Federal Reserve Bulletin, 1965-03

FEDERAL RESERVE B U LLETIN March Volume Number 3 • * * BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN Contents Bank Credit to Foreigners 361 Balance of Payments Program: Guidelines for Banks and Nonbank Financial Institutions 371 Treasury and Federal Reserve Foreign Exchange Operations 377 Revision of Bank Debits and Deposit Turnover Series 390 Statements to Congress 394 Presidents, Vice Presidents, and General Auditors of Reserve Banks 411 Law Department 413 Announcements 424 National Summary of Business Conditions 425 Guide to Tabular Presentation 428 Financial and Business Statistics, U.S. (Contents on p. 429) 430 International Financial Statistics (Contents on p. 493) 494 Board of Governors and Staff 512 Open Market Committee and Staff; Federal Advisory Council 513 Federal Reserve Banks and Branches 514 Federal Reserve Board Publications 515 Index to Statistical Tables 517 Map of Federal Reserve System Inside back cover E D I T O R I AL C O M M I T T EE Charles Molony Ralph A. Young Guy E. Noyes Daniel H. Brill Elizabeth B. Sette 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

361 o utstanding foreign credits of banks in the United States rose by more than $2 billion last year, almost twice as much as in any other recent year. After the summer, the outflow accelerated. Net extensions of short-term loans and acceptance credits rose to rates that were above the peaks of late 1960 and of late 1961, and net extensions of long-term credits climbed further above the record rate of 1963. Moreover, beginning in the fourth quarter and continuing into early 1965, commitments on new long-term loans were being made at nearly double the rate of the first half of the year. These commitments pointed to a continuation of extraordinary outflows of long-term loans. CHART 1 Outstanding BANK LOANS AND ACCEPTANCES to foreigners rise sharply in '64; at year-end they totaled $9 billion BILLIONS OF DOLLARS ANNUAL CHANGES — 2 TOTAL — 1 LONG-TERM SHORT-TERM 1962 1963 NOTE.—Long-term bank loans and short-term loans and acceptance credits by banks in the United States. (Other short-term claims on foreigners of these banks were approximately $1 billion at end of 1964.) The change in outstanding long-term loans in 1961 has been adjusted to exclude one transaction included in the balance of payments as direct investment. The very large increase in foreign lending after mid-1963 occurred in an environment of sustained expansion in domestic output and of a U.S. monetary policy that provided for a moderate but steady growth in commercial bank reserves. Although reserves were supplied a little less freely beginning last summer, the impact on foreign lending of this modest shift in emphasis of monetary policy was outweighed by strong foreign demand pressures and by the growing interest of U.S. banks in such lending. Demands for short-term credits have been particularly strong from Japan and less developed countries. At the same time, European industrial countries as well as Japan have shown increasing interest in obtaining long-term credits from U.S. banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MARCH 1965 362 After the proposal for an interest equalization tax on foreign securities in mid-1963, borrowers in industrial countries—apart from Canada, for which an exception was made under the tax law —ceased their efforts to obtain long-term U.S. funds through offerings of new bond issues to U.S. investors. In a general sense, long-term loans from U.S. banks have substituted for these foreign bond issues. Even though the individual borrowers from banks were not necessarily the ones that had been offering bonds, their countries still obtained both foreign exchange and long-term funds. Moreover, late in 1964 an increasing portion of these term loans appeared to be direct substitutes for bond financing. But for most countries the growing amounts obtained through long-term bank loans have far exceeded the amounts they had previously obtained through bond issues in the United States. Mushrooming foreign demands for long-term bank credits in late 1964, and especially during the first 6 weeks of this year, represented in part efforts to obtain funds before the expected issuance of a Presidential order making such credits subject to the interest equalization tax, as provided in the Gore amendment to the tax law. The flood of lending abroad by U.S. banks was a major element in the record $6 billion outflow of U.S. private capital in 1964. The upsurge in capital outflows offset an increased export surplus on goods and services and prevented any improvement in the U.S. payments position ifr the first 9 months of the year over the level of the second half of 1963. And the large fourth-quarter outflow, only part of which was attributable to temporary factors, brought the over-all payments deficit for the year 1964 to $3 billion, little lower than in the previous year. In this situation, President Johnson sent to the Congress on February 10 a message proposing a balance of payments program to achieve a substantial reduction in the deficit in 1965 and further improvement in 1966. The program called for intensive efforts by Government and by the business and banking communities. GROWING FOREIGN _,, , „ , . . . , £ f t ACTIVITY BY BANKS credit extensions to residents of foreign countries has been accounted for by the large U.S. banks that have long been active in the foreign field—accepting foreign official and private deposits, making investments in this country for foreign customers, and extending credit abroad. But since the early 1960's an increasing number of banks have been developing their international business. As a result foreign lending has become somewhat more widely distributed throughout the banking system and the country than in earlier years. Evidence of the widened interest of U.S. banks in foreign lending is found in the number of banks that have established sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDITS TO FOREIGNERS 363 sidiary corporations, under Sections 25 and 25(a) of the Federal Reserve Act, to engage in international banking or finance. At the end of 1961, there were 10 commercial banks operating such subsidiaries (termed Edge Act or Agreement corporations). Six of these banks were in New York City. Within 2 years, the number of banks had increased to 19, and last year 3 more banks established Edge Act subsidiaries. All but one of the banks that have formed Edge Act subsidiaries since 1961 have their head offices outside New York City. Moreover, some banks that have not established Edge Act subsidiaries have increased the number of officers in their international departments relatively as much as have those with such subsidiaries. As banks have enlarged their international staffs, they have increased both their ability to develop foreign business and their interest in securing a larger volume of such business. Expanded international departments have acquired a greater voice in the allocation of funds available to commercial banks, and some foreign loans that might once have been regarded by bank officers as marginal have been given a higher priority. As the number of banks active in foreign lending has increased so too has competition, and this has stimulated efforts to attract new foreign customers, as well as to retain old ones. The spread of foreign lending through the banking system in the past 2 years has been greater for short-term loans and acceptance credits than for long-term loans. Banks in the New York Federal Reserve District, whose activities have contributed importantly through the years to the role of New York City as the leading international financial center, accounted for three-fourths of the total outstanding short-term claims on foreigners reported by banks in the United States at the end of 1962, but for only a little more than half of the increase in 1963 and 1964. They accounted for more than three-fourths of the outstanding long-term loans at the end of 1962, and for only slightly less than this proportion of the marked expansion in these credits since that time. LONG-TERM LOANS A sharp upsurge in long-term bank lending to foreigners in 1963 marked a shift in the pattern of such lending. In earlier years net outflows of long-term loans had been moderate—in the range of $100 million to $200 million annually—and credits had been distributed among both industrial and less developed countries. But in the second quarter of 1963—before announcement of the interest equalization tax on foreign securities could have increased foreigners' incentives to seek bank financing—the outflow spurted to an annual rate of about $600 million, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MARCH 1965 364 increase represented primarily a rise in credits to industrial countries in Europe and to Japan. The rate of outflow on these credits advanced somewhat further over the balance of 1963 and early 1964, with wide quarter-toquarter variations. And in late 1964, after passage of the interest equalization tax law, there was yet further growth in the outflow on credits to industrial countries. This most recent increase was coupled with a new increase in net outflows to less developed countries. Moreover, information received through early 1965 from commercial banks on their commitments to make long-term loans indicated that these outflows were likely to continue at extraordinarily high levels. CHART 2 WITH UPSURGE IN COMMITMENTS, disbursements on long-term bank loans to foreigners show sharp rise MILLIONS OF DOLLARS — 800 1964 QUARTERS NOTE.—Commitments on long-term bank loans are U.S. Treasury data. Foreign demands. Demands of borrowers in foreign industrial countries for long-term funds from sources outside their own countries have been strong and persistent in recent years. Before the proposal for the interest equalization tax in July 1963, European and Japanese governmental institutions and private companies were offering an increasing volume of new bond issues in the U.S. market. After the tax proposal effectively eliminated their interest in tapping U.S. funds through security issues in this country, there was accelerated development of the market for external bond issues in European countries, some of which were denominated in dollars and some in foreign currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDITS TO FOREIGNERS 365 However, U.S. banks have been the largest single external source of medium- and long-term funds for foreign industrial countries (except Canada) during the past 2 years. The increased outflow of term loans to Europe and to Japan after mid-1963 more than offset the decline in U.S. purchases of new foreign security issues. Almost every European country has been an important borrower of long-term U.S. bank funds. Italy alone has borrowed $340 million net since the beginning of 1963. In fact, it accounted for almost one-third of the total increase in outstanding credits to Europe. Norway, traditionally a heavy borrower to finance shipbuilding, has continued to draw substantially on U.S. bank credits, but in the past 2 years it has increased its long-term debt to U.S. banks less than has Austria, Belgium, Germany, or Sweden. Some countries that have stepped up their borrowing from U.S. banks—notably Italy and the Scandinavian countries—have also borrowed large amounts of foreign funds through new security offerings placed with investors in other European countries. Among developed countries outside Europe, Japan has been by far the heaviest borrower of long-term credits from U.S. banks; in the last 2 years it increased its debt by $260 million. At the same time it has been the largest borrower through external issues offered in Europe. But Australia too has borrowed sizable amounts from U.S. banks. Among less developed countries, Mexico has been a steady borrower in this country, both from banks and through bond issues. The Philippines, another country that has used long-term bank credit from the United States, recently has also sold bonds here. Some indication of the factors contributing to developed countries' demands for long-term funds may be obtained from data on commitments on long-term U.S. bank loans, classified according to purpose of loan, as shown in Chart 3. Although these reports apply only to loan commitments made during 1964, they are probably reasonably representative of the purposes of longterm loans utilized by foreign countries during 1963 and 1964. More than half of the commitments to borrowers in developed countries have been to provide for plant expansion or working capital or to refinance debt. For European countries the figure was just under half. Most credits to Europe and to other developed countries have been to private companies, including some affiliates of U.S. companies, rather than to governments or governmentrelated enterprises, as was customary in the case of foreign bond issues in the United States. European companies of prime credit standing are able to obtain short-term credits through banks in Europe, frequently through the Euro-dollar market, at rates that compare favorably with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MARCH 1965 366 charged by U.S. banks. But the limited availability of mediumand long-term funds in European financial markets has created strong incentives for European companies to obtain long-term financing from U.S. banks to the maximum extent possible. By so doing they have been able to hold down the already high share of short-term financing in their total debt. These incentives were doubtless reinforced during 1963-64 by the policies of monetary restraint pursued by authorities in many European countries. U.S. BANKS' COMMITMENTS on long-term loans to developed countries in '64 were to finance a variety of transactions U.S. EXPORTS- THIRD-COUNTRY TRADE SHIPBUILDING OTHER NEW CAPITAL & REFINANCING DEVELOPED COUNTRIES NOTE.—U.S. Treasury data: developed countries, $1,150 million; Europe, $700 million. Only about 15 per cent of total long-term loan commitments to developed countries last year were made for the purpose of financing U.S. exports. Moreover, only 6 per cent of the commitments for loans to Europe were for this purpose. This was less than the total to Europe for financing trade among foreign countries. A somewhat higher proportion of commitments to less developed countries represented financing of U.S. exports. Some of these no doubt reflect credits extended under the guarantee and insurance programs of the Export-Import Bank. These programs have been designed to ensure adequate financing facilities for U.S. exports. U.S. supplies. In the past, term loans to foreigners have represented a very small part of total commercial and industrial term loans by U.S. banks. However, according to all available evidence, the amount of such loans outstanding has risen faster than the total during the past decade. And with the growth that began in early 1963, these loans have assumed still more importance in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDITS TO FOREIGNERS 367 total of term loans outstanding and in net extensions of credit to commercial and industrial businesses. For example, in the year to mid-1964, perhaps two-thirds of the increase in outstanding commercial and industrial term loans of New York City banks represented lending to foreigners. Banks active in the foreign field have customarily found foreign lending a means of developing customer relationships that could bring other foreign business to the bank. But the attractiveness to banks of foreign long-term loans in recent years may well lie at least as much in the immediate profitability of the credit as in the potential long-run advantages. Foreign term loans compare favorably with mortgages and municipal bonds as investment outlets for funds placed with banks on time deposit. Many foreign loans are made at interest rates of about 5Vi per cent for prime foreign borrowers, and the gross return to the bank may reach 6 per cent or more after allowance for the compensating balance maintained by the borrower. The relatively short maturity of these loans—averaging about 4 years, but generally with amortization payments over the last half of the period—makes them reasonably liquid. The rapid growth in term lending to foreigners has followed close behind the rapid growth in foreign time deposits in U.S. banks, principally those of foreign governments and central banks. Outstanding term loans to foreigners have increased by $1.5 billion and foreign official time deposits by about $1.75 billion since September 1962, just prior to the passage of legislation permitting U.S. banks to pay rates of interest on such deposits without regard to ceiling rates applicable to other deposits. Although there is no reason to presume that there is a close relationship between growth in foreign deposits and growth in foreign term loans for all banks, there doubtless is such a relationship for some banks. Moreover, the banks that have engaged most actively in making these term loans are among the largest and best known, and they are able to compete effectively with other U.S. banks in obtaining domestic funds through negotiable time certificates of deposit. Thus, the growth in foreign term lending of these banks has reflected efforts to find profitable investment outlets for domestic as well as foreign funds placed with them on time deposit, in much the same way that, beginning earlier, a much wider range of U.S. banks expanded their holdings of mortgages and municipal securities with the growth in their domestic time deposits. SHORT-TERM CREDITS At various times in recent years U.S. banks have extended large amounts of short-term loans and acceptance credits to foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MARCH 1965 368 The increase in the outflow of these credits to peak rates last year, approached only in late 1960 and in 1961, differs from the earlier build-up in that more banks throughout the country participated. Marked fluctuations in the outflow of short-term bank credit in recent years have reflected mainly variations in foreign demands for credits in an environment of a U.S. monetary policy that provided for moderate but steady growth in the reserve base. The availability of expanding reserves may have contributed to the spread of interest among U.S. banks in foreign lending, but during the past few years changes in the emphasis of monetary policy, toward firmer short-term interest rates and somewhat less ease in credit markets, have not been reflected in variations in short-term outflows of bank credits. CHART 4 CREDITS to JAPAN and LATIN AMERICA dominant in outflows of short-term U.S. bank credits MILLIONS OF DOLLARS MILLIONS OF DOLLARS 200 — '— 200 100 — 100 — ALLOTHER 1 1 ! 1 1 ! i 1 1 I 1 1 I960 1962 1964 I960 1962 1964 NOTE.—Short-term bank loans and acceptance credits to foreigners reported by banks in the United States. Until mid-1963, acceptance credits were not reported separately, and the figures are estimates. Latest figures, fourth quarter 1964. Most short-term U.S. bank credits have been to Japan and to less developed countries—countries where credit has regularly been in short supply and hence relatively expensive. Outflows of such credits to other industrial countries have been relatively small. Much of the trade among industrial countries is financed by suppliers on an open-book basis, and many of the short-term credit demands of European borrowers of prime standing are financed from European sources, including the Euro-dollar market. However, at times there have been some temporary outflows of U.S. bank funds to Europe, mainly through the banks' European branches, to meet midyear or end-of-year liquidity pressures. Moreover, some U.S. short-term nonbank funds have been supplied indirectly to European credit markets through deposits of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK CREDITS TO FOREIGNERS 369 these funds in Canadian banks, as well as directly through deposits in Europe. And more generally, European countries have been able to increase their foreign exchange reserves through favorable payments balances with less developed countries more readily than would have been possible in the absence of the credit outflow from the United States to the latter countries. Heavy Japanese drawings on credits from U.S. banks have generally paralleled changes in economic activity in that country and in the level of its imports from the United States. At the same time Japan has used large amounts of Euro-dollar credits. In fact, a modest part of the U.S. short-term credit outflow to Japan last year represented funds initially obtained by Japanese banks in the Euro-dollar market and routed to Japan through offices of Japanese banks in the United States. Similarly, the increase in the outflow of short-term credits by U.S. banks to Latin America during 1964 accompanied improvement in economic conditions in some countries in that area and growth in their purchases from the United States. Some part of the expansion in credits to Latin America may have helped finance the increase in U.S. exports. LIMITING BANK LENDING ABROAD II was against ttlis background of rapidly expanding short- and long-term credits to foreigners that the President's balance of payments program, as one of its major elements, called for the limitation of foreign lending by banks. An outline of the entire program appeared in the BULLETIN for February 1965, pages 256-57. Structural differences in credit and capital markets here and abroad, which are not fully reflected in prevailing differentials in interest rates, have contributed importantly to the strong foreign demands for U.S. bank credits. The major role of these foreign demands in the outflow last year—and in particular in the accelerated outflow in the second half, which occurred in the face of slightly firmer money and credit market conditions in the United States—emphasized the difficulty of attempting to bring about a substantial reduction in bank credit outflows through general U.S. monetary policy actions alone. The President's balance of payments message included three main elements relating to bank lending to foreigners: (1) imposition of the interest equalization tax (under the Gore amendment) on bank loans with maturities of 1 year or more, (2) a call on the Federal Reserve System—in cooperation with the Treasury—to work with all banks to limit lending to foreigners, and (3) legislation to provide immunity from antitrust laws for specific voluntarily agreed programs, if such programs are needed with respect to foreign loans by banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • MARCH 1965 370 Imposition of the interest equalization tax on long-term bank loans raises the cost of such credits to foreign borrowers in developed countries by approximately 1 per cent per annum. The tax applies to all loan disbursements made after February 10, 1965, except loans for which firm commitments existed before August 5, 1964. The law makes exceptions for loans to finance U.S. exports and for all loans to less developed countries. The increased cost of long-term bank loans to foreign borrowers in developed countries tends to reduce the demand of these borrowers and eliminates their incentives to seek funds through long-term U.S. bank loans in preference to bond sales. In carrying out its responsibilities under the President's program, the Federal Reserve System has requested all banks to limit their credits to foreigners so that, in general, they will not exceed 105 per cent of the amount outstanding at the end of 1964. Within this guideline, the banks are expected to give absolute priority to bona fide export credits. With respect to nonexport credits, they are expected to give highest priority to loans to less developed countries, and to avoid policies that would place undue burdens on Canada, Japan, or the United Kingdom. The System's guidelines for banks are published on pages 371- 75 of this BULLETIN, and the guidelines for foreign lending by nonbank financial institutions on pages 375 and 376. The program envisages a sharp reduction in the outflow of bank credit in 1965, and this should provide substantial relief for the U.S. payments position. The total extension of bank credit to foreigners contemplated in the guidelines, while much lower than the extraordinary rate of last year, would nevertheless be a higher rate of outflow than occurred in 1962 and the first half of 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Guidelines For Banks and Nonbank Financial Institutions On February 10,1965, the President sent a circular soliciting the cooperation of the to the Congress a message on the U.S. bal- commercial banks and outlining specific ance of payments in which he presented a steps to be taken by the banks.1 On Februprogram aimed at achieving quickly a subary 18, in Washington, Chairman Martin stantial improvement in our balance of payand Governor Robertson, who is coordinatments position. This program is of major ing the System's activities in this matter, importance since the balance of payments discussed the request in detail with repredeficit is a serious national problem. sentatives of the banking and financial A major responsibility in carrying out the community, following a meeting of these President's program was placed on the Fedrepresentatives with the President. eral Reserve System and on the banking and The Board of Governors has now issued financial community. The System has already taken the first measures in carrying guidelines to be followed by banks and by out the program. nonbank financial institutions in their for- On the day the President delivered his eign lending activities. The guidelines for message, the Federal Reserve Banks issued each group are printed below. Guidelines for Banks The following guidelines, designed for use at any time to discuss its problems with the in implementing President Johnson's pro- Federal Reserve Bank of its district. gram for the voluntary curtailment of for- It is clear that banks, in undertaking a eign credit by banks, will be in effect until voluntary role in the program, are being modified or supplemented. However, they called upon to make sacrifices. In restraining may be changed from time to time in the the growth of their loans to foreigners they light of new circumstances and in the light will be foregoing some of the gains that of the experience gained as the program goes would otherwise have accrued to them. But, forward. The guidelines should be helpful if a voluntary program is to be effective, deto individual banks as they play their own cisions on future specific loan transactions particular part in the achievement of the President's over-all balance of payments must be made primarily with an eye to the program, and each bank should feel free national interest rather than profits. The achievement of the President's goal will be ^he President's program and the statement issued in the long-term interest not only of the naby the Federal Reserve Banks were published in the BULLETIN for February 1965, pp. 256-57. tion, but also of the individual institutions 371 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BULLETIN • MARCH 1965 which are now being called upon to forego 5. It is expected that a simplified form immediate advantage or gain. for making the above calculations, and for making monthly reports on foreign (1) Establish a target base for an individual credits, will be furnished to the banks bank within a short time. The objective of the program is that out- Banks that are exempted from reporting standing bank credit to nonresidents of the on the Treasury forms because their foreign United States not rise above the amount credits are below the minimum reporting outstanding at the end of 1964 by more than requirement are nevertheless included in the 5 per cent, subject to the conditions set forth program. in guideline (3). The following steps are involved in cal- (2) Participations in Export-Import Bank loans culating the base, and the amount of credit and loans guaranteed by the Export-Import outstanding on any particular date, for an Bank individual bank: Participations in individual export loans ar- 1. Take outstanding claims of U.S. ranged by the Export-Import Bank, loans banking offices on foreigners as of December 31, 1964, as required to be reported with Export-Import Bank guarantees or inon Treasury Department foreign exchange surance, and holdings of "Export-Import forms B-2 and B-3. Contingent accounts, Portfolio Fund" participations are excluded such as unused balances of letters of from the 5 per cent target. credit and commitments to lend, are ex- The role of the Export-Import Bank within cluded from the base. (For further in- the framework of the President's program formation, reference is made to the in- will be coordinated by the National Advisory structions printed on forms B-2 and B-3.) Council for International Monetary and Fi- 2. Subtract from this amount any nancial Problems. claims for account of customers included (3) Banks in excess of 5 per cent target on the forms, as well as any participations in individual loans arranged by the Ex- It is clearly recognized that some banks may port-Import Bank or made with Export- currently be above the 5 per cent target be- Import Bank guarantees. cause of loans made prior to February 11, 3. Add any claims not reportable on 1965, or may subsequently be brought above forms B-2 and B-3, such as long-term the target as a result of (a) binding comforeign securities and permanent capital mitments entered into before February 11, invested in foreign branches and subsidi- or (b) the extension of bona fide export aries. credits, or (c) the extension of credits at 4. Compensating balances, or any the specific request of an agency of the U.S. other claim on the lending bank of the Government. A bank in such circumstances debtor or of any other person by arrange- would not be considered to be acting in a ment or understanding with the debtor, manner inconsistent with the program; howshould not be deducted from loans or ever, it should reduce its claims on foreigners other claims on foreigners for purposes of to 105 per cent of the base as quickly as determining the base. possible. Even in the most extreme case, this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

373 GUIDELINES FOR BANKS reduction should be accomplished within nancing exports and the priorities estabthe next 12 months. lished for the less developed countries, as Such a bank will be invited periodically well as the need to avoid restrictive practo discuss with the Federal Reserve Bank of tices with regard to Canada, Japan, and its district the steps it has taken and pro- Britain, it is expected that nonexport credit poses to take to bring about the reduction to the other advanced countries will be cut of its claims on foreigners consistent with back to the extent needed to achieve the these guidelines. goal of the President's program. Banks with bona fide commitments are Without attempting to specify all types of clearly not being asked to refuse to honor loans that will need to be restricted, it is such commitments, even if honoring them obvious that credits to developed countries involves a temporary excess of lending above that can be cut back with benefit to our the target. However, banks would be ex- balance of payments and with the least adpected to seize every opportunity to with- verse side-effects include: credits to finance draw or reduce commitments, including third-country trade; credits to finance localcredit lines, that are not of a firm nature, and currency expenditures outside the United to ensure that drawings under credit lines States; credits to finance fixed or working are kept to normal levels and usage. At time capital needs; and all other nonexport credits of renewal, all credit lines should be re- to developed countries that do not suffer viewed in light of their consistency with the from balance of payments difficulties. voluntary foreign credit restraint program. Proposed extensions or renewals of existing (5) Bank sales of foreign assets to U.S. residents bona fide commitments should be reviewed in the same manner. In general, banks should not expand their lending abroad by selling to U.S. residents (4) Loan priorities (including U.S. banks) claims on foreigners Within the 5 per cent guideline, absolute existing as of the base date and replacing priority should be given to bona fide export such assets with other loans to foreigners. credits. Credits that substitute for cash sales Sales to U.S. residents of foreign securities or for sales customarily financed out of owned on the base date, which would be nonbank or foreign funds are not entitled free of the interest equalization tax, or of to priority. loan participations, could assist an individual With respect to nonexport credits, banks bank to stay within the 5 per cent target, should give the highest priority to loans to but would clearly not benefit the U.S. payless developed countries and should avoid ments position. Therefore, in the event of restrictive policies that would place an un- any such sales the bank's base should be due burden on countries such as Canada reduced by an amount equivalent thereto. and Japan, which are heavily dependent on (6) Banks with no foreign loans outstanding on U.S. financing, and on the United Kingdom, December 31, 1964 which is suffering from balance of payments difficulties. In general, banks with no previous foreign Given the probability of some expansion lending experience would be expected not of the end-of-1964 volume of loans for fi- to make foreign loans during 1965. However, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 FEDERAL RESERVE BULLETIN • MARCH 1965 bona fide export loans to foreigners may be those administered by banks, will be furmade in reasonable amounts, provided this nished separate guidelines, as part of the financing does not represent a shift from program to restrain foreign credits of nonprevious U.S. or foreign sources of financing. bank financial institutions. Banks making foreign loans for the first time (9) Financial transactions for customers should take precautions to ensure that their activities do not become a means through While banks must, of course, follow instrucwhich credit is extended to foreign borrow- tions given to them by their customers, it is ers who have been denied credit by estab- expected that, in buying foreign investments lished lenders cooperating in the voluntary for customers, they will be guided by the program. principles inherent in the President's balance of payments program. They should not en- (7) Banks whose previous foreign business has courage customers to place liquid funds outconsisted almost entirely oi export financing side the United States. Banks should not place with customers foreign obligations The few banks falling in this category would which, in the absence of the restraint proordinarily be expected to keep within the 5 gram, they would have acquired or held for per cent ceiling. Since they would have no their own account. maturing nonexport loans to provide funds for additional export credits and would (10) Foreign branches therefore need to rely upon nonrenewal of maturing export loans, reasonable amounts It is assumed, of course, that U.S. banks in excess of the target from time to time having branches, as well as subsidiaries and would not be considered in conflict with the affiliates, in foreign countries will not utilize program. But every effort should be made them to avoid the foreign credit restraint proby such banks to keep their lending within gram for U.S. banks. the ceiling. They should take care to ensure Foreign branches have independent that export loans do not represent a shift sources of funds in the countries in which from previous U.S. or foreign sources of they are located and from third countries, financing. in many cases through the attraction of Euro-dollar deposits. The balance of pay- (8) Trust departments ments program is not designed to hamper Managing officers of trust departments the lending activities of the foreign branches should be made familiar with the voluntary insofar as the funds utilized are derived from restraint effort. They should bear the pur- foreign sources and do not add to the dollar pose of that program in mind by making any outflow. Concern arises only in those cases acquisitions of foreign obligations for trust where the resources are derived (directly accounts. For example, they should not or indirectly) from the United States. exercise their authority under any trust ac- Total claims of the head office on overseas count to acquire foreign obligations which, branches, including permanent capital inin the absence of the restraint program, vested in, as well as balances due from, would have been acquired by the bank for branches, represent bank credit to nonresiits own account. Pension funds, including dents for purposes of the program. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

GUIDELINES FOR BANKS 375 (11) Problems of Edge Act Corporations mental to the U.S. payments position. Edge Act and Agreement Corporations are This is obviously a difficult area and one included in the voluntary credit restraint in which there is considerable room for poseffort. The foreign loans and investments of sible damaging substitution of domestic for such a corporation may be combined with foreign financing, and for substitution of those of the parent bank for the purposes of export credits to foreigners for other credits the program, or separate targets may be set to foreigners. In general, success will depend for the parent bank and the subsidiary. on the ability of banks to identify loans that An Edge Act Corporation that has not are inconsistent with the program and on yet undertaken any significant volume of the application of the Department of Comloans and investments may take as a base, merce program with respect to foreign alone and not in combination with its parent, credit and investment by nonfinancial firms. its paid-in capital and surplus, up to $2.5 (14) Management of a bank's liquid funds million, even though an equivalent amount of foreign loans and investments had not Banks that have placed their own funds yet been made as of December 31, 1964. abroad for short-term investment purposes, including U.S. dollar deposits outside the (12) U.S. branches and agencies of foreign United States or the acquisition of non-U.S. banks money market paper, should refrain from Branches and agencies of foreign banks lo- increasing such deposits and investments cated in the United States are requested to and should, in a reasonable and orderly comply with the principles of the program manner, seek to reduce them. Since such of credit restraint applicable to domestic funds are ordinarily placed outside the banks. United States solely to provide a slightly higher rate of return, they are strong candi- (13) Substitution of export credit for credit for other purposes dates for reduction under the program. This guideline applies equally to deposits Banks should be on the alert to avoid grantand investments payable in foreign currening credit to domestic customers if the result would be to aid the latter in making foreign cies and to those payable in U.S. dollars. loans or investments inconsistent with the This guideline does not call for a reducprogram. Even export credit to foreigners, tion in necessary working balances held with if it supplants credit previously obtained foreign correspondents, although such balfrom foreign sources and thus frees the for- ances are also considered claims on nonresieign funds for other uses, may be detri- dents for the purposes of the program. Tentative Guidelines Nonbank Financial Institutions (1) Deposits and money-market instruments vestments in a gradual and orderly manner Holdings of liquid funds abroad should be to the December 31, 1963, level. Included limited to the 1964 year-end total, and the in this category of liquid investments are longer-term objective is to reduce such in- dollar-denominated deposits held in foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN • MARCH 1965 banks and foreign branches of U.S. banks; gram. Developments in the long-term credit short-term securities of foreign governments area will be followed closely, however, so and their instrumentalities; foreign commer- that we may be alert to excessive foreign cial paper, finance company credits and financing demands if they should materialbankers' acceptances; and all other negoti- ize. The issues of industrialized countries are able instruments maturing in 1 year or less. subject to the interest equalization tax, and Foreign bank deposits denominated in local have been very small in volume since that currencies may be maintained to the extent tax became effective. Borrowing by the less needed to support ordinary business opera- developed countries has been relatively light tions in that country. also, and in any event should not be substantially restricted in view of our national (2) Foreign credits with original maturities of 5 policy encouraging productive investment years or less in these countries. In the case of Canada Holdings of investments other than those and Japan, separate agreements will serve listed above, and written to have final ma- to limit aggregate financing in United States turities in 5 years or less, should not be in- capital markets. creased by more than 5 per cent during calendar 1965. Included in this category are (4) Direct investment in foreign branches and securities, mortgage and other loans, and subsidiaries credits of all other types. The 5 per cent Some types of financial institutions may congrowth ceiling is to be measured against the duct operations abroad through foreign oftotal of all such holdings at the end of 1964, fices, branches, and subsidiaries. In such without regard to type of instrument or cases, institutions are urged to limit their country of origin. Priority should be given additional investment in these operations to to credits that directly finance U.S. exports, the fullest extent practicable during 1965. however, and special care should be taken Particular care should be taken to restrict to avoid the extension of credit to borrowers any increase in net loans and advances outwho would have been accommodated by standing to foreign branches and subsidiarcommercial banks in the absence of the volies; ordinarily, expansion in such credit duruntary restraint program. ing 1965 should be held within 5 per cent. (3) Foreign credits with original maturities over In the case of insurance carriers doing 5 years business abroad, these guidelines are not ap- In the area of long-term financing, there plicable to holdings of foreign investments would seem to be no present need for a in amounts up to 110 per cent of foreign guideline under the voluntary restraint pro- policy reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This sixth joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Vice President in charge of the available additional information on foreign Foreign Department of the Federal Reserve exchange operations from time to time. Bank of New York, and Special Manager, The Federal Reserve Bank of New York acts System Open Market Account, It covers the as agent for both the Treasury and the Fed- period September 1964-February 1965. Preeral Open Market Committee of the Federal vious reports were published in the BULLE- Reserve System in the conduct of foreign ex- TINS for September 1962 and for March and change operations. September 1963 and 1964. As noted in the previous report covering ment of intergovernmental defenses against the period March-August 1964, the Fed- currency speculation. eral Reserve had completely liquidated its During the reporting period September outstanding swap drawings by the end of 1964-February 1965, the Federal Reserve June, while drawings made by other central swap network was strengthened by increases banks amounted to no more than $65 mil- in the swap arrangement with the National lion. Such diminished use of international Bank of Belgium from $50 million to $100 credit facilities reflected a reduced deficit in million and in the arrangement with the the U.S. balance of payments and a general Bank of England from $500 million to $750 narrowing of payments imbalances through- million. The swap network now covers reout the world. ciprocal credit lines totaling $2,350 million, This general movement toward interna- as shown in Table 1 on page 389. tional payments equilibrium suffered a set- The short-term credits extended to the back during the second half of 1964, how- Bank of England by the central banks of ever, mainly owing to the eruption of the Europe, Canada, and Japan in November sterling crisis, heavy outflows of U.S. bank 1964 provided further impressive evidence credit and long-term investment, and the of the solidarity of central bank defenses continuation and even further tightening of when confronted with a currency crisis. Also the credit squeeze in continental European during the period, the authority of the Intermarkets. The risk of sudden, heavy strains national Monetary Fund to borrow from its upon the gold exchange system had been member countries was invoked for the first well anticipated by the central banks and time, and much progress was made toward treasuries of the major industrial countries, the scheduled 25 per cent increase in IMF but the severity of the pressures developing quotas during 1965. This process of chalin late 1964 required a further reinforce- lenge and timely response will no doubt con- 377 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN • MARCH 1965 tinue to guide the further evolution of the temporary pressures on the exchange marinternational financial system. ket resulting from short-term capital flows. The sterling emergency necessitated siz- Similarly, extensive use of forward operaable drawings by the Bank of England upon tions was made by the Bank of England in the Federal Reserve, which more or less con- December 1964 fo reassure the market and currently drew heavily upon its swap lines relieve pressure on the spot rate. with the continental European central banks The foreign currency bonds issued by the in order to cushion the impact of heavy dol- U.S. Treasury rose from $1,035 million outlar inflows arising from both the British and standing on August 31, 1964, to $1,137 U.S. deficits. Bank of England drawings on million as of early March 1965 as shown in the Federal Reserve swap line rose to a peak Table 2 on page 389. Additional issues of of $700 million on November 27 but have $50 million were made to the German Fedsubsequently been greatly reduced. eral Bank and $50 million to the Austrian To absorb part of the dollar flows to the National Bank to absorb surplus dollars on continental European central banks, the the books of these central banks. Federal Reserve made drawings upon the While these central bank and intergovswap lines with the central banks of Switzer- ernmental credit operations provided partial land, Germany, Belgium, the Netherlands, and temporary financing of the payments and Italy and with the Bank for Interna- imbalances developing during the period, tional Settlements. Of these drawings, $380 gold continued to play its traditional role. million remained outstanding as of the end During the third and fourth quarters of of February 1965. Further assisting the fi- 1964, sales of gold by the U.S. Treasury nancing of both British and U.S. payments amounted to $442 million, against gold purimbalances, the central banks and govern- chases of $338 million. ments of other countries provided short- and The international financial system was medium-term financing through accumula- thus confronted with a major challenge in tions of dollars, extension of credits to the late 1964 that was successfully countered. United Kingdom, purchases of U.S. Treas- The unprecedented mobilization of $4 bilury foreign-currency securities, and provi- lion of international liquidity in defense of sion of credit through the IMF. sterling was a striking illustration of the In addition to central bank swap opera- strength and flexibility of the central bank tions, both the Treasury and Federal Re- and IMF defenses against currency crises. serve also engaged in forward operations in Perhaps even more remarkable is the fact Netherlands guilders and Swiss francs in that the international defense of sterling was order to calm market fears and encourage accomplished in the face of a serious dean outward flow of short-term funds from terioration in the balance of payments of the Amsterdam and Zurich. The Swiss National other major reserve currency center, the Bank took steps to help cushion the effects United States. of anticipated year-end pressures on the Such a rallying of governmental and cen- Swiss franc. The German Federal Bank also tral bank support for the present system demade available swap facilities to German pended, however, upon one basic assumpcommercial banks for investments in U.S. tion: that both the British and the U.S. Gov- Treasury bills in order to reduce or offset ernments would quickly put in motion force- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 379 ful corrective programs to eliminate their official reserves, the Bank of England on payments deficits. These corrective programs June 30 drew $15 million against its $500 are now under way and, if pursued with de- million swap line with the Federal Reserve; termination, will soon relieve the interna- it repaid the drawing on July 13. tional financial mechanism of the enormous As the credit squeeze in the continental pressures generated by simultaneous defi- money market centers extended into July, cits in the two major reserve currency coun- moderate selling of sterling continued, and tries. Under such conditions, the gold ex- the spot rate moved downward with a minichange standard, adapting as it has in the mum of official support to a low for the past to changing world conditions, can effi- month of $2.7874 on July 20. The decline ciently facilitate a continuing growth of in the spot rate was taken in stride by the world trade and payments. market without any speculative reaction de- The successful response to the challenge veloping. Indeed, market confidence in the of the sterling crisis has unfortunately been sterling parity at that time was such that the marred by the widespread and exaggerated discount on forward sterling tended to narpublicity given to the French Government's row as the spot rate declined. call for a return to the gold standard and for As the discount on forward sterling was the elimination of dollars and sterling from reduced, the covered interest-arbitrage difofficial reserves. This approach has found ferential on Treasury bills in favor of Lonno support among central banks and treas- don became correspondingly more attractive uries of other countries. The main effect has and by July 13 had reached 0.44 per cent been to stir up some previously dormant pri- per annum. To forestall private covered outvate speculation in the London gold market flows in response to this arbitrage induceto the detriment of official acquisitions of ment, the Federal Reserve, with the agreenewly mined gold. ment of the Bank of England, intervened in Sterling. Early in 1964 sterling showed the market to reduce the arbitrage differenweakening tendencies as a result of the de- tial. This intervention, amounting to a total teriorating trade position of the United King- of $54 million equivalent in mid-July and dom, and various uncertainties connected again in late August, was accomplished by with the general election to be called some- swap transactions in the New York market, time during the year. A timely increase of with the Federal Reserve buying sterling the Bank of England discount rate from 4 spot and selling sterling forward against to 5 per cent in late February temporarily U.S. dollars. These operations had the dual relieved market pressures, while delay of the effect of protecting the dollar against shortgeneral election until October induced some term flows of funds from New York to Lonshort covering by commercial interests. don while at the same time lending useful Late in May, however, tight conditions in support to the spot rate on sterling. several continental money markets exerted In September, sterling came under innew pressure on sterling. These pressures be- creased pressure, owing mainly to increascame strong toward the end of June because ingly widespread recognition of the mountof heavier-than-usual midyear window- ing balance of payments deficit of the United dressing by continental banks. To temper Kingdom, which became further aggravated the impact of these movements of funds on by the usual seasonal weakness during the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN • MARCH 1965 autumn and early winter months. Uncertain- by the other measures. These uncertainties ties connected with the general election in domestic financial markets were in turn called for October 15 further unsettled the communicated to the exchange market. sterling exchange market, and the problem During this period the exchange market of maintaining confidence in sterling seemed began to anticipate action on the discount likely to become increasingly difficult. rate on each successive Thursday, and thus In anticipation of reserve losses, the Bank a pattern developed of a strengthening of of England in mid-September made timely sterling prior to Thursday of each week, folarrangements to supplement the $500 mil- lowed by a major selling wave on Friday lion swap line with the Federal Reserve by as the discount rate remained unchanged. another $500 million of short-term credit When the bank rate remained unchanged on facilities with other central banks in Europe Thursday, November 19, reserve losses by and with the Bank of Canada. This rein- the Bank of England on the following day forcement of the British reserve position reached such proportions that action could cushioned the impact of recurrent, and in- no longer be postponed. On Monday, Nocreasingly forceful, waves of selling during vember 23, the Bank of England raised its September and October. Net drawings by discount rate from 5 to 7 per cent. the Bank of England on the Federal Reserve Perversely enough, market reaction to swap line and on short-term facilities pro- such forceful use of monetary policy by the vided by other central banks rose to $415 Labor Government quickly degenerated into million by the end of October. fears that the threat to sterling must have The new Labor Government elected on reached a truly crisis stage. Whether these October 15 was thus immediately confronted reactions might have been averted by earlier with a grave balance of payments situation. discount rate action, more particularly on The announcement on October 26 of emer- the usual Thursday date for discount rate gency surcharges of 15 per cent on a wide announcements, may be debated for some range of imports brought only brief relief time to come. as critical reactions appeared among Brit- In any event, the market seized on rumors ain's trading partners world wide, more par- that the $1 billion of short-term central bank ticularly the European Free Trade Associa- credits at the disposal of the Bank of Engtion (EFTA) group. land in September had now been exhausted; In a formal budget presented to parlia- that the $1 billion standby credit from the ment on November 11, the Government pro- IMF secured by the British Government in posed certain new welfare benefits, to be August had accordingly been fully comfinanced by tax increases, and announced mitted to repayment of such central bank that it intended to introduce a capital gains credits; and, hence, that the United Kingtax and to substitute a new corporation tax dom would have to fall back in defense of for the existing application of the income sterling upon its reserves of roughly $2 biltax to corporations. These proposals created lion. (The still substantial unused drawing uncertainty in business circles, in part be- rights on the IMF would have required cause the immediate deflationary influence longer to mobilize than events at that time of the increased tax on fuel and of the im- allowed.) port surcharge was to some extent obscured This situation assumed increasingly grave Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 381 significance on the London afternoon—and credits outstanding, including $500 million the New York morning—of November 24 of the Federal Reserve credit. At the same when a virtual avalanche of selling devel- time Switzerland, which, although not a oped. If sterling were to be rescued, it was member of the IMF, is associated with the clear that a major package of international General Arrangements to Borrow, procredit assistance would be required. On the vided the United Kingdom with a 3-year afternoon of the 24th, the Federal Open credit of $80 million; $50 million of the Market Committee—meeting through a tele- Swiss credit was used to repay an earlier phone conference—committed itself to an loan from Switzerland, outstanding from increase in the Federal Reserve-Bank of the sterling crisis of 1961. England swap line from $500 million to With its exchange reserves thus heavily $750 million if credit assistance on a roughly reinforced, the British Government could corresponding scale could be secured from face with confidence further temporary other central banks. That evening the Ex- pressures on sterling during December. port-Import Bank gave assurance of a $250 Selling was particularly heavy just prior to million standby facility. Beginning early on the long Christmas week end, and during the morning of November 25, the Bank of the month the Bank of England increased England, the Federal Reserve Bank of New its use of short-term central bank credit fa- York, and the central banks of other major cilities from the $200 million outstanding countries were in almost continuous tele- early in December to $525 million at the phone communication. At 2 p.m., New year-end. Of this $325 million increase, York time, it was announced that a $3 bil- $25 million was secured by an increased lion credit package provided by 11 countries use of the Federal Reserve swap line, raisand the BIS was at the disposal of the Bank ing the total outstanding from $175 million of England. to $200 million, while $300 million was As a result of the heavy reserve losses, drawn from other central banks. not only were the $500 million Federal Re- Beginning in late November heavy sellserve swap and the additional $500 million ing of sterling appeared in the forward of other central bank credit facilities made market, mainly by commercial interests inavailable to the Bank of England in Sep- suring their future exchange transactions. tember fully exhausted, but also immediate This selling threatened to move the forward drawings of $200 million on the new credit sterling rate to an excessive discount and facilities were required. From the end-of- hence intensify sales of sterling in the spot October figure of $415 million, recourse market. Accordingly, the Bank of England by the Bank of England to central bank gave firm support to the forward rate. This credit facilities thus rose by $785 million support not only served to lessen the drain during November to a total of $1.2 billion. on reserves from spot transactions at the Of this total, the Federal Reserve share time, but more generally helped to buttress was $675 million. confidence in sterling by providing official In early December the British Govern- reassurance that the sterling parity would ment drew the full amount of its $1 billion be maintained. The operation was comparstandby facility with the IMF and so repaid able to the determined stand taken in the an equivalent amount of the central bank forward market by other central banks in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN • MARCH 1965 recent years, and it promised to achieve the the year from $121 million to $51.5 million. same useful results. At the outset of 1964, the U.S. Treasury After the turn of the year, both the spot and the Federal Reserve also had outstandand forward markets for sterling returned ing a combined total of $53 million in to a more balanced position. Since then, swaps of third currencies into Swiss francs. sterling has shown an increasingly buoyant These contracts had been reduced to $15 trend. On February 10 it was announced million by the end of February 1965. that those of the central bank credit facili- Despite the progress thus made in liquities made available last November which dating Treasury and Federal Reserve comwere shortly due to expire would be re- mitments in Swiss francs incurred in late placed by new facilities, available to the 1963, new problems arose when sizable end of May, thus reconstituting the entire short-term funds—mainly repatriated Swiss $3 billion credit package. By the end of assets—again flowed into Switzerland, February the Bank of England was able to both at midyear and particularly toward the start repaying its debts. close of the year as the pound sterling came In addition to direct swap transactions under pressure. with the Bank of England, the Federal Re- During the spring of 1964, interest rates serve Bank of New York also moved into in Switzerland continued to rise as the heavy the market at various times during the au- demands imposed on the Swiss money and tumn months to purchase sterling for both capital markets by the continuing high System and Treasury account. These ac- level of economic activity further squeezed quisitions were made on both an outright the liquidity position of Swiss banks and and a swap basis; the particular technique firms. The interest rate on 3-month deposits used was determined by market conditions reached 3.50 per cent in June, an increase at the time, in consultation with the Bank of about 0.75 per cent per annum over the of England. previous year, while the average yield on Swiss franc. At the beginning of 1964, government bonds moved up to 4.05 per Federal Reserve swap drawings of Swiss cent, compared with 3.15 per cent a year francs under the swap lines of $150 million earlier. To relieve the squeeze on their equivalent with both the Swiss National liquidity positions, and to satisfy midyear Bank and the BIS amounted to $220 mil- window-dressing needs, the Swiss commerlion equivalent. By the end of June, these cial banks made sizable repatriations of drawings had been completely liquidated funds during June. through gold sales of $30 million to the These commercial bank operations caused Swiss National Bank, purchase from the the Swiss National Bank once again to take Bank of Italy of the Swiss franc proceeds in substantial amounts of dollars. In July of a $100 million equivalent lira-Swiss franc the reversing of some window-dressing opswap, issuance by the U.S. Treasury of a erations and an easing of the Swiss money $70 million equivalent Swiss franc bond to market brought about only a partial rethe BIS, and purchases of Swiss francs from versal of the previous inflows. In these cirthe Swiss National Bank. U.S. Treasury cumstances the U.S. Treasury issued to the market commitments in forward Swiss Swiss National Bank on August 4 an addifrancs were reduced during the course of tional Swiss franc bond in the amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 383 $52 million equivalent and used the pro- selves liquid, started to place funds abroad.) ceeds to absorb an equivalent amount of During the second half of 1964 the dollar dollars on the books of the Swiss National acquisitions of the Swiss National Bank Bank. (This issue brought the outstanding were further reduced by purchases of $51 amount of U.S. Treasury securities denomi- million of gold from the U.S. Treasury. nated in Swiss francs to $327 million Netherlands guilder. At the beginning of equivalent.) 1964 Federal Reserve commitments in Generally easier conditions prevailed in guilders amounted to $80 million equivathe market for Swiss francs from mid- lent, all in the form of outstanding swap August to mid-October, and the Swiss franc drawings. These were fully repaid by early declined from its ceiling for a while, only April, as earlier inflows of funds into the to firm again in late October as the Swiss Netherlands were reversed. money market tightened. Then in the early In May the Netherlands money market part of November, funds began to move began to tighten, and in early June the into Switzerland in quantity—some directly Netherlands Bank raised its discount rate out of sterling, some through the Euro-cur- from AtoAVi per cent. In July Netherlands rency markets in response to the general un- commercial banks began to repatriate easiness that pervaded the exchanges. funds in substantial amounts. Moreover, Throughout the rest of the year, sizable in- the Netherlands balance of payments creases occurred in the dollar holdings of strengthened, owing to a better trade balthe Swiss National Bank. ance and an inflow of long-term capital. To absorb part of this intake of dollars, By November the intensified pressures on the Federal Reserve reactivated its $150 sterling and the ensuing movement of some million swap with the BIS in early Decem- funds out of sterling and into guilders helped ber by drawing $100 million of Swiss francs, push the guilder to its ceiling. which was simultaneously employed to pur- Meanwhile, the Netherlands Bank had chase dollars from the Swiss National Bank. been taking in dollars in an effort to mod- A further Swiss franc drawing of $60 mil- erate the rise in the guilder rate. During the lion equivalent on the Swiss National Bank first week of August the Federal Reserve was made on January 19 for the same pur- drew $20 million equivalent of guilders pose. In addition, to calm the market and under the swap line and immediately used to encourage Swiss banks to invest abroad the guilders to absorb some of the Netherdollars that they might otherwise have sold lands Bank's accruals of dollars. Further to the Swiss National Bank, the Federal Federal Reserve drawings and sales of Reserve began in December to sell Swiss guilders followed in rapid sequence, and by francs forward to the market through the mid-October the $100 million swap facility Swiss National Bank. By January 8, 1965, had been fully drawn. Additional dollars such forward sales reached a peak of $32.5 were purchased by the Federal Reserve and million equivalent. Most of these contracts the U.S. Treasury from the Netherlands had been paid off by the end of February Bank in September and December with through spot purchases of Swiss francs. guilders acquired through 3-month swaps (The Swiss franc began to ease shortly after of sterling for guilders with the BIS, for a the year-end as Swiss banks, finding them- total of $50 million equivalent. As intensi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN • MARCH 1965 fied buying pressures on the guilder de- parliament the imposition of a 25 per cent veloped in late December, a temporary swap withholding tax on income from German arrangement for $35 million between the fixed-interest securities held by nonresidents. Netherlands Bank and the U.S. Treasury This action not only checked the long-term was agreed upon and fully employed. capital inflow, but also actually induced In mid-December recourse was also had liquidation of a considerable volume of forto forward operations in Netherlands guild- eign investments in fixed-interest securities. ers for both Federal Reserve and Treasury Earlier surpluses on trade account also diaccount in order to provide reassurance to minished as the year progressed, and this the market and induce covered capital out- helped to restore a stable equilibrium in the flows from the Netherlands. These opera- exchange markets. tions, together with Netherlands provision of The effect on the exchange market of dollar credits to the Bank of England and these basic shifts in the German balance of purchases of gold from the U.S. Treasury, payments was reinforced by a number of reduced the dollar holdings of the Nether- technical measures initiated by the German lands Bank sufficiently to permit complete authorities to reduce temporary pressures liquidation of the Treasury-Netherlands on the exchange market resulting from short- Bank $35 million swap by early January term capital flows. The special swap faciliand repayment of $30 million of the Fed- ties made available by the German Federal eral Reserve swap drawings in early Febru- Bank to German commercial banks for inary. As of the end of February, Federal Re- vestments in U.S. Treasury bills were used serve drawings upon the swap line with the flexibly throughout the second half of the Netherlands Bank had thus been reduced year, with maturities providing the banks to $70 million equivalent. During the sec- with liquidity at the year-end. In addition, ond half of 1964, gold purchases by the under a special temporary arrangement in Netherlands Bank from the U.S. Treasury December, German commercial banks were amounted to $60 million. permitted to borrow against collateral from German mark. During 1963 and early the central bank at an effective cost lower 1964, there had been almost continuous up- than the posted rate. ward pressure on the German mark. This Nevertheless, the sterling crisis led to pressure reflected a substantial increase in some inflow of funds to Germany in late the German foreign trade surplus, large in- December. Consequently, the Federal Reflows of long-term capital, and occasional serve reactivated its $250 million swap fainflows of short-term funds in response to cility with the German Federal Bank by tight money market conditions or hedging drawing $50 million equivalent of marks operations. To ease the strain, the German in order to absorb $50 million of German Federal Bank, the Federal Reserve, and the dollar reserves. This drawing was reversed U.S. Treasury jointly conducted various spot in late January 1965, as short-term outand forward exchange operations, as out- flows from Germany combined with Gerlined in previous reports in this series. man military purchases in the United States On March 23, 1964, an important turn- enabled the Federal Reserve to acquire $50 ing point occurred as the German Govern- million of marks from the German Federal ment announced its intention to propose to Bank. Another small drawing of $15 mil- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 385 lion equivalent was made by the Federal investment requirements and its expected Reserve on February 4 to help control any further balance of payments deficits. In the speculative tendencies resulting from Presi- midst of these discussions, the lira was suddent de Gaulle's press conference on the denly struck by a burst of speculation. This same date. brought heavy pressures not only on the During the 6-month period through Feb- spot rate but also on the forward rate, which ruary, the U.S. Treasury issued to the Ger- for a 3-month maturity moved to a discount man Federal Bank in October 1964 a $50 of 7 per cent per annum. In this dangerous million equivalent mark-denominated bond. situation, an immediate and massive rein- This latest issue raised the total of such forcement of the Italian reserve position mark bonds outstanding to $679 million was clearly called for. Within 48 hours the equivalent. The mark proceeds of this bond, Italian authorities were able to announce together with $7 million of Treasury mark that they had arranged for approximately balances remaining from U.S. drawings of $1 billion of external assistance provided marks from the IMF, were sold to Canada by the United States, the Bank of England, to enable that country to make an IMF re- and the German Federal Bank. payment. Subsequently, in early December One of the most satisfactory aspects of when the U.S. Treasury drew $125 million this display of international cooperation in equivalent of marks from the IMF, it used beating back a speculative attack on the $50 million equivalent to purchase excess Italian lira was that the provision of massive dollars from the German Federal Bank, in credit assistance to Italy more or less coineffect compensating for the fact that marks cided with a turning point in the Italian derived from the earlier bond issue had been economic and financial scene. During the used in conjunction with Canada's repay- first quarter of 1964 the Italian balance of ment to the IMF. payments had registered a deficit of $436 Italian lira. Italy's balance of payments million. A surplus of $226 million was redeficit had assumed major proportions in corded in the second quarter, as corrective the fall of 1963, and the Federal Reserve policy measures initiated by the Italian auand U.S. Treasury joined forces with the thorities began to take effect and as a re- Bank of Italy in defense of the lira. As out- versal in the leads and lags in payments lined in the previous report, Federal Reserve brought about the covering of short positions and Treasury operations in the autumn of in lire. In early July, a governmental crisis 1963 and the first quarter of 1964 cush- generated a temporary speculative flurry, ioned the decline in the Bank of Italy's re- but operations in force in the forward marserves to the extent of some $350 million ket by the Bank of Italy through the agency and thereby helped to restrain speculative of the Federal Reserve Bank of New York pressures against the lira. provided reassurance and the speculation During the week of March 9 through quickly subsided. March 14, 1964, an Italian delegation Italy continued to run a payments surplus headed by Governor Carli of the Bank of during the third and fourth quarters of 1964, Italy visited Washington to discuss with the and by the year-end Italian official reserves, World Bank and the IMF various possible which had dipped $233 million during the sources of financing for Italy's longer-term first quarter, were $389 million higher than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN • MARCH 1965 at the outset of 1964. The reappearance of dian exporters began to sell out U.S. dollar political uncertainties in the late summer balances. New grain purchases by several triggered some selling of forward lire, and eastern European countries exerted further discounts for 3-month maturities tended to upward pressure on the spot rate. At about widen at times to 4 per cent per annum. In the same time there was a tightening of the such instances, the Federal Reserve Bank Canadian money market, which induced a of New York again intervened for account temporary flow of short-term funds into of the Bank of Italy to support the forward Canada from the United States on a covered lira in the New York market and thus basis. helped to relieve market uncertainties. By Substantial Canadian long-term borrowearly October the discount on the 3-month ings in the U.S. market, the sterling crisis, forward lira had narrowed to less than 1 per and fiscal-year-end positioning by Canadian cent per annum. banks in October and November pushed the Continuing heavy flows of dollars to Italy spot rate for the Canadian dollar to its efin the closing months of 1964 and early fective ceiling by November. As the Cana- 1965 may have partially reflected the ster- dian dollar strengthened, the Bank of Canling crisis. To absorb part of these dollar ada intervened to moderate the rise in the inflows, the Federal Reserve on January 22 rate, with the result that Canadian reserves reactivated its $250 million swap arrange- increased by $210 million during the Aument with the Bank of Italy by drawing $50 gust-November period despite repayments million equivalent of lire. of $107 million to the IMF in September Canadian dollar. The spot market for Ca- and October. By December the market had nadian dollars was relatively quiet through returned to a more balanced position. the first half of 1964, but there was con- In early February the Canadian dollar siderable activity in the forward market as softened, as press discussion of prospective a result of grain sales to the Soviet Union U.S. balance of payments measures led to beginning in the previous autumn. These some apprehension in the markets that Cansales generated heavy demands on the part ada might be unfavorably affected. The U.S. of grain dealers for Canadian dollars for balance of payments program, announced future delivery against U.S. dollars. In order on February 10, made it clear that there was to offset some of these pressures, the Bank no U.S. intention to deprive the Canadian of Canada sold U.S. dollars spot and pur- economy of essential inflows of capital. chased them forward, thus providing some Nevertheless, the Canadian dollar weakened counterpart to the commercial banks' swap somewhat further in the second half of the needs, while the Federal Reserve also inter- month—reportedly reflecting Canadian comvened on a small scale. By the end of July, mercial buying of U.S. dollars and unfavor- Canadian grain shipments to the Soviet Un- able seasonal factors. ion had been fairly well completed, and Belgian franc. Early in July 1964 the Belpressures on the forward market eased. gian franc strengthened, following the an- In August, heightening tensions in Viet- nouncement of new measures designed to nam generated some buying of spot Cana- curb the growth of credit in Belgium. On dian dollars by continental interests, and as July 3 the National Bank of Belgium raised the spot rate rose in a thin market, Cana- its discount rate by V2 percentage point to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 387 4% per cent and announced that, effective the National Bank of Belgium had pur- August 17, it would impose a cash reserve chased $40 million of gold from the United requirement against commercial bank de- States. posits for the first time. Tighter money mar- Japanese yen. On April 30 the Bank of ket conditions developed and—in conjunc- Japan drew $50 million under the $150 miltion with long-term investment in Belgium, lion swap arrangement with the Federal Rean improved trade balance beginning in the serve in order to cushion a decline in Japthird quarter and the sterling crisis later in anese reserves. This drawing was renewed the year—contributed to substantial dollar on July 30, as reserve pressures continued, inflows into Belgium. and a further drawing of $30 million was Early in August the Federal Reserve used made on July 31. In August, however, do- $7.5 million equivalent of Belgian francs mestic restraint measures began to take efdrawn under the $50 million swap arrange- fect: import demand diminished and, with ment to absorb dollars on the books of the a continued growth in exports, the trade bal- National Bank of Belgium. By mid-October ance improved considerably. With this imthe entire $50 million equivalent of franc provement in Japan's balance of payments balances had been so utilized. Effective and reserve position, the Bank of Japan be- October 22 the Federal Reserve and the gan repaying its swap obligations at the end National Bank of Belgium expanded the of September, and by early November it had existing $50 million swap facility with an liquidated them in full. additional $50 million arrangement to be Austrian schilling. There were no System available on a standby basis. As dollars con- operations in Austrian schillings during the tinued to flow into Belgium, the Federal Re- period. Although the Austrian balance of serve made further drawings on this addi- payments registered a considerable deficit tional swap and by the end of November in the last quarter of 1964, the figures for had used the full amount. 1964 as a whole continued to show a sur- The Federal Reserve was able to reduce plus. Therefore, on February 23 and March its swap commitments to Belgium to $25 3, 1965, the Treasury issued to the Austrian million equivalent in early December, when National Bank two $25 million equivalent the National Bank of Belgium purchased 18-month bonds denominated in Austrian $75 million from the Federal Reserve to schillings, using the proceeds to absorb some make special outpayments. On December of that bank's dollar holdings. These issues 30, however, the Federal Reserve again drew brought the outstanding total of U.S. Treas- $20 million equivalent of francs in order to ury bonds denominated in Austrian schilabsorb further inflows of dollars into Bel- lings to $100 million equivalent. gium, and further utilization of $40 million Swedish krona and French franc. There equivalent under the swap arrangement be- were no Federal Reserve or Treasury operacame necessary in January and February tions in Swedish kronor or French francs 1965. As of the end of February, total Fed- during the period under review. eral Reserve use of the $100 million swap U.S. drawing on the international monetary arrangement with the National Bank of Bel- fund. Over the course of several years before gium amounted to $85 million equivalent. 1964, foreign countries had been repaying Meanwhile, during the second half of 1964, more dollars to the IMF than the IMF had Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN • MARCH 1965 been paying out in new drawings. As a re- drawing of $125 million equivalent was sult, the IMF's dollar holdings rose to a made, this time solely in German marks. point where they equaled the amount that Since this program was initiated, the U.S. the United States had paid into the IMF as Treasury has drawn $525 million equivalent part of its quota. At this point the IMF, un- in seven continental European currencies, der its rules, could no longer accept dollars of which some $15 million equivalent rein repurchase, and countries having repur- mained undisbursed as of the end of Febchase obligations could make repayments ruary 1965. The effect of these drawings on only with gold or with other eligible con- the U.S. position in the IMF has been offset vertible currencies. to a considerable extent, however, by draw- So as to be able to sell such currencies to ings of dollars by other countries. The largcountries having repurchase obligations, the est single dollar drawing was $200 million, U.S. Treasury on February 13 and June 1, under the $1 billion equivalent multicur- 1964, made two drawings on the IMF—prerency drawing in December by the United dominantly in German marks and French Kingdom. As a result the U.S. repayment francs—in the amount of $125 million obligation to the IMF as of the end of Febequivalent each under the $500 million ruary 1965 had been reduced to $256 milstandby agreement with the IMF announced lion. by President Kennedy in July 1963. By Sep- The gold market and U.S. gold transactions. tember 1, the bulk of these currencies had Throughout the first 8 months of 1964 the been sold to various countries effecting re- London gold market was generally stable, payments to the IMF. with the gold-fixing price ranging between On July 23, 1964, the original standby $35.06 and $35.10. With the improvement arrangement expired, and the Treasury anin the U.S. balance of payments, and connounced that it had made a further standby sequent strengthening of confidence in the arrangement with the IMF for another year. dollar, speculative demand for gold receded, This restored the amount available to $500 and as new production increased, the Gold million. The first drawing under the new Pool regularly absorbed surpluses of output standby arrangement was made on Septemreaching the market. The Pool took in furber 1, when the United States drew $50 milther sizable amounts of gold from Russian lion in five European currencies. Unlike the sales, which were concentrated over a few first two drawings under the original arweeks' span in late March and early April. rangement, which were used to cover a Over the closing months of 1964, various number of transactions that took place durpolitical and financial disturbances tended ing ensuing weeks, this drawing was occato rekindle speculative buying of gold. Intersioned by Italy's repurchase of $65 million national tensions arising out of the Vietnam equivalent of lire from the IMF. Again, on conflict continued to generate market ap- September 30, the U.S. Treasury drew equal prehension. But renewed speculation in the amounts of Dutch guilders and German marks totaling $100 million equivalent, half gold market was also attributable to the inof which was immediately sold to Canada in creasing pressures on sterling during the connection with a repayment to the IMF. latter part of the year. The remaining balances were disbursed in In addition, the sharp deterioration in the subsequent weeks. On December 7 a third U.S. balance of payments during the closing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 389 months of 1964 contributed to market un- sources. As a result, the United States becertainties, especially after the turn of the came a net seller of gold in its international year. In February, various pronouncements monetary transactions after having been a emanating from Paris further stimulated net purchaser earlier in the year (see Table speculative buying of gold by private inter- 3). For 1964 as a whole, taking into account ests. Both the United Kingdom and the sales of about $89 million to domestic users, United States have now taken forceful action total U.S. gold holdings—including Stabilito deal with their balance of payments defi- zation Fund holdings as well as the Treasury cits, and if these corrective programs are gold stock—declined by $125 million. Durvigorously pursued, speculative pressures in ing the first 2 months of 1965, the Treasury the gold market may be expected to subside. gold stock declined by an additional $450 The Bank of England, on behalf of the million. Gold Pool, continued to exert a stabilizing influence on the market and to moderate TABLE 2 price movements. Although private demand U.S. TREASURY SECURITIES DENOMINATED IN for gold increased during the closing months FOREIGN CURRENCIES, MARCH 3,1965 (In millions) of 1964, over the year as a whole the Pool once again acquired and distributed to its Amount U.S. members more than $600 million. Issued to in foreign dollar currency equivalent During the fourth quarter of 1964, continental central banks took in sizable amounts Austrian National Bank Sch. 2,600 100.6 of dollars, and several sold part of their ac- National Bank of Belgium BF 1,500 30.1 German Federal Bank DM 2,700 679.0 quisitions to the U.S. Treasury for gold. Swiss National Bank SF 1,112 257.5 Bank for International Settle- These conversions, as well as the continued ments SF 300 69.5 French purchases of gold each month, more Total 1,136.7 than offset U.S. acquisitions from other TABLE 1 TABLE 3 FEDERAL RESERVE RECIPROCAL CURRENCY U.S. NET MONETARY GOLD TRANSACTIONS AGREEMENTS, MARCH 1, 1965 WITH FOREIGN COUNTRIES AND INTERNATIONAL INSTITUTIONS, JULY-DECEMBER, 1964 Amount (In millions of dollars at $35 per fine troy ounce. U.S. net sales, — ; net purchases, +) of facility Term Other party to agreement (in millions (months) of dollars) Third Fourth Country quarter quarter Bank of France 100 3 Bank of England 750 12 Austria Netherlands Bank 100 3 Belgium - 40.1 National Bank of Belgium 100 12 Brazil - 1.1 + 28.2 Bank of Canada 250 12 France -101.4 -101.4 Bank for International Settle- Germany - 25.0 ments 150 6 Italy Swiss National Bank 150 6 Netherlands - 60.0 German Federal Bank 250 6 Spain - 30.0 Bank of Italy 250 12 Switzerland - 51.0 Austrian National Bank 50 12 Turkey - 12.5 Bank of Sweden 50 12 United Kingdom. + 162.5 + 125.0 Bank of Japan 150 12 All other + 6.0 - 2.8 Total for all banks 2,350 Total. + 41.0 -144.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Revision of Bank Debits and Deposit Turnover Series The monthly bank debits and deposit part of the increase. Demand deposits in turnover series has been revised. The new the series continue to include commercial series, which begins with January 1964 data, bank demand deposits of individuals, partappears in this issue of the BULLETIN on nerships, and corporations, and of States page 440. This revision, the first major and political subdivisions, and to exclude change in the series since March 1953, in- U.S. Government, interbank, and all time corporates three innovations designed to deposit accounts. As before, the series remake the series a more useful indicator of flects debits arising from checks drawn on current economic and financial develop- these accounts as well as from other charges ments: against such accounts, that is, for U.S. Government security purchases, utility pay- 1. The geographic coverage for most rements, service charges, and loan payments porting centers has been increased that are made directly from these accounts. from the city to the Standard Metropolitan Statistical Area (SMSA).1 SMSA REPORTING BASIS 2. Figures for the revised series reflect es- In the past few years the Standard Metrotimated universe totals for the SMSA's politan Statistical Area has become increasrather than reported figures only. ingly important as a geographical unit for 3. Monthly debits and deposit turnover statistical measurement. The SMSA is a for the national aggregate series are bemore meaningful area for analyzing both ing published on an annual rate basis debits and turnover because the cities repreadjusted for seasonal variations and sented in the old series frequently reflected differences in calendar composition of arbitrary legal boundaries having little redays of the week in each month. lationship to the economic structure of the Expansion of reporting to the SMSA basis urban areas. For these reasons, and in order has increased the deposit coverage of the to correlate the debits and deposit turnover series by 19 per cent and debits coverage by series with other economic indicators that about 12 per cent on a national basis. Most are available on the SMSA basis, this series of this increase results from the expansion of has been converted to that basis. geographic coverage, but the conversion to The number of reporting areas has been estimated universe totals also accounts for reduced to 225 from the 344 formerly covered.2 This reduction results from the com- 1 Geographical limits for individual SMSA's are bining of cities into larger Standard Metrothose defined by the Budget Bureau (along county politan Statistical Areas and the elimination lines except in New England). NOTE.—This article was prepared by Lowell M. 2 Seventeen cities or counties that are not SMSA's Glenn and Theodore Vander Noot of the Financial are included among the 225 reporting centers for Statistics Section of the Board's Division of Data purposes of regional coverage or because SMSA des- Processing. ignation is likely in the future. 390 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF BANK DEBITS AND DEPOSIT TURNOVER SERIES 391 of a number of smaller reporting centers An annual rate is obtained by multiplying that are not SMSA's. The current number the seasonally adjusted monthly figures by of 225 centers will be maintained for at twelve. least a year. After that, additional areas In the previous series, no adjustment was may be included periodically as new SMSA's made for seasonal influences at individual are designated or as data for older ones centers; only groups of centers were adjustbecome available. ed. For the new series, in the absence of Figures for the new series reflect esti- historical data from the individual SMSA's, mated totals for all commercial banks in it was necessary to compute seasonal adthe SMSA rather than totals for reporting justment factors for each central city, based banks only as did the former series.3 Report- on data from the previous series, and to asing banks hold, in the aggregate, 91 per cent sume that the same factors could apply to of the deposits of all banks in the SMSA's the corresponding SMSA's. covered in the series. The proportions of the Calculation of individual seasonal adjustdeposits covered for individual Federal Re- ment factors for each reporting area takes serve districts vary from a low of 88 per into account the diverse seasonal influences cent to nearly complete coverage. No SMSA on debits activity in various sections of the or center having less than 70 per cent re- country and in individual SMSA's. Seasonal porting coverage has been included. variations arise from differences in crop No attempt has been made to estimate an marketings, production peaks and valleys, historical series on a SMSA basis because of some tax payments, and similar seasonal problems of estimating data for the added influences that may differ from one part of suburban banks, which may have charac- the country to another. teristics different from "core" city banks. The In addition, month-to-month variations in resulting discontinuity in the debits series debits stem from two other sources. One is limits its usefulness for long-term analyses, the length of the month—28, 29, 30, or 31 but it cannot be avoided. In any event, debits days. The other is the calendar or day-ofdata are generally recognized to be more use- the-week composition of the month—the ful as a short-term economic indicator. number of Mondays, Tuesdays, and so forth. The first of these sources of variation has SEASONAL ADJUSTMENT PROCEDURES generally been part of any seasonal adjust- Different methods are used to compute seament procedure, but it has been necessary sonally adjusted data for debits and for to estimate calendar-composition differences turnover. by the use of such arbitrary devices as "busi- Debits. In the revised debits series, sepaness days." A new seasonal adjustment comrate seasonal adjustment factors are computer program prepared by the Census Buputed for each of the 225 areas. Seasonally reau takes into account in a single operaadjusted debits for each grouping of centers tion both sources of variation.4 (that is, 6 leading, 218 other, and so forth) are aggregates of the data for each of the 4 Allen Young, "Census Trading Day Adjustment component areas after seasonal adjustment. Method," Bureau of the Census, Technical Papers and Background Materials. This paper is available from 3 A variety of local conditions affect each area, and the Chief Economic Statistician, Bureau of the the technique for expanding the reporting sample data Census, Washington, D.C. 20244. It is expected that to universe area levels for all commercial banks was specifications for the X-ll version of the Census Budetermined on an individual basis by the Federal Re- reau's method II program for seasonal adjustment will serve Banks. be available from the same source. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN • MARCH 1965 Whether these seasonal patterns will be use of the Census Bureau's X-l 1 trading-day influenced by the addition of data for subur- adjustment procedure, and then converted ban areas can be answered only after ob- to annual rates. The resulting debits, after alservation of data covering a longer period. lowance for trading days, were then divided In any event, seasonal factors will be sub- by the universe estimates of demand deposits ject to revision following yearly re-evalua- for the component SMSA's, that is, by the tion of the SMSA debits data. Neither un- average of deposits for the current monthadjusted monthly debits nor the seasonal end and the previous month-end. Finally, adjustment factors for the national series will the resulting turnover rate was adjusted for be released at this time. seasonal variation by use of the Census Bu- Turnover. The revised turnover rates have reau's X-9 procedure. been derived from aggregate data for the groups of centers for which turnover rates STATISTICAL EFFECTS OF THE REVISION are shown. In deriving the seasonally ad- Table 1 compares the revised debits totals justed rates for each group of centers, the with the old debits totals on a seasonally admonthly universe estimates for total unad- justed annual rate basis. The new series justed debits of the component SMSA's were shows a level 11.6 per cent higher than the first adjusted for the calendar and working- old series. The New York area is 10.9 per day structure of the individual month, by cent higher, while the 6 Other Centers TABLE 1 COMPARISON OF DEBITS IN THE NATIONAL DEBITS SERIES, 1964 (Seasonally adjusted annual rates, in billions of dollars) Old series* Revised series Month Total Leading centers 337 Total Leading SMSA's 218 344 other 225 other centers NYC 6 others centers SMSA's2 NY 6 others SMSA's 2 January 4,077.1 1,724.4 832.4 1,520.3 4,486.5 1,915.0 989.6 1,581.9 February 3,791.2 1,553.1 783.0 1,455.1 4,359.2 1,768.9 986.3 1,604.0 March 3,980.4 1,656.6 821.0 1,502.7 4,419.5 1,822.2 999.5 1,597.8 April 4,203.4 1,751.6 869.4 1,582.5 4,603.0 1,909.2 1,038.4 1,655.4 May 3,934.4 1,621.0 812.4 1,500.9 4,542.0 1,853.6 1,030.0 1,658.4 June 4,011.2 1,682.2 810.0 1,519.1 4,535.4 1,928.0 992.5 1,614.9 July 4,248.7 1,818.0 857.2 1,573.5 4,833.7 2,087.0 1,058.9 1.687.8 August 4,056.9 1,684.3 825.7 1,546.9 4,579.9 1,898.2 1,021.3 ,660.4 September 4,219.0 1,794.1 844.7 1,580.1 4,763.5 2,007.6 1,049.5 1,706.4 October 4,205.8 1,751.8 860.2 1,593.8 4,698.2 1,926.7 1,060.6 1,710.9 November 4,224.1 1,753.9 845.1 1,625.1 4,648.0 1,917.7 1,023.7 11,706.6 December 4,373.2 1,876.2 866.3 1,630.6 4,816.5 2,013.0 1,065.4 .7^8.1 Year 4,140.7 1,735.8 841.6 1,563.3 4,621.2 1,925.3 1,030.8 1,665.0 Change from old series (per cent) + 11.6 + 10.9 +22.5 +6.5 * Data include revisions for 1964. 2 Includes 17 centers not designated as SMSA's. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISION OF BANK DEBITS AND DEPOSIT TURNOVER SERIES 393 TABLE 2 TURNOVER OF DEMAND DEPOSITS IN THE NATIONAL DEBITS SERIES, 1964 (Seasonally adjusted annual rates) Old series * Revised series Leading centers Leading SMSA's Month Total 337 Total Total 224 218 343 344 other 225 SMSA's 2 other centers centers centers SMSA's2 NY (Excludes NY) SMSA's2 NYC 6 others 6 others SMSA January 47.1 92.1 47.8 34.8 30.6 43.9 87.3 40.5 32.3 28.7 February.... 44.9 86.2 45.5 33.8 29.5 43.9 87.1 41.6 32.6 28.8 March...... 46.8 91.6 47.2 34.5 30.2 43.8 86.6 40.4 32.6 29.0 April 49.2 95.5 49.6 36.1 31.6 45.1 89.8 42.1 33.2 29.4 May 46.9 90.9 47.9 35.4 30.5 45.2 89.8 43.1 33.5 29.5 June 47.6 94.5 47.4 35.1 30.5 45.0 91.2 40.9 32.9 29.3 July. 49.7 100.2 49.5 35.6 31.2 46.3 95.8 42.3 33.3 29.4 August 47.1 92.8 47.5 35.2 30.6 44.7 89.3 42.4 33.0 29.1 September... 47.8 97.0 48.0 35.2 30.7 44.3 88.5 41.4 32.9 29.2 October 48.0 94.2 48.3 35.6 31.1 44.6 89.8 40.9 32.8 29.3 November... 47.5 92.9 46.7 35.6 31.5 45.1 91.3 41.0 33.2 29.5 December 49.3 98.7 48.2 35.3 31.5 45.5 90.7 41.7 33.4 30.0 Year 47.7 93.8 47.8 35.2 30.8 44.7 89.5 41.4 32.9 29.2 Change from old series (per cent) -6.3 -4.6 -13.4 -6.5 -5.2 1 Data include revisions for 1964. 2 Includes 17 centers not designated as SMSA's. (SMSA's) and All Other Centers (exclud- revised series shows a decrease in every maing New York and 6 Other Centers) are jor classification. This results from the addi- 22.5 and 6.5 per cent higher, respectively. tion of suburban banks, which historically As previously noted, demand deposit cov- have shown much lower deposit activity than erage for the revised series has increased as core city banks. compared with the former series. An average of the end-of-month deposit figures for 1964 for the new series shows the following in- To assist in the analysis of data from creases: All Centers, 19 per cent; New York, local and regional areas, the annual debits 16 per cent; 6 Other Centers, 41 per cent; release (C.5) is being published in two All Centers (1) excluding New York, 20 forms for 1964. One, published on the old per cent, and (2) excluding New York and basis, is comparable to those of past years. 6 Other Centers, 12 per cent. The other, published in the revised format, Table 2 shows the average percentage shows the yearly total of unadjusted debits change in turnover rates for each of the for each center and the seasonally adjusted major reporting classifications. A compari- annual rate of debits for each center for son of turnover rates of the former and the each month of 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement of William McChesney Martin, sion in activity last year flowed directly from Jr., Chairman, Board of Governors of the the stimulus of tax reduction. It is equally Federal Reserve System, before the Joint difficult to say what part monetary policy Economic Committee, February 26, 1965. played in last year's economic advance. Assessments of this kind will always be matters My remarks today will be directed pri- of judgment. But I think we can agree that marily to financial developments, for there is both fiscal policy and monetary policy conlittle I can add to the more general reviews tributed positively to the year's outcome. of the economy's progress which you have As to credit market developments during already heard. I share fully the satisfaction 1964, there was relatively little change over others have expressed about the achievement the year in either the availability of credit of a fourth year of vigorous expansion in the or the cost of credit in markets that are most output of goods and services. And I am also closely related to domestic economic acpleased that we were able to show further tivity. progress in reducing, at least a little, the un- Total funds raised last year amounted to employment rate. That we accomplished so a little over $71 billion—up from about $62 much within a general framework of price billion in 1963, and $58 billion in 1962. stability is a matter for special gratification. The pattern of flow within this sizable in- As has been brought vividly to our atten- crease in the total was roughly comparable tion in recent weeks, our slow progress to- to that of other recent years. ward a solution to our balance of payments To take a few examples, the Federal Govproblem has not been so gratifying, and fail- ernment raised about $6 billion in the calenure to bring about a significant improvement dar year, as compared with $4.8 billion in constitutes a challenge of first importance to 1963, and $7.5 billion in 1962. Consumer our national well-being. The whole posture credit increased $6.7 billion—the same and effectiveness of our foreign economic amount as 1963, and more than the $5.5 policy hinges on world confidence in the billion in 1962. State and local governments dollar. But let me return to this problem added $6.5 billion to their indebtedness, as later in my remarks. compared with $6.7 billion in 1963, and $5 To assess with precision the role of one billion in 1962. Additional borrowing on 1segment of public policy in the broad sweep to 4-family home mortgages amounted to of economic developments is always diffi- about $16 billion, as compared with $15 cult. For example, we all speculated before billion in 1963, and $13 billion in 1962. As the fact as to what might be the impact of you can see, all of the figures for 1964 are the tax changes that went into effect last in roughly the same order of magnitude as year. Even with the benefit of hindsight, it is those in other recent years, and the over-all very difficult to say how much of the expan- increase is widely distributed. 394 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 395 Much the same observation might be junction with the change in the Federal made with respect to the sources of funds. Reserve discount rate in late November, and The flow of financial savings in the form of at the year-end it was near the top of the time and savings deposits at commercial 3.43-3.86 per cent range for the year as a banks and at other savings institutions re- whole. mained high and little changed, amounting I believe it is fair to say that the very to about $29 billion in 1964, as compared moderate changes in long-term yields and in with $28 billion in each of the preceding 2 fund flows reflected primarily the interplay years. Private insurance and pension fund of market forces and not the modest changes reserves increased by $10.5 billion last year, that were made from time to time in moneas compared with about $10 billion in 1963, tary policy, primarily with a view to mainand $9 billion in 1962. Direct financial in- taining as firm conditions as practicable in vestment by the public was larger than in the short-term money market for balance of other recent years—$14 billion, as com- payments purposes. However, the over-all pared with around $10 billion in 1963 and effect of our policies was to permit credit to $9 billion in 1962. Generally we see that the expand in response to the demands of a changes which occurred in the pattern of vigorously growing domestic economy withsavings flows were not dramatic, although out significant upward adjustment of the the year-to-year gains were varied. Increases cost or contractive adjustment in the availin the public's holdings of demand deposits ability of credit. and currency financed $6.1 billion of the At the time, this policy seemed to me to total flow, as compared with $5 billion in be the most appropriate one and, in retrothe preceding year. This was related to a 4 spect, it still seems to me to have been apper cent increase over the year in the conpropriate. I am reasonably certain that a ventionally defined money supply, as commore stimulative monetary policy would not pared with 3.8 per cent in 1963. have been desirable. It is not equally clear As I have already suggested, these shifts to me that even in terms of domestic develin the flow of funds were not accompanied opments alone we may not wish we had by any change in the structure of interest exercised somewhat more restraint, esperates or in credit availability of great signif- cially on the very rapid growth of money and icance for the domestic economy. The yield credit that occurred during the early sumon long-term U.S. Government bonds fluc- mer. Since that time the rate of expansion in tuated between 4.11 and 4.20 per cent and the money supply has, in fact, moderated, was close to the middle of that range at the and the rate of bank credit expansion has year-end. Yields on Aaa State and local gov- been closely geared to the inflow of time and ernment issues fluctuated in a range of 2.99 savings deposits. We may suspect that credit to 3.16 per cent and ended the year at the growth in 1964 facilitated unsustainably low point of that range. Corporate Aaa high rates of activity in some areas and the bonds moved between 4.35 and 4.45 per build-up of dormant but dangerous pools of cent, closing near the top of the range. After liquidity in the economy, but it is not yet moving in a very narrow range throughout evident that this was the case. most of the year, the rate on 90-day Treas- There is evidence that the high rate of ury bills rose in the fall, especially in con- credit growth last year, as well as in the im- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN • MARCH 1965 mediately preceding years, was not accom- from the United States in 1964. While it is plished without some deterioration in the true that we were still able to show some quality of credit. In itself this is not a cause modest improvement by reducing the deficit for alarm. As institutional lenders have been from $3.3 billion in 1963 to $3.0 billion in pressed to employ the large flows of funds 1964, the substantial improvement that we that have come to them, it was to be ex- all hoped for and might otherwise have pected that they would make some loans on achieved was wiped out by a dramatic rise more liberal terms than were heretofore ac- in capital outflows. Total capital outflows ceptable. So long as these are scattered in increased by almost $2 billion—from about well balanced portfolios and protected by $4 billion to about $6 billion. Had it not adequate reserves, they do not endanger the been for this increase, our deficit would have financial structure. But if they are concen- dropped to $1 billion—progress that would trated in some institutions or in certain local have been generally regarded as encouragareas, they can cause real trouble. I believe ing, both here and abroad. that the financial community is now fully The large increase in our capital outflow alert to this problem and its potentialities— was associated with a substantial advance but we must be careful in our monetary abroad in both short- and long-term rates policy not to encourage lending practices and a marked curtailment in the availability that, in the supervision of financial institu- of credit in major foreign markets. At the tions, we seek to prevent. Too much pres- time we were experiencing this mounting sure to expand aggregate demand through capital outflow, an adverse payments baladditions to the flow of funds in credit mar- ance for the United Kingdom put the pound kets could have this effect. sterling under strong pressure in interna- Economic developments are never exactly tional markets, resulting in further large as one might wish them to be—and some drains on Britain's monetary reserves. That maladjustments are no more than evidence country was obliged to take a number of of necessary and desirable changes that are emergency steps, including the establishpart of the growth process. ment by its central bank of a discount rate The shifts of capital and other resources of 7 per cent. To support the pound in interfrom obsolete to more productive uses that national markets, the Bank of England arare essential to growth are smoothed and ranged credits with other central banks and speeded by the ready availability of credit. the Bank for International Settlements I believe our policies helped the credit mech- amounting to about $3 billion. anism to perform this useful function in In these circumstances and in recognition 1964. In other words, I think that monetary of the advances in short-term rates that had policy did what it could and should do to been occurring in other international marfacilitate healthy economic growth within kets, the Federal Reserve discount rate was the United States. In our effort to try to do raised from 3Vb to 4 per cent. At the same all that we could, I only hope that we did time ceilings on the interest rates that banks not do a little more than we should have. are permitted to pay on time deposits of over Whether it could have or should have, it 90 days were raised to 4.50 per cent. Shortis now clear that monetary policy did not term rates in our money market promptly prevent a large increase in capital outflows moved upward about a quarter of a per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

397 STATEMENTS TO CONGRESS centage point in adjustment to these proach are obvious. It interferes less drastichanges. It is impossible to say how large the cally with the principles of our economy, capital outflow in the fourth quarter might based on private initiative and the market have been if we had not taken the actions mechanism, than would a system of direct when we did. All that we know is that in controls. It can be put into effect much faster spite of whatever inhibiting effect may have than taxes or statutory regulations on overcome from these actions, and the accom- seas lending and investment, and it can be panying rise in short rates, there was a much more flexible in dealing with special further rise in lending and investing abroad. situations. While it does not relieve us of the I realize that it is always possible to play necessity of pursuing fiscal and monetary a sort of numbers game with the balance of policies appropriate to the correction of our payments statistics, in which one can show payments deficit, it may permit somewhat that a substantial reduction in any important greater latitude in adjusting such policies to component of the gross flows of funds stable and sustainable domestic economic abroad would wipe out or drastically reduce expansion. The risk is equally obvious. We our deficit. This is true of foreign aid, of our cannot be certain that we will obtain, volmilitary expenditures overseas, of tourist ex- untarily, the cooperation that is essential to penditures, and so on. The important fact the success of this sort of program. to bear in mind is that it was our capital Bankers and other businessmen feel, as outflow that rose so spectacularly in recent they should, a strong sense of responsibility months. to maximize the earnings available to pay This is why the President's program to interest and dividends to their depositors and correct our balance of payments deficit shareholders. But more and more, it seems places special emphasis on capital flows and to me, they are prepared to interpret this on bank lending in particular. Bank lending responsibility broadly and to recognize that last year increased by over $ 1 billion, bring- policies which are in the national interest ing it to double the rate that prevailed in may be more beneficial to them, even though 1963, and about quadruple the 1962 rate. they may not maximize profits in the short In the light of these facts, it seems clear to run. I am encouraged by the response we me that the program launched by the Presi- have had thus far. The bankers and others dent addresses itself to the core of the prob- with whom I have discussed the program lem. To accomplish its ends, it is relying seem not only willing but also determined to heavily on voluntary cooperation by banks, make the program a success. other financial institutions, and nonfinancial Nevertheless, I think we must all follow businesses. The Federal Reserve System has the progress of this program and related dea major role in this program and is already velopments in our balance of payments pursuing vigorously its assignment from the closely as the year progresses. If at any point President. it appears to us that we are not making the It is no secret that some skepticism has gains envisaged in the President's Message, been expressed both here and abroad as to we must all be prepared to take whatever whether such a voluntary program can suc- additional measures are needed, including of ceed. No one can say for sure until we try. course, a less expansive over-all credit pol- The advantages of this voluntary ap- icy. There is no doubt in my mind that 1965 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN • MARCH 1965 must be a year in which we show substantial more meaningful observation, I think, is that progress toward the solution of our balance the whole complex of factors that make up of payments problem. what we call the tone and feel of the market Let me say a few words about economic have been slightly firmer. While there has developments since the turn of the year. Un- been some uncertainty as to market prosfortunately, our ability to assess the under- pects for longer-term securities, actual prices lying trends in the economy is complicated have moved very little and the average yield by an extended dock strike that has para- on long-term Government bonds is still close lyzed shipping at East Coast and Gulf ports, to the level that prevailed at the turn of the and by the prospect of a work stoppage in year. the steel industry. Commodity price behavior is perhaps the In the aggregate, we do know that eco- most difficult of all developments to internomic activity has continued to rise. Fol- pret with confidence. For the last several lowing the large gains in November and years there have been efforts from time to December, when auto output recovered time by suppliers of industrial materials and from strikes, industrial production rose products to make upward price adjustments. somewhat further in January. Unemploy- More often than not these efforts failed, with ment edged down to 4.8 per cent. Bank the result that over-all averages remained credit rose vigorously, reflecting a large in- substantially unchanged. Since the middle of flow of time and savings deposits, which ap- last year, when market prices of sensitive inpears to be continuing in February. The dustrial materials moved up further, more money supply expanded moderately in Jan- of the price increases in industrial products uary—at an annual rate of about 3 per cent have held than was the case earlier, and as a —but showed no further growth in the first result the averages of both industrial mahalf of February. We know from experience, terial and product prices have edged up. and I would warn you, that very little signif- Thus far, the movement in these averages could certainly be described as moderate, icance should be attached to week-to-week and the tendency for more price increases to and even month-to-month fluctuations in stick may be related to the high rates of acthis rate, however. Movements in one directivity in some lines, associated with steel tion or the other often reverse themselves in strike anticipations. When this added stimthe subsequent period. ulus is withdrawn or reversed, even the mild Conditions in money markets have firmed uptrend that we have seen recently may dissomewhat in recent weeks, and the 3-month appear. bill rate has moved up close to the 4 per cent discount rate. As those of you who have Having said this, let me add that I cannot heard me discuss the subject before are well avoid the feeling that we have been, and still aware, I feel strongly that too much em- are, sailing very close to the edge in this phasis should not be placed on free or net area. Expectations play an important role in borrowed reserve figures as indicators of price behavior and the expectation of conmonetary policy. Nevertheless, let me just tinuing price stability is vital to its current mention that free reserves have been some- realization. what lower on the average, and we did re- As I have said many times, inflation is a port a minus figure in one recent week. The process and not just a condition. We must Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 399 expect that markets will continue to be serve to assume major responsibility. Actested and that if we fail to maintain a situa- cordingly, we have now communicated to tion that is conducive to price stability, we the commercial banks and other financial could find ourselves caught up very quickly institutions of this country guidelines for a in an inflationary spiral. Such a development voluntary effort to restrain their foreign would seriously threaten both our program lending. to bring our international payments into bal- It may be helpful to you in the course of ance and the prospects for continued expan- my statement to explain briefly the approach sion in our domestic economy. to our international payments problem fol- There is, inevitably, an element of lowed by the Federal Reserve in laying down "brinksmanship" in our laudable efforts to its guidelines. push our economy closer and closer to its The magnitude of our payments deficit is full potential without straining it. It will re- determined by three main factors: first, the quire the best efforts of all of us to achieve commercial balance on goods and services; balance in both our internal and interna- second, our military expenditures abroad tional economic affairs in the year ahead. and our economic aid to foreign countries; and third, the net outflow of our private capital into foreign countries. The Presi- Statement of William McChesney Martin, dent's program attacks the deficit on all Jr., Chairman, Board of Governors of the three fronts. But as the Federal Reserve is Federal Reserve System, before the Subcomnot asked to deal with Government expendmittee on International Finance of the Senitures, my comments will be directed priate Committee on Banking and Currency, marily to problems on commercial account March 10, 1965. and private capital account. For the second time in less than 2 years, a In my opinion, it cannot be stressed too national program to reduce and eventually often that the main contribution of monetary eliminate our large international payments policy both to our continued domestic exdeficit has been launched. Our first program, pansion and to the restoration of our interbegun with President Kennedy's message to national payments equilibrium is the mainte- Congress of July 18, 1963, met for a time nance of credit conditions that help bring with a measure of success, but in the course about cost and price stability. Avoidance of of last year, signs of fresh deterioration ap- both inflation and deflation not only averts peared. The fourth quarter of 1964 brought one of the main perils to sustainable ecoa near-record payments deficit. During the nomic growth; it is also indispensable to first 6 weeks of 1965 tentative and fragmen- preservation and improvement of the intertary data indicated that a large deficit was in national competitive position of our indusprospect for the first quarter of the current tries at home and in world markets. year. The further expansion of our commercial The need for more vigorous action was surplus depends on continued avoidance of clear. President Johnson's program of Feb- cost and price increases—although, needless ruary 10, 1965, was in response to this chal- to say, many other factors, such as the level lenge. For an important part of the program, of economic activity at home and abroad, the President called upon the Federal Re- also play important roles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN • MARCH 1965 By providing monetary conditions favor- to an unsustainable boom—although develable to price stability, Federal Reserve pol- opments in some fields such as construction icy has, in my judgment, been as successful need to be carefully watched. But our moneas could be expected in furthering a satisfac- tary policy has permitted credit in the United tory development of our payments balance States to remain relatively cheap and plention current account. I do not want to mini- ful in comparison with other major markets mize the importance of some signs pointing and thus has been a factor in the magnitude toward renewed upward cost and price pres- of our private capital outflow. sures. As I said in my testimony before the While this capital outflow has played an Joint Economic Committee on February 26, important part in swelling our payments I cannot avoid the feeling that we have been, deficit, we must remain mindful that the and still are, sailing very close to the edge United States is and will probably continue in this area. But the over-all changes up to in the future to be an important source of now in per-unit costs of production, in credit and capital for the rest of the world. wholesale prices, and in the cost of living As the richest and most productive nation have so far not imperiled our international of the world, the United States is capable of trade performance. generating the largest supply of savings, With regard to the Federal Reserve's con- both in absolute terms and in relation to natribution to minimizing outflows on capital tional income. Our accumulated stock of inaccount, the matter, unfortunately, is not vested capital is also larger than that of any quite so simple. While our commercial bal- other country, again both in absolute ance has shown record surpluses, our capital amounts and in relation to national product. account has shown record deficits. The total Hence, our domestic demand for new investnet private U.S. capital outflow in 1964 ment is more easily satisfied than in most if amounted to over $6 billion—twice as much not all foreign countries. With a larger supas our total payments deficit—and the net ply and a somewhat less strong demand than expansion of bank credit to foreigners alone in other countries, the availability of credit accounted for more than one-third of this and capital will tend to be greater, and the capital outflow. cost of credit and capital lower, than in the As a matter of principle, the aim of Fed- rest of the world. eral Reserve policy is to maintain monetary This is certainly not an unusual situation. conditions that are conducive to an adequate In previous periods the same relation obsupply of credit and capital. This means a tained with respect to those nations that supply large enough to finance continuing happened to be in the economic and finaneconomic expansion domestically without cial lead for their time. France, the Low inflation, but not so generous as to make Countries, and especially Britain were for possible either an unsustainable investment many generations a continuing source of boom or an undue spill-over of funds to credit and capital for the rest of the world, foreign countries. and during those periods their interest rate The supply of credit and capital in recent levels were naturally lower than in borrowyears, in my judgment, certainly has been ing countries. large enough to meet all legitimate domestic It is clear that restoration of our foreign financing needs. It has so far not given rise payments equilibrium does not require our Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 401 capital outflow to come to anything like a tic interest rates went some distance in betfull stop. Arithmetically, a cutback in our ter aligning our interest rates with those private capital outflow of about one-half of in foreign markets. Through the second half the 1964 volume would suffice to wipe out of 1963 and the early months of 1964, this the entire payments deficit provided all other alignment continued tolerably satisfactory. elements in the payments balance remained About this time, in major industrial counthe same, Realistically, it would be both im- tries abroad, strong credit demands accompracticable and unwise, in my judgment, to panying strong economic growth and creepput the entire burden of correcting the pay- ing inflation were carrying foreign interest ments deficit on private financing. rates to levels fully offsetting the advances The main problem confronting the Fed- that had been experienced in U.S. markets. eral Reserve—and our nation at large—is In recognition of the pull that the higher how to reduce the net outflow of credit and foreign rates might exert on our credit supcapital without at the same time constricting plies, the Federal Reserve in August firmed the domestic supply so much that financing domestic money market conditions slightly needed for our expanding economy at stable further, with the result that the Treasury bill prices is unduly impeded. rate moved modestly above the discount Two alternative courses of policy are rate. available to cope with this problem: one, a Under continued pressure of inflationary general increase in the cost and a lessening trends abroad, however, the availability of of the availability of credit; and the other, credit came under increasing central bank specific action designed to cut only the sup- restraint in various foreign markets. In these ply of credit and capital to foreigners with- circumstances, capital outflow from the out impinging on the needed supply to the United States accelerated. domestic economy. About the time that we were experiencing The Federal Reserve has to some extent this mounting capital outflow, an adverse followed the traditional course of the first payments balance for the United Kingdom alternative. At the time President Kennedy put the pound sterling under strong pressure was formulating his program and in the in international markets, resulting in large prospect of its early announcement, the drains on Britain's monetary reserves. That Federal Reserve shifted its policy posture in country was obliged to take a number of the direction of less domestic ease and in- emergency steps, including the establishcreased its discount rate from 3 to 3Vi per ment by its central bank of a discount rate cent, and shortly after lifted to 4 per cent the of 7 per cent. To support the pound in interceiling rate of interest on time deposits in national markets, the Bank of England arthe maturity range of 90 days to 1 year. ranged for a $1 billion drawing on the IMF These actions were promptly reflected in along with about $3 billion of credits with financial markets. Within a few weeks the other central banks. Treasury bill rate had risen by more than In view of uncertainties that developed at one-half a percentage point and over ensu- this point in international financial markets ing months long-term interest rates drifted and in recognition of the advances in shortupward by just over one-eighth of a point. term rates that had been occurring in other These upward shifts in the level of domes- international markets, the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN • MARCH 1965 raised its discount rate last November from cult, if not impossible, in legislative drafting 3Y2 to 4 per cent. At the same time, ceilings to foresee all loophole possibilities. Too emon the interest rates that banks are permit- bracing a tax, with many exceptions and ted to pay on time deposits of over 90 days qualifications, could be so complicated to were raised to AVi per cent. Short-term rates administer that its effectiveness would be in our money market promptly moved up- seriously impaired. ward further about a quarter of a percent- Exchange controls have not been tried age point in adjustment to these changes; in the past, except under wartime conditions, long-term rates, however, continued to fluc- and I, for one, hope they will not be tried. tuate narrowly within the range that had By shifting decision making in individual prevailed for several years, reflecting the business transactions from participants to continued large flow of domestic savings. some Government agency, this approach It is impossible to say how large the capi- would be repugnant to the principles of our tal outflow in the fourth quarter might have economic system. Also, experience everybeen if we had not taken the actions when where has shown that exchange regulations, we did. All that we now know is that in spite if couched in general terms, can be avoided of whatever inhibiting effect may have come as easily as a special tax; and if elaborated from these actions and the accompanying in great detail, can become so oppressive increase in short rates, there was a further that they also hamper business activities rise in lending and investing abroad. beneficial to our payments situation. And Nevertheless, we have not moved further once this route has been chosen, experience in the traditional way to constrain our re- has demonstrated the difficulty of retracing newed capital outflow. Considering the de- one's steps towards freedom from controls. sirability of further reducing our level of Of the three methods of selective restraint, unemployment and more fully utilizing our exchange controls are, in my judgment, the resources, we have risked permitting some one that should not be seriously contemspill-over of funds into foreign uses and have plated. sought other, more selective means of cop- This leaves for comment the voluntary aping with the outflow problem. proach. This method also has shortcomings. There are three selective ways by which The person, individual or corporate, adhercapital outflow can be reduced: by tax ing to a voluntary program may be penalmeasures; by exchange controls; or by en- ized in favor of an uncooperative person. listment of voluntary restraint. But if widespread voluntary restraint can The interest equalization tax is an ex- reasonably be expected, the method has ample of the first approach. Experience with three advantages: first, it leaves the ultimate this approach so far has indicated both its decision to the market participants; second, strength and weakness. It is generally agreed it is flexible enough to take care of changing that a tax is more consistent with the princi- circumstances and of the experience gained ples on which our economy is based than in the process; and third, given the good would be the use of direct controls or an faith of all parties, it avoids the encumappeal to voluntary restraint. But a tax brance of legalistic interpretations of the statute can hardly avoid some opportunities "rules of the game." for legal escape, since it is extremely diffi- With regard to the expansion of credits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 403 to foreigners granted by banks and other less developed countries. But clearly a less financial institutions, the prospects of gen- developed country should not rely on U.S. eral compliance with voluntary efforts are credit for projects that can and should be particularly good because a comparatively financed either with the country's own refew institutions account for the great bulk sources, or by other industrial nations—for of the total funds involved. And the response example, where the project envisages imports the Federal Reserve has encountered in its from European suppliers. initial efforts to implement the President's The guidelines explicitly state that subprogram has been quite encouraging. stantial cutbacks are expected only in non- Last week the Federal Reserve issued its export credits to those fully developed counguidelines to the banks and to other financial tries that are not customarily dependent on institutions. The guidelines provide that any U.S. financing and that do not suffer from bank may expand its credit to foreigners by payments difficulties. Most if not all conti- 5 per cent of the amount outstanding at the nental European countries should fall into end of 1964. Such a figure is consistent with this category. the expected growth of our national product The guidelines for nonbank financial inand also the expected growth of international stitutions are more general and tentative in trade. But it is much smaller than was the their specifications. They envisage cutbacks rate of last year's credit outflow. All of us in the placement of liquid funds abroad, realize that the restraint asked for may create primarily in the so-called Euro-dollar marhardship in individual cases. ket. In the case of short- and medium-term Our guidelines, which are directed to credits, the guidelines for banks are in effect each bank individually, are designed to dis- applicable to nonbanks. But in the case of tribute the burden as equitably as possible long-term credits (with a maturity of 5 years and to avoid unnecessary inconvenience. In or more), which are probably more imporparticular, they are designed to avert any tant in the case of nonbanks than of banks, adverse repercussions on our international no specific target has been set. Most longercommerce; on sound development efforts of term credits to fully developed countries are less developed countries; and on such coun- subject to the interest equalization tax. No tries as Canada and Japan, which are largely effort is being made to discourage continued dependent on U.S. financing, and Britain, long-term investments in less developed which is suffering from serious payments dif- countries, which need this type of assistance ficulties of its own. more urgently than they do additional bank We expect that banks will continue to credits. grant bona fide export credits; such credits I am optimistic about the effectiveness of are to be given absolute priority. Obviously, the voluntary restraint efforts, but it would no priority can be claimed for credit exten- be impossible to give any quantitative estisions that substitute a credit sale for a cash mate of their probable impact on our paysale or that substitute financing by U.S. ments balance this year. Some banks greatly banks for financing from nonbank or foreign increased their credits to foreigners during resources. the first 6 weeks of this year; some made very We also expect that banks will continue heavy advance commitments that they will to finance sound development projects of have to honor; some carry many long-term Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN • MARCH 1965 credits among their outstanding assets, on action, a return to the traditional recipe of which only small repayments are expected further restraint may be necessary in the this year; others expect to have to increase monetary sphere, as may be further restraint their export credits and their loans to less in the spheres of military expenditures, ecodeveloped countries without being able im- nomic aid, and tourism. mediately to reduce sufficiently their non- But even if the program of voluntary reexport credits to industrial countries. Banks straint achieves the greatest possible degree that find themselves in such predicaments of success, we cannot think of it as a permaas these have been given 12 months to reduce nent institution. This program can serve as their outstanding credits to no more than a dyke for a period of time, but still farther 105 per cent of the 1964 level. ahead we have to look for a more basic ad- Moreover, we realize that in spite of all justment of our international payments balgoodwill and vigilance there may be some ance. The better we succeed in keeping our shifting of bank credit to nonbanking insti- industries competitive in international comtutions. The effect of this shift on the over- merce, and the better we succeed in reducing all reduction of nonbank credits to foreign- our Government payments abroad, the less ers cannot be predicted at this stage. we will need to be concerned about our For the moment, we appear to be making capital outflow, and the sooner we can regood progress indeed. But of course the real turn to a system that leaves balance on capitest of the program lies ahead. Meanwhile, tal account to the forces of a free market. I should not like to say more than that we expect the net expansion of both bank credit and total credit to foreigners to be reduced Statement of William McChesney Martin, this year by a substantial amount. Jr., Chairman, Board of Governors of the This reduction in capital outflows will be Federal Reserve System, on H. R. 5280 bewelcome. But in itself it will not be sufficient fore the Antitrust Subcommittee of the Comto assure the success of the President's promittee on the Judiciary, House of Repregram. For that, two things more are resentatives, March 11, 1965. quired: a further increase in our export surplus and a further decrease in our Govern- I testify here today in support of the bill ment expenditures abroad. To borrow a H. R. 5280, which is intended to implement word from the other side of the Iron Curtain, one of the recommendations of the President the program is like a troika, which cannot on February 10, 1965, in his Message to move if only one of its three horses keeps Congress on the balance of payments probgoing. lem of the United States. Since I expect success for the program, In so doing, I want to emphasize that the there is no need for me to dwell on actions President's concern about the deterioration that might become necessary if the program in our international balance of payments is were not as successful as expected. But the shared by the Federal Reserve System. We inference from the analysis of the situation join wholeheartedly in the President's deis unequivocal. With exchange controls de- termination to improve our international cidedly inadvisable, and with tax measures payments position and to maintain confiunlikely to be more effective than voluntary dence in the dollar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 405 Briefly, this bill—subject to safeguards to and other financial institutions prominent in competition—would exempt from the anti- the field of foreign lending after their visit trust laws discussions among bankers and on the subject earlier that day with the Presicertain other financial institutions, and the dent. formulation by them, of "voluntary agree- Last week the Board issued its guidelines ments or programs" to restrain private out- for banks and other financial institutions to flows of dollar funds detrimental to our bal- follow—individually and in the discretion of ance of payments position, if requested by each institution—in complying with the the President or his delegate. The bill would President's program. also exempt from the antitrust laws any acts Under the guidelines, any bank may exor omissions to act which occur pursuant to pand its credits to foreigners by 5 per cent any such "voluntary agreement or program" of the amount outstanding at the end of approved either by the President, himself, or 1964. We expect that banks will continue by a delegate of the President (who is apto grant bona fide export credits. Such credpointed by him with the advice and consent its are to be given absolute priority. Obviof the Senate) and the Attorney General. ously, no priority can be claimed for credit Provision is made for necessary reports to extensions that substitute a credit sale for a the President or his delegate of activities afcash sale or that substitute financing by U.S. fecting our balance of payments position. banks for financing from nonbank or for- If enacted, H. R. 5280 would terminate Deeign resources. A bank that finds itself in cember 31, 1967, unless terminated sooner excess of the 5 per cent guideline is asked by the President as no longer necessary. to reduce its foreign credits to no more than I shall endeavor to relate the desirability that level within 12 months, or sooner if of this legislation to the major role to which possible. As provision is also made within the Federal Reserve System and the banking the guidelines to avoid difficulties to less deand financial community, in cooperation veloped countries and certain others, the with the Secretary of the Treasury, have cutback sought to be achieved is expected been assigned in the drive for the President's almost entirely in nonexport credit to those objective. That role is to help improve the fully developed countries that are not cusnation's international payments position by tomarily dependent on U.S. financing and voluntary restraint on loans and other that do not suffer from payments difficulties. credits to foreigners. The place of nonbank financial institu- Immediately following the President's tions under the President's balance of pay- Message of February 10, the Board urged ments program involves somewhat different all banks to make a determined effort to problems. The guidelines for these instituhelp reduce the outflow of private funds. tions are more general and tentative in their The importance of the role assigned to the specifications. They envisage cutbacks in banking and financial community and the the placement of liquid funds abroad, priimplementing steps being taken were marily in the so-called Euro-dollar market. stressed and outlined at our meeting on In the case of short- and medium-term cred- February 18 with representatives of banks its, the guidelines for banks are, in effect, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN • MARCH 1965 applicable to nonbanks. No specific target With this legislation on the books, the has been set for long-term credit. private institutions covered in the bill may In his Message, the President stated that well feel more able to cooperate in plans that pending enactment of this legislation, the may be essential to the successful execution Secretary of the Treasury and the Federal of the responsibility assigned to them under Reserve will guide the program assigned to the President's program. In addition, the them along lines which raise no antitrust President or his delegate will be assured problems. This we have done, as I believe access to information needed for the prois clearly evident from the foregoing. Each gram and to assess its progress. bank is expected to act alone, in a manner Finally, the antitrust exemption that the consistent with our guidelines, and not in President has recommended is patterned collaboration with or pursuant to an under- after the provision of the Defense Producstanding or agreement with other financial tion Act of 1950 that gave exemption from institutions. the antitrust laws for the Voluntary Credit Restraint Program in force during the Ko- Of course, it remains to be seen what rean conflict. Thus, while the situation facfuture needs may be. It may become necesing the country then was quite different from sary to call upon banks and other financial the present one, the bill before you does not institutions, acting together or in groups, to involve any new or untested concept, nor enter upon the formulation of, and to adhere one that would continue in effect after the to, temporary credit restraint agreements or need for it ceased to exist. programs that, without a shield such as H. The Board urges prompt enactment of R. 5280, would raise antitrust problems. H. R. 5280. We hope that it will not be necessary to resort to efforts of that nature and that the measures we now have under way will be effective aids in correcting the serious imbalance in our international payments. How- Statement of William McChesney Martin, ever, we must be prepared to alter course if Jr., Chairman, Board of Governors of the necessary without delay. Federal Reserve System, before the Perma- In his Message the President asked that nent Subcommittee on Investigations of the U.S. financial institutions exercise voluntary Committee on Government Operations, U.S. restraint in lending money abroad. The Fed- Senate, March 16, 1965. eral Reserve System was requested by the President to work closely with the Secretary With mixed feelings, I must inform you of the Treasury and the financial community that I am unable to contribute as much as to develop a program that will sharply limit previous witnesses have to your study of the flow of bank loans abroad. The Presi- recent bank failures. Happily, none of these dent stated that cooperation among compet- failures has involved a bank examined by ing banking interests could raise problems the Federal Reserve System. In some measunder the antitrust laws. Because of this, en- ure, I believe this reflects the competence actment of H. R. 5280 is needed, as the and dedication of our examiners, and the President emphasized. wisdom of the policies laid down for their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 407 guidance. At the same time, any urge to Examination of State member banks is boast of our accomplishments is tempered carried on by the 12 Federal Reserve Banks, by at least two considerations. First, we must under the general direction of the Board of expect some failures in spite of all our efforts Governors, which coordinates the superto prevent them. Second, the Federal Re- visory work of the Reserve Banks, reviews serve System examines only State-chartered the results of their examinations, and deterbanks that are members of the System. mines broad supervisory policies. Each Fed- Fewer failures are to be expected among eral Reserve Bank has a bank examination State member banks, if only because there department, under the supervision of a vice are fewer of them than there are national president, whose appointment as an exambanks or nonmember insured banks, par- iner and officer in charge of the department ticularly in the somewhat more vulnerable is subject to the approval of the Board of smaller size ranges. Then, too, member Governors, as are the appointments of all banks (both State and national) have the the Reserve Bank examiners. privilege—not enjoyed by insured non- State member banks are examined at least member banks—of borrowing from their once each year by the Reserve Bank exam- Federal Reserve Banks to meet emergency iners, with additional examinations if conneeds. sidered desirable. The Reserve Banks do not At the end of 1964, there were 13,761 examine national banks, since the Compcommercial banks in the country. Of these, troller of the Currency is directly charged 4,773 were national banks; of the State- with that responsibility; in this way the two chartered banks, 1,452 were members of agencies avoid duplicating examinations. Inthe Federal Reserve System; 7,262 banks asmuch as State member banks are subject were insured by the Federal Deposit Insur- to examination by State authorities, the Reance Corporation but were not members of serve Banks and these authorities cooperate, the System; and 274 were uninsured. While whenever feasible, in joint or alternate examdeposit figures are not yet available for the inations. end of the year, the accompanying table in- Your hearings have shown your concern dicates how deposits were distributed among with the problem of "raiding"—gaining conthese different classes of banks on June 30, trol of a bank in order to strip it of its assets. 1964: There are three factors that make banks vulnerable to this kind of attack. First, banks TOTAL DEPOSITS OF COMMERCIAL BANKS, are more liquid than the ordinary business JUNE 30, 1964 corporation; so it is easier to turn a bank's assets into cash quickly. Second, banks have In billions Percentage a relatively high ratio of assets to capital; Type of bank of dollars distribution so they offer the prospect of gaining control of sizable assets with a relatively small in- National 156 55 vestment. Third, this country has a diversi- State member 82 29 Insured nonmember 45 16 fied banking system with thousands of small Noninsured 1 0) community banks, as opposed to the highly Total 284 100 concentrated banking structures of most other countries. These smaller American 1 Less than 1 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN • MARCH 1965 banks, particularly, offer an inviting target, to permit easy legal transfer from one holder because their capital is small; a bank with to another. But in their essential economic $3 million in deposits may have a capital of characteristics they were much the same as about $300,000, so that a controlling in- ordinary savings deposits represented by a terest might be purchased with a little over "passbook"—they were in relatively small $150,000, and in many cases the bulk of amounts, and the depositor usually had other that investment could be borrowed. Once customer relations with the bank or was control of one bank is obtained, there is a located near the bank. In other words, the danger that its funds may be used to finance funds represented by those CD's tended to purchases of control of other banks. be relatively stable, because it usually served For this reason, the Board of Governors the depositor's convenience or other selfsupported the legislation enacted last year interest to keep them with the bank; while (Public Law 88-593) to require reports of the rate of interest was of some significance, change in control of Federally supervised it was not of paramount importance. banks and reports of loans made by an in- Many CD's still have these characteristics. sured bank that are secured by 25 per cent However, in recent years some banks have or more of the voting stock of another bank, issued large volumes of CD's in greatly difwhich added to the previously existing safe- ferent circumstances. In appearance and guards against raiding. Normally, news of a legal form these CD's are quite similar to change in control of a State member bank those that have been used for many years reaches its Federal Reserve Bank promptly as the rough equivalent of savings "pass- —and this was true even before Public Law books." In economic effect, however, they 88-593 was enacted. If a new owner tries to are drastically different because they have strip a bank of its assets, the first line of tapped an essentially different source of defense is the board of directors. Acting in funds. Whereas CD's formerly were issued concert with the supervisory agencies, direc- principally to individuals and in relatively tors have on occasion blocked a move to use small amounts, the recent expansion of CD's a bank's funds to promote the interests of a has been principally in large denominations new owner at the expense of the bank. For- and to corporate and other large interesttunately, however, such cases have been rare sensitive purchasers. The rate of interest has in our experience, because the attempts have become vitally important. The documents rarely been made. are not only legally "negotiable," but to an Some of the recent bank failures have increasing degree are in practice marketable focused attention on the certificate of de- and marketed, that is, they are often traded posit, a financial instrument that has proved impersonally and even issued originally on its usefulness over the years and that has re- that basis. In short, a substantial portion of cently come into wider use in a new form. CD's now represent impersonal and volatile In some areas of the country CD's have funds. long been issued by banks as receipts for In view of the growing importance and savings on deposit. Those CD's differed from changing economic characteristics of CD's, ordinary savings deposits legally and tech- the Federal Reserve System made a survey nically, including the fact that they often of amounts outstanding at December 5, were legally "negotiable," that is, in form 1962, and for each of the two preceding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 409 year-ends. For the 410 banks surveyed, CD's risk—assets. A bank's apparent ability to increased from just over $1 billion at the end get funds readily by issuing volatile CD's of 1960 and $3.2 billion at the end of 1961 can lull it into a false sense of security— to $6.2 billion at the end of 1962. can cause it to mistake mere size of deposit Since January 1, 1964, the Board has totals for sound growth. published weekly information on CD's out- In order to avoid these pitfalls, a bank standing at the so-called weekly reporting issuing volatile CD's must have special skills member banks. This is a sample of about that are not always found in every bank. 350 member banks that give information The hazards are intensified if the bank is each week on their financial position. This relatively small or is newly chartered. Such sample is slightly smaller than that in the a bank may have a ready market for its CD's earlier survey, and CD's for these reports one day and none whatever the next; unless are limited to those of $100,000 denomina- it has maintained proper liquidity and soundtion or larger. On March 3, 1965, these ness in its assets, it cannot pay its volatile weekly reporting member banks had about CD's as they fall due. $13.9 billion of such CD's outstanding. The problems can be compounded if a This represented about 8 per cent of the bank markets volatile CD's through a brototal deposits of these banks. ker, possibly paying an extra fee for obtain- The new uses of CD's have enabled banks ing the funds. Some banks have even loaned to acquire loans and investments they could the funds so obtained to unknown borrowers not otherwise finance. But the more volatile suggested by the CD broker, who was also CD's also involve new hazards. Ordinary acting as loan broker. prudence dictates that a bank should sched- Questions regarding the soundness of CD ule its CD's to avoid undue concentrations activity of individual banks require analysis of maturities; but this is only part of the of the assets, liabilities, capital, and managestory. A bank should also avoid having an ment skills of such banks. This is the kind of undue proportion of its deposits in the vola- analysis that examiners typically apply. It is tile CD's. In most cases a bank should hold a continuing responsibility of the examinaat least as much liquidity against volatile tion departments of the Federal Reserve CD's as against demand deposits—and in Banks. In most of the instances in which some instances it should hold more. Volatile CD's have been abused, the practice has CD's can expose a bank's assets to severe been symptomatic of generally unsound actests of liquidity and soundness, since such tivity in the bank. In other words, the bank CD's increase the risk of the bank's having with CD problems has usually had other to sell or borrow on the assets. problems, including unsound lending prac- CD's, whether the more volatile kind or tices. the more stable variety, tend to represent A bank's executive officers, and particuhigh cost money. In order to earn a profit, larly its board of directors, have the first and a bank using them must place the funds in foremost responsibility for preventing or higher yielding loans and investments. A correcting unsound situations. As stockbank can easily fall into the trap of reaching holders, as members of the community, and for high cost funds through volatile CD's as possible defendants in litigation against and then reaching for high yield—and high them for negligence or misfeasance, they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN • MARCH 1965 have much to gain from correction of un- interest to use these sanctions only in exsound conditions and much to lose from treme cases. Thus far it has not seemed apunsound activities. In examining and super- propriate to invoke them in any case involvvising State member banks, the Reserve ing CD problems in a State member bank. Banks and the Board stress the necessity for The Board is not now asking for increased boards of directors to provide sound man- authority to deal with these problems; thus agement for their banks. When an examina- far we have been able to meet our responsition shows unsound conditions in a State bilities with the tools at hand. We have, howmember bank, the Reserve Bank presents ever, submitted legislation to increase the the facts to the executive officers and, if usefulness of the Federal Reserve Banks as necessary, the directors. The purpose is to a source of liquidity for member banks. This have the management of the bank recognize legislation, which we first submitted in 1963 and carry out its responsibility to operate and resubmitted yesterday to the Chairmen the bank soundly. Solution of CD problems of the two Committees on Banking and Curin such cases usually requires solution of rency, would permit member banks to borrelated problems. Besides avoiding further row from their Reserve Banks on any sound expansion of volatile CD's, the bank's man- assets without paying a penalty rate of inagement must stop making unsound loans terest. Under present law a member bank and do everything possible to collect or must pay interest at a rate one-half of 1 per strengthen any such loans already made. cent higher than the Federal Reserve Bank's To the fullest extent practicable, the bank normal discount rate if it borrows on any must collect, sell, or borrow on loans where collateral other than U.S. Government oblinecessary to pay off maturing CD's. In gations or limited types of paper that meet troublesome situations the Reserve Bank certain outmoded eligibility tests. The promay examine the bank more frequently than posed legislation would repeal these restriconce each year and may request interim tive provisions. reports from the bank. Our experience to date does not demon- The Federal Reserve Board has authority strate any clear need in my judgment for to terminate a State member bank's member- legislation providing stricter controls over ship in the Federal Reserve System and its the marketing of certificates of deposit or deposit insurance for unsafe or unsound over transfers of bank stock. I share your practices. It also may remove an officer or concern, however, over the potentialities for director of a State member bank for con- trouble in these areas. The Federal Reserve tinued violation of law or continued unsafe System stands ready to cooperate with your or unsound practices. These are drastic Committee and with the other bank superremedies and under the law can be invoked visory agencies in making sure that adequate only by following carefully prescribed pro- safeguards are maintained to protect the cedural safeguards. It best serves the public public against unsound banking practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Presidents, Vice Presidents, and General Auditors of Reserve Banks Federal Reserve President Vice]Presidents and General Auditors Bank or branch First Vice President Boston George H. Ellis D. Harry Angney Luther M. Hoyle ,Jr. G. Gordon Watts E. O. Latham Ansgar R. Berge Oscar A. Schlaikjer Parker B. Willis R. W. Eisenmenger Charles E. Turner Stanley B. Lacks 1 New York Alfred Hayes Harold A. Bilby Marcus A. Harris Robert W. Stone William F. Treiber John J. Clarke Alan R. Holmes Thomas O. Waage Charles A. Coombs Walter H. Rozell, Jr. John P. Jensen1 Howard D. Crosse Horace L. Sanford Buffalo InsleyB. Smith Philadelphia Karl R. Bopp Hugh Barrie David P. Eastburn James V. Vergari Robert N. Hilkert Joseph R. Campbell David C. Melnicoff Richard G. Wilgus Norman G. Dash Harry W. Roeder G. William Metzi Cleveland W. Braddock Hickman George E. Booth, Jr. Harry W. Huning Martin Morrison Edward A. Fink Roger R. Clouse Fred S. Kelly ElferB. Miller 1 Elmer F. Fricek Maurice Mann John J. Hoy Clifford G. Miller Cincinnati Fred<3. Kiel Pittsburgh ClydeE. Harrell Richmond Edward A. Wayne Robert P. Black Upton S. Martin Benjamin U. Ratchford Aubrey N. Heflin J. G. Dickerson, Jr. John L. Nosker R. E. Sanders, Jr. W. S. Farmer J. M. Nowlan G. Harold Snead* Baltimore D. F. Hagner Charlotte E. F. MacDonald Atlanta Malcolm Bryan Harry Brandt L. B. Raisty DeWitt Adams 1 Harold T. Patterson J. E. McCorvey R. M. Stephenson Brown R. Rawlings Charles T. Taylor Birmingham E. C.Rainey Jacksonville T. A.Lanford Nashville R. E. Moody, Jr. New Orleans M. L.Shaw Chicago C. J. Scanlon Ernest T. Baughman C. T. Laibly Harry S. Schultz Hugh J. Helmer A. M. Gustavson Richard A. Moffatt Bruce L. Smyth Paul C. Hodge H. J. Newman John J. Endres * L. H. Jones Leland M. Ross Detroit R. A.Swaney St. Louis Harry A. Shuford Marvin L. Bennett Howard H. Weigel George W. Hirshman1 Darryl R. Francis Homer Jones Joseph C. Wotawa Dale M. Lewis Orville O. Wyrick Little Rock Fred.Burton Louisville Donald L. Henry Memphis E. Francis DeVos Minneapolis (Vacancy) Kyle K. Fossum C. W. Groth Ralph J. Dreitzleri M. H. Strothman, Jr. John J. Gillette M. B. Holmgren R. K. Grobel Franklin L. Parsons Helena Clement A. Van Nice 1 Denotes General Auditor. 411 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN • MARCH 1965 Federal Reserve President Vice Presidents and General Auditors Bank or branch First Vice President Kansas City. George H. Clay W. T. Billington Carl F. Griswold, Jr. Clarence W. Tow Henry O. Koppang John T. Boysen Marvin L. Mothersead William F. Fairleyl Raymond J. Doll George D. Royer, Jr. J. R. Euans R. E. Thomas Denver John W. Snider Oklahoma City H. W. Pritz Omaha George C. Rankin Dallas... Watrous H. Irons Roy E. Bohne G. R. Murff W. M. Pritchett Philip E. Cold well James L. Cauthen James A. Parker Thomas R. Sullivan Ralph T. Green T. W. Plant Arthur H. Lang1 El Paso Frederic W. Reed Houston J. L. Cook San Antonio Carl H. Moore San Francisco.... Eliot J. Swan J. L. Barbonchielli E. H. Galvin George D. Hartlin1 H. E. Hemmings P. W. Cavan A. B. Merritt Los Angeles C. H. Watkins D. M. Davenport Portland W. M. Brown Salt Lake City A. L. Price Seattle E. R. Barglebaugh i Denotes General Auditor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Gold Reserve Requirements greater rate of interest on deposits than that paid to other depositors on similar deposits with the branch. The Act of Congress, approved March 3, 1965 Sale of Bank's Money Orders off Premises (Public Law 89-3), eliminated the requirement as Establishment of Branch Office contained in section 16 of the Federal Reserve The Board of Governors has been asked to con- Act for the maintenance of reserves in gold certifisider whether the appointment by a State member cates of not less than 25 per centum against Fedbank of an agent to sell the bank's money orders, eral Reserve Bank deposit liabilities. The text of at a location other than the premises of the bank, the Act is as follows: constitutes the establishment of a branch office. AN ACT Section 5155 of the Revised Statutes (12 U.S.C. 36), which is also applicable to State member To eliminate the requirement that Federal Reserve banks maintain certain reserves in gold certificates banks, defines the term "branch" as including "any against deposit liabilities. branch bank, branch office, branch agency, addi- Be it enacted by the Senate and House of Repre- tional office, or any branch place of business ... at sentatives of the United States of America in Congress assembled, That the first sentence of the third para- which deposits are received, or checks paid, or graph of section 16 of the Federal Reserve Act, as money lent." The basic question is whether the amended (12 U.S.C. 413), is further amended by sale of a bank's money orders by an agent amounts striking out "reserves in gold certificates of not less than 25 per centum against its deposits and". to the receipt of "deposits" at a "branch place of SEC. 2. The eighteenth paragraph of section 16 of business" within the meaning of this statute. the Federal Reserve Act, as amended (12 U.S.C. Money orders are classified as deposits for cer- 467), is further amended by substituting a period for tain purposes. However, they bear a strong rethe comma after the word "notes" and striking out the remainder of the paragraph. semblance to traveler's checks that are issued by Approved March 3, 1965. banks and sold off premises. In both cases, the purchaser does not intend to establish a deposit Interest on Deposits of Officers account in the bank, although a liability on the or Employees of Foreign Branches bank's part is created. Even though they result in The Board of Governors, effective March 1, a deposit liability, the Board is of the opinion that 1965, has amended section 213.4 of Regulation the issuance of a bank's money orders by an au- M, entitled Foreign Branches of National Banks, thorized agent does not involve the receipt of deby adding a new paragraph (g). The pur- posits at a "branch place of business" and pose of this amendment is to permit overseas accordingly does not require the Board's permisbranches of member banks to pay higher rates sion to establish a branch. of interest on deposits of their officers and em- Banks engaging in this practice should, of ployees than on deposits of other customers where course, exercise the utmost discretion in choosing it is usual to do so in connection with the business agents to sell the bank's money orders. It has been of banking in the places where the branches are suggested that the agents be bonded, their authority located. The text of the amendment reads as be limited, and proceeds of the sales be remitted follows: daily. Also the bank's blanket bond might be amended to provide protection if the present pro- AMENDMENT TO REGULATION M visions are inadequate. (12 CFR PART 213) Effective March 1, 1965, section 213.4 is Loans by Mail on Security of amended by adding the following paragraph Mutual Fund Shares thereto: The Board of Governors has been asked whether (g) Pay to any officer or employee of the branch a a bank can accept in good faith, within the mean- 413 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN • MARCH 1965 ing of section 221.3(a) of the Board's Regulation loan and the borrower and must have no information which would put a prudent man upon inquiry and if U, "nonpurpose" statements submitted by mail in investigated with reasonable deligence would lead to connection with a widely-publicized plan under the discovery of the falsity of the statement." which the bank offers to make installment loans up The bank's manual of instructions to its emto 70 per cent of the redemption value of shares of ployees with respect to this plan indicates preopen-end investment companies ("mutual funds") cautions which are to be taken in attempting to that are pledged by the borrower as collateral. A ensure that the statement can be accepted in good customer may either go personally to one of the faith. For example, if a check is to be mailed to bank's offices, or mail in a loan application. The the borrower in care of a broker or dealer, a problem before the Board does not arise unless he purpose statement may be required from the chooses to apply by mail. latter. Delivery to the bank as collateral of a Under the plan submitted, the borrower com- certificate dated shortly before the loan applicapletes the following statement on the application tion would indicate the need for further inquiry. form: Repeated loan applications with certificates dated "I/We state that this loan is for the following pur- subsequent to prior loans would also suggest the pose (describe briefly): possibility of a violation. and that Although these precautions are useful and it is not for the purpose of purchasing or carrying mutual fund shares or any securities registered on a demonstrate the effort the bank has made to bring national securities exchange." the plan into conformity with the regulation, the Regulation U, of course, limits the amount a bank Board does not believe it would be feasible, under may lend against collateral consisting of stock, the circumstances described, for the circumstances where the loan is "directly or indirectly" for the surrounding each loan to be sufficiently known to purpose of purchasing or carrying stocks registered the loan officer so that the officer could become on a national securities exchange (so-called "pur- aware of circumstances that might indicate a need pose loan"), and places upon the bank the re- for further investigation. While no precautions sponsibility for taking appropriate action to can completely eliminate error or evasion, the determine the actual purpose of a proposed loan. Board believes there is no satisfactory substitute for a face-to-face meeting between borrower and Mutual fund shares are "stock" for purposes of lending officer in developing information as to the Regulation U, and under section 221.3(b) (2) purpose of a loan. The regulation makes the shares issued by many such funds are deemed to officer responsible for determining the purpose of be registered stocks. Consequently, the loans are a loan, and it is difficult to see how he can dissecured by stock, and are purpose loans if they are charge this responsibility, particularly when for the purpose of purchasing such mutual fund numerous loans are made on a uniform basis, withshares (or other registered stocks). At present, a out an opportunity to question the customer. In bank may lend no more than 30 per cent of the addition, a customer relationship, or the possicurrent market value of stock collateral if the loan bility that such a relationship may arise in the is a purpose loan, so that the regulation would forfuture, tends to put both customer and loan officer bid the making of a loan under the plan if, despite on a more realistic footing in respect to Regulathe borrower's statement to the contrary, the bank tion U. should have known that it was really a purpose loan. While it is true that not all stock-secured loans Section 221.3(a) of Regulation U permits a involve personal interviews between borrowers bank to rely on a statement by the borrower as to and loan officers, or a customer relationship, these the purpose of a loan do obtain in the normal case. Loans made by mail under the plan put into operation by the bank ". . . only if such statement (1) is signed by the borrower; (2) is accepted in good faith and signed would tend to create a new class of stock-secured by an officer of the bank as having been so accepted; loan, to be made in relatively small amount for each loan, and potentially made in large numbers, and the regulation explains that so that the absence of these safeguards would be especially likely to result in the making of "pur- ". . . to accept the statement in good faith, the officer must be alert to the circumstances surrounding the pose" loans that exceeded the permissible amount. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 415 Accordingly, the Board does not believe that a Governors with respect to applications for appuropse statement submitted by mail in connec- proval of the merger of banks: tion with a plan of this kind can satisfy the requirements of section 221.3(a). UNITED CALIFORNIA BANK, Another problem that may arise under the plan remains to be discussed. In 1962 Federal Reserve LOS ANGELES, CALIFORNIA BULLETIN 690, the Board held that certain loans to In the matter of the application of United Calibe made by a bank against stock of American fornia Bank for approval of merger with Bank Telephone and Telegraph Company, although earof Mt. Shasta. marked for "living expenses", must be considered to be purpose loans where the borrower was simultaneously purchasing additional shares under an ORDER APPROVING MERGER OF BANKS employee stock purchase plan, and the loans were to be geared to the amount of the monthly install- There has come before the Board of Governors, ment payment required. The Board pointed out pursuant to the Bank Merger Act of 1960 (12 that payroll deductions to finance purchases under U.S.C. 1828(c)), an application by United Calithe plan could be as high as 38 per cent of base fornia Bank, Los Angeles, California, a State mempay, and a larger percentage of "take-home pay", ber bank of the Federal Reserve System, for the and that deductions of this magnitude are in excess Board's prior approval of the merger of that bank of the savings rate of many employees. and Bank of Mt. Shasta, Mount Shasta, California, It may be asked whether this interpretation ap- under the charter and title of United California plies to loans made by the bank under the present Bank. As an incident to the merger, the only plan, if the borrower is simultaneously purchas- office of Bank of Mt. Shasta would become a ing mutual fund shares under a periodic purchase branch of the resulting bank. Notice of the proplan, regardless of the use he may make of actual posed merger, in form approved by the Board, has proceeds of the loan. The Board believes that the been published pursuant to said Act. principle of the 1962 interpretation would apply Upon consideration of all relevant material in where a purchaser is obviously buying more stock the light of the factors set forth in said Act, inthan he can carry out of current income, or where cluding reports furnished by the Comptroller of loan disbursements are geared to payments under the Currency, the Federal Deposit Insurance such a purchase plan, and that in such cases, the Corporation, and the Department of Justice on the lending bank should treat the loan as a regulated competitive factors involved in the proposed loan. merger. Since information normally obtained by lending officers would reveal whether the borrower was IT IS HEREBY ORDERED, for the reasons set forth in the Board's Statement of this date, that said purchasing stock under such a plan, and whether application be and hereby is approved, provided the purchases were disproportionate to the that said merger shall not be consummated (a) borrower's income and other expenditures, it within seven calendar days after the date of this should not be difficult for the officer to make a Order or (b) later than three months after said judgment on this point. The existence of this date. question, however, provides an additional reason why a presonal interview is advisable in the case Dated at Washington, D.C., this 12th day of February, 1965. of a loan against mutual fund shares, if the bank is to make a reliable determination as to whether By order of the Board of Governors. or not the loan is a purpose loan and subject to the Voting for this action: Chairman Martin, and Govregulation. ernors Mills, Robertson, Mitchell, and Daane. Absent and not voting: Governors Balderston and Shepardson. Orders Under Bank Merger Act (Signed) MERRITT SHERMAN, The following Orders and Statements were Secretary. issued in connection with action by the Board of [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN • MARCH 1965 STATEMENT stockholder, the president dominates the bank, but he is frequently opposed by a director who is the United California Bank, Los Angeles, California second largest stockholder. The bank's restrictive ("United California"), with total deposits of about lending policies have created widespread resent- $2.6 billion, has applied, pursuant to the Bank ment and dissatisfaction on the part of the local Merger Act of 1960 (12 U.S.C. 1828(c)), for the business community. The fact of control, the type Board's prior approval of the merger of that bank of control, and the lack of harmony indicate that and Bank of Mt. Shasta, Mount Shasta, California Mt. Shasta Bank would have considerable difficulty ("Mt. Shasta Bank"), with total deposits of about in recruiting and retaining capable officers. Effect- $4 million.1 The banks would merge under the uation of the proposed transaction would solve charter and name of United California, a State these problems at Mt. Shasta Bank. member bank of the Federal Reserve System. As There is no indication that the corporate powers an incident to the merger, United California would of the banks involved are, or would be, inconsistent establish a branch at the present location of Mt. with 12 U.S.C, Ch. 16. Shasta Bank, increasing to 175 the number of Convenience and needs of the communities. offices operated by United California. United California, the fifth largest bank in Cali- Under the Act, the Board is required to confornia in terms of deposits, has offices in 34 sider, as to each of the banks involved, (1) its counties. Consummation of the merger would have financial history and condition, (2) the adequacy no appreciable effect on the convenience and needs of its capital structure, (3) its future earnings of the communities now served by United prospects, (4) the general character of its manage- California. ment, (5) whether its corporate powers are con- The town of Mount Shasta is located in Siskisistent with the purposes of 12 U.S.C, Ch. 16 you County, about 300 miles north of San Fran- (the Federal Deposit Insurance Act), (6) the cisco. The population of the county is estimated to convenience and needs of the community to be be somewhat over 34,000. Mount Shasta has a served, and (7) the effect of the transaction on population of about 2,500, with an additional competition (including any tendency toward monopoly). The Board may not approve the 1,500 persons in the immediate surroundings. The transaction unless, after considering all these economy of the area is based primarily on lumberfactors, it finds the transaction to be in the public ing, although there is a limited amount of dairying interest. and livestock raising. The town also attracts a large segment of the year-round tourist trade, Banking factors. United California (a subsidiary of Western Bancorporation, Los Angeles, Cali- which has increased in recent years and is exfornia, a registered bank holding company) and pected to continue. Mt. Shasta Bank have satisfactory financial his- Mt. Shasta Bank, as indicated above, has foltories. The asset condition of United California is lowed restrictive policies. Ninety per cent of its satisfactory, its capital structure is reasonably investment account consists of United States Govadequate, and its future earnings prospects are ernment obligations, which comprise 47 per cent of satisfactory. These attributes would be true also of the bank's total assets. About 35 per cent of the the resulting bank, which would be under the bank's total assets are in loans, and 85 per cent competent management of United California. of these are conventional real estate loans. Com- Mt. Shasta Bank's asset condition and capital mercial and industrial loans make up only three structure are satisfactory, and its future earnings per cent of the total. The bank makes no FHA or prospects are favorable. The bank, however, has VA loans, nor does it engage in floor-plan lending had serious difficulty in retaining persons qualified for automobile or consumer-goods dealers, or in to supervise its operations. This difficulty is not construction financing for industrial and residential likely to diminish. The bank follows the ultracon- developers. In the last four years, total loans at servative policies of its president, a man well past Mt. Shasta Bank have increased by less than one normal retirement age. Because he is the majority per cent, while the other three banking offices in the area have shown growth in total loans of 48 1 Deposit figures are as of June 30, 1964. per cent, 62 per cent, and 77 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 417 In addition to Mt. Shasta Bank, the area is KINGSTON TRUST COMPANY, served by two branches of Bank of America Na- KINGSTON, NEW YORK tional Trust & Savings Association, one located at Dunsmuir, 9 miles south of Mount Shasta, and In the matter of the application of Kingston the other at McCloud, 12 miles southeast of Trust Company for approval of merger with The Mount Shasta, and by a branch of United Cali- First National Bank of Marlboro. fornia located at Weed, 10 miles north of Mount Shasta. While a full range of banking services is ORDER APPROVING MERGER OF BANKS available at these locations, consummation of the There has come before the Board of Governors, proposal would provide such services in the town pursuant to the Bank Merger Act of 1960 (12 of Mount Shasta. U.S.C. 1828(c)), an application by Kingston Trust Competition. The service area 2 of Mt. Shasta Company, Kingston, New York, a State member Bank and that of the Weed office of United Calibank of The Federal Reserve System, for the fornia overlap to a small degree, and such competi- Board's prior approval of the merger of that bank tion as exists between them would be eliminated and The First National Bank of Marlboro, Marlby the proposed merger. At the same time, Bank boro, New York, under the charter and title of of America, the only other bank that would be Kingston Trust Company. As an incident to the affected, for the first time would have a strong merger, the sole office of the First National Bank competitor at Mount Shasta, which is showing of Marlboro would become a branch of the resteady growth and is becoming the center of trade sulting bank. Notice of the proposed merger, in for surrounding communities. form approved by the Board, has been published If effected, the proposal would result in an inpursuant to said Act. crease in the concentration of California's banking Upon consideration of all relevant material in resources in a few large banks. United California's the light of the factors set forth in said Act, inposition, however, would remain relatively uncluding reports furnished by the Comptroller of changed, since Mt. Shasta Bank's deposits reprethe Currency, the Federal Deposit Insurance sent only a minimal amount of the total deposits Corporation, and the Department of Justice on in the State. the competitive factors involved in the proposed Summary and conclusion. The merger of United merger, California and Mt. Shasta Bank would result in IT IS HEREBY ORDERED, for the reasons set forth the elimination of some present and potential in the Board's Statement of this date, that said competition between the two banks, and would application be and hereby is approved, provided increase banking concentration in the State, althat said merger shall not be consummated (a) though minutely. However, there would be subwithin seven calendar days after the date of this stituted in Mount Shasta a bank offering full bank- Order or (b) later than three months after said ing services for the ultraconservative Mt. Shasta date. Bank, which has not served the needs of the Dated at Washington, DC, this 24th day of Mount Shasta community in accordance with the February, 1965. bank's capability. Consummation of the proposal By order of the Board of Governors. also would solve the serious difficulty of Mt. Voting for this action: Chairman Martin, and Gov- Shasta Bank in retaining qualified officers. These ernors Balderston, Robertson, Shepardson, and positive benefits to the public in the growing Mitchell. Absent and not voting: Governors Mills Mount Shasta area would more than offset any and Daane. (Signed) MERRITT SHERMAN, adverse effects of the transaction. Secretary. Accordingly, the Board finds the proposed mer- [SEAL] ger to be in the public interest. STATEMENT 3 The area from which a bank derives 75 per cent Kingston Trust Company, Kingston, New York or more of its deposits of individuals, partnerships, ("Kingston Trust"), with total deposits of about and corporations. $24 million, has applied, pursuant to the Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN • MARCH 1965 Merger Act of 1960 (12 U.S.C. 1828(c)), for the adequately capitalized, and its future earnings Board's prior approval of the merger of that bank prospects would be favorable. and The First National Bank of Marlboro, Marl- There is no indication that the corporate powers boro, New York ("First National"), with total de- of the banks involved are, or would be, inconsistent posits of about $4 million.1 The banks would merge with 12 U.S.C, Ch. 16. under the charter and name of Kingston Trust, a Convenience and needs of the communities. The State member bank of the Federal Reserve System. city of Kingston, with a population of approxi- As an incident to the merger, Kingston Trust mately 30,000, is situated on the west bank of the would establish a branch at the present location Hudson River about 50 miles south of Albany. of First National, increasing to four the number Kingston is the seat of Ulster County and has a of offices operated by Kingston Trust. trade area with a population of some 75,000. Under the Act, the Board is required to con- Consummation of the merger would have no apsider, as to each of the banks involved, (1) its preciable effect on the convenience and needs of financial history and condition, (2) the adequacy the communities now served by Kingston Trust. of its capital structure, (3) its future earnings pros- Marlboro, having a population of over 1,700, is pects, (4) the general character of its manage- located about 25 miles south of Kingston and 8 ment, (5) whether its corporate powers are miles north of the city of Newburgh. The populaconsistent with the purposes of 12 U.S.C, Ch. 16 tion of the service area2 of First National, the only (the Federal Deposit Insurance Act), (6) the financial institution in Marlboro, is estimated at convenience and needs of the community to be 9,400 persons. The economy of this area is based served, and (7) the effect of the transaction on primarily on large-scale fruit farming. Seasonal competition (including any tendency toward credit requirements for these operations greatly monopoly). The Board may not approve the trans- exceed the $29,000 lending limit of First National, action unless, after considering all these factors, which, in the past, as a matter of policy, has it finds the transaction to be in the public interest. limited loans to any one borrower to not more Banking factors. Kingston Trust and First Na- than $20,000. Local borrowers have been obliged tional have satisfactory financial histories. The to satisfy their larger credit requirements from asset condition of Kingston Trust is fair and that banks outside the community. The resulting bank, of First National is satisfactory. Each bank has an with a lending limit of $279,000, would be in a adequate capital structure. The earnings of Kings- position to meet these credit needs, and, in additon Trust are satisfactory and its future earnings tion, it would provide a number of services not prospects are favorable. The net earnings of First available in Marlboro, including FHA and VA National have been below the average for banks insured mortgage loans, modernization loans, and of similar size and its future earnings prospects are trust services. fair. Competition. The nearest offices of Kingston During the past year, management of Kingston Trust and First National are about 25 miles apart, Trust has been strengthened, and it is expected and offices of three other banks are located in the that the affairs of the bank will be directed capably intervening area. The service areas of Kingston by its present full-time executive officer. The addi- Trust and First National do not overlap, and tion to the bank's staff of an experienced credit there is no significant competition between the officer would further improve the management of two banks. Although the proposed merger would the bank. The management of First National is increase the size of Kingston Trust from the second in the hands of its president, a man of advanced largest to the largest commercial bank in Kingston, the resulting bank would rank third in total years, who has operated the bank under restrictive deposits among the eight commercial banks operatpolicies. ing in its service area. Consummation of the mer- Management of the resulting bank would be ger would enable the resulting bank to offer that of Kingston Trust. The asset condition of the resulting bank would be fair, the bank would be 2 That area from which a bank derives 75 per cent or more of its deposits of individuals, partnerships, 1 Deposit figures are as of June 30, 1964. and corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 419 stronger competition to larger banks with offices of the receipt of the application and requested his located eight miles south of Marlboro in New- views and recommendation. The Acting Compburgh; and it is not anticipated that there would troller replied favorably. Notice of receipt of the be any adverse competitive effects on any bank in application was published in the Federal Register the service area of the resulting bank. on October 29, 1964 (29 F.R. 14763), which Summary and conclusion. No significant compe- provided an opportunity for submission of comtition would be eliminated by the proposed merger, ments and views regarding the proposed transwhile banking competition in the Marlboro area action. Time for filing has expired and all comshould be stimulated without any adverse effect on ments and views filed have been considered by the the other banks. Bank customers in this area would Board. have ready access to a bank with sufficient re- IT IS ORDERED, for the reasons set forth in the sources to meet most of the credit demands that Board's Statement of this date, that said applicapresently are not being satisfied locally, and would tion be and hereby is approved, provided that the be provided with a broader range of banking acquisition so approved shall not be consummated services than are now available in Marlboro. (a) within seven calendar days after the date of Accordingly, the Board finds the proposed mer- this Order or (b) later than three months after ger to be in the public interest. said date. Dated at Washington, D.C., this 25th day of Order Under Section 3 of the February, 1965. Bank Holding Company Act By order of the Board of Governors. The Board of Governors issued the following Voting for this action: Chairman Martin, and Gov- Order and Statement in connection with action on ernors Balderston, Mills, and Mitchell. Voting against this action: Governors Robertson, Shepardson, and an application for permission to become a bank Daane. holding company: (Signed) MERRITT SHERMAN, Secretary FIRST NATIONAL CORPORATION, APPLETON, WISCONSIN [SEAL] In the matter of the application of First National STATEMENT Corporation, Apple ton, Wisconsin for permission to become a bank holding company through ac- An application has been filed on behalf of quisition of stock of First National Bank of Apple- First National Corporation, Appleton, Wisconsin, ton, and Valley National Bank, a proposed new a proposed Wisconsin corporation ("Applicant"), bank, both of Appleton, Wisconsin. pursuant to section 3(a)(l) of the Bank Holding Company Act of 1956 ("the Act"), requesting ORDER APPROVING APPLICATION UNDER prior approval of action whereby Applicant would BANK HOLDING COMPANY ACT become a bank holding company within the mean- There has come before the Board of Governors, ing of the Act through the acquisition of 80 per pursuant to section 3(a)(l) of the Bank Holding cent or more of the voting shares of the First Company Act of 1956 (12 U.S.C. 1842(a)(l)) National Bank of Appleton ("First National") and section 222.4(a) (1) of Federal Reserve Regu- and Valley National Bank ("Valley National"), lation Y (12 CFR 222.4(a)(l)), an application a proposed new bank, both of Appleton, Wisconon behalf of First National Corporation, a pro- sin. posed Wisconsin corporation, for the Board's ap- Views of supervisory authorities. As required by proval of action whereby Applicant would become section 3(b) of the Act, notice of receipt of the a bank holding company through the acquisition application was given to, and views and recomof 80 per cent or more of the voting shares of the mendation requested of, the Comptroller of the First National Bank of Appleton and the Valley Currency. In response to this request, the Acting National Bank, a proposed new bank, both of Comptroller of the Currency, noting that the Appleton, Wisconsin. Comptroller's office had given preliminary ap- As required by section 3(b) of the Act, the proval to the chartering of Valley National for Board notified the Comptroller of the Currency the reason that a need existed for a local bank to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 FEDERAL RESERVE BULLETIN • MARCH 1965 serve the residents and small businesses of the of $5.2 million after three years of operation. bank's proposed trade area, concluded that Valley The Board finds the basis for this projection to be National "will be better able to serve the needs reasonable and concludes that Valley National's of the community" as a subsidiary of the proposed proposed financial structure would be satisfactory. bank holding company. Although not required to Since Applicant's principal asset will be its indo so by the provisions of the Act, the Board also vestment in the proposed subsidiary banks, its prosnotified the Commissioner of Banks for the State pects will depend principally upon the prospects of Wisconsin of the receipt of this application. The of these subsidiaries. On the basis of the Board's Commissioner, while expressing the conclusion earlier findings regarding the satisfactory financial that further expansion of bank holding companies history and condition of First National and the in Wisconsin should be restricted, stated "I do not likely sound condition of Valley National, and feel that the current proposal will in any way be absent evidence in the record otherwise suggesting detrimental to the public interest or to the interest unfavorable prospects, it is concluded that the of other banks in the City of Applet on." prospects of both banks are favorable. This con- Statutory factors. Section 3(c) of the Act re- clusion and the fact that First National's officers quires the Board to take into consideration the and directors will principally direct the operations following five factors: (1) the financial history of Applicant warrant the conclusion that Appliand condition of the holding company and the cant's prospects for sound operation are satisbanks concerned; (2) their prospects; (3) the factory. character of their management; (4) the conven- Character of management. The management of ience, needs, and welfare of the communities and First National is experienced and capable. Since the area concerned; and (5) whether the effect Applicant proposes that First National's president of the proposed acquisition would be to expand and a vice president will serve, respectively, as the size or extent of the bank holding company president and secretary-treasurer of Applicant, and system involved beyond limits consistent with that the board of directors of both Applicant and adequate and sound banking, the public interest, Valley National will be composed of present and the preservation of competition in the field directors of First National, the Board concludes of banking. that considerations relating to character of man- Financial history and condition, and prospects agement of the institutions involved are consistent of Applicant and banks. Applicant has no financial with approval of the application. history. According to the application, Applicant's Convenience, needs, and welfare of communities formal organization will be held in abeyance pendand area concerned. Applicant and its proposed ing the Board's action on this application. Howsubsidiary banks are, or would be, located in or ever, on the basis of a pro forma balance sheet as near Appleton (1960 population of 48,500), the of June 30, 1964, submitted by Applicant, its procounty seat of Outagamie County, located on the posed financial condition is considered satisfactory. Fox River about 30 miles southwest of Green Bay First National was established in 1868, and has and 100 miles north and west of Milwaukee. operated under a national charter since 1870. At June 30, 1964,1 First National held deposits of Appleton is the central city in a group of seven communities extending east and west of Appleton $58 million. Its financial history and condition are in an eight-mile radius. These communities, which considered satisfactory. Although preliminary apform an economically integrated unit along the proval of the establishment of Valley National has Fox River, are referred to in common as the Fox been given by the Comptroller of the Currency, Applicant states that the Bank will be opened only Cities and are of a mixed industrial, commercial, if approvel of the application is given by the and residential character. The major industry in Board. Valley National, which is proposed to be the Fox Cities area is the manufacture of paper organized by directors of First National, will have and paper products. The area also contains industotal deposits, according to Applicant's projection, tries producing wood, metal, knitted, and dairy products. 1 Unless otherwise indicated, all data herein are as First National is located in the downtown busiof this date. ness district of Appleton, north of the Fox River. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 421 Its primary service area,2 with an estimated popu- services are proposed to be available regardless of lation of 25,000, encompasses the southernmost the outcome of this application. half of Appleton north of the Fox River and a Regarding the extent to which the banking small portion of an industrial district immediately needs of Valley National's primary service area south of the River, and generally partakes of the are being served, the Board has given appropriate mixed industrial, commercial, and residential weight to the conclusion reached by the Compcharacter common to the greater Fox Cities area. troller of the Currency in approving Valley Notwithstanding the primary service area desig- National's organization, that the chartering of nated for First National, it is clear that this bank, Valley National would fulfill "a local need for a the largest in the Fox Cities area, draws customers commercial bank serving the residents and small from, and serves generally, the communities businesses of that area." No banking office is making up the Fox Cities complex. presently located in Valley National's designated The proposed site of Valley National is in the service area, and Applicant has stated that if this Valley Fair Shopping Center which is located at application is denied, Valley National will not be the northern edge of Winnebago County, adjoin- opened for business. There is no indication that ing Outagamie County, about IV2 miles south of any other interests are prepared to establish a bank downtown Appieton and three miles northeast of at or near Valley National's proposed site. downtown Menasha, The Shopping Center, which Although the residents and businesses within contains more than 30 commercial and profes- Valley National's primary service area, particusional establishments, is one of the largest shop- larly the occupants of the Shopping Center, now ping facilities in the Fox Cities area, and is located have access to the downtown Appleton banks, as on Wisconsin Route 47 connecting Appleton and well as to other of the Fox Cities banks, it would Menasha. Valley National's designated primary appear that, in general, the convenience of the service area contains an estimated population of aforementioned area residents will be measurably 18,000 and encompasses the southernmost cor- better served by Valley National's location in the porate limits of Appleton and an area further Shopping Center. In the Board's judgment, this south of the Fox River including the northeastern greater convenience in access to a source of bankportion of the city of Menasha. The area to be ing service is a result weighing toward approval served by Valley National, while predominantly of Applicant's proposal unless it is found also to residential, also contains agricultural, commercial, involve other effects significantly detrimental to and industrial establishments. the public interest. As designated by the Applicant, the primary Effect of proposed acquisition on adequate and service areas of the two banks, while contiguous, sound banking, public interest, and banking comwould not overlap. However, as in the case of petition. The market area most directly to be First National, Valley National can be expected affected by consummation of Applicant's proposal to serve portions of the Fox Cities area beyond is the Fox Cities area and, more particularly its primary service area. therein, the primary service areas of Applicant's On the basis of the evidence presented, the two proposed subsidiary banks. The latter areas Board finds that the demands for major banking are hereinafter treated both individually and, for services arising within First National's primary certain purposes, because of their geographical service area are presently being met by First contiguity, as a single market area ("the combined National and the two other commercial banks service area"). located therein. Applicant states that no significant At the present time there are three banks change will occur in the services now rendered by located in First National's primary service area First National should Applicant's proposal be con- and in the combined service area. First National, summated. It is stated that First National will with total deposits of $58 million, is the largest of soon offer trust services to its customers, but these the three banks located in both areas and holds 57 per cent of the aggregate deposits therein. Appleton State Bank, a subsidiary of Valley Ban- - The area from which Applicant estimates 76 per cent of the bank's deposits of individuals, partnerships, corporation, a registered bank holding company, and corporations originate. is second in size to First National; its total deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN • MARCH 1965 of $31 million represent 31 per cent of the aggre- remaining competitors in the Fox Cities area, have gate deposits of the three banks in both areas. evidenced sound growth and development. In sum, Consummation of Applicant's proposal will not there is no evidence of an existing undue competichange the present concentration of deposits in tive imbalance in the combined service area, nor First National's primary service area, nor, to a is there an indication of such imbalance if Appliperceptible degree, that in the combined service cant's proposal is consummated. It is noted that area. In the latter area, assuming operation of the Commissioner of Banks for the State of Valley National with its estimated $5.2 million of Wisconsin apparently reached a similar conclusion, deposits after three years, three of the four banks as reflected in his views set forth above. therein would be bank holding company sub- This application does not involve the eliminasidiaries, holding 89 per cent of the deposits of tion of any present competition between existing all banks in the area, an increase of less than 1 per subsidiaries of Applicant. Further, no significant cent in the aggregate deposits now held by First problem of elimination of potential competition National and Appleton State Bank. is presented inasmuch as (1) First National com- In the Fox Cities area, 3 of the 12 banks located petes to but an insignificant extent in the protherein are subsidiaries of bank holding com- posed primary service area of Valley National, panies. The combined deposits held by the three and (2) if Applicant's proposal is denied, Valley banks ($54 million) represent 28 per cent of the National will not be opened for business as a aggregate deposits of banks in the Fox Cities area. potential competitor of First National. Applicant's ownership of First National and Regarding the probable impact of Applicant's Valley National would increase to five the number acquisition of First National and Valley National of holding company banks in the Fox Cities area, on banks located or competing in the areas now and to 60 the percentage of total deposits con- served or to be served by Applicant's proposed trolled by holding company subsidiaries. subsidiaries, there is no reason to believe that the In previous cases the Board has evidenced its present vigor of competition will be significantly concern regarding proposals that, if consummated, changed. Inasmuch as Valley National would be would result in deposit concentrations in a few newly organized and would, in the immediate institutions of the proportion reflected by the fore- future, serve principally the Valley Fair Shopping going data, with the likelihood that such concen- Center and environs, where no bank is presently tration of control would adversely affect the com- located, it may be reasonably concluded that petitive abilities of remaining smaller banks. At Valley National's establishment and operation will the outset, similar concern appears warranted in not perceptibly affect the competitive abilities of the present case. However, when the data pre- existing banks. Nor is there reason to conclude sented are viewed in the context of the circum- that the banks which now compete with First stances surrounding the present banking struc- National will find their positions as competitors tures in the areas involved and Applicant's significantly altered following Applicant's acquisiproposal, it is the Board's opinion that consum- tion of First National. As earlier stated, Applicant mation of Applicant's plan will have no percep- proposes no change in the nature or scope of tible adverse impact on the vigor of banking service now offered by First National. This fact, competition. and the further fact that the size of Applicant's First National and Valley National will com- system will reflect the present size of First prise Applicant's system as proposad. In combina- National, make clear that Applicant's ownership tion, their present and proposed size and extent of First National will not give that bank a signifiof operations reflect the size and extent of Appli- cantly greater competitive edge than it now may cant's system as proposed. The record before the have. The Board concludes that the foregoing Board does not indicate that the size advantage facts are consistent with approval of Applicant's which First National holds in the three areas proposal. hereinbefore discussed has been inimical to the A final fact that affirmatively supports approval proven vigor of banking competition. First action is that the proposal does not involve the National's two competitors in its primary service elimination of any existing bank. Rather, consumarea and the combined service area, as well as its mation of the plan will bring into existence a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 423 new bank which will offer the banking public in consistent with Congressional purpose as reflected the area concerned an additional source of bank- in the specified statutory factors which this Board ing services—a result wholly consistent with the must consider. However, to permit considerations public interest. of slightly greater convenience to outweigh the On the basis of all the relevant facts contained adverse competitive consequences which are in the record before the Board, and in the light of patently inherent in this proposal, is akin to exthe factors set forth in section 3 (c) of the Act, it posing a person suffering from a cold to circumis the Board's judgment that the proposed acquisi- stances calculated to produce pneumonia because tion would be consistent with the public interest in the process the cold will be cured. The interand that the application should be approved. vening benefit achieved is, of course, totally disproportionate to the ultimate threat to which the DISSENTING STATEMENT OF patient has been exposed. GOVERNOR ROBERTSON Thus, here, to permit First National's use of The most clearly discernible results of the the holding company device to extend its opera- Board's action in approving this application are tion across the Fox River when, under existing to enable First National Bank of Appleton, law, the establishment of a branch in the same through use of the holding company device, to area is prohibited, and simultaneously to thus circumvent restrictions imposed by State law on further strengthen First National's dominant expansion through branch establishments, and to position in the Appleton area, are results substanenable First National, by far the largest of the tially outweighing the limited benefits that may banks in Appleton and in the Fox Cities area, to be anticipated from this proposal. Accordingly, further enhance its now dominant position. These the application should be denied. anti-competitive consequences will occur without any significant countervailing benefit to the public. DISSENTING STATEMENT OF On previous occasions I have stated it to be my GOVERNOR DAANE understanding that one of the basic underlying I concur in the two principal points made in purposes of the Bank Holding Company Act is to Governor Robertson's dissent, namely, that prevent undue concentration of banking resources approval does enable First National of Appleton in a holding company. This statement of purpose to use the holding company device as a means of requires, in my opinion, that in a case such as this, circumventing State law with resultant increase where the bank involved is by far the dominant in concentration of the area's banking resources— institution in the market area concerned, no a concentration already of a proportion that is of approval be given that would perpetuate or concern to the Board—and that approval action enhance such dominance, unless there exist sub- under these circumstances should not be given stantially favorable factors that clearly outweigh merely upon the promise of slightly greater conthe probable anti-competitive consequences. venience to the public and in the absence of evi- Applicant makes no case for existing unserved dence of unserved needs for banking services. needs for banking service that would be answered Specifically, in view of the dominant position by this proposal. Viewing the evidence of record which Applicant's banks will hold in the areas in a light most favorable to Applicant, the most concerned, I cannot agree with the Board majority that can be said is that consummation of this pro- that consummation of this proposal will have no posal will provide somewhat more convenient perceptible adverse impact on banking competibanking service to a segment of the Fox Cities tion. Nor am I persuaded by the evidence prearea. If the weight given to "greater convenience" sented that the convenience of area residents will in this case were assigned to this consideration in be "measurably better served" by the establishevery case before the Board, no application pre- ment of Valley National. sented should be denied. Admittedly, in a case The net effect of the Board's action will be to where proven, significant benefit, either to the enable slightly better service to a small segment public, or banking institutions involved, is not out- of the public involved, while exposing to subweighed by any probable anti-competitive result, stantial anti-competitive consequences, a far approval of the application is warranted as being larger segment of the public. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements RESIGNATION OF MR. MILLS AS A MEMBER OF THE available for use at each Federal Reserve Bank BOARD OF GOVERNORS and Branch, as well as at the Board's offices in Mr. Abbot L. Mills, Jr., who had been a member Washington. of the Board since February 18, 1952, resigned As previously announced, the original copies of effective March 1, 1965. A native of Portland, these minutes were transferred from the Board of Oregon, and active in the commercial banking Governors of the Federal Reserve System to the business in that area since 1920, Mr. Mills was custody of the Archivist of the United States in serving as the First Vice President of the United 1964. The National Archives is now in a position States National Bank of Portland at the time of to furnish complete microfilm copies (35 mm., 16 his appointment to the Board of Governors of the rolls) of these minutes at a charge of $55. Re- Federal Reserve System. quests for copies should be sent directly to that Mr. Mills' letter of resignation to the President agency, Eighth Street and Pennsylvania Avenue, follows: N.W.. Washington. D. C, 20408. January 4, 1965 ERRATUM IN JANUARY 1965 BULLETIN On page 43 of the January 1965 BULLETIN, Form My dear Mr. President: F-l, Item 9(a), Instruction 2, first line, of Regula- Having engaged in the field of banking for tion F should be changed to read as follows: nearly forty-five years, capped with the distinc- "2. The information is to be given on an accrual tion of thirteen years of service as a member of basis, if practicable. The tables required by this the Board of Governors of the Federal Reserve paragraph and paragraph (b) may be combined if the bank so desires." System, a proper time has come for me to retire. I am, therefore, submitting my resignation to you PUBLICATION OF ANNUAL REPORT and respectfully request that it be accepted, to The Fifty-First Annual Report of the Board of become effective March 1, 1965. Governors of the Federal Reserve System, cover- I am retiring with the pride and satisfaction ing operations of the calendar year 1964, is that I have had the honor of rendering public available for distribution. Copies may be obtained service during your Administration. upon request from the Board's Publications Serv- Respectfully yours. ices, Division of Administrative Services, Wash- A. L. Mills, Jr. ington, D.C. 20551. The President, The White House. ADMISSION OF STATE BANK TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM FEDERAL OPEN MARKET COMMITTEE MINUTES The following bank was admitted to membership In accordance with the announcement in the in the Federal Reserve System during the period August 1964 issue of the Federal Reserve BUL- February 16, to March 15, 1965: LETIN, the minutes of the Federal Open Market North Dakota Committee from the date of its organization in March 1936 to the end of the vear 1960 are now Jamestown . . Stutsman County State Bank 424 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication March 16 Industrial production and employment rose fur- of furniture, television sets, and many other conther in February and consumer income and buying sumer goods increased. The gain in production of increased. The unemployment rate also edged up. materials reflected mainly substantial increases in Loans and time and savings deposits at commercial parts for consumer durable goods and business banks continued to expand rapidly but the equipment. money supply declined. In late February and early CONSTRUCTION March, short-term interest rates showed little net The value of new construction put in place rose change while yields on some types of bonds in- 2 per cent in February to a new high, a seasonally creased slightly. adjusted annual rate of nearly $68 billion. Residential building, which had increased appreciably INDUSTRIAL PRODUCTION in December and January, according to revised Industrial production in February rose to 138.8 figures, also rose 2 per cent and industrial and per cent of the 1957-59 average from 138.1 per public activity advanced while most other catecent in January and remained 8 per cent above a gories changed little. year earlier. Output of consumer goods continued to increase despite a slight decline in autos. Indus- EMPLOYMENT trial and commercial machinery resumed their ad- Employment in nonfarm establishments rose vances, while trucks declined, and total business further in February. In manufacturing, gains were equipment was more than a tenth higher than a concentrated in durable goods, especially metalyear earlier. Output of materials expanded further using industries. Employment rose in most nonalthough operations in primary metals industries manufacturing lines; increases were large in transchanged little at near-capacity rates. portation, after settlement of the longshoremen's Auto assemblies fell 2 per cent from the record strike at major ports, and in retail trade. Average level in December and January as severe storms weekly hours and hourly earnings of production temporarily closed many plants. Assemblies in workers in manufacturing generally changed little. March are scheduled to rise to a new high. Output Reflecting mainly a rise in unemployment among adult women, the rate of unemployment increased INDUSTRIAL PRODUCTION to 5.0 per cent from 4.8 in January. 1957-59=100 DISTRIBUTION - TOTAL//^ - Retail sales—up fractionally in January, on the FINAL PRODUCTS^^^ basis of revised figures—rose slightly further in ^^ ^^MATERIALS February. Sales increased at most types of outlets for nondurable goods except general merchandise — v-/ _ \ 1 ! I 1 r r f T T stores. Dealer deliveries of new cars changed little from the record high rate reached in January but A f - sales of some other durable goods declined. EQUIPMENT/ S - NONDURABLE ^/» ~ MANUFACTURES'<J*^ COMMODITY PRICES /^CONSUMER ^v^Z/V' DURABLE — v^-* // GOODS _ The industrial commodity price index remained s^ / MANUFACTURES stable in February and early March at a level less ! f I ! \ ! ! ! ! ! than 1 per cent above that prevailing during the first nine months of 1964. Price increases have F. R. indexes, seasonally adjusted. Latest figures shown been announced for aluminum sheets and for for February. 425 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN • MARCH 1965 some paper and packaging products. However, rowings increased to over $400 million but excess some fuel oils have turned down, following in- reserves also rose somewhat. Reserves were supcreases last fall and early winter, and steel scrap plied by Federal Reserve purchases of U.S. Govhas declined. Wholesale prices of livestock and ernment securities and by a continued seasonal inother foodstuffs also have changed little. flow of currency; reserves were absorbed by decreases in the gold stock and float. BANK CREDIT, MONEY SUPPLY, AND RESERVES SECURITY MARKETS Seasonally adjusted commercial bank credit rose $2.4 billion in February, an increase somewhat Yields on corporate and municipal securities insmaller than in January but considerably larger creased moderately between mid-February and than the average monthly rise in 1964. Loans con- mid-March, after having declined somewhat earlier tinued to expand rapidly and holdings of municipal this year, while those on Treasury bonds remained securities and Federal agency issues also increased stable. Treasury bill rates showed little net change substantially further. Time and savings deposits at and in mid-March the rate on 3-month bills was commercial banks rose by a near-record amount, about 3.9 per cent. but the money supply declined. In active trading, common stock prices rose Seasonally adjusted total and required reserves somewhat on balance. In mid-March, average continued to rise. Free reserves declined to an prices were slightly below the record high set in average of $35 million, somewhat below the levels early February. of most other recent months. Member bank bor- INTEREST RATES PRICES ALL COMMODITIES I I I NONFOOD COMMODITIES PROCESSED FOODS V FARM PRODUCTS ^ Y 1963 1965 1963 1965 Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt. bonds maturing in 10 Bureau of Labor Statistics indexes. Latest figures shown for years or more and for 90-day Treasury bills. Latest figures consumer prices, January; for wholesale prices, February. shown, week ending Mar. 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation P Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area A Assets rp Revised preliminary L Liabilities i, II, S Sources of funds III, IV Quarters U Uses of funds n.a. Not available • Amounts insignificant in terms of the parn.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when S.A. Monthlv Tor auarterlvl the unit is millions) seasonal variation (1) Zero, (2) no figure to be expected, or (3) 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—Continued Issue Page Flow of funds. Jan. 1965 176-85 Banking and monetary statistics, 1964 Feb. 1965 326-33 Mar. 1965 490-91 Banks and branches, number of, by class and Semiannually State Apr. 1964 518-19 Banking offices: Analysis of changes in number of Feb. 1965 324 Flow of funds (assets and liabilities) Apr. 1964 517 On, and not on. Federal Reserve Par List numberof Feb. 1965 325 Income and expenses: Federal Reserve Banks Feb. 1965 322-23 Member banks: Annually Calendar year May 1964 630-38 Operating ratios Apr. 1964 520-22 Bank holding companies: Insured commercial banks May 1964 639 List of, Dec. 31, 1963 June 1964 782 Banking offices and deposits of group banks, Stock exchange firms, detailed debit and credit Dec.31,1963 June 1964 783 balances Sept. 1964 1206 428 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; Federal funds 430 Reserve Bank discount rates; margin requirements; reserve requirements. 435 Open market transactions; Federal Reserve Banks . . . 437 Bank debits; currency in circulation 440 Money supply; banks and the monetary system. . 442 Commercial and mutual savings banks, by classes. 444 Commercial banks, by classes 448 Weekly reporting member banks. . . 450 Business loans 453 Interest rates 454 Security prices; stock market credit; open market paper. 455 Savings institutions. . 456 Federal finance 458 Federally sponsored agencies. 463 Security issues. . 464 Business finance. . . 467 Real estate credit. 469 Consumer credit. 472 Industrial production 476 Business activity; construction. 480 Employment and earnings 482 Wholesale and consumer prices 484 National product and income series. . 486 Flow of funds. . 488 Banking and monetary statistics, 1964. 490 Guide to tabular presentation. 428 Index to statistical tables. 517 The data for F.R. Banks and member banks and eral finance, and Federal credit agencies are obfor consumer credit are derived from regular tained from Treasury statements. The remainreports made to the Board; production indexes ing data are obtained largely from other are compiled by the Board on the basis of data sources. For many of the banking and monetary collected by other agencies; and flow of funds series back data and descriptive text are availfigures are compiled on the basis of materials able in Banking and Monetary Statistics and from a combination of sources, including the its Supplements (see list of publications at end Board. Figures for gold stock, currency, Fed- of the BULLETIN). 429 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 BANK RESERVES AND RELATED ITEMS MARCH 1965 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F. R. Bank credit outstanding Deposits, other P d e o a ri r t o e d T U o .S ta . l Go B r v o o ig t u u . h t g - s t h e t cu R m c r a i e h g t e p i a r n e u e s s t e e r s - - c v D o a a a n u n i d s c d n - - e ts s Float t T a o l - 2 s G to o c ld k T r s o r c e t u i e a u n n u r a n r y g c t s - - d y - - r c C t e c u i i n u i o n l r c a r n - - y - T h c i r u o n e a r l g s a y d h s s - - Tr t u w h e r a a y i s t n h - m r F e e . s F e e m i R o g rv r b . n - e e B s r , a O b n a t k h n s e k r i c O F o . a t u c h R - n e t r . s B W F a . n i R t k M h . s e r m e c r C s b e o a e n e n u i r n r c d v r - y e 3 b s an T k otal Averages of daily figures 1929—June..., 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 2,314 1933—June..., 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2,211 1939—Dec 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 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 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 ,117 21,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1951—Dec 23,409 23,310 99 657 ,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 ,262 27,299 23,276 4,806 30,494 1,271 569 745 290 832 21,180 21,180 1953—Dec 25,639 25,218 421 448 ,018 27,107 22,028 4,885 30,968 767 602 466 390 908 19,920 19,920 1954—Dec 24,917 24,888 29 407 992 26,317 21,711 4,982 30,749 805 443 439 365 929 19,279 19,279 1955—Dec... 24,602 24,318 284 840 ,389 26,853 21,689 5,008 31,265 777 434 459 394 983 19,240 19,240 1956—Dec... 24,765 24,498 267 706 ,633 27,156 21,942 5,064 31,775 772 463 372 247 998 19,535 19,535 1957—Dec... 23,982 23,615 367 716 ,443 26,186 22,769 5,144 31,932 768 385 345 186 ,063 19,420 19,420 1958—Dec... 26,312 26,216 96 564 ,496 28,412 20,563 5,230 32,371 691 470 262 337 ,174 18,899 18,899 1959—Dec... 27,036 26,993 43 911 ,426 29,435 19,482 5,311 32,775 396 524 361 348 ,195 18,628 304 18,932 1960—Dec... 27,248 27,170 78 94 1,665 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 1,92131,217 16,929 5,587 33,954 422 514 229 244 ,112 17,259 2,859 20,118 1962—Dec... 30,546 30,474 72 305 2,2""9"8 33,218 15,978 5,561 35,281 398 587 222 290 ,048 16,932 3,108 20,040 1963—Dec... 33,729 33,626 103 360 2,434 36,610 15,562 5,583 37,603 389 879 160 206 ,215 17,303 3,443 20,746 1964—Feb... 33,009 32,981 28 311 644 35,028 15,480 5,586 36,383 429 926 141 205 991 17,018 3,128 20,146 Mar... 33,389 33,348 41 259 710 35,454 15,462 5,579 36,615 433 948 153 202 998 17,146 3,067 20,213 Apr... 33,498 33,453 45 214 798 35,602 15,462 5,580 36,887 426 924 141 195 987 17,084 3,193 20,277 May.. 33,907 33,836 71 256 747 35,981 15,462 5,577 37,107 425 957 148 180 1,111 17,092 3,128 20,220 June.. 34,631 34,530 101 271 784 36,760 15,462 5,584 37,541 414 886 135 200 1,273 17,356 3,202 20,558 July... 34,898 34,765 133 265 37,077 15,463 5,568 37,938 431 804 131 201 1,194 17,408 3,257 20,665 Aug... 35,118 34,996 122 334 670 37,170 15,462 5,562 38,033 421 909 145 194 1,151 17,340 3,226 20,566 Sept... 35,273 35,143 130 332 914 37,578 15,462 5,564 38,224 437 893 143 189 1,129 17,589 3,339 20,928 Oct... 35,334 35,257 77 311 027 37,747 15,462 5,533 38,362 471 863 133 189 1,009 17,716 3,317 21,033 Nov... 36,036 35,867 169 433 874 38,421 15,442 5,494 38,937 529 613 148 200 1,119 17,812r3,347 '21,159 Dec... 37,126 36,895 231 266 423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964'3,645 '21,609 1965—Jan.... 36,684 36,457 227 340 2,126 39,245 15,258 5,395 '39,013 -652 875 180 223 949 18,006 3,613 21,619 Feb.. . 37,052 36,957 95 450 1,650 39,244 14,984 5,394 38,639 698 943 145 211 1,166 17,820'3,406 '21,226 Week ending- 1964 Jan. 1 33,655 33,563 92 590 2,752 37,153 15,513 5,580 37,730 381 927 185 227 ,142 17,653'3,804 '21,457 8 33,698 33,531 167 396 2,46136,706 15,513 5,582 37,306 402 966 168 205 ,070 17,685 3,484 21,169 15 33,494 33,338 156 394 2,203 "3'6,231 15,513 5,584 36,983 406 1,033 167 213 ,062 17,463 3,442 20,905 22 32,944 32,944 198 2,365 35,623 15,513 5,586 36,690 416 1,044 148 216 ,059 17,149 3,314 20,463 29 32,739 32,739 209 1,764 34,780 15,512 5,582 36,364 410 869 141 208 ,041 16,840 3,360 20,200 Feb. 5 33,009 32,979 30 277 1,417 34,771 15,512 5,587 36,292 425 759 131 214 960 17,089 3,131 20,220 12 33,275 33,214 61 372 1,496 35,208 15,498 5,586 36,462 424 978 151 200 961 17,116 3,062 20,178 19 32,887 32,862 25 291 1,846 35,088 15,462 5,583 36,469 420 979 124 209 960 16,972 3,199 20,171 26 32,750 32,750 200 1,835 34,846 15,462 5,588 36,308 439 903 147 197 1,051 16,852 3,184 20,036 Mar. 4 33,245 33,245 362 529 35,204 15,462 5,586 36,352 443 989 150 207 1,040 17,072 3,111 20,183 11 33,437 33,437 253 609 35,385 15,463 5,580 36,538 452 941 149 207 1,062 17,079 2,899 19,978 18 33,270 33,195 358 758 35,480 15,463 5,576 36,692 444 897 144 200 1,005 17,137 3,076 20,213 25 33,384 33,301 279 973 35,750 15,462 5,579 36,657 431 1,044 159 196 950 17,354 3,156 20,510 Apr. 1 33,575 33,534 155 1,,512 35,353 15,462 5,578 36,735 391 881 164 202 952 17,067 3,242 20,309 8 33,979 33,916 209 1,593 35,898 15,463 5,583 36,839 415 922 148 203 1,039 17,376 2,974 20,350 15 33,843 33,843 191 1,756 35,891 15,462 36,998 439 980 135 197 1,005 17,183 3,185 20,368 22 33,050 33,050 321 2,166 35,593 15,462 36,912 432 898 133 187 946 17,123 3,200 20,323 29 33,086 32,985 101 137 1,772 35,083 15,462 36,813 423 929 140 193 959 16,667 3,299 19,966 May 6 33,763 33,580 183 213 1,653 35,724 15,463 5,582 36,910 426 156 188 954 17,247 3,030 20,277 13 33,987 33,904 83 314 1,640 36,020 15,463 5,571 37,150 417 990 160 179 939 17,218'3,087 '20,305 20 33,749 33,715 34 298 2,064 36,179 15,462 5,573 37,154 427 1,010 143 178 1,195 17,107 3,197 20,304 27 33,839 33,819 20 209 1,,739 35,844 15,462 5,581 37,123 430 927 131 174 1,250 16,852 3,262 20,114 June 3 34,381 34,327 54 265 1,52136,222 15,463 5,584 37,263 425 914 145 197 1,257 17,066 3,128 20,194 10 34,757 34,530 227 289 1,47136,597 15,462 5,590 37,487 436 905 135 199 1,308 17,179 3,007 20,186 17 34,591 34,438 153 328 1,82336,811 15,461 5,582 37,614 415 880 131 196 1,240 17,378 3,238 20,616 24 34,42^" 34,427 232 2,136 ~3"6,875 15,461 5,582 37,574 395 905 138 203 1,273 17,430 3,297 20,727 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BANK RESERVES AND RELATED ITEMS 431 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F.R. Bank credit outstanding Deposits, other P d e o a ri r t o e d T U o . t S a . l Go B r v o o i t g u u . h t g - s t h 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 c d n - - e ts s Float * t T al o - 2 s G to o c ld k T r s o c r e t u i e a u n n u r a n g r y c t s - - d y - - r c C t e c u i i n u i o n l r c a r n - - y - T h c i r u o n a e r l g s a y d h s s - - T t r u h e w r a a y i n s t - h m r e F e s F . m e R o r b v r . - e e B r s , a O b n a t k h n s k eri c O F o a t . u c h R n - e . t r s B W F a . n i R t k M h . s e r m e r c C s b e a o e n e n u r i r c d r v n - y e 3 b s an T k otal Averages of daily figures Week ending— 1964 July 1 34,841 34,823 18 221 1,818 36,960 15,462 5,582 37,618 404 873 140 195 1,276 17,498 3,347 20,845 35,335 35,215 120 263 1,882 37,588 15,463 5,574 37,916 416 842 134 222 ',256 17,840 2,965 20,805 15 35,304 35,030 274 460 1,78737,636 15,463 5,562 38,099 425 885 123 204 ,223 17,703 3,291 20,994 22 34,392 34,392 159 2,19536,789 15,463 5,566 37,969 444 770 131 191 ,158 17,154 3,275 20,429 29 34,518 34,357 179 1,626 "3'6,381 15,463 5,567 37,814 440 711 133 190 ,148 16,975'3,350 '20,325 35,112 34,980 132 262 l,460 36,,i892 15,462 5,570 37,893 433 769 137 199 ,132 17,363 3,197 20,560 35,397 35,097 300 376 1,554 37,393 15,462 5,554 38,114 417 964 141 193 ,113 17,467 3,130 20,597 19. 34,855 34,855 279 2,024 37,197 15,461 5,558 38,113 412 932 144 199 ,102 17,314 3,269 20,583 26. 35,051 34,929 122 329 '1, 7~1"9 37,137 15,462 5,563 37,998 429 918 145 188 ,214 17,270'3,341 '20,611 Sept. 2. 35,162 35,144 18 315 1,45136,968 15,462 5,572 38,007 423 858 164 191 ,199 17,159'3,372 '20,531 9. 35,611 35,234 377 478 1,56337,716 15,462 5,566 38,243 426 857 131 188 ,220 17,679 3,000 20,679 16. 35,397 35,262 135 225 1,846 3377,524 15,462 5,564 38,425 435 906 142 194 ,163 17,285 3,454 20,739 23. 34,904 34,904 410 2,46537,820 15,462 5,569 38,192 448 962 131 193 ,054 17,870 3,386 21,256 30. 35,186 35,157 29 280 1,94337,487 15,461 5,556 38,075 440 914 161 186 ,066 17,662r3,478 '21,140 Oct. 7. 35,759 35,549 210 372 1,820 38,051 15,463 5,554 38,209 457 838 131 204 ,103 18,125 3,134 21,259 14. 35,663 35,532 131 241 1,875 37,876 15,462 5,541 38,465 470 865 133 177 ,028 17,739 3,246 20,985 21. 34,909 34,909 382 2,548 37,878 15,463 5,538 38,432 489 1,012 130 189 966 17,660'3,341 '21,001 28. 34,911 34,911 233 1,995 37,203 15,462 5,513 38,333 467 810 137 185 925 17,321'3,448 '20,769 Nov. 4. 35,711 35,642 69 479 1,634 37,910 15,462 5,505 38,446 484 666 122 197 1,111 17,851 3,359 21,210 11. 35,986 35,671 315 429 1,711 38,201 15,463 5,497 38,793 503 546 139 205 1,153 17,823 3,192 21,015 18. 35,913 35,698 215 593 1,962 38,532 15,462 5,497 38,975 533 563 130 215 1,150 17,926 3,389 21,315 25. 35,992 35,867 125 162 2,136 38,388 15,430 5,494 39,071 552 521 148 183 1,245 17,592 3,467 21,059 Dec. 2 36,667 36,667 377 1,860 38,,969 15,387 5,456 39,277 554 827 224 196 886 17,848 3,528 21,376 9 37,335 37,335 124 1,950 39,,480 15,387 5,400 39,476 571 873 186 186 1,231 17,745'3,397 '21,142 16 37,335 37,020 315 162 2;084 39,632 15,388 5,402 39,743 593 1,024 142 176 1,106 17,637 3,750 21,387 23 36,926 36,660 266 291 2,907 40,175 15,387 5,404 39,834 608 978 144 183 1,057 18,160 3,681 21,841 30 36,936 36,570 366 535 2,884 40,409 15,388 5,397 39,852 620 990 221 177 996 18,338'3,653 '21,991 1965 Jan. 37,058 36,515 543 340 2,622 40, 15,388 5,407 39,552 630 674 228 283 1,026 18,513 3,690 22,203 36,816 36,515 301 460 2,149 39,522 15,330 5,394 39,282 649 780 186 205 970 18,174 3,670 21,844 36,460 36,403 57 322 2,249 39,112 15,187 5,393 38,927 662 1,015 178 212 902 17,797 3,643 21,440 36,440 36,334 106 252 1,841 38,631 15,187 5,387 38,644 657 997 151 213 C877 17,668 3,591 21,259 Feb. 3 36,876 36,769 107 323 1,611I 38,92315,157 5,396 38,565 664 940 148 216 1,032 17,912 3,489 21,401 10 37,272 37,133 139 517 I',472 39,38415,045 5,391 38,641 679 924 152 207 1,158 18,060 3,252 21,312 17 37,151 37,088 63 398 ,540 39,189 14,937 5,397 38,715 699 1,001 141 220 1,158 17,589 3,460 21,049 24 36,812 36,718 94 565 ,730 39,162 14,938 5,391 38,613 719 878 139 204 1,195 17,744*>3,441P21,185 End of month 1964 Dec 37,044 36,506 538 186 2,606 39,930 15,388 5,405 39,619 612 820 229 321 1,036 18,086 4,278 22,364 1965 Jan 36,741 36,621 120 304 1,577 38,737 15,185 5,400 38,540 653 929 143 218 1,039 17,801 3,181 20,982 36,907 36,824 83 300 2,144 39,422^14,937 5396 ^38,571 VJ07 154 210 1,222 17,903 3160 »21,063 Feb Wednesday 1965 37,032 36,527 505 337 2,304 39,762 15,388 5,409 39,428 656 492 229 201 1,010 18,543 3,943 22,486 Jan. 6 36,524 36,482 42 192 1,780 38,597 15,188 5,388 39,143 671 979 214 206 872 17,088 4,094 21,182 13 36,285 36,259 26 86 ',935 38,392 15,188 5,394 38,817 664 1,098 177 207 896 17,115 3,978 21,093 20 36,723 36,405 318 234 534 38,611 15,188 5,391 38,600 676 907 133 194 860 17,820 3,961 21,781 27 Feb. 3 37,387 37,149 238 755 ,397 39,660 15,088 5,392 38,605 670 1,025 138 211 1,087 18,404 3,652 22,056 10 37,242 37,133 109 144 ,349 38,866 14,938 5,396 38,761 692 907 143 192 1,170 17,335 3,664 20,999 17 37,286 37,120 166 229 ,626 39,246 14,938 5,400 38,674 717 777 136 195 1,199 17,886 3,804 21,690 24 36,681 36,628 53 132 ,545 38,413 14,938 5,384 38,682 716 919 134 209 1,192 16,883?3,848^20,731 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

432 BANK RESERVES AND RELATED ITEMS MARCH 1965 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t ld al qu R i e r - ed Excess B r F i o a n a . n w g R t k s - . s s F e r r r e v e - e e s T h o e t ld al qu R i e r - ed Excess B r F i o a n a . n w R g t k s . - s s F e r r r e v e - e e s T h o el t d al quired Excess B r F i o a n a . n w R g t k s . - s s F e r r r e v e - e e s 1929—June.... 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 12,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947—Dec 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 1,011 13 7 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 199 191 5 3 1951—Dec 20,310 19,484 826 657 169 5,275 5,231 44 151 -107 356 ,353 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 -50 210 210 -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 ,038 ,038 104 -104 I960—Dec 19,283 18.514 769 87 682 3,687 3,658 29 19 10 958 953 8 -4 1961—Dec 20,118 19,550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962—Dec 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 ,042 ,035 7 18 -11 1963—Dec 20,746 20,210 536 327 209 3,951 3,895 56 37 19 ,056 ,051 5 26 -21 1964—Feb '20,146 19,753 '393 304 '89 ,797 3,757 40 47 ,014 ,016 -2 87 -89 Mar 20,273 19,855 '358 259 '99 ,803 '3,797 '6 22 -16 ,026 ,022 4 90 -86 Apr '20,277 i9.897 '380 213 '167 ,787 '3,772 '15 16 '—1 ,021 ,014 7 21 -14 J M u a n y e . . . . . . . . ' 2 2 0 0 , , 5 2 5 2 8 0 i '2 9 0 , , 8 1 8 6 3 8 ' ' 3 3 3 9 7 0 2 2 5 7 5 0 M ' 2 8 0 2 '3, , 9 83 8 3 4 3 3 , , 8 9 3 4 2 5 '3 ' 9 1 2 3 6 9 -25 , ,0 0 3 4 3 4 , , 0 0 4 3 1 3 '3 1 5 3 r_ ' 2 13 July '20,665 r20.265 '400 265 '135 943 '3,920 '23 40 -H ,039 ,036 22 -19 Aug '20,566 '20,149 '417 334 '83 876 3,858 '18 39 -21 ,039 ,033 '6 13 '-7 Sept '20,928 r20,508 '420 331 '89 3; 983 3,954 29 45 -16 ,061 ,060 '1 34 '-33 Oct '21,033 '20,618 '415 309 '106 3,962 3,942 20 54 -34 ,058 ,055 3 29 -26 Nov '21,159'20,763 396 430 -34 3,893 3,882 11 97 -86 ,076 ,072 '4 20 '-16 Dec '21,609 21,198 411 243 168 4,083 4,062 '21 35 -14 ,083 ,086 '-3 28 '-31 1965—Jan 21,619 21,217 402 299 103 4,117 4,073 43 113 -70 ,094 ,099 -5 12 -17 Feb P21,226 '21,786 ^440 405 "35 3,966 3,961 5 95 -90 ,096 ,083 14 50 -36 Week ending— 1964—Feb. 5. 20,220 19,854 366 242 124 3,834 3,820 13 24 -10 ,028 021 46 -40 12. 20,178 19,776 402 367 35 3,762 3,744 18 89 -71 ,003 Oil 117 -124 19. 20,171 19,751 420 291 129 3,762 3,742 20 4 16 ,031 018 132 -119 26. 20,036 19,683 353 200 153 3,733 3,734 1 35 -36 ,011. Oil 60 -61 Sept. 2. 20,521 20,133 388 315 73 3,882 3,841 41 56 -15 ,038 ,033 7 -2 9. 20,679 20,182 497 478 19 3,831 3,823 8 30 -22 ,038 ,033 59 -54 16. 20,739 20,368 371 225 146 3,924 3,894 29 21 8 ,043 ,043 6 -5 23. 21,256 20,775 481 409 72 4,041 4,036 5 137 -132 ,087 ,085 37 -35 30. 21,140 20,752 388 278 110 4,143 4,073 70 6 65 1,088 ,084 42 -38 Oct. 7. 21,259 20,826 433 370 63 4,095 4,089 6 53 -47 1,070 ,070 68 -69 14. 20,985 20,575 410 239 171 3,948 3,898 50 59 a 1,047 ,042 33 -27 21. 20,991 20,574 417 380 37 3,905 3,898 7 87 -80 ,054 ,057 11 -14 28. 20,776 20,465 311 230 81 3,881 3,872 9 1 ,052 ,048 10 -6 Nov. 4. 21,210 20,768 442 476 -34 4,021 3,989 3: 220 -188 ,081 13 -11 11. 21,015 20,646 369 427 -58 3,829 3,824 73 -68 .065 ,059 6 18. 21,315 20,724 591 590 1 3,86f 3,837 25 131 -106 ,070 ,070 44 -44 25. 21,059 20,801 258 159 99 3,904 3,879 25 10 15 ,083 ,078 5 Dec. 2. 21,376 20,987 389 375 14 3,972 3,969 24 -21 ,081 ,081 -32 9. 21,145 20,852 293 122 171 3,925 3,907 4 14 ,060 ,059 -3 16. 21,387 20,999 388 134 254 4,031 4,017 12 ,065 ,065 — 1 23. 21,841 21,437 404 257 14' 4,157 4,145 38 -27 ,097 ,104 -50 30. 21,996 21,441 555 504 51 4,195 4,147 101 -53 ,112 ,108 -72 1965—Jan. 6. 22,199 21,846 353 309 44 4,327 4,328 63 ,153 ,15: -14 13. 21,845 21,257 588 424 164 4,061 4,036 161 -137 ,085 ,08' -32 20. 21,440 21,050 390 277 113 4,038 3,982 156 -100 ,084 ,079 5 27. 21,259 20,918 341 203 138 3,984 3,99^ 74 -81 ,084 ,08: Feb. 3. 21,401 21,019 38: 278 104 4,101 4,075 69 -43 ,102 ,100 -32 10. 21,312 20,815 49 47: 25 3,991 3,97." 56 -36 ,083 ,077 -49 17. 21,049 20.735 314 353 -39 3,964 3,93: 145 -113 1,075 ,079 -34 24. 21185 ^20,651 ^534 520 n 3,905 3,893 105 -93 1,07 ,070 -83 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BANK RESERVES AND RELATED ITEMS 433 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow- Reserves Borrow- Period ings at Free ings at Free T h o e t ld al Required Excess B F a . n R k . s reserves T h o e t l a d l Required Excess B F a . n R k . s reserves 1929—June 761 749 12 409 -397 632 610 22 327 -305 1933_june 648 528 120 58 62 441 344 96 126 -30 1939—Dec 3,140 1,953 1,188 1,188 1,568 897 671 3 668 1941—Dec 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 1945—Dec 6,394 5,976 418 96 322 4,576 3,566 1 .011 46 965 1947_Dec 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950—Dec 6,689 6,458 232 50 182 4,761 4.099 663 29 634 1951—Dec 7,922 7,738 184 354 -170 5,756 5,161 596 88 508 1952—Dec 8,323 8,203 120 639 -519 6,094 5,518 576 236 340 1953—Dec 7,962 7,877 85 184 -99 5,901 5,307 594 105 489 1954—Dec 7,927 7,836 91 117 -26 5,634 5,032 602 52 550 1955—Dec 7,924 7,865 60 398 -338 5,716 5.220 497 159 338 1956—Dec 8,078 7,983 96 300 -203 5,859 5,371 488 144 344 1957_Dec 8,042 7,956 86 314 -228 5,906 5,457 449 172 277 1958—Dec 7,940 7.883 57 254 -198 5,849 5,419 430 162 268 1959—Dec 7,954 7,912 41 490 -449 6,020 5,569 450 213 237 1960—Dec 7,950 7,851 100 20 80 6,689 6,066 623 40 583 1961_Dec 8,367 8,308 59 39 20 6,931 6,429 502 31 471 1962—Dec 8,178 8,100 78 130 -52 6,956 6,515 442 48 394 1963—Dec 8,393 8,325 190 -122 7,347 6,939 408 74 334 1964—Feb '8,121 '8,103 '18 106 214 '6,877 '337 64 '273 Mar '8,211 '8,171 '40 90 '-50 177 '6,865 312 57 255 Apr '8,235 8,204 '31 108 '-77 234 '6,907 '•327 68 '259 May '8,182 '8,150 27 144 -115 161 '6,860 '301 80 '221 June 8,318 8; 290 '28 142 -114 '7,224 '6,900 '324 56 '248 July '8,386 8,341 '45 147 -102 '7,297 6,968 '329 56 '273 Aug '8,349 '8,312 '37 191 -154 '7,302 '6,946 '356 91 '265 Sept 8,480 '8.441 '39 179 -140 '7,404 '7,053 '351 73 '278 Oct '•8,530 '8,483 '47 163 -116 7,483 '7,138 '345 63 '282 Nov '8,612 '8,565 '47 225 -178 7,578 7,244 334 88 246 Dec '8,735 '8,713 '22 125 -103 '7,707 '7,337 '370 55 '315 1965—Jan 8,713 8,676 37 120 -83 7.695 7,369 327 54 273 8,548 8,482 66 207 -141 ^7,616 "7,260 "355 53 "302 Feb Week ending— 8,146 8,133 14 95 -81 7,213 6,879 333 77 256 1964—Feb. 5 8,157 8,111 46 102 -56 7,255 6,911 345 59 286 12 8,140 8,102 38 83 -46 7,238 6,888 350 72 278 19 8,107 8,085 22 66 -44 7,185 6,853 332 39 293 26 Sept. 2 8,389 8,322 67 144 -77 7,212 6,937 275 108 167 9 8,406 8,351 55 292 -237 7,405 6,976 429 97 332 16 8,455 8,399 56 124 -68 7,318 7,033 285 74 211 23 8,554 8,527 27 190 -163 7,574 7,127 447 45 402 30 8,555 8,497 58 158 -100 7,353 7,098 256 72 184 Oct. 7 8,581 8,554 27 189 -162 7,513 7,113 401 60 341 14 8,567 8,484 83 91 -8 7,424 7,152 272 56 216 21 8,471 8,464 7 228 -221 7,561 7,155 406 54 352 28 8,443 8,419 23 146 -123 7,401 7,125 276 73 203 Nov. 4 8,585 8,543 42 163 -121 7,521 7,155 366 80 286 11 8,570 8,536 34 262 -228 7,551 7,227 324 92 232 18 8,601 8,556 45 312 -267 7,782 7,261 521 103 418 25 8,624 8,576 48 73 -25 7,448 7,268 180 76 104 Dec. 2 8,651 8,643 240 -232 7,671 7,293 378 79 299 9 8,636 8,591 45 60 -14 7,225 7,295 229 55 174 16 8,657 8,621 36 81 -45 7,634 7,295 339 40 298 23 8,853 8,815 37 118 -79 7,734 7,373 361 58 303 30 8,838 8,799 39 258 -219 7,851 7,387 464 69 395 1965—Jan. 6 8,983 8,942 41 183 -142 7,737 7,424 313 49 264 13 8,763 8.710 54 152 -98 7,936 7,424 511 81 430 20 8,691 8.610 81 71 10 7,626 7,378 249 50 199 27 8,566 8,540 26 87 -61 7,624 7,305 319 38 281 Feb. 3 8,594 8,568 26 122 -96 7,604 7,275 328 53 275 10 8,530 8,487 42 307 -265 7,708 7,278 430 54 375 17 8,511 8,468 43 130 -87 7,500 7,256 244 48 196 24 8,480 8,440 39 280 -241 *>7,726 ^7,249 P477 48 »429 i This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and opening figures for allowable cash; see also note 3 to preceding table. NOTE.—Averages of daily figures. Beginning with Jan. 1964 reserves Required reserves: Based on deposits as of opening of business each day. are estimated except for weekly averages. Borrowings at F.R. Banks: Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 MAJOR RESERVE CITY BANKS MARCH 1965 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt. securities dealers Less: Net: Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e - e s s s i r a o B t B w a F o n in r . k R - g s s . F t f i b e r n u N d a a t n n e n e e d r t k r s s - a . l S d u e r o f p i r c l i u t s P r r e e e a s q r e o v u c r f g i v e r . e n e s d t c P ha u s r e - s Sales a 2 c t T r - t a o w io n t a a n s y l - s2 b c b o u P h f a y a u n n s i r k n e e - s g s t s o b S e f a l a n l l n i e k n e s s g t d L ea o t l o a e n rs s 3 de f r B i r a o n o o l w g e m r s - r - s4 lo N a e n t s Total—46 banks 1965 Tan 6 20 198 1,015 -1,192 11.9 1,909 894 724 1,185 171 1,194 126 1,068 13. .. 43 317 1,295 -1,568 16.5 2,286 991 815 1,471 176 1,401 127 1,274 20 101 211 1,310 -1,420 15.1 2,287 977 864 1,423 113 1,423 107 1,316 27 -1 117 531 -649 6.9 1,801 1,270 833 968 437 1,061 92 969 Feb 3 22 175 662 -815 8.5 1,866 1,204 962 904 242 1 298 90 1 207 10 .... 40 284 686 -930 9.9 1,816 1,130 883 933 247 1,006 57 950 17 37 208 747 -918 9.9 2,066 1,319 1,007 1,059 312 1,035 109 926 24 30 325 423 -718 7.8 1,703 1,281 920 784 361 706 134 573 8 in New York City 1965 Jan 6 4 61 635 -691 17.1 970 335 260 710 75 924 126 799 13 14 161 829 -976 26.0 1,158 330 330 829 877 127 750 20 46 156 810 -920 24.8 1,167 356 356 810 792 107 685 27 -11 72 443 -526 14.2 943 500 441 502 59 666 92 575 Feb. 3 12 69 377 -434 11.4 925 548 426 500 123 861 90 770 10 15 51 489 -525 14.2 1,061 573 528 534 45 671 56 615 17 .... . 16 131 579 -695 19.0 1,066 487 All 596 16 725 106 619 24 8 100 284 -376 10.4 811 528 506 305 21 488 124 364 38 outside New York City 1965 Jan 6 16 137 380 -501 8.4 939 559 463 476 96 270 270 n 29 155 466 -592 10.3 1,128 662 486 642 176 524 524 20. 55 55 500 -500 8.8 1,120 620 507 613 113 632 632 27 9 45 88 -123 2.2 858 770 392 466 378 394 394 Feb 3 10 106 285 -381 6.6 941 656 537 404 119 437 437 10 24 233 197 -406 7.2 755 557 356 399 202 335 1 335 17 21 77 168 -223 3.9 1,000 832 536 463 295 310 3 307 24 22 225 139 -342 6.1 892 753 413 479 340 218 10 208 5 in Chicago 1 14 96 -109 10.5 232 136 136 96 125 125 13 -3 30 156 -189 19.4 284 128 115 169 13 145 145 20 1 117 -116 12.0 318 201 135 183 66 154 154 27 2 53 -51 5.3 190 137 107 84 30 118 118 Feb 3 2 28 95 -121 12.3 242 147 140 102 8 105 105 10 6 52 16 -62 6.4 179 164 78 101 86 111 111 17 i 27 3 -31 3.2 225 222 102 123 120 72 72 24. . 2 84 22 -104 10.9 227 205 111 117 95 52 52 33 others 1965—-Jan. 6 15 123 284 -392 7.9 707 423 327 380 95 145 145 13. . 32 125 310 -404 8.4 844 534 370 473 163 379 379 20 54 55 383 -384 8.1 802 420 373 430 47 477 477 27 7 45 34 -72 1.5 667 633 285 382 348 276 276 Feb 1 3 0 1 8 9 1 7 8 8 0 1 1 9 8 0 2 - - 2 3 6 4 0 4 5 7 . . 5 3 6 5 9 7 9 6 5 3 0 9 9 4 3 2 9 7 7 8 2 3 9 0 8 2 1 1 1 1 6 2 2 3 2 3 4 2 i 2 3 2 3 4 2 17 22 50 165 -193 4.1 774 609 434 340 175 238 3 235 24 20 141 117 -238 5.1 665 548 303 362 245 166 10 156 1 Based upon reserve balances including all adjustments applicable to 4 Federal funds borrowed, net funds acquired from each dealer by the reporting period. Carryover reserve deficiencies, if any, are de- clearing banks, reverse repurchase agreements (sales of securities to ducted. dealers subject to repurchase), resale agreements, and borrowings secured 2 Derived from averages for individual banks for entire week. Figure by Govt. or other issues. f a o n r d 3 e F s a a e c l d e h e s r a a b l r a e n f k u o n f d f i s n s e d t i l t c i o n a a g t n e . e s d, e x n t e e t n t f u t n o d s w s h u i p ch p li i e t d s w to e e e k a l c y h a d v e e a r l a e g r e b y p u c r l c e h a a ri s n e g s tot N al O s T b E e . c — au W se e e o k f l y r ou av n e d r i a n g g e . s of daily figures. Details may not add to banks, repurchase agreements (purchases of securities from dealers For description of series and back data, see August 1964 BULL., pp. subject to resale) or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 DISCOUNT RATES 435 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 Feb. 28 date Feb. 28 date Boston Nov. 24,1964 Nov. 24, 1964 New York... Nov. 24,1964 Nov. 24, 1964 Philadelphia.. Nov. 24,1964 Nov. 24, 1964 Cleveland Nov. 27,1964 Nov. 27, 1964 Richmond... Nov. 27,1964 Nov. 27, 1964 Atlanta Nov. 25,1964 Nov. 25, 1964 Chicago Nov. 24,1964 Nov. 24, 1964 St. Louis Nov. 24,1964 Nov. 24, 1964 Minneapolis.. Nov. 30,1964 Nov. 30, 1964 Kansas City.. Nov. 30,1964 Nov. 30, 1964 Dallas Nov. 27,1964 Nov. 27, 1964 San Francisco Nov. 27,1964 Nov. 27, 1964 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 maturmaturities not over 6 months and 9 months, respectively, and advances ity: 90 days. FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date all F.R. of date all F.R. of date all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1932 1953 1958 Jan. 16 Jan. 22 234-3 3 1933 23 24 234-3 2% Mar. 3 Mar. 7 214-3 4 13 214-234 Apr. 7 b 1954 21 21/4 2VA May 26 Feb. 5 WA~2 Apr. 18 l%-2*4 WA Oct. 20 15 WA • /* May 9 WA Apr. 14 WA Aug. 15 134-2 1934 16 WI-WA WA Sept. 12 m-2 Feb. 2 May 21 WWii 23 Mar. 16 Oct. 24 2 -2i/2 2 Nov. 7 21/2 2V2 J M an a . y 1 1 1 4 1935 1 W 1 2 /2 -2 -2 V2 W n/ 2 A M p a r y . 1 1 2 4 5 1955 \\ 11 vv 11 2 / 2 WW 2 - / - 1- A \y 3 4 4 WA Mar. 1 6 6 1959 y2 3 3 1937 Aug. 4 IVA-2 VA May 29 3 -31/2 Aug. 27 1 -2 5 WA-2VA June 12 3^2 Sept. 4 12 2 -21/4 Sept. 11 3311//22-4 4 Sept. 9 2 -2VA 2VA 18 4 1942 13 214 2VA Apr. 11 Nov. 18 21,4-21/1 21/2 1960 Oct. 3 1 0 5 23 21/2 2Vi June 1 3 0 3 3 1 1 / / 2 2 - - 4 4 f 14 1946 Aug. 12 3 % Apr. 25 1956 Sept. 9 May 10 Apr. 13 2% 20 234 1963 1948 Aug. 24 July 17 3 -3i/2 31/2 Jan. 12 1 -U/A WA 3 26 31/2 31/2 19 WA WA Aug. 13 WA-WI WI 1964 WI W2 Aug- £ 1 : 9 : 5 :: 7 : 3 4' A Nov. 2 3 4 0 1950 WA Nov. 15 1965 WA Dec. 2 3 -3i/2 3 In effect Feb. 28 1 Preferential rate of i/i 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, 1943, pp. 439-^12. 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, The rate charged by the F.R. Bank of N.Y. on repurchase contracts 28, 30, 31, 3.875; 1965—Jan. 4, 5, 6, 7, 8, 3.875. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 RESERVE REQUIREMENTS MARCH 1965 MAXIMUM INTEREST RATES PAYABLE ON TIME AND RESERVE REQUIREMENTS OF MEMBER BANKS SAVINGS DEPOSITS (Per cent of deposits) (Per cent per annum) Net demand deposits 2 Time deposits Effective date Type of deposit Central Ja 1 n 9 . 3 6 1, Ja 1 n 95 . 7 1, Ja 1 n 96 . 2 1, Ju 1 ly 96 1 3 7, No 19 v 6 . 4 24, Effective date 1 b C re a e c s n n i e k t t r y r s 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 c a s s i e n e t r r d y v v e e C ba t o r n u y k n s - Savings deposits held banks for: 1 year or more } 2* 3 { k 4 4 Less than 1 year 3% 4 In effect Dec. 31,1948.. 26 22 16 7% 7% Postal savings deposits 1949_May 1,5 24 21 15 7 7 held for: June 30, July 1.. 20 14 6 6 1 year or more } 2* 3 { k 4 4 Aug. 1,11 |H 19% 13 5 Less than 1 year 3% 4 Aug. 16, 18 19 12 5 Aug. 25 ii* Other time deposits Sept. 1 payable in: i 1951—Jan. 11, 16, . . , 23 13 6 6 9 6 1 0 m y d e o a a n y r t s h o - s 6 r - 1 m m o y o r e n e a th r s } 2 2 % 2 3 » I f 4 A 4% 1 1 9 9 5 5 3 4 — _j J J U a u n n ly e . 2 1 5 6 1 , , , F 2 9 e 4 b. 1.. 2 2 2 4 2 1 2 1 1 0 9 9 1 1 3 4 5 5 Less than 90 days.... 1 ): 4 July 29, Aug. 1. 20 18 12 1958—Feb. 27, Mar. 1. 8* 17% ii* 1 For exceptions with respect to foreign time deposits, see Oct. 1962 Mar. 20, Apr. 1.. BULL., p. 1279. Apr. 17 18% NOTE.—Maximum rates that may be paid by member banks as estab- Apr. 24 18 16% lished by the Board of Governors under provisions of Regulation Q. 1960—Sept. 1 17% Under this Regulation the rate payable by a member bank may not in Nov. 24 12 any event exceed the maximum rate payable by State banks or trust Dec. 1 16% cos. 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 Mar. 1,1965... 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, 2% per cent. Present legal requirement: Minimum 10 7 3 3 MARGIN REQUIREMENTS 22 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 July 28, July 10, Nov. 6, due from domestic banks. 1960 1962 1963 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. Regulation T: NOTE.—All required reserves were held on deposit with F.R. Banks, For extensions of credit by brokers and June 21, 1917 until late 1959. Since then, member banks have also been dealers on listed securities 70 50 70 allowed to count vault cash as reserves, as follows: Country banks—in For short sales 70 50 70 excess of 4 and 2x/i per cent of net demand deposits effective Dec. 1, 1959 Regulation U: and Aug. 25, 1960, respectively. Central reserve city and reserve city For loans by banks on stocks 70 50 70 banks—in excess of 2 and 1 per cent effective Dec. 3, 1959, and Sept. 1, 1960, respectively. Effective Nov. 24, 1960, all vault cash. NOTE.—Regulations T and U, prescribed in accordance with Securities Exchange Act of 1934, limit the amount of credit that may be extended on a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of extension; margin re quirements 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 Item m b e a A m n l k b l s er Y N o e r w k Other C b o a u n n k t s ry Item m ba e A n m l k l 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 City Chicago City Chicago Four weeks ending Jan. 6, 1965 Four weeks ending Feb. 3, 1965 Gross demand—Total.... 144,500 28,064 6,766 54,818 54,852 Gross demand—Total. . 140,040 26,801 6,540 52,745 53,954 Interbank 15,869 4,743 1,313 7,781 2,032 Interbank 15,357 4,621 1,277 7,428 2,030 U.S. Govt 4,943 1,098 313 1,887 1,645 U.S. Govt 3,436 775 225 1,394 1,042 Other 123,688 22,223 5,140 45,150 51,175 Other 121,247 21,405 5,037 43,922 50,883 Net demand1 '117,516 21,661 5,625 43,754 r46,476 Net demand * 114,455 20,730 5,455 42,295 45,975 Time '103,411 14,638 4,481 39,369 r44,922 Time 106,122 15,023 4,670 40,712 45,718 Demand balances due Demand balances due from dom. banks 7,935 149 114 2,097 5,575 from dom. banks... 7,559 141 97 2,009 5,311 Currency and coin 3,694 324 58 1,119 2,194 Currency and coin 3,598 294 55 1,088 2,160 Balances with F.R. Balances with F.R. Banks 18,162 3,853 1,049 7,714 5,545 Banks 17,888 3,752 1,034 7,566 5,537 Total reserves held 21,856 4,177 1,107 8,833 7,739 Total reserves held 21,486 4,046 1,089 8,654 7,697 Required r21,435 4,160 1,107 8,794 H,374 Required 21,061 4,021 1,087 8,607 7,346 Excess *42l 17 39 r365 Excess 425 25 2 47 351 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

MARCH 1965 OPEN MARKET ACCOUNT 437 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt. securities by maturity Total Treasury bills Others within 1 year Month Exch. Gross Gross Redemp- Gross Gross Redemp- Gross Gross or purchases sales tions purchases sales tions purchases sales maturity shifts 1964—Jan 95 670 255 95 670 255 Feb 989 458 115 989 458 115 -3,411 Mar 699 18 239 677 18 239 588 714 367 538 714 367 15 May 1,332 136 85 1,259 136 85 -2,164 June 937 371 900 371 July 1,264 610 447 1,264 610 447 Aug • 574 413 145 413 2 030 Sent 620 534 388 534 Oct 1,347 888 1,275 888 Nov 1 197 131 1 197 131 —28 Dec 813 866 iis 706 866 215 5 1965—Jan 388 261 12 388 261 12 Outright transactions in U.S. Govt. securities by maturity—continued 1-5 years 5-10 years Over 10 years Exch. Exch. Exch. Gross Gross or Gross Gross or Gross Gross or purchases sales maturity purchases sales maturity purchases sales maturity shifts shifts shifts 1964—Jan Feb 3,481 -70 Mar 11 9 3 Apr 13 — 15 30 8 May 43 2,164 27 4 20 307 11 -307 5 July 187 -2,030 202 41 Sept 108 89 34 Oct 33 102 29 -102 11 Nov 28 35 — 35 Dec 52 335 45 — 335 5 1965—Jan Repurchase agreements (U.S. Govt. securities) Net change Bankers' acceptances Net change in U.S. in U.S. Govt. Govt. securities and Gross Gross securities Net Net acceptances purchases sales outright repurchases 1964 Jan 42S) 440 -840 2 -92 -934 Feb 12'f 127 416 -4 412 Mar 49'f 338 601 4 64 662 Apr n:y 280 -601 -7 -25 -633 May 68:; 734 1,060 -7 -39 1,014 June 62"5 625 566 36 602 July l,07() 1,021 257 -7 -21 229 684I 733 113 -4 -16 93 Sept 8i:> 712 186 2 61 249 O N c o t v 1,3 6 1 8: : f 1,3 7 1 8 3 2 1,0 3 6 5 5 9 6 - - 1 2 8 3 1 3 0 4 4 1 8 Dec 2,194 1,657 269 15 15 300 1965—Jan 1,75: 2,171 -303 -1 22 -281 NOTE.—Sales, redemptions, and negative figures reduce System holdings; all other figures increase such holdings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BANKS MARCH 1965 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1965 1964 1965 1964 Feb. 24 Feb. 17 Feb. 10 Feb. 3 Jan. 27 Feb. Jan. Feb. Assets 13,092 13,092 13,092 13,242 13,317 13 112 13 352 13 774 Redemption fund for F.R. notes 1,549 1,551 1,554 1,562 1,554 1,549 1,554 1,411 14,641 14,643 14,646 14,804 14,871 14,661 14,906 15,185 Cash 164 170 172 185 179 175 193 299 Discounts and advances: 87 184 99 710 189 255 259 570 Other 45 45 45 45 4^ 45 45 Acceptances: Bou&ht outricht .. .. •• 55 57 58 58 57 54 58 64 48 73 63 63 17 57 U.S. Govt. securities: Bought outright: Bills . 6,085 6,658 6,671 6,687 5,943 6,281 6,159 3,728 Certificates—Special Other 3,265 Notes 25,697 25,668 25,188 25,188 25,188 25,697 25,188 21,621 Bonds 4,846 4,794 5,274 5,274 5,274 4,846 5,274 4,555 Total bought outright . • 36,628 37,120 37,133 37,149 36,405 36,824 36,621 33,169 Held under repurchase agreements 53 166 109 238 318 83 120 Total U.S. Govt. securities 36,681 37,286 37,242 37,387 36,723 36,907 36,741 33,169 36,868 37,620 37,517 38,263 37,077 37,278 37,160 33,803 5,829 6,843 5,648 5,817 5,852 5,876 5,330 5,010 102 102 102 102 102 102 102 102 Other assets: 193 188 166 249 455 165 287 271 All other 256 236 398 375 361 268 367 264 Total assets 58,053 59,802 58,649 59,795 58,897 58,525 58,345 54,934 Liabilities F.R. notes 33,881 33,866 33,937 33,784 33,747 33,781 33,706 31,182 Deposits: 16 883 17 886 17 335 18 404 17 820 17 903 17 801 17 146 919 111 907 1,025 907 988 929 1,024 134 136 143 138 133 154 143 155 Other 209 195 192 211 194 210 218 207 18,145 18,994 18,577 19,778 19,054 19,255 19,091 18,532 4,284 5,217 4,299 4,420 4,318 3.732 3,753 3,539 Other liabilities and accrued dividends 599 604 645 648 635 602 638 90 Total liabilities 56,909 58,681 57,458 58,630 57,754 57 370 S7 188 53 343 Capital Accounts 532 529 529 528 528 532 528 507 524 524 524 524 524 524 524 990 Other capital accounts 88 68 138 113 91 99 105 94 Total liabilities and capital accounts 58,053 59,802 58,649 59,795 58,897 58,525 58,345 54,934 Contingent liability on acceptances purchased for 118 119 120 122 123 118 122 95 U.S. Govt. securities held in custody for foreign 8,136 8,034 7,946 7,979 8.188 8,100 7,952 8,731 Federal Reserve Notes—Federal Reserve Agents* Accounts 36,566 36,614 36,639 36,748 36,886 36,567 36,832 33,606 Collateral held against notes outstanding: 6,647 6,702 6,567 6,567 ,727 6 647 6 727 6 607 Eligible paper 6 7 6 19 12 5 6 54 U.S. Govt. securities 31,355 31,340 31,480 31,505 31,329 31,355 31,329 28,387 38,008 38,049 38,053 38,091 38,068 38,007 38,062 35,048 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 FEDERAL RESERVE BANKS 439 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1965 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C l l a e n v d e- m Ri o c n h d - At t l a an- c C a h g i o - Lo S u t. is M ap in o n li e s - K C s a a it n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 13,112 618 3,340 667 1,123 818 838 2,159 486 259 567 584 1,653 Redemption fund for F.R. notes 1,549 88 347 86 135 134 92 284 62 29 62 50 180 Total gold certificate reserves 14,661 706 3,687 753 1,258 952 930 2,443 548 288 629 634 1,833 F.R. notes of other Banks 781 71 225 52 67 54 92 54 35 16 14 40 61 Other cash . 175 13 38 6 15 10 17 27 8 6 8 6 21 Discounts and advances: Secured by U.S. Govt. securities... 164 12 44 3 5 4 19 18 3 22 17 1 16 Other 136 2 101 2 4 2 3 6 2 1 4 3 6 Acceptances: Bought outright 54 54 Held under repurchase agreements. 17 17 U.S. Govt. securities: Bought outright 36,824 1,945 8,895 1,985 2,995 2,654 1,984 6,279 1,417 790 1,466 1,481 4,933 Held under repurchase agreements. 83 83 Total loans and securities 37,278 1,959 9,194 1,990 3,004 2,660 2,006 6,303 1,422 813 1,487 1,485 4,955 Cash items in process of collection... 7,339 500 1,431 449 493 541 539 1,262 332 208 486 396 702 Bank premises 102 3 g 3 6 5 19 21 6 4 6 11 10 Other assets: Denominated in foreign currencies. 165 8 143 9 15 8 10 23 6 4 7 10 22 All other 268 13 65 14 21 19 15 45 10 4 13 10 39 Total assets 60,769 3,273 14,691 3,276 4,879 4,249 3,628 10,178 2,367 1,343 2,650 2,592 7,643 Liabilities F.R notes . ... 34,562 2,049 8,044 2,022 2,943 2,963 1,999 6,277 1,375 629 1,329 1,068 3,864 Deposits: M^ember bank reserves .. 17,903 651 4,814 733 1,292 776 1,022 2,764 638 448 851 1,053 2,861 U.S. Treasurer—General account.. 988 59 191 74 110 18 61 148 53 61 61 63 89 Foreign 154 6 2 58 7 12 7 8 18 4 3 6 8 17 Other 210 # 130 2 4 1 2 1 * 2 1 61 Total deposits 19,255 716 5,193 816 1,414 805 1,092 2,932 696 512 920 1,125 3,034 Deferred availability cash items 5,195 424 994 342 366 389 436 711 235 162 324 301 511 Other liabilities 602 29 157 33 53 33 34 90 21 14 26 32 80 Total liabilities 59,614 3,218 14,388 3,213 4,776 4,190 3,561 10,010 2,327 1,317 2,599 2,526 7,489 Capital Accounts Capital paid in 532 25 140 29 48 27 31 76 18 12 24 31 71 Surplus 524 25 137 29 47 26 31 75 18 12 23 31 70 Other capital accounts 99 5 26 5 8 6 17 4 2 4 4 13 Total liabilities and capital accounts.. 60,769 3,273 14,691 3,276 4,879 4,249 3,628 10,178 2,367 1,343 2,650 2,592 7,643 Ratio of gold certificate reserves to deposit and F.R. note liabilities combined (per cent): Feb. 28, 1965 27.2 25.5 27.9 26.5 28.9 25.3 30.1 26.5 26.5 25.2 28.0 28.9 26.6 Jan. 31, 1965 27.7 25.7 29.1 28.4 27.7 27.5 28.1 26.2 29.4 30.3 29.1 26.9 26.4 Feb 29 1964 30.1 31.1 32.9 30.3 30.8 28.9 30.0 27.5 31.1 29.6 32.0 29.6 26.8 Contingent liability on acceptances purchased for foreign correspondents 118 5 3 31 6 11 6 7 17 4 3 5 7 16 Federal Reserve Notes—Federal Reserve Agent's Accounts F.R. notes outstanding (issued to Bank) . ... 36,567 2,136 8,566 2,093 3,178 3,081 2,160 6,614 1,451 658 1,384 1,150 4,096 Collateral held against notes outstanding: Gold certificate account 6,647 420 1,710 435 500 610 340 1,100 280 112 225 180 735 Elisible oaoer 5 2 3 U.S. Govt. securities 31,355 1,765 7,200 1,800 2,775 2,500 1,850 5,700 1,260 555 1,200 1,050 3,700 Total collateral 38,007 2,185 8,910 2,237 3,275 3,110 2,190 6,800 1,543 667 1,425 1,230 4,435 1 After deducting $122 million participations of other Federal Reserve 3 After deducting $87 million participations of other Federal Reserve Banks. Banks. 2 After deducting $96 million participations of other Federal Reserve Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BANKS; BANK DEBITS MARCH 1965 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1965 1964 1965 1964 Feb. 24 Feb. 17 Feb. 10 Feb. 3 Jan. 27 Feb. Jan. Feb. Discounts and advances—Total 132 229 144 755 234 300 304 570 Within 15 days 110 182 98 708 187 282 256 568 16 days to 90 days 22 47 46 47 47 18 48 2 91 days to 1 year Acceptances—Total 55 105 131 121 120 71 115 64 Within 15 days 17 62 83 75 76 34 71 20 16 days to 90 days 38 43 48 46 44 37 44 44 U.S. Government securities—Total 36,681 37,286 37,242 37,387 36,723 36,907 36,741 33,169 Within 15 days i 962 1,271 1,664 1,807 1,423 662 1,305 454 16 days to 90 days 7,159 7,348 3,246 3,237 3,233 7,649 3,335 8,371 91 days to 1 year 14,635 14,822 16,734 16,745 16,469 14,671 16,503 9,909 Over 1 year to 5 years 11,799 11,753 13,506 13,506 13,506 11,799 13,506 12,149 Over 5 years to 10 years 1,820 1,797 1,797 1,797 1,797 1,820 1,797 2,067 Over 10 years 306 295 295 295 295 306 295 219 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 equivalent) End of period Total P st o e u rl n in d g s B fr e a l n gi c a s n C d a o n l a l d ar ia s n F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese N l e a t n h d e s r- f S ra w n i c s s s guilders 1964—May. 213 1 51 101 50 June, 124 16 52 2 50 July. 168 29 52 2 80 Aug., 195 61 45 2 80 Sept. 164 90 15 2 51 Oct.. 74 32 2 2 31 Nov. 727 717 1 2 1 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to (I n d e b m il a li n o d n s d e o p f o d s o it l l a a c rs c ) ounts * 2 Turnover of demand deposits * 2 Period S T M 2 o 2 S t 5 a A l 's N Le .Y ad . ing S 6 M o S t A he 's rs 3 T c o N ( e t e a n . x Y l t c e 2 . l r ) . 2 s 4 SM o 2 th S 1 e 8 A r 's S T M 2 o 2 S t 5 a A l 's N Le .Y a . ding S 6 M o S t A he 's rs3 T S o N M ( t e a . x S Y l c A 2 . l ) . 2 's 4 SM o 2 th 1 S e 8 A r 's 1964—Jan 4,486.5 1,915.0 989.6 2,571.5 1,581.9 43.9 87.3 40.5 32.3 28.7 Feb 4,359.2 1,768.9 986.3 2,590.3 1,604.0 43.9 87.1 41.6 32.6 28.8 Mar 4,419.5 1,822.2 999.5 2,597.3 1,597.8 43.8 86.6 40.4 32.6 29.0 Apr 4,603.0 1,909.2 1,038.4 2,693.8 1,655.4 45.1 89.8 42.1 33.2 29.4 M!ay 4,542.0 1,853.6 1,030.0 2,688.4 1,658.4 45.2 89.8 43.1 33 5 29 5 June 4,535.4 1,928.0 992.5 2,607.4 1,614.9 45.0 91.2 40.9 32.9 29.3 July 4,833.7 2,087.0 1,058.9 2,746.7 K687.8 46.3 95.8 42 3 33 3 29 4 Aug 4,579.9 1,898.2 1,021.3 2,681.7 1,660.4 44.7 89.3 42.4 33.0 29.1 Sept 4,763.5 2,007.6 1,049.5 2,755.9 L,706.4 44.3 88.5 41.4 32.9 29.2 Oct 4,698.2 1,926.7 1,060.6 2,771.5 1,710.9 44.6 89.8 40.9 32 8 29 3 4,648.0 1,917.7 1,023.7 2,730.3 1,706.6 45.1 91.3 41.0 33.2 29.5 Dec 4,816.5 2,013.0 1,065.4 2,803.5 1,738.1 45.5 90.7 41.7 33.4 30.0 1965—Jan.2 4,870.9 2,067.6 1,065.5 2,803.3 1,737.8 46.3 94.8 42.8 33.8 30.0 Feb 4,842.5 1,997.4 1,077.2 2,845.1 1,767.9 47.1 96.1 44.3 34.6 30.5 1 Excludes interbank and U.S. Govt. demand deposits accounts. NOTE.—Total SMSA's include some cities"and counties not designated 2 The figures shown here are revised from those shown on the G.6 re- as SMSA's. lease Feb. 19, 1965. See p. 390 for article on revision of series. 3 Boston, Philadelphia, Chicago, Detroit, San'Francisco-Oakland, and Los Angeles-Long Beach. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 U.S. CURRENCY 441 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir - tion i Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 ,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 3 5 I960 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 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 37,692 26,807 3,030 ,722 103 2,469 7,373 12,10910,885 3,221 7,110 249 298 3 4 1964—Jan 36,247 25,500 3,021 1,599 101 2,287 6,958 11,53310,747 3,157 7,043 247 294 3 4 Feb 36,312 25,561 3,044 1,590 101 2,278 6,983 11,566 10,751 3,147 7,057 246 293 3 4 Mar 36,799 26,000 3,105 671 102 2,321 7,096 11,75410,799 3,158 7,094 246 294 3 4 Apr 36 885 26,063 3,139 1,630 103 2,320 7,095 11,775 10,822 3,172 7,104 247 292 3 4 May 37,208 26,353 3,169 1,655 105 2,350 7,170 11,90410,855 3,185 7,127 246 291 3 4 June 37,734 26,797 3,205 1,676 107 2,379 7,280 12,151 10,937 3,217 7,175 246 292 2 4 July. 37,835 26,859 3,223 1,668 108 2,359 7,262 12,239 10,976 3,231 7,202 245 291 3 4 Aug 38,014 26,972 3,249 1,668 109 2,364 7,272 12,31011,041 3,249 7,248 245 292 3 4 Sept 38,166 27,068 3,285 1,693 111 2,361 7,280 12,33911,098 3,253 7,302 246 291 3 4 Oct 38,373 27,201 3,321 1,716 111 2,385 7,328 12,339 11 172 3 262 7,367 246 291 3 4 Nov 39,248 27,925 3,359 1,749 108 2,455 7,568 12,68711,323 3,314 7,468 246 289 3 4 Dec 39,619 28,100 3,405 1,806 111 2,517 7,543 12,71711,519 3,381 7,590 248 293 2 4 1965—Jan 38,540 27,158 3,435 1,709 110 2,381 7,256 12,267 11,382 3,321 7,519 246 290 2 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the Reserve Banks for which a denominational NOTE.—Condensed from Circulation Statement of United States breakdown is not available. Money, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation* Held by Total out- F.R. Kind of currency s J t a a 1 n n 9 . d 6 3 i 5 n 1 g , A g a s 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 Ja 1 n 9 . 6 3 5 1, De 1 c 9 . 6 3 4 1, Ja 1 n 9 . 6 3 4 1, certificates Agents Gold 15,185 (14,906) 2280 Gold certificates (14,906) 312,090 2,816 F.R. notes 36,833 121 3,127 33,585 34,573 31,034 Treasury currency—Total. 5,400 (1,267) 252 193 4,955 5,046 5,214 Standard silver dollars 485 3 * 482 482 455 Silver bullion 1,488 1,267 221 Silver certificates (1,267) 13 134 1,120 1,231 1,722 Subsidiary silver coin 2 202 9 21 2,172 2,147 1,859 Minor coin 792 4 6 782 116 708 United States notes 323 1 33 289 299 306 In process of retirement1* . . 111 * * 110 110 164 Total—Jan. 31 1965 557,419 (16,173) 653 12,090 6,136 38,540 Dec 31 1964 558,025 (16,423) 612 12,259 5,535 39,619 Jan. 31 1964 554,976 (17,201) 416 12,414 5,898 "36," 247* 1 Outside Treasury and F.R. Banks. Includes any paper currency held for other items; gold certificates are secured by gold, and silver certificates outside the United States and currency and coin held by banks. Esti- by standard silver dollars and monetized silver bullion. Duplications mated totals for Wed. dates shown in table on p. 431. are shown in parentheses. 2 Includes $156 million reserve against United States notes. 3 Consists of credits payable in gold certificates: (1) the Gold Certificate NOTE.—Condensed from Circulation Statement of United States Fund—Board of Governors, FRS, and (2) the Redemption Fund for F.R. Money, issued by the Treasury. For explanation of currency reserves notes. and security features, see the Circulation Statement or the Aug. 1961 * Redeemable from the general fund of the Treasury. BULL., p. 936. 5 Does not include all items shown, as some items represent the security Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 MONEY SUPPLY MARCH 1965 MONEY SUPPLY AND RELATED DATA (In billions of dollars) Seasonally adjusted Not seasonally adjusted Money supply Money supply Period Time Time U.S. deposits deposits Govt. Currency Demand ad- Currency Demand ad- demand Total component co d m ep p o o s n i e t nt justed i Total component co d m ep p o o s n i e t nt justed i deposits * 1957—Dec , 135.9 28.3 107.6 57.4 139.3 28.9 110.4 56.7 3.5 1958—Dec 141.1 28.6 112.6 65.4 144.7 29.2 115.5 64.6 3.9 1959 Dec 142.1 28.9 113.2 67.4 145.6 29.5 116.1 66.6 4.9 I960 Dec 141.1 28.9 112.1 72.9 144.7 29.6 115.2 72.1 4.7 1961 Dec 145.5 29.6 116.0 82.8 149.4 30.2 119.2 81.8 4.9 1962—Dec 147.6 30.6 117.1 97.9 151.6 31.2 120.3 96.7 5.6 1963—Dec 153.2 32.4 120.7 112.3 157.2 33.1 124.1 111.0 5.2 1964 Dec.. 159.4 34.2 125.2 126.5 163.6 34.9 128.7 125.0 5.5 1964 Jan 153.8 32.6 121.2 113.9 157.8 32.4 125.4 113.2 4.2 Feb 153.8 32.7 121.1 115.1 153.8 32.3 121.5 114 6 4.8 Mar 154.2 32.9 121.3 115.7 152.9 32.6 120.3 115.7 6.1 Apr 154.5 33.0 121.5 116.4 155.0 32.7 122.3 116.7 4.2 May . 154.5 33.3 121.3 117.4 152.4 33.0 119.4 118.1 6.9 June 155.6 33.4 122.1 118.5 153.6 33.3 120.3 119.2 7.8 July 156.7 33.5 123.3 119.4 155.2 33.7 121.5 120.1 7.0 Aug 157.2 33.7 123.5 120.6 155.1 33.8 121.3 121.1 6.4 Sept 158.0 33.8 124.2 121.7 156.9 33.8 123.1 122.0 6.6 Oct. 158.6 33.9 124.7 123.1 158.8 34.0 124.8 123.3 5.6 Nov 159.1 34.2 124.9 125.1 160.4 34.5 125.9 124.1 5.8 Dec 159.4 34.2 125.2 126.5 163.6 34.9 128.7 125.0 5.5 1965—Jan.. 159.8 34.5 125.3 128.9 163.9 34.3 129.6 128.1 4.2 Feb .. 159.1 34.6 124.5 131.1 159.0 34.2 124.9 130.6 5.8 Half month 1964—Nov.(l) 159.3 34.2 125.1 124.4 161.0 34.5 126.5 124.0 4.6 (2) 158.8 34.2 124.6 125.8 159.8 34.6 125.2 124.1 7.0 Dec (1) 159.4 34.2 125.2 126.3 162.8 34.9 128.0 124.7 4.9 (2) 159.4 34.2 '125.2 126.7 164.4 35.0 129.4 125.3 6.1 1965—Jan. (1) 160.1 34.4 125.8 128.0 165.3 34.6 130.8 127.2 4.7 (2) 159.5 34.5 124.9 129.7 162.5 34.1 128.5 128.9 3.7 Feb. (1) 159.3 34.6 124.7 130.8 160.7 34.3 126.4 130.2 4.8 (2) 158.8 34.5 124.3 131.6 157.1 34.0 123.1 131.1 6.9 Not seasonally adjusted Not seasonally adjusted Money supply Money supply Week Time U.S. Week Time U.S. ending— Currency Demand dep a o d s - its d G em ov an t. d ending— Currency Demand dep a o d s - its d G em ov an t. d Total compo- deposit justed * deposits 1 Total compo- deposit justed 1 deposits * nent compo- nent component nent 1963—Nov. 6 155.0 32.3 122.7 110.2 4.2 1964— Nov. 4 160.6 34.0 126.6 123.9 5.1 13 155.2 32.7 122.5 110.2 3.6 11 160.8 34.6 126.3 124.1 4.5 20 154.4 32.6 121.8 110.1 4.7 18 160.9 34.5 126.4 124.0 5.4 27 153.8 32.6 121.2 110.4 4.9 25 159.3 34.5 124.8 124.1 6.9 Dec. 4 155.5 33.0 122.5 110.5 4.5 Dec. 2 160.8 34.6 126.1 124.2 7.2 11 156.4 33.3 123.1 110.8 3.8 9 161.8 35.0 126.9 124.6 5.5 18 158.2 33.1 125.1 111.0 4.2 16 164.6 34.8 129.8 125.0 3.6 25 157.5 33.3 124.3 111.0 6.6 23 164.6 35.0 129.6 125.0 5.7 30 163.8 35.1 128.7 125.5 6.6 1964—Jan. 1 158.8 32.8 126.0 111.5 6.6 8 158.7 32.9 125.8 112.3 6.4 1965—Jan. 6 166.2 34.8 131.4 126.5 6.4 15 158.4 32.6 125.8 113.0 4.2 13 164.7 34.5 130.2 127.6 4.0 22 158.1 32.4 125.7 113.6 3.1 20 164.0 34.2 129.8 128.3 2.9 29 156.2 32.0 124.1 113.7 2.9 27 162.0 34.0 128.0 129.1 3.8 Feb. 5 156.1 32.2 123.9 113.9 3.6 Feb. 3 162.0 34.0 128.0 129.5 4.6 12 155.5 32.5 123.0 114.4 3.6 10 160.9 34.4 126.5 130.1 4.7 19 153.2 32.3 120.9 114.7 5.3 17 159.2 34.2 125.0 130.7 5.3 26.... 151.5 32.2 119.4 114.9 6.0 24 156.2 34.1 122.1 131.0 7.2 Mar. 4 152.4 32.3 120.1 115.2 5.7 Mar. 3 158.5 34.1 124.4 131.4 6.7 11 153.1 32.7 120.4 115.6 4.6 10?.... 158.7 34.5 124.2 132.0 5.3 18 154.5 32.7 121.8 115.8 4.6 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 N OTE.—Averages of daily figures. For back data see June 1964 BULL., Treasury, the FRS, and the vaults of all commercial banks. Time depp. 679-92. Money supply consists of (1) demand deposits at all com- posits adjusted are time deposits at all commercial banks other than those merc ial banks other than those due to domestic commercial banks and due to domestic commercial banks and the U.S. Govt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BANKS AND THE MONETARY SYSTEM 443 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net- Date T c u r u e r a r y - s- u.s. Government securities l T ia o b t i a l l - Total Ca a p n i d tal Gold s r t o e i a n u n n g t c d - y - Total Lo n a e n t s, Total m C a e o n r m c d i - al R Fe e d se e r r v a e l Other O s ri e t t c h ie u e s - r ca a n p n e i d t t al, c d u e r a p r n o e d s n i c t y s c m o n a u i c e s n - t c t . s, savings Banks banks 1929—June 29 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941_Dec. 31 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945_Dec 31 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947—Dec. 31 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,009 184,384 14,624 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—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 June 29 15,733 5,587 318,697 178,290 102,418 69,708 32,027 683 37,989 340,017 310,284 29,732 Dec 20 15,582 5,586 333,203 189,433 103,273 69,068 33,552 653 40,497 354,371 323,251 31,118 1964—Feb 26... 15,500 5,600 330,400 188,700 101,100 67,500 32,900 700 40,600 351,400 319,400 32,000 May 27 15,500 5,600 336,900 195,900 99,700 65,200 34,000 500 41,300 358,000 325,100 32,900 June 30 15,461 5,578 343,988 201,161 100,879 65,337 34,794 748 41,948 365,027 333,114 31,915 July 29 15,500 5 600 341,300 199 300 99,900 64,300 34,800 700 42,100 362,300 329,500 32,800 Aug. 26 15,500 5,600 344,000 200,600 100,700 64,900 35,100 800 42,700 365,100 331,100 34,000 Sept. 30 r» 15,500 5,600 351,100 205,000 102,800 66,700 35,400 700 43,400 372,100 338,400 33,700 Oct. 28 r* 15,500 5,500 350,600 204,000 103,100 67,000 35,200 900 43,500 371,600 337,700 33,900 Nov. 25 r* 15,400 5,500 355,400 206,500 105,300 68,100 36,300 1,000 43,600 376,200 341,500 34,800 Dec. 30 r* 15,400 5,400 361,700 212,300 105,400 67,800 36,800 900 43,900 382,500 348,900 33,500 1965 Jan 27 v 15,200 5,400 359,500 210,500 104,600 66,900 36,700 1,000 44,400 380,100 346,200 33,800 Feb. 24 P 14,900 5,400 361,500 212,700 103,700 65,900 36,700 1,100 45,000 381,800 346,700 35,200 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted * Not seasonally adjusted Time U.S. Government Date For- At Cur- De- Cur- De- Postal eign Treas- comrency mand rency mand Com- Mutual Savings net 3 ury mer- At Total o b u a t n si k d s e dep ad o - sits Total o b u a t n si k d s e dep ad o - sits Total m b e a r n c k ia s l b sa a v n i k n s g s 2 S te y m s- h c o a l s d h - a c n ia d l B F a .R nk . s justed i justed i ings savings banks 1929—June 29 26,179 3,639 22,540 28,611 19,557 8,905 149 365 204 381 36 1933 June 30.... 19,172 4,761 14,411 21,656 10,849 9,621 1,186 «»n 264 852 35 1939 Dec 30 ... 36,194 6,401 29,793 27,059 15,258 10,523 1,278 1,217 2,409 846 634 1941_Dec. 31 48,607 9,615 38,992 27,729 15,884 10,532 1,313 :1,498 2,215 1,895 867 1945 Dec 31.... 102,341 26,490 75,851 48,452 30,135 15,385 2,932 U41 2,287 24,608 977 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,247 36,314 20,009 2,923 1,518 1,293 2,989 668 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—Dec. 28.... 147,600 29,600 118,000 153,162 30,904 122,258 139,448 97,440 41,478 530 1,488 405 7,090 602 1963—June 29.... 148,300 30,700 117,600 147,144 31,832 115,312 149,322 105,648 43,181 493 1,337 369 11,306 806 Dec. 20.... 153,100 31,700 121,400 158,104 33,468 124,636 155,713 110,794 44,467 452 1,206 392 6,986 850 1964—Feb. 26 ... 151,200 32,000 119,200 150,400 31,600 118,800 160,600 114,800 45,400 400 ,100 500 6,000 800 May 27.... 151,900 32,500 119,400 150,000 32,400 117,600 165,100 118,400 46,300 400 ,300 400 7,400 900 June 30.... 153,500 32,700 120,800 153,331 33,020 120,311 166,627 119,330 46,882 415 1,324 391 10,502 939 July 29.... 154,000 32,800 121,200 154,000 32,900 121,000 167,700 120,300 47,100 400 1,300 400 5,300 700 Aug. 26.... 154,300 32,900 121,400 152,900 33,100 119,800 169,000 121,200 47,400 400 1,400 400 6,300 1,100 Sept. 30'*.. 156,800 33,100 123.700 155,800 33,200 122,600 170,400 122,100 47,900 400 1,400 400 9,400 900 Oct. 28 r*\. 157,500 33,300 124,200 158,100 33,200 124,900 172,000 123,500 48,100 400 1,400 500 5,000 700 Nov. 25 '».. 156,600 33,400 123,200 159,000 34,300 124,700 172,500 123,800 48,300 400 1,500 600 7,200 800 Dec. 30'P.. 158,800 33,600 125,200 164,300 34,300 130,000 175,000 125,600 49,000 400 1,700 600 6,600 800 1965—Jan. 27*... 158,100 33,900 124,200 160,200 33,400 126,800 178,700 128,900 49,400 400 ,500 700 4,200 900 Feb. 24*... 156,900 33,900 123,000 156,100 33,500 122,600 180,600 130,700 49,600 400 1,500 700 6,800 900 1 Series begin in 1946; data are available only for last Wed. of month. NOTE.—For back figures and descriptions of the consolidated condition 2 Other than interbank and U.S. Govt., less cash items in process of statement and the seasonally adjusted series on currency outside banks collection. and demand deposits adjusted, see "Banks and the Monetary System,'* 3 Includes relatively small amounts of demand deposits. Beginning Section 1 of Supplement to Banking and Monetary Statistics. 1962, and with June 1961, also includes certain accounts previously classified as Jan. 1948 and Feb. 1960 BULLS. other liabilities. Except on call dates, figures are partly estimated and are rounded to * Rectification of deposits of foreign central banks in May 1961 the nearest $100 million. reduced this item by $1,900 million ($1,500 million to time deposits and $400 million to demand deposit*). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 COMMERCIAL AND MUTUAL SAVINGS BANKS MARCH 1965 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans G U o . S S v e . t c . urit O ie t s her a C ss a e s t h s i c c b T o a i a l a l u o p i i n c a t i n t - d i t - a e t a l s s l 2 Total i m I D n a e t n - e d rba T nk im 1 e U.S D . ema O nd ther Time 3 B r i o n o w g r s - - c c T a o a o p u c t i - n a ta t l s l b N a b u o n e m f r ks - Govt. Other All banks 1941—Dec. 31.. 61,126 26,615 25,511 8,99927,344 90,908 81,816 10,982 44,355 26,479 23 8,414 4,826 1945—Dec. 31.. 40,227 30,361 01,288 8,577"5,415 [77,332 65,612 14,065 105,935 45,613 227 0,542 4,553 1947—Dec. 314. 34,924 43,002 81,199 0,723 8,388175,091 61,865 2,793 240 1,346 94,381 53,105 66 1,948 4,714 1962—Dec. 28.. 280,397 72,822 72,56335,01254,939343,201 103,653 6,008 535 6,839141,084 39,188 635 28,046 3,940 1963—June 29. . 287,411 79,714 69,70837,989"2,046347,896 109,428 5,042 551 il,069 133,681 49,083 28,612 3,993 Dec. 20. . 502,251 92,686 69,068 4'"0,497 1,536362,394 119,636 5,267 528 6,734141,576 55,531 702 29,882 4,079 1964—Feb. 26. . 299,450 91,340 67,530 40.580 48,830 156,940 114,550 3,960 590 5,730133,850 60,420 3,32029,870 4,113 May 27.. 505,660 99,210 65,150 41 i300 48,850 163,420 119,500 3,680 630 7,200133,080 64,910 3,56030,620 4,154 June 30.. 510,404 220033,119 65,337 41;94854,073 173,909 131,843 5,272 678 [0,263139,160 66,469 2,120 31,037 4,175 July 29.. 509,330202,950 64,310 42:07048,580 166,950322,830 3,770 690 5,110 135,690 67,570 3,95030,870 4,195 Aug. 26. . 511,540 220033,920 64,900 42:72048,810 169,080324,710 4,390 680 6,040134,760 68,840 3,54031,110 4,203 Sept. 30 rP 517,630 2—0 7,530 66,710 43;39053,680 181,020336,980 5,820 690 9,180 141,030 70,260 2,76031,500 4,230 Oct. 28r* 517,860 207,340 66,980 43;540•1,880 179,130333,810 5,360 710 4,740 141,160 71,840 3,94031,610 4,242 Nov. 25 r* 522,390210,720 68,080 43;590 2,960 184,860338,290 5,460 700 6,990142,820 72,320 4,50031,800 4,251 Dec. 30 rP "28,310216,600 67,780 43;930 6,550 194,420347,910 6,470 800 6,340149,470 74,830 4,730 32,010 4,266 1965—Jan. 27». 525,810214,530 66,850 44,430 11,800387,260341,280 4,800 880 3,990143,050 78,560 4,40032,050 '14,290 Feb. 24P. "27,860216,890 65,940 45,03052,410389,770342,800 4,890 930 6,590139,890 80,500 4,330 12,210 4,291 Commercial banks: 1941—Dec. 31.. 50,746 21,714 21,808 7,22526,551 79,104 71,283 10,982 44,349 15,952 23 7,17314,278 1945—Dec. 31.. 24,019 26,083 90,606 7,3_3_1. 34,806 60,312 50,227 14,065 105,921 30,241 219 8,95014,011 1947—Dec. 314. 16,284 38,057 69,221 9,000066 37,502]155,377 44,103 2,792 240 1,343 94,367 35,360 65 0,059 14,181 1962—Dec. 28. . 235,839 40,106 66,43429,29854,049 229977,116 »62,122 6,008 535 6,829141,041 97,709 3,62724,094 13,429 1963—June 29. . 241,014 45,049 63,,554422 3"2,423 156 299,875 166,179 5,042 550 1,060 133,624105,903 1,545 24,582 13,482 Dec. 20.. 254,162 56,006 63,196 34,95950,711312,773 >75,120 5,267 526 6,729 141,53'4 111,064 3,66425,677 13,570 1964—Feb. 26. . 250,590 54,000 61,540 35,050 47 930 306,340 269,090 3,960 590 730133,790115,020 3,32025,670 3,604 May 27.. 255,720 60,860 59,110 35,750 48 000 311 ,810273,17'"0 3,680 630 200133,030118,630 3,56026,380 13,647 June 30.. 260,179 64,463 59,322 36,394 168 321,909 284,903 5,272 67710,257139,110119,587 2,09926,76813,669 July 29. . 258,640 63,840 58,280 36 520 47720 314,530 275,71013,770 690 110135,640120,500 3,95026,59013,689 Aug. 26. . 260,330 64,400 58,800 37 130 47910 316,090277,230 4,390 680 040134,710121,410 3,54026,76013,697 Sept. 30^. 266,060 67,640 60,630 37,79052 800 327680 289,020 5,820 690 180 140,980122,350 2,760 27,12013,724 Oct. 28P. 266,160 67,070 61,130 37^60 50 980 325640 285,630 5,360 710 740141,110123,710 3,94027,25013,736 Nov. 25^. 270,360 70,060 62,290 381,010 060 331,030 289,900 5,460 700 6,990142770 123,980 4,50027,38013,746 Dec. 30P. 275,980 75,550 62,000 381,430 550 340,200 298,88016,470 800 6,340149420 125,850 4,73027,61013,761 1965—Jan. 27*>. 272,930173,030 60,99038,91050,850 332,500 291,800 4.800 880 3,990143,000129,130 4,40027,650 13,785 Feb. 24*. 274,670 75,150 59,990 39,53051,410 334,700293,160 4,890 930 6,590139,840130,910 4,33027,76013,787 Member banks: 1941—Dec. 31.. 43,521 18,021 19,539 5,96123,123 68,121 61,717 0,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.. 07,183 22,775 78,338 6,07029,845138,304 29,67013,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31.. 97,846 32,628 57,914 7,30432,845132,060 22,52812,353 50 1,176 80,609 28,340 54 8,464 6,923 1962—Dec. 28 . . 95,698118,637 52,96824,092 4"7,427249,488 19,46815,309 358 6;008866 117,999 79,716 3,55019,854 6,049 1963—June 29.. 99,495122,088 50,39927,008 44,929251,214 22222,61914,388 373 9,,776611 111,548 86,550 1,4 4~0 20,238 6,058 Dec. 20.. 210,127131,712 49,342 29;073 44,395261,469 29,37614,518 382 55,998866 117,562 90,929 3,49921,054 6,112 1964—Feb. 26. . 206,916129,888 47,873 29.155 41969255,804 223,94013,275 448 5,044110,823 94,350 3,16621,172 6,130 May 27. . 211,293135,665 45,979 29:649 41,983260,441227,45913,022 489 6,440 110,182 97,326 3,38921,719 6,161 June 30.. 215,132138,649 46,235 30;249 46,767269,437238,05214,527 525 9,342115,624 98,034 1,,993366 2222,060 6,180 July 29.. 213,635 113388,042 45,22330 370 41,732262,606229,42913,078 536 4,636 112,319 98,860 3,74021,947 6,186 Aug. 26. . 215,030138,478 45,65130,90141,830263;825 230;64213,661 531 ,411111,458 99,581 3,,335544 22 6,188 Sept. 30.. 220,105141,393 47,24531 467 46i,423274,302 24133115,056 542 8'460 H6;969 100;304 2,62422,382 6,204 Oct. 28. . 219,678140,646 47,458 31574 44,, 680_2.7.1,,.8.55237;65614,559 555 ,325116,793101,424 3,733 "2,2474 6,209 Nov. 25. . 223,153143,241 48,383 31529 45,689 276,406241,14114,646 551 6,319 030 101,595 4,297 22,560 6,221 Dec. 30.. 228,341148,138 48,260 31 943 48:,737284,712 249,336 15,614 649 5,782 084 103,207 4,48622,761 6,225 1965—Jan. 27. . 225,493145,830 47,29732,366 44,461277,606 242,78114,016 731 3,662118,307106,065 4,18622,799C6,236 Feb. 24*>. 227,093147,818 46,364 32,91144,750279,488 244,01814,138 779 5,958115,601107,542 3,97822,888 6,236 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. 314. 18,641 4,944 11,978 1,718 886 19,714 17,763 17,745 1,889 533 1962—Dec. 28.. 44,558 32,716 6,129 5,714 890 46,086 41,531 41,478 3,951 511 1963—June 29.. 46,397 34,665 6,166 5,566 890 48,020 43,248 43,180 4,031 511 Dec. 20.. 48,089 36,679 5,87f 5,539 826 49,621 44,516 44,467 4,205 509 1964—Feb. 26.. 48,860 37,340 5,990 5,530 900 50,600 45,460 45,400 4,200 509 May 27.. 49,940 38,350 6,040 5,550 850 51,610 46,330 46,280 4,240 507 June 30. . 50,226 38,656 6,016 5,554 905 52,000 46,940 46,882 21 4,269 506 July 29.. 50,690 39,110 6,030 5,550 860 52,420 47,120 47,070 4,280 506 Aug. 26.. 51,210 39,520 6,100 5,590 900 52,990 47,480 47,430 4,350 506 Sept. 30*-., 51,570 39,890 6,080 5,600 880 53,340 47,960 47,910 4,380 506 Oct. 28r., 51,700 40,270 5,850 5,580 900 53,490 48,180 48,130 4,360 506 Nov. 25 r., 52,030 40,660 5,790 5,580 900 53,830 48,390 48,340 4,420 505 Dec. 30'. 52,330 41,050 5,780 5,500 1,000 54,220 49,030 48,980 4,400 505 1965—Jan. 27*., 52,880 41,500 5,860 5,520 950 54,760 49,480 49,430 4,400 505 Feb. 24*. 53,190 41,740 5,950 5,500 1,000 55,070 49,640 49,590 4,450 504 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 445 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 t a - e a l s l Total i I D n e t - erbank * Dema O n t d her 1 B " i O n o W g r - s - c c T a o o a p u t c i n a t - t a l s l b N a b u o n e m f r ks - Govt. Other co a u c n - ts2 mand Time U.S. Other Time Govt. Reserve city member banks New York City: 5, 6, 7 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 1962—Dec. 28 32,989 21,954 7,017 4,017 11,050 46,135 37,885 4,783 207 1,408 22,231 9,256 1,728 3,898 17 1963—June 29 32,847 21,446 6,506 4,895 9,802 44,981 37,454 4,734 187 2,052 20,35110,131 794 3,931 13 Dec. 20 34,827 23,577 6,154 5,095 9,372 46,434 38,327 4,289 214 1,419 20,960 11,446 1,438 3,984 13 1964—Feb. 26 33,611 22,799 5,561 5,251 9,317 45,377 37,010 4,060 268 901 19,69412,087 1,320 4,184 13 May 27 35,467 24,544 5,619 5,304 9,393 47,346 38,590 4,071 295 1,349 19,67013,205 1,494 4,351 14 June 30 36,693 25,490 5,779 5,42410,550 49,716 41,545 4,711 317 2,112 21,224 1133,181 924 4,402 14 July 29 35,963 25,179 5,322 5,462 8,669 47,137 38,475 3,993 341 987 19,60613,548 1,476 4,388 14 Aug. 26 35,936 24,648 5,691 5,597 8,621 46,929 38,338 4,000 336 992 19,38313,627 1,365 4,421 14 Sept. 30 37,904 26,040 5,973 5,891 10,183 50,696 42,287 4,727 340 2,350 21,19913,671 938 4,447 14 Oct. 28 36,611 25,048 5,712 5,851 9,639 48,758 40,001 4,299 350 1,059 20,32413,969 1,345 4,436 13 Nov. 25 37,594 26,051 5,954 5,58910,103 50,171 40,753 4,394 333 1,261 20,67914,086 1,784 4,434 13 Dec. 30 39,852 27,733 6,127 5,992 10,975 53,356 43,684 4,782 417 1,425 22,792 '1 4,2682,157 4,472 13 1965—Jan. 27 38,271 26,573 5,630 6,068 9,427 50,166 40,890 4,274 457 795 20,67014,694 1,781 4,465 13 Feb. 24*> 38,950 27,570 5,122 6,258 9,218 50,803 41,574 4,359 499 1,083 20,44715,186 1,281 4,487 13 City of Chicago: 5 1941—Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947—Dec. 31 5,088 1,801 2,890 397 1,739 6,866 6,402 ',217 72 4,201 913 426 14 1962—Dec. 28 8,957 5,418 2,129 ,409 2,280 11,432 9,993 ,277 410 5,264 3,025 262 948 13 1963—June 29 9,082 5,545 2,071 ,466 2.136 11,440 10,141 ,202 584 4,840 3,499 111 974 12 Dec. 20 9,615 6,220 1,705 ,690 1,970 11,776 10,296 ,211 395 4,887 3,787 255 996 12 1964—Feb. 26 9,423 5,956 ,867 ,600 2,023 11,641 10,056 ,124 279 4,715 3,923 370 1,002 12 May 27 9,394 6,173 ,706 ,515 2,185 11,806 10,414 ,151 384 4,810 4,046 185 ,008 12 June 30 9,636 6,266 ,750 ,620 2,121 12,046 10,630 1,182 587 4,744 4,090 210 ,017 12 July 29 9,394 6,092 ,737 ,565 2,091 11,733 10,289 1,148 282 4,690 4,145 201 ,018 12 Aug. 26 9,638 6,311 ,717 ,610 1,930 11,817 10,351 1,229 298 4,652 4,149 197 ,024 12 Sept. 30 9,914 6,421 ,857 ,636 2,251 12,458 10,964 1,327 616 4,840 4,158 258 ,034 12 Oct. 28 9,788 6,404 ,791 ,593 2,234 12,305 10,802 1,238 288 4,939 4,314 255 ,034 12 Nov. 25 10,021 6,600 ,786 ,635 2,232 12,537 11,009 1,251 380 4,906 4,450 256 ,044 12 Dec. 30 10,419 7,003 ,853 ,563 2,363 13,077 11,433 1,264 399 5,250 4,499 313 1,055 12 1965—Jan. 27 10,245 6,767 ,850 ,628 2,163 12,703 11,177 1,153 259 5,076 4,663 232 1,046 12 Feb. 24^ 10,296 6,963 ,678 ,655 2,184 12,842 11,153 1,238 349 4,905 4,633 322 1,053 12 Other reserve city: ? 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,99011,423 1 2.844 353 1962—Dec. 28 73,130 46,567 18,398 8,165 19,539 94,914 84,248 7,477 82 2,337 43,609 3300,743 1,388 7,263 191 1963—June 29 74,614 48,164 17,326 9,124 1188,526 95,433 85,555 6,811 110 3,793 41,29133,549 407 7,440 194 Dec. 20 78,370 51,891 16,686 9,792 18,778 99,643 87,994 7,225 95 2,212 43,45935,004 1,417 7,697 190 1964—Feb. 26 77,289 51,529 15,994 9,766 96,845 85,456 6,449 105 2,062 40,,234 36,606 1,095 7,814 189 May 27 79,226 53,749 15,29410,183 98,750 86,814 6,231 115 2,708 40,009 37,751 ,301 8,032 183 June 30 80,466 54,604 15,48810,375 102,245 91,145 6,894 118 3,771 42,387 37,974 572 8,110 183 July 29 80,080 54,557 15,01810,505 99,824 87,609 6,320 115 1,875 41,155 38,144 ,647 8,125 184 Aug. 26 80,662 55,049 14,92210,691 100,348 88,169 6,732 116 2,151 40,740 38,430 ,415 8,173 185 Sept. 30 82,222 55,804 15,68010,738 104,065 91,950 7,217 115 3,244 42,689 38,685 ,150 8,324 185 Oct. 28 82,239 55,712 15,72210,805 103,165 90,422 7,152 118 1,685 42,618 38,849 ,725 8,357 184 Nov. 25 83,044 56,292 15,98610,766 104,306 91,299 7,102 132 2,580 42,85138,634 ,845 8,360 182 Dec. 30 84,683 57,907 15,92310,853 107,096 94,475 7,571 147 2,223 45,067 "3,9467 1,563 8,459 182 1965—Jan. 27 83,987 57,428 15,541 11,01818,353104,997 92,273 6,758 184 1,580 42,848 40,903 1,756 8,504 184 Feb. 24? 84,567 57,966 15,410 11,19118,114105,275 92,428 6,789 188 2,546 41,590 41,315 1,663 8,529 184 Country member banks: 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31 35,002 5,596 26,999 2,40810,632 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 ,056 432 28,37814,560 23 2,934 6,519 1962—Dec. 28 80,623 44,698 25,42510,50114,559 97,008 87,342 ,773 1,931 46,89536,692 172 7,144 5,828 1963—June 29 82,952 46,934 24,49611,52214,465 99,361 89,470 ,641 3,332 45,066 3"9,371 127 7,894 5,839 Dec. 20 87,316 50,023 24,79712,49614,274103,615 92,759 ,793 1,960 48,256 40,693 390 8,377 5,897 1964—Feb. 26 86,593 49,604 24,45112,53813,436101,941 91,418 ,642 1,802 46,180 41,734 381 8,172 5,916 May 27 87,206 51,199 23,36012,64713,,406102,539 91,641 ,569 1,999 45,693 42,324 409 8,328 5,952 June 30 88,337 52,289 23,21812,830 14,953105,430 94,733 ,739 2,872 47,270 42,788 230 8,531 5,971 July 29 88,198 52,214 23,14612,838 763103,912 93,056 ,617 1,492 46,868 43,023 416 8,416 5,976 Aug. 26 88,794 52,470 23,32113,003 094104,731 93,784 ,700 1,970 46,683 43,375 377 8,470 5,977 Sept. 30 90,065 53,128 23,73513,202 831107,083 96,130 ,785 2,250 48,24143,790 278 8,577 5,993 Oct. 28 91,040 53,482 24,23313,325 502107,627 96,431 ,870 1,293 48,912 44,292 408 8,647 6,000 Nov. 25 92,494 54,298 24,65713,539 708109,392 98,080 ,899 2,098 49,594 44,425 412 8,722 6,014 Dec. 30 93,387 55,495 24,35713,53515,642111,183 99,744 ,997 1,735 50,975 44,973 483 8,775 6,018 1965—Jan. 27 92,990 55,062 24,27613,65214,518109,740 98,441 ,831 1,028 49,713 45,805 417 8,784c6,027 Feb. 24*> 93,280 55,319 24,15413,80715,234110,568 98,863 ,752 1,980 48,659 46,408 712 8,819 6,027 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 COMMERCIAL AND MUTUAL SAVINGS BANKS MARCH 1965 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b t a e nk Total Loans U S .S e . curities as C s a et s s h * c b T a i a l l p o i n i a t t i - d i t a e a l s l Total i I D n e t - erbank 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 u o n e m f r k - s Govt. Other cou a n c- ts 1 mand Time U.S. Other Time Govt. Insured commercial banks: 1941—Dec. 31. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 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 80,276",876 215 8,67113,297 1947—Dec. 31. 114,274 37,583 67,941 8,750 36,926 152,733 141,85112,615 54 1,325 92.975 34,882 61 9,73413,398 1961—Dec. 30., 213,904124,348 66,026 23,531 56,086 276,600 247,17617,737 333 5,934 141,050 82,122 462 22,089 13,108 1962—Dec. 28. 234,243 113399,449 65,89128,903 53,702 295,093 260,609 "1,5844 402 6,815 140, 169 97,380 13,119 1963—Dec. 20., 252,579155,261 62,723 -3'4,594 50,337 310,730 273,657 15,077 443 6,771122 114400,,702 110,723 13,284 1964—June 30., 258,597163,715 58,880 36,002 52,845 319,913 283,46315,072 59110,234138,323119,243 035 26J358 13,394 National member banks: 1941—Dec. 31., 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945_Dec. 31. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,47316,224 78 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 45 5,409 5,005 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—Dec. 28., 127,254 75,548 35,66316,042 29,684 160,657 142,825 9,155 127 3,735 76,07553,733 636 12,750 4,505 1963—Dec. 20., 137,447 84,845 33,384 "1,9218 28,635 170,233 150,823 8,863 146 3,691 76,836 6"1,288 704 13,548 4,615 1964—June 30., 141,198 89,469 31,560 20,168 29,511 175,250 155,978 8,488 161 5,822 75,369 66,137 '841 14,262 4,702 State member banks: 1941—Dec. 31. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 ,502 1945—Dec. 31., 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 ,867 1947_Dec. 31., 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 ,918 1961—Dec. 30.. 63,196 38,924 17,971 6,302 18,501 84,303 74,119 6,835 199 2,066 43,30321,716 213 6,763 ,600 1962—Dec. 28.. 68,444 43,089 17,305 8,050 17,744 88,831 76,643 6,154 231 2,351 41,992244 2255,983 1,914 7,104 ,544 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,72529,642 1,795 7,506 ,497 1964—June 30.. 73,934 49,179 14,67510,080 17,256 94,186 82,074 6,038 364 3,520 40,25531,897 1,095 7,799 478 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 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—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 1963—Dec. 20., 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 726 23,140 19,793 4,234 7,173 1964—June 30.. 43,476 25,066 12,654 5,755 6,078 50,488 45,411 546 892 22,69921,209 4,309 7,215 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 1961—Dec. 30. 1,536 577 553 406 346 1,961 1,513 177 148 869 307 370 323 1962—Dec. 28. 1,584 657 534 392 346 2,009 1,513 164 133 872 330 371 308 1963—Dec. 20. 1,571 745 463 362 374 2,029 1,463 190 83 832 341 389 285 1964—June 30. 1,571 748 432 390 323 1,984 1,439 200 85 787 344 399 274 Nonmember commercial banks: 1941—Dec. 31. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945_Dec. 31. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1961—Dec. 30. 35,856 18,700 12,525 4,631 6,854 43,465 39,073 719 178 565 22,32515,286 33 3,822 7,320 1962—Dec. 28. 40,141 21,469 13,466 5,206 6,622 47,628 42,654 699 176 743 23,042 17,994 77 4,240 7,380 1963—Dec. 20. 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—June 30. 45,047 25,815 13,087 6,145 6,401 52,472 46,850 745 151 915 23,486 21,553 163 4,708 7,489 Insured mutual sayings banks: 1941—Dec. 31. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945—Dec. 31. 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1,034 192 1947—Dec. 31. 12,683 3,560 8,165 958 675 13,499 12,207 1212,192 1,252 194 1961—Dec. 30. 35,660 25,812 4,690 5,158 828 37,065 33,400 256 333,137 3,191 330 1962—Dec. 28. 38,597 28,778 4,639 5,180 784 39,951 36,104 267 355,827 3,343 331 1963—Dec. 20. 41,664 32,300 4,324 5,041 722 43,019 38,657 292 3B8.359 3,572 330 1964—June 30. 43,431 34,050 4,316 5,064 799 45,022 40,797 333 40,456 3,618 327 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 447 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Class of bank Securities Cash T l o ia t - al Interbank1 Other Bor- c T a o p t i a ta l l N b u e m r and date assets * bilities row- ac- of Total Loans and Total* Demand ings counts banks G U o . v S t . . Other c c o a u a p c n i - t t a s l 2 m D a e n - d Time U.S. Time Govt. Other Noninsured nratnal Barings 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. 313 5,957 1,384 3,813 760 211 6,215 5,556 1 2 5,553 637 339 1961—Dec. 30 5,600 3,581 1,446 572 108 5,768 5,087 1 4 5,083 577 184 1962—Dec. 28 5,961 3,938 1,490 533 106 6,134 5,427 1 6 5,420 1 608 180 1963—Dec. 20 6,425 4,380 1,548 498 104 6,602 5,859 1 8 5,851 633 179 1964—June 30 6,795 4,605 1,700 490 105 6,977 6,143 1 15 6,128 1 651 179 1 Reciprocal balances excluded beginning with 1942. parability of figures for classes of banks is affected somewhat by changes 2 Includes other assets and liabilities not shown separately. in F.R. membership, deposit insurance status, and the reserve classifica- 3 See note 3, p. 587, May 1964 BULL. tions of cities and individual banks, and by mergers, etc. * See note 4, p. 587, May 1964 BULL. Data for June 30, 1964, for national banks have been adjusted to make 5 See note 5, p. 587, May 1964 BULL. them comparable with State bank data. (Dec. 20, 1963 data also ad- 6 Beginning with May 18,1964, one New York City country bank with justed to lesser extent.) loans and investments of $1,034 million and total deposits of $982 million Figures are partly estimated except on call dates. was reclassified as a reserve city bank. For revisions in series before June 30, 1947, see July 1947 BULL., pp. 7 See note 6, p. 587, May 1964 BULL. 870-71. NOTE.—Data are for all commercial and mutual savings banks in the See also NOTE, p. 643, May 1964 BULL. United States (including Alaska and Hawaii, beginning with 1959). Com- LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total 1 Loans 1 Total 1 Loans1 U.S. U.S. Govt. Other Govt. Other 1957—Dec. 31... 166.4 91.4 57.1 17.9 169.3 93.2 58.2 17.9 1958—Dec. 31... 181.2 95.6 65.1 20.5 184.4 97.5 66.4 20.6 1959—Dec. 31... 185.9 107.6 57.8 20.5 189.5 110.0 58.9 20.5 1960—Dec. 31... 194.5 113.8 59.9 20.8 198.5 116.7 61.0 20.9 1961—Dec. 30... 209.8 120.5 65.4 23.9 214.4 123.9 66.6 23.9 1962—Dec. 31 2.. 228.3 133.9 65.2 29.2 233.6 137.9 66.4 29.3 1963—Dec. 31 2., 246.5 149.4 62.1 35.0 252 A 153.9 63.4 35.1 1964—Dec. 31 2* 266.0 166.7 60.9 38.4 272.6 171.7 62.4 38.5 1964—Feb. 26... 248.4 151.8 61.2 35.4 247.2 150.6 61.5 35.1 Mar. 25... 251.4 153.9 62.1 35.4 249.9 152.8 61.5 35.6 Apr. 29... 251.8 155.4 60.8 35.6 250.6 154.7 60.1 35.8 May 27... 253.5 157.3 60.3 35.9 251.5 156.7 59.1 35.8 June 30... 256.3 160.0 60.0 36.3 257.3 161.6 59.3 36.4 July 29... 254.5 159.7 58.4 36.4 254.2 159.4 58.3 36.5 Aug. 26... 258.7 161.5 60.2 37.0 256.1 160.2 58.8 37.1 Sept. 30*.. 261.7 163.0 61.2 37.5 262.2 163.7 60.7 37.8 Oct. 28*.. 260.8 163.1 59.9 37.8 262.1 163.0 61.1 38.0 Nov. 253".. 264.9 165.2 61.3 38.4 265.7 165.4 62.3 38.0 Dec. 31 2* 266.0 166.7 60.9 38.4 272.6 171.7 62.4 38.5 1965—Jan. 27*.. 268.7 169.9 59.5 39.3 268.1 168.2 61.0 38.9 Feb. 24*.. 271.1 171.6 59.6 39.9 269.8 170.3 60.0 39.5 1 Adjusted to exclude interbank loans. For description of seasonally adjusted series, see July 1962 BULL. pp. 2 Data are estimates. 797-802. Data are for last Wed. of month and arc partly estimated (except for NOTE.—For back data, see June 1964 BULL., pp. 693-97. June 30 and Dec. 31 call dates). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 COMMERCIAL BANKS MARCH 1965 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans1 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 State b c a a n ll k d a a n te d i m n a v e n e n d s t t s - Total 2 d t a c r i u n i n i a a s d - l - l A c tu a u g r l l r - - i- b k d a T r e e n o o a r d s - l- ot T h o ers ba T n o ks ot T h o ers R t e a e s t a - e l u v i d t a n i o i d l - - s - Other Total Bills c C t a i e f t i e r - - s Notes Bonds s g r l a o e i o t n c c i v d u e a t s l - . O s r e i t t h c i e u e r s ers Total: 2 1947—Dec. 31..116,284 38,057 18,,1671,660 830 1,220 115 9,393 5,723 947 69,221 2,193 7,789 6,034 53,205 5,276 3,729 1961—Dec. 30..215,441124,925 45,172 6,248 4^,056 2,134 1,033 7,31130,, 320 2177;,:847 3,412 66,,57811,488 2,114 26^36 26,64120-,,3-4 53,592 1962—Dec. 28..235,839140,106 488,6737,0975,144 2,131 2,578 8,4"5"9 34,259 30,553 3,909 66, 11,674 3,932 23,84126,9987 24,755 4,543 1963—Dec. 20..254,162156,006 522,9477,470 5i3532,509 3,605 479 39JO56 34J550 4;034 63^19611,059 1,,658 22,41528,006 5 2_9_,,7 86 5,,.1..7_3 1964—June 30..260,179164,463 555,0617,688 5,526 2^04 2,88110 i 450 41,38837,594 4,42159,322 9,061 3523,14127,085 31,419 4,975 All insured 1941—Dec. 31..49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,15916,899 3,6513,333 1945—Dec. 31..121,809 25,765 9,4611,314 3,164 3,606 49 4,677 2,361 1,132 8888,912 2,45519,07116,04551,342 3,8733,258 1947—Dec. 31..114,274 37,58318,012 1,610 8231,1'9"0 114 9,266 5,654 91467,941 2,124 7,552 5,918 5-2.347 5,129 3,621 1961—Dec. 30.,213,904124,348 44,9656,2114,030 2,107 1,027 7,296 30,21127,708 3,396 66,02611,356 2,09826,145 26,426 20,068 3,462 1962—Dec. 28.,234,243139,449 48,4587,060 5",119 2,103 2,551 8,434 34,12330,402 3;890 65,89111,514 3,916 2""3,715 26,746 24,547 4,356 1963—Dec. 20..252,579155,26152,7437,444 5J3"2'1 2,476 3,594 9,415 38,86134,383 4,015 62,72310,952 1,649 22,316 27,806 29,559 5,035 1964—June 30..258,597163,715 5-4,8557,663 5,492 2^71 2,83910,414 41,190 37,432 4,40358,880 8,970 32 23,044 26,835 31,1844,818 Member, total 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,00715,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 8,949 885555 3,133 3,378 47 3,455 1,900 1,057 78,338 2,27516,98514,27144,807 3,254 2,815 1947__Dec. 31.. 97,846 32,62816,962 1,046 8111,065 113 7,130 4,662 839 57,914 1,987 5,816 4,815 45-,295 4,199 3,105 1961—Dec. 30..179,599106,232 40,931 3,934 3,877 1,827 1,014 6,893 23,987 22,852 3,198 54,058 9,229 1,842 21,390 21,598 1_6_,,6912,617 1962—Dec. 28..195,698118,637 43,843 4,419 4,954 1,777 2,445 7,936 27,162 24,799 3,657 52,968 8,862 3,249 19,443 21,414 20,773 33,319 1963—Dec. 20.,210,127131,712 47,403 4,659 5,124 2,1363,439 8,875 31,009 27,908 3,765 49,342 8,032 1,307 18,072 21,,932 25210 3,864 1964—June 30..215,132138,649 49,217 4,755 5,341 2,320 2,733 9,887 32,794 30,275 4,137 46,235 6,707 1618,572 20,940 26^79 3^70 New York City: 1941—Dec. 31..12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31..26,143 7,334 3,044 2,4531,172 26 80 287 27217,574 477 3,433 3,32510,339 606 629 1947—Dec. 31.,20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,002 640 558 9,772 638 604 1961—Dec. 30..30,297 19,53511,278 231,956 467 376 1,711 934 2,072 1,220 7,862 2,117 442 2,496 2,806 2,635 265 1962—Dec. 28.,32,989 21,995544 11,943 17 2,766 425 572 2,087 1,329 2,1431,196 7,017 1,998 508 2,488 2,023 3,585 432 1963—Dec. 20..34,827 23,57712,332 26 2,677 569 1,007 2,247 1,968 2,257 1,068 6,154 1,711 147 2,341 1,955 4,653 442 1964—June 30..36,693 25,4 9~0 12,647 21 3,045 625 1,014 2,762 2,296 2,5481,128 5,779 1,333 2,625 1,821 4,952 472 City of Chicago: 1941—Dec. 31., 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 133 1,467 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 132 235 248 2,274 213 185 1961—Dec. 30..7,606 4,626 2,609 354 137 53 669 221 476 229 2,041 478 92 728 743 816 124 1962—Dec. 28.. 8,957 5,418 2,941 407 152 89 703 362 523 369 2,129 377 115 849 788 1,242 168 1963—Dec. 20.. 9,615 6,220 3,378 497 181 242 751 401 594 318 1,705 347 42 599 717 1,361 329 1964—June 30., 9,636 6,266 3,332 498 192 200 893 409 600 318 1,750 418 652 680 1,370 251 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 508 6,467 295 751 5,421 956 820 1945—Dec. 31., 40,108 8,514 3,661 205 4271,503 17 1,459 855 387 29,552 1,034 6,982 5,65315,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 373 2,358 1,90115,563 1,342 1,053 1961—Dec. 30..68,565 42,379 16,8791,076 976 784 470 3,261 9,590 9,172 99819,748 3,020 741 8,605 7,382 5,710 727 1962—Dec. 28..73,130 46,56717,6601,179 1,053 752 1,020 3,583 11,030 9,8601,26618,398 2,343 1,403 7,257 7,395 7,252 913 1963—Dec. 20..78,370 51,891 18.,,8621,219 1' ,24'"3 891 1,224 4,286 12,52511,106 1^462 1166,686 2,152 545 6,600 7,390 8,810 981 1964—June 30.,80,466 54,604 19,624 1,1731,155 970 953 4,706 13,20712,0631,75315,488 2,206 6,566 6,715 9,449 925 Country: 1941—Dec. 31., 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31., 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 630 5,102 4,544 16,722 1,342 1,067 1947—Dec. 31., 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 22;,857 480 2,583 2,10817,687 2,0061,262 1961—Dec. 30., 73,131 39,69310,1652,811 591 438 116 1,25113,242 11,132 751 24,407 3,614 566 9,560 10,667 7,5301,500 1962—Dec. 28., 80,623 44,69811,229999 33,187 728 447 764 1,56314,44112,273 826 25,425 4,144 1,223 8,84911,209 8,6941,807 1963—Dec. 20., 87,316 50,02312,8313,374 708 496 966 1,59116,11413,951 917 24,797 3,822 573 8,53111,87110,385 ,111 1964—June 30., 88,337 52,28—9 13,614 3,535 644 534 565 1,52516,88315,063 939 23,218 2,749 15 8,72811,72510,808 2,022 Nonmember 1947—Dec. 31., 18,454 5,432 1,205 614 20 156 2 2,266 1,061 109 11,318 206 1,973 1,219 7,920 1,078 625 1961—Dec. 30., 35,856 18,700 4,2412,314 179 306 19 418 6,341 4,995 214 12,525 2,259 272 4,947 5,046 3,655 976 1962—Dec. 28., 40,141 21,469 4,830',678 190 354 132 523 7,097 5,754 25213,466 2,812 683 4,398 5,573 3~" ,224 1963—Dec. 20.. 44,035 24,295 5,544 ,811 229 373 166 604 8,047 6,643 26913,854 3,027 351 4,343 6,133 4,576 1,309 1964—June 30. 45,047 25,815 5,844 2,933 185 384 149 563 8,594 7,320 284 13,087 2,354 19 4,569 6,144 4,8411,305 1 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. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 COMMERCIAL BANKS 449 RESERVES AND 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 t f e d B s F w e a r . i n v R th k e . s s r C c e a o n n u i c d r n - y b m a a w d n e n o i c s k t - e t h s i s c 3 ju m p s o d a a t d e s e n - i - d t d s 4 m D e I s o n t - t i e c r 3 ba e F n ig k o n r- 5 G U o .S v . t. g S l a o o t n c a v d a t t e l . c C c h o f a e e i f e n e f r r c i d d t s - k i ' - s, IPC I b n a t n e k r- G P U S a o o a n . s S v v d t . - t a . l S g l a o o t n c a v d a t t e l . IPC B r i o n o w g r s - - c C o a t a u a c p - l n i t - s etc. ings Total: 2 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1961—Dec. 30.... 16,918 3,689 14,169122,654 16,574 1,340 5,946 12,242 5,056 124,622 481 283 5,465 76,680 47122,459 1962—Dec. 28.... 17,680 4,252 13,099124,342 14,713 1,295 6,829 12,071 4,511 124,459 535 269 6,450 90,9913,62724,094 1963—Dec. 20.... 17,150 4,048 12,312126,579 14,048 1,218 6,729 12,256 4,494 124,784 526 269 7,908 102,8863,66425,677 1964—June 30.... 16,774 4,539 12,693122,537 13,909 1,363 10,257 12,583 4,832 121,695 677 257 8,680110,6502,09926,768 AH insured: 1941_Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1961—Dec. 30.... 16,918 3,670 13,871121,671 16,440 1,298 5,934 12,149 5,023 123,878 333 283 5,412 76,426 46222,089 1962—Dec. 28.... 17,680 4,232 12,795123,361 14,579 1,265 6,815 11,991 4,434 123,744 402 269 6,397 90,7143,58423,712 1963—Dec. 20.... 17,150 4,033 11,984125,615 13,900 1,177 6,712 12,175 4,429 124,098 443 269 7,853102,6003,57125,277 1964—June 30.... 16,774 4,524 12,409121,608 13,756 1,316 10,234 12,491 4,781 121,051 591 257 8,634110,3522,03526,358 Member, total: 1941_Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945_Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,243 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947_Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1961—Dec. 30.... 16,918 2,813 8,724100,660 15,924 1,270 5,381 9,487 4,654 105,454 303 260 4,371 62,526 43818,638 1962—Dec. 28.... 17,680 3,263 7,897 101,528 14,071 1,237 6,086 9,270 4,083 104,646 358 243 5,158 74,3163,55019,854 1963—Dec. 20.... 17,150 3,131 7,359102,816 13,378 1,140 5,986 9,376 4,055 104,130 382 240 6,364 84,3263,49921,054 1964—June 30.... 16,774 3,511 7,807 99,288 13,247 1,280 9,342 9,639 4,379 101,605 525 227 7,045 90,762 1,936 22,060 New York City: 1941_Dec. 31.... 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945_Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1961—Dec. 30.... 3,286 240 143 17,089 4,330 967 1,267 333 2,583 20,213 191 38 162 6,735 283 3,683 1962—Dec. 28.... 4,121 251 156 17,095 3,854 929 1,408 366 2,237 19,628 207 53 266 8,9371,728 3,898 1963—Dec. 20.... 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 76 449 10,920 1,438 3,984 1964—June 30.... 3,919 273 82 16,389 3,791 920 2,112 420 2,323 18,480 317 71 528 12,582 924 4,402 City of Chicago: 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945_Dec. 31.... 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947 Dec. 31 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1961_Dec. 30.... 889 37 158 3,809 1,578 45 369 315 124 4,830 14 5 8 1,996 35 870 1962—Dec. 28.... 1,071 44 99 4,262 1,235 41 410 351 109 4,804 18 7 16 3,001 262 948 1963—Dec. 20.... 1,019 49 98 4,144 1,169 43 395 275 112 4,500 17 6 185 3,595 255 996 1964—June 30.... 923 53 151 3,845 1,135 47 587 311 114 4,319 25 5 199 3,887 210 1,017 Other reserve city: 1941_Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1961—Dec. 30.... 7,533 858 2,542 36,187 8,107 243 2,103 3,520 1,152 40,315 62 110 2,310 23,962 81 6,997 1962—Dec. 28.... 7,671 1,021 2,253 35,481 7,229 248 2,337 3,216 980 39,413 82 83 2,633 28,027 1,388 7,263 1963—Dec. 20.... 7,587 935 2,105 35,859 6,958 267 2,212 3,144 1,034 39,281 95 72 2,950 31,9821,416 7,697 1964—June 30.... 7,106 1,072 2,296 34,281 6,616 278 3,771 3,234 1,086 38,067 118 69 3,362 34,544 572 8,110 Country: 1941_Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 ,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 [,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1961_Dec. 30 5,210 1,678 5,881 43,575 1,910 15 1,641 5,320 796 40,095 37 108 1,891 29,834 40 7,088 1962—Dec. 28.... 4,817 1,947 5,389 44,689 1,753 19 1,931 5,337 756 40,801 51 100 2,242 34,350 172 7,744 1963—Dec. 20.... 4,919 1,884 5,060 46,049 ,764 29 1,960 5,590 790 41,877 56 86 2,778 37,829 390 8,377 1964—June 30.... 4,826 2,113 5,278 44,773 1,705 34 2,872 5,674 856 40,740 64 83 2,956 39,749 230 8,531 Monmember:2 1947 Dec 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1961 Dec 30 876 5,446 21,994 649 70 565 2,755 402 19,168 178 23 1,094 14,169 33 3,822 1962 Dec 28 989 5,202 22,814 642 57 743 2,802 428 19,813 176 26 1,292 16,675 77 4,240 1963 Dec 20 917 4,953 23,763 671 78 743 2,880 438 20,654 144 29 1,545 18,560 165 4,623 1964—June 30 1,028 4,886 23,249 661 84 915 2,943 453 20,090 151 30 1,635 19,888 163 4,708 3 Beginning with 1942, excludes reciprocal bank balances. banks. Comparability of figures for classes of banks is affected some- 4 Through 1960, demand deposits other than interbank and U.S. what by changes in F.R. membership, deposit insurance status, and the Govt., less cash items in process of collection; beginning with 1961, reserve classifications of cities and individual banks, and by mergers, etc. demand deposits other than domestic commercial interbank and U.S. Data for June 30, 1964, for national banks have been adjusted to make Govt., less cash items in process of collection. them comparable with State bank data. (Data for Dec. 20, 1963, also 5 See note 6, May 1964 BULL., p. 589. adjusted to lesser extent.) Also see NOTE, May 1964 BULL., p. 589. NOTE.—Data are for all commercial banks in the United States. These For other notes see opposite page. figures exclude data for banks in U.S. possessions except for member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 WEEKLY REPORTING MEMBER BANKS MARCH 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financial institutions Total L a o n a d ns loans invest- Com- To brokers Wednesday m in a e v n n e d t s s t - i j m us a e t d e n - d ts 2 j L us o a t d a e - n d s 2 in m t a c r d n i i e a u a d r l l s - - A t c u g u r r l a - i l - G U a o n . v S d t . . de O al s t e e h r - e s r G U T o . v S o t . . oth O e s t r e h s - er For B - ank m D ti e o c s - - P S a a e N n l r d e s o s . nbank es R ta e t a e l o A th l e l r V s t e i a r r o e l v n u - e a s c t s u i e e r - s i- c t u ie r s i- c t u ie r s i- c t u ie r s i- eign c m c o i e m a r l - - F C e i O n tc S a . . n , . Other Total- Leading Cities 1964 Feb. 5 138,397 136,328 89,504 37,314 1,520 637 3,334 103 ,741 ,011 2,069 3,908 3,537 18,021 20,422 2,044 12 138,479 136,842 89,887 37,368 1,524 930 3,374 97 ,741 ,011 1,637 3,876 3,512 18,081 20,420 2,047 19 138,855 136,987 90,052 37,619 1,528 783 3,312 95 ,736 ,015 1,868 3,947 3,497 18,127 20,441 2,048 26 138,541 136,847 89,875 37,590 1,513 583 3,279 97 ,736 ,000 1,694 4,033 3,478 18,161 20,457 2,052 1965 Jan. 6 152,715 149,784101,224 '42,090 1,579 967 3,211 ,961 ,537 2,931 4,676 4,129 20,012 23,270 2,278 13' 151,355 148,734 110000,897 41,947 1,569 1,520 3,050 ,949 ,504 2,621 4,370 4,074 20,060 23,066 2,278 20 r 151,001 148,779100,442 41,875 1,553 1,241 3,109 ,962 ,488 2,222 4,226 4,047 20,050 23,100 2,280 27' 150,692 148,132100,071 41,849 1,541 931 3,080 ,954 ,494 2,560 4,209 4,034 20,071 23,126 2,288 Feb. 3 151,383 149,205101,060 42,239 1,529 1,001 3,348 ,947 ,537 2,178 4,285 4,046 20,074 23,273 2,291 10 151,344 148,607100,839 42,337 1,533 792 3,247 ,958 ,541 2,737 4,238 4,020 20,104 23,286 2,291 17 151,935 149,204101,529 43,012 1,529 662 3,103 ,866 ,565 2,731 4,524 4,030 20,132 23,330 2,292 24 151,979 149,301101,589 43,041 1,533 746 3,105 ,865 ,542 2,678 4,440 3,962 20,167! 23,404 2,292 New York City 1964 33,314 32,662 21,993 12,071 390 ,895 553 530 652 1,297 679 1,819| 3,273 562 Feb. 5 33,109 32,814 22,127 12,054 473 ,944 554 536 295 1,308 677 1,825 3,270 562 12 33,232 32,596 22,037 12,190 326 ,836 550 530 636 1,345 668 1,829: 3,279 563 19 33,116 32,576 21,992 12,201 317 ,784 552 527 540 1,365 669 1,833 3,263 566 26 1965 Jan. 6 37,278 36,691 25,317 13,890 428 ,786 593 821 587 1,445 873 2,290, 3,772 613 13 36,906 36,164 25,057 13,782 591 ,697 583 816 742 1,301 855 2,297 3,717 613 20 36,586 35,954 24,938 13,750 530 ,670 588 803 632 1,266 850 2,270 3,788 614 27 36,591 35,838 24,841 13,732 398 ,681 583 798 753 1,269 2,281 3,810 614 Feb. 3 36,832 36,284 25,396 13,813 546 ,897 583 811 548 1,319 873 2,296 3,835 613 10 37,247 36,118 25,360 13,947 380 ,853 590 827 1,129 1,326 864 2,302 3,846 614 17 36,962 36,030 25,464 14,207 282 ,717 502 837 932 1,472 869 2,315 3,842 614 24 37,233 36,188 25,535 14,239 389 ,691 494 819 1,045 1,425 872 2,319 3,858 614 Outside New York City 1964 Feb. 5 105,083 103,666 67,511 25,243 ,498 247 1,439 1,188 481 1,417 2,611 2,858 16,202 17,149 1,482 12 105,370 104,028 67,760 25,314 ,502 457 1,430 ',187 475 1,342 2,568 2,835 16,256 17,150 1,485 19 105,623 104,391 68,015 25,429 ,506 457 1,476 ,186 485 1,232 2,602 2,829 16,298 17,162 1,485 26 105,425 104,271 67,883 25,389 ,491 266 1,495 ,184 473 1,154 2,668 2,809 16,328 17,194 1,486 1965 I Jan. 6 115,437 113,093 75,907 18,200 ,560 539 1,425 368 716 2,344 3,231 17,722 19,498 ,665 13 r 114,449 112,570 75,840 28,165 ,550 929 1,353 366 688 1,879 3,069 17,763 19,349 ,665 20 r 114,415 112.825 75,504 28,125 ,533 711 1,439 374 685 1,590 2,960 17,780 19,312 ,666 27 r 114,101 112,294 75,230 28,117 ,522 533 1,399 371 696 1,807 2,940 17,790 19,316 ,674 Feb. 3 114,551 112,921 75,664 28,426 ,509 455 1,451 364 726 1,630 2,966 3,173 J 17,778 19,438 ,678 10 114,097 112,489 75,479 28,390 ,513 412 1,394 368 714 1,608 2,912 156 17,802 19,440 ,677 17 114,973 113,174 76,065 28,805 ,509 380 1,386 364 728 1,799 3,052 3,161 17,817 19,488 ,678 24 114,746 113,113 76,054 28,802 ,513 357 1,414 371 723 1,633 3,015 3,090 17,848 19,546 ,678 For notes see p. 452. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 WEEKLY REPORTING MEMBER BANKS 451 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Investments Cash assets 3 Total U. S. Government securities assets— Total Bal- Bal- Re- All liabili- Wednesday Total Bills C tif e i r - - No m te a s tu a r n i d n g b — onds O s ri e t t c h ie u e s - r Total d a o w n t m i i c c t e e h s s- a w e f n o ig i c r t e n - h s Cu c a r o r n e i d n ncy B s F w e a . r i n v R t k h e . s s a o s t s h e e t r s a c c a c a t p i o n e i u d s ta n l ts cates With- banks banks in 1 to After 1 year 5 years 5 years Total- Leading Cities 1964 Feb. 5 27,590 4,111 1,062 2,386 13,748 6,283 19,234 17,972 2,924 256 1,646 13,146 5,592 176,191 12 27,728 4,264 1,072 2,383 13,768 6,241 19,227 17,476 3,025 252 1,796 12,403 5,636 175,701 19 27,682 4,276 118 2,736 14,563 5,989 19,253 17,485 3,019 258 1,779 12,429 5,406 175,396 26 27,591 4,221 110 2,802 14,531 5,927 19,381 17,877 2,906 267 1,793 12,911 5,438 175,301 1965 Jan, 6r 27,473 5,451 4,187 12,008 5,827 21,087 19,585 3,351 266 1,988 13,980 5,839 195,699 13' 26,497 4,482 4,300 11,889 5,826 21,340 18,107 3,195 254 2,082 12,576 5,945 192,326 20' 26,935 5,294 3,187 10,454 8,000 21,402 18,116 3,284 265 1,970 12,597 5,790 190,560 27' 26,667 5,127 3,139 10,477 7,924 21,394 18,558 3,016 264 1,975 13,303 5,863 189,518 Feb. 3 26,516 5,010 3,122 10,467 7,917 21,629 18,887 3,126 254 1,822 13,685 6,011 191,757 10 26,095 4,608 3,143 10,477 7,867 21,673 17,687 2,954 268 1,903 12,562 6,105 189,757 17 25,894 4,267 3,391 11,192 7,044 21,781 18,664 3,178 251 1,916 13,319 5,971 193,398 25,855 4,402 3,374 11,150 6,929 21,857 17,606 3,056 257 2,009 12,284 6,035 191,005 24 New York City 1964 Feb. 5,620 1,134 330 428 2,475 ,253 5,049 4,364 105 261 3,925 2,395 44,869 12 5,650 1,191 331 425 2,469 ,234 5,037 4,090 107 270 3,630 2,455 44,058 19 5,453 1,120 21 464 2,693 ,155 5,106 4,090 110 260 3,627 2,387 44,286 26 5,407 1,078 22 466 2,694 ,147 5,177 4,391 118 262 3,943 2,408 44,766 1965 Jan. 6 5,721 1,742 757 2,161 ,061 5,653 4,808 146 136 310 4,216 2,380 50,206 13 5,465 1,309 927 2,149 ,080 5,642 4,026 116 134 308 3,468 2,460 48,932 20 5,309 1,449 626 ,642 ,592 5,707 4,045 113 142 287 3,503 2,378 48,369 27 5,289 1,459 597 ,721 ,512 5,708 4,212 90 135 292 3,695 2,394 48,238 Feb. 3. 5,042 1,221 639 ,660 ,522 5,846 4,325 86 117 281 3,841 2,473 49,044 10 4,916 1,073 657 ,677 ,509 5,842 3,395 99 134 302 2,860 2,558 48,542 17 4,663 793 677 ,811 ,382 5,903 4,049 151 119 278 3,501 2,525 49,738 24 4,763 913 684 ,832 ,334 5,890 3,292 122 127 296 2,747 2,564 48,837 Outside New York City 1964 Feb. 5 21.970 2,977 732 1,958 11,273 5,030 14,185 13,608 2,851 151 ,385 9,221 3,197 131,322 12 22;078 3,073 741 1,958 11,299 5,007 14,190 13,386 2,942 145 ,526 8,773 3,181 131,643 19.... 22,229 3,156 97 2,272 11,870 4,834 14,147 13,395 2,926 148 ,519 8,802 3,019 131,110 26.... 22.184 3,143 2,336 11,837 4,780 14,204 13,486 2,838 149 ,531 8,968 3,030 130,535 1965 Jan. 6 21,752 3,709 3,430 9,847 4,766 15,434 14,777 3,205 130 ,678 9,764 3,459 145,493 13'... 21,032 3,173 3,373 9,740 4,746 15,698 14,081 3,079 120 ,774 9,108 3,485 143,394 20r.. . . 21,626 3,845 2,561 8,812 6,408 15,695 14,071 3,171 123 ,683 9,094 3,412 142,191 27'... 21,378 3,668 2,542 8,756 6,412 15,686 14,346 2,926 129 ,683 9,608 3,469 141,280 Feb. 3 21,474 3,789 2,483 8,807 6,395 15,783 14,562 3,040 137 ,541 9,844 3,538 142,713 10 21,179 3,535 2,486 8,800 6,358 15,831 14,292 2,855 134 ,601 9,702 3,547 141,215 17 21.231 3,474 2,714 9,381 5,662 15,878 14,615 3,027 132 ,638 9,818 3,446 143,660 24 21,092 3,489 2,690 9,318 5,595 15,967 14,314 2,934 130 1,713 9,537 3,471 142,168 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 WEEKLY REPORTING MEMBER BANKS MARCH 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time De- Other Cap- Wednesday j u u T s n o t a e t d a d l - 4 ju m p s o a d a t d e s e n i - - d t d s 5 Total 6 IPC G S l a o t o n c a v d a te t l . e F ig o n r- 7 G U o .S v . t. c m m D c o t i e i e m o a c s r - l - - - TotaP S in a g v s - IPC Oth S l a o e t n r c a d a t t e i l me e F 9 ig o n r- 7 F B F r a . o R n m k . s F ot r h o e m rs li t a i b e i s li- co i a u t c n a - t l s banks Govt. Total- Leading Cities 1964 Feb. 5 152,281 64,015 91,816 67,228 5,260 1,850 ,99611,575 60,465 38,17214,198 4,368 3,280 323 2,908 6,009 14,670 12 152,245 63,718 91,567 67,605 4,879 1,829 2,56011,179 60,678 38,21814,327 4,404 3,280 338 2,317 6,126 14,675 19 151,917 62,090 91,106 65,508 4,997 1,7214,12911,237 60,811 38,26414,317 4,381 3,402 28 2,666 6,112 14,673 26 151,505 62,565 90,575 65,460 5,188 1,674 3,75510,810 60,930 38,29114,390 4,407 3,387 528 2,439 6,131 14,698 1965 Jan. 6 168,846 66,202101,512 72,029 5,157 2,052 3,80613,944 67,334 40,86016,714 5,206 3,986 257 4,818 6,101 15,677 13' 165,768 66,160 97,518 72,104 4,763 1,997 ,60012,839 68,250 41,04617,333 5,303 3,948 113 4,469 6,298 15,678 20 r 165,194 66,063 96,560 70,973 4,857 1,8932,50412,340 68,634 41,12517,634 5,285 3,964 5 3,419 6,283 15,659 27- 163,444 65,891 94,367 69,347 5,105 2,0712,91511,156 69,077 41,21317,958 5,301 3,961 155 3,843 6,368 15,708 Feb. 3 165,293 64,992 96,059 68,515 5,396 2,059 3,64311,948 69,234 41,33417,961 5,342 3,951 640 3,449 6,587 15,788 10 163,442 64,307 93,799 67,254 5,316 2,1533,09611,775 69,643 41,47818,048 5,340 4,119 59 3,700 6,755 15,801 17 166,176 62,248 96,227 67,630 4,990 2,027 5,12012,031 69,949 41,56018,177 5,386 4,158 140 4,270 7,023 15,789 164,449 62,986 94,305 67,084 5,153 1,957 4,53611,398 70,144 41,623 1"8,266 5,451 4,132 44 3,655 7,074 15,783 24 New York City 1964 36,445 16,201 24,556 16,854 323 ,407 545 3,014 11,889 4,416 4,519 397 2,303 166 1,294 2,811 4,153 Feb. 5 36,013 16,149 24,110 16,739 253 ,379 712 2,845 11,903 4,421 4,526 398 2,304 72 954 2,865 4,154 12 36,227 15,579 24,269 16,367 311 ,292 ,031 3,082 11,958 4,431 4,463 394 2,415 1,063 2,853 4,143 19 36,474 15,694 24,492 16,543 350 ,230 901 3,046 11,982 4,436 4,484 395 2,405 213 1,115 2,824 4,140 26 1965 Jan. 6 40,624 16,473 26,952 17,726 271 ,5391,195 3,544 13,672 4,657 5,297 481 2,874 50 2,484 2,752 4,296 13 39,527 16,292 25,534 17,433 287 ,481 443 3,259 13,993 4,680 5,530 523 2,851 2,198 2,919 4,288 20 39,659 16,411 25,740 17,600 294 ,378 635 3,334 13,919 4,705 5,466 468 2,883 ,575 2,850 4,285 27 39,210 16,320 25,179 17,173 277 ,550 747 3,071 14,031 4,723 5,584 451 2,857 55 ,715 2,970 4,288 Feb. 3 39,851 16,172 25,756 16,789 306 ,5451,004 3,166 14,095 4,745 5,613 468 2,853 155 ,570 3,148 4,320 10 39,612 15,798 25,304 16,362 379 ,616 863 3,301 14,308 4,777 5,665 481 2,957 ,361 3,244 4,325 17 40,341 15,123 25,884 16,590 304 ,4931,294 3,265 14,457 4,799 5,742 507 2,973 ,743 3,341 4,313 24 39,904 15,318 25,339 16,547 321 ,3991,062 3,211 14,565 4,810 5,841 522 2,952 ,218 3,404 4,311 Outside New York City 1964 Feb. 5 115,836 47,814 67,260 50,374 4,937 443 ,451 8,561 48,576 33,756 9,679 3,971 977 157 1,614 3,198 10,517 12 116,232 47,569 67,457 50,866 4,626 450 ,848 8,334 48,775 33,797 9,801 4,006 976 266 1,363 3,261 10,521 19 115,690 46,511 66,837 49,141 4,686 429 3; 0988,155 48,853 33,833 9,854 3,987 987 28 1,603 3,259 10,530 26 115,031 46,871 66,083 48,917 4,838 444 2,854 7,764 48,948 33,855 9,906 4,012 982 315 1,324 3,307 10,558 1965 Jan. 6 128,222 49,729 74,560 54,303 4,886 5132,61110,400 53,662 36,20311,417 4,725 1,112 207 2,334 3,349 11,381 13' 126,241 49,868 71,984 54,671 4,476 5161,157 9,580 54,257 36,36611,803 4,780 1,097 113 2,271 3,379 11,390 20' 125,535 49,652 70,820 53,373 4,563 5151,869 9,006 54,715 36,42012,168 4,817 1,081 5 1,844 3,433 11,374 27r 124,234 49,571 69,188 52,174 4,828 5212,168 8,085 55,046 36,49012,374 4,850 1,104 100 2,128 3,398 11,420 Feb. 3 125,442 48,820 70,303 51,726 5,090 514 2,639 8,782 55,139 36,58912,348 4,874 1,098 485 1,879 3,439 11,468 10 123,830 48,509 68,495 50,892 4,937 537 2,233 8,474 55,335 36,70112,383 4,859 1,162 59 2,339 3,511 11,476 17 125,835 47,125 70,343 51,040 4,686 534 3,826 8,766 55,492 36,76112,435 4,879 1,185 140 2,527 3,682 11,476 24 124,545 47,668 68,966 50,537 4,832 5583,474 8,187 55,579 36,81312,425 4,929 1,180 44 2,437 3,670 11,472 1 After deduction of valuation reserves. branches of U.S. banks other than reporting bank. 2 Exclusive of loans to domestic commercial banks and after deduction 8 Includes U.S. Govt., postal savings, domestic commercial interbank of valuation reserves; individual loans items are shown gross. and mutual savings banks, not shown separately. 3 Excludes cash items in process of collection. 9 Includes certificates of deposit outstanding in following amounts 4 Total demand and total time deposits. (in millions of dollars): 5 Demand deposits other than domestic commercial interbank and U.S. Govt., less cash items in process of collection. Feb. 3 Feb. 10 Feb. 17 Feb. 24 6 Includes certified and officers' checks and deposits of mutual savings Total—Leading Cities 13,590 13,698 13,748 13,866 banks, not shown separately. New York City 4,836 4,919 4,995 5,093 7 Deposits of foreign governments and official institutions, central Outside New York City... 8,754 8,779 8,753 8,773 banks, international institutions, banks in foreign countries, and foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BUSINESS LOANS OF BANKS 453 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (In millions of dollars) Outstanding Net change during Industry 1965 1965 1964 1964 1964 F 2 e 4 b. F 1 e 7 b. F 1 e 0 b. Fe 3 b. Ja 2 n 7 . Feb. Jan. Dec. IV III II H 2n a d lf H 1 a s l t f Durable goods manufacturing: Primary metals 661 667 659 654 647 14 6 16 -18 -81 70 -99 123 2.371 2,351 2,289 2,277 2,249 122 42 65 93 -81 -58 12 25 Transportation equipment ... 1,015 1,014 980 973 968 47 21 61 60 -13 7 47 19 Other fabricated metal products... 1,017 1,019 996 974 961 56 -1 30 -36 119 -36 191 Other durable goods 1,200 1,198 1,179 1,159 1,157 43 4 -2 -66 57 80 -9 120 Nondurable goods manufacturing: Food, liquor, and tobacco 1,804 1,836 1,825 1,895 1,880 -76 -120 146 527 177 -163 704 -622 Textiles, apparel, and leather 1,370 1,361 1,310 1,281 1,255 115 -15 -77 -359 64 23 -295 234 Petroleum refining 1,170 1,154 1,022 989 991 179 -51 40 33 -44 -42 -11 — 134 Chemicals and rubber... . .... 471 1,462 1,400 1,390 1,372 101 -32 168 232 17 50 249 158 Other nondurable goods 921 908 911 901 872 49 -20 -31 -94 31 98 -63 106 Mining, including crude petroleum and natural gas .. 3,284 3,245 3,239 3,167 3,174 110 45 300 295 140 15 435 -198 Trade: Commodity dealers 1,564 1,557 1,549 1,539 1,510 54 81 -34 391 154 -284 545 -538 Other wholesale 2,250 2,234 2,190 2,191 2,183 67 -80 7 81 75 59 156 40 Retail 2,708 2,771 2,702 2,761 2,675 33 182 -247 -211 143 66 -68 49 Transportation, communication, and other public utilities 4,597 4,592 4,585 4,575 4,578 19 -86 351 237 400 -73 637 -496 Construction . .. 2,278 2,280 2,258 2,242 2,231 47 -31 1 38 104 226 142 265 All other: 1 Bankers' acceptances 818 811 795 870 885 -67 -210 181 174 61 -29 235 -76 All other types of business, mainly 5,661 5,634 5,622 5,587 5,540 121 146 382 394 -39 104 355 274 Total classified loans 36,162 36,094 35,511 35,425 35,128 1,034 -119 1,357 1,771 1,165 268 2,936 -460 Commercial and industrial loans— All weekly reporting banks 43,041 43,012 42,337 42,239 41,849 1,192 270 1,571 2,166 1,205 576 3,371 -45 i Beginning Dec. 31, 1963, bankers' acceptances for the creation NOTE.—About 200 of the weekly reporting member banks are included of dollar exchange are excluded from commercial and industrial loans in this series; these banks classify, by industry, commercial and industrial and those relating to commercial transactions are shown in a separate loans amounting to about 85 per cent of such loans held by all weekly category. Current figures are therefore not strictly comparable with reporting member banks, and about 60 per cent of those held by all figures previously reported, but differences are relatively small. commercial banks. BANK RATES ON SHORT-TERM BUSINESS LOANS (Per cent per annum) Size of loan Size of loan A an re d a All (thousands of dollars) A an re d a All (thousands of dollars) period loans 1- 10- 100- 200 period loans 1- 10- 100- 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.: l 19 large cities: New York City: 1963—Dec 4 76 5 63 5 36 5 04 4 65 1956 4.2 5.2 4.8 4.4 4.0 1964—Mar 4.77 5.66 5.39 5.06 4.66 1957 4.6 5.5 5.1 4.8 4.5 June 4.74 5.64 5.36 5.05 4.63 1958 4 3 5 5 5 0 4 6 4 1 Sept 4 72 5 64 5 40 5 01 4 61 1959 5.0 5.8 5.5 5.2 4.9 Dec . 4.77 5.59 5.35 5.08 4.66 I960 5.2 6.0 5.7 5.4 5.0 7 other northern and 1961 5.0 5.9 5.5 5.2 4.8 eastern cities: 1962 5.0 5.9 5.5 5.2 4.8 1963—Dec 5 04 5 85 5.55 5.27 4 90 1963 5.0 5.9 5.5 5.2 4.8 1964 Mar 5.02 5.81 5.54 5.24 4.88 1964 5.0 5.9 5.6 5.3 4.8 5.03 5.83 5.55 5.27 4.89 Sect 5.01 5.88 5.56 5.25 4.86 Dec 5 03 5 84 5 58 5 31 4 88 Quarter :i 19 large cities: 11 southern and western cities: 1963—Dec 5.00 5.86 5.54 5.23 4.82 1963—Dec 5.29 5.97 5.65 5.31 5.07 1964 Mar 4 99 5 83 5 54 5 22 4 82 1964 Mar 5 29 5 91 5 62 5 31 5 08 June 4.99 5.84 5.53 5.24 4.81 June 5.29 5.93 5.61 5.34 5.07 Sept 4.98 5.86 5.57 5.23 4.79 Sept 5.31 5.95 5.67 5.36 5.09 Dec 5.00 5.85 5.56 5.31 4.82 Dec 5.31 5.96 5.67 5.46 5.06 1 Based on new loans and renewals for first 15 days of month. Changes thereafter occurred on the following dates (new levels shown in per cent): 1955—Aug. 4, 3%; Oct. 14, 3^; 1956—Apr. 13, 3%; Aug. NOTE.—Weighted averages. For description see Mar. 1949 BULL., pp. 21, 4; 1957—Aug. 6, 4V£; 1958—Jan. 22, 4; Apr. 21, 3^; Sept. 11, 4; 228-37. Bank prime rate was 3 per cent Jan. 1, 1955-Aug. 3, 1955. 1959—May 18, 4%; Sept. 1, 5; and 1960—Aug. 23, 4&. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 INTEREST RATES MARCH 1965 MONEY MARKET RATES (Per cent per annum) U. S. Government securities (taxable) • Finance Prime CO. Prime coml. paper bankers' Federal 3-month bills 5 6-month bills 5 9- to 12-month issues Period m 4 p o - a n t p o t e h 6 r s , - i m d 3 p i o - r l a n e to c c th e tl 6 s d y - * , 9 a 0 a c n d c c a e e y p s t s , - * r fu at n e d 3 s on i R s s a n u t e e e w M y a ie r l k d et o i n R s s a n u t e e e w M y a ie r l k d et ( y m i B e a l i d r ll k ) s e 5 t Other « i 3 s - s y u t e o e a s r 5 7 - 1962 3.26 3.07 3.01 2.68 2.778 2.77 2.908 2.90 3.01 3.02 3.57 1963 3.55 3.40 3.36 3.18 3.157 3.16 3.253 3.25 3.30 3.28 3.72 1964 3.97 e3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1964—Feb 3.88 3.76 3.75 3.48 3.532 3.53 3.664 3.67 3.71 3.63 4.02 Mar 4.00 3.83 3.75 3.43 3.553 3.54 3.740 3.72 3.78 3.67 4.15 3.91 3.80 3.80 3.47 3.484 3.47 3.676 3.66 3.75 3.63 4.18 M*ay 3.89 3.76 3.75 3.50 3.482 3.48 3.612 3.60 3.71 3.67 4.07 4.00 3.88 3.75 3.50 3.478 3.48 3.572 3.56 3.70 3.83 4.03 July 3.96 3.81 3.75 3.42 3.479 3.46 3.566 3.56 3.64 3.6S 3.99 Aug 3.88 3.76 3.75 3.50 3.506 3.50 3.618 3.61 3.67 3.73 3.99 Sept 3.89 3.75 3.75 3.45 3.527 3.53 3.666 3.68 3.73 3.82 4.03 Oct 4.00 3.91 3.75 3.36 3.575 3.57 3.729 3.72 3.79 3.83 4.04 Nov 4.02 3.89 3.79 3.52 3.624 3.64 3.794 3.81 3.86 3.88 4.04 Dec 4.17 3.98 4.00 3.85 3.856 3.84 3.971 3.94 3.96 3.96 4.07 1965—Jan 4.25 4.05 4.00 3.90 3.828 3.81 3.944 3.94 3.91 3.87 4.06 Feb 4.27 4.12 4.10 3.98 3.929 3.93 4.003 4.00 4.00 3.97 4.08 Week ending— 1965-Jan. 30 4.25 4.03 4.00 4.00 3.848 3.85 3.946 3.94 3.91 3.87 4.05 Feb. 6 4.25 4.05 4.05 4.00 3.888 3.89 3.968 3.97 3.97 3.91 4.07 13 4.25 4.06 4.13 4.00 3.903 3.90 3.987 3.99 3.99 3.96 4.08 20 4.25 4.13 4.13 4.00 3.936 3.94 4.015 4.02 4.02 3.99 4.09 27 4.34 4.25 4.13 3.93 3.989 3.99 4.043 4.04 4.04 4.04 4.10 * Averages of daily offering rates of dealers. s Bills quoted on bank discount rate basis. 2 Averages of daily rates, published by finance cos., for varying maturi- < Certificates of indebtedness and selected note and bond ties in the 90-179 day range. * Selected note and bond issues. 3 Seven-day average for week ending Wed. * Except for new bill issues, yields are averages computed from daily closing bid prices. BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and loca rating group price ratio price ratio States Total i (longterm) Total l 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 - 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 6.06 1963 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 1964 Feb 4 14 3.27 3.08 3.54 4.55 4.36 4.83 4 48 4 67 4 51 4 31 3 05 Mar 4.18 3.33 3.14 3.57 4.56 4.38 4.83 4.49 4.67 4 51 4.34 3 03 5.51 Apr 4.20 3.30 3.12 3.52 4.58 4.40 4.85 4.53 4.69 4.53 4.37 3.00 May 4.16 3.29 3.09 3.54 4.59 4.41 4.85 4.54 4.69 4.53 4.41 3.01 June 4.13 3.29 3.10 3.54 4.59 4.41 4.85 4.54 4.70 4.55 4.41 3.05 5.68 July 4.13 3.26 3.08 3.54 4.58 4.40 4.83 4.52 4.68 4 54 4 37 2 96 Aug . . . .. 4 14 3.27 3 08 3.54 4 57 4.41 4.82 4 52 4 65 4 54 4 29 3 03 Sept 4.16 3.30 3.09 3.57 4.57 4.42 4.82 4.52 4.65 4.53 4.25 3.00 *>5.60 Oct 4.16 3.31 3.11 3.58 4.57 4.42 4.81 4.53 4 66 4 52 4 25 2 95 Nov 4 12 3 27 3 08 3 52 4 58 4 43 4 81 4 53 4 67 4 53 4 25 2 96 Dec 4.14 3.23 3.01 3.51 4.58 4.44 4.81 4 54 4 68 4 54 4 23 3 05 1965—Jan 4.14 3.18 2.97 3.44 4.57 4.43 4.80 4 53 4 66 4 52 4 18 2 99 Feb 4 16 3 18 2 97 3 42 4 55 4 41 4 78 4 52 4 62 4 51 4 22 2 99 Week ending— 1965—Jan 30 4.13 3.17 2.96 3.41 4.57 4.42 4.79 4.52 4.66 4.52 4.17 2.96 Feb 6 4.15 3.15 2.94 3.40 4.56 4.41 4.79 4.52 4 63 4 52 4 20 2 95 13 4.16 3.15 2.94 3.40 4.55 4.41 4.79 4.52 4.62 4.51 4 20 3 01 20 4 16 3.20 2 99 3.44 4 55 4.41 4.78 4 52 4 62 4 51 4 22 3 04 27 4.16 3.21 3.03 3.44 4.55 4.41 4.78 4.52 4.61 4.51 4.25 2!97 Number of issues 6-12 20 5 5 120 30 30 40 40 40 14 500 500 * 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 heat govt. bonds: General obligations only, based on Thurs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 SECURITY MARKETS 455 MORTGAGES: NEW HOMES SECURITY PRICES FHA- Conventicnal first mortgages Bond prices Common stock price* Volinsured (1941-43=- 10) ume of Period Y c ( e p i n e e l t r d ) I c ( n e e p t s n e e t t r r ) - F c ( e e p e t n e e c t s r . ) , ( M t y i u t r y r a s - . - ) L c p ( o e r p i n a e c t n r e ) / d ( A o l t o h l v l a o a g n u r . s . ) Period C G t U e o o r . n m S v g t . ) . - S l a o t n c a d a te l A C p a A o o te r r A - - Total d t I r u n ia s - - l R ro a a i d l- P u i l u t t i i y c b l- - s ( h t t r i h a n a r o d g e u - s . ) 1961 15.69 (5.98) 1962 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1962 5.60 (5.93) 1963 86.31 111.3 96.8 69.87 73.39 37.58 64.99 4,573 1963 (5 81) 1964 84.46 111.5 95.1 81.37 86.19 45.46 69.91 4,888 1963 5.46 5.84 .64 24.6 73.3 16.3 1964 5.45 5.78 .57 24.8 74.1 17.3 1964—Feb... 84.60 112.3 95.7 77.39 81.96 41.54 67.20 4,639 Mar.. 84.10 109.9 95.2 78.80 83.64 42.88 66.78 5,428 1964—Jan... 5.45 5.83 .64 24.7 74.7 16.7 83.84 110.3 94.7 79.94 84.92 43.27 67.30 5,616 Feb... 5.45 5.81 .58 24.7 74.8 17.2 May'.' 84.38 111.6 94.7 80.72 85.79 44.86 67.29 4,959 A M p a r r . . . . 5 5 . . 4 4 5 5 5 5 . . 7 7 9 9 . .5 5 5 5 2 2 4 4 . . 8 5 7 73 4 . . 9 6 1 1 7 7 . . 2 2 J J u u n ly e . . . . 8 8 4 4 . . 7 7 0 0 1 1 1 1 2 1 . . 1 8 9 9 5 4 . . 2 9 8 83 0 . . 2 2 2 4 8 8 8 5 . . 1 1 9 3 4 4 6 8 . . 2 9 9 3 7 6 0 7 . . 3 4 5 6 4 4, , 6 3 6 7 3 2 M J J A S u u e u a n l p y g y e t . . . . . . . . . . 5 5 5 5 5 . . . . . 4 4 4 4 4 5 5 6 6 6 5 5 5 5 5 . . . . . 7 7 7 7 7 7 6 6 7 7 . . . . . 5 5 5 5 5 7 9 2 2 8 2 2 2 2 2 4 4 5 5 4 . . . . . 7 5 4 0 7 7 7 7 7 7 3 3 4 4 4 . . . . . 9 7 3 4 2 1 1 1 1 1 7 7 7 7 7 . . . . . 3 8 4 6 0 N D A S O e o u c e p t c v g . t . . . . . . . . . . 8 8 8 8 8 4 4 4 4 4 . . . . . 8 3 6 5 3 1 1 5 9 7 1 1 1 1 1 1 1 1 1 1 2 2 1 1 0 . . . . . 0 6 8 0 9 9 9 9 9 9 5 5 5 5 5 . . . . . 1 3 1 2 3 8 8 8 8 8 4 5 2 3 3 . . . . . 8 4 0 4 9 5 4 0 1 6 9 8 8 8 8 0 9 8 8 6 . . . . . 3 7 7 2 7 6 5 1 7 0 4 4 4 4 4 5 8 7 8 7 . . . . . 7 6 0 1 1 5 9 1 4 7 7 7 7 7 7 4 3 2 4 1 . . . . . 3 3 0 1 2 9 7 7 7 4 4 4 4 5 3 , , , , , 8 9 7 9 2 4 2 2 1 2 3 8 9 9 8 Oct... 5.45 5.75 .58 24.5 73.2 17.4 Nov.. 5.45 5.75 .55 24.7 73.5 17.4 1965—Jan... 84.56 '114.0 95.5 86.12 91.04 46.79 75.87 5,457 Dec... 5.45 5.76 .59 25.2 73.9 17.8 Feb... 84.40 113.4 95.5 86.75 91.64 46.76 77.04 5,910 1965—Jan... 5.45 5.79 .59 24.7 74.0 17.5 Week Feb 5.45 ending— Jan. 30 84.67 114.2 95.7 87.21 92.20 47.36 76.81 6,163 Feb. 6 84.46 114.2 95.6 87.52 92.52 47.20 77.33 5,841 1 Last 6 months only. 13 84.42 114.2 95.4 86.47 91.32 46.51 77.11 5,935 20 84.36 112.9 95.5 85.95 90.74 46.35 76.76 5,578 NOTE.—Annual data are averages of monthly figures. Yields 27 84.36 112.1 95.6 87.11 92.07 47.02 76.94 6,379 on FHA-insured mortgages are derived from weighted averages of FHA field-office opinions on private secondary market prices for Sec. 203, 30-year mortgages, with the minimum down pay- NOTE.—Annual data are averages of monthly figures. Monthly and weekly ment, a maximum permissible interest rate of 5*4 per cent, and data are averages of daily figures unless otherwise noted and are computed as an assumed prepayment period of 15 years. Price data are follows: reported as of the first of the succeeding month. U.S. Govt. bonds, derived from average market yields in preceding table on basis Conventional first mortgages, Home Loan Bank Board in of an assumed 3 per cent, 20-year bond. cooperation with Federal Deposit Insurance Corporation be- Municipal and corporate bonds, derived from average yields, as computed by ginning in late 1962; interest rate data for earlier years—in Standard and Poor's Corp., on basis of a 4 per cent, 20-year bond; Wed. closing parentheses—are based on estimates from Federal Housing prices. Administration. Common stocks. Standard and Poor's index. Volume of trading, average daily trading in stocks on the N.Y. Stock Exchange for a 5V£-hour trading day. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans ttTothers than N. Y. Stock Exchange brokers and dealers for pur- Money borrowed on— firms secured by— chasing and carrying— Cus- Months Total tomers securities net other than Other securities free U.S. Govt. se G c U u o . r S v it t . i . es se O cu th ri e ti r es se G c U u o . r v S it t . i . es se O cu th ri e ti r es se G c U u o . r S v it t . i . es Total Customer Other a c b n re a c d l e - i s t collateral collateral 1961—Dec 5,602 35 4,259 125 1,343 48 2,954 2,572 382 1,219 1962—Dec 5,494 24 4,125 97 1,369 35 2,785 2,434 351 1,216 1963—Dec 7,242 26 5,515 140 1,727 32 4,449 3,852 597 1,210 1964—Feb 7,120 21 5,384 97 1,736 33 4,158 3,738 420 1,199 Mar 7,141 21 5,366 97 1,775 18 4,138 3,646 492 1,231 7,314 21 5,510 101 1,804 17 4,411 3,916 495 1,165 M^y!!!! 7,277 19 5,439 96 1,838 113 4,362 3,868 494 1,138 June. 7,229 18 5,370 94 1,859 156 4,275 3,766 509 1,146 July. 7,160 25 5,289 70 1,871 266 4,129 3,672 457 1,114 Aug.. 7,096 21 5,187 69 1,909 191 4,090 3,618 472 1,077 Sept.. 7,142 19 5,221 81 1,921 109 4,122 3,568 554 1,145 Oct.. 7,101 20 5,185 69 1,916 102 4,053 3,528 525 1,155 Nov.. 7,108 20 5,160 64 1,948 184 3,951 3,469 482 1,131 Dec. 7,053 21 5,079 72 1,974 222 3,910 3,393 '517 1,169 1965—Jan 6,940 33 4,986 70 1,954 177 3,763 3,317 446 1,207 Feb 6,872 31 5,007 76 1,865 132 3,753 3,264 489 1,254 NOTE.—Data in first 3 cols, and last col. are for end of month; in other have been transferred to other member firms and are reported in their cols, for last Wed. debit figures from the month received (some in Dec. 1963, more in Jan. Net debit balances and broker and dealer credit: Ledger balances of 1964). Debit balance totals for the period Oct.-Jan., therefore, are not member firms of N.Y. Stock Exchange carrying margin accounts, as completely comparable. reported to Exchange. Customers' debit and free credit balances exclude Bank loans to others than brokers and dealers: figures are for weekly balances maintained with reporting firm by other member firms of national reporting member banks. Before July 1959, loans for purchasing or securities exchanges and balances of reporting firm and of general part- carrying U.S. Govt. securities were reported separately only by N.Y. ners of reporting firm. Balances are net for each customer—i.e., all ac- and Chicago banks. Accordingly, for that period the fifth col. includes counts of one customer are consolidated. Money borrowed includes any loans for purchasing or carrying such securities at other reporting borrowings from banks and from other lenders except member firms of banks. Composition of series also changed beginning with July 1959; national securities exchanges. revised data for the new reporting series (but not for the breakdown of Nov. data on customers* net debit balances exclude amounts carried loans by purpose) are available back through July 1958 and have been by a large former member firm in liquidation; most of these accounts incorporated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 OPEN MARKET PAPER; SAVINGS INSTITUTIONS MARCH 1965 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Heldby- Based on— End of period Accepting banks F.R. Goods stored in or Total Banks Im- Ex- shipped between Placed Placed Others ports ports Dollar points in— Total through direct- into from exdealers * ly 2 Own Bills Own For- United United change Total bills bought acct. eign States States 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 31,911 1,194 302 238 64 49 68 775 254 349 83 244 263 1959 3,202 677 2,525 1,151 319 282 36 75 82 675 357 309 74 162 249 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 6,000 2,088 3,912 2,650 1,153 865 288 110 86 ,301 541 778 186 171 974 1963 6,747 1,928 4,819 2,890 1,291 1,031 260 162 92 1,345 567 908 56 41 1,317 1964 Jan 7,765 2,042 5,723 2,938 1,393 1,025 368 68 91 1,386 557 962 70 39 1.310 Feb 8,119 2,079 6,040 3,056 1,466 1,095 371 64 95 ,431 596 983 94 31 1,351 Mar 7,737 2,038 5,699 3,102 J 1Q5 1,042 353 125 110 1,473 590 990 87 35 1,401 Apr 7,920 2,039 5,881 3,102 ,355 1,060 295 93 117 1,536 587 963 105 36 1,411 May 8,326 1,973 6,353 3,049 ,418 1,105 313 47 146 1,438 576 941 73 34 1,426 June 8,036 1,948 6,088 3,149 ,370 1,113 257 83 146 1,550 567 929 82 27 1,545 July 8,879 2,006 6,873 3,137 ,455 1,121 334 56 137 1,489 576 949 74 24 1,513 Aug 8,879 2,070 6,809 3,127 ,486 1,145 341 36 132 1,473 586 922 82 22 1,514 Sept 8,444 2,220 6,224 3,175 ,423 1,127 297 99 127 ,525 609 918 113 36 1,499 Oct 9,343 2,431 6,912 3,222 ,400 1,164 236 81 126 1,614 647 935 106 34 1,500 Nov 9,146 2,438 6,708 3,217 458 1,195 263 63 125 ,570 657 955 102 40 1,463 Dec 8,361 2,223 6,138 3,385 ,671 1,301 370 94 122 498 667 999 111 43 I 565 1965—Jan 8,928 2,143 6,785 3,276 ,535 1,308 227 115 122 ,504 662 956 79 34 ,545 1 As reported by dealers; includes finance co. paper as well as other 3 Beginning with Nov. 1958, series includes all paper with maturity commercial paper sold in the open market. of 270 days or more. Figures on old basis for Dec. were (in millions): 2 As reported by finance cos. that place their paper directly with total $2,739; placed directly $1,899. investors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— Total Mortgage loan End of period State Corpo- Cash Other liabili- Depos- Other Surplus commitments 3 Mort- U.S. and rate assets assets ties its 2 liabili- acgage Other Govt. local and and ties counts govt. other i surplus 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 1956 19 559 248 7 982 675 3 549 920 448 33 381 30 026 369 2 986 1957 20,971 253 7,583 685 4,344 889 490 35,215 31,683 427 3,105 1958 23,038 320 7,270 729 4,971 921 535 37,784 34,031 526 3,227 89,912 1,664 1959 * 24,769 358 6,871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 1,170 I960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961... 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 1962 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 114,985 2,548 1963 36,007 607 5,863 440 5,074 912 799 49,702 44,606 9<n 4,153 104,326 2,549 1964 Jan 36,352 667 5,951 440 5,097 849 823 50,179 45,006 ,023 4,150 102,694 2,228 Feb 36,635 703 6,033 427 5,135 880 800 50,614 45,266 1,143 4,206 113,062 2,391 Mar 36,933 704 6,117 424 5,151 887 825 51,042 45,761 1,036 4,244 120 396 2,504 Apr 37,267 646 6,064 423 5,138 819 820 51,178 45,851 1,118 4,209 123,979 2,586 May 37,601 714 6,052 419 5,150 847 827 51,610 46,124 1,225 4,261 124,416 2,661 37,971 676 6,024 409 5,145 906 871 52,001 46 624 1,102 4 275 132 625 2 690 July 38,407 705 6,025 409 5,142 863 867 52,417 46,918 1,222 4,277 132,726 2,701 Aue 38,764 764 6,095 407 5,179 895 879 52,983 47,274 1,356 4,352 134,371 2,743 Sept 39,146 739 6,082 409 5,193 883 887 53,339 47,757 1,200 4,382 134,277 2,736 Oct 39,538 727 5,849 403 5,178 898 889 53,482 47,982 .146 4,354 139,066 2,825 Nov 39,898 760 5,785 399 5,180 905 898 53,825 48,188 l| 223 4,414 136,470 2,811 Dec 40,312 736 5,776 397 5,101 1,005 889 54,217 48,833 989 4,395 135,992 2,820 1 Includes securities of foreign governments and international organi- NOTE.—National Assn. of Mutual Savings Banks data; figures are zations 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 the BULLETIN; the latter are for call dates 2 See note 3, p. 443. and are based on reports filed with U.S. Govt. and State bank supervisory 3 Commitments outstanding of banks in N.Y. State as reported to the agencies. Loans are shown net of valuation reserves. Savings Banks Assn. of the State of N.Y. * 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

MARCH 1965 SAVINGS INSTITUTIONS 457 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort- Real Policy Other assets Total U S n ta i t t e e s d Sta lo te c a a l ndForeign i Total Bonds Stocks gages estate loans Statement value: 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,840 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,738 1957 101,309 10,690 7,029 2,376 1,285 44,057 40,666 3,391 35,236 3,119 3,869 4,338 1958 107,580 11,234 7,183 2,681 1,370 47,108 42,999 4,109 37,062 3,364 4,188 4,624 1959 113,650 11,581 6,868 3,200 1,513 49,666 45,105 4,561 39,197 3,651 4,618 4,937 1960 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,683 1962 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 6,024 1963 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 Book value: 1962—Dec... 133,291 12,469 6,171 4,037 2,261 56,565 51,389 5,176 46,957 4,114 6,235 6,951 1963—DeC".. 141,121 12,464 5,813 3,868 2,783 59,434 53,770 5,664 50,596 4,325 6,656 7,646 1964—Jan 141,866 12,365 5,782 3,859 2,724 60,006 54,269 5,737 50,828 4,368 6,729 7,570 Feb.... 142,531 12,506 5,805 3,857 2,844 60,050 54,281 5,769 51,126 4,377 6,772 7,702 Mar.... 143,067 12,421 5,731 3,849 2,841 60,189 54,335 5,854 51,441 4,391 6,819 7,806 Apr.... 143,676 12,389 5,689 3,853 2,847 60,426 54,525 5,901 51,806 4,402 6,872 7,781 May... 144,312 12,436 5,731 3,827 2,878 60,613 54,674 5,939 52,117 4,416 6,909 7,821 June... 144,964 12,346 5,633 3,822 2,891 60,793 54,772 6,021 52,466 4,437 6,955 7,967 July. . . 145,823 12,476 5,758 3,809 2,909 61,275 55,213 6,062 52,832 4,446 6,947 7,847 Aug 146,475 12,507 5,763 3,822 2,922 61,355 55,228 6,127 53,173 4,462 6,986 7,992 Sept.... 147,172 12,557 5,787 3,846 2,924 61,458 55,262 6,196 53,560 4,487 7,024 8,086 Oct... . 147,977 12,555 5,769 3,866 2,920 61,722 55,487 6,235 53,984 4,499 7,060 8,157 Nov.... 148,746 12,509 5,699 3,841 2,969 61,968 55,658 6,310 54,404 4,514 7,094 8,257 Dec.. . . 149,318 12,274 5,511 3,808 2,955 62,087 55,697 6,390 55,179 4,521 7,133 8,124 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item, separately, but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E p n er d i o o d f M ga o g r e t s - s G U ec o . u S v r . t i . - Cash Other i a l s a T s b e o i t l t s i a t 2 i l — es S c a a v p i i n ta g l s u R n e d a s i n e v r d i v d e e s d B m or o r n o e w y e 3 d L p o ro an ce s s i s n Other co m l m o e a m n n t i s tties profits 4 1941 4,578 107 344 775 6,049 4,682 475 256 636 1945 5,376 2,420 450 356 8,747 7,365 644 336 402 1957 40,007 3,173 2,146 2,770 48,138 41,912 3,363 1,37° 1,484 862 1958 45,627 3,819 2,585 3,108 55,139 47,976 3,845 1,444 1,161 713 1,475 1959. 53,141 , 4,477 2,183 3,729 63,530 54,583 4,393 2,387 1,293 874 1,285 1960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,230 1963 90,849 6,440 3,964 6,178 107,431 91,205 7,208 5,011 2,520 1,487 2,613 1964—Jan 91,453 6,598 3,568 5,989 107,608 91,669 ,235 4,590 2,364 1,750 2,664 Feb 92,163 6,662 3,601 6,098 108,524 92,423 ,250 4,377 2,336 2,138 2,818 Mar 93,069 6,733 3,613 6,233 109,648 93,525 ,219 4,323 2,430 2,151 2,964 Apr 93,978 6,717 ,467 6,353 110,515 93,846 ,230 4,601 2,464 2,374 3,110 May 94,971 6,712 ,504 6,738 111,925 94,828 ,243 4,544 2,503 2,807 3,148 June 96,067 6,685 ,795 6,728 113,275 96,593 ,511 4,980 2,538 *1,653 3,107 July 97,111 6,687 ,339 6,536 113,673 96,609 ,531 4,991 2,559 1,983 3,074 Aug 98,059 6,736 ,354 6,649 114,798 97,382 7,551 4,992 2,487 2,386 2,982 Sept 98,895 6,778 ,391 6,751 115,815 98,455 7,555 5,065 2,388 2,352 2.911 Oct 99,731 6,820 3,413 6,823 116,787 99,206 7,565 5,029 2,306 2,681 2,896 Nov.r 100,418 6,961 3,497 7,052 117,928 100,065 7,578 4,998 2,236 3,051 2,821 Dec 101,213 6,969 4,007 6,976 119,165 101,744 7,901 5,590 2,212 1,718 2,588 1 Includes other loans, stock in the Federal home loan banks, other 4 The decline in reserves and surplus from Feb. to Mar. 1964 is coninvestments, real estate owned and sold on contract, and office buildings centrated in state-chartered savings and loan assns. in Calif, where the and fixtures. accounting system is being revised. 2 Before 1958 mortgages are net of mortgage-pledged shares. Asset items will not add to total assets, which include gross mortgages with no NOTE.—Federal Savings and Loan Insurance Corp. data; figures are deductions for mortgage-pledged shares. Beginning with Jan. 1958, no estimates for all savings and loan assns. in the United States. Data deduction is made for mortgage-pledged shares. These have declined beginning with 1954 are based on monthly reports of insured assns. and consistently in recent years and amounted to $42 million at the end of annual reports of noninsured assns. Data before 1954 are based entirely 1957. on annual reports. Data for current and preceding year are preliminary 3 Consists of advances from FHLB and other borrowing. even when revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL FINANCE MARCH 1965 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Derivation of U. S. Government cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net Bu n d e g t et f T P u r l n u u d s s s t : g I L n o e t v r s t a s . - : l E r T e q c o u t t a s a l . l s 2 : Budget f T P u r l n u u d s s s t : A m L d e e ju n ss s ts : t- E p T q a o u y t a t a s l l s . : p re a o c y r t t s s . . C & (d d h a i i e a r n g b n e e t c g n t e .) a I t g L n r e v b u e n e s s y . s * t s s : & t. L N c d e a e o s s b n h s t - : Eq N u e a t ls: Cal. year—1962.. 84,709 25,471 3,928 106,206 91,907 25,386 5,419 111,874 -5,668 9,055 1,109 1,386 6,560 1963.. 87,516 29,255 4,144 112,575 94,188 28,348 5,313 117,222 -4,647 7,672 2 535 883 4,255 1964.. 88,696 30,742 4,324 115,035 96,944 28,925 5,069 120,800 -5,765 9,084 2,156 619 6,309 Fiscal year—1961. 77,659 23,583 3,945 97,242 81,515 22,793 4,766 99,542 -2,300 2,102 856 536 712 1962. 81,409 24,290 3,776 101,865 87,787 25,141 5,266 107,662 -5,797 11,010 492 923 9,594 1963. 86,376 27,689 4,281 109,739 92,642 26,545 5,436 113,751 -4,012 8,681 2,069 1,033 5,579 1964. 89,459 30,331 4,190 115,530 97,684 28,885 6,237 120,332 -4,802 7,733 2,775 1,099 3,859 Half year: 1963—Jan.-June 47,250 15,851 2,352 60,728 45,356 13,536 3,241 55,650 5,078 2,538 2,939 169 -569 July-Dec. 40,266 13,404 1,792 51,847 48,832 14,812 2,072 61,572 -9,725 5,135 -403 714 4,824 1964—Jan.-June 49,193 16,927 2,398 63,683 48,852 14,073 4,165 58,760 4,923 2,598 3,178 385 -965 July-Dec. 39,503 13,815 1,926 51,352 48,092 14,852 904 62,040 -10.688 6,486 -1,022 234 7,274 Month: 1964—Jan 5,853 1,088 303 6,628 8,492 2,257 '826 '9,923 -3,295 -1,059 -1,328 86 183 Feb 8,047 3,705 222 11,525 7,521 2,063 191 9,393 2,132 1,550 830 133 586 Mar 10,148 2,330 304 12,168 7,871 2,227 707 9,390 2,778 -744 167 35 -946 Apr 6,609 1,942 212 8,334 7,930 2,935 703 10,163 -1,829 -1,880 -1,491 22 -411 May 6,136 4,744 222 10,652 7,511 2,067 45 9,533 1,119 4,049 3,230 61 758 June.... 12,401 3,117 1,136 14,376 9,527 2,523 1,548 10,502 3,874 683 1,770 48 -1,136 July 3,487 1,532 270 4,745 7,410 2,713 -95 10,217 -5,472 -594 -1,205 38 572 Aug 6,653 4,171 267 10,552 8,083 2,524 -611 11,218 -666 3,284 1,960 67 1,257 Sept 10,072 1,994 320 11,739 8,450 2,266 1,016 9,700 2,039 1,412 -251 82 1,581 Oct 3,398 1,224 271 4,344 8,329 2,481 298 10,512 -6,168 93 -1,556 16 1,633 Nov 7,037 2,928 240 9,716 7,051 2,073 -156 9,281 436 2,976 809 153 2,015 Dec 8,856 1,966 557 10,256 8,770 2,794 453 11,112 -857 -685 -780 -122 217 1965—Jan 5,642 1,016 262 6,387 7,676 2,456 774 9,358 -2,971 -240 -1 ,787: 110 1,437 Effects of operations on Treasurer's account Change in Treasurer's account Net operating transactions Net financing transactions cash balances (end of period) Agencies & trusts Change Operating bal. Period s B d u u e r o f d p i r g c lu i e t s t f T un ru d s s t 3 Clearing i M ssu ar a k n e c t e i I n n v U e . s S t, . p d g u i r i r b o n e l s c i s c t T o r H u e t a e s s l i d u d r e y a T u cc r r e e o a r u ' s s n - t Balance F.R. I T an a d x O as n t s h e e t e ts r se o c f .3 G se o c v . 3 t. debt banks a l c o c a t n s. Fiscal year—1961.. -3,856 790 285 -538 -856 2,640 -222 -1,311 6,694 408 5,453 833 1962.. -6,378 -851 566 1,780 -492 9,230 118 3,736 10,430 612 8,815 1,003 1963.. -6,266 1,143 122 1,022 -2,069 7,659 -74 1,686 12,116 806 10,324 986 1964.. -8,226 1,446 948 1,880 -2,775 5,853 206 -1,080 11,036 939 9,180 917 Half year: 1963—Jan.-June. 1,894 2,315 720 148 -2,939 2,390 -78 4,607 12,116 806 10,324 986 July-Dec, -8,567 -1,408 -434 1,648 403 3,487 -129 -4,741 7,375 880 5,621 874 1964—Jan.-June. 341 2,854 1,381 232 -3,178 2,366 334 3,661 11,036 939 9,180 917 July-Dec.., -8,589 -1,036 -1,256 258 1,022 6,228 367 -3,741 7,295 820 5,377 1,098 Month: 1964—Jan -2,639 -1,169 '437 -289 1,328 -770 -3,111 4,264 791 2,451 1,022 Feb 526 1,642 -163 -230 -830 1,780 194 2,531 6,795 1,024 4,783 988 Mar , 2,277 103 368 24 -167 -767 -23 1,861 8,656 831 6,940 885 Apr , -1,322 -993 468 109 1,491 -1,989 335 -2,571 6,085 925 3,974 1,186 May , -1,375 2,677 -237 117 -3,230 3,931 -333 2,215 8,300 890 6,557 853 June , 2,874 594 364 502 -1,770 181 9 2,735 11,036 939 9,180 917 July -3,923 -1,181 -403 -64 1,205 -530 -10 -4,886 6,150 785 4,505 860 Aug -1,430 1,648 -946 378 -1,960 2,906 -43 640 6,789 939 5,085 765 Sept 1,622 -273 613 -108 251 1,520 226 3,400 10,189 933 8,339 917 Oct -4,930 -1,257 11 67 1,556 26 -30 -4,498 5,691 687 4,155 849 Nov , -15 855 -549 125 -809 2,851 46 2,412 8,104 974 6,182 948 Dec -829 17 -139 780 -546 178 -809 7,295 820 5,377 1,098 1965—Jan -2,033 -1,440 402 -282 1,787 42 25 -1,550 5,745 914 3,612 1,219 1 Primarily interest payments by Treasury to trust accounts and accumu- 5 Includes technical adjustments not allocated by functions. lations to U.S. employee trust funds. « Fiscal year cash payments for agriculture and international affairs 2 Includes small adjustments not shown separately. reflect a shift of the Food for Peace program out of agriculture and into 3 Includes net transactions of Govt.-sponsored enterprises. international affairs. Data are not yet available to make the adjustment • Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing on a monthly or half-yearly basis. accounts. NOTE.—Based on Treasury Dept. and Bureau of the Budget data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 FEDERAL FINANCE 459 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Estate Int. Total W I i n th d - ivid O ua th l er Corp. Total a L b n i a q d c u c t o o o r - H w ig ay h- Total O R a A n .R d S . I e U m n p - l. a g n if d t t C o u m s s - r m e a p e n n a d y ts - fu R n e d - s Other held Fiscal year—1961... 97,24232,978 13,175 21,765 12,064 5,204 2,923 16,381 12,981 2,896 1,916 1,008 2,105 5,976 1,826 1962... 101,86536,246 14,403 21,296 12,752 5,367 3,080 17,032 13,197 3,334 2,035 1,171 1,358 6,266 1,838 1963... 109,739 3^87j19 14,269 22,336 13,410 5 521 3,405 19,729 15,128 4,107 2,187 1,241 1,815 6,571 2,604 1964... 115,530 39,259 15,331 24,301 13,950 5,630 3,646 21,936 17,405 4,037 2,416 1,284 1,702 7,148 2,499 Half year: 1963—Jan.-June.. 60,72819,761 10,950 13,526 6,602 2,676 1,649 11,796 9,017 2,532 1,273 602 636 5,766 1,348 July-Dec... 51,847 2200,120 3,465 9,242 7,043 2,940 1,898 9,209 7,373 1,588 992 661 943 1,044 1,216 1964—Jan.-June.. 63,68319,139 11,866 15,059 6,907 2,690 1,748 12,727 10,032 2,449 1,424 623 759 6,104 1,283 July-Dec... 51,352 1"7-,732 3,598 9,989 7,398 n.a. 1,947 9,378 7,535 1,594 1,170 729 900 1,008 1,466 Month: 1964—Jan 6,628 1,432 2,441 583 1,087 385 283 542 294 195 180 101 124 126 264 Feb 11,525 6,105 870 451 1,112 382 320 3,382 2,393 954 184 87 102 944 176 Mar 12,168 3,222 770 6,654 1,121 434 264 1,678 1,527 109 196 108 146 1,960 233 Apr 8,334 889 5,006 684 1,103 465 254 1,394 1,116 239 422 109 119 1,575 183 May 10,652 4,837 561 491 1,195 466 308 4,163 3,242 884 234 100 125 1,196 142 June 14,376 2,654 2,219 6,196 1,290 560 320 1,563 1,457 66 208 117 145 304 288 July 4,745 1,172 377 646 1,234 456 328 904 623 233 219 120 143 219 149 Aug 10,552 4,809 159 419 1,284 496 380 3,455 2,732 684 219 112 123 207 179 Sept 11,739 2,669 2,255 3,950 1,203 502 324 1,256 1,158 56 166 122 132 216 202 Oct 4,344 1,158 264 572 1,176 n.a. 298 639 478 121 205 126 130 176 250 Nov 9,716 4,956 112 449 1,244 n.a. 336 2,238 1,766 435 168 124 220 100 305 Dec 10,256 2,969 430 3,953 1,257 n.a. 280 885 778 65 192 125 152 90 383 1965—Jan 6.387 1.181 2,506 607 1,045 296 508 305 161 183 76 155 107 233 Cash payments to the public Period Total 5 t f i N e d o n e n a s - - a e l af I fa n i t r l s . « s S e p r a e a r - c c e h cu A lt g u r r i e - 6 so N u u r r e a r a - c t l - es t m C r a a o e n n r m d s c p e - . & H d e i o c n v u o g e s m l - . . l H w ab e e 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—1961 99,542 47,685 3,608 744 3,728 2,101 5,107 -103 22,364 945 6,187 7,257 1,678 1962 107,662 51,462 3,976 1,257 4,458 2,223 5,487 1,691 23,975 1,052 6,092 6,940 1,837 1963 113,751 53,429 3,805 2,552 5,703 2,456 5,777 -268 25,698 1,214 5,971 7,427 1,953 1964 120,332 54,514 3,492 4,171 5,846 2,595 6,545 1,674 27,285 1,299 6,107 8,011 2,221 Half year: 1963—Jan.-June 55,649 27,304 1,368 1,527 2,821 1,067 2,679 -1,296 13,347 650 3,010 3,846 972 July-Dec 61,572 26,359 1,031 1,857 4,302 1,455 3,657 1,850 13,162 563 2,956 3,841 1,052 1964—Jan.-June.... 58,761 28,158 962 2,313 3,038 1,139 2,890 -175 14,126 732 3,150 4,170 1,168 July-Dec 62,040 24,569 1,205 2,333 4,255 1,543 4,288 516 13,722 639 2,943 4,258 1,138 Month: 1964— Jan '9,923 4,385 251 355 '714 192 394 -13 '2,434 129 703 269 236 Feb 9,393 4,311 204 317 610 179 424 -383 2,358 120 468 1,393 178 Mar 9,390 4,425 131 359 541 171 446 -101 2,402 140 499 364 181 Apr 10,163 4,594 -152 452 587 174 472 386 2,404 125 457 402 172 May 9,533 4,678 275 326 274 175 460 -245 2,000 106 486 1,394 178 June 10,434 5,765 253 504 325 248 694 181 2,513 112 537 348 223 July 10,217 3,592 201 334 672 235 702 246 2,277 78 485 360 184 Aug 11,218 3,869 265 385 1,120 287 740 16 2,249 129 501 1,378 183 Sept 9,700 4,243 191 386 624 293 759 35 2,229 126 525 317 189 Oct 10,512 4,301 301 387 841 244 779 -48 2,261 94 505 436 200 Nov 9,281 4,052 -190 406 357 229 657 -193 2,299 90 398 1,337 164 Dec 11,112 4,512 437 435 64 J 255 651 460 2,407 122 529 430 218 1965—Jan 9,358 4.018 265 407 384 164 539 -176 2,422 118 658 315 202 1963 1964 1963 1964 Item II III IV III IV HI IV m rv Seasonally adjusted Not seasonally adjusted Cash budget: Receipts... 27.5 27.8 28.5 29.0 29.7 28.5 28.2 28.7 28.2 32.6 27.3 24.5 30.3 33.4 27.0 24.3 Payments.. 28.2 28.5 30.5 30.0 30.5 29.5 30.6 30.2 26.5 29.1 31.0 30.6 28.6 '30.1 31.1 30.9 Net -.7 -.7 -2.0 -1.0 -1.0-2.5 -1.5 1.7 3.4 -3.6 -6.1 1.7 3.2 -4.1 -6.6 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 U.S. GOVERNMENT SECURITIES MARCH 1965 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues3 Total T gr o o t s a s l Marketable Nonmarketable Special End of period gross direct Con- issues 6 debti debt 2 Total Certifi- v ib er le t- Sav- Total Bills cates Notes Bonds * bonds Total 5 ings bonds 1941_Dec 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945_Dec 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29.0 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 1960—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—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—Dec 310.1 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Feb 311.1 310.4 263.2 209.2 53.6 4.2 64.5 87.0 3.2 50.8 49.0 42.9 Mar 310.4 309.6 262.2 208.2 52.5 4.2 64.5 87.0 3.2 50.8 49.1 43.2 Apr 308.4 307.6 261.4 207.4 51.0 4.2 65.1 87.0 3.1 50.9 49.1 42.0 Mav 312.3 311.5 262.2 208.0 52 2 67.3 88.5 3.1 51.0 49.2 45.0 June 312 5 311.7 260.7 206 5 50 7 67 3 88 5 3 1 51 1 49.3 46.6 July . 312.0 311.2 261.1 206 8 51 0 58 6 97 1 3 1 51 2 49.4 45.7 Aug 314.9 314.1 262.2 207.7 52 0 58.6 97.1 3.1 51.4 49.4 47.4 Sept 316 5 315.6 263 8 209 0 53 3 58 6 97 1 3 1 51 7 49.5 47.4 Oct 316.5 315.6 265.0 210.1 55.0 58.1 97.0 3.1 51.8 49.6 46.3 Nov 319 3 318.5 267 4 212 4 56 5 58 9 97 0 3 1 51 9 49.7 46.7 Dec 318 7 317.9 267 5 212 5 56 5 59 0 97 0 3 0 52 0 49.7 46.1 1965—Jan 318.6 318.0 269.4 214.4 58.4 53.2 102.8 3.0 52.1 49.8 44.2 Feb 320.6 319.9 270.0 214.9 58.8 55.5 100.6 3.0 52.1 49.9 45,6 1 Includes noninterest-bearing debt (of which $285 million, on Feb. 28, 5 Includes Series A investment bonds, depositary bonds, armed forces 1965, was not subject to statutory debt limitation) and guaranteed secur- leave bonds, adjusted service bonds, foreign currency series, foreign ities, not shown separately. series, Rural Electrification Administration bonds, and before 1956. 2 Excludes guaranteed securities. tax and savings notes, not shown separately. 3 Includes amounts held by U.S. Govt. agencies and trust funds, which 6 Held only by U.S. Govt. agencies and trust funds. totaled $14,826 million on Jan. 29, 1965. • Includes Treasury bonds and minor amounts of Panama Canal and NOTE.—Based on Daily Statement of U.S. Treasury. postal savings bonds. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E pe n r d 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 n n u .S v c d s . i t t e . s B F a . n R k . s Total m b C 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 a n a o n s n m u c ie e r - - s r c O a o t t r i h o p e n o r s - g S l a o o t n c v a a d 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 n o e e n d i r g a - n l2 t O i m o n r v t i h s s e e c s 3 r . funds 1 bonds securities 1941—Dec 64.3 9.5 2.3 52.5 21A 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 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 22.8 18.0 45.9 22.1 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 20.0 19.0 46.4 17.9 13.4 11.6 1962—Dec 304.0 55.6 30.8 217.6 67.2 6.1 11.5 20.2 20.1 46.9 17.6 15.3 12.7 1963—Dec 310.1 58.0 33.6 218.5 64.3 5.8 11.3 20.6 21.1 48.1 18.2 15.9 13.3 1964—Jan 309.3 56.5 32.8 220.0 62.9 5.9 11.3 21.8 21.2 48.1 18.8 15.9 14.2 Feb 311.1 57.5 33.2 220.5 62.2 6.0 11.3 22.7 21.4 48.2 19.1 15.9 13.6 Mar 310.4 57.6 33.8 219.0 61.6 6.1 11.2 21.4 21.7 48.3 19.6 15.6 13.6 Apr 308.4 56.1 33.2 219.1 61.1 6.0 11.0 21.8 22.6 48.3 18.8 15.3 14.2 May 312.3 59.4 34.2 218.8 60.0 6.0 11.0 22.5 22.6 48.4 19.0 15.4 13.8 312.5 61.1 34.8 216.6 60.2 6.0 10.9 20.2 22.5 48.5 19.0 15.6 13.7 July 312.0 59.9 35.1 217.0 59.3 6.0 10.9 20.5 22.3 48.6 19.3 15.8 14.4 Aug 314.9 61.8 35.2 218.0 60.0 6.0 11.0 20.5 22.6 48.6 18.9 16.0 14.3 Sept 316.5 61.8 35.4 219.3 61.8 6.0 11.2 19.1 22.3 48.7 19.3 16.3 14.6 Oct 316.5 60.5 35.7 220.2 62.1 5.8 11.2 20.2 22.2 48.8 19.4 16.3 14.4 Nov 319.3 61.2 36.8 221.4 63.4 5.7 11.2 20.1 21.9 48.9 19.0 16.4 14.6 Dec 318.7 60.6 37.0 221.1 63.7 5.7 11.1 19.7 21.6 48.9 19.2 r16.7 14.5 1965—Jan 318.6 59.1 36.7 222.8 62.5 5.8 11.3 20.7 22.4 49.0 19.6 16.4 15.1 ^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 corp. 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

MARCH 1965 U.S. GOVERNMENT SECURITIES 461 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 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—Dec. 31. 207,571 89,403 51,539 37,864 58,487 35,682 8,357 15,642 1964—Dec. 31. 212,454 88,451 56,476 31,974 64,007 36,421 6,108 17,467 1965—Jan. 31. 214,411 86,798 58,429 28,369 57,886 43,902 6,107 19,718 U.S. Govt. agencies and trust funds: 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 1,309 2,583 1963—Dec. 31 11,889 1,844 1,366 478 1,910 3,021 2,178 2,936 1964—Dec. 31 12,146 1,731 1,308 424 2,422 3,147 1,563 3,282 1965—Jan. 31 12,465 1,618 1,200 418 1,743 3,853 1,563 3,689 Federal Reserve Banks: 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—Dec. 31 33,593 22,580 4,146 18,434 8,658 2,136 131 1964—Dee. 31 37,044 21,388 6,487 14,901 13,564 1,797 58 237 1965—Jan. 31 36,741 21,143 6,277 14,866 13,506 1,797 58 237 Held by public: 1961—Dec. 31. 158,600 65,526 39,512 26,014 55,763 15,961 10,016 11,334 1962—Dec. 31. 162,553 67,952 44,662 23,290 49,381 29,158 3,188 12,873 1963—Dec. 31. 162,089 64,979 46,027 18,952 47,919 30,525 6,091 12,575 1964—Dec. 31. 163,264 65,331 48,682 16,650 48,021 31,477 4,487 13,948 1965—Jan. 31. 165,205 64,037 50,952 13,085 42,637 38,252 4,486 15,792 Commercial banks: 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—Dec. 31. 54,881 16,703 9,290 7,413 26,107 11,075 533 463 1964—Dec. 31. 53,752 18,509 10,969 7,540 23,507 11,049 187 501 1965—Jan. 31. 52,560 15,901 10,100 5,801 20,778 14,754 188 939 Mutual savings banks: 1961—Dec. 31... 5,867 '686 181 505 1,514 1,708 662 1,298 1962—Dec. 31... 5,793 635 252 383 1,337 2,210 306 1,305 1963—Dec. 31... 5,502 690 268 422 1,211 2,009 377 1,215 1964—Dec 31... 5,434 608 344 263 1,536 1,765 260 1,266 1965—Jan. 31... 5,584 683 452 231 1,301 2,015 260 1,325 Insurance companies: 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—Dec. 31... 9,254 1,181 549 632 2,044 2,303 939 2,787 1964—Dec 31... 9,160 1,002 480 522 2,045 2,406 818 2,890 1965—Jan." 31.. 9,429 938 591 347 1,911 2,710 821 3,048 Nonfinancial corporations: 1961—Dec. 31 10,547 8,697 5,466 3,231 1,747 72 22 1962—Dec. 31 10,750 9,063 6,551 2,512 1,524 149 5 9 1963—Dec. 31 10,427 7,671 6,178 1,493 2.397 290 9 60 1964—Dec. 31 9,136 6,748 5,043 1,705 2,001 272 3 112 1965—Jan. 31 9,474 7,134 5,884 1,250 1,818 386 3 134 Savings and loan associations: 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—Dec. 31 3,253 378 236 142 919 1,202 253 501 1964—Dec. 31 3,418 490 343 148 1,055 1,297 129 447 1965—Jan. 31 3,513 421 321 100 850 1,542 130 570 State and local governments: 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—Dec. 31 12,453 4,637 3,869 768 941 1,502 1,591 3,782 1964—Dec. 31 15,022 4,863 3,961 902 2,014 2,010 1,454 4,680 1965—Jan. 31 15,725 5,470 4,645 825 1,856 2,130 1,434 4,836 AH others: 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—Dec. 31. 66,320 33,719 25,637 8,082 14,301 12,144 2,389 3,767 1964—Dec. 31. 67,341 33,111 27,542 5,570 15,863 12,678 1,637 4,052 1965—Jan. 31. 68,921 33,490 28,958 4,532 14,125 14,714 1,651 4,941 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 782 insurance cos. combined; (2) about 50 per cent by the Ownership. 469 nonfinancial corps, and 488 savings and loan assns.; and (3) about Data complete for U.S. Govt. agencies and trust funds and F.R. Banks 70 per cent by 507 State and local govts. but for other groups are based on Treasury Survey data. Of total mar- Holdings of "all others," a residual, include holdings of all those not ketable issues held by groups, the proportion held on latest date by those reporting in the Treasury Survey, including investor groups not listed reporting in the Survey and the number of owners surveyed were: (1) separately. about 90 per cent by the 5,997 commercial banks, 501 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 U.S. GOVERNMENT SECURITIES MARCH 1965 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Dealers and brokers securities Total W 1 i y th e i a n r y 1 e - a 5 rs y 5 e - a 1 r 0 s 10 O y v e e a r rs U.S. m b C e a o r n m c k ia s - l o A th l e l r Goyt. Other securities 1964—Jan 2,144 1,656 264 159 65 687 36 905 516 99 Feb 1,809 1,336 272 145 56 528 29 737 516 91 Mar 1,685 1,361 213 81 31 563 22 657 443 86 1,849 1,528 234 70 18 590 24 737 498 134 iJay!'.'.'.'.'.'.'. 1,702 1,264 248 165 25 566 29 651 457 120 June 1,488 1,201 170 97 19 458 24 566 439 142 July 1,936 1,433 216 208 79 581 38 784 532 131 Aug 1,453 1,099 197 123 34 406 26 604 417 113 Sept 1,510 1,214 155 102 39 443 20 616 432 117 Oct 1,749 1,476 141 92 41 529 25 719 475 114 Nov 1,864 1,426 271 127 40 533 28 805 '499 131 Dec 2,052 1,596 261 146 49 615 38 835 564 85 1965—Jan 2,405 1,763 307 177 158 689 44 1,036 637 93 Week ending— 1965—Jan. 6 3,882 2,529 792 309 253 1,106 71 1,666 1,038 72 13 2,618 1,921 293 166 239 745 52 1,176 645 54 20 2,054 1,668 166 137 84 584 38 841 591 123 27 1,675 1,271 141 164 100 468 30 747 431 119 Feb. 3 2,018 1,517 261 128 111 592 29 774 623 78 10 1,594 1,215 200 93 85 465 33 671 424 106 17 1,959 1,550 234 78 98 575 31 798 556 102 24 1,747 1,431 197 37 506 27 750 464 120 NOTB.—The transactions data combine market purchases and sales of ties under repurchase agreements, reverse repurchase (resale), or similar U.S. Govt. securities dealers reporting to the F.R. Bank of N.Y. They contracts. Averages of daily figures based on the number of trading do not include allotments of and exchanges for new U.S. Govt. securities, days in the period. redemptions of called or matured securities, or purchases or sales of securi- DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity U.S. Commercial banks Period All Within 1-5 Over se a G c g u e o r n v i c t t i y . es Period so A ur l c l es New Else- C t o io rp n o s r i a- o A th l e l r maturities 1 year years 5 years Y C o it r y k where 1964—Jan. , 3,582 3,218 272 92 163 Feb... 3,475 2,787 468 219 195 1964—Jan 3,646 1,139 1,019 1,159 328 Mar... 2,775 2,486 323 -34 195 Feb 3,645 L,048 879 1,355 363 Apr... 2,393 2,316 156 -78 170 Mar 2,971 784 613 1,247 326 May.. 3,087 2,670 164 253 231 Apr 2,390 545 556 1,065 225 June.. 3,475 3,217 91 167 318 May 3,082 711 724 1,347 300 July., . 3,817 3,121 229 468 225 3,541 981 761 1,493 307 Aug... 4,313 2,978 552 782 275 July 4,156 ,250 871 1,671 364 Sept... 3,954 3,302 373 280 250 Aug 4,186 ,144 924 1,703 416 Oct.... 3,358 2,966 231 160 262 Sept 4,011 1,255 1,069 1,253 434 Nov... 3,692 3,073 479 140 313 Oct 3,299 845 835 1,258 361 Dec , 3,252 2,675 419 159 282 Nov 3,706 ,020 963 1,192 531 Dec 3,399 1,029 781 1,056 533 1965—Jan.... 3,812 2,882 196 734 246 1965—Jan 4,354 ,323 1,229 ,206 596 Week ending- Week ending- 1964—Dec. ,I.. 2,926 2,367 455 105 322 Dec. 2... <?.. 2,739 2,141 434 164 270 9... 3,363 944 833 1,236 350 15.. 3,274 2,663 400 211 252 16... 2,863 607 501 1,427 328 23.. 3,420 2,865 385 170 288 3,560 1,054 895 981 631 3(3.. 3,856 3,266 451 140 296 23... 3,500 1,235 873 842 551 30... 3,668 1,254 828 933 653 Jan. (5.. 3,756 3,245 720 -209 309 13.. 3,535 2,491 247 797 258 Jan. 6. .. 4,048 ,225 934 1,070 820 2(). . 3,875 2,795 i 1,082 209 13... 4,750 ,452 1,335 1,254 710 2'7. . 3,911 2,959 21 932 240 20... 4,694 1,444 1,534 1,273 444 27... 3,980 1,114 1,101 1,273 492 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the l All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than note to the opposite table on this page. dealer trading positions. Average 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

MARCH 1965 OUTSTANDING SECURITIES 463 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, FEBRUARY 28, 1965 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Feb. 28, 1965.. 1,001 July 29, 1965 1,003 Oct. 1.1966 li/i 357 Feb. 15, 1969 4 1,844 Mar. 4, 1965.. 2,101 July 31, 1965 1,000 Nov. 15, 1966 4 2,254 Oct. 1,1969 4 6,262 Mar. 11, 1965.. 2,202 Aug. 5,1965 1,004 Feb. 15, 1967. 2,358 Feb. 15,1970 4 4,382 Mar. 18, 1965., 2,201 Aug. 12,1965 1,001 Apr. 1, 1967. 270 Aug. 15,1970 4 4,129 Mar. 22, 19651. 2,504 Aug. 19, 1965 1,000 Aug. 15, 1967. 2,931 Aug. 15, 1971 4 2,806 Mar. 25, 1965.. 2,109 Aug. 26, 1965 1,003 Oct. 1967 457 Nov. 15,1971 3% 2,760 Mar. 31, 1965.. 1,001 Aug. 31,1965 1,000 Apr. i 1968 212 Feb. 15, 1972 4 2,344 Apr. 1,1965.. 2,100 Sept. 30, 1965 1,001 Oct. , 1968 115 Aug. 15, 1972 4 2,579 Apr. 8,1965.. 2,003 Oct. 31, 1965 1,000 Apr. , 1969 61 Aug. 15, 1973 4 3,894 Apr. 15, 1965.. 2,104 Nov. 30, 1965 1,001 Oct. , 1969 103 Nov. 15, 1973 4i/s 4,357 A A A p p p r r r . . . 2 2 3 9 0 2 , , , 1 1 1 9 9 9 6 6 6 5 5 5 . . . . . . 2 2 1 , , ,0 2 2 0 0 0 1 1 6 D Ja e n c . . 3 3 1 1 , , 1 1 9 9 6 6 6 5 1 1 , , 0 0 0 0 3 0 Tr J e u as n u e r y 1 5 b , o n 1 d 9 s 62-67...2Vi 1,431 N F M e o a b v y . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 7 7 7 4 4 4 4 3 4 i % y /8 4 2 3 1 , , ,5 2 1 3 2 4 2 6 4 May 6,1965.. 2,202 Dec. 15, 1963-68... 2Vi 1,793 May 15, 1975-85... 414 1,218 May 13, 1965.. 2,201 Treasury notes June 15, 1964-69... 2Vi 2,617 June 15, 1978-83...3iy4 1,585 May 20,1965.. 2,201 Apr. 1,1965 ._ 466 Dec. 15, 1964-69... 2^ 2,537 Feb. 15, 1980 4 2,609 May 27, 1965.. 2,201 May 15,1965 4 1,816 Mar. 15, 1965-70...2% 2,413 Nov. 15, 1980 3% 1,913 May 31, 1965.. 1,000 May 15,1965 3 6,620 May 15,1966 3% 1,677 May 15,1985 3^ 1,128 June 3,1965.. 1,000 Aug. 13, 1965 3 6,202 Aug. 15, 1966 3 1,024 Feb. 15, 1990 3& 4,904 June 10, 1965.. 1,001 Aug. 13,1965 3 1,066 Nov. 15, 1966 3% 1,851 Aug. 15, 1987-92...4i| 3,828 June 17,1965.. 1,001 Oct. 1,1965 1 315 Mar. 15, 1966-71...2V 1,401 Feb. 15, 1988-93 4 250 J J u u n n e e 2 2 2 4 , , 1 19 9 6 6 5 5 . 1 . 3 1 , ,0 2 0 6 5 3 N N o o v v . . 1 1 5 5 , , 1 1 9 9 6 6 5 5 3 8 1 , , 0 6 9 1 9 6 J S u e n p e t. 1 1 5 5 , , 1 1 9 9 6 6 7 7 - -7 7 2 2 . . . . . . 2 2 V V 1 1 , , 2 9 8 5 6 2 M Fe a b y . 1 1 5 5 , , 1 19 9 9 8 5 9 -94... 41/ 3 8 2 1 , ,5 3 6 7 0 8 June 30,1965.. 1,001 Feb. 15, 1966 3% 2,196 Nov. 15, 1967 35/ 2,019 Nov. 15, 1998 3Vi 4,427 July 1, 1965.. 1,002 Feb. 15,1966 3% 2,600 Dec. 15, 1967-72... 2V 2,710 July 8,1965.. 1,003 Apr. 1,1966 IVi 675 May 15, 1968 3* 2,460 Convertible bonds July 15, 1965.. 1,001 May 15,1966 4 9,519 Aug. 15, 1968 33/ 3,747 Investment Series B July 22, 1965.. 1,001 Aug. 15, 1966 4 5,156 Nov. 15, 1968 3" 1,591 Apr. 1, 1975-80... 23^ 2,963 1 Tax anticipation issue. NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. FEDERALLY SPONSORED AGENCIES, JANUARY 31, 1965 Agency, a t n y d p e c o a u n p d o n d a r t a e t e of issue, Maturity o ( A f m m d i o l o l l i u l o a n n r t s s) Agency, a n ty d p c e o a u n p d o n d a r t a e t e of issue, Maturity o ( A f m m d il o o l l i u l o a n n r t s s) Federal home loan banks Federal intermediate credit banks Notes: Debentures: Apr. 15, 1964 4.15 Feb. 15, 1965 393 May 4,1964 4i/8 Feb. 1, 1965 290 May 15, 1964 4.10 15, 1965 430 June 1,1964 4.05 Mar. 1, 1965 259 J O u c n t e . 1 1 5 5 , , 1 1 9 96 6 4 4 4i/ 4 8 J M u * n a e y1 1 7 5 , , 1 1 9 9 6 6 5 5 2 5 5 2 0 5 J A u u ly g . 3 1 , , 1 1 9 9 6 6 4 4 4.10 4 A M p a r y . 3 1 , , 1 1 9 9 6 6 5 5 2 2 1 4 7 9 Aug. 17, 1964 3.95 July 15, 1965 446 Sept. 1,1964 3.95 June 1, 1965 204 Sept. 15, 1964 4.05 Aug. 16, 1965 552 Oct. 1,1964 4 July 1, 1965 186 Oct. 15, 1964 4.05 Sept.15, 1965 172 Nov. 2,1964 4.05 Aug. 2, 1965 195 Nov. 16, 1964 4.10 Oct. 15, 1965 400 Dec. 1, 1964 4.05 Sept. 1, 1965 226 Jan. 1,1965 4.20 Oct. 4, 1965 279 Bonds: Sept. 17, 1962 3% Sept. 15, 1965 175 Federal land banks July 15, 1964 4i/8 Mar. 15, 1966 260 Bonds: D Ju e n c e . 1 9 5 , , 1 1 9 9 6 6 3 4 4 4V y8 4 A N u o g v . . 1 1 5 5 , , 1 1 9 9 6 6 6 6 2 2 0 7 0 5 A Au p g r. . 2 2 0 0 , , 1 19 9 6 6 4 4 . 4V4 4 A A p u r g . . 2 2 3 0 , , 1 1 9 9 6 6 5 5 2 1 0 5 9 9 Oct. 20, 1960 4 Oct. 20,1965 160 June 20,1961 4 Dec. 20,1965 140 Federal National Mortgage Association— Apr. 3,1961 3% Feb. 21,1966 150 secondary market operations M Se a p y t. 20 1 , , 1 1 9 9 5 6 8 1 3 4 V 14 4 J M u a l y y 2 2 0 , , 1 1 9 9 6 6 6 6 1 19 0 3 8 Feb. 15, 1957 4Vs Feb. 15,1967-72 72 Discount notes. 285 May 1,1962 4 May 22,1967 180 Oct. 1,1957 4Vi Oct. 1,1967-70 75 De D S b e e e p c n . t t . u 1 1 r 0 0 e , , s : 1 1 9 9 5 6 7 2 4 3 % " J M u a n r e .1 1 0 0 , ,1 1 9 9 6 6 5 6 1 9 0 8 8 A O M p c a t r y . . 22 1 1 , , , 1 1 1 9 9 9 5 6 6 9 3 3 4 4 V i/ 4 4 8 J O M c u a t n r . e . 2 2 2 0 0 3 , , , 1 1 1 9 9 9 6 6 6 8 8 7 1 1 1 1 8 7 1 6 4 D A M e p a c r r . . . 1 1 1 0 0 2 , , , 1 1 1 9 9 9 5 5 6 9 8 0 4 3 4 ; ' D A M e p a r c r . . . 1 1 1 0 1 2 , , , 1 1 1 9 9 9 6 6 6 9 6 8 9 8 8 3 7 8 J A F u e u l b y g . . 2 1 2 0 5 , , , 1 1 1 9 9 9 5 5 6 9 7 4 4 4 4 % V % 4 A J M u u a l g r y . . 1 2 2 5 0 0 , , ,1 1 1 9 9 9 6 6 6 9 9 8 1 1 6 0 6 0 0 0 Apr. 11, 1960 4i Apr. 10,1970 143 Oct. 20, 1964 414 Oct. 20,1969 209 S J A F D F S u e e e e e u n b b p p c g . e . . t t . . . 1 1 1 1 1 2 1 0 1 2 2 3 1 3 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 0 2 1 0 1 1 0 4 4 4 4 4 5 3 1 ; i ' J J F A F S S u e u e e e u p p n n b b g t t e . e . . . . 1 1 1 1 1 1 1 0 2 0 2 0 0 0 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 3 1 7 1 2 2 0 1 1 1 1 1 9 6 9 4 0 0 1 6 4 8 6 0 0 9 S F J M F F F a e e e e e n a b b b b p y . . . . . t . 2 2 1 1 0 0 5 4 1 4 1 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 5 6 6 5 5 2 0 6 0 3 6 8 4 3 5 4 5 3 3 V i % % % V y /i 8 i i S F F A J M F e u e e e p a l p b b b r y t y . . . . . 2 2 2 2 1 1 1 0 0 0 0 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 1 2 3 4 0 0 0 -78 1 1 1 6 8 8 8 0 4 5 0 2 3 5 9 8 5 Tennessee Valley Authority Banks for cooperatives Short-term notes 45 Debentures: Aug. 3,1964 3.90 Feb. 1,1965 232 Bonds: Oct. 1,1964 4 Apr. 1,1965 196 Nov. 15, 1960 4.40 Nov. 15, 1985 50 D N e o c v . . 2 1 , , 1 1 9 96 64 4 4 4 J M u a n y e 3 1 , , 1 1 9 9 6 6 5 5 1 6 9 7 2 J F u e l b y . 1 1 , , 1 1 9 9 6 6 2 1 4 4 ' & /8 J F u e l b y . 1 1 , , 1 9 1 8 9 7 86 4 5 5 0 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

464 CREDIT AGENCIES; SECURITY ISSUES MARCH 1965 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 i s es and capital (s F M e e c d o o o e r p n r t d e g a r a l a a r g t y N e i o a m n A ti s a o s ) r s n k n a e . l t coo B p f a e o r n a r k t s ives i c n r t e F e d r e i m t d e e b r d a a i n l a k te s F b e l a a d r i e 1 ik Q ra s l XZTIQ. OI period Ad- Deben- Loans Loans v m a t n e o m ce - s I m nv e e n s t t s - i_ a d / n e a d - sn B n a o o n n t d e d s s jv b d ie e e m - r - C s a to p c it k al M l g o a o a g n r e t s - n t a u o n r t e d e s s c a o t o i t v o p e e s r- D t e u b re e s n- co a d u n is n d - ts D t e u b re e s n- M l g o a o a g n r e t s - Bonds bers posits posits (A) (L) (A) (L) (A) (L) (A) (L) 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 1,315 454 222 932 886 919 1,599 1958 . . 1*298 999 75 714 819 769 1,323 1,100 510 252 1,157 1,116 2,089 1,743 1959 2,134 1,093 103 1,774 589 866 1,967 1,640 622 364 1,391 1,356 2,360 1,986 I960 1 981 1,233 90 1,266 938 989 2,788 2,523 649 407 1,501 1,454 2,564 2,210 1961 2,662 1,153 159 1,571 1,180 1.107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962 . . 3,479 1,531 173 2,707 1,214 126 2,752 2,422 735 505 1 840 1,727 3 052 2 628 1963 4^784 1,906 159 4,363 1,151 ,171 2,000 1^788 840 589 2,099 1,952 3,310 2,834 1964—Jan... 4,414 1,730 101 3,961 944 ,176 1,988 1,786 866 589 2,102 1,964 3,333 2,836 Feb... 4,216 1.622 86 3,631 943 1,182 ,985 1,786 849 589 2,163 2,018 3,364 2,886 Mar.. 4,168 1,709 86 3,622 997 ,189 1,984 1,785 815 586 2,238 2,069 3,406 2,886 Apr... 4,444 ,420 72 3,625 957 ,193 1,983 1,781 786 533 2,329 2,157 3,445 2,973 May.. 4,395 1,607 82 3,727 990 ,196 1,984 1,698 747 527 2,412 2,246 3,481 2,973 June.. 4,769 1,804 153 4,201 1,153 ,201 1,962 1,698 757 498 2,504 2,315 3,516 2,973 July.. 4,763 1,476 106 4,042 936 ,208 1,940 1,698 782 498 2,561 2,396 3,551 2,973 Aug.. 4,781 1,622 75 4,169 926 1,210 1,936 1,696 787 538 2,561 2,433 3,586 3,102 Sept.. 4,837 1,597 99 4,165 989 1,212 1,926 1,549 809 538 2,516 2,424 3,620 3,102 Oct... 4,797 ,614 94 4,144 978 :1,214 1,934 1,707 924 576 2,377 2,352 3,652 3,169 Nov.. 4,784 1,889 84 4,369 989 1,216 1,930 1,701 975 638 2,241 2,174 3,680 3,169 Dec... 5,325 1,523 141 4,369 1,199 1,227 i;940 1,601 958 686 2,247 2,112 3,718 3,169 1965—Jan.. . 4,944 1,491 75 4,078 1,013 1,232 1,954 1,723 1,020 686 2,252 2,102 3,765 3,169 NOTE.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the U.S. Mortgage Assn., and Farm Credit Admin. Among the omitted balance Govt.; for a listing of these securities, see preceding page. Loans are sheet items are capital accounts of all agencies, except for stock of home gross of valuation reserves and represent cost for FNMA and unpaid loan banks. Bonds, debentures, and notes are valued at par. They in- principal for other agencies. clude only publicly offered securities (excluding, for the home loan banks, NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds amount Period deliv- Total G g o a e b t a n i l l o e i- n r- s R n e u v e e- PHAi G l U o o a .S v n . t s . State S d a i p s a s u t e n t a t c r d h t i i . c a . t l Other 2 ered 3 Total c E a d ti u o - n R br a o i n d a d g d e s s i U ti t e i s l- 4 H in o g u s s- V a a e n i t s d e ' r- O p p o t u h s r e e - s r 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 1,686 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 1,928 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 1963 10,538 5,855 4,180 254 249 fi?0 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1963—Sept.... 480 333 122 25 94 73 314 712 449 204 33 77 31 103 Oct 1,265 679 567 20 143 424 698 581 1 051 232 102 338 9 371 Nov.... 754 401 310 43 185 208 362 897 729 278 130 221 2 98 Dec 495 401 85 9 69 126 299 1,005 416 158 7 136 1 115 1964—Jan 1,007 606 230 140 31 215 336 456 428 944 273 42 114 141 60 313 Feb... 853 663 181 1 8 214 208 431 868 772 242 33 238 3 30 226 Mar 867 497 355 15 136 262 469 973 812 251 262 136 11 153 Apr 1,266 630 473 141 22 106 558 602 810 1,215 378 59 225 145 407 May 706 472 214 20 141 167 339 1,214 665 258 40 208 45 151 June.... 938 537 258 120 23 71 338 529 696 902 361 42 183 134 181 July.... 940 563 367 11 116 338 486 947 904 401 25 167 * 311 Aug.... 775 244 519 12 n 511 251 834 756 161 73 439 83 Sept 920 509 260 130 20 101 374 445 896 892 206 50 248 133 254 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 to the local authority. NOTE.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt. loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt. loans. (and payment to issuer), which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues 4 Water, sewer, and other utilities. Based on date of sale unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 SECURITY ISSUES 465 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, allissues 1 Prop a o l s l e c d o u rp se o r o a f t e n i e s t s u p e ro s c 5 eeds, Noncorporate Corporate New capital Period Re- Bonds Stock tire- Total G U o . v S t . . 2 G a U c g o y . e S v n 3 . t - . U S l a o t n . c a S d a t . e l Other 4 Total Total o P f l f i u e c b r ly e - d p v l P a a t r c e i- e ly d fe P r r r e e - d C m o o m n - Total Total m N on e e w y* O p p o t u h s r e e - s r m s ri e o t e c i f e n u s t - 1957 30,571 9,601 572 7 6,958 557 12,884 9 957 6,118 3,839 411 2,516 12 661 12 447 11 784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 9*653 6,332 3,320 571 1,334 11 372 10.823 9,907 915 549 1959 31,074 12,322 707 7,681 616 9,748 7J90 3,557 3,63? 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 35,527 12,253 1,448 8,360 303 13,165 9,4^0 4,700 4,720 450 3,294 12 885 1I 017 10 715 1,302 868 1962 29,956 8,590 1,188 8,558 915 10,705 8.969 4,440 4,529 422 1,314 10 501 <).747 8,240 1,507 754 1963 31,616 7,213 1,168 10,107 891 12,237 10,87? 4,714 6,158 342 1,022 12,081 10,553 8,993 1,561 1,528 1964 36,628 10,656 1,205 10,544 760 13,463 10,37? 3,623 6,749 412 2,679 13 300 12-5S7 10 935 1,622 743 1963 Dec 2 312 357 483 13 1,459 1,376 626 751 30 53 1 444 I 415 1 098 316 30 1964 Jan 2 482 474 1,006 16 985 863 338 526 27 95 972 930 85 43 Feb .. 2,022 413 810 89 710 279 342 8 80 702 685 523 162 17 Mar..... 2,121 399 844 73 805 714 361 353 3 87 796 754 677 77 42 Apr... 4,930 1,444 1,204 47 2,234 863 383 480 23 1,349 2,215 2,178 2,094 83 37 May.. 2,267 367 660 85 1,155 1,008 470 537 50 98 1,141 1,069 953 116 72 June.. 3,056 383 275 900 37 1,461 1,091 468 623 82 289 1,441 1,378 1,292 86 63 July.. 2,467 387 260 922 29 869 644 234 411 59 166 854 780 653 127 74 Aug.. 4,128 2,449 160 767 23 728 616 183 433 54 58 718 661 570 91 57 Sept . '2 527 358 952 13 1,204 '1,048 376 '672 23 133 '1 191 1,109 788 '321 82 Oct... '2,909 367 510 816 186 1,032 '819 181 '638 '25 188 1,015 '949 '750 199 '66 Nov.. '4,607 3,242 566 '97 '702 '650 30 '620 9 '43 '695 '646 '533 112 '49 Dec... 3,111 373 1,097 64 1,577 1,434 320 1,114 49 94 1,560 1,419 1,256 163 141 Proposed uses of net proceeds, major groups of corporate issuejrs Manufacturing C m om is m ce e l r la c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e al Period Retire- Retire- Retire- Retire- Retire- Retire- New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu- capital s secu- capital8 secu- capital8 secu- capital8 secu- capital* securities rities rities rities rities rities 1957 4,104 49 579 29 802 1/ 3,821 51 1,441 4 1,701 67 1958 3,265 195 867 13 778 V 3,605 138 1,294 118 1,014 47 1959 1,941 70 812 28 942 1<> 3,189 15 707 * 1 801 6 1960 1,997 79 794 30 672 3<) ,754 51 1,036 1 2,401 71 1961 .... 3,691 287 1,109 36 651 V ?,883 106 1,435 382 2,248 22 1962 2,958 228 803 32 543 u ,341 444 1,276 11 1,825 23 1963 3,312 190 774 55 873 8'1 1,935 699 726 356 2,933 144 1964 2,733 241 998 81 910 31 ,445 280 2,122 35 3,348 74 1963 Dec. 515 13 104 8 118 198 2 64 * 416 6 1964 Jan 149 14 84 1 98 109 26 157 332 1 Feb.. 123 3 60 154 < 155 4 83 * 110 1 Mar 146 17 48 31 174 18 34 1 322 4 Apr 186 6 107 91 i? 151 19 1,377 * 265 3 May 206 10 50 '119 6 441 53 27 r226 1 332 39 50 35 264 4 258 5 439 13 July . 149 40 45 90 207 16 23 4 266 12 164 12 45 20 138 27 16 15 277 3 Sept . 234 36 166 49 296 38 19 2 '345 4 Oct.. '249 '17 '88 r5 44 '297 37 '81 6 189 r* Nov 188 '22 '134 '17 '62 '40 '6 17 r* '204 '2 Dec. 607 26 121 49 115 I] 172 31 3C * 373 28 1 Gross proceeds are derived by multiplying principal amounts or 6 For plant and equipment and working capital. number of units by offering price. 7 Beginning with 1957 this figure differs from that shown on the previ- 2 Includes guaranteed issues. ous page because this one is based on Bond Buyer data. 3 Issues not guaranteed. 8 All issues other than those for retirement of securities. 4 Foreign governments, International Bank for Reconstruction and Development, and domestic nonprofit organizations. NOTE.—Securities and Exchange Commission estimates of new issues 5 Estimated gross proceeds less cost of flotation. maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 SECURITY ISSUES MARCH 1965 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period Newissues Retirements Net change New Retire- Net New Retire- Net issues ments change issues ments change I c n o v s e . s 1 t. Other In co v s e . s 1 t. Other I c n o v s e . s 1 t. Other 1958 15,091 5,273 9,818 9,661 3,811 5,850 2,360 3,070 519 943 1,841 2,127 1959 13,338 4,845 8,492 7,122 3,049 4,073 2,838 3,378 794 1,002 2,044 2,376 I960 13,485 4,962 8,523 8,072 3,078 4,994 2,688 2,725 855 1,029 1,833 1,696 1961 17,503 6,999 10,503 9,194 4,024 5,170 3,855 4,454 1,171 1,804 2,684 2,650 1962 . . . . 14,206 6,457 7,750 8,613 3,749 4,864 3,338 2,255 1,140 1,567 2,198 688 1963 15,552 8,711 6,841 10,556 4,979 5,577 3,049 1,948 1,536 2,197 1,513 -249 1963—III 3,342 1,988 1,355 2,159 1,230 929 734 449 393 364 341 85 IV 4,747 2,476 2,272 3,222 1,121 2,101 931 594 392 962 539 -368 1964—1 4,254 1,960 2,294 2,149 914 1,235 920 1,185 536 510 384 675 II • . 5,020 1,795 3,225 2,867 940 1,927 917 1,235 469 385 448 850 Ill 3,871 1,946 1,926 2,158 1,033 1,126 1,009 704 475 438 535 265 Type of issuer Manu- Commercial Transpor- Public Communi- Real estate facturing and other 2 tation 3 utility cation and financial 4 Period & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1958 2,197 -46 406 11 413 -93 2,133 1,027 494 1,070 206 1,999 1959 316 442 217 162 332 2 1,738 1,028 475 445 994 2,342 I960 399 462 261 -46 173 -42 1,689 635 901 356 1,572 2,164 1961 2,012 415 516 -447 71 "i 1,648 704 149 1,457 775 3,212 1962 .... 1,355 -242 294 -201 -85 -25 1,295 479 1,172 357 833 2,517 1963 1,804 -664 339 -352 316 -19 876 245 438 447 1,806 1,607 1963—HI 378 -54 17 -17 -95 27 148 8 82 131 399 330 IV 574 -275 87 -307 180 -15 288 47 61 129 912 592 1964—1 81 -253 61 16 131 -6 156 70 234 811 572 422 II 291 -65 72 -21 51 31 606 156 225 681 681 516 III 225 28 82 -34 29 -47 290 149 42 92 458 613 1 Open-end and closed-end cos. foreign and include offerings of open-end investment cos., sales of securi- 2 Extractive and commercial and misc. cos. ties held by affiliated cos. or RFC, special offerings to employees, and also 3 Railroad and other transportation cos. new stock issues and cash proceeds connected with conversions of bonds 4 Includes investment cos. into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of issues for that purpose NOTE.—Securities and Exchange Commission estimates of cash trans- shown on p. 465. actions only. As contrasted with data shown on p. 465, new issues exclude 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 i Re t d io e n m s p- s N al e e t s Total 2 po C si a ti s o h n 3 Other Sales 1 Re t d io e n m s p- s N al e e t s Total 2 po C si a ti s o h n 3 Other 1953 672 239 433 4,146 1964—Jan... 294 183 110 25,854 ,383 24,471 1954 863 400 463 6,110 309 5,801 Feb... 219 165 55 26,334 1,380 24,954 Mar.. 263 184 79 26,863 ,403 25,460 1955 1,207 443 765 7,838 438 7,400 Apr... 276 165 111 27,051 ,339 25,712 1956 1,347 433 914 9,046 492 8,554 May.. 241 153 88 27,497 ,444 26,053 1957 1,391 406 984 8,714 523 8,191 June.. 285 147 138 27,682 1,499 26,183 1958 1,620 511 1,109 13,242 634 12,608 July... 308 168 140 28,319 1,471 26,848 1959 2,280 786 1,494 15,818 860 14,958 Aug... 260 149 110 28,164 1,457 26,707 Sept.. 299 149 149 29,130 1,436 27,694 1960 2,097 842 1,255 17,026 973 16,053 Oct... 306 142 164 29,087 1,312 27,775 1961 2,951 1,160 1,791 22,789 980 21,809 Nov. . 317 134 184 29,062 1,300 27,762 1962 2,699 1,123 1,576 21,271 1,315 19,956 Dec... 336 136 200 29,116 ,329 27,787 1963 2,460 1,504 952 25,214 1,341 23,873 1964 3,404 1,875 1,528 29,116 1,329 27,787 1965—Jan... 407 152 254 30,349 1,545 28,804 1 Excludes shares issued to shareholders as capital gains and dividend NOTE.—Investment Co. Institute data based on reports of members, distributions. which comprise substantially all open-end investment cos. registered with 2 Market value at end of period less current liabilities. the Securities and Exchange Commission. Data reflect newly formed 3 Cash and deposits, receivables, all U.S. Govt. securities, and other cos. after their initial offering of securities. short-term debt securities, less current liabilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BUSINESS FINANCE 467 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1963 1964 Industry 1959 1960 1961 1962 1963 III IV III Manufacturing Total (177 corps.): Sales 119,172123,911123,669136,545147,384 34,917 37,922 35,381 39,173 38,326 40,784 37,667 Profits before taxes 14,172 13,543 13,268 15,330 17,388 4,012 4,759 3,730 4,887 4,781 5,333 4,080 Profits after taxes 7,482 7,161 7,167 8,215 9,135 2,099 2,453 2,007 2,576 2,603 2,898 2,318 Dividends 4,360 4,485 4,730 5,048 5,441 1,169 1,320 1,183 1,768 1,285 1,448 1,322 Nondurable goods industries (78 corps.):1 Sales 45,543 47,372 49,362 52,245 55,142 13,239 13,869 13,984 14,050 14,220 14,823 14,882 Profits before taxes 5,651 5,579 5,602 5,896 6,395 1,512 1,613 1,613 1,658 1,643 1,752 1,743 Profits after taxes 3,212 3,215 3,225 3,403 3,659 867 897 934 961 992 1,028 1,037 Dividends 1,910 1,948 2,031 2,150 2,265 537 537 542 649 561 569 582 Durable goods industries (99 corps.):2 Sales 73,628 76,540 74,307 84,300 92,243 21,671 24,053 21,395 25,123 24,106 25,961 22,785 Profits before taxes 8,521 7,964 7,666 9,434 10,993 2,500 3,145 2,118 3,230 3,138 3,581 2,338 Profits after taxes 4,270 3,946 3,942 4,812 5,476 1,231 1,556 1,073 1,615 1,611 1,871 1,281 Dividends 2,450 2,536 2,699 2,898 3,176 632 783 641 1,119 724 879 741 Selected industries: Foods and kindred products (25 corps.): Sales 11,644 12,202 12,951 13,457 14,164 3,360 3,581 3,621 3,603 3,598 3,721 3,831 Profits before taxes 1,300 1,342 1,440 1,460 1,533 337 387 404 404 345 401 422 Profits after taxes 618 639 682 698 740 164 184 195 197 173 202 214 Dividends 349 372 397 425 448 109 111 111 118 117 119 118 Chemicals and allied products (20 corps.): Sales 11,740 12,205 12,606 13,759 14,621 3,448 3,728 3,705 3,740 3,791 4,114 4,067 Profits before taxes 2,164 2,005 1,979 2,162 2,337 544 616 584 593 636 682 657 Profits after taxes 1,120 1,058 1,034 1,126 1,213 281 316 305 310 347 366 353 Dividends 791 786 833 868 904 202 202 201 299 207 209 212 Petroleum refining (16 corps.): Sales 13,372 13,815 14,483 15,106 15,995 3,959 3,937 4,068 4,032 4,132 4,111 4,122 Profits before taxes 1,187 1,267 1,237 1,319 1,495 390 343 381 381 400 361 367 Profits after taxes 969 1,026 1,025 1,099 1,184 304 265 312 303 336 298 312 Dividends 518 521 528 566 608 151 149 154 154 158 159 168 Primary metals and products (34 corps.): Sales 20,940 20,828 20,234 21,260 22,146 5,123 6,114 5,470 5,439 5,540 6,046 6,047 Profits before taxes 2,322 2,214 1,999 1,838 2,183 430 711 467 574 560 674 611 Profits after taxes 1,218 1,169 1,067 1,013 1,186 231 372 252 332 315 384 352 Dividends 829 838 843 820 732 180 181 181 190 186 187 187 Machinery (24 corps.): Sales 16,983 16,681 17,446 19,057 21,041 4,923 5,286 5,286 5,547 5,401 5,673 5,573 Profits before taxes 1,904 1,509 1,701 1,924 2,368 528 587 585 668 673 702 688 Profits after taxes 941 768 859 966 1,151 258 285 289 319 338 357 349 Dividends 456 494 508 531 578 140 143 141 154 157 170 170 Automobiles and equipment (14 corps.): Sales 23,262 26,275 23,314 29,156 33,236 7,987 8,755 6,564 9,930 9,275 10,028 7,137 Profits before taxes 3,012 3,197 2,786 4,337 5,011 1,268 1,473 677 1,593 1,573 1,775 593 Profits after taxes 1,491 1,534 1,404 2,143 2,393 600 706 333 753 782 900 340 Dividends 812 837 973 1,151 1,447 217 362 220 648 276 419 277 Public Utility Railroad: Operating revenue 9,825 9,514 9,189 9,440 9,560 2,239 2,474 2,399 2,447 2,362 2,481 2,846 Profits before taxes 845 648 625 729 816 116 252 197 252 188 245 Profits after taxes 578 445 382 572 651 82 189 156 225 144 196 "i75 Dividends 406 385 359 367 383 89 103 66 125 110 101 Electric power: Operating revenue 11,129 11,906 12,478 13,489 14,177 3,819 3,371 3,458 3,529 3,961 3,572 3,687 Profits before taxes 2,983 3,163 3,349 3,583 3,741 1,100 848 930 862 1,106 893 998 Profits after taxes 1,655 1,793 1,883 2,062 2,185 626 498 529 532 660 542 583 Dividends 1,219 1,307 1,374 1,462 1,548 392 378 384 394 424 412 426 Telephone: Operating revenue 7,572 8,111 8,615 9,196 9,796 2,365 2,440 2,465 2,526 2,543 2,619 2,654 Profits before taxes 2,153 2,326 2,478 2,639 2,815 672 711 725 707 726 796 773 Profits after taxes 1,073 1,155 1,233 1,327 1,417 336 357 368 356 377 408 402 Dividends 743 806 867 935 988 225 255 252 256 261 262 268 1 Includes 17 cos. in groups not shown separately. Telephone. Data obtained from Federal Communications Commis- 2 Includes 27 cos. in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long NOTE.—Manufacturing corps. Data are obtained primarily from Lines and General departments of American Telephone and Telegraph published co. reports. Co.) and for 2 affiliated telephone cos. Dividends are for the 20 operat- Railroads. Interstate Commerce Commission data for Class I line- ing subsidiaries and the 2 affiliates. haul railroads. All series. Profits before taxes are income after all charges and before Electric power. Federal Power Commission data for Class A and B Federal income taxes and dividends. For description of series see electric utilities, except that quarterly figures on operating revenue and June 1949 BULL., pp. 662-66 (manufacturing); Mar. 1942 BULL., pp. profits before taxes are partly estimated by the Federal Reserve to include 215-17 (public utilities); and Sept. 1944 BULL., p. 908 (electric power). affiliated nonelectric operations. Back data available from the Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 BUSINESS FINANCE MARCH 1965 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r t s 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 t e s s d - co c a n a t l s l i 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 t s 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 l s i l p o o u i w n t m a - l pances i ances 1 1956 44.7 21.2 23.5 12.1 11.3 20.0 1963—1. , , . 48.9 23.4 25.5 17.2 8.3 31.3 1957 43.2 20.9 22.3 12.6 9.7 21.8 II 51.1 24.5 26.6 17.7 8.9 31.6 1958 37.4 18.6 18.8 12.4 6.4 22.7 III.... 51.3 24.5 26.7 17.9 8.9 32.1 1959 47.7 23.2 24.5 13.7 10.8 24.3 IV.... 54.3 26.0 28.3 19.1 9.2 32.4 1960 44.3 22.3 22.0 14.5 7.5 25.6 1964—1 56.6 25.4 31.2 19.4 11.8 33.0 1961 44.2 22.3 21.9 15.2 6.7 26.9 II.... 57.9 26.0 31.9 19.8 12.1 33.4 1962 48.2 23.2 25.0 16.5 8.5 30.5 III.... 58.0 26.0 32.0 20.0 12.0 33.8 1963 51.3 24.6 26.7 18.0 8.7 31.8 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 Govt. Inven- Other Total Federal Other securi- tories income ties U.S. U.S. taxes Govt. i Other Govt.i Other 1956 107.4 237.9 34.8 19.1 2.6 95.1 80.4 5.9 130.5 2 4 81.5 17.6 29.0 1957 111.6 244.7 34.9 18.6 2.8 99.4 82.2 6.7 133.1 2.3 84.3 15.4 31.1 1958 118.7 255.3 37.4 18.8 2 8 106 9 81.9 7.5 136.6 1 7 88 7 12 9 33 3 1959 124.2 277.3 36.3 22.8 2.9 117.7 88.4 9.1 153.1 1 7 99.3 15 0 37.0 I960.. .. ... 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 1961 135.6 306.8 41.1 20 0 3 4 135 8 95.2 11.4 171.2 1 8 112 8 14 1 42 5 1962 142.8 326.7 42.9 20.2 3.7 146.7 100.9 12.4 184.0 2.0 121.2 15.0 45.7 1963—III 148.8 342.9 40.8 19.7 3 4 158.1 105.8 15.2 194.1 2 5 128.1 15 3 48.3 IV 151.2 349.9 44.5 20.6 3.6 159.7 107.3 14.3 198.8 2.5 131.8 16.3 48.2 1964—1 154.7 350.6 40.6 21.4 3.3 161.3 108.6 15.5 195.9 2.6 128.9 15.6 48.8 II 157.1 356.7 42.5 20.2 3.0 165.6 109.6 15.9 199.6 2.6 131.7 15.2 50.1 Ill 159.4 364.3 43.1 19.1 3.2 171.6 111.2 16.1 204.9 2.7 135.0 16.0 51.2 1 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 assns., and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n b - le 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 ( n r S a n . t u e A ) al 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 2.02 5.67 2.67 8 21 I960 35.68 7.18 7.30 .99 1.03 1.94 5.68 3.13 8.44 1961 34.37 6.27 7.40 .98 .67 1.85 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 39.22 7.85 7 84 1.04 1.10 1 92 5 65 3 79 10 03 1964r . 44.90 9.43 9.16 1.19 1.41 2.38 6.22 4 30 10 83 1965 2 50.17 10.71 10.83 1.31 1.62 2.57 6.56 16.58 1963—11 9.74 1.96 1.95 .26 .28 .54 1.40 .95 2 41 38.05 Ill 10.14 1.96 1.99 .27 .29 .45 1.60 .93 2.64 40.00 IV 11.09 2.31 2.25 .28 .33 .54 1.61 1.06 2.72 41.20 1964—1 9.40 1.93 1.87 .26 .32 .51 1.18 .97 2.37 42.55 II 11.11 2.30 2.23 .29 .36 .63 1.58 1.10 2.61 43.50 Ill 11.54 2.37 2.30 .30 .37 .59 1.71 1.06 2.84 45.65 IV 12.84 2.83 2.76 .33 .35 .64 1.76 1.17 3.01 47.75 1965—1 2r 10.85 2.30 2.31 .28 .42 .56 1.25 3.:4 48.85 112 12.72 2.70 2.73 .34 .42 .78 1.64 4.13 49.65 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

MARCH 1965 REAL ESTATE CREDIT 469 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm ^onfarm E p n er d i o o d f h d A e o l r l l s - tu F i t i n c i n i o s a a t n l i n - s - * a U c g i . e e S h n s o . O - l t d h e e v r o r I s i a t d n h 2 n u d e d a i r - l s s h d A e o l r l l s - tu F i t i n c i n i s o a a t n i l n - s - 1 h O old th e e rs r * h d A e o l r l l s - T 1 o - t a to l 4- t F f u i a n i t n m i s o a t i i n n l - y s . ho O u d h t s e o h e r l e s - s r c T o o m t M a m l u e l r t c t i F f u i i a a n i t n m i l s o a t p i i n n l - r y s . o p a e n O r d h d t t e o i h e r l e s s - r 4 w u F V n r H i d M A t A t e e - t r o - n y - r p tg e a t 5 C i v g o e o e n n n a - - l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1957 156.5 119.7 7.4 29.3 10.4 4.0 6.4 146.1 107.6 89.9 17.7 38.5 25.8 12.7 51.6 94.5 1958 171.8 131 5 7.8 32.5 11.1 4.2 6.9 160.7 117.7 98.5 19.2 43.0 28.8 14.2 55 2 105.5 1959 190.8 145.5 10.0 35.4 12.1 4.5 7.6 178.7 130.9 109.2 21.6 47.9 31.8 16.1 59.2 119.4 1960 206.8 157.6 11.2 38.0 12.8 4.7 8.2 194.0 141.3 117.9 23.4 52.7 35.0 17.7 62.3 131.7 1961 226.3 172.6 11.8 41.9 13.9 5.0 8.9 212.4 153.1 128.2 24.9 59.3 39.4 19.9 65.5 146.9 1962* 251.6 192.5 12.2 47.0 15.2 5.5 9.7 236.4 166.5 140.4 26.0 69.9 46.6 23.4 69.2 167.2 1963* 280.9 216.9 11.2 52.9 16.8 6.2 10.6 264.2 182.2 156.0 26.2 82.0 54.8 27.2 73.0 191.1 1964* 310.4 240.5 1963—IP... 257.1 197.2 11.8 48.1 15.5 5.6 9.9 241.6 169.2 143.3 25.9 72.4 48.3 24.1 70.1 171.5 IIP.. 265.1 204.1 11.2 49.9 16.1 5.9 10.2 249.0 173.7 147.9 25.8 75.3 50.3 25.0 70.9 178.1 III*.. 273.1 210.6 11.1 51.4 16.5 6.1 10.5 256.5 178.2 152.2 26.0 78.3 52.3 26.0 71.7 184.8 IV*.. 280.9 216.9 11.2 52.9 16.8 6.2 10.6 264.2 182.2 156.0 26.2 82.0 54.8 27.2 73.0 191.1 1964—1*... 287.0 221.8 11.2 54.0 17.3 6.4 10.9 269.7 185.2 158.9 26.3 84.5 56.5 28.0 73.8 195.8 II*.. 295.1 228.3 11.2 55.6 18.0 6.7 11.3 277.1 189.6 163.1 26.5 87.5 58.5 29.0 74.5 202.6 III*.. 303.1 234.7 11.3 57.1 18.5 6.9 11.6 284.6 194.0 167.2 26.8 90.6 60.6 30.0 75.6 209.0 IV* 310 4 240 5 1 Commercial banks (including nondeposit trust cos. but not trust savings and loan assns. depts.), mutual savings banks, life insurance cos., and savings and loan 5 Data by type of mortgage on nonfarm 1- to 4-family properties alone assns. are shown on second page following. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. NOTE.—Based on data from Federal Deposit Insurance Corp., Federal Other U.S. agencies (amounts small or current separate data not readily Home Loan Bank Board, Institute of Life Insurance, Depts of Agriculavailable) included with "individuals and others." ture and Commerce, Federal National Mortgage Assn., Federal Housing 3 Derived figures; includes debt held by Federal land banks and farm Admin., Public Housing Admin., Veterans Admin., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 Derived figures; includes small amounts of farm loans held by Figures for first 3 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 1Residential Residential TEnd 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 - - f n a o r n m - Farm sured anteed tional sured anteed tional 1941 4,906 99? 1,048 566 4 8P 3 884 900 28 1945. 4,77? 2,395 856 521 4,?08 ,387 797 24 1957. ?3,337 17.147 4,8?3 3,589 8,735 4,823 1,367 ,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. ?8 ?0 6, 1?? 3,161 11,037 6,237 1,588 ?4,99? ,486 6,276 8,589 7,622 2,451 55 1960. 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. 30,44? 5,975 2,627 12,623 7,470 1,747 ?9 145 ,341 8,045 9,267 9,028 2,753 51 1962. 34,476 ?3^48? 6,5?,0 2,654 14,308 8,972 2,022 3? 370 29 181 9,238 9,787 10,156 3,088 51 1963. ,414 ?6,476 7,105 2,862 16,509 10,611 2,327 36 3?,718 10,684 10,490 11,544 3,454 52 1962—T 30,844 ?1 6.003 2,547 12,661 7,817 1,816 ,833 ?6,940 8,340 9,392 9,208 2,842 51 II 3?,194 !048 6,195 2,593 13,260 8,219 1,927 30,638 77,63? 8,662 9,502 9,469 2,954 51 Ill ,430 22,8?4 6,376 2,617 13,831 8,628 1,978 31 484 78,464 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 . 35,243 23,846 6,627 2,651 14,568 9,270 2,127 33,368 30,143 9,724 10,046 10,373 3,174 51 II.. 36,939 ?4,958 6.861 2,837 15,260 9,740 2,241 34,309 30,969 10,023 10,218 10,728 3,290 50 Ill 38,360 ?5,855 7,007 2,870 15,978 10,203 2,302 35,191 31,775 10,328 10,335 11,112 3,365 51 TV 39,414 ?6,476 7,105 2,862 16,509 10,611 2,327 36 3?,718 10,684 10,490 11,544 3,454 52 1964 T 40,?00 ?6,894 7,110 2,824 16,960 10,894 2,412 37 155 33,506 11,004 10,639 11,863 3,597 52 II 41 648 ?7,750 7,158 2,793 17,799 11,340 2,558 38,199 34,407 11,376 10,826 12,205 3,740 52 IIIP 42.948 39 381 1 Includes loans held by nondeposit trust cos., but not bank trust depts. and possessions. First and third quarters, estimates based on FDIC data 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. for insured banks for 1962 and part of 1963 and on special F.R. interpolations thereafter. For earlier years, the basis for first and third quarter NOTE.—Second and fourth quarters, Federal Deposit Insurance Corp. estimates included F.R. commercial bank call data and data from the series for all commercial and mutual savings banks in the United States National Assn. of Mutual Savings Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 REAL ESTATE CREDIT MARCH 1965 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total i F ns H u A re - d a g n V u t A e a e r - - d Other i Farm i Total Total i F ns H u A re - d a g n V u t A c a e r - - d Other Farm 1941 6,442 5,529 815 4,714 913 1945 . 976 6,636 5 860 1,394 4 466 776 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 36,370 8,273 7,086 21,011 2,827 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 7,478 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963 9,172 8,306 r1,598 678 r6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964 10,327 9,277 .7R7 683 6,807 1,050 55,179 50,881 11,523 6,415 32,943 4,298 1963—Dec r 1,267 1,178 175 70 933 89 50,596 46,804 10,792 6,408 29,604 3,792 1964 Jan 745 638 141 61 436 107 50,828 47,010 10,857 6,418 29,735 3,818 Feb 705 615 140 54 421 90 51,126 47,271 10,923 6,423 29,925 3,855 Mar 800 673 143 53 477 127 51,441 47,523 10,982 6,420 30,121 3,918 Apr 808 706 133 58 515 102 51,806 47,824 11,032 6,425 30,367 3,982 May 737 652 127 60 465 85 52,117 48,085 11,076 6,433 30,576 4,032 June . 863 778 152 51 575 85 52,466 48,384 11,116 6,422 30,846 4,082 Julv 861 785 151 56 578 76 52,832 48,709 11,165 6,413 31,131 4,123 805 739 155 56 528 66 53,173 49,014 11,227 6,410 31,377 4,159 Sept 875 810 161 57 592 65 53,560 49,367 11,296 6,404 31,667 4,193 Oct 904 836 165 60 611 68 53,984 49,756 11,376 6,403 31,977 4,228 Nov. 857 791 158 60 573 66 54,404 50,151 11,453 6,412 32,286 4,253 Dec 1,367 1,254 161 57 1,036 113 55,179 50,881 11,523 6,415 32,943 4,298 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 yeaiend adjustments are more complete. NOTE.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS NONFARM MORTGAGE RECORDINGS OF $20,000 OR LESS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Total i By type of lender (N.S.A.) Period Total i s N c t t i r o o e u n w n c - - H c p h o u a m r s - e e Total 2 F su H in re A - d - a g n V u t A e a e r - - d ti C v o e n o n n a - l - 2 Period S.A. 2 N.S.A. i a n l S s o g s a a s n v n s - & . p I c a n a o n n s m c u ie e r - s - b C m a c o i n e a m r k l - s - M b i s a u n a n t g v u k s - a s l 1941 1 379 437 581 4 578 1941 4,732 1,490 404 1,165 218 1945 1,913 181 1,358 5,376 1945 5,650 2,017 250 1,097 217 1957 10,160 3,484 4,591 40,007 1,643 7,011 31,353 1957 24,244 9,217 1.472 4,264 1.429 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1958 27,388 10,516 1,460 5,204 1,640 1959 15,151 6,613 53,141 2,995 7,186 42,960 1959 32,235 13,094 ,523 5,832 1,780 I960 14,304 4|678 6,132 60,070 3,524 7,222 49,324 I960 29,341 12,158 1,318 4,520 1,557 1961 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1961 31,157 13,662 1,160 4,997 1,741 1962 20,754 5,979 8,524 78,770 4,476 7,010 67,284 1962 34,187 15,144 1,212 5,851 .957 1963 24,735 7,039 9,920 90,849 4,685 6,960 79,204 1963 36,925 16.716 .339 6,354 2,061 1964 . . 24,505 6,515 10,397101,213 4,886 6,681 89,646 1963 1964 J F M M a e n a b a r y!!!!!!! 2 2 2 1 1 , , , , , 0 0 1 7 7 1 1 7 8 4 6 2 1 1 5 4 4 5 5 3 7 9 7 4 4 7 9 7 6 6 8 8 8 7 9 3 8 4 4 6 1 1 9 9 9 9 94 3 1 2 3 , , , , , 9 0 4 1 9 7 6 5 6 7 1 9 3 3 8 4 4 4 4 4 , , , , , 7 7 7 7 7 0 0 2 1 1 5 5 3 4 0 6 6 6 6 6 , , , , , 9 8 8 8 9 3 2 7 5 0 1 1 9 5 2 7 8 8 8 8 9 0 2 1 3 , , , , , 8 5 4 4 4 1 0 5 8 2 7 9 6 0 7 N D S O e e c o n c t v t. 3 3 3 3 3 , , , , , 1 1 1 2 0 8 3 4 1 5 9 4 9 3 9 2 2 3 3 3 , , , , , 8 1 9 5 5 7 8 8 2 3 7 0 7 5 4 1 1 1 1 1 , , , , , 6 2 5 4 3 1 7 9 4 2 1 1 4 2 2 1 1 1 1 1 2 1 2 0 1 5 6 3 3 0 4 6 6 5 5 9 1 1 4 0 5 6 2 6 4 2 2 1 1 1 0 1 8 9 6 6 2 4 0 6 2,394 624 1,054 96,067 4,737 6,790 84,540 July 2,363 635 1,037 97,111 4,752 6,770 85,589 1964 N S D A O e o e u c D c t v e t 2 2 2 1 1 , , , , , 7 0 1 0 9 9 6 5 4 6 1 9 1 8 4 4 4 5 5 5 9 6 3 3 2 8 2 7 1 2 1,0 9 7 7 8 2 7 8 7 9 5 0 4 0 3 1 1 9 9 9 0 0 8 8 9 0 1 , , , , , 8 0 7 4 2 9 5 3 1 1 5 9 1 8 3 4 4 4 4 4 , , , , , 7 8 8 8 7 8 2 8 0 6 5 1 6 2 t 6 6 6 6 6 , , , , , 7 6 7 7 6 8 0 4 2 8 1 0 3 3 2 8 8 8 8 8 7 6 8 8 9 , , , , , 5 3 2 9 6 5 8 2 4 1 5 8 9 6 4 J F M A M a e p n a a b r r y 3 3 3 3 3 , , , , , 0 0 0 0 0 8 2 3 9 0 1 9 4 6 8 2 2 2 3 3 , , , , , 7 5 9 0 0 5 7 3 8 9 8 5 5 9 0 1 1 1 1 1 , , , , ^ 1 2 3 3 2 7 9 5 4 8 0 0 0 9 1 1 1 1 9 0 0 0 1 0 3 2 9 6 4 4 5 5 5 6 8 4 6 6 5 3 0 7 0 1 1 1 1 1 2 4 4 7 5 9 5 0 6 4 3,143 3,388 1,485 126 607 197 1965 July 3,173 3,519 1,508 137 618 233 Jan v .... 1,565 387 648101,845 4,916 6,682 90,247 Aug 3,277 1 398 130 581 213 1 Includes loans for repairs, additions and alterations, refinancing, etc., 1 Includes amounts for other lenders, not shown separately. not shown separately. 2 Three-month moving average, seasonally adjusted by Federal Re- 2 Beginning with 1958 includes shares pledged against mortgage loans. serve. NOTE.—Federal Home Loan Bank Board data. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 REAL ESTATE CREDIT 471 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMDLY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Mortgages Prop- Mortgages End of Con- Period Total h N om ew es h is o E t m i x n - e g s e P c r t o s j- i m pr i e o m n v t - e s - 2 Total 3 h N om ew es h is o E t m i x n - e g s period Total Total s F u i H n re - A d - a g V n u t A a e r e - - d ti v o e n n a - l 1945 18.6 4.3 4.1 .2 14.3 1945 665 257 217 20 171 192 1957 107.6 47.2 16.5 30.7 60.4 1956 3,461 1,133 1,505 130 692 5,868 3,910 1,948 1958 117.7 50.1 19.7 30.4 67.6 1957 3,715 880 1,371 595 869 3,761 2,890 863 1959 130.9 53.8 23.8 30.0 77.0 1958 6,349 1,666 2,885 929 868 1,865 1,311 549 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 1961 153.1 59.1 29.5 29.6 93.9 1960 6,293 2,197 2,403 711 982 1,985 1,554 428 1962 166.5 62.0 32.3 29.7 104.5 1961 6,546 1,783 2,982 926 855 1,829 1,170 656 1963* 182.2 65.5 35.0 30.5 116.7 1962 7,184 1,849 3,421 1,079 834 2,652 1,357 1,292 1963 7,216 1,664 3,905 843 804 3,045 1,272 1,770 1962—III 162.9 61.0 31.5 29.5 101.9 1964 8,130 1,608 4,965 895 663 2,846 1,023 1,821 IV . 166.5 62.0 32.3 29.7 104.5 1964 Jan 666 162 381 62 61 268 114 153 1963 I* 169.2 62.8 33.0 29.8 106.4 Feb 534 126 314 48 46 201 81 120 UP 173.7 63.5 33.5 30.0 110.2 Mar 600 126 357 59 58 208 84 124 Ill* 178.2 64.3 34.3 30.0 113.9 Apr 646 117 367 119 43 206 81 125 IV* 182.2 65.5 35.0 30.5 116.7 May 570 105 352 68 46 192 71 121 June 711 128 442 67 73 233 76 157 1964—I* 185.2 66.3 35.7 30.6 118.9 July 782 141 476 108 57 251 81 171 II* 189.6 66.8 36.3 30.5 122.7 A.U2 • • 740 137 468 68 67 246 78 167 Ill* 194.0 67.9 37.4 30.5 126.2 Sept 720 138 467 66 49 270 85 185 Oct 790 159 491 81 58 271 93 178 Nov 688 135 422 81 50 258 91 167 NOTE.— For total debt outstanding, figures are Dec 683 135 428 67 54 242 88 153 FHLBB and F.R. estimates. For conventional, figures are derived. 1965—Jan 630 138 405 34 54 225 84 141 Based on data from Federal Home Loan Bank Board, Federal Housing Admin, and Veterans Admin. 1 Monthly figures do not reflect mortgage amendments included in annual totals. 2 Not ordinarily secured by mortgages. 3 Includes a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. N0TE#—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Mortgage Mortgage holdings transactions Com- Advances outstanding (during mit- (end of period) End of period) ments Period Ad- Repay- Members period Total F su H in re A - d - a g n V u t A e a e r - - d c P ha u s r e - s Sales bu d u r i n s s - - ed vances ments Total t S e h rm or t- ! t L e o rm ng - 2 deposits 1945 278 213 195 176 19 46 1956 3,047 978 2,069 609 5 360 1957 3,974 1,237 2,737 1,096 3 764 1956 745 934 1,228 798 430 683 1958 3,901 1,483 2,418 623 482 1,541 1957. ... 1,116 1,079 1,265 731 534 653 1959 5,531 2,546 2,985 1,907 5 568 1958 1,364 1,331 1,298 685 613 819 1959 . 2,067 1,231 2,134 1,192 942 589 I960 6,159 3,356 2,803 1,248 357 576 1961 6,093 3,490 2,603 815 541 631 1960 1,943 2,097 1,981 1,089 892 938 1962 5,923 3,571 2,353 740 498 355 1961 2,882 2,200 2,662 1,447 1,216 1,180 1963 4,650 3,017 1,634 290 1,114 191 1962 4,111 3,294 3,479 2,005 1,474 1,213 1964 4,412 2,996 1,416 424 251 313 1963 5,601 4,296 4,784 2,863 1,921 1,151 1964 5,563 5,023 5,325 2,846 2,479 1,199 1964 Jan 4,624 3,006 1,618 21 11 189 Feb 4,613 3,011 1,603 24 4 188 1964—Jan 467 837 4,414 2,653 1,762 944 Mar . ... 4,598 3,016 1,582 27 11 192 Feb 225 424 4,216 2,500 1,716 943 Apr 4,572 3,015 1,557 38 31 204 Mar 339 387 4,168 2,406 1,763 977 May 4,565 3,027 1,538 44 21 202 573 296 4,444 2,463 1,982 957 June 4,539 3,025 1,514 36 21 199 May 352 401 4,395 2,438 1,957 990 Julv 4,516 3,033 1,482 41 30 222 June 703 329 4,769 2,674 2,095 1,153 4,477 3,008 1,469 44 43 230 July....... 584 590 4,763 2,699 2,064 936 Sept . 4,453 2,998 1,455 34 24 245 Aug 369 351 4,781 2,662 2,119 926 Oct 4,440 2,997 1,443 36 14 260 Sept 382 327 4,837 2,635 2,202 989 Nov 4,439 3,011 1,428 40 11 292 Oct 401 441 4,797 2,605 2,192 978 Dec 4,412 2,996 1,416 40 31 313 Nov 379 392 4,784 2,572 2,212 989 Dec 791 250 5,325 2,846 2,479 1,199 1965—Jan 4,417 3,009 1,408 40 4 316 1965—Jan 412 793 4,944 2,590 2,354 1,013 NOTE.—Federal National Mortgage Assn. data excluding conventional mortgage loans acquired by FNMA from the RFC Mortgage Co., the 1 Secured or unsecured loans maturing in 1 year or less. Defense Homes Corp., the Public Housing Admin., and Community 2 Secured loans, amortized quarterly, having maturities of more than Facilities Admin. 1 year but not more than 10 years. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 CONSUMER CREDIT MARCH 1965 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e i o l r - e co g O p n o a s t 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 n m a a s t o i ir o i d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e s e n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1957 44,970 33,867 15,340 8,844 2,101 7,582 11,103 3,364 5,146 2,593 1958 45,129 33,642 14,152 9,028 2,346 8,116 11,487 3,627 5,060 2,800 1959 51,542 39,245 16,420 10,630 2,809 9,386 12,297 4,129 5,104 3,064 1960 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5,329 3,360 1961 57,678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1962 63.164 48,034 19,540 12,605 3,246 12,643 15,130 5,456 5,684 3,990 1963 69,890 53,745 22,199 13,766 3,389 14,391 16,145 5,959 5,871 4,315 1964 76,810 59,397 24,521 15,303 3,502 16,071 17,413 6,473 6,300 4,640 1964—Jan.. 69,203 53,597 22,189 13,638 3,354 14,416 15,606 5,900 5,339 4,367 Feb.. 68,786 53,552 22,271 13,467 3,335 14,479 15,234 5,958 4,805 4,471 Mar. 68,913 53,795 22,471 13,451 3,321 14,552 15,118 6,002 4,634 4,482 Apr.. 69,816 54,382 22,830 13,476 3,328 14,748 15,434 6,048 4,833 4,553 May. 70,945 55,120 23,255 13,599 3,364 14,902 15,825 6,206 5,099 4,520 June. 71,907 55,914 23,702 13,730 3,395 15,087 15,993 6,233 5,238 4,522 July. 72.456 56,496 24,024 13,813 3,426 15,233 15,960 6,218 5,240 4,502 Aug. 73,069 57,055 24,251 13,923 3,466 15,415 16,014 6,299 5,231 4,484 Sept. 73,495 57,446 24,295 14,046 3,493 15,612 16,049 6,354 5,223 4,472 Oct.. 73,928 57,826 24,423 14,222 3,509 15,672 16,102 6,333 5,352 4,417 Nov. 74,371 58,085 24,367 14,431 3,516 15,771 16,286 6,412 5,394 4,480 Dec. 76,810 59,397 24,521 15,303 3,502 16,071 17,413 6,473 6,300 4,640 1965—Jan.. 76,145 59,342 24,574 15,204 3,473 16,091 16,803 6,412 5,724 4,667 i Holdings of financial institutions; holdings of retail outlets are in- loans. The estimates include data for Alaska beginning with Jan, 1959 cluded in "other consumer goods paper." (except for instalment credit held by sales finance cos.) and for Hawaii beginning with Aug. 1959. For a description of the series see Apr.'1953 NOTE.—Consumer credit estimates coyer loans to individuals for house- BULL. Back data are available upon request. hold , family, and other personal expenditures, except real estate mortgage INSTALMENT CREDIT (In millions of dollars) Financial institutionj Retail outlets End of period Total Total m b C e a o r n m c k ia s - l fi S n c a a o l n s e . c s e u C n r i e o d n i s t fi s n C u a o m n n c e - e r i Other 1 Total D st m e o p r e e a n s r t t- 2 F s t t u u o r r r n e e i s - A s a t p o n p r c e l e i s - d m e A a o u l b e t r i o 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 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 ,282 4,983 1,882 1,128 292 506 1,175 1959 39,245 33,570 15,227 10,319 3,280 3,337 ,407 5,676 2,292 1,225 310 481 1,368 I960 42,832 37,218 16,672 11,472 3,923 3,670 ,481 5,615 2,414 1,107 333 359 1,402 1961 43,527 37,935 17,008 11,273 4,330 3,799 ,525 5,595 2,421 1,058 293 342 1,481 1962 48,034 41,782 19,005 12,194 4,902 4,131 ,550 6,252 3,013 1,073 294 345 1,527 1963 53,745 46,992 21,610 13,523 5,622 4,590 ,647 6,753 3,427 1,086 287 328 1,625 1964 59,397 51,990 23,943 14,762 6,458 5,078 ,749 7,407 3,922 1,152 286 370 1,677 1964—Jan 53,597 47,300 21,630 13,840 5,584 4,592 ,654 6,297 3,063 1,065 281 328 1 560 Feb 53,552 47,454 21,799 13,788 5,607 4,595 ,665 6,098 2,949 1,047 278 330 1,494 Mar 53,795 47,653 21,919 13,802 5,668 4,597 ,667 6,142 3,044 1,022 273 334 J 4£Q 54 382 48,191 22,224 13,893 5,776 4,628 1,670 6,191 3 106 1,013 272 340 [ 460 May 55,120 48,824 22,559 14,027 5,889 4,657 1,692 6,296 3,182 1,020 271 348 I 475 June 55,914 49,543 22,907 14,228 6,014 4,701 1,693 6,371 3,231 1,028 271 355 1,486 July 56,496 50,082 23,176 14,359 6,109 4,748 1,690 6,414 3 267 0V7 273 360 I 477 57,055 50,583 23,389 14,475 6,204 4,797 1,718 6,472 3,332 i^044 273 363 1 460 Sept 57,446 50,937 23,527 14,553 6,283 4,845 [,729 6,509 3,371 1,048 275 365 1,450 Oct 57,826 51,220 23,663 14,625 6,334 4,870 1,728 6,606 3,444 1,062 276 367 I 457 Nov 58,085 51,341 23,680 14,622 6,378 4,919 1,742 6,744 3,541 1,088 279 367 1,469 Dec 59,397 51,990 23,943 14,762 6,458 5,078 I 749 7,407 3,922 1,152 286 370 1,677 1965—Jan 59,342 52,159 24,091 14,797 6,429 5,078 1,764 7,183 3,791 1,128 285 373 1,606 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

MARCH 1965 CONSUMER CREDIT 473 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Other Repair Other Repair paper com- and Auto- con- and Per- End of period Total s g u o m od e s r e m rn o i d z - a- s P o e n r a - l End of period Total m p o ap b e il r e s g u o m od e s r m iz o a d ti e o r n n- l s o o a n n a s l Pur- paper tion loans paper loans chased Direct loans 1939. 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941. 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945. 300 164 24 58 54 1945 745 66 143 114 110 312 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 1960. 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 ',201 1961 17,008 5,391 2 860 2,761 2 198 3 798 1962. 12,194 7,449 3,123 170 ,452 1962 19,005 6,184 3,451 2,824 2,261 4,285 1963. 13,523 8,228 3,383 158 ,754 1963 21,610 7,246 4,003 3,123 2,361 4,877 1964. 14,762 8,701 3,889 142 2,030 1964 23,943 8,300 4,451 3,380 2,427 5,385 1964—Jan... 13,840 8,220 3,701 156 ,763 1964 Jan 21,630 7,246 4,016 3,134 2,333 4,901 Feb.. 13,788 8,227 3,635 154 ,772 Feb 21,799 7,275 4,052 3,226 2,316 4,930 Mar.. 13,802 8,265 3,603 152 ,782 M^ar 21,919 7,364 4,102 3,195 2,303 4,955 Apr.. 13,893 8,371 3,580 151 ,791 Apr ....... 22,224 7,501 4,172 3,185 2,308 5,058 May. 14,027 8,489 3,583 149 ,806 May 22,559 7,673 4,255 3,192 2,331 5,108 June. 14,228 8,633 3,615 150 ,830 June 22,907 7,854 4,323 3,205 2 355 5 170 July.. 14,359 8,741 3,614 149 ,855 July 23,176 7,979 4,371 3,234 2,380 5,212 Aug.. 14,475 8,799 3,643 149 ,884 23,389 8,090 4,389 3,244 2,405 5,261 Sept.. 14,553 8,764 3,706 148 ,935 Sept 23,527 8,143 4,390 3,255 2,422 5,317 Oct... 14,625 8,773 3,754 146 ,952 Oct 23,663 8,233 4,396 3,273 2,437 5,324 Nov.. 14,622 8,698 3,804 144 ,976 Nov 23,680 8,242 4,393 3,281 2,438 5,326 Dec.. 14,762 8,701 3,889 142 2,030 Dec 23,943 8,300 4,451 3,380 2,427 5,385 1965—Jan 14,797 8,648 3,943 140 2,030 1965 Jan 24,091 8,325 4,503 3,455 2,400 5,408 i See NOTE to first table on previous page. See NOTE to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single- Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal paper goods ization loans Service 1 1 9 9 3 4 9 1 7 9 8 5 9 7 1 8 2 1 2 pape 2 3 r 4 6 loan 1 1 s 5 4 7 6 8 6 5 9 End of period Total b C m a c o i n e a m r k l - s - t f O u i i n c t n t i i s h a o a t n e 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 l r s c C a r r e d d s i 2 t credit 1945 731 54 20 14 643 1957 6,748 1,114 588 490 4,555 1939 2,719 625 162 236 1,178 518 1958 7,035 1,152 565 595 4,723 1941 3,087 693 152 275 1,370 597 1959 8,024 1,400 681 698 5,244 1945 3,203 674 72 290 1,322 845 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 10,583 2,111 751 815 6,906 1959 12,297 3,582 547 958 3,753 393 3,064 1963 11,859 2,394 835 870 7,760 1964 13,285 2,699 997 933 8,656 1960. 13,196 3,884 623 941 3,952 436 3,360 1961 14,151 4,413 723 948 3,907 469 3,691 1964 Jan 11,830 2,379 834 865 7,752 1962 15,130 4,690 766 927 4,252 505 3,990 Feb 11,867 2,387 838 865 7,777 1963 16,145 5,047 912 895 4,456 520 4,315 Mar 11,932 2,406 845 866 7,815 1964 17,413 5,469 1,004 909 4,756 635 4,640 Apr 12,074 2,446 860 869 7,899 May 12,238 2,490 876 884 7,988 1964—Jan.... 15,606 4,991 909 782 4,014 543 4,367 June 12,408 2,537 894 890 8,087 Feb... 15,234 5,036 922 655 3,590 560 4,471 July 12,547 2,573 911 897 8,166 Mar... 15,118 5,076 926 614 3,485 535 4,482 Aug 12,719 2,610 927 912 8,270 Apr... 15,434 5,152 896 610 3,667 556 4,553 Sept 12,857 2,633 941 923 8,360 May.. 15,825 5,230 976 626 3,910 563 4,520 Oct 12,932 2,654 956 926 8,396 June.. 15,993 5,313 920 610 4,028 600 4,522 Nov 13,039 2,667 969 934 8,469 July... 15,960 5,329 889 576 4,008 656 4,502 Dec 13,285 2,699 997 933 8,656 Aug... 16,014 5,335 964 588 3,960 683 4,484 Sept... 16,049 5,361 993 624 3,928 671 4,472 1965 Jan 13,271 2,689 996 923 8,653 Oct.... 16,102 5,361 972 660 4,055 637 4,417 Nov... 16,286 5,377 1,035 703 4,065 626 4,480 Dec... 17,413 5,469 1,004 909 4,756 635 4,640 NOTE.—Institutions represented are consumer finance cos., credit unions, industrial loan cos., mutual savings banks, savings and loan 1965—Jan.... 16,803 5,409 1,003 793 4,280 651 4,667 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

474 CONSUMER CREDIT MARCH 1965 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p um er er mode R r e n p iz a a i t r i o a n n d loans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extension 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 55,126 19,796 15,685 2,051 17,594 1963 60,822 22,013 17,007 2,178 19,624 1964 66,070 23,565 19,162 2,182 21,161 1964—jan 5,276 4,784 1.888 1,689 1.493 1.380 185 141 1.710 1.574 Feb 5,421 4,552 1,953 1,686 1,578 1,212 186 142 1,704 1,512 Mar 5,480 5,322 1,942 1,983 ,665 1,488 179 163 1,694 1,688 Apr 5,371 5,578 1,961 2,127 1,544 1,495 174 178 1,692 1,778 May. 5,552 5,584 >,023 2,137 1,589 1,547 187 205 1,753 1,695 June 5,399 5,949 1,962 2,245 1,537 1,632 183 208 1,717 1,864 July 5,541 5,747 1,996 2,166 1,546 1,543 189 208 1,810 1,830 Aue 5,529 5,519 2,017 1,984 1,570 1,540 186 210 1,756 1,785 Sept 5,617 5,393 1,024 1,830 1,588 1,592 186 200 1,819 1,771 Oct 5,507 5,552 1,924 1,999 1,582 1,657 180 191 1.821 1.705 Nov.. 5,456 5,323 .858 1,727 ,631 far 175 175 i;792 1,749 Dec.. 5,816 6,767 2,043 1,992 .719 2,404 180 161 1,874 2,210 1965—Jan.. 5,883 5,023 2,120 1,836 1,729 1,440 181 134 ,853 1,613 Repayments 1957 39,868 15,545 11,569 1,477 11,276 1958 . ... 40,344 15,415 11,563 1,626 11 741 1959.. .. 42,603 15,579 12,402 1,765 12 857 1960 45,972 16,384 13,574 1 883 14,130 1961 47,700 16,472 14,246 2,015 14,967 1962 50,620 17,478 14,939 1,996 16,206 1963 55,111 19,354 15,846 2,035 17,876 1964 60,418 21,243 17,625 2,069 19,481 1964—Jan 4,848 4,932 1.684 1.699 1.441 1.508 176 176 1.547 1 549 Feb 4,842 4,597 1,716 1,604 ,395 I 383 171 161 I 560 1 449 Mar 4,956 5,079 1,735 1,783 ,468 1,504 174 177 1,579 1 615 Apr .... 4,959 4,991 1,759 1,768 1,453 1,470 172 171 1,575 1,582 May. 5,059 4,846 1,776 1,712 ,483 1,424 175 169 1,625 1 541 June . 5,029 5,155 1,768 1,798 ,486 1,501 170 177 1,605 1,679 July 5,058 5,165 1,781 1,844 1,448 1,460 171 177 1 658 1 684 5,094 4,960 1,789 1,757 1,496 ,430 172 170 1,637 1,603 Sept 5,104 5,002 1,802 1,786 1,491 1,469 172 173 1.639 1,574 Oct 5,097 5,172 1.788 1,871 1,456 1,481 167 175 1,686 1,645 Nov 5,155 5,064 1,818 1,783 1,509 1.463 174 168 1,654 1,650 Dec 5 256 5,455 1,864 1.838 1.505 1 \ 532 111 175 1,710 1 910 1965—Jan... 5,213 5,078 1,830 1,783 1,526 ,539 171 163 1,686 1,593 Net change of credit outstanding 2 1957 2,148 920 238 197 793 1958 -225 -1,189 184 245 534 1959 5,601 2,268 1,602 463 1,269 I960 3,588 1,270 896 330 1 093 1961 696 -465 332 53 777 1962 4,506 2,318 746 55 1 388 1963 5,711 2,659 1,161 143 1 748 1964 . 5,652 2,322 1,537 113 1 680 1964—Jan 428 -148 204 -10 52 -128 9 -35 163 25 Feb 579 -45 237 82 183 -171 15 -19 144 63 Mar 524 243 207 200 197 -16 5 -14 115 73 Apr 412 587 202 359 91 25 2 7 117 196 May 493 738 247 425 106 123 12 36 128 154 June 370 794 194 447 51 131 13 31 112 185 July 483 582 215 322 98 83 18 31 152 146 Aug.... 435 559 228 227 74 110 14 40 119 182 Sept 513 391 222 44 97 123 14 27 180 197 Oct 410 380 136 128 126 176 13 16 135 60 Nov 301 259 40 -56 122 209 1 7 138 99 Dec 560 1,312 179 154 214 872 3 -14 164 300 1965—Jan . 670 -55 290 53 203 -99 10 -29 167 20 1 Includes adjustments for differences 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 of outstanding. 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 ofen include financing charges. Renewals and refinancing of loans, purchases and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 CONSUMER CREDIT 475 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p fi a n n a i n es ce Ot i h n e st r i t f u in ti a o n n c s ial 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.1 N.S.A. Extensions 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 55,126 20,474 11,999 13,525 9,128 1963 60 822 22,871 12,664 14,894 10,393 1964 66,070 24,515 14,020 16,251 11,284 1964—jan 5,276 4,784 1,928 1,825 J.125 1,020 1 312 1,157 911 782 Feb 5,421 4,552 2,043 1,786 1,187 1,122 908 664 Mar 5,480 5,322 2,006 2,011 1,209 ,166 ,292 1,290 973 855 Apr 5,371 5,578 1,981 2,158 1,160 ,201 ,309 i %An 921 872 May 5,552 5,584 2,075 2,144 1,196 ,194 ,350 1,338 931 908 June 5,399 5,949 2,004 2,247 L 174 324 I 321 I 453 900 925 July 5,541 5,747 2,065 2,199 1,158 ,242 1,397 1,426 921 880 Aug .... .... 5,529 5,519 2,084 2,063 1,157 17? ,355 1,382 933 902 Sect 5,617 5,393 2,104 1,989 1,191 l\U2 1,405 1,348 917 914 Oct 5,507 5,552 2,030 2,044 1,156 1,192 1,402 1,319 919 997 Nov 5,456 5,323 2,036 1,873 1,114 1,070 1,370 1,365 936 1,015 Dec 5,816 6,767 2,186 2,176 1Q1 1,317 441 i 7ru 996 1,570 1965—Jan... 5,883 5,023 2,224 2,020 1,175 1,027 1,459 1,219 1,025 757 Repayments 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 50,620 18,468 11,434 12,593 8,125 1963 . .. .... 55,111 20,266 12 211 13 618 9 016 1964 60,418 22,268 13,161 14,825 10,164 1964—Jan 4,848 4,932 1.768 1.805 1.076 1.050 1.184 1,186 820 891 Feb 4,842 4,597 1,793 1,703 1,094 1,032 1,173 1,085 782 777 Mar 4,956 5,079 1,843 ,891 1,084 1,152 1,201 1,225 828 811 Apr 4,959 4,991 1,833 1,853 1,097 1,110 I 197 1,205 832 823 May 5,059 4,846 1,876 1,809 1,114 1,060 1,234 1,174 835 803 June 5,029 5,155 1,845 1,899 1,102 L 123 I 223 1 283 859 850 July 5,058 5,165 1,857 1,930 1,097 1,111 1,267 1,287 837 837 AUE 5,094 4,960 1,889 1,850 1,087 1,056 1,237 1,210 881 844 Sent 5,104 5,002 1,860 1,851 1,118 1,097 1,266 1,210 860 844 Oct 5,097 5,172 1,868 1,908 1,071 1,120 1,284 1,244 874 900 Nov 5,155 5,064 1,916 1,856 1,103 1,073 I 255 1,258 881 877 Dec 5,256 5,455 1.944 1.913 1.129 .177 1.303 1,458 880 907 1965—Jan 5,213 5,078 1,921 1,872 1,059 992 1,299 1,233 934 981 Net change in credit outstanding 2 1957 2,148 1,066 491 665 —75 1958 —225 — 63 —765 289 315 1959 5,601 2,447 1 475 986 693 I960 ... 3,588 1,446 1,152 1,051 -61 1961 696 335 — 199 578 —20 1962 . .... 4,506 1,997 921 932 656 1963 5,711 2 605 1 329 1 276 501 1964 5,652 2,333 1,239 1,426 654 1964—Jan 428 -148 160 20 396 317 128 -29 -256 -456 Feb 579 -45 336 169 93 -52 110 37 40 -199 Mar 524 243 163 120 125 14 91 65 145 44 Apr 412 587 148 305 63 91 112 142 89 49 May 493 738 199 335 82 134 116 164 96 105 June 370 794 159 348 72 201 98 170 41 75 July 483 582 208 269 61 131 130 139 84 43 435 559 195 213 70 116 118 172 52 58 Sept 513 391 244 138 106 78 139 138 24 37 Oct 410 380 162 136 85 72 118 75 45 97 Nov 301 259 120 17 11 -3 115 107 55 138 Dec 560 1,312 242 263 62 140 140 246 116 663 1965 Jan 670 -55 303 148 116 35 160 -14 91 -224 1 Includes adjustment for differences in trading days. months the differences between extensions and repayments for some 2 Net changes in credit outstanding are equal to extensions less repay- particular holders do not equal the changes in their outstanding credit. ments except: (1) in 1959, when the differences do not reflect the intro- Such transfers do not affect total instalment credit extended, repaid, or duction of outstanding balances for Alaska and Hawaii, and (2) in certain outstanding. months when data for extensions and repayments have been adjusted to See also NOTE to previous table. eliminate duplication resulting from large transfers of paper. In those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 INDUSTRIAL PRODUCTION: S.A. MARCH 1965 MARKET GROUPING (1957-59= 100) 19 p 5 r 7 o - - 59 H964 1964 1965 Grouping por- avertion age Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec. Jan. Total index 100.00 132.0 127.7 128.2 129.0 130.5 131.3 131.6 132.9 133.8 134.0 131.: 135.0 137.5 138.1 Final products, total 47.35 131.5 128.5 128.1 128.7 130.6 131.1 131.7 132.3 133.3 132.5 130.3 134.6 137.4 137.3 Consumer goods 32.31 131.3 128.9 128.8 128.8 130.8 131.0 131.5 132.1 133.1 132.0 129.2 133.6 137.0 137.0 Equipment, including defense, . . 15.04 132.0 127.9 127.1 128.8 130.7 131.3 132.0 132.7 133.6 133.7 132.6 136.8 138.3 138.0 Materials 52.65 132.5 126.7 128.1 129.3 130.6 131.3 131.8 133.6 134.7 135.6 132.2 135.7 137.8 138.6 Consumer goods Automotive products 3.21 145.1 146.6 145.5 144.3 149.3 151.4 151.7 152.6 155. 144.7 105.9 143.0 166.2 166.0 Autos 1.82 150.6 155.3 156.5 152.5 160.0 160.3 161.7 162.6 165.0 146.0 83.0 145.1 183.0 182.8 Auto parts and allied products.... 1.39 138.0 135.2 131.1 133.4 135.2 139.6 138.4 139.3 143.8 143.0 136.1 140.2 144.0 143.9 Home goods and apparel 10.00 131.2 127.0 128.3 126.8 128.9 129.5 130.0 131.2 131.9 131.9 133.8 136.3 137.7 138.0 Home goods 4.59 139.9 134.8 137.3 136.4 137.7 136.9 137.8 139.7 140. 139.8 142.4 146.7 148.1 150.0 Appliances, TV, and radios 1.81 134.2 127.5 131.3 128.7 130.7 129.7 131.0 131.1 133.3 136.8 139.0 143.2 143.1 Appliances 1.33 139.7 130.7 135.3 132.9 134.7 139.4 136.9 136.6 140.0 143.9 146. 149.6 145.9 TV and home radios .47 118.8 118.6 120.3 116.9 119.5 102.4 114.3 115.5 114.5 116.7 119.1 125.1 135.5 132.9 Furniture and rugs 1.26 142.4 136.1 138.1 139.0 139.7 141.0 141.9 144.7 144.2 141.0 145.5 148.3 149.7 150.3 Miscellaneous home goods 1.52 144.7 142.3 143.7 143.5 144.2 142.1 142.4 145.9 144.8 142.3 143.7 149.7 152.7 155.8 Apparel, knit goods, and shoes.... 5.41 123.8 120.4 120.7 118.7 121.5 123.2 123.4 124.0 124.9 125.3 126.6 127.5 128.9 Consumer staples 19.10 128.9 127.0 126.2 126.3 128. 128.3 128.9 129.1 130.0 129.9 130.7 130.5 131.7 132.2 Processed foods 8.43 119.9 121.4 120.2 118.4 120.8 120.2 119.4 118.4 118.7 118.7 120.0 122.0 122.5 123.1 Beverages and tobacco 2.43 122.4 116.5 118.5 121.9 125.2 122.6 119.4 126.4 125.5 123.3 123.3 123.1 Drugs, soap, and toiletries 2.97 146.9 142.2 140.1 140.1 142.8 144.5 150.5 146.7 149.1 152.6 151.9 149.7 m'.s 153.3 Newspapers, magazines, and books, 1.47 123.7 121.5 123.7 125.1 126.7 124.7 125.5 123.5 123.2 121.3 121.8 122.8 124.3 126.1 Consumer fuel and lighting 3.67 141.2 136.5 134.7 136.2 138.5 138.7 140.6 142.8 145.7 144.4 145.8 142.4 143.2 Fuel oil and gasoline 1.20 119.6 115.6 116.8 117.6 120.9 120.4 121.8 121.4 118.8 120.4 122.2 119.9 120.1 118.5 Residential utilities 2.46 151.7 146.6 143.4 145.3 147.1 47.6 149.8 153.2 158.8 156.1 157.4 153.4 154.5 Electricity 1.72 159.3 154.3 149.2 151.9 154.5 155.2 157.6 162.2 169.8 165.6 166.8 161.1 162.7 Gas .74 Equipment Business equipment 11.63 139.0 132.9 131.9 134.2 136.5 138.0 139.0 140.0 141.6 141.8 140.7 146.2 148.4 147.4 Industrial equipment 6.85 136.9 128.9 127.9 131.9 133.9 135.7 137.6 138.5 139.6 140.4 140.4 144.5 145.9 144.6 Commercial equipment 2.42 145.3 141.6 140.4 141.0 143. 141.9 143.7 145.7 145.5 147.6 149.3 151.0 152.4 152.6 Freight and passenger equipment. 1.76 141.0 137.0 137.8 135.8 140.8 143.9 141.3 141.9 144.9 141.0 128.6 149. 155.2 154.2 Farm equipment .61 132.4 131.2 126.0 127.6 126.6 130.7 129.1 127.9 139.9 136.0 145.1 138.0 140.5 Defense equipment 3.41 Materials Durable goods materials. 26.73 131.0 123.0 125. 127.3 129.0 129.8 130.8 132.7 134.1 135.6 128.1 134.5 136.2 137.2 Consumer durable 3.43 145.4 141.9 144.3 141.9 144.1 143.8 148.1 150.2 167.0 153.1 113.2 146.7 155.5 159.1 Equipment 7.84 134.2 129.2 129.6 130.4 131.6 132.9 133.3 133. 135.7 137.1 137.2 138.9 141.3 142.3 Construction 9.17 124.4 119.6 123.2 123.4 123.8 123.5 122.8 125.7 125.7 125.8 123.8 126.6 127.3 127.1 Metal materials n.e.c.. . 6.29 128.7 117.6 123.4 125.2 126.9 127.5 127.3 130.2 130.6 128.4 130.9 134.5 139.3 140.8 Nondurable materials 25.92 134.0 130.4 130.6 130.8 132.3 132.8 132.9 134.6 135.2 135.7 136.3 137.0 139.4 140.6 Business supplies 9.11 127.1 124.4 125.2 124.9 126.1 126.5 124.9 126.9 127.1 125.9 128.7 128.9 133.0 134.3 Containers 3.03 127.7 125.1 125.5 123.6 127.0 128.2 123.8 125.0 125.6 125.4 131.6 132.1 135.3 138.9 General business supplies. . 6.07 126.9 124.0 125.1 125.6 125.7 125.7 125.4 127.9 127.8 126.2 127.3 127.3 131.9 132.0 Nondurable materials n.e.c... 7.40 157.5 152.2 152.2 152.4 154.6 153.9 155.7 158.7 160.2 163.0 161.4 163.5 165.5 167.8 Business fuel and power 9.41 122.3 119.1 118.7 118.7 120.7 122.2 122.7 123.0 123.4 123.7 123.9 123.9 125.1 125.4 Mineral fuels 6.07 111.7 110.2 109.3 108.9 110.3 112.1 112.2 112.4 112.7 113.0 113.3 112.8 113.0 113.1 Nonresidential utilities 2. 149.4 142.7 143.5 144.5 147.9 148.9 149.7 149.8 150.9 150.6 150.6 151.4 154.9 Electricity 2.32 149.4 143.8 144.6 145.6 149.0 150.1 150.6 150.5 151.5 151.0 150.4 150.5 154.6 General industrial 1.03 142.7 134.8 135.6 136.9 140.5 142.0 143.5 143.9 145.1 147.1 144.1 147.4 149.7 Commercial and other.. 1.21 159.4 154.9 155.6 156.4 159.9 160.7 160.4 160.9 161.9 159.2 160.6 158.1 164.2 Gas .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 142. li 139.7 140.7 139.7 142.4 142.9 143.5 145.0 146.6 141.8 127.3 145.2 155.5 156.6 Apparel and staples 24.51 127.8 125.5 125.0 124.6 127.2 127.2 127.7 128.0 128.9 128.9 129.8 129.9 131.0 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INDUSTRIAL PRODUCTION: S.A. 477 INDUSTRY GROUPINGS (1957-59= 100) 957-59 1964 1965 pro- Grouping por- avertion age Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec, Jan. Total index. 100.00 132.0 127.7 128.2 129.0 130.5 131.3 131.6 132.9 133.8 134.0 131.2 135.0 137.5 138.1 Manufacturing, total.. 86.45 132.9 128.5 129.1 129.9 131.4 132.2 132.4 133.9 134.5 134.9 131.7 136.0 139.0 139.4 Durable 48.07 133.2 128.1 128.9 130.0 131.6 132.6 133.2 135.0 135.7 135.2 129.4 136.7 140.6 141.3 Nondurable 38.38 132.4 128.9 129.4 129.8 131.1 131.7 131.5 132.5 133. 134.4 134.5 135.2 136.9 137.1 Mining 8.23 110.9 108.8 108.9 108.8 109.9 111.3 111.4 110.9 111.9 111.9 112.0 112.7 112.3 112.4 Utilities 5.32 150.5 144.5 143.4 144.8 147.5 148.3 149.7 151.4 154.5 153.2 153.8 152.3 154.7 155.5 Durable manufactures Primary and fabricated metals 12.32 130.1 120.0 122.6 124.6 126.3 128.5 128.1 132.1 133.7 133.5 131.3 135.6 138.8 139.1 Primary metals 6.95 128.2 113.6 117.6 120.9 123.8 127.1 126.1 131.2 132.8 132.8 131.8 134.6 137.9 138.2 Iron and steel 5.45 125.6 108.3 114.5 118.1 123.7 127.8 125.2 130.4 132.2 129.1 130.3 133.4 135.7 136.9 Nonferrous metals and products. 1.50 137.6 132.2 139.9 142.6 138.5 135.0 132.8 135.9 133.0 138.5 133.9 140.3 150.9 144.6 Fabricated metal products 5.37 132.6 128.2 129.0 129.3 129.5 130.3 130.6 133.3 134.8 134.3 130.7 136.9 139.9 140.2 Structural metal parts 2.86 130.3 124.4 126.0 127.8 129.2 128.1 129.6 131.2 131.0 131.7 128.6 135.8 137.2 137.4 Mach inery and related products.... 27.98 136.1 132.9 132.3 133.2 135.2 135.9 137.1 138.0 138.7 137.8 128.7 139.0 144.1 145.1 Machinery 14. 141.0 134.7 133.6 135.9 137.5 138.5 140.1 141.9 142.8 144.1 144.7 147.4 149.2 150.1 Nonelectrical machinery 8.43 141.8 135.2 132.9 136.7 138.1 139.6 141.9 143.6 144.1 145.0 145.4 148.2 149.8 150.8 Electrical machinery 6.37 140.0 134.0 134.5 134.9 136.8 137.0 137.7 139.7 141.1 142.9 143.8 146.3 148.5 149.1 Transportation equipment 10.19 130.7 130.8 131.1 130.1 133.0 134.1 134.9 134.3 134.3 130.9 105.3 129.2 140.3 141.2 Motor vehicles and parts 4.68 150. 151.9 153.0 151.1 156.2 157.4 158.3 158.6 160.9 150.1 96.2 143.9 167.4 168.7 Aircraft and other equipment. . . 5.26 112.4 111.1 110.8 110.6 112.0 112.8 113.4 111.7 111.5 112.7 110.8 114.5 115.0 115.6 Instruments and related products. . 1.71 136.4 132.2 133.6 134.2 134.7 134.6 134.8 136.4 137.4 138.6 137.6 140.2 142.0 143.0 Ordnance and accessories 1.28 Clay, glass, and lumber 4.7. 121.1 117.9 121.6 121.9 121.6 120.9 120.1 122.6 121.4 120.7 121.0 120.9 727.7 722.2 Clay, glass, and stone products. 2.99 126.0 121.2 124.1 125.3 125.2 124.3 126.6 126.4 125.6 127.0 126.9 127.7 130.2 131.7 Lumber and products 1.73 112.7 112.2 117.3 116. 115.4 114.9 109.0 116. 114.1 109.7 110.8 109.2 105.5 105.9 Furniture and miscellaneous.. 3.0. 138.4 133.0 133.9 134.7 135.6 136. 138.0 138.5 139.0 138.4 141.7 143.4 145.4 745.4 Furniture and fixtures 1.54 143.4 137.3 138.1 139.0 139.8 140. 142.8 143.2 144.4 144.1 147.4 149.3 151.5 150.7 Miscellaneous manufactures. 1.51 133.3 128.6 129.7 130.4 131.4 131.9 133. 133.8 133.4 132.6 135.9 137.4 139.1 140.0 Nondurable manufactures Textiles, apparel, and leather. 7.60 124.8 120.7 122.4 121.7 121.6 123.5 122.9 124.9 126.0 126.8 128.4 130.2 757.5 129.6 Textile mill products 2.90 122.8 118.8 119.8 118.9 119.4 119.3 119. 121.5 123.5 125.8 127.5 129.6 130.9 132.3 Apparel products 3.59 134.0 129.4 131.7 131.8 130.5 132.8 133.8 134.4 135.1 135.8 137.2 139.1 140.6 Leather and products 1.11 100. 97.8 99.3 96.3 98.4 104.7 97.3 103.5 103.1 100.3 192.4 103.2 103.8 Paper and printing 8.1 127.5 123.4 124.5 125.4 127.5 128. 126.6 128.0 127.9 128. 129.2 128.0 131.4 131.8 Paper and products 3.43 133.4 128.7 129.1 130.4 132.9 134.3 130.1 132.8 132.8 135.5 137.0 133.8 139.3 Printing and publishing 4.74 123.2 119.5 121.2 121.8 123.6 123.9 124.1 124.5 124.3 123.0 123.6 123.9 125.6 126.7 Newspapers 1.53 117.0 113.9 114.5 115.2 117.' 117.1 117. 120.0 118.3 115.9 116.3 117.5 119.6 120.7 Chemicals, petroleum, and rubber. 11.54 152. 146.4 146.9 147.4 149.5 150.0 152.1 152.3 153.6 156.9 155.4 755.5 *757.5 158.7 Chemicals and products 7.58 159.4 154.7 154.5 155.2 ]157.0 156.7 159.6 158.7 160.8 165.0 162.5 163.0 164.9 167.1 Industrial chemicals 3.84 178.0 173.1 173.3 174.9 176.7 173.7 176.3 177.1 178.7 184.9 179.9 182.6 185.0 Petroleum products 1.9 121.0 116.0 119.1 119.7 120.8 122.0 122.1 124.6 121.2 120.4 122.9 121.6 120.6 120.9 Rubber and plastics products 1.9! 155.7 145.0 145.3 145.1 149.4 152. 153. 155.2 158.2 162.4 161.0 160.5 165.7 Foods, beverages, and tobacco 11.07 120.6 120.2 119.5 120. 121. 120. 119.5 120.5 120.5 120.0 120.9 722.7 123.4 723.5 Foods and beverages 10.25 120.6 120.8 120.6 120.3 120.6 120.0 119.6 120.0 120.4 120.0 120.7 122.8 123. 123.4 Food manufactures 8.64 120.2 121.3 119.8 119.7 120.0 120. 119.5 118.9 119. 119. 120.2 122.6 122.9 123.2 Beverages 1.61 123. 118.4 125.0 123.8 124.1 119. 120.1 125.8 127.6 124.6 123.3 124.1 Tobacco products 120.8 112.7 105.6 118.2 127.5 129. 118.1 127.5 [121.4 120.6 123.3 121.0 Yl'SA Mining Coal, oil, and gas 6.80 109.4 107.5 107.4 107.1 108.1 109.9109.8 110.1 110. 111. 0 110.8 770.7 110.1 110.3 Coal 1.16 104.3 104.0 99.2 94.5 98. 106. 105.1 105.0 107. 105.1 109. 108.7 107. 107.7 Crude oil and natural gas 5.64 110.4 108.3 109.1 109.7 110.0 110.7 110.8 111.1 111.3 112.3 111.1 110.4 110. 110.9 Oil and gas extraction 4.91 113.4 111.7 111. 112.3 113.0 113.5 113.8 114.2 113.8 114.9 114.3 113.8 114. 114.4 Crude oil 4.25 109.8 108.5 107.8 109.0 109.6 110.1 110.2 110.3 109.8 111. 110.8 110.2 110.9 110.6 Gas and gas liquids .66 136.5 132. 136. 133.3 134.8 135.3 137. 139.0 139.6 139. 136.8 136.5 Oil and gas drilling .73 90. 84.9 91.5 92.0 89.8 91.3 90.1 90.5 94.0 94.4 87.3 Metal, stone, and earth minerals. 1.43 118.1 114. 116.4 117.0 118.5 117.9 119. 114.9 117. 116. 118.0 125.3 722.7 122.6 Metal mining .61 117.3 116.4 118.8 119.8 124.2 119. 119. 107.7 112. 111.3 115. 127.1 121.8 124.4 Stone and earth minerals .82 118.7 113.5 114. 115.0 114.3 116.8 119. 120. 121.7 119.6 119.7 123.9 123. 121.2 Utilities Electric. 4.04 153.6 148.3 146.5 148.3 151.3 152.3 153. 155.5 159.3 157.2 157.4 155.0 158.1 Gas 1.28 140. 135.5 136. 138.3 138.9 139. 140.5 141.6 142. 143.0 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

478 INDUSTRIAL PRODUCTION: N.S.A. MARCH 1965 MARKET GROUPINGS (1957-59= 100) 1957-59 1964 1965 pro- M964 Grouping por- avertion age Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.; Dec' Jan. Total index. 100.00 132.0 125.7 128.3 129.0 131.7 132.3 133.9 137.6 132.9 136.5 135.0 135.9 135.2 136.2 Final products, total 47.35 131.5 126.7 128.5 128.5 130. 130.5 133.3 127. 131.4 136. 134.9 135.1 134.6 135.5 Consumer goods 32.31 131.3 126.1 128.9 127.7 130.3 130.0 133.2 126.3 131.5 137.1 136.0 134.8 132.5 134.3 Equipment, including defense . . . 15.04 132.0 128.0 127.5 130.1 131.5 131.8 133.5 130.1 131.1 134.0 132.4 135.7 139.0 138.0 Materials 52.65 132.5 124.9 128.1 129.6 132.6 133.9 134.5 127.8 134. 136.8 135.0 136.6 135.9 136.9 Consumer goods Automotive products 3.21 145.1 151.9 154.4 152.1 162.5 160.6 162.7 131.1 89.5 139.1 114.7 153.4 169.5 175.8 Autos 1.82 150.6 165.4 172.2 167.8 182.4 176.3 180.3 130.1 46. 132.9 95.4 165.4 192.2 201.1 Auto parts and allied products.... 1.39 138.0 134.1 130.9 131.4 136.4 139.8 139.4 132.4 146.7 147. 140.2 137.6 139.7 142.5 Home goods and apparel 10.00 131.2 121.6 132.9 129.8 130.5 129.5 131. 120.0 134.2 135.1 141.6 138.3 129.3 130.5 Home goods 4.59 139.9 129.5 137.4 138.6 138.3 135.6 140.5 126.8 136.4 147.4 150.2! 151.8 145.8 141.9 Appliances, TV, and radios 1.81 134.2 124.7 138.7 137.8 135.9 130.0 136.8 110.4 120.2 144.1 145.8 148.9 135.2 Appliances 1.33 139.7 126.0 144.6 147.5 144.9 141.6 145.3 118.8 122.0 147. 143.2 150.8 141.1 TV and home radios .47 118. 121.0 122.2 110.2 110.5 97.4 112.9 86.6 115.1 134.8 153.1 143.5 118.4 120.9 Furniture and rugs 1.26 142.4 133.1 135.8 137.3 137.2 135.6 140.2 137.0 146.1 147.1 152.3 152.3 154.5 147.0 Miscellaneous home goods 1.52 144.7 132.1 137.2 140.6 142.0 142.1 145.2 137.9 147.7 151.6 153.8 154.9 151.2 144.6 Apparel, knit goods, and shoes 5.41 123. 115.0 129.1 122.3 123.9 124.4 123.4 114.1 132.4 124.7 134.2 126.9 115.| Consumer staples 19.10 128.9 124.1 122.5 122.6 124.8 125.0 129.2 128.8 137. 137.9 136.71 129.8 128.0 129.3 Processed foods 8.43 119.9 113.5 111.1 109.8 112.7 114. 116.9 117. 129.4 135. 134.3 125.1 118.7 115.1 Beverages and tobacco 2.43 122.4 102.3 107.4 117.6 127.6 131.0 136.5 132.0 136.1 124.9 129.5 116.3 Drugs, soap, and toiletries 2.97 146.9 141.1 139.7 139.4 142.8 144.6 153.8 140.8 152.4 154.1 154.9 150.1 152.1 Newspapers, magazines, and books. 1.47 123.7 120.3 122. 124.8 125.7 123.7 124.5 121.6 124.8 124.7 123.5 122.8 124.8 124.8 Consumer fuel and lighting 3.67 141.2 150.1 144.0 140.2 135.0 130.5 134.2 145.0 148.4 144.7 137.0 135.4 146.8 Fuel oil and gasoline 1.20 119.6 120.5 119.9 116.4 114.7 116.3 120.3 123.5 122.3 120.4 119.0 119.2 122.9 123.6 Residential utilities 2.46 151.7 Electricity 1.72 159.3 179.9 166.1 161.3 151.4 140.5 145.0 165.4 173.2 166.4 150.1 146.6 168.4 Gas .74 Equipment Business equipment 11.63 139.0 132.5 132.4 135.9 137. 138.8 141.2 137.1 138.7 142. 140.1 144.1 148.3 147.0 Industrial equipment 6.85 136.9 129.2 127.3 132.0 133.9 135.8 138.8 137.1 139.2 141.7 139.6 142.5 146.8 144.9 Commercial equipment 2.42 145.3 141.7 139.4 139.7 140.4 140.2 144.1 142.8 145.8 149.8 151.8 152.8 155.0 152.8 Freight and passenger equipment. 1.76 141.0 132.9 139.2 141.9 146.4 148.2 147.0 136.2 136.2 139.0 128.6 146.1 149.8 149.6 Farm equipment .61 132.4 131.8 142.0 147.3 147.3 140.5 139.9 115.8 111.9 125.9 133.5 122.1 134.4 Defense equipment 3.41 Materials Durable goods materials 26.73 131.0 121.1 125.3 127.4 131.2 133.9 134.9 127.7 132.6 136.3 131.3 135.4 135.0 134.9 E C C M q o o e u n n t i a s s p t u l r m m u m e c e a n t r t i t e o d r n i u a r l a s b n le .e.c 9 7 6 3 . . . . 2 1 8 4 9 7 4 3 1 1 1 1 2 2 3 4 4 8 4 5 . . . . 4 7 2 4 1 1 1 1 4 1 0 3 6 4 8 0 . . . . 9 5 0 4 1 1 1 1 2 3 4 1 4 0 6 3 . . . . 5 8 5 3 1 1 1 1 1 4 2 3 6 6 8 1 . . . . 0 2 2 8 1 1 1 1 4 3 2 3 8 2 2 3 . . . . 4 0 6 0 1 1 1 1 2 3 4 3 7 3 9 4 . . . . 8 8 5 5 1 1 1 1 3 3 3 4 4 1 2 9 . . . . 6 4 0 6 1 1 1 1 2 1 2 3 9 8 9 5 . . . . 7 5 5 2 1 1 1 1 3 3 2 4 4 1 6 0 . . . . 5 6 8 3 1 1 1 1 5 3 3 3 3 2 3 5 . . . . 1 3 3 7 1 1 1 1 3 3 1 3 4 0 6 6 . . . . 0 6 0 8 1 1 1 1 3 2 5 3 5 6 1 9 . . . . 6 1 3 0 1 1 1 1 3 1 4 6 3 8 3 3 . . . . 2 4 4 3 1 1 1 1 3 1 4 6 7 4 3 4 . . . . 1 8 6 7 Nondurable materials 25.92 134.0 128.8 131.0 131. 134.0 133.9 134.1 127.8 135.9 137.3 138.9 138.0 136. 138.9 Business supplies 9.11 127.1 119.6 123.1 124.9 129.5 128.6 126.9 120.2 129.2 130.3 134.3 130.1 127.6 129.1 Containers 3.03 127.7 117.6 123.0 123.6 130.8 129.5 130.0 125.0 138.2 133.6 138.2 124.8 117.7 130.6 General business supplies. . 6.07 126.9 120.5 123.2 125.6 128.8 128.2 125.4 117.7 124.6 128.7 132.4 132.8 132.6 128.3 Nondurable materials n.e.c.. . 7.40 157.5 151.4 155.2 156.2 157.7 157.7 158.0 147.3 157.8 161.4 162.2 165.1 162.2 167.0 Business fuel and power 9.41 122.3 119.9 119.6 119.3 119.8 120.4 122.2 119.8 125.2 125.0 124.9 124.2 125.5 126.3 Mineral fuels 6.07 111.7 112.1 112.6 111.4 111.6 111.0 111.0 104.6 111.3 111.8 114.1 114.2 114.7 115.1 Nonresidential utilities 2.86 149.4 Electricity 2.32 149.4 141.5 138.9 141.3 141.9 146.0 152.5 158.9 162.9 159.9 152.6 147.7 151.4 General industrial 1.03 142.7 134.1 132.1 136.9 138.7 142.7 144.8 143.9 148.0 149.3 147.3 147.4 148.2 Commercial and other. 1.21 159.4 151.0 147.8 148.0 147.9 152.2 163.0 177.0 181.2 174.3 162.2 152.7 159.3 Gas .54 Supplementary groups of consumer goods Automotive and home goods 7.80 142.1 138.7 144.4 144.1 148.3 145.9 149.6 128.6 117.1 144.0 135.6 152.5 155.6 155.9 Apparel and staples 24.51 127.8 122.1 124.0 122.5 124.6 124.9 127.9 125.6 136.1 135.0 136.2 129.1 125.2 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INDUSTRIAL PRODUCTION: N.S.A. 479 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1964 1965 pro- PI 964 Grouping por- avertion age Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec/ Jan. Total index 100.00 132.0 125.7 128.3 129.0 131.7 132.3 133.9 127.6 132.9 136.5 135.0 135.9 135.2 136.2 86.45 132.9 125.8 129.1 130.0 133.0 133.7 135.2 127.9 133.1 137.4 136.0 137.4 136.2 136.9 Durable 48.07 133.2 126.7 129.5 131.3 134.1 134.8 136.4 128.8 129.6 136.8 132.2 138 6 140 4 140 1 38.38 132.4 124.7 128.5 128.4 131.7 132.3 133.6 126.7 137.4 138.2 140.8 135.8 131.0 132.9 8.23 110.9 107.9 108.3 107.6 109.8 111.7 112.6 107.0 113.0 113.3 114.5 113.3 111.9 111.5 5.32 150 5 Durable manufactures Primary and fabricated metals 12.32 130.1 119.3 124.4 127.4 130.7 131.9 131.2 123.5 131.5 135.4 133.8 136.7 136.2 138.7 6.95 128.2 114.7 124.3 128,4 132.1 132.9 128.6 117.4 125.9 131.3 133.1 135.9 133.8 140.2 5.45 125.6 110.5 119.4 124.0 128.6 130.4 125.2 116.1 124.3 129.1 132.3 134 7 132.3 139 6 Nonferrous metals and products.. 1.50 137.6 130.0 142.0 144.2 144.6 142.2 141.0 122.3 131.7 139.5 136.4 140.3 139.4 142.1 Fabricated metal products 5.37 132.6 125.1 124.7 126.2 128.9 130.6 134.5 131.3 138.8 140.7 134.6 137 7 139.2 136 8 2.86 130.3 121.9 121.0 122.8 125.3 127.5 132.2 131.2 135.6 137.0 132.5 137.8 138.6 134.7 Machinery and related products 27.98 136.1 133.7 134.7 136.0 138.1 137.9 139.8 130.9 126.8 137.7 130.2 141.4 146.7 146.6 Tyfachinerv 14.80 141.0 134.3 135.5 138.4 139.5 139.8 142.6 135.3 138.5 145.3 145.3 147.5 150.6 149.8 Nonelectrical machinery 8.43 141.8 135.1 135.3 140.5 142.2 143.1 145.3 140.0 138.8 143.1 142.8 145 1 150.8 151 6 6.37 140.0 133.3 135.8 135.6 135.8 135.4 139.0 129.1 138.0 148.1 148.7 150.8 150.3 147.3 Transportation equipment 10.19 130.7 133.4 135.0 134.3 138.5 137.7 138.4 125.1 109.1 128.5 108.3 135.0 144.7 146.0 4.68 150.1 157.0 160.1 158.1 166.7 165.0 167.4 142.0 106.7 145.8 102.3 155 0 174.9 178.5 Aircraft and other equipment.... 5.26 112.4 112.2 112.1 112.3 112.6 112.3 111.8 109.0 109.5 112.2 111.4 116.2 117.3 116.8 Instruments and related products... 1.71 136.4 131.3 131.6 132.2 132.7 133.3 136.1 135.0 138.5 140.1 139.1 142.7 143.7 142.0 1.28 Clay glass and lumber 4.72 121.1 104.2 112.0 113.9 120.4 125.4 129.2 126.0 132.4 129.9 128.2 121.1 110.5 106 0 Clay, glass, and stone products 2.99 126.0 107.3 111.7 115.9 124.6 129.3 134.6 133.4 136.3 134.6 134.5 129.6 120.4 113.3 Lumber and products ... 1.73 112.7 98.7 112.6 110.3 113.1 118.7 119.9 113.2 125.5 121.8 117.4 106.5 93.4 93.2 Furniture and miscellaneous 3.05 138.4 127.8 129.6 131.5 133.1 133.1 138.3 135.5 143.4 144.8 149.2 148.2 146.7 139.7 Furniture and fixtures 1.54 143.4 234.6 134.6 135.9 137.4 136.3 142.5 141.8 149.2 149 6 153 0 152 0 154 2 147 7 Miscellaneous manufactures 1.51 133.3 120.9 124.5 127.1 128.8 129.9 133.9 129.1 137.4 139.9 145.4 144 3 H9.1 131 6 Nondurable manufactures Textiles avnarel and leather 7.60 1H.8 117.6 129.5 124.7 124.7 126.2 125.1 113.0 131.4 126.0 132.3 129.4 119.3 126.1 Textile mill products 2.90 122.8 116.4 122.8 123.1 121.2 124.7 124.6 110.3 126.6 126.4 127.5 130 2 121.7 131 0 3.59 134.0 124.9 142.2 133.1 135.7 135.5 133.8 121.6 141.9 133.1 144.7 137.7 124.4 1.11 100.7 97.3 106.2 102.1 98.4 100.0 98.3 92.6 109.8 101.8 105.0 101.1 96.8 8.17 127.5 120.4 124.5 126.4 130.9 129.3 127.3 120.9 127.8 129.4 134.9 130.9 127.4 129.4 Paper and products • •. 3.43 133 4 126.8 132.3 131.7 138.2 135.0 132.7 124.8 137.3 135 5 145.9 134 5 126.4 Printing and publishing 4.74 123.2 115.8 118.9 122.6 125.6 125.1 123.4 118.2 121.0 124.9 126.9 128.4 128.2 122.7 1.53 117.0 104.9 110.7 117.5 125.5 124.8 117.8 104.4 107.1 116.7 122.6 128.7 123.2 111.2 Chemicals, petroleum, and rubber.... 11.54 152.2 145.3 147.7 148.3 151.7 152.2 155.4 145.3 154.7 157.8 757.8 155.2 154.9 157.5 7.58 159.4 152.8 155.0 156.5 160.3 159.9 163.0 152.9 160.9 164.5 163.6 162.6 162.6 165.0 Industrial chemicals 3.84 178.0 172.2 175.0 176.6 179.3 176.5 178.1 170.9 176.6 183.1 180.8 184.1 186.3 Petroleum products 1.97 121 0 114.3 117.3 115.5 116.0 120.2 125.8 128.3 127.3 125 2 123 5 119 8 118 8 U9 i Rubber and plastics products....... 1.99 155.7 147.2 150.4 149.7 154.0 154.5 155.7 133.5 158.2 164.5 170.0 162.1 161.6 Foods beverages and tobacco....... 1 1 1 0 . . 0 2 7 5 1 1 2 2 0 0 . . 6 6 1 1 1 1 1 1 . . 4 4 1 11 1 1 0 . . 2 7 1 1 1 1 1 1 . . 7 4 1 1 1 1 6 5 . . 2 4 1 1 1 1 8 6 . . 0 7 1 1 2 2 1 0 . . 3 9 1 1 2 2 0 1 . . 8 5 1 1 3 3 0 0 . . 5 5 1 1 3 3 2 3 . . 7 2 1 1 3 3 3 3 . . 4 4 1 1 2 2 3 3 . . 6 6 1 1 1 1 6 7 . . 7 9 1 11 1 3 4 .5 8 8.64 120.2 114.0 111.7 110.1 113.0 114.3 117.0 117.7 129.0 134.9 134.6 125.7 119.2 115.8 Beverages 1.61 123.2 97.7 108.6 118.2 127.8 129.5 141.7 141.8 138.4 124.6 127.0 112.7 Tobacco products .82 120.8 111.5 105.1 116.4 127.2 133.8 126.4 112.8 131.4 125.3 134.3 123.4 Mining 6.80 109.4 109.8 110.1 108.6 108.7 108.4 108.6 103.2 109.7 110.2 111.1 111.6 112.1 112 7 Coal 1.16 104.3 101.9 100.4 95.3 99.4 107.2 108.4 77.2 113.5 111.2 119.0 113 2 105.3 105 5 5.64 110.4 111.4 112.1 111.4 110.7 108.7 108.6 108.5 108.9 109.9 110.2 111.3 113.5 114 2 4.91 113.4 114.5 115.4 115.2 114.5 111.9 111.6 111.1 110.8 111.9 113.0 114 5 116.9 117 4 Crude oil 4.25 109 8 110.1 111.0 111.2 111.4 109.0 109.1 108.1 107.6 108 9 109 7 110 2 112 0 112 3 Gas and gas liquids .66 136.5 143.0 144.0 140.5 134.1 130.0 127.6 130.7 131.1 131.3 133.9 141.6 Oil and gas drilling .73 90.1 90.4 89.3 85.3 85.1 87.3 88.2 91.1 96.2 96.4 91.4 89.5 Metal, stone, and earth minerals 1.43 118.1 98.7 100.1 102.7 114.8 127.0 131.8 125.0 128.8 128.4 128.0 121.6 111.1 105.5 .61 117.3 102.4 106.9 106.6 115.5 131.3 134.7 115.2 121.2 125.8 123.8 116.9 109.6 109.5 Stone and earth minerals . .82 118.7 96.0 95.1 99.8 114.3 123.8 129.6 132.3 134.5 130.4 131.1 125.1 112.3 102.5 Utilities Electric 4.04 153.6 157.9 150.8 149.8 145.9 143.7 149.3 161.6 167.3 162.6 151.5 147.3 158.6 1.28 140.7 1 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

480 BUSINESS ACTIVITY; CONSTRUCTION MARCH 1965 SELECTED BUSINESS INDEXES (1957-59= 100) Industrial production fa M ct a u n r u in - g 2 Prices 4 Nonag- Major market groupings Con- ricul- Maior industry stru- tural Freight Total Period Total Final products Mate- Jgroupings t c r ti a o o c n n t - s m T p e e l o m o n t y a t ~ — - l i p m E lo m en y - t - P ro a l y ls - l i o n a g d s - s r a e l t e a s i l 3 s C um on e - r W m c s o o h a m d l o e i l - t e y - Total g s C o u o o m n d e - s r E m q e u n ip t - rials Mfg. M in i g n- U iti t e il s - 1950 74.9 72.8 78.6 56.4 76.9 75.8 83.2 49.5 61 86.1 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 91.1 106.1 80.2 121.5 76 90.5 96.7 1952 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 67 93.0 106.1 84.5 115.0 79 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 83 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 82 93.6 92.9 1955 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 91 96.5 105.5 94.8 115.3 89 93.3 93.2 1956 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 92 99.8 106.7 100.2 115.9 92 94.7 96.2 1957 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 93 100.7 104.7 101.4 108.2 97 98.0 99.0 1958 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 102 97.8 95.2 93.5 93.8 98 100.7 100.4 1959 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 105 101.5 100.1 105.1 97.9 105 101.5 100.6 I960 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.2 99.9 106.7 95.3 106 103.1 100.7 1961 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 108 102.8 95.9 105.4 91.2 107 104.2 100.3 1962 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 120 105.7 99.1 113.8 92.4 115 105.4 100.6 1963 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 132 107.9 99.7 117.9 93.3 120 106.7 100.3 1964? 132.0 131.5 131.3 132.0 132.5 132.9 110.9 150.5 137 110.8 101.7 124.7 95.5 127 108.1 100.5 1964—Jan 127.7 128.5 128.9 127.9 126.7 128.5 108.8 144.5 147 109.2 100.5 120.6 97.2 123 107.7 101.0 Feb 128.2 128.1 128.8 127.1 128.1 129.1 108.9 143.4 143 109.8 100.8 122.3 96.9 126 107.6 100.5 Mar 129.0 128.7 128.8 128.8 129.3 129.9 108.8 144.8 140 110.0 101.1 122.5 94.0 124 107.7 100.4 Apr 130.5 130.6 130.8 130.7 130.6 131.4 109.9 147.5 138 110.1 101.1 123.4 94.8 125 107.8 100.3 May 131.3 131.1 131.0 131.3 131.3 132.2 111.3 148.3 138 110.3 101.1 123.3 96.4 127 107.8 100.1 131.6 131.7 131.5 132.0 131.8 132.4 111.4 149.7 138 110.6 101.6 123.8 93.6 127 108.0 100.0 July 132.9 132.3 132.1 132.7 133.6 133.9 110.9 151.4 140 110.9 101.9 124.3 94.5 128 108.3 100.4 Aug 133.8 133.3 133.1 133.6 134.7 134.5 111.9 154.5 121 111.0 102.0 126.0 93.2 130 108.2 100.3 Sept 134.0 132.5 132.0 133.7 135.6 134.9 111.9 153.2 131 111.3 102.9 127.6 96.4 130 108.4 100.7 Oct . 131.2 130.3 129.2 132.6 132.2 131.7 112.0 153.8 136 111.2 100.5 122.9 94.6 125 108.5 100.8 Nov r135.0 134.6 133.6 136.8 135.7 136.0 112.7 152.3 143 112 1 103.2 127.9 98 5 127 108.7 100.7 Dec 137.5 137.4 137.0 138.3 137.8 139.0 112.3 154.7 154 112.7 104.0 130.9 99.1 133 108.8 100.7 1965—Jan 138.1 137.3 137.0 138.0 138.6 139 4 112.4 155.5 137 113.0 104.6 132 8 100 4 134 108.9 101.0 Feb.*> 138.8 138.5 138.1 139.4 139.5 140.3 112.5 156.5 113.4 104.9 133.5 96.4 135 101.2 1 Employees only, excludes personnel in the armed forces. NOTE.—Data are seasonally adjusted unless otherwise noted. 2 Production workers only. Construction contracts: F. W. Dodge Co. monthly index of dollar 3 Federal Reserve index based on Census Bureau figures. value of total construction contracts, including residential, nonresidential, 4 Prices are not seasonally adjusted. and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. Freight carloadings: Based on data from Association of American Railroads. CONSTRUCTION CONTRACTS (In millions of dollars) 1964 1965 Type of ownership and 1963 1964 type of construction Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. 45,546 47,299 3,346 3,201 4,215 4,359 4,639 4,504 4,601 3,760 3,762 4,029 3,757 3,598 3,127 By type of ownership: Public 14,653 15,371 1,197 1,041 1 1,318 1,535 1,491 1,619 1J01 1 1 310 174 I 230 30,893 31,928 2,149 ,160 ,876 3,042 3,104 3,013 ,983 ,658 ,638 719 2 368 By type of construction: 20,502 20,561 1,372 1 1,991 2,006 2,050 1,996 ,000 1,679 1,717 170? 148? 1 273 Nonresidential buildins 14,377 15,495 1,158 1,082 1,252 1,420 1,362 1,400 1,548 1,275 1,228 1,425 1,263 1,298 1,155 10,667 11,244 816 692 972 933 1,227 1,107 1,054 807 817 902 1,012 994 700 NOTE.—Dollar value of total contracts as reported by the F. W. Dodge data exceed annual totals because adjustments—negative—are made to Co. 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

MARCH 1965 CONSTRUCTION 481 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 ia u B l s u - sin m e 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 t o i e h s a n n i e l - - - 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 1956 47,601 34,869 20,178 11,076 3,084 3,631 4,361 3,615 12,732 1,360 4,415 1,275 5,682 1957 49,139 35,080 19,006 12,029 3,557 3,564 4,908 4,045 14,059 1,287 4,934 1,344 6,494 1958 50,153 34,696 19,789 10,659 2,382 3,589 4,688 4,248 15,457 1,402 5,545 1,387 7,123 19591 55,305 39,235 24,251 10,557 2,106 3,930 4,521 4,427 16,070 1,465 5,761 1,467 7,377 1960. 53,941 38 078 21,706 11,652 2 851 4,180 4,621 4,720 15,863 1,366 5,437 1,487 7,573 1961 55,447 38,299 21,680 11,789 2,780 4,674 4,335 4,830 17,148 1,371 5,854 ,581 8,342 1962. 59,453 41,695 24,292 12,222 2,949 4,955 4,318 5,181 17,758 .222 6,378 ,754 8,404 1963 62,451 43,772 25,843 12,656 2,962 5,200 4,494 5,273 18,679 6,670 .966 1964 66,008 45,954 26,560 13,757 3,333 5,635 4,789 5,637 20,054 6,971 2,298 1964 Jan 64,684 45,440 26,907 13,106 3,060 5,499 4,547 5,427 19,244 6,685 2,185 Feb 65,528 46 274 27,600 13,151 3,058 5,546 4,547 5,523 19,254 6,169 2,273 Mar 66 509 46 923 28 123 13 260 3 074 5 668 4 518 5 540 19 586 6 796 2 341 Apr 66 615 46 449 27 538 13,297 3 076 5 561 4 660 5 614 20 166 7,068 2,371 May 64,983 45,780 26,678 13,437 3,149 5,542 4,746 5,665 19,203 6,410 2,404 June 66,576 46,006 26,612 13,598 3,204 5,562 4,832 5,796 20,570 6,888 2,402 July 66,641 46,261 26,708 13,736 3,334 5,574 4,828 5,817 20,380 7,549 2,368 Aus 65,991 45,906 26,342 13,784 3,505 5,609 4,670 5,780 20,085 7,021 2,325 Sept 66 454 45 861 25 972 14 183 3 514 5 746 4 923 5 706 20 593 7 273 2 264 Oct 65,335 45,521 25,679 14,231 3,540 5,776 4,915 5,611 19,814 6,667 2,199 Nov . . . 65,588 45,497 25,642 14,297 3,655 5,767 4,875 5,558 20,091 7,151 2,193 Dec ...... 67,311 46,184 26,016 14,621 3,791 5,639 5,191 5,547 21,127 7,500 2,172 196*? Jan v 66,597 46,432 26.494 14,423 3,788 5,579 5,056 5,515 20,165 7,098 2,133 Feb P 67,696 47,244 27,083 14,548 3,905 5,587 5,056 5,613 20,452 2 132 i Beginning with 1959, includes data for Alaska and Hawaii. NOTE.—Monthly data are at seasonally adjusted annual rates. Beginning with 1959, figures are Census Bureau estimates. Data before 1959 are joint estimates of the Dept. of Commerce and Labor. NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership Government- (priv Q a te A only) underwritten Private Period Total Metro- Non- Total N fa o rm n- politan p m o e li t t r a o n - Total fam 1- ily fam 2- ily f M am ul i t l i y - Public Total FHA VA 1955 1,646 1.627 19 670 277 393 1956 1,349 ,325 24 465 195 271 1957 1,224 ,175 49 322 193 128 1958 1,382 ,314 68 439 337 102 1959.. . . 1,554 1,077 477 ,517 1,234 56 227 37 458 349 109 1960 1,296 889 407 1^1 995 44 214 44 336 261 75 1961 1,365 948 417 1^313 975 44 295 52 328 244 83 1962 1,492 1,054 439 1,463 992 49 422 30 339 261 78 1963 1,641 1,151 490 1,609 1,021 53 535 32 292 221 71 1964 *1,582 1,116 465 n, 549 975 53 522 *33 264 205 59 1964—Jan 1,718 1,688 101 75 26 100 55 4 41 1 16 11 4 Feb 1,657 1,613 101 74 27 100 64 5 32 1 17 12 4 Mar 1.663 1.638 133 97 37 130 82 5 43 3 21 16 5 Apr •. 1,531 1,501 152 103 50 149 91 6 52 4 23 18 5 M^ay 1,529 1,507 161 115 45 158 101 5 52 3 29 23 5 1,611 1,585 164 118 46 159 102 5 51 6 25 19 6 July 1,505 1,483 145 103 42 143 92 4 47 2 26 20 6 AUE 1,430 1,408 145 97 48 142 90 4 47 3 23 18 5 Sept 1,457 1,433 126 90 36 123 80 4 40 3 23 18 5 Oct 591 1,559 143 99 44 141 90 5 46 2 24 19 5 Nov 1,455 1,429 114 77 37 111 70 4 38 2 21 16 5 Dec Pl.596 V1,559 *97 69 28 *>95 59 3 34 P2 17 13 4 1965—Jan.. p1,487 V1,457 ?>86 60 27 *>82 P4 16 13 4 NOTE.—Beginning with 1959, Census Bureau series includes both farm are pending. Data from Federal Housing Admin, and Veterans Admin, and nonfarm series developed initially by the Bureau of Labor Statistics. represent units started, based on field office reports of first compliance Series before 1959 reflect recent Census Bureau revisions which are not inspections. available by area or type of structure. Complete revisions pre-1959 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

482 EMPLOYMENT MARCH 1965 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force Unemploy- Period i p T n o s o t p t i a u tu l l t a n i t o o io n n n a - l T l f a o o b r t c o a e r l Employed1 Unem- l N ab o o t r i n f o t r h c e e (pe m r r a e t c e n e 2 t nt) Total In nonagri- In ployed S.A. Total cultural industries agriculture 1959 123,366 71,946 69,394 65,581 59,745 5,836 3,813 51,420 5.5 1960 3 125,368 73,126 70,612 66,681 60,958 5,723 3,931 52,242 5.6 1961 . 127,852 74,175 71,603 66,796 61,333 5,463 4,806 53,677 6.7 1962 130,081 74,681 71,854 67,846 62,657 5,190 4,007 55,400 5.6 1963 132,125 75,712 72,975 68,809 63,863 4,946 4,166 56,412 5.7 1964 134,143 76,971 74,233 70,357 65,596 4,761 3,876 57,172 5.2 1964—Feb 133,358 75,259 72,527 68,002 64,071 3,931 4,524 58,099 5.4 Mar 133,519 75,553 72,810 68,517 64,500 4,017 4,293 57,965 5.4 Apr 133,678 76,544 73,799 69,877 65,448 4,429 3,921 57,135 5.4 May 133,866 77,490 74,742 71,101 66,094 5,007 3,640 56,376 5.2 June 134,041 79,389 76,645 71,953 66,100 5,853 4,692 54,652 5.3 July 134,216 78,958 76,218 72,405 66,586 5,819 3,813 55,258 5.0 Aug 134,400 78,509 75,758 72,104 66,704 5,400 3,654 55,891 5.1 Sept 134,586 76,865 74,122 70,805 65,575 5,230 3,317 57,721 5.1 Oct 134,772 77,112 74,375 71,123 65,997 5,126 3,252 57,661 5.2 Nov 134,952 76,897 74,166 70,793 66,248 4,545 3,373 58,055 4.9 Dec 135,135 76,567 73,841 70,375 66,590 3,785 3,466 58,568 5.0 1965—Jan 135,302 75,699 72,992 68,996 65,257 3,739 3,996 59,603 4.8 Feb 135,469 76,418 73,714 69,496 65,694 3,803 4,218 59,051 5.0 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) Period Total M t a u n r u in f g ac- Mining c C o o n t n i s o t t r n r a u c c t - T ti l o i r c a n n u s & t p il o i p t r u i t e b a s - - Trade Finance Service G m ov e e n r t n 1959 53,297 16,675 732 2,960 4,011 11,127 2,594 7,115 8,083 1960 54,203 16,796 712 2,885 4,004 11,391 2,669 7,392 8,353 1961 53,989 16,326 672 2,816 3,903 11,337 2,731 7,610 8,594 1962 55,515 16,853 650 2,902 3,906 11,566 2,800 7,947 8,890 1963 56,643 17,005 635 2,983 3,914 11,803 2,873 8,230 9,199 1964 , 58,188 17,303 635 3,106 3,976 12,188 2,944 8,533 9,502 SEASONALLY ADJUSTED 1964— Feb 57,684 17,171 633 3,132 3,943 12,083 2,917 8,437 9,368 Mar 57,754 17,208 633 3,122 3,940 12,077 2,924 8,455 9,395 Apr 57,827 17,224 633 3,081 3,964 12,096 2,931 8,461 9,437 May 57,931 17,225 631 3,093 3,968 12,135 2,934 8,489 9,456 June 58,104 17,285 639 3,106 3,965 12,187 2,943 8,509 9,470 July 58,256 17,344 639 3,107 3,983 12,223 2,948 8,561 9,451 Aug 58,301 17,339 634 3,103 3,999 12,231 2,951 8,573 9,471 Sept 58,458 17,449 634 3,080 4,005 12,229 2,960 8,592 9,509 Oct 58,382 17,171 638 3,106 3,9% 12,278 2,964 8,633 9,596 Nov 58,878 17,505 639 3,162 3,997 12,311 2,970 8,634 9,660 Dec 59,206 17,622 637 3,244 4,020 12,362 2,975 8,654 9.692 1965—Jan. P 59.328 17.707 633 3,230 3,937 12.458 2,977 8.687 9.699 59,560 17,757 634 3,250 3,988 12,517 2,984 8,717 9,713 Feb.*> NOT SEASONALLY ADJUSTED 56,445 16,937 614 2,631 3,880 11,772 2,891 8,277 9,443 1964—Feb 56,783 17,005 615 2,707 3,885 11,862 2,901 8,328 9,480 Mar 57,329 17,058 627 2,921 3,924 11,919 2,919 8,453 9,508 Apr 57,874 17,135 634 3,130 3,952 12,031 2,931 8,548 9,513 May 58,596 17,350 651 3,308 4,005 12,180 2,964 8,654 9,484 June 58,418 17,299 646 3,424 4,031 12,173 2,998 8,698 9,149 July 58,680 17,498 647 3,482 4,043 12,201 2,998 8,676 9,135 Aug 59,258 17,792 645 3,391 4,045 12,243 2,972 8,661 9,509 Sept 59,164 17,428 644 3,376 4,028 12,341 2,961 8,676 9,710 Oct 59,441 17,638 643 3,273 4,013 12,518 2,958 8,608 9.790 Nov 59,938 17,601 635 3,053 4,024 13,166 2,957 8,585 9,917 Dec 1965—Jan.? 58,265 17,457 619 2,833 3,878 12,286 2,947 8,513 9.732 58,289 17,524 615 2,730 3,924 12,195 2,957 8.551 9,793 1 Data include 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 armed NOTE.—Bureau of Labor Statistics; data include all full- and part- 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

MARCH 1965 EMPLOYMENT AND EARNINGS 483 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1964 1965 1964 1965 Feb. Dec. Jan.* Feb.* Feb. Dec. Jan.? Feb.* Total.. 12,692 13,099 13,170 13,217 12,482 13,082 12,946 13,003 Durable goods 7,139 7,467 7,515 7,567 7,041 7,471 7,420 7,465 Ordnance and accessories 112 100 100 102 112 102 101 102 Lumber and wood products 539 536 530 535 506 521 499 502 Furniture and fixtures 329 344 346 348 323 345 342 342 Stone, clay, and glass products 493 501 503 499 465 489 473 471 Primary metal industries 965 1,041 1,045 1,046 964 1,032 1,036 1,045 Fabricated metal products 911 951 961 977 892 954 949 957 Machinery except electrical 1,082 1,165 1,168 1,172 1,087 1,159 1,166 1,177 Electrical machinery 1,023 1,078 1,087 1,096 1,017 1,092 1,089 1,089 Transportation equipment 1,136 1,181 1,203 1,214 1,145 1,215 1,219 1,224 Instruments and related products 233 237 238 240 231 238 237 238 Miscellaneous manufacturing industries 316 333 334 338 299 325 308 319 Nondurable goods 5,553 5,632 5,655 5,650 5,441 5,611 5,526 5,538 Food and kindred products 1,157 1,154 1,152 1,142 1,069 1,131 1,083 1,055 Tobacco manufactures 76 76 73 77 73 80 73 74 Textile-mill products 803 812 816 818 794 809 804 809 Apparel and other finished textiles 1,150 1,186 1,199 1,191 1,159 1,181 1,173 1,199 Paper and allied products 491 495 496 497 483 496 491 489 Printing, publishing and allied industries 598 610 612 614 595 615 608 610 Chemicals and allied products 527 532 536 536 521 528 529 531 Products of petroleum and coal 118 113 113 112 116 111 110 110 Rubber products 326 339 343 349 323 342 342 346 Leather and leather products 307 315 315 314 308 317 313 315 NOTE.—Bureau of Labor Statistics; data cover production and related the pay period ending nearest the 15th of the month. workers only (full- and part-time) who worked during, or received pay for 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 1964 1965 1964 1965 1964 1965 Feb. Dec. Jan.? Feb.? Feb. Dec. Jan.* Feb.* Feb. Dec. Jan.p Feb.* Total. 40.7 41.2 41.4 41.4 101.15 106.81 105.93 106.19 2.51 2.58 2.59 2.59 Durable goods 41.3 42.0 42.3 42.1 110.29 117.17 115.79 115.79 2.69 2.77 2.77 2.77 Ordnance and accessories 40.3 40.6 41.0 41.0 119.29 126.48 126.48 125.46 2.96 3.07 3.07 3.06 Lumber and wood products 40.2 40.2 40.3 40.1 82.37 83.95 82.78 83.35 2.08 2.12 2.08 2.11 Furniture and fixtures 41.3 41.8 41.5 41.9 82.62 88.40 84.46 85.90 2.03 2.08 2.07 2.08 Stone, clay, and glass products 41.7 42.2 41.7 41.7 101.75 106.14 104.19 105.01 2.50 2.57 2.56 2.58 Primary metal industries 41.2 42.2 42.3 42.5 126.18 133.14 132.93 133.98 3.07 3.14 3.15 3.16 Fabricated metal products 41.8 42.3 42.4 42.6 109.18 116.03 113.70 114.66 2.65 2.73 2.72 2.73 Machinery except electrical 42.4 43.1 43.1 43.1 120.56 126.44 125.56 125.99 2.85 2.92 2.93 Electrical machinery 40.4 41.1 41.1 41.1 100.90 106.50 104.70 104.70 2.51 2.56 2.56 Transporation equipment 42.0 42.9 43.6 43.8 126.99 140.80 137.81 137.81 3.06 3.20 3.19 Instruments and related products 40.8 41.3 41.3 41.6 101.66 107.74 106.45 106.97 2.51 2.59 2.59 Miscellaneous manufacturing industries.. 39.6 40.0 39.9 40.0 82.56 85.44 84.14 84.99 2.09 2.12 2.13 2.13 Nondurable goods 39.8 40.0 40.1 40.2 89.44 93.26 92.50 92.73 2.27 2.32 2.33 2.33 Food and kindred products 40.9 41.3 41.4 41.0 95.68 100.19 99.80 98.33 2.38 2.42 2.44 2.44 Tobacco manufactures 37.3 39.6 38.4 39.5 69.19 82.42 76.88 76.67 1.96 2.03 2.05 2.05 Textile-mill products 41.2 41.8 42.1 42.1 71.98 77.04 75.76 76.91 1.76 1.83 1.84 Apparel and other finished textiles 36.4 36.5 36.7 36.5 64.61 65.16 64.98 66.25 1.78 1.80 1.82 Paper and allied products 42.9 42.9 43.1 43.2 107.10 112.32 111.19 111.71 2.52 2.60 2.61 Printing, publishing and allied industries. 38.3 38.6 38.5 38.6 112.01 117.39 114.60 115.58 2.94 3.01 3.01 Chemicals amd allied products 41.5 41.6 41.6 41.9 113.99 118.71 117.58 118.14 2.76 2.84 2.84 Products of petroleum and coal 42.3 42.0 41.4 41.2 131.65 135.53 134.14 129.36 3.18 3.25 3.24 3.21 Rubber products 41.1 41.6 42.2 42.2 101.09 109.04 108.26 107.17 2.49 2.59 2.59 2.57 Leather and leather products 37.9 38.2 37.5 38.7 68.76 71.76 71.24 72.54 1.80 1.84 1.86 1.86 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

484 PRICES MARCH 1965 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o u n i a e d l l l t e r G a i l c n e a i c d s t - y o n F i t p a n i i u n e s o g r h d r n s a - - - A u p p a p n k a d e r e e p l T p t o r i a o r n t n a s - - Total M c ic a e a r d e l - s P c o a e n r r a e - l r R e t a i c e i n n o r a g e d n d a - - g O s a i o e c t n o r h e v d d e s - r s 1929 59.7 55.6 85.4 1933 45.1 35.3 60.8 1941 51.3 44.2 61.4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58.2 1945 62.7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75.0 67.3 1956 94.7 94.7 95.5 96.5 94.1 95.9 95.9 97.3 97.8 91.3 93.6 91.8 93.7 93.4 95.8 1957 98.0 97.8 98.5 98.3 98.2 100.8 96.9 99.4 99.5 96.5 97.0 95.5 97.1 96.9 98.5 1958 100.7 101.9 100.2 100.1 100.4 99.0 100.3 99.9 99.8 99.7 100.3 100.1 100.4 100.8 99.8 1959 101.5 100.3 101.3 101.6 101.4 100.2 102.8 100.7 100.6 103.8 102.8 104.4 102.4 102.4 101.8 1960 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104.9 103.8 1961 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103.0 105.0 107.3 111.3 104.6 107.2 104.6 1962 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107.2 109.4 114.2 106.5 109.6 105.3 1963 106.7 105.1 106.0 106.8 107.0 104.0 107.9 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107.1 1964 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1964—Jan 107.7 105.8 106.9 107.3 108.5 106.6 108.1 102.7 105.0 109.4 112.7 118.2 108.5 113.1 108.3 Feb 107.6 106.0 106.9 107.5 108.8 106.6 106.2 102.7 105.1 108.6 112.9 118.5 108.4 113.3 108.4 Mar 107.7 105.7 107.1 107.5 108.9 106.1 107.1 102.8 105.3 108.9 113.1 118.7 108.7 113.6 108.5 Apr 107.8 105.7 107.0 107.7 108.6 103.3 108.0 102.9 105.6 109.0 113.4 119.0 108.7 114.0 108.6 May 107.8 105.5 106.9 107.7 108.4 102.1 108.0 102.9 105.7 109.1 113.5 119.1 108.9 114.1 108.7 June 108.0 106.2 107.1 107.8 108.7 101.4 108.1 102.9 105.7 109.2 113.5 119.3 109.1 114.0 108.7 July 108.3 107.2 107.1 107.8 108.9 100.9 107.9 102.8 105.5 109.4 113.7 119.5 109.3 114.1 108.9 Aug 108.2 106.9 107.2 107.9 109.2 100.9 108.2 102.6 105.3 109.3 113.8 119.8 109.4 114.2 108.9 Sept 108.4 107.2 107.4 107.9 109.5 101.5 108.2 102.8 105.9 108.9 113.9 119.7 109.5 114.3 109.0 Oct 108.5 106.9 107.6 108.2 109.6 102.9 108.2 102.8 106.2 109.4 114.0 119.9 109.7 114.5 109.1 Nov 108.7 106.8 107.7 108.3 109.8 103.7 108.1 102.9 106.4 110.0 114.2 120.2 109.7 114.9 109.1 Dec 108.8 106.9 107.8 108.4 110.0 105.8 108.3 102.9 106.6 110.5 114.3 120.3 110.0 114.9 109.2 1965—Jan 108.9 106.6 108.1 108.4 110.6 106.5 108.0 102.8 105.6 111.1 114.5 120.6 110.0 115.0 109.3 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. The new series index begins with January 1964. WHOLESALE PRICES: SUMMARY (1957-59= 100) Other commodities Period m c t A o i o e m l d s l i - - p F u r a c o r t d m s - f P e o s r o s o e d c d s - Total t T e il e t e c x s . - , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m . s, - R b e u t e c b r . , - L b e u t e c m r . , - P e a t p c e . r,Metals c M e h r i a y n - - F t e u u t r r c e n . , i- N t m m a o l i e l n n i - c - - b T ac o c - o n c M e e o l i l s u a - - s erals 1956 96.2 96.6 94.3 96.5 100.7 94.8 97.4 97.5 100.6 103.8 97.2 97.8 92.1 96.9 95.2 95.1 98.1 1957 99.0 99.2 97.9 99.2 100.8 94.9 102.7 99.6 100.2 98.5 99.0 99.7 97.7 99.4 98.9 98.0 96.6 1958. 100.4 103.6 102.9 99.5 98.9 96.0 98.7 100.4 100.1 97.4 100.1 99.1 100.1 100.2 99.9 99.7 101.5 1959 100.6 97.2 99.2 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.2 100.4 101.2 102.2 101.9 I960 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 1963 100.3 95.7 101.1 100.7 100.5 104.2 99.8 96 3 93.8 98 6 99.2 100 1 102 2 98.1 101.3 106.1 110.4 1964P 100.5 94.3 101.0 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102.8 102.9 98.5 101.5 107.4 109.2 1964—Jan 101.0 96.3 102.5 101.3 101.2 102.7 99.5 96.3 93.7 99 0 99 8 101.7 102.5 98.4 101.1 107.6 112.6 Feb 100.5 94.5 100.9 101.2 101.2 102.5 99.0 96.4 93.6 99.9 99.9 101.8 102.5 98,5 101.2 107.1 110.9 Mar 100.4 95.2 100.5 101.1 101.2 102.5 97.0 96.5 93.9 101.0 99.3 102.0 102.7 98.5 101.1 107.1 109.8 Apr 100.3 94.4 100.4 101.1 101.1 104.5 96.1 96.6 93.1 101.8 99 1 102.2 102.9 98.6 101.3 107.1 109.5 May 100.1 93.7 99.4 101.1 101.2 104.7 96.4 96.7 92.6 101.8 98.7 102.1 103.3 98.6 101.3 107.3 107.2 June 100.0 93.2 100.2 100.9 101.0 104.8 96.3 96.5 91.6 101.4 98.7 102.3 103.0 98.5 101.4 107.4 106.7 July 100.4 94.1 101.2 101.1 101.1 105.4 96.7 96.6 91.8 101.2 98.7 102.5 103.1 98.6 101.5 107.3 107.5 100.3 93.6 101.0 101.1 101.2 105.6 96.4 96.5 91.8 100 9 98.7 103.0 102.9 98.6 101.7 107.5 107.3 Sept 100.7 95.7 102.2 101.1 101.2 105.4 95.2 96.6 91.9 100.6 98.7 103.0 102.9 98.6 101.8 107.5 109.2 Oct 100.8 93.8 101.7 101.5 101 4 106 0 96 7 96 9 92 1 100 3 99 1 103 8 103 0 98 5 101 8 107 6 110 1 Nov 100.7 94.0 100.9 101.6 101.4 105.5 97.6 97.1 92.2 99.6 98.9 104.3 103.2 98.5 101.8 107.5 108.5 Dec 100.7 '92.7 100.8 101.8 101.5 105.4 '98.1 97.2 r92.2 99.4 98.9 104.7 103.1 r98.4 r101.6 107.5 110.7 1965—Jan 101.0 93.0 102.2 101.9 101.6 104.8 98.7 97.3 92.3 100.8 99.0 104.5 103.3 98.4 101.7 107.5 109.9 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 PRICES 485 WHOLESALE PRICES: DETAIL (1957-59= 100) 1964 1965 1964 1965 Group Group Jan. Nov. Dec, Jan. Jan. Nov. Dec. Jan. Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce. 95.9 108.0 '98.9 98.5 Woodpulp 96.1 96.8 96.8 98.1 Grains , 103.9 88.0 90.1 90.4 Wastepaper 91.1 92.5 95.9 96.1 Livestock and poultry... 84.7 83.6 83.1 85.5 Paper 103.1 104.0 103.7 103.7 Plant and animal fibers.., 101.5 93.9 92.6 92.4 Paperboard 96.5 96.4 96.4 96.4 Fluid milk , 102.8 105.4 105.0 103.8 Converted paper and paperboard... 100.0 97.9 97.9 97.9 Eggs. 106.3 91.6 85.3 78.9 Building paper and board 95.2 93.9 '93.3 93.3 Hay and seeds 115.5 115.6 116.7 119.0 Other farm products. 99.0 98.4 98.3 95.3 Metals and Metal Products: Processed Foods: Iron and steel 100.2 100.9 101.1 101.4 Nonferrous metals 101.4 112.0 113.4 111.9 Cereal and bakery products 107.0 108.3 108.2 108.2 Metal containers 104.6 105.6 105.6 105.7 Meat, poultry, and fish 91.8 89.8 88.8 91.9 Hardware 104.6 104.8 104.8 104.8 Dairy products and ice cream 108.0 109.5 108.9 108.3 Plumbing equipment 100.5 104.1 104.1 104.1 Canned and frozen fruits, and veg- Heating equipment 92.0 91.9 92.2 91.2 etables 107.2 102.3 101.9 101.9 Fabricated structural metal products. 99.0 99.9 100.0 100.2 Sugar and confectionery 130.3 104.7 107.1 110.0 Fabricated nonstructural metal prod- Packaged beverage materials 90.6 98.2 98.2 97.2 ucts 109.3 108.2 108.3 108.3 Animal fats and oils 88.2 107.3 107.7 106.1 Crude vegetable oils 74.4 106.2 105.9 104.2 Machinery and Motive Products: Refined vegetable oils 74.8 99.0 98.0 96.1 Vegetable oil end products 94.4 100.1 100.6 Agricultural machinery and equip... 112.1 113.8 114.2 114.2 Miscellaneous processed foods 107.4 110.3 111.2 114.5 Construction machinery and equip... 111.8 113.4 113.7 113.8 Metalworking machinery and equip.. 110.8 114.1 114.2 115.3 Textile Products and Apparel: General purpose machinery and equipment 104.6 104.9 105.0 104.4 Cotton products 101.3 99.1 99.4 99.5 Miscellaneous machinery 104.1 105.1 104.1 105.1 Wool products 103.2 103.3 102.8 103.4 Special industry machinery and Man-made fiber textile products 94.7 96.5 96.8 97.2 equipment (Jan. 1961= 100) 105.2 106.4 106.6 107.3 Silk products 121.6 117.8 117.4 121.6 Electrical machinery and equip 96.9 96.5 96.3 96.3 Apparel 102.3 103.2 103.1 103.1 Motor vehicles 99.8 100.7 100.8 100.7 Other textile products 117.6 119.4 r117.8 118.8 Transportation equip., R.R. rolling stock (Jan. 1961= 100) 100.5 100.6 100.6 100.6 Hides, Skins, Leather, and Products: Hides and skins 76.1 90.7 90.2 86.5 Furniture and Other Household Dura- Leather 99.5 103.9 103.9 104.2 bles: Footwear 108.3 109.0 109.0 109.2 Other leather products. 101.9 103.9 104.0 102.1 Household furniture 105.0 105.6 105.7 106.0 Commercial furniture 103.1 103.2 103.3 103.3 Fuels and Related Products, and Power: Floor coverings 100.1 99.0 99.0 98.0 Household appliances 91.5 90.9 90.8 90.6 Coal 98.3 98.0 98.2 98.4 Television, radios, and phonographs. 87.2 87.2 '86.6 86.5 Coke..... 103.6 107.3 107.3 107.3 Other household durable goods 103.6 104.3 104.4 104.6 Gas fuels (Jan. 1958= 100) 124.8 123.1 124.0 124.0 Electric power (Jan. 1958= 100). 101.3 101.4 101.3 101.1 Petroleum products, refined 96.6 93.3 94.0 95.2 Nonmetallic Mineral Products: Chemicals and Allied Products: Flat glass 101.0 103.1 102.1 102.1 Concrete ingredients 102.7 102.9 102.9 103.1 Industrial chemicals 94.3 94.1 94.2 94.6 Concrete products 101.2 101.1 101.1 101.2 Prepared paint 105.1 104.9 104.8 104.8 Structural clay products 103.5 104.9 105.0 105.0 Paint materials 91.2 91.3 91.2 91.3 Gypsum products 106.1 108.6 106.6 106.6 Drugs and Pharmaceuticals... 95.4 94.7 94.7 94.5 Prepared asphalt roofing 87.4 91.2 91.2 91.2 Fats and oils, inedible 83.1 112.6 116.8 113.6 Other nonmetallic minerals 101.3 101.5 101.2 101.0 Mixed fertilizers 103.6 104.5 104.7 104.4 Fertilizer materials 99.4 "100.7 100.7 102.3 Tobacco Products and Bottled Bever- Other chemicals and products. 99.2 99.6 99.6 99.8 ages: Rubber and Products: Tobacco products 105.9 106.1 106.1 106.1 Alcoholic beverages 101.0 100.5 100.5 100.5 Crude rubber 89.4 92.1 90.3 90.7 Nonalcoholic beverages 127.7 128.1 128.1 128.1 Tires and tubes 91.3 88.0 '88.8 88.8 Miscellaneous rubber products. 97.9 96.5 r96.4 96.6 Miscellaneous Products: Lumber and Wood Products: Toys, sporting goods, small arms... 100.9 100.9 101.0 101.2 Manufactured animal feeds 120.4 112.4 116.4 115.1 Lumber.. 99.2 99.2 99.1 100.8 Notions and accessories 99.1 99.1 99.1 99.1 Millwork. 106.7 109.0 109.0 107.7 Jewelry, watches, photo equipment.. 103.6 103.9 103.9 103.8 Plywood.. 91.1 90.7 90.3 94.8 Other miscellaneous products 101.7 103.2 103.0 102.5 NOTE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 NATIONAL PRODUCT AND INCOME MARCH 1965 GROSS NATIONAL PRODUCT OR EXPENDITURE (In billions of dollars) 1963 1964 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964* IV II III IV* Gross national product 104.4 56.0 125.8 284.6 502.6 518.7 556.2 583.9 622.6 599.0 608.8 618.6 628.4 634.6 Personal consumption expenditures. 79.0 46.4 81.9 195.0 328.2 337.3 356.8 375.0 399.3 381.3 390.0 396.1 404.6 406.5 Durable goods 9.2 3.5 9.7 30.4 44.9 43.7 48.4 52.1 57.0 53.6 55.9 57.0 58.7 56.3 Nondurable goods 37.7 22.3 43.2 99.8 151.8 155.4 162.0 167.5 177.3 168.9 172.9 175.3 179.5 181.3 Services 32.1 20.7 29.0 64.9 131.5 138.3 146.4 155.3 165.1 158.8 161.1 163.8 166.4 169.0 Gross private domestic investment. 16.2 1.4 18.1 50.0 71.8 68.8 79.1 82.0 87.7 87.1 85.9 87.2 87.3 90.4 New construction 8.7 1.4 6.6 24.2 40.7 41.0 44.2 46.6 48.9 48.3 49.2 48.9 48.9 48.7 Residential, nonfarm 3.6 .5 3.5 14.1 21.1 21.1 23.6 25.2 26.0 26.2 26.9 26.2 25.7 25.1 Other 5.1 1.0 3.1 10.1 19.7 19.8 20.6 21.3 22.9 22.1 22.3 22.7 23.1 23.6 Producers* durable equipment.. 5.9 1.6 6.9 18.9 27.6 25.9 29.0 31.0 35.1 32.4 34.2 34.6 35.6 36.0 Change in business inventories. 1.7 -1.6 4.5 6.8 3.5 1.9 5.9 4.4 3.7 6.4 2.5 3.7 2.8 5.7 Nonfarm only 1.8 -1.4 4.0 6.0 3.2 1.5 5.3 3.9 3.6 6.0 2.2 3.4 2.7 6.1 Net exports of goods and services. .8 .2 1.1 .6 3.0 4.6 4.0 4.4 7.0 5.8 7.7 5.7 7.0 7.7 Exports 2.4 6.0 13.1 26.3 27.6 29.2 30.7 35.2 32.6 34.5 33.7 35.7 37.1 Imports 6i3 2.3 4.8 12.5 23.3 23.0 25.2 26.3 28.2 26.9 26.8 27.9 28.7 29.4 Government purchases of goods and services.. 8.5 8.0 24.8 39.0 99.6 108.0 116.3 122.6 128.6 124.8 125.2 129.6 129.5 130.0 Fe N de a r t a io l nal defense 1.3 2.0 I 1 1 6 3 . . 9 8 1 1 9 4 . . 3 3 4 53 5 . . 1 7 5 4 7 9 . . 4 0 6 5 2 3 . . 9 6 6 5 4 5 . . 7 2 6 5 5 5 . . 5 4 6 5 4 5 . . 9 3 6 5 4 4 . . 3 0 6 5 7 7 . . 1 0 6 5 5 5 . . 5 2 6 5 5 5 . . 3 3 Other 2.0 f 3.2 5.2 8.0 8.9 10.2 10.3 11.2 10.5 11.5 11.0 11.2 11.3 Less: Government sales \ 1.3 .6 .6 .9 .8 1.1 .9 1.2 .9 .9 1.2 State and local 6.0 7.8 !7 46.5 50.6 53.5 57.9 63.0 59.9 60.9 62.5 64.1 64.6 "l.l Gross national product in constant (1954) dollars 181.8 126.6 238.1 318.1 439.9 447.9 476.4 492.6 516.0 502.0 508.0 513.5 519.6 522.7 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally Business; U.S. Income and Output, A Supplement to the Survey of Current adjusted totals at annual rates. For back data and explanation of series Business (1958); and the July 1964 Survey of Current Business. see National Income 1954 Edition, A Supplement to the Survey of Current NATIONAL INCOME (In billions of dollars) 1963 1964 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964P IV II HI National income 87.8 40.2 104.7 241.9 414.5 426.9 455.6 478.5 509.8 490.0 498.4 507.1 514.5 520.2 Compensation of employees 51.1 29.5 64.8 154.2 293.6 302.2 323.1 340.3 361.7 347.7 352.5 358.6 364.8 370.6 Wages and salaries 50.4 29.0 62.1 146.4 271.3 278.8 297.1 312.1 331.6 318.8 323.2 328.7 334.4 339.9 Private 45.5 23.9 51.9 124.1 222.9 227.0 241.6 252.9 267.4 257.6 260.8 265.3 269.4 274.0 Military .3 .3 1.9 5.0 9.9 10.2 10.8 10.9 11.8 11.7 11.7 11.7 11.8 11.9 Government civilian 4.6 4.9 8.3 17.3 38.5 41.6 44.7 48.3 52.4 49.6 50.7 51.7 53.2 54.0 Supplements to wages and salaries .7 .5 2.7 7.8 22.3 23.4 25.9 28.2 30.1 28.8 29.4 29.9 30.4 30.7 Employer contributions for social insurance .1 .1 2.0 4.0 11.3 11.8 13.6 15.1 16.0 15.4 15.7 15.9 16.2 16.2 Other labor income .6 .4 .7 3.8 11.0 11.6 12.3 13.1 14.1 13.4 13.7 14.0 14.2 14.5 Proprietors' income 14.8 5.6 17.4 37.5 46.2 48.2 49.8 50.6 52.0 51.5 51.2 51.7 52.1 52.8 Business and professional 8.8 3.2 10.9 23.5 34.2 35.3 36.6 37.6 39.3 38.3 38.6 39.1 39.6 39.9 Farm 6.0 2.4 6.5 14.0 12.0 12.9 13.2 13.0 12.7 13.2 12.6 12.6 12.6 12.9 Rental income of persons 5.4 2.0 3.5 9.0 12.1 12.2 12.2 12.3 12.4 12.4 12.4 12.4 12.4 12.5 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 44.5 44.1 48.4 50.8 57.0 53.1 56.4 57.9 58.1 56.7 Profits before tax 9.6 .2 17.0 40.6 44.3 44.2 48.2 51.3 57.2 54.3 56.6 57.9 55.0 57.4 Profits tax liability 1.4 .5 7.6 17.9 22.3 22.3 23.2 24.6 25.6 26.0 25.4 26.0 26.0 25.7 Profits after tax 8.3 — .4 9.4 22.8 22.0 21.9 25.0 26.7 31.6 28.3 31.2 31.9 32.0 31.7 Dividends 5.8 2.1 4.5 9.2 14.5 15.2 16.5 18.0 19.8 19.1 19.4 19.8 20.0 20.2 Undistributed profits 2.4 -2.4 4.9 13.6 7.5 6.7 8.5 8.7 11.8 9.2 11.8 12.1 12.0 11.6 Inventory valuation adjustment .5 -2.1 -2.5 -5.0 .2 -.1 .3 — A -.2 -1.2 -.2 -.1 .1 -.7 Net interest 6.4 5.0 4.5 5.5 18.1 20.1 22.1 24.4 26.8 25.4 25.9 26.5 27.1 27.6 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

MARCH 1965 NATIONAL PRODUCT AND INCOME 487 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING (In billions of dollars) 1963 1964 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964* IV II III IV* Gross national product 104.4 56.0 125.8 284.6 502.6 518.7 556.2 583.9 622.6 599.0 608.8 618.6 628.4 634.6 Less: Capital consumption allowances 8.6 7.2 9.0 19.1 43.0 44.5 48.7 50.8 53.4 51.7 52.5 53.1 53.7 54.4 Indirect business tax and nontax liability 7.0 7.1 11.3 23.7 46.4 49.0 52.8 55.9 59.4 57.3 57.9 59.0 60.1 60.7 B St u a s t i i n st e i s c s a l t r d a i n s s c f r e e r p a p n a c y y ments . . 3 6 . . 7 9 . . 5 4 .8 nr 2.2 2.4 2.4 2.4 2.5 2.4 -1 2 . . 6 5 -2 2 . . 4 5 2.5 -2 2 . . 2 5 -3.0 -2.6 -1.8 -2.7 -1.7 -1.8 Plus: Subsidies less current surplus of government enterprises -.1 .1 .2 .5 1.6 1.6 1.0 .9 .7 1.0 .7 1.0 Equals: National income , 87.8 40.2 104.7 241.9 414.5 426.9 455.6 478.5 509.8 490.0 498.4 507.1 514.5 520.2 Less: Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 44.5 44.1 48.4 50.8 57.0 53.1 56.4 57.9 58.1 56.7 Contributions for social insurance .2 .3 2.8 6.9 20.6 21.4 23.9 26.9 28.7 27.5 28.0 28.4 29.0 29.3 Excess of wage accruals over disbursements .1 -.1 Plus: Government transfer payments 1.5 2.6 14.3 27.3 31.3 32.3 34.3 35.7 34.7 35.9 35.5 35.5 35.9 Net interest paid by government 1.0 1.2 1.3 4.8 7.8 7.4 8.0 8.6 9.2 8.8 9.1 9.3 9.2 9.3 Dividends 5.8 2.1 4.5 9.2 14.5 15.2 16.5 18.0 19.8 19.1 19.4 19.8 20.0 20.2 Business transfer payments .6 .7 .5 2.2 2.4 2.4 2.4 2.5 2.4 2.5 2.5 2.5 2.5 Equals: Personal income 85.8 47.2 96.3 228.5 401.3 417.6 442.4 464.1 491.4 474.5 480.9 487.9 494.5 502.2 Less: Personal tax and nontax payments.... 2.6 7.5 3.3 20.8 51.4 52.9 57.9 61.6 59.5 63.3 61.4 57.7 58.8 60.2 Federal 1.3 .5 2.0 18.2 44.0 45.1 49. 51.9 49.0 53.4 51.2 47.3 48.2 49.3 1.4 1.3 2.6 9.6 10.6 10.2 10.5 10.6 10.9 State and local 1.0 7.3 7.8 9.9 83.1 93.0 207.7 384.6 402.5 431.8 419.5 430.2 435.6 442.1 Equals: Disposable personal income 45.7 349.9 364.7 411.2 79.0 81.9 195.0 356.8 375.0 399.3 390.0 396.1 404.6 406.5 Less: Personal consumption expenditures.. 46.4 328.2 337.3 381.3 4.2 11.1 12.6 27.8 27.5 32.5 29.5 34.0 31.0 35.5 Equals: Personal saving -.6 21.7 27.3 29.9 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 317.8 328.2 343.4 354.9 375.8 360.7 366.7! 374.7! 378.8 383.1 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of previous page. PERSONAL INCOME (In billions of dollars) 1964 1965 Item 1963 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec Total personal income. 464.1 491.4 1479.4 480.5 482.9 486.6 487.8 489.3 491.4 494.9 497.9 498.7 502.3 505.9 2509.6 Wage and salary disbursements 312.1 331.6 320.8 323.6 325.1 327.7 328.7 330.1 331.8 334.6 337.2 337.3 340.4 342.6 343.9 Commodity-producing industries... 123.3 129.8 125.6 127.1 127.4 128.8 128.7 129.4 129.9 130.8 132.1 130.7 133.2 134.6 135.4 Manufacturing only 98.0 103.0 100.0 100.7 101.1 102.3 102.3 102.7 103.0 103.8 105.1 103.4 105.6 106.8 107.8 Distributive industries 80.3 84.9 82.4 82.8 83.1 83.7 84.2 84.6 85.2 85.7 86.3 86.8 87.3 87.7 87.8 Service industries 49.3 52.6 50.8 51.4 51.9 52.1 52.3 52.4 52.6 52.9 53.4 53.7 53.9 54.1 54.3 Government 59.2 64.2 62.1 62.4 62.7 63.0 63.4 63.8 64.1 65.1 65.4 66.0 65.9 66.2 66.5 Other labor income 13.1 14.1 13.6 13.7 13.8 13.9 14.0 14.1 14.2 14.2 14.3 14.4 14.5 14.5i 14.6 Proprietors' income 50.6 52.0 51.1 51.3 51.2 51.5 51.7 51.9 51.9 52.2 52.4 52.5 52. 53.2 53.1 Business and professional 37.6 39.3 38.3 38.7 38.8 39.0 39.1 39.3 39.5 39.6 39.7 39.8 39.9 40.1 40.3 Farm 13.0 12.7 12.8 12.6 12.4 12.5 12.6 12.6 12.4 12.6 12.7 12.7 12.9 13.1 12.8 Rental income 12.3 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 12.4 ».,| .2.5| 12.5 12.5 Dividends 18.0 19.8 19.3 19.4 19.6 19.8 19.8 19.9 20.0 20.0 19.9 19.9j 19.9 20.6 20.4 Personal interest income. 32.9 36.0 34.7 35.0 35.3 35.5 35.7 35.9 36.0 36.2 36.5 36.7J 3366..99JJ 37. 2 : 37.4 Transfer payments 36.7 38.2 139.7 37.5 37.8 38.2 38.0 37.6 37.8 38.0 38.0 38.3j 38.4| 38.5 240.8 | Less: Personal contributions for social insurance 11.8 12.7 12.2 12.3 12.4 12.5 12.5 12.6 12.7 12.8 12.9 12.91 13.0 13.11 13.2 Nonagricultural income. 446.6 474.21462.1 463.5 466.1 469.7 470.7 472.1 474.4 477.8 480.6 481.4 484.9 488.6| 2492.4 J A gricultural income 17.5 17.2 17.2 17.0 16.8 17.0 17.1 17.2 16.9 17.1 17.2 I7.3 17.5 17.4! 17.1 1 Includes stepped-up rate of Govt. life insurance dividend payments NOTE.—Dept. of Commerce estimates. Monthly data are seasonally to veterans in the amount of $2.1 billion. adjusted totals at annual rates. See also NOTE to table at top of previous 2 Includes stepped-up rate of Govt. life insurance dividend payments page. to veterans in the amount of $2.0 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 FLOW OF FUNDS MARCH 1965 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1962 1963 1964 Transaction category, 1959 1960 1961 1962 1963 or sector III IV I II III IV I II III I. Saving and investment 116.1 119.4 116.1 130.4 140.3 132.6 132.2 132.5 140.0 141.6 147.3 145.8 148.8 152.0 1 2 Households 73.7 73.5 78.0 83.9 88.2 83.3 84.3 84.9 87.4 87.8 92.4 94.5 100.3 98.9 2 3 Farm and noncorp. business 11.7 11.9 11.8 12.4 14.0 12.5 12.9 13.4 13.9 14.3 14.5 12.8 13.1 13.6 3 33.8 32.6 33.1 38.4 39.4 39.0 40.3 39.4 39.0 40.0 39.1 43.2 44.2 44.7 4 5 US Government -2.1 2.4 -5.2 -5.2 -2.9 — 3.7 -5.6 -5.9 -2.8 -2.0 -.8 -3.9 -9.5 -6.9 5 6 State and local govt -3.8 -3.3 -3.8 -2.2 -2.4 -2.1 -2.5 -2.8 -2.2 -2.3 -2.1 -2.6 -2.7 -2.9 6 2.8 2.3 2.2 3.1 4.1 3.5 2.8 3.4 4.7 3.9 4.2 1.9 3.3 4.5 7 8 Gross national investment 114.4 117.3 114.4 128.8 136.6 129.7 130.9 130.2 134.5 136.4 145.5 147.1 148.3 144.8 8 43.6 44.9 43.7 48.4 52.1 48.4 50.2 51.1 51.5 52.2 53.6 55.9 57.0 58.7 9 6.6 3.5 1.9 5.9 4.4 5.1 5.4 3.6 3.6 4.2 6.4 2.5 3.7 2.8 10 66.1 68.2 66.8 73.2 77.6 75.2 74.6 74.3 76.7 78.6 80.7 83.4 83.4 84.2 11 12 Households 22.1 21.6 20.0 21.4 21.9 21 7 22.4 21.6 21.5 22.2 22.4 22.4 22.8 23.1 12 13 Nonfinan. business 43.3 46.1 46.1 51.2 54.7 52 9 51.8 52.1 54.3 55.3 57.0 59.8 60.1 60.7 13 14 Financial sectors . .8 .5 .7 .6 1.0 5 .4 .6 .9 1.2 1.3 1.2 .4 .4 14 -1.9 .7 2.0 1.3 2.5 1.0 .7 1.2 2.7 1.4 4.8 5.3 4.1 — .9 15 16 Discrepancy (1-8) 1.7 2.1 1.7 1.6 3.7 2.9 1.3 2.3 5.5 5.2 1.8 -1.3 .8 7.2 16 II. Financial flows—Summary 17 Net funds raised—nonfinan. sectors.. 52.3 35.0 46.9 58.3 62.3 47.5 59.1 59.8 72.8 54.2 62.4 67.2 77.7 65.7 17 18 Loans and short-term securities .... 18.6 15.0 16.3 15.4 18.5 -7.5 21.5 18.1 28.8 5.0 22.1 26.0 27.3 15.3 18 19 Long-term securities and mtgs 33.7 20.0 30.7 42.9 43.8 53.2 37.6 41.7 44.1 49.2 40.3 41.2 50.4 50.5 19 By sector 20 U.S. Government 8.9 -2.0 7.6 7.5 4.8 — 3.1 6.4 10.8 11.5 -5.1 1.9 10.9 6.3 7.7 20 5.2 3.1 8.8 .5 1.4 -20.6 4.3 6.5 9.0 -10.5 .4 9.1 -.2 .8 21 22 Other securities 4.3 -5.6 -1.4 6.8 3.8 18 4 .9 4.0 3.3 6.4 1.7 2.7 6.1 6.3 22 23 CCC guaranteed loans -.6 .5 .2 .2 -.4 — .9 1.2 .3 — .7 -1.0 -.2 -1.0 .4 .6 23 .9 2.0 2.8 2.3 3.4 — .3 3.4 3.7 5.0 1.4 3.3 4.0 3.9 2.7 24 25 Loans .2 1.4 2.0 1.2 2.3 _ 7 1.7 1.6 3.1 1.0 3.5 4.1 3.1 2.7 25 .8 .6 .8 1.0 1.0 .4 1.7 2.1 1.8 .5 — .2 -.1 .8 * 26 42.5 35.0 36.6 48.6 54.2 49.1 49.3 45.2 56.3 57.9 57.2 52.3 67.5 55.4 27 28 Loans 13.8 10.0 5.3 13.5 15.2 14 7 14.3 9.7 17.4 15.5 18.4 13.7 24.0 11.2 28 6.4 4.5 1.7 5.5 6.7 5 1 5.4 6.3 6.9 7.1 6.5 6.5 7.2 7.3 29 5.4 2.9 2.2 5.1 5.9 5.6 6.1 .8 7.0 5.8 9.9 4.7 9.8 2.4 30 31 Other loans . 2.1 2.6 1.4 2.9 2.6 4 0 1 8 2.5 3.5 2 6 2 0 2.6 7.0 ; 5 31 32 Securities and mortgages 28.6 25.0 31.3 35.1 38.9 34.4 35.0 35.6 39.0 42.4 38.9 38.6 43.5 44.1 32 33 State and local obligations 4.5 3.6 4.9 5.0 6.7 4.3 3.3 5.6 7.0 7.5 6.6 4.2 5.9 7.5 33 34 Corporate securities 5.3 5.3 7.3 5.3 3.4 4.6 4.1 5.0 2.8 4.2 1.7 6.5 6.9 5.1 34 13.0 10.5 11.4 13.0 15.1 13.4 13.5 13.5 15.8 16.3 15.1 15.3 16.5 16.9 35 36 Other mortgages . ... 5.9 5.6 7.7 11.9 13.6 12 1 14 1 11.4 13.4 14 3 15 4 12.5 14.3 14 7 36 37 Net sources of credit (— 17) 52.3 35.0 46.9 58.3 62.3 45.7 59.1 59.8 72.8 54.2 62.4 67.2 77.7 65.7 37 38 Chg. in U.S. Govt. cash balance.. .7 .9 * 1.3 -.4 -5.5 3.9 4.6 3.0 -7.6 -1.7 8.1 -.8 -4.1 38 39 US Govt lending 3 3 . . 8 5 2 3 . .2 3 22..08 2 3 . . 9 5 2 2. . 5 7 1 .7 6 2 3 . . 3 2 3. . 3 2 2 7 . .1 5 - 3 .4 .6 4 * 5 2 2. . 5 8 2 5 . . 6 1 2 3 .6 6 4 3 0 9 41 Pvt. insur. & pension reserves.... 8.8 8.2 8.7 9.0 10.2 8.1 8.8 8.7 10.5 11.3 10.5 11.0 11.3 10.0 41 42 Sources n.e.c 3.3 4.0 3.7 2.6 4.0 4.1 2.2 7.2 2.2 5.6 .8 3.4 3.6 8.4 42 43 Pvt. domestic nonfin. sectors 32.2 16.5 29.7 39.0 43.3 36.7 38.8 35.8 47.6 41.6 48.3 39.4 55.9 45.3 43 44 Liquid assets 16.4 9.2 24.7 31.2 36.2 22.1 34.6 33.7 41.8 29.3 39.8 31.5 35.3 27.6 44 45 Deposits 10.8 13.8 24.2 29.8 33.0 26 8 34.2 29.7 36.1 28.4 37.9 27.9 36.3 33.3 45 46 Demand dep. and currency .2 -1.3 4.1 1.8 5.0 2.0 5.4 -2.3 10.8 2.4 8.9 .3 9.3 5.2 46 47 Time and svgs. accounts... 10.6 15.0 20.1 28.0 28.1 24.8 28.8 32.0 25.3 26.0 28.9 27.6 27.0 28.1 47 48 At commercial banks.... 2.1 5.4 9.0 15.0 13.1 11.4 14.0 15.3 10.6 13.0 13.6 12.9 11.5 12.0 48 49 At saving? instit ........ 8.4 9.6 11.1 12.9 14.9 13 3 14.8 16.8 14.7 13.0 15.4 14.8 15.5 16 1 49 50 Short-term U.S. Govt. sec.. 5.6 -4.6 .5 1.4 3.2 -4.6 A 4.0 5.7 1.0 1.9 3.5 -1.0 -5.7 50 51 Other U.S. Govt. securities 7.5 -.5 -1.3 .6 1.9 5.6 -1.6 -1.5 2.1 5.8 1.3 1.2 4.5 6.0 51 52 Pvt. credit mkt. instruments.. . 8.4 7.5 7.6 7.0 7.2 10.3 7.2 5.4 6.6 8.3 8.6 6.6 16.7 10.8 52 53 Less security debt .2 T 1.3 2.0 1.5 1.4 1.8 2.9 1.8 1.4 i .6 -.9 53 III. Direct lending in credit markets 54 Total funds raised 52.3 35.0 46.9 58.3 62.3 45.7 59.1 59.8 72.9 54.2 62.4 67.2 77.7 65.7 54 55 Less change in U.S. Govt. cash.... .7 .9 1.3 -.4 -5.5 3.9 4.6 3.0 -7.6 -1.7 8.1 -.8 -4.1 55 56 Total net of US Govt cash 51.6 34.2 46.9 57.0 62.7 51.2 55.2 55.2 69.9 61.8 64.1 59.0 78.5 69.9 56 57 Funds supplied directly to cr. mkts... 51.6 34.2 46.9 57.0 62.7 51.2 55.2 55.2 69.9 61.8 64.1 59.0 78.5 69.9 57 58 Monetary authorities .5 .8 1.5 1.9 2.6 1.2 1.6 4.1 2.6 1.0 2.6 5.5 1.4 2.1 58 59 Total .3 .7 1.5 2.0 2.9 .6 2.3 5.3 2.2 1.9 2.1 5.1 2.1 2 5 59 60 Less change in U.S. Govt. cash. -.1 * .1 .3 -.6 .6 1.1 -.4 .9 -.5 -.4 .7 .4 60 3.7 8.0 15.5 18.1 19.7 16.2 20.6 15.6 22.5 18.4 22.1 11.7 23.8 18.7 61 62 Total 4.6 9.0 15.7 19.5 19.3 11.4 24.0 19.1 26.0 10.1 21.8 21.0 22.8 14.7 62 63 Less chg. in U.S. Govt. cash... .8 .9 * 1.3 -.7 -4.9 3.3 3.5 3.4 -8.5 -1.2 8.5 -1.5 -4.5 63 64 Security issues .1 .1 .1 .3 .1 .1 * .1 .1 .9 .9 .5 .6 64 .2 65 Nonbank finance net 18.9 19.2 23.1 26.8 22.3 24.7 28.3 25.6 27.8 25.3 28.0 26.5 33 4 65 66 Total ,, 23.3 21.5 2231..40 27.8 33.6 29.1 30.4 28.9 36.3 38.6 30.6 30.6 37.3 34.3 66 67 Less credit raised 4.4 2.4 2.4 4.7 6.9 6.8 5.7 .6 10.6 10.9 5.3 2.6 10.7 .8 67 68 U.S. Government 3.8 2.3 2.8 3.5 2.7 1.6 3.2 .2 2.5 3.6 4.5 2.8 5.1 2.6 68 69 Foreign 3.4 1.2 .7 1.3 .8 * .5 1.1 5.1 -2.2 -.7 -.4 2.3 1.2 69 21.4 2.7 5.5 9.2 10.3 9.9 4.7 6.1 11.5 13.2 10.4 11.5 19.6 12.0 70 12.6 1.0 4.1 4.2 7.2 4.1 5.0 2.9 5.9 9.4 10.8 3.8 13.6 7.6 71 6.0 -1.9 .2 2.3 2.1 3.5 1.9 1.1 4.6 1.3 1.5 2.3 2.7 5 72 73 St. and local govts 3.1 3.3 2.5 2.6 2.9 3.7 3.9 3.9 4.3 — .5 5.3 4.0 3 0 73 .2 -.3 1.3 -.2 2.0 1.5 1.4 1.8 2.9 1.8 1.4 -.1 .6 -.9 74 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Jan. 1965 BULL., p. 179. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 FLOW OF FUNDS 489 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1962 1963 1964 Transa o c r t io se n c t c o a r tegory, 1959 1960 1961 1962 1963 m IV I II in IV I II III I. Demand deposits and currency 1 Net incr. in banking system liability •. 1.1 * 5.4 4.4 5.0 -4.1 11.4 2.2 14.4 -4.2 7.6 9.9 8.5 2.1 1 2 U.S. Govt. deposits .7 .9 1.3 —5.5 3.9 4.6 3.0 —7.6 -1.7 8.1 -.8 —4.1 2 3 Other .4 — .8 5.3 3.1 5.5 1.4 7.5 -2.4 11.5 3.4 9.4 1.8 9.4 6.2 3 .4 -.7 5.1 3.0 5.2 2.6 7.4 -2.8 10.8 3.1 9.6 .2 10.0 4.7 4 1.6 -.9 1.1 .8 3.9 6.9 -1.4 1.1 7.4 3.2 4.0 5.1 -1.2 6.6 5 6 Nonfinancial business -2.5 -1.0 1.7 .8 —2.4 -.3 2.9 -2.6 -2.0 -1.6 -3.6 -5.3 8.1 -2.1 6 7 State and local govts .1 — 1.1 .3 .9 3.2 -2.9 4.2 — .2 3.6 2.3 7.2 1.4 .8 1.9 7 8 Financial sectors .. .2 .5 1.1 1.1 .3 .6 1.9 — .5 * .8 .7 -.1 .7 — .5 8 9 Mail float 1.0 1.7 1.0 -.6 .3 -1.6 -.3 -.6 1.8 -1.5 1.4 -.9 1.7 -1.2 9 10 Rest of the world * — .1 .2 .1 .3 — 1.2 .1 4 .6 .3 — .3 1.6 -.6 1 5 10 II. Time and savings accounts 11 Net increase—Total 9.5 15.3 20.7 28.7 29.2 24.6 30.6 34.1 26.0 26.6 29.9 29.3 28.4 28.9 11 1.1 5.8 9.4 15.6 14.1 11.4 15.6 16.6 11.6 13.7 14.4 13.9 12.8 12.9 12 13 Corporate business .. . .. -.4 .8 1.3 2.6 3.8 .9 2.5 3.6 2.2 3.6 5.9 5.9 2.9 4.5 13 -.4 1.4 .9 1.0 1.6 .9 .5 2.9 .3 1.5 1.9 .4 .8 2.4 14 -.9 .3 .3 .6 1.0 .1 1.6 1.4 .9 .8 .8 1.0 1.3 1.0 15 16 Households 3.0 3.3 6.8 11.5 7.6 9.7 11.0 8.8 8.1 7.9 5.7 6.5 7.9 5.1 16 17 At savings institutions 8.4 9.5 11.3 13.1 15.1 13.2 15.1 17.5 14.4 12.9 15.5 15.4 15.6 16.0 17 18 Memo: Households total 11.4 12.8 17.9 24.4 22.6 23.0 25.8 25.6 22.8 20.8 21.1 21.3 23.3 21.2 18 III. U.S. Govt. securities 19 Total net issues 9.5 -2.5 7.3 7.3 5.2 -2.2 5.2 10.5 12.3 -4.1 2.1 11.9 5.9 7.1 19 20 Short-term marketable 5.2 3.1 8.8 .5 1.4 -20.6 4.3 6.5 9.0 -10.5 .4 9.1 -.2 .8 20 21 Other 4.3 —5.6 -1.4 6.8 3.8 18.4 .9 4.0 3.3 6.4 1.7 2.7 6.1 6.3 21 22 Net acquisitions, by sector 9.5 -2.5 7.3 7.3 5.2 -2.2 5.2 10.5 12.3 -4.1 2.1 11.9 6.0 7.1 22 23 Monetary authorities .3 .7 1.5 1.9 2.8 .8 2.0 5.4 2.4 1.8 1.6 5.4 2.1 2.6 23 24 Short-term . . — .8 -1.0 -1.1 2.0 4.9 3.3 2.9 13.5 7.8 .4 — 1.9 5.0 -2.8 6.5 24 25 Commercial banks -7.8 1.7 5.4 .8 -2.5 -6.9 1.7 4.0 -.1 -13.5 -.6 1.3 -2.9 -1.8 25 -3.7 7.0 9.3 -5.2 -3.6 —22.0 -2.3 -5.2 -3.3 -10.2 4.5 2.3 2.0 -2.4 26 27 Other direct —3.6 -5.2 -4.1 5.2 .5 14.2 2.7 10.2 2.0 -4.0 -6.2 .7 -5.9 -.4 27 28 Nonguaranteed — .5 -.1 .3 .8 .5 .8 1.3 -1.1 1.3 .7 1.1 -1.7 1.1 .9 28 .8 — .3 .8 1.3 -.7 2.6 1.8 -2.5 -1.2 3.2 -2.2 2.0 2.2 3.1 29 30 Short-term direct . ... .2 1.2 1.6 .7 -1.3 .8 2.1 -4.1 -1.3 2.1 -1.8 .4 2.3 .2 30 31 Other direct .2 -1.7 — .8 .5 .5 1.2 * 1.8 * .6 -.6 1.6 4 2.5 31 32 Noncuaranteed .4 .2 .1 .1 .2 .5 — .3 — 2 .1 .6 .2 .1 .3 3 32 33 Foreign 3.0 .5 .4 1.2 .6 .4 .8 1.2 3.4 -2.4 .1 -1.5 .9 3.0 33 34 Short-term 2.1 .2 -.7 2.0 -.7 2.5 1.4 -.3 1.2 -2.6 -1.1 -1.2 .2 3.0 34 35 Pvt. domestic nonfin. sectors 13.2 -5.1 -.8 2.0 5.1 1.0 -1.2 2.5 7.8 6.8 3.2 4.7 3.6 .2 35 36 Short-term direct 7.4 -4.3 -.3 1.0 2.0 -5.2 .2 2.6 4.6 -.1 .7 2.7 -1.9 -6.6 36 37 Other direct 5.3 -.4 -1.6 * 1.0 4.8 -1.6 .7 * 4.2 -.8 1.9 2.9 6.7 37 2.2 -.1 .3 .6 .9 .8 * -2.2 2.1 1.5 2.1 -.6 1.6 -.7 38 39 Savings bonds Households .. -1.8 — .3 .8 .4 1.2 .6 .2 1.4 1.1 1.1 1.2 .8 .9 .8 39 IV. Other securities 40 Total net issues, by sector 11.7 11.1 13.7 11.7 13.0 9.5 9.8 13.2 13.6 14.0 11.4 13.2 16.5 14.6 40 41 State and local govts 4.5 3.6 4.9 5.0 6.7 4.3 3.3 5.6 7.0 7.5 6.6 4.2 5.9 7.5 41 42 Nonfinancial corporations 5.3 5.3 7.3 5.3 3.4 4.6 4.1 5.0 2.8 4.2 1.7 6.5 6.9 5.1 42 43 Commercial banks .1 .1 .2 .1 .3 .1 * .1 .1 .9 .9 .5 .6 43 44 Finance companies 1.1 1.5 .5 .3 1.6 .2 .7 .4 1.9 1.7 2.4 1.7 2.4 1.5 44 45 Rest of the world .8 .6 .8 1.0 1.0 .4 1.7 2.1 1.8 .5 -.2 -.1 .8 • 45 11.7 11.1 13.7 11.7 13.0 9.5 9.8 13.2 13.6 14.0 11.4 13.2 16.5 14.6 46 47 Households 3.2 2.2 2.4 -.6 — .5 1.2 — 1.4 *r -3.4 1.0 .9 -.1 6.0 1.9 47 48 State and local govts 1.0 2.1 1.8 1.2 1.3 1.3 1.5 1.8 1.5 1.0 1.0 1.0 1.5 1.2 48 49 Commercial banks .3 .4 2.6 4.4 5.2 3.5 3.8 5.6 5.8 6.1 3.3 4.7 .8 5.8 49 50 Insurance and pension funds 7.2 7.1 8.0 7.5 7.7 5.7 7.4 7.5 8.4 7.7 7.1 8.9 8.7 8.4 50 51 Finance n.e c — .9 — .9 -1.3 -.7 -.7 -2.3 — 1.4 -1.3 1.1 -2.0 -.7 -1.3 -.5 —2.2 51 52 Security brokers and dealers . • — .2 — .4 — .7 * 2 — .5 — .9 — 1.1 1.0 -1.1 .2 -1.0 .6 —2 0 52 53 Investment cos.—Net — .7 — .5 — .6 Q -.5 -1.7 -.5 -.2 .1 -.9 -1.0 -.3 -1.1 — .2 53 54 Portfolio purchases . .. 1.2 1.0 1.4 1.1 .8 — .1 .5 .4 .9 .9 .9 .1 .6 1.6 54 55 Net issues of own shares.... 1.8 1.5 2.0 1.9 1.3 1.6 1.0 .6 .8 1.8 1.8 .4 1.6 1.9 55 56 Rest of the world .4 .3 .2 .1 .2 -.2 * * .5 .1 .2 -.2 .1 -.4 56 V. Mortgages 57 Total net lending 19.1 16.0 19.5 25.3 29.3 25.9 28.2 25.4 29.7 31.2 31.0 27.6 30.3 31.2 57 58 1- to 4-family 13.2 10.4 11.8 13.4 15.7 13.8 14.1 14.0 16.4 16.9 15.6 15.1 16.1 16.6 58 59 In process . .1 — .1 .4 .4 .5 .3 .6 .5 .6 .5 .5 -.3 -.4 — .4 59 60 Disbursed 13.0 10.5 11.4 13.0 15.2 13.4 13.5 13.5 15.8 16.3 15.1 15.3 16.5 16.9 60 61 Other 5.9 5.6 7.7 11.9 13.6 12.1 14.1 11.4 13.4 14.3 15.4 12.5 14.3 14.7 61 19.1 16.0 19.5 25.3 29.3 25.9 28.2 25.4 29.7 31.2 31.0 27.6 30.3 31.2 62 1.8 2.1 2.4 4.0 4.3 4.1 5.6 3.5 4.5 4.3 4.9 3.8 4.0 5.3 63 64 U S Government 2.2 1.2 .6 -1.0 * -.3 -1.3 -1.9 -.4 -.4 .3 .8 .1 64 65 Commercial banks • 2.5 .7 1.6 4^0 4.9 4.5 4.4 4.2 5.6 5.2 4.5 4.5 4.6 4.7 65 66 Savings institutions 9.6 8.9 11.0 13.2 16.0 13.4 13.9 15.3 16.4 16.5 16.0 14.6 14.8 15.4 66 2.4 2.9 2.7 3.0 3.9 3.0 4.2 3.2 3.7 4.1 4.4 4.2 4.5 5.1 67 68 Mortgage companies .1 * .6 .5 .8 .6 .2 .2 1.1 1.1 1.0 -.2 1.2 .2 68 VI. Bank loans n.e.c. 69 Total net borrowing 7.2 2.8 3.0 6.5 8.1 6.1 7.8 1.9 9.0 8.5 13.1 6.7 13.9 2.4 69 70 Nonfinancial business..... .. 5.1 2.7 1.7 4.6 5.6 5.0 5.3 .2 6.6 5.7 10.0 4.7 9.7 2.2 70 71 Nonbank finance 1.6 -.3 .1 1.0 1.7 .4 2.0 1.3 1.3 2.1 1.9 2 3.6 — 1.4 71 72 Rest of the world .2 .1 .7 .4 .6 * -.3 -.1 .6 .7 1.4 2.2 .6 1.2 72 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Jan. 1965 BULL., p. 179. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 BANK RESERVES AND RELATED ITEMS, 1964 MARCH 1965 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t l a d l qu R i e r - ed Excess B F r i o a . n a n w g R t k s - . s s F e r r r e v e - e e s T h o e t ld al qu R i e r - ed Excess B F r i o n . a a w g n R t s k - . s s F e r r r e v e - e e s T h o e t l a d l qu R i e r - ed Excess B F r i o . a n a n w g R t k s - . s s F e r r r e v e - e e s Jan '20,673 20,242 '431 256 '175 3,906 '3,892 '-22 1,048 '1,043 -22 Feb '•20,146 19,753 '393 304 '89 ,797 3,757 -7 1,014 1,016 -89 Mar 20,213 19,855 '358 259 '99 ,803 '3,797 '-16 1,026 1,022 -86 Apr '20,277 19,897 '380 213 '167 ,787 '3,772 '-1 1,021 '1,014 -14 May '20,220 19,883 '337 255 '82 ,833 3,832 '-25 1,044 '1,041 '-2 June 20,558 20,168 '390 270 '120 ,984 3,945 1,033 1,033 '-13 July '20,665 '20,265 '400 265 '135 ,943 '3,920 '-17 1,039 ,036 3 -19 Aug '20,566 '20,149 '417 334 '83 ,876 3,858 '-21 1,039 1,033 '6 '-7 Sept '20,928 '20,508 '420 331 '89 ,983 3,954 -16 1,061 rl,060 '1 '-33 Oct '21,033 '20,618 '415 309 '106 ,962 3,942 -34 1,058 rl,O55 3 -26 Nov '21,159 '20,763 396 430 •JA 3,893 3,882 -86 1,076 1,072 '4 '-16 '21,609 '21,198 411 243 168 4,083 4,062 '-14 1,083 1,086 '-3 '-31 Dec Week ending— 21,001 20,527 474 317 157 4,046 4,004 42 -11 1,080 1,080 -24 1963—Dec. 25.. 1964—Jan. 1. . '21,457 20,663 '794 558 '236 4,228 4,073 155 1,094 1,090 4 8.. '21,169'20,701 '468 364 '104 4,068 4,072 -4 -49 1,100 1,091 9 -19 15.. 20,905 20,305 600 361 239 3,909 3,864 C44 -34 1,047 1,043 4 -37 2 2 2 9 . . . . 2 2 0 0 , , 4 2 6 0 3 0 2 1 0 9 , , 1 8 7 2 4 7 2 3 8 7 9 3 1 1 6 7 4 7 1 1 2 9 5 6 '3 3 , , 8 79 4 1 2 3 3 , , 8 7 3 8 7 0 1 4 1 c - - 1 1 0 0 1 1 , , 0 0 2 1 7 2 1 1, , 0 0 0 3 7 2 -5 -3 -3 3 Feb. 5. . 20,220 19,854 366 24: 124 3,834 3,820 -10 1,028 1,021 6 46 -40 12.. 20,178 19,776 402 367 35 3,762 3,744 18 -71 1,003 1,011 -8 117 -124 19.. 20,171 19,751 420 291 129 3,762 3,742 20 16 1,031 1,018 13 132 -119 26.. 20,036 19,683 353 200 153 3,733 3,734 -1 -36 1,011 1,011 60 Mar. 4.. 20,183 19,693 490 36: 128 3,836 3,766 70 5 1,030 1,020 30 -20 11.. 19,978 19,664 314 253 61 3,718 3,707 11 -2: 999 999 70 -69 18.. 20,213 19,838 375 358 17 3,801 3,804 -2 -34 1,020 1,019 113 -112 25.. 20,510 20,002 508 279 229 3,866 3,837 28 20 1,037 1,033 177 -172 Apr. 1. . 20,309 20,037 27: 155 117 3,900 3,871 29 27 1,050 1,037 32 -19 8. . 20,350 19,928 422 208 214 3,814 3,812 1 1 1,017 1,015 59 15. . 20,368 20,069 299 190 109 3,822 3,801 21 11 1,014 1,013 1 1 22. . 20,323 19,882 441 319 12: 3,736 3,727 9 -49 1,017 1,016 1 28 27 29.. 19,966 19,698 268 135 133 3,736 3,721 15 15 1,013 1,014 -1 c_2 May 6. . 20,277 19,988 289 211 78 3,910 3,890 20 l: 1,056 1,051 '20,305 19,892 '413 314 '99 3,805 3,783 22 1,036 1,036 -9 20*.! 20,304 19,896 408 298 110 3,824 3,825 -48 1,056 1,047 27.. 20,114 19,783 331 208 123 3,846 3,818 28 1 1,038 1,035 June 3.. 20,194 19,899 295 264 31 3,881 3,87 4 -76 1,027 1,028 -10 10.. 20,186 19,857 329 289 40 3,84" 3,824 23 1,006 1,006 -20 17.. 20,616 20,161 '455 327 '128 3,966 3,954 12 -46 1,033 1,033 -20 24.. 20,727 20,376 351 232 119 4,038 4,002 35 no 1,053 1,048 2 July 1 . . 20,845 20,443 402 221 181 4,075 4,046 29 6 1,054 1,059 -27 8.. 20,805 20,514 291 263 28 4,01" 4,007 -86 1,056 1,050 C3 15.. 20,994 20,42f 572 460 112 3,969 3,921 48 -16 1,041 1,039 -66 22. . 29,429 20,151 278 159 11 3,905 3,883 2: 22 1,043 1,036 1 29.. 20,325 19,957 368 179 189 3,862 3,846 16 18 1,022 1,020 -4 Aug. 5. . 20,560 20,209 341 260 91 3,931 3,934 14 1,037 1,036 -5 12.. 20,597 20,123 47' 376 98 3,850 3,833 1,028 1,029 -21 19. . 20,583 20,19r 391 278 11 3,""" 3,875 49 -39 1,033 1,037 -13 26.. 20,611 20,140 471 329 142 3,851 3,839 56 -43 1,035 1,035 -14 Sept. 2. . '20,531 20,13! '398 315 '83 3,882 3,841 56 1,038 1,033 -2 9.. 20,67r 20,18: 49' 478 1 3,831 3,823 30 22 1,038 1,033 -45 16.. 20,739'20,37: '367 225 '142 3,924 3,894 21 8 1,04: 1,043 -5 23.. 21,256 20,77: 48 409 72 4,041 4,036 137 -132 1,08' 1,085 -35 30.. 21,140 20,75: 388 278 110 4,143 4,073 65 1,088 1,084 -38 Oct. 7.. 21,259 20,826 433 370 63 4,095 4,089 -47 1,070 1,070 -1 -69 14.. 20,985 20,575 410 239 17 3,948 3,898 50 g 1,047 1,042 6 -28 21.. '21,001 20,574 '42' 380 '4' 3,905 3,898 -80 1,05 1,057 -14 28., '20,769 20,465 '304 230 '74 3,88r 3,872 8 1,052 1,048 -6 Nov. 4.. 21,210'20,769 '44 47( '-35 4,02 3,98( 32 220 -188 1,083 1,081 11.. 21,015 20,646 369 427 -58 3,829 3,82 73 *-69 1,065 1,059 18., 21,315 20,724 59 590 3,862 3,83' 131 -106 1,070 1,070 -44 25., 21,059 20,801 258 159 99 3,904 3,879 25 10 15 1,083 1,078 5 Dec. 2., 21,376 20,98' 389 375 14 3,972 3,969 21 1, 1,081 32 9. '21,142 20,852 '290 122 '168 3,925 3,907 1 1,060 1,059 -3 16. 21,387 20,999 388 134 254 4,03 4,017 12 1,065 1,065 -1 23., 21,84' '21,444 '397 257 '140 4,15' 4,145 31 1,097 1,104 -50 30., '21,99 '21,429 '562 504 '5! 4,195 4,14" 10 1,112 1,108 c-73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 BANK RESERVES AND RELATED ITEMS, 1964 491 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow- Reserves Borrowings at Free ings at Free F. R. reserves F. R. reserves T h o e t l a d l Required Excess Banks T h o e t ld al Required Excess Banks Jan '8,348 '8,324 '24 137 '-113 '7,371 '6,983 '388 56 '332 Feb '"8,121 '8,103 '18 106 '-88 '7,214 '6,877 '337 64 '273 Mar '8,211 '8,171 '40 90 '-50 '7,177 '6,865 312 57 255 Apr '8,235 8,204 '31 108 '-77 '7,234 '6,907 '327 68 '259 May '8,182 '8,150 32 144 -112 '7,161 '6,860 '301 80 '221 June 8,318 8,290 '28 142 114 '7,224 '6,900 '324 76 '248 July '8,386 8,341 '45 147 102 '7,297 6,968 '329 56 '273 Aug '8,349 '8,312 '37 191 •154 '7,302 '6,946 '356 91 '265 Sept 8,480 '8,441 '39 179 140 '7,404 '7,053 '351 73 '278 Oct '8,530 '8,483 '47 163 116 7,483 '7,138 '345 63 '282 Nov '8,612 '8,565 '47 225 178 7,578 7,244 334 88 246 '8,735 '8,713 '22 125 103 '7,707 '7,337 '370 55 '315 Dec Week ending— 8,488 8,463 24 161 -137 7,388 6,979 408 79 330 1963—Dec. 25... 8,636 8,478 158 384 -226 7,500 7,023 477 56 421 1964—Jan. 1 8,540 8,498 42 217 -175 7,461 '7,041 '421 74 '347 8 8,416 8,376 40 193 -153 7,533 7,022 '512 48 463 15 8,337 8,319 18 77 -59 7,257 6,986 271 44 227 22 8,163 8,133 30 93 -63 7,234 6,907 327 55 272 29 Feb. 5 8,146 8,133 14 95 -81 7,213 6,879 333 77 256 12 8,157 8,111 46 102 -56 7,255 6,911 345 59 286 19 8,140 8,102 38 83 -46 7,238 6,888 350 72 278 26 8,107 8,085 22 66 -44 7,185 6,853 332 39 293 Mar. 4 8,139 8,084 55 184 -129 7,178 6,823 355 83 '272 11 8,142 8,113 29 96 -67 7,118 6,844 274 54 220 18 8,179 8,155 25 145 -120 7,212 6,860 352 68 284 25 8,256 8,224 32 65 -33 7,352 6,909 443 29 414 Apr. 1 8,286 8,251 35 49 -15 7,073 6,878 195 72 123 8 8,261 8,230 31 92 -61 7,258 6,870 388 57 331 15 8,334 8,312 22 105 -83 7,198 6,943 255 74 181 22 8,214 8,196 19 176 -157 7,356 6,943 412 57 355 29 8,107 8,083 24 54 -30 7,109 6,879 230 79 151 May 6 8,215 8,186 29 118 7,095 6,860 235 80 155 13 8,198 8,164 34 197 -163 '7,266 6,908 '358 95 '263 20 8,173 8,144 29 188 -159 7,252 6,880 371 63 308 27 8,137 8,105 32 104 -73 7,094 6,825 269 90 179 June 3 8,184 8,173 11 102 -91 7,101 6,821 280 73 207 10 8,218 8,188 30 134 -104 7,115 6,839 276 119 156 17 8,303 8,283 19 170 -151 7,314 6,891 423 79 344 24 8,420 8,361 59 147 -87 7,216 6,965 252 57 July 1 8,413 8,394 19 134 -115 7,303 6,944 359 41 318 8 8,480 8,454 26 112 -85 7,257 7,003 254 56 198 15 8,471 8,437 34 276 -242 7,514 7,025 488 52 436 22 8,341 8,279 62 106 -43 7,141 6,954 187 48 139 29 8,215 8,192 23 95 -72 7,226 6,899 327 59 268 Aug. 5 8,350 8,316 33 151 -118 7,242 6,924 318 89 229 12 8,340 8,301 39 246 -207 7,379 6,960 420 107 313 19 8,347 8,315 31 145 -114 7,318 6,965 353 74 279 26 8,353 8,321 32 187 -155 7,371 6,944 427 72 355 Sept. 2 8,389 8,322 67 144 -77 '7,222 6,937 '285 108 '177 9 8,406 8,351 55 292 -237 7,405 6,976 429 97 332 16 8,455 8,399 56 124 -68 7,318 '7,037 '281 74 '207 23 8,554 8,527 27 190 -163 7,574 7,127 447 45 402 30 8,555 8,497 58 158 -100 7,353 7,098 256 72 184 Oct. 7 8,581 8,554 27 189 -162 7,513 7,113 401 60 341 14 8,567 8,484 83 91 -8 7,424 7,152 272 56 216 21 8,471 8,464 7 228 -221 '7,571 7,155 '416 54 '362 28 8,443 8,419 23 146 -123 '7,394 7,125 '269 73 '196 Nov. 4 8,585 8,543 41 163 -122 7,521 7,155 366 80 286 11 8,570 8,536 34 262 -228 7,551 7,227 324 92 232 18 8,601 8,556 46 312 -266 7,782 7,261 521 103 418 25 8,624 8,576 48 73 -25 7,448 7,268 180 76 104 Dec. 2 8,651 8,643 240 -232 7,671 7,293 378 79 299 9 '8,633 8,591 '42 60 '11 7,525 7,295 229 55 174 16 8,657 8,621 36 81 -45 7,634 7,295 339 40 298 23 8,853 8,815 37 118 -81 7,734 '7,380 '354 58 '296 30 8,838 8,799 39 258 -219 '7,846 '7,375 '471 69 '403 NOTE.—Averages of daily figures. Required reserves: Based on deposits as of opening of business each Total reserves held: Based on closing figures for balances with F.R. day. Banks and opening figures for allowable cash. Borrowings at F.R. Banks: Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments. 494 Gold production 495 Net gold purchases and gold stock of the United States. , 496 Estimated foreign gold reserves and dollar holdings. 497 International capital transactions of the United States. 498 Money rates in foreign countries. 507 Arbitrage in Treasury bills. 508 Foreign exchange rates 509 U.S. balance of payments 510 Foreign trade 511 Guide to tabular presentation. 428 Index to statistical tables 517 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 the end of the BULLETIN). ory regulations thereunder. Other data are com- 493 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 GOLD RESERVES MARCH 1965 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti- Intl. Esti- E pe n r d i o o d f m to a t t a e l d M ta o r n y e- U St n a i t t e e s d r m es a t t e o d f A i f s g t h a a n n- 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 Burma Canada Chile world1 Fund world 1958 39,445 1,332 20,582 17,530 n.a 60 162 194 1.270 325 1,078 40 1959 40,195 2,407 19,507 18,280 n.a. 56 154 292 1,134 327 960 43 I960 40,540 2,439 17,804 20,295 n.a. 104 147 293 1,170 287 885 45 1961 41,140 2,077 16,947 22,115 36 190 162 303 1,248 285 946 48 1962 r41,470 2,194 16,057 r23,220 36 61 190 454 1,365 225 42 708 43 1963 '42,310 2,312 15,596 '24,400 36 78 208 536 1,371 150 42 817 43 1964 Jan 2,314 15,540 36 78 210 547 [,373 150 42 837 44 Feb 2,322 15,518 36 78 211 558 1,374 150 42 850 43 Mar 42,420 2,328 15,550 24 ,'540* 36 76 211 569 1,376 150 42 871 43 Apr .. 2,334 15,727 36 76 215 579 1,390 120 42 892 43 May 2,353 15,693 36 74 216 579 ,392 120 42 910 42 42,940 2,359 15,623 24,960 37 74 218 592 1,392 120 42 931 43 July 2,359 15,629 37 74 219 592 1,393 120 42 949 43 Aug 2,424 15,657 37 73 221 592 1,395 120 42 969 43 Sept 43,015 2,425 15,643 24,945 37 73 223 592 1,395 120 42 990 43 Oct 2,425 15,606 37 73 224 592 1,404 92 42 1,001 43 Nov . . . 2,430 15,566 37 73 224 592 1,434 92 42 1,007 43 Dec M3,O35 2,179 15,471 ^25,385 37 226 600 451 92 84 1,026 43 1965—Jan 2,181 15,208 228 600 1,461 92 85 1,036 43 Ger- E pe n r d i o o d f lo C m o b - ia m De a n rk - l F a i n n d - France m F a e n d y . , Greece India I n n e d si o a - Iran Iraq Israel Italy Japan Rep. of 1958 72 48 35 750 2,639 17 247 37 141 34 2 1,086 124 1959 71 57 38 1,290 2,637 26 247 33 140 84 2 1,749 244 I960 78 107 41 1,641 2,971 76 247 58 130 98 * 2,203 247 1961 88 107 47 2,121 3,664 87 247 43 130 84 10 2,225 287 1962 57 92 61 2,587 3,679 77 247 44 129 98 41 2,243 289 1963 62 92 61 3,175 3,843 77 247 142 98 60 2,343 289 1964—Jan 62 92 66 3,210 3,844 77 247 142 98 61 2,343 Feb 63 92 66 3,248 3,849 77 247 142 98 62 2,343 Mar 63 92 66 3 298 3 953 77 247 141 98 62 2 143 289 Apr 64 92 65 3,366 4,060 77 247 141 112 56 2,143 May 64 92 65 3,404 4,070 77 247 141 112 56 2,146 June 65 92 65 3,451 4,081 77 247 141 112 56 2,148 290 July 66 92 65 3,489 4,117 77 247 141 112 56 2,153 Aug 67 92 65 3,527 4,139 77 247 141 112 56 2,100 Sept 57 92 65 3,564 4,149 93 247 141 112 56 2,104 290 Oct 58 92 64 3,598 4,149 98 247 141 112 56 2,104 Nov 58 92 64 3,632 4,149 98 247 141 112 56 2,104 Dec 58 92 85 3 729 4 248 247 141 56 2 107 1965 Jan 92 85 3,913 4,250 270 56 2,107 E pe n r d i o o d f Kuwait a L n e o b n - M ic e o x- Mo c r o oc- N l e a t n h d e s r- Nigeria N w o a r y - P s a ta k n i- Peru P p h i i n l e ip s - Po g r a t l u- A S r a a u b d i i a A So fr u ic th a 1958 n.a. 91 143 16 J.OSO 43 49 19 10 493 211 1959 n a. 102 142 23 I 132 30 50 28 9 548 18 238 I960 n.a. 119 137 29 1,451 30 52 42 15 552 18 178 1961 43 140 112 29 1,581 20 30 53 47 27 443 65 298 1962 49 172 95 29 [,581 20 30 53 47 41 471 78 499 1963 . . . 48 172 139 29 1,601 20 31 53 57 28 497 78 630 1964 Jan 48 172 151 29 1,601 20 31 53 57 30 497 78 632 Feb 49 172 157 29 1,601 20 31 53 57 21 497 78 631 Mar 50 172 156 29 1,601 20 31 53 57 23 497 78 627 Apr 50 172 162 29 1,601 20 31 53 57 24 497 78 627 May 50 172 168 29 1,601 20 31 53 67 25 497 78 626 June • 50 172 168 34 1,601 20 31 53 67 26 497 78 607 July 48 172 172 34 1,601 20 31 53 67 28 497 78 615 Aug 46 172 170 34 1,601 20 31 53 67 29 497 78 597 Sept 46 172 170 34 1,601 20 31 53 67 30 497 78 589 Oct 45 172 169 34 1,611 20 31 53 67 31 497 78 601 Nov 45 34 1,621 20 31 53 67 32 78 592 Dec 48 I 688 20 31 53 67 23 78 574 1965—Jan 1,688 20 31 53 67 545 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 GOLD RESERVES AND PRODUCTION 495 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 it n z d er- T w a a i n - T la h n a d i- Turkey ( U E . g A y . p R t) . U K d n o i i n m t g e - d U gu r a u y - V zu e e n l e a - Y sl u a g vi o a - S I e f n t o t t r l l e . - E E P F U 3 ments 2 1958 57 204 1,925 43 112 144 174 2 808 180 719 17 —42 126 1959 68 191 1,934 41 104 133 174 2,514 180 652 10 — 134 40 1960 178 170 2,185 41 104 134 174 2,800 180 401 4 — 19 55 1961 316 180 2,560 43 104 139 174 2,268 180 401 6 115 56 1962 446 181 2,667 43 104 140 174 2,582 180 401 4 —50 56 1963 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 47 1964—Jan 573 182 2,549 51 104 115 174 171 401 14 Feb 573 182 2,551 51 104 115 174 171 401 14 -7 Mar 573 182 2,542 51 104 115 174 2,458 171 401 15 22 47 Apr 573 182 2,524 51 104 115 174 171 401 15 —82 May 573 182 2,526 54 104 115 174 171 401 15 47 575 182 2,599 54 104 115 174 2,439 171 401 15 40 28 July 577 182 2 560 55 104 115 174 171 401 16 64 576 182 2,530 55 104 105 174 171 401 16 95 Sept 576 182 2,532 55 104 105 174 2,302 171 401 16 66 28 Oct 575 182 2,532 55 104 105 174 171 401 17 71 Nov 576 182 2,532 55 104 105 174 171 401 17 79 Dec . . 616 189 2,725 55 104 104 139 2,136 171 401 — 50 1965—Jan 646 189 2,702 104 111 -111 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 for 1958 and European Fund thereafter. distributed by the Tripartite Commission for the Restitution of Monetary Gold; excludes holdings of the U.S.S.R., other Eastern European coun- NOTE.—For back figures and description of the data in this and the tries, and China Mainland. following tables on gold (except production), see "Gold," Section 14. of The figures included for the Bank for International Settlements are Supplement to Banking and Monetary Statistics, 1962. the Bank's gold assets net of gold deposit liabilities. This procedure 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 Asia Other World Period produc- Congo tion i A So fr u ic th a R de h s o ia - Ghana ( p L o e l o d - - U S n ta i t t e e s d C a a d n a - M ic e o x- r N a i g c u a a - Co b l i o a m- India P p h i i n l e ip s - t A ra u l s ia - oth A e l r l ! ville) 1958 1,050.0 618.0 19.4 29.8 12.3 61.6 158.8 11.6 7.2 13.0 6.0 14.8 38.6 58.9 1959 1,125.0 702.2 19.8 32.0 12.2 57.2 156.9 11.0 7.3 13.9 5.8 14.1 38.1 54.5 I960 1,175.0 748.4 19.6 30.8 11.1 58.8 162.0 10.5 7.0 15.2 5.6 14.4 38.0 53.6 1961 1,215.0 803.1 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37.7 53.8 1962 1,295.0 892.2 19.4 31.1 7.1 54.5 145.5 8.3 7.8 13.9 5.7 14.8 37.4 57.3 1963 1,350.0 960.1 19.8 32.2 7.5 51.4 139.0 8.3 7.2 11.4 4.8 13.2 35.8 59.3 1963—Dec 78.6 1.8 2.6 10.8 .8 .9 .4 1.2 2.8 1964—Jan 78.7 1.7 2.6 10.7 .8 1.2 .4 1.3 3.1 Feb 79.9 6 2.6 9.8 1.0 .4 1.2 2.5 Mar 84.9 1.6 2.6 21.9 10.3 .5 1.0 .5 1.3 2.6 Apr 82.3 1.6 2.6 11.6 .7 ••••••• 1.2 .4 1.2 2.6 May 83.4 1.7 2.6 10.7 .4 l.l .4 1.2 2.7 June 85.4 6 2.4 2 2^5 10.8 .3 1 .4 1.2 3.0 July 86.9 1.7 11.3 .4 1.0 .4 3.0 Aug 87.2 t.7 11.3 .7 1.0 .4 3.1 Sept 88.2 6 10.9 q "2*4!6' 2.5 Oct 11.5 2.8 Nov 11 5 Dec 2262 5 2S 3 10 8 2 3 5 1 Estimated; excludes U.S.S.R., other Eastern European countries, NOTE.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 U.S. GOLD MARCH 1965 NET GOLD PURCHASES OR SALES BY THE UNITED STATES, BY COUNTRY (In millions of dollars at $35 per fine troy ounce) 1963 1964 Area and country 1956 1957 1958 1959 1960 1961 1962 1963 1964 IV I II III IV Western Europe: Austria -84 -83 -1 -143 -82 -55 -32 -32 -23 Belgium 3 3 -329 -39 — 141 — 144 -63 -40 -40 France .. . -34 — 266 — 173 -456 -518 -405 -101 -101 -101 -101 -101 Germany Fed Rep of.... — 34 — 23 — 225 — 200 —25 Italy -349 100 200 200 Netherlands 25 -261 -30 -249 -25 -60 -60 Portugal -20 -10 Spain 31 32 — 114 — 156 — 146 — no — 32 — 2 -30 Switzerland -8 -215 20 -324 -125 102 -81 -30 -51 United Kingdom 100 -900 -350 -550 -306 -387 329 618 131 109 221 163 125 Bank for Intl. Settlements. -178 — 32 -36 -23 Other 18 8 -21 -38 -96 -53 -12 1 -7 -4 -7 14 -1 -14 Total. 80 68 -2,326 -827 -1,718 -754 - 1,105 -399 -88 7 -31 79 35 -171 Canada 15 5 190 Latin American republics: Argentina. . 115 75 67 — 50 — 90 85 — 30 — 30 Brazil — 1 -11 -2 -2 57 72 54 28 -1 28 -1 28 Colombia 28 -6 38 10 10 Mexico — 30 — 20 __4 Venezuela -200 65 Other 29 6 2 -5 -22 -17 -5 _7 g -1 -3 -3 -2 -2 Total -28 81 69 19 -100 -109 175 32 56 -3 -4 25 7 27 Asia: Japan — 30 — 157 — 15 Other * 18 -4 -28 -97 1-101 2—93 312 3 -4 5 -i -1 Total * 18 -34 -186 -113 -101 -93 12 3 -4 5 -l i All other 14 -3 -5 -38 -6 -1 -36 7 -1 2 -9 -l 1 Total foreign countries 80 172 -2,294 -998 -1,969 -970 -833 -392 -36 -15 -28 95 41 -145 Intl. Monetary Fund 4200 600 5_44 4300 150 Grand total. . 280 772 -2,294 -1,041 -1,669 -820 -833 -392 -36 -15 -28 95 41 -145 * Includes sales of $21 million to Lebanon and $48 million to Saudi 4 Proceeds from this sale invested by the IMF in U.S. Govt. securities; Arabia. upon termination of the investment 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. 5 Payment to the IMF of $344 million as increase in U.S. gold sub- 3 Includes purchases of $25 milli on from the Philippines. scription less sale by the IMF of $300 million (see also note 4). 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 To G ta o l 2 ld s T to r c e k a s i ury c h F u o o r l r d r e e i i n n g g c n y s Total T g o o t ld al Month Total Tot G a o l 2 ld s T to r c e k a s i ury h c F o u o l r d r r i e e n i n g g c n s y 3 Total T g o o t l a d l 1952 23,252 23,252 23,187 379 379 1964—Feb.... 15,865 15,518 15,462 347 18 -22 1953 22,091 22,091 22,030 -1,161 -1,161 Mar.... 15,990 15,550 15,461 440 125 32 1954 21,793 21,793 21,713 -298 -298 Apr.... 15,991 15,727 15,462 264 1 177 1955 21,753 21,753 21,690 -40 -40 May... 15,946 15,693 15,463 253 -45 -34 1956 22,058 22,058 21,949 305 305 June... 15,805 15,623 15,461 182 -141 -70 1957 22,857 22,857 22,781 799 799 July.... 15,840 15,629 15,462 211 35 6 Aug.... 15,890 15,657 15,460 233 50 28 1958 20,582 20,582 20,534 -2,275 -2,275 Sept.... 15,870 15,643 15,463 in -20 -14 1959 19,507 19,507 19,456 -1,075 4-1,075 Oct 15,702 15,606 15,461 -168 -37 1960 17,804 17,804 17,767 -1,703 -1,703 Nov.... 16,324 15,566 15,386 96 622 -40 1961 17,063 16,947 16,889 116 -741 -857 Dec... 15,903 15,471 15,388 758 -421 -95 1962 16,156 16,057 15,978 99 -907 -890 432 1963 15,808 15,596 15,513 212 -348 -461 1965—Jan 15,572 15,208 15,185 364 -331 -263 1964 15,903 15,471 15,388 432 95 -125 Feb.*.. 15,220 14,993 14,937 227 -352 -215 1 Includes gold sold to the United States by the International Mone- 4 Includes payment of $344 million increase in U.S. gold subscription ary Fund with the right of repurchase, which amounted to $800 million to the IMF. on Feb. 28, 1965. 2 Includes gold in Exch ange Stabilization Fund. NOTE.—See Table 11 on p. 505 for gold held under earmark at F.R. 3 For holdings of F.R. Banks only see pp. 438 and 440. 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

MARCH 1965 GOLD RESERVES AND DOLLAR HOLDINGS 497 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 3I, 1962 Dec. 31, 1963 Mar. 31,1964 June3(), 1964 Sept. 30,1964 Dec. 31, 1964^ U.S. Govt. Area and country Gold& U.S. Gold& bonds & notes * Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. short- Govt. short- short- Govt. short- Govt. short- Govt. short- Govt. term bonds term term bonds term bonds term bonds term bonds dollars & notes dollars Old New dollars & notes dollars & notes dollars & notes dollars & notes series series Western Europe: 783 * 901 2 3 911 3 902 3 947 3 923 3 1,542 1,791 1 1,782 * 1,832 * 1,821 * 1,887 * Denmark 159 16 253 13 14 259 289 352 428 14 Finland 134 2 160 1 176 141 167 141 174 114 212 1 3,744 3 4,653 3 6 4,709 7 5 003 7 5,093 7 5,392 7 Germany, Fed. Rep. of. 6,409 3 6,884 3 1 6,811 1 6,616 6,437 1 6,257 1 Greece 196 265 * 239 * '227 * 225 * 272 * Italy 3,627 3,146 1 1 2,927 1 3 039 3 225 1 3,728 I Netherlands 1,829 1 1,961 2 4 1,898 4 '1 824 5 1 964 4 2 055 5 155 87 164 126 131 135 131 188 131 '205 101 214 98 Portugal 632 1 688 1 689 687 721 * 754 Spain 623 1 778 2 807 2 839 2 972 2 1,009 2 Sweden 671 93 591 133 129 610 130 615 130 733 90 833 40 3,575 83 3,726 83 75 3,528 77 3,737 77 3,653 78 4,093 79 Turkey 165 136 * * 135 * 129 123 * 141 * United Kingdom 4,191 370 3,967 361 328 4,245 380 4 153 402 4,222 402 4,035 414 Other 2 481 48 369 49 46 559 49 514 48 462 49 478 49 Total 28,916 708 30,433 779 741 30,420 800'30 761 822 31 329 753 32 711 714 Canada 4,057 389 3,805 686 687 3,555 686 3,674 686 3,863 695 4,005 690 Latin American republics: 271 453 1 * 452 424 386 * 363 * Brazil 429 329 1 * 329 294 330 349 * Chile 178 186 * 181 227 224 219 * 205 231 1 1 244 1 238 1 226 1 265 Cuba 16 12 11 11 * 10 10 * Mexico 626 808 5 2 837 1 817 1 808 1 901 1 98 129 1 10 91 1 105 89 1 98 1 Peru 152 215 230 271 271 * 272 1 2 8 8 0 1 6 9 2 9 8 2 4 1 1 * 1,0 2 1 7 7 7 * 1 2 0 7 5 6 7 • 1 2 0 8 7 0 6 * 1,1 2 3 8 0 1 * * Other 336 3 424 1 1 463 2 487 2 465 2 463 2 Total 3,398 13 4,063 12 14 4,132 5 4 207 4 4 165 5 4,351 6 Asia: India 288 6 298 5 * 302 311 307 * 306 * Indonesia 72 1 '83 1 1 '81 1 '77 63 1 73 1 2,484 3 2.743 3 5 2 735 5 2 731 5 2 847 5 2,976 5 Philippines. 215 * 237 * 232 230 * 260 256 * Thailand 437 • 486 * * 513 * 529 * 546 562 * Other 1,491 40 1,687 42 41 1,892 38 1,944 42 1,994 45 2,058 43 Total '4,987 50 '5,534 51 47 r5,755 44 '5 822 48 6 017 51 6,231 49 Africa: South Africa 540 671 670 * 645 635 624 * U A R. (Egypt) 188 * 188 198 196 196 163 Other 373 10 '296 10 9 '293 10 '287 10 288 14 300 16 Total 1,101 10 '1,155 10 9 '1,161 10 '1,128 10 1,119 14 1,087 16 Other countries: 337 * 388 373 * 384 392 401 * All other 287 29 314 30 26 308 25 351 26 359 28 379 26 Total 624 29 702 30 26 681 25 735 26 751 28 780 26 Total foreign countries 3.. '43,083 1,199 '45,692 1,568 1,524 r45,704 1,570 '46,327 1,596 47,244 1,546 49,165 1,501 International and regional 4 7,349 911 6,958 1,213 1,218 7,068 1,170 '7,293 1,068 7,499 923 7,159 904 Grand total 3 '50,432 2,110 r52,650 2,781 2,742 '52,772 2,740 '53,620 2,664 54,743 2,469 56,324 2,405 1 The first column continues the series based on a 1960 survey and pean regional organizations, except the Bank for International Settlen ents subsequently reported securities transactions; the second is based on a and European Fund, which are included in "Other Western Europe." survey as of July 31, 1963, and reported securities transactions for Aug.- Dec. Data are not available to reconcile the 2 series. NOTE.—Gold and short-term dollars include reported and estimated 2 Includes, in addition to other Western European countries, unpub- official gold reserves, and official and private short-term dollar holdings lished gold reserves of certain Western European countries; gold to be (principally deposits and U.S. Treasury bills and certificates); excludes distributed by the Tripartite Commission for the Restitution of Mone- nonnegotiable, non-interest-bearing special U.S. notes held by the Intertary Gold; European Fund; and the Bank for International Settlements American Development Bank and the International Development Assn. (the figures for the gold reserves of the BIS represent the Bank's net U.S. Govt. bonds and notes are official and private holdings of U.S. gold assets). Govt. securities with an original maturity of more than 1 year; excludes 3 Excludes gold reserves of the U.S.S.R., other Eastern European nonmarketable U.S. Treasury bonds and notes held by official institutions countries, and China Mainland. of foreign countries as shown in Table 8 on p. 504. 4 Includes international organizations and Latin American and Euro- See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 INTL. CAPITAL TRANSACTIONS OF THE U.S. MARCH 1965 1. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS (Amounts outstanding; in millions of dollars) End of period G to ra ta n l d reg I i a n o n t n d l a . l 1 c F o o u r n e t i r g ie n s E W u e ro st p e e r n 2 Canada 3 A re m L pu e a b r ti i l n c ic a s n Asia Africa co O u t n h t e ri r es 1963 Dec 19,505 5,855 13,650 7,867 1,653 1,058 2,731 154 187 1964 Jan 19,265 5,838 13,427 7,602 1.621 1.137 2,741 157 169 Feb 19,241 5,945 13,296 7,531 1,568 1,107 2,756 156 178 Mar '19,151 5,900 '13,251 7,500 ,470 1,135 2,815 '156 175 Apr '18,948 5,951 '12,997 7,155 ,464 1,249 2,808 r150 171 May '19,046 5,901 '13,145 7,249 ,474 1,240 2,864 '145 173 June 19,337 5,994 13,343 '7,491 ,478 1,153 2,911 r136 174 July 19,318 5,979 13,339 '7,426 ,460 1,239 2,889 '146 179 A.ug '19,415 5,925 '13,490 '7,636 ,482 1,152 2,906 '139 175 Sept '19,518 '5,989 '13,529 '7.714 ,510 1,074 2,928 146 157 Oct • • • '19,429 5,964 '13,465 '7,517 ,561 ,175 2,904 158 150 Nov 19,802 5,954 13,848 7,824 1,611 .191 2,930 152 140 Dec? 20,221 5,873 14,348 8,268 ,524 1,238 3,021 160 137 1 Includes international organizations, and Latin American and Euro- NOTE.—Data represent short-term liabilities to the official institutions pean regional organizations, except the Bank for International Settlements of foreign countries and to official international and regional organizations, and the European Fund which are included in Western Europe. as reported by banks in the United States, and estimated foreign official 2 Includes Bank for International Settlements and European Fund. holdings of marketable U.S. Govt. securities with an original maturity 3 Data are as reported by the Canadian Dept. of Finance, adjusted to of more than one year. Data exclude nonnegotiable, non-interest-bearing exclude holdings of nonmarketable U.S. Treasury notes, foreign series. special notes held by the Inter-American Development Bank and the Data on holdings of such notes appear in Table 8. International Development Association, and also nonmarketable U.S. Treasury notes and bonds, payable in dollars and in foreign currencies. 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International <ind regional1 Foreign E pe n r d i o o d f G to ra ta n l d Total Intl. E p r u e e r a - o n - L r . e A - . Total c O i f a fi l - 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 gional2 gional 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 422 533 3,752 3,695 57 418,781 10,940 47,841 10,322 2 758 2 340 42 974 283 104 1962 25,019 5,145 4,938 34 173 19,874 11,963 7,911 10,162 3,349 2,448 3,444 319 152 1963 25,938 4,637 4,501 18 118 21,301 12,467 8,834 10,770 2,988 3,137 3,971 241 194 1964—Jan 26,122 4,668 4,537 17 115 21,454 12,217 9,237 10,752 3,100 3,171 4,012 246 172 Feb.. 26,119 4,775 4,649 17 109 21,344 12,059 9,285 10,618 3,034 3,191 4,077 238 184 Mar.. '25,904 4,731 4,603 19 108 '21,173 '12,014 9,159 10,679 2,684 3,192 4,194 '247 177 Apr.. '26,333 4,780 4,591 16 172 '21,553 '11,757 9,796 10,643 2,903 3,365 4,224 '235 184 May. '26,339 4,833 4,654 16 163 '21,506 '11,905 9,601 10,618 2,932 3,332 4,209 '230 185 June. '26,302 4,926 4,755 25 146 '21,377 12,102 '9,275 '10,662 2,743 3,313 4,245 '227 186 July. '26,866 4,910 4,748 18 144 '21.956 12,121 '9,835 '10,791 3,030 3,400 4,312 '233 190 Aug.. '27,245 4,918 4,757 18 143 '22^328 '12,312 '10,016 '11,148 3,064 3,358 4,352 '224 183 Sept.. '27,371 '5,065 4,910 17 '138 '22.306 '12,351 '9,955 '11,285 2,873 '3,290 4,438 231 189 Oct.. 28,001 5,061 4,900 18 143 '22,940 '12,300 10,640 '11,233 3,405 3,411 4,459 244 188 Nov.. 28,937 5,051 4,889 18 144 23,886 12,723 11,163 12,012 3,461 3,480 4,515 238 181 Dec.P 28,759 4,971 4,801 22 148 23,788 13,223 10,565 12,248 2,979 3,532 4,591 247 191 1965—Jan P. .. 28,696 4,983 4,810 19 154 23,713 12,588 11,125 It,987 2,972 3,588 4,697 252 217 2a. Europe Ger- End of period Total Austria Belgium m D a e r n k - l F a i n n d - France m F a e n d y . , Greece Italy N l e a t n h d e s r- Norway Po g r a t l u- Spain Sweden Rep. of I960 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 10,162 329 177 67 73 1,157 2,730 119 1,384 248 125 161 177 490 1963 10,770 365 420 161 99 1,478 3,041 188 803 360 133 191 205 409 1964—Jan 10,752 360 440 176 93 1,487 2,999 177 685 319 107 199 206 421 Feb 10,618 322 431 157 108 1,467 3,157 167 536 289 96 200 217 431 Mar 10,679 342 406 167 110 1,411 2,858 162 784 297 104 192 234 428 Apr 10,643 297 437 191 111 1.406 2,386 156 849 254 117 189 218 415 May.... 10,618 341 439 195 112 i ;5i8 2,303 148 866 264 159 193 241 420 June '10,662 310 440 197 102 1,552 2,535 '150 891 '223 157 190 264 433 July '10,791 327 396 213 105 1,558 2,360 '146 928 '310 167 216 296 451 Aug '11,148 355 424 229 105 1,525 2,361 '133 1,057 '317 171 230 376 509 Sept '11,285 355 426 260 109 1,529 2,288 '132 1,121 '363 174 224 396 551 Oct '11,233 293 444 269 112 1,524 2,184 159 '1,263 356 186 228 409 563 Nov 12,012 349 473 280 110 1,600 2,152 172 1,434 447 182 228 410 653 Dec.?... 12,248 323 436 336 127 1,663 2,009 174 1,621 367 183 257 393 644 1965—Jan.?. .. 11,987 296 465 344 129 1,529 1,922 165 1,591 355 153 257 406 681 For notes see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INfL CAPITAL TRANSACTIONS OF THE U. S. 499 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 2a. Europe—Continued 2b. Latin America End of period Sw la i n tz d er- Turkey U K d n i o i n m t g ed - Y sl u av g i o a - E W O u e r t s h o t e e p r r e n 5 U.S.S.R. E E O a u s t r h t o e e p r r n e Total A t r i g n e a n- Brazil Chile Co b l i o a m- Cuba Mexico I960 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 908 25 1,609 11 351 3 19 2,448 210 204 135 148 « 15 531 1963 906 21 1,483 16 465 2 24 3,137 375 179 143 169 11 669 1964—Jan 915 18 1,777 14 334 3 23 3,171 381 169 131 174 11 684 Feb 919 28 1,735 13 320 2 22 3,191 392 172 136 173 11 708 Mar.... 986 20 1,787 13 357 3 19 3,192 376 179 138 181 11 681 Apr 1,043 16 2,008 13 514 3 21 3,365 377 178 142 190 12 707 May.... 1,063 15 1,931 14 372 4 20 3,332 402 189 135 178 11 659 June.... 1,138 14 1,714 14 309 3 25 3,313 350 174 184 173 11 649 July.... ,121 13 1,864 14 278 4 23 3,400 336 176 168 164 10 666 Aug ,102 12 1,951 13 254 3 21 3,358 307 221 172 149 10 674 Sept ,121 18 1,920 16 260 3 20 '3,290 313 210 181 169 10 638 Oct ,083 22 1,848 12 254 2 23 3,411 305 233 163 162 10 663 Nov ,199 27 2,004 15 251 3 21 3,480 279 253 151 177 10 773 Dec.P... ,368 37 1,899 32 357 3 19 3,532 290 257 176 207 10 732 1965—Jan.". .. 1,320 26 2,047 21 253 3 24 3,588 299 279 189 175 9 696 21). Latin America—Continued 2c. 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 7 A S n u N t r i e l i l n t e h a s . m & Am O L e a t r h t i i e c n r a 7 Total M C la h a n i i n d n a - K H o o n n g g India n d I e n o s - i - a Israel 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 42,974 35 56 78 76 63 1962 98 105 101 405 267 123 97 10 3,444 36 65 41 28 81 1963 129 158 113 591 355 136 93 15 3,971 35 66 51 48 112 1964—Jan 111 168 105 646 358 128 88 16 4,012 35 78 51 44 121 Feb 113 173 104 592 391 125 87 14 4,077 36 72 52 54 129 Mar.... 91 173 106 616 397 141 88 13 4,194 36 74 55 46 126 Apr 90 191 98 717 412 154 86 11 4,224 36 72 56 45 132 May 90 197 104 687 425 155 85 14 4,209 36 71 67 40 140 June 105 204 105 656 426 166 93 16 4,245 36 71 64 42 135 July.... 85 218 106 769 427 171 93 14 4,312 35 75 62 40 133 Aug 92 214 112 707 419 166 96 19 4,352 35 80 56 27 129 Sept 89 204 109 '675 404 175 98 16 4,438 36 77 60 28 134 Oct 96 199 113 763 405 178 105 16 4,459 36 74 55 36 132 Nov.... 103 196 111 714 410 174 113 15 4,515 35 85 63 37 140 Dec.P... 98 205 110 729 404 178 114 22 4,591 35 95 59 38 133 1965—Jan.P... 100 241 115 759 414 181 113 17 4,697 35 96 65 26 131 2c. Asia—Continued 2d. Africa 2e. Other countries E pe n r d i o o d f Japan Korea P p h i i n l e ip s - w Ta 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 - 7 A So fr u ic th a ( U Eg .A yp .R t) . A O f t r h ic e a r Total t A ra u l s ia - ot A h l e l r7 I960 1,887 152 203 84 186 204 227 32 64 29 22 80 125 88 37 1961 41 672 199 185 92 264 254 283 34 93 32 15 109 104 98 6 1962 2,195 136 174 75 333 280 319 35 68 41 14 161 152 147 5 1963 2 454 113 209 149 382 353 241 26 49 41 14 112 194 180 13 1964—Jan 2,424 122 201 166 385 384 246 25 48 42 17 114 172 157 15 Feb. ... 2 388 126 203 177 400 441 238 25 41 43 19 110 184 170 14 Mar . 2,446 124 209 200 409 472 '247 26 33 43 24 '122 177 162 15 Apr . 2,415 120 205 215 416 512 '235 25 24 46 26 '113 184 162 22 May.... . 2,393 115 203 219 416 510 '230 24 19 49 21 '117 185 164 21 June.... . 2,441 106 204 232 425 490 '227 25 17 38 22 '125 186 166 19 July . 2,451 100 218 249 426 523 '233 24 20 44 24 '119 190 168 22 Aug . 2,514 101 216 248 439 507 '224 23 18 38 20 '124 183 162 20 Sept . 2,557 103 230 238 442 533 231 24 17 46 22 123 189 169 20 Oct 2,548 103 227 240 437 571 244 26 8 48 23 139 188 165 23 Nov . 2,570 106 228 221 444 585 238 25 7 51 19 135 181 163 18 Dep.P... . 2,672 104 233 221 458 543 247 26 7 50 24 141 191 175 16 1965—Jan. P.... . 2,670 116 242 225 471 618 252 23 8 57 28 136 217 200 18 1 International Bank for Reconstruction and Development, Inter- 4 Includes $82 million reported by banks initially included as of Dec national Monetary Fund, International Finance Corp., International 31, 1961, of which $81 million reported for Japan. Development Assn., and other international organizations; Inter-Amer- 5 Includes Bank for International Settlements and European Fund. ican Development Bank, European Coal and Steel Community, European « Decline from end of 1961 reflects principally reclassification of de- Investment Bank and other Latin American and European regional posits for changes in domicile over the past few years from Cuba to other organizations, except Bank for International Settlements and European countries. Fund which are included in "Europe." 7 Data based on reports by banks in the Second F.R. District only for 2 Not reported separately until 1962. year-end 1960-1962. 3 Foreign central banks and foreign central govts. and their agencies, and Bank for International Settlements and European Fund. For NOTE see end of Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 INT'L CAPITAL TRANSACTIONS OF THE U. S. MARCH 1965 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 2f. Supplementary Data8 (end of period) 1963 1964 1963 1964 Area or country Area or country Apr. Dec. Apr. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia (Com.): Iceland 5.2 7.0 4.7 5.2 Iran 49.4 23.5 33.4 23.4 Ireland, Rep. of 4.7 10.7 6.0 8.7 Iraq. 11.1 19.8 22.9 n.a. Luxembourg 8.9 7.4 8.6 17.4 Jordan 1.7 2.8 2.7 2.7 Monaco 2.0 2.7 2.4 4.1 Kuwait 38.2 46.5 49.9 56.4 Laos 12.8 8.8 6.5 5.0 Other Latin American republics: Lebanon 77.9 76.3 108.1 84.2 Bolivia 21.2 32.6 35.1 43.2 Malaysia 18.9 24.1 24.3 22.2 Costa Rica 32.8 29.1 35.9 31.5 Pakistan 15.9 17.3 16.1 23.1 Dominican Republic 47.4 58.0 40.6 53.2 Ryukyu Islands (incl. Okinawa). 32.7 21.7 31.6 n.a. Ecuador 37.8 53.4 62.1 67.1 Saudi Arabia 37.1 61.7 151.0 197.2 El Salvador 48.6 41.7 57.8 56.0 Syria 3.4 2.1 5.7 7.6 Guatemala 74.8 47.9 65.1 48.7 Viet-Nam 11.6 12.1 17.9 19.0 Haiti 11.9 12.9 17.3 14.3 Honduras 23.7 20.0 26.3 26.0 |Other Africa: Jamaica 5.8 6.5 4.7 7.0 Algeria .5 .9 1.0 1.5 Nicaragua 42.5 35.0 52.3 42.4 Ethiopia, incl. Eritrea. 20.8 22.3 32.1 33.7 Paraguay 6.8 8.9 8.4 11.4 Ghana 10.8 6.4 6.3 5.6 Trinidad & Tobago 4.1 5.7 5.5 7.4 Liberia 13.4 22.0 17.8 20.0 Libya 10.5 14.1 14.9 28.9 Other Latin America: Mozambique 1.1 1.4 1.4 2.5 British West Indies 22.6 7.3 6.3 Nigeria 24.5 17.8 17.3 n.a. French West Indies & French Somali Republic .6 .8 .8 .5 Guiana 1.3 1.3 1.1 Southern Rhodesia n.a. 3.6 3.5 n.a. Sudan 2.4 2.5 2.0 2.2 Other Asia: Tunisia 11.6 1.0 .9 Afghanistan. 13.3 5.0 4.2 5.5 Burma 8.9 9.9 22.1 n.a. All other: C Ce a y m lo b n odia. . 1 9 0 . . 6 2 6 3 . . 9 1 2 3 . . 1 7 n 2 . . a 4 . New Zealand. 10.5 18.8 12.0 8 Represent a partial breakdown of the amounts shown in the "other" interest-bearing special U.S. notes held by the International Developcategories (except "Other Eastern Europe") in Tables 2a-2e. ment Assn. and the Inter-American Development Bank. For data on long-term liabilities, see Table 6. For back figures and further NOTE.—Short-term liabilities are principally deposits (demand and description of the data in this and the following tables on international time) and U.S. Govt. securities maturing in not more than 1 year from capital transactions of the United States, see "International Finance," their date of issue; the latter, however, exclude nonnegotiable, non- Section 15 of Supplement to Banking and Monetary Statistics, 1962. 3. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banksand officialinstitutions To all other foreigners Payable End of period Total in foreign Total Deposits U.S. Special Deposits U.S. currencies Treasury U.S. Other 3 Total Treasury Other 3 bills and notes 2 bills and Demand Timei certificates Demand Time i certificates I960 21,272 18,929 7, 568 7,491 2,469 1,401 2,230 1,849 148 233 113 1961 22 450 19,944 8,644 7,363 2,388 1,549 2,356 1,976 149 231 150 1961 4 22,533 20,025 8,707 7,363 2,388 1,567 2,358 1,977 149 232 150 1962 25 019 22,311 8,528 9,214 3,012 1 557 2 565 2 096 116 352 143 1963 25 938 22,758 5,629 3,673 8,571 3,036 1,849 3 047 ,493 966 119 469 134 1964—Jan 26 122 22,990 5,900 3,756 8,531 3,036 1 767 3 002 1 425 980 120 477 131 Feb 26,119 22,923 5,796 3,842 8,371 3,166 1.748 3,070 ,443 994 127 506 125 Mar '25,904 '22,681 5,818 '3,799 7,972 3,171 \,92\ 3,111 ,424 ,023 136 528 112 Apr '26,333 '23,068 6,063 '3,937 7.687 3,166 2,215 3,148 ,457 ,038 116 537 117 May. . '26,339 '23,115 5,901 '3,922 7,800 3,164 2,328 3,107 ,467 ,057 87 495 118 June '26,302 '23,044 5,772 '3,722 7,866 3.289 '2,395 '3,135 ,496 1,080 75 484 123 July '26,866 '23,610 6,210 '3,787 7,914 3,289 '2,410 '3,132 ,464 '1,095 86 487 123 Aug.. . '27,245 '23,960 6,359 '"3,769 8,163 3,275 '2,396 '3,161 ,450 1,135 91 485 124 Sept '27,371 '24,002 6,243 3,753 8.180 3,425 '2,403 '3,237 1,478 '1,178 101 480 132 Oct '28,001 '24,645 6,764 3,856 '8;133 3,394 2,498 3,250 ,449 ,196 105 500 106 Nov .... 28,937 25,524 7,310 3,880 8,470 3,385 2,480 3,302 ,500 1,206 84 512 111 Dec.» 28,759 25,291 6,708 3,982 8,727 3,308 2,566 3,355 ,540 ,243 72 500 112 1965—Jan.?> 28,696 25,211 6,842 4,043 8,555 3.303 2,468 3,366 ,525 1,265 81 495 118 1 Excludes negotiable time certificates of deposit which are included Bank, which amounted to $329 million on Jan. 31, 1965. in "Other." 3 Principally bankers' acceptances, commercial paper, and negotiable 2 Nonnegotiable, non-interest-bearing special U.S. notes held by the time certificates of deposit. International Monetary Fund; excludes such notes held by the Inter- 4 These figures reflect the inclusion of data for banks initially included national Development Assn. and the Inter-American Development as of Dec. 31, 1961. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 501 4. 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 I r n e t g l i . o a n n a d l Europe Canada A L m a e t r i i n ca Asia Africa i cou O n t t h r e ie r s 2 1960 3,614 717 421 1,356 1,052 69 1961 34,820 767 556 1,522 31,891 85 1962 5,163 877 526 1,606 2,017 137 1963 5,975 939 638 1,742 2,493 104 58 1964—Jan 6,158 954 680 ,761 2,601 104 55 Feb 6,265 1,001 636 ,753 2,716 100 56 Mar 6,372 940 713 ,781 2,796 98 44 Apr 6,497 1,002 735 ,818 2,794 102 45 May 6,561 1,028 764 ,795 2,825 98 50 June 6,901 1,164 855 ,856 2,874 100 52 July 6,731 1,075 '746 ,916 2,837 98 58 Aug 6,779 1,048 746 ,936 2,891 98 60 Sept 6,810 1,064 675 2,923 101 58 Oct 6,923 1,164 635 2,024 2,925 108 66 Nov 7,011 1,102 638 2,108 2,987 109 67 T)ecJ> 47,416 1,217 729 42,154 3,137 120 58 1965—Jan. P 7,282 1,154 673 2,158 3,138 105 52 4a. Europe End of period Total A tr u ia s- g B iu e m l- D m e a n rk - l F a i n n d - France F G e e d r . m o R a f n e y p , . Greece Italy N la e e n r t d - h s - N w o a r y - t P u o g r a - l Spain S d w en e- 1960 717 2 65 13 9 32 82 6 34 33 17 4 8 28 1961 767 5 20 11 23 42 165 6 35 54 27 5 11 35 1962 877 7 32 14 30 68 186 6 54 27 35 9 19 18 1963 939 8 26 13 52 70 121 9 97 33 40 14 26 30 1964—Jan... 954 8 25 13 53 74 160 9 96 40 39 12 26 25 Feb.. . 1,001 8 30 15 69 80 165 9 95 42 34 12 24 25 Mar.. 940 8 28 15 69 85 123 9 83 43 33 17 27 23 Apr... 1,002 8 29 12 75 86 135 9 85 47 34 17 25 29 May.. 1,028 9 30 15 63 92 158 9 90 38 35 15 25 29 June.. ,164 7 31 16 63 86 135 10 114 45 41 16 28 32 July. . ,075 7 29 17 65 79 114 11 100 46 34 19 31 31 Aug.. 1,048 8 31 18 62 72 133 10 94 40 33 20 32 31 Sept.. 1,064 9 31 17 65 74 127 10 92 40 33 17 31 36 Oct.. . ,164 9 35 15 69 76 173 10 113 40 36 21 28 43 Nov.. ,102 7 37 16 71 77 169 10 125 35 41 20 32 42 Dec.* 1,217 10 42 28 85 79 159 9 109 39 43 19 40 47 1965—Jan. v. 1,154 9 55 19 77 89 188 10 104 29 42 23 32 50 4a. Europe—Continued 4b. Latin America End of period S l w a e n r i - t d z- T k u ey r- U K d n i o n i m t g e - d Y sl u av g i o a - W E O u e r t s h o te e p r r e n 5 U.S.S.R. E E O a u s t r h t o e e p r r n e6 Total A t r i g n e a n- Brazil Chile l C o b m i o a - - Cuba M ic e o x- 1960 60 49 245 11 11 ,356 121 225 73 80 26 343 1961 105 16 181 9 9 ,522 192 186 127 125 19 425 1962 75 42 221 6 19 ,606 181 171 186 131 17 408 1963 70 48 237 7 23 ,742 188 163 187 208 18 465 1964—Jan 79 36 212 8 23 ,761 179 170 184 218 17 468 Feb 74 50 219 11 23 ,753 175 166 184 219 17 477 Mar 77 46 198 14 23 ,781 176 155 182 222 16 498 Apr 81 25 246 17 25 ,818 180 147 192 226 17 519 May 76 23 255 24 24 ,795 175 141 186 230 17 511 June 85 42 347 29 22 ,856 171 147 191 246 17 543 July 91 52 285 26 22 |t ,916 174 147 187 251 16 575 Aug 88 35 111 23 21 ,936 175 153 187 250 16 572 Sept 82 49 290 21 22 ,988 187 158 196 273 16 569 Oct 90 31 312 17 26 2,024 196 155 183 291 16 584 Nov 92 15 256 15 21 2,108 205 146 188 300 17 611 Dec.p 97 36 319 15 20 42,154 4201 4120 4170 319 17 630 1965—Jan. *> 106 36 228 16 21 * 2,158 212 124 162 300 16 647 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 INTL. CAPITAL TRANSACTIONS OF THE U.S. MARCH 1965 4. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 4b. Latin America—Continued 4c. Asia E p n er d i o o d f Panama Peru U gu r a u y - V zu e e n l e a - R O L l e i t p . c h A u s e ? . b r - m B B m u a & e d h a r a s a - - i A N S n n u e a t & i m t r l h i l - e . s A O L i m c a th a t e i e n & r r - Total M C la h a n i i n d n a - H K o o n n g g India I n n e d si o a - Israel I960 23 44 57 234 55 66 1,052 2 9 9 24 1961 . . 32 74 55 144 56 I1 74 31 891 2 9 8 36 1962 30 85 122 102 66 98 2 017 2 13 20 37 1963 35 99 65 114 135 42 s 16 2,493 2 11 17 22 1964—Jan 47 106 54 109 148 37 s 15 2,601 2 11 18 |c 25 Feb.. 45 107 50 112 145 33 1C) 12 2,716 2 11 17 29 Mar. 50 110 50 115 147 34 12 14 2,796 2 12 26 It 31 Apr.. 46 113 48 123 147 37 11 11 2,794 2 13 22 34 May. 41 113 51 125 144 35 13 11 2,825 2 13 23 38 June. 44 114 54 128 140 37 12 10 2,874 2 15 21 39 July. 40 112 55 140 160 38 11 10 2,837 2 16 20 44 Aug.. 38 104 62 137 169 41 IS 13 2,891 2 16 19 39 Sept. 37 102 63 140 173 42 n 13 2,923 2 20 24 t 39 Oct.. 35 96 62 140 188 44 IS 16 2,925 2 21 20 40 Nov. 39 99 67 153 199 50 11 16 2,987 2 20 19 3 45 Dec.p 41 102 76 165 4 216 58 u 20 3,137 2 26 22 7 44 1965— Jan.P. .. 44 108 77 157 215 61 18 16 3,138 2 20 23 7 36 4c. Asia—Continued 4d. Africa 4e. Other countries Congo End of period 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 v L o il e l l d e o ) - - M c o o r o i c- 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 i Total 2 A t l r u i a a s - - ot A he l r l ^ I960 806 2 19 7 24 150 3 1 3 69 28 24 1961 31 528 4 114 10 34 145 6 0 13 85 29 27 1962 1,740 3 70 9 41 80 2 ]0 26 137 41 57 1963 2,171 25 113 8 52 71 104 1 1 1s 28 59 58 48 9 1964—Jan 2,247 28 129 9 52 80 104 9 15 25 61 55 47 8 Feb 2,340 30 142 10 58 76 100 1 15 28 55 56 49 8 Mar 2 400 31 150 9 58 77 98 1 17 24 55 44 36 8 Apr 2,394 29 161 8 57 74 102 1 20 24 56 45 37 8 May . .. 2 421 28 155 7 54 84 98 0 18 29 49 50 40 9 June 2,469 27 158 7 57 78 100 ? 1Q 26 52 52 43 9 July 2 416 27 174 7 53 78 98 1Q 26 50 58 49 9 2,472 23 179 7 56 77 98 ? 19 26 50 60 50 9 Sept 2 493 25 179 8 53 80 101 1fi 29 52 58 49 10 Oct 2,488 25 185 9 54 81 108 18 29 58 66 56 10 Nov 2 549 25 183 8 55 80 109 q 28 60 67 58 9 Dec P .... 2 653 21 202 9 64 88 120 ? 9 42 56 58 48 10 1965—Jan.* 2,667 20 200 9 69 85 105 1 1 5 31 57 52 44 8 1 Not reported separately until 1963. Costa Rica, Ecuador, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, 2 Includes Africa until 1963. and Trinidad and Tobago. 3 Includes fc58 million reported by banks initially included as of Dec. 9 Until 1963 includes also African countries other than Congo (Leo- 1961, of which $52 million reported for Japan. poldville), South Africa, and U.A.R. (Egypt). 4 Beginning Dec. 31,1964, excludes certain U.S. Govt. claims previously included. Claims excluded as of this date are as follows: Argentina $8 NOTE.—Short-term claims are principally the following items payable million; Brazil $25 million; Chile $18 million; Other Latin American on demand or with a contractual maturity of not more than 1 year; loans Republics $6 million; Total Latin America and Grand total $58 million. made to and acceptances made for foreigners; drafts drawn against 5 Until 1963 includes Eastern European countries other than U.S.S.R., foreigners where collection is being made by banks and bankers for Czechoslovakia, Poland, and Rumania. their own account or for account of their customers in the United States; 6 Czechoslovakia, Poland, and Rumania only until 1963. and foreign currency balances held abroad by banks and bankers and 7 Bolivia, Dominican Republic, El Salvador, and Guatemala only until their customers in the United States. Excludes foreign currencies held 1963. by U.S. monetary authorities. 8 Until 1963 includes also the following Latin American Republics: See also NOTE to Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 503 5. 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 Loansto- Accept- Foreign End of period Total Total Total O i t n i f s o f t i n i c t s i u a l - l Banks Others C s t t o o i i a o n u l n l n g t e d - s c - - f e o o i a m g r f n n a a c f e d o c e r e s c r s - t 2 . Other 3 Total D w e e i i g t p h n o e f s r o i s t r s - g c c p a n o u o n a a v r m p d i n t t . e m i c f e r s e i 2 l s e - . , - Other 4 I960 3,614 3,135 1,296 290 524 482 605 1,233 480 242 238 1961 4,762 4,177 1,646 329 699 618 694 1,837 586 385 200 1961 5 4,820 4,234 1,660 329 709 622 700 1,874 586 386 200 1962 5,163 4,606 1,954 359 953 642 686 1,967 557 371 186 1963 5,975 5,344 1,915 186 955 774 832 2,214 384 631 432 157 42 1964—Jan 6,158 5,509 2,024 191 1,037 796 863 2,248 373 649 399 207 43 Feb 6,265 5,620 2,057 176 J 090 791 891 2,325 348 644 410 197 36 Mar 6,372 5,710 2,051 162 1,086 803 932 2,394 333 662 397 211 55 Apr 6,497 5,788 2,098 152 1,108 838 911 2,413 367 709 444 210 56 May . 6,561 5,826 2,143 140 1,138 865 932 2,373 378 735 452 221 62 June 6,901 6,093 2,196 168 1,143 885 933 2,438 526 808 494 254 60 July 6,731 6,043 2,237 168 1,152 917 956 2,401 448 688 419 207 62 Aus 6,779 6,087 2,269 151 1,176 942 956 2,403 460 692 416 202 64 Sept 6,810 6,136 2,314 159 1,207 948 980 2,414 428 674 416 176 83 Oct 6,923 6,246 2,383 164 1,251 968 986 2,431 446 677 416 177 83 Nov 7,011 6,336 2,445 165 1,299 981 1,015 2,428 448 674 407 183 84 Dec -P 67,416 6,810 2,652 223 I 374 1,055 1,007 2,600 552 6605 6346 182 77 1965—Jan.? 7,282 6,689 2,693 230 1,408 1,055 966 2,520 510 593 343 168 83 1 Includes central banks. 5 These figures reflect the inclusion of data for banks initially included 2 Not reported separately until 1963. as of Dec. 31, 1961. 3 Until 1963 includes acceptances made for account of foreigners. 6 Beginning Dec. 31,1964, excludes certain U.S. Govt. claims previously 4 Until 1963 includes foreign government securities, commercial and included. Claims excluded as of this date amount to $58 million. finance paper. 6. LONG-TERM CLAIMS ON AND LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Claims Total End of period Payable in dollars Payable in liabilities Total foreign Total Loans All other currencies 1960 1 698 7 1961 . . . . 2,034 2 1962 2,160 4 1963 13,030 13,028 2,811 217 2 69 1964—Jan r3,075 '3,073 '2,856 217 2 73 Feb '3,127 '3,125 '2,909 217 2 74 Mar '3,274 '3,273 '3,058 215 '105 Apr '3,307 '3,306 '3,093 213 '146 May r3,333 '3,332 '3,120 212 '155 June... '3,346 '3,345 '3,143 202 '157 July '3,410 '3,409 '3,215 194 '175 Aue '3,476 '3,476 '3,278 198 '174 Sept 3,585 3,585 3,388 197 '171 Oct 3,689 3,689 3,486 203 * '164 Nov . 3,855 3,855 3,654 201 * 298 Dec p 3,971 3,971 3,777 195 * 306 1965 Jan v 4,232 4,232 4,025 207 * 309 i Includes $193 million reported by banks for the first time as of DueecceemmDbeerr 1I9^6O3,, rrepresenting in part claims previously held but not reported by banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 INTL. CAPITAL TRANSACTIONS OF THE U.S. MARCH 1965 7. 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 . cu 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 s t e le p s s u o r r - c P ha u s r e - s Sales c N h s a e a s t l e e p s s u o r- r ch P a u s r e - s Sales c N ha s e a s t e le p s s u o r r regional Total Official Other 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 1963 671 302 369 2 980 2,773 207 991 2 086 — 1 095 696 644 51 1964^ ... -338 -315 — 23 -59 36 3,536 3,710 -173 915 1 837 -923 748 548 200 1964 Jan — 5 -48 43 27 17 309 296 13 40 37 3 77 45 32 Feb 30 1 29 26 3 230 264 -34 51 134 -83 62 36 26 Mar — 27 * — 27 — 27 299 334 -35 43 40 3 66 36 31 Apr -4 1 5 4 -8 340 360 -20 70 192 -121 71 50 22 May -83 -103 20 * 20 313 296 16 53 157 -103 62 50 12 June 12 * 12 1 10 313 297 17 67 112 -44 64 47 17 July -16 1 -17 -23 6 284 353 -68 70 76 — 5 61 42 19 Aug -98 -61 -37 -40 3 260 262 -2 37 32 6 49 32 16 Sept -81 -84 3 3 267 301 -34 51 97 -46 49 42 7 Oct -30 -21 -9 -13 4 335 353 -17 252 399 -148 60 59 1 Nov -37 * -37 -40 3 297 292 5 86 342 -256 55 50 5 Dec.p 2 * 2 * 2 288 302 —14 93 220 -127 72 59 13 1965—Jan.? -69 -68 -1 -15 14 240 249 <) 48 95 -47 77 44 33 1 Excludes nonmarketable U.S. Treasury bonds and notes held by NOTE.—Statistics include transactions of international and regional official institutions of foreign countries; see Table 8. organizations. 2 Includes small amounts of State and local govt. securities. See also NOTE to Table 2. 8. 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 Sweden 1962 Dec 251 200 51 1963 Dec 730 50 30 275 200 175 163 125 13 25 1964 Feb 730 50 30 275 200 175 160 125 10 25 Miar 680 50 30 275 150 175 158 125 8 25 Apr 732 50 30 477 175 158 125 8 25 May 802 50 30 477 245 158 125 8 25 June 802 50 30 477 245 152 125 2 25 July 953 50 30 628 245 152 125 2 25 Aug 1,005 50 30 628 297 152 125 2 25 SeDt 1,005 50 30 628 297 354 2 329 25 Oct 1,086 50 30 679 327 354 2 329 25 Nov 1,086 50 30 679 327 354 2 329 25 Dec 1,086 50 30 679 327 354 2 329 25 1965 Jan 1 086 50 30 679 327 354 2 329 25 Feb 1,112 75 30 679 327 354 2 329 25 i Includes the equivalent of $70 million payable in Swiss francs to the 2 Includes $204 million of nonmarketable bonds issued to the Govern- Bank for International Settlements. ment of Canada in connection with transactions under the Columbia River treaty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 505 9. 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 i n m t g e - d E O u t r h o e p r e E T u o r t o a p l e Canada A L m i a c t a e in r- Asia Africax c O tr o i t u e h n s e 2 - r reg I a n i n o t d l n . al 1961 223 323 —99 21 166 — 17 61 232 — 112 44 44 3 12 1962 60 111 -51 4 129 — 33 24 124 —43 —20 — 18 1 17 1963 207 198 9 -8 -14 206 16 199 —47 14 17 1 22 1964* -173 -350 176 -37 -200 -4 14 -228 3 25 10 • 18 1964—Jan... 13 4 9 -2 -2 -16 8 -12 11 10 j i 1 Feb... -34 -26 -9 * -6 -22 4 -25 -10 1 -2 2 Mar.. -35 -51 16 2 -13 -19 5 -25 -5 -10 2 3 Apr... -20 -17 -2 * -6 -24 3 -27 10 -2 1 May.. 16 3 14 Q -21 7 6 -17 9 23 1 1 June.. 17 -6 23 -4 -24 28 -3 3 10 4 3 t 2 July.. -68 -74 6 -4 -32 -32 8 -61 -8 -4 3 1 Aug... -2 -50 48 -3 -22 19 2 -4 3 -3 * 2 Sept... -34 -43 9 -5 -15 4 * -16 -18 * 2 1 Oct... -17 -25 8 -6 -19 14 -1 -13 -7 * 2 i 1 Nov... 5 -27 32 2 -26 41 -15 -2 5 * 2 1 Dec*. -14 -38 24 -3 -14 -5 -1 -23 3 4 * 1 1965—Jan.p . -9 * -9 * -2 -3 -1 -6 -3 -1 * * * 1 1 Not reported separately until May 1963. NOTE.—Statistics include small amounts of State and local govt. securi- 2 Yearly figures through 1963 include Africa. ties. 10. NET PURCHASES OR SALES BY FOREIGNERS OF LONG-TERM 11. 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 d - n l. al c T e f o o o i u g t r n a n - l - r E o u p - e C a a d n a - A L i m a c t a e in r- Asia A ca fr 1 i- O c tr o t i u h e n s e 2 r - E pe n r d i o o d f Deposits U.S. A G s o se v t t s . in c E u a s r t m od a y rked tries securities* gold 1961 — 830 — 832 -262 -318 — 58 -121 — 73 1961 279 6 006 11,905 1962 -1,048 -235 -813 -188 -360 -41 -175 — 50 1962 247 6,990 12,700 1963 -1,044 -96 -949 -49 -614 -26 -252 -8 1963 171 8,675 12,954 1964* -722 -140 -582 163 -664 -36 -77 7 25 1964—Feb... 155 8,731 12,884 1964 Jan 35 3 32 24 16 1 -10 1 Mar... 167 8,105 12,775 Feb -57 -4 -53 22 -80 -4 8 1 Apr... 166 7,860 12,726 Mar 33 2 31 23 10 1 -4 1 May.. 161 7,892 12,747 Apr -100 -48 -52 24 -58 -14 -5 2 June.. 156 8,043 12,795 May -91 1 -92 8 -93 3 -12 1 July... 135 8,201 12,752 June -28 9 -36 13 -49 2 -8 4 Aug... 163 8,247 12,741 July 14 4 9 19 6 -13 -5 2 Sept... 148 8,373 12,738 Aug 22 1 20 4 16 1 -2 1 Oct.... 120 8,201 12,707 Sept -39 * -39 -5 -35 1 — 1 1 Nov... 256 8,278 12,672 Oct -147 7 -153 2 -171 12 -5 6 Dec... 229 8,389 12,698 Nov -251 -95 -156 15 -129 -30 -15 2 Dec* -114 -22 -92 16 -98 5 -18 2 1965—Jan.... 143 7,952 12,871 Feb.. . 154 8,100 12,940 1965—Jan.p.... -14 5 -18 17 -20 1 -20 1 3 1 U.S. Treasury bills, certificates of indebtedness, 1 Not reported separately until May 1963. notes, and bonds; includes securities payable in foreign 2 Yearly figures through 1963 include Africa. 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 of Supplement to Banking and Monetary Statistics, 1962). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 INTL. CAPITAL TRANSACTIONS OF THE U.S. MARCH 1965 12. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONFINANCIAL CONCERNS (End of period; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1963 1964 1963 1964 Dec. Dec.i Mar. June June2 Sept.** Dec. Dec.i Mar. June June 2 Sept.*3 Europe: 2 2 2 3 3 3 8 8 7 6 5 5 Belgium 26 26 19 21 20 22 22 22 18 21 20 17 Denmark 3 3 1 1 1 1 8 8 6 7 7 6 Finland 1 1 1 1 1 1 4 4 7 5 5 g France 33 33 31 28 27 31 47 47 52 70 68 50 Germany Fed Rep of 34 34 32 36 34 44 103 103 114 82 79 95 Greece 2 2 2 5 5 4 9 9 13 9 9 10 Italy 25 25 26 24 22 27 106 106 101 101 99 90 46 46 43 46 46 31 32 32 34 30 30 32 Norway 3 3 2 3 2 2 7 7 6 7 6 7 Portugal 1 1 1 1 1 2 8 8 8 10 10 9 7 7 7 9 8 12 29 29 32 47 46 48 Sweden 9 9 7 7 7 7 17 17 20 17 17 19 Switzerland 25 25 20 19 18 36 27 27 23 19 17 16 Turkey 2 2 4 5 4 5 5 5 5 5 5 4 United Kincdom .. 100 100 110 102 97 108 234 241 248 274 270 394 4 4 6 1 1 1 3 3 4 3 3 3 Other ^Vestern Eurooe 3 3 1 3 2 4 4 4 5 6 6 6 U.S.S.R * * * * 1 1 * * * * Other Eastern Europe • * 1 1 * 1 3 3 4 2 2 3 Total 325 325 319 316 301 341 678 685 706 722 706 821 Canada 72 72 68 62 57 59 685 731 910 921 912 1,007 Latin America: 7 7 6 6 5 4 25 40 39 34 34 39 Brazil 13 13 13 11 10 11 113 113 118 126 125 128 Chile 3 3 3 3 3 4 25 25 24 23 21 25 Colombia 7 7 6 8 7 7 19 21 21 23 22 26 Cuba * * * * * * 5 5 5 5 5 4 Mexico 8 8 11 8 7 8 60 60 59 62 58 64 20 20 29 21 21 26 13 13 10 11 11 9 Peru 5 6 8 7 6 5 22 27 26 25 24 27 Uruguay 1 1 3 1 1 1 4 10 8 15 15 23 Venezuela 22 22 20 22 21 20 36 36 37 40 38 45 Other "L, A Reoublics 13 13 10 9 8 11 39 39 42 44 42 47 Bahamas and Bermuda 1 1 2 2 2 2 10 10 20 21 20 19 Neth. Antilles & Surinam.... 6 6 6 7 7 9 5 5 5 5 5 4 Other Latin America 4 4 5 6 6 4 10 11 10 11 9 10 Total 110 110 122 112 104 111 387 415 426 447 429 471 Asia: China Mainland . 1 1 2 2 2 1 * * * * • Hone Kons 2 2 2 2 2 2 4 4 6 5 7 India 14 14 14 14 13 16 42 42 39 39 38 36 3 3 3 5 5 3 10 10 5 5 5 4 Israel 1 2 1 1 1 7 7 7 8 7 7 Japan 24 24 23 27 25 31 161 161 170 170 169 186 Korea 1 1 1 1 * 6 6 5 4 4 5 Philippines 5 5 5 5 4 6 9 9 12 11 11 14 Taiwan 1 1 1 1 1 * 4 4 3 4 4 5 Thailand 2 2 1 1 1 1 11 11 7 7 7 7 Other Asia 18 18 22 21 19 21 41 41 46 53 51 55 Total 72 72 76 80 73 82 295 295 300 308 303 327 Africa: Congo (Leopoldville) 1 1 1 1 1 3 3 3 2 2 2 5 Morocco • * • * 1 2 2 1 1 2 South Africa 10 10 9 10 10 11 9 9 8 13 12 11 U.A R. (Egypt) 5 6 4 2 2 1 11 11 14 13 13 12 Other Africa 8 8 6 6 5 5 18 18 23 26 25 27 Total 25 25 21 19 18 22 43 43 50 55 53 57 Other countries: Australia 17 17 25 27 27 26 32 32 33 37 36 38 All other 5 5 4 6 5 8 9 9 5 6 6 7 Total 22 22 30 33 32 34 42 42 38 43 41 45 International and regional * * 1 1 * 1 1 1 1 1 Grand total 626 627 635 623 586 649 2,131 2,213 2,430 2,498 2,446 2,728 1 Eighth revised series; includes data from firms reporting for the first NOTE.—Reported by exporters, importers, and industrial and comtime as of Dec. 31, 1963. This series also includes claims previously mercial concerns in the United States. Data exclude claims held through held but not reported. U.S. banks, and intercompany accounts between U.S. companies and 2 Ninth revised series; includes reports from firms having $500,000 their foreign affiliates. or more of liabilities or of claims; for previous series the exemption level See also NOTE to Table 2. was $100,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 MONEY RATES 507 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Feb. 28,1964 Rate as of Country 1964 1965 Feb. 28, 1965 Per Month cent effective Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Argentina. . • • ...... 6.0 Dec. 1957 6.0 Austria • 4.5 June 1963 4.5 Belcium 4.25 Oct. 1963 4.75 4.75 Brazil 10.0 Apr. 1958 12.0 12.0 4.0 Feb. 1962 4.0 Canada ^ •• 4.0 Aug. 1963 4 25 4.25 Ceylon . 4.0 Aug. 1960 4.0 Chile 2 14.39 Jan. 1964 14.63 14.63 China (Taiwan) 3 14.04 July 1963 14.04 Colombia • • •••••• 8.0 May 1963 8.0 Costa Rica . .. 3.0 Apr. 1939 3.0 5.5 Nov. 1963 6.5 6.5 Ecuador 5.0 Nov. 1956 5.0 El Salvador ..... 6.0 June 1961 4 0 4.0 7.0 Apr. 1962 7.0 France . • ............ 4.0 Nov. 1963 4.0 Germany, Fed. Rep. of..... 3.0 May 1961 3 5 3.5 Ghana .... 4.5 Oct. 1961 4.5 Greece 5.5 Jan. 1963 5.5 Honduras 4 3.0 Jan. 1962 3.0 Iceland • ... • ••••••••• 9.0 Dec. 1960 8.0 8.0 India 4.5 Jan. 1963 5.0 6.0 6.0 Indonesia 9.0 Aug. 1963 9.0 4.0 Oct. 1963 4.0 3.94 Jan. 1964 4.5 4.62 4.69 4.87 4.89 4.94 6.87 6.81 6.75 6.75 Israel 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 3.5 Jamaica - ••«.*. 4.0 Nov. 1963 5.0 5.0 5.84 Apr. 1963 6.57 6 21 6.21 Korea 10.22 June 1960 10.5 10.5 4.5 June 1942 4.5 Netherlands . .. 4.0 Jan. 1964 4.5 4.5 New Zealand 7.0 Mar. 1961 7.0 Nica raffiia 6.0 Apr. 1954 6.0 Norway • •.« 3.5 Feb. 1955 3.5 Pakistan • 4.0 Jan. 1959 4.0 Peru •••••••• 9.5 Nov. 1959 9.5 Philippine Republic * 6.0 Jan. 1962 6.0 Portugal • •.. 2.0 Jan. 1944 2.0 South Africa 3.5 Nov. 1962 4.0 4.5 4.5 Spain 4.0 June 1961 4.0 Sweden • • . 4.5 Jan. 1964 5 0 5.0 Switzerland 2.0 Feb. 1959 2.5 2.5 Thailand 7.0 Feb. 1945 7.0 Tunisia • • • 4.0 Oct. 1962 4.0 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom 5.0 Feb. 1964 7.0 7.0 Venezuela 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some continue to be .25 of 1 per cent above latest weekly Treasury bill tender of these countries follow: average rate but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de- 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction; the average rate charged by banks in the previous half year. Old redis- Brazil—8 per cent for secured paper and 4 per cent for certain agricultural counts remain subject to old rates provided their amount is reduced by paper; one-eighth each month beginning with May 1, 1959, but the rates are Colombia—5 per cent for warehouse receipts covering approved lists of raised by 1.5 per cent for each month in which the reduction does not products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent occur. for rediscounts in excess of an individual bank's quota; 3 Rate shown is for call loans. Costa Rica—5 per cent for paper related to commercial transactions 4 Rate shown is for advances only. (rate shown is for agricultural and industrial paper); 5 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 Japan—penalty rates (exceeding the basic rate shown) for borrowings of development loans was reduced from 6 to 3 per cent. from the central bank in excess of an individual bank's quota; Peru—8 per cent for agricultural, industrial and mining paper; and NOTE.—Rates shown are mainly those at which the central bank either Venezuela—4 per cent for rediscounts of certain agricultural paper and discounts or makes advances against eligible commercial paper and/or for advances against govt. bonds or gold and 5 per cent on advances govt. securities for commercial banks or brokers. For countries with against securities of Venezuelan companies. more than one rate applicable to such discounts or advances, the rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

508 MONEY RATES; ARBITRAGE MARCH 1965 OPEN MARKET RATES (Per cent per annum) Germany, Canada United Kingdom France Fed. Rep. of Netherlands Sw la it n z d er- Month 3 T m r b e o i a l n s ls u t , h ry s1 D m a o d y n a - e y t y o - 2 3 B a a a m c n n c o c k e n e p e s t r t , h - s' s 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 t e o y - a B d ll a e o p n o w o k n a s e i n r t s c s ' e D m a o d y n a - e y t y o - 3 Tr 6 d b e 0 a i a - l y s l 9 s s u 0 , * ry D m a o d y n a - e y t y o s - 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - d P is r r c i a v o t a u e t n e t 1962—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—Dec 3.71 3.55 3.91 3.74 3.00 2.00 4.66 2.63 2.56 2.25 1.56 2.00 1964—Jan 3.76 3.51 3.91 3.72 3.03 2.00 4.13 2.63 2.69 2,31 1.67 2.00 Feb 3.81 3.57 4.00 3.91 3.10 2.08 4.33 2.63 2.69 2.33 1.88 2.00 Mar 3.88 3.70 4.53 4.30 3.79 3.00 4.98 2.63 3.38 2.88 2.51 2.00 3.75 3.52 4.53 4.30 3.81 3.00 5.03 2.63 3.44 3.00 2.42 2.27 May 3.66 3.33 4.56 4.35 3.77 3.00 6.18 2.63 3.38 3.10 2.78 2.50 June 3.56 3.28 4.64 4.44 3.80 3.00 4.91 2.63 3.31 3.81 2.05 2.50 July 3.60 3.49 4.73 4.57 3.67 3.00 4.83 2.63 3.38 4.26 3.53 2.50 3.80 3.79 4.84 4.65 3.92 3.00 4.70 2.63 3.38 3.74 2.06 2.50 Sept 3.79 3.77 4.84 4.65 3.94 3.00 4.74 2.63 3.69 3.70 2.09 2.50 Oct 3.69 3.60 4.88 4.69 3.99 3.00 4.30 2.63 3.25 3.80 3.14 2.50 Nov 3.73 3.68 5.42 5.18 4.54 3.56 4.13 2.63 3.13 3.84 2.79 2.50 Dec 3.85 3.84 6.84 6.62 5.87 5.00 4.16 2.63 2.88 3.68 2.09 2.68 1965—Jan 3.78 3.83 6.84 6.60 5.92 5.00 3.77 3.13 2.44 3.29 2.43 3.00 1 Based on average yield of weekly tenders during month. 5 Based on average of lowest and highest quotation during month. 2 Based on weekly averages of daily closing rates. 3 Rate shown is on private securities. NOTE.—For description of rates and back data, see "International 4 Rate in effect at end of month. Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date United P d ( r i + s e c m ) o i u u o n m r t inc N en e t t ive Canada P d ( r i + s e c m ) o i u o u n m r t in N ce e n t tive Kingdom Spread (-)on (favor Spread (-)on (favor q ( u a o & tat : i ° on U S n ta it t e e d s L ( o f n a o v d f o o r n) fo p r o w u a n r d d Lon o d f on) qu A i o n t s ed qu A o U d t j . a S . t . i t o o n U S n ta i t t e e s d C ( a fa n o v a f o d r a) C fo a d r n o w a ll d a a i r r a d n Can o a f da) basis) Canada basis 1964 Oct. 2 4,50 3.53 .97 -.75 .22 3.71 3.63 3.53 10 -.20 -.10 9 4.53 3.56 .97 -.76 .21 3.67 3.59 3.56 .03 -.20 -.17 16 4.59 3.56 1.03 -.96 .07 3.68 3.60 3.56 .04 -.14 -.10 23 4.59 3.56 1.03 -.91 .12 3.71 3.63 3.56 .07 -.20 -.13 30 4.59 3.53 1.06 -.82 .24 3.70 3.62 3.53 .09 -.20 -.11 Nov. 6 4.53 3.54 .99 -.91 .08 3.70 3.62 3.54 .08 -.20 -.12 13 4.53 3.56 .97 -.92 .05 3.67 3.59 3.56 .03 -.17 -.14 20 4.62 3.59 1.03 -1.01 .02 3.68 3.60 3.59 .01 -.13 -.12 27 6.41 3.79 2.62 -2.65 -.03 3.86 3.78 3.79 -.01 -.27 -.28 Dec. 4 6.41 3.76 2.65 -2.54 .11 3.86 3.77 3.76 .01 -.13 -.12 11 6.41 3.80 2.61 -2.68 -.07 3.83 3.74 3.80 -.06 -.07 -.13 18 6.41 3.84 2.57 -2.62 -.05 3.86 3.77 3.84 -.07 -.07 -.14 24 6.41 3.84 2.57 -2.69 -.12 3.85 3.76 3.84 -.08 -.07 -.15 31 6.41 3.80 2.61 -2.72 -.11 3.83 3.74 3.80 -.06 -.14 -.20 1965 Jan. 8 6.44 3.77 2.67 -2.61 .06 3.80 3.71 3.77 -.06 -.14 -.20 15 6.44 3.74 2.70 -2.71 -.01 3.81 3.73 3.74 -.01 -.20 -.21 22 6.41 3.81 2.60 -2.61 -.01 3.72 3.63 3.81 -.18 -.27 -.45 29 6.38 3.83 2.55 -2.65 -.10 3.70 3.62 3.83 -.21 -.27 -.48 Feb. 5 6.32 3.89 2.43 -2.55 -.12 3.71 3.63 3.89 -.26 -.23 -.49 11 6.32 3.89 2.43 -2.52 -.09 3.69 3.61 3.89 -.28 -.07 -.35 19 6.32 3.94 2.38 -2.85 -.47 3.70 3.62 3.94 -.32 + .14 -.18 26 6.29 3.97 2.32 -2.82 -.50 3.76 3.67 3.97 -.30 + .00 -.30 Mar. 5 6.26 3.93 2.33 -2.78 -.45 3.78 3.69 3.93 -.24 + .10 -.14 NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to Federal Reserve Bank of U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. New York by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures see Oct. 1964 BULL., Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260 bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 BULL. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 FOREIGN EXCHANGE RATES 509 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Ar ( g p e e n so ti ) na (p t A r o a u u l s n i - a d) (s A ch u i s l t l r in ia g) B ( e fr l a g n iu c m ) C (d a o n l a la d r a ) C (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n n c c e ) 1959 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .3115 .2038 I960 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 .9080 223.73 3.8685 2.0093 93.561 21.034 14.490 .3107 20.405 1963 .7245 223.10 3.8690 2.0052 92.699 21.015 14.484 131.057 220.404 1964 .7179 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 20.404 1964 Feb . .. .7582 222.86 3.8681 2.0068 92.575 21.021 14.457 31.068 20.403 Mar .7438 222.95 3.8675 2.0070 92.534 21.019 14.484 31.077 20.404 Apr .7287 223.03 3.8687 2.0082 92.498 21.020 14.494 31.077 20.405 May .7312 223.06 3.8686 2.0089 92.499 21.021 14.482 31.066 20.405 .7272 222.64 3.8694 2.0060 92.499 21.009 14.470 31.063 20.401 July .7279 222.29 3.8710 2.0085 92.473 20.977 14.459 31.063 20.405 AUK .7075 222.04 3.8725 2.0103 92.690 20.953 14.438 31.059 20.405 Sept .6980 221.79 3.8712 2.0126 92.913 20.955 14.435 31.056 20.402 Oct .6979 221.79 3.8699 2.0146 92.984 20.954 14.430 31.054 20.403 Nov .6725 221.90 3.8693 2.0149 93.100 20.953 14.430 31.076 20.405 Dec .6652 222.36 3.8707 2.0144 93.039 20.944 14.459 31.084 20.405 1965—Jan .6628 222.42 3.8697 2.0148 93.109 20 943 14.458 31.079 20.404 Feb .6615 222.72 3.8681 2.0147 92.943 20.967 14.460 31.081 20.404 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 r o el u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) ( M do a si l l a l a a y r - ) M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - s r) ( Z p e N o a u e la w n n d d ) 1959 23.926 21.031 280.88 .16099 .27781 32.857 8.0056 26.492 278.10 I960 23.976 20.968 280.76 .16104 .27785 32.817 8.0056 26.513 277.98 1961 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 1963 25,084 20.966 280.00 .16087 .27663 32.664 8.0056 27.770 in.12 1964 25.157 20.923 279.21 .16014 .27625 32 566 8.0056 27.724 276 45 1964—Feb 25.169 20.959 279.69 .16063 .27567 32.694 8.0056 27.733 276.92 Mar 25.163 20.968 279.81 .16029 .27603 32.645 8.0056 27.731 277.04 Apr 25.160 20.970 279.90 .16000 .27583 32.595 8.0056 27.711 277.13 May 25.159 20.977 279.94 .16001 .27579 32.606 8.0056 27.681 277.17 25.165 20.945 279.42 .16002 .27580 32.571 8.0056 27.627 276.65 July 25.159 20.912 278.97 .16001 .27576 32.524 8.0056 27.657 276.21 25.152 20.886 278.66 .16002 .27580 32.474 8.0056 27.674 275.91 SeDt 25.154 20.862 278.34 .16002 .27665 32.431 8.0056 27.712 275.59 Oct 25.158 20.859 278.35 .16003 .27658 32.467 8.0056 27.772 275.59 Nov 25.148 20.867 278.48 .16003 .27686 32.507 8.0056 27.824 275.73 Dec 25.149 20.898 279.06 .16003 .27837 32.569 8.0056 27.831 276.30 1%5—Jan 25.135 20.894 279.13 .16003 .27856 32 575 8.0056 27.827 276.37 Feb 25.137 20.915 279.51 .16003 .27830 32.602 8.0056 27.825 276.75 Period N (k o r r o w n a e y ) R P ( e p p h p e i i u n l s i b o e p l ) - ic (e P s o g c r a u t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e S fr r w a la n it n c - d ) ( U p K d o n i o u n i m t n g e d - d ) 1959 14.028 49 721 3 4967 279 83 ? ns70 19.324 23 142 280 88 I960 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 1963 13.987 3.4891 139 48 6664 19.272 23.139 280 00 1964 13.972 3.4800 139.09 .6663 19.414 23.152 279.21 1964—Feb 13.962 3.4848 139.32 .6664 19.290 23.122 279.69 Mar 13.976 3.4867 139.38 .6663 19.430 23.110 279.81 Apr 13.989 3.4879 139.43 .6664 19.451 23.143 279.90 May 13.992 3.4874 139.45 .6664 19.464 23.171 279.94 June 13.984 3.4847 139.19 .6663 19.467 23.172 279.42 July 13.972 3.4796 138.96 1.6663 19.441 23.139 278.97 Aug 13.962 3.4746 138.81 1.6662 19.466 23.145 278.66 Sept 13.956 3.4714 138.65 1.6661 19.461 23.148 278.34 Oct 13.956 3.4680 138.65 1.6662 19.376 23.164 278.35 Nov 13.956 3.4686 138.72 [.6665 19.396 23.172 278.48 Dec 13 980 3.4777 139.01 1.6666 19.439 23.172 279.06 1965 Jan 13 977 3 4783 139 05 I 6665 19 465 23 149 279 13 Feb 13 982 3.4826 139.23 I 6665 19.469 23.102 279.51 1 A new markka, equal to 100 old markkaa, was introduced on Jan. 1, NOTE.—Averages of certified noon buying rates in New York for 1963. cable transfers. For description of rates and back data, see "International 2 Effective Jan. lt 1963, the franc again became the French monetary Finance," Section 15 of Supplement to Banking and Monetary Statistics, unit. It replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 U.S. BALANCE OF PAYMENTS MARCH 1965 U.S. BALANCE OF PAYMENTS (In millions of dollars) 1963 1964 Item 1961 1962 1963 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 i 28,438 30,084 32,020 7,977 8,037 8,471 9,000 8,839 9,164 Merchandise 19,913 20,576 21,989 5,472 5,610 5,917 6,112 6,036 6,362 Military sales 402 656 659 206 117 155 210 151 179 Investment income receipts, private 3,464 3,850 3,969 969 963 1,001 1,225 1,194 1,164 Investment income receipts, Govt 380 471 498 124 125 126 131 132 133 Other services 4,279 4,531 4,905 1,206 1,222 1,272 1,322 1,326 1,326 Imports of goods and services—Total. -22,852 -25,021 -26,335 -6,531 -6,733 -6,744 -6,748 -7,008 -7,201 Merchandise -14,497 -16,134 -16,996 -4,212 -4,368 -4,379 -4,366 -4,576 -4,747 Military expenditures -2,954 -3,044 -2,897 -731 -711 -708 -717 -728 -684 Investment income payments -882 -995 -1,194 -279 -308 -332 -317 -319 -326 Other services -4,519 -4,848 -5,248 -1,309 -1,346 -1,325 -1,348 -1,385 -1,444 Balance on goods and services l. 5,586 5,063 5,685 1,446 1,304 1,727 2,252 1,831 1,963 Remittances and pensions -705 -738 -826 -209 -206 -202 -197 -208 -214 1. Balance on goods, services, remittances and pensions 4,881 4,325 4,859 1,237 1,098 1,525 2,055 ! 1,623 1,749 2. U.S. Govt. grants and capital flow, net, excluding advance debt repayments -3,396 -3,547 -3,785 -1,170 -791 -925 -773 -939 -890 Grants 2, 3 -1,854 -1,919 -1,896 -500 -455 -496 -467 -549 -459 Long-term loans and subscriptions 3 -1,939 -2,129 -2,181 -620 -441 -562 -514 -693 -606 Change in foreign currency holdings and short-term claims, net (increase, —) 3 -261 -245 -445 -261 -33 -101 75 66 56 Seasonal adjustment on three preceding items combined 45 -80 42 -22 46 -66 Change in associated liabilities 147 94 10 35 29 -9 36 14 Scheduled loan repayments 578 599 643 156 183 163 164 155 171 3. U.S. private capital, net -4,180 -3,434 -4,307 -1,637 -534 -1,008 -1,380 -1,451 -1,408 Direct investments abroad. -1,599 -1,654 -1,888 -477 -235 -558 -521 -571 -519 Other long-term capital. . . -1,025 -1,227 -1,685 -598 -303 -238 -227 -263 -586 Short-term capital -1.556 -553 -734 -562 4 -212 -632 -617 -303 4. Foreign capital, net, excluding liquid assets in U.S 622 162 311 267 115 -47 26 130 159 Foreign long-term investments in U.S 447 272 329 199 96 29 13 114 -88 Foreign short-term capital 175 -106 -19 67 17 -74 9 17 43 Miscellaneous U.S. Govt. nonliquid liabilities 1 2 _2 4 -1 204 -4 1 5. Errors and unrecorded transactions. -998 -11 -267 57 -170 -54 -176 -1,111 -339 Balance of A (= 1+2+3+4+5) -3,071 -1,314 -379 -398 -242 -691 -566 Less: Net seasonal adjustments -3,605 -3,261 -102 441 18 -311 -104 450 Balance of A before seasonal adjustment. . . -1,212 -820 -416 69 -587 -1,016 -3^665' 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 3,071 3,605 3,261 1,212 820 416 -69 587 1,016 Advance repayments on U.S. Govt. loans4. 696 681 326 34 241 26 52 33 30 Advances on U.S. military exports, net 5 470 334 <r 80 239 151 -64 -24 Sales of nonconvertible nonmarketable securities^ net 251 -43 -10 -95 -1 -55 -2 Dollar securities6 31 19 -45 -5 -2 Foreign currency securities 251 -74 -29 -50 -50 Sales of convertible nonmarketable securities,5 net. 702 152 175 25 122 203 Dollar securities 150 25 Foreign currency securities 552 150 "25 122 "203" Change in U.S. short-term liabilities reported by U-.-S.- b-an-k- s! and foreign holdings of marke:ett cabie U.S. Govt. bonds and notes 1,764 670 1,564 917 192 132 -166 201 739 International and regional organizations 8 . 407 211 -238 -46 -15 -112 -85 -25 -138 Foreign private holders excluding banks9. 81 131 394 115 93 110 34 54 122 Foreign commercial banks 595 -129 438 75 -31 8 284 80 574 Foreign official holders 681 457 970 773 145 126 -399 92 181 Change in U.S. monetary reserve assets (increase, — ). 606 1,533 378 124 227 c -51 303 70 IMF position -135 626 30 2 59 15 131 118 135 Convertible currencies -116 17 -113 6 -28 -58 -228 258 -45 Gold 857 890 461 116 196 38 46 -73 -20 1 Excludes military transfers under grants. 7 Includes official liabilities. 2 Excludes military grants. 8 Includes, for International Monetary Fund, only changes in its 3 Not seasonally adjusted separately. holdings of income-earning U.S. Govt. securities. * Includes sell-offs. 9 Including undetermined holders. 5 With maturities over 12 months. NOTE.—Dept. of Commerce data. Minus sign indicates net payments 6 Includes certificates sold abroad by Export-Import Bank. (debits); absence of sign indicates net receipts (credits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1965 FOREIGN TRADE 511 MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports i Imports 2 Export surplus Period 1962 1963 1964 1965 1962 1963 1964 1965 1962 1963 1964 ' 1965 Month: Jan 1.668 3 986 2,043 3 1,220 1.327 3 1,100 1,434 3 1,206 341 3-114 609 3 14 Feb 809 3 2 124 2 046 I 320 3 1 510 1 460 489 3 614 586 Mar 1,672 3 1,958 2,074 1,342 3 1,485 1,520 330 3 473 554 Apr 1,795 3 1 914 2,061 1,365 3 1,415 1,541 430 3 499 520 May 1,762 ,895 2,062 ,404 1,416 1,539 358 479 523 June 1,836 ,803 2,034 1,351 1,431 1,518 485 372 516 July I 748 841 2 123 I 347 1 450 1 578 401 391 545 AUR . . .... 701 ,922 2,109 146 1,497 1,575 357 425 534 Sept 3 1J908 ,958 2,235 3M71 1,443 1,546 3 437 515 689 Oct 31,523 ,967 2,155 31,312 1,455 1,548 3 211 512 607 Nov 1,725 966 2,197 1,425 1,466 1,698 300 500 499 Dec 3 1,839 2,091 2,430 3 1,377 1,480 1,642 3 462 611 788 Quarter: I 5,149 3 5,068 6,163 3,989 3 4,095 4,414 1,160 3973 1,749 II 5,393 35,612 6,157 4,120 3 4,262 4,598 1,273 3 1,350 1,559 in 3 5,359 5,721 6,467 34,164 4,390 4,699 3 1,195 1,331 1,768 IV 3 5,087 6,024 6,782 34,114 4,401 4,888 3 973 1,623 1,894 Year 4 20,945 22,424 25,620 16,389 17,142 18,685 4,556 5,282 6,935 1 Exports 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS of the Federal Reserve System WM. MCC. MARTIN, JR., Chairman C. CANBY BALDERSTON, Vice Chairman J. L. ROBERTSON GEORGE W. MITCHELL CHAS. N. SHEPARDSON J. DEWEY DAANE RALPH A. YOUNG, Adviser to the Board GUY E. NOYES, 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 KENNETH A. KENYON, Assistant Secretary FREDERIC SOLOMON, Director ELIZABETH L. CARMICHAEL, Assistant Secretary GLENN M. GOODMAN, Assistant Director ARTHUR L. BROIDA, Assistant Secretary BRENTON C. LEAVITT, Assistant Director KARL E. BAKKE, Assistant Secretary JAMES C. SMITH, Assistant Director LEGAL DIVISION ANDREW N. THOMPSON, Assistant Director HOWARD H. HACKLEY, General Counsel LLOYD M. SCHAEFFER, Chief Federal Reserve DAVID B. HEXTER, Assistant General Counsel Examiner THOMAS J. O'CONNELL, Assistant General Counsel DIVISION OF PERSONNEL ADMINISTRATION JEROME W. SHAY, Assistant General Counsel WILSON L. HOOFF, Assistant General Counsel EDWIN J. JOHNSON, Director DIVISION OF RESEARCH AND STATISTICS H. FRANKLIN SPRECHER, JR., Assistant Director DANIEL H. BRILL, Director ROBERT C. HOLLAND, Associate Director DIVISION OF ADMINISTRATIVE SERVICES ALBERT R. KOCH, Associate Director FRANK R. GARFIELD, Adviser JOSEPH E. KELLEHER, Director J. CHARLES PARTEE, Adviser HARRY E. KERN, Assistant Director ROBERT SOLOMON, Adviser KENNETH B. WILLIAMS, Adviser LEWIS N. DEMBITZ, Associate Adviser OFFICE OF THE CONTROLLER DIVISION OF INTERNATIONAL FINANCE JOHN KAKALEC, Controller RALPH A. YOUNG, Director A. B. HERSEY, Adviser SAMPSON H. BASS, Assistant Controller SAMUEL I. KATZ, Adviser ROBERT L. SAMMONS, Adviser REED J. IRVINE, Associate Adviser OFFICE OF DEFENSE PLANNING JOHN E. REYNOLDS, Associate Adviser INNIS D. HARRIS, Coordinator RALPH C. WOOD, Associate Adviser 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 512 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET COMMITTEE AND ADVISORY COUNCIL 51_3 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON GEORGE H. ELLIS J. L. ROBERTSON MALCOLM BRYAN GEORGE W. MITCHELL CHARLES J. SCANLON J. DEWEY DAANE CHAS. N. SHEPARDSOIN RALPH A. YOUNG, Secretary ERNEST T. BAUGHMAN, Associate Economist MERRITT SHERMAN, Assistant Secretary DANIEL H. BRILL, Associate Economist KENNETH A. KENYON, Assistant Secretary GEORGE GARVY, Associate Economist ARTHUR L. BROIDA, Assistant Secretary ROBERT C. HOLLAND, Associate Economist HOWARD H. HACKLEY, General Counsel ALBERT R. KOCH, Associate Economist DAVID B. HEXTER, Assistant General Counsel CHARLES T. TAYLOR, Associate Economist GUY E. NOYES, Economist PARKER B. WILLIS, Associate Economist ROBERT W. STONE, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account Federal Advisory Council LAWRENCE H. MARTIN, BOSTON, Vice President EDWARD BYRON SMITH, CHICAGO WILLIAM H. MOORE, NEW YORK JAMES P. HICKOK, ST. LOUIS WILLIAM L. DAY, PHILADELPHIA JOHN A. MOORHEAD, MINNEAPOLIS, President L. A. STONER, CLEVELAND ROGER D. KNIGHT, JR., KANSAS CITY JOHN F. WATLINGTON, JR., RICHMOND JAMES W. ASTON, DALLAS SAM M. FLEMING, ATLANTA RANSOM M. COOK, SAN FRANCISCO HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 FEDERAL RESERVE BULLETIN • MARCH 1965 Federal Reserve Banks and Branches Federal Reserve Bank Chairman President Vice President or branch Deputy Chairman First Vice President in charge of branch Zip Code Boston ...02106 Erwin D. Canham George H. Ellis William Webster Earle O. Latham New York 10045 Philip D. Reed Alfred Hayes Everett N. Case William F. Treiber Buffalo ...14240 Maurice R. Forman Insley B. Smith Philadelphia 19101 Walter E. Hoadley Karl R. Bopp Willis J. Winn Robert N. Hilkert Cleveland , 44101 Joseph B. Hall W. Braddock Hickman Logan T. Johnston Edward A. Fink Cincinnati 45201 Walter C. Langsam Fred O. Kiel Pittsburgh ...15230 G. L. Bach Clyde E. Harrell Richmond 23213 Edwin Hyde Edward A. Wayne William H. Grier Aubrey N. Heflin Baltimore 21203 Leonard C. Crewe, Jr. Donald F. Hagner Charlotte ...28201 J. C. Cowan, Jr. Edmund F. MacDonald Atlanta ...30303 Jack Tarver Malcolm Bryan J. M. Cheatham Harold T. Patterson Birmingham.... 35202 C. Caldwell Marks Edward C. Rainey Jacksonville 32201 Claude J. Yates Thomas A. Lanford Nashville • 37203 Andrew D. Holt Robert E. Moody, Jr. New Orleans ...70160 George Benjamin Blair Morgan L. Shaw Chicago ...60690 Franklin J. Lunding Charles J. Scanlon James H. Hilton Hugh J. Helmer Detroit ...48231 James William Miller Russel A. Swaney St. Louis 63166 Raymond Rebsamen Harry A. Shuford Smith D. Broadbent, Jr. Darryl R. Francis Little Rock 72203 Carey V. Stabler Fred Burton Louisville 40201 C. Hunter Green Donald L. Henry Memphis ...38101 Sam Cooper E. Francis DeVos Minneapolis 55440 Atherton Bean (Vacancy) Judson Bemis M. H. Strothman, Jr. Helena ...59601 Edwin G. Koch Clement A. Van Nice Kansas City 64106 Homer A. Scott George H. Clay Dolph Simons Henry O. Koppang Denver 80217 Robert T. Person John W. Snider Oklahoma City.. 73101 James E. Allison Howard W. Pritz Omaha ...68102 Clifford Morris Hardin George C. Rankin Dallas ...75222 Robert O. Anderson Watrous H. Irons Carl J. Thomsen Philip E. Coldwell El Paso 79999 Roger B. Corbett Fredric W. Reed Houston 77001 D. B. Campbell J. Lee Cook San Antonio.......78206 John R. Stockton Carl H. Moore San Francisco 94120 F. B. Whitman Eliot J. Swan John D. Fredericks H. Edward Hemmings Los Angeles ,90054 Arthur G. Coons Clifford H. Watkins Portland ,..97208 Graham J. Barbey William M. Brown Salt Lake City......84110 Howard W. Price Arthur L. Price Seattle ,..98124 William McGregor Erwin R. Barglebaugh Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications The material listed may be obtained from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System. For a more complete list, including periodic releases, see pp. 1623-26 of the December 1964 BULLETIN. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND DEBITS AND CLEARINGS STATISTICS AND THEIR FUNCTIONS. 1963. 297 pp. USE. 1959. 144 pp. $1.00 a copy; in quantities of 10 or more sent to one address, $.85 each. ANNUAL REPORT OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. THE FEDERAL FUNDS MARKET—A Study by a Federal Reserve System Committee. 1959. Ill FEDERAL RESERVE BULLETIN. Monthly. $6.00 pp. $1.00 a copy; in quantities of 10 or more per annum or $.60 a copy in the United States sent to one address, $.85 each. and its possessions, Bolivia, Canada, Chile, Colombia, Costa Rica, Cuba, Dominican Re- ALL-BANK STATISTICS, 1896-1955. 1959. 1,229 pp. public, Ecuador, Guatemala, Haiti, Republic $4.00. of Honduras, Mexico, Nicaragua, Panama, INDUSTRIAL PRODUCTION—1957-59 Base. 1962. Paraguay, Peru, El Salvador, Uruguay, and 172 pp. $1.00 a copy; in quantities of 10 or Venezuela. (In quantities of 10 or more of more sent to one address, $.85 each. (The 1959 same issue sent to one address, $5.00 per annum revision available at $.50 a copy.) or $.50 each.) Elsewhere, $7.00 per annum or $.70 a copy. THE FEDERAL RESERVE ACT, as amended through Oct. 1, 1961, with an appendix containing pro- FEDERAL RESERVE CHART BOOK ON FINANCIAL visions of certain other statutes affecting the AND BUSINESS STATISTICS. Monthly. Annual Federal Reserve System. 386 pp. $1.25. subscription includes one issue of Historical Chart Book. $6.00 per annum or $.60 a copy SUPPLEMENT TO BANKING AND MONETARY STATISin the United States and the countries listed TICS. Sec. 1. Banks and the Monetary System. above. (In quantities of 10 or more of same 1962. 35 pp. $.35. Sec. 10. Member Bank Reissue sent to one address, $.50 each.) Else- serves and Related Items. 1962. 64 pp. $.50. where, $7.00 per annum or $.70 a copy. Sec. 11. Currency. 1963. 11 pp. $.35. Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. International HISTORICAL CHART BOOK. Issued annually in Sept. Finance. 1962. 92 pp. $.65. Subscription to monthly chart book includes one issue. $.60 a copy in the United States and REGULATIONS OF THE BOARD OF GOVERNORS OF the countries listed above. (In quantities of 10 THE FEDERAL RESERVE SYSTEM. or more sent to one address, $.50 each.) Elsewhere, $.70 a copy. RULES OF ORGANIZATION AND PROCEDURE—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYS- TREASURY-FEDERAL RESERVE STUDY OF THE GOV- TEM. 1962. 40 pp. ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 PUBLISHED INTERPRETATIONS of the Board of pp. Individual books $1.00 each; set of 3, $2.50. Governors, as of Mar. 31, 1964. $2.50. FLOW OF FUNDS IN THE UNITED STATES, 1939-53. FARM DEBT: Data from the 1960 Sample Survey 1955. 390 pp. $2.75. of Agriculture. 1964. 185 pp. $1.00. 515 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 FEDERAL RESERVE BULLETIN • MARCH 1965 REPRINTS FLOWS THROUGH FINANCIAL INTERMEDIARIES. (From Federal Reserve BULLETIN unless preceded May 1964. 9 pp. by an asterisk) BANKING AND MONETARY STATISTICS, 1963. Se- THE HISTORY OF RESERVE REQUIREMENTS FOR lected series of banking and monetary statis- BANKS IN THE UNITED STATES. NOV. 1938. tics for 1963 only. Feb., Mar., and May 1964. 20 pp. 15 pp. "Part I, ALL-BANK STATISTICS, 1896-1955. Re- REVISION OF THE MONEY SUPPLY SERIES. June print of the U.S. Summary containing a de- 1964. 14 pp. scription of revised statistics for all banks in the United States, by class of bank, together REVISION OF BANK CREDIT SERIES. June 1964. with revised statistics. Apr. 1959. 94 pp. 5 pp. STATISTICS ON THE GOVERNMENT SECURITIES RECENT MONETARY AND CREDIT DEVELOPMENTS. MARKET. Apr. 1961. 8 pp. July 1964. 9 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. FEDERAL RESERVE SECURITY TRANSACTIONS, 1961. 15 pp. 1954-63. July 1964. 16 pp. REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. NEW SERIES ON FEDERAL FUNDS. Aug. 1964. 1961.3 pp. 31pp. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. 1962. 10 pp. MINISTERIAL STATEMENT OF THE GROUP OF TEN AND ANNEX PREPARED BY DEPUTIES. Aug. CHANGES IN STRUCTURE OF THE FEDERAL DEBT. 1964.25 pp. Mar. 1963. 10 pp. U.S. BALANCE OF PAYMENTS, 1963-64. Oct. 1964. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT. 8 pp. Apr. 1963. 11 pp. NEW FOREIGN BOND ISSUES IN THE U.S. YIELD DIFFERENTIALS IN TREASURY BILLS, 1959- 64. Oct. 1964.20 pp. MARKET. May 1963. 13 pp. BANK LOANS SECURED BY STOCKS AND BONDS. U.S. GOVERNMENT SECURITIES in 1964. Nov. July 1963. 19 pp. 1964. 8 pp. A BANK EXAMINER LOOKS AT AGRICULTURAL RESEARCH INTO BANKING STRUCTURE AND COM- LENDING. July 1963. 8 pp. PETITION. Nov. 1964. 17 pp. MEASURING AND ANALYZING ECONOMIC GROWTH. Aug. 1963. 14 pp. BANK CREDIT AND MONETARY DEVELOPMENTS IN 1964. Feb. 1965. 13 pp. BANK AND PCA LENDING TO FARMERS. Sept. 1963. 11pp. BANK CREDITS TO FOREIGNERS. Mar. 1965. 10 pp. THE OPEN MARKET POLICY PROCESS. Oct. 1963. 11pp. BALANCE OF PAYMENTS PROGRAM: GUIDELINES FOR BANKS AND NONBANK FINANCIAL INSTITU- RECENT INTEREST RATE TRENDS. NOV. 1963. TIONS. Mar. 1965. 6 pp. 10 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX- SURVEY OF FINANCIAL CHARACTERISTICS OF CON- SUMERS. Mar. 1964. 9 pp. CHANGE OPERATIONS. Mar. 1965. 13 pp. U.S. TRADE AND PAYMENTS IN 1963. Apr. 1964. REVISION OF BANK DEBITS AND DEPOSIT TURN- 7 pp. OVER SERIES. Mar. 1965. 4 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Statistical Tables (For list of tables published quarterly, semiannually, or annually, with latest BULLETIN reference, see page 428.) Acceptances, bankers', 437, 454, 456 Deposits—Continued Agricultural loans of commercial banks, 448, 450 Postal savings, 436, 443 Arbitrage, 508 Discount rates, 435, 507 Assets and liabilities (See also Foreign liabilities and Discounts and advances by Federal Reserve claims): Banks, 430, 438, 440 Banks and the monetary system, consolidated, 443 Dividends, corporate, 467, 468 Corporate, current, 468 Dollar assets, foreign, 497, 505 Domestic banks, by classes, 444, 448, 450 Federal Reserve Banks, 438 Earnings and hours, manufacturing industries, 483 Automobiles: Employment, 480, 482, 483 Consumer instalment credit, 472, 473, 474 Production index, 476, 477 Farm mortgage loans, 469, 470 Federal finance: Bankers' balances, 449, 451 Cash transactions, 458 (See also Foreign liabilities and claims) Receipts and expenditures, 459 Banks and the monetary system, consolidated Treasurer's balance, 458 statement, 443 Federal funds, 434 Banks for cooperatives, 463, 464 Federal home loan banks, 463, 464, 471 Bonds (See also U.S. Govt. securities): Federal Housing Administration, 455, 469, 470, 471 New issues, 464, 465, 466 Federal intermediate credit banks, 463, 464 Prices and yields, 454, 455 Federal land banks, 463, 464 Brokers and dealers in securities, bank Federal National Mortgage Assn., 463, 464, 471 loans to, 448, 450 Federal Reserve Banks: Business expenditures on new plant and equipment, 468 Condition statement, 438 Business indexes, 480 U.S. Govt. securities held by, 430, 438, 440, Business loans (See Commercial and industrial loans) 460, 461 Federal Reserve credit, 430, 438, 440, 490 Capital accounts: Federal Reserve notes, 438, 441 Banks, by classes, 444, 449, 452 Federally sponsored credit agencies, 463, 464 Federal Reserve Banks, 438 Finance company paper, 454, 456 Carloadings, 480 Financial institutions, loans to, 448, 450 Central banks, foreign, 494, 507 Float, 430 Coins, circulation of, 441 Flow of funds, 488 Commercial and industrial loans: Foreign central banks, 494, 507 Commercial banks, 448 Foreign currency operations, 438, 440, 496, 504 Weekly reporting member banks, 450, 453 Foreign deposits in U.S. banks, 430, 438, 439, Commercial banks: 449, 452, 505 Assets and liabilities, 444, 447, 448 Foreign exchange rates, 509 Consumer loans held, by type, 473 Foreign liabilities and claims: Number, by classes, 444 Banks, 498, 500, 501, 503, 505 Real estate mortgages held, by type, 469 Nonfinancial concerns, 506 Commercial paper, 454, 456 Foreign trade, 511 Condition statements (See Assets and liabilities) Construction, 480, 481 Gold: Consumer credit: Certificates, 438, 441 Instalment credit, 472, 473, 474, 475 Earmarked, 505 Noninstalment credit, by holder, 473 Net purchases by U.S., 496 Consumer price indexes, 480, 484 Production, 495 Consumption expenditures, 486, 487 Reserves of central banks and govts., 494 Corporations: Reserves of foreign countries and international Sales, profits, taxes, and dividends, 467, 468 organizations, 497 Security issues, 465, 466 Stock, 430, 443, 496 Security prices and yields, 454, 455 Gross national product, 486, 487 Cost of living (See Consumer price indexes) Currency in circulation, 430, 441, 442 Hours and earnings, manufacturing industries. 483 Customer credit, stock market, 455 Housing starts, 481 Debits to deposit accounts, 440 Income, national and personal, 486 Debt (See specific types of debt or securities) Industrial production index, 476, 480 Demand deposits: Instalment loans, 472, 473, 474, 475 Adjusted, banks and the monetary system, 443 Adjusted, commercial banks, 440, 442, 449 Insurance companies, 457, 460, 461 ? 470 Banks, by classes, 436, 444, 452 Insured commercial banks, 446, 448 Turnover of, 440 Interbank deposits, 436, 444, 449 Type of holder, at commercial banks, 449 Interest rates: Deposits (See also specific types of deposits): Bond yields, 454 Adjusted, and currency, 443 Business loans by banks, 453 Banks, by classes, 436, 444, 449, 452, 456 Federal Reserve Bank discount rates, 435 Federal Reserve Banks, 438, 505 Foreign countries, 507, 508 517 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 FEDERAL RESERVE BULLETIN • MARCH 1965 Interest rates—Continued Reserves: Money market rates, 454, 508 Central banks and govts., 494 Mortgage yields, 455 Commercial banks, 449 Stock yields, 454 Federal Reserve Banks, 438 Time deposits, maximum rates, 436 Foreign countries and international organizations, 497 International capital transactions of the U.S., 498 Member banks, 430, 432, 436, 449, 451, 490 International institutions, 494, 496, 497 Residential mortgage loans, 469, 470, 471 Inventories, 486 Retail credit, 472 Investment companies, new issues, 466 Retail sales, 480 Investments (See also specific types of investments): Sales finance companies, consumer loans of, 472, Banks, by classes, 444, 448, 451, 456 473, 475 Commercial banks, 447 Saving: Federal Reserve Banks, 438, 440 Flow of funds series, 488 Life insurance companies, 457 National income series, 487 Savings and loan assns., 457 Savings and loan assns., 457, 461, 470 Savings deposits (See Time deposits) Labor force, 482 Savings institutions, principal assets, 456, 457 Loans (See also specific types of loans): Securities (See also U.S. Govt. securities): Banks, by classes, 444, 448, 450, 456 Federally sponsored agencies, 463 Commercial banks, 447 International transactions, 504, 505 Federal Reserve Banks, 430, 438, 440, 490 New issues, 464, 465, 466 Insurance companies, 457, 470 Silver coin and silver certificates, 441 Insured or guaranteed by U.S., 469, 470, 471 State and local govts.: Savings and loan assns., 457, 470 Deposits of, 449, 452 Holdings of U.S. Govt. securities, 460, 461 Manufacturers, production index, 477, 480 New security issues, 464, 465 Margin requirements, 436 Ownership of obligations of, 448, 456, 457 Member banks: Prices and yields of securities, 454, 455 Assets and liabilities, by classes, 444, 448 State member banks, 446 Borrowings at Federal Reserve Banks, 432, 438, Stock market credit, 455 452, 490 Stocks: Deposits, by classes, 436 New issues, 465, 466 Number, by classes, 445 Prices and yields, 454, 455 Reserve position, basic, 434 Reserve requirements, 436 Tax receipts, Federal, 459 Reserves and related items, 430, 490 Time deposits, 436, 442, 443, 444, 449, 452 Weekly reporting series, 450 Treasurer's account balance, 458 Mining, production index, 477, 480 Treasury cash, 430, 441, 443 Money rates (See Interest rates) Treasury currency, 430, 441, 443 Money supply and related data, 442 Treasury deposits, 430, 438, 458 Mortgages (See Real estate loans) Turnover, deposit, 440 Mutual funds, 466 Mutual savings banks, 443, 444, 446, 456, 460, 461, 469 Unemployment, 482 U.S. balance of payments, 510 National banks, 446 U.S. Govt. balances: Commercial bank holdings, by classes, 449, 452 National income, 486, 487 Consolidated monetary statement, 443 National security expenditures, 459, 486 Treasury deposits at Federal Reserve Nonmember banks, 446, 448, 449 Banks, 430, 438, 458 U.S. Govt. securities: Open market transactions, 437 Bank holdings, 443, 444, 448, 451, 456, 460, 461 Dealer transactions, positions, and financing, 462 Payrolls, manufacturing, index, 480 Federal Reserve Bank holdings, 430, 438, 440, Personal income, 487 460, 461 Postal Savings System, 436, 443 Foreign and international holdings, 438, 497, 505 Prices: International transactions, 504 Consumer, 480, 484 New issues, gross proceeds, 465 Security, 455 Open market transactions, 437 Wholesale commodity, 480, 484 Outstanding, by type of security, 460, 461, 463 Production, 476, 480 Ownership of, 460, 461 Profits, corporate, 467, 468 Prices and yields, 454, 455, 508 United States notes, outstanding and in circulation, 441 Real estate loans: Utilities, production index, 477, 480 Banks, by classes, 448, 456, 469 Mortgage yields, 455 Vault cash, 430, 436, 449 Type of holder, 469, 470, 471 Veterans Administration, 469, 470, 471 Type of property mortgaged, 469, 470, 471 Reserve position, basic, member banks, 434 Weekly reporting member banks, 450 Reserve requirements, member banks, 436 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 ° THE FEDERAL RESERVE SYSTEM °) Legend Boundaries of Federal Reserve Districts boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis