 51,053 46,967 4,086 41,815 3,796 5,233 5,980 1961—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—Apr.r ... 128 808 12,360 6,398 4 036 I 926 54,976 50,034 4,942 44,775 4,056 5,895 6,746 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 6,412 130,596 12,459 6,385 4,090 1.984 55,927 50,908 5,019 45,576 4,106 6,079 6,449 Sent 131,069 12,451 6,337 4,104 i,o\o 56,165 51,099 5,066 45,758 4,110 6,114 6,471 Oct 131,735 12,609 6,368 4,080 56,359 51,246 5,113 46,051 4,124 6,151 6,441 Nov 132,505 12,720 6,405 4,062 22,,126513 56,509 51,352 5,157 46,380 4,134 6,185 6,577 Dec 133,169 12,510 6,189 4,060 2,261 56,555 51,374 5,181 46,980 4,124 6,214 6,786 1963—Jan 134,011 12,852 6,312 4,088 2,452 56,829 51,592 5,237 47,203 4,154 6,245 6,728 Feb 134,500 12,877 6,243 4,080 2,554 57,059 51,784 5,275 47,348 4,171 6,279 6,766 Mar 134,977 12,687 6,032 4,063 2,592 57,381 52,038 5,343 47,618 4,179 6,320 6,792 Apr 135,610 12,660 6,013 4,036 2,611 57,664 52,289 5,375 47,910 4,200 6,364 6,812 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item, separately, but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E pe n r d i o o d f M ga o g r e t s - s G e U c o . u S v r . t i . - Cash Other i a li s a T s b e o i t l t s i a t 2 i l — es S c a a v p i i n ta g l s u R n e d a s i e n v r d i v d e e s d B m or o r n o e w y e 3 d L p o r a o n ce s s i s n Other co m l m o e a m n n t i s tties profits 1941 4,578 107 344 775 6,049 4,682 475 256 16 1945 5,376 2,420 450 356 8,747 7,365 644 336 402 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 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 78,973 5,549 3,946 5,348 93,816 80,422 6,539 3,633 2,010 1,212 2,230 1962—Apr 71,608 5,482 3,109 4,884 85,083 73,274 5,737 2,422 1,792 1,858 2,474 May 72,585 5,468 3,116 5,297 86,466 74,056 5,741 2,520 1,910 2,239 2,616 June 73,631 5,402 3,381 5,237 87,651 75,487 6,025 2,885 1,983 1,271 2,557 July 74,511 5,448 2,987 5,054 88,000 75,501 6,029 2,972 2,010 1,488 2,551 Aug 75,527 5,437 2,949 5,158 89,071 76,149 6,032 3,065 1,998 1,827 2,518 Sept 76,371 5,479 3,036 5,236 90,122 77,019 6,047 3,160 2,006 1,890 2,472 Oct 77,333 5,509 3,135 5,276 91,253 77,854 6,067 3,196 1,993 2,143 2,438 Nov 78,137 5,556 3,234 5,448 92,375 78,728 6,081 3,173 1,941 2,452 2,436 Dec 78,973 5,549 3,946 5,348 93,816 80,422 6,539 3,633 2,010 1,212 2,230 1963—Jan 79,648 5,739 3,612 5,234 94,233 81,407 6,572 2,896 1,939 1,419 2,343 Feb 80,341 5,910 3,719 5,283 95,253 82,251 6,588 2,701 1,964 1,749 2,447 Mar 81,247 6,087 3,809 5,399 96,542 83,446 6,583 2,605 2,108 1,800 2,663 Apr 82,311 6,122 3,670 5,488 97,591 83,924 6,595 2,728 2,265 2,079 2,845 1 Includes other loans, stock in the Federal home loans banks, other 3 Consists of advances from FHLB and other borrowing. investments, real estate owned and sold on contract, and office buildings and fixtures. NOTE.—Federal Sayings and Loan Insurance Corp. data; figures are 2 Before 1958 mortgages are net of mortgage pledged shares. Asset estimates for all savings and loan assns. in the United States. Data Hems wfll 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 Jan. 1958, no annual reports of noninsured assns. Data before 1954 are based entirely 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

978 FEDERAL FINANCE JULY 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 Pwiod Net Bu n d e g t et f T P u l r n u u d s s : s t g I L n o e t v s r s t a : .1 - E r T q e u o ct t a s a l . s l 2 : Budget T f P u l r n u u d s s : s t A m L d e e j s n u s t s : s t - ^ E p T q a u o y t a t a l s s l . * p r a e o c y r t t s s . . C & (d d h i a i e a r n g b n e e t c g n t e .) a I t L g n r e e v u n s e s s . s t : s t & . L N c d e a o e s s b n s h - : t Eq N u e a t ls: 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 1960 77,763 20,534 3,167 95,078 76,539 20,891 3,129 94,301 111 3,371 953 597 1,821 1961 77,659 23,583 3,946 97,242 81,515 23,016 5,003 99,528 -2,286 2,102 870 536 698 1962 81,409 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: 1962—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 2,082 46 10,577 -249 4,266 1,511 411 2,344 Sept 10,053 1,622 532 11,140 7,327 2,362 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 10,149 -5,998 2,974 -353 121 3,206 Nov 7,027 2,531 265 9,289 8,070 2,047 95 10,021 -732 3,258 449 •1,548 1,262 Dec 8,360 1,684 491 9,548 7,572 1,811 -53 9,436 112 -1,984 -936 *-l,337 289 1963—Jan 5,533 994 238 6,285 8,013 2,477 1,660 8,830 -2,544 -372 -1.007 61 575 Feb 7,305 3,365 315 10,352 6,763 2,492 478 8,776 1,576 1,010 522 33 455 Mar 9,663 2,128 239 11,548 7,806 2,232 1,041 8,997 2,552 -1,949 49 —4 -1,996 Apr 5,735 1,757 238 7,251 7,590 2,035 -104 9,728 -2,476 104 -884 8 901 May 6,953 4,662 286 11,327 7,470 2,015 -507 9,991 1,336 2,282 2,822 28 -568 Effects of operations on Treasurer's account Net operating transactions Net financing transactions ca C sh h a b n a g la e n i c n es Tre ( a e s n u d re o r f 's p a e c r c i o o u d n ) t 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 ss s u a e o c r a f . k n 5 e c t e i I G n n se U v o c e v . . s S t 5 t . . . 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 o e er a u ' s n s - t Balance b F a . n R k . s a l T a c o n c a a t d x n s. O as n t s h e e t e t r s Fiscal year—1959.. -12.427 -1,511 -29 71 1,112 8,363 -23 -4,399 5,350 535 3,744 1,071 I960.. 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: 1962—May.. -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 -1.852 3 -382 43,323 -57 591 7,109 585 5,728 796 Dec.. 788 -127 1,080 -42 626 4-1,920 6 400 7,509 597 6,092 820 1963—Jan.., -2,480 -1,483 692 -39 1,396 -53 57 -2,024 5,485 821 3,678 9S6 Feb.. 542 873 -133 -17 -452 1,221 73 1,961 7,446 841 5,580 1,025 Mar.. 1,857 -104 619 -209 43 -1,645 -245 806 8,252 909 6,466 877 Apr- -1,854 -277 -160 -70 616 173 100 -1,672 6,579 952 4,340 1,287 May. -516 2,647 -529 -44 -2,827 2,038 -208 978 7,558 651 5,992 915 * Primarily interest payments by Treasury to trust accounts and accumu- 4 Includes $1,412 million of 2% per cent Treasury bonds of 1960-65 lations to U.S. employees trust funds. acquired by Treasury for retirement on Dec. 15, 1962, in exchange for 2 Includes small adjustments not shown separately. various issues on Nov. 15, 1962. ' Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing 5 Excludes net transactions of Govt. sponsored enterprises. accounts, and (4) Govt. sponsored enterprises. * Primarily military defense, military assistance, and atomic energy. NOTE.—Treasury Dept. & Bureau of the Budget. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 FEDERAL FINANCE 979 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Selected excise taxes Budget receipts (IRS data) Period Transfers to trusts Indiv. taxes Corpo- Ex- Em- Other Mfrs. Net 2. O ag ld e - H w ig ay h- R t r i . r e e - R . . fu R n e d - s Total W he i l t d h- Other r t a a t x io es n ta ci x s e e s p m ta l x o en e y s t - ce r i e p - ts Liquor b T ac o c - o a ta n i d l e r 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 I960.. 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 6,266 103,818 "3'6,246 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 1,805 1,040 2,876 Month: 1962—May. . 7,024 2,181 264 82 1,101 10,658 5,287 955 469 ,157 2,266 524 305 169 June 11,615 1,001 233 51 233 13,346 3,024 1,985 5,377 ,126 1,054 780 311 192 July 3,566 436 281 12 165 4,540 1,199 299 525 ,106 450 961 257 148 Aug. 7,089 1,699 332 86 193 9,445 5,298 169 431 ,188 1,786 573 289 197 1,509 Sept 10,053 911 287 50 111 11,414 2,980 2,092 3,533 ,103 962 744 290 171 Oct 3,030 536 276 14 200 4,068 1,156 235 460 ,150 551 516 363 190 Nov 7,027 1,129 218 77 73 8,533 5,195 117 412 ,125 1,208 478 339 182 •1,367 Dec 8,360 600 277 51 64 9,553 3,131 407 3,450 ,136 652 780 267 152 1963—Jan.... 5,533 178 261 12 109 6,285 1,269 2,367 517 ,099 429 605 243 166 Feb...... 7,305 1,761 234 78 838 10,997 5,422 783 422 ,038 2,596 736 216 163 1,655 Mar 9,663 1,308 279 48 1,720 13,093 3,182 745 6,081 ,081 1,428 576 278 160 Apr 5,735 920 258 13 1,603 8,544 973 4,371 551 ,022 940 686 270 176 May 6,953 2,579 308 1,204 11,132 5,642 651 443 ,192 2,664 540 Budget expenditures Period Total 2 f t e i N o d n e n a s - - a e l 6 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 ra a o e n n r m d s c p e - . & H d e i o c n v o u g e m s l - . . l H w ab e e l o a 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 1960.. 76,539 45,691 1,832 401 4,882 1,714 1,963 122 3,690 866 5,266 9,266 1,542 1961.. 81,515 47,494 2,500 744 5,173 2,006 2,573 320 4,244 943 5,414 9,050 1,709 1962.. 87,787 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 j 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 i 1962—Jan.-June. 44,622 27,123 1,183 I 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: 1962—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 ,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 S 4,566 327 187 531 219 212 72 470 79 443 814 156 Dec 7,572 I 4,344 57 187 721 175 215 121 409 445 843 158 1963—Jan 8,013 I 4,548 251 233 510 184 224 3 483 150 486 863 170 Feb...... 6,763 ! 4,102 208 194 253 156 310 I -125 150 125 445 820 149 Mar 7,806 4,523 210 250 473 143 212 116 379 110 405 832 157 Apr 7,589 4,522 299 271 397 157 220 -157 443 93 367 828 156 May 7,470 i 4,491 70 281 425 181 247 -169 392 93 435 830 200 1961 1962 1963 1961 Item II III IV II III IV II III IV I I Seasonally adjusted Not seasonally adjusted Cash budget: Receipts 24.5 24.6 25.2 25.3 26.5 27.3 27.1 27.4 28.5 23.4 21.3 26.2 31.0 26.0 23.0 28.2 Payments. . . 26.7 26.3 26.9 27.6 27.0 28.1 29.2 28.3 27.4 26.7 27.2 26.0 27.9 28.5 29.6 26.6 Net. . -2.1 -1.7 -1.7 -2.2 -.5 -.7 _2 1 1.1 -3.3 ^.9 .3 3.1 — 2.5 -6.6 1.6 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 U.S. GOVERNMENT SECURITIES JULY 1963 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total T gr o o t s a s l Marketable Nonmarketable Special End of period d g e r b o t s s i d d e ir b e t c 2 t Total C ve o r n t- - issues 6 ible Sav- Total Bills C c e a r t t e if s i- Notes Bonds 4 bonds Total 5 b i o n n g d s s 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—June 298 6 298 2 249 5 196 1 42 0 13.5 65.5 75.0 4.3 49.2 47.6 44.9 July 298.3 297.9 250.1 196.9 42.8 13.5 65.5 75.0 4.3 49.0 47.7 43.8 Aug 302.3 301.8 252.5 199.3 43.6 20.4 58.1 77.2 4.2 49.0 47.7 45.4 Sept 300.0 299.5 251.0 197.9 42.2 17.8 58.1 79.8 4.1 48.9 47.7 44.6 Oct 302.6 302.1 254.3 201.3 46.1 17.9 57.6 79.7 4.0 48.9 47.7 43.9 Nov. 7 305.9 305.4 257.2 204.2 47.8 22.7 53.7 80.0 4.0 49.0 47.7 44.2 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 Feb 305.2 304.6 258.1 204.8 49.9 23.7 50.0 81.1 3.9 49.4 47.9 42.5 Mar 303.5 303.0 256.8 203.5 48.5 21.8 53.4 79.8 3.7 49.6 48.0 42.2 Apr 303.7 303.2 257.6 204.3 49.4 21.8 53.0 80.1 3.5 49.7 48.1 41.6 May 305.8 305.2 257.6 204.1 49.7 22.2 52.1 80.1 3.5 50.0 48.2 43.6 June 306.5 305.9 257.2 203.5 47.2 22.2 52.1 82.0 3.5 50.2 48.3 44.8 1 Includes some debt not subject to statutory debt limitation (amounting leave bonds, adjusted service bonds, Foreign currency series, Foreign to $368 million on June 30, 1963), and fully guaranteed securities, not series, 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 $13,532 million on May 31, 1963. 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 t U e a r o u n n .S v c s d . t i t e . s b F a . n R k . s Total m C b e a o r n m c k ia - s 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 p o e o n 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 th s er n F a i o t n a i r t o n e e n d i r g a - n l2 i O m t n o v t i r h s e s e c s 3 r . funds 1 bonds securities 1941—Dec 64.3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945—Dec 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947_Dec 257.0 34.4 22.6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 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 '20.1 18.7 45.7 '19.1 13.0 11.2 1961—Dec 296.5 54.5 28.9 213.1 67.2 6.1 11.4 19.7 18.7 46.4 '18.5 13.4 11.6 1962—May 299.6 55.9 29.6 214.1 65.2 6.3 11.5 '21.1 19.7 46.6 '18.3 13.5 11.8 298.6 56.5 29.7 212.5 65.0 6.3 11.3 19.6 19.7 46.6 '18.3 14.1 11.6 July 298.3 55.5 29.8 213.0 64.5 6.3 11.5 '20.0 19.9 46.7 '18.6 14.2 11.3 302.3 57.1 30.4 214.9 64.5 6.3 11.5 '21.1 19.9 46.8 '18.7 14.6 11.5 Sept 300.0 56.4 29.8 213.7 64.6 6.3 11.4 '19.0 19.8 46.8 '18.9 15.1 11.9 Oct 302.6 56.1 30.2 216.3 65.9 6.1 11.5 '19.9 19.6 46.8 '18.8 15.4 12.3 Nov 305.9 57.9 30.5 217.5 65.4 6.1 11.5 '21.8 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 '20.0 19.5 46.9 '19.0 15.3 12.7 1963—Jan 303.9 54.5 30.3 219.1 66.0 6.1 11.5 '21.0 19.9 47.1 '19.4 15.3 12.9 Feb 305.2 55.1 30.6 219.5 65.1 6.1 11.4 '21.6 19.9 47.2 '19.4 15.2 13.8 Mar 303.5 55.1 31.0 217.4 63.9 6.3 11.2 '20.7 20.1 47.3 '19.9 15.3 12.8 Apr 303.7 54.3 31.2 218.2 64.2 6.1 11.1 '20.9 20.6 47.3 '19.3 15.6 13.1 May 305.8 57.1 31.3 217.4 63.0 6.1 11.0 21.9 20.6 47.4 19.0 15.9 12.5 1 Includes the Postal Savings System. 3 Includes savings and loan assns., dealers and brokers, nonprofit 2 Includes investments of foreign balances and international accounts institutions, and corporate pension funds. in the United States. NOTE.—Reported data for F.R. Banks and U.S. Govt. agencies and trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 U.S. GOVERNMENT SECURITIES 981 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 yeair Type of holder and date Tea, 1-5 5-10 10-20 Over years years years 20 years Total Bills Other ADkolders: 1960—Dec. 31 189,015 73,830 39,446 34,384 72,298 18,684 13,224 10,979 1961—Dec. 31 195,965 84,428 43,444 40,984 66,360 19,782 11,976 13,419 1962—Dec. 31 203,011 87,284 48,250 39,034 61,640 33,983 4,565 15,539 1963—Apr. 30 204,323 82,469 49,430 33,039 61,079 37,952 6,770 16,054 May 31 204,101 87,797 49,733 38,064 58,007 35,485 6,769 16,043 U.S. Govt. agencies and trust funds: 1960—Dec. 31 8,116 1,482 591 891 2.431 1.602 1,461 1,140 1961—Dec. 31 8 484 1,252 583 669 1,860 1,594 1,756 2,022 1962—Dec. 31 9 638 1.591 865 726 1,425 2.731 1309 2,583 1963—Apr. 30 10,263 1,702 1,050 652 1,173 2,949 1,809 2,630 May 31 11,082 1,912 1,195 717 1,594 2,981 1,896 2,699 Federal Reserve Banks: 1960— Dec. 31 27,384 15,223 3,217 12.006 10,711 1,179 243 28 1961—Dec. 31 28,881 17.650 3,349 14,301 8,737 2,227 204 63 1962—Dec. 31 30,820 17,741 2,723 15,018 10.834 2,094 68 83 1963—Apr. 30 31,182 17,846 2,664 15,182 10,988 2,183 69 96 May 31 31,254 20,836 2,721 18,115 8,233 2,020 69 96 Held by public: 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—Dec. 31 162,553 67.^/52 44,662 23,290 49,381 29,158 3,1*8 12.873 1963—Apr. 30 162,878 62,921 45,718 17,203 48,918 32,820 4,892 13,328 May 31 161,765 65,049 45,817 19,232 48,180 30,484 4,804 13,248 Commercial banks: 1960—Dec. 31 54,260 14,697 6,976 7,721 31,596 5,654 1,775 538 1961—Dec. 31 59.073 21.149 9,962 11,187 30,751 5,043 1,724 407 1962—Dec. 31 58,004 19,885 9.838 10,047 26 348 11,163 191 417 1963—Apr. 30 56,098 15,593 8,481 7,112 25,920 13,414 631 540 May 31 55,013 15,863 7,954 7,909 25,696 12,466 546 442 Mutual savings banks: 1960—Dec. 31 5,944 480 144 336 1,544 1,849 897 1,174 1961—Dec. 31 5,867 686 181 505 1 514 1,708 662 1,2f8 1962—Dec. 31 5,793 635 252 383 1,337 2,210 306 1,305 1963-Apr. 30 5,865 679 384 295 1,305 2,202 394 1,285 May 31 5,844 797 397 400 1,282 2,085 399 1,281 Insurance companies: 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—Dec. 31 9 265 1,259 552 707 2 175 2,223 718 2,890 1963—Apr. 30 9,232 920 515 405 2,208 2,371 811 2,921 May 31 9,126 1,044 473 571 2,080 2,270 813 2,919 NonfinanciaJ corporations: 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—Dec. 31 10,750 9,063 6 551 2,512 1.524 149 5 9 1963-Apr. 30 10,986 8,659 7,175 1,484 1,922 382 9 14 May 31 12,051 9,738 8,178 1,560 1,923 370 9 10 Savings and loan associations: 1960—Dec. 31 2,454 322 163 159 858 473 396 4C6 1961-Dec. 31 2,760 446 155 291 895 617 371 431 1962—Dec. 31.. 2,862 437 254 183 817 1 030 105 473 1963—Apr. 30 3,188 396 241 155 769 1,285 259 480 May 31 3,158 389 236 153 833 1,199 254 483 State and local governments: 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—Dec. 31 11 716 4 447 3.282 1.165 1 059 1.505 688 4.017 1963—Apr. 30 12,510 4,983 4,119 864 1,046 1,423 987 4,070 May 31 12,470 5,062 4,184 878 1,012 1,305 998 4,093 All others: I960—Dec. 31 60,158 28,413 19.772 8.641 18,596 4,%5 5,598 2,587 1961—Dec. 31 60 440 29,346 20,596 8 750 17.314 6.054 4,713 3,012 1962—Dec. 31 64 162 32,227 23 935 8,292 16 121 10 877 1.175 3.761 1963—Apr. 30 65,000 31,691 24,802 6,889 15,748 11,743 1,800 4,017 May 31 64,102 32,155 24,396 7,759 15,354 10,789 1,784 4,019 NOTE.—Direct public issues only. Based on Treasury Survey of cos. combined; (2) about 50 per cent by the 472 nonfinancial corps, and Ownership. 488 savings and loan assns.; and (3) about 60 per cent by 480 State and Data complete for U.S. Govt. agencies and trust funds and F.R. Banks local govts. but for other groups are based on Treasury Survey data. Of total mar- Holdings of "all others," a residual throughout, include holdings of ketable issues held by groups, the proportion held on latest date and the all those not reporting in the Treasury Survey, including investor groups number of reporting owners surveyed were: (1) about 90 per cent by the not listed separately 6,125 commercial banks, 507 mutual savings banks, and 809 insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 U.S. GOVERNMENT SECURITIES JULY 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 Total Within 1-5 5-10 Over Com- All 1 year years years 10 years G U o .S v . t. Other m b e a r n c k ia s l other securities 1962—May 1,693 1,337 218 114 '25 564 35 661 433 90 June 1,681 1,357 191 99 33 553 29 652 447 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 40 744 501 115 Nov 1,770 1,266 262 210 32 550 32 722 466 70 Dec 2,071 1,446 366 222 38 610 38 881 543 88 1963—Jan 1,871 1,484 226 124 36 621 37 730 484 81 Feb 2,350 1,646 400 230 75 733 44 952 622 73 Mar 1,694 1,241 224 149 79 544 39 657 454 91 Apr 1,788 1,438 195 105 50 509 33 757 488 91 May 1,639 1,160 282 127 69 529 30 601 479 81 Week ending— 1963—May 1.... 2,249 1,671 350 157 71 603 48 904 695 98 8.... 1,738 1,199 311 134 94 578 31 632 499 136 15.... 1,506 1,087 256 103 59 488 37 608 373 40 22.... 1,489 1,092 203 130 65 439 25 585 439 94 29.... 1,679 1,134 326 146 73 590 27 558 504 61 June 5.... 1,678 1,335 196 110 37 520 39 515 604 172 12.... 1,489 1,110 167 181 31 489 22 536 442 85 19.... 1,463 1,043 173 220 26 455 30 564 414 84 26.... 1,455 1,131 153 136 36 391 17 593 454 98 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 Govt. Period mat A ur l i l ties W 1 i y th e i a n r y 1 e - a 5 rs 5 O y v e e a r rs se a c g u e r n i c ti 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 Co ti r o p n o s r i a- o A th l e l r 1962—May.. 3,641 2,985 403 255 196 June.. 3,777 3,398 261 118 293 1962—May 3,738 978 769 ,612 379 July... 2,881 2,818 94 -32 231 June 3,900 ,092 720 1,798 290 Aug... 2,648 2,484 72 91 165 July....... 3,053 636 521 ,631 266 Sept... 3,177 2,643 323 211 190 Aug 2,597 460 405 ,438 294 Oct.... 3,569 2,991 383 195 248 Sept.., 3,332 943 660 1,308 421 Nov... 4,013 3,309 447 256 204 Oct 3,528 1,074 707 1,301 445 Dec... 4,268 3,829 365 74 227 Nov 4,100 ,170 716 1,666 548 Dec 4,378 ,563 839 1,566 411 1963—Jan....... 4,021 3,622 368 30 185 Feb 3,410 2,863 473 74 128 1963—Jan 4,062 ,388 895 1,396 383 Mar 3,547 2,439 563 543 212 Feb 3,553 1,070 897 1,083 502 Apr.... 3,467 2,934 355 178 228 Mar....... 4,027 1,436 1,009 1,129 453 May 3,494 2,810 640 44 305 Apr 3,548 886 854 1,366 442 May 3, 64 936 888 ,536 403 Week ending— Week ending— 1963—Apr. 3.. 3,164 2,445 379 340 231 10.. 2,983 2,327 403 254 228 1963—Apr. 3... 3,430 906 823 1,286 416 17.. 3,694 3,207 359 128 200 10... 3,068 697 654 1,201 516 24.. 3,415 3,014 311 90 204 17... 3,593 995 820 1,316 462 24... 3,437 724 826 1,553 334 May 1. . 4,125 3,539 450 137 269 8.. 3,575 2,590 864 121 344 May 1... 4,188 1,193 1,057 1,462 477 15.. 3,513 2,704 738 71 307 8. . . 3,828 981 995 1,351 501 22.. 3,659 3,031 595 34 283 15... 3,726 995 865 1,424 442 29.. 3,211 2,872 383 -44 294 22... 3,998 1,087 980 1,599 332 29. .. 3,570 731 771 1,744 325 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the i All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days gecurities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than note to the opposite table on this page. dealer trading positions. Averages of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 OUTSTANDING SECURITIES 983 U. S. GOVERNMENT MARKETABLE AND CONVERTIBLE, JUNE 30, 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. July 5, 1963 2,101 Dec. 19, 1963 801 Feb. 15, 1966 3% 5,653 Dec. 15, 1967-72... 2 Vi 2,777 July 11, 1963 2,102 Dec. 26, 1963 799 Apr. 1,1966 P/i 675 May 15, 1968 3% 2,460 J J u u l l y y 1 1 8 5 , , 1 1 9 9 6 6 3 3 2 2 , , 0 1 0 0 4 1 J A a p n r . . 1 15 5 , , 1 1 9 9 6 6 4 4 2 2 , , 4 5 9 0 6 1 O A c u t g . . 1 1 5, , 1 1 9 9 6 6 6 6 IV2 4 4,4 35 5 7 4 A Fe u b g . . 1 1 5 5 , , 1 1 9 9 6 6 9 8 3V 4 4 3 1 , ,8 7 4 4 4 7 July 25, 1963 2,101 Feb. 15, 1967 3% 4,287 Oct. 1,1969 4 2,538 S A A A A A e u u u u u p g g g g g . . . . . t . 2 2 1 8 5 9 2 1 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 3 3 3 3 3 3..... 2 2 2 2 2 2 , , , , , , 1 1 1 1 1 1 0 0 0 0 0 0 3 2 2 2 3 0 Ce A N F M rt e i u o a f b g v i y c . . . a t 1 1 1 1 e 5 5 5 5 s , , , , 1 1 1 1 9 9 9 9 6 6 6 6 3 3 4 4 3 3 3 3 V * H # 4 4 4 6 5 5 , , , , 7 1 5 6 4 8 5 9 1 1 4 3 Tre O A A A a c u p p s t u g r r . . . r . y 1 1 1 1 5 5 b , , , , o 1 1 1 n 1 9 9 9 d 9 6 6 6 6 s 8 7 7 7 3 I l \ V i V Y / 2 2 i 4 5, 2 4 2 4 7 5 8 4 0 7 2 A A N A N Fe u u u o o b g g g v v . . . . . . 1 1 1 1 1 1 5 5 5 5 5 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 2 2 1 0 1 4 3 3 7 % / 4 4 4 4 g 2 2 2 2 2 1 , , , , , , 5 2 8 3 7 9 7 4 0 0 4 6 9 4 6 6 4 0 S S e ep p t t . . 1 19 2 , , 1 19 9 6 6 3 3.... 2 2, , 1 1 0 0 2 1 Treasury notes J A u u n g e . 1 1 5 5 , , 1 19 9 6 6 3 2 -67... 2 i 1 y /2 i 1 1 , , 4 46 6 1 1 J M un ay e 1 1 5 5 , , 1 1 9 9 7 7 8 5 - - 8 8 3 5 . . . . . . 4 3 V VA 4 1,5 4 9 7 0 0 Sept. 26, 1963 2,102 Oct. 1,1963 \Yi 506 Dec. 15, 1963-68... 2V2 1,815 Feb. 15, 1980 4 2,611 Oct. 3,1963 800 Nov. 15, 1963 4% 3,011 Feb. 15,1964 3 1,634 Nov. 15, 1980 3^ 1,915 Oct. 10,1963 801 Apr. 1,1964 \Vi 457 June 15, 1964-69... 2,631 May 15, 1985 3*4 1,130 O O c c t t . . 1 1 7 5 , , 1 1 9 9 6 6 3 3 2,5 8 0 0 0 0 M Ma a y y 1 1 5 5 , , 1 1 9 9 6 6 4 4 4 3 * % /4 4 3 , , 9 8 3 9 3 3 D Fe e b c . . 1 15 5 , , 1 1 9 9 6 6 5 4 -69... X 2- 4 2 , , 6 5 8 4 2 3 A Fe u b g . . 1 1 5 5 , , 1 19 9 9 8 0 7 -92... 4 3 1 f 4 t 4,9 3 1 6 3 5 Oct. 24,1963 801 Aug. 15, 1964 5 2,316 Mar. 15, 1965-70... X 2,420 Feb. 15, 1988-43 4 250 O N c o t v . . 3 7 1, , 1 1 9 9 6 6 3 3 8 8 0 0 1 2 O Au c g t . . 1 1 5 , , 1 1 9 9 6 64 4 3 \ V V 4 i 5, 4 01 9 9 0 A M u a g y . 1 1 5 5 , , 1 1 9 9 6 6 6 6 3 1 , ,0 5 2 9 4 7 F M eb a . y 1 1 5 5 , , 1 1 9 9 9 8 5 9 -94... 4y 3 8 2,9 3 5 0 9 0 N N o o v v . . 2 1 1 4 , ,1 1 9 9 6 6 3 3 8 8 0 0 1 0 N A o p v r. . 1 1 5 , , 1 19 9 6 6 4 5 4 l 7 i/ / z 8 4,1 4 9 6 5 6 N M o a v r. . 1 1 5 5 , , 1 1 9 9 6 6 6 6 -71...2 3 V H i 1 1 , , 4 8 0 5 9 2 Nov. 15, 1998 3i/2 4.457 D N e o c v . . 2 5 9 , , 1 1 9 9 6 6 3 3 8 8 0 0 0 1 O M c a t y . 1 1 5 , , 1 1 9 9 6 6 5 5 1 4 % y8 2,1 3 1 1 3 5 J S u e n p e t. 1 1 5 5 , , 1 1 9 96 6 7 7 - - 7 7 2 2 . . . . . . 2 2 V V 2 i 1 1 , , 3 95 1 2 5 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 Dec. 12, 1963 801 Nov. 15, 1965 31/2 2,954 Nov. 15, 1967 3% 3,604 Apr. 1, 1975-80... 2% 3,476 NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. FEDERALLY SPONSORED AGENCIES MAY 31, 1963 Amount Amount Agency, type and date of issue, (millions Agency, type and date of issue, Maturity (millions and coupon rate of dollars) and coupon rate of dollars) Federal home loan banks Federal intermediate credit banks Notes: Debentures: Sept. 17, 1962 3.30 Aug. 15, 1963 110 Sept, 4, 1962 3.35 June 3, 1963 145 Oct. 15, 1962 3.30 Sept. 16, 1963 450 Oct. 1,1962. 3.20 July 1, 1963 167 Mar. 15, 1963 3.20 Jan. 15, 1964 320 Nov. 1,1962 3.10 Aug. 1, 1963 197 A A p p r r . . 1 15 5 , , 1 1 9 96 6 3 3 3 3 . V 30 4 A Fe p b r . . 1 1 7 5 , , 1 1 9 9 6 6 4 4 4 2 3 6 5 5 D Ja e n c. . 2 3 , , 1 1 9 9 6 6 3 2 3 3 . . 1 1 5 5 O Se c p t t . . 3 1 , , 1 1 9 9 6 6 3 3 2 24 0 7 2 Feb. 4,1963 3.15 Nov. 4, 1963 276 Bonds : Mar. 4, 1963 3.15 Dec. 2, 1963 272 Apr. 16, 1962 3*4 July 16, 1963 280 Apr. 1,1963 3.20 Jan. 2, 1964 263 Sept. 17, 1962 3Y4 Sept. 15, 1965 175 May 1, 1963 3*4 Feb. 3, 1964 269 Federal land banks Bonds: Fede s r e a c l o N n a d t a i r o y n a m l a M rk o e r t t g o a p g e e r a A tio ss n o s ciation- Aug. 20, 1962 35/8 Aug. 20, 1963 144 Discount notes Oct. 22, 1962 314 Oct. 22, 1963 136 Apr. 20, 1963 4y2 Apr. 20, 1964 147 Dec. 20, 1960 4 Oct. 20, 1964 90 Debentures: Oct. 20, 1960 4 Oct. 20, 1965 160 Nov. 10, 1958 4Vs Nov.12,1963 97 June 20, 1961 4 Dec. 20, 1965 115 May 10, 1961 3% May 11,1964 93 Apr. 3,1961 ...3% Feb. 21, 1966 150 Sept. 11, 1961 4 Sept.10,1964 100 May 1,1958 3% May 2, 1966 108 Dec. 11, 1961 3% Dec. 11,1964 147 Sept. 20, 1961 414 July 20, 1966 193 D Se ec p . t . 1 1 0 0 , , 1 1 9 9 5 6 7 2 3 4 % y8 J M u a n r e . 1 1 0 0 , ,1 1 9 9 6 6 5 6 1 9 1 8 7 F M eb a . y 1 1 5, , 1 1 9 95 6 7 2 ... 4i/ 4 8 F M e a b y . 2 1 2 5 , , 1 1 9 9 6 6 7 7 -72 1 7 8 2 0 Dec. 12, 1960 4i/8 Dec. 12,1966 132 Oct. 1,1957 41/2 Oct. 1, 1967-70 75 Mar. 10, 1958 3y8 Mar. 11,1968 95 Apr. 1,1959 41/4 Mar. 20, 1968 86 Apr. 10, 1959 4% Apr. 10,1969 88 May 1,1963 4 June 20, 1968 186 S A A e u p p g r . t . . 2 1 1 3 2 1 , , , 1 1 1 9 9 9 6 6 6 0 0 0 4 4 4 1 1 % / / s s A A S p e u p r g t . . . 1 1 1 0 0 0 , , , 1 1 1 9 9 9 7 7 7 1 0 0 1 1 6 4 2 7 6 0 J F F u e e l b b y . . 1 2 1 5 , , , 1 1 1 9 9 9 5 6 5 9 0 7 4 5 4 V 3 5 / / 6 8 8 J M F u e a l b r y . . 2 2 1 0 0 5 , , , 1 1 1 9 9 9 6 7 6 9 0 9 1 6 8 0 0 2 0 Sept. 11, 1961 41/2 Sept.10,1971 98 Feb. 14, 1958 3% Apr. 1, 1970 83 D Fe e b c . . 1 11 0 , , 1 1 9 9 6 6 1 0 4 5 3 i / / g 8 J F u e n b e . 1 1 0 2 , , 1 1 9 9 7 7 2 2 1 1 0 0 0 0 J M an ay . 5 1 , , 1 19 9 6 5 0 6 .... 3 5 1 i / / 2 8 J M u a l y y 2 1 0 , , 1 1 9 9 7 7 1 0 6 8 0 5 June 12, 1961 4*4 June 12,1973 147 Sept. 14, 1956., ....3% Sept. 15, 1972 109 Feb. 13, 1962 4i/2 Feb. 10,1977 198 Feb. 20, 1963 4i/8 Feb. 20, 1973-78 148 Feb. 20, 1962 ... . ,4y2 Feb. 20, 1974 155 Banks for cooperatives Tennessee Valley Authority Debentures: Bonds: Dec. 3,1962 3.05 June 3,1963 160 Nov. 15, 1960 4.40 Nov. 15, 1985 50 Feb. 4,1963 3.15 Aug. 1,1963 169 July 1, 1961...... ....... ...45/s July 1, 1986 50 Apr. 1,1963 3.15 Oct. 1,1963 160 Feb. 1,1962 4i/2 Feb. 1, 1987 45 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also NOTE to table at top of following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 CREDIT AGENCIES; SECURITY ISSUES JULY 1963 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Asset F s ederal home loa L n i a b b a il n it k ie s s and capital (s F M e e c d o o o e n r p r t d e g a r a a l a r g N t y e i o a m A n ti s a s o ) r s n k n a e . l t coo B pe a fo r n a r k t s ives i c n r t e F e d r e i m d t e e b r d a a i n l a k te s F b e l a a d i i e -I i id k H ra s l period v m a b A t n e e d o m r c - s e - s I m nv e e n s t t s - p C a o d a n s e s i - d t h s B n a o o n n t d e d s s M p b o d e s e e m i - r ts - C s a to p c it k al M l g o ( a A a o g n r ) e t s - D n t e a u ( o b L n r t e e e d ) n s s - c L a o ( t o o t i A p a v o n e ) er s s - D t e u ( b L r e e ) n s - c L o a d ( o u A n i a s n d n ) - t s s D t e u ( b L r e e ) n s - M l g o ( a A a o g n r ) e t s - Bo (L n ) ds 1955 1,417 765 62 975 698 516 83 371 110 693 657 1,497 1,191 1956 1,228 1,027 62 963 683 607 628 200 457 143 747 705 1,744 1,437 1957 1,265 908 63 825 653 685 1,562 1,315 454 222 932 886 1,919 1,599 1958 1,298 999 75 714 819 769 1,323 1,100 510 252 ,157 1,116 2,089 1,743 1959 2,134 1,093 103 1,774 589 866 1,967 1,640 622 364 ,391 ,356 2,360 1,986 1960 1,981 1.233 90 1,266 938 989 2,788 2,523 649 407 ,501 1,454 2,564 2,210 1961 2,662 1,153 159 1,571 1,180 1.107 2,770 2,453 697 435 ,650 ,585 2,828 2,431 1962—May.. 2,429 1,407 60 1,564 1,107 1,114 2,817 2,566 694 441 1,923 1,781 2,948 2,550 June.. 2,767 1,335 114 1,797 1,192 1,116 2,774 2,557 692 430 1,998 1,855 2,968 2,550 July.. 2,860 1,384 67 2,108 976 1,117 2,743 2,435 704 430 !,047 1,926 2,986 2,550 Aug.. 2,948 1,420 58 2,233 954 1,118 2,750 2,458 680 482 X,049 1,952 3,003 2,596 Sept.. 3,046 1,363 75 2,257 984 1,118 2,752 2,481 690 475 J,007 1,930 3,021 2,596 Oct... 3,091 1,800 79 2,707 1,016 1,120 2,765 2,492 738 480 1,896 1,842 3,031 2,628 Nov.. 3,068 1,848 75 2,707 1,028 1,121 2,768 2,479 746 480 1,822 1,774 3,037 2,628 Dec... 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963—Jan... 2,802 1,876 87 2,348 1,155 1,128 2,708 2,370 111 505 1,858 1,729 3.069 2,628 Feb... 2,611 1,883 81 2,096 1,213 1,129 2,599 2,343 115 480 1,926 1,787 3,089 2,661 Mar.. 2,514 1,974 62 2,003 1,283 1,130 2,446 2,126 761 480 [.892 1,842 3,118 2,661 Apr... 2,635 1,702 87 1,908 1,250 1,133 2,285 2,043 745 491 2,108 1,935 3,147 2,661 May.. 2,740 1,720 75 2,035 1,236 1,134 2,126 1,984 702 489 2,210 2,037 3,176 2,725 NOTE.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the Mortgage Assn., and Farm Credit Admin. Among the omitted balance U.S. Govt.; for a listing of these securities, see preceding page. Loans sheet items are capital accounts of all agencies, except for stock of home are gross of valuation reserves and represent cost for FNMA and unpaid loan banks. Bonds, debentures, and notes are valued at par. They include principal for other agencies. only publicly offered securities (excluding, for the home loan banks, NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) Allissues (new capital and refunding) Issues for new capital Type of issue Type of issuer Use of proceeds Total Period amount Total g G a o e t b a n io l l e i n - r s - R n e u v e e- PHA i G U lo o a .S v n t . s . State S d a p i s a s u t e n t a t c r d h t i i . a c . t l Other2 d er el e i d v - 3 Total c E a d ti u o - n R br a o i n d a d d ge s s i U tie ti s l - * H in o g u s s - V a a e n t i s d e ' r- O p p o t u h s r e e - s r 1957 6,926 4,795 1,965 66 99 1.489 1,272 4,164 6,568 6,875 2,524 1,036 1,517 113 333 1,352 1958 7,526 5,447 1,778 187 115 1,993 1,371 4,162 7,708 7,441 2,617 1,164 1,412 251 339 1,657 1959 7,697 4,782 2,407 332 176 ,686 2,121 3,890 7,423 7,589 2,318 844 1,985 401 355 1,685 I960 7,292 4,771 2,095 302 125 1,110 1,984 4 198 7,102 7,247 2,405 1,007 1,316 426 201 1,891 1961 8,566 5,724 2,407 315 120 ,97,8 2,165 4,473 8,301 8,463 2,821 1,167 1,700 385 478 1,913 1962 8,845 5,582 2,681 437 145 1.419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1962—Apr ... 894 602 179 101 12 67 266 561 704 873 276 111 149 106 230 May... 940 670 258 12 206 229 505 897 912 348 31 234 58 242 June... 790 556 205 29 173 164 454 841 786 328 67 127 • 100 163 July... 650 404 237 9 34 179 437 839 612 190 62 146 213 Aug.... 563 251 200 106 6 62 184 317 639 544 127 33 151 106 126 Sept... 440 343 74 23 60 58 323 559 427 175 31 85 7 128 Oct.... 666 378 273 15 150 236 280 416 650 211 14 136 290 Nov.... 610 403 194 12 121 200 289 650 578 213 97 150 2 116 Dec.... 572 277 173 in 6 54 242 276 544 550 163 14 93 117 163 1963—Jan.... 978 532 425 21 41 251 686 657 732 310 99 182 2 138 Feb.... 824 431 373 20 100 336 387 844 722 238 114 83 91 196 Mar... 995 674 168 138 16 265 322 408 870 968 251 52 230 142 292 Apr.... r901 r685 r206 16 156 r175 »"576 rl,003 r846 r358 69 r219 '199 1 Only bonds sold pursuant to 1949 Housing Act; secured by contract 5 Includes urban redevelopment loans. requiring the Public Housing Administration to make annual contributions NOTE.—The figures in the first column differ from those shown on the to the local authority. following page, which are based on Bond Buyer data. The principal 2 Municipalities, counties, townships, school districts. difference is in the treatment of U.S. Govt. loans. 3 Excludes U.S. Govt. loans. Based on date of delivery to purchaser Investment Bankers Assn. data; par amounts of long-term issues. (and payment to issuer), which occurs after date of sale. Based on date of sale unless otherwise indicated. * Water, sewer, and other utilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 SECURITY ISSUES 985 TOTAL NEW 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 t e n i e s t s u p e r s o c 5 eeds, Noncorporate Corporate New capital Period Re- Bonds Stock tire- Total U.S. U.S. Total ment G U ov .S t. . 2 G ag o e v n t - . S a t n a d te Other * Total Pub- Pri- Total m N on ew ey6 O p t u h r e - r se o c f ucy 3 local Total licly vately Pre- Com- poses rities offered placed ferred mon 1955 26,772 9,628 746 5,977 182 10,240 7.470 4,119 3,301 635 2,185 10,049 R 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 76,958 557 12,884 9.957 6,118 3,839 411 2,516 P 661 12 447 11784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 9,653 6,332 3,320 571 1,334 11,V7? 10-823 9 907 915 549 1959 31,074 12,322 707 7,681 616 9,748 7,190 3,557 3,632 531 2,027 9,527 (),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 <),653 8 758 895 271 1961 35,494 12,253 1,448 8,345 302 13,147 Q..475 4,706 4,720 449 3,273 P 874 \I 979 10879 1,150 895 1962 29,975 8,590 1,188 8,558 869 10,770 9,016 4,487 4,529 436 1,318 10,572 i?,814 8 323 1,491 757 1962—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 1714 I 132 180 82 July.... 1,663 35S 641 34 630 565 200 366 32 32 621 582 504 78 39 Aug.... 4,056 2,408 150 559 17 922 840 477 363 24 58 907 749 620 129 159 Sept 1,568 300 175 426 34 632 472 176 295 51 110 618 579 441 138 39 Oct 2,150 359 646 169 976 853 539 314 49 74 961 835 727 108 126 Nov 1,821 327 595 115 784 73? 286 446 24 28 776 703 494 209 73 Dec 2,149 295 547 111 1,197 1,072 264 808 59 65 1,184 1,103 923 180 81 1963—Jan 2,708 774 999 240 695 593 350 243 30 71 684 613 563 50 72 Feb 2,166 425 148 810 141 642 548 259 289 17 77 631 594 448 146 37 Mar 2,830 396 989 82 1,363 1,273 499 774 17 74 1,349 1,144 1,056 88 205 Apr 2,944 716 186 915 61 1,067 848 380 468 28 191 1,052 915 807 109 137 Proposed uses 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 Public utility [Communication an R d 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- capital • secu- capital1 secu- capital8 securities rities rities rities rities rities 1955 2,397 533 769 51 544 ?,254 174 ,04^ 77 1,812 56 1956 3,336 243 682 51 694 ?0 ?,474 14 ,384 21 1,815 17 1957 4,104 49 579 29 802 14 3,821 51 ,441 4 1,701 67 1958 3,265 195 867 13 778 38 3,605 138 ,794 118 1,014 47 1959 1,941 70 812 28 942 15 3,189 15 707 • 1,801 6 I960 1,997 79 794 30 672 39 ?,754 51 036 1 2,401 71 1961 3,708 306 1,095 46 680 26 ?,892 104 ,477 378 2 176 36 1962 3,020 204 832 29 551 30 ?,357 445 ,781 10 1,773 39 1962 Apr 384 67 103 3 28 377 8fl * 134 1 May 270 5 100 1 38 198 16 64 91 3 June 342 14 90 4 48 • 410 56 7<5 163 7 July.... 217 31 28 24 118 4 8fl 4 107 Aue. 218 4 47 7 71 110 142 1?f) 2 183 3 Sept 166 21 56 54 148 14 67r 2 88 1 Oct 153 10 40 6 20 141 108 26C 222 2 Nov... 271 3 40 35 15 175 50 4 • 178 4 Dec 345 31 104 4 90 13 252 25 14 3 257 5 1963 Jan 135 5 49 2 99 114 65 12! 91 1 Feb 220 6 52 1 30 115 30 6£ 110 * Mar.... 592 31 85 5 143 97 61 41 3 183 105 Apr 155 7 69 13 37 363 65 i: 219 52 1 Gross proceeds are derived by multiplying principal amounts or • For plant and equipment and working capital. number of units by offering price. 7 Beginning with 1957 this figure differs from that shown on the previ- 2 Includes guaranteed issues. ous page because this one is based on Bond Buyer data. 3 Issues not guaranteed. 8 All issues other than those for retirement of securities. * 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

986 SECURITY ISSUES JULY 1963 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation o! change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire- Net New Retire- Net issues ments change issuet ments change I c n o v s e . s 1 t. Other I c n o v s e . s 1 t. Other I C n O ve S s .1 t. Other 1957 14,350 3,609 10,741 9,638 2,584 7,053 1,391 3,321 406 618 985 2,703 1958 14,761 5,296 9,465 9,673 3,817 5,856 2,018 3,070 515 964 1,503 2,106 1959 12,855 4,858 7,998 7,125 3,049 4,076 2,353 3,377 785 1,024 1,568 2,354 I960 13,084 5,033 8,051 8,072 3,078 4,994 2,288 2,724 869 1,086 1,419 1,638 1961 16,745 6,967 9,778 9,225 4,090 5,134 3,259 4,261 1,181 1,696 2,078 2,566 1962 13,490 6,249 7,241 8,593 3,566 5,028 2,788 2,109 1,123 1,561 1,665 548 1962—1 3,226 1,406 1,820 1,668 730 938 966 592 282 394 684 198 II 4,097 1,633 2,463 2,606 793 1,813 811 680 320 520 491 160 m 2,744 1,634 1,110 1,816 1,082 734 500 428 235 317 265 111 IV 3,423 1,576 1,848 2,503 960 1,543 511 409 286 330 225 79 1963—1 3,074 1,803 1,272 2,096 1,087 1,009 60S 370 348 367 260 3 Type of issuer Manu- Commercial Transpor- Public Communi- Real estate facturing and other 2 tation 3 utility cation and financial < Period & B o n n o d te s s Stock & B o n n o d te s s Stock & B o n n o d te s s Stock & B o n n o d te s s Stock & B o n n o d te s s Stock & B o n n o d te s s Stock 1957 1 779 1,391 169 24 289 2 585 815 1 236 198 995 1 259 1958 2,191 -61 417 9 413 -93 2,133 1,027 494 1,070 206 1,656 1959 316 425 217 158 335 2 1,738 1,028 475 443 994 1,866 I960 399 451 261 -91 173 -42 1,689 635 901 356 1,572 1,749 1961 1,938 318 505 -431 63 1 1,655 700 148 1,472 825 2,584 1962 1,479 -403 313 -173 -61 -34 1,301 487 1,178 363 819 1,972 1962—1 193 28 79 -122 -56 -1 201 51 434 82 86 844 II 605 -189 147 -25 -18 -9 698 233 191 85 191 558 m 291 -159 8 11 -27 -12 87 134 244 100 132 302 IV 390 -83 78 -35 40 -11 316 69 308 97 410 268 1963—1 , 391 -102 58 -18 100 -5 190 25 197 87 73 273 1 Opsn-end and closed-end cos. exclude foreign and include offerings of open-end investment cos., sales 2 Extractive and commercial and misc. cos. of securities held by affiliated cos. or RFC, special offerings to employees, 3 Railroad and other transportation cos, and also new stock issues and cash proceeds connected with conversions • Includes investment companies. o al f s o b o s n e d cu s r i i n ti t e o s s r t e o t c ir k e s d . R w e it t h ir e in m te e r n n ts a l i n fu cl n u d d s e o t r h e w s it a h m p e r t o y c p e e e s d s o f o f is s is u s e u s e , s a n fo d r NOTE.—Securities and Exchange Commission estimates of cash trans- that purpose shown on p. 985. actions only. As contrasted with data shown on p. 985, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales Re t d io e n m s p- s N a e le t s Total 1 po C si a t s io h n 2 Other Sales Re t d io e n m s p- s N al e e t s Total i po C si a ti s o h n 2 Other 1952 783 196 587 3,931 n.a. n.a. 1962—May.. 292 122 171 19,947 ,106 18,841 1953 672 239 433 4,146 n.a. n.a. June.. 219 107 112 18,436 ,019 17,417 1954 863 400 463 6,110 309 5,801 July... 207 74 133 19,384 ,205 18,179 Aug... 155 79 76 20,124 ,382 18,742 1955 1,207 443 765 7,838 438 7,400 Sept.. 134 83 51 19,088 ,334 17,754 1956 1,347 433 914 9,046 492 8,554 Oct... 157 92 65 19,215 298 17,917 1957 1,391 406 984 8,714 523 8,191 Nov.. 163 89 74 21,088 ,324 19,764 1958 1,620 511 1,109 13,242 634 12,608 Dec... 191 105 87 21,271 1,315 19,956 1959 2,280 786 1,494 15,818 860 14,958 1963—Jan... 235 116 118 22,447 1,336 21,111 1960 2,097 842 1,255 17,026 973 16,053 Feb... 166 115 51 22,015 1,401 20,614 1961 2,951 1,160 1,791 22,789 980 21,809 Mar.. 200 117 84 22,639 1,350 21,289 1962 2,699 1,123 1,576 21,271 1,315 19,956 Apr... 203 133 70 23,487 1,256 22,231 May.. 194 132 61 24,038 .286 22,752 1 Market value at end of period less current liabilities. NOTE.—Investment Co. Institute data based on reports of members, 2 Cash and deposits, receivables, all U.S. Govt. securities, other which comprise substantially all open-end investment companies registered short-term debt securities less current liabilities. with the Securities and Exchange Commission. Data reflect newly formed companies ufter their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 BUSINESS FINANCE 987 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1961 1962 1963 Industry 1958 1959 1960 1961 19623 III IV I II ni IV 3 13 Manufacturing Total (180 corps.): Sales 05, 134 18,4?3 176 77,849 35,579 29,816 3?,875 33, 34,60? 31 995 35,690 34,448 Profits before taxes 10,466 14,090 13J463 13,?00 15.401 2,943 4,140 3,908 4,096 3,187 4J 3,961 P D r i o v f i i d ts e n a d ft s er taxes 4 5 , ,7 07 1 8 4 4 7 , ,4 3 4 4 0 ? 4 7 , , 4 1 6 2 4 1 4 7 , , 7 1 1 3 4 5 8 S , ,0 1 ? 8 ? 4 1 1 , , 6 1 0 1 6 7 2 \t ,2 3 5 8 8 0 0 1 3 5 3 4 2 1 , , 0 1 9 5 6 8 1 1 , ,7 1 0 6 0 3 1J 3 5 5 4 5 8 1* 083 Nondurable goods industries (79 corps.): * Sales 41,541 45,442 47,277 49,237 52,077 12,387 12,706 12,793 12,984 12,981 13,320 13,105 Profits before taxes 4,40? 5,648 5 570 5,589 6,001 1,406 5?? 1,461 501 453 1 586 5P Dura P b r l o e f i g ts o o a d ft s e r i n t d a u x s e t s ries (101 corps.):2 2, 7 5 8 7 5 4 1J9 2 1 1 ? 0 \\9 2 5 1 3 0 3 9 , ,0 2 3 1 7 9 3 7 , , 4 1 1 5 6 3 4 8 8 0 8 1 8 S 9 7 4 7 8 5 1 P 6 8 5 1 1 5 3 8 5 2 1 7 7 9 61 5 1 9 8 5 7 3 3 6 Sales 63,593 72,981 75,849 73,612 83,502 17,429 20,169 20,499 21,619 19014 22,371 21,343 P P r r o o f f i i t t s s b af e t f e o r r e ta t x a e x s es 6 3, ,0 1 6 4 5 0 4 8 , 4 2 4 3 ? 1 7 39 8 1 9 1 3 7 3,J 6 9 1 1 1 6 9 4 , , 4 7 0 6 0 8 1,5 8 3 0 8 5 7 1 ,6 3 1 6 8 4 4 2 4 1 7 7 7, 2 5 8 9 2 5 17 8 3 7 4 3 7 1 , , 6 3 ? 9 4 7 7 1 , , 4 2 4 1 8 0 Dividends 2,294 2 430 2 510 2,677 2,870 629 803 642 644 647 936 626 Selected industries: Foods and kindred products (25 corps.): Sales 10,707 11 303 11901 12,607 13,124 3,195 3 202 3,231 3,267 3 328 3,298 250 Profits before taxes , 1 15? 1 ?74 1 3?8 417 1440 374 365 336 355 380 368 337 Profits after taxes ... 555 604 631 670 685 176 174 160 167 180 178 162 Dividends 31? 344 367 39? 419 99 101 103 103 104 109 107 Chemicals and allied products (21 corps.): Sales 10390 11979 12411 12 825 13978 3,243 3 331 3 372 3 567 3 467 3,572 3 508 Profits before taxes 1538 187 010 989 500 55? 545 586 546 553 55? Profits after taxes 8?9 1 131 1061 J 039 1 160 ?96 ?79 ?97 ?83 301 ?85 717 799 795 843 876 191 198 196 199 ?83 Petroleum refining (16 corps.): Sales 12 838 13 372 13 815 14483 15013 3,611 3 735 3 771 3 612 3 714 3 916 3 872 919 187 1767 1?37 1 36? 294 341 343 300 ?99 4?0 385 Profits after taxes 791 969 10?6 10?5 1084 246 ?55 341 310 Dividends 516 518 521 528 566 131 133 139 142 141 145 149 Primary metals and products (35 corps.): Sales . . 19226 21,035 20,898 20 308 21 361 5,276 5,360 5 733 5 535 4,992 5 102 5,155 Profits before taxes 182 2 331 2,215 998 1860 525 618 620 505 353 383 431 Profits after taxes 1,154 1 1,170 1067 003 276 338 320 269 186 Dividends 80? '831 840 845 208 ?09 19? 180 Machinery (25 corps.): Sales 14 685 17095 16 17 576 19 1?7 4,342 4,7?7 4 537 4 916 4,665 5,008 4,768 Profits before taxes 1463 1 890 1499 167? 913 389 516 454 490 457 51? 481 Profits after taxes 734 934 763 838 957 194 ?56 ?40 ?65 ?39 4?? 448 48? 497 129 129 133 137 Automobiles and equipment (14 corps.): Sales 18,469 ??,731 ?5,738 ??,779 ?8,603 4,604 6,577 6 904 7 515 5,708 8,476 7,851 1,33? 2,985 ,185 2,788 4 3?6 319 1,15? 1096 1?53 589 ,389 1,?65 Profits after taxes 706 1,479 1,527 ,410 2,136 172 597 531 596 287 721 599 Dividends 758 807 833 969 ,148 207 348 215 216 216 501 216 Public Utility Railroad: Operating revenue. 9,565 9,825 9,514 9,189 9,440 2,355 2,415 2,296 2,408 2,332 2,405 2,238 Profits before taxes 843 845 648 6? 5 7?8 186 ?76 133 186 17? ?37 Profits after taxes 60? 578 445 38? 571 122 199 105 ?75 419 406 385 359 367 68 113 r85 67 173 Electric power: Operating revenue .... . . . 10,195 11,129 11,906 12,478 13,252 3,060 3,268 3,399 3,206 3,255 3,392 3,831 ,704 ,983 3,163 3,349 3,591 807 840 ,051 835 887 818 1,100 Profits after taxes ,519 1,655 1,793 1,883 2,053 445 475 585 472 488 508 626 Dividends 1,134 1 1,307 1,374 1,459 339 344 366 37 356 366 39? Telephone: Operating revenue 6,939 7,572 i,111 8,615 9,196 2,156 2,230 2,245 2,296 2,300 2,355 2,365 1,860 ,153 ,3?6 ,478 ,639 620 657 648 678 683 630 67? Profits after taxes 921 1,073 1,155 1,233 1,327 310 326 320 335 337 335 336 Dividends 674 743 806 867 935 218 225 231 23? 235 237 225 1 Includes 17 cos. in groups not shown separately. Telephone. Data obtained from Federal Communications Commis- 2 Includes 27 cos. in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System 3 Figures have not been adjusted for the varying treatment by indi- Consolidated (including the 20 operating subsidiaries and the Long vidual companies of additional depreciation under the new guidelines and Lines and General departments of American Telephone and Telegraph of the investment tax credit. Co.) and for 2 affiliated telephone cos. Dividends are for the 20 operating subsidiaries and the 2 affiliates. NOTE.—Manufacturing corps. Data are obtained primarily from All series. Profits before taxes are income after all charges and before published co. reports. Federal income taxes and dividends. For description of series see Railroads. Interstate Commerce Commission data for Class I line- June 1949 BULL., pp. 662-66 (manufacturing); Mar. 1942 BULL., pp. haul railroads. 215-17 (public utilities); and Sept. 1944 BULL., p. 908 (electric power). Electric power. Federal Power Commission data for Class A and B Back data available from Division of Research and Statistics. electric utilities, except that quarterly figures on operating revenue and profits before taxes are partly estimated by the Federal Reserve to include affiliated nonelectric operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 BUSINESS FINANCE JULY 1963 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t r e a o f x o f e i r s t e s c ta o I x n m e - s e P t a r a f o x t f e e i r s ts d C d e i a n v s d i h - s t U r p i r b n o u d f t i i t e s s - d co c a n a l t l i s p o o u i w n t m a - l p- Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e - s e P t a r a f o x t f e e i r t s s d C d e i a n v s d i h - s t U r p i r b n o u d f t i i e t s s d - co c a n a t ll i s p o o u i w n t m a - l pances i ances * 1955 44 9 21 8 23 0 11 2 11 8 18.4 1961r III 44 3 22 3 22 0 15 2 6 8 26.9 1956 44.7 21.2 23.5 12.1 11.3 20.0 IV... 48.9 24.6 24.3 15.8 8.5 27.5 1957 43.2 20.9 22.3 12.6 9.7 21.8 1958 37 4 18 6 18 8 12 4 6 4 22.7 1962r I 45 9 21 7 24 2 16 2 8 0 30.3 1959 47.7 23.2 24.5 13.7 10.8 24.3 II.... 46.7 22.1 24.6 16.4 8.2 30.7 III... 46.2 21.9 24.3 16.5 7.8 31.0 1960r 44.3 22.3 22.0 14.5 7.5 25.6 IV... 48.4 22.9 25.5 17.1 8.4 31.3 1961r 43.8 22.0 21.8 15.3 6.5 26.8 1962r 46.8 22.2 24.6 16.6 8.1 30.8 1963— I.... 48.3 22.9 25.4 17.1 8.3 31.7 i Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. 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 G U o . v S t . . i Other G U o J v S t . .i Other taxes 1955 103.0 224.0 34.6 23.5 2.3 86.6 72.8 4.2 121.0 2.3 73.8 19.3 25.7 1956 107.4 237.9 34.8 19.1 2.6 95.1 80.4 5.9 130.5 2.4 81.5 17.6 29.0 1957 111.6 244.7 34.9 18.6 2.8 99.4 82.2 6.7 133.1 2.3 84.3 15.4 31.1 1958 118.7 255.3 37.4 18.8 2.8 106.9 81.9 7.5 136.6 1.7 88.7 12.9 33.3 1959 124.2 277.3 36.3 22.8 2.9 117.7 88.4 9.1 153.1 1.7 99.3 15.0 37.0 1960r 128.6 289.0 37.2 20.1 3.1 126.1 91.8 10.6 160.4 1 8 105 0 13 5 40.1 1961r IV . . . 136.8 306.0 40.3 19.7 3.4 135.5 95.2 12.0 169 3 1 8 111 6 14 0 41.9 1962r I 138.4 308.6 36.9 20.4 3.4 137.0 97.8 13.1 170 2 1 8 111 4 13 5 43 5 II 140.4 313.3 37.2 19.6 3.3 141.0 98.7 13.5 172.9 1.8 113.4 13.6 44.1 Ill 141.3 320.5 37.5 19.0 3.4 146.4 100.5 13.7 179 2 1 9 117 7 14 6 45 0 IV 144.0 325.9 41.0 20.1 3.6 146.5 100.9 13.7 181.9 2.0 119.8 14.9 45.1 1963— I 144.9 327.7 36.9 20.7 3.5 148.7 102.7 15.2 182.8 2.3 120.2 14.1 46.2 i Receivables from, and payables to, the U.S. Govt. exclude amounts NOTE.—Securities and Exchange Commission estimates; excludes 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) Manufacturing Transportation Total Period Total Durable Non- Mining Railroad Other u P t u il b it l i i e c s n C i o c m ati m on u s - Other i a ( r n S a n . t u A e a ) . l durable 1955 28.70 5.44 6.00 .96 .92 1.60 4.31 1.98 7 49 1956 35.08 7.62 7.33 1.24 1.23 1.71 4.90 2.68 8 36 1957 36.96 8.02 7.94 1.24 1.40 1.77 6 20 3 03 7 37 1958 30.53 5.47 5.96 .94 .75 1.50 6.09 2 62 7 20 1959 32.54 5.77 6.29 .99 .92 1.02 5.67 2.67 8 21 I960 35.68 7.18 7.30 .99 1.03 L.94 5.68 3.13 8 44 1961 34.37 6.27 7.40 .98 .67 .85 5 52 3 22 8 46 1962 37.31 7.03 7.65 1.08 .85 2.07 5.48 3 63 9 52 1963 2 39.24 7.72 7.84 1.02 1.08 1.90 5.61 1407 1961 IV 9.54 1.79 2.09 .26 .16 .50 1.54 .88 2.32 35.40 1962 I 8.02 1.44 1.69 .26 .16 .47 1 06 88 2 06 35 70 IT 9.50 1.77 1.92 .27 .26 .60 1.37 93 2 37 36 95 ITT 9.62 1.79 1.93 .28 .24 .50 1.54 87 2 48 38 35 IV 10.18 2.03 2.10 .27 .20 .50 1.52 ,95 2.60 37.95 1963 I 8.25 1.62 1.65 .24 .21 .39 1.04 .85 2.26 36.95 II 2 9.84 1.96 1.97 .26 .30 .52 1 43 340 38 40 Ill 2 10.09 1.94 1.96 .26 .26 .49 1.55 3 62 39.95 1 Includes trade, service, finance, and construction, NOTE.—Dept. of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corp. and noncorp. business, excluding agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 REAL ESTATE CREDIT 989 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Nonfarrr Farm ho O ld th e e rs r 2 1- to 4-family houses com M me u r l c ti i f a a l m p i r ly op a e n rt d ies 3 End of period h A e o r l l d s l - tu F i t i n c i n o i s a a t n i l n - s - 1 a U ge .S n . - v I id n u d a i- ls h A e o r l l s d l - Total F in in s a ti n - . O ho th ld e - r Total F in in s a ti n - . O ho th ld e - r h A o er l l d s l - tu F i t i n c i n o i s a a t n i l n - s - 1 h O ol t d h e e r r s4 cies and tutions i ers tutions ! 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 8 172 6 11.8 41 3 211.6 153.0 128.7 24.3 58.6 38.9 19.7 14 2 5 0 9 2 1962P 250.5 192.7 12.2 45.7 235.0 168.4 142.9 25.5 66.6 44.3 22.3 15.5 5 5 10 0 1961 I 210.3 160.2 11.3 38.9 197.0 143.2 119.7 23.5 53.8 35.7 18.0 13 3 4 7 8 6 II 215.3 164.4 11.2 39.7 201.6 146.3 122.8 23.5 55.2 36.7 18.5 13.7 4 8 8 9 III 220.3 168.4 11.4 40.4 206.3 149.6 125.8 23.8 56.7 37.7 19.0 14.0 4.9 9.1 IV 225 8 172 6 11.8 41.3 211.6 153.0 128.7 24.3 58 6 38.9 19.7 14 2 5 0 9 2 1962 IP 230 4 176 0 12.1 42.3 215.9 155.7 130.9 24.8 60.2 40 0 20 2 14 5 5 1 9 4 IIP .... 237.0 181.6 12.1 43.3 222.0 159.9 135.0 24.9 62.2 41.3 20.9 14.9 5 3 9 7 HIP 243.5 187.0 12.1 44.4 228.2 164.2 139.1 25.1 64.0 42.5 21.5 15.2 5.4 9 9 TVP 250.5 192.7 12.2 45.7 235.0 168.4 142.9 25.5 66.6 44.3 22.3 15.5 5.5 10.0 1963—IP 255.7 197.4 11.8 46.5 239.9 171.6 146.3 25.3 68.3 45.5 22.8 15.8 5.6 10.2 1 Commercial banks (including nondeposit trust cos. but not trust 4 Derived figures; includes debt held by Federal land banks and depts.), mutual savings banks, life insurance cos., and savings and loan Farmers Home Administration. assns. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin- NOTE.—Based on data from Federal Deposit Insurance Corp., Federal istration, and Federal land banks, and in earlier years, RFC, HOLC, Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculand FFMC. Other U.S. agencies (amounts small or current separate ture and Commerce, Federal National Mortgage Assn., Federal Housing data not readily available) included with individuals and others. Administration, Public Housing Administration, Veterans Administra- 3 Derived figures; includes small amounts of farm loans held by tion, and Comptroller of the Currency. savings and loan assns. Figures for first three quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Other Other Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - n fa o r n m - Farml 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 1956 22,719 17,004 4,803 3,902 8,300 4,379 1,336 19,746 17,703 4,409 7,139 6,155 1,984 59 1957 23,337 17,147 4,823 3,589 8,735 4,823 1,367 21,169 19,010 4,669 7,790 6,551 2,102 57 1958 25,523 18,591 5,476 3,335 9,780 5,461 1,471 23,263 20,935 5,501 8,360 7,073 2,275 53 1959 28,145 20,320 6,122 3,161 11,037 6,237 1,588 24,992 22,486 6,276 8,589 7,622 2,451 55 I960 28,806 20,362 5,851 2,859 11,652 6,796 1,648 26,935 24,306 7,074 8,986 8,246 2,575 54 1961 30.442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,028 2,753 51 1962 34,476 23,482 6,520 2,654 14,308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1961 I • • 28,864 20,281 5,793 2,776 11,712 6,906 1,677 27,447 24,800 7,353 9,111 8,336 2,597 50 II 29,383 20,595 5,820 2,726 12,049 7,072 1,716 28,015 25,318 7,634 9,192 8,492 2,645 51 Ill 29,920 20,953 5,905 2,676 12,372 7,227 1,740 28,589 25,892 7,811 9,231 8,850 2,646 51 IV 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 9,028 2,753 51 1962 I 30,844 21,211 6,003 2,547 12,661 7,817 1,816 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 1,927 30,638 27,632 8,662 9,502 9,469 2,954 51 III 33,430 22,824 6,376 2,617 13.831 8,628 1,978 31,484 28,464 8,984 9,633 9,847 2,968 52 IV 34,476 23,482 6,520 2,654 14,308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1963 I 35,233 23,836 6,627 2,641 14,568 9,342 2,055 33,368 30,143 9,724 10,046 10,373 3,174 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 REAL ESTATE CREDIT JULY 1963 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total FHA- g V u A ar - - Other i Farm 1 Total Total FHA- g V u A ar - - Other Farm insured anteed insured anteed 1941 6,442 5,529 815 4,714 913 1945 976 6,636 5,860 1,394 4 466 776 1956 6,715 6,201 842 1,652 3,707 514 32,989 30,508 6,627 7,304 16,577 2,481 1957 5,230 4,823 653 831 3,339 407 35,236 32,652 6,751 7,721 18,180 2,584 1958 5,277 4,839 1,301 195 3,343 438 37,062 34,395 7,443 7,433 19,519 2,667 1959 5,970 5,472 1,549 201 3,722 498 39,197 36,353 8,273 7,086 20,994 2,844 I960 6,086 5,622 1,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961 6,785 6,233 1,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962* 7,476 6,854 1,397 458 4,999 622 46,980 43,582 10,257 6,394 26,931 3,398 1962—Mayr 591 535 103 39 393 56 44,972 41,708 9,910 6,469 25,329 3,264 576 532 103 33 396 44 45,142 41,856 9,884 6,444 25,528 3,286 July 625 580 129 36 415 45 45,340 42,030 9,970 6,431 25,629 3,310 Aug 637 597 118 38 441 40 45,576 42,247 10,005 6,412 25,830 3,329 Sept 566 530 109 41 380 36 45,758 42,413 10,051 6,403 25,959 3,345 Oct 719 673 139 54 480 46 46,051 42,686 10,107 6,397 26,182 3,365 Nov 727 683 142 46 495 44 46,380 43,003 10,182 6,389 26,432 3,377 Dec 1,016 952 148 49 755 64 46,980 43,582 10,257 6,394 26,931 3,398 1963—Jan 647 581 122 48 411 66 47,203 43,805 10,309 6,397 27,099 3,398 Feb 518 447 98 44 305 71 47,348 43,928 10,343 6,390 27,195 3,420 Mar 705 608 125 63 420 97 47,618 44,156 10,388 6,399 27,369 3,462 Apr 705 624 126 68 430 81 47,910 44,407 10,444 6,418 27,545 3,503 May... 713 635 129 73 433 78 48,165 44,616 10,483 6,428 27,705 3,549 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 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 r - ed a g n u t a e r e - d ti v o e n n a - l 2 S.A.2 N.S.A. in lo g a s n & c a o n m ce - m ci e a r l - s in a g v s tion assns. panies banks banks 1941 .. 1379 437 581 4,578 1941., 4,732 1,490 404 1,165 218 1945 1Oil 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 1956. 27,088 9,532 ,799 5,458 ,824 1957 10 160 3,484 4,591 40,007 1,643 7,011 31,353 1957., 24,244 9,217 ,472 4,264 ,429 1958 1'> 18? 4,050 5,172 45,627 2,206 7,077 36,344 1958., 27,388 10,516 ,460 5,204 ,640 1959 U5.151 5,201 6,613 53,141 2,995 7,186 42,960 1959. 32,235 13,094 ,523 5,832 ,780 I960 14.304 4,678 6,132 60,070 3,524 7,222 49,324 1960. 29,341 12,158 ,318 4,520 ,557 1961 rr 364 5,081 7,207 68,834 4,167 7,152 57,515 1961. 31,157 13,662 ,160 4,997 ,741 1962 20.754 5,979 8,524 78,973 4,480 7,022 67,471 1962. 34,187 15,144 ,212 5,851 ,957 1962 1962 May 1,857 584 739 72,585 4,333 7,133 61,119 Apr.., 2,745 2,704 1,210 89 482 131 June 916 572 823 73,631 4,355 7,120 62,156 May.. 2,836 2,983 1,350 100 534 154 July ,839 515 796 74,511 4,378 7,105 63,028 June.. 2,891 3,075 1,391 107 542 177 Aug ^,016 540 920 75,527 4,399 7,097 64,031 July.. 2,973 3,134 1,382 107 549 201 Scot 1,731 495 746 76,371 4,414 7,086 64,871 Aug.. 2,933 3,333 1,501 123 563 201 Oct ,951 543 823 77,333 4,425 7,081 65,827 Sept.. 2,929 2,861 1,285 104 476 183 Nov ,750 505 708 78,137 4,459 7,069 66,609 Oct... 2,925 3,208 1,403 116 554 191 Dec 1,755 534 643 78,973 4,480 7,022 67,471 Nov.. 2,939 2,883 1,270 105 490 178 Dec... 2,916 2,682 1,168 103 168 1963 1963 Jan 1,571 434 616 79,648 4,507 7,026 68,115 Feb , 1,501 429 576 80,341 4,529 7,057 68,755 Jan.. 2,876 2,658 1,143 100 457 141 Mar. 1,834 573 666 81,247 4,542 7,055 69,650 Feb.. 2,869 2,424 1,086 408 123 Apr 2,061 622 760 82,311 4,555 7,078 70,678 Mar.. 2,907 2,751 1,261 99 467 126 Mayp 2,182 646 852 83,478 4,584 7,072 71,822 Apr.. 3,065 1,412 112 539 145 1 Includes loans for repair, additions and alterations, refinancing, etc. * 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

JULY 1963 REAL ESTATE CREDIT 991 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMBLY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guarantced Governmentunderwritten Period Total h N o M m ew e o s rtga h i g s o E t e m i x s n - e g s e P c r t o s j 1 - m p P e r i e r m r o n o t v t - p y e s - - 2 Total 3 h N o M m ew e o s rtga h i g s o E t e m i x s n - e g s E p n er d io 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 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 I960 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* 168.4 62.0 32.3 29.7 106.4 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 1962—May 560 140 263 87 70 184 96 88 643 137 267 143 96 267 108 99 1961—1 143.2 57.1 27.4 29.7 86.1 July 678 144 289 164 81 219 109 110 n 146.3 57.8 28.0 29.8 88.6 Aug 670 157 308 130 75 247 120 127 m 149.6 58.7 28.8 29.9 90.9 Sept 576 144 287 62 83 231 114 117 rv 153.0 59.1 29.5 29.6 93.9 Oct 673 193 353 54 72 285 136 149 Nov 649 172 321 86 70 254 124 129 1962—lv 155.7 59.9 30.3 29.6 95.8 Dec........... 589 145 284 95 65 236 115 121 II9 159.9 60.4 30.9 29.5 99.4 IIIJ' 164.2 61.0 31.5 29.5 103.2 1963—Jan 618 179 324 60 54 254 123 131 IV P 168.4 62.0 32.3 29.7 106.4 Feb 536 141 259 82 54 202 100 101 Mar 546 137 279 73 57 219 106 113 1963—{P. 171.6 62.8 33.0 29.8 108.8 Apr. 540 120 273 86 62 245 114 130 May 562 123 292 72 75 260 108 151 NOTE.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, 1 Monthly figures do not reflect mortgage amendments included in annual totals. figures are derived. 2 Not ordinarily secured by mortgages. Based on data from Federal Home Loan Bank 3 Includes a small amount of alteration and repair loans, not shown separately; only such Board, Federal Housing Administration, and Veterans 1 oans in amounts of more than $1,000 need be secured. Administrati on. 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 holdings tr M an o s r a t c g t a i g on e s Com- Adv ( a en nc d e o s f o p u e ts r t i a o n d d ) ing End of ( p d e u r r io in d g ) m m e i n t t - s 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 period Total F su H in r A e - d - a g V n u t A a e r e - - d c P ha u s r e - s Sales bu d u r i n s s - - ed Total t S e h r o m r t 1 - t L er o m ng - 2 1945 278 213 195 176 19 46 1956 3,047 978 2,069 609 5 360 1956 745 934 1,228 798 430 683 1957 3,974 1,237 2,737 1,096 764 1957 1,116 1,079 1,265 731 534 653 1958 3,901 1,483 2,418 623 482 1,541 1958 1,364 1,331 1,298 685 613 819 1959 5,531 2,546 2,985 1,907 5 568 1959 2,067 1,231 2,134 1,192 942 589 I960 6,159 3,356 2,803 1,248 357 576 1960 1,943 2,097 1,981 1,089 892 938 1961 6,093 3,490 2,603 815 541 631 1961 2,882 2,200 2,662 1,447 ,216 1,180 1962 5,923 3,571 2,353 740 498 355 1962 4,111 3,294 3,479 2,005 ,474 1,213 1962 May 6,120 3,627 2,493 82 76 527 1962—June. 503 165 2,767 1,569 ,198 1,192 6,035 3,571 2,464 52 101 504 July. 480 387 2,860 1,708 ,151 976 July 5,989 3,557 2,432 34 47 485 Aug. 312 225 2,948 1,787 ,161 954 5,969 3,556 2,413 35 19 442 Sept. 279 180 3,046 1,835 ,211 984 Seot 5,951 3,552 2,399 32 12 429 Oct.. 383 338 3091 1,876 ,215 ,016 Oct 5,944 3,555 2,389 39 11 431 Nov. 252 275 3,068 1,821 ,246 ,028 Nov........ 5,949 3,575 2,374 57 19 366 Dec.. 611 200 3,479 2,005 .474 ,213 Dec. 5,923 3,571 2,353 26 18 355 1963—Jan.. 249 926 2,802 1,669 ,134 ,155 1963 Jan . ... 5,853 3,552 2,300 34 66 336 Feb.. 178 370 2,611 1,534 ,077 ,213 Feb...... 5,697 3,469 2,227 17 129 323 Mar. 250 348 2 514 1,399 ,115 ,282 Mar 5,501 3,375 2,126 28 191 289 Apr.. 451 329 2,635 1,516 ,119 ,250 Apr . ...... 5,227 3,269 1,958 28 270 281 May. 382 277 2,740 1,585 ,155 ,236 May 4.993 3,164 1,828 26 213 272 June. 696 166 3,270 1.876 ,393 ,325 NOTE.—Federal National Mortgage Association data excluding con- * Secured or unsecured loans maturing in 1 year or less. ventional mortgage loans acquired by FNMA from the RFC Mortgage 2 Secured loans, amortized quarterly, having maturities of more thaa Company, the Defense Homes Corporation, the Public Housing Admin- 1 year but not more than 10 years. istration and Community Facilities Administration. Nom—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 CONSUMER CREDIT JULY 1963 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t e i o l r - e co g O p n o a s t o p h u d e e m r r s er e a r n l R n o d i e a z p m n a a s t o i i * r o d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e e s n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 51S 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 63,458 48,243 19,384 12,855 3,290 12,714 15,215 5,579 5,642 3,994 1962—May 58,318 44,495 18,032 11,598 3,169 11,696 13,823 5,400 4.544 3,879 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 63,458 48,243 19,384 12,855 3,290 12,714 15,215 5,579 5,642 3,994 1963—Jan ''62,728 '48,118 r19,438 12,695 3,250 12,735 14,610 5,511 5,058 4,041 M Fe a b r ' '6 62 2 ,2 1 3 9 9 8 ' r4 4 8 8 , , 1 0 5 0 3 4 r1 1 9 9 , , 5 7 2 2 5 0 ' '1 12 2 ,3 4 5 6 9 8 3 3 , , 2 2 2 1 1 0 1 1 2 2 ,8 7 6 9 4 0 1 1 4 4 , , 1 0 9 8 4 6 5 5 ,5 5 9 4 3 5 4 4 ,3 4 4 9 0 6 4 4 ,1 1 5 5 3 3 Apr '63,230 '48,836 '20,120 '12,419 3,229 13,068 14,394 5,596 4,567 4,231 May 64,165 49,494 20,509 12,512 3,272 13,201 14,671 5,696 4,791 4,184 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 institutions Retail outlets End of period Total Com- Sales Credit Con- Depart- Furni- Appli- Auto- Total m b e a r n c k ia s l fin co an s. ce unions fin su an m c e e r * Other i Total st m or e e n s t 2 s t t u or re es s a to n r c e e s d m ea o l b e 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 I960 42,832 37,218 16,672 11,472 3,923 3,670 1,481 5,615 2,414 1,107 333 359 1,402 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 48,243 41,807 18,909 12,194 4,973 4,131 1,600 6,436 3,013 1,073 279 284 1,787 1962—Mav 44,495 39,032 17,686 11,440 4,520 3,836 1,550 5,463 2,430 991 274 310 1,458 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 AUK 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 99R 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 I 597 5,989 2,835 1,019 274 292 1,569 Dec 48,243 41,807 18,909 12,194 4,973 4,131 1,600 6,436 3,013 1,073 279 284 1,787 1963 Jan '48,118 '42,304 18,981 12,668 4,939 4,134 1,582 '5,814 2,478 1,049 275 C284 1,728 Feb r48,004 '42,286 19,057 r12,556 4,952 4,138 1,583 '5,718 '2,480 1,027 273 C281 1,657 Mar '48,153 '42,398 19,203 '12,460 5,007 4,139 1,589 '5,755 '2,566 I 002 264 277 c1,646 Apr '48,836 '42,959 19,581 12,506 5,117 4,174 1,581 '5,877 '2,686 992 259 C269 c1,671 May 49,494 43,482 19,874 12,583 5,228 4,191 1,606 6,012 2,797 994 260 263 1 698 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

JULY 1963 CONSUMER CREDIT 993 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 u s 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 o t m o p h m d e e e - r r s r e R m l r t o a e n i a p n o o i n z d a d n a i s - r - l s P o o a e 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 o t m o p h n d e e e - r r s r m R iz lo o a e a a d p n ti n e a d o r s i n r n- s l P o o a e n r n a - s l 1939 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945 300 164 24 58 54 1945 745 66 143 114 110 312 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 12,194 7,449 3,123 170 1,452 1962 18,909 6,181 3,393 2,811 2,238 4,286 1962—May 11,440 6,991 3,027 167 1,255 1962—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 Aue 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 1,408 Nov 18,765 6,160 3,357 2,762 2,250 4,236 Dec 12,194 7,449 3,123 170 1,452 Dec 18,909 6,181 3,393 2,811 2,238 4,286 1963—Jan r12,668 7,471 r3,567 167 1,463 1963—Jan 18,981 6,194 3,427 2,832 2,213 4,315 Feb r12,556 7,477 r3,446 165 1,468 Feb 19,057 6,240 3,458 2,822 2,191 4,346 Mar . r12,460 7,514 -3,307 164 1,475 Mar 19,203 6,327 3,513 2,809 2,178 4,376 Apr r12,506 7,639 r3,214 162 1,491 Apr 19,581 6,470 3,612 2,824 2,194 4,481 May 12,583 7,778 3,136 162 1,507 May 19,874 6,596 3,699 2,843 2,221 4,515 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 1 1 9 9 3 4 9 1 9 7 5 8 7 9 pap 1 e 8 2 r 1 2 g p o a o p d e 2 3 r s 4 6 iz lo a a ti n o 1 1 s n 5 4 loa 7 6 n 8 6 s 5 9 End of period Total b C m c a o i n e a m r k l - - s t f O u i i n c n t t i i s h a a o t e n i l n - r - s s m t p D o a e r e r n e - t s t - *o O r u e t t t h l a e e i t r l s c C a r r e d d s i 2 t S c e r r e v d i i c t e 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 1370 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 3 842 266 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 3,156 471 907 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 1962—May 9,906 1,895 736 837 6,438 I960 13 196 3 884 623 941 3 952 436 3 360 10,045 1,934 746 844 6,521 1961 14,151 4,413 723 94S 3 907 469 3 691 July 10,145 1,962 749 849 6,585 1962 15,215 4,704 875 927 4 203 512 3 994 Aug 10,314 2,007 758 865 6,684 Sept 10,367 2,018 758 870 6,721 1962—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 1963—Jan 10,655 2,062 766 870 6,957 Oct.... 13,904 4,662 780 638 3,507 518 3,799 Feb 10,673 2,069 763 865 6,976 Nov... 14,199 4,680 846 68S 3,629 508 3,848 Mar 10,735 2 089 765 868 7,013 Dec... 15,215 4,704 875 927 4,203 512 3,994 Apr 10,872 2,130 773 873 7,096 May 11,025 2,173 784 889 7,179 1963—Jan.... 14,610 4,680 831 775 3,759 524 4,041 Feb... 14,194 4,704 841 646 3,324 526 4,153 Mar... 14,086 4,713 880 587 3,251 502 4,153 NOTE.—Institutions represented are consumer finance cos., credit Apr... 14,394 4,774 822 603 3,466 498 4,231 unions, industrial loan cos., mutual savings banks, savings and loan May.. 14,671 4,813 883 610 3,675 506 4,184 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

994 CONSUMER CREDIT JULY 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 pe m r er mode R r e n p iz a a ir ti o a n n d loans Personal loans 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 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 55,395 19,515 16,129 2,113 17,638 1962—May... 4,650 4,950 1.655 1.837 1.338 1,383 183 216 1.474 1.514 June . .... 4,623 4,923 1,621 1,810 1,344 1,384 187 201 1,471 1,528 July 4,669 4,720 1,631 1,751 1,368 1,290 189 199 1,481 1,480 4,619 4,862 1,602 1,731 1,325 1,345 179 209 1,513 1,577 Sept 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 1,432 169 191 1,493 1,474 Nov 4,961 4,932 1,797 1,701 1,425 1,499 168 177 1,571 1,555 4,829 5,379 1,684 1.539 1,469 1,937 172 151 1,504 1,752 1963 Jan '4,869 '4,362 ,757 '1,583 1,398 '1,211 176 130 1,538 1,438 Feb . . .. '4,884 r4,035 1,745 '1,488 1.394 '1,045 165 125 1,580 1,377 Mar '4,933 '4,663 r1,760 '1,731 '1J,423 '1,258 178 159 1,572 1,515 Apr '5,033 r5,291 r1,863 '2,000 '1,396 '1,394 187 193 1.587 1,704 May . . 4,950 5,263 1.797 1,995 1,390 1,434 186 216 1,577 .618 Repayments 1956 37,054 14,555 10,756 1,370 10,373 1957 39,868 15,545 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 1960 45,972 16,384 13,574 1,883 14,130 1961 47,700 16,472 14,246 2,015 14,967 1962 50.679 17.354 15,131 2,014 16,180 19^2 May 4,211 4,292 1.447 1.476 1,260 1.283 173 175 1.331 1,358 4,202 4,210 ,433 1,432 1,260 1,256 170 170 1,339 1,352 July 4,283 4,278 ,456 1,481 1,296 1,262 170 173 1,361 1,362 4,261 4,308 ,446 1,478 1,281 1,275 172 175 1,362 1,380 Sept 4,289 3,992 ,440 1,361 1,298 1,218 169 159 1,382 1,254 Oct 4,298 4,501 ,491 1,614 1,261 1,307 165 179 1,381 1,401 Nov 4,380 4,380 ,490 1,477 1,302 1,299 163 164 1,425 1,440 Dec 4,371 4,410 ,513 1,462 1,293 ,268 171 163 1,394 1,517 1963 Jan '4,382 r4,487 ,505 r1,529 '1,299 ,371 169 170 1,409 1,417 Feb '4,459 '4,149 r ,518 r ,401 '1,316 ,272 167 154 1,458 1,322 Mar '4,544 '4,514 r ,549 ,536 '1,360 r ,367 173 170 1,462 1,441 Apr r4,502 '4,608 ,570 ,600 '1,306 ,334 171 174 1,455 1,500 May 4,516 4,605 .573 .606 1,316 .341 171 173 1.456 1,485 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 1959 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 4,716 2,161 998 99 1 458 1962 Mav 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 Sept 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 458 969 171 77 176 669 1 -12 110 235 1963 Jan.. '487 '-125 '252 '54 '99 '-160 7 -40 129 21 Feb r425 '-114 '227 '87 '78 '-227 2 -29 122 55 Mar '389 '149 '211 '195 '63 '-109 5 -11 110 74 '531 683 '293 '400 '90 '60 16 19 132 204 l^ay , ..... 434 658 224 389 74 93 15 43 121 133 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 of the 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

JULY 1963 CONSUMER CREDIT 995 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Sales finance Other financial Total Commercial banks companies institutions Retail outlets 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.i 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 55,395 20,360 12,124 13,623 9,288 1962—May. 4,650 4,950 1,710 1,881 1,007 1,059 ,150 ,205 783 805 June. 4,623 4,923 1,720 1,862 992 1,081 ,139 ,194 772 786 July.. 4,669 4,720 1,708 1,789 984 1,069 ,146 ,152 831 710 Aug.. 4,619 4,862 1,679 ,773 971 1,068 ,177 ,233 792 788 Sept.. 4,491 4,098 1,643 ,486 944 863 ,138 ,015 766 734 Oct.. 4,682 4,913 1,722 ,806 1,021 1,108 ,144 ,136 795 863 Nov.. 4,961 4,932 1,813 ,701 ,104 1,070 ,208 ,231 836 930 Dec.. 4,829 5,379 1,772 ,682 ,189 1,189 ,143 ,332 725 1,176 1963—Jan '4,869 '4,362 1,782 ,698 ,085 '978 ,174 ,050 '828 636 Feb '4,884 '4,035 1,794 ,552 ,023 '845 ,186 ,025 '881 '613 Mar '4,933 '4,663 1,829 ,774 ,015 '957 ,199 ,162 '890 mo Apr '5,033 '5,291 1,880 2,057 ,055 '1,094 ,237 ,289 '861 May 4,950 5,263 1,810 1,993 ,055 1,107 .232 ,287 853 '851 876 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 50,679 18,450 11,434 12,570 8,225 1962—May. 4,211 4,292 1,526 ,561 965 978 1,047 1,071 673 682 June. 4,202 4,210 ',526 ,524 960 951 1,038 1,055 678 680 July., 4,283 4,278 ,546 ,578 956 957 ,055 1,052 726 691 Aug.. 4,261 4,308 ,555 ,581 932 954 ,054 1,064 720 709 Sept.. 4,289 3,992 ,562 ,470 936 872 ,062 962 729 688 Oct.. 4,298 4,501 ,546 ,636 949 1,035 ,071 ,080 732 750 Nov.. 4,380 4,380 ,579 ,549 937 944 ,105 ,120 759 767 Dec.. 4,371 4,410 ,594 ,538 978 981 ,060 ,162 739 729 1963—Jan '4,382 '4,487 ,586 ,626 '977 '966 ,090 ,099 '729 '796 Feb '4,459 '4,149 ,564 ,476 '1,048 '957 ,113 ,007 '734 '709 Mar '4,544 '4,514 1,657 ,628 '1,044 '1,053 1,113 ,100 '730 '733 Apr '4,502 '4,608 1,628 ,679 '1,021 '1,048 1,126 ,152 '727 '729 May 4,516 4,605 1,662 ,700 1,016 1,030 1,108 1,134 730 741 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 1960. 3,588 1,446 1,152 1,051 -61 1961. 696 335 -199 578 -20 1962. 4,716 1,901 921 1,053 841 1962—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. 458 969 178 144 211 208 83 170 -14 447 1963—Jan.. '487 '-125 196 72 '570 '474 -49 -363 '-622 Feb.. '425 '-114 230 76 '-25 '-112 73 18 '147 '-96 Mar.. '389 '149 172 146 '-29 '-96 86 62 '160 '37 Apr.. '531 683 252 378 '34 '46 111 137 '134 '122 May. 434 658 148 293 39 77 124 153 123 135 1 Includes adjustment for differences in trading days. to eliminata duplication resulting from large transfers of paper. In 2 Net changes in credit outstanding equal to 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

996 INDUSTRIAL PRODUCTION: S.A. JULY 1963 MARKET GROUPINGS (1957-59=100) 1957-59 1962 '1962 1963 Grouping p p ti o r o o r n - - a a v g e e r- May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.1 May Total index 100.00 118.3 118.3 118.4 119.4 119.4 119.8 119.: 119.5 119.1 119.2 120.2 121.3 122.5 124.1 Final products, total 47.35 119.7 119.4 119.9 121.3 121.4 121.7 121.4 121.3 121.7 122.3 122.6 122.4 121.9 123.0 Consumer goods 32.31 119.7 120.0 120.0 121.2 121.0 121.4 120.6 120.5 121.2 121.8 122.9 123.1 122.5 123.5 Equipment, including defense. . 15.04 119.6 118.3 119. 121.4 122.8 123.0 123.3 123.1 122.4 122.0 121.5 120.7 120.9 122.0 Materials 52.65 117.0 117.4 117.2 117.3 117.4 118.2 117.2 117.8 116.9 116.8 118.0 120. 122.9 125.3 Consumer goods Automotive products 3.21 131.1 133.0 126.5 135. 134.6 135.3 135.6 135.2 136.9 136.5 137.7 136.3 137.6 137.1 Autos 1.82 135.9 140.8 128.1 143.9 140.0 141.2 142.1 141.1 142.0 141.3 142.0 141.8 141.9 144.3 Auto parts and allied products. . . 1.39 124.9 122.8 124.5 125.2 127.5 127.4 127.1 127.5 130.1 130.2 132.1 129.1 132.0 127.7 Home goods and apparel 10.00 118.1 119.1 119.3 118.6 118.2 118.8 118.9 119.2 119.9 120.2 120. 121.3 120.5 122.1 Home goods 4.59 122.2 124.1 124.2 122.4 122.0 122.0 122.1 122.9 123.9 125.8 125.9 127.3 126.7 129.4 Appliances, TV, and radios.... 1.81 118.2 120.1 120.4 118.1 117.5 117.0 117.6 119.0 120.0 r117.3 119. 123. 123.1 Appliances 1.33 121.4 120.4 122.5 121.9 121.7 122.6 123.9 126.0 127.2 121.9 123.7 126.7 125.0 TV and home radios .47 109.2 119.0 114.2 107.4 105.7 101.3 99.8 99.5 99.6 104.4 108.8 113.4 118.1 117.1 Furniture and rugs 1.26 123.9 125.8 125.9 124.3 125.4 125.5 125.8 125.8 125.4 130.0 126.0 127.4 127.0 131.4 Miscellaneous home goods 1.52 125.7 127.6 127.4 125.9 124.6 124.9 124.4 125.0 127.5 132.3 132.9 131.9 130.7 133.5 Apparel, knit goods, and shoes 5.41 114.5 114.8 115.1 115.3 114.9 116. 116.1 116.1 116.4 115.7 116. 116.2 115.3 116.0 Consumer staples 19.10 118.7 118.1 119.1 120.1 120.2 120.5 119.1 119.5 119.8 120.2 121.4 121.8 120.9 122.3 Processed foods 8.43 113.7 112.7 113.6 114.7 115.6 115.6 114.0 114.3 114.4 113.8 114.5 115.2 114.7 115.2 Beverages and tobacco 2.43 111.7 114.1 110.9 112.3 111.9 112.0 110.0 112.6 112.5 115.1 114.3 114.0 112.7 Drugs, soap, and toiletries 2.97 129.9 129.0 130.8 132.0 131.7 132.7 132.4 131.6 132.9 134.2 135.2 137 137. i38.*4 Newspapers, magazines, and books 1.47 116.7 116.8 117.7 117.4 117.6 117.0 116.4 116.4 115.8 113.9 115.0 115 118.3 120.0 Consumer fuel and lighting 3.67 126.1 124.5 128.2 128.6 127.7 128.5 126.8 126.9 127.9 129.7 133.4 131 128.7 Fuel oil and gasoline 1.20 111.9 112.3 115.0 111.7 108.4 114.0 112.8 112.0 113.7 113.2 117.9 117.3 115.0 Residential utilities 2.46 133.0 130.4 134.7 136.9 137.1 135.6 133.7 134.2 134.9 137.7 140.9 138.2 135.4 Electricity 1.72 136.3 133.6 139.5 141.4 140.4 139.3 137.6 139.9 139.5 142.0 144.9 141.9 137.3 Gas .74 125.6 Equipment Business equipment 11.63 122.1 121.2 123.1 124.4 125.6 126.2 126.1 125.9 125.11 125.0 125.0 124.9 124.9 125.9 Industrial equipment 6.85 117.2 116.7 118.5 119.0 119.2 118.9 120.4 120.5 119.9 118.8 119.3 119.2 119.2 120.8 Commercial equipment. 2.42 143.1 144.4 144.8 145.6 144.7 144.9 143. 144.4 144.2 145.3 144.5 143. 143.3 143.3 Freight and passenger equipment. . 1.76 117.2 111.2 114.9 121.0 124.2 125.2 125.6 124.5 125.4 126.2 126.9 126.3 126.0 125.8 Farm equipment .61 107.7 105.6 110.4 110.4 115.5 116.7 117.3 118.4 119.1 118. 123.2 119.7 115.2 112.2 Defense equipment 3.41 Materials Durable goods materials 26.73 114.1 114.9 113.7 113. 114.3 114.9 114.0 114.1 113.2 113.3 114.4 118.0 121.1 124.1 Consumer durable , 3.43 127.5 130.5 124.5 130.4 130.6 129.7 129.4 129.3 129.7 129.3 130.9 134.0 135.4 139.5 Equipment 7.84 118.9 119.5 120.8 119.3 119.2 121.3 121.0 120.4 120.3 121.4 121.2 122.2 123.1 125.3 Construction 9.17 110.4 112.5 111.8 112.0 112.7 113.3 111.3 111.3 108.6 108.6 109.2 112.4 115.1 115.9 Metal materials n.e.c 6.29 106.1 104.5 99.4 98.0 98.6 98.5 100.1 102.3 103.5 106.0 109.5 115.0 120.5 126.2 Nondurable materials 25.92 120.0 119.9 120.9 120.8 120.6 121.6 120.6 122.4, 121.1 120.5 121.8 122.6 124.8 126.6 Business supplies 9.11 116.5 116.7 117.4 116.5 117.0 118.4 116.5 118.5 117.4 116.0 116.7 117.8 119.0 121.7 Containers 3.03 117.1 116.0 117.7 117.4 116.5 118.7 116.0 120.6 118.0 118.5 119.3 121.5 116.1 121.0 General business supplies 6.07 116.3 117.1 117.3 116.1 117.3 118.2 116.7 117.5 117.1 114.7 115.4 115.9 120.4 122.1 Nondurable materials n.e.c , 7.40 134.7 135.1 136.9 136.3 136.3 136.9 135.4 137.8 137.1 137.3 138.0 140.2 143.5 145.2 Business fuel and power. 9.41 111.7 111.0 111.6 112.9 111.8 112.7 112. 113.9 112.0 111.7 113.9 113.3 115.6 116.7 Mineral fuels 6.07 104.9 103.7 104.7 106.4 105.6 106.7 106.3 107.2 104.2 102.9 105.6 105.1 108.0 109.6 Nonresidential utilities 2.86 129.9 130.1 130.4 131.2 129.5 130.0 131.5 132.6 132.9 134.3 135.9 134.7 135.9 Electricity 2.32 130.7 131.5 131.9 132.4 130.1 130.4 132.3 133.4 133.6 135.0 136.9 135.3 136.5 General industrial 1.03 122.8 124.0 122.6 124.1 122.0 122.7 124.3 123.5 123.2 124.9 125.8 124.2 130.3 Commercial and other , 1.21 139.9 140.5 142.4 142.0 139.5 139.5 141.7 144.5 145.1 146.5 149.2 147.5 144.6 Gas .54 126.4 Supplementary groups of consumer goods Automotive and home goods. 7.80 125.9 127.8 125.2 127.9 127.2 127.4 127.7 128.0 129.3 130.0 130.7 131.0 131.2 132.6 Apparel and staples 24.51 117.7 117.3 118.2 119.0 119.0 119.5 118.4 118.7 119.1 119.2 120.4 120.5 119.7 120.6 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INDUSTRIAL PRODUCTION: S.A. 997 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1962 19621 1963 Grouping p p ti r o o o r n - - a a v g e e r- May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.7 May Total index. 100.00 118.3 118.3 118.4 119.4 119.4 119.8 119.2 119.5 119.1 119.2 120.2 121.3 122.5 124.1 Manufacturing, total., 86.45 118.7 118.9 118.8 119.7 119.9 120.4 119.7 119.9 119.7 119.8 120.6 121.9 123.1 124.8 Durable 48.07 117.9 118.1 117.6 118.7 118.9 119.2 118.8 119.2 118.9 119.0 120.0 121.5 122.8 125.2 Nondurable 38.38 119.8 119.8 120.3 121.0 121.1 121.8 121.0 120.9 120.8 120.7 121.4 122.5 123.5 124.3 Mining 8.23 105.0 105.1 105.2 106.5 105.4 105.7 105.2 105.7 103.2 103.0 104.7 105.4 107.4 107.8 Utilities 5.32 131.3 130.2 132.4 133.8 133.1 132.6 132.5 133.4 133.8 135.9 138.2 136.4 135.7 136.5 Durable manufactures Primary and fabricated metals 12,32 110.0 108.7 107.3 106.7 107.5 108.3 107.1 108.2 107.3 107. 111.0 115.1 120.1 125.5 Primary metals 6.95 104.6 101.3 97.7 96.6 98.1 99.6 98.9 100.7 99.7 99.6 105.2 111.9 120.0 126.8 Iron and steel 5.45 100.6 96.5 89.5 87.8 92.1 92.8 91.0 95.3 95.8 96.0 102.2 111.5 121.7 129.0 Nonferrous metals and products. 1.50 119.1 120.8 118.2 117.9 112.9 118.4 120.1 121.2 120.6 121.7 121.0 123.7 121.0 122.9 Fabricated metal products 5.37 117.1 118.3 119.7 119.7 119.6 119.6 117.8 117.9 117.2 118.4 118.5 119.3 120.2 123.8 Structural metal parts 2.86 113.2 115. 116.4 116.2 115.2 115.1 114.2 112.8 112.5 113.5 113.9 115.4 116.8 120.7 Machinery and related products 27. 122.1 122.7 122.3 124.5 124.6 124.6 124.9 124.8 124.7 124.7 125.3 125.0 125.3 126.6 Machinery 14.80 123.5 124.2 125.3 125.2 125.5 125.7 126.1 125.9 125.5 125.2 126.4 126.2 125.9 127.0 Nonelectrical machinery 8.43 119.7 120. 121.3 121.8 122.5 122.7 123.2 123.0 121.5 122.2 123. 122.7 121.7 123.6 Electrical machinery 6.37 128.5 129.6 130.5 129.6 129.6 129.7 129.8 129.7 130.8 129.5 130.8 130.8 131.5 131.6 Transportation equipment 10.19 118.3 119.4 116.6 122.3 121.4 121.5 121.8 121.5 121.7 122.4 122.3 122.1 123.7 124.9 Motor vehicles and parts 4.68 134.1 139.1 131.5 141.8 136.8 137.8 138.1 137.3 137.7 137.9 139.1 140.2 141.8 143.2 Aircraft and other equipment. . . 5.26 103.9 101.6 103.0 104.7 107.3 106.7 107.2 107.2 107.0 107.9 106.8 105.6 107.2 108.1 Instruments and related products. . 1.71 123.0 123.2 124.1 124.9 125.0 124.3 124.2 125.0 125.4 125.7 127.0 127.2 126.6 130.8 Ordnance and accessories. 1.28 Clay, glass, and lumber 4.72 109.3 109.3 109.8 109.2 110.4 110.8 108.5 110.4 111.5 110.9 109.8 115.0 112.7 113.4 Clay, glass, and stone products. 2.99 111.1 110.6 111.1 111.7 111.9 112.3 112.4 112.9 113.1 113.9 110.7 114.6 115.5 115.7 Lumber and products 1.73 106.1 107.1 107.5 104.9 107.8 108.3 101.9 106.1 108.7 105.7 108.2 115.7 108.0 109.3 Furniture and miscellaneous.. 3.05 124.5 127.3 127.0 127.7 126.1 126.8 125.3 125.5 124.6 125.0 123.6 124.8 125.8 129.4 Furniture and fixtures 1.54 126.8 129.3 128.5 128.4 128.9 129.2 128.2 129.3 128.6 129.2 126.6 128.3 129.3 132.7 Miscellaneous manufactures. 1.51 122.2 125.2 125.5 126.9 123.3 124.4 122.3 121.7 120.5 120.7 120.6 121.3 122.3 126.1 Nondurable manufactures Textiles, apparel, and leather. 7.60 115.1 115.4 115.8 115.6 115.7 116.8 115.8 115.5 115.2 115.2 115.6 115.9 116.3 117.2 Textile mill products 2.90 115.2 116.6 116.9 117.1 in.2 116.1 114.6 112.7 112.7 113.4 112.6 114.3 116.1 117.2 Apparel products 3.59 118.9 118.3 119.0 118.8 120.5 121.4 122.3 122.2 122.5 123.2 122.5 122.9 123.2 Leather and products 1.11 102.3 102.9 102. 101.7 119.2 106.6 100.8 100.7 99.4 96.4 98.7 98.8 95.4 100.6 Paper and printing 8.17 116.7 7/7.0 117.2 117.4 117.9 118.2 117.2 116.9 115.4 114.5 115.8 115.7 119.2 120.6 Paper and products 3.43 119.7 119.9 119.6 121.1 120.5 120.9 120.8 119.8 119.6 120.3 123.3 123.9 122.8 123.3 Printing and publishing. 4.74 114.6 114.9 115.5 114.7 116.0 116.2 114.6 114.8 112.3 110.2 110.5 109.7 116.5 118.6 Newspapers......... 1.53 108.5 107.9 108.6 109.1 112.4 111.3 108.2 109.7 100.5 94.0 93.9 90.8 109.7 111.4 Chemicals, petroleum, and rubber. 11.54 131.2 131.1 132.9 133.4 133.2 134.8 134.1 133.6 134.2 134.2 135.3 138.2 139.8 140.6 Chemicals and products 7.58 136.1 135.7 137.4 138.3 138.6 139.8 139.2 138.7 138.7 140.0 141.4 143.6 146.3 147.0 Industrial chemicals 3.84 147.5 146.5 149.0 150.7 150.8 152.0 151.9 151.2 150.6 152.6 153.1 155.2 161.1 Petroleum products 1.97 112.9 112.6 115.1 113.4 111.0 115.8 113.6 113.0 114.2 114.3 114.3 115.5 115.8 116.2 Rubber and plastics products 1.99 130.6 131.6 133.6 134.3 134.5 134.5 135.1 134.5 136.8 131.4 132.8 140.3 138.8 Foods, beverages, and tobacco , 11.07 113.4 113.2 112.5 114.5 114.4 114.3 113.6 114.2 114.5 115.0 115.0 115.6 114.6 115.1 Foods and beverages 10.25 113.5 113.3 112.9 114.6 114.6 114.2 114.0 114.2 114.8 115.2 115.0 115.7 114.7 115.3 Food manufactures 8.64 113.8 113.0 113.0 115.1 115. 115.0 114.6 114.7 115.1 115.0 115.2 116.0 115.1 115.7 Beverages 1.61 111.5 114.9 112.2 111.7 111.9 110.0 110.7 111.5 113.1 116.1 114.2 113.9 112.7 Tobacco products .82 112.0 112.5 108.2 113.4 112.0 116.0 108.6 114.7 111.4 113.0 114.6 114.2 112.7 Mining Coal, oil, and gas . . . 6.80 103. 102.7 103.2 104.9 104.2 105.2 105.1 105.5 102.8 101.3 103.7 103.9 106.1 106.8 Coal 1.16 95.3 93.0 92.8 92.8 93.8 94.2 94.3 96.6 95.6 95.1 96.1 93.9 100.8 104.5 Crude oil and natural gas 5.64 105.5 104.6 105.4 107.4 106.3 107.5 107.3 107.4 104.2 102.6 105.3 105.9 107.2 107.3 Oil and gas extraction 4.91 107.2 106.3 107.5 109.6 108.4 109.6 109.1 109.7 106.3 104.8 107.9 107.8 109.7 110.8 Crude oil 4.25 105.1 104.1 105.6 107.7 106.7 107.8 107.2 107.5 103.8 101.6 104.8 104.9 107.3 108.4 Gas and gas liquids .66 120.4 120.1 119.5 121.6 119.2 121.3 121.2 123.7 121.9 Oil and gas drilling .73 94.2 93.7 91.1 92.8 92.3 93.0 95.4 91.5 90.5 '87 A *84!6 Metal, stone, and earth minerals. 1.43 110.9 116.7 114.4 113.9 111.3 107.8 105.9 106.8 105.1 111.1 109.7 112.6 113.9 112.5 Metal mining .61 112.6 126.2 119.4 118.3 110.7 101.1 96.8 99.1 104.1 110.1 114.3 115.7 114.6 116.3 Stone and earth minerals 109.7 109.7 110.7 110.6 111.7 112.7 112.6 112.5 105.8 111.9 106.2 110.2 113.4 109.7 Utilities Electric. 4.04 133.1 132.4 135.1 136.2 134.5 134.2 134.5 136.2 136. 138.0 140.3 138.1 136.8 Gas 1.28 125.9 123.4 123.8 126.4 128.6 127.5 126.2 124.6 126.8 i A revision of the 1962 seasonal adjustment factors has been incorporated NOTF.—Published groupings include some series and subtotals not in the above indexes. A pamphlet "Industrial Production Indexes for 1962" shown separately. A description and historical data are available in is available on request from the Division of Administrative Services. Industrial Production—1957-59 Base. Figures for individual series and 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

998 INDUSTRIAL PRODUCTION: N.S.A. JULY 1963 MARKET GROUPINGS (1957-59 = 100) 1957-59 1962 1962 r 1963 Grouping pro- averp ti o o r n - age May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.T May Total index. 100.00 118.3 118.4 119.9 114.0 117.8 122.3 122.5 120.6 117.2 117.9 120.5 122.5 123.1 124.7 Final products, total 47.35 7/9.7 118.5 121.1 777.5 779.5 125.0 725.4 722.7 779.5 120.0 122.4 723.7 722.7 722.5 Consumer goods 32.31 119.7 118.4 121.3 116.7 119.2 126.4 126.7 122.1 117.7 119.0 122.4 123.9 122.1 122.6 Equipment, including defense. . . 15.04 119.6 118.9 120.8 119.2 120.2 122.0 122.5 122.0 123.3 122.1 122.6 123.1 122.1 122.6 Materials 52.65 117.0 118.3 118.9 110.9 116.2 119.8 120.0 119.2 115.2 115.9 118.7 121.5 124.0 126.5 Consumer Goods Automotive products 3.21 131.1 138.5 133.1 129.8 79.4 124.9 148.1 145.1 143.7 142.4 144.0 144.7 148.2 145.9 Autos 1.82 135.9 149.3 137.1 136.7 43.4 120.0 160.6 159.4 157.6 152.6 153.4 157.4 160.4 158.7 Auto parts and allied products.... 1.39 124.9 124.2 127.9 120.7 126.8 131.3 131.6 126.3 125.5 129.0 131.5 128.1 132.2 129.0 Home goods and apparel 10.00 118.1 117.6 120.8 107.6 779.5 124.0 723.9 120.1 777.2 773.5 723.7 725.3 722.7 720.9 Home goods 4.59 122.2 121.0 125.5 110.7 117.8 130.6 131.1 128.3 123.2 118.0 126.6 128.6 126.0 126.7 Appliances, TV, and radios 1.81 118.2 117.2 124.3 99.6 103.6 127.5 128.1 124.8 115.6 108.3 127.3 129.6 123.6 Appliances 1.33 121.4 120.8 129.9 107.1 101.7 127.1 127.5 128.1 124.8 112.6 133.5 138.2 129.7 TV and home radios .47 109.2 107.1 108.5 78.4 108.9 128.6 129.7 115.4 89.6 96.1 109.9 105.5 106.3 105.4 Furniture and rugs 1.26 123.9 120.1 123.5 116.8 126.7 131.4 131.6 129.6 130.4 126.1 126.0 127.1 125.7 125.5 Miscellaneous home goods 1.52 125.7 126.3 128.5 119.0 127.3 133.6 134.2 131.3 126.5 122.8 126.3 128.5 129.1 132.2 Apparel, knit goods, and shoes. . . 5.41 114.5 114.8 116.8 104.9 121.2 118.4 117.8 113.2 100.9 109.9 120.1 124.3 118.8 116.0 Consumer staples 19.10 118.7 115.4 779.5 119.4 725.5 128.0 724.5 779.3 775.7 777.9 118.3 779.2 777.7 779.5 Processed foods 8.43 113.7 107.4 112.0 116.1 124.2 131.0 126.0 117.5 110.7 107.5 106.7 108.9 107.4 109.8 Beverages and tobacco 2.43 111.7 122.0 127.2 115.8 120.6 115.8 115.2 106.5 97.4 101.2 104.2 110.3 115.6 Drugs, soap, and toiletries 2.97 129.9 129.1 133.7 125.8 134.6 133.1 135.0 132.0 131.6 133.1 134.8 136.3 137.8 Newspapers, magazines, and books. 1.47 116.7 116.2 115.9 114.8 117.6 119.9 118.1 116.4 115.8 113.9 114.4 116.5 117.8 119.4 Consumer fuel and lighting 3.67 126.1 117.6 121.8 126.0 128.4 128.5 121.5 122.2 131.5 141.9 142.2 135.5 126.2 Fuel oil and gasoline 1.20 111.9 108.6 113.4 114.2 112.3 113.5 110.1 111.5 116.6 117.9 120.4 115.4 109.4 iio.'s Residential utilities 2.46 133.0 Electricity 1.72 136.3 121.6 126.9 134.0 139.1 139.7 128.1 130.1 145.1 164.7 162.0 152.1 135.9 Gas .74 125.6 Equipment Business equipment 11.63 122.1 722.0 724.5 722.0 722.5 124.9\ 725.3 724.3 725.7 725.7 725.3 727.3 725.4 126.8 Industrial equipment 6.85 117.2 116.8 119.6 117.8 118.8 120.0 119.7 118.8 120.6 119.0 118.7 119.3 119.2 120.9 Commercial equipment 2.42 143.1 142.7 145.2 142.7 145.0 147.1 146.2 146. 146.7 145.4 143.5 142.5 140.6 141.6 Freight and passenger equipment. 1.76 117.2 116.1 119.5 117.6 116.6 118.2 124.3 122.0 122.6 123.7 128.4 134.0 132.3 131.3 Farm equipment .61 107.7 114.9 113.7 99.6 94.1 111.4 108.0 106.6 116.3 117.3 137.4 136.9 134.7 122.1 Defense equipment 3.41 Materials Durable goods materials. 26.73 774.7 775.5 775.7 708.7 777.4 116.8 775.5 775.5 772.3 772.3 774.5 775.5 722.0 725.2 Consumer durable 3.43 127.5 130.6 123.6 117.4 107.5 130.5 134.1 136.0 138.8 135.5 135.5 137.4 135.8 139.6 Equipment 7.84 118.9 119.7 119.8 115.4 116.1 119.4 120.2 121.7 122.7 123.5 123.5 124.4 123.7 125.6 Construction 9.17 110.4 114.7 118.8 113.7 119.5 119.9 116.8 111.1 102.5 100.2 102.0 106.9 113.9 119.4 Metal materials n.e.c.. . . 6.29 106. 107.1 103.6 88.4 95.7 101.5 102.5 103.1 98.9 103.2 110.5 117.8 124.1 129.4 Nondurable materials 25.9. 120.0 720.2 727.7 773.7 727.3 722.9 723.4 723.0 118.3 779.7 722.9 124.5 725.7 725.9 Business supplies 9.11 116.5 117.9 118.7 109.2 118.7 122.2 121.9 119.4 111.5 112.2 115.1 118.6 122.1 122.9 Containers 3.03 117.1 117.2 123.6 112.7 128.1 126.4 121.8 114.0 102.7 111.4 116.9 121.5 119.6 122.2 General business supplies. 6.07 116.3 118.3 116.2 107.4 114.1 120.0 121.9 122.2 115.9 112.6 114.2 117.1 123.4 123.3 Nondurable materials n.e.c.. 7.40 134.7 137.1 137.6 125.8 134.9 135.5 138.1 139.2 133.7 137.3 142.1 144.4 144.9 147.4 Business fuel and power 9.41 111.7 109.2 112.1 107.0 113.0 113.6 113.4 113.6 112.7 113.1 115.2 114.6 115.2 114.7 Mineral fuels 6.07 104.9 102.6 105.0 96.2 103.7 104.9 106.4 107.8 106.4 105.8 109.6 108.4 109.4 108.3 Nonresidential utilities 2.86 129.9 Electricity 2.3: 130.7 127.4 133.6 136. 140.3 139.3 134.2 130.7 130.4 132.6 131.1 131.4 131.1 General industrial 1.03 122.8 123.4 123.7 120.6 125.4 125.2 127.0 123.9 122.0 124.3 122.5 124.9 128.2 Commercial and other.. 1.21 139.9 133. 144.7 152.2 156.1 154.3 143.1 139.0 140.0 142.3 141.0 139.5 136.1 Gas .54 126.4 Supplementary groups of consumer goods Automotive and home goods. 7.80 125.9 128.2 128.6 118.6 102.0 128.2 138.1 135.2 131.7 128.0 133.8 135.2 135.1 134.6 Apparel and staples 24.51 117.7 115.3 118.9 116.2 124.6 125.9 123.1 117.9 113.2 116.1 118.7 120.3 118.0 118.7 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INDUSTRIAL PRODUCTION: N.S.A. 999 INDUSTRY GROUPINGS (1957-59=100) Grouping 9 p p 5 r o 7 o r - - - 59 a 1 v 9 e 6 r 2 - 1962* 1963 tion age May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. May Total index. 100.00 118.3 118.4 119.9 114.0 117.8 122.3 122.5 120.6 117.2 117.9 120.5 122.5 123.1 124.7 Manufacturing, total 86.45 118.7 119.3 120.5 114.1 117.7 122.9 123.5 121.4 117.5 117.8 120.7 123.3 124.1 125.9 Durable 48.07 117.9 118.8 119.2 113.5 112.7 120.4 121.8 121.0 119.4 118.3 120.7 123.2 124.3 126.7 Nondurable 38.38 119.8 119.9 122.3 114.9 123.9 125.9 125.8 121.9 115.1 117.2 120.6 123.4 123.7 124.9 Mining 8.23 105.0 105.6 107.6 100.9 106.5 106.6 106.9 106.3 103.3 102.6 104.9 104.5 106.9 108.2 Utilities 5.32 131.3 Durable manufactures Primary and fabricated metals. 12.32 110.0 109.8 108.4 97.6 104.5 110.2\ 109.2 109.0 106.2 108.4 112.6 118.1 122.4 725.9 Primary metals 6.95 104.6 103.9 98.7 82.9 92.0 98.5 99.9 101.7 97.3 102.6 110.1 118.8 125.6 130.1 Iron and steel 5.45 100.6 97.5 91.3 76.8 86.6 92.8 93.7 96.3 93.4 97.9 106.6 117.1 125.4 130.3 Nqnferous metals and products., 1.50 119. 127.2 125.5 104.9 111.8 119.2 122.4 121.2 111.4 119.6 122.8 125.1 126.3 129.4 Fabricated metal products 5.37 117. 117.4 120.9 116.7 120.7 125.3 121.3 118.6 117.8 116.0 115.8 117.2 118.4 122.8 Structural metal parts 2.86 113.2 113.4 116.4 113.9 115.8 118.6 117.9 116.0 114.8 112.4 111.5 112.2 113.8 118.9 Machinery and related products. . . 27.98 122.1 123.1 123.3 119.6 113.2 123.9 127.0 127.1 127.7 125.9 127.6 128.2 127.3\ 725.2 Machinery 14.80 123.5 123.9 126.7 119.3 121.1 127.6 127.0 126.2 127.0 124.9 128.1 128.5 126.9 127.9 Nonelectrical machinery 8.43 119.7 121.9 123.6 119.1 118.0 121.2 120.7 120.5 122.5 122.2 125.3 126.1 125.3 126.5 Electrical machinery 6.37 128.5 126.5 130.8 119.6 125.2 136.1 135.3 133.7 132.9 128.5 132.0 131.6 129.0 129.7 Transportation equipment....... 10.19 118.3 120.9 117.0 118.0 97.1 116.6 126.3 127.2 127.6 126.2 126.0 127.4 127.7 128.0 Motor vehicles and parts 4.68 134. 141.9 133.6 135.0 87.0 128.8 148.3 149.1 149.1 145.6 145.9 148.5 149.3 149.5 Aircraft and other equipment. . . 5.26 103.9 101.2 101.6 102.7 104.8 105.4 106.7 107.8 108.6 109.0 108.1 108.2 107.7 107.7 Instruments and related products. , 1.71 123.0 121.4 124.1 122.2 125.0 125.2 125.6 127.2 127.0 125.2 126.2 126.9 126.5 128.8 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 109.3 114.0 118.4 112.6 120.4 119.5 116.5 110.4 99.9 97.2 700.5 705.7 772.5 775.2 Clay, glass, and stone products. 2.99 111.1 116.6 118.9 117.8 122.0 119.6 119.1 114.0 102.9 99.7 99.1 105.4 115.5 121.9 Lumber and products 1.73 106.1 109.6 117.6 103.5 117.6 119.3 112.1 104.1 94.6 93.0 102.8 107.3 107.4 111.8 Furniture and miscellaneous 3.05 124.5 123.3 126.4 122.5 129.1 131.9 132.1 129.6 126.5 120.9 727.5 725.5 122.8 725.5 Furniture and fixtures 1.54 126.8 124.3 127.9 124.8 132.1 133.1 133.3 131.4 131.2 126.9 126.3 126.8 126.2 127.5 Miscellaneous manufactures 1.51 122.2 122.2 124.9 120.2 126.0 130.6 130.9 127.9 121.7 114.8 117.2 119.7 119.4 123.1 Nondurable manufactures Textiles, apparel, and leather 7.60 115.1 117.0 118.3 102.7 119.5 117.4 117.0 114.5 104.7 772.7 120.8 724.7 779.4 779.0 Textile mill products 2.90 115.2 120.7 122.2 101.9 118.4 116.1 115.7 115.0 108.2 112.3 116.0 120.0 115.5 121.9 Apparel products 3.59 118.9 119.5 119.6 106.7 124.0 122.3 122.6 119.2 105.7 116.4 129.4 134.8 129.9 124.4 Leather and products 1.11 102.3 99.1 104.2 91.9 107.9 105.2 102.3 98.2 92.2 97.8 105.5 104.2 95.4 Paper and printing 8.17 116.7 117.7 117.5 108.7 117.2 119.6 122.4 120.8 111.4 772.7 775.9 777.7 720.9 722.4 Paper and products . 3.43 119.7 120.0 122.0 107.8 123.5 122.0 127.3 123.0 108.6 118.6 125.9 127.0 125.0 125.9 Printing and publishing 4.74 114.6 116.0 114.3 109.5 112.7 117.9 118.9 119.2 113.4 107.5 108.7 111.0 117.9 119.9 Newspapers 1.53 108.5 115.0 108.6 96.0 101.7 112.1 117.7 120.7 100.0 86.6 90.3 92.6 116.4 118.8 Chemicals, petroleum, and rubber.... 11.54 131.2 132.1 135.1 126.6 132.5 134.6 135.9 755.5 131.4 754.5 757.2 139.8 742.5 747.5 Chemicals and products 7.58 136.1 138.0 139.6 131.9 138.2 138.5 139.8 138.9 136.6 138.9 142.7 145.8 149.9 149.4 Industrial chemicals.......... 3.84 147.5 148.3 149.0 143.5 148.1 149.4 151.9 153.6 150.6 152.6 156.5 159.4 163.4 Petroleum products 1.97 112.9 110.9 117.4 117.9 116.6 118.1 114.2 111.3 112.5 112.6 112.6 111.5 112.3 Rubber and plastics products 1.99 130.6 130.3 135.6 115.1 126.4 136.2 142.7 135.3 130.6 138.1 140.5 144.8 143.1 Foods, beverages, and tobacco.... 11.07 113.4 110.7 115.2 115.7 123.0 127.3 123.7 775.5 705.7 106.6 705.7 709.5 709.4 775.2 Foods and beverages 10.25 113.5 110.3 115.0 116.9 123. 127.9 124.2 115.4 109.5 106.2 106.1 109.4 109.1 112.9 Food manufactures 8.64 113.8 107.5 111.8 115.7 123.7 130.5 126.1 118.1 111.1 108.1 107.4 109.4 107.6 110.0 Beverages 1.61 111.5 124.8 132.4 123.6 120.3 113.9 113.6 101.2 100.9 95.8 99.2 109.2 117.2 Tobacco products .82 112.0 116.6 116.9 100.4 121.2 119.4 118.3 117.0 90.7 111.8 114.0 112.5 112.5 Mining Coal, oil, and gas 6.80 103.8 101.5 103.6 96.1 102.9 103.9 105.3 106.2 105.0 704.5 707.0 705.9! 705.7 705.5 Coal 1.16 95.3 93.9 104.6 59.3 98.7 99.7 102.8 100.6 93.9 93.2 97.3 94.7! 101.5 105.5 Crude oil and natural gas 5.64 105.5 103.0 103.4 103.6 103.7 104.7 105.8 107.4 107.3 106.6 109.0 108.2 107.8 105.6 Oil and gas extraction 4.91 107.2 104.6 105.1 104.9 104.9 106.1 107.3 109.5 109.3 108.7 112.5 111.6 111.3 109.0 Crude oil . 4.25 105.1 103.1 104.0 103.6 103.7 104.9 105.6 106.7 105.8 104.7 108.7 108.3 109.1 107.3 Gas and gas liquids. .66 120.4 114.5 112.2 113.2 112.9 114.0 118.3 127.5 132.0 Oil and gas drilling .73 94.2 91.9 92.0 95.2 95.7 95.1 95.9 93.3 93.2 92.0 85.4 85.1 84.1 82.4 Metal, stone, and earth minerals 1.43 110.9 125.1 126.5 123.9 123.5 119.7 114.5 106.4 95.6 94.3 94.7 98.0 707.9 720.5 Metal mining .61 112.6 133. 134.9 126.6 119.6 113.2 105.5 96. 94.7 96.9 102.9 101.8 104.3 123.3 Stone and earth minerals .82 109.7 118.6 120.3 121.8 126.4 124.5 121.2 114.2 96.2 92.4 88.6 95.1 110.6 118.6 Utilities Electric 4.04 133.1 124.9 130.7 135.2 139.8 139.5 131.6 130.4 136.7 146.3 144.3 140.2 133.1 Gas 1.28 125.9 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

1000 BUSINESS ACTIVITY JULY 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 Major industry C st o ru n - - r t i u c r u a l l - Freight Depart- Period Total Tot F a i l na s g l C u o p m o o r n o d e - d s r u E c m t q s e u n ip t - M ri a a t l e s - Mfg. gro M u in p i g n in - g*> U iti t e il s - t c r ti a o o c n n t - s m T p o e e l n m t o a t y l — - - i p m E lo m e y n - - t P ro a l y ls - l i c o n a a g r d - s - m s s t a o e le n re s t s C um on e - r W m c s o o h a d m o l i e l t e - y - 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 1960 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.4 99.7 106.6 95.3 106 103.1 100.7 1961 109.8 111.3 112.7 108.3 108.4 109.7 102.6 122.8 108 102 9 95.6 105.2 91.2 109 104.2 100.3 1962 r118.3 119.7 119.7119.6 117.0 118.7 105.0 131.3 120 105.2 98.6 113.3 92.4 114 105.4 100.6 1962—May 118.3 119.4 120.0 118.3 117.4 118.9 105.1 130.2 117 105.4 99.8 113.7 »"94.1 115 105.2 100.2 June r118.4119.9 120.0 119.8 117.2 118.8 105.2 132.4 120 105.6 99.9 113.5 89.9 111 105.3 100.0 July . r119.4r121.3121.2 121.4 117.3 119.7 106.5 133.8 117 105.8 99 7 113.1 r89.4 114 105.5 100.4 Aug r119.4r121.4121.0 122.8 117.4 119.9 105.4 133.1 118 105.6 98.7 112.5 r90.6 115 105.5 100.5 Sept 119.8121.7 121.4 123.0 118.2 120.4 105.7 132.6 113 105.7 98.8 115.2 r90.3 117 106.1 101.2 Oct 119.2121.4 120.6 123.3 117.2 119.7 105.2 132.5 117 105.9 98.6 113.2 '89.5 110 106.0 100.6 Nov r119.5r121.3120.5 123.1 117.8119.9 105.7 133.4 123 105.8 97.9 113.3 r92.9 118 100.7 106.0 Dec 119.1r121.7121.2 122.4 116.9 119.7 103.2 133.8 138 105.7 97.8 114.3 r90.6 117 105.8 100.4 1963—jan 119.2 122.3 121.8 122.0 116.8 119.8 103.0 135.9 121 105.6 97.3 114.5 r89.9 114 106.0 100.5 Feb 120.2 122.6 122.9 121.5 118.0 120.6 104.7 138.2 130 106.0 97.5 115.2 r93.9 114 106.1 100.2 Mar 121.3122.4 123.1 120.7 120.2 121.9 105.4 136.4 118 106.5 98.3 116.0 r94.3 119 106.2 99.9 Apr 122.5r121.9 120.9 122.9 123.1 107.4 135.7 125 106.9 99.4 115.9 r95.7 115 106.2 99.7 May 124.1 123.0112223..55 122.0 125.3 124.8 107.8 136.5 144 107.3 100.2 117.3 r96.9 *117 106.2 100.0 June ^125.1^124.6^125.0^123.9 H25.2 ^126.1 P108.7 ^137.0 *107.6 P100.0 P117.5 95.4 120 100.3 1 Employees only, excludes personnel in the armed forces. includes data for Alaska and Hawaii beginning with 1959. 2 Production workers only. Prices: Bureau of Labor Statistics data. 3 Prices are not seasonally adjusted. Freight carloadings: Based on data from Association of American Railroads. NOTE.—Data are seasonally adjusted unless otherwise noted. Construction contracts: F. W. Dodge Corp. monthly index of dollar * A revision of the 1962 seasonal adjustment factors has been incorvalue of total construction contracts, including residential, nonresidential, porated in the above indexes. A pamphlet "Industrial Production Indexes and heavy engineering; does not include data for Alaska and Hawaii. for 1962" is available on request from the Division of Administrative Employment and payrolls: Based on Bureau of Labor Statistics data; Services. CONSTRUCTION CONTRACTS (In millions of dollars) 1962 1963 Type of ownership and type of construction 1961 1962 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total construction 37,135 41,303 4,009 3,900 3,747 3,631 3,273 3,425 3,188 3,198 2,779 2,917 3,583 3,983 4,851 By type of ownership: Public 12,547 13,599 1,227 ,331 1,231 1,039 1,099 1,003 1,099 1,190 932 1,092 1,182 1,168 Private 24,588 27,705 2,782 2,569 2,516 2,591 2,174 2,422 2,089 2,009 1,847 1,825 2,401 2,814 By type of construction: Residential 16,123 18,039 819 1,656 1,623 1,651 1,519 1,610 1,361 1,166 1,250 1,215 1,642 1,986 2,061 Nonresidential 12,115 13,010 275 1,242 1,197 1,177 1,019 1,075 1,066 921 1,016 1,005 1,146 1,210 1,452 Public works and utilities 8,897 10,255 *:915 1,002 926 802 735 740 761 1,111 514 698 796 787 1,337 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

JULY 1963 CONSTRUCTION 1001 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 In tr d i u a B l s u - sine m C s e s o rc m ia - l P u u ti b li l t i y c O n d r t e o t e i h s a n n i l 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 1954 39,234 27,556 15,379 8,403 2,030 2,212 4,161 3,774 11,678 ,003 3,680 982 6,013 1955 44,164 32,440 18,705 9,980 2,399 3,218 4,363 3,755 11,724 ,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 ,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 ,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 ,402 5,545 1,387 7,123 1959 * 56,555 40,344 24,962 11,044 2,106 3,930 5 008 4,338 16,211 ,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 ,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 1,581 8,267 1962. 61,084 43,378 24,833 13,286 2,814 4,964 5,508 5,259 17,706 ,267 6,254 1,754 8,431 1962—June 62,678 44,842 26,118 13,354 2,950 4,865 5,539 5,370 17,836 ,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 ,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 ,244 6,195 ,771 8,375 Sept 62,358 44,976 25,813 13,692 2,930 5,214 5,548 5 471 17,382 ,164 6,140 ,754 8,324 Oct 63,517 43,843 25,013 13,478 2,885 5,018 5,575 5,352 19,674 1,492 7,786 ,764 8,632 Nov 62,610 44,059 25,432 13,424 2,820 4,967 5,637 5,203 18,551 1,003 6,922 ,755 8,871 Dec 61,823 44,134 25,654 13,424 2,788 4,979 5,657 5,056 17,689 1,324 6,343 ,738 8,284 1963—Jan. -62,866 43,434 24,830 13,480 2,773 5,086 5,621 5,124 '19,432 1,736 7,483 1,758 8,455 Feb r60,163 42,313 23,878 13,303 2,716 4,999 5,588 5,132 r17,850 r ,494 6,181 1,768 8,407 Mar 61,018 42,483 23,978 13,323 2,722 4,982 5,619 5,182 18,535 ,312 6,948 1,804 8,471 Apr 60,626 43,818 25,247 13,301 2,815 4,846 5,640 5,270 16,808 .204 5,254 1,860 8,490 May*3 62,395 45,164 26,682 13,093 2,837 4,630 5,626 5,389 17,231 5,586 ,924 Junep 63,740 46,182 27,837 13,015 2,833 4,566 5,616 5,330 17,558 .946 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) underwritten Period Total Metro- Non- Private politan metro- Public Total N fa o rm n- politan Total family fam 2- ily f M am ul i t l i y - Total FHA VA 1954 1,220 897 324 1,202 1,077 34 90 19 583 276 307 1955 1,329 976 353 1,310 1,190 33 87 19 670 277 393 1956 1,118 780 338 1,094 981 31 82 24 465 195 271 1957 1,042 700 342 993 840 33 120 49 322 193 128 1958 1,209 827 382 1,142 933 39 170 68 439 337 102 1959 1,379 946 432 1,343 1,079 49 215 36 458 349 109 1959 1,554 1,077 477 1,517 1,234 56 227 37 458 349 109 I960 1,296 889 407 1,252 995 44 214 44 336 261 75 1961 1,365 948 417 1,313 975 44 295 52 328 244 83 1962 1,482 1,043 439 1,453 989 48 415 29 339 261 78 1962 May 1,579 1,566 157 112 45 154 107 5 42 2 34 26 g June 1,425 1,399 140 96 43 136 96 4 36 3 31 24 7 July 1,466 J.447 139 98 42 136 95 4 36 4 33 25 7 1,529 ,500 148 99 49 146 101 4 41 2 36 28 8 Sept 1,289 ,261 116 84 33 114 76 4 34 3 26 20 6 Oct 1,550 1,504 136 93 43 134 91 4 39 3 30 23 7 Nov 1,586 1,571 122 83 39 120 78 4 38 2 25 19 6 Dec 1,472 [,453 95 68 27 94 56 4 34 1 20 16 5 1963—Jan 1,242 ,220 83 62 22 81 47 3 31 3 18 14 4 Feb 1,280 255 88 65 23 87 52 4 31 1 17 13 4 Mar 1,534 l'510 128 89 39 124 81 4 40 4 22 17 5 Apr ^1,647 ^1,618 111 48 106 5 46 29 21 7 May Pl.722 P1,690 119 52 .168 v3 30 22 7 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 farm and nonfarm series developed initially by the Bureau of Labor inspections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 EMPLOYMENT JULY 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 Employed1 Not in the m ra e te n 2 t population force Total Total In c n u o lt n u a ra g l ri- agric I u n lture U pl n o e y m ed - (pe S r .A ce . nt) industries 1956 118,734 70,387 67,530 64,708 58,135 6,572 2,822 48,348 4.2 1957 120,445 70,746 67,946 65,011 58,789 6,222 2,936 49,699 4.3 1958 121,950 71,284 68,647 63,966 58,122 5,844 4,681 50,666 6.8 1959 123,366 71,946 69,394 65,581 59,745 5,836 3,813 51,420 5.5 1960 i 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 67,846 62,657 5,190 4,007 55,400 5.6 1962—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 5.4 Aug 130,359 76,554 73,695 69,762 63,993 5,770 3,932 53,805 5.7 Sept 130,546 74,914 72,179 68,668 63,103 5,564 3,512 55,631 5.6 Oct 130,730 74,923 72,187 68,893 63,418 5,475 3,294 55,808 5.3 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 5.5 1963—Jan 131,253 73,323 70,607 65,935 61,730 4,206 4,672 57,930 5.8 Feb 131,414 73,999 71,275 66,358 62,309 4,049 4,918 57,414 6.1 Mar 131,590 74,382 71,650 67,148 62,812 4,337 4,501 57,208 5.6 Apr 131,740 74,897 72,161 68,097 63,424 4,673 4,063 56,843 5.7 May 131,865 75,864 73,127 69,061 63,883 5,178 4,066 56,001 5.9 June 132,036 77,901 75,165 70,319 64,365 5,954 4,846 54,135 5.7 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 estimate. 300,000. Most of the increase was in nonagricultural industries. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract Transporta- Period Total M t a u n r u in f g ac- Mining con ti s o t n ruc- t l i i o c n u & til i p ti u e b s - 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 i 53,380 16,667 731 2,955 4,010 11,125 2,597 7,105 8,190 1960 54,347 16,762 709 2,882 4,017 11,412 2,684 7,361 8,520 1961 54,077 16,267 666 2,760 3,923 11,368 2,748 7,516 8,828 1962 55,325 16,752 647 2,695 3,925 11,572 2,794 7,757 9,184 SEASONALLY ADJUSTED 1962—June 55,535 16,923 652 2,671 3,934 11,621 2,788 7,749 9,197 July 55,617 16,908 648 2,738 3,913 11,652 2,792 7,783 9,183 Aug 55,536 16,795 646 2,731 3,932 11,627 2,796 7,805 9,204 Sept 55,583 16,805 641 2,715 3,928 11,612 2,799 7,809 9,274 Oct 55,647 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 Dec 55,580 16,681 625 2,654 3,921 11,573 2,821 7,876 9,429 1963—Jan 55,536 16,632 623 2,651 3,836 11,637 2,828 7,895 9.434 Feb 55,730 16,665 625 2,646 3,913 11,679 2,836 7,917 9,449 Mar 55,963 16,771 625 2,634 3,915 11,765 2,844 7,937 9,472 Apr 56,191 16,915 635 2,730 3,912 11,760 2,844 7,918 9 477 Mayp 56,413 17,021 641 2,733 3,928 11,805 2,853 7,939 9,493 Junep 56,556 17,022 636 2,730 3,941 11,830 2,854 7,982 9,561 NOT SEASONALLY ADJUSTED 1962—June 55,777 16,870 661 2,839 3,965 11,582 2,808 7,881 9,171 July 55,493 16,782 648 2,982 3,948 11,540 2,839 7,884 8,870 55,709 16,931 658 3,031 3,963 11,558 2,841 7,867 8,860 Sept 56,252 17,127 651 2,978 3,959 11,627 2,813 7,856 9,241 Oct 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 Dec 56,444 16,727 628 2,532 3,937 12,401 2,807 7,805 9,607 1963—Jan 54,833 16,551 617 2,349 3,794 11,520 2,803 7,761 9,438 Feb 54,780 16,546 614 2,241 3,862 11,415 2,810 7,782 9,510 Mar 55,068 16,613 612 2,315 3,868 11,477 2,821 7,826 9.536 Apr 55,825 16,701 627 2,585 3,881 11,726 2,835 7,934 9,536 MayP 56,222 16,813 639 2,766 3,916 11,683 2,847 8,018 9,540 Junep 56,802 16,964 645 2,902 3,973 11,791 2,874 8,118 9,535 i 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

JULY 1963 EMPLOYMENT AND EARNINGS 1003 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1962 1963 1962 1963 June Apr. Mayp Junep June Apr. Mayp Junc^ Total 12,581 12,524 12,616 12,600 12,516 12,322 12,424 12,537 Durable goodf 7,035 7,043 7,111 7,112 7,025 6,973 7,050 7,101 Ordnance and accessories 97 97 97 97 97 97 97 97 Lumber and wood products 546 549 548 517 571 529 550 541 Furniture and fixtures 321 319 320 321 317 314 313 317 Stone, clay, and glass products 467 465 473 474 476 460 473 483 Primary metal industries 934 959 979 983 936 955 972 985 Fabricated metal products 871 870 881 879 868 857 869 876 Machinery except electrical 1,027 1,019 1,022 1,027 1,035 1,032 1,031 1,035 Electrical machinery 1,058 1,043 1,050 1,055 1,039 1,022 1,024 1,036 Transportation equipment 1,161 1,178 1,188 1,203 1,137 1,173 1,178 1,178 Instruments and related products 231 232 235 236 229 231 232 234 Miscellaneous manufacturing industries. 322 312 318 320 322 304 312 320 Nondurable goods 5,546 5,481 5,505 5,488 5,491 5,349 5,374 5,436 Food and kindred products 1,180 1,169 1,164 1,147 1,176 1.088 1,102 1,144 Tobacco manufactures 76 77 74 72 65 66 63 62 Textile-mill products 803 775 775 775 803 770 769 775 Apparel and other finished textiles 1,120 1,131 1,144 1,139 1,093 1,106 1,112 1,112 Paper and allied products 482 478 480 482 483 474 476 483 Printing, publishing and allied industries 600 592 596 596 597 590 592 593 Chemicals and allied products 523 523 526 531 520 532 530 528 Products of petroleum and coal 128 120 122 120 130 119 122 122 Rubber products 312 306 311 315 304 303 305 307 Leather and leather products 322 310 313 311 321 301 303 310 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 1962 1963 June Apr. May" June15 June Apr. June* June Apr. Mayp June'' Total. 40.5 40.3 40.7 40.7 97.27 97.76 99.47 100.61 2.39 2.45 2.45 2.46 Durable goods 41.0 40.8 41.3 41.3 105.47 106.37 108.62 109.15 2.56 2.62 2.63 2.63 Ordnance and accessories 41.5 40.4 40.9 40.9 116.88 115.26 118.49 117.22 2.83 2.86 2.89 2 88 Lumber and wood products 39.6 39.7 39.8 39.4 80.40 78.21 80.40 80.80 1.99 1.98 2.01 2^01 Furniture and fixtures 41.3 40.7 41.1 41.1 79.95 78.01 79.19 80.78 1.95 1.96 1.97 1.98 Stone, clay, and glass products 41.0 41.3 41.5 41.5 100.43 101.11 103.25 104.58 2.42 2.46 2.47 2.49 Primary metal industries 39.6 41.5 41.7 41.7 119.10 127.82 127.60 129.98 2.97 3.08 3.06 3.08 Fabricated metal products 41.4 41.0 41.5 41.6 106.75 104.75 108.32 109.36 2.56 2.58 2.61 2.61 Machinery except electrical 41.8 41.3 41.6 41.7 114.09 113.85 115.79 116.34 2.71 2.75 2.77 2.77 Electrical machinery 40.7 40.1 40.3 40.6 98.16 96.87 98.74 100.37 2.40 2.44 2.45 2.46 Transportation equipment 41.9 41.5 42.4 42.3 121.09 121.95 126.35 126.48 2.89 2.96 2.98 2.99 Instruments and related products 41.1 40.6 41.0 41.2 100.94 99.79 101.59 102.84 2.45 2.47 2.49 2.49 Miscellaneous manufacturing industries.. 39.9 39.3 39.7 39.5 78.60 78.78 79.40 79.40 1.97 2.02 2.01 2.01 Nondurable goods 40.0 39.6 39.9 39.9 87.02 86.19 87.91 88.80 2.17 2.21 2.22 2.22 Food and kindred products 41.1 40.7 41.0 41.3 92.70 92.80 95.06 96.46 2.25 2.32 2.33 2.33 Tobacco manufactures 37.9 36.1 38.9 39.4 76.03 68.71 78.95 81.40 1.98 1.98 2.04 2.04 Textile-mill products 41.0 40.6 41.0 40.8 69.46 67.26 69.02 69.53 1.69 1.69 1.70 1.70 Apparel and other finished textiles 36.8 36.2 36.6 36.5 61.09 59.45 60.96 61.32 1.66 1.67 1.67 1.68 Paper and allied products 42.8 42.4 42.8 43.0 102.96 102.90 104.80 106.89 2.40 2.45 2.46 2.48 Printing, publishing and allied industries. 38.4 38.2 38.4 38.7 107.62 108.68 110.21 111.17 2.81 2.86 2.87 2.88 Chemicals and allied products 41.6 42.0 41.6 41.5 111.19 113.40 112.59 113.84 2.66 2.70 2.70 2.73 Products of petroleum and coal 41.7 42.2 41.9 42.0 127.68 134.20 131.57 132.40 3.04 3.18 3.14 3.13 Rubber products 41.5 40.9 40.8 40.2 104.58 99.05 101.09 102.16 2.49 2.47 2.49 2.51 Leather and leather products 38.0 37.0 37.6 37.9 65.88 62.48 64.77 67.23 1.72 1.76 1.76 1.76 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

1004 DEPARTMENT STORES JULY 1963 SALES AND STOCKS, BY DISTRICT (1957-59= 100) Federal Reserve district Period U S n t i a t te e s d Boston Y N o e r w k a P p d h h e i i l l a - - C l l a e n ve d - m Ri o c n h d - l A an t t - a c C a hi g - o Lo S u t i . s M a i p n o n li e s - Ka C n i s t a y s Dallas F c S r i a s a c n 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 195g 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 1960 106 106 108 104 108 105 107 104 103 106 108 100 no 1961 199 112 112 107 110 108 110 105 104 108 111 102 115 1962 114 114 116 110 113 113 118 no 109 109 114 108 123 SEASONALLY ADJUSTED 1962—May 115 110 113 '116 '116 115 112 113 110 '117 108 121 111 112 108 107 110 110 115 108 105 108 111 107 123 July 114 115 113 109 114 112 118 111 112 111 116 112 123 115 117 117 112 109 116 118 113 108 111 IB 107 124 Sept 117 116 120 113 116 118 121 115 113 110 118 113 122 Oct 110 110 112 106 108 107 112 107 104 116 108 1C0 121 Nov 118 120 121 111 116 119 125 113 111 111 117 1C9 128 Dec 117 116 118 112 114 113 122 114 115 110 117 111 127 1963—Jan 114 115 113 103 113 116 123 107 104 110 108 107 127 Feb 114 111 115 108 109 112 119 108 108 114 117 109 128 Mar 119 121 119 112 118 123 135 116 114 117 122 113 130 Apr 115 112 119 105 111 111 118 no 114 103 118 no 118 May . . 118 119 112 113 123 111 111 no no 129 NOT SEASONALLY ADJUSTED 1962 Mav no 108 '112 111 110 '112 111 '105 113 '103 110 105 108 105 102 102 102 104 103 97 106 105 96 117 July 96 87 86 84 95 94 106 92 94 88 105 102 112 104 96 94 92 99 103 109 101 103 106 111 1C8 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 212 225 216 202 211 210 219 201 201 197 203 193 232 1963—Jan 85 87 90 75 79 82 94 79 79 76 82 83 97 Feb 85 79 88 78 79 79 92 79 78 80 84 80 101 Mar 101 95 101 98 97 102 116 97 97 96 101 98 105 Apr . ..... . 112 112 111 104 111 112 121 109 107 '105 114 108 116 May P112 114 114 108 109 111 116 110 no 105 106 118 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 97 1959 103 104 104 103 101 104 101 103 99 101 103 104 107 I960 109 108 lie 105 113 108 107 108 103 108 109 106 114 1961 110 111 109 105 112 no 108 109 111 108 111 103 115 1962 117 116 115 112 116 118 118 119 117 112 113 112 125 SEASONALLY ADJUSTED 1962—May 117 115 '114 '113 117 116 '115 116 121 113 '116 114 127 118 115 113 112 117 119 115 121 117 114 114 115 128 July 119 118 113 113 117 119 120 122 117 113 115 114 127 118 115 116 113 116 117 116 123 116 115 115 112 126 Sept 118 114 116 112 117 117 119 122 115 115 111 no 127 O N c o t v 1 11 2 8 0 1 1 1 1 6 6 1 11 1 9 8 1 1 1 1 4 2 1 1 1 1 8 7 1 12 1 1 9 1 1 2 2 5 3 1 1 2 2 4 2 1 11 1 9 7 1 1 1 1 5 3 1 1 1 0 1 8 1 1 1 1 3 2 1 1 2 1 9 8 Dec 117 118 120 112 118 122 130 121 121 111 111 111 108 1963—Jan 120 119 116 113 125 121 129 120 117 111 111 113 128 Feb 119 119 116 109 121 119 126 119 120 112 114 113 127 Mar 120 119 115 108 119 119 123 121 118 113 117 113 129 Apr 120 120 118 no 122 121 122 119 121 114 118 114 128 May »122 120 120 no 120 117 125 124 119 115 J>120 119 NOT SEASONALLY ADJUSTED 1962—May 117 116 115 '115 118 118 '114 119 120 111 '115 125 112 109 106 106 111 113 107 117 111 104 109 108 123 julv 112 108 102 103 112 112 no 119 112 107 110 109 123 117 114 113 109 115 119 122 117 111 112 115 126 Sept 125 123 121 119 125 126 116 129 123 120 116 117 132 Oct 135 134 134 131 135 135 126 135 133 128 123 127 143 Nov 135 137 138 132 138 138 114404 136 135 131 126 128 129 Dec 110 110 112 102 109 112 115 108 108 104 103 103 118 1963—Jan 107 104 105 99 106 106 116 108 104 99 101 99 115 Feb 112 109 109 102 112 109 123 no 111 106 108 106 120 Mar 120 118 117 109 119 120 126 121 119 112 117 114 130 Apr 123 121 122 '114 123 124 125 125 124 113 121 117 129 May 121 121 112 121 119 124 127 119 113 "118 116 *>130 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

JULY 1963 DEPARTMENT STORES 1005 DEPARTMENT STORE MERCHANDISING DATA Amounts (millions of dollars) Ratios to sales Period Out- Out- Stocks stand- Re- New stand- plus Re- Sales Stocks ing ceipts orders Stocks ing outs. ceipts orders orders orders 1953 406 1,163 421 408 401 3.0 1.1 4.1 1954 409 1,140 388 410 412 3.0 1.0 4.0 1955 437 1,195 446 444 449 2.9 4.0 1956 454 ,286 470 459 458 3.0 4.1 1957 459 ,338 461 461 458 3.1 4.1 1958 462 ,323 437 462 464 3.0 4.1 1959 488 ,391 510 495 498 3.0 4.1 1960 494 ,474 518 496 493 3.1 4.3 1961 506 ,485 529 512 517 3.1 4.2 1962 526 ,593 571 535 533 3.2 4.4 1962—May. '505 ,571 r497 r487 '528 3.1 4.1 June. 472 ,509 679 410 590 3.2 4.6 July. 406 ,490 724 387 432 3.7 5.5 Aug.. 482 ,571 675 563 514 3.3 4.7 Sept. 493 ,700 706 622 653 3.4 4.9 Oct.. 556 ,845 666 701 661 3.3 4.5 Nov. 657 ,892 549 704 587 2.9 3.7 Dec. 998 ,505 385 611 447 1.5 1.9 1963—Jan.. 407 ,466 498 368 481 3.6 1.2 4.8 Feb.. 366 ,508 555 408 465 4.1 1.5 5.6 Mar. 467 ,616 507 575 527 3.5 1.1 4.5 Apr.. 512 ,653 459 549 501 r3.2 .9 4.1 M» 512 ,632 507 491 539 3.2 1.0 4.2 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 1962 sales on sales, stocks, and outstanding orders. were more than 40 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 PRICES JULY 1963 CONSUMER PRICES (1957-59= 100) Housing Read- Other Period it A em ll s Food Total Rent t e r G a l i n e c a c i d * t - y p S l f a e e u o u n t e l r m d i l o d s - H n i f n o i u s u g r h s - s - e- H o h p t o i o e o u l r n d s a e - - p A a p re - l T p t o r i a r o t n n a s - - M c ic a e a r d l e - s P c o a e n r r a e - l re t a i c i n n o r g e d n a- g s a i o e c n o r e v d d s - s 1929 59.7 55.6 85.4 56.6 56.2 1933 45.1 35.3 60.8 42.7 42.8 1941 51.3 44.2 61.4 64.3 88.3 45.2 54.4 53.3 51.9 51.2 50.6 47.6 57.3 58.2 1945 62.7 58.4 67.5 66.1 86.4 53.6 73.9 62.9 71.2 55.4 57.5 63.6 75.0 67.3 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 1960 103.1 101.4 103.1 103.1 107.0 99.5 100.1 104.8 102.1 103.8 108.1 104.1 104.9 103.8 1961 104.2 102.6 103.9 104.4 107.9 101.6 99.5 105.9 102.8 105.0 111.3 104.6 107.2 104.6 1962 105.4 103.6 104.8 105.7 107.9 102.1 98.9 107.4 103.2 107.2 114.2 106.5 109.6 105.3 1962—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 June 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 Aug. 105.5 103.8 104.8 105.8 108.0 100.1 98.5 107.4 102.5 107.4 114.6 106.8 110.3 105.5 Sept. 106.1 104.8 104.9 105.9 108.0 101.3 98.7 107.6 104.6 107.8 114.7 106.8 110.0 105.6 Oct.. 106.0 104.3 105.0 106.1 108.0 102.4 98.8 107.6 104.9 108.1 114.9 106.9 109.5 105.6 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 1963—Jan.. 106.0 104.7 105.4 106.3 108.2 104.9 97.9 109.3 103.0 106.6 115.5 107.4 110.2 105.7 Feb.. 106.1 105.0 105.4 106.4 108.0 104.8 98.3 109.3 103.3 106.8 115.6 107.3 110.0 105.7 Mar. 106.2 104.6 105.7 106.4 108.0 104.8 98.6 109.7 103.6 107.0 115.8 107.3 110.1 105.7 Apr.. 106.2 104.3 105.8 106.5 107.5 104.2 98.5 109.9 103.8 107.0 116.1 107.6 111.0 105.8 May. 106.2 104.2 105.7 106.6 107.4 102.4 98.4 110.0 103.7 107.4 116.4 107.8 110.7 106.0 NOTE.—Bureau of Labor Statistics index for city wage-earner and clerical-worker families. WHOLESALE PRICES: SUMMARY (1957-59- 100) Other commodities All Farm Proccom- prod- essed Non- Period modi- ucts foods Tex- Chem- Rub- Lum- Ma- Furni- me- Misties Total tiles, Hides, Fuel, icals, ber, ber, Paper,Metals chin- ture, tallic To- cellaetc. etc. etc. etc. etc. etc etc. ery etc. min- bacco neous erals 1954 92.9 104.4 97.6 90.4 100.6 89.9 94.6 97.3 87.6 97.6 88.8 84.3 83.2 93.9 88.8 93.8 110.5 1955 93.2 97.9 94.3 92.4 100.7 89.5 94.5 96.9 99.2 102.3 91.1 90.0 85.8 94.3 91.3 94.6 99.1 1956 96.2 96 6 94.3 96.5 100.7 94.8 97.4 97.5 100.6 103.8 97.2 97.8 92.1 96.9 95.2 95.1 98.1 1957 99.0 99.2 97.9 99.2 100.8 94.9 102.7 99.6 100.2 98.5 99.0 99.7 97.7 99.4 98.9 98.0 96.6 1958 100.4 103.6 102.9 99.5 98.9 96.0 98.7 100.4 100.1 97.4 100.1 99.1 100.1 100.2 99.9 99.7 101.S 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 96.9 100.0 101.3 101.5 105.2 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 96.0 100.7 100.8 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 1962 100.6 97.7 101.2 100.8 100.6 107.4 100.2 97.5 93.3 96.5 100.0 100.0 102.3 98.8 101.8 104.1 107.3 1962—May 100.2 96.2 99.6 100.9 100.7 107.2 99.7 97.7 93.2 97.1 100.8 100.2 102.3 99.0 102.1 104.1 106.0 100.0 95.3 99.8 100.7 100.8 108.0 99.6 97.6 93.0 97.3 100.5 99.8 102.4 98.9 101.9 104.1 105.4 July 100.4 96.5 100.8 100.8 100.9 107.5 100.0 97.2 92.7 97.5 100.0 99.7 102.3 98.8 101.6 104.0 107.6 Aug. 100.5 97.6 101.5 100.6 100.8 107.0 99.5 97.0 92.7 97.4 99.7 99.8 102.3 98.7 101.6 104.2 107.2 Sept 101.2 100.6 103.3 100.8 100.6 107.5 100.8 96.9 92.8 97.0 99.5 99.7 102.3 98.6 101.5 104.2 109.1 Oct 100.6 98.7 101.5 100.7 100.5 107.4 100.8 97.1 93.1 96.6 99.3 99.4 102.2 98.5 101.6 104.5 108.7 Nov 100.7 99.3 101.3 100.7 100.5 107.3 100.7 97.0 93.7 96.3 99.1 99.3 102.2 98.6 101.6 104.5 109.8 Dec 100.4 97.3 100.9 100.7 100.6 106.9 100.8 96.8 94.4 95.8 99.0 99.3 102.3 98.4 101.5 104.3 110.2 1963—Jan 100.5 98.5 100.8 100.7 100.4 106.0 100.4 96.9 94.3 95.9 99.0 99.5 102.3 98.3 101.4 104.3 111.6 Feb 100.2 96.5 100.5 100.6 100.3 105.1 100.3 96.7 94.2 96.1 99.1 99.4 102.2 98.2 101.5 104.3 111.5 Mar. 99.9 95.4 99.0 100.6 100.2 105.1 100.8 96.8 94.1 96.5 99.0 99.4 102.0 98.2 101.5 104.3 110.8 Apr . r99.7 95.4 '99.3 100.4 100.1 M04.5r100.3 96.5 94.1 97.0 99.0 99.4 r101.9 r98.1 101.5 104.4 108.0 Mav..... 100.1 94.4 101.5 100.5 100.0 104.8 100.4 96.5 93.2 97.5 99.1 99.9 102.2 98.0 101.3 105.2 107.6 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 PRICES 1007 WHOLESALE PRICES: DETAIL (1957-59=100) 1962 1963 1962 1963 Group Group May Mar. Apr. May May Mar. Apr. May Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce. 107.1 99.0 '99.6 99.8 Woodpulp 93.6 89.4 91.3 91.3 Grains 101.0 103.7 105.1 102.9 Wastepapcr 96.2 96.6 92.5 89.8 Livestock and poultry... 91.4 85.6 88.2 86.8 Paper 103.1 102.2 102.2 102.2 Plant and animal fibers.. 98.9 101.8 102.0 101.7 Paperboard 93.8 94.1 94.1 94.1 Fluid milk 96.7 99.6 '98.3 97.5 Converted paper and paperboard. 102.1 99.7 99.7 99.9 Eggs 75.3 99.8 81.3 77.1 Building paper and board 97.7 94.1 95.5 96.1 Hay and seeds 107.6 113.8 110.7 112.5 Other farm products.... 93.4 89.0 89.4 89.5 Metals and Metal Products: Processed Foods: Iron and steel 99.2 98.4 98.5 99.3 Nonferrous metals 99.9 98.1 98.2 98.7 Cereal and bakery products 107.4 108.0 108.1 107.6 Metal containers 103.7 104.5 104.5 104.6 Meat, poultry, and fish 95.5 91.8 '90.3 91.8 Hardware 104.1 103.9 103.9 103.9 Dairy products and ice cream 104.5 107.1 106.9 106.5 Plumbing equipment , 103.8 101.3 100.8 100.8 Ca e n t n ab ed le s and frozen fruits, and veg- 98.6 101.3 102.9 103.4 F H a e b a r t i i c n a g t e e d q u s i t p ru m c e tu nt ral metal products, 9 9 8 3 . . 3 1 9 9 7 2 . . 8 6 9 9 2 7 . . 9 6 9 9 8 2 . . 1 9 Sugar and confectionery 102.1 106.1 113.9 133.6 Fabricated nonstructural metal prod- A Pa n c i k m a a g l e d fa t b s e v an er d a g o e il s materials 8 8 2 7 . . 6 7 7 8 9 0 . . 1 0 ' r7 8 9 0 . . t 9 8 7 0 7 . . 9 2 ucts 104.1 103.7 103.8 104.0 Crude vegetable oils 87.1 83.8 83.3 84.5 Refined vegetable oils 89.9 90.0 84.1 85.8 Machinery and Motive Products: Vegetable oil and products 101.9 90.5 87.2 87.0 Miscellaneous processed foods 100.7 101.5 101.4 100.6 Agricultural machinery and equip... 109.3 111.0 110.9 110.9 Construction machinery and equip... 107.7 108.8 108.8 109.2 Textile Products and Apparel: Metal working machinery and equip.. 109.5 109.1 109.4 109.4 General purpose machinery and Cotton products 102.1 100.2 100.1 99.7 equipment 103.2 103.4 103.4 103.5 Wool products 98.9 100.8 100.8 100.5 Miscellaneous machinery 103.1 103.7 103.4 103.3 Man-made fiber textile products 94.5 93.8 93.8 93.8 Special industry machinery and equip- Silk products 126.4 150.9 150.9 144.4 ment (Jan. 1961= 100) 101.8 103.1 103.9 103.9 Apparel 101.4 101.4 101.3 101.3 Electrical machinery and equip 98.6 97.1 97.0 97.7 Other textile products 119.7 114.9 116.3 118.2 Motor vehicles 100.1 100.3 '99.8 100.2 Transportation equip., RR. rolling Hides, Skins, Leather, and Products: stock (Jan. 1961= 100) 100.5 100.5 100.5 100.5 Hides and skins 105.4 88.4 85.0 87.4 Furniture and Other Household Dura- L Fo ea o t t h w e e r ar 1 1 1 0 0 8 . . 6 7 1 1 0 0 3 8 . . 7 3 r1 1 0 0 8 2 . . 2 8 1 1 0 0 3 8 . . 2 2 bles: Other leather products. 101.7 104.7 r104.5 104.5 Household furniture 103.7 104.6 104.4 104.4 Commercial furniture 102.2 102.3 102.3 102.3 Fuels and Related Products, and Power: Floor coverings 97.0 96.0 95.9 95.7 C C G o o a k s a l e fuels (Jan. 1958= 100) 1 1 9 1 0 4 6 3 . . . 6 6 6 1 1 9 0 2 8 3 7 . . . 1 6 8 r1 1 '9 2 0 5 4 3 . . . 0 1 6 1 1 9 2 0 4 0 3 . . . 1 0 6 T O H e t o l h u e e v s r e i s h h i o o o l n u d , s e r a h a p o d p l i l d o i a s d n , u c a e r n a s d b l p e h g o o n o o d g s raphs. 1 9 9 0 4 2 3 . . . 3 3 2 1 9 8 0 2 9 2 . . , 3 4 8 1 '9 8 0 2 9 3 . . . 1 4 0 1 9 8 0 2 8 3 . . . 9 0 1 Electric power (Jan. 1958= 100) 102.9 102.4 102.4 102.1 Petroleum products, refined 97.9 98.2 98.2 99.1 Nonmetallic Mineral Products: Chemicals and Allied Products: Flat glass 98.0 96.6 96.6 96.6 Concrete ingredients 103.2 103.0 103.0 103.0 Industrial chemicals 96.3 95.4 95.3 95.3 Concrete products 102.5 102.2 102.2 101.9 Prepared paint 103.8 103.7 103.7 103.0 Structural clay products.... 103.6 103.6 '103.8 103.8 Paint materials 96.4 93.0 91.5 Gypsum products 105.0 105.0 105.0 105.0 Drugs and Pharmaceuticals 97.0 95.2 '95.1 Prepared asphalt roofing.... 99.0 94.1 94.1 92.8 Fats and oils, inedible. 77.1 74.5 77.7 Other nonmetallic minerals. 102.0 101.5 101.4 101.4 Mixed fertilizers 103.9 103.6 r103.7 103.6 Fertilizer materials 103.6 102.3 102.3 102.3 Tobacco Products ami Bottled Bev- Other chemicals and products 99.4 99.5 98.6 98.6 erages: Rubber and Products: Tobacco products 102.0 102.2 '102.3 104.5 Alcoholic beverages 101.1 101.1 101.1 101.1 Crude rubber 94.9 92.7 92.8 92.6 Nonalcoholic beverages. 116.7 117.4 117.4 117.4 Tires and tubes 86.4 89.0 89.0 89.1 Miscellaneous rubber products 99.4 99.8 99.8 97.5 Miscellaneous Products: Kumber and Wood Products: Toys, sporting goods, small arms. .. 100.5 100.5 100.7 100.7 Manufactured animal feeds 108.2 117.1 111.9 111.2 Lumber 97.5 96.6 97.6 98.4 Notions and accessories 98.7 98.7 98.7 98.7 Millwork 101.8 102.5 102.4 102.4 Jewelry, watches, photo equipment.. 104.1 103.9 103.8 103.9 Plywood 92.2 91.2 91.0 90.9 Other miscellaneous products 100.9 101.7 101.4 101.4 NOTE.—Bureau of Labor Statistics Index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 NATIONAL PRODUCT AND INCOME JULY 1963 GROSS NATIONAL PRODUCT OR EXPENDITURE (In billions of dollars) 1962 r 1963r Item 1929 1933 1941 1950 1958 1959 1960 r 1961r 1962 r I II HI IV I Gross national product 104.4 56.0 125.8 284.6 444.5 482.7 502.6 518.2 554.9 544.5 552.4 556.8 565.2 571.8 Persona! consumption expenditures 79.0 46.4 81.9 195.0 293.2 313.5 328.2 336.8 355.4 348.8 352.9 356.7 362.9 367.4 Durable goods 9 2 3 5 9.7 30.4 37.3 43.6 44.9 43.6 48.2 47.3 47.5 47.7 50.5 50.6 Nondurable goods 37.7 22.3 43.2 99.8 141.6 147.1 151.8 155.1 161.4 158.9 160.6 162.5 163.6 165.3 Services. 32.1 20.7 29.0 64.9 114.3 122.8 131.5 138.0 145.7 142.6 144.8 146.6 148.9 151.4 Gross private domestic investment 16.2 1.4 18.1 50.0 56.6 72.7 71.8 69.0 78.8 77.3 79.6 78.9 78.8 77.8 New construction 8 7 1 4 6 6 24.2 35.5 40.2 40.7 41.6 44.4 41.7 44.5 46.0 45.0 43.7 Residential, nonfarm 3.6 .5 3.5 14.1 18.0 22.3 21.1 21.0 23.2 21.2 23.3 24.2 23.7 22.7 Other 5.1 1.0 3.1 10.1 17.4 17.9 19.7 20.5 21.2 20.5 21.2 21.7 21.2 21.0 Producers' durable equipment 5.9 1.6 6.9 18.9 23.1 25.9 27.6 25.5 28.8 27.4 28.7 29.3 29.9 29.0 Change in business inventories 1.7 -1.6 4.5 6.8 -2.0 6.6 3.5 1.9 5.5 8.1 6.5 3.6 4.0 5.1 Nonfarm only 1.8 -1.4 4.0 6.0 -2.9 6.5 3.2 1.5 4.9 7.6 5.8 2.8 3.2 4.3 Net exports of goods and services .8 1.1 .6 1.2 -.8 3.0 4.4 3.8 3.3 4.4 4.1 3.3 3.6 7 0 2^4 6.0 13.1 22.7 22.9 26.3 27.5 28.9 27.9 29.5 29.4 28.8 28.6 Imports 6.3 2.3 4.8 12.5 21.5 23.6 23.3 23.1 25.1 24.6 25.0 25.3 25.5 24.9 Government purchases of goods and services.. 8.5 8.0 24.8 39.0 93.5 97.2 99.6 107.9 117.0 115.1 115.5 117.0 120.2 123.0 Federal / 3 2 0 16 9 19.3 52.6 53.6 55.7 57 4 62.4 61.8 61.9 62.4 63.6 65.5 Other 1 \ 11 'i0 2.0 \ S 13 3 . . 8 2 1 5 4 . . 2 3 4 8 4 . . 3 8 4 7 6 . . 9 2 4 8 5 . . 0 7 4 8 9 . . 9 0 5 1 3 0 . . 3 0 5 9 2 . . 9 5 5 9 2 . . 8 9 5 9 3 . . 7 5 5 1 4 0 . . 3 4 5 1 6 0 . . 4 1 Less: Government sales .1 .5 .5 .6 .6 .8 .7 .8 .8 1.1 1.0 State and local 7.2 6.0 7.8 19.7 40.8 43.6 46.5 50.6 54.6 53.3 53.6 54.6 56.6 57.5 Gross national product in constant (1954) dollars. 181.8 126.6 238.1 318.1 401.3 428.6 439.9 447.7 474.8 467.8 474.0 475.6 481.4 485.3 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 1963 Survey of Current Business. NATIONAL INCOME (In billions of dollars) 1962 r 1963r Item 1929 1933 1941 1950 1958 1959 1960r 1961 r 1962 r I II III IV I National income 87.8 40.2 104.7 241.9 367.4 400.5 414.5 426.1 453.7 444.7 452.4 455.5 462.2 466.7 Compensation of employees 51.1 29.5 64.8 154.2 257.1 278.5 293.6 302.1 322.9 316.0 322.5 325.3 327.7 332.0 Wages and salaries.... .. 50.4 29.0 62.1 146.4 239.8 258.5 271.3 278.8 297.1 290 7 296.8 299.4 301.5 304.5 Private 45.5 23.9 51.9 124.1 196.6 213.1 222.9 227.0 241.6 236.1 241.7 244.7 246.7 Military .3 .3 1.9 5.0 9.8 9.9 9.9 10.2 10.8 11.1 11.0 10.7 10.5 10.7 Government civilian 4.6 4.9 8.3 17.3 33.5 35.4 38.5 41.6 44.7 43.6 44.1 45.0 46.3 47.1 Supplements to wages and salaries .7 .5 2.7 7.8 17.3 20.1 22.3 23.3 25.7 25.2 25.7 25.9 26.2 27.5 Employer contributions for social insurance .1 .1 2.0 4.0 8.0 9.7 11.3 11.9 13.7 13.4 13.7 13.8 13.8 15.0 Other labor income .6 .4 .7 3.8 9.4 10.4 11.0 11.4 12.1 11.8 12.0 12.2 12.3 12.4 Proprietors* income....... 14.8 5.6 17.4 37.5 46.1 46.5 46.2 48.1 49.8 49.5 49.6 49.8 50.3 50.7 Business and professional 8.8 3.2 10.9 23.5 32.5 35.1 34.2 35.3 36.5 36.0 36.5 36.6 36.9 37.2 Farm 6.0 2.4 6.5 14.0 13.5 11.4 12.0 12.8 13.3 13.5 13.1 13.2 13.4 13.5 5.4 2.0 3.5 9.0 12.2 11.9 12.1 12.1 12.0 12.0 12.0 12.0 12.0 12.0 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 37.2 47.2 44.5 43.8 47.0 46.1 46.5 46.1 49.3 48.8 Profits before tax 9.6 .2 17.0 40.6 37.4 47.7 44.3 43.8 46.8 45.9 46.7 46.2 48.4 48.3 Profits tax liability 1.4 .5 7.6 17.9 18.6 23.2 22.3 22.0 22.2 21.7 22.1 21.9 22.9 22.9 Profits after tax 8.3 — .4 9.4 22.8 18.8 24.5 22.0 21.8 24.6 24.2 24.6 24.3 25.5 25.4 Dividends 5.8 2.1 4.5 9.2 12.4 13.7 14.5 15.3 16.6 16.2 16.4 16.5 17.1 17.1 2.4 -2.4 4.9 13.6 6.4 10.8 7.5 6.5 8.1 8.0 8.2 7.8 8.4 8.3 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 — .3 -.5 .2 .2 .1 -.2 -.1 .9 .4 Net interest 6.4 5.0 4.5 5.5 14.8 16.4 18.0 20.0 22.0 21.2 21.7 22.3 23.0 23.3 f 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

JULY 1963 NATIONAL PRODUCT AND INCOME 1009 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING (In billions of dollars) 1962 r 1963r Item 1929 1933 1941 1950 1958 1959 I960' 1961r 1962 r I n III IV I Gross national product 104 4 56 0 125 8 284 6 444 5 482 7 502 6 518 2 554 9 544 5 552.4 556.8 565.2 571.8 Less: Capital consumption allowances 8.6 7.2 9.0 19.1 38.6 41.0 43.0 44.3 49.4 48.5 49.2 49.7 50.1 50.6 Indirect business tax and nontax liability 7.0 7.1 11.3 23.7 39.3 42.6 46.4 49.1 53.0 52.0 52.7 53.3 54.1 55.2 Business transfer payments .6 .7 .5 .8 1.8 2.1 2.2 2.3 2.3 2.3 2.3 2.3 2.3 2.3 .3 .9 .4 — .7 — 1.5 — 3 0 3.0 1.9 -1.8 -.9 -2.5 -2.6 -1.9 -2.3 Plus: Subsidies less current surplus of gov- -.1 .1 .2 1.1 .4 .5 1.7 1.7 2.2 1.7 1.4 1.6 .7 87.8 40.2 104.7 241 9 367.4 400 5 414.5 426.1 453.7 444.7 452.4 455.5 462.2 466.7 Less: Corporate profits and inventory valuation adjustment . 10.1 -2.0 14.5 35.7 37.2 47.2 44.5 43.8 47.0 46.1 46.5 46.1 49.3 48.8 Contributions for social insurance .2 .3 2.8 6.9 14.8 17.6 20.6 21.4 23.9 23.5 23.9 24.0 24.2 26.5 Plus: Government transfer payments .9 1.5 2.6 14.3 24.5 25.4 27.3 31.3 32.5 32.1 32.1 32.3 33.6 34.7 Net interest paid by government 1.0 1.2 1.3 4.8 6.2 7.1 7.8 7.7 8.0 7.8 7.9 8.1 8.2 8.3 5.8 2.1 4.5 9.2 12.4 n 7 14.5 15.3 16.6 16.2 16.4 16.5 17.1 17.1 Business transfer payments 6 7 5 8 1 8 2 1 2 2 2 3 2 3 2 3 2.3 2.3 2.3 2.3 Equals * Personal income ... 85 8 47 2 96 3 228 5 360 3 383 9 401 3 417 4 442 1 433 5 440 7 444 5 449.9 453.9 Less: Personal tax and nontax payments 2.6 7.5 3.3 20.8 42.3 46.8 51.4 52.9 57.7 56.2 57.9 55.7 58.5 59.4 Federal 1.3 .5 2.0 18.2 36.6 40.4 44.0 45.1 49.0 47.7 49.3 49.4 49.7 50.0 State and local 1 4 1 0 1 3 2 6 s 7 6 4 7 3 7 8 8 7 8 5 8 6 8 7 8 8 9.4 Equals: Disposable personal income 83.1 45 7 93 0 207 7 317.9 3V7 1 349 9 364 4 384.4 377.3 382.7 386.5 391.4 394.5 Less: Personal consumption expenditures 79.0 46.4 81 .9 195.0 293.2 313.5 328.2 336.8 355.4 348.8 352.9 356.7 362.9 367.4 Equals: Personal saving 4.2 - .6 11.1 12.6 24.7 23.6 21.7 27.6 29.1 28.5 29.8 29.7 28.5 27.1 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 296.3 310.7 317.8 328.4 343.6 338.6 342.6 345.1 348.2 349.5 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. Se« also NOTE to table at top of previous PERSONAL INCOME (In billions of dollars) 1962 ' 1963 r Item 1961' 1962 r May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May*3 Total personal income. 417.4 442.1 440.8 441.7 443.5 444.6 445.5 447.7 449.9 452.1 M54.0 452.9 454.8 457.4 460.1 Wage and salary disbursements..... 278.8 297.1 296.8 297.6 299.0 299.4 299.8 300.1 507.5 302.9 302.8 304.7 306.1 308.7 577.2 Commodity-producing industries... 110.8 118.5 119. 119.0 119.5 119.6 119.5 119.4 119.9 119.6 119.5 120.1 120.9 122.5 123.8 Manufacturing only 87.5 94.2 94.7 95.0 95.0 95.1 95.0 94.6 95.0 94.9 94.7 95.5 96.3 97.2 98.4 Distributive industries 72.9 76.6 76.4 76.6 77.0 77.1 77.6 77.4 77.5 78.4 77.9 78.6 78.7 79.2 79.7 Service industries 43.4 46.4 46.2 46.7 47.1 47.1 46.8 47. 47.3 47.7 47.8 48.3 48.5 48.7 49.1 Government 51.8 55.6 55. 55.3 55.4 55.6 55.9 56.3 56.9 57.3 57.6 57.8 58.0 58.3 58.6 Other labor income. 11.4 12.1 12.0 12.0 12.1 12.2 12.2 12.3 12.3 12.4 12.3 12.5 12.5 12.5 12.6 Proprietors' income 48.1 49.8 49.6 49.6 49.8 49.8 49.9 50.7 50.4 50.5 50.7 50.7 50.5 50.7 50.0 Business and professional. 35.3 36.5 36.5 36.5 36.6 36.6 36.6 36.8 37.0 37.0 37.1 37.2 37.2 37.3 37.4 Farm 12.8 13.3 13. 13.1 13.2 13.2 13.3 13.3 13.4 13.5 13.6 13.5 13.3 12.8 12.6 Rental income 12.1 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 Dividends 15.3 16.6 16.5 16.4 16.4 16.4 16.6 16.8 16.9 17.7 17.0 17.2 17.2 17.3 17.3 Personal interest income. 27.7 30.0 29.6 29.9 30.1 30.3 30.6 30.9 31.1 31.3 31.5 31.7 31.8 31.9 32.1 Transfer payments 33.6 34.8 34.4 34.2 34.4 34.8 34.7 35.8 36.0 35.7 139.1 35.7 36.2 36.4 32.1 Less: Personal contributions for social insurance 9.5 10.2 10.2 10.2 10.3 10.3 10.2 10.4 10.3 10.3 11.4 11.5 11.5 11.6 11.7 Nonagricultural income. 400.3 424.5 423.3 424.2 426.0 427.2 428.1 430.1 432.0 434.1 1435.9 434.9 437.0 440.5 444.1 Agricultural income.... 17.1 17.6 17.6 17.5 17.4 17.4 17.4 17.6 17.8 18.0 18.1 18.0 17.8 17.3 17.1 i Includes stepped-up rate of Govt. life insurance payments to veterans NOTE.—Dept. of Commerce estimates. Monthly data are seasonally and a special dividend to all W.W. II veterans holding NSLI policies; adjusted totals at annual rates. See also NOTE to table at top of previous disbursements amounted to $3.6 billion. page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 FLOW OF FUNDS/SAVING JULY 1963 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1960 1961 1962 Transaction category, 1958 1959 1960 1961 1962 or sector m IV I II IV I II III IV I. Saving and investment 94.1 115.6 120.4 117.0 128.6 114.9 106.0 116.4 119.4 126.1 126.3 132.6 124.8 130.7 A B Consumer and nonprofit 68.0 73.9 72.4 76.8 82.6 72.1 71.4 76.0 78.1 81.8 82.3 82.1 82.9 83.1 B C Farm and noncorp. business 11.9 12.4 12.7 12.7 13.1 12.7 12.6 12.7 12.8 13.0 12.9 13.1 13.1 13.1 C D Corporate nonfin. business 25.0 35.6 31.5 35.0 40.3 28.8 28.2 34.2 36.2 41.2 40.6 40.3 37.8 42.6 D E U.S. Government -7.9 -4.5 4.3 -5.2 -3.7 1.5 -5.1 -5.4 -5.1 -5.2 -5.9 1.0 -4.5 -5.5 E F State and local govt -5.0 -4.0 -3.4 -4.5 -5.3 -4.2 -4.3 -3.9 -4.2 -5.6 —4.8 -4.8 -5.7 -6.1 F G Financial sectors.... 2.1 2.1 2.9 2.1 1.7 4.0 3.1 2.8 1.7 .9 1.1 .9 1.3 3.5 G H Gross national investment 94.2 114.6 117.9 114.7 125.0 112.7 104.4 111.2 118.8 124.4 125.5 125.9 123.9 124.9 H I Consumer durable goods 37.3 43.6 44.8 43.7 47.5 44.0 40.8 43.5 44.0 46.6 46.3 47.2 47.1 49.6 I J Business inventories -2.0 6.6 4.1 2.1 3.2 -1.1 -3.6 2.1 4.0 6.0 6.7 4.0 1.0 1.2 J K Gross pvt. fixed investment 58.5 66.2 68.3 67.0 73.0 67.6 63.7 65.5 68.4 70.6 69.2 72.6 75.3 74.9 K L Consumer and nonprofit 18.1 22.1 21.6 20.1 21.0 21.6 20.2 18.7 19.7 21.7 21.4 19.5 21.3 21.9 L M Nonfin. business.... 39.7 43.3 45.8 46.1 51.2 45.1 42.7 45.9 47.9 48.0 46.9 52 3 53 2 52.2 M N Financial sectors .7 .8 .8 .8 .8 .8 .8 8 8 8 s 8 8 8 N O Net financial investment .3 -1.7 .7 1.8 1.2 2.2 3.4 .1 2.4 1.2 3.4 2.0 .5 —.9 O P Discrepancy (A-H) * 1.0 2.5 2.3 3.6 2.2 1.6 5.2 .6 1.7 .8 6.7 1.0 5.8 P II. Financial flows—Summary A Net funds raised—Nonfin. sectors... 42.8 52.8 36.2 46.3 57.7 33.9 30.1 44.6 55.7 54.8 59.2 63.1 42.3 66.3 A B Loans and short-term securities.... 3.3 19.2 7.8 19.3 21.2 .2 26.9 17.3 4.2 28.9 33.2 19.6 -5.7 37.8 B C Long-term securities and mtgs 39.5 33.5 28.4 27.0 36.5 33.7 3.2 27.3 51.5 25.9 26.0 43.5 48.0 28.4 C By sector D U. S. Government 8.6 8.7 -2.2 7.4 6.8 -2.4 .5 9.3 15.2 4.8 14.6 8.0 -4.3 9.1 D E Short-term securities -1.2 5.5 -5.1 11.3 5.6 -10.8 22.0 16.6 -4.6 11.4 22.1 4.1 -18.6 14.7 E F Other securities 9.5 3.8 2.4 -4.1 1.1 8.2 -22.1 -7.1 20.8 -8.1 —8.3 4 0 16 3 -7 8 F G Foreign borrowers 2.3 .8 2.0 2.7 2.3 3.1 2.8 -.1 3.1 4.8 3.8 1.6 -.4 4.1 G H Loans 1.1 .2 1.4 1.9 1.3 2.4 2.6 -1.0 2.4 3.7 3.4 — .8 2.4 H I Securities 1.3 .7 .7 .8 1.0 .6 .2 .9 .7 1.1 .4 1.4 5 1.7 I J Pvt. domestic nonfin. sectors 31.9 43.2 36.4 36.2 48.6 33.3 26.8 35.4 37.4 45.2 40.9 53.5 47.0 53.1 J K Loans 3.1 14.1 11.0 5.8 14.2 8.4 1.7 1.9 7.3 12.3 6.9 15.3 15.7 18.6 K L Consumer credit .1 M Bank loans n.e.c 1.8 5.6 2.9 2.3 4.0 N Other loans 1.1 2.4 3.7 2.2 5.5 3.6 1.0 2.0 4.7 .8 1.6 4.6 6.4 2.6 N O Securities and mortgages 28.8 29.1 25.3 30.4 34.5 24.9 25.1 33.5 30.1 32.9 33.9 38.2 31.3 34.5 O e tr Q Corporate securities 8.0 5.4 5.4 7.0 4.7 5.9 5.0 12.3 6.0 4.7 4.7 7.0 3.8 3.5 Q 10.1 13.2 10.4 12.1 15.7 10.0 10.2 11.8 12.4 14.2 13.5 16.0 15.6 17.6 R S Other mortgages 5.2 5.8 5.8 6.1 8.6 5.4 5.5 5.5 6.0 7.3 8.0 9.1 8.7 8.8 S T Net sources of credit (** A) 42.8 52.8 36.2 46.3 57.7 33.9 30.1 44.6 55.7 54.8 59.2 63.1 42.3 66.3 T U Chg. in U.S. Govt. cash bal .6 .8 .1 1.2 -1.5 -5.3 2.5 5.8 -2.7 3.9 6.5 -4.6 -1.2 U V U.S. Govt. lending 3.8 2.4 2.8 3.5 2.8 1.9 -.7 4.9 5.1 3.5 4.2 1 9 4.5 V W Foreign funds 3.2 3.6 3.2 2.5 2.4 5.9 2.9 -.7 3.8 4.1 2 6 2 2 1 7 2 9 W X Pvt. insur. and pension reserves.. 7.8 8.8 8.2 8.7 8.9 7.5 7.7 7.5 9.2 10.2 8.6 9.7 9.8 7.7 X Y Sources n.e.c 5.2 5.1 6.8 5.2 5.3 5.9 1.8 1.3 12.9 4.9 1.5 2 0 8 8 9.1 Y Z Pvt. Domestic nonfin. sectors.. 24.8 30.7 14.8 27.1 36.4 13.3 21.1 34.7 19.2 33.2 39.0 38.5 24.7 43.3 Z AA Deposits and U.S. Govt. secur.. . 17.5 24.0 7.8 23.1 31.2 9.3 15.7 26.8 19.1 30.8 26.1 32.2 25.9 40.7 AA AB Deposits.. 20.6 10.8 13.7 24.1 29.8 21.2 24.4 25.9 19.3 26 8 24 8 26 5 25 2 42 6 AB AC Demand dep. and curr 4.9 .3 -1.3 4.0 1.2 1.0 1.2 3.7 2.2 8.8 -10.7 .6 2.4 12.5 AC AD Time and svgs. accounts.... 15.7 10.5 15.1 20.2 28.6 20.2 23.3 22.2 17.1 18.1 35.4 25.9 22.8 30.2 AD 7.0 2.2 5.5 8.8 15.3 9.4 12.1 10.9 6.5 5.7 23.0 13.7 9.8 14.9 AE AF At savings instit 8.7 8.4 9.6 11.4 13.2 10.8 11.2 11.3 10.6 12.4 12.4 12 2 13 0 15.3 AF AG U. S. Govt. securities -3.1 13.2 -5.9 -1.0 1.5 -11.9 -8.8 .9 -.2 4.0 1.4 5.7 .7 -1.9 AG AH Other securities and mtgs 8.2 6.9 6.8 5.2 4.9 3.7 5.6 11.0 .6 3.8 12.5 2.4 1.7 2.9 AH AI Less security debt .9 .2 1.3 -.3 3.0 .6 1.4 -.4 -3.9 2.8 .3 AI III. Financial institutions A Net funds advanced—Total 37.6 30.2 34.5 44.1 51.0 42.4 32.5 40.2 54.9 48.8 42.7 48.4 44.1 68.7 A B U. S. Govt. securities 11.3 -6.9 2.8 7.9 4.1 8.5 8.1 9.3 15.2 -1.1 11 7 1 —4 1 8 6 B C Other securities and mtgs 23.2 23.1 20.8 27.9 33.1 24.1 22.0 26.0 31.3 32.3 24.7 40 7 31 4 35 8 C D Loans 3.1 14.0 11.0 8.3 13.8 9.8 2.5 4.9 8.3 17.6 6.2 7.6 16.8 24.3 D By sector E Banking system. ... 17.5 4.9 10.0 17.5 20.8 17.2 11.8 15.6 24.9 17.5 19.8 19.0 10.7 33.4 E F Savings institutions 9.3 10.7 9.3 12.0 14.5 10.6 11.3 10.9 11.7 14.1 13 7 12 9 15 3 16 0 F G Insurance and pension funds 9.0 10.1 10.2 10.7 11.0 10.3 10.1 9.2 11.0 12.6 9 9 11 1 11 4 11 7 G H Finance n.e.c 1.9 4.5 5.0 3.9 4.7 4.3 -.8 4.5 7.3 4.6 -.8 5.4 6 7 7 6 H I Net sources of finds—Total 37.6 30.2 34.5 44.1 51.0 42.4 32.5 40.2 54.9 48.8 42.7 48.4 44.1 68.7 I J Gross saving 2.1 2.1 2.9 2.1 1.7 4.0 3.1 2.8 1.7 .9 1 1 9 1 3 3 5 J K Deposit claims 22.6 10.6 15.3 26.5 32.3 21.2 21.0 29.6 28.5 27.0 31.6 32.6 20.5 44.3 K L Demand deposits and curr . 5.7 1.1 * 5.5 3.4 .6 -2.0 6.2 10.1 7.8 -3.5 6.4 -2.1 12.8 L N M O Ti t m he e r d s e a p v . i n a g t s c a o c m co m u . n b ts anks 8 8 . . 0 9 8 1. . 2 4 95..58 1 9 1 . . 4 5 1 1 5 3 . . 6 3 1 9 0 . . 7 9 1 1 1 1 . . 8 2 1 1 1 1 . . 9 5 1 7 0 . . 8 6 1 6 2 . . 3 9 2 1 2 2 .4 7 1 1 3 2 .4 8 1 9 3 .0 6 1 1 6 5 .3 2 M N O Life insurance reserves 3.3 3.6 3.5 3.7 4.3 3.4 3.7 3.3 4.0 3 9 4 7 4 9 4 8 3 0 O P Pension fund reserves 4.4 5.2 4.7 4.9 4.6 4.2 4.0 4.2 5.2 6.3 4 0 4 9 4 9 4 7 P Q Credit market instruments .5 5.9 3.5 3.7 5.7 3.4 .1 2.6 6.0 6.2 4.2 7.2 6.9 R Investment co. shares 1.6 1.8 1.5 2.0 1.9 1.3 1.6 1.5 2.0 2.7 3 3 2 1 1 3 8 R S Corporate bonds .1 1.0 1.4 .8 .8 1.9 .9 1.3 .2 .9 * 1.2 3 18 S T Loans -1.2 3.0 .4 .8 2.9 .1 -2.5 -.2 3.8 2.1 6 3 8 5 3 18 T U Security credit .6 * .5 .9 1.1 1.2 -1.3 2.2 1.0 1.6 — 1 9 — 7 1 i 5 8 U V Other sources net 4.1 2.7 4.1 2.2 1.4 5.0 1.9 -4.5 8.4 3.0 -.9 -1.2 4.6 3.1 V NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Apr. 1963 BULL., p. 545. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 FLOW OF FUNDS/SAVING 1011 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1960 1961 1962 Transaction category, 1958 1959 1960 1961 1962 or sector IV I II III IV I II III IV I. Demand deposits and currency 5.7 1.1 • 5.5 3.4 .6 2 0 6 2 10 1 7 8 3 5 6 4 -2.1 12.8 A B U. S. Govt. deposits .1 .6 .8 1.2 -1.5 -5.3 2.5 5.8 -2.7 3.9 6.5 -4.6 — 12 B C Other 5.6 .4 -.8 5.5 2.2 2.0 3.3 3.6 4.3 10.5 -7.4 -.2 2.5 13.9 C D Net increase in assets, by sector.... 6.3 .2 .2 4.8 3.3 .6 -1.8 4.5 11.6 4.9 -.7 4.3 -1.1 10.8 D E U. S. Govt .1 .7 .9 .3 1.3 -1.5 -5.7 1.1 9.0 -3.1 3.4 6.0 -3.0 -14 E F Other domestic sectors 6.1 «j -.6 4.1 1.9 1.3 2.9 4.3 2.2 7.0 -6.0 -.8 3.0 11.6 F G Consumer and nonprofit 2.5 1.0 .3 1.1 3.1 2.0 5.0 1.7 1.3 -3.4 2.1 2.1 .2 7 9 G 2.7 -2.2 -1.7 1.2 -2.0 -1.6 -2.7 -.3 .9 6.8 -6.2 -4.8 -.6 3 6 H I State and local govts .2 .5 .2 .6 .7 -.7 1 9 -1 6 2.6 — 3 2 1 7 2 1 11 I J Financial sectors .7 .1 .5 1.2 1.0 .2 1.4 1.1 1.5 .9 1.2 .2 1.2 13 J K Rest of the world * .1 * .4 .1 .8 .9 -.9 .4 1.0 2.0 -.9 -1.1 .5 K L Discrepancy—U.S. Govt cash * -.1 -.1 -.3 -.1 .1 .4 1.5 -3.2 .3 .5 5 -1 6 2 L M Other -.5 .9 -.2 1.0 .2 -.1 -.5 .2 1.8 2.5 -3.3 1.5 .6 1 8 M II. Time and savings accounts A Net increase—Total 16.9 9.6 15.3 21.0 28.9 20.6 22.9 23.4 18.4 19.2 35.1 26 2 22.6 31 5 A B At commercial banks—Total 8.0 1.2 5.8 9.4 15.6 9.7 11.8 11.9 7.8 6.3 22.7 13.8 9.6 16 2 B .9 — 4 .8 1.3 2.6 2.0 5.6 1.2 .8 -2.4 4.8 2.6 .6 2.3 C D State and local govts .8 -.4 1.4 .9 1.0 2.1 1.0 .9 .9 .9 2.1 .3 .4 1.3 D E Foreign depositors .9 — .9 .3 .6 .3 .3 -.3 7 1 3 6 _ 5 2 1 14 E F Consumer and nonprofit 5.3 3.0 3.3 6.6 11.7 5.3 5.5 8.8 4.8 7.2 16.0 10.8 8.8 11.3 F G At savings institutions 8.9 S.4 9.5 11.5 13.3 10.9 11.2 11.5 10.6 12.9 12.4 12.4 13.0 15.3 G H Memo—Consumer and nonprofit organ.—Total 14.0 11.3 12.9 18.0 25.0 16.1 16.7 20.1 15.4 19.6 28.5 23.0 21.8 26.7 H III. U.S. Govt. securities A Total net issues 8.3 9.3 -2.7 7.2 6.6 -2.7 -.1 9.5 16.1 3.3 13.8 8.1 -2.3 6 9 A B Short-term direct -1.2 5.5 -5.1 11.3 5.6 -10.8 22.0 16.6 -4.6 11.4 22.1 4.1 -18.6 14.7 B C Other 9.5 3.8 2.4 -4.1 1.1 8.2 -22.1 -7.1 20.8 -8.1 -8.3 4.0 16.3 —7 8 C D Nftt acGuisitions bv sector 8.3 9.3 -2.6 7.2 6.7 -2.6 — .1 9 5 16 1 3.3 13 8 8 2 2 3 7 2 D -3.1 13.2 -5.9 -1.0 1.5 -11.9 -8.8 .9 2 4.0 1.4 5.7 .7 -1.9 E F Consumers and nonprofit.... -2.5 7.0 -3.1 -.4 .4 -8.0 -7.9 -4.1 5.2 5.3 -3.8 3.3 3.1 -1.0 F G Svgs. bds. and postal svg. dep... -.7 -2.0 — .4 .7 .3 .5 .3 .5 .8 1.2 -./ J .6 6" G H Securities -1.8 9.0 -2.7 -1.0 .1 —8.6 -8.1 -4.6 4.4 4.2 —3 6 3 2 2 5 — 1 6 H I Corp. nonfin business -.2 4.4 -3.1 -.8 -.4 -3.3 -1.5 4.0 -5.0 -.8 1 5 .5 -3.2 — 5 I J State and local govts -.4 1.8 .2 .2 1.5 -.6 .6 1 0 — .4 — .5 3 7 1 9 8 5 J K Financial sectors. . 11.3 -6.9 2.8 7.9 4.1 8.5 8.1 9.3 15.2 -1.1 11 7 1 —4 1 8 6 K L Banking system 10.4 -7.9 2.7 7.4 2.4 8.4 7.0 10.8 13.7 -2.0 9.3 1.2 -5.7 4 9 L 2.2 .3 .7 7.5 2.0 -.7 2.2 .2 1.5 2.1 5.9 • .2 1.7 M N Commercial banks . 8.2 -8.2 2.0 5.9 .5 9.1 4.8 10.6 12.2 -4.1 3 4 1 2 — 5 9 3 2 N O Savings institutions .4 .6 -.4 .5 .3 .3 1.2 2 -.1 1.2 1.6 -1.0 .4 4 O P Insurance and pension funds .3 .2 -.4 -.1 .4 -.9 .7 -1.2 -.3 .6 7 * 3 7 P Q Finance nee .2 .1 1.0 * .9 .6 -.9 1.9 -.8 .1 -.1 .9 2 6 Q R Rest of the world 3.0 .5 .4 1.2 .8 .6 — .7 1.1 .4 7 2 3 1 l 5 R IV. Other securities A Total net issues, by sector 14.9 11.8 11.2 13.7 12.0 12.0 10.5 18.4 12.5 13.4 12.8 15.7 7.7 11.6 A B State and local govts 5.5 4.7 3.7 5.1 5.4 3.7 4.3 3.9 5.7 6.7 7.7 6.1 3 2 4 6 B C Nonfinancial corporations 8.0 5.4 5.4 7.0 4.7 5.9 5.0 12.3 6.0 4.7 4.7 7.0 3 8 3 5 C D Finance comoanies... .1 1.0 1.4 .8 .8 1.9 .9 1.3 .2 .9 * 1.2 .3 1 8 D E Rest of the world... 1.3 .7 .7 .8 1.0 .6 .2 .9 .7 1.1 4 1 4 5 17 E F Net purchases 14.9 11.8 11.2 13.7 12.0 12.0 10.5 18.4 12.5 13.4 12.8 15.7 7.7 11.6 F G Consumers and nonprofit org . . 3.6 2.9 2.3 1.5 -.5 .4 .3 7.0 -2.8 1.6 4.6 -1.9 -2.6 -2.0 G H State and local govts 1.7 1.3 1.5 1.6 1.7 1.5 1.5 1 6 1 5 1.8 1 3 1 9 1 7 19 H I Corp. business .5 .7 .3 .4 .5 2 1.0 .9 .3 -.5 1.7 .5 * — 4 I J Commercial banks . 2.5 .3 .4 2.7 4.5 2.2 2.8 1 3 3.7 3.2 4 6 6 0 3 8 3 7 J K Insurance and pension funds....... 6.5 7.0 7.0 7.7 7.0 7.8 6.0 7.2 9.0 8.7 5.6 7.2 6.9 8 2 K L Finance nee -.5 -.5 K -.4 -.9 -1.5 -.1 1.0 -.8 -4 2 2 6 — 2 5 6 L 1V[ Security brokers and dealers -.1 * .2 -.1 .2 -.8 * 1 9 2 —2 3 2 1 6 3 M N Investment cos.—Net -.4 -.7 C -.6 -.8 « -.4 -.1 -.8 j j -1 3 .6 -1 6 6 N 1.1 1.2 1.0 1.4 1.1 .8 1.2 1.5 1.2 1.6 2.0 2.7 -.4 2 O P Net issues 1.6 1.8 1.5 2.0 1.9 1.3 1.6 1.5 2.0 2.7 3.3 2.1 1.3 8 P Q Rest of world .. .4 .3 .3 -.1 * .4 .5 .1 .3 4 * 1 1 O * V. Mortgages A Total ne* borrowing 15.3 19.0 16.2 18.2 24.3 15.4 15.7 17.3 18.4 21.5 21.5 25.1 24.2 26.4 A B 1- to 4-family 10.1 13.2 10.4 12.1 15.7 10.0 10.2 11.8 12.4 14.2 13.5 16 0 15 6 17 6 B C Other 5.2 5.8 5.8 6.1 8.6 5.4 5.5 5.5 6.0 7.3 8.0 9.1 8.7 8 8 C D Net acquisitions 15.3 19.0 16.2 18.2 24.3 15.4 15.7 17.3 18.4 21.5 21.5 25.1 24.2 26.4 D E Consumer and nonprofit org 2.2 1.7 2.3 1.3 2.8 1.8 2.3 1.0 1.2 .6 4.5 1.6 2.2 3 0 E F U.S. Govt .3 2.2 1.2 .6 .3 1.1 * -.2 1 0 1.7 1 0 — 2 1 3 F G Commercial banks 2.1 2.6 .7 1.6 3.9 .3 .9 1.8 1.8 1.9 2.1 5.1 4 0 4 5 G H Savings institutions 7.8 9.5 8.8 11.0 13.4 9.5 9.5 10.9 11.2 12.4 11.7 13.6 13.5 14 8 H I Insurance sector ... 2.0 2.4 2.8 2.7 3.0 2.6 2.7 2.7 2 0 3.3 2 1 3 2 3 2 3 4 I J Mortgage companies .5 .2 * .6 .4 3 * .5 .8 1.2 -.3 1.2 .8 • J VI. Bank loans n.e.c. A Total net borrowing 1.2 7.4 2.8 3.1 6.2 2.4 -1.4 -.2 4.9 8.9 3.7 5.2 6.5 9.4 A B Nonfinancial business 1.4 5.3 2.7 2.0 4.2 2.2 .4 — .2 1.3 6.5 2.0 3.9 4.2 7 0 B C Corporate .4 3.8 2.6 1.6 2.6 1.9 1.7 .1 1 4 5 1 5 4 2 9 5 7 C D Nonfarm noncorporate .5 .9 « .1 .9 -2.0 -.2 .9 1.7 2.9 .6 .2 D E Farm .6 .7 .2 .3 .7 il .7 -.1 .4 .3 .5 .5 .6 1 1 F F Rest of the world .5 .2 .1 .7 .5 .5 .3 .8 .1 1.3 2.1 .1 — .2 F G Financial sectors -1.1 1.6 -.3 .1 1.0 -.6 -2.1 -1.0 3.3 .4 -.5 1.0 1.7 1.8 G NOTE.—Quarttrly data are seasonally adjusted totals at annual rates. For other notes see Apr. 1963 BULL., p 545. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 BANK HOLDING COMPANIES JULY 1963 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1962 A. Details for 31 States Number of offices Deposits 2 Banks and branches Number of As a per- State companies x Banks Branches c A en s t a a g p e e r o - f mil I l n ions c a e l n l ta c g o e m l o . f Total all com!, of dollars bank banking deposits offices Totals—31 States 49 442 1,215 1 657 21,203 Arizona 2 79 81 37.5 569 35.7 California 4 5 224 229 11.2 3,056 10.5 Colorado . . ... 2 6 6 2.9 158 6.7 Florida 4 16 16 4.7 423 7.6 Georgia 6 19 65 84 15.2 1,125 34.1 Idaho 2 2 44 46 37.4 286 39.8 Illinois . . .. 2 4 4 .4 97 .5 Indiana 2 3 2 5 .6 40 .8 Iowa 2 17 12 29 3.3 288 8.2 Kentucky 1 2 25 27 5.1 307 11.1 Maine 1 4 8 12 6.1 36 5.0 Massachusetts 3 22 148 170 28.1 1,270 21.0 Minnesota 4 118 6 124 17.7 2,949 61.1 Missouri. . . ... 2 9 2 11 1.6 278 4.0 M^ontana 4 32 32 25.8 481 51.9 Nebraska 1 5 2 7 1.6 175 9.2 Nevada 1 2 28 30 60.0 401 70.1 New Hampshire .... 1 7 7 9.2 62 13.0 New Mexico 1 5 J5 20 16.0 98 12.3 New York 9 22 197 219 11.3 2,988 5.9 North Dakota 3 34 5 39 20.7 355 40.9 Ohio . 2 24 41 65 5.0 762 6.0 Oregon 1 89 90 34.4 992 42.5 South Dakota 2 11 30 41 17.1 298 34.0 Tennessee 3 9 10 19 3.5 125 3.3 Texas 2 7 7 .7 372 2.6 Utah 2 3 55 58 45.0 590 52.0 Virginia 2 14 51 65 10.2 362 9.6 Washington 3 7 56 63 15.4 409 13.0 Wisconsin 6 26 21 47 6.4 1,769 34.6 Wyoming 2 4 4 7.1 82 17.4 B. Summary totals and comparisons 31 States United States— percen H ta o g l e d i o n f g a c ll o c m o p m a m ny e r g c r ia o l u p b s a n a k s s a in— all Item co H . o g ld ro in u g ps coml A . l b l anks com ba m n e k r s cial 31 States United States Number of banking offices, total 1,657 17,197 25,492 9.6 6.5 Banks 442 9,533 13,426 Branches 1,215 7,664 12,066 Deposits (millions of dollars) 2 21,203 196,323 262,100 10.8 8.1 1 Data for individual States represent bank holding cos. having sub- NOTE.—Holding cos. registered pursuant to Bank Holding Company sidiary banks in the respective States rather than registered bank holding Act of 1956. The data include: (1) banks of which the bank holding cos. whose principal offices are located in such States. Total does not cos. owned or controlled 25 per cent or more of the outstanding stock, equal sum of State figures because it has been corrected for duplications; and (2) 8 domestic commercial banks that are themselves bank holding that is, holding cos. that have subsidiary banks in more than one State cos. (A list showing the names and total deposits of the banks is available are included in the total only once. upon request.) The 8 banks have 82 branches and deposits aggregating The 49 bank holding cos. included in the total represent only 44 separate $1,909,193,000. Exclusion of these 90 banking offices and their deposits bank groups because in 5 cases the bank group is controlled by a bank from the data in the table would reduce the percentage ratios shown in holding co. that is in turn controlled by another bank holding co. These the table as follows: holding co. groups to all commercial banks in 31 groups are located in the following States: Fla., 1; Ga., 2; Ind., 1; and States—number of banking offices, from 9.6 to 9.1; deposits from 10.8 Mass., 1. to 9.8; holding co. groups to all commercial banks in United States— 2 Deposits as of Dec. 28, 1962. number of banking offices, from 6.5 to 6.1; deposits from 8.1 to 7.4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments 1014 Gold production 1015 Net gold purchases and gold stock of the United States 1016 Estimated foreign gold reserves and dollar holdings 1017 International capital transactions of the United States 1018 U.S. balance of payments 1027 Foreign Trade 1028 Money rates in foreign countries 1029 Foreign exchange rates 1030 Guide to tabular presentation 950 Index to statistical tables 1037 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- 1013 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 GOLD RESERVES JULY 1963 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti- Intl. Esti- E pe n r d i o o d f w m t o o a r t t l a e d l d * M F ta u o r n n y d e- U S n ta i t t e e s d r m w es o a t t r e l o d d f A t r i g n e a n- t A ra u l s ia - A tr u ia s- g B iu e m l- Brazil Canada Chile lo C m o b - ia C o R o f n e t p g h . o e , 1956 38,075 1,692 22,058 14,325 224 107 71 925 324 1,103 46 57 122 1957 38,765 1,180 22,857 14,730 126 126 103 324 1,100 40 62 81 1958 . 39,445 1,332 20,582 17,530 60 162 194 1,270 325 1,078 40 72 83 1959 40,195 2,407 19,507 18,280 56 154 292 1,134 327 960 43 71 42 1960 40,505 2,439 17,804 20,260 104 147 293 1,170 287 885 45 78 30 1961.. . 41,105 2,077 16,947 22,080 190 162 303 ,248 285 946 48 88 1962—May... . 2 106 16 458 114 174 363 I 318 286 913 45 92 June 41,285 2,110 16,527 22,650 102 177 363 1,335 286 669 45 93 July 2,136 16,182 78 180 419 1,335 286 674 44 93 AUK 2 155 16 139 74 182 419 I 342 286 683 44 94 Sept 41,250 2,175 16,081 22,995 71 184 419 1,341 286 689 43 83 Oct 2,179 16,026 68 186 429 1,341 286 695 43 84 Nov 2 190 16 014 64 187 439 I 340 286 702 43 64 Dec 41,430 2,194 16,057 23,180 61 190 454 1,365 708 43 57 1963—Jan 2,199 15,974 58 192 454 1,362 714 43 58 Feb 2 225 15 891 53 195 469 I 364 725 42 58 Mar *41,560 2,226 15,946 ^23,390 52 198 484 1,372 732 42 59 Apr 2,228 15,914 198 494 1,372 739 42 May 2,235 15,854 199 504 1,372 746 43 Domin- Ger- E pe n r d i o o d f Cuba m De a n rk - R i e c p a u n b- E d c o u r a- E v l a d S o al r - l F a i n n d - France m F a e n d y . , Greece G m u a a l t a e- India I n n e d s o ia - Iran lic Rep. of 1956 136 31 11 22 28 35 924 1 494 10 27 247 45 138 1957 136 31 11 22 31 35 581 2,542 13 27 247 39 138 1958 80 31 11 22 31 35 750 2,639 17 27 247 37 141 1959 50 31 10 20 30 38 1,290 2 637 26 24 247 33 140 I960 31 10 20 30 41 1,641 2,971 76 24 247 58 130 1961 31 3 19 18 47 2,121 3,664 87 24 247 43 130 1962—May 31 3 19 18 62 2,235 3,667 89 24 247 44 129 June 31 3 19 18 62 2,270 3,667 96 24 247 44 129 July 31 3 19 18 62 2,417 3,667 92 24 247 44 129 31 3 19 18 62 2,450 3,667 86 24 247 44 129 Sept 31 3 19 18 61 2,481 3,668 86 24 247 44 129 Oct 31 3 19 18 61 2,513 3,669 81 24 247 44 129 Nov 31 3 19 18 61 2,545 3 669 77 24 247 129 Dec 31 3 19 18 61 2,587 3,679 77 24 247 129 1963 Jan 31 3 19 18 61 2 626 3 694 77 24 247 129 Feb 31 3 19 18 61 2 673 3 727 77 24 247 129 Mar . 31 19 18 61 2,709 3,749 77 247 129 Apr 31 3 19 18 61 2,743 3,749 77 247 129 May 31 3 19 61 2,777 3,749 247 129 E pe n r d i o o d f Iraq R l e a Ir p 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 i i n l e - s Po g r a t l u- A So fr u ic th a 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 1,050 33 43 49 19 10 493 211 1959 84 18 1,749 102 142 1,132 34 30 50 28 9 548 238 1960... 98 18 2,203 119 137 1,451 30 52 42 15 552 178 1961 84 18 2,225 140 112 1,581 I 30 53 47 27 443 298 1962—May 98 18 2,240 140 107 1,581 30 53 47 33 447 407 June 98 18 2,242 151 106 1 581 30 53 47 34 454 432 July 98 18 2,244 172 106 1,581 30 53 47 35 455 446 Aug 98 18 2,244 172 98 1,581 30 53 47 36 467 468 Sept... 98 18 2,241 172 97 1,581 30 53 47 37 469 488 Oct. 98 18 2,239 172 95 1,581 30 53 47 38 469 501 Nov 98 18 2,237 172 95 1,581 30 53 47 471 509 Dec 98 18 2 243 172 95 1 581 30 53 47 471 499 1963—Jan 98 18 2 254 172 95 1 581 30 53 47 471 486 Feb 18 2 284 172 94 1 581 30 53 47 476 505 Mar 18 2 286 172 30 53 47 478 551 Apr . . 18 2,286 172 1,581 30 53 47 478 571 May... 18 2,287 1,581 I 30 53 47 478 591 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 GOLD RESERVES AND PRODUCTION 1015 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d i o o d f Spain Sweden Sw la i n tz d er- Syria T la h n a d i- Turkey ( U E . g A y . p R t . ) U K d n i o n i m t g e - 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 t o t t r l l e . - E E P F U * ments2 1956 132 266 1,664 112 144 188 1,772 186 603 59 268 1957 101 219 1,706 112 144 188 1,554 180 719 24 254 1958 57 204 1,925 112 144 174 2,808 180 719 -42 126 1959 68 191 1,934 104 133 174 2,514 180 652 -134 40 1960 178 170 2,185 104 134 174 2,800 180 401 -19 55 1961 316 180 2,560 104 139 174 2,268 180 401 115 56 1962—May 400 181 2,409 104 140 174 180 401 165 June 409 182 2,409 104 140 174 2,618 180 401 203 46 July. 429 182 2,459 104 140 174 180 401 209 Aug. 429 181 2,459 104 140 174 401 210 Sept. 428 181 2,453 104 140 174 2,517 401 200 62 Oct.. 438 181 2,452 104 140 174 180 401 172 Nov. 437 181 2,421 104 140 174 180 401 151 Dec. 446 181 2,667 104 140 174 2,582 401 -50 '56* 1963—Jan.. 475 181 2,455 104 140 174 180 401 116 Feb. 495 181 2,460 104 120 174 180 401 88 Mar. 514 181 2,461 104 140 174 2,447 180 401 107 41 Apr. 533 181 2,453 104 140 174 401 132 May 552 182 2,453 140 174 401 137 1 Includes reported or estimated gold holdings of international and 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold regional organizations, central banks and govts. of countries listed in assets minus gold deposit liabilities. this table and also of a number not shown separately here, and gold to be 3 European Payments Union through Dec. 1958 and European Fund distributed by the Tripartite Commission for the Restitution of Monetary thereafter. Gold; excludes holdings of the U.S.S.R., other Eastern European countries, and China Mainland. NOTE.—For back figures and description of the data in this and the The figures included for the Bank for International Settlements are following tables on gold (except production), see "Gold" Section 14, the Bank's gold assets net of gold deposit liabilities. This procedure Supplement to Banking and Monetary Statistics. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual countries. 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 i c- A So fr u ic th a R de h s o ia - Ghana C o R o f n e th p g e o . , 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 l r l l 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 1,215.0 803.1 20.1 29 2 8 1 54.8 156.6 9.4 7.7 4 4 14.0 37.5 5 7 64.4 1962 892.7 19.4 145.5 8.3 4.5 13.7 37.4 5.7 1962—Apr 72.3 1.6 2.4 3.0 12.4 .9 .3 1.2 2.6 .4 J M u a n y e 7 7 4 5 . . 0 2 1 1 . . 6 5 2 2. . 8 6 3*i*8* 3 3. . 1 4 1 1 2 1 . 3 8 . . 6 8 . . 4 4 1 . . 9 2 3 3. . 3 0 .5 5 July 76 3 1 6 2 6 4 0 11 9 .6 4 1 2 3 3 5 Aug 76.6 1.6 2.6 4.6 12.0 .8 .4 1.2 3.4 .5 Sent 76.1 1.7 2.6 31.8 4.8 11.7 .7 .3 1.1 3.4 .5 Oct 78.1 1.6 2.7 4.3 12.5 .5 .4 1.2 3.2 .4 • Nov 78.5 1.6 2.7 3.8 12 1 .3 .4 1.0 3.0 .5 Dec .. . 74 7 1.7 3 7 11 7 .4 3 .8 3 3 4 1963—Jan 78.0 1.6 11.7 .8 1.2 2.9 Feb 76.5 1 6 11 0 .6 1 0 2 9 Mar 79.4 1.6 11.6 1.1 Apr 11 8 1 Estimated; excludes U.S.S.R., other Eastern European countries, NOTE.—Estimated world production based on reports of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual countries 2 Gold exports. and of the Bureau of Mines except Brazil, data for which are from * Quarterly data. American Bureau of Metal Statistics. For the United States, annual figures are from the Bureau of the Mint and monthly figures are from American Bureau of Metal Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 U.S. GOLD JULY 1963 NET GOLD PURCHASES OR SALES BY THE UNITED STATES, BY COUNTRY (In millions of dollars at $35 per fine troy ounce) 1962 1963 Area and country 1955 1956 1957 1958 1959 1960 1961 1962 I II III IV I Western Europe: Austria -84 -83 -1 -143 -39 -17 -56 -30 -30 Belgium 3 3 -329 -39 -141 -144 -63 -28 -35 France — 68 — 34 — 266 — 173 -456 -45 -96 -214 -101 -101 Germany Fed Rep of -10 — 34 — 23 Italy 349 100 Netherlands . 25 -261 -30 -249 -25 Portugal -5 -20 -10 Spain 31 32 -114 -156 -146 -47 -59 -20 -20 -70 Switzerland . .. — 8 -215 20 -324 -125 102 62 35 -45 50 United Kingdom 100 -900 -350 -550 -306 -387 -181 -150 -64 8 107 Bank for Intl Settlements — 178 — 32 — 36 —23 Other 4 18 8 -21 -38 -96 -53 -12 -11 -15 * 15 -9 Total -78 80 68-2,326 -827 -1,718 -754 -1,105 -290 -337 -399 -79 -104 Canada 15 5 190 190 Latin American republics: A Br r a g z e i n l tina 1 _ 1 1 5 75 67 -ii - - 5 2 0 - - 9 2 0 8 57 5 25 -1 60 -1 59 17 Colombia 28 — 6 38 10 27 M^exico — 30 — 20 Venezuela . . — 200 65 Other 14 29 6 2 -5 -22 -17 -5 -1 -4 * Total 14 -28 81 69 19 -100 -109 175 24 59 9 83 16 Asia: Japan -30 -157 -15 Other -5 * 18 A -28 -97 i -101 2 -93 -24 -16 -41 -11 -8 Total -5 * 18 -34 -186 -113 -101 -93 -24 -16 -41 -11 -8 All other 1 14 -3 -5 -38 -6 -1 -1 2 2 1 -1 Total foreign countries -68 80 172-2,294 -998 -1,969 -970 -833 -291 -102 -434 -6 -96 Intl. Monetary Fund 3 200 600 4 44 3 300 150 Grand total -68 280 772 -2,294 -1,041 -1,669 -820 -833 -291 -102 -434 -6 -96 1 Includes sales of $21 million to Lebanon and $48 million to Saudi 3 Proceeds from this sale invested by the IMF in U.S. Goyt. securities; Arabia. upon termination of the invegtment the IMF can reacquire the same 2 Includes sales of $21 million to Burma, $32 million to Lebanon, and amount of gold from the United States. $13 million to Saudi Arabia. 4 Payment to the IMF of $344 million as increase in U.S. gold subscription less sale by the IMF of $300 million (see also note 3). U.S. GOLD STOCK AND HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES BY U.S. MONETARY AUTHORITIES (In millions of dollars) End of period Changes in— End of period Changes in— Year Total Tot G al o l 2 d st T o r c e k a s i ury c h F u o o r l r r d e e i i n n g c g n y s Total T g o o t l a d l Month Total Tot G al o l 2 d st T o r c e k a s i ury h c F u o o r l r d r e e i i n n g c g n y s3 Total T g o o t l a d l 1951 22,873 22,873 22,695 53 53 1962—June... 17,081 16,527 16,435 554 363 69 1952 23,252 23,252 23,187 379 379 July.... 16,678 16,182 16,147 496 -403 -345 1953 22,091 22,091 22,030 -1,161 -1,161 Aug.... 16,562 16,139 16,098 423 -116 -43 1954 21,793 21,793 21,713 -298 -298 Sept... 16,531 16,081 16,067 450 -31 -58 Oct 16,364 16,026 15,978 338 -167 -55 1955 21,753 21,753 21,690 -40 -40 Nov.... 16,216 16,014 15,977 202 -148 -12 1956 22,058 22,058 21,949 305 305 Dec.... 16,156 16,057 15,978 99 -60 43 1957 22,857 22,857 22,781 799 799 1958 20,582 20,582 20,534 -2,275 -2,275 1963—Jan.... 16,102 15,974 15,928 128 -54 -83 1959 19,507 19,507 19,456 -1,075 4-1,075 Feb.... 16,023 15,891 15,878 132 -79 -83 Mar.... 16,078 15,946 15,878 132 55 55 1960 17,804 17,804 17,767 -1,703 -1,703 Apr.... 16,046 15,914 15,877 132 -32 -32 1961 17,063 16,947 16,889 116 -741 -857 May... 16,009 15,854 15,797 155 -37 -60 1962 16,156 16,057 15,978 99 -907 -890 June35.. 15,955 15,829 15,733 126 -54 -25 1 Includes gold sold to the United States by the International Mone- 4 Includes payment of $344 million as increase in U.S. gold subscriptary Fund with the right of repurchase, which amounted to $800 million tion to the International Monetary Fund. on June 30, 1963. 2 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 8 on page 1025 for gold held under earmark at F.R. 3 For holdings of F.R. Banks only see pp. 958 and 960. Banks for foreign and international accounts. Gold under earmark is not included in the gold stock of the United States. See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 GOLD RESERVES AND DOLLAR HOLDINGS 1017 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 31, 1961 Mar. 31, 1962 June 30, 1962 Sept. 30, 1962 Dec. 31, 1962 Mar. 31, 1963? 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 i dollars & notes* Western Europe: Austria . . 558 3 594 640 744 * 783 * 789 2 Belgium 1,574 8 1,616 8 1,593 2 1,511 • 1,539 1 555 1 Denmark 83 30 80 29 83 29 78 30 98 16 96 16 Finland . .. 138 2 138 2 133 2 135 2 134 2 140 2 France 3,110 4 3,360 3 3,664 3 3,643 3 3,744 3 4 123 3 Germany Fed Rep of. 6,506 3 6,200 3 6,289 3 6,467 3 6,409 3 6,224 3 Greece 154 189 * 206 * 187 * 196 * 243 * Italy 3,459 * 3,416 * 3,429 * 3,533 * 3,627 * 3,385 1 Netherlands 1,797 3 1,822 2 1,888 2 1,857 2 1,829 1 1,809 2 Norway 135 126 142 93 131 85 142 91 155 87 160 111 Portugal 542 1 532 1 584 1 610 1 632 1 633 1 Spain . ... 469 516 1 568 1 588 1 623 1 705 1 Sweden 586 93 584 92 607 123 639 102 671 93 673 73 Switzerland 3,435 83 3,262 83 3,360 83 3,290 86 3,575 83 3,273 85 Turkey . 165 160 * 163 * 162 * 165 162 * United Kingdom 4,495 435 4,896 388 4,882 440 4,319 418 4,199 370 4,640 297 Other 2 681 48 732 46 671 46 665 47 540 48 562 46 Total 27,887 840 28,239 751 28,891 820 28,570 786 28,919 708 29 172 644 Canada . . 3,704 459 3,454 423 3,566 253 4,169 266 4,057 389 3,869 528 Latin American republics: Argentina 425 1 407 1 310 1 301 269 318 Brazil 513 1 492 1 511 1 499 1 430 400 Chile 153 * 160 176 * 147 * 176 * 167 * Colombia 235 1 228 1 252 1 228 1 205 1 226 C G u u b a a temala . 4 7 4 0 • 4 8 0 2 * 7 3 6 8 ** 5 3 8 7 * 6 1 5 6 ** 9 1 4 6 * * Mexico 607 5 615 6 609 6 528 6 626 4 690 4 Panama Republic of 87 1 82 1 87 1 85 1 98 97 1 131 1 137 * 137 * 154 * 152 155 * Uruguay 237 1 255 1 259 1 272 1 281 276 1 Venezuela 819 1 801 1 765 1 780 1 806 1 837 1 Other 223 270 329 296 272 3 327 3 Total 3,544 12 3,569 12 3,549 12 3,385 12 3,396 13 3,603 13 Asia: India 325 6 321 6 296 6 293 6 288 6 296 5 119 1 137 1 126 1 77 1 72 1 74 1 Iran 161 165 155 157 * 148 * 157 * Japan ... . 31,976 3 2 152 3 2,210 3 2 344 3 2,481 3 2 537 3 Philippines 212 1 195 1 213 1 198 1 212 218 * Thailand 368 410 * 431 * 430 437 * 471 * Other 1,168 45 1,211 41 1,204 41 1,263 41 1,296 40 1,357 40 Total 3 4,329 56 4 591 52 4,635 52 4,762 52 4,934 50 5 110 49 All other: Australia 260 268 281 * 315 * 337 340 * South Africa 330 415 471 535 538 * 592 * U.A.R. (Egypt) 189 * 190 193 * 186 * 188 193 * Other 618 39 615 42 624 39 647 40 658 39 655 38 Total 1,397 39 1,488 42 1,569 39 1,683 40 1,721 39 1,780 38 Total foreign countries 4.... 440,861 1,406 41,341 1,280 42,210 1,176 42,569 1,156 43,027 1,199 43,534 1,272 International and regional5. 5,829 1,432 6,457 1,275 6,620 1,165 7,127 993 7,350 911 7,217 966 Grand total4 346,690 2,838 47,798 2,555 48,830 2,341 49,696 2,149 50,377 2,110 50,751 2,238 1 Excludes nonmarketable U.S. Treasury bonds and notes held by 5 International Bank for Reconstruction and Development, Interofficial institutions of foreign countries as shown in Table 7 on page 1024. national Monetary Fund, International Finance Corporation, Inter- 2 In addition to other Western European countries includes unpub- national Development Association, and other international organizalished gold reserves of certain Western European countries; gold to be tions; Inter-American Development Bank, European Coal and Steel distributed by the Tripartite Commission for the Restitution of Mone- Community, European Investment Bank, and other Latin American and tary Gold; European Fund; and the Bank for International Settlements European regional organizations except the B.I.S. and E.F. (see note 2). (the figures for the gold reserves of the BIS represent the Bank's net gold assets). NOTE.—Gold and short-term dollars include reported and estimated 3 Total short-term dollars include $82 million reported by banks official gold reserves, and official and private short-term dollar holdings initially included as of Dec. 31, 1961, of which $81 million reported for (principally deposits and U.S. Treasury bills and certificates); excludes Japan. nonnegotiable, non-interest-bearing special U.S. notes held by the Inter- 4 Excludes gold reserves of the U.S.S.R., other Eastern European American Development Bank and the International Development countries, and China Mainland. Association, U.S. Govt. bonds and notes are official and private holdings of U.S. Govt. securities with an original maturity of more than 1 year. See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 INTL. CAPITAL TRANSACTIONS OF THE U.S. JULY 1963 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional 1 Foreign E p n er d i o o d f G to ra ta n l d Total Intl. E p u r e e r a - o n - L r . e A - . Total c O ia ff l i - 3 Other Europe Canada A L m a e t r i i n ca Asia Africa O c t o r t i u h e n e s r gional 2 gional 1958 16,159 1,544 1,544 14,615 8,665 5,950 7,708 2,019 2,403 2,205 192 88 1959 419,389 43,158 43,158 16,231 9,154 7,076 8,473 2,198 2,408 2,780 253 119 I960 21,272 4,012 3,897 115 17,260 10,212 7,048 9,046 2,439 2,308 3,115 227 125 1961 522,533 3,752 3,695 57 18,781 10,940 7,841 10,322 2,758 2,340 5 2,974 283 104 1962—May.... 23,536 4,534 4,479 55 19,002 10,458 8,544 10,474 2,514 2,385 3,194 332 103 June 24,072 4,510 4,448 62 19,562 11,205 8,357 10,599 2,897 2,433 3,212 311 110 July 23,623 4,836 4,742 29 65 18,787 10,715 8,072 9,591 3,120 2,427 3,200 321 128 Aug 24,158 5,015 4,900 33 82 19,143 11,031 8,112 9,697 3,416 2,338 3,233 327 132 Sept 24,524 4,943 4,824 35 84 19,581 11,582 7,999 10,030 3,480 2,329 3,280 325 137 Oct 25,211 5,005 4,846 34 126 20,206 11,979 8,227 10,239 3,894 2,262 3,345 305 161 Nov 25,196 5,095 4,936 34 125 20,101 11,996 8,105 10,290 3,667 2,295 3,365 320 164 Dec 25,002 5,147 4,937 34 176 19,855 11,958 7,897 10,166 3,349 2,445 3,426 317 152 1963—Jan 24,939 5,100 4,895 30 175 19,839 11,564 8,275 10,018 3,295 2,558 3,505 316 147 Feb 24,980 5,059 4,856 26 177 19,921 11,482 8,439 10,108 3,261 2,573 3,512 325 142 Mar 25,135 4,982 4,796 28 158 20,153 11,767 8,386 10,269 3,137 2,678 3,600 321 147 Apr.*... 25,307 5,011 4,848 18 145 20,296 11,906 8,390 10,097 3,226 2,875 3,622 322 154 May P. .. 25,388 4,866 4,696 22 148 20,522 12,056 8,466 10,258 3,243 2,880 3,679 296 166 la. Europe End of period Total Austria Belgium m De a n rk - l F a i n n d - France m G a e n r- y Greece Italy N l e a t n h d e s r- Norway Po g r a t l u- Spain Sweden 1958 7,708 411 115 169 69 532 1,755 126 1,121 339 130 163 36 303 1959 8,473 331 138 137 71 655 1,987 186 1,370 485 95 138 86 213 1960 . ... 9,046 243 142 54 46 519 3,476 63 877 328 82 84 149 227 1961 10,322 255 326 52 91 989 2,842 67 1,234 216 105 99 153 406 1962—May.... 10,474 238 293 60 70 1,445 2,509 103 1,147 259 123 108 153 415 June.... 10,599 277 258 52 71 1,394 2,622 110 1,187 307 101 130 159 425 July 9,591 291 204 44 68 1,046 2,543 100 1,095 339 103 132 176 425 Aug 9,697 316 184 52 70 1,080 2,592 98 1,244 258 117 137 144 463 Sept 10,030 325 170 47 74 1,162 2,799 101 1,292 276 112 141 160 458 Oct .... 10,239 319 190 55 73 1,205 2,823 103 1,310 259 109 156 151 458 Nov 10,290 305 195 69 72 1,271 2,770 113 1,296 243 115 154 165 483 Dec 10,166 329 174 67 73 1,157 2,730 119 1,384 248 125 161 177 490 1963 Jan 10,018 320 ill 56 75 1,272 2,495 142 1,182 232 120 167 184 476 Feb 10,108 317 189 44 75 1,359 2,413 162 1,123 216 134 161 209 507 Mar 10,269 305 183 65 79 1,414 2,475 166 1,099 228 130 157 191 492 Apr.p... 10,097 276 208 69 70 1,433 2,456 171 1,121 285 131 159 169 480 May P. .. 10,258 288 224 74 68 1,573 2,670 174 1,062 323 130 153 163 483 la. Europe—Continued lb. Latin America End of period Sw la i n tz d er- Turkey U K d n i o n i m t g e - d Y sl u av g i o a - E W O u e r t s o h t p e e r r e n 6 U.S.S.R. E E O a u s t r h t o e e p r r e n Total A t r i g n e a n- Brazil Chile Co b l i o a m- Cuba Mexico 1958 852 20 873 9 671 2 12 2,403 150 138 100 169 286 418 1959 969 31 990 6 569 3 13 2,408 337 151 185 217 164 442 1960 678 18 1,667 10 357 12 14 2,308 315 194 135 158 77 397 1961 875 26 2,227 12 325 5 16 2,340 235 228 105 147 43 495 1962—May.... 830 16 2,399 11 279 2 14 2,385 209 236 110 142 37 491 June 951 23 2,264 12 238 2 16 2,433 208 225 131 159 37 503 July 913 17 1,853 12 211 3 16 2,427 231 201 113 149 37 474 Aug 832 17 1,846 13 216 3 15 2,338 210 198 106 143 36 454 Sept 837 22 1,802 12 222 3 15 2,329 230 213 104 145 36 431 Oct 885 26 1,853 12 232 2 18 2,262 187 180 112 152 7 15 437 Nov 837 25 1,893 15 249 3 17 2,295 205 176 101 136 15 492 Dec 908 25 1,617 11 349 3 19 2,445 208 204 133 148 15 531 1963—Jan 861 30 1,932 14 261 3 19 2,558 210 188 129 183 14 558 Feb 813 36 2,051 13 264 3 19 2,573 234 173 116 177 14 589 Mar 812 22 2,193 10 230 2 16 2,678 266 192 125 167 15 596 Apr.*... 751 21 2,065 11 199 3 19 2,875 308 198 117 163 15 639 May*... 719 20 1,957 11 147 2 19 2,880 335 167 124 165 15 628 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1019 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Coatinued (Amounts outstanding; in millions of dollars) lb. Latin America—Continued lc. Asia E pe n r d i o o d f Panama Peru U gu r a u y - V zu e e n l e a - O R L t e . h A p e . . r B B e a r h m & a u m d a a s 8 iA S n N u t r i e i l n l t e h a s . m & Am O L e a th r t i i e c n r a8 Total M C la h a n i i n d n a - H Ko o n n g g India n d I e n o s - - ia Israel 1958 . .. 146 77 82 494 222 97 79 35 2,205 36 62 77 108 56 1959 129 82 62 277 227 9 14 88 33 2,780 36 60 114 139 87 I960 123 72 51 398 235 69 72 12 3,115 35 57 54 178 75 1961 87 84 57 418 226 111 89 15 2,974 35 56 78 76 63 1962—May... . 91 90 72 379 312 111 90 15 3,194 35 62 54 80 76 June 87 90 79 364 337 111 87 15 3,212 35 56 49 82 76 July.... 87 96 73 436 308 111 96 15 3,200 35 60 39 79 76 Aug 87 104 87 394 300 111 93 15 3,233 35 60 39 83 89 Sept 85 107 92 379 287 111 94 15 3,280 36 57 46 33 81 Oct 84 103 90 417 267 111 92 15 3,345 36 63 49 39 74 Nov.... 87 103 85 407 267 111 95 15 3,365 36 62 51 26 81 Dec 98 105 101 405 267 123 97 10 3,426 36 65 41 28 81 1963—Jan.. 96 105 90 455 300 123 97 10 3,505 36 62 46 30 87 Feb 102 103 95 413 329 123 95 10 3,512 36 61 45 30 93 Mar.... 97 108 96 436 352 123 95 10 3,600 36 61 49 30 96 Apr.*\ .. 103 110 91 505 399 123 94 10 3,622 35 66 40 33 95 May P. .. 109 113 94 498 340 113 95 87 3,679 36 61 45 34 97 lc. Asia—Continued Id. Africa le. Other countries E pe n r d i o o d f Japan Korea P p h i i n l e ip s - T w a a i n - T la h n a d i- O A t s h i e a r Total (L C e v o o il n p le g o ) o ld- ro M cc o o - 8 A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total t A ra u l s i - a ot A he ll r8 1958 .... 935 145 176 99 133 378 192 30 43 30 16 73 88 79 9 1959 1,285 148 172 94 141 504 253 31 58 49 20 95 119 110 9 1960 1 887 152 203 84 186 204 227 32 64 29 22 80 125 88 37 1961 1,672 199 185 92 264 254 283 34 93 32 15 109 104 98 6 1962—May. .. 1,855 174 184 85 323 266 332 40 93 42 25 132 103 97 6 June .. 1,906 164 179 85 327 253 311 37 93 39 19 123 110 104 6 July 1 903 160 169 86 327 266 321 37 93 36 22 133 128 122 6 Aug... . 1,942 155 169 82 327 252 327 41 93 45 13 135 132 126 6 Sept... . 2,040 153 161 80 326 267 325 35 93 47 12 138 137 131 6 Oct 2 104 147 163 78 326 266 305 31 93 42 13 126 161 155 6 Nov.... 2,111 142 171 76 324 285 320 38 93 43 17 129 164 158 6 Dec.. .. 2,177 136 174 75 333 280 317 35 68 39 14 161 152 147 5 1963—Jan 2,190 129 174 79 348 324 316 36 68 40 13 159 147 142 5 Feb.. . . 2,179 120 181 81 361 325 325 36 68 41 16 164 142 137 5 Mar 2 233 116 180 88 367 344 321 32 68 41 19 161 147 142 5 Apr.*>. . 2,246 108 176 92 368 363 322 32 68 40 19 163 154 149 5 MayP. . 2,283 99 179 99 371 375 296 29 103 42 15 106 166 149 17 1 International Bank for Reconstruction and Development, Inter- 9 Bermuda only; Bahamas included under "Other Latin America." national Monetary Fund, International Finance Corporation, Interna- 10 Except where noted, data based on reports by banks in the Second tional Development Association, and other international organizations; F.R. District and are a partial breakdown of the amounts shown in the Inter-American Development Bank, European Coal and Steel Com- "other" categories (except other Eastern Europe) in Tables la-le. munity, European Investment Bank and other Latin American and 1! Based on reports by banks in all F.R. districts. European regional organizations, except Bank for International Settle- 12 Included with British West Indies. ments and European Fund which are included under "Europe." 13 Includes Jamaica, and Trinidad and Tobago as indicated by note 12. 2 Not reported separately until July 1962. 1 4 Includes Bahamas. 3 Foreign central banks and foreign central governments and their agencies, and Bank for International Settlements and European Fund. NOTE.—Short-term liabilities are principally deposits (demand and 4 Includes $1,031 million representing increase in U.S. dollar sub- time) and U.S. Govt. securities maturing in not more than 1 year from scription to the IMF paid in June 1959. their date of issue; the latter, however, exclude nonnegotiable, non- 5 Includes $82 million reported by banks initially included as of Dec. interest-bearing special U.S. notes held by the International Develop- 31, 1961, of which $81 million reported for Japan. ment Association and the Inter-American Development Bank. For 6 Includes Bank for International Settlements and European Fund. back figures and further description of the data in this and the following 7 Decline from Sept. reflects reclassification of deposits for changes tables on international capital transactions of the United States, sec in domicile over the past few years from Cuba to other countries. "International Finance" Section 15, Supplement to Banking and Monetary 8 Data based on reports by banks in the Second F.R. District only for Statistics. end-year 1958-1962; Dec. 1961 figure carried forward through Nov. 1962 and Dec. 1962 figure carried forward through Apr. 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1020 INTL. CAPITAL TRANSACTIONS OF THE U.S. JULY 1963 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) If. Supplementary Data1 ° (end of year) Area or country 1959 1960 1961 1962 Area or country 1959 1960 1961 1962 Other Western Europe: Other Asia (Cont.): Iceland 2.7 5.1 3.1 5.6 Iraq 63.1 13.8 20.2 n.a. Ireland, Rep. of 5.4 2.7 3.2 2.9 Jordan 2.5 1.8 1.6 1.2 Luxembourg 7.2 12.6 16.1 10.8 Kuwait 9.4 9.6 27.1 33.0 Monaco 5.3 4.1 3.4 1.7 Laos 21.0 5.0 4.6 n.a. Lebanon 38.0 36.2 52.3 65.9 Other Latin American Republics: Malaya 1.4 6.3 4.4 12.6 Bolivia* i 24.4 23.1 26.2 23.2 Pakistan 23.5 10.6 10.1 15.9 Costa Rica 18.9 19.8 13.3 16.5 Ryukyu Islands (incl. Okinawa), 14.8 14.2 14.6 n.a. Dominican Republic11 36.9 36.9 22.8 42.0 Saudi Arabia 111.6 18.4 24.9 28.4 Ecuador 21.7 27.3 23.6 36.3 Singapore 3.5 1.9 3.2 5.8 El Salvador! i 28.0 24.3 21.9 22.5 Syria 5.0 4.2 2.6 4.9 Guatemala * i 37.1 43.9 45.8 40.9 Viet-Nam 68.3 14.6 7.9 10.1 Haiti 10.5 10.7 9.9 10.5 Honduras 12.8 15.0 14.8 13.8 Other Africa: Jamaica (12) (12) 1.8 n.a. Algeria .6 .4 .5 1.6 Nicaragua 12.5 11.9 17.3 14.8 Ethiopia, incl. Eritrea 18.7 9.3 11.1 17.0 Paraguay 6.7 4.6 4.9 5.7 Ghana .4 .9 1.1 4.1 Trinidad & Tobago (12) (12) (12) 3.1 Liberia 20.3 16.8 21.9 17.6 Libya 17.6 5.6 5.4 5.5 Other Latin America: Mozambique 2.0 2.2 1.6 2.5 British West Indies 13 14 32.6 11.3 14.0 9.0 Nigeria .8 21.8 n.a. French West Indies & French Rhodesia & Nyasaland, Fed. of. .3 3.9 6.5 6.8 Guiana .5 .4 .5 1.0 Somali Republic 3.5 1.7 .6 Sudan 1.6 1.9 2.0 2.4 Ot A he f r g h A an si i a st : an 11.0 9.8 3.6 5.3 Tunisia 8.4 2.8 1.2 n.a. Burma 4.3 .9 4.5 2.5 All other: Cambodia 19.7 10.9 15.3 12.6 New Zealand. . 35.1 4.0 4.7 Ceylon 34.4 6.9 6.5 4.9 Iran ii 46.6 22.4 31.3 18.7 For notes see preceding page. 2. SHORT-TERM LIABILITIES TO FCKEIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks and official institutions To all other foreigners Payable in End of period Total foreign Total Deposits U.S. Deposits U.S. currencies Treasury Treasury bills and Other 2 Total bills and Other 2 Demand Time certificates1 Demand Time certificates 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 1960 21 272 18,929 7,568 9 960 1,401 2,230 1,849 148 233 113 1961 22,450 19,944 8,644 9,751 1,549 2,356 1,976 149 231 150 19613 . . 22 533 20,025 8,707 9,751 1,567 2,358 1,977 149 232 150 1962—May 23,536 20,873 8,852 10,409 1,612 2,496 2,052 100 344 167 June 24 072 21 219 8,696 10 973 1,550 2,676 2,209 107 360 177 July 23,623 20,890 8,376 11,020 1,494 2,553 2,087 112 354 180 Aug 24 158 21 371 8,289 11,645 1,437 2,541 2,066 109 366 246 Sept 24,524 21,739 8,206 12,082 1,451 2,531 2,057 100 374 254 Oct 25 211 22,409 8,495 12,463 1,451 2,520 2,050 108 362 282 Nov 25,196 22,425 8,437 12,465 1,523 2,559 2,049 130 380 212 Dec 25,002 22,291 8,528 12,226 1,537 2,568 2,091 116 361 143 1963—Jan 24,939 22,209 8,858 11,760 1,591 2,566 2,071 123 372 164 Feb 24 980 22 173 8 957 11,597 1,619 2,657 2,102 144 411 150 Mar 25,135 22,315 8,934 11,731 1,650 2,677 2,112 143 422 143 Apr p 25,307 22,433 8,924 11,856 1,653 2,759 2,187 146 426 116 MayP 25,388 22,496 5,471 3,479 11,938 1,608 2,763 1,404 799 129 431 129 i Includes nonnegotiable, non-interest-bearing special U.S. notes held 2 Principally bankers' acceptances and commercial paper. by the International Monetary Fund, which amounted to $2,976 million 3 These figures reflect the inclusion of data for banks initially included on May 31, 1963; excludes such notes held by the International Develop- as of Dec. 31, 1961. ment Association and the Inter-American Development Bank, which amounted to $276 million on May 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1021 3. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) End of period G to ra ta n l d Europe Canada A L m a e t r i i n ca Asia Africa 1 co O u t n h t e ri r es 1958 2,542 696 243 1,099 435 69 1959 '2,624 534 272 1,176 586 56 1960 3,614 717 421 1,356 1,052 69 1961 2 4,804 767 539 1,522 2 1,891 85 1962—May., 4,943 686 457 1,583 2,114 103 June., 4,880 693 436 1,546 2,089 116 July.. 4,877 703 451 1,540 2,060 124 Aug.. 4,833 709 430 1,522 2,046 127 Sept.. 4,811 726 443 1,521 1,982 138 Oct.. . 4,955 765 547 1,524 1,985 135 Nov.. 4,866 741 489 1,563 1,940 132 Dec... 5,100 879 446 1,618 2,012 146 1963—Jan... 4,886 752 449 1,587 1,967 131 Feb... 5,003 795 473 1,620 1,974 140 Mar.. 5,055 825 486 1,563 2,039 142 Apr.p 5,234 856 485 1,600 2,152 141 May?, 5,291 868 510 1,591 2,180 91 51 3a. Europe End of period Total A tr u i s a - g B i e u l m - m De a n rk - l F a i n n d - France m G a e n r- y 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 e e n - 1958 696 65 102 77 36 56 22 30 24 1959 534 56 57 54 30 38 7 19 1960 717 65 9 32 82 34 33 17 28 1961 767 20 23 42 165 35 54 27 35 1962—-May. 686 18 26 55 139 37 62 23 16 19 June. 693 18 27 55 129 36 59 24 12 20 July. . 703 19 28 51 137 43 57 26 12 16 Aug.. 709 19 28 42 139 39 55 27 18 17 Sept.. 726 15 28 43 135 41 60 28 22 16 Oct... 765 16 31 48 144 45 49 27 24 15 Nov.. 741 21 32 62 139 43 24 28 23 18 Dec.. 879 31 30 68 186 54 27 35 19 18 1963—Jan.. , 752 19 35 56 134 51 26 34 19 16 Feb.. 795 28 39 56 144 69 36 35 23 19 Mar.. 825 25 39 58 160 58 29 32 25 22 Apr.? 856 28 41 67 145 69 33 33 32 23 34 44 72 143 60 37 34 40 26 3a. Europe—Continued 3b. Latin America End of period S l w a er n i - t d z- T k u e r y - U K d n i o n i m t g e - d Y sl u a g v o ia - W E O u e t r s h o t e e p r r e n 3 U.S.S.R. E E O a u s t r h t o e e p r r n e4 Total A t r i g n e a n- Brazil Chile l C o b m o ia - - Cuba M ic e o x- 42 72 124 1,099 40 148 52 51 166 293 1359 38 47 121 1,176 60 117 59 68 115 291 1960 60 49 245 1,356 121 225 73 80 26 343 1961 105 16 181 1,522 192 186 127 125 19 425 1962—May 13 159 1,583 204 173 139 163 17 428 June 37 151 1,546 189 200 154 143 17 409 July 67 27 161 1,540 177 199 164 147 18 393 Aug 69 31 166 1,522 164 191 158 138 17 397 Sept 68 41 163 1,521 183 196 161 137 17 369 Oct 75 24 202 1,524 169 188 174 151 17 376 Nov 64 12 211 1,563 182 180 174 138 17 400 Dec 75 42 225 1,618 181 171 188 131 17 418 1963—Jan 72 42 184 1,587 156 187 170 129 17 427 Feb 67 36 175 1,620 161 179 162 149 17 432 Mar 71 32 197 1,563 161 178 151 145 17 409 Apr.P 66 40 193 1,600 170 196 153 139 17 413 May*7 66 44 175 1,591 180 196 161 136 17 405 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1022 INTL. CAPITAL TRANSACTIONS OF THE U.S. JULY 1963 3. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 3b. Latin America—Continued 3c. Asia End of Other Baha- Neth. Other period Panama Peru U gu r a u y - V zu e e n l e a - R L l e ic p .A s u . b 5 - m B m u & e d a r a s - 1 A S n n u a t & i m r l i l - es A L ic m a a t e i 6 n r- Total C M la h a n i i n d n a - H Ko o n n g g India I n n e d s o ia - Israel 1958 23 31 52 142 44 53 435 6 23 1959 18 36 47 247 57 57 586 10 14 1960 23 44 57 234 55 66 1,052 9 24 1961 32 74 55 144 56 74 21,891 9 36 1962—May.. 59 61 131 46 9 71 2,114 11 12 43 June.. 41 81 68 122 45 7 71 2,089 11 14 39 July. . 37 83 63 125 47 7 80 2,060 11 14 38 Aug... 36 86 80 122 49 10 74 2,046 11 14 37 Sept... 36 86 89 115 44 11 75 1,982 13 18 36 Oct... 32 87 99 94 47 10 81 1,985 13 18 37 Nov... 32 84 107 104 54 7 82 1,940 13 18 34 Dec... 30 85 122 102 66 9 98 2,012 13 20 37 1963—Jan... 33 89 114 100 67 10 87 1,967 14 17 35 Feb... 38 84 123 104 70 10 92 1,974 14 20 38 Mar... 40 86 113 97 68 9 89 2,039 14 24 39 Apr.P. 34 92 121 100 60 10 96 2,152 14 22 33 May P. 34 95 97 101 97 27 10 36 2,180 13 22 31 3c. Agia—Continued 3d. Africa 3e. Other countries End of period Congo Japan Korea P p h i i n l e ip s - T w a a i n - T la h n a d i- O A t s h i e a r Total i ( p L o e l o d - - Mo co ro i c- A So fr u ic th a U (E . g A y . p R t . ) A O fr t i h c e a r 1 Total? A tr u a s - - ot A he ll rs ville) lia 1958 179 67 13 134 21 3 69 13 28 1959 324 24 15 180 12 2 56 18 21 1960 806 19 24 150 11 3 69 28 24 1961 21,528 114 34 145 10 13 85 29 27 1962—May. . 1,762 107 30 124 11 22 103 33 33 June.. 1,758 91 30 118 11 24 116 35 42 July... 1,765 76 30 111 12 26 124 34 50 Aug.. . 1,767 69 33 100 12 23 127 40 48 Sept... 1,711 69 30 87 12 25 138 46 51 Oct.... 1,710 70 32 88 11 23 135 45 54 Nov... 1,662 77 33 89 12 25 132 44 49 Dec.. . 1,733 70 41 80 10 26 146 41 67 1963—Jan.... 1,693 75 43 73 9 21 131 38 61 Feb... 1,685 80 43 70 12 21 140 39 66 Mar... 1,743 81 40 69 13 19 142 44 64 Apr.*. 1,867 73 40 73 13 17 141 44 64 1,900 69 38 75 91 13 18 56 51 43 1 Not reported separately until May 1963. 8 Until May 1963 includes also African countries other than Congo 2 Includes $58 million reported by banks initially included as of Dec. 31, (Leopoldville), South Africa, and U.A.R. (Egypt). 1961, of which $52 million reported for Japan. 3 Until May 1963 includes Eastern European countries other than NOTE.—Short-term claims are principally the following items payable U.S.S.R., Czechoslovakia, Poland, and Rumania. on demand or with a contractual maturity of not more than 1 year: loans * Czechoslovakia, Poland, and Rumania only until May 1963. made to and acceptances made for foreigners; drafts drawn against 5 Bolivia, Dominican Republic, El Salvador, and Guatemala only until foreigners where collection is being made by banks and bankers for May 1963. their own account or for account of their customers in the United States; 6 Until May 1963 includes also the following Latin American Repub- and foreign currency balances held abroad by banks and bankers and lics: Costa Rica, Ecuador, Haiti, Honduras, Jamaica, Nicaragua, Para- their customers in the United States. Excludes convertible currencies guay, and Trinidad and Tobago. held by U.S. monetary authorities. 7 Includes Africa until May 1963. See also NOTE to Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1023 4. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total O i t n i f o s f n t i i c s t i u a i - l Lo B a a n n s k t s o— Others C s t t o o i i a o n u l n l n g t e d - s c - - A f m c o a c r a c e e c d p ig t e t . a n f o n e o f r c r s es Other Total f D or e e w p ig i o t n h s e it r s s F c o s o r e m f e c p i i n u m g a a r p n n l i e . t c i r g e e a o s n , v d t. Other 1958 2,542 2,344 401 439 428 421 656 198 181 16 1959 r2,624 2,406 351 498 460 516 582 217 203 15 1960 3,614 3,135 290 524 482 605 1,233 480 242 238 1961 4,746 4,160 329 699 618 694 1,821 586 385 200 1961 2 4,804 4,217 329 709 622 700 1,857 586 386 200 1962—May 4,943 4,430 473 854 575 717 1,811 513 296 217 June 4,880 4,399 504 834 545 703 1,813 481 316 165 July 4,877 4,387 476 828 560 701 1,822 490 311 179 Aug 4,833 4,370 455 818 605 698 1,793 463 304 159 Sept 4,811 4,318 475 802 593 690 1,759 493 312 181 Oct 4,955 4,330 428 816 632 706 1,749 625 419 207 Nov 4,866 4,294 371 824 644 718 1,736 572 364 208 Dec 5,100 4,556 359 953 651 739 1,855 544 371 173 1963—Jan 4,886 4,376 322 845 658 689 1,861 510 347 163 Feb 5,003 4,470 293 853 672 740 1,912 534 359 175 Mar 5,055 4,489 255 850 680 708 1,996 566 375 191 Apr.^ 5,234 4,655 236 825 686 802 2,106 579 383 196 May*7 5,291 4,710 174 790 682 751 2^004* 309 581 389 152 41 1 Includes central banks. 2 These figures reflect the inclusion of data for banks initially included as of Dec. 31, 1961. 5. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars End of period Total Payable in foreign currencies Total Loans All other 1958 1,362 1959. . . . .. . ... 1,545 I960 1,698 1961 .... .... 2,034 1962 May 2,094 June 2,189 July 2 209 Aug. . ... 2,200 Sept 2,184 Oct 2,131 Nov 2,144 Dec 2,151 1963—Jan 2,139 Feb . 2,112 Mar 2,124 Aprv 2,164 Mayp 2,346 2,346 2,3J3 33 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1024 INTL. CAPITAL TRANSACTIONS OF THE U.S. JULY 1963 6. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. Govt. bonds and notes l U. s S e . c u c r o it r i p e o s r 2 ate Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e - s Sales c N ha s e a t s e le p s s u o r r - c P ha u s r- es Sales c N ha s e a t s e le p s s u o r r - c P ha u s r- es Sales c N ha s e a t s e l p e s s u o r- r regional Total Official Other 1959 689 165 524 2,593 2,158 435 946 1,458 -512 566 804 — 238 I960 127 225 -98 2,419 2,167 252 883 1,445 -562 509 592 -83 1961 512 532 -20 3,384 3 161 223 802 1,262 -460 596 966 — 370 1962 -728 — 521 — 207 2 568 2 508 60 1 093 2 037 —944 702 806 104 1962 Mav — 156 — 93 — 63 286 260 26 125 301 — 176 79 79 * June -21 -5 -16 245 309 -64 56 136 -80 70 110 -40 July 26 — 7 33 168 200 — 32 64 89 — 24 48 38 10 Aus — 211 — 198 — 13 160 156 4 50 65 — 15 48 64 — 16 Sept -8 32 -40 125 140 -15 44 100 -57 44 39 4 Oct — 34 14 — 48 155 160 _5 251 419 — 168 58 41 17 Nov — 67 — 74 7 210 198 12 70 201 — 131 69 48 22 Dec 62 -23 85 195 211 -16 60 216 -157 61 61 * 1963 Jan 127 21 106 215 202 12 56 314 — 258 58 59 _ i Feb . . . r_44 -6 r-38 183 190 — 7 61 214 — 153 50 59 — 9 Mar 45 40 177 176 * 84 186 — 102 60 72 12 Apr v 12 7 5 273 235 38 119 179 -60 66 73 _7 May33 206 101 105 127 -21 310 239 71 143 409 -265 67 71 -4 1 Excludes nonmarketable U.S. Treasury bonds and notes held by NOTE.—Statistics include transactions of international organizations. official institutions of foreign countries; see Table 7. See also NOTE to Table 1. 2 Includes small amounts of State and local govt. securities. 7. NONMARKETABLE U.S. TREASURY BONDS AND NOTES HELD BY OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars) Payable in foreign currencies Payable in dollars End of period Total Austria Belgium Germany Italy Switzerland Total Canada Italy 1962—Sept Oct 48 25 23 Nov 201 150 51 Dec 251 200 51 1963 Jan 381 100 200 81 183 125 Feb 481 200 200 81 183 125 Mar 481 200 200 81 183 125 Apr 551 25 200 200 126 183 125 May 605 25 30 200 200 150 183 125 June 605 25 30 200 200 150 183 125 00 00 03 58 58 58 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1963 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1025 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 Stocks Bonds France S l z a w e n r i d - t- U K d n i o n i m t g e - d E O u t r h o e p r e E T u o ro ta p l e Canada A L i m a c t a e in r- Asia Africa i O c t o r t i u h e n e s r - reg I a n i n o t d l n . al 1959 435 363 73 40 254 15 71 379 -30 40 25 -: 22 1960 252 202 50 38 171 -48 72 234 -45 36 13 14 1961 223 323 -99 21 166 -17 61 232 -112 44 44 12 1962 60 111 -51 4 129 -33 24 124 -43 -20 -18 17 1962—May.. 26 28 2 2 21 13 7 43 1 -10 -9 1 June.. -64 -65 -2 -6 -29 1 -36 -14 -4 -10 1 J A u u ly g . . . . . . -32 3 -18 4 -13 * -2 1 6 3 - - 2 1 8 3 -3 i -2 -3 3 -13 -2 * 2 6 2 1 O N Se o c p t v t . . . . . . . . . - - 1 5 1 5 2 - - 9 4 21 - - - 6 2 8 - - 1 1 * -16 8 9 5 -4 * i -1 -1 0 6 -4 2 -3 * 1 -2 7 i 2 1 1 Dec... -16 -4 -12 3 -11 -3 2 -15 2 -5 * 2 1963—Jan.... 12 3 9 -1 -2 4 4 4 1 4 2 F M e a b r . . . . . . -7 -9 * 2 - - 1 1 - - 1 2 0 1 3 1 -5 7 -2 3 -7 1 * * * A M p a r y . P p. . 7 3 1 8 6 3 0 7 1 1 0 * * -4 2 4 3 3 9 -5 4 4 3 5 3 -3 1 5 2 6 3 6 4 * 3 1 1 Not reported separately until May 1963. NOTE.—Statistics include small amounts of State and local govt. securities. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM 10. DEPOSITS, U.S. GOVT. SECURITIES, AND FOREIGN SECURITIES, BY AREA GOLD HELD AT F.R. BANKS FOR FOREIGNERS (In millions of dollars) (In millions of dollars) Period Total g I a i r n o n e t n - d l a . l c T e f o o o i u g t r a n n - l - r E o u p - e C d a a na- A L i a m c t a i e n r- Asia Africa i O c t o r t i u h e n e s r - E pe n r d i o o d f Deposits U.S. A G ss o e v ts t . in c E u a s r to m d a y rked tries securities1 gold 1959 -750 -157 -593 -50 -443 11 -97 -15 1958 272 3,695 8 538 I960 -645 -147 -498 -117 -196 -107 -41 -36 1959 345 4,477 9,861 1961 -830 -832 -262 -318 -58 -121 -73 1960 217 5,726 11,843 1962 -1,048 -235 -813 -188 -360 -41 -175 -50 1961 279 6*006 11^905 1962—May -176 -11 -165 -22 -91 -3 -26 -23 1962—June.. 334 6,228 12,368 June -120 -119 -68 -31 -18 -5 3 July... 248 6,026 12,678 July -15 1 -16 2 8 * -26 Aug... 168 6,407 12,689 Aug -31 4 -35 -32 2 * -5 1 Sept... 229 6,767 12,687 Sept -52 9 -61 8 -14 2 -57 * Oct.... 182 7,137 12,706 Oct -151 -4 -147 29 -126 -19 -6 -24 Nov... 202 7,132 12,680 Nov -109 -10 -99 4 -95 * -10 2 Dec... 247 6,990 12,700 Dec -156 -78 -78 2 -45 -7 -36 7 1963—Jan.... 197 7,033 12,789 1963— F ja e n b - - 1 2 6 5 2 9 -35 6 - -1 2 6 2 7 4 -3 « - - 1 1 9 2 7 5 -1 -3 2 - - 3 1 4 2 * F M e a b r . . . . . . 2 1 0 9 1 2 7 7 , ,0 2 7 7 9 7 1 1 2 2 , , 8 7 3 8 6 9 Mar -114 -29 -85 -42 -27 1 -19 2 Apr... 160 7,478 12,815 Apr.P -67 -62 37 * 1 -13 -30 May.. 171 7,886 12,878 Mayp -269 3 -272 -23 -208 * -42 * * June.. 175 7,957 12,917 1 Not reported separately until May 1963. 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

1026 INTL. CAPITAL TRANSACTIONS OF THE U.S. JULY 1963 11. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONFINANOAL CONCERNS (End of period; in millions of dollars) Liabilities to foreigners Claims on foreigners 5th revised ser. * 6th s r c e r v . i i sed 5th revised ser. * 6th s r e e r v . i i sed Area and country 1962 1962 1962 1962 1962 1962 I II II m rv* IV* I n n in IV* IV* Europe: 2 2 2 3 2 2 3 4 5 4 6 6 Belgium 27 23 24 24 21 21 26 22 25 27 24 24 5 4 5 5 3 3 6 7 8 6 8 8 Finland 1 1 1 1 1 1 2 2 4 3 3 France 33 28 30 34 32 32 46 37 43 49 51 51 Germany Fed Rep. of. 30 32 34 38 33 33 101 118 130 106 116 117 2 2 2 3 1 1 3 4 4 6 5 5 Italy 24 22 25 27 28 28 51 60 67 62 75 78 Netherlands 43 41 41 27 26 26 35 43 47 37 31 31 8 8 8 9 10 10 10 12 12 13 15 15 Portugal 1 1 1 1 1 1 7 7 7 6 6 6 10 8 8 11 9 9 12 14 16 15 20 20 Sweden 8 7 7 7 7 7 21 22 23 25 15 15 25 15 18 25 24 24 28 24 27 34 29 29 4 4 4 4 4 4 5 4 5 6 4 4 120 117 122 115 93 94 194 165 178 245 227 238 5 6 6 4 4 4 2 2 2 2 3 3 Other 2 2 3 2 2 2 8 5 7 6 7 7 Total 350 323 341 341 301 302 560 552 609 654 645 661 45 47 58 67 80 81 687 679 723 824 732 753 Latin America: 6 8 9 9 9 9 36 34 36 32 33 34 Bolivia 1 1 1 2 2 3 3 4 4 4 4 27 25 26 23 17 17 60 59 68 90 106 106 Chile 4 4 5 5 4 4 21 21 24 25 25 25 2 3 3 3 4 4 13 14 16 17 15 15 Cuba 2 2 2 1 • • 5 6 6 6 6 6 Dominican Republic 1 1 1 2 2 2 3 4 4 4 6 6 E G l u S a a te lv m a a d l o a r * 8 4 * 6 • 7 1 6 1 6 1 4 5 2 3 41 5 3 5 6 3 2 5 6 3 3 5 6 2 5 4 6 3 Neth Antilles and Surinam .... 12 8 8 5 5 5 2 3 3 2 6 6 27 15 15 18 25 25 9 10 11 10 13 13 Peru 6 4 5 3 8 8 14 12 14 23 20 20 3 2 2 5 1 1 4 4 5 5 6 6 19 19 21 19 23 24 46 38 44 38 33 33 Other 8 8 9 16 20 20 28 31 39 43 44 45 Total 126 105 112 118 126 127 295 288 336 362 379 383 Asia: 3 2 2 2 2 2 4 3 3 4 4 4 6 4 8 10 11 11 15 24 40 29 34 35 6 2 2 2 2 2 3 2 3 3 3 3 6 5 7 6 6 6 8 6 7 6 7 7 Israel 3 1 1 1 2 2 11 10 14 12 10 10 Japan 68 57 59 66 48 52 100 96 101 112 119 123 Korea. Rer> of ... * * * 1 3 3 2 3 3 3 4 4 Philippines 9 1 4 5 5 * 3 * 3 * 5 3 9 4 1 5 1 1 3 0 1 3 0 1 3 1 Thailand 3 *5 *5 3 4 4 3 3 3 4 5 5 Other 11 16 17 15 12 12 22 31 33 30 26 26 Total 115 98 107 111 92 96 176 192 223 215 226 231 All other: 13 13 13 14 11 11 25 23 25 24 24 24 Congo Rep of the * * * * * * 3 2 3 3 3 3 South Africa 11 12 14 12 12 12 8 9 10 10 10 10 U A R. (Egypt) 2 1 1 1 1 1 15 15 17 13 10 10 Other 15 16 18 12 13 13 14 17 22 27 25 26 Total 42 43 46 40 37 37 64 66 77 76 73 73 International * * * « * 1 1 Grand total 677 616 665 678 636 642 1,783 1,777 1,969 2,132 2,056 2,102 1 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) and on Dec. 31,1962 (6th 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

JULY 1963 U.S. BALANCE OF PAYMENTS 1027 U.S. BALANCE OF PAYMENTS (In millions of dollars) 1961 1962 1963 Item 1960 1961 1962 IV III IV A. Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets and other than special U.S. Govt. transactions— Seasonally adjusted Exports of goods and services—Total 1 26,974 28,311 29,790 7,273 7,206 7,610 7,550 7,424 7,366 Merchandise 19,459 19,913 20,479 5,121 5,022 5,262 5,270 4,925 4,998 Investment income receipts, private. 2,873 3,464 3,850 871 904 940 946 1,060 1,005 Military sales 335 402 660 100 113 190 141 216 183 Other services 4,307 4,532 4,801 1,181 1,167 1,218 1,193 1,223 1,180 Imports of goods and services—Total -23,205 -22,867 -24,964 -6,013 -6,119 -6,222 -6,282 -6,341 -6,173 Merchandise -14,723 -14,497 -16,145 -3,881 -3,942 -4,030 -4,127 -4,046 -3,985 Military expenditures -3,048 -2,934 -3,028 -717 -754 -748 -732 -794 -741 Other services -5,434 -5,436 -5,791 -1,415 -1,444 -1,423 -1,501 -1,447 -1,423 Balance on goods and services 1. . . . 3,769 5,444 4,826 1,260 1,388 1,268 1,083 1,193 1,087 Remittances and pensions -672 -705 -736 -174 -182 -176 -187 -217 -191 1. Balance on goods, services, remittances and 3,097 4,739 4,090 1,086 896 1,206 1,092 896 976 2. U.S. Gort. grants and capital flow, net, excluding advance debt repayments -2,775 -3,370 -3,520 -993 -907 -853 -849 -911 -906 Grants 2,3 -1,664 -1,854 -1,903 -475 -537 -466 -434 -466 -452 Long-term loans and subscriptions 3 -1,213 -1,941 -2,133 -685 -480 -507 -486 -660 -557 Change in foreign currency holdings and short-term claims, net (increase, —) 3, 4.... -527 -261 -248 -67 -48 -154 -74 28 -63 Seasonal adjustment on three preceding items combined 41 -10 46 -50 14 -10 Change in associated liabilities 41 80 147 40 13 44 65 25 33 Scheduled loan repayments 588 606 617 153 155 184 130 148 143 3. Private capital flows, net, excluding foreign liquid assets in U.S -3,552 -3,507 -3,118 -1,123 -689 -819 -70S -902 -943 U.S. direct investments abroad -1,694 -1,598 -1,557 -397 -199 -506 -359 -493 -556 U.S. long-term capital, other -850 -1,011 -1,209 -464 -357 -329 -188 -335 -457 Foreign long-term investments in U.S 430 466 271 123 195 66 -10 20 28 U.S. short-term capital -1,348 -1,541 -507 -419 -305 1 -164 -39 55 Foreign short-term capital 5 -90 177 -116 34 -23 -51 13 -13 -55 4. Errors and unrecorded transactions... -683 -905 -1,025 -303 -27 -37 -469 -44 -492 Balance of A (= 1+2+3+4) -3,913 -3,043 -3,573 -1,333 -727 -503 -934 -917 Less: Net seasonal adjustments -74 -113 -129 337 -1,409 -137 Balance of A before seasonal adjustment. -3^643 -3^573 -1,259 -614 -374 -1,271 -95 -780 -1,314 B. Changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets, and special U.S. Govt. transactions—Not seasonally adjusted Total 3,913 3,043 3,573 1,259 614 374 1,271 1,314 780 Advance repayments on U.S. Govt. loans 6. 48 668 666 43 53 471 142 25 Advances on U.S. military exports, net.... -16 5 470 16 142 -2 107 223 23 Sales of nonconvertible nonmarketable securities,1 net 251 251 63 Dollar securities 58 Foreign currency securities 251 *25i 5 Sales of convertible nonmarketable securities,1 net. 350 Dollar securities 125 Foreign currency securities 225 Change in U.S. short-term liabilities reported by U.S. banks 8 and foreign holdings of marketable U.S. Govt. bonds and notes 1,438 1,764 653 432 46 486 -188 309 287 International and regional organizations 9 336 407 213 245 213 -3 -105 108 -64 Foreign private holders excluding banks io -151 81 134 73 44 270 -139 -41 56 Foreign commercial banks 104 595 -147 59 442 -243 -214 -132 384 Foreign official holders 1,149 681 453 55 -653 462 270 374 -89 Change in U.S. monetary reserve assets (increase, —). 2,443 606 1,533 768 426 -163 881 389 32 Net IMF position 741 -135 626 312 237 44 331 14 -46 Convertible currencies -116 17 -54 -114 -324 104 351 -33 Gold 1,702 857 890 510 303 117 446 24 111 1 Excludes military transfers under grants. 7 With maturities over 12 months. 2 Excludes military grants. * Includes official liabilities. 3 Not seasonally adjusted separately. 9 Other than International Monetary Fund. 4 Includes also very small amounts of changes in "misc. Govt. non- 10 Including undetermined holders. liquid liabilities." 5 Other than foreign liquid assets in U.S. NOTE.—Dept. of Commerce data. Minus sign indicates net payments 6 Includes sell-offs. (debits); absence of sign indicates net receipts (credits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1028 FOREIGN TRADE; MONEY RATES JULY 1963 MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports l Imports 2 Export surplus Period 1960 1961 1962 1963 1960 1961 1962 1963 1960 1961 1962 1963 Month: Jan ,561 1,623 1,655 3 982 1,213 1,161 1,327 3 1,093 348 462 328 3 -111 Feb ,566 1,712 1,812 32,131 1,307 1,150 1,315 3 1,493 259 562 497 3 637 Mar ,518 1,751 1,674 3 1,991 1,261 1,163 ',339 3 1,484 257 588 335 3 507 Apr ,622 1,662 1,803 3 1,918 1,315 1,152 ,364 1,423 308 510 439 3 495 May ,659 1,585 1,782 1,901 1,242 1,153 ,386 1,406 417 432 396 494 June ,634 3 1,582 1,838 1,252 1,174 ,342 382 3 408 496 July ,707 3 1,689 1,729 1,235 1,379 ,362 471 3 310 367 Aug ,625 1,689 1,687 1,227 1,254 ,364 398 435 323 Sept ,647 1,678 3 1,943 1,188 1,262 ,476 459 416 3 467 Oct ,668 1,780 3 1,493 1,178 1,300 ,319 490 480 3 174 Nov ,681 1,733 1,695 1,126 1,309 ,432 555 424 263 Dec ,645 1,725 3 1,839 1,109 1,315 3 1,372 537 410 3 467 Quarter: I 4,645 5,086 5,141 3 5,104 3,781 3,474 3,981 3 4,070 864 1,612 1,160 3 1,033 II 4,915 3 4,829 5,423 3,809 3 3,479 4,092 1,107 3 1,350 1,331 Ill 4,979 3 5,056 3 5,359 3,650 3 3,895 3 4,202 1,328 3 1,161 3 1,157 IV 4,994 5,238 3 5,027 3,413 3,924 34,123 1,582 1,314 3 904 Year 4 19,609 20,152 20,901 14,654 14,713 16,397 4,955 5,439 4,504 irExports of domestic and foreign merchandise; excludes Dept. of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus NOTE.—Bureau of the Census data. entries into bonded warehouses. OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Germany Netherlands Sw la i n tz d er- Month 3 T m r b e o i a l s n ls u t , h ry s1 m D o a d n y a e - y t y o - 2 3 B a a a m c n n c c o k e e n p e s t t r , h - s' s T 3 r m b e i a o l s l n s u , t r h y s D m a d o y a n - y e to y - a B d ll e a o p n o w o k n a s e i n r t s c s ' e m D o a d n y a e - y t y o - 3 T d r 6 b e a 0 i a y l - s l s 9 s u 0 , 4 ry m D o a d y n a - e y t y o - * 3 T r m b e i a o l s l n s u , t r h y s D m a d o y a n - y e to y - d P is r r i c a v o t a e u t n e t 1960—Dec 3.53 3.16 4.64 4.44 3.88 3.12 3.70 3.75 4.31 1.51 1.13 2.00 1961—Dec 2.82 2.37 5.61 5.35 4.83 4.00 3.58 2.00 3.06 1.32 1.11 2.00 1962—May 3.36 3.00 4.14 3.94 3.24 2.50 3.98 2.13 2.56 2.46 1.75 2.00 June 4.48 3.55 3.98 3.80 3 30 2.50 3.59 2.25 3.31 1,32 1.69 2.00 July 5.47 4.89 4.09 3.90 3.33 2.50 3.66 2.38 2.94 >.21 1.78 2.00 Aug 5.15 5.03 4.02 3.79 3.32 2.50 3.46 2.50 2.50 L.53 1.03 2.00 Sept 5.03 4.99 3.93 3.69 3.36 2.50 3.48 2.50 3.06 .57 L10 2.00 Oct 4.46 4.64 3.92 3.71 3.16 2.50 3.51 2.63 2.50 .96 1.50 2.00 Nov 3.81 3.82 4.03 3.77 3.31 2.50 3.50 2.63 2.56 .85 L47 2.00 Dec 3.88 3.75 3.86 3.64 3.30 2.50 3.51 2.63 3.50 1.98 1.24 2.00 1963—Jan 3.82 3.68 3.69 3.51 2.85 2.04 3.39 2 63 2.50 L .93 L.66 2.00 Feb 3.68 3.52 3.63 3.45 2.82 2.00 3.45 2.63 2.94 1.67 1.00 2.00 Mar 3.63 3.55 3.70 3.55 2.82 2.00 3.43 2.63 3.50 1.88 1.79 2.00 Apr 3.58 3.60 3.88 3.71 2.84 2.00 3.92 2.63 3 06 [.91 1.67 2.00 May 3.33 3.33 3.88 3.67 2.92 2.00 2.63 2.94 1.96 1.58 2.00 1 Based on average yield of weekly tenders during month. NOTE.—For description of rates and back data, see "International 2 Based on weekly averages of daily closing rates. Finance," Section 15 of Supplement to Banking and Monetary Statistics, 3 Rate shown is on private securities. 1962. * 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

JULY 1963 MONEY RATES 1029 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months June 30, 1962 Rate Country 1962 1963 Ju a n s e o 3 f 0, Per Month 1963 cent effective July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 6.0 Dec. 1957 6.0 Austria 5.0 Mar. 1960 4.5 4.5 Belgium 4.0 Mar. 1962 3.75 3 5 3.5 Brazil 10.0 Apr. 1958 10.0 Burma 4.0 Feb. 1962 4.0 Canada 1 6.0 June 1962 5.5 5.0 4.0 3.5 3.5 Ceylon 4.0 Aug. 1960 4.0 Chile 2 15.27 Jan. 1962 14.62 14.2 14.2 Colombia 5.0 Aug. 1959 8 0 8.0 Costa Rica 3.0 Apr. 1939 3.0 Cuba 6.0 Jan. 1960 6.0 6.5 May 1961 6.5 5.0 Nov. 1956 5.0 Egypt 5.0 May 1962 5.0 El Salvador 6.0 June 1961 6.0 7.0 Apr. 1962 7.0 France 3.5 Oct. 1960 3.5 Germany 3.0 May 1961 3.0 Greece 6.0 Nov. 1960 5.5 5.5 Honduras ^ . . 3.0 Jan. 1962 3.0 Iceland .. . .. 9,0 Dec. 1960 9.0 India 4 4.0 May 1957 4.5 4.5 3.0 Apr. 1946 3.0 Iran ......... 6.0 Nov. 1960 6.0 Ireland 4.09 June 1962 4.0 3.94 4.06 3.86 3.69 4.03 53.88 3.88 Israel 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 3.5 7.3 Sept. 1961 6.94 6.57 6.21 5.84 5.84 Mexico 4.5 June 1942 4.5 Netherlands 4.0 Apr. 1962 3.5 3.5 7.0 Mar. 1961 7.0 6.0 Apr. 1954 6.0 Norway 3.5 Feb. 1955 3.5 4.0 Jan. 1959 4.0 Peru 9.5 Nov. 1959 9.5 Philippine Republic < 6.0 Jan. 1962 6.0 2.0 Jan. 1944 2.0 South Africa 4.0 June 1962 3 5 3.5 4.0 June 1961 4.0 Sweden . . .. 4 0 June 1962 3 5 4.6 4.0 2.0 Feb. 1959 2.0 Thailand 7.0 Feb. 1945 7.0 Turkey 7.5 May 1961 7.5 United Kingdom 4.5 Apr. 1962 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 k 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 rediscounts remain subject to old rates provided their amount is reduced by Brazil—8 per cent for secured paper and 4 per cent for certain agricultural one-eighth each month beginning with May 1, 1959, but the rates are paper; raised by 1.5 per cent for each month in which the reduction does not Colombia—5 per cent for warehouse receipts covering approved lists of occur. products and 6 and 7 per cent for agricultural bonds; 3 Rate shown is for advances only. Costa Rica—5 per cent for paper related to commercial transactions 4 Rate applies to advances against commercial paper as well as against (rate shown is for agricultural and industrial paper); govt. securities and other eligible paper. Cuba—5.5 per cent for sugar loans and 5 per cent for loans secured by 5 Effective May 31, 1963. On May 3, 1963 the rate had been changed to 3.94 per cent. national public securities; 6 Beginning with June 1, 1962, the rediscount rate for commercial Ecuador—6 per cent for bank acceptances for commercial purposes; bank loans financing the purchase of surplus agricultural commodities Indonesia—various rates depending on type of paper, collateral comunder U.S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, modity involved, etc.; 1962, the rediscount rate for commercial bank financing of 9 categories of development loans was reduced from 6 to 3 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

1030 FOREIGN EXCHANGE RATES JULY 1963 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Argentina (peso) Aus- Period (p tr o a u l n ia d) (s A ch u i s l t l r in ia g) B ( e fr l a g n iu c m ) C (d a o n l a la d r a ) C (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n 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 1960 1.2026 223.71 3.8461 2.0053 103.122 21.048 14.505 .3112 20.389 1961 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .3110 20.384 1962 i .9080 223.73 3.8685 2.0093 293.561 21.034 14.490 .3107 20.405 1962—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 3 31.056 420.405 Feb., .7422 223.38 3.8676 2.0073 92.777 21.011 14.480 31.057 20.405 Mar. .7362 223.16 3.8681 2.0049 92.746 21.005 14.492 31.057 20.405 Apr. .7252 223.16 3.8676 2.0058 92.851 21.014 14.491 31.055 20.405 May .7266 223.08 3.8677 2.0055 92.810 21.014 14.477 31.057 20.405 June .7265 223.12 3.8702 2.0036 92.722 21.015 14.490 31.057 20.405 Period G (d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) ( M do a s l i l a l a a y r - ) M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - 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—June. 25.039 21.030 280.83 .16109 .27628 32.691 8.0056 27.806 278.05 July. 25.084 21.019 280.66 .16110 .27628 32.713 8.0056 27.821 277.88 Aug. 25.020 21.008 280.38 .16110 .27631 32.746 8.0056 27.742 277.61 Sept. 24.996 20.971 280.09 .16110 .27852 32.738 8.0056 27.755 277.32 Oct.. 24.963 20.963 280.13 .16106 .27902 32.745 8.0056 27.748 277.36 Nov. 24.947 20.970 280.19 .16104 .27901 32.751 8.0056 27.748 277.42 Dec. 25.031 20.989 280.33 .16105 .27897 32.790 8.0056 27.779 277.56 1963—Jan.. 24.966 20.996 280.48 .16104 .27894 32.817 8.0056 27.772 277.71 Feb.. 24.985 20.984 280.34 .16102 .27892 32.717 8.0056 27.773 277.56 Mar. 25.023 20.963 280.06 .16102 .27886 32.633 8.0056 27.808 277.29 Apr.. 25.045 20.964 280.07 .16100 .27716 32.594 8.0056 27.828 277.30 May. 25.090 20.962 279.96 .16097 .27582 32.586 8.0056 27.815 277.19 June. 25.121 20.965 280.02 .16081 .27563 32.595 8.0056 27.780 277.25 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 - ) (po S un o d u ) th Af ( ri 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 ( S e fr r w a la n it n 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 .6635 19.349 23.152 280.76 1961. 14.000 3.4909 279.48 139.57 .6643 19.353 23.151 280.22 1962. 14.010 3.4986 139.87 .6654 19.397 23.124 280.78 1962—June 14.013 3.5011 139.89 .6651 19.436 23.172 280.83 July 14.005 3.5000 139.80 .6651 19.428 23.162 280.66 Aug 13.994 3.4996 139.67 .6651 19.432 23.136 280.38 Sept 13.982 3.5018 139.52 .6659 19.410 23.129 280.09 Oct 13.983 3.4899 139.54 .6661 19.409 23.139 280.13 Nov 13.989 3.4900 139.57 .6662 19.363 23.170 280.19 Dec 14.000 3.4902 139.64 .6664 19.278 23.167 280.33 1963—Jan 14.000 3.4900 139.72 .6665 19.313 23.120 280.48 Feb 13.995 3.4900 139.64 .6664 19.290 23.123 280.34 Mar 13.995 3.4901 139.51 .6661 19.264 23.102 280.06 Apr 13.999 3.4901 139.51 .6663 19.251 23.099 280.07 May 13.995 3.4900 139.46 .6663 19.267 23.127 279.96 June 13.997 3.4900 139.49 .6663 19.286 23.125 280.02 1 Quotations not available Mar. 20-Apr. 3, 1962. unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. 2 Effective May 2,1962, the par value of the Canadian dollar was set at 9 2.5 U.S. cents. NOTE.—Averages of certified noon buying rate* in New York for 3 A new markka, equal to 100 old markkaa, was introduced on Jan. 1, cable transfers. For description of rates and back data, see "International 1963. Finance," Section 15 of Supplement to Banking and Monetary Statistics, 4 Effective Jan. 1, 1963, the franc again became the French monetary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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BOARD OF GOVERNORS of the Federal Reserve System WM. MCC. MARTIN, JR., Chairman C. CANBY BALDERSTON, Vice Chairman A. L. MILLS, JR. CHAS. N. SHEPARDSON G. H. KING, JR. J. L. ROBERTSON GEORGE W. MITCHELL RALPH A. YOUNG, Adviser to the Board CHARLES MOLONY, Assistant to the Board ROBERT L. CARDON, Legislative Counsel CLARKE L. FAUVER, Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF EXAMINATIONS MERRITT SHERMAN, Secretary FREDERIC SOLOMON, Director KENNETH A. KENYON, Assistant Secretary ROBERT C. MASTERS, Associate Director ELIZABETH L. CARMICHAEL, Assistant Secretary GLENN M. GOODMAN, Assistant Director LEGAL DIVISION HENRY BENNER, Assistant Director HOWARD H. HACKLEY, General Counsel JAMES C. SMITH, Assistant Director DAVID B. HEXTER, Assistant General Counsel BRENTON C. LEAVITT, Assistant Director THOMAS J. O'CONNELL, Assistant General ANDREW N. THOMPSON, Assistant Director Counsel LLOYD M. SCHAEFFER, Chief Federal Reserve JEROME W. SHAY, Assistant General Counsel Examiner WILSON L. HOOFF, Assistant General 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 ROBERT C. HOLLAND, Adviser DIVISION OF ADMINISTRATIVE SERVICES KENNETH B. WILLIAMS, Adviser LEWIS N. DEMBITZ, Associate Adviser JOSEPH E. KELLEHER, Director ROBERT SOLOMON, Associate Adviser HARRY E. KERN, Assistant Director DIVISION OF INTERNATIONAL FINANCE OFFICE OF THE CONTROLLER RALPH A. YOUNG, Director J. HERBERT FURTH, Adviser J. J. CONNELL, Controller A. B. HERSEY, Adviser SAMPSON H. BASS, Assistant Controller ROBERT L. SAMMONS, Adviser SAMUEL I. KATZ, Associate Adviser OFFICE OF DEFENSE PLANNING RALPH C. WOOD, Associate Adviser INNIS D. HARRIS, Coordinator DIVISION OF BANK OPERATIONS JOHN R. FARRELL, Director DIVISION OF DATA PROCESSING GERALD M. CONKLING, Assistant Director M. B. DANIELS, Assistant Director M. H. SCHWARTZ, Director JOHN N. KILEY, JR., Assistant Director LEE W. LANGHAM, Assistant Director 1032 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET COMMITTEE AND ADVISORY COUNCIL 1033 Federal Open Market Committee WM, MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON WATROUS H. IRONS J. L. ROBERTSON KARL R. BOPP G. H. KING, JR. CHARLES J. SCANLON GEORGE H. CLAY A. L. MILLS, JR. CHAS. N. SHEPARDSON GEORGE W. MITCHELL RALPH A. YOUNG, Secretary MERRITT SHERMAN, Assistant Secretary DAVID P. EASTBURN, Associate Economist KENNETH A. KENYON, Assistant Secretary J. HERBERT FURTH, Associate Economist HOWARD H. HACKLEY, General Counsel GEORGE GARVY, Associate Economist DAVID B. HEXTER, Assistant General Counsel RALPH T. GREEN, Associate Economist GUY E. NOYES, Economist ROBERT C. HOLLAND, Associate Economist ERNEST T. BAUGHMAN, Associate Economist ALBERT R. KOCH, Associate Economist DANIEL H. BRILL, Associate Economist CLARENCE W. TOW, 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1034 FEDERAL RESERVE BULLETIN • JULY 1963 Federal Reserve Banks and Branches Federal Reserve Bank Chairman President Vice President or branch Deputy Chairman First Vice President in charge of branch Boston Erwin D. Canham George H. Ellis William Webster Earle O. Latham New York Philip D. Reed Alfred Hayes James DeCamp Wise William F. Treiber Buffalo Thomas E. LaMont Insley B. Smith Philadelphia Walter E. Hoadley Karl R. Bopp David C. Bevan Robert N. Hilkcrt Cleveland Joseph B. Hall W. Braddock Hickman Logan T. Johnston Donald S. Thompson Cincinnati Howard E. Whitaker Fred O. Kiel Pittsburgh William A. Steele Clyde E. Harrell Richmond Edwin Hyde Edward A. Wayne William H. Grier Aubrey N. Heflin Baltimore Harry B. Cummings Donald F. Hagner Charlotte George H. Aull Edmund F. MacDonald Atlanta Jack Tarver Malcolm Bryan Henry G. Chalkley, Jr. Harold T. Patterson Birmingham Selden Sheffield Edward C. Rainey Jacksonville Harry T. Vaughn Thomas A. Lanford Nashville W. N. Krauth Robert E. Moody, Jr. New Orleans Kenneth R. Giddens Morgan L. Shaw Chicago Robert P. Briggs Charles J. Scanlon James H. Hilton Hugh J. Helmer Detroit James William Miller Russel A. Swaney St. Louis Ethan A. H. Shepley Harry A. Shuford J. H. Longwell Darryl R. Francis Little Rock Frederick P. Blanks Fred Burton Louisville Philip Davidson Donald L. Henry Menphis Edward B. LeMaster E. Francis DeVos Minneapolis Atherton Bean Frederick L. Deming Judson Bemis Albert W. Mills Helena John M. Ottcn Clement A. Van Nice Kansas City Homer A. Scott George H. Clay Dolph Simons Henry O. Koppang Denver Robert T. Person Cecil Puckett Oklahoma City James E. Allison Howard W. Pritz Omaha Clifford Morris Hardin George C. Rankin Dallas Robert O. Anderson Watrous H. Irons Morgan J. Davis Philip E. Coldwell El Paso William R. Mathews Roy E. Bohne Houston Max Levine J. Lee Cook San Antonio G. C. Hagelstcin Carl H. Moore San Francisco F. B. Whitman Eliot J. Swan John D. Fredericks H. Edward Hemmings Los Angeles Robert J. Cannon Clifford H. Watkins Portland Raymond R. Reter James A. Randall Salt Lake City Thomas B. Rowland Arthur L. Price Seattle Henry N. Anderson Erwin 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, D. C. 20551. 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 877-880 of the June 1963 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. (Copies ANNUAL REPORT OF THE BOARD OF GOVERNORS of the 1959 revision also are available at $.50 OF THE FEDERAL RESERVE SYSTEM. each.) FEDERAL RESERVE BULLETIN. Monthly. Subscrip- THE FEDERAL FUNDS MARKET—A Study by a tion prices: (1) $6.00 per annum or $.60 a Federal Reserve System Committee. 1959. Ill copy in the United States and its possessions, pp. $1.00 per copy; in quantities of 10 or more Bolivia, Canada, Chile, Colombia, Costa Rica, for single shipment, $.85 each. Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, DEBITS AND CLEARING STATISTICS AND THEIR Nicaragua, Panama, Paraguay, Peru, El Salva- USE (rev. ed.). 1959. 144 pp. $1.00 per copy; dor, Uruguay, and Venezuela. (2) Elsewhere, in quantities of 10 or more for single shipment, $7.00 per annum or $.70 per copy. (3) In quan- $.85 each. tities of 10 or more copies sent to one address in the United States, $5.00 per annum or $.50 per ALL-BANK STATISTICS, 1896-1955. Pt. I, U.S. Summary. Pt. II, Summaries by States and other copy per month. areas. 1959. 1,229 pp. $4.00. FEDERAL RESERVE CHART BOOK ON FINANCIAL THE FEDERAL RESERVE ACT, as amended through AND BUSINESS STATISTICS. Monthly. Annual October 1, 1961, with an Appendix containing subscription includes one issue of Historical provisions of certain other statutes affecting 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. $7.00 per annum or $.70 per copy. (3) In quan- 1955. 390 pp. $2.75. tities of 10 or more of same issue for single SUPPLEMENT TO BANKING AND MONETARY STAshipment, $.50 each. TISTICS. Sec. 1. Banks and the Monetary System. 1962. 35 pp. $.35. Sec. 10. Member Bank Re- HISTORICAL CHART BOOK. Issued annually in Sepserves and Related Items. 1962. 64 pp. $.50. tember. Annual subscription to monthly chart Sec. 11. Currency. 1963. 11 pp. $.35. Sec. 14. book includes one issue of the Historical. Prices: Gold. 1963. 24 pp. $.35. Sec. 15. International (1) $.60 each in the United States and the coun- Finance. 1962. 92 pp. $.35. tries listed above. (2) Elsewhere, $.70 each. (3) In quantities of 10 or more for single shipment, REGULATIONS OF THE BOARD OF GOVERNORS OF $.50 each. THE FEDERAL RESERVE SYSTEM. RULES OF ORGANIZATION AND PROCEDURE—BOARD TREASURY-FEDERAL RESERVE STUDY OF THE GOV- OF GOVERNORS OF THE FEDERAL RESERVE SYS- ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. TEM. 1962. 40 pp. Individual books $1.00 each; set of 3 books PUBLISHED INTERPRETATIONS of the Board, as of $2.50. December 31, 1962. $2.50. 1035 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1036 FEDERAL RESERVE BULLETIN - JULY 1963 REPRINTS INTEREST RATES AND MONETARY POLICY. Sept. 1962. 28 pp. (From Federal Reserve BULLETIN unless preceded by an asterisk) U.S. BALANCE OF PAYMENTS IN 1962. Oct. 1962. 8 pp. THE MONETARY SYSTEM OF THE UNITED STATES. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. Feb. 1953. 16 pp. 1962. 10 pp. FLOW OF FUNDS SEASONALLY ADJUSTED. NOV. FEDERAL FINANCIAL MEASURES FOR ECONOMIC 1962. 15 pp. STABILITY. May 1953. 7 pp. AUTOMATION AT COMMERCIAL BANKS. NOV. 1962. OPEN MARKET OPERATIONS IN LONG-TERM SE- 13 pp. CURITIES. Nov. 1958. 15 pp. A SECTORAL ANALYSIS OF VELOCITY. Dec. 1962. 14 pp. *PART I, ALL-BANK STATISTICS, 1896-1955. Reprint of the U.S. Summary containing a de- A NEW LOOK AT THE FARM DEBT PICTURE. Dec. scription of revised statistics for all banks in 1962. 18 pp. the United States, by class of bank, together MONEY AND BANK CREDIT IN 1962. Feb. 1963. 8 with revised statistics. Apr. 1959. 94 pp. pp. CONSUMER BUYING INTENTIONS AND QUARTERLY FARM DEBT AS RELATED TO VALUE OF SALES. Feb. 1963. 9 pp. SURVEY OF CONSUMER BUYING INTENTIONS. Combined reprint. Sept. 1960. 31 pp. CHANGES IN STRUCTURE OF THE FEDERAL DEBT. May 1963. 10 pp. SMALL BUSINESS FINANCING: CORPORATE MANU- FACTURERS. Jan. 1961. 15 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX- CHANGE OPERATIONS. Mar. 1963. 10 pp. STATISTICS ON THE GOVERNMENT SECURITIES FINANCING THE U.S. PAYMENTS DEFICIT. Apr. MARKET. Apr. 1961. 8 pp. 1963. 8 pp. SURVEY OF FINANCE COMPANIES, MID-1960. Oct. FEDERAL RESERVE OPEN MARKET OPERATIONS IN 1961. 21 pp. (Also, similar reprint from Apr. 1962. Apr. 1963. 29 pp. 1957 BULL.) NEGOTIABLE TIME CERTIFICATES OF DEPOSIT. Apr. 1963. 11 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. 1961. 15 pp. NEW FOREIGN BOND ISSUES IN THE U.S. MARKET. May 1963. 13 pp. REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. 1961. 3 pp. BANKING AND MONETARY STATISTICS, 1962. Selected series of banking and monetary statistics GROWTH IN INSTITUTIONAL SAVINGS. May 1962. for 1962 only. Feb., Mar., and May 1963. 16 9 pp. pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. RECENT CHANGES IN LIQUIDITY. June 1963. 10 pp. July 1962. 6 pp. INTEREST RATES TIME DEPOSITS, Mid-February REVISION OF MONTHLY DEPARTMENT STORE IN- 1963. June 1963. 7 pp. DEXES. July 1962. 6 pp. SURVEY OF COMMON TRUST FUNDS, 1962. June 1963. 6 pp. ECONOMIC AND CREDIT CONDITIONS. Aug. 1962. 5 pp. MONETARY DEVELOPMENTS, FIRST HALF '63. July 1963. 7 pp. REVISION OF MONEY SUPPLY SERIES. Aug. 1962. MEASURES OF MEMBER BANK RESERVES. July 11pp. 1963. 14 pp. REVISION OF WEEKLY DEPARTMENT STORE SALES BANK LOANS SECURED BY STOCKS AND BONDS. July INDEX. Aug. 1962. 3 pp. 1963. 19 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Statistical Tables Acceptances, bankers', 974, 976 Deposits—Continued Agricultural loans of commercial banks, 968, 970 Banks, by classes, 957, 964, 969, 972, 976 Assets and liabilities (See also Foreign liabilities and Federal Reserve Banks, 958, 1025 claims): Postal savings, 957, 963 Banks and the monetary system, consoli- Discount rates, 956, 1029 dated, 963 Discounts and advances by Federal Reserve Corporate, current, 988 Banks, 952, 958, 960 Domestic banks, by classes, 964, 968, 970, 976 Dividends, corporate, 987, 988 Federal Reserve Banks, 958 Dollar assets, foreign, 1017, 1025 Automobiles: Consumer instalment credit, 992, 993, 994 Earnings and hours, manufacturing industries, 1003 Production index, 996, 997 Employment, 1000, 1002, 1003 Bank holding companies, banking offices and deposits Farm mortgage loans, 989, 990 of group banks, 1012 Federal finance: Bankers' balances, 969, 971 Cash transactions, 978 (See also Foreign liabilities and claims) Receipts and expenditures, 979 Banks and the monetary system, consolidated state- Treasurer's balance, 978 ment, 963 Federal home loan banks, 983, 984, 991 Banks for cooperatives, 983, 984 Federal Housing Administration, 983, 984, 989, Bonds (See also U.S. Govt. securities): 990, 991 New issues, 984, 985, 986 Federal intermediate credit banks, 983, 984 Prices and yields, 974, 975 Federal land banks, 983, 984 Brokers and dealers in securities, bank Federal National Mortgage Assn., 983, 984, 991 loans to, 968, 970 Federal Reserve Banks: Business expenditures on new plant and equip- Condition statement, 958 ment, 988 U.S. Govt. securities held by, 952, 958, 960, Business indexes, 1000 980, 981 Business loans (See Commercial and industrial loans) Federal Reserve credit, 952, 958, 960 Federal Reserve notes, 958, 961 Capital accounts: Federally sponsored credit agencies, 983, 984 Banks, by classes, 964, 969, 972 Finance company paper, 974, 976 Federal Reserve Banks, 958 Financial institutions, loans to, 968, 970 Carloadings, 1000 Float, 952 Central banks, foreign, 1014, 1029 Flow of funds/saving, 1010 Coins, circulation of, 961 Foreign central banks, 1014, 1029 Commercial banks: Foreign currency operations, 958, 960, 1016, 1024 Assets and liabilities, 964, 967, 968 Foreign deposits in U.S. banks, 952, 958, 963, 969, Consumer loans held, by type, 993 972, 1025 Number, by classes, 964 Foreign exchange rates, 1030 Real estate mortgages held, by type, 989 Foreign liabilities and claims: Commercial and industrial loans: Banks, 1018, 1020, 1021, 1023, 1025 Commercial banks, 968 Nonflnancial concerns, 1026 Weekly reporting member banks, 970, 973 Foreign trade, 1028 Commercial paper, 974, 976 Condition statements (See Assets and liabilities) Gold: Construction, 1000, 1001 Certificates, 958, 961 Consumer credit: Earmarked, 1025 Instalment credit, 992, 993, 994, 995 Net purchases by U.S., 1016 Noninstalment credit, by holder, 993 Production, 1015 Consumer price indexes, 1000, 1006 Reserves of central banks and govts., 1014 Consumption expenditures, 1008, 1009 Reserves of foreign countries and international Corporations: organizations, 1017 Sales, profits, taxes, and dividends, 987, 988 Stock, 952, 963, 1016 Security issues, 985, 986 Govt. debt (See U.S. Govt. securities) Security prices and yields, 974, 975 Gross national product, 1008, 1009 Cost of living (See Consumer price indexes) Currency in circulation, 952, 961, 962 Hours and earnings, manufacturing industries, 1003 Customer credit, stock market, 975 Housing starts, 1001 Debits to deposit accounts, 960 Industrial production index, 996, 1000 Demand deposits: Instalment loans, 992, 993, 994, 995 Adjusted, banks and the monetary system, 963 Insurance companies, 977, 980, 981, 990 Adjusted, commercial banks, 960, 962, 969 Insured commercial banks, 966, 968 Banks, by classes, 957, 964, 972 Interbank deposits, 957, 964, 969 Turnover of, 960 Interest rates: Type of holder, at commercial banks, 969 Bond yields, 974 Department stores, 1000, 1004, 1005 Business loans by banks, 973 Deposits (See also specific types of deposits): Federal Reserve Bank discount rates, 956 Adjusted, and currency, 963 Foreign countries, 1028, 1029 1037 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1038 FEDERAL RESERVE BULLETIN • JULY 1963 Interest rates—Continued Reserves—Continued Open market, 974, 1028 Foreign countries and international organiza- Stock yields, 974 tions, 1017 Time deposits, maximum rates, 957 Member banks, 952, 954, 957, 969, 971 International capital transactions of the U.S., 1018 Residential mortgage loans, 989, 990, 991 International institutions, 1014, 1016, 1017 Inventories, 1008 Sales finance companies, consumer Investment companies, new issues, 986 loans of, 992, 993, 995 Investments {See also specific types of investments): Saving: Banks, by classes, 964, 968, 971, 976 Flow-of-funds series, 1010 Commercial banks, 967 National income series, 1009 Federal Reserve Banks, 958, 960 Savings deposits {See Time deposits) Life insurance companies, 977 Savings institutions, principal assets, 976, 977 Savings and loan assns., 977 Savings and loan assns., 977, 981, 990 Securities {See also U.S. Govt. securities): Labor force, 1002 Federally sponsored agencies, 983 Loans {See also specific types of loans): International transactions, 1024, 1025 Banks, by classes, 964, 968, 970, 976 New issues, 984, 985, 986 Commercial banks, 967 Silver coin and silver certificates, 961 Federal Reserve Banks, 952, 958, 960 State member banks, 966 Insurance companies, 977, 990 State and local govts.: Insured or guaranteed by U.S., 989, 990, 991 Deposits of, 969, 972 Savings and loan assns., 977, 990 Holdings of U.S. Govt. securities, 980, 981 New security issues, 984, 985 Manufactures, production index, 997, 1000 Ownership of obligations of, 968, 976, 977 Margin requirements, 957 Prices and yields of securities, 974, 975 Member banks: Stock market credit, 975 Assets and liabilities, by classes, 964, 968 Stocks: Borrowings at Federal Reserve Banks, 954, New issues, 985, 986 958, 972 Prices and yields, 974, 975 Deposits, by classes, 957 Number, by classes, 965 Tax receipts, Federal, 979, Reserve requirements, 957 Time deposits, 957, 962, 963, 964, 969, 972 Reserves and related items, 952 Treasurer's account balance, 978 Weekly reporting series, 970 Treasury cash, 952, 961, 963 Mining, production index, 997, 1000 Treasury currency, 952, 961, 963 Money rates {See Interest rates) Treasury deposits, 952, 958, 978 Money supply and related data, 962 Mortgages {See Real estate loans) Unemployment, 1002 Mutual savings banks, 963, 964, 966, 976, 980, U.S. balance of payments, 1027 981, 989 U.S. Govt. balances: Commercial bank holdings, by classes, 969, 972 Consolidated monetary statement, 963 National banks, 966 Treasury deposits at Federal Reserve National income, 1008, 1009 Banks, 952, 958, 978 National security expenditures, 979, 1008 U.S. Govt. securities: Nonmember banks, 966, 968, 969 Bank holdings, 963, 964, 968, 971, 976, 980, 981 Dealer transactions, positions, and financing, 982 Payrolls, manufacturing, index, 1000 Federal Reserve Bank holdings, 952, 958, 960, Personal income, 1009 980, 981 Postal Savings System, 957, 963 Foreign and international holdings, 958, Prices: 1017, 1025 Consumer, 1000, 1006 International transactions, 1024 Security, 975 New issues, gross proceeds, 985 Wholesale commodity, 1000, 1006 Outstanding, by type of security, 980, 981, 983 Production, 996, 1000 Ownership of, 980, 981 Profits, corporate, 987, 988 Prices and yields, 974, 975 United States notes, outstanding and in circula- Real estate loans: tion, 961 Banks, by classes, 968, 976, 989 Utilities, production index, 997, 1000 Type of holder, 989, 990, 991 Type of property mortgaged, 989, 990, 991 Vault cash, 952, 957, 969 Reserve requirements, member banks, 957 Reserves: Veterans Administration, 989, 990, 991 Central banks and govts., 1014 Commercial banks, 969 Weekly reporting member banks, 970 Federal Reserve Banks, 958 Yields {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES (p THE FEDERAL RESERVE SYSTEM 1 Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis