Federal Reserve Bulletin, 1965-08

FEDERAL RESERVE B U LLETIN August 196 £ Volume 51 * Number 8 * * * * *•»* 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 B U LLETIN Contents Interest Rates in Capital Markets 1053 Statements to Congress 1066 Law Department 1084 Announcements 1105 National Summary of Business Conditions 1106 Guide to Tabular Presentation 1108 Financial and Business Statistics, U.S. (Contents on p. 1109) 1110 International Financial Statistics (Contents on p. 1173) 1174 Board of Governors and Staff 1192 Open Market Committee and Staff; Federal Advisory Council 1193 Federal Reserve Banks and Branches 1194 Federal Reserve Board Publications 1195 Index to Statistical Tables 1197 Map of Federal Reserve System Inside back cover E D I T O R I AL C O M MI T T E E 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

INTEREST RATES IN CAPITAL MARKETS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1053 A fter fluctuating in a narrow range for more than a year, long-term interest rates have been subject to upward pressures at times this year. In the spring and early summer, pressures were pronounced mainly in the corporate bond market, where yields on top-quality new issues rose to the highest levels in 4 years. Yields on State and local government bonds turned up sharply after February, but most of their advance represented a reversal of the abrupt decline that had occurred late in 1964. Meanwhile, yields on mortgages and U.S. Government bonds showed little change during the first half of 1965. CHART 1 YIELDS on some long-term securities rise this year PER CENT PER ANNUM STATE AND LOCAL GOVT.- TAX EQUIVALENT BASIS FHA-INSURED MORTGAGES _ CORPORATE NEW ISSUES U.S. GOVT. 20-YR. MATURITY NOTE.—Monthly averages, except for FHA (based on quotation for 1 day each month). Yields on FHA-insured mortgages are weighted averages of private secondary market prices of certain new-house mortgages converted to annual yield; on State and local govt. Aaa bonds, are from Moody's Investors Service, adjusted to tax-equivalent basis assuming corporate income tax rate; on corporate bonds, are weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to an Aaa basis. Thinner segments of line for FHA-insured indicate periods of adjustment to changes in contractual interest rate. Break for corporate new issues, indicates no eligible offerings. Latest figures shown, July. Since midyear, earlier advances have been maintained, and recently some yields—including those on U.S. Government bonds— have moved up further. These recent advances appear largely to reflect market sensitivity to international uncertainties, including both financial developments and the situation in Viet-Nam. These differential changes in capital market yields have modified somewhat the structure of long-term rates. As shown in Chart 2, yield spreads among capital market instruments had narrowed steadily from 1961 through 1963 and then tended to stabilize in 1964. Shifts this year have further narrowed the yield differential between corporate bonds and higher yielding mortgages to a record low. On the other hand, the spread between corporate and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • AUGUST 1965 1054 lower yielding U.S. Government bonds has widened to the largest margin since early 1962. These shifts have been attributable primarily to changes in the intensity of demands for funds in different market sectors. They have also reflected to some extent actual and expected changes in supplies of funds, particularly from commercial banks. With increases in total credit remaining large, however, the underlying trends that led to the narrowing of spreads in the long-term rate structure from 1961 to 1964 do not as yet seem to have been reversed. In general, rapid economic expansion over the past 4 years has substantially enlarged total flows of savings. At the same time more vigorous rate competition among different types of financial intermediaries has greatly expanded the share of total saving channeled through these institutions. To invest these relatively high-cost inflows, most intermediaries have widened the range of their investments and have sought higher yielding instruments, thus causing the general compression of rates already noted. DEMANDS FOR • • u • A A e t A U U ±U + A FUNDS expansion in business demands for funds has been the most important force operating to raise interest rates in capital markets this year, as pressures from other major users of long-term funds have either remained stable or tended to moderate. The influence of business financing needs on long-term rates has been exerted both directly through stepped-up offerings in corporate securities markets, and indirectly through the impact of increased business borrowing at commercial banks, which has had the effect of reducing bank participation in markets for long-term instruments. Needs for external business financing. Nonfinancial corporations have increased their capital market financing this year in part because of the sharp rise in investment outlays on plant and equipment and inventories. During earlier years of the current economic upswing, internal funds available to these corporations from depreciation allowances and retained earnings, augmented by a combination of liberalized Federal tax policies and by rising profits, had financed an unusually large share of corporate investment needs. But beginning in late 1964, as is shown in Chart 3, the relative growth of investment outlays, including those for inventories, has been more rapid. This expanded need for corporate external financing developed despite the second stage of the cut in corporate income tax rates, which became effective at the start of 1965. Partly offsetting this cut was the further speed-up of corporate income tax payments under the pay-as-you-go provisions of the new tax law, which reduced corporate liquidity and helped to create a need for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • AUGUST 1965 1056 end of 1962, bank financing of this type has totaled about $1.5 billion, with nearly half offered in the first 6 months of 1965. Corporate securities market. Interest rate pressures created by the spring upswing in long-term business financing were most apparent in the market for new publicly offered corporate bonds. From late January to mid-June the average yield on such issues, adjusted to an Aaa basis, rose more than one-fourth of a percentage point to 4.60 per cent, the highest level since the spring of 1961. CHART 3 CAPITAL INVESTMENT rises faster than internal funds for nonfinancial corporations PER CENT 11963=100] - 130 Ihiii - 120 '''I! I INTERNAL ill! FUNDS CAPITAL - 110 IN IN VE C S t, T P M 1A E N N 1 T • 1 t'll! ! ! P Hi I ill EQUIPMENT, « ill 'hhi! iiliii i in! I I iiliiii 1964 1965 NOTE. Flow of funds data. Quarterly figures, seasonally adjusted at annual rates, expressed as a percentage of 1963 total for each series. Capital investment also includes residential construction by business. Internal funds include retained earnings and capital consumption allowances. Capital market financing by business corporations normally peaks in the second quarter of the year, as shown in Chart 4. But this year the upsurge was considerably more than seasonal. At $4.0 billion, gross new offerings of bonds were the largest for any quarter on record and more than $500 million above the previous peak in the second quarter of 1961. Although the volume of all securities offered in the second quarter this year did not quite reach the amounts issued in 1961 and 1964, totals for both of those years reflected large "rights" offerings of common stock, which exerted little upward pressure on bond yields. Another factor in the rise of yields was an increase in the importance of public bond offerings, which tend to have more immediate impact on market yields than do private placements. During the second half of 1964, the share of total corporate bond financing offered publicly had dropped to a low of 25 per cent. In 1965, although private placements of bonds continued to rise, public offerings showed a marked resurgence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1057 Municipal bond market. With expenditures rising steadily, State and local governments continued to borrow large amounts in the capital markets during the first half of 1965. But the gross volume of their new issues was roughly the same as in corresponding periods of the two preceding years. Municipal bond yields, however, have been especially sensitive to developments on the supply side of the market—in particular to changes in the actual and expected availability of commercial bank funds. CHART 4 NEW CORPORATE security issues rise this spring BILLIONS OF DOLLARS - 5 - 3 ALL SECURITIES BONDS - 1 STOCKS PARTICULARLY publicly offered bonds PUBLICLY OFFERED JIVATELV PIACEU 1961 1962 1963 19E4 196S NOTE.—Securities Exchange Commission data on gross proceeds of issues (for both refunding and new capital) offered for cash. In late 1964 and early 1965, following the November change in Regulation Q, which raised maximum permissible rates on commercial bank time and savings deposits, it was widely anticipated that bank purchases of municipal bonds would rise sharply. In most key banking market areas, commercial banks responded to this change by marking up rates paid on some or all classes of time and savings deposits. At the same time many of these banks sought to adjust to the resulting increase in interest costs by ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1059 Mortgage debt grew by more than $30 billion in 1964, but after the second quarter the rate of expansion tended to slow. During the first half of 1965 the increase appears to have been somewhat smaller than in the corresponding period a year earlier. This slowing has been associated in part with the downturn in housing starts that developed during 1964. In addition, however, it has reflected declining rates of savings inflows to primary mortgage lenders, particularly savings and loan associations, and the rapid expansion in demands for other types of loans at com- CHART 5 INTERMEDIARIES continue to take most of record financial savings BILLIONS OF DOLLARS - 40 - 20 THROUGH INTERMEDIARIES THROUGH MARKET 1955 1957 1959 196) 1963 1965 • • DATA FOR 1965 ARE FOR FIRST HALF, AT ANNUAL RATE, SEASONALLY ADJUSTED. NOTE.—Flow of funds data. Flows through intermediaries include time and savings accounts at commercial banks and other savings institutions and growth in public and private pension fund reserves. Market purchases by private domestic nonfinancial sectors exclude acquisitions of securities by State and local govt. pension funds. Annual data except for 196S. mercial banks. Although mortgage funds have remained ample and competition for outlets has continued strong, both of these types of intermediaries have become less active in expanding their mortgage portfolios. Earlier efforts by lenders to place increasing amounts of funds in mortgages were a factor in the contracyclical decline in interest rates on home mortgage loans into 1963. Liberalization of maturities, downpayments, and other terms accompanied Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • AUGUST 1965 1058 panding their investments in municipal bonds. Of all major types of capital market instruments, these provide the highest yield—on a tax-equivalent basis—to investors whose earnings are fully subject to corporate income tax rates. Reflecting this demand, yields on municipal bonds declined about 20 basis points between October and February. As a result, the yield spread between 20-year U.S. Government bonds and municipal bonds, after adjusting to a tax-equivalent basis, declined to the narrowest margin in 10 years. As the initial response to the Regulation Q action ran its course and alternative demands for bank funds remained high, bank participation in the market for municipal bonds showed signs of flagging. Yields on such issues recovered and then, as underwriters' advertised inventories rose to record levels in early June, advanced further. Some slackening in the volume of new issues and the reappearance of more active investment demand by banks have since been accompanied by relief of market congestion. U.S. Government bond market. Unlike developments in other bond markets, shifts in actual and expected U.S. Treasury demands on the long-term market have tended to minimize yield fluctuations. Early in the year when municipal, and to a lesser extent corporate, bond yields were under downward pressure, a record advance refunding added $2.3 billion in long-term U.S. Government debt and restrained declines in Treasury bond yields. As a result, the spread between yields on U.S. Government and high-grade corporate bonds narrowed to 17 basis points. In the late spring, on the other hand, as yields on other bonds rose, those on U.S. Government issues remained stable, reflecting market expectations that Treasury demands on capital markets would be limited in the period ahead. The unexpectedly low Federal deficit for the fiscal year 1965 led to substantial downward revisions in estimates of total Treasury cash needs in the last 6 months of the calendar year 1965. At the same time, rising yields in other bond markets made refunding operations to lengthen debt maturities appear less likely. Meanwhile, the supply of U.S. Government securities available to the public was curtailed by a $2.4 billion net debt repayment—the largest for any January-June period in 5 years—and by $2.1 billion of net purchases by the Federal Reserve in the conduct of its open market operations. Mortgage market. Demands for mortgage loans have represented by far the largest use of long-term funds in the capital markets in recent years. At times they have accounted for as much as 70 per cent of the expansion in all capital market instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1059 Mortgage debt grew by more than $30 billion in 1964, but after the second quarter the rate of expansion tended to slow. During the first half of 1965 the increase appears to have been somewhat smaller than in the corresponding period a year earlier. This slowing has been associated in part with the downturn in housing starts that developed during 1964. In addition, however, it has reflected declining rates of savings inflows to primary mortgage lenders, particularly savings and loan associations, and the rapid expansion in demands for other types of loans at com- CHART 5 INTERMEDIARIES continue to take most of record financial savings BILLIONS OF DOLLARS - 40 - 20 THROUGH INTERMEDIARIES THROUGH MARKET 1955 1957 1959 196) 1963 1965 • • DATA FOR 1965 ARE FOR FIRST HALF, AT ANNUAL RATE, SEASONALLY ADJUSTED. NOTE.—Flow of funds data. Flows through intermediaries include time and savings accounts at commercial banks and other savings institutions and growth in public and private pension fund reserves. Market purchases by private domestic nonfinancial sectors exclude acquisitions of securities by State and local govt. pension funds. Annual data except for 196S. mercial banks. Although mortgage funds have remained ample and competition for outlets has continued strong, both of these types of intermediaries have become less active in expanding their mortgage portfolios. Earlier efforts by lenders to place increasing amounts of funds in mortgages were a factor in the contracyclical decline in interest rates on home mortgage loans into 1963. Liberalization of maturities, downpayments, and other terms accompanied Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • AUGUST 1965 1060 this development and continued, though with increasing selectivity, through 1964 and into 1965. Such liberalization, along with the ready availability of mortgage financing, clearly encouraged more rapid growth in mortgage debt than would otherwise have occurred. Similarly, the more recent slowing in growth rates has probably reflected the reaction to shifts in flows of savings to alternative outlets as well as moderating demands in mortgage markets. SUPPLY OF FUNDS Most household and business savings become available to long-term borrowers in capital markets through financial intermediaries, and in recent years the volume of such funds has reached record highs, rising to $43 billion in 1964. Competition among institutions for savings on the one hand and for investment outlets for these funds on the other has strongly influenced the structure of returns to savers and interest costs to borrowers. CHARTs FLOW OF SAVINGS to commercial bonks rises sharply but declines at other savings institutions BILLIONS OF DOLLARS - 15 - 10 SAVINGS AND LOAN ASSNS. - MUTUAL SAVINGS BANKS COMMERCIAL BANKS 1955 1957 1959 1961 1963 1965 • «DATA FOR 1965 ARE FOR FIRST HALF, AT ANNUAL RATE, SEASONALLY ADJUSTED. NOTE.—Flow of funds data. Annual data except as noted for 1965. Additions to life insurance and pension fund reserves accounted for about $14 billion of the net savings flow to institutions in 1964, but the rest took the form of savings at depositarytype institutions and depended on current savings decisions. For the postwar period as a whole, assets of this type have increased Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1061 more sharply than contractual reserves. Their rate of growth has often been interrupted, however, during periods of rapid economic expansion when strong demand for funds and restraint on monetary expansion combined to push up interest rates on market instruments more rapidly than returns offered on depositary-type savings. In the economic expansion that began early in 1961 economic growth remained relatively balanced, and monetary policy —in view of continuing underutilization of resources and in the absence of inflationary tendencies—remained relatively easy, minimizing upward pressure on long-term market rates. Depositary-type institutions were both able and anxious to compete for the record savings that accompanied the rising level of RATES PAID BY DEPOSITARY-TYPE economic activity. iNSTITUTIONS A succession of regulatory liberalizations permitted commercial banks to raise returns offered on time and savings deposits. Very Avg. effec- Max. sharp expansion of such deposits followed widespread rate intive paid creases early in 1962, as is shown in Chart 6, and these in turn 1961 were followed by competitive rate increases at other savings institutions. The comparative success of banks and other institu- BANKS: Coml. 2.73 3,00 tions in attracting funds reflects the leads and lags in the timing Mut. Sav. 3.55 4.50 of these adjustments. S&LASSNS. 4.04 4,75 Growth in time and savings deposits at commercial banks was 1964 particularly striking in 1962. Net inflows of savings to savings BANKS: and loan associations accelerated in 1963, and those to mutual Coml. 3.47 4.50 savings banks reached record amounts in 1964. Further increases Mut Sav. 4.09 4.50 S&LASSNS. 4,31 4.90 in rates offered by commercial banks—particularly those on shortdated time deposits—followed the liberalization of Regulation Q in November 1964 and were reflected in record growth in time and savings deposits early this year, whereas net inflows to other institutions have slowed. Declining growth rates for nonbank intermediaries this year have been attributable in part to special factors, such as the especially heavy April withdrawals associated with 1964 income tax payments. But declines have been particularly sharp in areas, such as California, where regionally higher rates had earlier served to draw funds from other sections of the country. Despite some attempts by nonbank intermediaries to maintain rate differentials by further increases in returns offered—to as much as 5 per cent in some instances—no general pattern of increase developed, and some of those that were initiated have not been sustained. In part, this failure of other institutions to widen spreads again after the most recent round of rate increases at commercial banks reflects regulatory pressure. The Federal Home Loan Bank Board has increasingly restricted the credit that it will extend to any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN • AUGUST 1965 1062 savings and loan association that continued to push its rates upward. But rate increases have also been limited by the fact that lenders have found it more and more difficult to obtain investments attractive enough to justify obtaining higher cost savings. Continuing stability of mortgage rates, accompanied by somewhat greater selectivity in accepting credit risks, has further compressed the spread between the cost of funds to institutional investors and the maximum returns available to them. INVESTMENT „ , , . „ T DECISIONS AND Institutional recipients of expanded savings flows are subject YIELD STRUCTURES to widely differing legal, regulatory, and traditional restrictions on their investment options. Most of them have sought over time to broaden their range of eligible outlets. Since existing restrictions have all tended to limit acquisitions of financial instruments with lower marketability or longer maturity or of less than premium quality, each step toward modifying these limits has tended to increase investor demand for somewhat higher yielding assets at the expense of premium-quality instruments. Such shifts narrow the range of yield differentials and account to some extent for its compression in recent years. Long-run trends toward more liberal investment policies have often been countered in earlier periods of rapid economic growth by heavy borrower demand, which permitted lenders to ration available funds more selectively. But during much of the period since 1961 institutional lenders have been under increased pressure to reassess their investment alternatives. This pressure has stemmed from a combination of relatively moderate demands for external financing by business borrowers, ready availability of bank reserves, and the unprecedented success of financial intermediaries in attracting savings. Savings and loan associations have pressed with some success for freedom to make a greater variety of loans, including education loans, but their major moves toward diversification have been within the mortgage field. These have included greater geographic scope, freedom to offer more liberal terms to borrowers and to make larger loans, and growing participation in the market for multifamily and commercial mortgages, which now approximate one-fifth of their net mortgage acquisitions. Life insurance companies, as diversified lenders, have striven against increasing competition to maintain their position in both mortgage and corporate bond markets. As compared with both savings and loan associations and commercial banks, they lost importance as mortgage lenders in the 1961-63 period, despite continuing growth in net additions to their mortgage holdings on multifamily and commercial properties. Unlike other major Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1063 lenders, however, insurance companies have increased their net acquisitions of mortgages of all types so far this year as compared with the year-earlier period. The role of insurance companies in corporate financing can also be interpreted as defensively competitive throughout the entire current expansion. When insurance lenders developed the private placement technique for financing corporate needs early in the postwar period, the importance of this technique lay in accommodating borrowers who for one reason or another might be unable to float a public offering on satisfactory terms. A major trend of recent years has been the increasing choice of this technique by large issuers with ready access to the public market— a trend that suggests increased initiative by individual lenders seeking investment outlets. Private pension funds have greatly expanded their participation in private placements and in mortgage lending, while State and local government pension funds have increasingly been permitted to diversify their holdings by investing not only in issues of governmental units but also in corporate bonds—principally highquality, publicly offered issues—and to a lesser extent mortgages. Commercial banks have made pronounced shifts in portfolio policy in the period since 1961, as is shown in Chart 7. Responding to accelerated inflows and rising costs of depositary savings in 1962 and early 1963, banks greatly increased their acquisitions of capital-market-type instruments, especially obligations of State and local governments and mortgages. Other indications of emphasis on increasing yield included acceptance of longer maturities and somewhat lower quality ratings for municipal securities, a shift toward longer maturities in their holdings of U.S. Government securities, increased lending to business in the form of term loans, and expansion in foreign lending. Since investment policies of commercial banks are subject to a wider range of influences than those of other savings institutions, increased acquisitions of capital market instruments cannot be related solely to savings inflows or separated from loan demand. However, the timing of these shifts, and particularly the greatly expanded role of banks in the market for State and local government securities, strongly suggests that they were triggered by increased inflows of time and savings deposits following successive changes in Regulation Q from the beginning of 1962 through last November. These developments must be interpreted with caution, because here again the special characteristics of the present business expansion have played an important role. In terms of investment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1064 FEDERAL RESERVE BULLETIN • AUGUST 1965 policy, customer demands for bank credit continue as always to enjoy priority status with commercial banks. Throughout most of the expansion, these loan demands—particularly those by business borrowers—were moderate relative to the stage of the cycle, but over the past year they have increased very sharply. Banks would not have been able to meet increased demands for loans and also continue to invest heavily in mortgages and tax-exempt securities if their deposit funds had not continued to expand at a rapid rate. Deposit growth, in turn, has reflected both CHART 7 INCREASE in banks' earning assets reflects large loan expansion BILLIONS OF DOLLARS - 15 _ 10 LOANS EXCl. MORTGAGES - 5 MORTGAGES - SECURITIES EXCL. U.S. GOVTS. U.S. GOVTS. . - 5 1961 1962 1963 1964 1965 FIRST HALF OF YEAR NOTE.—Net change (without seasonal adjustment) at all commercial banks; June 30 data partly estimated. Data exclude interbank loans. Securities other than U.S. Govt. are principally State and local govt. obligations and nonguaranteed issues of Federal agencies. the competitive appeal of bank time and savings deposits (under the new Regulation Q ceilings) and the gradually increasing need for demand deposit balances to finance a growing volume of transactions. Deposit expansion also has depended on the continued provision of reserves to the banking system despite some gradual tightening in their availability. In summary, the compression of yield differentials among Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES IN CAPITAL MARKETS 1065 capital market instruments over the past AVi years has reflected not only the increased freedom of institutional lenders to choose among a wider range of investments but also their increased willingness to forego some premium qualities to obtain higher current yields. The specific yield relationships reached in this process have depended to an important degree on an historically unusual conjunction of circumstances, which resulted in protracted and substantial economic growth without the development of significant upward pressure on prices. At the same time, however, the stimulus of expanded savings inflows has accelerated recognition by institutional investors that a somewhat wider range of assets might in fact be suited to their needs. Thus the wider options and more varied techniques for making funds available to borrowers have become part of the evolving structure of capital market relationships. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by William McChesney Martin, S. 1308 would permit the cancellation Jr., Chairman, Board of Governors of the and destruction of unfit Federal Reserve Federal Reserve System, before the Subcom- notes at locations designated by the Secremittee on Financial Institutions of the Senate tary of the Treasury and authorize the Board Committee on Banking and Currency, on of Governors of the Federal Reserve System S. 1308, S. 1309, S. 1556, S. 1557, S. 7558, to determine the basis for allocating credit and S. 1559, July 21, 1965. for the destroyed notes among the 12 Federal Reserve Banks. This would mean that Of the six bills that are the subject of procedures could be adopted for the destructhis hearing, four were recommended by tion of unfit Federal Reserve notes on the the Board in its Annual Report for 1964: premises of the Reserve Banks instead of those relating to delegation of the Board's in Washington, and without sorting them by functions, the purchase by the Federal Re- Bank of issue. serve Banks of foreign government obliga- Since 1953, silver certificates have been tions, loans by member banks to their ex- destroyed at the various Reserve Banks ecutive officers, and advances by the Reserve and their branches in accordance with pro- Banks. The bill regarding destruction of cedures prescribed by the Treasury Departunfit Federal Reserve notes has been strongly ment; and it is contemplated that under this endorsed by the Board, and the Board has legislation substantially the same procedures favorably reported on the bill authorizing would be followed with respect to the dethe drawing of Government checks payable struction of unfit Federal Reserve notes. to a banking organization for the accounts The need for this legislation has become of specified persons. particularly pressing since enactment of leg- My comments regarding these bills will islation in 1963 authorizing the issuance of be presented in accordance with their numer- $ 1 Federal Reserve notes to replace $ 1 silver ical designations. certificates. By avoiding the need for shipping unfit Federal Reserve notes to Wash- PROCEDURE FOR DESTRUCTION OF ington for destruction and for the physical UNFIT FEDERAL RESERVE NOTES (S. 1308) sorting of such notes according to Bank of Under existing law, Federal Reserve notes issue, the legislation would produce subunfit for further circulation must be restantial economies that are not possible turned by the Federal Reserve Banks to the Comptroller of the Currency in Washington under present law and procedures. It is for cancellation and destruction. In addi- estimated that the savings would amount to tion, before such notes are destroyed, they approximately $800,000 annually. must be sorted in order to allocate credit Meanwhile, in the hope of avoiding seemtherefor among the Reserve Banks. ingly unnecessary expenses, the Reserve 1066 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1067 Banks and their branches have been holding extent the operating costs of the Reserve unfit $1 Federal Reserve notes instead of Banks would likewise be reduced. shipping them to Washington for destruc- Accordingly, the Board of Governors tion. At present, these holdings total over favors enactment of this bill. 160 million pieces. Unfit notes are accumulating more and more rapidly as time goes DELEGATION OF CERTAIN FUNCTIONS OF THE BOARD OF GOVERNORS (S. 1556) by, and they have already caused a storage S. 1556 would authorize the Board of Govproblem in the vaults of some of the Reserve ernors to delegate to its members or em- Banks. ployees or to the Federal Reserve Banks the The Board strongly recommends the performance of functions of the Board other prompt enactment of this bill, than its functions relating to the issuance of regulations or pertaining principally to DRAWING OF GOVERNMENT CHECKS IN monetary and credit policies. The Chairman FAVOR OF BANKS FOR THE CREDIT OF of the Board would assign responsibility SPECIFIED PERSONS (S. 1309) for the performance of particular delegated S. 1309 would make it possible for the disfunctions. Effective administrative means for bursing officer of a Government agency to review and control of actions at a delegated draw a single check on the Treasury Departlevel would be afforded by a provision of ment in favor of a banking organization for the bill that would enable any member of credit to the accounts of persons entitled to the Board to require review of such action regular payments from the agency, such as by the Board itself. payments for salaries and retirement and In recent years, the responsibilities of the pension benefits. Board of Governors have increased tremen- It is understood that, for a number of dously, both in the field of monetary and years, the Department of the Air Force folcredit policy and in the field of bank superlowed a practice of this kind, but that the vision and regulation. For example, the Bank Comptroller General held that the practice Holding Company Act of 1956, the Bank did not fully comply with the requirements Merger Act of 1960, and the Securities Acts of the Assignment of Claims Act or with Amendments of 1964 have substantially provisions of law that require a Government added to the regulatory duties of the Board. disbursing officer to draw from public The efficient and expeditious performance moneys only in favor of the persons entitled of the Board's important functions would be to receive payment. facilitated by clear authority, such as that Authorization of such procedures, as provided by S. 1556, to delegate certain contemplated by S. 1309, would tend to types of bank supervisory functions that promote economies and efficiencies of opernow must be performed in all cases by the ation, particularly in the case of the larger Board itself. Government departments and agencies. For example, present law expressly re- Moreover, to the extent that Government quires Board approval for an extension of agencies might elect to utilize such proce- time for filing of reports by affiliates of State dures, the number of Government checks member banks, for extensions of time for presented to the Federal Reserve Banks for registration by a bank holding company, for collection would be reduced and to that extensions of time for registration of securi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1068 FEDERAL RESERVE BULLETIN • AUGUST 1965 ties of State member banks, for waiver of far too much of the time and energy of agency members, and prevent full and expeditious consideration the 6 months' notice that a State member of the most important issues. bank must give before withdrawing from membership, for any investment by a State Accordingly, the Board strongly recommember bank in bank premises in excess mends prompt approval of S. 1556 by your of its capital stock, for the declaration of committee and by the Congress. dividends by a State member bank in certain INVESTMENTS BY FEDERAL RESERVE BANKS circumstances, and for the purchase of IN SECURITIES OF FOREIGN GOVERNMENTS certain stocks by foreign banking corpora- (S. 1557) tions. Under regulations of the Federal Open The Board might not decide to delegate Market Committee, the Federal Reserve the performance of all of the particular Bank of New York, on behalf of the System functions just mentioned if S. 1556 were Open Market Account, engages in foreign enacted. They are cited here merely to illus- currency operations in order to prevent distrate the kinds of functions that could be orderly conditions in foreign exchange delegated under the bill if, in the light of markets, to offset the effects of temporary experience, the Board determined that their and reversible international flows of volatile delegation would be desirable. funds, and, more generally, to safeguard the Other Federal regulatory agencies have value of the dollar in the international exbeen authorized by statute or reorganiza- change markets. These operations are impletion plans to make more or less unlimited mented by reciprocal balances on the basis delegations of their functions. Such authority of "swap" arrangements that have been is possessed, for example, by the Interstate established between the New York Reserve Commerce Commission, the Federal Trade Bank and foreign central banks. Commission, the Federal Home Loan Bank The full amount of the balance held by Board, the Civil Aeronautics Board, the the Reserve Bank in an account with a Federal Maritime Commission, and the foreign bank may not always be needed Securities and Exchange Commission. for foreign currency operations. Under The situation with which the Board of present law, idle funds in the account may Governors is presently faced because of its be invested in short-term commercial paper lack of specific authority to delegate any of in the foreign country or placed in an its functions is perfectly described in the interest-bearing time account with the same following excerpt from a message sent to or some other foreign bank. In most coun- Congress by President Kennedy on April tries, however, there is a scarcity of com- 13, 1961: mercial paper for investment, and in some The reduction of existing delays in our regulatory countries time deposit facilities are not conagencies requires the elimination of needless work at veniently available. Present law contains no their top levels. Because so many of them were established in a day of a less complex economy, many authority for the investment of such idle matters that could and should in large measure be funds in obligations of foreign governments, resolved at a lower level required decision by the such as foreign treasury bills. On the other agency members themselves. Even where, by the force of circumstances, many of these matters are now hand, a foreign central bank may—and actually determined at a lower level they still must generally does—invest unused funds in its bear the imprimatur of the agency members. Consequently, unnecessary and unimportant details occupy balances with the New York Reserve Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1069 in interest-bearing securities of the U.S. gage financing from another bank or finan- Government. cial institution. S. 1557 would expressly authorize a S. 1558 would make three principal Federal Reserve Bank to buy and sell securi- changes in section 22(g). It would raise the ties of a foreign government or monetary present general exemption from $2,500 to authority that have maturities of not more $5,000, and permit home mortgage loans than 12 months and are payable in a con- up to $30,000. Secondly, instead of requirvertible currency. This authority would pro- ing approval of such exempted loans by the vide a convenient means for investment of board of directors of the officer's bank, the bill would require only that the officer reidle funds carried by the Federal Reserve port the borrowings to his board of directors. System with a foreign central bank where, Finally, reports of borrowings from other as previously indicated, other sources of banks would be required only where they investment are not conveniently available. would exceed in the aggregate the amount For this reason, the Board recommends that the officer could borrow from his own enactment of this bill. bank. LOANS TO EXECUTIVE OFFICERS (S. 1558) The Board believes that the liberalizing Section 22(g) of the Federal Reserve Act effect of the bill would be consistent with prohibits a member bank of the Federal the basic purposes of present law and that Reserve System from making loans to its such liberalization is desirable. Accordingly, executive officers except in amounts not ex- the Board recommends enactment of S. ceeding $2,500 and then they may be made 1558. only with the prior approval of a majority ADVANCES BY FEDERAL RESERVE BANKS of the bank's board of directors. The section (S. 1559) further requires an executive officer to file S. 1559 would permit member banks of the a written report with his board of directors Federal Reserve System to borrow from the regarding any loan obtained by him from Federal Reserve Banks on the security of another bank. any satisfactory collateral without paying a The underlying purpose of these restric- "penalty" rate of interest. A new section tions is unquestionably sound. However, 13 A would replace present provisions of the they seem unrealistically severe in the light Federal Reserve Act under which member of changes in economic conditions that have banks may borrow from the Reserve Banks taken place since they were first enacted in at the regular discount rate only on the 1933. The President's Committee on Finan- security of Government obligations or on cial Institutions in 1963 recognized the de- commercial paper that meets certain outsirability of increasing the $2,500 ceiling on moded "eligibility" requirements, including the amount that an executive officer may narrow limitations as to maturity. Borrowborrow from his own bank. In addition, it ings on any other security under present would seem appropriate to provide a con- law must bear interest at a rate at least siderably higher ceiling on mortgage loans one-half of 1 per cent higher than the regular covering the purchase of an executive discount rate. officer's home. Under present law, such an The proposed legislation was originally officer is compelled to obtain home mort- recommended by the Board nearly 2 years Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1070 FEDERAL RESERVE BULLETIN • AUGUST 1965 ago after an exhaustive study of the subject. notes. Today, the volume of currency fluc- While its principal effect would be to permit tuates with the changing demands of the borrowings on any sound assets without a economy, without regard to the nature of penalty interest rate, it would also simplify the paper offered as collateral for Federal the law in this area and eliminate the con- Reserve advances or pledged as security cept that Federal Reserve credit should be for Federal Reserve notes. extended only on the basis of short-term, As long as member banks hold a large self-liquidating commercial or agricultural enough volume of U.S. Government securipaper. ties, which may be pledged as security for Drastic changes in the types of loans Federal Reserve borrowings, no great probmade by commercial banks have occurred lem exists. However, since World War II since 1913. The credit needs of American there has been a sharp net decline in the businessmen, farmers, and consumers have aggregate holdings of Government securities evolved in ways not anticipated at that time, by member banks. There has recently been and the rapid growth of Government as well a certain amount of borrowing on collateral as private economic activity has generated other than Government securities. If a concredit requirements far in excess of those tinuing increase in economic activity should that could be supported by the relatively lead to a further reduction of their holdings small volume of short-term, commercialof Government securities, member banks type "eligible" paper. A departure from the might be obliged to tender, on a larger scale, "real bills" doctrine took place as early as other kinds of collateral for Federal Re- 1916 when the law was amended to serve advances, and only a relatively small authorize advances by the Reserve Banks portion of their customers' paper would on direct obligations of the United States meet the strict requirements of "eligible" as well as on "eligible" paper; and a more paper entitled to the basic discount rate. A significant departure occurred in 1932 when considerable part of their assets—for exadvances on any satisfactory security were ample, real estate loans, medium-term confirst authorized, although at a penalty rate sumer paper, and municipal securities— of interest. Today it is generally recognized would not meet such requirements, and that paper representing a medium- or longbanks could borrow on such assets only term loan on mechanized equipment, under section 10(b) of the Federal Reserve durable goods, or even real estate, may be Act at a penalty interest rate. as sound as a short-term commercial loan In large measure, of course, the objecmade in expectation of repeated renewals. tives of S. 1559 could be achieved simply The concept that a limitation of Federal by an amendment that would eliminate the Reserve credit to advances on short-term, self-liquidating paper would act as an auto- penalty interest rate prescribed by section matic regulator of the volume of Federal 10(b). However, any such action would Reserve notes in circulation has also been leave in the law many unnecessary provirefuted by experience and has been weak- sions that would continue to reflect the outened by amendments to the law under which moded "real bills" concept and might still Government obligations have become the give rise to questions of interpretation and principal security for Federal Reserve in some cases perpetuate cumbersome ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1071 ministrative procedures that are not war- insurance companies, and pension and other ranted by current banking conditions. trust funds. The Board of Governors and the Federal Credits and investments of financial insti- Reserve Banks believe that S. 1559 repre- tutions played an increasingly important sents a long-overdue and essentially non- role among the factors responsible for last controversial updating of the law in this year's deficit in our payments balance. While field. Its enactment would provide assurance it would be impossible to state that any that the Reserve Banks will always be in a special item of our payments balance position to carry out promptly and effi- "caused" the deficit to the exclusion of the ciently one of their principal responsibilities others, it certainly should be considered —the extension of appropriate credit assist- significant if one item deteriorated while ance to member banks to meet the legitimate the others improved. And this is what hapcredit needs of the economy. pened last year in the case of capital flows. The Board, therefore, strongly urges The outflow of U.S. private capital, exapproval of this bill. cluding direct investments of U.S. firms abroad and net purchases of foreign securities, averaged $1.4 billion annually in the Progress report by J. L. Robertson, Mem- years 1960 through 1963. In the same ber of the Board of Governors of the Federal period, our payments deficit, as calculated Reserve System, before the Subcommittee by the Department of Commerce, averaged on International Finance of the Senate $3.5 billion per year. Hence, that outflow Banking and Currency Committee, on the was equal to just about 40 per cent of the total payments deficit. program for voluntary restraint of foreign But in 1964, this ratio suddenly changed. credit by banks and other financial institu- The payments deficit declined slightly to tions, August 5, 1965. $3.1 billion but the outflow of capital (again excluding direct investments and purchases Mr. Chairman, I appear in response to of securities) rose to $3.4 billion. In 1964, your request for information on the voluntherefore, that outflow was equal to 110 tary foreign credit restraint program, under per cent of the total payments deficit and which financial institutions are taking part at least two-thirds of that outflow reflected in the President's program to improve our transactions of banks and investment conpayments balance, in accordance with guidecerns. lines issued by the Federal Reserve System. These figures should not be interpreted Copies of these guidelines and accompanyas meaning that our payments balance ing news releases have been furnished to would have improved in exact proportion your committee. to a decline in the capital outflow. No doubt, This program includes two separate but part of the bank credit expansion was coninterrelated parts. The first aims at reducing nected with the rapid increase in our merthe expansion of bank credit to foreigners; chandise exports, which rose by $3.2 billion the second seeks to limit the expansion of between 1963 and 1964. And the newly credits and investments abroad by other extended credits and investments also financial institutions, such as mutual funds, yielded some income in 1964. Nevertheless, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1072 FEDERAL RESERVE BULLETIN • AUGUST 1965 a large part of the newly extended credits are so important, it is necessary to avert the had no connection with exports of U.S. danger of excessive and unsustainable exgoods or services, and the increased returns pansion, which would risk harming the interattributable to the increased capital outflow national position of the dollar, with all its obviously did not offset more than a small potential implications for our domestic as fraction of that outflow. well as the international economy. For these reasons, it seemed clear at the Under our bank guidelines, banks are retime of the President's message of February quested to limit the increases in their foreign 10, 1965—and it seems even clearer today, credits so that their outstanding credits to when we have better statistics on the sub- foreigners will not exceed 105 per cent of ject—that any decisive improvement in our the amount outstanding at the end of 1964. payments balance would be impossible with- Since the latter amount was approximately out a reduction in the outflow of capital $10 billion, this means that the banks are provided by banks and other financial insti- requested to limit their net credit expansion tutions. This reduction is the goal of the in 1965 to approximately $500 million, as voluntary foreign credit restraint program. compared with an average expansion of about $1 billion annually in the years from Let me stress that our program is designed 1960 through 1963, and a record expansion to limit, not to eliminate, the expansion of of more than $2 billion in 1964. Financial our credits to foreigners and of our investconcerns other than banks are requested to ments abroad. We are fully aware of the limit similarly those credits and investments need for a steady expansion of those credits in which those concerns are likely to comand investments. Such expansion is needed pete with banks; this means primarily credits to support expanding exports of U.S. goods with a maturity not exceeding 10 years. and services; to make more private capital While those concerns are not requested to available for the development programs of limit credits or investments of more than 10 less developed countries; and to help meet years to any specific amount or percentage, the financial needs of such nations as they are requested to avoid any increase in Canada and Japan, which have traditionally the total of such credits or investments in depended on the inflow of U.S. funds. Nothforeign developed countries other than ing in our program should be interpreted as Canada, Britain, or Japan. Moreover, they indicating that we regard credits to foreignare requested to reduce their holdings of ers or investments abroad as harmful in liquid funds abroad to the 1963 level. themselves; on the contrary, we know very well that the worldwide activities of our Within the limits of the expansion target, banks and other financial institutions are not both banks and investment concerns are reonly an important source of future income quested to give absolute priority to credits for our economy but also an important providing bona fide financing for exports of means of contributing to the expansion of U.S. goods and services. On the basis of international commerce and hence to the data furnished by the banks themselves, we economic growth of the free world as a calculated that the target gave ample room whole. for any foreseeable need to expand export But just because the international activi- financing. ties of our banks and investment concerns Second only to that absolute priority, all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1073 institutions are requested to give priority to concerns was complicated by two factors. credits to less developed nations. Moreover, First, the Federal Reserve was less well the exemption of credits and investments acquainted with the practices of those conwith a maturity of more than 10 years cerns than with the activities of commercial granted to investment concerns removes any banks; and second, the statistical material obstacle under the program to such long- available on the international credit activiterm credits to, and investments in, less de- ties of those concerns was quite fragmentary, veloped countries—that type of credits and in contrast with the data regularly collected investments which is considered most bene- from banks by both the Treasury and the ficial to these countries. Federal Reserve. For these reasons, the Board of Governors felt compelled at first, And thirdly, all institutions are requested on March 8, 1965, to issue only tentative to avoid restrictive actions that might emguidelines for investment concerns. After barrass Canada and Japan, which are tradiconsultation with experts in that field and tionally dependent on financing from U.S. after analysis of improved statistical material sources, and Britain, which is suffering from collected for that purpose, we issued revised a serious balance of payments problem of guidelines for those concerns on June 21, its own. Again, the guideline provision re- 1965. garding long-term credits and investments of institutions other than banks removes the Both sets of guidelines are based on the danger of inhibiting the expansion of such principle of minimizing interference with the credits to, and investments in, the Canadian business of the participating institutions, economy. and especially with individual business de- The three categories of priorities, inci- cisions. Within the broad targets, it is left to dentally, broadly parallel the provisions of banks as well as to investment concerns to the Interest Equalization Tax, which gen- choose the best way to abide by the erally exempt export credits and credits to guidelines. In particular, the Board of less developed countries and which permit Governors as well as the Federal Reserve certain exemptions for countries such as Banks, through which we maintain close Canada and Japan. contact with participating institutions, have Our bank guidelines, including 14 specific attempted to answer questions of interpretapoints, were issued on March 5, 1965, after tion in terms of general principles, and to consultation with the Treasury and other avoid passing on individual cases. In this interested Government agencies and after way, we have avoided the risk of letting the obtaining the views of experts from the voluntary restraint program turn into a banking community; since then, two of these partial system of exchange controls. points have been amended in order to clarify Needless to say, we do not regard our their intent. In addition, requests received guidelines as sacrosanct. We are constantly from banks for advice on controversial consulting with other Government agencies points have been answered by a set of inter- and with experts from the participating pretations, designed to help the banks to banks and other institutions on the problems participate in the program in line with its raised by the program, and are following purposes. closely the statistics collected under the Formulation of guidelines for investment President's program in order to evaluate the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1074 FEDERAL RESERVE BULLETIN • AUGUST 1965 current status of our payments balance as comparable to the data on capital flows well as the success of, and continuing need generally used in the analysis of our payfor, foreign credit restraint. ments balance. I am submitting for the So far, the program has proved outstand- record a statement presenting additional ingly successful. This success is due to the statistical information regarding the foreign splendid cooperation of the participating lending activity of commercial banks under banks and investment concerns. Each insti- the program. tution willingly cooperates because it knows Financial institutions other than banks the "rules of the game," and realizes that have also cooperated well in the restraint it receives exactly the same treatment as all effort. In 1964, the concerns participating other institutions of its kind, wherever in the program had expanded their credits located, with no individual exemptions or to foreigners and investments abroad by exceptions. nearly $1 billion; in the first 6 months of Adherence to the program has meant 1965, according to preliminary and incomgiving up many opportunities to engage in plete data, the expansion was on the order of $100 million. Liquid funds held abroad profitable business transactions, and it is were reduced by more than $100 million; truly voluntary. Nevertheless, the financial credits and investments with a maturity of community has responded to the President's not more than 10 years rose very little; and appeal with a spontaneity and unanimity long-term credits and investments expanded that has not only astonished our foreign by nearly $200 million. The pattern of these critics—who at the beginning had dismissed changes fully conforms to the intent of the the idea of voluntary restraint at best as an guidelines. Utopian dream or at worst as fatuous makebelieve—but even some of us here at home. Needless to say, the gratifying results to A few figures will show you what I mean. date cannot entirely be attributed to the In the first 2 months of 1965, bank credits program itself. For instance, the dock strike to foreigners rose at a monthly rate of nearly of January-February 1965 inhibited the $200 million. In March, the first month growth of exports and hence also of export under the voluntary restrain program, the credits during that period; and more reexpansion fell to less than $50 million—and cently, the measures taken by industrial presumably most of that outflow was the countries to combat inflationary pressures consequence of earlier binding commit- and reduce payments deficits, as well as less ments, which the institutions are, of course, favorable developments in the international obliged to honor. And in the second quarter, trade position of less developed countries, the net expansion was replaced by a net have stemmed the rise in our exports and reduction in credits to foreigners, averaging therefore the need for an expansion in more than $100 million per month. Conse- export credits. quently, at the end of June 1965, total bank I may say, incidentally, that the recent credits to foreigners were only about $100 slowing down in our exports can by no million higher than at the end of 1964. means be attributed, even in part, to the Incidentally, these figures are based on voluntary restraint program: not only bespecial reports of the participating banks cause the guidelines do not permit the parto the Federal Reserve, and are not strictly ticipating institutions to take the program Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1075 as an excuse for denying needed export that target sometime during the year becredit accommodation to any creditworthy cause the guidelines requested banks not applicant; not only because all our inquiries only to honor any binding commitments but so far have failed to unearth a single actual also to extend bona fide export credits, case in which an export transaction failed even if such extension meant a temporary to materialize because of denial of credit excess over the suggested ceiling. Subseto a creditworthy borrower under color of quent statistics showed that, at the end of the restraint program; but also because the March, about 60 participating banks were very fact that the banks as a whole are con- above the suggested ceiling by a total of siderably below the suggested credit target $275 million. Representatives of some of proves that the banking system has, indeed, these banks assured us that it would be imample room for increasing its export credits possible for them to reduce outstanding without risking a violation of the suggested credits fast enough to get below the sugceiling. gested ceiling before the end of 1965, un- A second reason for the virtual cessation less they were to violate the provisions in of credit expansion independent from the regard to binding commitments and priority restraint program probably may be found credits. For this reason, the guidelines stated in the unusually large rise in credits during that a bank finding itself on those grounds the last quarter of 1964 and the first 6 weeks in excess of the suggested ceiling would not of 1965. Some foreign countries or individ- be deemed to have failed to conform to the ual borrowers may well have exhausted the guidelines, provided it managed to get becredit lines envisaged by the managers of low the ceiling not later than 1 year from prudent banks and investment concerns. the issue of the guidelines, i.e., not later than in March 1966. A third factor—almost needless to say— was the extension of the Interest Equaliza- But by the end of June 1965, the aggretion Tax to bank credits with a maturity of gate amount by which banks exceeded the at least 1 year, together with the proposed ceiling had dropped to $100 million; this subjection to the tax of nonbank credits means that these banks as a group have rewith a maturity of at last 1 year but no duced their excess by two-thirds within as more than 3 years. In recent months, how- short a period as 3 months. Equally imporever, some European and Japanese borrow- tant, most banks now in excess are so by very ers have been willing to reimburse the tax small amounts or for clearly temporary, to U.S. lenders so that the tax alone would sometimes seasonal, reasons; not more than not have made credits to those borrowers a handful still have substantial excesses that unattractive. In these cases, the voluntary may pose some problem for bank managerestraint program has served to supplement ment. and reinforce the Interest Equalization Tax. The most gratifying part of the program When the voluntary restraint program was has been the compliance of banks and other started, we knew that in view of the large institutions with the suggested credit prioricredit expansion of January and February ties. I have already mentioned that, despite quite a few banks already were above the some rumblings about interference of the target suggested for the entire year. We also restraint program with the export drive, no knew that others would necessarily exceed concrete instance of unjustified refusal of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1076 FEDERAL RESERVE BULLETIN • AUGUST 1965 export financing has been discovered—al- of 1 per cent above rates for certificates of though export financing is often less profit- deposit in New York. able than other forms of credit and some The guidelines aimed at reducing the outbanks might have been tempted to keep flow of financial capital by curtailing these within the over-all ceiling by means of cur- flows to continental Europe. Continental tailing export credits in favor of other more Europe has a chronic surplus in its payments profitable transactions. balance with the rest of the world. Euro- Bank credits to less developed countries pean central banks therefore have urged, also have been expanded in accordance with and later welcomed, the reduction in the inflow of funds from the United States, the guidelines. True, short-term credits to which not only added to their payments those countries have not risen, in line with imbalance but also, in their opinion, to the lag in the expansion of our exports to domestic inflationary pressures in Europe. those countries; but in the first half year of It is true that the success of our program 1965, the annual rates of commitments on, may have curtailed that inflow more than and actual disbursements of, bank loans to they had thought possible. And the recent less developed countries with a maturity of tendency of European subsidiaries of Amer- 1 year or more compared favorably with ican firms to cooperate in the balance of those for 1964. payments program by seeking financing in In the first half of 1965, again according Europe rather than in the United States may to incomplete figures, investment concerns have added to the credit stringency in some increased by $300 million their long-term European countries. But this development, credits to, and investments in, the less dealthough perhaps in some cases temporarily veloped countries as well as Canada and embarrassing for those countries, actually Japan, while reducing them by $125 milis contributing to the restoration of financial lion in other industrial countries. The figures stability throughout the world. It induces were roughly equivalent to the half-yearly and permits the central banks of the affected 1964 averages for the less developed coun- European countries to relax their credit retries and Canada, and substantially more straints without risking domestic inflationary favorable for Japan, which suffered a re- pressures—the mere substitution of domestic duction in long-term credits last year. for foreign funds without a change in total The restraint program has resulted in domestic investment cannot have inflationary some withdrawal of American funds from repercussions. And at the same time, the the so-called Euro-dollar market, both resulting narrowing of differences in credit directly and through the shift of liquid funds conditions between continental Europe and out of Canadian banks, which usually invest the United States will permanently help to at least part of such funds in the Euro-dollar reduce the payments surplus of Europe tomarket. This withdrawal caused some stif- gether with the payments deficit of the fening of rates in that market. But this stif- United States. fening in turn has induced more European I should like to close on that optimistic funds to flow into Euro-dollars, and by the note; but it is my duty also to point to some end of June, rates in that market had re- less reassuring consequences of the very sucturned to their earlier levels, about one-half cess of the restraint program. According to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1077 present indications, the second quarter of as further domestic economic expansion, to 1965 has shown for the first time in many make investment at home more attractive years a surplus in our payments balance. than investment in foreign industrial coun- This is, of course, highly satisfactory. But tries and especially in continental Europe. the change in the flows of bank credits to Our monetary policies must be consistent foreigners, alone, is about as large as the with both these endeavors: firm enough to entire probable improvement in our pay- prevent price and cost increases from enments balance between either the first quar- dangering our international competitiveness, ter of this year or the quarterly average of but not so firm as to let a stringency of credit last year, and the second quarter of this year. endanger the financing of continued domes- This is disquieting because our voluntary tic growth. The voluntary credit restraint restraint program is meant to be a tempo- program is no substitute for these general rary expedient, and in fact cannot be ex- policies; but I hope that it will continue to pected to work smoothly except on a tem- supplement them until the improvement in porary basis. We may hope that it will lead our more basic international economic relato the better realignment of American and tions has led to payments equilibrium with- European capital markets, mentioned be- out the need for specifically restraining fore. But it would probably be unrealistic credits to foreigners. I am looking forward to expect that this realignment alone will to the day when we shall be able to disconbe sufficient to eliminate our payments defi- tinue our voluntary credit restraint efforts cit for good. To that end, we need renewed —as eagerly as does the financial comimprovement in our current balance as well munity itself. APPENDIX: STATISTICAL INFORMATION REGARDING THE VOLUNTARY FOREIGN CREDIT RESTRAINT EFFORT OF COMMERCIAL BANKS Summary figures regarding the position tion includes only those banks with total of the banks at the end of each month since foreign assets in excess of $500,000; the February are shown in Table 1. This tabula- number of banks included varies somewhat from month to month. TABLE 1. FOREIGN CREDITS OF U.S. BANKS, 1965 Tables 2 and 3 present certain data regarding banks having outstanding foreign Item Feb. Mar. Apr. May June credits in excess of 105 per cent of their Number of banks 145 145 150 154 156 In millions of dollars TABLE 2. FOREIGN CLAIMS OF BANKS IN EXCESS OF TARGET CEILING, 1965 Total foreign claims subject to 105 per cent ceiling 9,839 9,883 9,748 9,663 9,579 Target ceiling (105 per Item Feb. Mar. Apr. May June cent of December 1964 base) 9,953 9,953 9,958 9,972 9,963 Net expansion of claims Number of banks 56 56 53 48 52 since December 1964... 360 405 264 165 88 Net reduction in claims Net expansion of claims necessary to achieve remaining within tar- target (millions of dolget ceiling 112 70 211 308 384 lars) 265 275 197 109 110 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1078 FEDERAL RESERVE BULLETIN • AUGUST 1965 base as of the end of each month. The spe- guaranteed by or arranged through the Excific banks included in this group vary from port-Import Bank as well as loans made by month to month. Many banks are relatively foreign branches, but it includes long-term close to the 105 per cent ceiling, and a small securities, real assets, and the net investment change in outstanding credit may thus cause in foreign branches and subsidiaries. It difthem to shift from a position of just under fers from the data on foreign assets reported to just over the target, and vice versa. by U.S. banks, as currently published in the Federal Reserve and Treasury Bulletins, mainly in that it does not include assets held TABLE 3. ANALYSIS OF FOREIGN CREDITS OF for the account of customers nor does it in- BANKS IN EXCESS OF TARGET CEILING, JUNE 1965 clude foreign assets of U.S. agencies of for- "Excess" A c m re o d u it n t i n of Credit eign banks. Number of credits of— excess of target increase banks (millions of (millions of Jan.-June 1965 dollars) dollars) (per cent) TABLE 4. FOREIGN CLAIMS OF U.S. BANKS, BY SIZE GROUP, DECEMBER 1964 4 Over 4.9 56 8.9 10 2.0-4.9 28 17.4 8 1.0-1.9 11 6.3 Dollar amount of Percent- 30 Under 1.0 13 12.2 Banks ranked claims (billions) a t g o e t a o l f for b e y ig s n i z c e l a o i f ms Cumu- (c c u la m im ul s a- Reporting by commercial banks under G to ro ta u l p l t a o ti t v al e tive) the voluntary foreign credit restraint effort Size group: has also provided, for the first time, accurate 5 largest 5.0 5.0 53 6-10 2.1 7.1 75 information on the total foreign claims of 11-15 .6 7.7 81 16-20 .35 8.05 85 U.S. banks. The following tabulation is 21-25 .25 8.3 87 based on foreign claims subject to the re- Total (156)1 9.5 9.5 100 straint effort; that is, it excludes credits 1 Figures are not shown for banks ranked below 25, which had claims totaling $1.2 billion. Statement of William McChesney Martin, These bills—as well as the other, but dif- Jr., Chairman, Board of Governors of the ferent, bills understood to be the subject of Federal Reserve System, before the Sub- this hearing—owe their introduction to recommittee on Domestic Finance of the Com- cent antitrust decisions of the courts and the mittee on Banking and Currency of the resultant uncertainties and other problems House of Representatives, on S. 1698, now existing in the area of bank mergers. August 11, 1965. Under the law as declared by these decisions, bank mergers and similar transac- Mr. Chairman, I appear this morning to tions (whether proposed or consummated) support the amendment to the Bank Merger are subject to suits to enforce the antitrust Act of May 13, 1960, proposed by S. 1698, statutes. This is true notwithstanding prior as passed by the Senate June 11. The same approval of the merger application by the amendment also is proposed by H.R. 9457 appropriate Federal bank supervisory agency and several companion bills in the House. pursuant to the Bank Merger Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1079 This was the lesson of the much-discussed statute of limitations on actions to enforce Philadelphia National Bank decision in the antitrust laws. In consequence, bank 1963 in which the U.S. Supreme Court out- mergers that took place as long ago as 1950 lawed the proposed merger under section 7 are now subject to challenge in antitrust of the Clayton Act (374 U.S. 321). A suits. If the conflicting standards cannot be bank consolidation was held by the Supreme reconciled, at least the time within which Court in 1964 to violate the Sherman Act the Federal Government may take two conin the First National Bank and Trust Com- tradictory positions on the same facts should pany of Lexington case (376 U.S. 665). not extend beyond that reasonably necessary Then last March, section 7 of the Clayton for the banking agencies, on the one hand, Act and the Sherman Act were held by the and the Department of Justice and the Federal District Court in New York to have courts, on the other, to discharge their statubeen violated by the merger in 1961 of the tory responsibilities. Manufacturers Trust Company and The As originally introduced, S. 1698 would Hanover Bank (240 F. Supp. 867). The have amended the Bank Merger Act so as, merger application in each of these cases in effect, to exempt from the antitrust laws had the prior approval of the appropriate all bank mergers hereto or hereafter ap- Federal banking agency under the Bank proved under that Act. Antitrust exemption Merger Act. Other similar cases are pending would have been given also to all bank in the courts. mergers consummated before enactment of These decisions under the antitrust laws the Bank Merger Act. H.R. 7563 and sevhave made it clear that banks and their cus- eral companion bills in the House are identomers now face protracted litigation attack- tical with S. 1698 in its original form. ing bank mergers that have been approved Correction of the situation along these by a Federal bank supervisory agency under broad lines was the thrust of my testimony the Bank Merger Act of 1960. In these anti- on S. 1698 last May before Senator Roberttrust suits mergers apparently will be tested son's subcommittee. However, both the on the basis of adverse competitive factors Board's report on the bill and my testimony alone, even though the legislative history of offered an alternative approach for considthe Bank Merger Act shows that, in 1960, eration with respect to future mergers in the the Congress decided that bank mergers event the original version of S. 1698 proved should not be judged so narrowly by the unacceptable. supervisory agencies. Instead, the 1960 S. 1698 in its present form (and the legislation directed that the effect on com- identical House bills) treats future mergers petition should be considered along with along the lines of the alternative offered by other factors in determining whether a pro- the Board. While not providing a complete posed merger is in the public interest. antitrust exemption for future mergers, the The task of harmonizing decisions under bill would eliminate any need to unscramble the Bank Merger Act with those under the them. The bill would do this by staying the conflicting standards of the antitrust laws consummation of a proposed merger for 30 will be extremely difficult—if, indeed, it is days following approval of the application possible at all. The resulting uncertainties by the appropriate Federal banking agency are compounded by the fact that there is no under the Bank Merger Act. If the proposal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1080 FEDERAL RESERVE BULLETIN • AUGUST 1965 were not challenged by the filing of a suit not be given to any merger—past or future under the antitrust laws during the 30-day —approved under the Bank Merger Act as period, it could then be consummated and to which the Attorney General either would thereafter be exempt from the Clay- brought, or published his intention to bring, ton Act and the Sherman Act. If a suit were an antitrust suit within 7 days following apinstituted during that period, the proposal proval of the application. If the Attorney could not be consummated until conclusion General only published his intention to sue, of the litigation, and then only to the extent then the 7-day period would be lengthened consistent with the final judgment in the to 30 days during which suit could be filed. case. Since November 1961, the Board has had Except in an emergency situation, the At- a published rule staying consummation of torney General (as well as the other two mergers for 7 days following Board apbanking agencies) has 30 days under the proval, except in special situations (12 Bank Merger Act to supply the agency re- CFR 262.2(f)(5)). I would doubt, howsponsible for acting on the merger applica- ever, that—as to future mergers—the above tion an advisory report on the competitive procedure of H.R. 8388 would be an acfactors involved. Accordingly, the Attorney ceptable alternative to the 30-day-stay pro- General would be assured in virtually all vision of the Senate bill. No objection has cases a minimum of 60 days in which to re- been raised to the 7-day rule in any cases view a merger proposal if S. 1698 were considered by the Board thus far, but freezadopted. In practice, the period in almost ing it into the statute seems inadvisable. all cases would be even longer. Cases might arise where a longer time is needed. The Bank Merger Act dispenses with the need for the action agency to request ad- With respect to past mergers under the visory reports on competitive factors if the Bank Merger Act, the above provisions of case involves a probable bank failure, and H.R. 8388 differ very materially from the reduces to 10 days the period for supplying Senate bill. As already noted, the exemption such reports if an emergency requiring ex- in the Senate bill for past mergers as to peditious action is involved. In such cases, which antitrust litigation is pending would the 30-day stay in the bill for consumma- free the banks involved from further protion of a merger is subject to similar excep- ceedings under the antitrust laws, regardless tions. of when suit was filed. This would not be Finally, the Senate-passed bill (like the true, of course, under H.R. 8388. As stated original version) would exempt from the above, I support the Senate bill. antitrust laws all bank mergers consum- The Bank Merger Act prohibits the mated prior to its enactment. But, the ex- merger, consolidation, acquisition of assets emption would not apply where the bank or assumption of liabilities of one Federally resulting from the merger has been dissolved insured bank with or by another such bank or unscrambled pursuant to a final judgment without the prior approval of the Compin an antitrust suit. troller of the Currency, the Board, or the Another bill before you (H.R. 8388), Federal Deposit Insurance Corporation, dediffers from S. 1698 in certain respects. pending on whether the resulting, acquiring, Under H.R. 8388, antitrust exemption would or assuming bank is to be a national bank, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1081 a State member bank, or a nonmember in- merely restored to the bank merger situasured bank. tion the rules that were generally understood The act requires the appropriate agency to apply at the time of adoption of the Bank to take into account several specific factors Merger Act and until the court decisions alin determining whether to approve or to dis- ready mentioned. The history of the act approve a merger application. Thus, in every leaves no doubt as to this in my view, and case the agency must consider, as to each there surely can be no doubt as to the auof the banks involved, its financial history thority of Congress to do so. and condition, the adequacy of its capital S. 1698, as passed by the Senate, essenstructure, its future earnings prospects, the tially, would restore those rules as to past general character of its management, and mergers. It would not do so as to future whether its corporate powers are consistent mergers. But, as to future mergers, the bill with the purposes of the Federal Deposit would avoid any necessity for unscrambling. Insurance Act. In addition to these so- Certainly, the same history that supported called "banking factors," the appropriate the Senate bill, as introduced, also supports agency must also consider, as to each of the the present bill. banks involved, the convenience and needs The competitive effects and implications of the community to be served, and the of bank mergers obviously were the major effect of the transaction on competition, inreasons prompting enactment of the statute. cluding any tendency toward monopoly. A main emphasis of the entire legislative The agency may approve the transaction history—and rightly so—is that competition only if, after considering all seven statutory is an indispensable element to a strong and factors, it finds the transaction to be in the progressive banking system. This and the public interest. important gaps that existed prior to 1960 I have already referred to the advisory in the Federal law governing bank mergers reports on the competitive factors involved were stressed as the reasons why legislation in merger cases that the action agency is re- was necessary. quired by the act to request from the other The most troublesome issue in formulattwo banking agencies and the Attorney Gen- ing the Bank Merger Act was the standards eral before granting or denying merger ap- by which the legality of bank mergers were plications. The Board, of course, gives care- to be tested. As the Committee reports exful consideration to these reports in deter- plain, sections 1 and 2 of the Sherman Antimining whether to approve or disapprove trust Act prohibit unreasonable restraints applications under the statute. However, the of trade in interstate commerce and monoplegislative history of the act stresses that the olies and attempts to monopolize in any reports are limited to the competitive factors parts of such commerce, while corporate only, that they are purely advisory, and that acquisitions in the circumstances described they are not recommendations as to what in section 7 of the Clayton Act are proactions should be taken by the banking agen- hibited where the effect may be substantially cies on merger applications. to lessen competition, or to tend to create As I testified before the Senate subcom- a monopoly. However—and to re-emphamittee last May, the original version of S. size—it is abundantly clear from the legis- 1698, in a very real sense, would have lative history that Congress did not want the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1082 FEDERAL RESERVE BULLETIN • AUGUST 1965 legality of bank mergers to be tested by ad- section 7 of the Clayton Act, as amended verse competitive factors alone, to the ex- by the Celler-Kefauver Act in 1950, was clusion of banking factors and offsetting inapplicable to bank mergers, normally acbenefits to the public. Indeed, the Congress complished through asset acquisitions rather understood specifically that there would be than stock acquisitions. For example, testisituations in which "approval of the merger mony for the Department of Justice was that would be in the public interest, even though section 7 "is little help" in stopping bank this would result in a substantial lessening mergers because it "covers bank stock— of competition" (S. Rpt. No. 186, April 17, not bank asset—acquistions" (hearings on 1959, pp. 19-24; H. Rpt. No. 1416, March S. 1062, House Committee on Banking and 23, 1960, pp. 10-13). Currency (1960), p. 162). In addition, Nevertheless, the recent court decisions there was little or no experience by which involving bank mergers have underlined the to judge the usefulness of the Sherman Act fact that, in the antitrust field, such matters in dealing with bank mergers. as banking factors and offsetting benefits to In its deliberations on the legislation that the public are virtually ignored. This, of became the Bank Merger Act, the Congress course, marks the basic difference between specifically rejected proposals that antitrust the responsibility of the Federal banking standards be adopted as criteria for apagencies under the Bank Merger Act and provals of bank mergers. Also rejected by the antitrust functions of the Attorney Gen- the Congress was a proposal that the Ateral and the courts. In deciding a case under torney General be permitted to intervene the Bank Merger Act, the action agency and obtain court reviews in bank merger must arrive at a balanced decision of ap- cases pending before the Federal banking proval or disapproval based upon a consid- agencies. Instead, the Congress decided that eration of all of the factors specified in the the proper role for the Department of Jus- Act. Sound banking and the needs and con- tice in bank merger cases would be fulfilled venience of the public, as well as effect on by submitting advisory reports on the comcompetition, must be taken into account. To petitive factors to the banking agencies for process merger cases in a way that, essen- consideration by them in deciding whether tially, would give consideration only to ad- to approve or disapprove merger applicaverse competitive effects, to the exclusion of tions. other proper considerations under the stat- The special needs and characteristics of ute, would be contrary to the responsibility banking is the central theme running vested in the action agency by the act. throughout the legislative history. It was No exemption from the antitrust laws is emphasized that banking is a licensed, contained in the Bank Merger Act. When strictly regulated, and closely supervised inthe act was passed in 1960, there seemed dustry that offers problems acutely different to be little reason for such an exemption. from other types of business, whether regu- Efforts in Congress in 1956 to make sec- lated or not. A high degree of public contion 7 of the Clayton Act applicable to fidence is peculiarly essential to a sound and banks were not successful. As the legisla- vigorous banking structure. Because of contive history of the 1960 Act clearly shows, siderations such as these, the Congress in it was generally agreed at that time that enacting the Bank Merger Act deliberately Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1083 chose to place the authority to approve or process, but almost certainly some of them disapprove bank mergers in the Federal would not. Very likely some would switch, banking agencies. The report of your com- instead, to the other newly-created bank or mittee on the Bank Merger Act stated that to some different bank. For most depositors, the "bill vests the ultimate authority to pass this would be a relatively easy matter, deon mergers in the Federal bank supervisory pending on their preference in banking agencies," because of their thorough knowl- services. But for borrowers it could well edge of banks and the banking business (H. pose hardship. For example, a loan commit- Rpt. No. 1416, March 23, 1960, pp. 9-10). ment from the bank being unscrambled It is particularly apropos that the Senate might exceed the loan limit of either of the committee said: "The advance approval fac- two newly-chartered banks. tor is important in halting bank acquisitions If the bank to be unscrambled were actbefore they are consummated and in preing as executor of a will, or as trustee for serving the depositors' confidence in an inan irrevocable trust, apparently it would restitution which might otherwise be destroyed quire legal proceedings in a State court to by an attempt to unscramble assets after an substitute a new executor or trustee, which acquisition has been completed" (S. Rpt. might be neither of the two new banks. The No. 196, April 17, 1959, p. 22). situation is further complicated by operating In six instances, suits are pending under and personnel problems, such as how to rethe antitrust laws to unscramble a bank tain competent officers who are asked to merger. To my mind, the key point in these choose between attractive offers from estabcases is that it is impossible to restore the lished competitors and an uncertain future situation that existed before the merger took with a smaller, newly-chartered bank. For place. One bank has replaced two banks. these reasons, no matter how one may feel But a Federal court order cannot recreate about whether the merger should have taken the two banks that formerly existed, nor place in the first instance, there is no turncan it compel any bank customer—whether ing back. To unscramble the resulting bank he has become a customer since the merger clearly poses serious problems not only for or was a customer of one of the former the bank but for its customers and the combanks—to do business with either of the two munity. Considerations such as these clearly new banks. Two new banks would require support the antitrust exemption in the bill two new charters, which could be issued only for mergers already consummated, as well by the Comptroller of the Currency or the State bank supervisor. If the two new char- as the prospective features of the bill. ters were issued, presumably some of the I hope, Mr. Chairman, that your subcomdepositors would leave their accounts in one mittee will favor the approach to the probor the other of the new banks to which they lem approved by the Senate, and that such a had been allocated in the unscrambling measure will be promptly enacted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Interest on Foreign Time Deposits deposit or savings deposit at a rate in excess of such applicable maximum rate as the Board of Governors of By Act of Congress, approved July 21, 1965 the Federal Reserve System shall prescribe from time (Public Law 89-79), section 19 of the Federal to time; and any rate or rates which may be so prescribed by the Board will be set forth in supplements Reserve Act (12 U.S.C. 371b) was amended so as to this part, which will be issued in advance of the to continue until October 15, 1968, the exemption date upon which such rate or rates become effective. During the period commencing on October 15, 1962, of deposits of foreign governments and certain and ending on October 15, 1968, the provisions of foreign institutions from regulations by the Board this paragraph shall not apply to the rate of interest of Governors as to rates of interest member banks which may be paid by member banks on time deposits of foreign governments, monetary and financial aumay pay on time deposits. The law contains a thorities of foreign governments when acting as such, similar amendment to the Federal Deposit Insur- or international financial institutions of which the ance Act with respect to deposits in nonmember United States is a member. insured banks. The Board of Governors, effective Order with Respect to Briefs on Reconsideration August 4, 1965, amended section 217.3(a) of of Application Under Bank Holding Company Act Regulation Q, entitled Payment of Interest on De- The following Order was issued in connection posits, to conform the regulation to the provisions with action by the Board of Governors in respect of this amendment. The texts of the Act and of the to its reconsideration of an application to form a Board's amendment to Regulation Q are as folbank holding company: lows : AN ACT WHITNEY HOLDING CORPORATION, To continue the authority of domestic banks to pay NEW ORLEANS, LOUISIANA interest on time deposits of foreign governments at rates differing from those applicable to domestic In the matter of the application of Whitney depositors. Holding Corporation for approval of its becoming Be it enacted by the Senate and House of Repre- a bank holding company by acquiring the stock sentatives of the United States of America in Congress assembled, That the last sentence of the fourteenth of Crescent City National Bank, New Orleans, paragraph (12 U.S.C. 371b) of section 19 of the Fed- Louisiana, and Whitney National Bank in Jeffereral Reserve Act is amended by changing "the effec- son Parish, Jefferson Parish, Louisiana. tive date of this sentence and ending upon the expiration of three years after such date," to read "October 15, 1962, and ending on October 15, 1968,". ORDER WITH RESPECT TO BRIEFS ON SEC. 2. The last sentence of section 18(g) of the RECONSIDERATION Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended by changing "the effective date of this By Order dated March 1, 1965, in Bank of New sentence and ending upon the expiration of three Orleans et al. v. Board of Governors of the Fedyears after such date," to read "October 15, 1962, and ending on October 15, 1968,". eral Reserve System et al. (No. 19, 788), the Approved July 21, 1965. United States Court of Appeals for the Fifth Circuit remanded the cause to the Board of Governors AMENDMENT TO REGULATION Q "for reconsideration in the light of the opinion of Effective August 5, 1965, paragraph (a) of the Supreme Court of the United States" in section 217.3 is amended to read as follows: Whitney National Bank v. Bank of New Orleans, 379 U.S. 411 (1965). The Board had approved SECTION 217.3—MAXIMUM RATE OF INTEREST the application of Whitney Holding Corporation ON TIME AND SAVINGS DEPOSITS ("Applicant") by Order dated May 3, 1962 (27 (a) Maximum rate prescribed from time to time.— Except in accordance with the provisions of this part, Fed. Reg. 4437, May 9, 1962) and an appeal from no member bank shall pay interest on any time deposit the Board's action had been taken to said Court or savings deposit in any manner, directly or indiof Appeals by Bank of New Orleans & Trust Comrectly, or by any method, practice, or device whatsoever. No member bank shall pay interest on any time pany and Guaranty Bank & Trust Company, both 1084 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1085 of New Orleans, Louisiana ("the opposing Order Under Section 3 of the banks"). Bank Holding Company Act In order to assist the Board in its reconsidera- The Board of Governors issued the following tion of the Application pursuant to said remand Order and Statements in connection with action and in accordance with said opinion of the Sudenying an application for permission to become preme Court, the persons designated in the cona bank holding company: cluding paragraph of this Order are hereby afforded an opportunity to submit briefs to the BANCORPORATION OF MINNESOTA, Board on the following questions: ROCHESTER, MINNESOTA (1) Would consummation of Applicant's plan to become a bank holding company result in In the matter of the application of Bancorpor- Whitney National Bank in Jefferson Parish ation of Minnesota, Inc. for approval of action becoming a branch of Whitney National to become a bank holding company through the Bank of New Orleans in violation of section acquisition of voting shares of Olmsted County 5155 of the U.S. Revised Statutes (12 U.S.C. Bank and Trust Company, Rochester, Lake City 36)? State Bank, Lake City, and Bank of Minneapolis (2) Do the terms of Louisiana Act No. 275 of and Trust Company, Minneapolis, all in Min- 1962 (La. Stat. Ann. tit. 6, §§ 1001-1006) nesota. prohibit consummation of Applicant's plan? (3) If Act No. 275 were construed to prohibit ORDER DENYING APPLICATION UNDER consummation of Applicant's plan, would BANK HOLDING COMPANY ACT said Act contravene any provision of the There has come before the Board of Gover- Constitution or statutes of the United States? nors, pursuant to section 3(a)(l) of the Bank (4) Should the Board postpone making its deci- Holding Company Act of 1956 (12 U.S.C. 1842 sion upon reconsideration until termination (a)(l)) and section 222.4(a)(l) of Federal of the pending suit in the Nineteenth Judicial Reserve Regulation Y (12 CFR 222.4(a)(l)), District Court of Louisiana (Whitney National an application by Bancorporation of Minnesota, Bank in Jefferson Parish et. al. v. James, Inc., Rochester, Minnesota, for the Board's prior State Bank Commissioner, No. 106682, filed approval of action whereby Applicant would be- May 4, 1965) come a bank holding company through the acqui- (a) in the event question (1) is answered sition of up to 100 per cent of the outstanding by the Board in the negative? voting shares of Olmsted County Bank and Trust (b) regardless of the Board's conclusion Company, Rochester, and Lake City State Bank, as to question (1)? Lake City, both in Minnesota, and up to 96 per cent of the outstanding voting shares of Bank of Applicant may submit a brief on these questions Minneapolis and Trust Company, Minneapolis, to the Board not later than twenty days after the Minnesota. date of this Order. The opposing banks and the As required by section 3(b) of the Act, the State Bank Commissioner of Louisiana may submit Board notified the Minnesota State Commissioner answering briefs not later than twenty days after of Banks of the receipt of the application and retheir receipt of Applicant's brief. Applicant may quested his views and recommendation. The Comsubmit a further brief not later than ten days after missioner recommended approval of the applicaits receipt of said answering briefs. A copy of each tion. brief shall be transmitted promptly to counsel for Notice of Receipt of Application was published the other persons designated in this paragraph. in the Federal Register on May 16, 1964 (29 Dated at Washington, D.C., this 23rd day of F.R. 6454), which provided an opportunity for July, 1965. the filing of comments and views regarding the By order of the Board of Governors. proposed acquisition, and the time for filing such (Signed) MERRITT SHERMAN, comments and views has expired and all com- Secretary. ments and views filed with the Board have been [SEAL] considered by it. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1086 FEDERAL RESERVE BULLETIN • AUGUST 1965 IT IS HEREBY ORDERED, for the reasons set forth president and a director of Applicant, and presiin the Board's Statement of this date, that the dent, a director, and owner, directly and indisaid application be and hereby is denied. rectly, of 24 per cent of the stock of Medical Investment Corporation, Minneapolis, Minnesota Dated at Washington, D.C., this 2nd day of ("Medical"). According to information submitted August, 1965. by Applicant, Medical owns or has options to By order of the Board of Governors. purchase 60 per cent of the outstanding shares Voting for this action: Chairman Martin, and Gover- of Olmsted Bank. Applicant's President is chief nors Balderston, Robertson, and Shepardson. Voting executive officer of Olmsted Bank. Of Medical's against this action: Governor Mitchell. Absent and 523,533 shares outstanding, 104,450 are owned not voting: Governor Daane. Governor Maisel did not participate in this action. by Financial Underwriters Incorporated ("Financial"), a Minneapolis corporation, whose presi- (Signed) MERRITT SHERMAN, Secretary. dent and sole owner is Applicant's President. He also owns directly an additional 22,375 of Medi- [SEAL] cal's shares. STATEMENT Applicant presently has outstanding 50 shares Bancorporation of Minnesota, Inc. ("Appli- of $2 capital stock which are owned by Medical. cant"), has applied for permission to become a Applicant proposes to issue 230,200 additional bank holding company, pursuant to section 3(a) shares through a private sale at $20 per share, (1) of the Bank Holding Company Act, through with a resulting issuance cost between one and two the acquisition of up to 100 per cent of the out- per cent of the total sales price. Thus, anticipating standing 5,500 voting shares of Olmsted County a total sales price of $4,604,000, Applicant would Bank and Trust Company, Rochester, Minnesota incur issuance costs of approximately between ("Olmsted Bank"), and of the 5,000 outstand- $46,000 and $92,000. Following consummation ing shares of Lake City State Bank, Lake City, of the aforementioned stock issue, Applicant pro- Minnesota ("Lake Bank"); and 48,000 (96 per poses to acquire 3,300 shares of Olmsted Bank cent) of the 50,000 outstanding shares of Bank now owned by or optioned to Medical. Applicant of Minneapolis and Trust Company, Minneapolis, would acquire for cash 2,173% shares of Olm- Minnesota ("Bank of Minneapolis"). sted Bank from Medical at a price of $750 per Views and recommendation of supervisory au- share, or an aggregate price of $1,630,000. This thority. As required by section 3(b) of the Act, sale price represents the cost to Medical for its notice of receipt of the application was sent to acquisition of 2,700 shares, of which 1,873 shares the Minnesota State Commissioner of Banks re- were acquired on August 13, 1962, and 827 questing his views and recommendation. The shares on August 13, 1963. Applicant would ac- Commissioner recommended approval of the ap- quire the remaining 526% of Medical's originally plication. acquired 2,700 shares by exchanging therefor, Statutory factors. Section 3(c) of the Act re- 19,750 of Applicant's shares. At Applicant's isquires the Board in determining whether to ap- sue price of $20 for each of its shares, the exprove this application, to consider the following change ratio represents an acquisition price of factors: (1) the financial history and condition $750 per share for the 526% shares, or an agof the proposed holding company and the banks gregate price of $395,000. Pursuant to Applicant's concerned; (2) their prospects; (3) the character proposal, the remaining 600 of the 3,300 shares of their management; (4) the convenience, needs, of Olmsted Bank are optioned to Medical and and welfare of the communities and the area con- would be acquired by Applicant for cash at a cerned; and (5) whether the effect of the proposal price of $172 per share—the proposed cost of would be to expand the size or extent of the such shares to Medical. These 600 shares are bank holding company system involved beyond equal in number to Medical's proportionate inlimits consistent with adequate and sound bank- terest in an additional issue of shares of Olmsted ing, the public interest, and the preservation of Bank in March 1964 at $150 per share. competition in the field of banking. Applicant proposes to offer to Olmsted Bank's Background. Applicant's principal organizer is minority shareholders (exclusive of Applicant's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1087 LAW DEPARTMENT President, who owns 153 shares) the option to formation in November and December, together acquire their shares of Olmsted Bank at a price with further amendments in its proposal. A final of $750 per share for (1) all cash; (2) Appli- amendment to the proposal was made by Applicant's stock on a basis of $20 per share; or (3) cant at the end of January 1965. The proposal cash for 80 per cent of the total purchase price now before the Board reflects the several amendof shares tendered at a price of $750 per share, ments to the original proposal made by Applicant and 20 per cent in Applicant's stock. in an effort to meet questions raised by the staffs In respect to Lake Bank, 4,260 of the Bank's of the Board and the Reserve Bank. outstanding 5,000 shares are owned by Financial Four directors of Olmsted Bank (excluding which, according to the application, is wholly Applicant's President), who had apparently purowned by Applicant's President and principal or- chased at least 721 shares of Olmsted Bank stock ganizer. He is also the executive officer of Lake from numerous holders, were asked by the Board Bank. Applicant proposes to acquire, 2800 shares to make known the price per share paid for these of Lake Bank for cash at $230 per share or a 721 shares. These shares were acquired at various total of $644,000, the price paid for the shares times either prior to the sale or prior to or followby Financial on August 1, 1963. An additional ing the optioning of controlling interest in the 1,460 shares of Lake Bank would be acquired Bank to Medical. The four directors declined to for cash from Financial at its cost of $120 per disclose the price that had been paid for the 721 share, or an aggregate price of $175,200. These shares of Olmsted Bank. Two of the four, who shares were acquired by Financial in mid-Jan- also held positions as directors of Applicant, reuary 1964. As shown later, from the date of ac- signed such positions. The four remain as direcquisition of these shares to the present, Financial tors of Olmsted Bank. has received the rather substantial dividends paid Financial history and condition, and prospects on this stock. If this application is approved, Ap- of Applicant and the Banks. Applicant, being plicant would offer to all minority shareholders newly formed, has no financial history. While of Lake Bank the opportunity, within a stated Applicant's approximate net worth and quick period, to sell their stock to Applicant at $230 asset position would depend upon the mode of per share, payable either in cash or in Applicant's acquisition of minority interests in Olmsted Bank shares at a per share price of $20. and Lake Bank, it appears that neither factor Finally, Applicant proposes to acquire up to would be such as to preclude approval of the 96 per cent of the 50,000 outstanding shares of application on the basis of financial condition, Bank of Minneapolis by an exchange of 1.2 assuming formation of Applicant as proposed. shares of Applicant for each share of Bank of The financial history and condition of both Olm- Minneapolis, an exchange based on the original sted Bank and Lake Bank are considered satisissue price of the Bank's shares, and a value of factory. While Bank of Minneapolis is of relatively $20 per share of Applicant's stock. Applicant's recent origin, nothing in the record before the President and director is also the president and Board indicates an unsatisfactory financial history a director of Bank of Minneapolis. or condition. Although the Board believes Ap- Application for approval of the acquisitions plicant's estimate of its income from insurance proposed was filed over one year ago. Due to agencies' and service company subsidiaries' operaan automobile accident involving Applicant's tions may be somewhat over-optimistic, Appli- President, communications regarding this appli- cant's prospects for reasonably profitable operacation were virtually suspended until early Oc- tions are, nevertheless, satisfactory. Similarly sattober 1964, at which time substantial additional isfactory are the prospects of Olmsted Bank and information regarding the application was sub- Lake Bank. Based upon its favorable downtown mitted by Applicant in response to an earlier re- location of Bank of Minneapolis and its deposit quest by the Board. Included in the submission position after nearly six months of operation were significant modifications in Applicant's pro- ($2,675,000), the prospects for Bank of Minneposal. After questions were raised by the staffs apolis are considered satisfactory. of the Board and the Federal Reserve Bank of The Board concludes that while the prospects Minneapolis, Applicant submitted additional in- of the banks as subsidiaries of the proposed hold- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1088 FEDERAL RESERVE BULLETIN • AUGUST 1965 ing company appear satisfactory, their prospects able result of such proposal, an amendatory proare equally satisfactory assuming continued opera- posal was immediately forthcoming purporting to tion independent of Applicant's ownership and resolve the possible conflict. Through these several control. amendments, many of which were effected through Management. In a great number of applications exchange of correspondence between System repdecided by the Board under the Act, the decisive resentatives and Applicant's President, some of factors are those relating to the convenience, which were the result of oral conversations between needs, and welfare of the communities involved the foregoing parties, certain of the bases for oband the probable competitive effect of the Appli- jections were removed. However, as Applicant's cant's proposal. The banking factors, including proposal has finally come before the Board for those relating to management, while carefully determination, there remain several aspects relatconsidered and weighed by the Board in each case, ing to formulation of Applicant's proposal, and are usually found to offer no bar to approval of particularly actions by Applicant's President and the application. Infrequently, however, the Board certain of his associates, of a self-serving nature is presented with an application as to which evi- that in the Board's judgment militate against apdence of record makes decisive the factor relating proval of the application in the absence of strong to the managements of Applicant and its subsidi- countervailing evidence. ary banks. Such is the case now before the Board. Exemplifying the type of action or conduct that It is important to the analysis that follows that has given rise to the Board's concern is the matter the term "management" be understood as referring of the purchase of stock of Olmsted Bank by four to and encompassing, to the extent appropriate, of the directors of that Bank before sale and before both the directorate of each of the proposed sub- or after option of that same stock to Medical. In sidiary banks and the principal operating officer the course of the Board's analysis of the applicaor officers of those banks. As earlier stated, Appli- tion, Applicant's President was asked to advise the cant's President and director is the motivating force Board of the dates on which certain directors purbehind this proposal; he is executive vice president chased shares of Olmsted Bank that were later and a director of Olmsted Bank, and owns, directly sold or optioned to Medical, and the price paid by and indirectly, 24 per cent of the voting shares of the directors for these shares. The Board was ad- Medical which, in turn, owns or has options on a vised that the directors in question declined to distotal of 60 per cent of the voting stock of Olm- close the price at which they had purchased shares sted Bank; he is president and a director of Lake of Olmsted Bank. This information has never been Bank, and, according to the application, wholly furnished. Two of the directors who declined to owns Financial Corporation which, in turn, owns give this information were also directors of Appli- 85 per cent of the voting shares of Lake Bank; cant. They have resigned these positions but conand he is president and a director of Bank of tinue as directors of Olmsted Bank, as do the Minneapolis. Applicant's President stood in a other two directors involved. In view of the fiprominent position at both ends of this proposal. duciary position which directors of banks hold in He was and is, simultaneously, for all practical respect to the banks' shareholders, and considerpurposes, the offerer and recipient. In major re- ing the significant effect on shareholders, and the spects, he was and is in a position to formulate public dealing with a bank, of actions of the the terms upon which the proposal was or would banks' directors, the Board believes its inquiry be made and accepted. regarding the directors' acquisition of stock to be The record before the Board reflects that Ap- necessary and appropriate. The Board further beplicant's proposal, as originally submitted, evi- lieves that the directors from whom such informadenced numerous aspects of dealings or proposed tion was sought ought similarly to have recognized dealings between and among Applicant's President this responsibility. Accordingly, the failure of these and certain of his associates that reflected, prima directors to respond to the inquiries made reflects facie, a lack of arms' length dealings. In respect an attitude toward their responsibilities that the to nearly every such instance, when attention was Board finds inconsistent with approval of the apdirected to either the questionable nature of a plication, since such approval would enable these particular proposal or to the potentially inequit- directors to extend their sphere of influence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1089 LAW DEPARTMENT through the largest of the proposed subsidiary of Lake Bank, it is planned that Applicant would banks to the two smaller proposed subsidiary acquire 4,260 of Lake Bank's outstanding 5,000 banks. voting shares from Financial, a corporation wholly A further occurrence involving actions of cer- owned by Applicant's President who is also presitain of the directors and/or officers of Olmsted dent and a director of Lake Bank. He owns in his Bank is the action taken by them in respect to own name 100 shares (two per cent) of Lake an additional issue of Olmsted Bank stock in Bank's voting shares. The remaining shares are March 1964. In January 1964, Olmsted Bank's owned by officers and/or directors of Lake Bank. shareholders authorized an increase in the num- As originally filed and subsequently amended, the ber of the Bank's shares from 4,500 to 5,500, the application proposed that Applicant would acquire 1,000 additional shares to be sold at $150 per the 4,260 shares of Lake Bank at Financial's cost share. Stockholders of record were given the right thereof, plus interest on the purchase prices (the to subscribe to the newly authorized stock and 4,260 shares were acquired in two separate purthe directors and officers of the Bank were author- chase transactions) at the rate of 6 per cent from ized to sell and dispose of such shares of stock as the dates of acquisition by Financial to the date were not subscribed within a given period. The Jan- of sale to Applicant. The interest at 6 per cent uary 13, 1964 letter to Bank's shareholders giving would equal about $4,100 per month. them the opportunity to subscribe on a pro rata Subsequent to receipt of the original applicabasis to the newly authorized shares gave no indi- tion with certain amendments, additional informacation of the book net worth of the then out- tion was requested of Applicant's President relatstanding shares, which at December 31, 1963, was ing to income, expense, and dividend figures for approximately $380 per share. At the close of the Financial and Lake Bank. These data reflected that subscription period 206 shares of the new issue in 1963 and 1964 Lake Bank paid dividends agremained unsubscribed. Applicant's President pur- gregating $100,000, of which Financial's portion chased 141 of these shares at $150 per share, and was $85,200. These data also showed that for the the balance of 65 shares was acquired by certain 5-month period ended April 30, 1964, Financial other of Bank's officers and a director of Bank. had collected "commission income" of approxi- If the holders of these 206 shares were to sell them mately $12,000 (about $2,400 per month) with to Applicant at the $750 per share price proposed, no significant offsetting identifiable expense. As such shareholders would realize a profit of $600 best ascertained, it appears that the "commission per share on the transaction. Applicant's Presi- income" represented, at least in major part, insurdent has stated that if he sells his 141 shares to ance commission income which had previously Applicant he will do so at his cost—$150 per accrued to Lake Bank but was now being paid to share. As to the holders of the remaining 65 shares Financial. Following specific inquiry, Applicant's of the 206 shares, there has been no indication President advised the Board that the income from that if their shares are sold to Applicant it would insurance agency operations at Lake Bank was be for an amount less than the proposed $750 per accruing to Financial, but that should the applicashare. If such shareholders sold their shares to tion now before the Board be approved, such in- Applicant, the profit to be realized would total surance income would revert to Lake Bank, or $39,000 on an investment of $9,750. accrue to the bank holding company group. Although Applicant's President has stated that In November 1964, responding to a request by if he sells his 141 shares to Applicant no profit System representatives for additional information will result, the Board notes that should he retain in respect to transactions whereby stock of Olmthese 141 shares, and Applicant's proposal were to sted Bank was acquired by, or optioned to, any be consummated, it is contemplated that Olmsted director or officer of that Bank, Applicant's Pres- Bank will pay an annual dividend of $15 per ident volunteered the statement that "In the event share. Accordingly, having retained the 141 shares that any shares owned by me would at any time of Olmsted Bank, Applicant's President would be purchased or exchanged for shares of the holdrealize an annual return of 10 per cent on his in- ing company, they would be exchanged on a cost vestment. basis because as an officer of the holding company In respect to Applicant's proposed acquisition I would consider it improper and a conflict of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1090 FEDERAL RESERVE BULLETIN • AUGUST 1965 interest to receive any profit on a personal trans- the Board's view, the foregoing facts do not reflect action where I am an officer of the purchasing the standard of conduct and type of arms' length company." When his attention was called to the dealing which should attend an organizational profact that his wholly-owned corporation, Financial, posal of this nature. Nor do they appear to meashad received $85,200 in dividends on the stock ure up to the personal conduct standard to which of Lake Bank held by it and that, despite this in- Applicant's President has committed himself. come, he nevertheless proposed to have Applicant Further in respect to this standard, it is noted pay to Financial 6 per cent interest on Financial's that Applicant's President owns a 24 per cent total cost of its investment in Lake Bank stock interest in Medical which, in turn, would, under from the dates of acquisition of such stock to the Applicant's proposal, sell to Applicant a 60 per date of sale to Applicant, the application was cent interest in Olmsted Bank. Although the sale amended to eliminate Applicant's payment of in- by Medical of a 60 per cent interest in Olmsted terest to Financial. It is noted, however, that this Bank does not technically constitute a "personal payment was eliminated only after question in this transaction" insofar as Applicant's President is respect had been raised with Applicant's President, concerned, the fact remains that his 24 per cent and that as of the end of January 1965, Finan- ownership of Medical will result in profit to him cial's income from dividends on Lake Bank stock from the proposed sale of Olmsted Bank stock by exceeded by $21,000 its interest cost for carrying Medical to Applicant. Medical's basic cost for its that investment. Nothing in the several amended 60 per cent interest in Olmsted Bank would be approposals submitted by Applicant gives evidence proximately $1,733,000. Applicant proposes to of intention to pay the whole or any portion of acquire Medical's interest in Olmsted Bank for this $21,000 to Applicant by way of reduction in a total purchase price of $2,128,000. On the basis the price Applicant would pay Financial for Lake of gross cost price versus gross sales price, Medi- Bank stock. cal's profit on the transaction would be approxi- An additional point relates to the income paid mately $395,000. Interest to carry Medical's into Financial in the form of "commission income" vestment to March 31, 1965, less dividends on the which, as earlier mentioned, apparently reflects, Olmsted Bank stock received by Medical, results in major portion, income from Lake Bank's insur- in a net carrying cost of approximately $110,500. ance agency operations. While Applicant's Presi- Thus, reducing Medical's prospective profit of dent has stated that in the event the application $395,000 by $110,500, there would result a profit before the Board is approved, the insurance in- of $284,500 to Medical. As an owner of 24 per come would revert to Lake Bank or would accrue cent of Medical, Applicant's President would have to Applicant, it is not clear that such statement of his proportionate interest in the profit realized by intention refers to and encompasses amounts al- Medical. The proposal, contemplating the aforeready paid to Financial. Assuming, however, that mentioned personal benefit to Applicant's Presithe foregoing statement contemplates not only dent, was submitted to this Board for approval that future commission income would be retained at a time when Applicant's President was also by Lake Bank or paid to Applicant, but that pre- president, director, and a substantial shareholder viously received income would be returned by in Medical. Financial to Lake Bank or paid to Applicant, the Convenience, needs, and welfare of the comquestion of profit-taking to the benefit of Appli- munities and areas concerned. Olmsted Bank was cant's President is not wholly resolved. Prior to established in 1919 and, with total deposits of $27 Financial's acquisition of control of Lake Bank, million at December 31, 1964,1 is the third largthe total income from Lake Bank's insurance est of the four banks in Rochester. That city, with agency operation accrued to the Bank. Subsequent an estimated 1963 population of 45,000, is the to Financial's acquisition of ownership of Lake county seat for Olmsted County and serves the Bank, commission income was paid directly to county population as a retail shopping center and Financial. Financial's receipt of this income not focal point for the thousands who annually visit only deprived Lake Bank of its use, but enabled the Mayo Clinic. Olmsted Bank's primary service Financial, and indirectly Applicant's President, to 1 Unless othervise noted, all banking data are as of make use of the funds and earnings thereon. In this date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1091 LAW DEPARTMENT area 2 is encompassed within a 10-mile radius of While Olmsted Bank's experience in the installthe bank, and contains an estimated population ment loan field could, admittedly, be used to the of 59,000. benefit of the two smaller proposed subsidiary Lake Bank, in operation since 1873, is located banks, the Board does not view the record before about 40 miles northeast of Rochester in Lake it as evidencing any significant deficiency in the City, Minnesota, which is located in the center service rendered by the three banks in respect to of a primarily agricultural and recreational area providing installment or other types of loans. Apsituated in Wabasha County on the shores of Lake plicant has laid particular emphasis on the present Pepin, a part of the Mississippi River. Lake Bank, inability of Lake Bank to meet adequately the with total deposits of nearly $7 million, is the only loan demands of the rural area it serves. The bank in Lake City. It serves approximately 3,500 Board notes that Lake Bank has pursued an ininhabitants of Lake City, and about 1,000 addi- creasingly aggressive lending policy over the past tional persons living within Bank's primary service two years, especially in 1964, with the result that area—a "U"-shaped area extending from Lake the aggregate loans outstanding at Lake Bank have Pepin some 18 miles southwest of Bank's location increased from $2.5 million at year-end 1962 to and, according to Applicant, narrowing to seven $4 million at year-end 1964. At the latter date, miles on the northwest and southeast. Lake Bank's gross loans represented 58 per cent Bank of Minneapolis opened for business in of its total deposits. The Minnesota Commissioner November 1964. It is located in downtown Min- of Banks concluded that Lake Bank "is meeting neapolis and has a primary service area estimated the needs and welfare of that community in a by Applicant to encompass approximately 80 commendable manner." square city blocks, primarily commercial in na- The Board's conclusion in respect to the manture. Although Applicant estimates the area's per- ner in which the proposed subsidiary banks have manent population to be about 40,000, its daily met the loan demands of their areas includes a transient population is much heavier. In addition related finding that, with respect to Olmsted Bank to the numerous business enterprises located in and Lake Bank, there has been no inability to the bank's trade area, there are also residential participate qualified loans. No relevant informaapartment developments, and a sizable medical tion was available in this regard as to the Bank complex. of Minneapolis. Assuming the exercise of a rea- Applicant asserts that formation of the proposed sonable degree of management initiative, parholding company will have principally the follow- ticularly within Lake Bank, the Board is unable ing advantages to and through the proposed sub- to conclude that any of the three banks would sidiary banks: (1) it will result in an increase in fare measurably better in respect to loan sources, real estate and installment loans that will be made participations, or services as subsidiaries of Appliby the banks, principally due to Applicant's assist- cant, than they will as presently owned and operance in the solicitation and procurement of the ated. same, in the placement of real estate loans with Regarding Applicant's proposal to furnish and large institutional investors, and in facilitating train personnel for each of the banks, while Aploan participations; (2) it will permit the establish- plicant could, of course, render some assistance ment of an executive training program inuring in this respect, the Board is unable to find that, to the benefit of the three subsidiary banks; (3) it with the possible exception of Lake Bank, Appliwill provide economies of operation through cen- cant has established the existence of a need for tralized computer processing; (4) with respect to this assistance. As to Olmsted Bank, the manage- Olmsted Bank, it will facilitate the raising of ment experience that presumably would be made needed capital; and (5) it will better enable Bank available through Applicant is largely that which of Minneapolis to compete with the downtown is presently associated with that Bank. Any execu- Minneapolis banks for the area's savings accounts tive training program that Applicant might inand loan business. augurate could be readily undertaken by Olmsted Bank itself. Its size makes improbable any sig- 2 The area from which Applicant estimates at least nificant difriculty in obtaining executive or other 75 per cent of bank's deposits of individuals, partnerships, and corporations ("IPC deposits") originate. personnel. The favorable location of Bank of Min- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1092 FEDERAL RESERVE BULLETIN • AUGUST 1965 neapolis, and its prospects for continued growth, total deposits projected by Applicant for Bank's make similarly unlikely any real problem in re- first full year of operation. After six months' operspect to recruitment of competent personnel. Al- ation, total deposits exceeded two-thirds of the though Lake Bank's location should constitute a total of such deposits projected for the Bank's rather strong inducement to prospective personnel, second full year of operation. Total time and sav- Applicant's assistance in respect to procurement ings deposits of individuals, partnerships, and corand training of bank personnel through Olmsted porations held by the Bank at the end of six Bank constitutes a consideration weighing some- months' operation exceeded 50 per cent of the what toward approval of the application. At the total time deposits projected for the Bank's secsame time, it may be reasonably assumed that, in ond full year of operation. On the basis of the view of the common interest in the two banks on record before the Board, including the foregoing the part of Applicant's President, any necessary data relating to Bank's deposit structure, and figassistance in respect to personnel placement in ures showing that Bank's outstanding loans at De- Lake Bank will be available regardless of the na- cember 31, 1964, exceeded 50 per cent of its total ture of Lake Bank's affiliation with Olmsted Bank. deposits, the Board concludes that the demands Applicant's stated intention to make available for particular banking services that Applicant to its proposed subsidiary banks a centralized asserted would be met by Bank are, in fact, now computer processing facility constitutes but a being met by Bank. Ownership of Bank of Minneminimal consideration in favor of approval of the apolis by Applicant does not, in the Board's opinapplication. Olmsted Bank presently utilizes a ion, offer such potential for improvement over computer. The Board assumes that Olmsted Bank's Bank's present service to the public as to consticomputer facilities are or can be made available tute a factor favoring approval of the application. to the other two proposed subsidiary banks under Effect of proposed acquisitions on adequate and existing relationships. Even independent of these sound banking, public interest, and banking comrelationships, Lake Bank and Bank of Minneapolis petition. There are four registered bank holding should be able to obtain requisite or desired com- companies located in Minnesota controlling 125 puter service through correspondent bank or com- of the 729 commercial banking offices in the State mercial sources. arid $3.4 billion of deposits, representing, respec- In support of its proposal, Applicant asserts tively, 17 per cent of the State's commercial bankthat because its stock would have greater market- ing offices and 60 per cent of the total deposits ability than would stock of Olmsted Bank, its held by those banks. Approval of Applicant's proownership of Olmsted Bank would assure a more posal would increase by .6 and .7 of one per cent, certain and ready source for a substantial increase respectively, the percentage of total commercial in paid-in capital over a period of time. Assuming banking offices and deposits in the State controlled a potential need for increased capital in Olmsted by bank holding companies. Bank, the Board's view of the Bank's operating In the City of Rochester, consummation of Aphistory, including sales of additional stock in 1958, plicant's proposal would result in three of the four 1959, and 1964, together with the potential for banks therein being subsidiaries of bank holding economic and population growth in the Rochester companies, controlling deposits that would equal, area, leads to the conclusion that Olmsted Bank in the aggregate, 95 per cent of the total deposits could meet foreseeable capital requirements with- of banks in Rochester. Within Olmsted County, out Applicant's intervention. bank holding company subsidiaries would control At the time this application was filed, Bank of 87 per cent of the total deposits held by the eight Minneapolis had not opened for business. Con- banks located therein. sequently, the application dealt with the nature There are no competing banks located in Lake arid scope of services that Bank of Minneapolis Bank's primary service area. According to Appliwould render as a subsidiary of Applicant. In the cant, four banks located outside of that area commeantime, Bank was opened for business in No- pete therein. Two of these competing banks, one vember 1964. At December 31, 1964, only two of which is a subsidiary of a registered bank holdmonths following its opening for business, Bank ing company, are located some 18 miles northwest had total deposits that exceeded by $40,000 the of Lake City in Red Wing. The remaining two Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1093 competing banks are located 14 and 20 miles, ownership and operation of the three proposed respectively, from Lake Bank. The banks com- subsidiary banks would not improve measurably peting within Lake Bank's primary service area the scope or force of competition now offered by range in size from approximately $1 million of these banks. deposits to $13 million of deposits. Further, in view of the 40 and 85 miles, re- There are located within the designated pri- spectively, that separate Olmsted Bank from Lake mary service area of Bank of Minneapolis four Bank and Bank of Minneapolis, it is reasonably banking offices, two of which are the main and a concluded that the amount of existing and potenbranch office of Northwestern National Bank of tial competition between and among the three pro- Minneapolis, the largest bank in the State, with posed subsidiary banks is insignificant. Hence, total deposits of $653 million, the principal sub- elimination or preclusion of such competition by sidiary of Northwest Bancorporation, a registered consummation of Applicant's proposal is not prebank holding company. In addition, Bank of Min- sented as a consideration adverse to approval. neapolis competes with five other banks located Nor, as indicated above, does the Board believe outside of, but competing within, its service area. that Applicant's ownership of the three banks These banks, located variously from 6 to 13 blocks would likely give any of them a measurably betfrom the site of Bank of Minneapolis, including tered competitive position than they now possess the main office of First National Bank of Minne- in respect to other banks competing in the areas apolis, the largest subsidiary of First Bank Stock involved. Accordingly, it appears that such owner- Corporation, a registered bank holding company, ship would be consistent with the preservation of have deposits ranging from about $6 million to banking competition. $602 million. Conclusion. The considerations hereinbefore dis- Six of the nine banks that are either located in cussed relating to the financial history, condition, or compete within the primary service area of and prospects of Applicant and the proposed sub- Bank of Minneapolis are subsidiaries of registered sidiary banks, to the convenience, needs, and welbank holding companies. Their combined deposits fare of the communities involved, and to the probrepresent 98 per cent of the aggregate deposits able effect of this proposal on banking competiheld by the nine banks. This figure somewhat exag- tion therein, are consistent with approval of the gerates the actual deposits controlled by bank application. However, the Board finds that the holding company subsidiaries inasmuch as deposits evidence relevant to the management factor, enof certain of their branch offices that apparently compassing as it does all phases of past and prosdo not compete within Bank of Minneapolis's pri- pective operations of the Applicant and the three mary service area are not readily available. How- banks involved, is of sufficiently adverse nature ever, it can be concluded that subsidiaries of bank as to outweigh considerations consistent with apholding companies presently control a major por- proval of the application. tion of the total deposits of all banks in the pri- On the basis of all the relevant facts as contained mary service area designated for Bank of Minne- in the record before the Board and in the light of apolis. That Bank's deposits represent but about the factors set forth in section 3(c) of the Act, it .2 of one per cent of the deposits of all banks with is the Board's judgment that the transaction here offices in its primary service area. proposed would not be consistent with the public While consummation of Applicant's proposal interest and that the application should therefore would further increase the amount of banking re- be denied. sources of the City of Rochester and of the pri- DISSENTING STATEMENT OF GOVERNOR MITCHELL mary service area of Bank of Minneapolis that would be concentrated in bank holding company The Board's action in denying approval of the systems, consummation of the proposal here in- formation of the bank holding company here provolved would not, in reality, appear to offer a posed is likely to be self-defeating. It is premised, sufficiently adverse competitive result as to require in the main, on a finding that the action and modenial of this application. The record before the tives of certain of the officers and directors of the Board, viewed in a light most favorable to the Ap- key institutions involved have been of a self-servplicant, warrants the conclusion that Applicant's ing nature and indicative of an undue disregard Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1094 FEDERAL RESERVE BULLETIN • AUGUST 1965 for the public responsibilities in banking. Certain poration, and the Attorney General on the comof these parties now own and control the man- petitive factors involved in the proposed merger, agement of the two largest of the three banks IT IS HEREBY ORDERED, for the reasons set forth which would become the operative units of the in the Board's Statement of this date, that said apholding company. The Board appears to conclude plication be and hereby is approved, provided that that denial of the application would somehow se- said merger shall not be consummated (a) within cure the public in the future against their actions seven calendar days after the date of this Order and postures. In respect to at least two of the banks or (b) later than three months after said date. involved the Board's denial will perpetuate the Dated at Washington, D. C, this 27th day of present ownership and management and, no doubt, July, 1965. their imperfections. It seems to me that denial By order of the Board of Governors. will have the result, regrettable from the stand- Voting for this action: Chairman Martin, and Goverpoint of the public interest, of enabling the indi- nors Balderston, Shepardson, and Daane. Voting viduals involved to pursue the same owner-man- against this action: Governors Robertson, Mitchell, and Maisel. agement practices as criticized by the majority. (Signed) MERRITT SHERMAN, The public interest, therefore, might well be Secretary. best served in this case if the holding company were established and, thereafter, subjected peri- [SEAL] odically to the Board's judgment of appropriate, STATEMENT responsible management standards and actions. State-Planters Bank of Commerce and Trusts, Orders Under Bank Merger Act Richmond, Virginia ("State-Planters"), with total deposits of $295 million, has applied, pursuant to The following Orders and Statements were isthe Bank Merger Act of 1960 (12 U.S.C. 1828 sued in connection with actions by the Board of (c)), for the Board's prior approval of the merger Governors with respect to applications for apof that bank and The Tri-County Bank, Mechanproval of the merger or the acquisition of assets of icsville, Virginia ("Tri-County"), which has total banks: deposits of $11 million.1 The banks would merge STATE-PLANTERS BANK OF COMMERCE under the charter and title of State-Planters, a AND TRUSTS, RICHMOND, VIRGINIA member of the Federal Reserve System. Incident In the matter of the application of State- to the merger, the four offices of Tri-County would Planters Bank of Commerce and Trusts for ap- become branches of the resulting bank, increasing proval of merger with The Tri-County Bank. to 24 the offices of that bank. Under the law, the Board is required to con- ORDER APPROVING MERGER OF BANKS sider, as to each of the banks involved, (1) its There has come before the Board of Governors, financial history and condition, (2) the adequacy pursuant to the Bank Merger Act of 1960 (12 of its capital structure, (3) its future earnings U.S.C. 1828(c)), an application by State-Planters prospects, (4) the general character of its manage- Bank of Commerce and Trusts, Richmond, Virment, (5) whether its corporate powers are conginia, a State member bank of the Federal Reserve sistent with the purposes of 12 U.S.C, Ch. 16 System, for the Board's prior approval of the (the Federal Deposit Insurance Act), (6) the conmerger of that bank and The Tri-County Bank, venience and needs of the community to be served, Mechanicsville, Virginia, under the charter and and (7) the effect of the transaction on competititle of the former. As an incident to the merger, tion (including any tendency toward monopoly). the four offices of The Tri-County Bank would The Board may not approve the proposed merger become branches of the resulting bank. Notice of unless, after considering all of these factors, it the proposed merger, in form approved by the finds the transaction to be in the public interest. Board, has been published pursuant to said Act. Banking factors. The financial history and the Upon consideration of all relevant material in asset condition of State-Planters and Tri-County the light of the factors set forth in said Act, inare satisfactory. State-Planters' capital structure cluding reports furnished by the Comptroller of the Currency, the Federal Deposit Insurance Cor- 1 Deposit figures are as of December 31, 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1095 is adequate, its earnings prospects are favorable, which represented an increase since 1960 of over and its management is capable. 30 per cent. Consummation of the proposal would provide a Hanover County is traversed by important highbasis for improved earnings for what has been ways, including the new Interstate Route 95, con- Tri-County, the earnings of which have been con- necting Richmond and the Washington, D. C, siderably below the average for banks of compa- area. Several businesses have recently expanded rable size in the district; it would strengthen the or are in process of establishing or expanding management of Tri-County Bank; and it would plants in Hanover County, and many requests to remedy Tri-County's capital position, which is rezone land for industrial use are being processed below a desirable level. by the appropriate authority. The resulting bank, which would be under the Tri-County's relatively low lending limit of management of State-Planters, would have a sat- about $79,000 has been a restricting factor on its isfactory asset condition, an adequate capital ability to serve credit needs in Hanover County. structure, and favorable earnings prospects. On several occasions, for example, Tri-County Neither the corporate powers of the two exist- has had to participate or place elsewhere portions ing banks, nor those of the resulting bank, are, or of loans that exceeded its loan limit, while other would be, inconsistent with the purposes of 12 such loans to businesses in Hanover County have U.S.C., Ch. 16. from time to time been granted directly by larger Convenience and needs of the communities. banks in the Richmond area. State-Planters operates its main office and nine In addition to an increased lending limit of over branches in the City of Richmond, four branches $2 million, consummation of the proposal would in adjoining Henrico County, and five branches make available at the offices now operated by Triand a facility about 25 miles to the south of Rich- County the broad array of banking services ofmond in the Petersburg-Hopewell area. fered by State-Planters, including trust appoint- In Hanover County to the north of Richmond ments, construction financing, dealer and accounts are Tri-County's main office at Mechanicsville receivable financing, small business term loans, and the bank's three branches at Doswell, Han- lock-box collection facilities, and loans for workover, and Beaverdam. Mechanicsville is seven ing capital and equipment purchases to profesmiles and the other three municipalities are from sional people. 15 to 30 miles from downtown Richmond. Effec- While offices of large Richmond banks are tuation of the proposal would affect primarily the within reasonable driving distances of Tri-County banking needs and convenience in Hanover offices, effectuation of the proposal would bring to County. the Hanover County banking offices now operated Mechanicsville is a suburb of Richmond and by Tri-County, aggressive and more forward-lookthe center of several new housing developments. ing management policies. This, together with the The small municipalities in which Tri-County's resultant increase in lending limits and accessibilbranches are located are dependent for economic ity of broader banking services at those offices, support largely from agricultural pursuits, al- would make a positive contribution towards prothough lumbering or wood processing and quarry- viding in the County financial facilities more in ing are also important. Many of the residents of keeping with the expansion and growth in prog- Hanover County commute to employment in Rich- ress in the area. mond. Competition. The service area2 of State- Since October 1963, Hanover County has been Planters comprises the City of Richmond, Henpart of the Richmond Standard Metropolitan Sta- rico County, and the Petersburg-Hopewell area, tistical Area ("RSMSA"). This is indicative of while the service area of Tri-County is Hanover the growth and development that is occurring in County. the County. The population of the area now com- The nearest offices of the two banks are about prising RSMSA increased during the decade ending in 1960 by 25 per cent, as did the population 2 That area from which a bank obtains 75 per cent of Hanover County. However, by mid-19 64, the or more of its deposits of individuals, partnerships, estimated population of the County was 31,400, and corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1096 FEDERAL RESERVE BULLETIN • AUGUST 1965 seven miles apart, and offices of other commercial an effective competitor in the County; nor would banks are located in the intervening area. A close it appear that any other bank would be adversely correspondent relationship exists between the two affected. banks, and substantial differences exist between Summary and conclusion. The substitution of the classes of loans and deposits of the two insti- branches of State-Planters for the offices of Tritutions. County would not increase concentration of bank- The existing competition between the participat- ing resources by more than a minimal amount, ing banks that would be eliminated by consumma- and the existing competition that would be elimition of the proposal is not significant. Under State nated is not significant. At the same time, it would law, neither bank can establish de novo branches provide increased banking accommodations and in the other's service area, since the City of Rich- accessibility to expanded banking services, under mond and Hanover County are not contiguous. aggressive management, more consonant with the State-Planters, the third largest commercial rapid development and growth of Hanover County, bank in Virginia and the second largest in the now barred to de novo branching by Richmond Richmond area, is a subsidiary of United Virginia banks. On balance, the weight of the various con- Bankshares, Incorporated, the largest registered siderations in this case is favorable. bank holding company in the State. Accordingly, the Board finds that the proposed If the proposal were effectuated, the shares of merger would be in the public interest. total deposits of the commercial banks in the State held by all of the subsidiary banks of United DISSENTING STATEMENT OF GOVERNOR Virginia Bankshares, Incorporated (less than 12 ROBERTSON per cent), and by State-Planters (less than 7 per I can see little excuse for permitting the second cent) would be increased by only nominal largest bank in Richmond to substitute four of its amounts, and State-Planters' share of total deposits branches for the four offices of The Tri-County of all commercial banks in the service area of the Bank, thus eliminating one of the two independent resulting bank would be increased by about 1 per banks now operating in Hanover County, in the cent to 30 per cent. suburban periphery of Richmond, and compelling Tri-County's share of the total deposits of the the only remaining small bank to compete with three commercial banks with offices in Hanover branches of two much larger banks instead of County is less than 40 per cent. First and Mer- only one. chants National Bank of Richmond—the State's The present and potential future competition largest commercial bank—holds over 33 per cent between the applicant and The Tri-County Bank of the deposits in the County at its branches at obviously will be eliminated, which—under the Ashland and Montpelier (16 and 22 miles to the statute—must be considered an adverse factor. north of Richmond, respectively). The Hanover This adverse factor is not offset by the banking National Bank of Ashland holds over 27 per cent convenience arid needs factor. Evidence has not of such deposits. In the section of Henrico County been submitted that even suggests that convenient bordering on the southern portion of Hanover banking services for Hanover County are not now County are the offices of several banks, one of being supplied or will not be in the future. Those which is the Mechanicsville Pike branch of The few businesses whose credit requirements may ex- Bank of Virginia, the fifth largest bank in the ceed the capacity of The Tri-County Bank now State, two miles from Tri-County's main office. have convenient access to offices of some of the Consummation of the proposal would provide largest banks in the State. The applicant itself has increased competition in Hanover County for First a branch office located only seven miles from The and Merchants National Bank of Richmond, State- Tri-County Bank's head office and is in a position Planters' principal competition. Hanover National to readily extend its services within Hanover Bank is well established in the County, and is com- County. peting successfully with the Ashland branch of The Tri-County Bank is a small, strong, inde- First and Merchants. The proposal, if consum- pendent institution. Its growth in the past ten years mated, would not appear to affect adversely the has been excellent. Over this period its deposits ability of Hanover National Bank to continue as have increased by 160 per cent and its loans by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1097 LAW DEPARTMENT 270 per cent. With four offices strategically dis- mitting the holding company access to banking tributed, it is providing and can continue to pro- markets in Virginia it does not now serve—quite vide the type of banking services evidently pre- to the contrary. State-wide banking is permitted ferred by many people in the county. Its growth, in Virginia and under this policy we believe the percentage-wise, has been far greater than that benefits of competition are most likely to be of the population of an area which has not as yet achieved if the larger banks and holding comexperienced a fundamental change in its predomi- panies have moderate positions in several comnantly agricultural economy. While there is some munities rather than a dominant role in a few. need for The Tri-County Bank to provide man- BANK OF VIRGINIA, RICHMOND, agement succession and to strengthen its capital VIRGINIA structure, the meeting of these needs should not present a serious problem—especially for a bank In the matter of the application of The Bank located so near a large metropolitan area. of Virginia for approval of merger with Farmers The consummation of this merger will deprive Bank of Boydton. the public of the facilities and services of a small, local, viable, independent bank, which in itself is ORDER APPROVING MERGER OF BANKS contrary to the public interest. In addition, the There has come before the Board of Governors, merger will bring four more banking offices under pursuant to the Bank Merger Act of 1960 (12 control of the largest bank holding company in the U.S.C. 1828(c)), an application by The Bank of State of Virginia, thus furthering the trend toward Virginia, Richmond, Virginia, a State member concentration of banking resources in holding bank of the Federal Reserve System, for the companies. This concentration is being accom- Board's prior approval of the merger of that bank plished largely through mergers by holding com- and Farmers Bank of Boydton, Boydton, Virginia, pany controlled banks which are in positions to under the charter and title of the former. As an pay fat premiums which the shareholders of the incident to the merger, the sole office of Farmers acquired banks cannot be expected to resist. Over Bank of Boydton would become a branch of the the past ten years this very applicant has, by this resulting bank. Notice of the proposed merger, route, acquired eight banking offices and two in form approved by the Board, has been pubfacilities with total deposits representing over 16 lished pursuant to said Act. per cent of its deposit volume as of the end of Upon consideration of all relevant material in 1964. It now holds 29 per cent of the total de- the light of the factors set forth in said Act, inposits in the Richmond-Petersburg-Hopewell serv- cluding reports furnished by the Comptroller of ice area. As a result of these and other mergers, the Currency, the Federal Deposit Insurance Corthat area now finds itself with over 60 per cent of poration, and the Attorney General on the comits banking resources concentrated in only two petitive factors involved in the proposed merger, banks, and further concentration should be IT IS HEREBY ORDERED, for the reasons set forth in the Board's Statement of this date, that said avoided. application be and hereby is approved, provided I would deny the application. that said merger shall not be consummated (a) within seven calendar days after the date of this DISSENTING STATEMENT OF GOVERNOR MITCHELL Order or (b) later than three months after said AND GOVERNOR MAISEL date. Dated at Washington, D. C, this 2nd day of We concur in the dissent of Governor Robert- August, 1965. son except as to his strictures on the size and By order of the Board of Governors. growth of the holding company in the State of Vir- Voting for this action: Chairman Martin, and Goverginia. While we believe United Virginia Banknors Balderston, Robertson, Shephardson, Mitchell, shares, Incorporated, through State-Planters is as Daane, and Maisel. dominant in the Richmond metropolitan area as it (Signed) MERRITT SHERMAN, should be permitted to become via mergers, we see Secretary. no effects hostile to the public interest to per- [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1098 FEDERAL RESERVE BULLETIN • AUGUST 1965 STATEMENT Mecklenburg County (1960 population 31,000) and particularly in the area of the small town of The Bank of Virginia, Richmond, Virginia Boydton, the county seat, where Farmers Bank is ("Virginia Bank"), with total deposits of $193.4 located. While the economy of the county is primillion, has applied, pursuant to the Bank Merger marily dependent upon agriculture, several manu- Act of 1960 (12 U.S.C. 1828(c)), for the Board's prior approval of the merger of that bank and facturing firms have located in the county in the Farmers Bank of Boydton, Boydton, Virginia past few years, creating new jobs for approxi- ("Farmers Bank"), with total deposits of $3.4 mately 1,500 people, and the outlook for continued million.1 The banks would merge under the charter population and manufacturing growth is good. and title of Virginia Bank, a member of the Fed- While Farmers Bank, which provides only eral Reserve System. Virginia Bank is a subsidiary limited banking services, has had a deposit growth of Virginia Commonwealth Corporation, Rich- at a rate equal to that of the four other banks mond, Virginia, a registered bank holding com- operating in the county, its loan portfolio has expany. Incident to the merger, the sole office of panded by less than one half of the county's Farmers Bank would become a branch of the re- average during the past five years, and its ratio of sulting bank, increasing to 28 the offices of that loans to deposits is the lowest of any of the county bank. banks. The substitution of an office of Virginia Under the law, the Board is required to con- Bank for that of Farmers Bank would make availsider, as to each of the banks involved, (1) its able to the county much larger banking resources financial history and condition, (2) the adequacy and a complete range of banking services, includof its capital structure, (3) its future earnings ing a trust department. Such a change should have prospects, (4) the general character of its man- a favorable influence upon the local economy and agement, (5) whether its corporate powers are afford added convenience to those presently forced consistent with the purposes of 12 U.S.C, Ch. 16 to seek the services of larger out-of-area banks and (the Federal Deposit Insurance Act), (6) the con- other financial institutions. venience and needs of the community to be served, Competition. Since Virginia Bank's closest office and (7) the effect of the transaction on competi- is about 51 miles from Farmers Bank, with several tion (including any tendency toward monopoly). bank offices located in the intervening area, there The Board may not approve the transaction un- is virtually no competition between the two banks. less, after considering all of these factors, it finds Farmers Bank, with only 10 per cent of the the transacion to be in the public interest. county deposits, is the smallest of the five banks Banking factors. The financial history and con- operating in Mecklenburg County and is 10 miles dition of Farmers Bank, its management, future from its nearest competitor. Since these county earnings prospects, and capital structure are satis- banks have as a matter of practice confined their factory. The financial history and condition of operations to their immediate vicinities, making no Virginia Bank, its management, future earnings active effort to penetrate other sections of the prospects, and capital structure (considering the county, little competition has developed among proposed addition to capital funds) are generally them. The substitution of a branch of the more satisfactory, as would be true of the resulting aggressive Virginia Bank for the present Farmers bank. Bank would provide a basis for stimulating bank- Neither the corporate powers of the two existing competition within the county. ing banks nor those of the resulting bank, are, or Should the proposed merger be consummated, would be, inconsistent with the purposes of 12 Virginia Bank would continue as the fifth largest U.S.C, Ch. 16. bank in the State and its holding company affiliate, Convenience and needs of the communities. Virginia Commonwealth Corporation, would con- Consummation of the proposed merger would not tinue to be the fourth largest banking organizaaffect significantly the convenience and needs of tion in the State. Virginia Bank's share of total the communities now served by the 27 offices of deposits in the State would be increased by only Virginia Bank. Its principal effect would be felt in about .1 per cent, an amount too small to alter 1 Deposit figures are as of December 31, 1964. significantly its competitive position in the State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1099 as a whole or in the local areas that it now serves. shall not be consummated (a) within seven calen- Summary and conclusion. Virtually no competi- dar days after the date of this Order or (b) later tion would be eliminated by consummation of the than three months after said date. proposed merger while competition within Meck- Dated at Washington, D.C. this 10th day of lenburg County should be stimulated. At the same August, 1965. time, the banking convenience and needs of the By order of the Board of Governors. county, particularly in the Boydton area, should Voting for this action: Chairman Martin, and Govbe better served by the substitution of the full-scale ernors Balderston, Shepardson, Mitchell, Daane, and banking services of Virginia Bank for the limited Maisel. services now provided by Farmers Bank. Voting against this action: Governor Robertson. Accordingly, the Board finds that the proposed (Signed) MERRITT SHERMAN, merger would be in the public interest. Secretary. [SEAL] THE MARINE MIDLAND TRUST COMPANY STATEMENT OF NEW YORK, NEW YORK, NEW YORK The Marine Midland Trust Company of New In the matter of the application of the Marine York, New York, New York ("Marine"), with Midland Trust Company of New York for ap- total deposits of $951 million, has applied, pursuproval of acquisition of assets of Grace National ant to the Bank Merger Act of 1960 (12 U.S.C. Bank of New York. § 1828(c)), for the Board's prior approval of its acquisition of assets and assumption of liabilities ORDER APPROVING ACQUISTTION OF BANK'S ASSETS of Grace National Bank of New York, New York, New York ("Grace"), which has total deposits of There has come before the Board of Governors $292 million.1 As an incident to the transaction, pursuant to the Bank Merger Act of 1960 (12 the name of the acquiring bank would be changed U.S.C. 1828(c)), an application by The Marine to "Marine Midland Grace Trust Company of Midland Trust Company of New York, New York, New York," and the sole office of Grace would New York, a State member bank of the Federal become a branch of Marine, increasing its number Reserve System, for the Board's prior approval of of offices to 14. its acquisition of assets and assumption of deposit liabilities of Grace National Bank of New York, Under the law, the Board is required to consider, New York, New York, and, as an incident thereto, as to each of the banks involved, (1) its financial The Marine Midland Trust Company of New history and condition, (2) the adequacy of its York has applied, under section 9 of the Federal capital structure, (3) its future earnings prospects, Reserve Act, for the Board's prior approval of the (4) the general character of its management, (5) establishment by that bank of a branch at the lo- whether its corporate powers are consistent with cation of the sole office of Grace National Bank the purposes of 12 U.S.C, Chapter 16 (the Federal of New York. Notice of the proposed acquisition Deposit Insurance Act), (6) the convenience and of assets and assumption of deposit liabilities, in needs of the community to be served, and (7) the form approved by the Board, has been published effect of the transaction on competition (including pursuant to said Act. any tendency toward monopoly). The Board may not approve the transaction unles, after considering Upon consideration of all relevant material in all of these factors, it finds the transaction to be in the light of the factors set forth in said Act, includthe public interest. ing reports furnished by the Comptroller of the Shortly before the issuance of its Order in this Currency, the Federal Deposit Insurance Corporacase, the Board received letters from a law firm tion, and the Attorney General on the competitive representing a stockholder of Grace, requesting factors involved in the proposed transaction, that the Board's decision be deferred until con- IT IS HEREBY ORDERED, for the reasons set forth sideration was given by the Board to alleged inin the Board's Statement of this date, that said equities and violations of the rights of minority applications be and hereby are approved, provided stockholders and creditors of Grace. The letters that said acquisition of assets and assumption of deposit liabilities and establishment of the branch 1 Deposit figures are as of December 31, 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1100 FEDERAL RESERVE BULLETIN • AUGUST 1965 alleged (1) that the proposed transaction was ary and March 1965. The substance of the various "structured" as an acquisition of assets in order to points in the letters is easily identifiable from avoid requirements of provisions of the national documents supplied by Grace with the notice, banking laws with respect to appraisal of the in- dated April 20, 1965, of the special meeting of terests of minority stockholders in the case of a that bank's stockholders on May 13, 1965, at merger or consolidation—requirements that do not which the proposal was approved. Nevertheless, expressly apply to an acquisition of assets; and (2) no reason has been advanced on behalf of the prothat the transaction involves an absence of arm's- testing shareholder for his failure to present his length dealing, in violation of the fiduciary obliga- objections at an earlier time, during the months tion owed by majority stockholders to minority that the pending proposal has been before the stockholders. Board. The allegation that the proposed transaction is a In view of the circumstances stated above, the de facto merger and therefore is, or should be, Board has concluded, after consideration of the subject to the "appraisal" provisions of Federal arguments advanced in the letters previously menlaw (12 U.S.C. 214-214c) designed to protect the tioned, that deferment of the Board's action in this rights of minority stockholders of national banks, case, for the reasons advanced in those arguments, ignores the fact that Congress clearly has drawn a would not be in the public interest. The Board's distinction in this respect between mergers and ac- action does not, of course, preclude determination quisitions of assets. It ignores also the fact that the of the rights of minority stockholders of Grace Bank Merger Act of 1960 recognizes the existence in an appropriate forum, and legal proceedings to of that distinction by specifically providing for ap- determine such rights actually have been instituted. proval of "acquisitions of assets" as well as Banking factors. Marine is an affiliate of Marine "mergers". Midland Corporation, Buffalo, New York, a bank The Comptroller of the Currency is principally holding company registered under the Bank Holdresponsible for administration of the national ing Company Act of 1956, and Grace is the sole banking laws, including those relating to mergers banking sudsidiary of W. R. Grace & Co., New and voluntary liquidations of national banks. He York, New York, the owner of over 80 per cent was acquainted with the terms of the proposed of the stock of the bank. W. R. Grace & Co. is transaction, and has presented no objections of the engaged chiefly in the chemical and food processkind now raised by counsel for a stockholder of ing industries. The financial histories of Marine Grace. Midland and Grace are satisfactory, and each bank In these circumstances, the Board concludes that has a sound asset condition and an adequate it would not be warranted in deciding that the pro- capital structure. Each bank has a good earnings posed transaction would involve a violation of sec- record and satisfactory future earnings prospects, tions 214-214c of Title 12 of the United States and the management of each is experienced and Code. competent. The acquiring bank would have capa- The allegation that the transaction violates a ble management, a sound asset condition, an adegeneral fiduciary obligation owing by majority quate capital structure, and good future earnings stockholders to minority stockholders is not based prospects. upon specific provisions of any Federal statute; There is no indication that the corporate powers and the Board does not interpret Federal statutes of the banks are, or would be, inconsistent with and judicial decisions as requiring the Board to the purposes of 12 U.S.C, Chapter 16. adjudicate nonstatutory rights of minority stock- Convenience and needs of the communities. holders. Marine and Grace are headquartered in the Information regarding the matters that were the borough of Manhattan, New York City. Of subject of the aforementioned letters was contained Marine's 13 domestic offices, 5 are located in the in the record before the Board prior to receipt of financial district of lower Manhattan, 5 in the such letters and, in essential respects, in the ap- midtown area, and 3 in the central portion of the plication in this case received by the Board Jan- borough of Queens. The sole office of Grace is uary 15, 1965. Notice of the proposal was pub- located at the outer fringe of Manhattan's financial lished pursuant to the Bank Merger Act in Febru- district, about 6 blocks from the main office of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1101 Marine and several blocks further from the latter's terms of IPC deposits, but would be less than onenearest branch. In the 6 blocks separating the half the size of the seventh largest bank and proponent banks, there are 11 offices of other com- slightly more than one-fourth larger than the ninth mercial banks. ranking bank. Marine obtains 79 per cent of its Marine offers complete "retail" banking services IPC deposits from the New York City metropoliat all its offices and, although the principal local tan area and 63 per cent of such deposits from area served is Manhattan, the bank is closely Manhattan. Although Grace derives about 50 per linked through the holding company with other cent of its IPC deposits from customers located in subsidiary banks elsewhere in New York State. Manhattan, many of these use Grace only because Marine is also active in the national and interna- of its well known connections and expertise in intional markets. The bank recently established an ternational banking. They emphasize different office in London and a foreign banking subsidiary, types of banking services and such competition as Marine Midland International Corporation. The exists between the two banks is quite limited. international transactions of Marine center around As was pointed out in the discussion of the conparts of Europe, the Middle East, and, to a lesser venience and needs factor, Marine offers a full extent, the Far East. range of retail services, whereas Grace does not Grace, under the ownership of W. R. Grace & compete for such business. Indeed, it appears that Co., has become a specialist in international bank- the bulk of such "retail" services as are provided ing, concentrating, in this respect, in Latin Ameri- by Grace are for accommodation purposes, either can transactions. The bank does not solicit "retail" for personnel of its own corporate family or for trade; it discourages small checking and savings those of its corporate customers. In this connecaccounts, offers no consumer loans, has no real tion, it is pertinent to note that the average IPC estate mortgage department, and normally utilizes deposit of Grace is more than twice the size of that the services of only a few tellers. of Marine. Further, a substantial number of the With the abundant number of commercial bank- proponent banks' deposit and loan accounts origiing offices in Manhattan and the New York City nating in Manhattan are attributable to large commetropolitan area providing a multitude of serv- mercial and industrial enterprises for whose bankices, the banking needs and convenience of the ing business there is a national market. local community are being adequately satisfied. While both banks are active in international The proposed transaction, however, would banking, the dependence of Grace on business result in a higher lending limit for Marine (but from this market is substantially greater than that one still markedly lower than that of its next larger of Marine, a relative newcomer in the field. rival), and make possible certain economies in its Marine attributes about 5 per cent of its IPC deoperations. Of particular significance would be the posits and 9 per cent of its loans to the internaability of Marine to offer a broader range of in- tional market; comparable figures for Grace are ternational banking services and to do so through- 36 per cent and 30 per cent, respectively. This alout a broader geographical area. Thus, the cus- location was made on the basis of accounts with tomers of the proponent banks would have avail- addresses outside the United States and accounts able a somewhat wider variety of banking services maintained primarily for business outside the than is presently provided by either bank. This United States. In addition, some companies have would be especially beneficial to the convenience been attracted to these banks—particularly so in of those customers engaged in international op- the case of Grace with its high degree of specialierations. zation—because they wish to have expertise in in- Competition. Marine, with 1.8 per cent of the ternational financial transaction available even IPC deposits,2 is the ninth largest of 44 commercial though this service is used infrequently or for only banks located in New York City and Grace, with a small part of their business. If these accounts .6 per cent of such deposits, ranks fourteenth in were included, over one-half of Grace's IPC dethis respect. With the acquisition of Grace, Marine posits and almost one-half of its loans outstanding would rank eighth among New York City banks in would be attributable to the international market. 2 Deposits of individuals, partnerships, and corpora- As indicated earlier, the international transactions. The figures are as of June 30, 1964. tions of the two banks center around different Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1102 FEDERAL RESERVE BULLETIN • AUGUST 1965 areas. Neither bank offers international banking tion be given to the possibility that the absorption services comparable to those offered by the major may have adverse effects on banks that compete international banks of New York City. However, with subsidiaries of the holding company. On this as a result of combining the international banking point it is relevant that Grace's correspondent acskills and resources of the two institutions as is tivity is, and gives every prospect of being no more proposed, Marine could readily develop an inter- than, extremely limited both as to the kind of national banking department capable of increasing services offered and the extent to which it is the vigor of competition in the international availed of by banks in the areas served by the market. holding company's subsidiaries. Grace has 10 cor- It seems quite unlikely that the acquisition of respondent banks located in areas served by banks Grace by Marine would thwart significant poten- of the Marine Midland group; all 10 have other tial competition in any market. Grace is a part of New York City bank correspondents, with numera corporate structure in which the banking busi- ous other alternatives also available to them. While ness was generated as a by-product of other cor- the size of Marine Midland Corporation is impresporate operations. The fundamental purpose of sive, it does not appear that the addition of Grace Grace has been to deal with international banking would lead to any significant adverse effects upon transactions for its parent. The parent corporation banking competition. now had shifted the emphasis of its operations Summary and conclusion. The proposed acquisifrom transportation and trading to other fields and tion of Grace by Marine, if consummated, would no longer regards a banking affiliate as of special result in a slight increase in concentration of bankusefulness. In these circumstances, the parent ing resources. However, competition (existing and merely wants to get out of the banking field and is potential) between the two banks is quite limited, not interested in having Grace expand its rather and such acquisition would not result in any siglimited range of banking services. nificant adverse competitive effect. It is to be ex- Marine, as previously noted, is a subsidiary of pected that the transfer of Grace to Marine would Marine Midland Corporation, a registered bank provide for the continuation and improvement of holding company with a total of 11 commercial a banking office which seems almost certainly desbanks that operate 201 offices in 119 communities tined for liquidation or other disposition by its in New York State. The $3.1 billion aggregate de- parent; and it would seem likely that the absorpposits held by Marine Midland Corporation's tion of Grace—if this proposal were to be rejected banking affiliates represent 5.4 per cent of the total —would be more attractive to a bank larger, indeposits of all commercial banks in New York stead of a bank smaller, than Marine. The bank- State; with the acquisition of Grace the portion of ing public, and especially the convenience for such deposits held would increase to 5.9 per cent. banking customers in the international market, The nearest affiliate of Marine Midland Corpora- would be benefited as a result of combining the tion to Marine is in Nyack, some 40 miles north resources and complementary skills of the propoof downtown Manhattan. Although the 10 subsidi- nent banks, and this would also enhance competiaries of Marine Midland Corporation located out- tion, most significantly in the market for internaside New York City derive about 3.7 per cent of tional banking services. their deposits from accounts with metropolitan Accordingly, the Board finds that the proposed area addresses, and 3.1 per cent of their loans are transaction would be in the public interest. to borrowers with such addresses, these deposits and loans are less than .2 per cent of the deposits DISSENTING STATEMENT OF GOVERNOR and loans held by New York City headquartered ROBERTSON banks. Grace obtains about 2 per cent of its de- I am unable to find evidence in the record of posits and 5 per cent of its loans from portions of this case to support the view of the majority that New York State outside the metropolitan area. the proposed transaction would be in the public Because of Marine Midland Corporation's bank- interest within the meaning of the Bank Merger ing subsidiaries located in various parts of the Act of 1960. State, an application to absorb a banking unit into The majority concludes that there is little sigthe Marine Midland group requires that considera- nificance in the fact that Marine and Grace obtain, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1103 respectively, about 63 per cent and 50 per cent of banking correspondent relationships in 55 countheir IPC deposits from Manhattan (and neglects tries. These circumstances do not support the conto mention that each also obtains about 50 per clusion that there is no significant competition cent of its loan accounts from the same area). between the proponent banks in the international Essentially, two reasons are given for this conclu- market. sion: first, it is said that "Marine offers a full range Further, I do not think it is particularly meanof retail services, whereas Grace doe not compete ingful that Marine attributes only 5 per cent of its for such business"; and, secondly, it is said that "a IPC deposits to the international market as comsubstantial number of the proponent banks' de- pared to 36 per cent for Grace. In absolute figures, posit and loan accounts originating in Manhattan the IPC deposits of Grace attributed to the interare attributable to large commercial and industrial national market total over $62 million and those enterprises for whose banking business there is a of Marine total over $29 million. Marine, a memnational market". Taken at face value, these two ber of a gigantic bank holding company group reasons together lead to the conclusion that the with resources about eighteen times as great banks are substantial competitors in offering as those of Grace and with considerable wholesale banking services for those businesses personnel and skills in the international field, that, despite access to a national market, find it hardly needs to acquire Grace to develop its indesirable to have alternative sources of such serv- national—or any other—banking business. In this ices in New York City. The fact that there may connection, if the international transactions of the be a national market for a product or service does proponent banks do in fact center around different not preclude the existence also of a meaningful geographical areas, Marine's wish to acquire Grace local market for the same product or service. See, suggests that it is a potential competitor in any e.g., Brown Shoe Co. v. United States, 370 U.S. event—i.e., desirous of entry through internal ex- 294, 336-37 (1962). This possibility, unfortu- pansion into the areas now served by Grace. Innately, is given short shrift by the majority. stead of increasing the vigor of competition in the Further—although the majority is so unim- international banking market, the acquisition of pressed as to omit the fact—it is not without sig- Grace will enable Marine to augment its position nificance, I think, that the acquisition of Grace in international banking by eliminating a substanwill boost Marine fourteen places in rank among tial competitive force. the nation's largest banks, from thirty-sixth to A most disturbing finding by the majority is twenty-second in terms of total deposits. In addi- that the acquisition of Grace by Marine would not tion, I cannot accept the view that, simply because foreclose significant potential competition in any Grace has, in effect, been labeled a limited service market since Grace's parent corporation no longer bank and Marine a full service bank, there is no finds a banking affiliate of special usefulness, significant competition existing between them. merely wants to withdraw from the banking field The record shows that of the twenty-one principal and is not interested in having Grace expand its banking services provided by Marine, Grace pro- range of banking services. Of course, if the transvides twenty—every one except consumer instal- action were not approved and Grace failed to ment loans. offer new services, it would not mean that Marine In considering the market for international —or other commercial banks—could not, or banking services, the majority stresses that the in- would not, offer banking services in direct comternational transactions of the two banks center petition with those presently offered by Grace. around different areas: Latin American in the case More fundamentally, by its willingness to approve of Grace; Europe, the Middle East and, to a lesser asset acquisitions under the circumstances of this extent, the Far East in the case of Marine. Ap- case, the majority effectively removes the need parently, the intended implication is that Grace for banks such as Grace to offer additional servand Marine do not compete for the same kind of ices. international banking business and the proposed The denial of the application would, no doubt, acquisition can, therefore, have no adverse com- entail some inconvenience for the owners of Grace. petitive effects in this market. The fact is, however, Under the Bank Merger Act, however, the parathat Grace maintains more than 500 international mount consideration is the general public interest, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1104 FEDERAL RESERVE BULLETIN • AUGUST 1965 not the convenience of stockholders. More par- National Bank of Long Island. 48 Federal Reserve ticularly, it is incredible that the majority is ca- BULLETIN 1597 (1962). pable of giving as a reason for approving the pro- In that case, now inexplicably ignored by the posal that Grace "seems almost certainly destined majority, the Board, in discussing the "convenience for liquidation or other disposition by its parent; and needs" factor, stated: and it would seem more likely that the absorption of Grace—if this proposal were to be rejected— ". . . Applicant [Marine Midland Corporation] goes to great length in describing the improved and addiwould be more attractive to a bank larger, instead tional services Security would be able to offer as a of a bank smaller, than Marine." Does the major- subsidiary, but gives very little specific information on the area's need for such services. . . . [T]here is ity actually fear that, if it rejects this proposal, it little in the application to indicate that banking serv- (or another banking agency, depending on the ices of the types listed are inadequate or unsatisfac- Federal affiliation of the applicant) will, or must, tory in Security's service areas. . . . [Tjhere is little, if any, real evidence that the public is inconvenienced approve the absorption of Grace by a bank larger because Security does not now do what it might as a than Marine? The very purpose of the Bank subsidiary of Applicant. . . . [and] the Board cannot Merger Act, although not to prevent the owners assume that what is not being done needs to be done or is material to the public's convenience." Id. at 1602. of banks from disposing of their holdings, is to assure that such dispositions are in the public in- Similarly, if there is a scintilla of evidence in the terest and, in this connection, the banking agen- record of this case that the public served by the cies, including this Board, are charged with the proponent banks is inconvenienced by lack of responsibility of assessing, and giving weight to, banking services, the majority fails to point it out; the consequences for banking competition. actually, there is none. Yet, the majority is now The acquisition of Grace will increase Marine's unaccountably willing to "assume that what is not IPC deposits by more than 30 per cent; in terms being done needs to be done . . . [and] is material of total deposits, Marine will move well into the to the public's convenience." billion dollar category. The 14 largest commercial In considering the effect on competition of the banks headquartered in New York City, which proposed acquisition of Security National Bank include the proponent banks, account for nearly by Marine Midland Corporation, the Board stated: 97 per cent of the IPC deposits held by all such ". . . Applicant [Marine Midland Corporation] presbanks. After the proposed acquisition, the city's ently controls 11 banks in New York State which opeight largest commercial banks, which include erate 181 banking offices located in each of the State's nine banking districts and had, at the end of 1961, Marine, will hold more than 89 per cent of the aggregate deposits of $2.54 billion. Applicant adver- IPC deposits of the city's commercial banks—and tises its size and State-wide coverage and places much it is no answer that Grace presently holds only weight on this unique feature of its operations. According to Applicant, it can provide better services for .6 per cent of such deposits. "On the contrary, its customers throughout the State of New York than if concentration is already great, the importance can its competitors through regular correspondent relationships. Acquisition of Security would further of preventing even slight increases in concentraenhance Applicant's position in the New York State tion and so preserving the possibility of eventual banking structure. . . . The proposed acquisition would deconcentration is correspondingly great." United also result in a substantial addition to Applicant's overall size; it would acquire 33 banking offices (an in- States v. Philadelphia National Bank, 374 U.S. crease of 18.2 per cent in its banking offices) ana 321, 365 n. 42 (1963). $221.5 million deposits (an increase of 8.7 per cent). The result of this acquisition, which in and of itself Finally, the finding of the majority that the addi- is not insignificant, would give Applicant more comtion of Grace's resources to Marine Midland plete State-wide coverage and banks headquartered in all nine of the State's banking districts. ..." Corporation's bank holding company system ". . . As to the effect of the proposed transaction would lead to no significant adverse effects for upon the size and extent of Applicant's holding company system as it relates to adequate and sound bankbanking competition, as well as the finding that ing, the public interest, and preservation of competithe transaction would benefit the convenience of tion in the field of banking, the concentration of banking resources and activities which would result from banking customers, cannot be reconciled, in my the proposed acquisition would be inimical to the judgment, with the Board's denial of an earlier preservation of banking competition and inconsistent with the public interest. This being the case, it is the application by Marine Midland Corporation to view of the Board that the application should be deacquire all of the voting shares of the Security nied." Id. at 1606-07. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1105 Marine Midland Corporation has the most geo- case; and, consummation of the present transgraphically extensive banking system in New York action will add $292 million to the total deposits State and ranks seventh, behind six New York of the holding company group, not $222 million City headquartered banks, in total banking re- as was then the case. sources. Presently, as was true at the time of its If the Board was on sound ground in refusing application to acquire Security National Bank, to permit the addition of Security National Bank Marine Midland Corporation has 11 banking sub- to the Marine Midland Corporation group—I sidiaries, but these subsidiaries now operate 201 think it was, and the majority offers no reason as banking offices, not 181 as was then the case; the to why it was not—then, a fortiori, the addition of aggregate deposits of these subsidiaries is now Grace to that group should be prohibited. $3.1 billion, not $2.54 billion as was then the I would deny the application. Announcements ELECTION OF DIRECTOR ident's program to improve the nation's balance of The Federal Reserve Bank of Minneapolis on payments. August 4 announced the election of John H. The text of the revised guideline follows: Toole as a Class B director of the Bank to serve for the remainder of a term expiring December (5) BANK SALES OF FOREIGN ASSETS TO U.S. RESIDENTS 31, 1965. Mr. Toole is President, Toole and In general, banks should not expand their lending Easter, Missoula, Montana. As a director of the abroad by selling to U.S. residents (including Minneapolis Bank he succeeds Mr. Hugh D. U.S. banks) claims on foreigners (except foreign Galusha, Jr., who became President of the Federal securities) existing on the base date and replacing Reserve Bank of Minneapolis on May 1, 1965. such assets with other loans to foreigners. Sales to U.S. residents of foreign loans or loan partic- REVISED GUIDELINE FOR COMMERCIAL BANKS ipations could assist a bank to stay within the 5 The Board of Governors of the Federal Re- per cent target, but clearly would not benefit the serve System has issued to the commercial banks U.S. payments position. Therefore, in the event a revision of Guideline No. 5, originally issued of any such sales the bank's base should be reon March 5, 1965, in connection with the Pres- duced by an amount equivalent thereto. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication August 16 Industrial production and total employment ex- in July and was 4 per cent above the March-April panded further in July. The unemployment rate average. declined to the lowest level since October 1957. Production of industrial materials generally con- Retail sales generally increased and construction tinued to show larger increases than most final activity remained at an advanced level. Bank products. In the case of iron and steel, output and credit declined, following a sharp rise in June, shipments would be reduced sharply in the event but the money supply continued to increase. Se- of a work stoppage beginning September 1, while curity markets were generally stable. a settlement would be followed by a less rapid decline in activity and also in steel inventories. INDUSTRIAL PRODUCTION CONSTRUCTION Industrial production rose .8 of one per cent in Expenditures for new construction, which on July to 143.6 per cent of the 1957-59 average the basis of revised figures had increased 2 per from an upward revised level of 142.4 in June, cent in June, changed little in July at a record as seasonal curtailments in July were less marked annual rate of $69 billion. Both private residential than usual. Most of the further expansion in and public construction outlays held at their imoutput since early spring has reflected increases proved June rate, while business construction exin the metal producing and fabricating industries penditures moved higher and continued substaninfluenced partly by possibilities of a steel work tially above a year earlier. stoppage. Output of consumer goods in July continued at EMPLOYMENT the average levels prevailing so far this year. Auto assemblies remained at an annual rate of around Employment in nonfarm establishments ex- 9Vi million units and production of home goods, panded somewhat further in July. Gains were apparel, and staples continued at or below their concentrated in durable goods manufacturing, but early spring levels. Business equipment rose further the trade and service industries also increased further, while a decline was reported in the con- INDUSTRIAL PRODUCTION struction field. The average workweek in manu- 1957-59=100 facturing remained at 41.0 hours. This was 0.4 hours longer than a year earlier, although 0.4 - TOTAL/"'^ - below the first-quarter advanced levels. The un- FINAL PRODUCTS^/*^ employment rate declined to 4.5 per cent from 4.7 ./^MATERIALS per cent in June to continue the downtrend of the past two years. r i i i i 1 ! I ! ! / / 1 AGRICULTURE ~ EQUIPMENT /' r^~- ~~ - NONDURABLE ^sf^^ ~~ Crop prospects generally improved in July and MANUFACTURES/*^ a substantial increase in output is indicated from /^CONSUMER ^^yVV DURABLE 5^P^. /^/ GOODS __ last year with little change in total acreage. Pro- \ / MANUFACTURES - \J jected yields per acre average 7 per cent above 1 ! 1 1 ! 111!! 1964 and 5 per cent above the previous high of 1963 1965 1961 1963 1963. Major increases in output are indicated for F.R. indexes, seasonally adjusted. Latest figures shown are feed and food grains and oilseeds. Declines in for July. 1106 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 1107 tobacco, sugar, and cotton crops reflect acreage billion rise in June. Reductions in holdings of reductions. U.S. Government securities and in security loans Meat production increased in July from the were offset only in part by continued substantial reduced second-quarter level but it was still some- expansion in other loans and investments. The what below a year earlier. money supply increased $700 million, much less than in June, but above the average monthly COMMODITY PRICES expansion so far this year. Growth in time and savings deposits in July, $1.7 billion, was larger The BLS wholesale commodity price index than in any month since February. changed little from mid-July to mid-August. Prices Seasonally adjusted total and required reserves of foodstuffs, responsible for much of the rise in increased further in July. Member bank borrowthe total index earlier this year, declined somewhat. ings and excess reserves were little changed and net The industrial commodity component edged up borrowed reserves averaged $175 million, close to slightly further as prices of hides, wool, and copper the June level. Reserves were absorbed through products increased. Divergent changes were recurrency outflows and reductions in gold stock and ported for some steel mill products. were supplied through System purchases of U.S. Government securities and other factors. DISTRIBUTION The value of retail sales at both durable and SECURITY MARKETS nondurable goods stores increased about 2 per cent in July, according to advance reports. Dealer Yields on longer-term Treasury securities rose deliveries of new autos remained at a high level, between mid-July and mid-August to their highest above the April-May volume but below the first- levels of the year. Treasury bill yields declined quarter peak. slightly over this period, with the 3-month bill currently quoted at about 3.80 per cent. Yields on corporate and municipal bonds were generally BANK CREDIT, MONEY SUPPLY, AND RESERVES stable. Common stock prices fluctuated within a Seasonally adjusted commercial bank credit narrow range around a level roughly 5 per cent declined somewhat in July following a sharp $3 below their record high of mid-May. INTEREST RATES PRICES WHOLESALE CONSUMER 1957-5 - ALL ITEMS _^^_^, - LONG-TERM GOVERNMENT SECURITIES ALL COMMODITIES - 1 ! 1 I ! 1 1 1 1 COMMODITIES NONFOOD COMMODITIES ^ OTHER THAN FARM AND FOOD TREASURY BILLS ! ! 1 I i i 1 1 '' •• •' ".'V ' '•' ''"' * * SERVICES .-•••'' PROCESSED FOODS j j^ ^^~^OODS | V FARM PRODUCTS ^ ^ 1 1 1 1 1961 1963 1965 1961 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, June; for wholesale prices, July. shown, week ending Aug. 13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Endividuals, 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. Monthly (or quarterly) figures adjusted for 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. Apr. 1965 604-13 Banking and monetary statistics, 1964. Feb. 1965 326-33 Mar. 1965 490-91 June 1965 888-91 Semiannually Banks and branches, number of, by class and Banking offices: State Apr. 1965 615-16 Analysis of changes in number of Aug. 1965 1170 On, and not on, Federal Reserve Par List Flow of funds (assets and liabilities) Apr. 1965 614 number of Aug. 1965 1171 Income and expenses: Federal Reserve Banks Feb. 1965 322-23 Member banks: Annually Calendar year May 1965 750-58 Operating ratios Apr. 1965 617-19 Bank holding companies: Insured commercial banks May 1965 759 List of, Dec. 31,1964 June 1965 892 Banking offices and deposits of group banks, Stock exchange firms, detailed debit and credit Dec. 31, 1964 July 1965 1026 balances Sept. 1964 1206 1108 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 1110 Reserve Bank discount rates; margin requirements; reserve requirements 1115 Open market transactions; Federal Reserve Banks. 1117 Bank debits; currency in circulation 1120 Money supply; banks and the monetary system. . 1122 Commercial and mutual savings banks, by classes. 1124 Commercial banks, by classes 1128 Weekly reporting member banks. 1130 Business loans 1133 Interest rates 1134 Security prices; stock market credit; open market paper. 1135 Savings institutions 1136 Federal finance. . .. 1138 Federally sponsored agencies 1143 Security issues. . . 1144 Business finance. . 1147 Real estate credit. 1149 Consumer credit 1152 Industrial production .. 1156 Business activity; construction 1160 Employment and earnings 1162 Wholesale and consumer prices... 1164 National product and income series 1166 Flow of funds. 1168 Number of banking offices in the United States 1170 Number of par and nonpar banking offices 1171 Guide to tabular presentation 1108 Index to statistical tables 1197 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). 1109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1110 BANK RESERVES AND RELATED ITEMS AUGUST 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 r a i r t o e d T U o .S ta . l G B o r v o o i t g u u . h g t- 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 n d - - e ts s Float t T a o l - 2 s G to o c ld k T r s o c r e t u i e a n u n u r n a g y r 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 a s y d h s s - - T t r u h e w r a a y i s n t - h m r e F e s F e . m e R i o r g b v r . n - e e B r s , a O b n a t k h n s e k r O F t . h R e . r B W F a i . n R t k M . h s e r m e c r C s b o a e e u i e n n r r r n c d v - 3 y e b s an T k otal Averages of daily figures 1929—June.... 179 179 978 61 1,317 4,024 2,018 4,400 210 30 30 376 2,314 2,314 1933—June.... 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2,211 1939—Dec 2,510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11473 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 :3,708 23,708 381 65224,744 20,047 4,322 28,452 2,269 625 1,247 493 16027 16,027 1950—Dec •0,345 20,336 142 1,11721,606 22,879 4,629 27,806 1,290 615 920 353 739 17,391 17,391 1955—Dec 24,602 24,318 284 840 1,389 26,853 21,689 5,008 31,265 777 434 459 394 983 19,240 19,240 1956—Dec 24,765 24,498 267 706 ' 633 27,15621,942 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 1,063 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 1,174 18899 18,899 1959—Dec 27,036 26,993 43 911 1,426 29.435 19,482 5,311 32,775 396 524 361 348 1,195 18,628 304 18,932 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 33,019 408 522 250 495 ,029 16688 2,595 19,283 1961—Dec 29,098 29,061 37 152 1,921 31,217 16,929 5,587 33,954 422 514 229 244 ,112 17259 2,859 20,118 1962—Dec ~iO,546 30,474 72 305 2,29833,218 15,978 5,561 35,281 398 587 222 290 ,048 16932 3,108 20,040 1963—Dec 33,729 33,626 103 360 2,43436,610 15,562 5,583 37,603 389 879 160 206 ,215 17303 3,443 20,746 1964—June.... 14,631 34,530 101 271 1,784 3"6,760 15,462 5,584 37,541 414 886 135 200 ,273 17356 3,202 20,558 1964—July 34,898 34,765 133 265 1,84137,077 15,463 5,568 37,938 431 804 131 201 ,194 17408 3,257 20,665 Aug 35,118 34,996 122 334 1,6—70 37,170 15,462 5,562 38,033 421 909 145 194 ,151 17340 3,226 20,566 Sept 35,273 35,143 130 332 1,914 37,578 15,462 5,564 38,224 437 893 143 189 ,129 17589 3,339 20,928 Oct 35,334 35.257 77 311 2,02737,747 15,462 5,533 38,362 471 863 133 189 ,009 17.716 3,317 21,033 Nov 36,036 35,867 169 433 1,87438,421 15,442 5,494 38,937 529 613 148 200 ,119 17812 3,347 21,159 Dec 37,126 36,895 231 266 2,42339,873 15,388 5,401 39,698 595 944 181 186 ,093 17964 3,645 21,609 1965—Jan 36,684 36,457 227 340 2,12639,245 15,258 5,395 39,013 652 875 180 223 949 18006 3613 21,619 Feb 37,052 36,957 95 450 1,650 39,244 14,984 5,394 38,641 696 943 145 211 1,166 17820 3407 21,227 Mar 37,315 37,267 48 441 1 6"5"9' 3399,535 14,687 5,396 38,777 727 890 144 194 1,049 17836 3412 21,248 Apr 37,637 37,482 155 487 ; 39,88: 14,472 5,405 38,942 744 865 170 207 783 18047 3458 21,505 May 38,111 37,749 362 520 1,633 40,340 14,358 5,402 39,052 755 908 142 187 985 18070 3406 21,476 June 38,840 38,610 230 543 1,77114441,153 14,277 5,402 r39,508 '772 844 142 182 1,196 18187 3522 21,709 July 39,249 38,891 358 527 1,831 41,651 13,924 5,412 40,005 781 805 160 196 740 18301P3 562>21,863 Week ending— 1964 June 3 34,381 34,327 54 265 1,521 36,222 15,463 5,584 37,263 425 914 145 197 1,257 17066 3128 20,194 10. 34,757 34,530 227 289 1,471 36.597 15,46: 5,590 37,48"" 436 905 135 199 1,308 17179 3007 20,186 17. 34,591 34,438 153 328 1,823 36,811 15,461 5,58: 37,614 415 880 131 196 1,240 17378 3238 20,616 24. 34,427 34,427 232 2,136 36,875 15,461 5,58: 37,574 395 905 138 203 1,273 17430 3297 20,727 July 34,841 34,823 18 221 1,818 36,960 15,46: 5,58: 37,618 404 873 140 195 1,276 17498 3347 20,845 35,335 35,215 120 263 1,882 37,588 15,463 5,574 37,916 416 84: 134 222 1,256 17840 2965 20,805 35,304 35,030 274 460 1,787 37,636 15,463 38,099 425 881 123 204 1,223 17703 3291 20,994 34,392 34,392 15( 2,195 36,789 15,46: 37,96r 444 770 131 191 1,158 17154 3275 20,429 34,518 34,357 17! 1,626 36,381 15,463 37,814 440 711 133 190 1,148 16975 3350 20,325 Aug. 5 . 35, li: 34,980 13: 262 1,460 36,89: 15,462 5,570 37,893 433 769 137 199 1,13 17,363 3197 20,560 12. 35,39' 35,097 300 376 1,554 37,39: 15,46: 5,554 38,114 41 964 141 193 1,113 17,467 3 130 20,597 19. 34,855 34,855 279 2,024 37,19' 15,461 5,558 38,113 412 932 144 199 17,314 3269 20,583 26. 35,051 34,929 ii 329 1,719 37,13' 15,46: 5,563 37 ,998 429 918 145 188 1^214 17,270 3341 20,611 Sept. 2 35,16: 35,144 18 315 1,451 36,968 15,462 5,572 38,007 423 858 164 191 1,199 17,159 3372 20,531 9 35,611 35,234 377 478 1,563 37,716 15,462 5,566 38,243 426 857 131 188 1,220 17,679 3000 20,679 16 35,397 35,262 135 225 1,846 37,52' 15,462 5,564 38,425 435 906 14: 194 1,163 17,285 3454 20,739 23 34,904 34,904 410 2,465 37,820 15,462 5,569 38,192 448 962 131 193 1,054 17,870 3,386 21,256 30 35,186 35,157 280 1,943 37,48' 15,461 5,556 38,075 440 91 161 186 1,066 17,662 3,478 21,140 Oct. 7. 35,759 35,549 210 372 1,820 38,05 15,463 5,55^ 38,209 457 838 131 204 1,103 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 1,028 17,739 3,246 20,985 21. 34,909 34,909 382 2,548 37,878 15,463 5,538 38,432 489 [,012 130 189 966 17,660 3,341 21.001 28. 34,911 34,91 233 1,995 37,203 15,462 5,513 38,333 467 810 13' 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 38,20 15,463 5,49^ 38,793 503 546 139 205 1,15 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 35,86' 125 162 2,136 38,388 15,430 5,494 39,071 552 521 148 183 1,245 17,592 3,467 21,059 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 BANK RESERVES AND RELATED ITEMS 1111 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 .S ta . 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 e i h g t e p i a r n e u e s t s e e r s - - c v D o a a a n u n i d s c d n - - e ts s Float i 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 n a r y c g t - s - d y - - r c C t e c u i i n u i o n l r c r a n - - y - T h c i r u o n e a r l g a s y d h s s - - Tr th e w a a i s n th - m r F e e s . F m e o R r r b v . - e e B r s , a O b n t a k h n s e k ri O F. t h R er . B W F a . n i R t k h M . s e r m e c r C s b o e a e n n e i u r n r c d r v - y e 3 b s an T k otal Averages of daily figures Week ending— 1964 Dec. 2 36,667 36,667 377 1,860 38,969 15,387 5,456 39,277 554 827 224 196 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. 6 37,058 36,515 543 340 2,622 40,111 15,388 5,407 39,552 630 674 228 283 1,026 18,513 3,686 22,199 13 36,816 36,515 301 460 2,149 39,522 15,330 5,394 39,282 649 780 186 205 970 18,174 3,671 21,845 20 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 27 36,440 36,334 106 252 1,84138,631 15,187 5,387 38,644 657 997 151 213 877 17,668 3,591 21,259 Feb. 3 36,876 36,769 107 323 1,61138,923 15,157 5,396 38,565 664 940 148 216 1,032 17,912 3,489 21,401 10 37,272 37,133 139 517 1,47239,384 15,045 5,391 38,641 679 924 152 207 1,158 18,060 3,252 21,312 17 37,151 37,088 63 398 I,5"'4"0 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 1,730 39,162 14,938 5,391 38,613 719 878 139 204 1,195 17,744 3,442 21,186 Mar. 3 36,911 36,835 76 315 1,924 39,226 14,902 5,400 38,625 706 922 159 217 1,224 17,675 3,461 21.136 10 37,319 37,211 108 426 1,624 39,475 14,813 5,394 38,756 715 806 150 209 1,202 17,844 3,218 2i;062 17 37,371 37,308 63 388 1,59739,484 14,741 5,397 38,894 717 912 132 191 1,061 17,714 3,454 21,168 24 37,305 37,305 482 2,00539,900 14,562 5,393 38,796 735 956 139 186 980 18,064 3,448 21,512 31 37,419 37,401 "18 502 1,3"7"6" 39,444 14,562 5,397 38,714 746 146 181 875 17,843 3,523 21,366 Apr. 7 37,725 37,496 229 586 1,40939,863 14,563 5,398 38,862 732 728 176 207 835 18,283 3,220 21.503 14 37,881 37,623 258 412 1,48739,883 14,519 5,406 39,092 741 910 158 202 804 17,899 3,389 21,288 21 37,594 37,486 108 589 1,995566 40,230 14,412 5,408 39,058 761 881 178 228 720 18,224 3.492 21,716 28 37,361 37,343 18 360 1,76739,548 14,413 5,406 38,802 744 921 166 190 767 17,777 3,623 21,4C0 May .I::::::::37,894 37,501 393 494 1,64140,137 14,411 5,409 38,825 747 837 164 205 827 18,353 3,390 21,743 38,190 37,565 625 514 1,557 4"0,332 14,395 5,399 39,071 744 1,010 134 191 821 18,154 3,311 21,465 19 37,843 37,546 297 515 1,915 40,333 14,353 5,407 39,095 762 1,060 138 186 885 17,966 3,476 21.442 26 37,980 37,788 192 497 1,598 40,146 14,335 5,397 39,047 762 791 142 172 1,142 17,821 3,543 21;364 June 2 38,717 38,462 255 532 1,446 40,772 14,291 5,399 39,239 759 856 142 190 ,285 17,992 3,422 21,414 9 38,889 38,515 374 494 1,556 41,006 14,293 5,394 39,472 765 840 127 178 ,293 18,017 3,352 21,369 16 38,817 38,527 290 626 1,632 41,131 14,292 5,394 39,555 771 816 151 177 ,231 18,115 3.534 21,649 23 38,775 38,696 79 596 2,037 41,455 14,292 5,409 39,528 778 892 129 185 ,153 18,491 3,569 22.060 30 38,870 38,740 130 500 1,678 41,102 14,227 5,413 39,513 777 803 162 184 ,082 18,221 3,672 21,894 July 7 39,588 39,050 538 594 1,' ,955 13,934 5,418 39,895 775 569 162 208 781 18,917 3.254 22.171 14 39,570 38,987 583 623 1,883 42,128 13,934 5,405 40,201 762 842 146 196 829 18,491 3.614 22,105 21 38,864 38,766 98 427 2,206 41,535 13,934 5,412 40,065 785 888 179 194 725 18,046 3,616 21,662 28 39,013 38,799 214 479 1,674 41,201 13,923 5,408 39,901 792 873 156 186 710 17,914*>3,683 '21,597 End of month 1965 May 38,686 38,466 220 545 ,308 40,621 14,290 5,398 39,207 744 745 142 184 1.281 18.006 3,130 21,136 June 39,100 38,882 218 657 ,349 41,159 13,934 5,412 39,720 747 672 179 198 '762 18,229 3,997 22,226 39,207 38,804 403 536 1,388 41,166^13,858 542 ^39,885 ^800 947 147 202 455 18,008^3,296 ^21.304 July Wednesday 1965 38,847 38,504 343 228 1,459 40,603 14,293 5,399 39,436 770 949 156 203 1,281 17.500 3,675 21,175 June 2 38,541 38,440 101 518 1,3"2'6 40,447 14,293 5,385 39,565 773 981 142 171 1,282 17,211 3,735 20,946 9 39,217 38,750 467 705 1,817 41,792 14,293 5,396 39,604 784 637 149 186 1,152 18,970 3,848 22,818 16 38,837 38,664 173 93 1,679 40,666 14,293 5,413 39,515 788 775 138 167 1,156 17,833 3,983 21,816 23 39,100 38,882 218 657 1,349 41,159 13,934 5,41" 39,720 747 672 179 198 762 18,229 3,997 22,226 30 July 7 39,518 39,050 468 465 1,796 41,832 13,934 5,418 40,228 771 973 153 202 850 18,008 3,637 21,645 14 39,067 38,766 301 212 1,903 41,228 13,934 5,40^ 40,196 766 920 156 203 728 17,600 4.053 21,653 21 38,979 38,766 213 271 1,65140,937 13,934 5,4i: 40,024 796 670 151 202 710 17,731 3,950 21,681 28 39,231 38,804 427 571 1,307 41",145 13,859 5,411 39,931 793 799 157 192 705 17,838 ^21,894 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 BULLETIN, 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

1112 BANK RESERVES AND RELATED ITEMS AUGUST 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 F r i o a . n a n w g t R k s - . s s F e r r r e v e - e e s T h o e t ld al qu R i e r - ed Excess B F r i o a . n a n w g t R k s - . s s F e r r r e v e - e e s T h o e t l a d l qu R i e r - ed Excess B F r i o n a . a w n g t R k s - . s s F e r r r e v e - e e s 1929—June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 1933—June 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 ,141 601 540 540 1941—Dec 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 ,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 ,024 1,011 13 6 7 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 ,199 1,191 8 5 3 1955—Dec 19,240 18,646 594 839 -245 4,432 4,397 35 197 -162 ,166 1,164 2 85 -83 1956—Dec 19,535 18,883 652 688 -36 4,448 4,392 57 147 -91 ,149 1,138 12 97 -86 1957—Dec 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 ,136 1,127 8 85 -77 1958—Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 ,077 1,070 7 39 -31 1959—Dec 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 ,038 1,038 104 -104 1960—Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 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 1,042 1,035 7 18 -11 1963—Dec 20,746 20,210 536 327 209 3,951 3,895 56 37 19 ,056 1,051 5 26 -21 1964—June.... 20,558 20,168 390 270 120 3,984 3,945 39 39 1,033 1,033 13 -13 1964—July.... 20,665 20,265 400 265 135 3,943 3,920 23 40 -17 1,039 1,036 3 22 -19 Aug 20,566 20,149 417 334 83 3,876 3,858 18 39 -21 1,039 1,033 6 13 -7 Sept 20,928 20,508 420 331 89 3,983 3,954 29 45 -16 1,061 1,060 1 34 -33 Oct 21,033 20,618 415 309 106 3,962 3,942 20 54 -34 L,058 1,055 3 29 -26 Nov 21,159 20,763 396 430 -34 3,893 3,882 11 97 -86 1,076 1,072 4 20 -16 Dec 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 L,O83 1,086 -3 28 -31 1965—Jan 21,619 21,217 402 299 103 4,117 4,073 43 113 -70 1,094 1,099 -5 12 -17 Feb 21,227 20,790 437 405 32 3,966 3,961 5 95 -90 1,096 1,083 13 50 -37 Mar 21,248 20,908 340 416 -76 4,026 4,004 23 120 -97 1,082 1,077 5 50 -45 Apr 21,505 21,146 359 471 -112 4,111 4,087 25 75 -50 1,085 1,086 -1 39 -40 May 21,476 21,149 327 505 -178 4,135 4,127 8 21 -13 1,116 1,110 6 10 -4 June.... 21,709 21,366 343 528 -185 4,206 4,185 21 135 -114 ,100 1,096 4 19 -15 July ^21,863 '21,515 ^348 524 4.155 4,164 n 126 -135 ,102 1,100 2 27 -25 Week ending— 1964—July 1. 20,845 20,443 402 221 181 4,075 4,046 29 23 6 ,054 1,059 -4 23 -27 8. 20,805 20,514 291 263 28 4,012 4,007 5 91 -86 ,056 1,050 6 4 3 15. 20,994 20,422 572 460 112 3,969 3,921 48 64 -16 1,041 1,039 2 68 -66 2 2 2 9 . . 2 2 0 0 , , 4 3 2 2 9 5 2 1 0 9 , , 1 9 5 5 1 7 2 3 7 6 8 8 1 1 7 5 9 9 1 1 8 1 9 9 3 3 , , 9 8 0 6 5 2 3 3 , , 8 8 8 4 3 6 2 1 2 6 "is 2 2 2 1 1 , , 0 0 4 2 3 2 1 1 , ,0 0 3 2 6 0 6 3 7 5 -4 1 1965—Feb. 3. 21,401 21,019 382 278 104 4,101 4,075 26 69 -43 1,102 1,100 2 34 -32 10. 21,312 20,815 497 472 25 3,991 3,972 19 56 -36 1,083 1,077 6 55 -49 17. 21,049 20,735 314 353 -39 3,964 3,932 32 145 -113 1,075 ,079 5 30 -34 24. 21,186 20,650 536 520 16 3,905 3,893 12 105 -93 1,074 ,070 4 87 -83 Mar. 3. 21,136 20,924 212 270 -58 4,049 4,028 20 117 -96 1,106 ,104 3 2 1 10. 21,062 20,695 367 385 -18 3,929 3,920 9 82 -73 1,064 ,065 -1 10 -11 17. 21,168 20,843 325 370 -45 3,998 4,000 -2 88 -90 1,078 ,066 12 9 2 24. 21,512 21,058 454 463 -9 4,056 4,024 32 196 -164 1,086 ,085 1 20 -19 31. 21,366 21,000 366 487 -121 4,105 4,039 65 104 -38 1,101 ,081 21 180 -160 Apr. 1A. 2 2 1 1 , , 5 2 0 8 3 8 2 2 1 1 , , 1 0 3 1 0 2 3 2 7 7 3 6 5 3 7 9 0 7 - -1 1 2 9 1 7 4 4 , , 1 0 3 1 9 7 4 3 , , 1 9 2 9 2 9 1 1 7 9 1 5 2 7 8 - - 11 3 1 8 1 1 , , 0 0 8 6 7 4 L 1, , 0 0 6 89 1 — 3 2 7 1 9 4 - -1 8 1 0 21. 21,716 21,249 467 572 -105 4,093 4,081 12 133 -121 1,078 1,081 3 65 -68 28. 21,400 21,164 236 345 -109 4,118 4,108 9 3 6 1,105 1,101 4 7 3 May 5. 21,743 21,411 332 478 -146 4,296 4,291 5 7 1,163 1,152 11 e 6 12. 21,465 21,118 347 498 -151 4,109 4,079 30 30 1,116 1,113 8 -5 19. 21,442 21,104 338 500 -162 4,109 4,110 -1 48 -49 1,093 1,098 < 17 -22 26. 21,364 21,059 305 483 -178 4,102 4,077 25 8 1 1,102 1,094 8 3 6 June 2. 21,414 21,087 327 518 -191 4,124 4,109 15 20 1,099 1,096 3 15 -12 9. 21,369 21,067 302 474 -172 4,069 4,064 5 52 -46 1,070 1,065 A 6 -2 16. 21,649 21,249 400 611 -211 4,164 4,163 1 175 -173 1,083 1,079 13 -9 23. 22,060 21,644 416 583 -167 4,358 4,271 87 225 -138 1,128 1,119 c 38 -29 30. 21,894 21,558 336 486 -150 4,256 4,253 111 -108 1,112 1,120 c i9 -27 July 7. 22,171 21,822 349 582 -233 4,352 4,320 233 -201 1,132 1,129 3 30 -27 14. 22,105 21,576 529 620 -91 4,148 4,137 200 -189 1,094 1,094 23 -23 21. 21,662 21,470 192 425 -233 4,139 4,119 68 -48 1,105 1,100 « 18 -13 28. ^21,597 21,276 479 4,107 4,093 37 -23 1,079 1,081 -2 35 -37 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 BANK RESERVES AND RELATED ITEMS 1113 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 Total F. R. reserves Total F. R. reserves held Required Excess Banks held Required Excess Banks 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 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 I960 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 68 190 -122 7,347 6,939 408 74 334 1964 June 8,318 8,290 28 142 -114 7,224 6,900 324 76 248 1964 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 Feb 8,548 8,485 63 207 -144 7,617 7,262 355 53 302 Mar 8,563 8,547 15 163 -148 7,577 7,279 298 83 215 Apr 8,680 8,648 32 271 -239 7,628 7,326 303 86 217 M^ay ... 8,604 8,554 50 383 -333 7,621 7,358 263 91 172 June 8,649 8,636 13 287 -274 7,751 7,450 301 87 214 July 8,774 8,723 50 264 -214 *>7,832 ^7,527 ^305 107 P198 Week ending— 1964—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 1965—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 7,727 7,248 480 48 432 Mar 3 8,527 8,527 89 -89 7,455 7,265 190 62 128 10 8,491 8,455 37 209 -172 7,577 7,255 322 84 238 17 8 527 8,502 26 180 -154 7,565 7 275 290 93 197 24 8,659 8,632 27 182 -155 7,711 7,317 394 65 328 31 8,665 8,599 66 104 -38 7,495 7,281 214 99 115 Apr 7 ... 8 665 8,645 19 293 -274 7,613 7 274 339 70 269 14 8,671 8,635 36 248 -212 7,536 7,317 218 78 140 21 . ... 8 717 8,696 21 279 -257 7 826 7 390 437 95 342 28 8,653 8,626 26 227 -201 7,524 7,328 197 108 88 Mav 5 8 697 8 662 35 397 -362 7,587 7 306 280 69 211 Y 12::::.: 8,610 8,563 48 375 -327 7,629 7,363 267 85 182 19 8,516 8,511 5 351 -346 7,724 7,385 338 84 254 26 8,558 8,522 37 366 -329 7,602 7,367 235 106 128 June 2 8,555 8,530 26 381 -355 7,635 7,352 282 102 181 9 8,571 8,539 32 313 -280 7,659 7,399 260 103 157 16 8 603 8,571 32 338 -306 7,799 7 436 363 85 278 23 8,804 8,734 70 238 -167 7,770 7,520 250 82 168 30 8,772 8,719 53 282 -229 7,751 7,450 301 87 214 July 7 8,869 8.841 28 218 -190 7,818 7,532 286 101 185 14 8,800 8,768 32 293 -261 8,063 7,577 486 104 382 21 8,731 8,704 26 225 -199 7,687 7,547 140 114 26 28 8,654 8,621 33 319 -286 ^7,757 ^7,480 P2J7 88 189 1 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. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964 reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1114 MAJOR RESERVE CITY BANKS AUGUST 1965 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars unless otherwise noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt. securities dealers Less: Net: Gross transactions Net transactions Reporting banks and Borweek ending— Excess Net Total Loans rowre- Bor- inter- Per cent 2-way Pur- Sales to ings Net serves * rowings bank Surplus of Pur- trans- chases of net dealers3 from loans at F.R. Federal or avg. chases Sales actions2 of net selling dealers 4 Banks funds deficit required buying banks trans. reserves banks Total—46 banks 1965 June 2 29 147 165 -283 3.0 1,985 1,821 1,178 807 642 832 90 742 9 29 165 419 -555 5.9 2,281 1,862 1 151 1 131 711 716 90 626 16 21 295 531 -805 8.4 2,218 1,687 1,092 1,126 595 1,219 106 1,113 23 116 331 849 -1,064 10.8 2,238 1,389 1,047 1,191 342 1,453 110 1,343 30 23 237 341 -555 5.6 1,892 1,551 987 906 565 1,454 91 1,364 July 7 41 299 850 -1,108 11.1 2,223 1,373 1,041 1,183 333 1,359 145 1,214 14 21 329 1,152 -1,460 15.1 2,148 997 873 1,275 124 1,148 92 1,056 21 27 161 1 001 -1,135 11.8 2 191 1,190 1 050 1 141 141 1 235 113 1,122 28 16 185 139 -308 3.2 1,895 1,756 996 898 760 873 90 783 8 in New York City 1965 June 2 13 18 -124 119 3.1 779 903 688 92 216 575 90 486 9 4 47 -83 40 1.1 891 974 613 278 361 513 89 424 16 1 166 38 -203 5.2 937 899 608 329 292 932 101 831 23 64 213 158 -306 7.7 934 in 599 335 177 1,047 105 942 30 3 96 -26 -67 1.7 782 808 509 273 299 1,088 91 998 July 7 23 181 338 -497 12.3 930 592 500 430 92 1,065 136 929 14 6 172 481 -648 16.8 922 441 418 504 22 746 92 654 21 15 43 244 -272 7.1 866 622 541 325 81 809 113 696 28 5 7 -429 427 11.2 660 1,089 444 217 645 569 90 479 38 outside New York City 1965 June 2 . . 16 129 289 -401 7.0 J 106 917 491 715 427 256 256 9 26 118 503 -595 10.5 391 888 538 853 350 203 1 202 16 21 129 493 -602 10.5 ,281 788 484 796 303 287 5 282 23 . . .. 52 118 691 -757 12.9 ,303 612 448 856 164 405 5 401 30 20 141 367 -488 8.3 ,110 743 478 633 266 366 366 July 7 18 118 512 -611 10.3 ,293 781 541 752 240 295 9 285 14 15 157 670 -812 13.9 ,227 556 455 772 101 402 402 21 13 119 756 -862 14.8 ,324 568 509 816 59 426 426 28 11 178 568 -735 12.7 234 667 552 682 114 304 304 5 in Chicago 1965 June 2 3 3 56 -56 5.7 291 235 111 180 124 10 10 9 5 1 113 -109 11.5 377 264 127 250 137 16 16 16 3 3 49 -50 5.1 310 261 121 189 140 25 25 23 8 34 139 -165 16.5 340 201 169 172 33 63 63 30 -8 16 150 -174 17.4 301 151 127 174 24 55 55 July 7 28 220 -247 24.5 368 148 134 233 13 53 53 14 -1 17 267 -285 29.2 402 135 113 289 22 47 47 21 . 3 15 158 -170 17.3 356 198 176 180 22 42 42 28 -2 19 193 -215 22.2 311 118 102 209 16 12 12 33 others 1965 June 2 13 126 233 -345 7.2 915 683 380 536 303 246 246 9 21 118 390 -487 10.3 1,014 624 411 602 213 187 1 186 16 18 127 444 -553 11.6 971 527 364 607 163 262 5 257 23 44 84 552 -592 12.1 963 411 279 684 132 342 5 338 30 28 125 217 -314 6.4 809 592 351 459 241 311 311 July 7 ... 18 90 292 -364 7.4 926 633 406 519 227 242 9 233 14 16 140 403 -527 10.8 825 422 342 483 80 355 355 21 10 104 599 -692 14.3 969 370 333 636 37 384 384 28 13 159 374 -521 10.8 923 549 450 473 98 292 292 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. for each bank indicates extent to which its weekly average purchases and sales are offsetting. NOTE.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see August 1964 BULLETIN, pp. 944-74. banks, repurchase agreements (purchases of securities from dealers subject to resale), or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 DISCOUNT RATES 1115 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 13 3 Federal Reserve Bank Sees. 13 and 13a i Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous July 31 date rate July 31 date rate July 31 date rate Boston Nov. 24,1964 Nov. 24, 1964 Nov. 24,1964 New York. . . Nov. 24,1964 2"4", 11964 Nov. 24,1964 Philadelphia.. Nov. 24,1964 24, 11964 5 Nov. 24,1964 4Vi Cleveland.... Nov. 27,1964 27, 11964 Nov. 27,1964 Richmond. . . Nov. 27,1964 27, 11964 Nov. 27,1964 41/2 Atlanta Nov. 25,1964 25, 11964 6 Nov. 25,1964 Chicago Nov. 24,1964 24, 11964 5 July 19,1963 41/2 St. Louis Nov. 24,1964 24, 11964 5 Nov. 24,1964 41/2 Minneapolis.. Nov. 30,1964 30, 11964 5 Nov. 30,1964 4 D K a a l n l s a a s s City.. N N o o v v . . 2 3 7 0 , , 1 1 9 9 6 6 4 4 2 3 7 0 , , 1 11 19 9 6 6 4 4 5 5 N N o o v v . . 2 3 7 0 , ,1 1 9 9 6 6 4 4 41/2 San Francisco Nov. 27,1964 '. 27,1 9164 5 Nov. 27,1964 1 Advances secured by U.S. Govt. securities and discounts of and secured by FICB securities are limited to 15 days. advances secured by eligible paper. Rates shown also apply to advances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum secured by securities of Federal intermediate credit banks maturing maturity: 4 months. within 6 months. Maximum maturity: 90 days except that discounts 3 Advances to individuals, partnerships, or corporations other than of certain bankers' acceptances and of agricultural paper may have member banks secured by U.S. Govt. direct securities. Maximum 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.... 21/2-31/2 21/2 1953 1958 Jan. 16 2 Jan. 22 2|4-3 1933 23 2 4 2 24 Mar. 3 31/2 Mar. 7 214-3 4 13 A M p a r y . 2 7 6 2 3 1 /2 - - 3 3 1 1 / / 2 2 3* Feb. 5 1954 l34-2 Apr. 2 1 1 8 214 * Oct. 20 2 -31/2 15 May 9 Apr. 14 Aug. 15 1934 16 !# Sept. 12 2 Feb. 2 11/2-31/2 H/2 May 21 H/2 2 Mar. 16 11/2-3 H/2 Oct. 24.'.'.'.'.'.'. 2 -21/2 2 Nov. 7 21/2 21/2 1935 1955 Jan. 11 11/2-21/2 n/2 Apr. 14 1*4-1% 1*4 1959 May 14 U/2-2 11/2 May 1 2 5 lf4 Mar. 1 6 6 221i//2,-3 1937 Aug. 4 iyi-ii/4 May 29 3 -31/2 Aug. 27 1 -2 5 134-214 24 June 12 31/2 Sept. 4 1 -H/2 Sept-.?1:2::::: 2 -214 2 Sept. 11 31/2-4 2 -214 214 18 4 1942 214 214 Apr. 11 Nov. 18 214-21/2 21/2 1960 Oct. 15 23 21/2 21/2 June 3 31/2-4 30 10 31/2-4 14 1946 Aug. 12 3 ^ Apr. 25 11/2-I 1956 Sept. 9 May 10 Apr. 13 21/2-3 20 234-3 234 1963 1948 Aug. 24 July 17 3 i2 Jan. 12 31 3 3 26 19 Aug. 13 1964 1957 Nov. 24 31/2-4 Aug. 9 3 -31/2 3 30 4 1950 23 31/2 Aug. 21 *41 Nov. 15 3 -31/2 1965 WA Dec. 2 3 In effect July 31 1 Preferential rate of 14 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. 439-42. 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. 4-8, 3.875. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1116 RESERVE REQUIREMENTS AUGUST 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 and maturity of deposit Jan. 1, Jan. 1, Jan. 1, July 17, Nov. 24, Effective date l Central C re e s n e t r r v a e l 1936 1957 1962 1963 1964 reserve Reserve Coun- and Councity city try reserve try banks 3 banks banks city banks Savings deposits: banks 1 year or more 4 4 Less than 1 year 21/2 31/2 31/2 In effect Dec. 31, 1948.. 26 22 16 71/2 7Vi Postal savings deposits: 1 year or more 4 1949_May 1, 5 24 21 15 7 7 Less than 1 year 21/2 31/2 June 30, July 1.. 20 14 6 6 Aug. 1, 11. IS* 13 5 Oth 1 e y r e t a i r m o e r d m e o p r o e sits:l A Au u g g . . 2 1 5 6, 18 WA !I% 12 5 6 months-1 year 41/2 Sept. 1 9 L 0 e s d s a t y h s a - n 6 9 m 0 o d n a t y h s s.... 4 1951— J J a a n n . . 2 1 5 1 , , F 1 e 6 b. 1.. 2 2 3 4 2 1 0 9 1 1 3 4 6 6 1953—July 1,9 22 19 13 l B is U h N 1 L e O L F d E T o T E b r I N y . e — , x t p c M h . e e p a 1 x t B 2 i i o m 7 o n 9 a u s . r m d w r i o a th f te s G r e t o s h p v a e e t c r n t m o t a r o s y f b u o n e re d p i e g a r n i d p t r i b m o y v e i m s d i e o e m n p s o b s e o i r t f s b , R a s n e e k g e s u O l a a c s ti t o e . n s 1 t 9 a Q 6 b 2 - . 1 19 9 5 5 8 4 — _ J M A F j u u e p l n a b y e r r . . . 1 2 2 2 1 6 0 9 7 7 , , , , 2 A A M 4 p u a r g r . . . 1 1 1 . . . . 2 2 1 1 1 0 9 9 1/2 1 17 8 % 1 i 2 i* '"5"" 5 U an n y d e e r v e th n i t s e R xc e e g e u d la t t i h o e n m th a e x i r m at u e m p a r y a a te b le p a b y y a b a l e m b e y m b S e t r a t b e a b nk an m ks a y o r n o tr t u i s n t 1960— A Se p p r t . . 24 1 I 1 8 8 V2 16% cos. on like deposits under the laws of the State in which the member Nov. 24 17V2 12 bank is located. Effective Feb. 1, 1936, maximum rates that may be Dec. 1 I6I/2 paid by insured nonmember commercial banks, as established by the FDIC, have been the same as those in effect for member banks. 1962—Oct. 25, Nov. 1. 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, 2y2 In effect Aug. 1, 1965... 16% 12 4 4 per cent. MARGIN REQUIREMENTS Present legal requirement: Minimum 10 7 3 3 (Per cent of market value) Maximum 22 14 6 6 Effective date 1 When two dates are shown, a first-of-month or midmonth date records changes at country banks, and any other date (usually a Thurs.) Regulation records changes at central reserve and reserve city banks. July 28, July 10, Nov. 6, 2 Demand deposits subject to reserve requirements are gross demand 1960 1962 1963 deposits minus cash items in process of collection and demand balances due from domestic banks. 3 Authority of the Board of Governors to classify or reclassify cities as Regulation T: central reserve cities was terminated effective July 28, 1962. For extensions of credit by brokers and dealers on listed securities 70 50 70 NOTE.—All required reserves were held on deposit with F.R. Banks, For short sales 70 50 70 June 21, 1917 until late 1959. Since then, member banks have also been Regulation U: allowed to count vault cash as reserves, as follows: country banks—in For loans by banks on stocks 70 50 70 excess of 4 and 2% per cent of net demand deposits effective Dec. 1, 1959 and Aug. 25, 1960, respectively; central reserve city and reserve city banks—in excess of 2 and 1 per cent effective Dec. 3, 1959, and Sept. 1, NOTE.—Regulations T and U, prescribed in accordance with Securities 1960, respectively. Effective Nov. 24, 1960, all member banks were Exchange Act of 1934, limit the amount of credit that may be extended on allowed to count all vault cash as reserves. a security by prescribing a maximum loan value, which is a specified percentage of its market value at the time of extension; margin requirements are the difference between the market value (100 per cent) 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 C o i f ty Other C b o a u n n k t s ry Item m b e a A m n l k b l s er Y N o e r w k C o i f ty Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending May 26, 1965 Four weeks ending June 23, 1965 Gross demand—Total. . . 138,862 27,154 6,721 51,977 53,010 Gross demand—Total. . 39,702 27,260 6,582 52,152 53,708 Interbank 14,200 4,527 1,201 6,700 1,772 Interbank 14,582 4,652 1,241 6,875 1 ,814 U.S. Govt 8,583 2,202 600 3,422 2,359 U.S. Govt 7,837 1,739 487 3,119 2,493 Other 116,078 20,424 4,920 41,855 48,879 Other 117,283 20,869 4,854 42,158 49,402 Net demand ! 113,671 20,969 5,606 41,679 45,417 Net demand 1 114.079 20,939 5.456 41,814 45,871 Time 111,527 16,988 4,729 42,179 47,632 Time 112,570 17,419 4,736 42,355 48,059 Demand balances due Demand balances due from dom. banks 7,108 146 101 1,952 4,909 from dom. banks... 7,272 154 99 1,919 5,100 Currency and coin 3,432 280 58 1,040 2,055 Currency and coin 3,469 282 60 1,044 2,082 Balances with F. R. Balances with F. R. Banks 18,072 3,874 1,061 7,555 5,581 Banks 18,154 3,897 1,035 7,589 5,634 Total reserves held 21,504 4,154 1,119 8,595 7,636 Total reserves held 21,623 4,179 ,095 8.633 7,716 Required 21,173 4,139 1,114 8,564 7,355 Required 21.262 4,152 1,090 8,593 7,427 Excess 331 15 5 31 281 Excess 361 27 5 40 289 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

AUGUST 1965 OPEN MARKET ACCOUNT 1117 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., maturity Gross Gross Redemp- Gross Gross Redemp- Gross Gross shifts, purchases sales tions purchases sales tions purchases sales or redemptions 1964—June 937 371 900 371 July ... 1,264 610 447 1,264 610 447 574 413 145 413 2,030 Sept . 620 534 388 534 Oct 1,347 888 1,275 888 Nov 1,197 131 1,197 131 -28 Dec 813 866 215 706 866 215 5 1965 Jan 388 261 12 388 261 12 Feb 865 198 464 784 198 464 1,752 Mar 642 7 551 7 Apr 466 290 126 466 290 111 -15 May 984 26 876 26 2,521 June 755 115 224 361 115 224 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 June 20 307 11 -307 5 July Aug 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 Feb 46 -1,752 23 12 Mar 36 574 45 -574 10 65 -2,521 32 12 June 185 166 43 Repurchase agreements Bankers' acceptances (U.S. Govt. securities) Net change Net change in U.S. in U.S. Govt. Govt. Under securities and Gross Gross securities Outright, repurchase acceptances purchases sales net agreements, net 1964 June. 625 625 566 36 602 July 1,070 1,021 257 -7 -21 229 Aug 684 733 113 -4 -16 93 Sept 812 712 186 2 61 249 Oct 682 782 359 -18 341 Nov 1,313 1,313 1,065 6 -23 1,048 Dec 2,194 1,657 269 15 15 300 1965 Jan 1,753 2,171 -303 -1 22 -281 Feb 98^ 1,019 166 -4 -40 122 Mar 482 434 684 1 71 756 Apr 1,831 1,717 163 -1 -38 124 May 1,20*7 1,233 932 -3 -20 909 June 1,894 1,895 415 -10 -19 386 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

1118 FEDERAL RESERVE BANKS AUGUST 1965 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1965 1965 1964 July 28 July 21 July 14 July 7 June 30 July June July Assets Gold certificate account 11,962 12,034 12,038 12,048 12,053 11,961 12,053 13,730 Redemption fund for F.R. notes 1,629 1,625 1,624 1,618 1,617 1,630 1,617 1,458 13,591 13,659 13,662 13,666 13,670 13,591 13,670 15,188 Cash 120 118 108 103 118 119 118 158 Discounts and advances: Member bank borrowings 571 271 212 457 646 536 646 239 g 1 j 11 Acceptances: Boueht outrifiht 36 36 38 41 41 35 41 40 8 12 12 12 16 U.S. Govt. securities: Bought outright: Bills 7,683 7 645 7,645 7,929 7,761 7,683 7,761 5,379 Certificates—Special Other Notes 25 737 25 737 25,737 25,737 25,737 25,737 25,737 24,912 5,384 5,384 5,384 5,384 5,384 5,384 5,384 4,711 38,804 38 766 38,766 39,050 38,882 38,804 38,882 35,002 Held under repurchase agreements 427 213 301 468 218 403 218 49 Total U.S Govt. securities 39,231 38,979 39,067 39,518 39,100 39,207 39,100 35,051 39 838 39 286 39,325 40,036 39,810 39,778 39,810 35,346 Cash items in process of collection 5,674 6,522 7,264 6,037 6,041 5,173 6,041 4,757 102 101 102 102 102 102 102 102 Other assets: 370 360 346 375 457 620 457 168 All other 404 379 355 334 310 413 310 345 Total assets 60,099 60,425 61,162 60,653 60,508 59,796 60,508 56,064 Liabilities 35,165 35,250 35,391 35,415 34,907 35,117 34,907 32,569 Deposits: Member bank reserves 17,838 17,731 17,600 18,008 18,229 18,008 18,229 17,327 799 670 920 973 672 947 672 785 Foreign 157 151 156 153 179 147 179 135 Other 192 202 203 202 198 202 198 198 18,986 18,754 18,879 19,336 19,278 19,304 19,278 18,445 Deferred, availability cash items 4,367 4,871 5,361 4,241 4,692 3,785 4,692 3,306 Other liabilities and accrued dividends1 396 391 396 448 443 395 443 105 Total liabilities 58,914 59,266 60,027 59,440 59,320 58,601 59,320 54,425 Capital Accounts 542 542 541 541 541 542 541 516 Surplus 524 524 524 524 524 524 524 990 Other capital accounts 119 93 70 148 123 129 123 133 Total liabilities and capital accounts 60,099 60,425 61,162 60,653 60,508 59,796 60,508 56,064 Contingent liability on acceptances purchased for 152 155 156 156 157 151 157 137 U.S. Govt. securities held in custody for foreign 7,192 7,281 7,353 7,377 7,599 7,221 7,599 8,201 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)... 37,884 37,896 37,836 37,519 37,342 37,896 37,342 34,825 Collateral held against notes outstanding: Gold certificate account 6,430 6,430 6,430 6,295 6,295 6,430 6,295 6,642 Eligible paper 29 14 5 34 28 47 28 43 U.S. Govt. securities 32,715 32,515 32,465 32,145 32,095 32,715 32,095 29,315 Total collateral. 39,174 38,959 38,900 38,474 38,418 39,192 38,418 36,000 i No accrued dividends at end-of-June dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 FEDERAL RESERVE BANKS 1119 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JULY 31, 1965 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i l i l - a a- C l l a e n v d e- m Ri o c n h d - At t l a an- c C a h g i o - Lo S u t. is M ap i o n l n is e- K C s a i a t n s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 11,961 671 2,399 706 990 1,104 769 2,156 489 250 541 464 1,422 Redemption fund for F.R. notes 1,630 93 387 89 142 131 93 296 62 30 63 55 189 Total gold certificate reserves 13,591 764 2,786 795 1,132 1,235 862 2,452 551 280 604 519 1,611 F.R. notes of other Banks 679 67 161 50 44 68 64 63 26 29 19 28 60 Other cash 119 11 24 4 11 7 11 22 6 4 4 c 10 Discounts and advances: Secured by U.S. Govt. securities. . . 528 10 112 27 8 20 29 59 20 23 69 21 130 Other 8 * 1 7 * * Acceptances: Bought outright 35 35 Held under repurchase agreements . U.S. Govt. securities: Bought outright 38,804 2,019 9,542 2,015 3,225 2,640 2,104 6,495 1,446 814 1,529 1,613 5,362 Held under repurchase agreements. 403 403 Total loans and securities 39,778 2,029 10,092 2,042 3,233 2,660 2,134 6,554 1,466 844 1,598 1,634 5,492 Cash items in process of collection. . . 6,612 404 1,175 397 497 533 530 1,143 303 212 423 357 638 Bank premises 102 3 8 3 5 5 20 21 7 3 6 11 10 Other assets: Denominated in foreign currencies . 620 29 i 162 35 56 31 37 88 21 14 28 36 83 All other 413 21 102 21 34 27 22 67 15 9 19 17 59 Total assets 61,914 3,328 14,510 3,347 5,012 4,566 3,680 10,410 2,395 1,395 2,701 2,607 7,963 Liabilities F R notes . 35,796 2,134 8,142 2,108 3,043 3,130 2,046 6,528 1,387 670 1,381 1,130 4,097 Deposits: Member bank reserves 18,008 691 4,730 775 1,318 809 1,029 2,658 625 469 827 1,037 3,040 U.S. Treasurer—General account.. 947 51 147 32 69 107 98 82 79 47 122 62 51 Foreign 147 7 2 36 8 14 8 9 21 5 3 7 9 20 Other 202 134 1 * 4 1 1 2 1 55 Total deoosits 19,304 750 5,047 816 1,401 928 1,137 2,762 710 520 958 1,109 3,166 Deferred availability cash items 5,224 368 900 338 428 424 405 886 244 169 294 279 489 Other liabilities and accrued dividends. 395 19 107 21 34 22 22 59 14 8 16 21 52 Total liabilities 60,719 3,271 14,196 3,283 4,906 4,504 3,610 10,235 2,355 1,367 2,649 2,539 7,804 Capital Accounts Capital paid in 542 26 142 29 49 27 32 78 18 13 24 32 72 Surplus 524 25 137 29 47 26 31 75 18 12 23 31 70 Other caoital accounts 129 6 35 6 10 9 7 22 4 3 5 5 17 Total liabilities and capital accounts.. 61,914 3,328 14,510 3,347 5,012 4,566 3,680 10,410 2,395 1,395 2,701 2,607 7,963 Ratio of gold certificate reserves to F.R. note liability (per cent): July 31, 1965 38.0 35.8 34.2 37.7 37.2 39.5 42.1 37.6 39.7 41.8 43.7 45.9 39.3 June 30 1965 38.6 39.6 40.5 38.3 40.2 39.1 34.3 39.0 34.2 32.1 36.4 34.7 38.5 July 31 1964 45.9 42.1 49.4 44.1 46.5 38.5 45.3 39.6 42.9 53.3 50.4 61.1 50.8 Contingent liability on acceptances purchased for foreign correspondents 151 7 3 39 8 14 8 9 22 5 3 7 9 20 Federal Reserve Notes—Federal Reserve Agent's Accounts F.R. notes outstanding (issued to Bank) 37,896 2,235 8,581 2,195 3,257 3,277 2,204 6,929 1,479 710 1,440 1,225 4,364 Collateral held against notes outstanding : Gold certificate account 6,430 420 1,000 465 600 883 400 1,100 295 127 225 180 735 Eligible paper 47 27 20 U.S. Govt. securities 32,715 1,845 7,700 1,800 2,775 2,440 1,850 6,100 1,260 595 1,250 1,100 4,000 Total collateral. 39,192 2,265 8,700 2,292 3,375 3,323 2,250 7,200 1,575 722 1,475 1,280 4,735 1 After deducting S458 million participations of other F.R. Banks. 3 After deducting $112 million participations of other F.R. Banks. 2 After deducting $111 million participations of other F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1120 FEDERAL RESERVE BANKS; BANK DEBITS AUGUST 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 1965 1964 July 28 July 21 July 14 July 7 June 30 July June July Discounts and advances—Total. 571 271 212 465 657 536 657 239 Within 15 days 563 264 206 460 650 525 650 232 16 days to 90 days 7 6 5 7 11 7 7 91 days to 1 year Acceptances—Total.. 36 36 46 53 53 35 53 56 Within 15 days 8 9 17 23 24 7 24 24 16 days to 90 days. 28 27 29 30 29 28 29 32 U.S. Government securities—Total. 39,231 38,979 39,067 39,518 39,100 39,207 39,100 35,051 Within 15 days* 1,698 1,509 1,376 1,512 1,183 5,033 1,183 2,357 16 days to 90 days 7,570 7,497 7,725 7,924 7,749 4,078 7,749 3,031 91 days to 1 year 17,965 17,975 17,968 18,084 18,170 18,098 18.170 12,897 Over 1 year to 5 years 10,138 10,138 10,138 10,138 10,138 10,138 10,138 14.691 Over 5 years to 10 years 1,489 1.489 1,489 1,489 1,489 1,489 1.489 1,836 Over 10 years 371 371 371 371 371 371 371 239 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 lg n i c a s n C d a o n l a l d ar ia s n F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i t n l h d d e e s r r s - f S ra w n i c ss s 1964 Oct 74 32 2 2 1 1 2 31 3 * Nov 727 717 1 2 1 I 2 3 * Dec 295 234 51 2 1 1 2 3 * 1965 Jan 287 235 36 2 1 1 2 3 6 Feb 165 131 16 2 1 4 2 2 5 Mar 375 347 11 2 1 2 2 2 7 A-nj- 315 297 1 2 1 1 2 3 8 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts i (In billions of dollars) Turnover of demand deposits Period S T M 2 o A 2 t 5 a S l 's N Le .Y a . ding S 6 M o A th S e 's rs 2 T c o N ( e t e n a . x Y l t c e 2 . l r ) . 2 s 4 SM o 2 th 1 A e 8 S r 's S T M 2 o A 2 t 5 a S l 's N Le .Y a . ding S 6 M o A th S e 's rs2 T S o N ( M t e a . x A Y l c 2 S . l ) . 2 's 4 SM o 2 t A 1 h 8 e S r ' 1 s 1964 Mav 4,542.0 1,853.6 1,030.0 2,688.4 1 6*58.4 45.2 89.8 43.1 33.5 29.5 4,535.4 1,928.0 992.5 2,607.4 ,614.9 45.0 91.2 40.9 3?.9 29.1 July 4,833.7 2,087.0 1,058.9 2,746.7 ,687.8 46.3 95.8 42.3 33.3 29.4 4,579.9 1,898.2 1,021.3 2,681.7 ,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 ,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 ,710.9 44.6 89.8 40.9 32.8 29.3 Nov 4,648.0 1,917.7 1,023.7 2,730.3 .706.6 45.1 91.3 41.0 33.2 29.5 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 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 Mar 4,995.6 2,071.8 1,115.4 2,923.8 1,808.4 47.9 96.9 44.8 35.4 31.2 Apr 5,113.3 2,151.3 1,131.7 2,962.0 1,830.3 48.4 100.0 44.5 35 2 31.2 May 4,825.6 1,954.1 1,082.7 2,871.5 1,788.8 47.0 96.0 44.3 34.7 30.6 June '5,327.8 '2,308.4 1,146.8 '3,019.4 '1,872.6 '50.9 107.0 45.5 36.3 '32.2 July 5,302.6 2,281.6 1,149.5 3,021.0 1,871.5 49.3 104.9 44.4 35.1 31.1 1 Excludes interbank and U.S. Govt. demand deposit accounts. NOTE.—Total SMSA's include some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach, For a description of the revised series see Mar. 1965 BULLETIN, p. 390. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 U.S. CURRENCY 1121 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation ! Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958 32,193 22,856 2,182 1,494 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 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962 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 1,722 103 2,469 7,373 12,10910,885 3,221 7,110 249 298 3 4 1964—June 37,734 26,797 3,205 ,676 107 2,379 280 12,15110,937 3,217 7,175 246 292 2 4 July 37,835 26,859 3,223 ,668 108 2,359 262 12,23910,976 3,231 7,202 245 291 3 4 Aug 38,014 26,972 3,249 ,668 109 2,364 272 12,31011,041 3,249 7,248 245 292 3 4 Sept 38,166 27,068 3,285 ,693 111 2,361 280 12,33911,098 3,253 7,302 246 291 3 4 Oct 38,373 27,201 3,321 ,716 111 2,385 328 12,33911,172 3,262 7,367 246 291 3 4 Nov 39,248 27,925 3,359 ,749 108 2,455 568 12,68711,323 3,314 7,468 246 289 3 4 Dec 39,619 28,100 3,405 ,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 ,709 110 2,381 7,256 12,26711,382 3,321 7,519 246 290 2 4 Feb 38,593 27,227 3,468 ,702 110 2,375 7,282 12,28911,366 3,310 7,517 245 288 2 4 Mar 38,816 27,424 3,520 ,704 111 2,391 7,327 12,37111,392 3,316 7,536 245 288 2 4 Apr 38,760 27,365 3,566 ,714 112 2,381 7,275 12,31711,394 3,313 7,544 244 288 2 4 May 39,207 27,758 3,608 ,740 114 2,427 7,375 12,49411,449 3,332 7,579 244 289 2 4 June 39,720 28,188 3,662 ,752 116 2,447 7,489 12,72311,532 3,361 7,635 243 287 3 4 1 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 F.R. Banks for which a denominational break- NOTE.—Condensed from Circulation Statement of United States down is not available. Money, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulition 1 Total out- Held by standing As security For F.R. Kind of currency Ju 1 n 9 e 6 3 5 0, g a o s g l i d a lv in e a r s n t d Tr c e a a s s h ury B F a a . n n R d k . s A B a g a n e n d n k t s s Ju 1 n 9 e 6 3 5 0, M 1 a 9 y 6 5 31, Ju 1 n 9 e 6 3 4 0, certificates Agents Gold . ... 13,934 (13,670) 2 264 Gold certificates .. (13,670) 313,669 F R notes 37 343 88 2 436 34 820 34 311 32 338 Treasury currency—Total 5,412 (889) 395 117 4,900 4,896 5,396 Standard silver dollars . . 485 3 * 482 482 482 Silver bullion 1,267 889 379 Silver certificates .. (889) 4 56 829 877 1,708 Subsidiary silver coin 2 375 2 18 2,355 2,310 1,987 Minor coin 853 5 24 825 816 736 United States notes 323 2 19 302 303 321 In process of retirement * 109 * 108 108 162 Total June 30 1965 5 56,690 (14,559) 747 13,669 2,554 39,720 May 31 1965 5 56 540 (14 967) 744 11 207 5,382 39\207 June 30 1964 555,451 (16,997) 391 12,369 4,957 37,734 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. 1111. 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 4 Redeemable from the general fund of the Treasury. BULLETIN, 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

1122 MONEY SUPPLY AUGUST 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 141.9 28.9 113.1 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 82.7 149.4 30.2 119.2 81.8 4.9 1962—Dec 147.5 30.6 116.9 97.8 151.6 31.2 120.3 96.7 5.6 1963—Dec 153.1 32.5 120.6 112.2 157.3 33.1 124.1 111.0 5.1 1964—Dec 159.7 34.2 C125.4 126.6 164.0 35.0 129.1 125.2 5.5 1964—June... 155.5 33.4 122.1 118.5 153.4 33.4 120.0 119.1 7.6 July.... 156.6 33.6 123.0 119.4 155.0 33.7 121.3 120.0 6.9 Aug.. . . 157.1 33.8 123.3 121.0 155.0 33.9 121.1 121.1 6.3 Sept 158.2 33.9 124.3 122.1 157.1 33.9 123.2 122.0 6.5 Oct 158.8 34.0 124.8 123.5 159.0 34.1 124.9 123.4 5.5 Nov 159.1 34.2 124.8 125.1 160.7 34.6 126.1 124.1 5.8 Dec 159.7 34.2 125.4 126.6 164.0 35.0 129.1 C125.2 5.5 1965—Jan 160.0 34.5 125.5 128.8 164.4 34.4 130.1 128.3 4.2 Feb 159.7 34.7 125.1 131.0 159.5 34.2 125.3 130.8 5.7 Mar.... 160.3 34.7 125.6 132.1 159.0 34.3 124.6 132.7 6.7 Apr 161.1 34.7 126.4 133.5 161.6 34.5 127.1 134.0 5.6 May 160.0 34.9 125.1 134.6 157.6 34.6 123.0 135.4 9.7 June.... 161.8 35.0 126.8 135.9 159.6 34.9 124.6 136.6 9.3 July. . .. 162.5 35.2 127.3 137.6 160.9 35.4 125.6 138.3 9.1 Week ending— 1965—Feb. 3. 160.2 34.6 125.5 130.0 162.5 34.0 128.5 129.7 4.6 10. 159.9 34.6 125.3 130.7 161.4 34.4 127.0 130.4 4.7 17. 159.5 34.7 124.8 131.0 159.7 34.2 125.4 130.9 5.3 24. 158.9 34.7 124.3 131.3 156.7 34.1 122.5 131.3 7.1 Mar. 3. 160.6 34.7 125.9 131.5 159.0 34.1 124.8 131.7 6.7 10. 160.4 34.7 125.7 131.9 159.2 34.6 124.6 132.3 5.2 17. 160.3 34.6 125.7 132.2 160.6 34.4 126.2 132.7 4.7 24. 159.9 34.6 125.3 132.3 157.9 34.3 123.5 132.8 8.3 31. 160.0 34.7 125.4 132.6 157.8 34.1 123.6 133.3 8.4 Apr. 7. 161.6 34.8 126.8 132.9 160.1 34.6 125.4 133.6 7.1 14. 161.4 34.8 126.6 133.2 161.9 34.7 127.2 133.9 4.6 21. 161.7 34.8 126.9 133.5 164.1 34.6 129.5 133.9 4.4 28. 160.3 34.7 125.5 133.8 160.9 34.1 126.8 134.4 5.8 160.4 34.8 125.6 134.1 160.3 34.4 125.9 134.8 8.5 159.9 34.9 125.1 134.3 158.9 34.7 124.1 135.1 8.4 19. 159.6 34.9 124.7 134.6 156.6 34.6 122.0 135.4 10.3 26. 159.7 34.9 124.9 134.8 155.7 34.4 121.2 135.6 10.8 June 2. 161.0 34.9 126.1 135.2 157.5 34.8 122.8 136.1 9.7 9. 161.5 34.9 126.6 135.6 158.8 35.1 123.7 136.4 8.1 16. 162.0 35.0 127.0 135.8 161.2 35.0 126.2 136.7 7.2 23. 162.1 35.0 127.2 136.1 160.2 34.9 125.3 136.6 10.2 30. 161.7 35.0 126.7 136.3 158.4 34.7 123.7 137.0 11.5 July 7. 162.7 35.1 127.6 136.7 160.4 35.6 124.8 137.5 12.0 14. 163.0 35.2 127.7 137.2 161.4 35.5 125.9 137.9 9.3 21. 162.4 35.3 127.2 137.7 161.1 35.4 125.7 138.4 8.4 28. 162.2 35.3 126.9 138.2 160.6 35.1 125.5 138.9 7.6 Aug. 4. 162.9 35.3 127.7 138.9 162.1 35.3 126.8 139.3 7.5 i At all commercial banks. deposits at all commercial banks other than those due to domestic commercial banks and the U.S. Govt., less cash items in process of collection NOTE.—Revised data. For description of revision of series and back and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) curdata beginning Jan. 1959, see July 1965 BULLETIN, pp. 933-43; for monthly rency outside the Treasury, the FRS, and the vaults of all commercial data 1947-58, see June 1964 BULLETIN, pp. 679-89. banks. Time deposits adjusted are time deposits at all commercial banks Averages of daily figures. Money supply consists of (1) demand other than those due to domestic commercial banls and the U.S. Govt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 BANKS AND THE MONETARY SYSTEM 1123 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Date Gold T s r t o c e u r i a u e n n u r n a y g r c t d - - s y - - Total Lo n a e n t s, Tota U l . S. G m C o a e o v n r m c e d i r a - n l men R F t e e d s s e e e r c r v a u e l rities Other O s ri e t t c h ie u e s - r c l n T a i i a a n p t e o i n b e i e t t d t i a t - s a l l - l, c d u e T r a p r o n o e t d s n a i c l ts y c C m o a a a n u i p c n s e n - i c d t t t . a s l , savings Banks banks 1929—June 29. . 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55776 8,922 1933—June 30.. 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42029 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 68359 6812 1941_Dec. 31. , 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82811 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 180806 10979 1947—Dec. 31. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175348 12800 1950—Dec. 30. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,008 184384 14624 1962—Dec. 28. 15,978 5,568 309,389 170,693 103,684 72,563 30,478 643 35,012 330,935 302195 28739 1963—Dec. 20. 15,582 5,586 333,203 189,433 103,273 69,068 33,552 653 40,497 354,371 323251 31118 1964—June 30. 15,461 5,578 343,988 201,161 100,879 65,337 34,794 748 41,948 365,027 333114 31915 1964—July 29. 15,500 5,600 341,300 199,300 99,900 64,300 34,800 700 42,100 362,300 329500 32800 Aug. 26. 15,500 5,600 344,000 200,600 100,700 64,900 35,100 800 42,700 365,100 331100 34000 Sept. 30. 15,500 5,600 351,300 205,000 102,900 66,800 35,400 700 43,400 372,300 338500 33700 Oct. 28. 15,500 5,500 351,000 204,100 103,300 67,200 35,200 900 43,600 372,000 338,100 33900 Nov. 25. 15,400 5,500 356,100 206,700 105,700 68,500 36,300 1,000 43,700 377,000 342,100 34900 Dec. 31. 15,388 5,405 365,366 214,254 106,825 68,779 37,044 1,002 44,287 386,159 352,964 33193 1965—Jan. 27. 15,200 5,400 360,600 210,900 105,100 67,400 36,700 1,000 44,600 381,100 347,200 34000 Feb. 24. 14,900 5,400 362,600 213,100 104,300 66,500 36,700 1,100 45,200 382,900 347,600 35,300 Mar. 31 v 14,600 5,400 367,200 217,600 103,800 65,100 37,600 1,100 45,800 387,200 351,900 35,300 Apr. 28? 14,400 5,400 368,900 219,300 102,600 64,200 37,400 1,100 47,000 388,700 354,000 34,700 May 26 P 14,300 5,400 371,000 221,900 102,400 62,900 38,300 1,100 46,700 390,600 354,400 36,200 June 30? 13,900 5,400 378,700 228,100 102,900 62,600 39,100 1,200 47,700 398,100 361,900 36,200 July 28 P 13,900 5,400 376,300 226,200 101,800 61,900 39,200 600 48,300 395,500 360,000 35,500 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 1 Not seeLsonally adjusted Time U.S. Government Date For- At Cur- De- Cur- De- Postal eign Treas- comrency mand rency mand Com- Mutual Savings net 4 ury mer- At Total outside deposits Total outside deposits Total mercial savings Sys- cash cial F.R. banks ad- banks ad- banks banks 3 tem hold- and Banks justed 2 justed 2 ings savings banks 1929 June29 26,179 3,639 22,540 28,611 19,557 8,905 149 365 204 381 36 1 19 9 3 3 9 3 D j e Un c e . 3 3 0 0 3 1 6 9 , ,1 19 7 4 2 4 6 , ,4 7 0 6 1 1 2 1 9 44 7 1 9 1 3 2 27 1 , , 0 6 5 5 9 6 1 1 5 0 , , 2 84 5 9 8 1 9 0 ,6 5 2 2 1 3 1 1 , , 1 2 8 7 6 8 1,2 5 17 0 2, 2 40 6 9 4 8 8 4 5 6 2 63 3 4 5 1941 Dec.31 48,607 9615 38992 27,729 15,884 10532 1,313 1,498 2,215 1,895 867 1945 Dec.31 102341 26490 75851 48452 30135 15385 2 932 2141 2,287 24608 977 1947—Dec.31.... 110,500 26,100 84400 113597 26476 87121 56,411 35249 17746 3,416 1,682 1,336 1'452 870 1950—Dec. 30.... 114,600 24,600 90000 117670 25398 92272 59,246 36314 20009 2,923 2,518 1,293 2,989 668 1962—Dec.28.... 147,600 29,600 118000 153162 30904 122258 139,448 97440 41478 530 1,488 405 7,090 602 1963—Dec.20.... 153,100 31,700 121400 158104 33468 124636 155,713 110794 44467 452 1,206 392 6,986 850 1964—June 30.... 153,500 32,700 120800 153331 33020 120311 166,627 119330 46882 415 1,324 391 10,502 939 1964—July 29.... 154,000 32,800 121200 154000 32900 121000 167,700 120300 47100 400 1,300 400 5,300 700 Aug. 26.... 154,300 32,900 121400 152900 33100 119800 169,000 121200 47400 400 1,400 400 6,300 1,100 Sept.30.... 156,900 33,100 123800 155900 33200 122700 170,500 122100 47900 400 1,400 400 9,400 900 Oct. 28.... 157,800 33,300 124500 158400 33200 125200 172,100 123600 48100 400 1,400 500 5,000 700 Nov. 25.... 156,900 33,400 123500 159300 34300 125000 172,700 124000 48300 400 1,500 600 7,300 800 Dec. 31.... 159,300 33,500 125800 167140 34882 132258 175,898 126447 49065 386 1,724 612 6,770 820 1965—Jan. 27.... 158,700 33,900 124,800 160800 33400 127400 179000 129200 49400 400 1,500 700 4,300 900 Feb. 24.... 157,400 33,900 123,500 156600 33500 123100 180900 131000 49600 400 1,500 700 7,000 900 Mar. 31 P. 161,300 34,100 127,200 156800 33800 123000 183300 132800 50100 400 1,600 700 8,600 900 Apr. 28p 159,000 33,800 125,200 159100 33,500 125,600 184600 134100 50,100 400 1,500 800 7,100 1,000 May 26*\'.'. 157,400 33,900 123,500 155,400 33,800 121,600 185900 135,200 50,300 400 1,500 800 10,200 700 June30p. 160,700 34,000 126,700 158,600 34,400 124,200 188000 136,900 50,700 400 1,700 800 12,100 700 July 28*... 159,800 34,400 125,400 159,600 34,500 125,100 189900 138,500 51,000 300 1,600 800 7,300 800 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 BULLETINS. other liabilities. Except on call dates, figures are partly estimated and are rounded to 4 Reclassification 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 deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1124 COMMERCIAL AND MUTUAL SAVINGS BANKS AUGUST 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 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 n i a t t i d i t - a e a l s l Total i D In e t - erbank1 Dema O nd ther r B i o n o w g r s - - c c T a o a p o u c i t - n t a a t l s l N ba b u o n e f m r ks - Govt. Other co a u c n - ts2 mand Time U.S. Time 3 Govt. Other All banks 1941—Dec. 31 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31 140,227 30,361101,288 8,577 35,415 177,332 165,612 14,065 105,935 45,613 22710,542 14,553 1947—Dec. 31 4 134,924 43,002 81,199 10,723 38,388 175,091 161,86512,793 240 1,346 94,381 53,105 6611,948 14,714 1962—Dec. 28 280,397 172,822 72,563 35,012 54,939 343,201 303,65316,008 535 6,839141,084139,188 3,63528,046 13,940 1963—Dec. 20 302,251192,686 69,068 40,497 51,536 362,394 319,63615,267 528 6,734 141,576155,531 3,,7"0"2 "2"9,882 14,079 1964—June 30 310,404203,119 65,337 41,948 54,073 337,909 331,84315,272 67810,263139,160166,469 2,120 31,037 14,175 1964—July 29 309,330202,950 64,310 42,070 48,580 366,950 322,83013,770 690 5,110135,690167,570 3,950 30,870 14,195 Oct. 28 318,300207,490 67,210 43,600 52,000 379,720 334,26015,360 710 4,770141,440171,980 3,940 31,600 14,242 Nov. 25 323,150210,990 68,460 43,700 53,100 385,810 338,97015,460 710 7,090143,180172,530 4,500 31,800 14,251 Dec. 31 329,739216,674 68,779 44,287 61,493 401,161 356,30817,938 821 6,517155,248175,785 2,700 32,196 14,266 1965—Jan. 27 326,880214,920 67,380 44,580 51,960 388570 34225014,800 890 4,060143,630178,870 4,400 32,040 14,290 Feb. 24 328,920217,270 66,470 45,180 52,580391080 34377014,890 940 6,710140,420180,810 4,330 32,200 14,290 Mar. 31? 331,950221,040 65,140 45;770 55;520 397650 35089016,300 950 8,350142,150183,140 3,670 32,610 14,292 Apr. 28P 335,020223,890 64,180 46,950 52,580 397710 349,32014,450 920 6,850142,600184,500 5,020 32,670 14,297 May 26? 336,100226,450 62,940 46,710 52,200 398^00 34942014,240 970 9,920 '1"3"8,490185,800 4,970 32,920 14,300 June 30^ 341.260230,930 62,610 47,720 58,060 409,840 36182016,080 99011,890 145,000187,860 3,500 33,680 14,295 July 28» 340,660230,450 61,920 48,290 52,310 403,330353,70014,420 960 7,020 141,510189,790 4,850 33,810 14,291 Commercial banks: 1941—Dec. 31 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31 124;019 26,083 90,606 7,33134,806160,312150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 4 116,284 38,057 69,221 9,,00637,502155,377144,10312,792 240 1,343 94,367 35,360 6510,059 14,181 1962—Dec. 28 235,839 140,106 66,434 29,298 54,049 297,116 226622,12216,008 535 6,829141,041 97,709 627 24,094 13,429 1963—Dec. 20 254,162 156,006 63,196 34,959 50,711312;773 275,12015,267 526 6,729141,534111,064 ,677 13,570 1964—June 30 260,179 164,463 59,322 36,394:5"3"; 1'6"8 321,909 284,90315,272 67710,257139,110119,587 099 26,768 13,669 1964—July 29 258,640 163,840 58,280 36,520 47,720314,530 275,71013,770 690 5,110135,640120,500 3,950 26,590 13,689 Oct. 28 266,600 167,220 61,360 38,020 51,100 "3"2'6 ^23300 228866,08015,360 710 4,770 14'1 ,390123,850 3,940 27,240 13,736 Nov. 25 271,120 170,330 62,670 38,120 52200 331,980 290,58015,460 710 7,090143,130124,190 4,500 27,380 13,746 Dec. 31 277,376 175,589 62,99138,796 60,489 346,921307,17017,938 819 6,510155,184126,720 2,679 27,795 13,761 1965—Jan. 27 274,000 173,420 61,520 39 ,010 333 810 292,77014,800 890 4,060 143,580129,440 4,40027,640 13,785 Feb. 24 275,730 175,530 60,520 39',680 51,580 336 010 294,13014,890 940 6,710140,370131,220 4,330 "2"7,750 13,786 Mar. 31P 278,350 179,040 59,040 40,270 54,510 342 110 300,77016,300 950 8,350142,100133,070 3,670 28,100 13,789 Apr. 28^ 281,240181,530 58,320 41,390 51, 640 342060 299,14014,450 920 6,850142,550134,370 5,020 28,210 13,793 May 26*> 281,970183,720 57,10041,150 51,230 342490 299,05014,240 970 9,920138,430135,490 4.970 28,410 13,796 June 30P 286.870187,910 56,800 42,160 57,040 353 500 311,03016,080 99011,890144,940137,130 3,500 29,150 13,791 July 28? 285,820 187,000 56,090 42,730 51; 330346,560302,62014,420 960 7,020141,450138,770 4,850 29,270 13,787 Member banks: 1941—Dec. 31 43,521 18,021 19,539 5,961 23,123 68,121 61,71710,385 140 ,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31 107,183 22,775 78,338 6,070 29,845 138,304129,67013,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 97,846 32,628 57,914 7,304 32,845 132,060122,52812,353 50 1,176 80,609 28,340 54 8,464 6,923 1962—Dec. 28 195,698118,637 52,968 24,092 47,427 249,488 221199,46815,309 358 6,086117,999 79,716 550 19,854 6,049 1963—Dec. 20 210,127 131,712 49,342 29,073 44,395 261469 229,37614,518 382 5,986117,562 90,929 499 21,054 6,112 1964—June 30 215,132 138,649 46,23530,249 46,767 269437 238,05214,527 525 9,342115,624 98,034 936 22,060 6,180 1964—July 29 213,635 138,042 45,22330,370 41,732 262,606 229,42913,078 536 4,636 112,319 98,860 3,740 21,947 6,186 Oct. 28 219,678 140,646 47,458 31,574 44,680 271,855 237.65614,559 555 4,325 116,793101,424 3,,733 22,474 6,209 Nov. 25 223,153 143,241 48,383 31,529 45,689 276,406 241,14114,646 551 6,319 118,030101,595 4,297 22,560 6,221 Dec. 31 228,497 147,690 48,717 32,089 52,737 289,142 255,72417,007 664 5,838128,539103,676 2,48122,901 6,225 1965—Jan. 27 225,493 145,830 47,297 32,366 44,461277:606 242,78114,016 731 3,662118,307106,065 4,186 22,799 6,236 Feb. 24 227,093 147,818 46,364 32'91144750 279488 244,01814,138 779 5,958115,601107,542 3, ,888 6,236 Mar. 31 229,456 150,921 45,120 33415 47749 285300 250,27715,556 795 7,510 117,349109,067 3,509 23,173 6,235 Apr. 28 231,866 152,951 44,555 34360 45106 285023 248,56313,710 759 6,263117,569110,262 4,802 23,253 6,237 May 26 232,373 154,705 43,61534053 44804 285 248,49413,525 817 8,881 114,025111,246 4,70123,406 6,239 June 30P 236,858 158,402 43,502 34954 50029 295309 259,26315,314 83110,715119,788112,615 3.380 "2'4,104 6,235 July 28? 235,644157,345 42,863 35,436 44703 288568 251,21613,671 803 6,296116,404114,042 4,598 24,193 6,230 Mutual savings banks: 1941—Dec. 31 10,379 4,901 3,704 1,774 793 11,804 10,533 6 10,527 1,241 548 1945—Dec. 31 16,208 4,279 10,682 1,246 609 17,020 15,385 14 15,371 1,592 542 1947—Dec. 31 4 18,641 4,944 11,978 1,718 886 19,714 17,763 17,745 1,889 533 1962—Dec. 28 44,558 32,716 6,129 5,714 890 46,086 41,531 41,478 3,951 511 1963—Dec. 20 48,089 36,679 5,872 5,539 826 49,621 44,516 44,467 4,205 509 1964—June 30 50,226 38,656 6,016 5,554 905 52,000 46,940 46,882 4,269 506 1964—July 29 50,690 39,110 6,030 5,550 860 52,420 47,120 47,070 4,280 506 Oct. 28 51,700 40,270 5,850 5,580 900 53,490 48,180 48,130 4,360 506 Nov. 25 52,030 40,660 5,790 5,580 900 53,830 48,390 48,340 4,420 505 Dec. 31 52,363 41,085 5,788 5,490 1,004 54,239 49,138 49,065 21 4,401 505 1965—Jan. 27 52,880 41,500 5,860 950 54,760 49.480 49,430 4,400 505 Feb. 24 53,190 41,740 5,950 1,000 55.070 49,640 49,590 4,450 504 Mar. 31 53,600 42,000 6,100 1,010 55.540 50,120 50,070 4,510 503 Apr. 28 53,780 42,360 5,860 940 55.650 50.180 50,130 4,460 504 May 26 54,130 42,730 5,840 970 56.010 50,370 50,310 4.510 504 June 30? 54,390 43,020 5.810 1,020 56.340 50,790 50,730 4,530 504 July 28^ 54,840 43,450 5,830 5,560 980 56,770 51,080 51,020 4,540 504 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1125 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 si b c 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 1 Dema O n t d her r B i o n o w g r s - - c c T a o a o p u c t i n - a ta t l s l b N a b u o n e f m 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 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—Dec. 20 34,827 23,577 6,154 5,095 9,372 46,434 38,327 4,289 214 1,419 20,96011,446 1,438 3,984 13 1964—June 30 36,693 25,490 5,779 5,42410,550 49,716 41,545 4,711 317 2,112 21,22413,181 924 4,402 14 1964—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 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 5,589 10,103 50,171 40,753 4,394 333 1,261 20,67914,086 1,784 4,434 13 Dec. 31 39,507 27,301 6,178 6,028 11,820 53,867 45,191 5,088 436 1,486 23,89614,285 1,224 4,471 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 Mar. 31 39,905 28,894 4,788 6,223 11,597 54,198 44,997 4,852 518 1,778 22,12315,726 1,506 4,526 13 Apr. 28 40,325 29,173 4,764 6,388 9,844 52,852 43,502 4,226 492 1,666 20,84216,276 1,655 4,517 13 May 26 40,201 29,558 4,674 5,96910,230 53,184 43,820 4,308 549 1,989 20,28916,685 1,498 4,548 13 June 30^ 42,202 30,947 4,906 6,349 12,229 57,263 47,366 5,061 563 2,560 22,42616,756 1,388 5,087 13 July 28? 40,802 29,438 4,834 6,530 9,639 52,998 43,263 4,300 525 1,409 19,93417,095 1,426 5,091 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 1,217 72 4,201 913 426 14 1962—Dec. 28 8,957 5,418 2,129 1,409 2,280 11,432 9,993 ,277 410 5,264 3,025 262 948 13 1963—Dec. 20 9,615 6,220 1,705 1,690 1,970 11,776 10,296 ,211 395 4,887 3,787 255 996 12 1964—June 30 9,636 6,266 1,750 1,620 2,121 12,046 10,630 ,182 587 4,744 4,090 210 1,017 12 1964—July 29 9,394 6,092 1,737 1,565 2,091 11,733 10,289 ,148 282 4,690 4,145 201 1,018 12 Oct. 28 9,788 6,404 1,791 ,593 2,234 12,305 10,802 ,238 288 4,939 4,314 255 1,034 12 Nov. 25 10,021 6,600 1,786 ,635 2,232 12,537 11,009 ,251 380 4,906 4,450 256 1,044 12 Dec. 31 10,562 7,102 1,873 ,587 2,366 13,289 11,807 ,448 396 5,362 4,578 204 1,056 12 1965—Jan. 27 10,245 6,767 1,850 ,628 2,163 12,703 11,177 ,153 259 5,076 4,663 232 1,046 12 Feb. 24 10,296 6,963 1,678 ,655 2,184 12,842 11,153 ,238 349 4,905 4,633 322 1,053 12 Mar. 31 10,310 7,129 1,546 ,635 2,089 12,801 11,088 ,977 501 3,985 4,597 278 1,060 11 Apr. 28 10,425 7,073 1,669 ,683 2,318 13,095 11,395 ,182 463 5,047 4,681 355 1,065 11 May 26 10,363 7,108 1,643 ,612 2,232 12,961 11,282 ,169 576 4,800 4,714 333 1,071 11 June 30^ 10,802 7,381 1,743 ,678 2,310 13,501 11,687 ,292 697 4,921 4,752 415 1,097 11 July 28? 10,558 7,183 1,659 ,716 2,206 13,153 11,312 1,133 395 4,936 4,829 415 1,096 11 Other reserve city: 5, 6 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31 40,108 8,514 29,552 2,04211,286 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 2,39613,066 49,659 46,467 5,627 22 405 28,990 1•'1,423 1 2,844 353 1962—Dec. 28 73,130 46,567 18,398 8,16519,539 94,914 84,248 7,477 82 2,337 43,609 30,743 1,388 7,263 191 1963—Dec. 20 78,370 51,891 16,686 9,79218,778 99,643 87,994 7,225 95 2,212 43,45935,004 1,417 7,697 190 1964—June 30 80,466 54,604 15,48810,37519,143102,245 91,145 6,894 118 3,771 42,38737,974 572 8,110 183 1964—July 29 80,080 54,557 15,01810,50517,209 99,824 87,609 6,320 115 1,875 41,15538,144 1,647 8,125 184 Oct. 28 82,239 55,712 15,72210,80518,305103,165 90,422 7,152 118 1,685 42,61838,849 1,725 8,357 184 Nov. 25 83,044 56,292 15,98610,76618,646104,306 91,299 7,102 132 2,580 42,85138,634 1,845 8,360 182 Dec. 31 84,670 57,555 16,32610,789 "2 1,607109,053 97,145 8,289 134 2,195 46,88339,645 841 8,488 182 1965—Jan. 27 83,987 57,428 15,54111,01818,353104,997 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 Mar. 31 85,374 58,771 15,03211,57119,011107,146 94,519 6,976 185 3,035 42,615 41,708 1,413 8,646 186 Apr. 28 86,265 59,701 14,62911,93518,522107,609 94,001 6,573 181 2,538 42,65142,058 2,310 8,675 C185 May 26 86,034 60,015 14,12311,89617,984 110066,851 93,130 6,366 174 3,548 40,969 4"2,073 2,329 8,676 cl80 June 30? 87,204 61,069 14,00312,13219,908110,037 97,405 7,157 172 4,322 42,963 42,791 1,343 8,733 181 July 28*> 87,272 61,417 136,"40 12,21518,133108,359 94,621 6,473 188 2,566 42,14143,253 2,257 8,756 181 Country member banks: 5, 6 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 225 10,109 6,258 4 1,982 6,219 1945_Dec. 31 35,002 5,596 26,999 2,40810,632 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 1,056 432 28,378 1144,560 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 7,744 5,828 1963—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—June 30 88,337 52,289 23,218 12,830 14,953105,430 94,733 ,739 2,872 47,270 42,788 230 8,531 5,971 1964—July 29 88,198 52,214 23,14612,83813,763103,912 93,056 ,617 1,492 46,868 43,023 416 8,416 5,976 Oct. 28 91,040 53,482 24,23313,32514,502107,627 96,431 ,870 1,293 48,912 44,292 408 8,647 6,000 Nov. 25 92,494 54,298 24,65713,53914,708109,392 98,080 ,899 2,098 49,594 44,425 412 8,722 6,014 Dec. 31 93,759 55,733 24,34113,68516,944112,932101,581 ,182 1,760 52,398 45,169 213 8,886 6,018 1965—Jan. 27 92,990 55,062 24,27613,65214,518109,740 98,441 ,831 1,028 49,713 45,805 417 8,784 6,027 Feb. 24 93,280 55,319 24,15413,80715,234 "1"1,0568 98,863 ,752 1,980 48,659 46,408 712 8,819 6,027 Mar. 31 93,867 56,127 23,75413,98615,052 111,155 99,673 ,751 2,196 48,626 47,036 312 8,941 6,025 Apr. 28 94,851 57,004 23,49314,354 14,422 111,467 99,665 ,729 1,596 49,029 47,247 482 8,996 c6,028 May 26 95,775 58,024 23,17514,576 14,358112,335100,262 ,682 2,768 47,967 47,774 541 9,111 c6,O35 June 30P 96,650 59,005 22,85014,79515,582114,508102,805 ,804 3,136 49,478 48,316 234 9,187 6,030 July 28^ 97,012 59,307 22,73014,97514,725114,058102.020 ,765 1,926 49,393 48,865 500 9,250 6,025 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1126 COMMERCIAL AND MUTUAL SAVINGS BANKS AUGUST 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 t b e ank Total Loans Securities as C s a e s t h s 1 c b T i a a l l o p i i n t i t a t d a i - a e l l s Totall Interbank 1 Dema O n t d her r B i o o n w r g - - s T a o o a p u t c i n a t - t a l s l N ba b u o e n f m k r - s G TUT o . v t o . . Other cou a n c t - s 2 mand Time G U o . v t S . . Other lime 3 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 5,699 10 6,844 3,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 3,740 80,276 9,876 215 8,671 3,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 2,615 54 1,32.- 92,975 4,882 61 9,734 3,398 1962—Dec. 28.. 234,243 39,449 65,891 8,903 53,702 295,093 260,609 5,844 402 6815140,169 7,380 3,58423,712 3,119 1963—Dec. 20.. 252,579 55,261 62,723 4,594 50,337 310,730 273,657 5,077 443 6712140,702 10,723 3,571 5,277 3,284 1964—June 30.. 258,597 63,715 58,880 6,002 52,845 319,913 283,463 5,072 591 0234138,323 19,243 2,03526,358 3,394 Dec. 31.. 275,053 74,234 62,499 8,320 59,911 343,876 305,113 7,664 733 6487154,043 26,185 2,58027,377 3,486 National member banks: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1088 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 4013 45,473 6,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8375 35 795 53,541 9,278 45 5,409 5,005 1962—Dec. 28.. 127,254 75,548 35,663 6,042 29,684 160,657 142,825 9 155 127 735 76,075 3,733 1,636 2 750 4,505 1963—Dec. 20.. 137,447 84,845 33,384 9,218 28 635 170,233 150,823 8 863 146 3691 76,83661,288 1,704 3 548 4,615 1964—June 30.. 141,198 89,469 31,56020,168 29,511 175,250 155,978 8 488 161 5822 75 369 6,137 841 4 262 4 702 Dec. 31.. 151,406 96,688 33,40521,312 34 064 190,289 169,61510521 211 3,604 84 53470,746 1,109 5 048 4 773 State member banks: I 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8 145 24,688 22,259 739 621 13 874 4,025 1 2 246 502 1945—Dec. 31.. 37,871 8 850 27,089 1933 9 731 48,084 44,730 411 8,166 24 168 7,986 130 2 945 1867 1947—Dec. 31.. 32,566 11 200 19,240 2 125 10 822 43,879 40,505 3 15 381 27 068 9 062 9 3 055 918 978 1962—Dec. 28.. 68,444 43 089 17 305 8 050 17 744 88 831 76,643 6,154 231 2,351 41 92425 983 1,914 7 104 544 1963—Dec. 20.. 72,680 46 866 15958 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 67510080 17 256 95 186 82,074 6,038 364 3,520 40 25531 897 1,095 799 1478 Dec. 31.. 77,091 51 002 15 31210777 18 673 98 852 86,108 6,486 453 2,234 44 00532 931 1,372 7 853 1452 Insured nonmember commercial banks: 1941—Dec. 31.. 5 776 3 241 1 509 1025 2 668 8 708 7,702 129 53 4 162 3 360 6 959 6 810 1945—Dec. 31.. 14639 2 992 10 584 063 4 448 19256 18 119 244 1,560 10 635 5 680 1,083 6 416 1947—Dec. 31.. 16444 4 958 10039 1448 4 083 20 691 19 340 262 149 12 366 6 558 1,271 6 478 1962—Dec. 28.. 38557 20 811 12 932 4 814 6 276 45 619 41 142 535 43 729 22 17017664 34 3,870 7,072 1963—Dec. 20.. 42 464 23 550 13 391 5 523 5,942 49 275 44 280 559 61 726 23,14019793 72 4,234 7,173 1964—June 30.. 43 476 25 066 12 654 5 755 6,078 50 488 45 411 546 66 892 22,699 209 99 4,309 7,215 Dec. 31.. 46567 26,544 13790 6 233 7,174 54747 49 389 658 70 649 25,50422,509 99 4,488 7,262 Noninsured nonmember commercial banks: 1941—Dec. 31.. ,457 455 761 241 763 2,283 1 872 329 1,291 253 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2 452 181 1,905 365 •| 279 714 1947—Dec. 314. 2,009 474 1,280 255 576 2,643 2 25 177 185 18 1,392 478 325 783 1962—Dec. 28.. 1,584 657 534 392 346 2,009 1,513 164 133 14 872 330 44 371 308 1963—Dec. 20. 1,57 745 463 362 374 2,029 1,46 190 83 17 832 341 93 389 285 1964—June 30. 1,57 748 432 390 323 1,984 1,439 200 85 23 787 344 64 399 274 Dec. 31. 2,312 1,355 483 474 578 3,033 2,05 273 86 23 1,141 534 99 406 274 Nonmember commercial banks 1941—Dec. 31. 7,23 3,696 2,270 1,266 3,431 10,992 9,57 457 5,504 3,613 18 ,288 7,662 1945—Dec. 31. 16,849 3,310 12,277 ,262 4,962 22,024 20,57 425 14,101 6,045 11 1,362 7,130 1947_Dec. 31. 18,45 5,432 11,318 1,70 4,659 23,334 21,59 439 190 167 13,758 7,036 12 1,596 7,261 1962—Dec. 28 40,14 21,46 13,466 5,206 6,622 47,628 42,65 699 17 743 23,04217,994 77 4,240 7,380 1963—Dec. 20. 44,03 24,29 13,854 5,88 6,316 51,304 45,74 749 14 743 23,97220,134 16 4,62 7,458 1964—June 30. 45,04 25,81 13,087 6,14 6,40 52,472 46,85 745 15 915 23,48621,553 16 4,70 7,489 Dec. 31. 48,87 27,89 14,27 6,707 7,752 57,780 51,44 931 15 672 26,64523,043 19 4,89 7,536 Insured mutual savings banks: 1941—Dec. 31. 1,69 64 629 42 15 1,95 1,78 1789 16 52 1945—Dec. 31. 10,84 3,08 7,160 60 429 11,424 10,36 12 10,35 1,03< 192 1947 Dec. 31. 12,68 3,56 8,16 95 67 13,49 12,20 2 1212,19 1'25; 194 1962—Dec. 28. 38,59 28,77 4,639 5,18 784 39,95 36,10 9 26735,82 3,34 331 1963—Dec. 20. 41,66 32,30 4,324 5,04 72 43,01 38,65 5 29238,359 3 3,57 330 1964—June 30. 43,43 34,05 4,31 5,06 79 45,02 40,79 6 33 40,45 2 3,61 327 Dec. 31. 45,35 36,23 4,11 5,01 89 47,044 42,75 1 32642,41 2 3,73 327 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1127 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank i Other lia- Bor- Total Num- Class of bank Cash bilities row- capital ber and date assets1 and Demand ings ac- of Total Loans capital Total i counts banks U.S. Other ac- De- Time Time 3 Govt. counts 2 mand U.S. Govt. Other Noninsured mutual savings banks: 1941 Dec. 31 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945 Dec 31 . ... 5,361 1,198 3,522 641 180 5,596 5,022 2 5,020 6 558 350 1947_Dec. 3H 5,957 1,384 3,813 760 211 6,215 5,556 1 2 5,553 637 339 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 Dec. 31 7,005 4,852 1,678 475 111 7,195 6,387 6 6,381 670 178 1 Reciprocal balances excluded beginning with 1942. NOTE.—Data are for all commercial and mutual savings banks in the 2 Includes other assets and liabilities not shown separately. United States (including Alaska and Hawaii, beginning with 1959). For 3 Figures for mutual sayings banks include relatively small amounts definition of "commercial banks" as used in this table, and for other of demand deposits. Beginning with June 1961, also includes certain banks that are included under member banks, see NOTE, p. 643, May 1964 accounts previously classified as other liabilities. BULLETIN. * Beginning with Dec. 31, 1947, the series was revised; for description, Comparability of figures for classes of banks is affected somewhat by see note 4, p. 587, May 1964 BULLETIN. changes in F.R. membership, deposit insurance status, and the reserve s Regarding reclassification of New York City and Chicago as reserve classifications of cities and individual banks, and by mergers, etc. cities, see Aug. 1962 BULLETIN, p. 993. For various changes between Data for June 30 and Dec. 31, 1964, for national banks have been reserve city and country status in 1960-63, see note 6, p. 587, May 1964 adjusted to make them comparable with State bank data. (Dec. 20,1963, BULLETIN. data also adjusted to lesser extent.) 6 Beginning with May 18, 1964, one New York City country bank with Figures are partly estimated except on call dates. loans and investments of $1,034 million and total deposits of $982 million For revisions in series before June 30, 1947, see July 1947 BULLETIN was reclassifjed as a reserve city bank. Beginning with May 13, 1965 pp. 870-71. (Toledo, Ohio) reserve city banks with total loans and investments of $530 million and total deposits of $576 million were reclassified as country banks. LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total1 Loans1 Total1 Loans1 G U o . v S t . . Other G U o .S v . t. 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 I960 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. 31 228.3 133.9 65.2 29.2 233.6 137.9 66.4 29.3 1963 Dec 31 246.5 149.4 62.1 35.0 252.4 153.9 63.4 35.1 1964—Dec. 31 267.2 167.1 61.4 38.7 273.9 172.1 63.0 38.8 1964 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. 28 261.1 163.2 60.0 37.9 262.4 163.0 61.4 38.0 Nov. 25 265.5 165.4 61.6 38.5 266.3 165.5 62.7 38.1 Dec. 31 267.2 167.1 61.4 38.7 273.9 172.1 63.0 38.8 1965—Jan. 27 269.6 170.2 59.9 39.5 269.1 168.5 61.5 39.1 Feb 24 272.1 171.9 60.2 40.0 270.7 170.5 60.5 39.7 Mar. 31p 275.5 175.8 59.6 40.1 273.9 174.5 59.0 40.3 Apr. 28^ 277.3 177.1 59.1 41.1 275.9 176.2 58.3 41.4 May 26*> 279.1 179.3 58.5 41.3 276.9 178.6 57.1 41.2 June 3O2* 282.2 182.6 57.6 42.0 283.4 184.4 56.8 42.2 July 28p 281.5 182.8 56.1 42.6 281.2 182.4 56.1 42.7 1 Adjusted to exclude interbank loans. call dates. For back data see June 1964 BULLETIN, pp. 693-97; for description of NOTE.—Data are for last Wed. of month except for June 30 and Dec. 31; seasonally adjusted series, see July 1962 BULLETIN, pp. 797-802. data are partly or wholly estimated except when June 30 and Dec. 31 are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1128 COMMERCIAL BANKS AUGUST 1965 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans 1 Investments For Class of lo T a o n t s a l ! C m o e m r- - p o s r u e r c c c a u h r r a r it y s i i i e n n s g g in f s in ti a T t n u o c ti i o al ns Other U. S. s e G cu o r v i e ti r e n s ment 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 a c i u n n ia s d - l - A c tu a u g r l l r - - i- b T ro o - Real v i d t i n o i d - - - Other Cer- g s lo e a o c c n v u a d t l - . O s ri e t t h c ie e u s r trial k d a e e n r a d s l- ot T h o ers ba T n o ks ot T h o ers uals Total Bills c t a if t i e - s Notes Bonds rities ers Total: 2 1947_Dec. 31., 116,284 38,057 18,1671,660 8301,220 115 5,723 947 19,221 2,193 7,789 6,034 53,205 5,276 3,729 1962—Dec. 28., 235,839140,106 48",6737,097 5,144 2', 131 2,578 8,459 34,259 30,5533,909 666,434 11,674 3,932 23,84126,987 24,,7.5_5. 4,543 1963—Dec. 20., 254,162156,006 52,9477,470 5,353 2,509 3,605 9,479 39,056 34,550 44,034 3,196 11,059 ',658 22,415 28,065 29,786 5",173 1964—June 30., 260,179164,46355,0617,688 5;526 22,770044 2,881 10,450 41,388 37,5944,421 19,322 9,061 35 23,14127,085 31,419 4,975 Dec. 31. 277,376175,589 6'0",217 ,505 5",542 2,843 3,491 10,913 43,675 39,8095,152 12,99113,377 19,039 30,574 33^33 5,263 7 All insured 1941_Dec. 31. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 11,046 3,159 16,899 3,651 3,333 1945_Dec. 31. 121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 18,912 2,455 19,071 16,04551,342 3,873 3,258 1947_Dec. 31., 114,274 37,58318,012 1,610 8"2"3" ', 19'0" 114 9,266 5,654 914 .7,941 2,124 7,552 5,91852,347 5,129 3,621 1962—Dec. 28., 234,243139,449 48,4587,060 5,119 2,103 2,551 8,434 34,123 30,402 3,890i5,891 11,514 3,916 23,71526,74624,547 4,,:356 1963—Dec. 20., 252,579155,26152,7437,444 5,321 2,476 3,594 9,415 38,861 34,383 4,015 .2,723 10,952 1,649 22,316 27^06 2299^,559 5,035 1964—June 30., 258,597163,71554,8557,663 5,492 2,671 2,83910,414 41,190 37,432 4,40318,880 8,970 32 23,044 26,83531,,1184 4,818 Dec. 31., 275,053174,2"3'4 5"9',7467,4825,3552,794 3,419 10,812 43,436 39,627 5,11212,49913,275 18,93930,285 33,294 5,026 Member, total 1941_Dec. 31. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 9,539 971 3,00715,561 3,090 2,871 1945_Dec. 31. 107,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 r8,338 2,275 16,985 14,27144,807 3,254 2,815 1947—Dec. 31., 97,846 32,62816,962 1,046 8111,065 113 7,130 4,662 839 17,914 1,987 5,816 4,815 4'5",295 4,199 3,105 1962—Dec. 28., 195,698118,637 43, 4,419 4,9541,777 2,445 7,936 27,162 24,7993,657 2,968 8,862 3,249 19,443 21,,414 20,7733,319 1963—Dec. 20., 210,127131,712 47. 4,6595,124 2,136 3,439 8,875 " ,9083;765 49,342 8,032 1,307 18,072 21,932 25,210 33,864 1964—June 30., 215,132138,649 49; 4,7555,3412,320 2,733 9,887 ,275 4;137 46,235 6,707 1618,572 20,940 26,5793,670 Dec. 31., 228,497147,690 53; 4,6435,142 2,411 3,25010,179 34^87 32,024 4,824 48,717 9,932 15,238 23,54828^74 3,715 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 2,453 1,172 26 80 287 272 7,574 477 3,433 3,32510,339 606 629 1947_Dec. 31., 20,393 7,179 5,361 545 267 93 111 564 238 1,972 1,002 640 558 9,772 638 604 1962—Dec. 28., 32,989 21,95411,943 172,766 425 572 2,087 1,329 2,143 1,196 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 2,2571,068 6,154 1,711 147 2,341 1,955 4,653 442 1964—June 30. 36,693 25,449900 12,647 213,045 625 1,014 2,762 2,296 2,5481,128 5,779 1,333 2,625 1,821 4,952 472 Dec. 31. 39,507 27,30114,189 30 2',742 623 1,179 2,615 2,546 2,6541,371 6,178 1,958 1,972 2,248 5,579 449 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 1962—Dec. 28., 8,957 5,418 2,941 407 152 703 362 523 369 2,129 377 115 849 788 1,242 168 1963—Dec. 20., 9,615 6,220 3,378 497 181 242 751 4011 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 Dec. 31.. 10,562 7,102 3,870 510 203 227 948 465 669 430 1,873 564 397 911 1,392 195 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 1,901 15,563 1,342 ,053 1962—Dec. 28., 73,130 46,56717,660 1,179 ,053 752 1,020 3,583 11,030 9,8601,266 8,398 2,343 1,403 7,257 7,395 7,252 913 1963—Dec. 20., 78,370 51,89118,8621,2191,243 891 1,224 4,286 12,52511,1061,462 6,686 2,152 545 6,600 7,390 8,810 981 1964—June 30. 80,466 54,60419,624 '1,173 ,155 970 953 4,706 13,20712,0631,753 5,488 2,206 6,566 6,715 9,449 925 Dec. 31. 84,670 57,55521,1021,095 ,060 986 1,134 4,887 13,61112,8021,977 6,326 3,200 5,662 7,463 9,871 918 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 16,999 630 5,102 4,54416,722 1,342 1,067 1947_Dec. 31. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 12,857 480 2,583 2,108 17,687 2,006 1,262 1962—Dec. 28. 80,623 44,69811,2993,187 728 447 764 1,563 14,44112,273 82625,425 4,144 1,223 8,849 11,209 8,6941,807 1963—Dec. 20. 87,316 50,02312,8313,374 708 496 966 1,591 16,11413,951 917 24,797 3,822 573 8,531 11,87110,3"8"5 22,111 1964—June 30. 88,337 52,28913,661144 33,535 644 534 565 1,525 16,88315,063 93923,218 2,749 15 8,728 11,72510,8082,022 Dec. 31. 93,759 55,73314,5563,493 830 599 710 1"7~30 17,964 15,8991,047 24,341 4,209 7,206 12,92511,5312,154 Nonmember 1947—Dec. 31. 18,454 5,432 1,205 20 156 2 2,266 1,061 10911,318 206 ,973 1,219 7,920 1,078 625 1962—Dec. 28. 40,141 21,469 4,830 190 354 132 523 7,097 5,754 25213,466 2,812 683 4,398 5,573 3,9821,224 1963—Dec. 30. 44,035 24,295 5,544 2; 229 373 166 604 8,047 6,643 26913,854 3,027 351 4,343 6,133 4,5761,309 1964—June 30. 45,047 25,815 5,,!844 2 185 384 149 563 8,594 7,320 28413,087 2,354 19 4,569 6,144 4,841 1,305 Dec. 31. 48,879 27,899 6,,500 2 400 432 241 733 9,C'~ 7,786 32814,273 3,445 3,801 7,026 5,1591,548 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

AUGUST 1965 COMMERCIAL BANKS 1129 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 te f d B s w F 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 p m s o a d a t s d e e n i - - d t d s 4 m D e I o s n t - t i e c r 3 ba e F n ig k o n r- 5 G U o .S v . t. S g l a o o t n c a v d a t t e l . c C c h o a e f e e i f e t n e f c r r c i d t d s . - k i ' - s, IPC I b n a t n e k r- G P U S i a n o o a n . g s S v v d t s . - t a . l g S l a o o t n c a v d a t t e l . IPC r B i o n o w g r s - - c C o a t a u a c p n - l i t - s 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 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 90,991 .627 2"4',094 1963—Dec. 20.. 17,150 4,048 12,312 112266,579 14,048 1,218 6,729 12,256 4,494 124,784 526 269 7,908102,886 3,664 25 1964—June 30.. 16,774 4,539 12,693122,537 13,909 1,363 10,257 12,583 4,832 121,695 677 257 099 26^768 Dec. 31.. 17,581 4,532 15,111134,671 16,369 1,569 6,510 13,519 5,970 135,694 819 272 9,812 116,635 679 27,795 All insured: 1941—Dec. 31.. 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945_Dec. 31.. 15,810 1,829 11,075 74,722 12,566 1,248 233,740 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 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 90,714 3,584 23,712 1963—Dec. 20.. 17,150 4,033 11,984125,615 13,900 1,177 6,712 12,175 4,429 124,098 443 269 7,853102,600 3,57125,277 1964—June 30.. 16,774 4,524 12,409121,608 13,756 1,316 10,234 12,491 4,781 121,051 591 257 8,634 no;352 2t;,035 26,358 Dec. 31.. 17,581 4,515 14,613133,336 16,210 1,454 6,487 13,423 5,856 134,764 733 272 9,766 116!147 2»,580 27,377 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 2122,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947_Dec. 31.. 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 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 74,316 3,55019,854 1963—Dec. 20.. 17,150 3,131 7,359 102,816 13,378 1,140 5,986 9,376 4,055 104,130 382 240 6,364 84,326 3,499 ~2'1,054 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 Dec. 31.. 17,581 3,490 9,057 108,324 15,604 1,403 5,838 10,293 5,368 112,878 664 239 8,012 95,4252,48122,901 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 20 1,206 195 2,120 1947—Dec. 31.. 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 14 1,418 30 2,259 1962—Dec. 28.. 4,121 251 156 17,095 3,854 929 1,408 366 2,237 19,628 207 266 8,9371,728 3,898 1963—Dec. 20.. 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 449 10,920 '1,438 3,984 1964—June 30.. 3,919 273 82 16,389 3,791 920 2,112 420 2,323 18,480 317 528 12,582 924 4,402 Dec. 31.. 3,730 278 180 17,729 4,112 976 1,486 441 2,940 20,515 436 677 13,5341,224 4,471 City of Chicago: 1941_Dec. 31.. 1,021 298 2,215 1,027 127 233 34 2,152 476 288 1945—Dec. 31.. 942 200 3,153 1,292 1,552 237 66 3,160 719 377 1947—Dec. 31.. 1,070 175 3,737 1,196 72 285 63 3,853 902 426 1962—Dec. 28.. 1,071 99 4,262 1,235 410 351 109 4,804 16 3,001 262 948 1963—Dec. 20.. 1,019 98 4,144 1,169 395 275 112 4,500 185 3,595 255 996 1964—June 30.. 923 151 3,845 1,135 587 311 114 4,319 199 3,887 210 1,017 Dec. 31.. 1,006 150 4,294 1,389 396 312 122 4,929 213 4,361 204 1,056 Other reserve city: 1941 _Dec. 31.. 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 243 4,542 1,967 1945_Dec. 31.. 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 160 9,563 2,566 1947_Dec. 31.. 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 332 11,045 2,844 1962—Dec. 28.. 7,671 1,021 2,253 35,481 7,229 248 2,337 3,216 980 39,413 82 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 2,950 31,982 1,416 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 3,362 34,544 572 8,110 Dec. 31.. 7,680 1,065 2,433 37,047 7,962 326 2,195 3,508 1,238 42,137 134 3,840 35,728 841 8,488 Country: 1941—Dec. 31.. 2,210 526 3,216 9,661 790 225 1,370 239 8,500 31 146 6,082 4 1,982 1945—Dec. 31.. 4,527 796 4,665 23,595 ,199 5,465 2,004 435 21,797 52 219 12,224 11 2,525 1947_Dec. 31.. 4,993 929 3,900 27,424 ,049 432 2,647 528 25,203 45 337 14,177 23 2,934 1962—Dec. 28.. 4,817 1,947 5,389 44,689 ,753 1,931 5,337 756 40,801 100 2,242 34,350 172 7,744 1963—Dec. 20.. 4,919 1,884 5,060 46,049 ,764 1,960 5,590 790 41,877 86 2,778 37,829 390 8,377 1964—June 30.. 4,826 2,113 5,278 44,773 ,705 2,872 5,674 856 40,740 83 2,956 39,749 230 8,531 Dec. 31.. 5,165 2,092 6,295 49,253 2,141 1,760 6,031 1,068 45,298 83 3,282 41,803 213 8,886 Nonmember:2 1947_Dec. 31.. 544 3,947 13,595 385 55 167 1,295 180 12,284 190 172 6,858 12 1,596 1962—Dec. 28.. 989 5,202 22,814 642 57 743 2,802 428 19,813 176 1,292 16,675 77 4,240 1963—Dec. 20.. 917 4,953 23,763 671 78 743 2,880 438 20,654 144 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 1,635 19,888 163 4,708 Dec. 31.. 1,042 6,054 26,348 765 166 672 3,227 602 22,816 156 1,800 21,210 198 4,894 3 Beginning with 1942, excludes reciprocal bank balances. that are included under member banks, see NOTE, p. 589, May 1964 4 Through 1960, demand deposits other than interbank and U.S. BULLETIN.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection. status, and the reserve classifications of cities and individual banks, and 5 For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 BULLETIN. Data for June 30 and Dec. 31, 1964, for national banks have been adjusted to make them comparable with State bank data. (Data for NOTE.—Data are for all commercial banks in the United States. (For Dec. 20, 1963, also adjusted to lesser extent.) definition of "commercial banks" as used in this table and for other banks For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1130 WEEKLY REPORTING MEMBER BANKS AUGUST 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financial institutions Wednesday m i T l n o a e v o n a n e t n d a s t s s t l - 1 j i L m u n a s a o v e n t d a e e n d - n s d t t s s - 2 j L u a o st d a e - n d s 2 i C n m t a c r d o n i i e a u m a d r l s l - - - A t c u u g r l r a - i l - G U c a T t s u i o n . e e o r S v d - s i . t - b . d r e o O a k c t l s u e t i e e e h r r r - s s i e s - r G U c t s u T i o . e e r S v o - s i . t - . oth O c e t s u t i r e e h r s - s i e - r F ei o g r n B - an c k m m D c o t i i e e m o a c s r - l - - - f P s C i a e O a n e S N n t ., l c r e d s o a . s . n n . b O an t k her e R st e a a t l e o A th l e l r V se t a r i r o e l v u - n e a s - Total- Leading cities 1964 July 1 145,125 142,720 96,022 38,785 1,567 775 4,195 1,865 1,174 2,405 4,990 3,897 18,936 21,829 2,059 8 143,361 141,597 95,194 38,568 1,570 1,082 3,836 1,867 1,139 1,764 4,417 3,913 18,970 21,821 2,059 15 143,883 140,987 95,336 38,687 1,584 1,161 3,680 1,862 1,127 2,896 4,407 3,931 19,037 21,850 2,062 22 142,810 140,327 94,899 38,526 1,595 1,461 3,409 1,875 1,131 2,483 4,069 3,960 19,086 21,781 2,060 29 142,895 140,332 94,568 38,498 1,588 3,355 1,871 1,142 2,563 4,106 3,958 19,120 21,832 2,060 1965 June 2 157,097 154,161107,454 45,270 1,571 962 3,812 1,957 1,609 2,936 5,151 4,138 20,848 24,359 2,295 9 156,345 153,642106,741 45,257 1,575 783 3,601 1,974 1,605 2,703 4,769 4,145 20,899 24,350 2,290 16 158,628 156,322109,458 46,473 1,594 ,031 3,750 1,966 1,581 2,306 5,468 4,224 21,006 24,588 2,295 23 158,259 155,980109,110 46,320 1,601 ,023 3,699 1,954 1,596 2,279 5,215 4,215 21,070 24,637 2,292 30 r 159,778 158,439110,925 46,847 1,607 ,110 4,265 1,970 1,577 1,339 5,447 4,383 21,151 24,801 2,306 July J::::::::::: 159,966 157,499110,220 46,688 1,601 ,231 3,669 1,963 1,585 2,467 5,361 4,365 21,193 24,794 2,301 159,373 156,991109,766 46,706 1,619 ,137 3,319 1,962 1,594 2,382 5,192 4,393 21,262 24,809 2,296 21 1 1 5 5 8 8 , , 2 0 9 1 1 9 1 15 5 5 6 , , 7 0 9 8 5 61 1 0 0 8 8 , , 9 5 9 5 6 1 4 4 6 6 , , 4 2 4 6 5 2 1 1, , 6 6 4 3 0 2 9 5 0 8 6 5 3 3 , , 1 0 9 8 0 8 1 1 , , 9 9 6 7 7 0 1 1, , 5 5 5 5 5 3 2 2, , 2 2 0 2 5 4 4 4 , , 9 9 5 7 3 4 4 4, , 5 3 1 9 0 3 2 2 1 1, , 3 3 3 6 6 8 2 2 4 4, , 8 8 4 2 7 7 2 2 , , 2 2 9 9 4 7 28 New York City 1964 35,426 34,621 24,013 12,272 439 2,577 603 617 805 1,728 824 2,009 3,473 564 July 1 34,315 33,962 23,508 12,153 690 2,270 604 608 353 1,403 814 2,031 3,465 564 2 1 8 2 5 3 3 3 4 4 4 , , , 6 3 5 2 7 3 5 0 0 3 3 3 3 3 3 , , , 5 2 2 6 2 6 7 5 6 2 2 23 3 3 , , , 0 3 1 7 8 0 9 6 0 1 1 1 2 2 2 , , , 2 2 2 5 2 4 1 1 2 6 6 79 9 0 1 4 4 2 1 1 , , , 8 8 1 5 3 0 5 3 5 12 6 6 6 0 0 0 6 7 2 6 5 5 0 8 9 3 8 4 1 1 1 , , , 1 0 2 4 5 6 5 8 4 1 1 1 , , , 2 4 2 7 0 0 8 3 4 8 8 8 3 2 3 0 8 0 2 2 2 , , , 0 0 0 5 6 7 5 2 2 3 3 3 , , , 4 4 4 5 7 7 9 6 9 5 5 5 6 6 6 4 4 4 29 1965 June 2 39,228 37,997 27,950 15,091 480 2,408 526 843 1,231 1,758 935 2,517 3,977 620 9 38,853 37,724 27,457 15,061 453 2,235 528 840 1,129 1,536 927 2,534 3,925 616 16 39,484 38,812 28,543 15,599 552 2,362 516 805 672 1,791 929 2,554 4,015 614 23 39,607 38,580 28,228 15,500 478 2,326 514 825 1,027 ,664 944 2,568 3,988 612 30 40,465 40,153 29,544 15,759 796 2,838 534 821 312 ,775 993 2,600 4,006 610 July 7 40,240 39,480 28,811 15,663 675 2,253 518 832 760 ,820 972 2,612 4,045 610 14 39,826 39,050 28,257 15,617 566 1,975 522 841 776 ,666 960 2,613 4,075 610 21 39,301 38,315 27,600 15,454 369 1,843 529 802 986 ,528 969 2,618 4,066 610 28 39,068 38,148 27,421 15,365 290 1,794 529 805 920 ,543 1,013 2,621 4,040 610 Outside New York City 1964 July 1 109,699 108,099 72,009 26,513 1,541 336 1,618 1,262 557 1,600 3,262 3,073 16,927 18,356 1,495 8 109,046 107,635 71,686 26,415 1,545 392 1,566 1,263 531 1,411 3,014 3,099 16,939 18,356 \495 15 109,258 107,420 71,950 26,436 1,565 557 1,575 1,255 539 1,838 3,004 3,101 16,982 18,371 ,498 22 108,280 107,061 71,799 26,305 1,576 670 1,554 1,269 537 1,219 2,865 3,132 17,024 18,305 ,496 29 108,525 107,107 71,489 26,256 1,570 394 1,522 1,269 539 1,418 2,828 3,128 17,048 18,373 ,496 1965 June 2 117,869 116,164 79,504 30,179 1,553 482 1,404 1,431 766 ,705 3,393 3,203 18,331 20,382 ,675 9 117,492 115,918 79,284 30,196 1,558 330 1,366 1,446 765 ,574 3,233 3,218 18,365 20,425 ,674 16 119,144 117,510 80,915 30,874 1,577 479 1,388 1,450 776 ,634 3,677 3,295 18,452 20,573 ,681 23 118,652 117,400 80,882 30,820 1,585 545 1,373 1,440 771 ,252 3,551 3,271 18,502 20,649 ,680 30 ' 119,313 118,286 81,381 31,088 1,592 314 1,427 1,436 756 ,027 3,672 3,390 18,551 20,795 ,696 July 7 119,726 118,019 81,409 31,025 1,587 556 1,416 1,445 753 ,707 3,541 3,393 18,581 20,749 ,691 14 119,547 117,941 81,509 31,089 1,604 571 1,344 1,440 753 ,606 3,526 3,433 18,649 20,734 ,686 21 118,990 117,771 81,396 30,991 1,617 537 1,347 1,438 751 ,219 3,425 3,424 18,718 20,781 ,684 28 118,951 117,647 81,130 30,897 1,625 295 1,294 1,441 750 ,304 3,431 3,497 18,747 20,787 ,687 For notes see p. 1132 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 WEEKLY REPORTING MEMBER BANKS 1131 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued [In millions of dollars] Investments Cash assets 3 U.S. Government securities Total Total Wednesday Total Bills c C t a i e f t i e r - - s W i i N n th o - m te a s tu a 1 n r i t d n o g b — on A d f s ter O s ri e t t c h ie u e s - r Total d b a o w B a n t m n i a i c c t l e k e h - s s s - b a w B e f a n o i n a i c g r t l e k n h - - s s Cu a rr n e d ncy B s F w e R a . r i n v e t R - h k e . s s a o s A t s h e l e l t r s a c l c i a a a c t p i b o n e i i d u s t l a n i- l ts lyear 5 years 5 years Total- Leading cities 1964 July 1 26,621 4,201 4,001 13,181 5,238 20,077 18,537 3,286 303 ,715 13,233 5,743 186,388 8 26,286 3,927 4,014 13,112 5,233 20,117 18,240 2,965 299 ,734 13,242 5,678 181,188 15 25,514 3,539 3,884 12,879 5,212 20,137 18,346 3,300 296 ,797 12,953 5,773 185,255 22 25,305 3,283 4,022 12,513 5,487 20,123 17,438 3,052 281 ,819 12,286 5,732 180,111 29 25,701 3,597 2,998 11,386 7,720 20,063 17,759 2,839 256 ,850 12,814 5,723 179,412 1965 June 2 24,026 3,203 3,549 10,027 7,247 22,681 18,097 3,154 234 ,913 12,796 6,408 198,406 9 23,702 2,902 3,611 10,012 7,177 23,199 17,826 2,968 216 ,952 12,690 6,287 194,841 16 23,709 2,934 3,624 9,982 7,169 23,155 19,687 3,361 219 ,928 14,179 6,289 202,642 23 23,533 2,795 3,636 9,920 7,182 23,337 18,608 3,079 215 2,031 13,283 6,390 198,682 30 r 24,254 3,635 3,637 9,866 7,116 23,260 19,182 3,288 213 1,955 13,726 6,666 204,302 July 7 23,829 3,204 3,664 9,857 7,104 23,450 18,391 3,150 211 1,910 13,120 6,431 202,010 14 23,745 3,046 3,760 9,803 7,136 23,480 18,252 3,083 203 2,059 12,907 6,373 201,563 21 23,604 2,976 3,748 9,755 7,125 23,486 18,410 2,988 201 2,005 13,216 6,300 198,422 28 23,667 2,990 3,755 9,776 7,146 23,577 18,509 2,883 201 2,050 13,375 6,386 197,430 New York City 1964 July 1 5,474 1,380 854 2,370 870 5,134 4,326 141 265 3,837 2,410 48,241 5,285 1,215 852 2,365 853 5,169 4,188 140 262 3,720 2,397 45,419 15 5,002 1,055 822 2,282 843 5,179 4,243 149 253 3,745 2,506 47,298 22 5,034 925 1,063 2,211 835 5,132 3,796 124 256 3,343 2,475 45,552 29 5,049 1,115 605 1,855 1,474 5,097 4,145 113 264 3,708 2,424 45,289 1965 June 2 4,440 769 642 ,480 ,549 5,607 3,970 142 128 289 3,411 2,636 51,524 9 4,415 749 635 ,491 ,540 5,852 4,074 106 109 290 3,569 2,540 50,502 16 4,424 748 636 ,493 ,547 5,845 4,829 155 112 281 4,281 2,542 53,002 23 4,369 702 621 ,484 ,562 5,983 4,273 130 106 290 3,747 2,629 52,005 30 4,657 1,038 604 ,455 ,560 5,95" 4,782 192 102 289 4,199 2,752 55,272 July 7 4,625 1,010 603 ,465 ,547 6,044 4,075 106 106 297 3,566 2,587 52,653 14 4,702 1,087 616 ,458 ,541 6,091 4,200 138 97 296 3,669 2,546 52,177 21 4,625 1,004 634 ,441 ,546 6,090 4,404 146 92 283 3,883 2,477 51,123 28 4,623 970 641 ,456 ,556 6,104 4,601 103 95 296 4,107 2,482 51,015 Outside New York City 1964 July 1. 21,147 2,821 3,147 10,811 4,368 14,943 14,211 3,203 162 1,450 9,396 3,333 138,147 21,001 2,712 3,162 10,747 4,380 14,948 14,052 2,899 159 1,472 9,522 3,281 135,769 15 20,512 2,484 3,062 10,597 4,369 14,958 14,103 3,204 147 1,544 9,208 3,267 137,957 22 , 20,271 2,358 2,959 10,302 4,652 14,991 13,642 2,979 157 1,563 8,943 3,257 134,559 20,65" 2,482 2,393 9,531 6,246 14,966 13,614 2,779 143 ,586 9,106 3,299 134,123 29'.'/.'.'.'.'.'., 1965 19,586 2,434 2,907 8,547 5,698 17,074 14,127 3,012 106 1,624 9,385 3,772 146,882 June 2 19,287 2,153 2,976 8,521 5,637 17,347 13,752 2,862 107 1,662 9,121 3,747 144,339 9 19,285 2,186 2,988 8,489 5,622 17,310 14,858 3,206 107 1,647 9,898 3,747 149,640 16 19,164 2,093 3,015 8,436 5,620 17,354 14,335 2,949 109 1,741 9,536 3,761 146,677 23 19,597 2,597 3,033 8,411 5,556 17,308 14,400 3,096 111 1,666 9,527 3,914 149,030 30' July 7 19,204 2,194 3,061 8,392 5,557 17,406 14,316 3,044 105 1,613 9,554 3,844 149,357 14 19,043 1,959 3,144 8,345 5,595 17,389 14,052 2,945 106 1,763 9,238 3,827 149,386 21 18,979 1,972 3,114 8,314 5,579 17,396 14,006 2,842 109 1,722 9,333 3,823 147,299 28 19,044 2,020 3,114 8,320 5,590 17,473 13,908 2,780 106 1,754 9,268 3,904 146,415 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1132 WEEKLY REPORTING MEMBER BANKS AUGUST 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time De- Other C i a ta p l - Wednesday j T u u o s n t t a e a d d l - * ju p m d s o a a t e d s e n - i - d t d s 5 Totals IPC S g l a o o t n c a v d a t t e l . e F i o g r n - 7 G U o .S v . t. c m m D c o t i e i e o m a c s r - l - - - Total* S in a g v s - IPC Oth S l e a o r t n c a t d a t i e l me e » F ig o n r- 7 B F F a r . o n R m k . s o F t r h o e m rs lia ti b e i s li- co a u c- nts banks govt. Total- Leading Cities 1964 July 1 161,829 62,664 98,717 67,206 5,405 1,939 7,28611,784 63,112 39,05315,360 4,527 3,678 385 3,304 5,728 15,142 8 157,229 61,959 93,897 65,317 4,778 ,906 6,192 11,837 63,332 39,08415,530 4,515 3,706 365 2,783 5,649 15,162 15 160,268 63,359 96,787 69,337 4,829 2,0103,88712,288 63,481 39,118 15,658 4,484 3,704 91 3,835 5,932 15,129 22 155,712 63,314 91,943 66,884 4,716 2,037 3,29811,200 63,769 39,15615,838 4,520 3,733 46 3,194 6,038 15,121 29 154,675 63,674 90,754 66,397 4,897 ,923 36,0"4 10,441 63,921 39,16815,943 4,535 3,750 226 3,308 6,038 15,165 1965 June 2 170,841 62,611 97,845 67,525 5,545 1,993 6,384 12,046 72,996 42,53819,679 5,817 4,263 158 4,351 6,874 16,182 9 166,911 62,976 93,523 66,490 5,081 1,958 4,63311,531 73,388 42,62219,988 5,747 4,307 423 4,544 6,775 16,188 16 174,991 65,066 10011,959 71,634 4,971 2,049 6,69412,161 73,032 42,69419,671 5,696 4,242 636 4,095 6,846 16,074 23 171,261 62,961 97,831 67,206 4,965 2,0218,01911,426 73,430 42,778 2200,016 5,695 4,198 26 3,774 7,196 16,425 30 r 177,369 63,810 10"3,551 69,652 5,410 2,086 8,664 1-2,401 73,818 43,12920,130 5,595 4,232 604 2,582 6,976 16,771 July ,2:::::: 173,854 63,035100,182 68,624 4,936 2,047 7,04312,882 73,672 43,13719,972 5,656 4,196 395 4,130 6,824 16,807 173,276 63,116 99,067 69,917 4,723 2,012 6,00512,381 74,209 43,28720,240 5,734 4,233 179 4,328 7,003 16,777 21 1 16 7 9 0 , , 3 5 3 5 9 8 6 6 4 3 , , 1 3 7 1 9 3 9 94 6 , , 5 1 7 5 9 4 6 6 8 8, , 4 1 5 0 9 2 4 4, , 9 5 0 6 0 3 2 1 , ,9 0 8 0 1 2 5 5 , , 9 0 3 2 6 2 1 10 1 , , 8 4 6 8 2 4 7 74 4 , , 7 4 6 0 0 4 4 4 3 3 , , 4 3 2 7 9 6 2 22 0 00 , , 5 3 4 2 2 2 5 5 , , 7 7 6 5 6 2 4 4 , , 2 3 4 0 2 2 4 2 8 2 6 0 4 3 , , 0 87 0 7 2 6 6, , 9 8 5 9 5 0 1 16 6 , , 7 7 7 5 3 2 28 New York City 1964 39,665 15,862 27,280 16,760 402 1,472 2,086 3,253 12,385 4,460 4,638 392 2,606 13 1,723 2,633 4,207 July 1 37,122 15,223 24,578 15,765 276 1,419 1,756 3,080 12,544 4,461 4,768 403 2,619 160 1,331 2,599 4,207 38,851 15,812 26,192 17,039 359 1,535 1,024 3,432 12,659 4,459 4,868 400 2,618 1,477 2,764 4,206 8 37,291 15,733 24,535 16,358 244 1,531 877 3,174 12,756 4,463 4,951 395 2,626 1,248 2,811 4,202 15 36,860 15,887 24,057 16,471 248 1,434 970 2,850 12,803 4,469 4,967 395 2,645 113 1,374 2,739 4,203 22 29 1965 June 2 42,507 15,410 26,330 16,545 343 ,4641,852 3,378 16,177 4,937 7,134 566 3,058 75 1,443 3,121 4,378 9 41,315 15,415 24,891 16,389 287 420 1,309 3,132 16,424 4,955 7,333 547 3,083 30 1,720 3,060 4,377 16 43,898 16,454 27,693 18,027 306 ,5181,788 3,304 16,205 4,969 7,156 565 3,006 241 1,531 2,959 4,373 23 43,027 15,748 26,738 16,722 334 483 2,248 3,246 16,289 4,988 7,253 558 2,967 1,074 3,291 4,613 30 45,694 15,897 29,447 17,538 459 ,5472,538 3,739 16,247 5,018 7,194 532 2,991 1,068 3,352 4,908 July 7 42,817 15,553 26,740 16,672 305 ,4832,036 3,400 16,077 5,022 7,018 576 2,964 163 1,512 3,236 4,925 14 42,269 15,351 25,949 16,809 315 ,4631,670 3,323 16,320 5,046 7,185 599 2,998 1,747 3,246 4,915 21 41,669 15,489 25,295 16,498 268 ,4271,693 3,172 16,374 5,058 7,227 608 2,993 1,382 3,160 4,912 28 41,561 15,721 25,072 16,624 256 ,4551,394 3,093 16,489 5; 062 7,284 614 3,037 62 1,332 3,146 4,914 Outside New York City 1964 July 1 122,164 46,802 71,437 50,446 5,003 4675,200 8,531 50,727 34,59310,722 4,135 1,072 372 1,581 3,095 10,935 8 120,107 46,736 69,319 49,552 4,502 487 4,436 8,757 50,788 34,62310,762 4,112 1,087 205 1,452 3,050 10,955 15 121,417 47,547 70,595 52,298 4,470 475 2,863 8,856 50,822 34,65910,790 4,084 1,086 91 2,358 3,168 10,923 22 118,421 47,581 67,408 50,526 4,472 5062,421 8,026 51,013 34,69310,887 4,125 1,107 46 1,946 3,227 10,919 29 117,815 47,787 66,697 49,926 4,649 489 2,634 7,591 51,118 34,69910,976 4,140 1,105 113 1,934 3,299 10,962 1965 June 2 128,334 47,201 71,515 50,980 5,202 529 4,532 8,668 56,819 37,60112,545 5,251 1,205 83 2,908 3,753 11,804 9 125,596 47,561 68,632 50,101 4,794 5383,324 8,399 56,964 37,66712,655 5,200 1,224 393 2,824 3,715 11,811 16 131,093 48,612 74,266 53,607 4,665 5314,906 8,857 56,827 37,72512,515 5,131 1,236 395 2,564 3,887 11,701 23 128,234 47,213 71,093 50,484 4,631 5385,771 8,180 57,141 37,79012,763 5,137 1,231 26 2,700 3,905 11,812 30 r 131,675 47,913 74,104 52,114 4,951 539 6,126 8,662 57,571 38,11112,936 5,063 1,241 354 1,514 3,624 11,863 July 7 131,037 47,482 73,442 51,952 4,631 5645,007 9,482 57,595 38,11512,954 5,080 1,232 232 2,618 3,588 11,882 14 131,007 47,765 73,118 53,108 4,408 549 4,335 9,058 57,889 38,24113,055 5,135 1,235 179 2,581 3,757 11,862 21 128,889 47,824 70,859 51,961 4,295 554 4,243 8,312 58,030 38.31813,095 5,144 1,249 220 2,620 3,730 11,840 28 127,778 48,458 69,507 51,478 4,644 547 3,628 7,769 58,271 38;36713,258 5,152 1,265 424 2,545 3,809 11,859 1 After deduction of valuation reserves. banks, international institutions, banks in foreign countries, and foreign 2 Exclusive of loans to domestic commercial banks and after deduction branches of U.S. banks other than reporting bank. of valuation reserves; individual loans items are shown gross. 8 Includes U.S. Govt., postal savings, domestic commercial interbank 3 Excludes cash items in process of collection. and mutual savings banks, not shown separately. 4 Total demand and total time deposits. 9 Includes certificates of deposit outstanding in following amounts 5 Demand deposits other than domestic commercial interbank and (in millions of dollars): U.S. Govt., less cash items in process of collection. July 7 July 14 July 21 July 28 6 Includes certified and officers' checks and deposits of mutual savings Total—Leading cities 15,203 15,469 15,593 15,840 banks, not shown separately. New York City 6,290 6,421 6,513 6,613 7 Deposits of foreign governments and official institutions, central Outside New York City... 8,913 9,048 9,080 9,227 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 BUSINESS LOANS OF BANKS 1133 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (In millions of dollars) Outstanding Net change during— 1965 1965 1965 1964 1965 1964 Industry J 2 u 8 ly J 2 u 1 ly Ju 1 l 4 y Ju 7 ly Ju 3 n 0 e July June May IV h 1 a s l t f h 2 a n l d f Durable goods manufacturing: Primary metals 770 782 779 775 801 -31 24 20 68 92 -18 160 -99 Machinery 2,700 2,697 2,755 2,740 2,741 -41 20 20 77 457 93 534 12 Transportation equipment ,103 1,094 1,069 1,042 1,066 37 38 46 55 64 60 119 47 Other fabricated metal products.. ,282 1,277 1,298 1,290 1,285 2 98 34 154 169 -36 323 -36 Other durable goods ,427 1,465 1,481 1,471 1,438 -11 59 33 142 143 -66 285 -9 Nondurable goods manufacturing: Food, liquor, and tobacco ,513 1,561 1,563 1,597 1,630 -117 69 -113 -191 -179 527 -370 704 Textiles, apparel, and leather ,733 1,729 1,737 1,719 1,694 39 129 14 176 248 -359 424 -295 Petroleum refining ,227 1,237 1,251 1,242 1,231 -4 29 21 23 166 33 189 -11 Chemicals and rubber ,656 1,667 1,677 1,680 1,703 -47 66 -20 109 190 232 299 249 Other nondurable goods 1,110 1,108 1,100 1,089 1,095 15 19 30 106 97 -94 203 -63 Mining, including crude petroleum and natural gas 3,326 3,358 3,364 3,360 3,350 -24 35 -43 3 218 295 221 435 Trade: Commodity dealers 1,015 1,009 1,023 1,026 1,039 -24 -76 -115 -370 -20 391 -390 545 Other wholesale 2,540 2,537 2,540 2,540 2,533 7 18 71 144 126 81 270 156 Retail 2,953 3,005 3,064 3,122 3,174 -221 123 209 267 414 -211 681 -68 Transportation, communication, and other public utilities 5,216 5,160 5,169 5,165 5,169 47 439 87 520 -15 237 505 637 Construction 2,525 2,525 2,531 2,504 2,521 4 92 257 2 38 259 142 All other :i Bankers' acceptances 800 815 829 856 882 -82 92 94 -307 174 -213 235 All other types of business, mainly services 5,939 5,965 5,964 5,971 5,958 -19 144 59 136 428 394 564 355 Total classified loans 38,835 38,991 39,194 39,189 39,310 -475 1,343 537 1,770 2,293 1,771 4,063 2,936 Commercial and industrial loans— All weekly reporting banks 46,262 46,445 46,706 46,688 r46,847 -585 1,624 626 r2,227 2,501 2,166 r4,728 3,371 1 Beginning Dec. 31, 1963, bankers' acceptances for the creation of NOTE.—About 200 of the weekly reporting member banks are included dollar exchange are excluded from commercial and industrial loans and in this series; these banks classify, by industry, commercial and industrial those relating to commercial transactions are shown in a separate cate- loans amounting to about 85 per cent of such loans held by all weekly gory. Current figures are therefore not strictly comparable with figures reporting member banks, and about 60 per cent of those held by all 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 (thousands of dollars) (thousands of dollars) Area All Area All and loans and loans period 1- 10- 100- 200 period 1- 10- 100- 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.:1 19 large cities: New York City: 1964—June 4.74 5.64 5.36 5.05 4.63 1956 4.2 5.2 4.8 4.4 4.0 Sept 4.72 5.64 5.40 5.01 4.61 1957 4.6 5.5 5.1 4.8 4.5 Dec 4.77 5.35 5.08 4.66 1958 4.3 5.5 5.0 4.6 4.1 1965—Mar 4.74 5.36 5.10 4.62 1959 5.0 5.8 5.5 5.2 4.9 June 4.74 5.62 5.39 5.07 4.62 1960 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 1964—June 5.03 83 5.55 5.27 4.89 1963 5.0 5.9 5.5 5.2 4.8 Sept 5.01 5.56 5.25 4.86 1964 5.0 5.9 5.6 5.3 4.8 Dec 5.03 5.58 5.31 4.88 1965—Mar 5.00 5.55 5.26 4.85 June 5.01 5.58 5.32 4.85 Quarter: 1 19 large cities: 11 southern and western cities: 1964—June 4.99 5.84 5.53 5.24 4.81 1964—June 5.29 5.93 5.34 5.07 Sept 4.98 5.86 5.57 5.23 4.79 Sept 5.31 5.95 5.36 5.09 Dec 5.00 5.85 5.56 5.31 4.82 Dec 5.31 5.96 5.46 5.06 1965—Mar 4.97 5.89 5.56 5.26 4.78 1965—Mar 5.27 6.02 5.36 4.99 June 4.99 5.88 5.59 5.29 4.79 June 5.31 6.00 5.71 5.42 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, 3V2\ 1956—Apr. 13, 3%; Aug. NOTE.—Weighted averages. For description see Mar. 1949 BULL., pp. 21, 4; 1957—Aug. 6, AVi', 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, 4ft; Sept. 1, 5; and 1960—Aug. 23, 4i/2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1134 INTEREST RATES AUGUST 1965 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 Finance Prime CO. Prime coml. paper bankers' Federal 3-month bills 5 6-month bills 5 9- to 12-month issues Period 4 p - a t p o e e r - , d p ir l e a c ce tl d y, a a c n c c e e p s t , - r fu at n e d s 3 3- to 5months * m 3 o - n to th 6 s - 2 90 days * on R a n t e e w M y a ie r l k d et on R a n t e e w M y a ie r l k d et (m B a i r ll k s et Other 6 iss y u e e a s r 7 issue issue yield) 5 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 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1964 July 3 96 3.81 3.75 3.42 3.479 3.46 3.566 3.56 3.64 3.68 3.99 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 Mar 4.38 4.25 4.15 4.04 3.942 3.93 4.003 4.00 4.02 4.03 4.12 Apr 4.38 4.25 4.19 4.09 3.932 3.93 3.992 3.99 4.00 4.00 4.12 May 4.38 4.25 4.25 4.10 3.895 3.89 3.950 3.95 3.96 3.99 4.11 4.38 4.25 4.25 4.04 3.810 3.80 3.872 3.86 3.89 3.98 4.09 July 4.38 4.25 4.22 4.09 3.831 3.83 3.887 3.89 3.89 3.96 4.10 Week ending— 1965 July 3.. 4.38 4.25 4.25 4.13 3.784 3.81 3.824 3.85 3.86 3.95 4.08 10 4.38 4.25 4.25 4.13 3.853 3.86 3.890 3.90 3.91 3.96 4.09 17 4.38 4.25 4.25 4.09 3.883 3.86 3.933 3.92 3.91 3.95 4.10 24 4.38 4.25 4.25 4 04 3.833 3.82 3.913 3.89 3.87 3.95 4.11 31 4.38 4.25 4.13 4.09 3.803 3.81 3.873 3.88 3.87 3.97 4.12 1 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- 6 Certificates of indebtedness and selected note and bond issues. ties in the 90-179 day range. i Selected note and bond issues. 3 Seven-day average for week ending Wed. 4 Except for new bill issues, yields are averages computed from daily closing bid prices. BOND AND STOCK YIELDS (Per cent per annum) Government bondsi Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United Mid loca rating group price ratio price ratio ( S l t o a n te g s - Total i term) Total i Aaa Baa Aaa Baa In tr d i u al s- R ro a a i d l- P u u ti b li l t i y c fe P r r r e e - d C m o o m n - C m o o m n - 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 5.54 1964 July 4.13 3.26 3.08 3.54 4.58 4.40 4.83 4.52 4.68 4.54 4.27 2.96 4.14 3.27 3.08 3.54 4.57 4.41 4.82 4.52 4.65 4.54 4.29 3.03 Sent 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 5.36 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 Mar 4.15 3.28 3.09 3.51 4.56 4.42 4.78 4.52 4.63 4.51 4.26 2.99 5.69 Apr 4.15 3.28 3.09 3.51 4.56 4.43 4.80 4.54 4.64 4.51 4.28 2.95 May 4.14 3.28 3.09 3.51 4.57 4.44 4.81 4.55 4.64 4.53 4.30 2.92 June . 4 14 3 32 3.15 3 54 4.60 4.46 4 85 4 59 4 66 4 56 4 38 3 07 July 4.15 3.34 3.16 3.56 4.64 4.48 4.88 4.62 4.71 4.58 4.38 3.09 Week ending— 1965 July 3 4.14 3.35 3.17 3.57 4.62 4.46 4.87 4.60 4.68 4.57 4.41 3.11 10 4.14 3.35 3.17 3.57 4.63 4.47 4.87 4 61 4 71 4 57 4 41 3 09 17 4 15 3 33 3 16 3 55 4 63 4 48 4 87 4 61 4 71 4 57 4 39 3 05 24 4.14 3.33 3.16 3.55 4.64 4.48 4.88 4.62 4.72 4.58 4.36 3.11 31 4.15 3.33 3.16 3.55 4.64 4.48 4.88 4.62 4.72 4.58 4.36 3.11 6-12 20 5 5 120 30 30 40 40 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep- Thurs. figures. Corp. bonds: Averages of daily figures. Both of these arately. Because of a limited number of suitable issues, the number series are 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. State and local govt. bonds: General obligations only, based on adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 SECURITY MARKETS 1135 MORTGAGES: NEW HOMES SECURITY PRICES FHA- Conventional first mortgages Common stock prices insured Bond prices (1941-43= 10) u V m ol e - M Inter- Loan/ of Period Y c ( e p ie n e l t r d ) c r ( e e p a s n t e t e t r ) F c ( e e e p t n e c e . t s r ) , ( M t y i u t r a y r s - - .) p c r ( a e r p i t n e c i t o r e ) d ( A o l t o h l v l a o a g n u r . s . ] Period ( G t U l 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 i s a - - l R ro a a i d l- P u i l u t t i i y b c 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 r112.1 96.2 62.38 65.54 30.56 59.16 '3,818 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—July.. 84.70 112.1 95.2 83.22 88.19 48.93 70.35 4,663 Aug... 84.59 111.8 95.3 82.00 86.70 47.17 71.17 3,919 1964—June.. 5.45 5.76 .59 25.4 74.3 17.3 Sept... 84.31 111.0 95.1 83.41 88.27 47.14 72.07 5,228 July.. 5.46 5.76 .52 24.5 73.9 17.4 Oct... 84.37 110.9 95.1 84.85 89.75 48.69 73.37 4,843 Aug... 5.46 5.77 .58 24.7 74.4 17.8 Nov... 84.81 112.0 95.2 85.44 90.36 48.01 74.39 4,928 Sept... 5.46 5.77 .57 25.0 74.2 17.6 Dec.. 84.65 112.6 95.3 83.96 88.71 45.75 74.24 4,729 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... 84.40 113.3 95.5 86.75 91.64 46.76 77.04 5,910 Mar... 84.48 112.0 95.2 86.83 91.75 46.98 76.92 5,427 1965—Jan... 5.45 5.79 .59 24.7 74.0 17.5 Apr... 84.53 112.2 95.0 87.97 93.08 46.63 77.24 5,673 Feb... 5.45 5.79 .61 24.9 74.0 17.6 May.. 84.58 111.9 94.7 89.28 94.69 45.53 77.50 5,510 Mar... 5.45 5.72 .49 24.9 73.7 18.5 June.. 84.57 110.8 94.3 85.04 90.19 42.52 74.19 5,828 Apr... 5.45 5.74 .51 24.9 73.7 18.1 July.. 84.51 110.8 94.0 84.91 89.92 43.31 74.63 4,056 May.. 5.45 5.77 .53 24.9 74.4 18.2 June.. 5.44 5.76 .49 24.6 73.9 17.5 Week July.. 5.44 Ending— July 3 84.62 110.0 94.2 83.55 88.54 42.35 73.25 6,764 1 Last 6 months only. 10 84.54 110.0 94.1 85.19 90.22 43.21 75.01 3,906 17 84.50 110.8 93.9 85.71 90.77 43.51 75.45 3,805 NOTE.—Annual data are averages of monthly figures. Yields 24 84.55 111.1 94.0 84.43 89.40 42.85 74.45 3,824 on FHA-insured mortgages are derived from weighted averages 31..... 84.46 111.1 93.8 84.38 89.37 43.76 73.87 4,527 of FHA field-office opinions on private secondary market prices for Sec. 203, 30-year mortgages, with the minimum down payment, a maximum permissible interest rate of 5V4 per cent, and NOTE.—Annual data are averages of monthly figures. Monthly and weekly an assumed prepayment period of 15 years. Price data are data are averages of daily figures unless otherwise noted and are computed as reported as of the first of the succeeding month. follows: U.S. Govt. bonds, derived from average market yields in preceding table Conventional first mortgages, Home Loan Bank Board in on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, cooperation with Federal Deposit Insurance Corporation be- derived from average yields as computed by Standard and Poor's Corp., on basis ginning in late 1962; interest rate data for earlier years—in of a 4 per cent, 20-year bond; Wed. closing prices. Common stocks, Standard parentheses—are based on estimates from Federal Housing and Poor's index. Volume of trading, average daily trading in stocks on the Administration. N.Y. Stock Exchange for a 5 l/i-hour trading day. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans to other than N. Y. Stock Exchange brokers and dealers for pur- Money borrowed on— Cus- Months Total firms secured by— chasing or carrying— 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 C co u l s l t a o te m r e a r l co O ll t a h t e e r ral a c n b re a c d l e - i s t 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—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 3,748 3,259 489 1,254 Mar 6,941 30 5,055 129 1,886 106 3,894 3,303 591 1,264 Apr 7,001 30 5,066 67 1,935 213 3,853 3,326 527 1,207 May.... 7,085 26 5,129 75 1,956 157 4,030 3,397 633 1,208 June.... 7,084 26 5,114 73 1,970 225 4,211 3,396 815 1,297 July 6,833 24 4,863 69 1,970 82 3,594 3,099 495 1,233 NOTE.—Data in first 3 cols, and last col. are for end of month; in other ners of reporting firm. Balances are net for each customer—i.e., all accols, for last Wed. counts of one customer are consolidated. Money borrowed includes Net debit balances and broker and dealer credit: Ledger balances of borrowings from banks and from other lenders except member firms of member firms of N.Y. Stock Exchange carrying margin accounts, as national securities exchanges. 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. securities exchanges and balances of reporting firm and of general part- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1136 OPEN MARKET PAPER; SAVINGS INSTITUTIONS AUGUST 1965 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Held by- Based on— End of period Accepting banks F.R. Goods stored in or Placed Placed Total Banks p I o m r - ts p E o x r - ts Dollar ship p p o e i d n t b s e in tw — een Total through direct- Others into from exdealers 1 ly2 Total O bi w ll n s bo B u il g ls ht O ac w c n t. c F e o i o g r r n r - . U S n ta i t t e e s d U S n ta i t t e e s d change U S n ta i t t e e s d c F o o u r n e t i r g ie n s 1957 2,672 551 2,121 1,307 287 194 94 66 76 878 278 456 46 296 232 1958 32,751 840 31,911 1,194 302 238 64 49 68 775 254 349 83 244 263 1959 3,202 677 2,525 1,151 319 282 36 75 82 675 357 309 74 162 249 I960. 4,497 1,358 3,139 2,027 662 490 173 74 230 ,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 ,345 567 908 56 41 1.317 1964—June 8,036 1,948 6,088 3,149 1,370 1,113 257 83 146 ,550 567 929 82 27 ,545 July 8,879 2,006 6,873 3,137 1,455 1,121 334 56 137 ,489 576 949 74 24 1,513 8,879 2,070 6,809 3,127 1,486 1,145 341 36 132 ,473 586 922 82 22 1,514 Sept 8,444 2,220 6,224 3,175 1,423 1,127 297 99 127 ,525 609 918 113 36 1,499 Oct 9,343 2,431 6,912 3,222 1,400 1,164 236 81 126 1,614 647 935 106 34 1,500 Nov 9,146 2,438 6,708 3,217 1,458 1,195 263 63 125 ,570 657 955 102 40 1,463 Dec 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 111 43 1,565 1965—Jan 8,928 2,143 6,785 3,276 1,535 1,308 227 115 122 1,504 662 956 79 34 ,545 Feb 9,033 2,239 6,794 3,232 1,439 1,247 193 71 118 1,604 660 916 59 26 1,571 Mar 9,077 2,070 7,007 3,325 1,297 1,138 159 143 134 1,751 725 924 31 22 1,622 9,533 2,047 7,486 3,384 1,394 1,171 223 104 139 1,747 744 936 25 21 1,659 May r9,934 rl,976 7,958 3,467 1,452 1,187 264 82 160 [,774 761 965 23 21 1,698 June r9,370 1,965 7,405 3,355 1,443 1,127 316 53 157 ,702 736 960 13 18 1,627 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— End of period Mort- Other G U o .S v . t. S l a o t n c a d a te l C r o a a n r t p d e o- a C s a se s t h s O as t s h e e ts r s l T u ia a t r o i b n p e t i d l s a l u i l - s D i e t p s o 2 s- l O ia t t i b h e i s e li r - S c u o a r u c p n - l t u s s c M om or m tg i a tm ge e n lo ts a n 3 govt. other 1 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 4 24,769 358 6,871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 1,170 1960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 61,855 1,654 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 44,606 943 4,153 104,326 2,549 1964—May 37,601 714 6,052 419 5,150 847 827 51,610 46,124 ,225 4,261 124,416 2,661 June 37,971 676 6,024 409 5,145 906 871 52,001 46,624 ,102 4,275 132,625 2,690 July 38,407 705 6,025 409 5,142 863 867 52,417 46,918 ,222 4,277 132,726 2,701 Aug 38,764 764 6,095 407 5,179 895 879 52,983 47,274 ,356 4,352 134,371 2,743 Sept 39,146 739 6,082 409 5,193 883 887 53,339 47,757 ,200 C4,383 134,277 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 ,223 4,414 136,470 2,811 Dec 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 135,992 2,820 1965—Jan 40,640 800 5,907 388 5,105 977 895 54,713 49,222 ,085 4,405 132,992 2,745 Feb 40,924 786 6,016 383 5,123 992 909 55,133 49,444 ,214 4,476 138,062 2,838 Mar 41,265 820 6,054 381 5,144 1,007 931 55,602 49,989 ,108 4,505 138,853 2,873 Apr 41,563 798 5,857 379 5,183 944 928 55,652 49,978 ,216 4,459 141,959 2,930 May 41,853 882 5,841 367 5,188 968 913 56,013 50,166 ,334 4,512 142,676 3,025 1 Also includes securities of foreign governments and international NOTE.—National Assn. of Mutual Savings Banks data; figures are organizations and nonguaranteed issues of U.S. Govt. agencies. estimates for all savings banks in the United States and differ somewhat 2 See note 3, p. 841. from those shown elsewhere in the BULLETIN; the latter are for call dates 3 Commitments outstanding of banks in N.Y. State as reported to the and are based on reports filed with U.S. Govt. and State bank supervisory Savings Banks Assn. of the State of N.Y. agencies. Loans are shown net of valuation reserves. 4 Data reflect consolidation of a large mutual savings bank with a commercial bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 SAVINGS INSTITUTIONS 1137 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort- Real Policy Other End of period assets Total U S n ta i t t e e s d Sta lo te c a a l ndForeign * Total Bonds Stocks gages estate loans assets Statement value: 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,784 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,534 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 I960 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,684 1962 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4 107 6 234 6,025 1963 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4.319 6,655 6,383 1964 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 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 Mayr 144,321 12,514 5,802 3 826 2,886 60,710 54,790 5,920 52,187 4 381 6 866 7 663 144,964 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 1965 Jan 150,392 12,518 5,724 3 821 2,973 62,484 56,024 6,460 55,626 4 534 7 162 8 068 Feb 151,028 12,549 5,761 3,797 2,991 62,704 56,183 6,521 55,941 4,543 7,201 8 090 Mar 151,663 12,337 5,557 3,787 2,993 63,008 56,399 6,609 56,343 4,568 7,258 8,149 Apr 152,266 12,312 5,521 3,767 3,024 63,156 56,535 6,621 56,687 4 570 7 314 8 227 May 152,918 12,268 5,490 3,754 3,024 63,525 56.851 6,674 56,997 4,580 7,359 8,189 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item separately but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E pe n r d i o o d f M ga o g r e t s - s G U ec o . u S v r . t i . - Cash Other 1 a li s a T s b e o i t l s t i a t 2 i l e — s S c a a v p i i n ta g l s u R n e d a s i e n v r d i v d e e s d B m o o rr n o e w y e « 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 3 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 1,379 1 484 862 1958 45,627 3,819 2,585 3,108 55,139 47,976 3,845 1,444 1,161 713 1,475 1959 53,141 4,477 2,183 3,729 63,530 54,583 4,393 2,387 1,293 874 1,285 I960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,230 1963 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,614 1964—May 95,071 6,715 3,518 6,750 112,054 94,931 7,244 4,548 2,511 2,820 3,149 June 96,168 6,688 3,813 6,736 113,405 96,695 7,509 4,984 2,546 1,670 3,108 July 97,211 6,690 3,364 6,537 113,802 96,712 7,528 4,995 2,567 2,000 3,075 Aug 98,159 6,739 3,378 6,651 114,927 97,485 7,548 4,996 2,495 2,403 2,983 SeDt..... 98,995 6,781 3,411 6,757 115,944 98,558 7,552 5,069 2,396 2,369 2,912 Oct 99,832 6,823 3,434 6,828 116,917 99,309 7,564 5,033 2,314 2,697 2,897 Nov 100,519 6,965 3,520 7,054 118,058 100,168 7,580 5,003 2,244 3,063 2,822 Dec 101,314 6,973 4,025 6,983 119,295 101,847 7,903 5,596 2,221 1,728 2,589 1965 Jan 101 844 7 098 3,593 6,827 119,362 102,101 8 014 5 146 2 113 1 988 2 642 Feb 102,351 7,305 3,609 6,964 120,229 102,680 8,029 5,040 2,085 2,395 2,843 Mar ... 103,151 7,386 3,558 7,139 121.234 103,735 8,000 4,938 2,182 2,379 3,124 Apr.r. . . . 103,975 7,356 3,398 7,293 122,022 103,642 8,017 5,456 2,281 2,626 3,281 May 104,805 7,401 3,430 7,694 123,330 104,422 8,033 5,464 2,370 3,041 3,379 1 Includes other loans, stock in the Federal home loan barks, other centrated in state-chartered savings and loan assns. in Calif, where the investments, real estate owned and sold on contract, and office buildings accounting system is being revised. and fixtures. 4 Consists of advances from FHLB and other borrowing. 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 The decline in reserves and surplus from Feb. to Mar. 1964 is con- even when revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1138 FEDERAL FINANCE AUGUST 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 rects. Bu n d e g t et f T P u r l n u u d s s s t : g I L n o e t v r s t a s . - : 1 E r T e q c o u t t a s a l . l s 2 : Budget fu T P n r lu d u s s s : t 3 A m L d e e j n u s t s s s t : 4 - E p T q a o u y t a t a s l l . s: payts. C (d d h i i e a r n b n e t c g t e a I g n L e v e n e s . s s & t : . N L c d a e e o s s b n h s t - : Eq N u e a t ls: & agen.) trusts 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 28,396 5,069 120,270 -5,235 9,084 2,685 619 5,779 Fiscal year—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 1965^. 93,044 31,055 4,302 119,685 96,518 29,627 3,776 122,369 -2,684 6,933 2,362 267 4,304 Half year: 1963—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 14,323 904 61,510 -10,158 6,486 -493 234 6,744 1965—Jan.-June? 53,541 17,240 2,376 68,333 48,426 15,304 2,872 60,859 7,474 447 2,855 33 -2,440 Month: 1964—June 12,401 3,117 1,136 14,376 9,527 2,523 '1,692 10,358 '4,019 683 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 2,602 -611 11,296 -744 3,284 1,882 67 1,335 Sept 10,072 1,994 320 11,739 8,450 1,966 1,016 9,400 2,339 1,412 49 82 1,281 Oct 3,398 1,224 271 4,344 8,329 2,286 298 10,317 -5,973 93 -1,360 16 1,437 Nov 7,037 2,928 240 9,716 7,051 2,191 -156 9,398 318 2,976 691 153 2,132 Dec 8,856 1,966 557 10,256 8,770 2,565 453 10,882 -626 -685 -550 -122 -13 1965—Jan 5,642 1,016 262 6,387 7,676 2,207 774 9,109 -2,722 -240 -1,537 110 1,187 Feb 7,518 3,746 27 11,227 7,146 2,183 -277 9,606 1,621 1,884 1,353 60 471 Mar 11,188 2,175 285 13,065 8,139 2,064 637 9,566 3,499 -1,859 292 -43 -2,108 Apr 8,549 2,201 244 10,492 8,268 2,949 741 10,476 16 -891 -1,471 57 523 May 7,268 4,885 284 11,857 8,116 2,323 -128 10,567 1,290 3,119 3,597 -151 -327 J 13.377 3,217 1,274 15,306 9,081 3,579 1,125 11,535 3,771 -1.566 621 -2,187 Effects of operations on Treasurer's account Net operating transactions Net financing transactions ca C sh h a b n a g l e a n i c n es Trea (e s n u d re o r' f s p a e c r c i o o u d n ) t Period Agencies & trusts Change Operating bal. s B d u u e r o f d p i r c g lu i e t s t f T un ru ds s t 3 a C c l c e o a u ri n n t g s i M ssu ar a k n e c t e i I n n v U e . s t S . . 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 u d d r e y a T u cc r r e e o a r u ' s s n - t Balance F. R. 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 . t 3 . debt banks a l c o c a t n s. Fiscal year—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 1965^. -3,474 1,428 -793 1,372 -2,362 5,561 158 1,575 12,610 672 10,689 1,249 Half year: 1963—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 -507 -1,256 258 493 6,228 367 -3,741 7,295 820 5,377 1,098 1965—Jan.-June*\ 5,115 1,935 463 1,114 -2,855 -667 -209 5,316 12,610 672 10,689 1,249 Month: 1964—June 2,874 594 502 -1,770 181 r154 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 1,570 -946 378 -1,882 2,906 -43 640 6,789 939 5,085 765 Sept 1,622 28 613 -108 -49 1,520 226 3,400 10,189 933 8,339 917 Oct -4,930 -1,062 11 67 1,360 26 -30 -4,498 5,691 687 4,155 849 Nov -15 737 -549 125 -691 2,851 46 2,412 8,104 974 6,182 948 Dec 86 -599 17 -139 550 -546 178 -809 7,295 820 5,377 1,098 1965—Jan -2,033 -1,191 402 -282 1,537 42 25 -1,550 5,745 914 3,612 1,219 Feb 372 1,563 -364 -16 -1,353 1,900 -95 2,197 7,942 988 5,800 1,154 Mar 3,049 no 396 327 -292 -2,186 116 1,289 9,231 867 7,271 1,093 Apr 280 -748 439 249 1,471 -1,140 447 105 9,336 944 6.934 1,458 May -848 2,562 -261 458 - 3.597 2.661 -504 1.480 10,816 875 8,822 1,119 June*3 4,296 -362 -150 | 378 -621 -1,944 -197 1 ,795 12,610 672 10,689 1,249 1 Primarily interest payments by Treasury to trust accounts and accumu- 6 Yearly totals for fiscal 1961-64 and all fiscal year 1965 figures reflect lations to U.S. employee trust funds. a shift of the Food for Peace program from agriculture to international 2 Includes small adjustments not shown separately. affairs. Other half-yearly totals and the months before July 1964 have 3 Includes net transactions of Govt.-sponsored enterprises. not been adjusted for this reclassification. * Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing accounts. NOTE.—Based on Treasury Dept. and Bureau of the Budget data. 5 Includes technical adjustments not allocated by functions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 FEDERAL FINANCE 1139 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Total W I i n th d - ividual 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. E a g s n t if a d t te t C o u m s- s r m e I a p e n n a n t d . y ts - fu R n e d - s Other held Other Fiscal year—1962... 101,865 36,246 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 38,719 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 1965*\. 119,685 36,83016,820 26,130 14,798 3,782 22,140 17,833 3,816 2,744 1,478 2,094 6,028 2,679 Half year: 1963—July-Dec. 51,847 20,120 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. 63,683 19,13911,866 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 17.732 3,598 9.989 7.398 3,089 1,947 9,378 7.535 1,594 1,170 729 900 1,008 1.466 1964—Jan.-June», 68,334 19,09813,223 16,142 7,400 n.a. 1,786 12,759 10,297 2,221 1,574 749 1,193 5,021 1,217 Month: 1964—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 1,257 555 280 885 778 65 192 125 152 90 383 1965—Jan 6,387 1,181 2,506 607 1,045 384 296 508 305 161 183 76 155 107 233 Feb 11,227 5,302 872 473 1,214 360 340 3,369 2,537 797 213 106 173 653 158 Mar 13,065 3,207 928 6,759 1,303 573 286 1,580 1,453 81 308 155 249 1,582 158 Apr 10,492 1,091 5,852 1,187 1,150 461 271 1,570 1,309 221 370 139 214 1,286 205 May 11,857 5.371 696 520 1,325 489 296 4,211 3,285 888 283 128 205 1,071 189 June*7.... 15,306 2.946 2,369 6.596 1,363 n.a. 347 1.521 1,408 73 217 145 197 322 274 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 f n ai 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- e6 so N u u r r e a r a - c t l - es t m C ra a o e n n r m d s c p e - . & H d e i o c n v u o g e s m l - . . l H w ab e el a o f l r a t r h & e , Ed ti u o c n a- e V ra e n t- s In e t s e t r- G G e o r e a v n l t - . Fiscal year—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 1965P.... 122,369 50,767 4,622 5,094 5,413 2,723 7,420 862 28,285 1,493 6,087 8,684 2,348 Half year: 1963—July-Dec 61,572 26,359 1,031 1,857 4,302 1,455 3,657 1,850 13,162 563 2,956 3,481 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 61,510 24,569 1,818 2.333 3,642 1,543 4,288 516 13,722 639 2,943 4,258 1,138 1965—Jan.-JuneP... 60,859 26,198 2,804 2,761 1,777 1,176 3,133 344 14,560 851 3,143 4,426 1,209 Month: 1964—June. '10,358 5,765 253 504 325 248 694 181 2,513 112 537 348 223 July.. 10,217 3,592 210 334 672 235 702 246 2,277 78 485 360 184 Aug.. 11,296 3,869 336 385 1,049 287 740 16 2,249 129 501 1,378 183 Sept.. 9,400 4,243 324 386 491 293 759 35 2,229 126 525 317 189 Oct... 10,317 4,301 448 387 694 244 779 -48 2,261 94 505 436 200 Nov.. 9,398 4,052 -53 406 220 229 657 -193 2,299 90 398 1,337 164 Dec. 10,882 4,512 562 435 516 255 651 460 2,407 122 529 430 218 1965—Jan.... 9,109 4,018 439 407 210 164 539 -176 2,422 118 658 315 202 Feb.... 9,606 3,885 311 423 288 166 465 -126 2,423 122 497 1,353 172 Mar... 9,566 4,583 86 461 386 203 472 -99 2,319 146 501 446 197 Apr... 10,476 4,384 609 529 370 185 449 562 2,448 142 488 450 195 May. . 10,567 4,282 734 433 163 179 489 65 2,439 141 486 1,326 219 Juried. 11,535 5.046 625 508 360 279 719 118 2,509 182 513 536 224 1963 1964 1965 1963 1964 1965 Item III IV II III IV III IV III IV Seasonally adjusted Not seasonally adjusted Cash budget: Receipts 28.5 29.0 29.5 28.6 28.2 28.7 29.8 32.3 27.3 24.5 30.3 33.4 27.0 24.3 30.7 37.7 Payments.... 30.2 29.9 30.5 29.7 30.2 29.8 30.1 32.3 31.0 30.6 28.7 30.1 30.9 30.6 28.3 32.6 Net. -1.7 -.9 -1.1 -1.1 -2.0 .1 -.3 -3.6 -6. 1.6 3.3 -3.9 -6.3 2.4 5.1 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1140 U.S. GOVERNMENT SECURITIES AUGUST 1965 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues 3 Total End of period d T g e r o b o t t s a s l i d d g e i r r b o e t s c s 2 t Total Marketable C ve o r n t- - Nonmarketable i S s p su e e c s ia 6 l Total Bills C c e a r t t e if s i- Notes Bonds 4 b i o b n le ds Total 5 S in a g v s 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 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 Mar 318.4 317.7 267.7 212.5 56.5 55.5 100.5 2.9 52.2 49.9 45.7 Apr 317.2 316.6 267.8 212.5 56.9 55 1 100.5 2.9 52 5 50.0 44.4 May 319.8 319.2 266.3 211.0 55.9 52.5 102.5 2.9 52.5 50.0 47.8 June . . . . 317.9 317.3 264.5 208.7 53.7 52.5 102.5 2.9 52.9 50.0 48.6 July 317.1 316.5 264.4 208.7 53.7 52.5 102.5 2.9 52.9 50.1 47.8 1 Includes noninterest-bearing debt (of which $283 million, on July 31, 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 $14,725 million on June 30, 1965. 4 Includes Treasury bonds and minor amounts of Panama Canal and NOTE.—Based on Daily Statement of U.S. Treasury. postal savings bonds. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E pe n r d i o o d f T g d r o e o t b s a t s l ag G U t e a r o . n n u v c d S s t i t . . es 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 d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a r i e t n o e i d n g r n - al2 O i t m n o t v i r h s s e e c s 3 r . funds 1 bonds securities 1941 Dec 64 3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 7 5.4 8.2 4 5 1945—Dec 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947 Dec 257.0 34.4 22.6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 1957 Dec 275.0 55.2 24.2 195.5 59.5 7.6 12.5 17.7 16.6 48.2 16.7 7.6 9.0 1958 Dec 283 0 54 4 26.3 202.3 67.5 7.3 12.7 18.1 16 5 47.7 16 0 7 7 8 9 1959—Dec 290 9 53.7 26.6 210.6 60.3 6.9 12.5 r21.4 18.0 45.9 r23.5 12.0 10 1 1960—Dec 290.4 55.1 27.4 207.9 62.1 6.3 11.9 r18.7 18.7 45.7 '20.5 13.0 11.2 1961 Dec 296 5 54.5 28.9 213.1 67.2 6.1 11.4 r18 5 19 0 46.4 19.5 13 4 11 6 1962—Dec 304 0 55.6 30.8 217.6 67.2 6.1 11.5 r18.6 20.1 46.9 19.2 15.3 12 7 1963—Dec 310.1 58.0 33.6 218.5 64.3 5.8 11.3 r18.7 21.1 48.1 r20.1 15.9 13.3 1964—June 312.5 61.1 34.8 216.6 60.2 6.0 10.9 r18.5 22.5 48.5 r20.7 15.6 13.7 July 312 0 59.9 35.1 217.0 59.3 6.0 10.9 19 0 r22 2 48.6 r20.9 15 8 14 4 Aug 314.9 61.8 35.2 218.0 r60.1 6.0 11.0 r19.0 22 6 48.6 r20.4 16.0 14 3 Sept 316.5 61.8 35.4 219.3 '61.9 6.0 11.2 r17.7 r22.1 48.7 r20.9 16.3 14.6 Oct 316 5 60.5 35.7 220.2 r62.2 5.8 11.2 18 7 r21 9 48.8 r2\ 0 16 3 14 4 Nov 319.3 61.2 36.8 221.4 r63.6 5.7 11.2 r18.5 r21 6 48.9 r20.8 16.4 14 6 Dec 318.7 60.6 37.0 221.1 '"64.0 5.7 11.1 r17.9 r21.1 48.9 r21.2 16.7 14.5 1965—Jan 318.6 59.1 36.7 222.8 '62.8 5.8 11.3 r18.6 r22.0 49.0 *"21.8 16.5 15.0 Feb 320.6 60.4 36.9 223.3 r6l.6 5.9 11.2 r19.0 r22.7 49.1 r22.2 16.6 14.8 Mar 318.4 60.7 37.6 220.2 r60.3 6.0 11.1 17.2 r22.8 49.2 r22.8 16.0 14.8 Apr , 317 2 59.2 37.8 220.3 r59.5 5.8 11.0 r17 3 24 0 49.2 r22 2 16 0 15 3 May 319.8 62.7 38.7 218.5 r58.1 5.8 10.9 r18.1 r24 0 49.2 r22.2 14.4 15 8 June 317.9 63.4 39.1 215.4 57.9 5.8 10.6 15.9 23.7 49.2 22.0 15.5 14.8 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

AUGUST 1965 U.S. GOVERNMENT SECURITIES 1141 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r rs Total Bills Other All holders: 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—May 31 210,954 89,901 55,928 33,973 56,178 39,172 8,450 17,253 June 30 208,695 87,637 53,665 33,972 56,198 39,169 8,450 17,241 U.S. Govt. agencies and trust funds: 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—May 31 12,488 1,379 1,117 262 2,293 3,501 2,051 3,264 June 30 12,374 1,315 1.045 270 2,276 3,506 2,053 3,224 Federal Reserve Banks: 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 88 131 1964—Dec. 31 37,044 21,388 6,487 14,901 13,564 1,797 58 237 1965—May 31 38,586 26,854 7,721 19,133 9,963 1,424 137 208 June 30 39,100 27,100 7,949 19,151 10,140 1,489 146 225 Held by public: 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—May 31 159,880 61,668 47,090 14,578 43,922 34,247 6,262 13,781 June 30 157,221 59,222 44,671 14,551 43,782 34,174 6,251 13.792 Commercial banks: 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—May 31 48,471 13,886 6,900 6,986 20,697 12,873 316 699 June 30 48,483 13,945 7,058 6,887 20,672 12,827 334 705 Mutual savings banks: 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—May 31 5,540 756 543 213 1,401 1,819 329 1,235 June 30 5,527 766 568 198 1,384 1,814 332 1,231 Insurance companies: 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—May 31 9,092 779 448 331 2,046 2,410 1,119 2,738 June 30 8,854 662 347 315 1,990 2,384 1,118 2,699 Nonfinancial corporations: 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—May 31 9,438 7,072 813 1,259 1,923 296 53 94 June 30 7,701 5,482 270 1,212 1,845 249 53 73 Savings and loan associations: 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—May 31 3,665 494 372 122 947 1,510 245 468 June 30 3,581 432 314 118 950 1,492 247 461 State and local governments: 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—May 31 17,337 7,042 6,068 974 1,873 1,954 2,039 4,427 June 30 16,953 6,657 5,691 966 1,890 1,962 2,019 4,426 All others: 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—May 31 66,337 31,639 26,946 4,693 15,033 13,385 2,160 4,119 June 30 66,122 31.279 26,422 4,857 15,051 13,446 2,148 4,198 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 778 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 5,978 commercial banks, 501 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1142 U.S. GOVERNMENT SECURITIES AUGUST 1965 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. agency Period 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 C b e a o r n c m k ia - s l o A th l e l r Govt. Other securities 1964—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 ,036 637 93 Feb 1,814 1,434 219 91 69 516 29 750 518 101 Mar 1,690 1,369 184 83 53 523 24 672 471 108 Apr 1,769 1,467 172 91 38 562 38 708 460 155 May 1,670 1,379 151 108 32 448 33 698 491 143 June 1,786 1,453 200 103 31 584 45 696 462 204 Week ending— 1965—June 2 1,880 1,576 142 117 45 532 | 37 727 584 115 9 1,706 1,481 132 77 16 627 39 607 433 211 16 1,619 1,288 213 82 35 507 50 592 469 204 23 1,944 1,523 254 138 29 682 52 756 453 237 30 1,766 1,382 228 115 41 504 42 778 442 163 July 7 1.689 1,472 103 28 467 47 660 515 120 14 1,342 1,109 121 81 32 359 30 572 382 188 21 1,539 1,307 117 91 24 530 40 602 367 156 28 1,291 1,088 101 75 27 409 27 502 353 152 NOTE.—The transactions data combined 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, bymaturity U.S. Commercial banks Period mat A ur l i l ties W 1 i y th e i a n r y 1 e - a 5 rs 5 O y v e e a r rs se a G c g u e o r n v i c t t i y . es Period so A ur l c l es Y N C o e it r w y k w E h ls e e r - e C t o io rp n o s r 1 a- o A th l e l r 1964—June 3,475 3,217 91 167 318 July 3,817 3.121 229 468 225 1964 June 3.541 981 761 1.493 307 Aug 4,313 2,978 552 782 275 July 4,156 1,250 871 ,671 364 Sept 3,954 3,302 373 280 250 Aug 4,186 1,144 924 ,703 416 Oct 3,358 2,966 231 160 262 Sept 4.011 1.255 1,069 ,253 434 Nov 3,692 3,073 479 140 313 Oct 3,299 845 835 ,258 361 Dec 3,252 2,675 419 159 282 Nov 3.706 1,020 963 ,192 531 Dec 3.399 1,029 781 ,056 533 1965—Jan 3,812 2,882 196 734 246 Feb 3,420 2,688 163 569 237 1965 Jan 4,354 1.323 1,229 ,206 596 Mar 3,034 2,590 112 332 268 Feb 3.495 856 902 ,278 459 Apr 3,471 3,118 115 238 327 Mar 3.181 626 807 ,350 398 May 3,398 2,508 149 741 378 Apr 3.594 918 885 ,369 422 June 3,651 2,838 115 697 509 May 3,635 765 828 ,327 716 June 4.094 1.251 776 ,457 609 Week ending— Week ending— 1965—May 5 . . 3,499 3,147 88 264 349 3,303 2,219 220 865 376 1965—May 5... 3,839 864 1,087 ,227 662 19! '. 3,464 2,448 188 829 366 12. .. 3,776 604 844 1,316 1,013 26.. 3,406 2,523 109 775 398 19. .. 3,907 907 949 1,369 682 26... 3,679 808 762 1,509 600 June 2.. 3,609 2,826 73 710 426 9. . 3,466 2,707 68 692 495 June 2... 3 611 886 644 1,436 645 16. . 3,665 2,856 101 708 518 9. .. 3.793 815 593 1,619 766 23.. 3,517 2,654 149 714 538 16. .. 4.107 1,425 716 1,326 640 30. . 3,915 3.076 161 679 513 23. .. 4.078 1.408 881 1,377 411 30... 3.957 1,320 846 1,305 486 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the 1 All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than note 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

AUGUST 1965 OUTSTANDING SECURITIES 1143 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, JULY 31, 1965 (In millions of dollars) Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. July 31, 1965. 000 Jan. 6,1966 ,001 Aug. 15, 1967 334 270 Oct. 1,1969 4 6,261 Aug. 5, 1965. 204 Jan. 13, 1966 ,001 Oct. 1,1967 IV2 2,929 Feb. 15, 1970 4 4,381 Aug. 12, 1965. 202 Jan. 20,1966 ,005 Apr. 1, 1968... 457 Aug. 15, 1970 4 4,129 Aug. 19, 1965. 201 Jan. 27, 1966 ,001 Oct. 1, 1968... 212 Aug. 15, 1971 4 2,806 Aug. 26, 1965. 203 Jan. 31, 1966 ,000 Apr. 1, 1969... •Wi 115 Nov. 15, 1971 3% 2,760 Aug. 31, 1965. 000 Feb. 28, 1966 ,001 Oct. 1, 1969... 61 Feb. 15, 1972 4 2,344 Sept. 2, 1965. 203 Mar. 31, 1966 ,000 Apr. 1, 1970... .1*4 159 Aug. 15, 1972 4 2,579 Sept. 9, 1965, 201 Apr. 30, 1966 ,001 32 Aug. 15, 1973 4 3,894 S S S e e e p p p t t t . . . 2 3 1 3 0 6 , , , 1 1 9 1 9 6 9 6 5 6 5 5 , , , , , 2 2 2 0 0 0 3 3 6 J M u a n y e 3 3 0 1 , , 1 1 9 9 6 6 6 6 , , 0 0 0 0 1 1 Tr J e u as n u e r y 1 5 b , o n 1 d 9 s 62-67... 21 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 3 4 4 4 A i i V / / 8 8 A 4 3 3 , , , 3 1 5 5 3 9 7 0 4 O Oc c t t . . 1 7 4 , , 1 1 9 9 6 6 5 5 , , ,2 2 0 0 3 3 Treasury notes D Ju e n c e . 1 1 5 5 , , 1 1 9 9 6 6 3 4 - - 6 6 8 9 . . . . . . 2 2 1 1 2 1 , ,7 5 9 8 2 0 N M o a v y . 1 1 5 5 , , 1 1 9 9 7 7 4 5 -85... A 3 V 7/ A 8 2 1 , ,2 2 1 4 8 4 Oct. 21, 1965 ,203 Aug. 13, 1965 3% Dec. 15, 1964-69... 21 2,535 June 15, 1978-83... 3V4 1,583 O O c c t t . . 2 3 8 1 , , 1 1 9 9 6 6 5 5 , , 2 0 0 0 4 0 A O u ct g . . 1 1 3, , 1 1 9 9 6 6 5 5 3 l 7 i/ / , 8 6 1 , ,0 2 6 0 6 2 M Ma a y r. 1 1 5 5 , , 1 19 9 6 6 6 5-70.. 2 1 , , 4 68 1 8 1 N Fe o b v . . 1 15 5 , , 1 1 9 9 8 8 0 0 4 31 /2 2 1 , , 6 9 0 1 8 3 Nov. 4, 1965 ,000 Nov. 15, 1965 3Vi 315 Aug. 15, 1966 3 1,024 May 15, 1985 3*4 1,127 Nov. 12, 1965 ,001 Nov. 15, 1965 4 1,617 Nov. 15, 1966 3 1,851 Feb. 15, 1990 3% 4,901 N N o o v v . . 2 1 6 8 , , 1 1 9 9 6 6 5 5 , ,0 0 0 0 1 2 F F e e b b . . 1 1 5 5 , , 1 1 9 9 6 6 6 6 3 3 5 % /3 2 8, , 0 1 9 9 9 5 J M un ar e . 1 1 5 5 , , 1 1 9 9 6 6 6 7 - - 7 7 1 2 . . . . . .2 2 V 1/ 4 2 1 1 , , 3 2 9 8 9 1 A Fe u b g . . 1 1 5 5 , , 1 1 9 9 8 8 8 7 - - 9 9 3 2 . . . . . . 4 A VA 3, 2 8 5 1 0 8 N De o c v . . 30 2 , , 1 1 9 9 6 6 5 5 , , 0 0 0 0 1 1 A M p a r y . 1 1 5, , 1 1 9 9 6 6 6 6 1 4 1/2 2,5 6 9 75 7 S N e o p v t . . 1 1 5 5 , , 1 1 9 9 6 6 7 7 -72... 2 3 1 % /2 2 1 , , 0 95 1 2 9 M Fe a b y . 1 1 5 5 , , 1 19 9 9 8 5 9 -94... 4 3 i /8 2 1 , , 2 56 7 0 4 Dec. 9, 1965 ,000 Aug. 15, 1966 4 9,519 Dec. 15, 1967-72...21/2 2,697 Nov. 15, 1998 3Vi 4,419 Dec. 16, 1965 ,001 Oct. 1,1966 11/2 11,060 May 15, 1968 3% 2,460 Dec. 23, 1965 .002 Nov. 15, 1966 4 357 Aug. 15, 1968 334 3,747 Convertible bonds D D e e c c . . 3 3 1 0 , , 1 1 9 9 6 6 5 5 , ,0 0 0 0 3 0 A Fe p b r . . 15 1 , , 1 1 9 9 6 6 7 7 3 P 5 / / 2 8 2 , ,3 2 5 5 8 4 N Fe o b v . . 1 1 5 5 , , 1 1 9 9 6 6 9 8 4 3% 1 1 , , 5 8 9 4 1 4 I A n p v r e . s tm 1 e , n 1 t 9 S 7 e 5 ri - e 8 s 0 B ... 234 2,875 NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. FEDERALLY SPONSORED AGENCIES, JUNE 30,1965 Agency a , n t d y p c e o u an p d o n d a ra te te of issue, Maturity ( A m m il o li u o n n t s Agency a , n t d y p c e o u an p d o n d a ra te t e of issue, Maturity ( A m m il o li u o n n t s of dollars) of dollars) Federal home loan banks Federal intermediate credit banks Debentures: Notes: Oct. 1, 1964 4 July 1, 1965 202 Aug. 17, 1964 3.95 July 15, 1965 446 Nov. 2, 1964 4.05 Aug. 2, 1965 223 Sept. 15, 1964 4.05 Aug. 16, 1965 552 Dec. 1964 4.05 Sept. 1, 1965 229 Oct. 15, 1964 4.05 Sept. 15, 1965 172 Jan. ,' 1965 4.20 Oct. 4, 1965 298 Nov. 16, 1964 4.10 Oct. 15, 1965 400 Feb. , 1965 4.15 Nov. 1, 1965 335 May 17, 1965 4.25 Nov. 24, 1965 300 Mar. , 1965 4.20 Dec. 1, 1965 319 Feb. 15, 1965 4.20 Jan. 17, 1966 220 Apr. , 1965 AVA Jan. 3, 1966 298 Apr. 15, 1965 4.30 Feb. 15, 1966 524 May 3, 1965 4.30 Feb. 1, 1966 289 June 15, 1965 4.35 Mar. 22, 1966 273 June 1, 1965 4.30 Mar. 1, 1966 272 May 17, 1965 4.30 Apr. 25, 1966 525 Federal land banks Bonds: Bonds: Aug. 20, 1964 4 Aug. 23, 1965 159 Sept. 17, 1962 3% Sept. 15, 1965 175 Oct. 20, 1960 4 Oct. 20, 1965 160 July 15, 1964 4V& May 15, 1966 260 June 20, 1961 4 Dec. 20,1965 140 D J J M u u e a n n c e e r . . 1 1 1 9 5 5 5 , , , , 1 1 1 1 9 9 9 9 6 6 6 6 3 5 5 4 A 4 4 4 V V * % A 4 s N A S M e u o a p g v r . t . . . 1 1 1 5 5 1 5 , , , , 1 1 1 1 9 9 9 9 6 6 6 6 8 6 6 7 2 2 2 1 7 0 5 8 5 0 0 5 J A M S u e p p a n r t y e . . 2 20 3 1 1 , , , , 1 1 1 1 9 9 9 9 6 6 6 5 1 5 1 8 4 3 3 A .3 V V % A 5 A J M F M u e l a a b y y y . 2 2 1 2 0 2 , , , , 1 1 1 1 9 9 9 9 6 6 6 6 6 6 6 6 1 1 1 1 1 5 9 0 7 0 3 8 Fede s r e al c o N n a d t a io ry n a m l a M rk o e r t t g o a p g e e ra A t s io so n c s iation— F M A e p a b r y . . 2 1 0 1 5 , , , 1 1 1 9 9 9 6 6 5 2 5 7 . , . ....4 A 4 i V / A 8 M F F e e a b b y . . 2 2 1 0 2 5 , , ,1 1 19 9 9 6 6 6 7 7 7-72 1 1 7 2 8 2 6 0 Oct. 1, 1957. Vi Oct. 1,1967-70 75 Discount notes. 457 Oct. 22, 1963. 41/s Oct. 23, 1967 174 De D J F F A S D A S A S M b u e e e e e e e u p p e n a b b p p p c c g r r n e r . . . . . . t t t . . . . . t u 2 1 1 1 1 1 1 1 1 1 1 1 r 3 1 2 0 1 2 3 0 0 2 1 0 e , , , , , , , , , , , , s 1 1 : 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 6 6 6 6 6 6 6 6 5 5 6 6 1 0 1 1 0 0 0 8 9 0 2 2 4 4 3 4 5 4 4 3 4 4 V 5 V 3 3 - ! i 3 % / / A / 8 & * 4 8 J J D A S F A S F M A M e e u u e e e p u p a a p p n n b b r c r g r r t t . e . e . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 1 0 0 2 0 0 2 2 1 0 0 0 0 , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 7 7 7 6 7 7 6 7 6 6 7 7 1 1 3 9 2 2 8 7 6 6 0 0 1 1 1 1 1 1 1 9 9 8 8 6 1 4 0 9 0 0 4 3 6 7 8 4 9 6 0 8 8 0 2 J J M O S F F M A F F F F A u a e e p e e e e e c u p n l a a b b b b b b p r y t g y y . . . . . . . . t . . . 2 2 2 2 2 1 1 1 0 0 2 0 5 0 3 4 4 1 1 1 1 5 , , , , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 6 6 5 6 5 5 6 6 6 5 5 5 6 6 0 0 6 5 9 9 3 2 4 8 6 7 4 3 . A A A A 4 3 4 5 3 4 5 4 4 3 V V V 3 V V V 7 % % H % y / A A A A / 4 s 8 2 8 J J A J A J S M M O F M F F u u u u e e e e u p c l l l n a a a b b b p y y y t g r y r r e . . . . t . . . . . 2 2 2 2 2 2 2 2 2 1 1 1 0 0 0 0 0 0 0 0 0 5 5 5 1 1 , , , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 6 7 6 6 6 7 6 6 6 7 7 7 7 7 9 1 9 9 9 2 8 8 8 4 0 0 0 3-78 2 1 1 1 1 1 1 1 1 0 6 6 5 8 8 8 0 1 4 3 8 0 6 9 0 0 5 2 3 5 9 1 8 0 6 0 0 Banks for cooperatives Apr. 20, 1965 43/8 Apr. 21, 1975 200 Tennessee Valley Authority Debentures: Short-term notes 80 Feb. 1,1965 4i/8 Aug. 2, 1965 204 Bonds: Apr. 1,1965 AVA Oct. 4, 1965 175 Nov. 15, 1960 4.40 Nov. 15, 1985 50 M Ju a n y e 3 1 , , 1 1 9 9 6 6 5 5 4 4 * * 4 4 D N e o c v . . 1 1, , 1 1 9 9 6 6 5 5 2 1 0 0 1 8 J F u e l b y . 1 1 , , 1 1 9 9 6 6 2 1 4 4* 5 / / 2 8 J F u e l b y . 1 1 , , 1 1 9 9 8 8 7 6 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

1144 CREDIT AGENCIES; SECURITY ISSUES AUGUST 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 e d 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 pe f a 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 n n e k d r s al End of period v m a b A e t n e o d m c r - s e - s I m nv e e n s t t s - p C a o d n a s e d s - i h ts B n a o o n n t d e d s s M po b d e s e e m - i r ts - C s a to p c it k al M l g o ( a A o a g n r ) e t s - D n t e a u ( o b n L r t e e d e ) s n s - c L a o t ( o o t i A o v a p n e ) e s s r- D t e u ( b L re e ) s n- c L o a d ( o u A n i a s n d - n ) t s s D t e u ( b L re e ) s n- M l g o ( a A o a g n r ) e t s - B ( o L n ) ds 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 1960 1,981 1,233 90 1,266 938 989 1,788 2,523 649 407 1,501 1,454 2,564 2,210 1961 2,662 1,153 159 1,571 ],180 ,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 ,151 1,171 2,000 1,788 840 589 2,099 1,952 3,310 2,834 1964—June.. 4,769 1,804 153 4,201 ,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 ,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 1,614 94 4,144 978 ,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 ,199 1,227 1,940 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 Feb... 4,851 1,425 77 3,905 1,013 1,237 1,958 1,739 1,037 670 2,308 2,143 3,818 3,298 Mar... 4,747 1,761 80 4,090 1,048 1,247 1,974 1,739 1,007 723 2,380 2,206 3,889 3,298 Apr... 5,219 1,386 95 4,184 1,026 1,254 1,990 1,795 978 696 2,480 2,278 3,950 3,415 May.. 5,227 1,687 73 4,484 1,024 1,257 2,004 1,898 940 678 2,577 2,367 4,011 3,415 June.. 5,586 1,691 no 4,757 1,174 1,260 2,014 1,797 931 687 2,687 2,462 4,058 3,532 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 Period a d m e o li u v n - t Total G g o a e b t n i l o e i- r n - s R n e u v e e- PHAi G l U o o a .S v n . t s . State S di p s a s t e n t a c r d 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 tie ti s l - 4 H in o g u 5 s- V a a e n i t d s e ' r- O p p o t u h s r e - e s r auth. 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 1960 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 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,369 1964 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1963—Dec 495 401 85 9 69 126 299 1,005 416 158 7 136 1 115 1964 »•_ Jan 1,009 606 232 140 31 215 339 456 430 947 276 42 114 141 60 313 Feb 858 669 180 1 8 214 210 434 867 776 245 33 238 3 30 226 Mar 868 494 359 15 136 266 466 974 810 245 262 140 11 153 Apr 1,293 656 473 141 22 106 585 602 813 1,242 403 59 226 145 408 May.... 709 473 216 20 141 169 399 1.235 667 258 40 208 8 151 June 939 537 260 * 120 23 71 339 529 696 903 362 43 183 134 181 July. . .. 943 563 369 11 116 341 487 948 906 401 25 169 * 311 Aug 799 267 520 12 13 534 252 829 780 161 73 440 105 Sept.. . . 920 510 260 130 20 101 374 445 925 892 207 50 248 133 254 Oct 852 662 178 13 191 133 529 717 801 245 12 240 37 268 Nov.. . . 578 376 195 7 106 126 346 912 529 166 18 137 7 201 Dec 1,078 604 345 104 26 218 397 463 722 948 424 30 93 107 30 264 1 Only bonds sold pursuant to 1949 Housing Act; secured by contract 5 Includes urban redevelopment loans. reqqiuiring 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

AUGUST 1965 SECURITY ISSUES 1145 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues 1 Prop a o l s l e c d o r u p se o r o a f t e n e is t s u p e r s o c 6 eed5, Noncorporate Corporate New capital Re- Period Bonds Stock tire- Total G U o . v S t . .2 G a U c g o y . e v S n 3 t . - . l U S o a c t n . a a S d t l e . 4 Other 5 Total Total P li u c b ly - v P at r e i- ly fe P r r r e e - d C m o o m n - Fotal Total m N on e e w y 7 O p p o t u h s r e e - s r s r m i e o t e c i f e u n s - t offered placed 1957 30,571 9,601 572 6,958 557 12,884 9,957 6,118 3,839 411 2,516 12,661 r>,447 11784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 9,653 6,332 3,320 571 1,334 11,372 H),823 9j 907 915 549 1959 31,074 12,322 707 7,681 616 9,748 7,190 3,557 3,632 531 2,027 9,527 c,392 578 814 135 1960 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 ,653 8,758 895 27 1 1961 35,527 12,253 1,448 8,360 303 13,165 9 4?0 4,700 4,720 450 3,294 12,885 r>,017 10715 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 c>,747 8 ?40 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 If),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 V>,557 10935 1,622 743 1964—May 2,267 367 660 85 1,155 ,008 470 537 50 98 1,141 :,069 953 116 72 June 3,056 383 275 900 37 1,461 ,091 468 623 82 289 1,441 ,378 1292 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 ,048 376 672 23 133 1,191 ,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 1256 163 141 1965 Jan 2,333 433 811 232 858 7?7 161 565 47 84 850 795 700 95 54 Feb 3,997 2,129 129 933 14 791 637 187 450 24 130 779 746 687 59 33 Mar .... 3,003 413 185 1,003 45 1,358 1,215 557 658 60 82 1,343 1,197 }039 157 146 Apr 3,176 390 325 971 130 1,360 1,196 422 774 35 129 1,340 ,250 011 239 90 May 3,152 356 1,020 11 1,764 1,317 694 623 64 384 1,737 ,680 1 538 142 57 Proposed uses of net proceeds, major groups of corporate issuers Manufacturing C m om is m ce e l r la c n ia e l o u a s nd Transportation Publicutility Communication a R nd e al f in 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 capital 8 secu- capital s secu- capitals secu- capital 8 secu- capitals secu- capital 8 securities rities rities rities rities rities 1957 4,104 49 579 29 802 14 3,821 51 1,441 4 1,701 67 1958 3,265 195 867 13 778 38 3,605 138 1,294\ 118 1 014 47 1959 1,941 70 812 28 942 1S 3,189 15 70' * 1 801 6 1960 1,997 79 794 30 672 39 ,754 51 l,03( 1 2,401 71 1961 3,691 287 1 109 36 651 35 ,883 106 1,43* 382 2 248 22 1962 2,958 228 803 32 543 16 ^,341 444 1,27* 11 1 825 23 1963 3,312 190 774 55 873 83 1 935 699 72*> 356 2 933 144 1964 2,733 241 998 81 910 31 2,445 280 2,12:> 35 3^348 74 1964 May 206 10 50 119 6 441 53 2'1 226 1 June 332 39 50 35 1 264 4 25?? 5 439 13 July 149 40 45 90 * 207 16 2:\ 4 266 12 Aug 164 12 45 20 1 138 27 1() 15 277 3 Sept 234 36 166 49 * 296 38 IS) 2 345 4 Oct 249 17 88 5 44 1 297 37 81 6 189 * Nov 188 22 134 17 62 1 40 6 17 204 2 Dec 607 26 121 49 115 8 172 31 30 * 373 28 1965 Jan 385 23 70 5 40 97 21 21 1 182 4 Feb 192 15 35 2 47 215 13 44 213 3 Mar 494 56 104 4 108 17 229 57 26 4 236 9 Apr 570 32 124 6 75 164 41 12 \ 306 7 May 690 20 73 3 163 244 27 142 1 367 7 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price. 1 For plant and equipment and working capital. 2 Includes guaranteed issues. • All issues other than those for retirement of securities. 3 Issues not guaranteed. 4 See NOTE to table at bottom of opposite page. NOTE.—Securities and Exchange Commission estimates of new issues 5 Foreign governments, International Bank for Reconstruction and maturing in more than 1 year sold for cash in the United States. Development, and domestic nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1146 SECURITY ISSUES AUGUST 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 New issues Retirements Net change New Retire- Net New Retire- Net issues ments change issues ments change In co v s e . s 1 t. Other In co v s e . s 1 t. Other In co v s e . s 1 t. Other 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 1964 18,610 8,290 10,320 10,715 4.. 077 6.637 4,147 3',748 1,895 2,317 2,252 1,431 1964 I • • 4,302 1,960 2,343 2,197 914 1.283 920 1.185 536 510 384 675 II 5.139 1,795 3,344 2,987 940 2^046 917 1,23S 469 385 448 850 Ill 4,011 1,946 2,065 2,297 i .033 1.265 1.010 704 475 438 535 265 IV 5,158 2,590 2,568 3,233 K191 2,043 1,300 625 415 984 885 -360 1965—1 4,162 2,058 2,103 2,272 967 1,305 1,275 615 485 606 790 8 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 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 -7 1,648 704 149 1,457 775 3,212 1962 1.355 -242 294 -201 -85 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 1964 ... . 1.303 -516 507 -483 317 -30 1,408 476 458 1,699 2,644 2,537 1964- I 92 -253 65 16 131 -6 156 70 234 811 606 422 II 291 -65 84 -21 59 31 606 156 229 681 775 516 III 232 28 93 -34 38 -47 290 149 42 92 569 613 IV 689 -226 265 -444 88 j 356 101 -47 115 693 986 1965 I 574 — 256 -5 -1 39 9 281 97 64 100 351 850 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. 1145. actions only. As contrasted with data shown on p. 1145, 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 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 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—June. . 285 147 138 27,682 ,499 26,183 1954 863 400 463 r6,109 309 '5,800 July... 308 168 140 28,319 ,471 26,848 Aug... 260 149 110 28,164 ,457 26,707 1955 1,207 443 765 7,838 438 7.400 Sept... 299 149 149 29,130 ,436 27,694 1956 1,347 433 914 9,046 492 8,554 Oct.... 306 142 164 29,087 ,312 27,775 1957, 1,391 406 984 8,714 523 8,191 Nov... 317 134 184 29,062 ,300 27,762 1958 1,620 511 ,109 13,242 634 12,608 Dec... 336 136 200 29,116 ,329 27,787 1959 2,280 786 ,494 15J818 860 14,958 1965—Jan.... 407 152 254 30,349 ,545 28,804 1960 2,097 842 ,255 17,026 973 16,053 Feb... 313 159 154 30,749 ,605 29,144 1961 2,951 1,160 ,791 22,789 980 21,809 Mar... 356 168 188 30,464 ,597 28,867 1962 2,699 1,123 1,576 21,271 1,315 19,956 Apr... 351 155 196 31,521 1,523 29,998 1963 2,460 1,504 952 25,214 1.341 23,873 May.. 301 158 143 31,431 ,551 29,880 1964 3,404 1,875 ,528 29,116 1J329 27,787 June.. 417 186 23i 30,036 ,447 28,589 1 Includes contractual and regular single purchase sales, voluntary short-term debt securities, less current liabilities, and contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. the Securities and Exchange Commission 3 Cash and deposits, receivables, all U.S. Govt. securities, and other cos. after their intial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 BUSINESS FINANCE 1147 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1963 1964 1965 Industry 1960 ! 1961 | 1962 1963 1964 III IV I Manufacturing Total (177 corps.): Sales 123.911123,669136,545147,380157,633 35,371 38,990 38,326 40,784 37,697 40,827 42.651 Profits before taxes 13.543 13,268 15,330 17,337 18,821 3,741 4,877 4,781 5,333 4,077 4,631 5,520 Profits after taxes 7,161 7,167 8,215 9,138 10,520 2,014 2,587 2,603 2,898 2,335 2,684 3,082 Dividends 4,485 4,730 5,048 5,444 5,930 1,183 1,770 1,285 1,448 1,324 1,873 1,419 Nondurable goods industries (78 corps.): 1 Sales 47,372 49,362 52,245 55,372 59,256 14,080 14,057 14,220 14,823 14,915 15,298 15,365 Profits before taxes 5,579 5,602 5,896 6,333 6,896 1,612 1,646 1,643 1,752 1,740 1,761 1.807 Profits after taxes 3.215 3,225 3,403 3,646 4,137 922 972 992 1,028 1,037 1,080 1,111 Dividends 1,948 2,031 2,150 2,265 2,404 542 649 561 569 584 690 614 Durable goods industries (99 corps.): 2 Sales 76.540 74,307 84,300 92,008 98,377 21,291 24,933 24,106 25,961 22,782 25,528 27,286 Profits before taxes 7,964 7,666 9,434 11,004 11,925 2,130 3,230 3,138 3,581 2,336 2,870 3,712 Profits after taxes 3,946 3,942 4.812 5,492 6,383 1,092 1.615 1,611 1,871 1,299 1.603 1.970 Dividends 2.536 2.699 2; 898 3,179 3,526 642 1,121 724 879 740 1J83 804 Selected industries: Foods and kindred products (25 corps.): Sales 12,202j 12,951 13,457 14,301 15.209 3,732 3,632 3,598 3,721 3.863 4,027 3.866 Profits before taxes 1 ,34 1.440 1,460 1.546 1,589 409 407 345 401 420 424 388 Profits after taxes 639 682 698 747 807 196 199 173 202! 214 219 201 Dividends 3721 397 425 448 479 111 118 117,' 119! 119! 124 124 Chemicals and allied products (20 corps.) j ! I Sales 12,205 12,606 13,759 14,623 16,077 3,706 3,751 3,7911 4,114 4,067 4.104 4,171 Profits before taxes 2,005 1,979 2,162 2,286 2,596 583 572 636" 682! 654 623 685 D Pr i o v f i i d ts e n a d f s ter taxes 1, 7 0 8 5 6 8 1 3, 8 0 3 3 3 4 1,126 1, 9 1 0 8 4 2 1, 9 4 2 0 4 4 2 3 0 0 1 1 2 3 9 0 9 1 2 3 0 4 7 7 2 3 0 66 9 ! i 2 3 1 4 2 9 2 3 9 4 6 2 2 3 2 8 2 9 Petroleum refining (16 corps.): Sales 13,815 14,483 15,106 16,043 16,583 4,027 4,006 4,132 4,lllj 4,123 4,217 4,404 Profits before taxes 1,267 1,237 1,319 1,487 1.558 372 388 400 361j 3731 424 440 Profits after taxes 1,026, 1,025 1,099 1,204 1,309 303 321 336 2981 3181 358 363 Dividends 521 528 566 608 670 154 154 158 159| 1691 184 182 Primary metals and products (34 corps.): Sales 20.828 20,234 21.260 22,116 24,114 5,463 5,405 5,540 6.046! 6,042 6,486 6,614 Profits before taxes 2.214 1.999 1,838 2,178 2,577 470 572 560 674! 605 738 767 Profits after taxes 1,169 1,067 1.013 1,183 1,485 254 330 315 384! 349 437 436 Dividends 838 843 820 734 763 181 191 186 187 187! 204 195 Machinery (24 corps.): Sales 16,681 17,446 19,057 21,144 22,653 5,324 5,576 5,401 5,673 ,584 5.995 5.772 Profits before taxes 1,509 1.701 1,924 2,394 2,733 602 673 673 702 701 '657 747 Profits after taxes 768 859 966 1,177 1,399 308 323 338 357 373 331 385 Dividends 494 508 531 577 673 141 154 157 170] 171 175 192 Automobiles and equipment (14 corps.): Sales 26,275 23,314 29,156 32,927 35,323 6,428 9,736 9,275 10.0281 ,137 10.897 Profits before taxes 3.197 2,786 4,337 5,004 4,997 670 1,591 1,573 1,775| 589 1,060 K828 Profits after taxes 1.534! 1,404 2,143 2,387 2.625 330 752 782 9001 338 604 942 Dividends 837! 973 1,151 1,447 1,630 220 648 276 4191 276 659 305 Public utility Railroad: Operating revenue 9,514 9,189 9.440 9,560 9,857 2,398 2,447 .362 2.481 2,486 2,526 Profits before taxes 648 625 '729 816 836 196 252 1881 245 211 192 Profits after taxes 445 382 572 651 698 156 225 144 196 175 182 Dividends 385 359 367 356 451 66 125 110 101 109 132 Electric power: Operating revenue 11,906 12,478 13,489 14.294 14,968 3,475 3,567 ,961 3,572 3,686 3,749 3,309 Profits before taxes 3.163 3,349 3,583 3,735 3,947 929 862 ,106 893 998 949 1.154 Profits after taxes 3,793 1.883 2,062 2.187 2,385 529 531 660 542 583 600 712 Dividends 1,307 1,374 1,462 1,567 1,672 384 415 424 412 426| 410 467 Telephone: I Operating revenue 8,111 8,615 9,196 9,796 10.550 2.465| 2.526 .543 2.6191 2,654 2,734 2,669 Profits before taxes 2.326 2,478 2,639 2,815 3,069 725 707 726 796 j 773 774 783 Profits after taxes 1 J55 1,233 1,327 1,417 1,590 368 356 377 408! 402 403 420 Dividends 806 867 935 9881 1,065 252 256 261 262; 268 274 279 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 Depts. of American Telephone and Telegraph Co.) published co. reports. and for 2 affiliated telephone cos. Dividends are for the 20 operating Railroads. Interstate Commerce Commission data for Class I line- 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. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. profits before taxes are partly estimated by the Federal Reserve to include affiliated nonelectric operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1148 BUSINESS FINANCE AUGUST 1965 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t r e a o f x o f e i r 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 fi t i t e s s - d co c a n a l t l s i p o o u i w n t m a - l p- Quarter P b t r e a o f x o f e i r t s e s c ta o I x n m e - e s 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 fi t i t e s s d - co c a n a l t l s i p o o u i w n t m a - l pances l ances 1 1956 44.7 21.2 23.5 12.1 11.3 20.0 1963—III.... 51.3 24.5 26.7 17.9 8.9 32.1 1957 43.2 20.9 22.3 12.6 9.7 21.8 IV.... 54.3 26.0 28.3 19.1 9.2 32.4 1958 37.4 18.6 18.8 12.4 6.4 22.7 1959 47.7 23.2 24.5 13.7 10.8 24.3 1964—1 56.6 25.4 31.2 19.4 11.8 33.0 II 57.9 26.0 31.9 19.8 12.1 33.4 1961 44.2 22.3 21.9 15.2 6.7 26.9 III.... 58.0 26.0 32.0 20.0 12.0 33.8 1962 48.2 23.2 25.0 16.5 8.5 30.5 IV.... 57.7 25.9 31.9 20.2 11.7 34.4 1963 51.3 24.6 26.7 18.0 8.7 31.8 1964 57.6 25.8 31.8 19.8 11.9 33.7 1965—1 64.3 27.7 36.6 20.5 16., 34.8 1 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) 1 Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . - I t n o v ri e e n s - Other Total F in e c d o e m ra e l Other ties G U o . v S t . . i Other G U o . v S t . .i Other taxes 1957 111.6 244.7 34.9 18.6 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 1960 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 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 IV 161.1 371.0 45.0 19.1 3.4 173.8 114.3 15.5 209.9 2.7 140.0 17.0 50.2 1965—1 163.5 376.4 42.5 18.5 3.3 177.5 117.3 17.2 212.9 2.8 '141.4 16.6 52.1 i Receivables from, and payables to, the U.S. Govt. exclude amounts NOTE.—Securities and Exchange Commission estimates; excludes offset against each other on corps.' books. banks, savings and loan assns., and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Non- Mining u P ti u l b it l i i e c s n C i o ca m ti m on u s - Other i a ( n S n . u A a . l Durable durable Railroad Other rate) 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 1964 44 90 9.43 9 16 1 19 1 41 2 38 6 22 4 30 10 83 1965 2 50.40 10.89 10.89 1.32 1.63 2.64 6 67 16.36 1963 III 10.14 1.96 1.99 .27 .29 .45 .60 .93 2.64 40.00 IV 11.09 2.31 2.25 .28 .33 .54 .61 1.06 2.72 41.20 1964 I 9.40 1.93 1.87 .26 .32 .51 .18 .97 2.37 42.55 IT 11 .11 2.30 2.23 .29 .36 .63 .58 1 10 2 61 43 50 Ill .... 11.54 2.37 2 30 30 37 59 71 1 06 2 84 45 65 IV 12.84 2.83 2.76 .33 .35 .64 .76 1.17 3.01 47.75 1965 I 10.79 2.25 2.28 .29 .39 .58 .32 1.08 2.59 49.00 II 2 12.63 2.67 2.73 .34 .41 .78 66 4 04 49 60 Ill 2 12.92 2.77 2.80 .34 .39 .60 .82 4. 19 50.80 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

AUGUST 1965 REAL ESTATE CREDIT 1149 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm End of ho O l t d h e e r r s 2 1- to 4-family houses com M m u e l r t c if ia am l p il r y o p a e n rt d ies'* M t o y r p tg e a s ge period h A o er l l s d l - t F u i t i n c i n i s o a a t n l i n - s - * a U c g i . e e S n s . - v o I i a t n d h n u d e d a i r - l s s h A o er l l d s l - tu F i t i n c i n i o s a a t n i l n - s - 1 ho O ld th e e rs r 3 h A e o r l l s l d- Total t F u in i t n i s o a ti n n - s . O h e o th r l s d e - r Total t F u in i t n i s o a ti n n - s . O h e o th r l s d e - r w u F V n r H i d A t A t e e - r - n - t C v io e o 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 280.8 217.1 11.2 52.5 16.8 6.2 10.6 264.0 182.2 156.3 25.9 81.8 54.6 27.1 73.0 190.9 1964P 311.4 241.0 11.4 59.1 18.9 7.0 11.9 292.5 197.7 170.5 27.2 94.9 63.5 31.4 76.6 215.9 1963—1.... 257.0 197.2 11.8 48.0 15.5 5.6 9.9 241.5 169.2 143.4 25.8 72.2 48.1 24.1 70.1 171.1 II... 265.0 204.1 11.2 49.8 16.1 5.9 10.2 248.9 173.7 148.1 25.6 75.2 50.2 25.0 70.9 178.0 in... 273.0 210.8 11.1 51.1 16.5 6.1 10.5 256.5 178.2 152.5 25.8 78.3 52.3 26.0 71.7 184.8 280.8 217.1 11.2 52.5 16.8 6.2 10.6 264.0 182.2 156.3 25.9 81.8 54.6 27.1 73.0 190.9 IV... 1964—IP... 286.8 221.9 11.2 53.7 17.3 6.4 10.9 269.5 185.2 159.2 26.0 84.3 56.4 28.0 73.8 195.7 IIP.. 295.5 228.4 11.2 55.8 18.0 6.7 11.3 277.4 189.6 163.0 26.6 87.8 58.7 29.1 74.5 202.9 ITIP.. 303.6 234.8 11.3 57.4 18.5 6.9 11.6 285.1 193.9 167.0 26.9 91.2 61.0 30.2 75.6 209.5 IVP.. 311.4 241.0 11.4 59.1 18.9 7.0 11.9 292.5 197.7 170.5 27.2 94.9 63.5 31.4 76.6 215.9 1965—IP. .. 317.5 245.6 11.5 60.3 19.4 7.2 12.3 298.0 200.3 173.0 27.3 97.7 65.5 32.3 77.3 220.7 II *>., . 325.1 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 I - 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 Mortage 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. 4Derived 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 * Mutual savings bank holdings2 Residential Residential End of period Other Other Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm sured anteed tional sured anteed tional 1941 4 906 3 292 1,048 566 4,812 3 884 900 28 1945 4,772 3,395 856 521 4,208 3,387 797 24 1957 23,337 17,147 4,823 3,589 8,735 4,823 1,367 21,169 19,010 4,669 7,790 6,551 2,102 57 1958 25,523 18,591 5,476 3,335 9,780 5,461 1,471 23,263 20,935 5,501 8,360 7,073 2,275 53 1959 28,145 20,320 6,122 3,161 11,037 6,237 1,588 24,992 22,486 6,276 8,589 7,622 2,451 55 I960 28,806 20,362 5,851 2,859 11,652 6,796 1,648 26,935 24,306 7,074 8,986 8,246 2,575 54 1961 30,442 21,225 5,975 2,627 12,623 7,470 1,747 29,145 26,341 8,045 9,267 c9,029 2,753 51 1962 34,476 23,482 6,520 2,654 14,308 8,972 2,022 32,320 29,181 9,238 9,787 10,156 3,088 51 1963 39,414 26,476 7,105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11,544 3,454 52 1964 43,976 '28,933 7,315 2,742 18,876 '12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 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 24 958 6,861 2,837 15,260 9,740 2,241 34,309 30,969 10,023 10,218 10,728 3 290 50 III 38,360 25,855 7,007 2,870 15,978 10,203 2,302 35,191 31,775 10,328 10,335 11,112 3,365 51 IV 39,414 26,476 7,105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11,544 3,454 52 1964 I 40,200 26,894 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 27,750 7,158 2,793 17,799 11,340 2,558 38,199 34,407 11,376 10,826 12,205 3,739 53 Ill . . .. 42,948 28,432 7,250 2,786 18,396 11,896 2,620 39,381 35,449 11,826 10,977 12,646 3 879 53 IV 43,976 '28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965—IP 44,627 41,513 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 commecial 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

1150 REAL ESTATE CREDIT AUGUST 1965 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total FHA- g V u A ar - - Other 1 Farm 1 Total Total FHA- g V u A ar - - Other Farm insured anteed insured anteed 1945... 976 6,637 5,860 1,394 4,466 776 1958 5,277 4,839 ,301 195 3,343 438 37,062 34,395 7,443 7,433 19,519 2,667 1959 5,970 5,472 ,549 201 3,722 498 39,197 36,370 8,273 7,086 21,011 2,827 1960 6,086 5; 622 ,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961 6,785 6,233 ,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962 7,478 6,859 ,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963 9,172 8,306 ,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964 10,327 9,277 ,787 683 6,807 ,050 r55,152 r50,848 11,484 r6,403 r32,961 '4,304 1964—May 761 676 129 58 489 85 52,187 48,152 11,071 6,436 30,645 4,035 June 863 778 152 51 575 85 52,466 48,384 11,116 6,422 30,846 4,082 July 861 785 151 56 578 76 52,832 48,709 11,165 6,413 31,131 4,123 Aug 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 1965—Jan 915 175 67 566 107 55,626 51,307 11,625 6,433 33,249 4,319 Feb 748 655 123 50 482 93 55,941 51,593 11,676 6,439 33.478 4,348 Mar 939 786 154 51 581 153 56,343 51,923 11,742 6.432 33,749 4,420 Apr 772 134 40 598 108 56.687 52.213 11,786 6,419 34,008 4,474 May 662 117 37 508 S7 56.997 52,482 11.821 6,404 34.257 4.515 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 (1) 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 (2) data for year-end adjustments are more complete. NOTE.—Institute of Life Insurance data. For loans acquired, the MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS NONFARM MORTGAGE RECORDINGS OF $20,000 OR LESS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) By type of lender (N.S.A.) Period Total 1 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 i r n e A - d - a g n V u t A c a e r - - d t C i v o e o n n n a - - l T N o .S ta . l A 1 . 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 c a o i n e a m r k l - s - M b i s a u n a n t g v u k s - a s l 1945 1,913 181 1 ,358 5,376 5,650 2,017 1,097 217 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1959 15,151 5,201 6,613 53,141 2,995 7,186 42,960 1958 27,388 10,516 ,460 5,204 1,640 1960 14,304 4,678 6,132 60,070 3,524 7,222 49,324 1959 32,235 13,094 .523 5,832 1,780 1960 29,341 12,158 ,318 4,520 1,557 1961 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1962 20,754 5,979 8,524 78,770 4,476 7,010 67,284 1961 31,157 13,662 ,160 4,997 1,741 1963 24,735 7,039 9,920 90,944 4,696 6,960 79,288 1962 34,187 15,144 ,212 5,851 1,957 1964 24,505 6,515 10,397 101,314 4,896 6,686 89,732 1963 36,925 16,716 .339 6,354 2.061 1964 1963 June 2,394 624 1,054 96,168 4,744 6,797 84,627 Nov 2.880 1,271 103 495 184 July 2,363 635 1 ,037 97,211 4.760 6,777 85,674 Dec 2,987 1,322 110 504 166 Aug 2,164 537 1,025 98,159 4.769 6,750 86.640 Sept 2,048 498 970 98,995 4,793 6,729 87,473 1964 Oct 2,051 531 893 99,832 4,811 6,706 88,315 Nov 1,791 462 770 100,519 4,830 6,690 88,999 Jan 2.758 1.170 103 483 145 Dec 1,969 522 784 101,314 4,896 6,686 89,732 Feb 2.575 ,128 90 465 129 Mar 2,935 ,290 102 540 140 1965 Apr 3,089 .350 109 567 154 May 3,090 ,349 116 560 176 Jan 1,527 370 638 101,844 4,906 6,683 90,255 June 3,388 ,485 126 607 197 Feb 1,541 379 638 102,351 4,921 6,654 90,776 July 3,519 ,508 137 618 233 Mar 2,056 544 824 103,151 4,939 6,629 91.583 Aug 3,277 ,398 130 581 213 Apr 2,068 558 850 103,975 4,952 6,590 92,433 Sept 3,281 ,386 131 597 215 May 2,022 526 861 104,816 4,975 6.568 93,273 Oct 3,225 ,332 129 590 j 201 June*7 2,393 610 1,100 105,805 5,004 6,551 94,250 Nov 2,847 ,174 114 514 192 1 Includes loans for repairs, additions and alterations, refinancing, etc., 1 Includes amounts for other lenders, not shown separately. not shown separately. 2 Beginning with 1958 includes shares pledged against mortgage loans. 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

AUGUST 1965 REAL ESTATE CREDIT 1151 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMILY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Mortgages Prop- Mortgages End of Con- Period Total h N om ew es h i o s E t m i x n - e g s je P c r t o s - 1 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 1957 3,715 880 1,371 595 869 3,761 2,890 863 1958.... 117.7 50.1 19.7 30.4 67.6 1958 6,349 1,666 2,885 929 868 1,865 1,311 549 1959.. . 130.9 53.8 23.8 30.0 77.0 1959 7,694 2,563 3,507 628 997 2,787 2,051 730 1960 6,293 2,197 2,403 711 982 1,985 1,554 428 1960 141.3 56.4 26.7 29.7 84.8 1961 153.1 59.1 29.5 29.6 93.9 1961 6,546 1,783 2,982 926 855 1,829 1,170 656 1962 166.5 62.0 32.3 29.7 104.5 1962 7,184 1,849 3,421 1,079 834 2,652 1,357 1,292 1963* 182.2 65.5 35.0 30.5 116.7 1963 7,216 1,664 3,905 843 804 3,045 1,272 1,770 1964* 197.7 68.7 38.3 30.4 129.0 1964 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1963—IP 169.2 62.8 33.0 29.8 106.4 1964 June 711 128 442 67 73 233 76 157 II* 173.7 63.5 33.5 30.0 110.2 July 782 141 476 108 57 251 81 171 Ill* 178.2 64.3 34.3 30.0 113.9 740 137 468 68 67 246 78 167 IV* 182.2 65.5 35.0 30.5 116.7 Seot 720 138 467 66 49 270 85 185 Oct 790 159 491 81 58 271 93 178 1964—1* 185.2 66.3 35.7 30.6 118.9 Nov 688 135 422 81 50 258 91 167 II* 189.6 66.8 36.3 30.5 122.7 Dec 683 135 428 67 54 242 88 153 Ill* 193.8 67.9 37.4 30.5 126.0 IV* 197.7 68.7 38.3 30.4 129.0 1965 Jan 630 138 405 34 54 225 84 141 Feb 517 115 328 40 34 200 72 128 1965—IP 200.3 69.4 39.0 30.4 130.9 Mar 640 137 396 62 45 216 77 139 634 128 413 51 42 179 64 115 May *25 U6 399 57 53 182 57 125 NOTE.—For total debt outstanding, figures are June 716 127 484 40 66 217 65 152 FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank 1 Monthly figures do not reflect mortgage amendments included in annual totals. Board, Federal Housing Admin., and Veterans Admin. 2 Not ordinarly 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. NOTE.—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 holdings tr M an o s r a t c g t a i g o e ns Com- Adv ( a e n n c d e s o f o p u e ts r t i a o n d d ) ing (during mit- Period Ad- Repay- Members End of period) ments vances ments deposits period Total FH in A - - g V u A ar - - d u i n s - - Total t S e h rm or t 1 - t L e o rm ng 2 sured anteed Pur- Sales bursed chases 1945 278 213 195 176 19 46 1956 3,047 978 2,069 609 5 360 1956 745 934 1,228 798 430 683 1957 3,974 1,237 2,737 1,096 764 1957 1,116 1,079 1,265 731 534 653 1958 3,901 1,483 2,418 623 482 1,541 1958 1,364 1,331 1,298 685 613 819 1959 5,531 2,546 2,985 1,907 568 1959 2,067 1,231 2,134 1,192 942 589 I960 6,159 3,356 2,803 1,248 357 576 I960 1,943 2,097 1,981 1,089 892 938 1961 6,093 3,490 2,603 815 541 631 1961 2,882 2,220 2,662 1,447 1,216 1,180 1962 5,923 3,571 2,353 740 498 355 1962 4,111 3,294 3,479 2,005 1,474 1,213 1963 4,650 3,017 1,634 290 1,114 191 1963 5,601 4,296 4,784 2,863 1,921 1,151 1964 4,412 2,996 1,416 424 251 313 1964 5,563 5,023 5,325 2,846 2,479 1,199 1964 June 4,539 3,025 1,514 36 199 1964—June 703 329 4,769 2,674 2,095 1,153 July 4,516 3,033 1,482 41 30 222 July 584 590 4,763 2,699 2,064 936 4,477 3,008 1,469 44 43 230 369 351 4,781 2,662 2,119 926 Seot . .. 4,453 2,998 1,455 34 24 245 Sept 382 327 4,837 2,635 2,202 989 Oct 4,440 2,997 1,443 36 14 260 Oct 401 441 4,797 2,605 2,192 978 Nov 4,439 3,011 1,428 40 11 292 Nov 379 392 4,784 2,572 2,212 989 Dec 4,412 2,996 1,416 40 31 313 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 Feb 4,394 3,005 1,388 48 41 316 Feb 309 402 4,851 2,420 2,431 1,013 Mar 4,364 2,986 1,378 45 43 320 Mar 348 452 4,747 2,277 2,470 1,048 Apr 4,341 2,989 1,352 51 43 321 Apr 735 264 5,219 2,565 2,653 1.07.6 4,326 2,997 1,329 47 327 May 350 342 5.227 2.480 2,748 1,017 June 4,303 2,992 1,311 44 27 360 June 602 243 5.586 2,867 2,719 1,172 NOTE.—Federal National Mortgage Assn. data excluding conventional 1 Secured or unsecured loans maturing in 1 year or less. mortgage loans acquired by FNMA from the RFC Mortgage Co., the 2 Secured loans, amortized quarterly, having maturities of more than Defense Homes Corp., the Public Housing Admin., and Community 1 year but not more than 10 years. Facilities Admin. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1152 CONSUMER CREDIT AUGUST 1965 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t e o il r - e co g O p n o a s t o p h u d e m e r s r er e a r n l R n o d i e a z p n m a a s t o i i 1 o r d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e 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 ,139 10,480 13,196 4,507 5,329 3,360 1961 57,678 43,527 17,223 11,857 ,191 11,256 14,151 5,136 5,324 3,691 1962 63,164 48,034 19,540 12,605 ,246 12,643 15,130 5,456 5,684 3.990 1963 69,890 53,745 22,199 13,766 ,389 14,391 16,145 5,959 871 4,315 1964 76,810 59,397 24,521 15,303 3,502 16,071 17,413 6,473 300 4,640 1964—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 6,299 231 4,484 Sept... 73,495 57,446 24,295 14,046 493 15:612 16,049 6,354 223 4,472 Oct.. . 73,928 57,826 24,423 14,222 509 15,672 16,102 6,333 5,352 4,417 Nov... 74,371 58,085 24,367 14,431 516 15,771 16.286 6,412 5,394 4,480 Dec.. . 76,810 59,397 24,521 15,303 502 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 Feb.. . 75,741 59,363 24,743 14,984 3,446 16,190 16,378 6,442 5,154 4,782 Mar... 76,085 59,788 25,063 14,944 3,440 16,341 16,297 6,518 4,977 4,802 Apr... 77,483 60,803 25,615 15,056 3,439 16,693 16,680 6,606 5,210 4,864 May.. 78,687 61,739 26,109 15,229 3,484 16,917 16,948 6,686 5,453 4,809 June.. 79,887 62,790 26,685 15,422 3,524 17,159 17,097 6,776 5,528 4,793 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 instalmsnt 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 cover loans to individuals for house- BULLETIN. Back data are available upon request. hold, family, and other personal expenditures, except real estate mortgage INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n c m k ia s - l fi S n c a o a l n s e . c s e u C n r i e o d n i s t fin s C u a o n m n c e e - r * Otheri Total D st m e o p e re a n s r t t 2 - F s t t u o u 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 to r il 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 ?40 17 28 270 1957 33,867 29,200 12,843 9,609 2,429 3,124 ,195 4,668 1,393 1,210 361 478 ,226 1958 33,642 28,659 12,780 8,844 2,668 3,085 ,282 4,983 1,882 ,128 292 506 ,175 1959 39,245 33,570 15,227 10,319 3,280 3,337 ,407 5,676 2,292 ,225 310 481 ,368 I960 42,832 37,218 16,672 11,472 3,923 3,670 ,481 5,615 2,414 1,107 333 359 ,402 1961 43,527 37,935 17,008 11,273 4,330 3,799 ,525 5,595 2,421 ,058 293 342 ,481 1962 48,034 41,782 19,005 12,194 4,902 4,131 ,550 6,252 3,013 ,073 294 345 ,527 1963 53,745 46,992 21,610 13,523 5,622 4,590 ,647 6,753 3,427 ,086 287 328 ,625 1964 59,397 51,990 23,943 14,762 6,458 5,078 ,749 7,407 3,922 1,152 286 370 ,677 1964 June 55,914 49,543 22,907 14.228 6,014 4,701 ,693 6,371 3,231 1,028 271 355 ,486 July 56,496 50,082 23,176 14,359 6,109 4,748 ,690 6,414 3,267 1,037 273 360 ,477 Aug •. • 57 055 50,583 23,389 14,475 6,204 4 797 ,718 6 472 3 332 1 044 273 363 460 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 ,728 6,606 3,444 ,062 276 367 ,457 Nov 58,085 51,341 23,680 14,622 6,378 4 919 1,742 6 744 3 541 1 088 279 367 469 Dec 59,397 51,990 23,943 14,762 6,458 5,078 ,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 Feb 59,363 52,352 24,246 14,782 6.465 5,101 ,758 7,011 3,713 1,101 282 377 1,538 Mar 59,788 52,837 24.537 14,831 6,569 5,132 1,768 6,951 3,673 1,085 277 384 1,532 Aor . . 60,803 53,828 25,117 14.991 6.739 5 202 1,779 6,975 3 701 1 077 275 395 1,527 May 61,739 54,694 25,602 15,158 6,871 5,243 1,820 7,045 3,745 1,076 277 405 1,542 June 62,790 55,666 26,154 15,372 7,032 5,287 1.821 7,124 3,785 1.084 281 417 1.557 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

AUGUST 1965 CONSUMER CREDIT 1153 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair Other Repair paper Other and Auto- con- and Percom- mod- Per- End of period Total mobile sumer modern- sonal End of period Total sumer erniza- sonal paper goods ization loans Pur- goods tion loan paper loans chased Direct paper 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 1960 16,672 5,316 2,820 2,759 2,200 3,577 1961 . 11,273 6,811 3,100 161 1,201 1961 17,008 5,391 2,860 2,761 2,198 3,798 1962. 12,194 7,449 3,123 170 1,452 1962 19,005 6,184 3,451 2,824 2,261 4.285 1963 13,523 8,228 3,383 158 1,754 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 June 14,228 8,633 3,615 150 1.830 1964—June 22,907 7,854 4,323 3,205 2,355 170 July 14,359 8,741 3,614 149 ,855 July 23,176 7,979 371 3,234 2,380 212 Aus 14,475 8,799 3,643 149 ,884 Aug 23,389 8,090 4,389 3,244 2,405 261 Sept . . .. 14,553 8,764 3,706 148 ,935 Sept 23,527 8,143 4,390 3,255 2,422 317 Oct 14,625 8,773 3,754 146 ,952 Oct 23.663 8.233 4,396 3,273 2,437 324 14,622 8,698 3,804 144 ,976 Nov 23,680 8,242 4.393 3,281 2,438 5.326 nee 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 8,684 3,943 140 2,030 1965—Jan 24,091 8,325 4,503 3,455 2,400 5,408 Fph 14,782 8,693 3,887 139 2,063 Feb 24,246 8,405 4,568 3,457 2,378 5,438 Mar 14,831 8,723 3,897 137 2,074 Mar 24,537 8,539 4,673 3,461 2,368 5,496 Apr 14,991 8,824 3,978 136 2,103 Apr 25.117 8,769 4.814 3,506 2,364 5,664 May 15,158 3,977 134 2,128 May 25,602 8,982 4,935 3,554 2,391 5,740 June 15,372 9,055 4.023 133 2,161 June 26,154 9,201 5,078 3,616 2,420 5,839 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) Singlepayment Charge accounts Other Repair loans Auto- con- and Per- End of period Total m pa o p b e il r e s g p u o a m p od e e r s r m iz l o o a d a ti n e o s r n n- l s o o a n n a s l End of period Total b C m c a o i n e a m r k l - - s t f O u i i n c n t t i i s h a o a t n e l i n - - r s s m t p D o a e r e r n e - t- t s1 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 S c e r r e v d i i c t e 1939 789 81 24 15 669 1941 957 122 36 14 785 1945 731 54 20 14 643 1939 2,719 625 162 236 1,178 518 1941 3,087 693 152 275 1,370 59? 1957 6,748 1.114 588 490 4,555 1945 3,203 674 72 290 1,322 845 1958 7,035 1J52 565 595 4,723 1959 8,024 1,400 681 698 5,244 1957 11,103 2,937 427 876 3,953 3J7 2,593 1958 11,487 3,156 All 907 3,808 345 2,800 1960 9,074 1 ,665 771 800 5,837 1959 12,297 3,582 547 958 3,753 393 3,064 1961 9,654 1,819 743 832 6,257 1962 10,583 2.111 751 815 6,906 1960 13,196 3,884 623 941 3,952 436 3.360 1963 11,859 2,394 835 870 7,760 1961 14,151 4,413 723 948 3,907 469 3,691 1964 13,285 2,699 997 933 8,656 1962 15,130 4.690 766 927 4,252 505 3,990 1963 16,145 5,047 912 895 4,456 520 4,315 1964—June 12,408 2,537 894 890 8,087 1964 17,413 5,469 1,004 909 4,756 635 4,640 July. 12,547 2,573 911 897 8,166 Aug. 12,719 2,610 927 912 8,270 1964—June.. 15.993 5,313 920 610 4,028 600 4,522 Sept. 12,857 2,633 941 923 8,360 July... 15,960 5,329 889 576 4,008 656 4,502 Oct.. 12,932 2,654 956 926 8,396 Aug... 16,014 5.335 964 588 3,960 683 4,484 Nov. 13,039 2.667 969 934 8,469 Sept... 16,049 5.361 993 624 3,928 671 4,472 Dec. 13,285 2,699 997 933 8,656 Oct.... 16,102 5,361 972 660 4,055 637 4,417 Nov... 16,286 5,377 ,035 703 4,065 626 4,480 1965—Jan.. 13,271 2,689 996 933 8,653 Dec... 17,413 5,469 ,004 909 4,756 635 4,640 Feb.. 13,324 2,700 ,006 929 8,689 Mar. 13,469 2.744 ,019 935 8,771 1965—Jan.... 16,803 5,409 ,003 793 4,280 651 4,667 Apr. 13,720 2,813 ,042 939 8,926 Feb.. . 16,378 5,436 ,006 660 3,857 637 4,782 May 13,934 2.868 ,058 959 9,049 Mar... 16,297 5,495 ,023 601 3,743 633 4.802 June 14,140 2,934 ,076 971 9,159 Apr... 16,680 5,572 ,034 626 3,942 642 4,864 May.. 16,948 5,628 1,058 647 4,142 664 4,809 June.. 17,097 5,707 ,069 627 4,218 683 4,793 NOTE.—Institutions represented are consumer finance cos., credit unions, industrial loan cos., mutual savings banks, savings and loan assns., and other lending institutions holding consumer instalment loans. 1 Includes mail-order houses. 2 Service station and misc. credit-card accounts and home-heating; See also NOTE to first table on previous page. oil accounts. See also NOTE to first table on previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1154 CONSUMER CREDIT AUGUST 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 u e m r er mode R rn ep iz a a ir ti o a n n d loans Personal loans Period S.A.I N.S.A. S.A.I N.S.A. S.A.I N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 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—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 5,529 5,519 2,017 1,984 1,570 1,540 186 210 1 756 1 785 Sept 5,617 5,393 2,024 1,830 1,588 1,592 186 200 1,819 1,771 Oct 5,507 5,552 1,924 1,999 1,582 I 657 180 191 1 821 1 705 Nov 5,456 5,323 1,858 1,727 1,631 1,672 175 175 1,792 1,749 Dec 5,816 6,767 2,043 1,992 1,719 2,404 180 161 1,874 2,210 1965—Jan 5,883 5,023 2,120 1,836 1,729 [ 440 181 134 1 853 1 613 Feb 6,022 5,007 2,228 1.915 1,760 1,338 175 132 1,859 1,622 Mar 6,030 6,173 2,229 2,382 1,698 I 619 186 176 1 917 1 996 Apr 6,189 6,480 2,272 2,496 1,645 1,614 189 190 2,083 2,180 May 6,105 6,189 2,215 2,384 1,728 1,682 190 214 1,972 1,909 June 6,139 6,780 2,250 2,608 1,717 .804 199 225 1,973 2,143 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 June 5,029 5,155 1.768 1,798 1.486 1.501 170 177 1.605 1,679 July . • . .. 5,058 5,165 1,781 1.844 1,448 460 171 177 I 658 1 684 Aug 5,094 4,960 1,789 ,757 1,496 ,430 172 170 1,637 1,603 Sept 5,104 5,002 1,802 ,786 1,491 ,469 172 173 1,639 1,574 5,097 5,172 1,788 ,871 1,456 481 167 175 686 1 645 Nov 5,155 5,064 ,818 ,783 1,509 ,463 174 168 ,654 1,650 5,256 5,455 1,864 L ,838 1,505 .532 177 175 1,710 1,910 1965 Jan 5,213 5,078 1,830 ,783 1,526 1,539 171 163 [ 686 1 593 Feb 5,381 4,986 1,897 ,746 1,632 1,558 172 159 1,680 1,523 5,393 5,748 1,924 1,062 1,567 1,659 171 182 ,731 1,845 Apr 5,445 5,465 ,936 ,944 ,487 1,502 190 191 ,832 1,828 May 5,435 5,253 ,940 ,890 ,564 1,509 172 169 ,759 1,685 June 5,537 5,729 ,960 >,032 ,587 1,611 179 185 ,811 1.901 Net change in 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 53 111 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—June 370 794 194 447 51 131 13 31 112 185 July 483 582 215 322 98 83 18 31 152 146 435 559 228 227 74 110 14 40 119 182 Sent 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 Feb 641 21 331 169 128 -220 3 -27 179 99 Mar. 637 425 305 320 131 -40 15 -6 186 151 Apr 744 1,015 336 552 158 112 -1 -1 251 352 May 670 936 275 494 164 173 18 45 213 224 June 602 1,051 290 576 130 193 20 40 162 242 1 Includes adjustments for differences in trading days. financing charges. Renewals and refinancing of loans, purchases and 2 Net changes in credit outstanding equal extensions less repayments sales of instalment paper, and certain other transactions may increase except in 1959, when the differences do not reflect the introduction of the amount of extensions and repayments without affecting the amount outstanding balances for Alaska and Hawaii. outstanding. For a description of the series in this and the following table see Jan. NOTE.—Estimates are based on accounting records and often include 1954 BULLETIN .pp. 9-17. Back data upon request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 CONSUMER CREDIT 1155 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p f a in n a i n es ce Ot i h n e s r t it 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—June 5,399 5,949 2,004 2,247 1,174 1,324 1.321 1,453 900 925 July 5,541 5,747 2,065 2,199 1,158 1,242 1,397 1,426 921 880 5,529 5,519 2,084 2,063 1,157 1,172 1,355 1,382 933 902 Sept 5,617 5,393 2^104 1,989 1,191 1,142 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 1,191 1,317 1,443 1,704 996 1,570 1965—Jan 5,883 5,023 2,224 2,020 1,175 1,027 1,459 1,219 1,025 757 Feb 6,022 5,007 2,262 1,974 1,281 1,060 1,427 1,217 1,052 756 Mar 6,030 6,173 2,286 2,414 1,276 1,292 1,487 1,551 981 916 Apr 6,189 6,480 2,362 2,591 1,243 1,284 1,607 ,653 977 952 May 6,105 6,189 2,343 2,459 1,242 1,239 ,494 ,487 1,026 1 ,004 June 6,139 6,780 2,370 2,687 1,237 1.393 ,504 ,654 1,028 1,046 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 I960 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 June . .... 5,029 5,155 1,845 1,899 1,102 1,123 1.223 1,283 859 850 July 5,058 5,165 1,857 1,930 1,097 1,111 1,267 1,287 837 837 5,094 4,960 1,889 1,850 1,087 1,056 1,237 1,210 881 844 Sept 5,104 5,002 1,860 1,851 1,118 i,097 1,266 1,210 860 844 Oct 5s097 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 1,255 1,258 881 877 Dec 5,256 5,455 1,944 1,913 1,129 1,177 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 Feb 5,381 4,986 1,956 1,819 1,157 1,075 1,286 1,164 982 928 Mar 5,393 5,748 1,972 2,123 1,136 1,243 1,328 1,406 957 976 Apr 5,445 5,465 2,002 2,011 1,108 ,124 1,396 1,402 939 928 May 5 435 5 253 2 020 1 974 1 113 1 072 1 329 1 273 973 934 June 5,537 5,729 2.048 2,135 1 ,137 1,179 1,377 1,448 975 967 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—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 Feb 641 21 306 155 124 -15 141 53 70 -172 Mar 637 425 314 291 140 49 159 145 24 -60 Apr 744 1,015 360 580 135 160 211 251 38 24 M!ay .... 670 936 323 485 129 167 165 214 53 70 June 602 1,051 322 552 100 214 127 206 53 79 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 ©f 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

1156 INDUSTRIAL PRODUCTION: S.A. AUGUST 1965 MARKET GROUPING (1957-59- 100) 19 p 5 r 7 o - - 59 P1964 1964 1965 Grouping por- avertion age June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' Mayr June Total index 100.00 132.0 131.6 132.9 133.8 134.0 131.2 135.0 137.7 138.4 139.1 140.5 140.9 141.4 142.4 Final products total. . 47.35 131.5 131.7 132.3 133.3 132.5 130.3 134.6 137.4 138.0 138.2 139.5 139.3 139.9 140.1 Consumer goods 32.31 131.3 131.5 132.1 133.1 132.0 129.2 133.6 137.0 137.9 137.7 139.3 138.4 138.1 137.9 Equipment, including defense.... 15.04 132.0 132.0 132.7 133.6 133.7 132.6 136.8 138.3 138.2 139.4 140.0 141.1 143.6 145.0 Materials 52.65 132.5 131.8 133.6 134.7 135.6 132.2 135.7 137.7 139.1 139.7 141.3 142.6 142 7 144.3 Consumer goods Automotive products 3.21 145.1 151.7 152.6 755.5 144.7 705.9 143.0 166.2 755.7 163.8 775.7 166.9 168.0 168.1 Autos 1.82 150.6 161.7 162.6 165.0 146.0 83.0 145.1 183.0 182.8 178.9 194.2 183.5 184.9 187.1 Auto parts and allied products 1.39 138.0 138.4 139.3 143.8 143.0 136.1 140.2 144.0 143.1 143.9 145.2 145.1 145.8 143.0 Home goods and apparel 10.00 131.2 130.0 131.2 131.9 131.9 133.8 136.3 137.6 139.9 140.3 141.4 140.8 141.0 140.5 4.59 139.9 137.8 139.7 140.1 139.8 142.4 146.7 148.0 150.8 151.9 153.1 151.4 151.8 151.0 Appliances, TV, and radios 1.81 134.2 131.0 131.1 133.3 136.8 139.0 143.2 143.1 144.9 146.6 148.5 147.3 147.5 146.9 1.33 139.7 136.9 136.6 140.0 143.9 146.1 149.6 145.9 149.2 150.8 152.3 151.7 150.9 151.4 TV and home radios .47 118.8 114.3 115.5 114.5 116.7 119.1 125.1 135.5 132.9 134.8 137.9 134.7 137.9 134.3 Furniture and rugs 1.26 142.4 141.9 144.7 144.2 141.0 145.5 148.3 149.7 150.6 152.6 152.7 152.0 154 4 153.9 Miscellaneous home goods . 1.52 144.7 142.4 145.9 144.8 142.3 143.7 149.7 152.3 157.9 157.5 158.9 155.8 154.7 153.5 Apparel, knit goods, and shoes 5.41 123.8 123.4 124.0 124.9 125.3 126.6 127.5 128.8 130.6 130.6 131.5 131.8 131.9 Consumer staples 19.10 128.9 128.9 129.1 130.0 129.9 130.7 130.5 131.8 132.3 732.0 133.1 132 4 131 6 131.4 Processed foods 8.43 119.9 119,4 118.4 118.7 118.7 120.0 122.0 122.5 122.3 121.2 122.1 122.1 121 .1 120.4 Beverages and tobacco 2.43 122.4 119.4 126.4 125.5 123.3 123.3 123.1 126.4 125.3 125.6 127.4 121.5 120 2 Drugs soap and toiletries 2.97 146.9 150.5 146.7 149.1 152.6 151.9 149.7 151.8 154.2 152.8 154.2 152.6 151.9 152.5 Newspapers' magazines, and books. 1.47 123.7 125.5 123.5 123.2 121.3 121.8 122.8 124.3 125.8 125.3 128.6 126.9 126.6 124.9 3.67 141.2 140.6 142.8 145.7 144.4 145.8 142.4 143.2 144.0 146.3 146.5 148.8 148 1 Fuel oil and gasoline ... 1.20 119.6 121.8 121.4 118.8 120.4 122.2 119.9 120.1 118.0 119.9 118.6 122.4 119.8 121.0 Residential utilities 2.46 151.7 149.8 153.2 158.8 156.1 157.4 153.4 154.5 156.7 159.2 160.0 161.7 162 0 Electricity 1.72 159.3 157.6 162.2 169.8 165.6 166.8 161.1 162.7 160.9 164.3 167.0 169.1 169.3 Gas .74 Equipment Business equipment 11.63 139.0 139.0 140.0 141.6 141.8 140.7 146.2 148.4 147.8 149.1 149.7 150.8 153.4 154.7 Industrial equipment 6.85 136.9 137.6 138.5 139.6 140.4 140.4 144.5 145.9 144.8 147.1 148.3 148.4 150 6 152.1 Commercial equipment 2.42 145.3 143.7 145.7 145.5 147.6 149.3 151.0 152.4 152.5 156.2 159.1 161.3 162.3 164.2 Freight and passenger equipment... 1.76 141.0 141.3 141.9 144.9 141.0 128.6 149.1 155.2 154.0 150.7 148.2 150 8 157 2 157 2 Farm equipment .61 132.4 129.1 127.9 139.9 136.0 145.1 138.0 140.5 144.3 139.6 137.8 135.8 138.9 Defense equipment 3.41 Materials 26.73 131.0 130.8 132.7 134.1 135.6 128.1 134.5 136.2 138.1 139.0 142.6 142.9 143.6 145.3 Consumer durable 3.43 145.4 148.1 150.2 167.0 153.1 113.2 146.7 155.6 159.6 164.9 166.3 163 4 162 4 169 7 7.84 134.2 133.3 133.8 135.7 137.1 137.2 138.9 141.3 142.6 143.8 146.9 147.5 148 7 149.9 Construction 9.17 124.4 122.8 125.7 125.7 125.8 123.8 126.6 127.3 128.5 130 8 133.5 130 5 131 4 131 4 Metal materials nee 6.29 128.7 127.3 130.2 130.6 128.4 130.9 134.5 139.3 141.9 140.5 142.5 141.8 140.5 142.9 Nondurable materials 25.92 134.0 132.9 134.6 135.2 135.7 136.3 137.0 139.3 740.7 140.3 140.5 142.4 141 8 143 2 Business supplies 9.11 127.1 124.9 126.9 127.1 125.9 128.7 128.9 132.6 133.9 135.6 134.2 135.1 134.1 135.3 3.03 127.7 123.8 125.0 125.6 125.4 131.6 132.1 135.1 136.2 137.9 129.6 137.3 132 0 H2 0 6.07 126.9 125.4 127.9 127.8 126.2 127.3 127.3 131.4 132.7 134.4 136.5 134 0 135 2 137 0 Nondurable materials nee 7.40 157.5 155.7 158.7 160.2 163.0 161.4 163.5 165.6 167.4 167.3 167.3 170.8 168.8 170.3 Business fuel and power 9.41 122.3 122.7 123.0 123.4 123.7 123.9 123.9 125.1 124.6 123.7 125.7 127 2 128 0 129 4 Mineral fuels 6.07 111.7 112.2 112.4 112.7 113.0 113.3 112.8 113.0 112.4 110.8 112.3 114.3 115.1 116.7 2.86 149.4 149.7 149.8 150.9 150.6 150.6 151.4 154.9 154.7 155.9 158.5 1*9 6 160 1 Electricity 2.32 149.4 150.6 150.5 151.5 151.0 150.4 150.5 154.6 154.7 156.1 159.1 160.2 160.7 1.03 142.7 143.5 143.9 145.1 147.1 144.1 147.4 149.7 148.7 150.9 154.9 155 8 156 0 Commercial and other 1.21 159.4 160.4 160.9 161.9 159.2 160.6 158.1 164.2 165.3 166.0 168.3 169.8 170.5 Gas .54 Supplementary groups of consumer goods Automotive and home goods 7.80 142.1 143.5 145.0 146.6 141.8 127.3 145.2 155.5 156.9 156.8 161.3 157.8 158.5 158.0 Apparel and staples 24.51 127.8 127.7 128.0 128.9 128.9 129.8 129.9 131.2 131.9 131.7 132.7 132.3 131.6 See NOTE on opposite page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 INDUSTRIAL PRODUCTION: S.A. 1157 INDUSTRY GROUPINGS (1957-59= 100) 957-59 1964 1965 pro- Grouping por- avertion age June July I Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r Mayr June | Total index. 100.00 132.0 131.6 132.9 133.8 134.0 131.2 135.0 137.7 138.4 139.1 140.5 140.9 141.4 142.4 Manufacturing, total., 86.45 132.9 132.4 133.9 754.5 754.9 757.7 755.0 759.7 140.0 740.5 742.7 742.5 742.5 143.8 Durable 48.07 133.2 133.2 135.0 135.7 135.2 129.4 136.7 140.6 141.9 142.6 144.7 145.4 146.5 148.0 Nondurable 38.38 132.4 131.5 132.5 133.1 134.4 134.5 135.2 137.3 137.6 138.1 138.8 138.4 137.8 138.5 Mining 8.23 110.9 111.4 110.9 111.9 111.9 112.0 112.7 112.3 112.1 111.5 112.5 113.0 114.0 114.9 Utilities 5.32 150.5 149.7 151.4 154.5 153.2 153.8 152.3 154.7 155.6 157.4 159.2 160.6 160.9 161.0 Durable manufactures Primary and fabricated metals 12,32 130.1 128.1 132.1 133.7 755.5 757.5 755.5 755.7 140.0 140.4 742.5 144.0 143.1 145.0 Primary metals 6.95 128.2 126.1 131.2 132.8 132.8 131.8 134.6 137.9 139.6 136.9 140.4 141.4 140.8 143.7 Iron and steel 5.45 125.6 125.2 130.4 132.2 129.1 130.3 133.4 135.7 137.1 137.0 139.5 141.2 139.7 143.3 Nonferrous metals and products. 1.50 137.6 132.8 135.9 133.0 138.5 133.9 140.3 150.9 148.0 149.0 151.0 153.6 156.4 149.4 Fabricated metal products 5.37 132.6 130.6 133.3 134.8 134.3 130.7 136.9 139.7 140.6 144.9 145.1 147,4 146.0 146.7 Structural metal parts 2.86 130.3 129.6 131.2 131.0 131.7 128.6 135.8 137.2 137.0 140.9 144.1 144.3 142.7 144.4 Machinery and related products.... 27.98 136.1 137.1 138.0 755.7 757.5 725.7 759.0 144.2 745.5 745.5 745.4 749.7 752.2 753.7 Machinery 14.80 141.0 140.1 141.9 142.8 144.1 144.7 147.4 149.3 150.4 152.3 153.6 155.2 156.9 158.6 Nonelectrical machinery 8.43 141.8 141.9 143.6 144.1 145.0 145.4 148.2 149.9 151.4 152.7 153.8 155.2 157.0 159.1 Electrical machinery 6.37 140.0 137.7 139.7 141.1 142.9 143.8 146.3 148 5 149.2 151.7 153.4 155.3 156.8 157.9 Transportation equipment 10.19 130.7 134.9 134.3 135.3 130.9 105.3 129.2 140,3 141.4 139.7 144.4 144.6 147.3 149.2 Motor vehicles and parts 4.68 150.1 158.3 158.6 160.9 150.1 96.2 143.9 167.4 169.1 167.7 176.4 173.2 175.5 177.8 Aircraft and other equipment... 5.26 112.4 113.4 111.7 111.5 112.7 110.8 114.5 115.0 115.5 114.1 115.3 118.6 121.7 122.9 Instruments and related products.. 1.71 136.4 134.8 136.4 137.4 138.6 137.6 140.2 142.0 142.7 145.3 146.9 145.5 147.0 149.7 Ordnance and accessories 1.28 Clay, glass, and lumber. 4.72 121.1 120.1 122.6 121.4 720.7 727 0 720.9 727.7 725.0 725.9 725.0 724.7 725.5 124.4 Clay, glass, and stone products. 2.99 126.0 126.6 126.4 125.6 127.0 126.9 127.7 130.2 132.6 131.8 129.2 129.9 130.3 131.0 Lumber and products 1.73 112.7 109.0 116.1 114. 109.7 110.8 109.2 105.5 111.9 115.6 120.5 114.2 117.1 113.0 Furniture and miscellaneous.. 3.05 138.4 138.0 755.5 759.0 138.4 141,7 143.4 145.4 745.2 747.5 745.4 749.5 750.7 150.5 Furniture and fixtures 1.54 143.4 142.8 143,2 144.4 144.1 147.4 149.3 151,5 150.6 154.3 154.3 155.6 156.5 157.4 Miscellaneous manufactures. 1.51 133.3 133.2 133.8 133.4 132.6 135.9 137.4 139.1 139.6 140.8 142.4 143.2 143.6 143.4 Nondurable manufactures Textiles, apparel, and leather 7.60 124.8 122.9 124.9 126.0 126.8 128,4 750.2 757.4 752.7 132.8 752.7 755.5 133.4 133.7 Textile mill products 2.90 122.8 119.2 121.5 123.5 125.8 127.5 129.6 130.9 132.1 131.4 130.9 132.2 131.6 132.0 Apparel products 3.59 134.0 133.8 134.4 135.1 135.8 137.2 139.1 140.6 142.2 143.7 144.0 143.6 143.6 Leather and products 1.11 100.7 97.3 103.5 103.1 100.3 102.4 103.2 103.3 103.6 101.2 700.5 105.0 105.0 Paper and printing 8.17 127.5 126.6 725.0 727.9 725.2 729.2 725.0 75/7 757.2 757.5 752.9 755.2 134.2 133.9 Paper and products. 3.43 133.4 130.1 132.8 132.8 135.5 137.0 133.8 140.2 137.7 757.5 759.0 140.0 140.9 139.4 Printing and publishing. 4.74 123.2 124.1 124.5 124.3 123.0 123,6 123.9 125.6 126.6 127.7 128.5 128.3 129.3 129.9 Newspapers , 1.53 117.0 117.2 120.0 118.3 115.9 116.3 117.5 119.6 120.7 120.9 121.0 120.7 121.5 124.7 Chemicals, petroleum, and rubber. 11.54 152.2 152.1 152.3 755.5 755.9 155.4 755.5 755,5 755.5 750.4 752.0 750.5 759.9 161.8 Chemicals and products , 7.58 159.4 159.6 158.7 160.8 165.0 162.5 163.0 166.5 166.9 167.8 169.5 169.2 167.3 169.4 Industrial chemicals 3.84 178.0 176.3 177.1 178.7 184.9 179,9 182.6 188 2 186.3 188.2 190.8 191.6 191.6 Petroleum products 1.97 121.0 122.1 124.6 121.2 120.4 122.9 121.6 120.6 119.0 121.5 122.2 121.5 122.9 123.0 Rubber and plastics products 1.99 155.7 153.4 155.2 158.2 162.4 161.0 160.5 164.0 167.2 171.1 172.6 167.7 168.1 Foods, beverages, and tobacco. 11.07 120.6 119.5 720.5 720.5 720.0 120.9 722 7 725.7 725.5 725.2 725.5 722.4 720.5 120.8 Foods and beverages 10.25 120.6 119.6 120.0 120.4 120.0 120,7 122.8 123.5 123.6 123.2 123.0 122.5 120.8 121.2 Food manufactures 8.64 120.2 119.5 118.9 119.1 119.1 120.2 122.6 122.9 123.0 122.5 122.2 122.6 120.6 121.0 Beverages 1.61 123.2 120.1 125.8 127.6 124.6 123.3 124.1 126.9 126.9 126.7 127.5 121.8 122.0 Tobacco products .82 120.8 118.1 127.5 121.4 120.6 123.3 121.0 125.4 122.2 123.5 127.2 120.9 116.5 Mining Coal, oil, and gas 6.80 109.4 709.5 770.7 770.7 777.0 7/0.5 770.7 770.7 709.7 709.7 770.0 777.5 772./ 113.1 Coal 1.16 104.3 105. 105.0 107.9 105.1 109.2 108.7 107.2 107.7 103.2 103.1 107.9 113.0 U7.2 Crude oil and natural gas 5.64 110.4 110.8 111.1 111.3 112.3 111.1 110.4 110.7 110.1 110.3 111.4 112.0 111.9 112.2 Oil and gas extraction 4.91 113.4 113.8 114.2 113.8 114.9 114.3 113.8 114.3 113.6 112.6 114.5 115.8 115.6 116.5 Crude oil 4.25 109.8 110.2 110.3 109,8 111.1 110.8 110,2 110.9 109.8 108.6 110.5 111.4 111.3 112.5 Gas and gas liquids .66 136.5 137.1 139.0 139.6 139.1 136.8 136,5 133.8 134.6 Oil and gas drilling .73 90.1 90.1 90.5 94.0 94.4 89.2 87.3 86.4 86.9 *94.'7 90.2 *86!6 Metal, stone, and earth minerals. 1.43 118.1 119.2 774.9 777.7 775.7 775.0 725.5 722.7 725.5 725.7 124.3 727.4 122.9 123.9 Metal mining .61 117.3 119.2 107.7 112.2 111.3 115.7 127.1 121 8 126.7 123.4 124.6 125.8 121.6 121.7 Stone and earth minerals .82 118.7 119.2 120.2 121.7 119.6 119.7 123.9 123.4 120.8 122.9 124.1 118.2 123.9 125.6 Utilities Electric. 4.04 153.6 153.6 155.5 H9.3 157.2 K7.4 H5 0 1^8.1 157.3 159.6 162.4 164.0 164.3 Gas 1.28 140.7! 143.2 145.0 146.0, 147. 148.3 148.9, 149.6... 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

1158 INDUSTRIAL PRODUCTION: N.S.A. AUGUST 1965 MARKET GROUPINGS (1957-59 = 100) 957-59 1964 pro- ^1964 Grouping por- avertion age June ! July Au* Sept. j Oct.Nov. Dec. Jan. Feb. Mar. j Apr.r j May' June Total index 100.00 132.0 133.9 f127.6 132.9 136.5 135.0135.9 135.2 136.! 1399..o0l! 141.5 141.5 142.5 144.7 Final products, total 47.35 131.5 133.3 127.5 131.4 136.1 134.9 135.1 134.6 136.5 735./ 140.6 138.4 139.5 142.3 Consumer goods 32.31 131.3 133.2 126.3 131.5 137.1 136.0 134.8 132.6 135.7 137 4 1'A4n 0.'1 *1^3^6 ."71 137.3 140.2 Equipment, including defense 15.04 132.0 133.5 130.1 131.1 134.0 132.4 135.7 139.0 138. 139.8 141.61 142.0! 144.2 146.6 Materials 52.65 132.5 134.5 127.8 134.2 136.8 135.0 136.6 135. 137.0 139.7 142.4 144.3 145.1 147.0 Consumer goods Automotive products 3.21 145.1 162.7 131.1\ 89.5 139.1 114.7\ 153.4 169.51 175.5 173.9 182.91 176.7 178.8 180.4 Autos 1.8: 150.6 180.3 130.11 46.2 132.9 95.4 165.4 192.2 201.1 196.8 213.6 2C0.0 203.4 208.6 Auto parts and allied products. . . . 1.39 138.0 139.4 132.4 146.7 147.2 140.2 137.6 139.7 141.7 143.81 142.4 146.0 146.3 143.2 Home goods and apparel 10.00 131.2 737.2 120.0 134.2 135.1 141.6 138.3 129.2 134.1 143.s\ 146.()\ 141.3] 141.9 143.2 Home goods 4.59 139.9 140.5 126.8 136.4 147.4 150.2 151.8 145.7 142.9 151.6 156.3 151.71 152.2 154.5 Appliances, TV, and radios 1.81 134.2 136.8 110.4 120.2 144.1 145.8 148.9 135.2 136. 153. 160.5 151.9 152.8 154.5 Appliances 1.33 139.7 145.3 118.8 122.0 147.3 143.2 150.8 141.1 142.5 159.8 170.8 161.5 163.0 164.0 TV and home radios .47 118.8 112.9 86.6 115.1 134.8 153.1 143.5 118.4 120.9 137.0 131.4 124.6 124.1 127.7 Furniture and rugs 1.26 142.4 140.2 137.0 146.1 147.1 152.3 152.3 154.5 147.3 150.0 150.9! 149.3 148.5 152.1 Miscellaneous home goods 1.52 144.7 145.2 137.9 147.7 151.6 153.8 154.9 150.8 146.5 150.4! 155.71 153.5 154.7 156.6 Apparel, knit goods, and shoes. . . 5.41 123.8 123.4 114.1 132.4 124.7 134.2 126.9 115.3 126.7 136.5J 137.4 132.5 133.2 Consumer staples 19.10 128.9 129.. 128.8 137.2 137.9 136. 7 129.8 128.1 129.8 128.0\ 129.8 127.6\ 725.0 131.9 Processed foods 8.43 119.9 116.9 317.8 129.4 135.2 134.3 125.1 118.7 115.6 112.0 113.8 112.7 114.4 118.5 Beverages and tobacco 2.43 122.4 136.5 132.0 136.1 124.9 129.5 116.3 108.9 110.2 114.41 123.9 123.9 130.5 Drugs, soap, and toiletries 2.97 146.9 153.8 140.8 152.4 354.1 154.9 150.1 148.8 153.0 152.3J 155.0 151.1 152.1 155.9 Newspapers, magazines, and books 1.47 123.7 124.5 121.6 124.8 124.7 123.5 122.8 124.8 124.5 124.4j 128.3| 125.9 125.6 123.9 Consumer fuel and lighting 3.67 141.2 134.21 145.0 148.4 144.7 137.G 135.4 146.8 158.2 154.9 150.2! 145.1 138.5 Fuel oil and gasoline 1.2C 119.6 120.3| 123.5 120.41 119.0 119.2i 122.9 123.0 123.0 117.4! 116.0 115.8 119.7 Residential utilities 2.4f. 151.7 Electricity 1.72 159.3 145.0 165.4; 173.2! 166.4 150.1 146.6! 168.4 187.6| 180.41 175.7; 165.71 151.5 Gas .74 Equipment Business equipment 11.63 139.0 1412 137./ 138.7\ 142.2 140.7 J44.ll 148.3 147.3 1497 151.9 1522 154.4 757.2 Industrial equipment 6.85 136.9 138.8 137.1 139.21 141.7 139.6 142.5| 146.8 145.1 146.4 148.4 148.4 150.8 153.5 Commercial equipment 2.42 145.3 144. 1142.8 145.81 149.8 151.8 152. 155.0 152.7 1551 157.7 1582 160.4 164.7 Freight and passenger equipment. 1.76 !41.0 147.0 136.2 136.2J 139.Ol 128.6 146.1 149. 149.4 1522 154.9 1568 161.9 163.5 Farm equipment .61 132.4 139.9 115.g 111.9; 125.9J 133.5 122.1 134.4 145.0 1578 158.9 1576 149.2 Defense equipment.... 3.41 Materials Durable goods materials 26.7. 131.0 134.9 727.7! 132.61 735.31 73/.3! 135.4' 135.0\ 135.7 138.7 142.9\ 144.4 147. l\ 149.6 Consumer durable 3.43 145.4 149.6 135.21 140.3! 153.ll 116.0 151.1s 163.41 165.2 167.4 171.3 168.3 368.9 171.4 Equipment 7.84 134.2 134.6 129.7 131.6; 135.7 136.8 139.0! 143.4 143.9 145.1 148.5; 149.1 149.7 151 .4 Construction 124.4 132.0 19 134 133.3 130.6 126.3! 118.4 116.0 120.3 125.51 329.2 136.0 141.3 Metal materials n.e.c 6.29 128.7 131.4 118.5 126.8| 132.3 134.0 135.6! 133.2 138.2 141 .8 145.9; 147.5 148.2 147.5 Nondurable materials 25.92 134.0 134.1 127.8 735.9! 737.3 138.9 735.0 136.6 138.3 140.8 141.9\ 144.3 143.1 144.3 Business supplies 9.11 127.1 126.9 120.2 129.2! 130.3 134.3 130.1 127.2 128.7 133.3 134.2 138.7 136.3 137.6 Containers 3.03 127.7 130.0 125.0 138.2 133.6. 138.2 124.8 117.5 128.0 135.1 129.6 141.4 133.3 138.6 General business supplies... 6.0' 126.9 125.4 117.7 124.6 128.7 132.4 132.8 132.1 129.0 132.4 136.5 137.4 137.9 137.0 Nondurable materials n.e.c. . 7.40 157.5 158.0 147.3 157.8 161.4 162.2 165.1 162.3 166.6 170.6 171.5 174 173.0 172.9 Business fuel and power 9.41 122.3 122.2 119.8 125.2! 125.0 124.9 124.2 125.5 125.4 124.7 126.11 126.2 126.0 128.3 Mineral fuels 6.07 111.7 111.0 104.6 111.3! 111.8 114.1 114.2 114.7 114.4 114.2 114.9I 115.6 113.9 114.7 Nonresidential utilities 2.86 149.4 Electricity 2.32 149.4 152. 158.9 162.9 159.9 152.6 147.7 151.4 152.3 150.0 153.6! 152.7 156.3 General industrial 1.03 142.7 144. 8 143.9 148.0 149.3 147.3 147.4 148.2 148.0 147.0 153.4- 153.8 156.8 Commercial and other. 1 .21 159.4 163.0 377.01 181.2 174.3 162.2 152.7 159.3 161.2 157.7 159.2! 157.11 161.5 Gas 54 Supplementary groups of consumer goods Automotive and home goods.. . 7.80 142.1 149.6 128.6 117.1 144.0 135.6 152.5 155.5 156.3 160.8 167.2 162.0 163.21 165.2 Apparel and staples 24.51 127.8 127.9 125.6 136.1 135.0 136.2 129.1 125.3 129.1 129.9 131.5 128.7 129.1 See NOTE on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 INDUSTRIAL PRODUCTION: N.S.A. 1159 INDUSTRY GROUPINGS (1957-59= 100) Grouping 9 p p 5 r o 7 o r - - - 59 ^ a 1 v 9 e 6 r- 4 1964 1965 tion June July Aug. Sept. Oct. Dec. Jan. Feb. Mar. Apr.' May' June Total index. 100.00 132.0 133.9 127.6 132.9 136.5 135.0 135.9 135.2 136.8 139.0 141.5 141.5 142.5 144.7 Manufacturing, total 86.45 132.9 135.2 127.9 133.1 137.4 136.0 137.4 136.2 137.6 140.4 143.3 143.3 144.5 146.7 Durable 48.07 133.2 136.4 128.8 129.6 136.8 132.2 138.6 140.4 140.6 143.4 147.0 147.4 149.0 151.6 Nondurable 38.38 132.4 133.6 126.7 137.4 138.2 140.8 135.8 131.0 133.8 136.5 138.7 138.2 138.7 140.6 Mining 8.23 110.9 112.6 107.0 113.0 113.3 114.5 113.3 111.9 111.0 110.8 111.1 113.0 114.4 115.6 Utilities 5.32 150.5 Durable manufactures Primary and fabricated metals 12.32 130.1 131.2 123.5 131.5 135.4 133.8 136.7 735.7 139.3 142.7 145.8 148.4 146.4 147.9 Primary metals 128.2 128.6 117.4 125.9 131.3 133.1 135.9 133. 141.0 144.7 149.1 150.9 147.3 146.6 Iron and steel 125.6 125.2 116.1 124.3 129.1 132.3 134.7 132.3 139.8 142.9 146.5 148.3 142.5 143.3 Nonferrous metals and products. 137.6 141.0 122.3 131.7 139.5 136.4 140.3 139.4 145.5 151.2 158.5 160.4 164.7 158.7 Fabricated metal products 132.6 134.5 131.3 138.8 140.7 134.6 137.7 139.0 137.2 140.1 141.6 145.3 145.3 149.6 Structural metal parts 130.3 132.2 131.2 135.6 137.0 132.5 137.8 138.6 134.3 135.3 138.5 140.0 142.0 147.3 Machinery and related products 27.98 136.1 139.8 130.9 126. 137.7 130.2 141.4 745.7 146.8 148.7 152.7 151.4 153.6 755.7 Machinery 14.80 141.0 142.6 135.3 138.5 145.3 145.3 147.5 150.6 150.1 154.4 157.9 157.2 158.4 161.2 Nonelectrical machinery 8.43 141.8 145.3 140.0 138. 143.1 142.8 145.1 150.9 152.2 155.4 159.6 159.9 160.9 162.9 Electrical machinery 6.37 140.0 139.0 129.1 138.0 148.1 148.7 150.8 150 147.3 153.1 155.5 153.6 155.1 158.9 Transportation equipment 10.19 130.7 138.4 125.1 109.1 128.5 108.3 135.0 144 146.1 144.8 150.6 148.3 151.9 153.6 Motor vehicles and parts 4.68 150.1 167.4 142.0 106.7 145.8 102.3 155.0 174.9 178.9 177.3 187.7 179.8 185.0 188.9 Aircraft and other equipment. . . 5.26 112.4 111.8 109.0 109.5 112.2 111.4 116.2 117 116.7 115.5 117.01 119.2 121.2 121.2 Instruments and related products. . 1.71 136.4 136.1 135.0 138.5 140.1 139.1 142.7 143.7 141.7 143.1 144.7 143.3 145.5 151.2 Ordnance and accessories 1.28 Clay, glass, and lumber 4.7. 121.1 129.2 126.0 132.4 129.9 128.2 121.1 110.5 108.3 114.4 117.3 122.9 130.6 735.2 Clay, glass, and stone products. 2.99 126.0 134.6 133.4 136.3 134.6 134.5 129.6 120.4 114.0 116.4 118.9 129.3 136.2 141.5 Lumber and products 1.73 112.7 119.9 113.2 125.5 121. 117.4 106.5 93.4 98.5 111.0 114.5 111.9 121.0 124.3 Furniture and miscellaneous 3.05 138.4 138.3 135.5 143.4 144.8 149.2 148.2 146.7 139.5 142.9 145.6 145.2 146.7 750.7 Furniture and fixtures 1.54 143.4 142.5 141.8 149.2 149.6 153.0 152.0 154.2 147.6 150.4 152.4 151.4 151.8 157.1 Miscellaneous manufactures 1.51 133.3 133.9 129.1 137.4 139.9 145.4 144.3 139.1 131.2 135.2 138.8 138.9 141.4 144.1 Nondurable manufactures Textiles, apparel, and leather. . . 7.60 124.8 125.1 113.0 131.4 126.0 132.3 129.4 119.3 130.6 138.2 138.3 735.5 735.0 135.4 Textile mill products 2.90 122.8 124.6 110.3 126.6 126.4 127.5 130.2 121.7 131.4 134.0 133.5 135.5 137.5 136.6 Apparel products 3.59 134.0 133.8 121.6 141.9 133.1 144.7 137.7 124.4 138.6 150.9 151.9 145.0 144.3 Leather and products 1.11 100.7 98.3 92.6 109.8 101.8 105.0 101.1 96.4 103.1 108.2 106.8 105.0 105.8 Paper and printing 5.77 127.5 127.3 120.9 127.8 129.4 134.9 130.9 727.5 128.6 131.8 134.6 735.7 735.2 134.7 Paper and products 3.43 133.4 132.7 124.8 137.3 135.5 145.9 134.5 126.6 137.0 140.9 141.8 144.2 141.6 142.2 Printing and publishing 4.74 123. 123.4 118.2 121.0 124. 126.9 128.4 128.2 122.6 125.3 129.5 130.2 130.5 129.2 Newspapers 1.53 117.0 117.8 104.4 107.1 116.7 122.6 128.7 123. 111.2 116.9 123.4 129.3 129.5 125.3 Chemicals, petroleum, and rubber 11.54 152. 155.4 145.3 154.7 157.8 157.8 155.2 154.6 157.6 161.3 163.2 163.4 752.5 765.3 Chemicals and products 159.4 163.0 152.9 160.9 164.5 163.6 162.6 162.6 164.9 168.2 171.4 173.2 171.7 173.1 Industrial chemicals 178.0 178.1 170.9 176.6 183.1 180.8 184.1 186.3 185.4 190.1 192.7 196.4 192.7 Petroleum products 121.0 125.8 128.3 127.3 125.2 123.5 119.8 118.8 117.2 119.7 117.9 116.6 121.1 \26J Rubber and plastics products. . 155.7 155.7 133.5 158.2 164.5 170.0 162.1 159.9 169.7 176.2 176.4 172.9 170.6 Foods, beverages, and tobacco... 11.07 120.6 121.3 120.8 130.5 132.7 133.4 123.6 117.0 114.9 113.1 116.5 775.4 775.7 722.9 Foods and beverages 10.2: 120.6 120.9 121.5 130.5 133.2 133.4 123.6 118. 114.4 112.3 115.7 115.0 117.9 122.8 Food manufactures 8.64 120. 117.0 117.7 129.0 134.9 134.6 125.7 119. 116. 112.7 114.3 113.0 114.6 118.5 Beverages 1.61 123.2 141.7 141.8 138.4 124.6 127.0 112.7 112.4 104.7 110.1 123.2 125.5 135.5 Tobacco products 120.8 126.4 112.8 131.4 125.3 134.3 123.4 102.1 120.9 122.9 125.3 120.7 120.7 Mining Coal, oil, and gas 6.80 109.4 108.6 103. 109. 110. 111.7 111.6 112. 112.0 111.9 111.5 772.0 770.5 7/7.7 Coal 1.16 104.3 108.4 77. 113.5 111. 119.0 113.2 105.3 105. 104.4 103.9 108.7 114. 116.6 Crude oil and natural gas 5.64 110.4 108.6 108.5 108.9 109. 110.2 111.3 113.5 113.4 113.4 113.1 112.6 109.9 110.0 Oil and gas extraction 4.91 113.4 111.6 111.1 110.8 111.9 113.0 114.5 116.9 116.5 116.5 117.5 117.2 113.8 114.2 Crude oil 4.25 109.8 109.1 108.1 107.6 108. 109.7 110.2 112.0 111.4 111.9 112.7 113.2 110.2 111.4 Gas and gas liquids .66 136 127.6 130 131.1 131.3 133 141.6 144.9 145.6 Oil and gas drilling .73 90.1 91. 96.: 96.4 91.4 3.5 90.5 92.6 92.4 83.6 81.5 83.6 81.2 Metal, stone, and earth minerals. 1.43 118.1 131.8 125.0 128.8 128.4 128.0 121.6 111.1 106.2 705.5 709.7 777.7 732.4 735.9 Metal mining .61 117.3 134.7 115.2 121. 125.8 123.8 116.9 109.6 111.5 111.1 110.9 117.0 133.8 137.5 Stone and earth minerals 118. 129.6 132.3 134.5 130.4 131.1 125.1 112.3 102.2 101.9 107.7 118.2 131.3 136.5 Utilities Electric.. 4.04 153.6 149.3 161.6 167.3 162.6 151.5 147.3i 158.6 167.3 163.0 363.0 158.2 154.2 Gas 1.28 140 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

1160 BUSINESS ACTIVITY; CONSTRUCTION AUGUST 1965 SELECTED BUSINESS INDEXES (1957-59=100) Industrial production Manu- Prices 4 facturing 2 Nonag- Major market groupings Con- ricul- Period Total Final C p o r n o - du E c q ts uip- M ria a l t s e- Ma g j r o o r M u i p i n n i d n - u gs stry Util- t s c r t t a i o r o c n u n t - - s m T p t o e e u l m t n o r a t a y l - — l - i p m E lo m en y - t - P ro a l y ls - F l r i c o e n a a i g r g d s - h - t S R T a e o le t t a s a i l l 3 s C u o m n e - r W m c s o o a h m l d o e i l - t e y - Total sumer ment Mfg. ing ities goods 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 1960 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—June 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 135.0 134.6 133.6 136.8 135.7 136.0 112.7 152.3 143 112.1 103.2 127.9 98.5 127 108.7 100.7 Dec 137.7 137.4 137.0 138.3 137.7 139.1 112.3 154.7 154 112.7 104.0 130.9 99.1 133 108.8 100.7 1965—Jan 138.4 138.0 137.9 138.2 139.1 140.0 112.1 155.6 137 113.0 104.5 132.8 100.4 134 108.9 101.0 Feb 139.1 138.2 137.7 139.4 139.7 140.6 111.5 157.4 140 113.6 105.0 133.5 96.4 136 108.9 101.2 Mar 140.5 139.5 139.3 140.0 141.3 142.1 '112.5 159.2 141 114.2 105.6 135.1 98.1 133 109.0 101.3 Apr 140.9 139.3 '138.4 141.1 r142.6 142.3 113.0 160.6 152 114.1 105.7 133.6 98.6 134 109.3 101.7 May 141.4 139.9 M38.1 '143.6 M42.7 142.6 -114.0 160.9 145 114.5 105.8 134.7 100.5 137 109.6 102.1 June 142.4 140.1 137.9 145.0 144.3 143.8 114.9 161.0 139 114.9 106.6 135.5 93.8 136 110.1 102.8 July?5 143.6 140.8 137.9 147.0 146.5 145.1 116.4 161.0 115.2 107.3 137.0 95.1 139 102.9 1 Employees only; excludes personnel in the armed forces. value of total construction contracts, including residential, nonresidential, 2 Production workers only. and heavy engineering; does not include data for Alaska and Hawaii. 3 Federal Reserve index based on Census Bureau figures. Employment and payrolls: Based on Bureau of Labor Statistics data; 4 Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. NOTE.—Data are seasonally adjusted unless otherwise noted. Freight carloadings: Based on data from Association of American Construction contracts: F. W. Dodge Co. monthly index of dollar Railroads. CONSTRUCTION CONTRACTS (In millions of dollars) 1964 1965 Type of ownership and type of construction 1963 1964 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Apr. May Junel Total construction 45,546 47,330 4,507 4,604 3,761 3,763 4,033 3,758 3,598 3,131 3,226 4,224 4,770 4,864 4,625 By type of ownership: Public 14,653 15,374 1.491 1,619 1.102 1,124 1,311 1,174 1,230 1,105 1,113 1,356 1,539 1,517 1.553 Private 30,893 31,956 3,016 2,985 2,660 2,639 2,722 2,584 2,368 2,026 2,113 2,867 3,231 3,348 3,072 By type of contraction: Residential building 20.502 20,565 1,997 2,001 1.679 1,717 1,703 1,482 1,306 ,275 1,300 1,877 2.139 2.074 Nonresidential building 14,377 15,522 1,403 1,549 1,276 1.229 1,429 1,264 1,299 ,156 1.062 1,384 1,546 1,775 Nonbuilding 10,667 11,244 1,108 1,054 807 817 902 1,012 994 700 '864 962 1,086 1,015 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

AUGUST 1965 CONSTRUCTION 1161 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Period Total Total d N f e r a e n o r s t m n i i - a - l Total In tr d i u a B l s u - sine m C s e s o r m cia - l P u u ti b li l t i y c O n d r t e t o e i h s a n n i l e - - - r Total M ta i r l y i- H w ig ay h- S w a e a n w t d e e r r Other 1956 47,601 34,869 20,178 11,076 3,084 3,631 4,361 3,615 12,732 ,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 ,287 4,934 ,344 6,494 1958 50,153 34,696 19,789 10,659 2,382 3,589 4,688 4,248 15,457 ,402 5,545 ,387 7,123 1959 i 55,305 39,235 24,251 10,557 2,106 3,930 4,521 4,427 16,070 ,465 5,761 ,467 7,377 1960 53,941 38,078 21,706 11,652 2,851 4,180 4,621 4,720 15,863 ,366 5,437 ,487 7,573 1961 55,447 38,299 21,680 11,789 2,780 4,674 4,335 4,830 17,148 ,371 5,854 ,581 8,342 1962' 59,576 41,707 24,292 12,234 2,949 4,955 4,330 5,181 17,869 ,266 6,365 ,754 8,484 1963- 62,755 43,859 25,843 12,758 2,962 5,200 4,596 5,258 18,896 ,227 6,948 ,966 8,755 1964 r 65,817 45,891 26,507 13,809 3,303 5,656 4,850 5,575 19,926 968 7,182 2,298 9,478 1964r—July 66,384 46,088 26,551 13,822 3,280 5,642 4,900 715 20,296 875 7,727 2,344 9,350 Aug 65,480 45,508 26,252 13,615 3,361 5,493 4,761 641 19,972 988 7,262 2,290 9,432 Sept 65,968 45,571 25,934 14,058 3,400 5,587 5,071 579 20,397 1,068 7,414 2,236 9,679 Oct 64,861 45,294 25,685 14,088 3,445 5,653 4,990 521 19,567 1,097 6,739 2,195 9,536 Nov 65,153 45,368 25,638 14,242 3,521 5,709 5,012 488 19,785 1,033 7,087 2,189 9,426 Dec 66,178 45,684 25,953 14,416 3,610 5,641 5,165 315 20,494 756 7,583 2,187 9,968 1965—Jan.' 66,055 46,333 26,676 14,278 3,792 5,662 4,824 5,379 19,722 785 7,010 2,167 9,769 Feb.' 66,881 46,846 26,713 14,647 3,871 5,701 5,075 5,486 20,035 776 7,151 2,164 9,944 Mar.r 67,598 47,171 26,602 15,044 3,934 5,903 5,207 5,525 20,427 912 7,541 2,110 9,864 Apr 67,590 47,544 26,675 15,267 3,997 6,089 5,181 5,602 20,046 888 7,396 2,074 9,688 May 67,572 47,982 27,070 15,300 4,012 6,254 5.034 5,612 19,590 887 6,862 2,042 9,799 Junep 69,024 48,628 27,308 15,729 4,040 6,574 5,115 5,591 20,396 7,580 2,014 69,198 48,904 27,333 16,016 4,076 6,841 5,099 5,555 20,294 1,983 1 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 Depts. of Commerce and Labor. NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership S.A. Government- (private only) underwritten Period Total N fa o r n m - Total p M o e li t t r a o n - p m N o e l o t i n r ta o - n - Total fam 1- il P y rivat f e am 2- ily f M am ul i t l i y - Public Total FHA VA 1955 1.646 ,627 19 670 277 393 1956 349 325 24 465 195 271 1957 .224 175 49 322 193 128 1958 382 314 68 439 337 102 1959 . . ,554 1,077 477 ,517 1.234 56 227 37 458 349 109 I960 .296 889 407 ,252 995 44 '213 44 336 261 75 1961 ... . I', 365 948 417 ,313 975 44 295 52 328 244 83 1962 1,492 1,054 439 ,463 992 49 422 30 339 261 78 1963 ,641 1,151 490 ,609 1,021 53 535 32 292 221 71 1964 591 1,119 472 557 972 54 532 33 264 205 59 1964 June .621 1,593 165 118 46 159 102 5 52 6 25 19 6 July ,500 1,475 146 103 43 144 92 5 47 3 26 20 6 Aug ,513 ,489 146 98 48 142 90 4 48 3 23 18 5 Sept ,445 1,422 127 91 37 124 79 4 41 3 23 18 5 Oct ,522 1,495 146 101 45 144 92 5 47 2 24 19 Nov ,505 1,480 115 78 37 112 69 4 39 3 21 16 5 Dec .610 1,575 98 70 28 97 59 3 35 2 17 13 4 1965 Jan ,442 1,417 86 59 27 82 52 3 27 4 17 13 4 Feb ,482 1,468 88 63 25 85 51 3 31 2 16 12 4 Mar ,489 ,465 125 91 34 121 77 4 40 4 20 16 4 Apr ,552 1,532 155 103 52 152 100 5 48 3 22 17 5 M^ay . . V .516 V1,501 J'162 110 52 P158 102 5 50 ^5 24 19 5 June V ,531 V1,504 "157 110 57 ^152 101 5 46 P5 25 19 5 NOTE.—Beginning with 1959, Census Bureau series includes both farm available by area or type of structure. Data from Federal Housing and nonfarm series developed initially by the Bureau of Labor Statistics. Admin, and Veterans Admin, represent units started, based on field office Series before 1959 reflect recent Census Bureau revisions which are not reports of first compliance inspections. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1162 EMPLOYMENT AUGUST 1965 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force, S.A. Unemploy- Period i p n T o s o N t p t i a t u . u S l l t a . n i A t o o i . o n n n a - l l N ab N o o t . r S in . f A o th . rc e e T l f S a o o . b r A t c o a e . r l Total In E m no p n lo a y g e ri d - i In U pl n o e y m ed - (pe m r S r a . e t A c e n e . 2 t nt) Total cultural industries agriculture 1959 . . 123,366 51,420 71,946 69,394 65,581 59,745 5,836 3,813 5.5 1960 3 125,368 52,242 73,126 70,612 66,681 60,958 5,723 3,931 5.6 1961 127,852 53,677 74,175 71,603 66,796 61,333 5,463 4,806 6.7 1962 130,081 55,400 74,681 71,854 67,846 62,657 5,190 4,007 5.6 1963 132,125 56,412 75,712 72,975 68,809 63,863 4,946 4,166 5.7 1964 134,143 57,172 76,971 74,233 70,357 65,596 4,761 3,876 5.2 1964—July 134,216 55,258 76,928 74,188 70,496 65,632 4,864 3,692 5.0 Aug 134,400 55,891 77,006 74,255 70,458 65,641 4,817 3,797 5.1 Sept 134,586 57,721 77,023 74,280 70,465 65,650 4,815 3,815 5.1 Oct 134,772 57,661 76,996 74,259 70,379 65,658 4,721 3,880 5.2 Nov 134,952 58,055 77,140 74,409 70,755 66,084 4,671 3,654 4.9 Dec 135,135 58,568 77,432 74,706 71,004 66,463 4,541 3,702 5.0 1965—Jan 135,302 59,603 77,621 74,914 71,284 66,771 4,513 3,630 4.8 Feb 135,469 59,051 77,755 75,051 71,304 66,709 4,595 3,747 5.0 Mar 135,651 59,039 77,647 74,944 71,440 66,890 4,550 3,504 4.7 Apr 135,812 58,504 78,063 75,377 71,717 66,874 4,843 3,660 4.9 May 135,982 57,556 78,127 75,443 71,937 66,979 4,958 3,506 4.6 June 136,160 55,477 78,356 75,676 72,118 67,459 4,659 3,558 4.7 July 136,252 55,102 78,874 76,181 72,766 68,092 4,674 3,415 4.5 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Information relating to persons 14 years of age and over is ob- 2 Per cent of civilian labor force. tained on a sample basis. Monthly data relate to the calendar week that 3 Inclusion of figures for Alaska and Hawaii beginning with 1960 in- contains the 12th day; annual data are averages of monthly figures, creased population by about 500,000 and total labor force by about Bureau of Labor Statistics. 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 T i li o r c a n n u s & t p il o i p t r i u t e a b s - - Trade Finance Service G m ov e e n r t n- 1959 i 53,297 16,675 732 2,960 4,011 11,127 2,594 7,115 8,083 I960 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—July 58,256 17,344 639 3,107 3 983 12 223 2 948 8 561 9 451 Au2 . .. 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 3,996 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 59,334 17,705 633 3,235 3,939 12,447 2,979 8,689 9,707 Feb 59,676 17,772 635 3,281 3,997 12,532 2 987 8 730 9 742 Mar 59,992 17,849 633 3,304 4,042 12,622 2,997 8,754 9,791 Apr 59,911 17,896 629 3.1 £6 4 044 12 563 2 997 8 763 9 835 May 60 110 17,915 629 3.207 4 057 12 636 3 005 8?797 9 864 June?? 60 362 18.040 631 3.210 4.067 12.663 3,011 8^816 9,924 July** . . . 60,528 18,133 635 3,159 4,063 12,707 3,019 8,880 9,932 NOT SEASONALLY ADJUSTED 1964 July 58,418 17,299 646 3,424 4,031 12,173 2,998 8,698 9,149 Aug .. .. 58,680 17,498 647 3,482 4,043 12,201 2,998 8,676 9,135 Sept 59,258 17,792 645 3,391 4,045 12,243 2,972 8,661 9,509 Oct . 59,164 17,428 644 3,376 4,028 12,341 2,961 8,676 9,710 Nov 59,441 17,638 643 3,273 4 013 12 518 2 958 8 608 9 790 Dec 59,938 17,601 635 3,053 4,024 13,166 2,957 8,585 9,917 1965—Jan 58,271 17,456 619 2,837 3,880 12 275 2 949 8 515 9 740 Feb . . 58,398 17,538 616 2,756 3,933 12,209 2,960 8,564 9,822 Mar 58,847 17,643 615 2,865 3 985 12 262 2 973 8 623 9 881 Apr 59,545 17.732 623 3,020 4,004 12,517 2,985 8 754 9 910 May . 60.058 17.826 632 3,245 4,041 12.528 3,002 8,859 9,925 Junep 60,865 18.105 643 3.419 4 108 12 655 3 032 8 966 9 937 July*3 60,673 18.082 642 3,481 4,112 12.655 3,070 9.022 9,609 1 Data include Alaska and Hawaii beginning with 1959. that includes the 12th 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

AUGUST 1965 EMPLOYMENT AND EARNINGS 1163 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1964 1965 1964 1965 July May June*7 July May Juried July** Total 12,839 13,321 13,429 13,514 12,768 13,254 13,489 13,436 Durable goods , 7,271 7,644 7,733 7,838 7,227 7,674 7,812 7,788 Ordnance and accessories 105 101 103 106 104 100 102 105 Lumber and wood products 536 531 531 538 560 533 559 563 Furniture and fixtures 338 352 353 357 333 346 352 352 Stone, clay, and glass products 497 500 500 504 514 506 517 521 Primary metal industries , 1,017 1,037 1,068 1,094 1,003 1,061 1,080 1,079 Fabricated metal products , 918 981 987 1,003 909 982 999 993 Machinery except electrical , 1,125 1,186 1.200 1,217 1,120 1,199 1,213 1,212 Electrical machinery 1,041 1.130 1,144 1,155 1,022 1,115 1,136 1,134 Transportation equipment 1,141 1,251 1.265 1,277 1,117 1,261 1,268 1,250 Instruments and related products 236 240 246 251 232 239 246 247 Miscellaneous manufacturing industries.. 317 335 336 336 314 332 339 332 Nondurable goods. 5,568 5,677 5,696 5,676 5,541 5,580 5,677 5,648 Food and kindred products 1,134 1,131 1,120 1,116 1.171 1,072 1,112 1,153 Tobacco manufactures 78 73 73 74 65 62 62 62 Textile-mill products 798 822 824 825 793 822 831 820 Apparel and other finished textiles 1 ,164 1,211 1,233 1,199 1,133 1,192 1,217 1,167 Paper and allied products 494 499 500 507 492 496 505 505 Printing, publishing, and allied industries 604 618 619 625 599 615 618 620 Chemicals and allied products 531 539 542 544 530 545 544 543 Products of petroleum and coal 117 111 114 114 119 112 116 116 Rubber products 334 354 355 359 326 352 355 351 Leather and leather products 314 319 316 313 313 312 317 312 NOTE.--Bureau of Labor Statistics; data cover production and related the pay period that includes the 12th 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 July May July? July May June?9 July May July27 Total 40.6 41.1 41.0 41.0 102.97 107.53 108.21 107.68 2.53 2.61 2.62 2.62 Durable goods 41.3 41.9 41.9 41.8 111.92 117.88 118.16 117.04 2.71 2.80 2.80 2.80 Ordnance and accessories 40.4 41.7 41.7 42.5 119.70 128.13 128.54 129.89 3.00 3.08 3.09 3.10 Lumber and wood products 40.3 40.8 39.6 40.2 87.89 90.83 90.32 90.50 2.17 2.21 2.23 2.24 Furniture and fixtures 41.0 41.7 41.5 41.3 83.23 85.69 87.15 86.72 2.04 2.09 2.10 2.11 Stone, clay, and glass products 41.5 41.8 41.5 41.5 107.36 110.83 110.56 110.72 2.55 2.62 2.62 2.63 Primary metal industries 41.5 42.0 42.2 42.6 128.96 134.09 136.21 136.64 3.10 3.17 3.19 3.20 Fabricated metal products 41.6 42.2 41.9 41.7 111.07 116.75 117.02 114.68 2.67 2.76 2.76 2.75 Machinery except electrical 42.4 43.0 42.9 42.9 121.82 127.74 127.74 125.83 2.88 2.95 2.95 2.94 Electrical machinery 40.6 41.1 40.9 40.8 101.96 106.19 106.45 104.90 2.53 2.59 2.59 2.59 Transporation equipment 41.7 42.9 43.0 43.0 128.54 137.92 137.60 136.85 3.09 3.20 3.20 3.19 Instruments and related products 41.0 41.7 41.4 41.5 103.63 108.16 108.99 108.21 2.54 2.60 2.62 2.62 Miscellaneous manufacturing industries.. 39.8 39.8 39.6 39.8 81.74 84.56 84.77 83.71 2.08 2.13 2.13 2.13 Nondurable goods 39.5 40.0 39.8 39.8 91.14 94.00 94.24 95.04 2.29 2.35 2.35 2.37 Food and kindred products 40.6 40.9 40.8 40.9 98.06 101.02 100.86 101.68 2.38 2.47 2.46 2.45 Tobacco manufactures 39.6 37.6 37.2 38.0 80.13 81.47 83.16 82.43 2.06 2.19 2.20 2.21 Textile-mill products 40.8 41.5 41.4 41.3 72.22 76.54 77.10 77.64 1.77 1.84 1.84 1.88 Apparel and other finished textiles 36.0 36.6 36.4 36.3 64.25 65.70 66.61 66.61 1.77 1.80 1.82 1.82 Paper and allied products 42.9 43.1 43.0 43.1 110.51 112.40 114.31 115.34 2.57 2.62 2.64 2.67 Printing, publishing, and allied industries 38.4 38.5 38.5 38.4 113.37 117.04 117.43 116.43 2.96 3.04 3.05 3.04 Chemicals and allied products 41.4 42.0 41.7 41.8 116.20 120.27 120.54 121.09 2.80 2.85 2.87 2.89 Products of petroleum and coal 41.6 42.3 42.2 42.0 134.09 137.80 138.78 139.63 3.17 3.25 3.25 3.27 Rubber products 40.7 41.6 41.6 41.5 103.22 107.33 109.20 108.58 2.53 2.58 2.60 2.61 Leather and leather products 37.9 38.4 37.6 38.0 70.25 71.25 71.43 71.98 1.82 1.88 1.87 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

1164 PRICES AUGUST 1965 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent o H w s o h n m i e p e r- - F c a o o u n i a e d l l l tr e G a i l c n e a i d c s t - y o n F i t p a n i i u n e c s g r h d r n s a - - - A up p a k p n e a d e re 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 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107.1 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—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 108.3 107.2 107.1 107.8 108.9 100.9 107.9 102.8 105.5 109.4 113.7 119.5 109.3 114.1 108.9 108.2 106.9 107.2 107.9 109.2 100.9 108.2 102.6 105.3 109.3 113.8 119.8 109.4 114.2 108.9 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 Feb 108.9 106.6 108.2 108.5 110.9 106.7 107.8 102.8 105.8 110.6 114.7 121.0 110.1 115.2 109.4 Mar 109.0 106.9 108.2 108.7 110.8 106.5 107.7 103.1 106.0 110.6 114.9 121.4 110.4 115.4 109.5 109.3 107.3 108.2 108.8 110.8 105.4 107.7 103.1 106.3 111.0 115.4 121.6 110.7 115.9 110.3 May 109.6 107 9 108 2 108.8 110.8 104 6 107.7 103 1 106 8 111.4 115.6 121 .8 111.0 115.9 110.6 June 110.1 110.1 108.2 108.8 111.0 103.4 107.8 103.1 106.9 111.2 115.7 122.2 111.0 115.7 111.0 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 o ie m d l s l i - - p F u r a c o r t m d s - f P e o s r o s o e d c d s - Total t T e il e t e c x s . - , H e i t d c e . s, F e u tc e . l, C ic e h 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,M e e t t c a . ls 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 e a t c o c 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 1960. 100.7 96.9 100.0 101.3, 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.4 100.1 101.4 102.5 99.3 1961. 100.3 96.0 100.7 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100.7 102.3 99.5 101.8 103.2 103.9 1962. 100.6 97.7 101.2 100.81 100.6 107.4 100.2 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 1964. 100.5 94.3 101.01 101.21 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102.8 102.9 98.5 101.5 107.4 109.2 1964—June. 100.0 93.2 100.2 100.9i 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 94.1 101.21 101.1 101 105.4 96.7 96.6 91.8 101.2 98.7 102.5 103.1 98.6 101.5 107.3 107.5 Aug.., 100.3 93.6 101.0 101.1 101 105.6 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 95.7 102.2 101.1 101 105.4 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, 101 106.0 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 94.0 100.9 101.6 101 105.5 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 92.2 99.4 98.9 104.7 103.1 98.4 101.6 107.5 110.7 1965—Jan... 101.0 93.0 102.2 101.9 101 104.9 98.5 97.3 92.3 100.8 99.0 104.5 103 98.3 101.7 107.5 110.0 Feb.. 101.2 94.5 102.1 101.9 101 105.1 97.9 97.5 92.2 100.8 99.0 104.6 103 98.2 101.8 107.6 109.6 Mar.. 101.3 95.4 101.8 102.0 101 105.7 97.9 97.5 92.2 100.7 99.5 104.8 103 98.3 101.9 107.5 109.5 Apr.. 101.7 97.6 102.3 102.1 101 106.3 97.6 97.6 92.3 100.5 99.8 105.2 103.7 98.0 101.9 107.8 110.3 May. 102.1 .4 103.3 102.3 101 107.4 98.4 '97.6 92.9 r100.4 100.0 105.7 103.7 98.0 101.9 108.1 108.9 June. 102.8 100.3 105.9 102.4 101.9 107. 98.7 97.4 92.9 100.3 1C0.0 105.8 103.7 98.0 101.9 107.6 111.0 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 PRICES 1165 WHOLESALE PRICES: DETAIL (1957-59=* 100) 1964 1965 1964 1965 Group Group June Apr. May June June Apr. May I June Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 113.1 117.7 118.5 109.1 Woodpulp 95.5 98.1 98.1 98.1 Grains 89.8 91.2 91.0 89.6 Wastepaper 93.5 97.3 100.3 98.0 Livestock and poultry 82.3 91.4 96.2 104.6 Paper 103.7 103.9 104.0 104.1 Plant and animal fibers 101.2 91.6 91.8 92.0 Paperboard 96.5 96.3 96.3 96.3 Fluid milk 98.8 101.2 100.2 100.7 Converted paper and paperboard 97.6 99.3 5 99.5 99.6 Eggs 88.7 91.2 79.0 82.0 Building paper and board 94.4 92.3 '"92.7 92.7 Hay and seeds 105.1 119.4 115.4 114.7 Other farm products 98.7 95.6 94.8 95.6 Metals and Metal Products: Processed Foods: Iron and steel 100.4 101.4 101.5 101.3 Nonferrous metals 104.0 113.7 115.2 116.0 Cereal and bakery products 107.9 108.3 108.3 108.5 Metal containers , 105.6 105.7 108.3 108.2 Meat, poultry, and fish 90.2 93.6 97.7 105.1 Hardware 104.8 105.4 105.8 105.9 Dairy products and ice cream 107.1 107.5 106.8 107.1 Plumbing equipment , 100.5 104.2 104.2 104.3 Canned and frozen fruits and veg- Heating equipment , 92.4 91.9 '91.6 91.9 etables 106.1 100.9 i00.4 101.3 Fabricated structural metal products. 99.2 100.8 101.2 101.2 Sugar and confectionery 108.0 108.2 108.9 109.4 Fabricated nonstructural metal prod- Packaged beverage materials 98.3 94.0 94.2 94.2 ucts 108.4 109.2 109.2 109.2 Animal fats and oils 90.7 116.7 107.4 107.7 Crude vegetable oils 78.5 109.3 '96.9 94.4 Machinery and Motive Products: Refined vegetable oils 76.5 103.7 93.7 89.2 Vegetable oil end products 87.6 102.3 102.3 101.3 Agricultural machinery and equip.... 112.7 114.8 114.7 114.7 Miscellaneous processed foods 108.4 111.7 112.2 112.9 Construction machinery and equip.... 112.3 115.0 115.1 115.2 Metalworking machinery and equip... 112.4 115.7 116.2 116.3 Textile Products and Apparel: General purpose machinery and equipment 104.5 104.5 104.7 104.7 Cotton products 98.7 99.7 99.9 100.2 Miscellaneous machinery , 104.5 105.3 105.4 105.5 Woo] products 102.8 103.1 r103.8 104.0 Special industry machinery and Man-made fiber textile products.... 96.2 96.1 96.0 95.9 equipment (Jan. 1961 = 100) 105.9 107.8 107.8 107.9 Silk products 117.0 134.5 135.1 132.2 Electrical machinery and equip 96.5 97.0 r97.t 97.1 Apparel 102.8 103.1 103.2 103.5 Motor vehicles 100.9 100.8 100.8 100.7 Other textile products 117.3 118.5 121.7 123.3 Transportation equip., R.R. rolling stock (Jan. 1961 = 100) 100.1 100.6 100.6 101.0 Hides, Skins, Leather, and Products: Hides and skins 90.3 96.3 105.9 103.1 Furniture and Other Household Dura- Leather 103.3 103.6 104.2 107.6 bles: Footwear 108.3 109.7 109.7 109.8 Other leather products 103.2 104.3 104.9 105.0 Household furniture 105.1 106.0 106.0 105.9 Commercial furniture 103.2 103.6 103.7 103.7 Fuels and Related Products, and Power: Floor coverings 98.6 97.7 97.7 97.7 Household appliances 91.2 89.4 89.4 89.4 Coal 95.3 94.6 r94.6 94.6 Television, radios, and phonographs.. 87.3 85.9 85.9 85.9 Coke 107.3 107.3 107.3 107.3 Other household durable goods 104.4 104.8 104.9 104.9 Gas fuels (Jan. 1958= 100) 116.0 122.5 122.2 122.2 Electric power (Jan. 1958= 100) 100.9 100.8 100.8 100.8 Petroleum products, refined 92.3 94.1 95.4 96.0 Nonmetallic Mineral Products: Chemicals and Allied Products: Flat glass 102.4 101.6 101.7 101.7 Concrete ingredients 102.8 103.2 103 2 103.1 Industrial chemicals 94.3 r94.8 r94.8 94.8 Concrete products 100.8 101.3 101.3 101.6 Prepared paint 103.9 104.4 105.7 105.7 Structural clay products 104.5 105.1 105.1 105.1 Paint materials 90.8 90.4 90.1 89.3 Gypsum products 108.6 108.1 108.1 107.5 Drugs and Pharmaceuticals 94.6 94.8 r95.0 94.7 Asphalt roofing 86.4 92.1 92.1 92.1 Fats and oils, inedible 93.2 121.2 116.7 114.0 Other nonmetallic minerals 101.7 101.6 101.6 101.6 Mixed fertilizers 103.6 105.2 105.1 105.0 Fertilizer materials 100.2 104.3 104.3 104.3 Tobacco Products and Bottled Bever- Other chemicals and products 99.5 99.8 99.8 99.8 ages: Rubber and Products: Tobacco products 106.0 106.7 107.4 106.1 Alcoholic beverages 100.3 100.7 100.8 100.7 Crude rubber 90.6 91.6 91.8 90.1 Nonalcoholic beverages 127.4 128.1 128.1 128.1 Tires and tubes 88.0 88.5 89.7 90.2 Miscellaneous rubber products 95.7 96.5 r96.8 96.8 Miscellaneous Products: Lumber and Wood Products: Toys, sporting goods, small arms. .. 100.9 102.2 102.2 102.2 Manufactured animal feeds 109.6 115.5 112.9 116.6 Lumber 101.8 101.0 101.0 101.1 Notions and accessories 99.1 99.1 99.1 99.1 Millwork 109.0 107.6 107.9 107.8 Jewelry, watches, photo equipment.. 102.9 103.8 103.8 104.3 Plywood 92.6 91.9 90.5 Other miscellaneous products 102.4 103.4 103.4 103.5 NOTE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1166 NATIONAL PRODUCT AND INCOME AUGUST 1965 GROSS NATIONAL PRODUCT OR EXPENDITURE (In billions of dollars) 1964 j 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 III IV Gross national product 104.4 56.0 125.8 284.6 502.6 518.7 556.2 583.9 622.6 618.6 628.4 634.6 648.8 658.0 Personal consumption expenditures 79.0 46.4 81.9 195.o! 328.2 337.3 356.8 375.0 399.3 396.1 404.6 406.5 418.1 423.0 Durable goods 9.2 3.5 9.7 30.4 44.9 43.7 48.4 52.1 57.0 57.0 58.7 56.3 62.0 60.6 Nondurable goods 37.7 22.3 43.2 99.8 151.8 155.4 162.0 167.5 177.3 175.3 179.5 181.3 184.3 187.7 Services 32.1 20.7 29.0 64.9 131.5 138.3 146.4 155.3 165.1 163.8 166.4 169.0 171.7 174.7 Gross private domestic investment 16.2 1.4 18.1 50.0 71.8 68.8 79.1 82.0 87.7 87.2 87.3 90.4 94.7 94.3 New construction 8.7 1.4 6.6 24.2 40.7 41.0 44.2 46.6 48.9 48.9 48.9 48.7 49.9 50.9 Residential, nonfarm 3.6 .5 3.5 14.1 21.1 21.1 23.6 25.2 26.0 26.2 25.7 25.1 26.2 26.3 Other 5.1 1.0 3.1 10.1 19.7 19.8 20.6 21.3 22.9 22.7 23.11 23.6 23.7 24.6 Producers' durable equipment 5.9 1.6 6.9 18.9 27.6 25.9 29.0 31.0 35.1 34.6 35.6 36.0 37.9 37.7 Change in business inventories 1.7 -1.6 4.5 6.8 3.5 1.9 5.9 4.4 3.7 3.7 2.8 5.7 6.8 5.7 Nonfarm only 1.8 -1.4 4.0 6.0 3.2| 1.5! 5.3i 3.9 3.6 3.4 2.7 6.1 7.0 5.9 Net exports of goods and services .2 1.1 .6 3.0J 4.6 4.0! 4.4 7.0 5.7 7.0 7.7 5.0 7.1 Exports 7.0 2.4 6.0 13.1 26.3! 27.6 29.21 30.7 35.2 33.7 35.7 37.1 33.7 39.2 Imports 6.3 2.3 4.8 12.5 23.3! 23.0! 25.2| 26.3 28.2 27.9 28.7 29.4 28.7 32.2 Government purchases of goods and services. 8.5 8.0 24.8 39.0 99 6 108 0 116.3 122.6 128.6 129.6 129.5 130.0 131.0 133.6 Federal 1.3 2.0 16.9 19.3 55 / 57 4 62.9 64.7 65.5 67.1 65.5 65.3 65.1 66.7 National defense 13.8! 14.3 45 7 49 0 53.6 55.2 55.4 57.0 55.2 55.3 54.4 55.4 Other 1.3 2.0 ' 3.2 5.2 8 0 8.9 10.2 10.3 11.2 11.0 11.2 11.3 11.9 12.4 Less: Government sales .1 6 6 .8 1.1 .9 .9 1.2 1.2 1.1 State and local 7.2 6.0 7.J 19.7 46.5 50 6 53.5 57.9 63.0 62.5 64.1 64.6 65.9 66.9 Gross national product in constant (1954) dollars 181.8 126.6 238.1 318.11 439.9 447.9! 476.4! 492.6 516.0 513.5 519.6 522.7 532.2 536.7 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. Revised see National Income 1954 Edition, A Supplement to the Survey of Current data will appear in a forthcoming BULLETIN. NATIONAL INCOME (In billions of dollars) 1964 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 II III IV I II National income 87.8 40.2 104.7 241.9 414.5 426.9 455.6 478.5 510.1 507.1 514.5 520.6 534.5 Compensation of employees... 51.1 29.5 64.8 154.2 293.6 302.2 323.1 340.3 361.7 358.6 364.8 370.6 378.3 383.7 Wages and salaries 50.4 29.0 62.1 146.4 271.3 278.8 297.1 312.2 331.6 328.7 334.4 339.9 347.2 352.2 Private 45.5 23.9 51 .9 124.1 222.9 227.0 241.6 252.9 261.4 265.3 269 A 274.0 280.5 284.5 Military .3 .3 1.9 5.0 9.9 10.2 10.8 10.9 11.8 11.7 11.8 11.9 11.9 12.0 Government civilian 4 6 4 9 8 3 17 3 38 5 41 6 44 7 48 3 52 4 51 7 53 2 54 0 54 9 55.7 Supplements to wages and salaries .7 .5 2.7 7.8 22.3 23.4 25.9 X.2 30.7 29.9 30.4 50.7 37.7 37.5 Employer contributions for social insurance . 1 .1 i .0 4.0 11.3 11.8 13.6 15.1 16.0 15.9 16.2 16.4 16.7 Other labor income 6 .4 7 3 8 11 0 11 6 12 3 13 1 14 1 14 0 14.2 14.5 14 7 14.8 Proprietors' income 14.8 5.6 17.4 37.5 46 2 48 2 49 8 SO 6 52 0 51 7 ^2.1 52.8 52.7 55.2 Business and professional 8.8 3.2 10.9 23.5 34.2 3^.3 36.6 37.6 39.3 39.1 39.6 39.9 40.4 40.7 Farm 6 0 2.4 6 5 14 0 12 0 P 9 n 2 13 0 12 7 12 6 12.6 12.9 12.2 14.5 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 ,2.5 12.5 12.5 Corporate profits and inventory valuation adjustment 10.1 -2.0 14.5 35.7 44.5 44.1 48.4 50.8 57.4 57.9 58.1 57.0 62.9 Profits before tax. 9.6 2 17.0 40.6 44.3 44.2 48.2 51.3 57.6 57.9 55.0 57.7 64.3 Profits tax liability 1.4 '.5 7.6 17.9 22.3 22.3 23.2 24.6 25.8 26.0 26.0 25.9 27.7 Profits after tax 8.3 9.4 22.8 22 0 21.9 25.0 26.7 31.8 31.9 52.0 37.9 36.6 Dividends 5.8 4.5 9.2 14.5 15.2 16.5 18.0 19.8 19.8 20.0 20.2 2.0.5 "ii'o Undistributed profits 2.4 -2.4 4.9 13.6 7.5 6.7 8.5 8 7 11 9 P 1 12.0 11.7 16.1 Inventory valuation adjustment .5 -2. 1 -2.5 -5.0 .2 -.1 .3 .4 -.2 -.i .1 -1.4 Net interest 6.4 5.0 4.5 5.5 18.1 20.1 22.1; 24.4 26.8 26.5 27.1 27.6 28.2 28.7 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

AUGUST 1965 NATIONAL PRODUCT AND INCOME 1167 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, PERSONAL INCOME, AND SAVING (In billions of dollars) 1964 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 II III IV I Gross national product 104.4 56.0 125.8 284.6 502.6 518.7 556.2 583.9 622.6 618.6 628.4 634.6 648.8 658.0 Less: Capital consumption allowances 8.6 7.2 9.0 19.1 43.0 44.5 48.7 50.8 53.4 53.1 53.7 54.4 54.9 55.4 Indirect business tax and nontax liability 7.0 7.1 11.3 23.7 46.4 49.0 52.8 55.9 59.4 59.0 60.1 60.7 61.7 62.0 Business transfer payments .6 .7 .5 .8 2.2 2.4 2.4 2.4 2.5 2.5 2.5 2.5 2.5 2.5 Statistical discrepancy .3 .9 .4 -.7 -3.0 -2.6 -1. -2.7 -2.0 -2.4 -1.4 -2.6 -4." 2 Plus: Subsidies less current surplus of government enterprises -.1 .1 .2 .5 1.6 1.6 1.0 .9 .7 .9 1.0 .6 Equals: National income 87.8 40.2 104.7 241.9 414.5 426.9 455.6 478.5 510.1 507.1 514.5 520.6 534.5 Less: Corporate profits and inventory valuation adjustment 10.1 -2 14.5 35.7 44.5 44.1 48.4 50.8 57.4 57.9 58.1 57.0 62.9 Contributions for social insurance .2 2.8 20.6 21.4 23.9 26.9 28.7 28.4 29.0 29.3 29.6 30.0 Excess of wage accruals over disbursements Plus: Government transfer payments .9 2.6 14.3 27.3 31.3 32.3 34.3 35.7 35.5 35.5 35.9 37.1 36.9 Net interest paid by government 1.0 1.3 4.8 7.8 7.4 8.0 8.6 9.2 9.3 9.2 9.3 9.4 9.5 Dividends 5.8 4.5 9.2 14.5 15.2 16.5 18.0 19.8 19.8 20.0 20.2 20.5 21.0 Business transfer payments .6 .5 2.2 2.4 2.4 2.4 2.5 2.5 2.5 2.5 2.5 2.5 Equals: Personal income 85.8 96.3 228.5 401.3 417.6 442.4 464.1 491.4 487.9 494.5 502.2 511.6 519.9 Less: Personal tax and nontax payments 2.6 3.3 20.8 51.4 52.9 57.9 61.6 59.5 57.7 58.8 60.2 63.3 64.6 Federal 1.3 2.0 18.2 44.0 45.1 49.1 51.9 49.0 47.3 48.2 49.3 52.0 53.0 State and local 1.4 1.3 2.6 7.8 10.6 10.5 10.6 10.9 11.3 11.6 7.3 9.6 Equals: Disposable personal income 83.1 93.0 207.7 364.7 384.6 431.8 430.2 435.6 442.1 448.3 455.3 349.9 402.5 Less: Personal consumption expenditures .. 79.0 81.9 195.0 337.3 356.8 399.3 396.1 4C4.6 406.5 418.1 423.0 328.2 375.0 Equals: Personal saving 4.2 11.1 12.6 27.3 27.8 32.5 34.0 31.0 35.5 30.2 32.3 21.7 27.5 Disposable personal income in constant (1954) dollars 134.9 102.1 175.1 231.0 317.8 328.2 343 4354.9 375.8! 374.7| 378.8; 383.: 386.7 390.2 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally ad justed totals at annual rates. See also NOTE to table at top of previous page. PERSONAL INCOME (In billions of dollars) 1964 1965 1963 1964 June July Aug. Sept. Oct. Nov. Jan. Feb. Apr. May Total personal income 464.1 491.4 489.3 491.4 494.9 497.9 498.7 502.3 505.9 1510.2 511.0 513.8 515.8 520.0 523.9 Wage and salary disbursements 312.1 331.6 330.1 331.8 334.6 337.2 337.3 340.4 342.6 344.7 347.3 349.6 349.9 352.3 354.2 Commodity-producing industries... 123.3 129.8 129.4 129.9 130.8 132.1 130.7 133.2 134.6 135.6 136.7 137.8 137.4 138.3 139.2 Manufacturing only 98.0 103.0 102.7 103.0 103.8 105.1 103.4 105.6 106.8 705.0 108.8 109.9 109.6 110.2 110.8 Distributive industries 80.3 84.9 84.6 85.2 85.7 86.3 86. 87.3 87.7 88.2 89.0 89.6 89.9 90.6 91.1 Service industries 49.3 52.6 52.4 52.6 52.9 53.4 53.7 53.9 54.1 54.4 54.8 55.0 55.2 55.7 56.0 Government 59.2 64.2 63.8 64.1 65.1 65.4 66.0 65.9 66.2 66.5 66.8 67.1 67.4 67.7 68.0 Other labor income... 13.1 14.1 14.2 14.2 14.3 14.4 14.5 14.5 14.6 14.7 14.7 14.8 14.8 14.9 ! Proprietors'1 income 52.0 51.9 51.9 52.2 52.4 52.5 52.8 53.2 53.0 52.6 52.41 r53.5 55.4 56.6 Business and professional 39.3 39.3 39.5 39.6 39.7 39.8 39.9 40.1 40.3 40.4 40.5 40.6 40.7 40.7 Farm 12.7 12.6 12.4 12.6 12.7 12.7 12.9 13.1 12.7 12.2 ...9 M2.9 14.7 15.9 Rental income 12.4 12.4 12.4 12.4 12.4 12.5 12.5 12.5 12.5 12.5 12.51 12.5 12.5 12.6 Dividends 19.8 19.9J 20.0 20.0 19.9 19.9 20.6 20.4 20.61 20.7 20.8 20.8 21.3 Personal interest income. 36.0 35.9 36.0 36.2 36.5 36.7 36.9 37.2i 37.4 37.6 37.8 38.0 38.2 38.4 Transfer payments 38.2 37.6 37.8 38.0 38.0 38.3 38.4 38.5 140.8 38.9 39.2 39.5 39.2 39.2 Less: Personal contributions for social insurance 12.7 12.6 12.8 12.9 12. 13.0 13.1 53.2 13.2 13.2 13.3 13.3 13.4 Nonagricultural income. . 446. 474.2 472.: 474.4 477.8 480.6 481.4 484.9 488.6h493.2 494.5 497.6 4f-?8.6 503.5 Agricultural income 17. 17.1 17.2| 16.9 17.1 17.2 17.3 17.5 17.4! 17.0 16.5 16.2 '17.2 20.4 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 $2.0 billion. adjusted totalIs at annual rates. See also NOTE to table at top of previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1168 FLOW OF FUNDS AUGUST 1965 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1963 1964 1965 Transaction category, or sector 1960 1961 1962 1963 1964 II III IV I II III IV I II I. Saying and investment 119.4 115.9 129.8 138.7 148.7 138.0 140.1 146.1 144.6 148.2 150.4 151.8 162.9 164.1 1 2 Households 73.5 78.0 83.9 88.2 98.3 87.4 87.8 92.4 94.4 100.1 98.7 100.1 101.1 102.9 2 3 Farm and noncorp. business 11.9 11.5 11.8 12.3 12.3 12.3 12.4 12.5 11.6 12.1 12.6 12.9 12.9 12.9 3 4 Corporate nonfinan. business.... 32.6 33.1 38.4 39.4 44.9 38.7 40.4 39.9 44.2 45.1 45.5 44.9 49.1 49.0 4 2.4 -5.2 -5.2 -2.9 -6.7 -2.8 -2.0 -.8 -4.0 -9.6 -7.0 -6.5 -1.0 2.4 5 -3.3 -3.8 -2.2 -2.4 -2.6 -2.2 -2.3 -2.1 -2.5 -2.6 -2.8 -2.5 -3.2 -3.3 6 7 Financial sectors. . 2.3 2.2 3.1 4.1 2.6 4.7 3.9 4.2 .9 3.2 3.4 2.9 4.0 4.8 7 8 Gross national investment 117.4 114.5 128.8 136.7 148.9 134.6 136.5 145.5 147.3 148.2 149.9 150.2 160.5 158.4 8 44.9 43.7 48.4 52.1 56.9 51.5 52.2 53.6 55.9 56.9 58.5 56.1 62.0 60.6 9 3.5 1.9 5.9 4.4 3.5 3.6 4.2 6.4 2.4 3.6 2.5 5.5 6.8 5.7 10 11 Gross pvt fixed investment 68.3 66.9 73.3 77.7 84.0 76.7 78.7 80.8 83.5 83.5 84.3 84.6 87.8 88.6 11 12 Households 21.6 20.0 21.4 21.9 22.7 21.5 22.2 22.4 22.9 22.8 22.6 22.4 21.7 22.7 12 46.2 46.2 51.3 54.8 60.7 54.4 55.3 57.1 59.4 60.2 61.4 61.8 65.6 65.6 13 14 Financial sectors .5 .7 .6 1.0 .6 .9 1.2 1.3 1.2 .4 .4 .4 s 4 14 15 Net financial investment .7 2.0 1.3 2.5 4.6 2.7 1.4 4.8 5.5 4.2 4.5 4.0 3.9 3.5 15 16 Discrepancy (1-8) 2.0 1.4 .9 2.0 -.2 3.4 3.6 .6 -2.7 * .4 1.6 2.4 5.7 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 35.0 46.9 58.3 62.3 70.9 72.5 53.7 63.7 68.2 78.5 65.7 71.3 82.5 75.3 17 18 Loans and short-term securities.... 15.0 16.3 15.4 18.5 26.9 28.4 4.5 23.5 26.1 28.6 14.6 38.3 41.8 n.a. 18 19 Long-term securities and mtgs 20.0 30.7 42.9 43.8 44.0 44.1 49.2 40.2 42.1 49.9 51.1 33.0 40.7 n.a. 19 By sector -2.0 7.6 7.5 4.8 6.8 11.6 -5.0 1.7 11.6 7.9 5.1 2.6 11.3 .8 20 3.1 8.8 .5 1.4 4.1 9.0 -10.4 .3 9.1 .8 -2.0 8.4 12.7 n.a. 21 22 Other securities -5.6 -1.4 6.8 3.8 2.2 3.3 6.4 1.6 3.5 5.5 6.5 -6.7 -1.3 n.a. 22 .5 .2 .2 -.4 .5 -.7 -1.0 -.2 -1.0 1.7 .6 .9 -.2 -.3 23 2.0 2.8 2.3 3.4 4.7 5.0 1.4 3.2 4.1 4.0 3.0 7.5 6.0 .7 24 25 Loans . . 1.4 2.0 1.2 2.3 3.9 3.1 1.0 3.5 4.1 3.2 3.0 5.3 4.8 -.1 25 26 Securities .6 .8 1.0 1.0 .8 1.8 .5 -.2 * .9 * 2.2 1.1 .8 26 27 Pvt domestic nonfin sectors .... 35.0 36.6 48.6 54.2 59.4 55.9 57.3 58.8 52.4 66.5 57.5 61.2 65.2 73.7 27 28 Loans . . 10.0 5.3 13.5 15.2 18.4 16.9 15.0 19.9 13.8 22.9 13.0 23.7 24.5 30.8 28 29 Consumer credit. 4.5 1.7 5.5 6.7 6.8 6.9 7.1 6.5 6.5 7.3 7.5 6.0 9.6 8.7 29 2.9 2.2 5.1 5.9 7.2 6.5 5.2 11.4 4.3 8.4 3.1 13.1 11.7 16.2 30 31 Other loans 2.6 1.4 2.9 2.6 4.3 3.5 2.6 2.0 3.0 7.2 2.4 4.6 3.1 6.0 31 32 Securities and mortgages 25.0 31.3 35.1 38.9 41.1 39.0 42.4 38.9 38.6 43.6 44.6 37.5 40.8 42.9 32 33 State and local obligations 3.6 4.9 5.0 6.7 5.9 7.0 7.5 6.6 4.2 5.9 7.8 5.6 8.0 7.4 33 2 8 4 2 1 7 6 6 7 0 5 2 2 8 5 1 7 4 ^4 35 1- to 4-family mortgages . ... 10.5 11.4 13.0 15.2 16.0 15.8 16.3 15.1 15.3 16.5 16.9 15.3 13.6 15.0 35 5.6 7.7 11.9 13.6 13.8 13.4 14.3 15.4 12.5 14.3 14.7 13.9 14.1 13.1 36 37 Net sources of credit (— 17) 35.0 46.9 58.3 62.3 70.9 72.5 53.7 63.7 68.2 78.5 65.7 71.3 82.5 75.3 37 38 Chg. in U.S. Govt. cash balance.. .9 * 1.3 -.4 2.9 -7.7 -1.5 8.0 -1.1 -4.1 -2.4 11.0 1.2 38 39 U.S. Govt. lending 2.3 3.5 2.7 3!6 2.6 3.6 4.5 2.8 5.1 3.0 3.4 4.5 5.5 39 40 Foreign funds 3.2 22..08 2.9 2.5 2.5 7.1 -.4 * 2.8 2.7 .5 4.0 2.4 4.6 40 41 Pvt. insur. & pension reserves 8.2 8.7 9.0 10.2 10.4 10.5 11.3 10.5 9.9 10.7 9.4 11.8 10.0 11.6 41 42 Sources nee 4.0 3.7 2.6 4.0 5.0 2.2 5.7 1.0 6.5 4.9 5.7 3.2 9.6 4.3 42 43 Pvt. domestic nonfin. sectors 16.5 29.7 39.0 43.3 49.3 47.3 41.2 49.3 38.2 56.3 51.1 51.3 45.0 48.0 43 44 Liquid assets 9.2 24.7 31.2 36.2 32.8 41.5 29.0 40.7 27.5 35.9 28.7 39.0 34.9 n.a. 44 45 Deposits 13.8 24.2 29.8 33.0 34.7 35.9 28.1 38.7 24.6 36.3 33.9 43.8 27.4 37.0 45 46 Demand dep. and currency -1.3 4.1 1.8 5.0 6.5 10.6 2.1 9.8 -3.0 9.5 5.9 13.7 -8.9 11.0 46 47 Time and svgs. accounts... 15.0 20.1 28.0 28.1 28.1 25.3 26.0 28.9 27.6 26.8 28.1 30.1 36.3 26.0 47 48 At commercial banks.... 5.4 9.0 15.0 13.1 12.6 10.6 13.0 13.6 12.5 11.4 12.0 14.5 22.7 14.5 48 49 At savings instit 9.6 11.1 12.9 14.9 15.5 14.7 13.0 15.3 15.1 15.4 16.1 15.6 13.6 11.6 49 50 Short-term U.S. Govt. sec... -4.6 .5 1.4 3.2 -1.8 5.6 .9 2.1 3.0 -.4 -5.2 -4.8 7.5 n.a. 50 51 Other U.S. Govt. securities -.5 -1.3 .6 1.9 3.4 2.1 5.8 1.3 1.2 6.9 7.4 -2.1 .7 n.a. 51 52 Pvt. credit mkt. instruments... 7.5 7.6 7.0 7.2 12.9 6.6 8.2 8.6 9.3 14.1 14.0 14.0 9.6 10.2 52 53 Less security debt -.3 1.3 -.2 2.0 -.2 2.9 1.8 1.4 -.1 .6 Q -.4 2 .9 53 III. Direct lending in credit markets 54 Total funds raised 35.0 46.9 58.3 62.3 70.9 72.5 53.7 63.7 68.2 78.5 65.7 71.3 82.5 75.3 54 55 Less change in U.S. Govt. cash.... .9 * 1.3 -.4 .1 2 9 —7.7 — 1.5 8.0 — 1.1 -4.1 — 2 4 11 0 I 2 55 56 Total net of U.S. Govt. cash 34.2 46.9 57.0 62.7 70.8 69.6 61.4 65.2 60.2 79.6 69.7 73.7 71.5 74.0 56 57 Funds supplied directly to cr. mkts... 34.2 46.9 57.0 62.7 70.8 69.6 61.4 65.2 60.2 79.6 69.7 73.7 71.5 74.0 57 58 Monetary authorities .8 1.5 1.9 2.6 3.2 2.6 1.0 2.6 5.5 1.4 .8 5.0 6.0 3.8 58 59 Total .7 1.5 2.0 2.9 3.4 2.2 1.9 2.1 5.1 2.1 1.2 5.1 6.4 3.5 59 60 Less change in U.S. Govt. cash. * * .1 .3 .2 — .4 .9 — .5 — .4 .7 .4 .1 3 - 3 60 8.0 15.5 18.1 19.7 20.6 22.3 18.1 23.0 10.4 23.8 19.4 28.9 18.6 27.5 61 62 Total 9.0 15.7 19.5 19.3 21.1 25.7 9.7 22.9 19.6 22.6 15.5 26.8 29.7 31.6 62 6 6 3 4 Le S ss e c c u h r g it . y i n is s U u . e S s . Govt. cash • ... . . 1 9 .2 * 1 . . 1 3 -.7 .3 -.1 6 3.3 -8.5 .1 -1. . 0 9 8.4 9 -1.8 .5 -4.5 6 -2.5 4 10.6 5 2 1 .6 6 6 6 3 4 65 Nonbank finance, net 19.2 21.0 23.1 26.8 28.5 25.7 27.8 25.4 28.4 27.3 31.4 27.2 27.3 23.8 65 66 Total 21.5 23.4 27.8 33.6 32.7 36.3 38.7 30.7 31.1 38.5 32.7 28.9 32.6 36.9 66 2.4 2.4 4.7 6.9 4.2 10.6 10.9 5.3 2.7 11.1 1.3 1.7 5.3 13 1 67 68 U.S. Government 2.3 2.8 3.5 2.7 3.6 2.6 3.6 4.5 2.8 5.1 3.0 3.4 4.5 5 5 68 1.2 .7 1.3 .8 .4 5.1 -2.2 -.7 — .4 2.1 -2.0 1.7 -2 5 2.4 69 70 Pvt. domestic nonfin 2.7 5.5 9.2 10.3 14.6 11.4 13.1 10.6 13.6 20.0 17.2 7.5 17.6 11.1 70 71 Households 1.0 4.1 4.2 7.2 10.4 6.0 9.5 10.4 5.7 14.3 10.9 10.6 11.8 6.9 71 -1.9 .2 2.3 2.1 1.3 4.4 1.1 2.1 2.9 1.5 1.9 -1.0 -2.4 - 2 72 73 State and local govts 3.3 2.5 2.6 2.9 2.7 3.9 4.3 A 4.9 4.8 3.4 -2.5 8.4 5.3 73 74 Less net security credit -.3 1.3 -.2 2.0 -.2 2.9 1.8 1.4 -.1 .6 -.9 A .9 74 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes, see Apr. 1965 BULLETIN, p. 607. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 FLOW OF FUNDS 1169 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1963 1964 1965 Transaction category, 1960 1961 1962 1963 1964 or sector II III IV III IV I. Demand deposits and currency 1 Net incr. in banking system liability 5.4 4.4 5.0 7.3 14.1 -4.5 8.7 6.4 8.4 2.8 11.7 3.4 10.7 2 U.S. Govt. deposits .9 1.3 -.4 .1 2.9 -7.7 -1.5 8.0 -1.1 -4.1 -2.4 11.0 1.2 3 Other -.8 5.3 3.1 5.5 7.3 11.2 3.1 10.2 -1.6 9.6 6.9 14.1 -7.5 9.4 4 Domestic sectors -.7 5.1 3.0 5.2 6.6 10.6 2.9 10.5 -3.2 10.2 5.3 14.0 -8.5 10.8 5 Households -.9 1.1 .4 2.1 2.1 5.5 .8 -.2 2.1 -.4 2.4 4.2 -1.0 7.8 6 Nonfinancial business -1.0 1.7 .8 -2.5 .5 -2.6 -1.7 -1.3 -5.0 7.9 * -.9 -3.6 5.8 7 State and local govts -1.1 .3 .9 3.2 2.4 3.6 2.3 7.2 2.0 1.5 2.6 3.4 .2 1.0 8 Financial sectors .5 1.1 1.1 .1 • .8 .7 -.2 .7 -.5 .3 .4 -.2 8 Mail float 1.7 1.0 -.2 2^1 1.6 4.1 .7 4.1 -2.1 .6 .9 7.0 -4.4 -3.7 10 Rest of the world -.1 .2 .1 .3 .7 .6 .3 -.3 1.6 -.6 1.5 .2 1.0 -1.3 II. Time and savings accounts 11 Net increase—Total 15.3 20.7 28.7 29.2 29.7 26.1 26.7 29.9 29.4 28.5 28.9 32.0 37.0 27.2 12 At commercial banks—Total.... 5.8 9.4 15.6 14.1 14.0 11.6 13.8 14.4 14.0 12.9 12.9 16.0 23.3 15.7 13 Corporate business .8 1.3 2.6 3.9 3.3 2.4 3.2 5.2 6.5 1.5 1.9 3.2 8.3 7.1 14 State and local govts 1.4 .9 1.0 1.6 1.7 .3 1.5 1.9 .5 .8 2.5 3.1 2.2 .4 15 Foreign depositors .3 .3 .6 1.0 1.4 .9 .8 .8 1.5 1.5 1.0 1.4 .6 1.2 16 Households 3.3 6.8 11.5 7.6 7.6 8.0 8.3 6.4 5.5 9.1 7.6 8.2 12.2 7.0 17 At savings institutions 9.5 11.3 13.1 15.1 15.7 14.4 12.9 15.5 15.4 15.6 16.0 15.9 13.7 11.4 18 Memo: Households total 12.8 17.9 24.4 22.6 23.2 22.6 21.3 21.8 20.6 24.4 23.7 23.8 25.7 18.5 III. U.S. Govt. securities 19 Total net issues -2.5 7.3 7.3 5.2 6.3 12.4 -4.0 1.9 12.6 6.2 4.5 1.7 11.4 1.1 19 20 Short-term marketable. 3.1 8.8 1.4 4.1 9.0 -10.4 .3 9.1 .8 -2.0 8.4 12.7 n.a. 20 21 Other -5.3 -2.9 4& 1.1 .9 -1.2 2.5 -3.0 5.0 1.6 5.1 -8.3 -2.5 n.a. 21 22 Net acquisitions, by sector -2.5 7.3 7.3 5.2 6.3 12.4 -4.0 1.9 12.7 6.3 4.5 1.8 11.5 1.1 23 Monetary authorities .7 1 1.9 2.8 3.4 2.4 1.8 1.6 5.4 2.1 1.3 5.0 6.2 3.9 24 Short-term -1.0 -1.1 2.0 4.9 2.1 7.8 .4 -1.9 5.1 -2.9 5.9 .4 17.2 n.a. 25 Commercial banks 1.7 5.4 .8 -2.5 -.8 * -13.3 -1.0 2.5 -5.3 -1.8 1.4 -.1 -7.7 26 Short-term direct 7.0 9.3 -5.2 -3.6 3.7 -3.2 -10.1 4.2 2.7 2.3 -1.0 11.0 -5.2 n.a. 27 Other direct -5.2 -4.1 5.2 .5 -4.3 2.0 -3.9 -6.3 1.5 -8.7 -.2 -9. 5.2 n.a. 28 Nonguaranteed .8 .5 -.2 1.3 .7 1.1 -1.7 1.1 -.6 .3 -.1 29 Nonbank finance -.3 .8 1.3 -.7 1.6 -1.2 3.2 -2.2 2.2 2.2 3.0 -1.0 2.0 30 Short-term direct 1.2 1.6 .7 -1.3 .8 -1.3 2.1 -1.8 .5 2.3 .3 .2 -3.5 n.a. 31 Other direct -1.7 -.8 .5 .5 .5 .6 -.6 1.6 -.4 2.4 -1.7 3.7 n.a. 32 Nonguaranteed .2 .1 .1 .2 .3 .1 .6 .2 .1 .3 .3 .4 -.1 .1 33 Foreign .5 .4 1.2 .6 .5 3.4 -2.4 .2 -1.6 .8 -.2 3.1 -3.0 1.2 34 Short-term .2 -.7 2.0 -.7 .2 1.2 -2.6 -1.1 -1.3 .4 -1.0 2.7 -2.5 -.1 35 Pvt. domestic nonfinan. sectors.. -5.1 -.8 2.0 5.1 1.5 7.7 6.7 3.4 4.2 6.5 2.2 -6.9 8.2 1.8 36 Short-term direct -4.3 — .3 1.0 2.0 -2.7 4.6 -.2 .9 2.1 -1.3 -6.0 -5.9 6.7 n.a. 37 Other direct -.4 ! * 1.0 3.0 * 4.2 -.7 1.9 5.3 6.6 -1.9 * n.a. 3 3 8 9 N Sa o v n in g g u s a r b a o n n te d e s d —Households.. - -. . 3 1 . . 6 4 1. . 2 9 . . 9 4 2 1 . . 1 1 1 1 . . 1 5 2 1 . . 1 2 -.6 .8 1. . 6 9 .8 - 1 .2 .0 .7 4 1 . . 8 2 IV. Other securities 40 Total net issues, by sector.... 11.1 13.7 11.7 13.0 14.7 13.6 14.0 11.4 13.4 17.0 15.5 12.8 15.8 20.4 40 41 State and local govts 3.6 4.9 5.0 6.7 5.9 7.0 7.5 6.6 4.2 5.9 7.8 5.6 8.0 7.4 41 42 Nonfinancial corporations. 5.3 7.3 5.3 3.4 5.4 2.8 4.2 1.7 6.6 7.0 5.2 2.8 5.1 7.4 42 43 Commercial banks .1 .2 .1 .3 .6 .1 .1 .9 .9 .5 .6 .4 .5 2.6 43 44 Finance companies 1.5 .5 .3 1.6 2.1 1.9 1.7 2.4 1.8 2.8 1.9 1.9 1.1 2.1 44 45 Rest of the world .6 1.0 1.0 .8 1.8 .5 -.2 .9 2.2 1.1 .8 45 46 Net purchases 11.1 13.7 11.7 13.0 14.7 13.6 14.0 11.4 13.4 17.0 15.5 12.8 15.8 20.4 46 47 Households 2.2 2.4 -.6 -.5 3.4 -3.4 1.0 .9 2.4 4.3 3.7 3.1 2.7 2.2 47 48 State and local govts 2.1 1.8 1.2 1.3 1.4 1.5 1.0 1.0 1.0 1.5 1.5 1.6 .9 1.5 48 49 Corporate business 2 49 50 Commercial banks .4 2.6 4.4 5.2 3.5 5.8 6.1 3.3 2.5 3.0 5.6 3.1 7.8 50 51 Insurance and pension funds... 7.1 8.0 7.5 7.7 8.3 8.4 7.7 7.1 8.8 8.7 7.4 8.2 7.5 51 52 Finance n.e.e -.9 -1.3 -.7 -.7 -1.7 1.1 -2.0 -.7 -1.3 -.5 -2.2 -2.8 1.0 52 53 Security brokers and dealers. -.4 -.7 -.2 -1.2 1.0 -1.1 .2 -1.0 .6 -2.0 -2.2 1.1 53 54 Investment cos.—Net -.6 -.5 -.5 -.9 -1.0 -.3 -1.1 -.2 -.6 -1 -.1 54 55 Portfolio purchases 1.4 1.1 .8 1.1 '.9 .9 .9 .1 .6 1.6 2.1 2.1 2.7 55 56 Net issues of own shares.. 1.5 2.0 1.9 1.3 1.6 1.8 1.8 .4 1.6 1.9 2.7 3.3 2.8 56 57 Rest of the world .3 .2 .1 .2 -.2 .1 .2 -.2 .1 -.4 -.1 57 V. Mortgages 58 Total net lending. 16.0 19.5 25.3 29.3 29.5 29.7 31.2 31.0 27.6 30.3 31.2 29.0 27.6 28.2 58 5 6 6 6 9 0 2 1 O 1- t D I h t n o e i r s p 4 b r - u o f r a c s m e e s i d s ly . . . . . . . . 1 1 - 5 0 0 .1 . . . 6 5 4 1 1 7 1 1 . . . . 7 4 8 4 1 1 1 1 3 3 . . . . 4 9 0 4 1 1 1 3 5 5 . . . . 5 6 2 7 1 1 1 - 3 6 5 .3 . . . 8 0 7 1 1 1 5 3 6 . . . . 6 8 4 4 1 1 1 4 6 6 . . . . 5 9 3 3 1 1 1 5 5 5 . . . . 5 4 1 6 1 1 1 - 2 5 5 .3 . . . 5 3 0 1 1 1 - 4 6 6 .4 . . . 3 5 0 1 1 1 - 6 4 6 .4 . . . 9 7 6 1 1 1 - 3 5 5 .2 . . . 9 1 3 1 1 13 4 3 ^ . . 1 6 6 1 1 1 3 5 5 . . . . 1 1 0 1 6 6 5 6 1 2 9 0 63 Net acquisitions 16.0 19.5 25.3 29.3 29.5 29.7 31.2 31.0 27.6 30.3 31.2 29.0 27.6 28.2 63 64 Households , 2.1 2.4 4.0 4.3 4.9 4.5 4.3 4.9 3.8 4.0 5.3 6.4 3.7 3.7 64 65 U.S. Government 1.2 .6 .3 -1.0 .2 -1.9 -.4 .3 .8 .1 -.3 .6 1.2 65 66 Commercial banks... .7 1.6 4.0 4.9 4.4 5.6 5.2 4.5 4.6 4.7 3.9 4.0 4.4 66 67 Savings institutions... 8.9 11.0 13.2 16.0 14.4 16.4 16.5 16.0 14.6 14.8 15.4 13.0 13.2 13.0 67 68 Insurance 2.9 2.7 3.0 3.9 4.8 3.7 4.1 4.4 4.2 4.5 5.1 5.3 5.3 4.3 68 69 Mortgage companies. .6 .5 .4 1.1 1.1 1.0 -.2 1.2 .2 .5 1.2 69 VI. Bank loans n.e.c. 70 Total net borrowing 2.8 3.0 6.5 8.1 10.1 8.5 8.0 14.6 6.3 12.6 3.4 17.9 16.8 17.8 70 71 Nonfinancial business. 2.7 1.7 4.6 5.6 7.0 6.1 5.1 11.5 4.3 8.3 2.9 12.7 11.7 16.0 71 72 Nonbank finance -.3 .1 1.0 1.7 1.0 1.3 2.1 1.9 -.3 3.6 -1.4 2.0 2.2 3.1 72 73 Rest of the world .1 .7 .4 .6 1.9 .5 .7 1.3 2.2 .7 1.6 2.9 2.8 -1.5 73 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Apr. 1965 BULLETIN, p. 607. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1170 BANKING OFFICES AUGUST 1965 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks 1 Mutual savings banks Type of office and type of change All Member Nonmember banks Total Na- In- Non- In- Non- Total tional State Total sured insured sured 1 insured Banks (head office): Dec. 31, 1934... 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941... 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 19472 . 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951.. 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1956.. 14,167 13,640 6,462 4,651 1,811 7,181 6,737 444 223 304 Dec. 31, 1957... 14,090 13,568 6,393 4,620 1,773 7,178 6,753 425 239 283 Dec. 31, 1958... 14,020 13,501 6,312 4,578 1,734 7,192 6,793 399 241 278 Dec. 31, 1959.. 13,991 13,474 6,233 4,542 1,691 7,244 6,878 366 268 249 Dec. 31, I960.. 13,986 13,472 6,174 4,530 1,644 7,300 6,948 352 325 189 Dec. 31, 1961.. 13,946 13,432 6,113 4,513 1,600 7,320 6,997 323 330 184 Dec. 31, 1962.. 13,938 13,427 6,047 4,503 1,544 7,380 7,072 308 331 180 Dec. 31, 1963.. 14,078 13,569 6,108 4,615 1,493 7,461 7,177 284 330 179 Dec. 31, 1964.. 14,266 13,761 6,225 4,773 1,452 7,536 7,262 274 327 178 June 30, 1965.., 14,295 13,791 6,235 4,803 1,432 7,556 7,294 262 327 177 Branches, additional offices, and facilities: Dec. 31, 1934.. 3,133 3,007 2,224 1,243 981 783 783 126 Dec. 31, 1941.. 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 19472 , 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951.. 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1956.. 7,955 7,589 5,886 3,809 2,077 1,703 1,666 37 257 109 Dec. 31, 1957.. 8,609 8,204 6,378 4,178 2,200 1,826 1,789 37 296 109 Dec. 31, 1958.. 9,286 8,861 6,924 4,534 2,390 1,937 1,898 39 305 120 Dec. 31, 1959.. 10,099 9,652 7,492 4,973 2,519 2,160 2,118 42 318 129 Dec. 31, I960.. 10,969 10,483 8,133 5,509 2,624 2,350 2,303 47 381 105 Dec. 31, 1961.. 11,896 11,353 8,899 6,044 2,855 2,454 2,410 44 427 116 Dec. 31, 1962.. 12,932 12,345 9,649 6,640 3,009 2,696 2,646 50 466 121 Dec. 31, 1963.. 14,122 13,498 10,613 7,420 3,193 2,885 2,835 50 502 122 Dec. 31, 1964.. 15,275 14,601 11,457 8,156 3,301 3,144 3,094 50 549 125 June 30, 1965.. 15,838 15,147 11,857 8,464 3,393 3,290 3,240 50 564 127 Changes Jan.-June 30, 1965 Banks: New banks 3 118 116 60 57 56 50 6 Suspensions -4 -4 -2 -2 -2 i i Consolidations and absorptions: Banks converted into branches -73 -72 -39 -30 -9 -33 -30 -3 Vo O lu th n e ta r ry liquidations 4 -1 -1 2 -11 -5 -4 -1 -6 -4 -2 -1 -1 Reopening of suspended bank 1 1 Interclass changes: Nonmember to national -7 -7 Nonmember to State member 1 State member to national -4 State member to nonmember -10 -10 10 Noninsured to National 2 -2 National to nonmember -4 4 Noninsured to insured 11 -11 Net change 29 30 10 30 -20 20 32 -12 -1 Number of banks, June 30, 1965 14,295 13,791 6,235 4,803 1,432 7,556 7,294 262 327 177 Branches and additional offices: De novo 513 497 360 269 91 137 136 12 Banks converted 73 71 55 43 12 16 16 2 Discontinued 5 -23 -21 -15 -10 c -6 -6 -2 Interclass changes: Nonmember to national 11 -11 -11 Nonmember to State member 6 6 -6 -6 State member to national -2 State member to nonmember -13 -13 National to State member -3 3 National to nonmember '-3 T 3 Noninsured to insured 1 -1 -2 Nonmember to mutual 1 -1 -1 Reclassified as branches 8 4 4 4 4 Net change 571 554 405 313 92 149 149 15 2 Number of branches and additional offices, June 30, 1965 15,566 14,875 11,620 8,253 3,367 3,255 3,205 50 564 127 Banking facilities:6 Established , 3 3 2 2 D Fa is c c il o it n ie ti s n u re e c d lassified as branches... -3 -3 -4 T -3 4 -4 -4 Net change -5 -5 -3 -3 Number of facilities, June 30, 1965 . 272 272 237 211 26 35 35 1 State member banks and insured mutual savings bank figures both absorption of banks. include 1 to 3 member mutual savings banks, 1941 to 1962 inclusive, not 5 Includes 2 branches of a suspended bank. reflected in total commercial bank figures. State member bank figures 6 Provided at military and other Govt. establishments through arrangealso include 1 or 2 noninsured trust cos. 1954 to date. ments made by the Treasury Dept. 2 Series revised as of June 30, 1947. The revision resulted in an addition of 115 banks and 9 branches. NOTE.—Beginning with 1959, figures include all banks in Alaska and 3 Exclusive of new banks organized to succeed operating banks. Hawaii, but nonmember banks in territories and possessions are excluded. 4 Exclusive of liquidations incident to succession, conversion, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 FEDERAL RESERVE PAR LIST 1171 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Nonpar Total (nonmember) F.R. District, Total Member Nonmember State, or other area Banks a B n r d a n o c ff h i e ce s s Banks a B n r d a n o c ff h i e ce s s Banks a B n r d a n o c ff h i e ce s s Banks a B n r d a n o c ff h i e ce s s Banks a B n r d a n o c ff h ic e e s s Total, including Puerto Rico and Virgin Islands: * Dec. 31, 1964 13,675 14,724 12,128 14,413 6,224 11,475 5,904 2,938 1,547 311 June 30, 1965 13,705 15,273 12,182 14,964 6,234 11,875 5,948 3,089 1,523 309 F.R. Districts, June 30, 1965: Boston 381 1,098 381 1,098 249 862 132 236 New York 519 2,615 519 2,615 411 2,306 108 309 Philadelphia 543 999 543 999 411 769 132 230 Cleveland 848 1,413 848 1,413 504 1,206 344 207 Richmond 845 1,963 753 1,861 414 1,243 339 618 92 102 Atlanta 1,540 833 1,036 755 511 602 525 153 504 78 Chicago 2,525 1,579 2,525 1,579 1,017 1,029 ,508 550 St. Louis 1,500 554 1,252 489 486 315 766 174 248 65 Minneapolis 1,358 186 752 131 495 75 257 56 606 55 Kansas City 1,902 193 1,901 193 834 133 ,067 60 1 Dallas 1,277 225 1,207 216 677 133 530 83 70 San Frandisco 467 3,615 465 3,615 225 3,202 240 413 2 State or area, June 30, 1965: Alabama 258 146 185 140 108 123 77 17 73 6 Alaska 12 51 10 51 5 43 5 8 2 A A r r i k z a o n n s a as 24 1 6 6 24 9 5 8 15 1 1 6 24 7 5 7 84 5 1 6 9 8 1 6 1 7 1 5 9 4 95 'ii" California 196 2,329 196 2,329 110 2,146 86 183 Colorado 213 8 213 8 134 6 79 2 Connecticut 63 299 63 299 34 241 29 58 Delaware 20 65 20 65 7 35 13 30 District of Columbia 15 87 15 87 12 79 3 Florida 429 18 393 18 200 12 193 36 Georgia 431 180 170 166 70 144 100 22 261 14 Hawaii 7 113 7 113 2 41 5 72 Idaho 25 122 25 122 16 113 9 9 Illinois 1,035 5 1,035 5 530 5 505 Indiana 427 454 427 454 217 306 210 148 Iowa 672 229 672 229 164 41 508 188 Kansas 598 50 598 50 211 33 387 17 Kentucky 346 226 346 226 95 153 251 73 Louisiana 213 242 113 212 57 155 56 57 100 30 Maine 41 168 41 168 27 120 14 48 Maryland 122 381 122 381 57 236 65 145 Massachusetts 160 546 160 546 111 446 49 100 Michigan 359 847 359 847 221 700 138 147 Minnesota 721 9 318 8 221 6 97 2 403 1 Mississippi 195 203 73 135 41 73 32 62 122 68 Missouri 647 58 604 58 179 30 425 28 43 Montana 129 3 129 3 92 3 37 Nebraska 429 28 429 28 138 19 291 Nevada 9 62 9 62 6 54 3 New Hampshire 72 26 72 26 51 23 21 New Jersey 230 654 230 654 194 583 36 71 New Mexico 64 91 64 91 42 56 22 35 New York 343 1.870 343 1.870 282 1,776 61 294 North Carolina 143 722 93 629 34 354 59 275 50 93 North Dakota 166 47 67 21 46 10 21 11 99 26 Ohio 544 911 544 911 351 784 193 127 Oklahoma 418 38 417 38 246 33 171 5 Oregon 51 257 51 257 15 215 36 42 Pennsylvania 573 1 ,189 573 1,189 422 958 151 231 Rhode Island 11 123 11 123 5 79 6 44 South Carolina 131 255 89 246 29 176 60 70 42 9 South Dakota 173 73 69 45 58 37 11 8 104 28 Tennessee 295 305 229 292 83 213 146 79 66 13 Texas 1,137 51 1,111 51 619 25 492 26 26 Utah 56 105 56 105 26 84 30 21 Vermont 47 51 47 51 27 27 20 24 Virginia 272 518 272 518 181 398 91 120 Washington 98 394 98 394 41 363 57 31 West Virginia 186 186 112 74 Wisconsin , 578 170 578 170 162 '"'37' 416 133 Wyoming 69 1 69 1 53 1 16 Puerto Rico * 11 143 11 143 15 11 128 Virgin Islands * 3 7 3 7 6 2 1 1 Puerto Rico and the Virgin Islands assigned to the N.Y. District for NOTE.—Includes all commercial banking offices in the United States, purposes of Regulation J, "Check Clearing and Collection." Member Puerto Rico, and the Virgin Islands on which checks are drawn, including branches in Puerto Rico and all except 2 in the Virgin Islands are branches 272 banking facilities. Number of banks and branches differs from that of N.Y.C. banks. Certain branches of Canadian banks (2 in Puerto Rico in the preceding table because this table includes banks in Puerto Rico and 2 in Virgin Islands) are included above as nonmember banks; and and the Virgin Islands but excludes banks and trust cos. on which no nonmember branches in Puerto Rico include 6 other branches of Canadian checks are drawn. banks. 2 Includes 6 N.Y.C. branches of 2 insured nonmember Puerto Rican banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments 1174 Gold production. . 1175 Net gold purchases and gold stock of the United States. 1176 Estimated foreign gold reserves and dollar holdings 1177 International capital transactions of the United States. 1178 Money rates in foreign countries. . 1187 Arbitrage in Treasury bills. 1188 Foreign exchange rates 1189 U.S. balance of payments 1190 Foreign trade. 1191 Guide to tabular presentation. 1108 Index to statistical tables 1197 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). ury regulations thereunder. Other data are com- 1173 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1174 GOLD RESERVES AUGUST 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 S n ta 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 worldl 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 41,470 2,194 16,057 23,220 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— J J u u l n y e 42,950 2 2 , , 3 3 5 5 9 9 1 1 5 5 , , 6 6 2 2 9 3 24,970 ' ' 3 3 6 6 7 7 4 4 2 2 1 1 8 9 5 5 9 9 2 2 1 , , 3 39 9 3 2 1 1 2 2 0 0 4 4 2 2 9 9 3 4 1 9 4 4 3 3 Aug 2,424 15,657 '36 73 221 592 ,395 120 42 969 43 Sept 43,070 2,425 15,643 '36 73 223 592 1,395 120 42 990 43 Oct 2,425 15,606 25,000 r36 73 224 592 1,404 92 42 1,001 43 Nov 2,430 15,566 '36 73 224 592 1,434 92 42 1,007 43 Dec 43,060 2,179 15,471 r36 71 226 600 1,451 92 84 1,026 43 25,410 1965 Jan 2,181 15,208 '36 71 228 600 1,461 92 84 1,036 43 Feb 2,188 14,993 36 70 228 613 1,473 92 84 1,041 42 Mar ^42,810 2,189 14,639 25,980 36 70 229 625 1,484 92 84 1,044 43 Apr . . 2,217 14,480 36 70 230 638 1,490 62 84 1,045 43 May 1,822 14,362 36 68 230 650 1,532 62 84 1,081 42 June 21,832 14,049 36 230 663 561 84 1,089 42 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 1960 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 35 142 98 60 2,343 289 1964—June 65 92 65 3,451 4,081 77 247 141 112 56 2,148 July 66 92 65 3,489 4,117 77 247 141 112 56 2,153 290 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 Oct 58 92 64 3,598 4,149 98 247 141 112 56 2,104 290 Nov 58 92 64 3,632 4,149 98 247 141 112 56 2,104 Dec 58 92 85 3,729 4,248 77 247 141 112 56 2,107 304 1965—Jan 59 92 85 3,913 4,250 77 270 141 112 56 2,107 Feb 60 92 85 3,974 4,251 78 281 141 112 56 2,101 Mar 60 92 85 4,197 4,243 82 281 141 112 56 2,093 304 Apr 92 85 4,255 4,243 80 281 141 122 56 2,351 May 97 85 4,400 4,378 80 281 141 56 2,384 June 97 85 4,433 4,378 84 281 141 122 56 2,384 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 1,050 43 49 19 10 493 211 1959 . n.a. 102 142 23 1,132 30 50 28 9 548 18 238 1960 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 1,581 20 30 53 47 41 471 78 499 1963 48 172 139 29 1,601 20 31 53 57 28 497 78 630 1964 June 50 172 168 34 1,601 20 31 53 67 26 508 78 607 July 48 172 172 34 1,601 20 31 53 67 28 510 78 615 Aug 46 172 170 34 1,601 20 31 53 67 29 523 78 597 Sept 46 172 170 34 1,601 20 31 53 67 30 523 78 589 Oct 45 172 169 34 1,611 20 31 53 67 31 523 78 601 Nov 45 167 34 1,621 20 31 53 67 32 523 78 592 Dec 48 169 34 1,688 20 31 53 67 23 523 78 574 183 1965 Jan 48 174 34 1,688 20 31 53 67 24 523 78 545 Feb 48 171 34 1,723 20 31 53 67 26 532 78 519 Mar 49 170 34 1,723 20 31 53 67 27 r538 78 498 Apr 48 182 168 34 1,723 20 31 53 67 28 540 78 453 May 48 34 1,756 20 31 53 67 30 544 78 408 June 49 143 34 1,756 20 31 53 67 31 547 78 375 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 GOLD RESERVES AND PRODUCTION 1175 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d i o o d f Spain Sweden Sw la i n tz d er- 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 i o n it m g e - d U gu r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n o tt t r l l e . - E E P F U 4 ments 3 1958 57 204 1,925 43 112 144 174 2,808 180 719 -42 126 1959 68 191 1,934 41 104 133 174 2,514 180 652 -134 40 1960 178 170 2,185 41 104 134 174 2,800 180 401 -19 55 1961 316 180 2,560 43 104 139 174 2,268 180 401 115 56 1962 446 181 2,667 43 104 140 174 2,582 180 401 -50 56 1963 573 182 2,820 50 104 115 174 2,484 171 401 -279 47 1964—June 575 182 2,599 54 104 115 174 2,439 171 401 40 28 July. 577 182 2,560 55 104 115 174 171 401 64 Aug. 576 182 2.530 55 104 105 174 171 401 95 Sept. 576 182 2,532 55 104 105 174 2,302 171 401 66 28 Oct.. 575 182 2,532 55 104 105 174 171 401 71 Nov. 576 182 2,532 55 104 105 174 171 401 79 Dec. 616 189 2,725 55 104 104 139 2,136 171 401 -50 43 1965—Jan.. 646 189 2,702 55 104 139 171 401 -111 Feb. 677 189 2.702 55 104 115 139 171 401 -159 Mar. 706 189 2,702 55 104 115 139 2,111 171 401 -104 53 Apr. 735 189 2,713 55 104 116 139 171 401 -98 May 780 202 2,688 55 104 126 139 171 401 -164 June 780 202 2,789 96 126 171 401 -249 1 Includes reported or estimated gold holdings of international and 2 Excludes gold subscription payment of $259 million by the U.S. in regional organizations, central banks and govts. of countries listed in anticipation of increase in Fund quota. this table and also of a number not shown separately here, and gold to be 3 Net gold assets of BIS, i.e., gold in bars and coins and other gold distributed by the Tripartite Commission for the Restitution of Monetary assets minus gold deposit liabilities. Gold; excludes holdings of the U.S.S.R., other Eastern European coun- 4 European Payments Union for 1958 and European Fund thereafter. tries, and China Mainland. The figures included for the Bank for International Settlements are NOTE.—For back figures and description of the data in this and the the Bank's gold assets net of gold deposit liabilities. This procedure following tables on gold (except production), see "Gold," Section 14 of avoids the overstatement of total world gold reserves since most of the Supplement to Banking and Monetary Statistics, 1962. 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 d R e h s o ia - Ghana ( p L o e ld o - - U S n ta i t t e e s d C a a d n a - M ic e o x- r N a i g c u a a - Co b l i o a m- India p P i h n i e li s p- t A ra u l s i - a 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 ,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 r1,290.0 892.2 19.4 31.1 7.1 54.5 r146.2 8.3 7.8 13.9 5.7 14.8 37.4 '51.6 1963 ,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 1964 . 19S 0 1,019.8 20.1 30.3 4.4 51.4 M33.4 7.4 7.4 1? 8 '5.2 14.9 33.7 54.2 1964— J M un ay e 8 8 3 5 . . 4 4 1 1 . . 7 6 2 2. . 4 6 "i-lYs 1 1 0 0 . . 7 8 . . 4 3 i .4 4 1 1 .2 2 2 3 .7 0 July 86.9 1.7 2.4 11.3 .4 .0 .4 1 .2 3.0 Aus .. 87.2 1.7 2.5 11.3 .7 .0 .4 1.3 3.1 Sept 88.2 1.6 10.9 .5 .9 .4 1.2 2.5 Oct 89.9 1.6 11.5 .8 .0 .5 2.8 Nov 88.0 1.8 11.5 .6 l .4 3.0 Dec 84.2 1.9 10.8 .5 .8 .4 "23'!5' 2.8 1965—Jan 87.4 1.6 10.8 .9 .4 2.8 Feb 85.3 1.6 9 8 1 l Mar 86 8 10 8 Apr 88.0 11 3 May. 10.4 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

1176 U.S. GOLD AUGUST 1965 NET GOLD PURCHASES OR SALES BY THE UNITED STATES, BY COUNTRY (In millions of dollars at $35 per fine troy ounce) 1964 1965 Area and country 1956 1957 1958 1959 1960 1961 1962 1963 1964 I II III IV I Western Europe: Austria — 84 — 83 — 1 — 143 — 82 —55 — 32 —23 -25 Belgium 3 3 -329 -39 -141 -144 -63 -40 -40 -40 France -34 -266 -173 -456 -518 -405 -101 -101 -101 -101 -482 Germany Fed. Rep. of. . . — 34 — 23 -225 — 200 —25 Italy — 349 100 200 200 Netherlands 25 -261 -30 -249 -25 — 60 -60 -35 20 10 Spain .... 31 32 — 114 — 156 — 146 — 130 — 32 —2 — 30 —90 Switzerland -8 -215 20 -324 -125 102 -81 -30 -51 -37 United TCinsdom 100 -900 -350 -550 -306 -387 329 618 109 221 163 125 -76 Bank for Intl. Settlements. 178 32 36 23 Other 18 8 -21 -38 -96 -53 -12 1 -7 -7 14 -1 -14 -17 Total 80 68-2,326 -827 -1,718 -754 -1,105 -399 -88 -31 79 35 -171 -802 15 5 190 Latin American republics: 115 75 67 -50 -90 85 -30 Brazil — 28 1 — 11 - — 6 2 — 2 5 3 7 8 72 5 1 4 0 -1 28 — 10 1 28 * — 1 -30 -20 -4 Venezuela -200 65 Other 29 6 2 -5 -22 -17 -5 -7 -9 -3 -3 2 -2 -7 Total -28 81 69 19 -100 -109 175 32 56 -4 25 7 27 -8 Asia: -30 -157 -15 Other * is A -28 -97 1-101 2-93 312 3 5 -1 1 * Total * 18 -34 -186 -113 -101 -93 12 3 5 _j -1 * All other 14 -3 -5 -38 -6 -36 -7 2 -9 -1 1 i Total foreign countries 80 172 -2,294 -998 -1,969 -970 -833 -392 -36 -28 95 41 -145 -811 Tntl TVTonetarv Fund 4200 600 5-44 4300 150 Grand total 280 772 -2,294 -1,041 -1,669 -820 -833 -392 -36 -28 95 41 -145 -811 1 Includes sales of $21 million to Lebanon and $48 million to Saudi 4 Proceeds from this sale invested by the IMF in U.S. Goyt. 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 million 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 Gold stock i Foreign Month Gold stock i Foreign Total Total2 Treasury c h u o r l r d e i n n c g y s Total T g o o t l a d l Total Total 2 Treasury h c o u l r d re in nc g y s3 Total T g o o t l a d l 1952 23,252 23,252 23,187 379 379 1964—July.... 15,840 15,629 15,462 211 35 6 1953 22,091 22,091 22,030 -1,161 -1,161 Aug.... 15,890 15,657 15,460 233 50 28 1954 21,793 21,793 21,713 -298 -298 Sept.... 15,870 15,643 15,463 227 -20 -14 1955 21,753 21,753 21,690 -40 -40 Oct 15,702 15,606 15,461 96 -168 -37 1956 22,058 22,058 21,949 305 305 Nov.... 16,324 15,566 15,386 758 622 -40 1957 22,857 22,857 22,781 799 799 Dec... 15,903 15,471 15,388 432 -421 -95 1958 20,582 20,582 20,534 -2,275 -2,275 1965—Jan 15,572 15,208 15,185 364 -331 -263 1959 19,507 19,507 19,456 -1,075 4-1,075 Feb.... 15,220 14,993 14,937 227 -352 -215 1960 17,804 17,804 17,767 -1,703 -1,703 Mar.... 15,129 14,639 14,563 490 -91 -354 1961 17,063 16,947 16,889 -741 -857 14,884 14,480 14,410 404 -245 -159 1962 16,156 16,057 15,978 99 -907 -890 May.'!'. 14,511 14,362 14,290 149 -373 -118 1963 15,808 15,596 15,513 212 -348 -461 June... 14,595 14,049 13,934 546 84 5-313 1964 15,903 15,471 15,388 432 95 -125 14,697 13,969 13,858 728 102 -80 1 Includes gold sold to the United States by the International Mone- 5 Includes payment of $259 million increase in U.S. gold subscription tary Fund with the right of repurchase, which amounted to $800 million to the IMF. on July 31, 1965. 2 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 11 on p. 1185 for gold held under earmark at F.R. 3 For holdings of F.R. Banks only, see pp. 1118 and 1120. Banks for foreign and international accounts. Gold under earmark is 4 Includes payment of $344 million increase in U.S. gold subscription not included in the gold stock of the United States. to the IMF. See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 GOLD RESERVES AND DOLLAR HOLDINGS 1177 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 31, 1963 Mar. 31, 1964 June 30, 1964 Sept. 30, 1964 Dec. 31, 1964 Mar. 31, 1965 Area and country Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. Gold& U.S. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. term bonds term bonds term bonds term bonds term bonds term bonds dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes Western Europe: Austria 901 911 902 947 923 872 Belgium 1,791 1,782 1,832 1,821 1,887 1,897 Denmark 253 14 259 14 289 14 352 428 14 430 14 Finland 160 1 176 167 1 174 212 1 201 1 France 4,653 6 4,709 7 5,003 7 5,093 5,392 7 5,530 7 Germany, Fed. Rep. of 6,884 1 6,811 1 6,616 1 6,437 6,258 1 6,131 Greece 265 • 239 * 227 * 225 252 * 232 Italy 3,146 1 2,927 1 3,039 1 3,225 3,729 1 3,539 1 Netherlands 1,961 4 1,898 4 1,824 5 1,964 4 2,055 5 2,036 5 Norway 164 131 135 131 188 131 205 101 215 98 234 68 Portugal 688 691 * 698 * 747 * 780 * '802 * Spain 778 807 2 839 2 972 2 1,010 2 984 2 Sweden 591 129 610 130 615 130 733 90 833 40 928 40 Switzerland 3,726 75 3,528 77 3,737 77 3,653 78 4,095 79 3,927 78 Turkey 136 * 135 * 129 * 123 * 140 * 142 * U O n th i e te r d * Kingdom 3, 3 9 6 6 9 7 3 4 2 6 8 4,2 5 4 59 5 3 4 8 9 0 4,1 5 5 1 3 4 4 4 0 8 2 4, 4 2 9 2 1 2 4 4 0 9 2 4,0 50 2 8 0 4 4 1 9 4 4,3 3 0 90 8 4 4 0 9 7 Total 30,433 741 30,422 800 30,772 822 31,384 753 32,737 714 '32,583 676 Canada 3,805 687 3,555 686 3,674 686 3,863 695 4,010 690 3,565 735 Latin American republics: Argentina 453 452 424 386 362 371 Brazil 329 329 294 330 350 421 Chile 186 181 227 224 219 207 Colombia 231 244 238 226 267 229 Cuba 12 11 11 10 12 11 Mexico 808 837 817 808 904 913 Panama, Republic of 129 91 105 89 99 111 Peru 215 230 271 271 273 334 Uruguay 284 277 276 280 282 294 Venezuela 992 1,017 1,057 1,076 1,135 1,103 Other 424 463 487 465 478 538 Total 4,063 14 4,132 4,207 4,165 4,381 4,532 Asia: India 298 302 311 307 306 342 Indonesia 83 81 77 63 73 62 Japan 2,773 2,758 2,757 2,882 3,044 3,137 Philippines 237 232 230 260 256 278 Thailand 486 513 529 546 562 592 Other 1,687 41 1,893 38 '1,943 42 '1,994 45 '2,059 43 2,222 43 Total 5,564 47 5,779 44 '5,847 48 '6,052 51 '6,300 49 6,633 ~53 Africa: South Africa 671 670 645 635 621 547 U.A.R. (Egypt) 188 198 196 196 163 163 Other 296 293 10 287 10 288 14 283 16 317 16 Total 1,155 1,161 10 1,128 10 1,119 1,067 16 1,027 Other countries: Australia 388 373 384 392 402 411 Allother 313 308 25 350 26 358 28 374 26 421 Total 701 26 681 25 734 26 750 28 776 26 832 31 Total foreign countries 2 45,721 1,524 45,730 1,570 '46,362 1,596 '47,333 1,546 '49,271 1,501 r49,172 1,516 International and regional 6,958 1,218 7,067 1,170 7,294 1,068 7,499 923 7,162 904 7,279 798 Grand total2 52,679 2,742 52,797 2,740 '53,656 2,664 '54,832 2,469 '56,433 2,405 '56,451 2,314 1 Includes, in addition to other Western European countries, unpub- NOTE.—Gold and short-term dollars include reported and estimated lished gold reserves of certain Western European countries; gold to be official gold reserves, and official and private short-term dollar holdings distributed by the Tripartite Commission for the Restitution of Mone- (principally deposits and U.S. Treasury bills and certificates); excludes tary Gold; European Fund; and the Bank for International Settlements nonnegotiable, non-interest-bearing special U.S. notes held by the Inter- (the figures for the gold reserves of the BIS represent the Bank's net American Development Bank and the International Development Assn. gold assets.) U.S. Govt. bonds and notes are official and private holdings of U.S. 2 Excludes gold reserves of the U.S.S.R., other Eastern European Govt. securities with an original maturity of more than 1 year; excludes countries, and China Mainland. nonmarketable U.S. Treasury bonds and notes held by official institutions 3 Includes international organizations and Latin American and Euro- of foreign countries as shown in Table 8 on p. 1184. pean regional organizations, except the Bank for International Settlements See also NOTE to table on gold reserves. and European Fund, which are included in "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1178 INTL. CAPITAL TRANSACTIONS OF THE U.S. AUGUST 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 a i 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 A re m p L u e a b r t i i l c n 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 1,664 1,058 2,731 154 176 1964 June 19,337 5,994 13,343 7.491 1 488 1,153 2,911 136 164 July 19,318 5,979 13,339 7^426 ,472 1 239 2 889 146 167 Aug 19,415 5,925 13,490 7,636 ,492 1,152 2,906 139 165 Sept . . 19,518 5,989 13,529 7,714 ,495 1,074 2,928 146 172 Oct 19,429 5,964 13,465 7,517 1,533 1 .175 2 904 158 178 Nov 19,802 5,954 13,848 7,824 1,577 1,191 2,930 152 174 Dec 20,225 5,876 14,349 8,270 ,483 ,238 3,020 160 178 1965 Jan 19 519 5.822 13,697 7,551 ,449 265 3 096 159 177 Feb 19,606 5,780 13.826 7.644 ,419 ,278 3 124 180 181 Mar 19,317 5,879 13.438 7,255 1,316 ,296 3,213 178 180 Apr . . 18,992 5,883 13,109 6,953 1,308 1 305 3 175 180 188 May*1 18,732 5,660 13.072 6,822 ,304 1,389 3,166 191 200 JuneP 18,935 5,646 13,289 7,175 ,275 1,292 3,157 193 197 1 Includes international organizations, and Latin American and Euro- as reported by banks in the United States, and estimated foreign official pean regional organizations, except the Bank for International Settlements holdings of marketable U.S. Govt. securities with an original maturity and the European Fund which are included in Western Europe. of more than 1 year. Data exclude nonnegotiable, non-interest-bearing 2 Includes Bank for International Settlements and European Fund. special notes held by the Inter-American Development Bank and the International Development Association, and also nonmarketable U.S. NOTE.—Data represent short-term liabilities to the official institutions Treasury notes and bonds, payable in dollars and in foreign currencies. of foreign countries and to official international and regional organizations, 2. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional l Foreign E pe n r d i o o d f G to ra ta n l d Total Intl. g E i p o r u e n e r a a - o n l - 2 g L i r o . e A n - a . l Total c O ia ff l i - 3 Other Europe Canada Am La e t r i i n ca Asia Africa O c t o r t i u h e n e s r - 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 25,967 4,637 4,501 18 118 21,330 12,467 8,863 \o,no 2,988 3,137 4,001 241 194 1964—June.... 26,328 4,926 4,755 25 146 21,402 12,102 9,300 10,662 2,743 3,313 4,271 227 186 July.... 26,894 4,911 4,748 18 144 21,983 12,121 9,862 10,791 3,030 3,400 4,339 233 190 Aug 27,277 4,918 4,757 18 143 22,359 12,312 10,047 11,148 3,064 3,358 4,383 224 183 Sept 27,406 5,065 4,910 17 138 22,341 12,351 9,990 11,285 2.873 3,290 4,474 231 189 Oct 28,039 5,061 4,900 18 143 22,978 12,300 10,678 11,233 3,405 3,411 4,497 244 188 Nov 28,975 5,051 4,889 18 144 23,924 12,723 11,201 12,012 3,461 3,480 4,553 238 181 Dec. 5. . 28,843 4,974 4,802 22 150 23,869 13,224 10,645 12,240 2,984 3,556 4,660 238 192 1965—Jan 28,777 4,986 4,811 19 156 23,791 12.588 11,203 11,990 2,961 3,611 4,765 246 218 Feb 28,909 4,982 4,815 17 150 23,927 12,685 11,242 12,011 2,941 3,668 4,834 273 199 Mar.... 28,282 5,081 4,916 19 146 23,201 12,297 10,904 11,521 2,521 3,739 4,953 263 204 Apr 27,834 5,085 4,914 15 157 22,749 11,968 10,781 11,007 2,549 3,767 4,948 268 210 May»... 27,416 4,863 4,696 13 153 22,553 11,946 10,607 10,747 2,509 3,849 4,945 283 221 June*3... 27,681 4,848 4,689 15 144 22,833 12,163 10,670 11,259 2.403 3,719 4,947 277 228 1a. Europe Ger- End of period Total Austria Belgium m De a n rk - l F a i n n d - France m F a e n d v '. , 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 ,157 2,730 119 1,384 248 125 161 177 490 1963 .. 10,770 365 420 161 99 ,478 3,041 188 803 360 133 191 205 409 1964—June.... 10,662 310 440 197 102 ,552 2,535 150 891 223 157 190 264 433 July 10,791 327 396 213 105 ,558 2,360 146 928 310 167 216 296 451 Aug 11,148 355 424 229 105 ,525 2,361 133 1,057 317 171 230 376 509 Sept 11,285 355 426 260 109 ,529 2,288 132 1,121 363 174 224 396 551 Oct 11,233 293 444 269 112 ,524 2,184 159 1,263 356 186 228 409 563 Nov.... 12,012 349 473 280 110 ,600 2,152 172 1,434 447 182 228 410 653 Dec 12,240 323 436 336 127 ,663 2,010 175 1,622 367 184 257 394 644 1965—Jan 11,990 296 470 344 129 ,530 1,928 165 1,592 355 153 257 408 682 Feb 12,011 269 459 334 126 ,584 1,910 152 1,571 339 174 267 338 717 Mar.... 11,521 247 413 338 116 ,333 1,888 150 1,446 313 203 264 278 739 Apr 11,007 215 460 318 122 1,273 1,874 148 1,345 328 197 264 244 724 May*... 10,747 206 460 258 113 1,174 1,706 148 1,357 286 205 247 197 748 June*\.. 11,259 222 420 271 104 1,211 1,540 151 1,440 278 232 248 231 719 For notes see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1179 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 - W E O u e r t s h o t e e p r r e n 6 U.S.S.R. E E O u as t r h t o e e p r r e n Total A t r i g n e a n- Brazil Chile Co b l i o a m- Cuba Mexico I960 678 18 1,667 10 357 12 14 2,308 315 194 135 158 77 397 1961 875 26 2 79.7 12 325 5 16 2,340 235 228 105 147 43 495 1962 908 25 ,609 11 351 3 19 2,448 210 204 135 148 715 531 1963 906 21 ,483 16 465 2 24 3,137 375 179 143 169 11 669 1964—June.... 1,138 14 1,714 14 309 3 25 3,313 350 174 184 173 11 649 July.... 1,121 13 1,864 14 278 4 23 3,400 336 176 168 164 10 666 Aug 1,102 12 1,951 13 254 3 21 3,358 307 221 172 149 10 674 Sept 1,121 18 1,920 16 260 3 20 3,290 313 210 181 169 10 638 Oct 1,083 22 1,848 12 254 2 23 3,411 305 233 163 162 10 663 Nov.. . . 1,199 27 2,004 15 251 3 21 3,480 279 253 151 177 10 773 Dec 1,370 36 1,884 32 358 3 19 3,556 291 258 176 209 12 735 1965 Jan 1 321 26 2 035 21 253 3 24 3 611 298 280 189 177 12 699 Feb 1,308 21 2,074 17 324 2 24 3,668 301 305 161 197 11 710 Mar 1,225 27 2,197 21 296 2 24 3,739 301 329 164 169 11 743 Apr 1,209 19 1,890 17 339 3 21 3,767 314 298 159 171 11 700 May*... 1,199 22 2,055 16 328 2 19 3,849 337 370 161 180 11 726 June23... 1,272 19 2,464 18 395 2 21 3,719 3.0 338 198 159 11 685 2b. Latin America—Continuec 2c. 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 - O L r t e . h A p e . . r B B e a r h m & a u m d a a s 8 A S n N u ti r 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 8 Total C M la h a n i i n d n a - H K o o n n g g India n d I e n o s - i - a Israel 1960 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 4,001 35 66 51 48 112 1964—June 105 204 105 656 426 166 93 16 4,271 36 71 64 42 135 July.... 85 218 106 769 427 171 93 14 4,339 35 75 62 40 133 Aug 92 214 112 707 419 166 96 19 4,383 35 80 56 27 129 Sept 89 204 109 675 404 175 98 16 4,474 36 77 60 28 134 Oct 96 199 113 763 405 178 105 16 4,497 36 74 55 36 132 Nov 103 196 111 714 410 174 113 15 4,553 35 85 63 37 140 Dec 99 206 111 734 416 181 114 14 4,660 35 95 59 38 133 1965—Jan 102 242 115 764 419 183 115 16 4,765 35 96 65 26 131 Feb 111 244 119 720 446 209 118 16 4,834 35 100 70 30 134 Mar. ... 111 267 123 702 474 212 114 19 4,953 35 95 61 27 128 Apr 105 248 128 800 482 222 110 21 4,948 35 97 65 28 116 May P. .. 113 262 118 761 463 211 112 23 4,945 35 100 67 29 107 Junep... 124 262 124 696 472 206 115 19 4,947 35 94 72 23 111 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 - T w a a i n - T la h n a d i- O A t s h i e a r Total (L C e v o o il n p le g o ) o ld- ro M cc o o - 8 A So fr u ic th a ( U E . g A y . p R t) . A O f t r h ic e a r Total t A ra u l s ia - ot A he ll r 8 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 2,484 113 209 149 382 353 241 26 49 41 14 112 194 180 13 1964—June 2,467 106 204 232 425 490 227 25 17 38 22 125 186 166 19 July 2,478 100 218 249 426 523 233 24 20 44 24 119 190 168 22 Aug 2,545 101 216 248 439 507 224 23 18 38 20 124 183 162 20 Sept 2,592 103 230 238 442 533 231 24 17 46 22 123 189 169 20 Oct ... 2 587 103 227 240 437 571 244 26 8 48 23 139 188 165 23 Nov 2,608 106 228 221 444 585 238 25 7 51 19 135 181 163 18 Dec 2,740 104 233 221 458 543 238 26 7 47 24 135 192 176 15 1965 Jan 2,738 116 243 225 471 618 246 23 8 57 28 131 218 201 18 Feb 2,765 111 259 230 484 615 273 33 8 62 28 142 199 178 21 Mar 2,833 100 252 232 488 703 263 37 9 49 24 143 204 182 22 Apr .... 2,766 93 252 232 488 774 268 35 10 53 25 146 210 184 25 May?. .. 2,771 91 248 227 494 776 283 31 16 54 27 154 221 198 23 Junep... 2,803 88 250 229 496 747 277 30 18 49 22 158 228 203 25 1 International Bank for Reconstruction and Development, Inter- 5 Includes revisions arising from changes in reporting coverage as national Monetary Fund, International Finance Corp., International follows (in millins of dollars): Total +20; Europe —13; Canada +1; Development Assn., and other international organizations; Inter-Amer- Latin America +19; Asia +22; Africa -9. ican Development Bank, European Coal and Steel Community, European 6 Includes Bank for International Settlements and European Fund. Investment Bank and other Latin American and European regional 7 Decline from end of 1961 reflects principally reclassification of deorganizations, except Bank for International Settlements and European posits for changes in domicile over the past few years from Cuba to other Fund which are included in "Europe." countries. 2 Not reported separately until 1962. 8 Data based on reports by banks in the Second F.R. District only for 3 Foreign central banks and foreign central govts. and their agencies, year-end 1960-1962. and Bank for International Settlements and European Fund. 4 Includes $82 million reported by banks initially included as of Dec. For NOTE see end of Table 2. 31, 1961, of which $81 million reported for Japan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1180 INTL. CAPITAL TRANSACTIONS OF THE U.S. AUGUST 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 Data 9; (end of period) 1963 1964 1965 1963 1964 1965 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia (Cont.): Iceland . . .. 7 0 4 7 5 2 7 1 Iran . 23 5 33 4 23 4 62 0 Ireland, Rep. of 10.7 6.0 8.7 6.3 19.8 22.9 21.6 n.a. Luxembourg 7.4 8.6 17.4 20.1 Jordan . . 2.8 2.7 2.7 n.a. Monaco 2.7 2.4 4.1 3.6 Kuwait 46.5 49.9 56.4 52.0 Laos 8.8 6.5 5.0 5.0 Other Latin American republics: 76.3 108.1 84.2 113.2 Bolivia 32.6 35.1 43.2 53.1 Malaysia 24.1 24.3 22.2 36.3 Costa Rica 29.1 35.9 31.5 28.6 17.3 16.1 23.1 24.8 Dominican Republic 58.0 40.6 55.8 47.3 Ryukyu Islands (incl. Okinawa) . 21.7 31.6 25.6 32.7 53.4 62.1 67.1 65.2 Saudi Arabia 61.7 151.0 197.2 288.0 El Salvador ... 41.7 57.8 56.0 71.7 Syria .. 2.1 5.7 7.6 3.2 Guatemala 47.9 65.1 48.7 71.6 Viet-Nam 12.1 17.9 19.0 19.7 Haiti 12.9 17.3 14.3 15.4 Honduras 20.0 26.3 26.0 33.0 Other Africa: Jamaica 6 5 4 7 7 0 7 8 Algeria .. 9 1 0 1 5 2 1 Nicaragua . . .. 35.0 52.3 42.4 67.4 Ethopia incl Eritrea 22.3 32.1 33.7 45.2 8.9 8.4 11.4 12.1 Ghana 6.4 6.3 5.6 5.1 Trinidad & Tobaeo 5 7 5 5 7 4 8 6 Liberia 22 0 17 8 20 0 17 6 Libya 14.1 14.9 28 9 26.8 Other Latin America: M^ozambioue 1.4 1.4 2.5 1.6 British West Indies 7.3 6.3 8.0 16.0 Nigeria 17.8 17.3 15.7 n.a. French West Indies & French Somali Republic .8 .8 .5 .8 Guiana 1.3 .6 1.1 1.4 Southern Rhodesia 3 6 3 5 3 0 2.6 Sudan 2.5 2.0 2.2 2.2 Other Asia: Tunisia 1.0 .8 .9 1.0 Afghanistan 5.0 4.2 5.5 6.3 Burma . .. 9.9 22.1 32.5 n.a. All other: Cambodia 6.9 2.1 1.5 1.7 10.5 18.8 12.0 19.7 3.1 3.7 2.4 2.7 9 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 descrip- NOTE.—Short-term liabilities are principally deposits (demand and tion of the data in this and the following tables on international capital time) and U.S. Govt. securities maturing in not more than 1 year from transactions of the United States, see "International Finance,'' Section their date of issue; the latter, however, exclude nonnegotiable, non- 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 banks and official institutions 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 Time i certificates Demand Time i certificates I960 21,272 18,929 7,!68 7,491 2,469 1,401 2,230 1,{49 148 233 113 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 25,967 22,787 5,629 3,673 8,571 3,036 1,878 3,047 1,493 966 119 469 134 1964—June 26,328 23,070 5,772 3,722 7,866 3,289 2,421 3,135 1,496 ,080 75 484 123 July 26,894 23,638 6,210 3,787 7,914 3,289 2,438 3,132 1,464 1,095 86 487 123 27,277 23,993 6,359 3,769 8,163 3,275 2,427 3,161 1,450 1,135 91 485 124 Sept 27,406 24,038 6,243 3,752 8,180 3,425 2,439 3,237 1,478 1,178 101 480 132 Oct 28,039 24,683 6,764 3,856 8,133 3,394 2,536 3,250 1,449 1,196 105 500 106 Nov 28,975 25,563 7,310 3,880 8,470 3,385 2,518 3,302 1,500 1,206 84 512 111 Dec.5 28,843 25,376 6,713 3,994 8,727 3,308 2,634 3,377 1,531 1,271 72 503 90 1965—Jan 28,777 25,297 6,849 4,047 8,560 3,303 2,538 3,383 1,509 1.295 81 497 97 Feb 28 909 25,405 6,753 4,032 8,601 3,303 2,716 3,431 1,516 1,320 79 515 73 Mar 28,282 24,736 6,628 3,970 7,972 3,373 2,793 3,482 1,541 1,362 79 501 64 Apr 27,834 24,272 6,226 3.982 7,762 3,367 2,936 3,478 1,546 1,393 77 461 84 MayP 27,416 23,884 6,081 3,932 7,685 3,167 3,018 3,442 1,517 1,401 79 445 90 June*3 27,681 24,111 6,434 3,911 7,640 3,167 2,959 3,469 1,523 1,414 86 446 101 1 Excludes negotiable time certificates of deposit which are included time certificates of deposit. in "Other." 4 These figures reflect the inclusion of data for banks initially included 2 Nonnegotiable, non-interest-bearing special U.S. notes held by the as of Dec. 31, 1961. International Monetary Fund; excludes such notes held by the Inter- 5 Includes revisions arising from changes in reporting coverage as national Development Assn. and the Inter-American Development follows (in millions of dollars): Total +20; foreign banks, etc. +26; Bank, which amounted to $288 million on June 30, 1965. other foreigners +22; payable in foreign currencies —28. 3 Principally bankers' acceptances, commercial paper, and negotiable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1181 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 co O un t t h r e ie r s 2 1960. 3,614 717 421 1,356 1,052 69 1961. ,820 767 556 1,522 3 1,891 85 1962. 5,163 877 526 1,606 2,017 137 1963. 5,975 939 638 1,742 2,493 104 58 1964—June.. 6,897 1,164 855 1,852 2,874 100 52 July... 6,727 1,075 746 1,912 2,837 98 58 Aug... 6,775 1,048 746 1,932 2,891 98 60 Sept... 6,806 1,064 675 1,984 2,923 101 58 Oct.. . 6,912 1,164 629 2,020 2,925 108 66 Nov... 6,964 1,129 627 2,098 2,934 109 67 Dec... 7,469 1,217 725 2,212 3,137 120 58 Dec. 4. '7,846 1,230 '913 '2,230 3,278 131 63 1965—Jan.... '7,638 '1,174 '889 2,201 '3,203 112 56 Feb... '7,754 1,185 '942 2,239 '3,218 '118 51 Mar... '7,820 '1,185 '881 '2,190 3,380 130 53 Apr... 7,683 1,167 800 2,173 3,356 129 57 May*5. 7,658 1,173 750 2,186 3,355 136 57 7,638 1,163 708 2,166 3,394 146 61 4a. Europe End of period Total A tr u ia s- g B iu e m l- m De a n rk - l F a i n n d - France 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- I960 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—June 1.164 7 31 16 63 86 135 10 114 45 41 16 28 32 July 1,075 7 29 17 65 79 114 11 100 46 34 19 31 31 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 1,164 9 35 15 69 76 173 10 113 40 36 21 28 43 Nov 1,129 7 34 16 71 76 175 10 122 42 41 20 32 41 Dec 1,217 10 42 28 85 79 159 9 109 39 43 19 40 47 Dec 4 [,230 11 48 26 84 81 152 10 114 36 43 23 40 49 1965 Jan 1,174 9 57 18 77 89 189 11 106 33 46 28 32 51 Feb T ,185 9 72 20 76 '84 203 9 125 42 44 26 26 45 Mar r1,185 10 49 21 77 '75 186 10 138 46 49 34 32 44 Apr 1,167 9 49 27 77 82 173 10 123 47 49 36 43 47 May1" 1.173 9 43 23 75 83 184 14 116 44 51 36 46 38 Junep 1,163 9 40 19 74 86 167 11 113 46 50 34 38 42 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 i n m t g e - d Y sl u av g i o a - W E O u e t r s h o t e e p r r e n 5 U.S.S.R. E E O u as t r h t o e e p r r e n 6 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- I960 60 49 245 11 11 8 1.356 121 225 73 80 26 343 1961 105 16 181 9 9 8 [,522 192 186 127 125 19 425 1962 75 42 221 6 19 8 1,606 181 171 186 131 17 408 1963 70 48 237 7 23 16 1,742 188 163 187 208 18 465 1964 June 85 42 347 29 22 15 1,852 171 147 191 246 17 539 July 91 52 285 26 22 16 1,912 174 147 187 251 16 571 88 35 277 23 21 20 1,932 175 153 187 250 16 568 Sept 82 49 290 21 22 18 1.984 187 158 196 273 16 565 Oct 90 31 312 17 26 20 2,020 196 155 183 291 16 580 Nov 92 15 278 15 21 20 2,098 205 146 188 300 17 604 Dec 97 36 319 15 20 20 2,212 210 145 188 319 17 630 Dec *> 111 37 310 16 20 20 '2,230 '200 126 '175 338 17 '643 1965 Jan 114 36 '223 16 20 21 2,201 '206 '125 '164 '314 16 '658 Feb 118 32 '196 15 21 23 2,239 206 '119 '155 '314 16 '685 Mar 116 30 199 20 23 24 '2,190 '198 119 141 292 16 '684 Apr 98 7 213 24 24 1 28 2,173 201 108 140 295 17 683 May11 95 17 216 28 25 * 30 2,186 205 112 135 294 16 690 Junep 99 31 222 29 26 1 28 2,166 201 112 145 285 16 692 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1182 INTL. CAPITAL TRANSACTIONS OF THE U.S. AUGUST 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 Other Baha- Neth. Other 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 - R l L e ic p . s A u 7 . b- B m & e a r s - A S n u t & i r l i l - es A L ic m a a t e i 8 n r- Total C M la h a n i i n d n a - J :I C o o n n g g India I n n e d s o ia - Israel muda nam I960 23 44 57 234 55 8 66 1,052 2 9 9 24 1961 32 74 55 144 56 13 74 31 891 2 9 g 36 1962 30 85 122 102 66 9 98 2,017 2 13 20 37 1963 35 99 65 114 135 42 9 16 2,493 2 11 17 22 1964—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 n 44 Aug 38 104 62 137 169 41 19 13 2,891 2 16 19 39 Sept 37 102 63 140 173 42 18 13 2,923 2 20 24 39 Oct 35 96 62 140 188 44 19 16 2,925 2 21 20 40 Nov 38 99 67 153 199 50 17 16 2,934 2 20 19 3 45 Dec 41 102 76 165 222 58 18 20 3,137 2 26 22 7 44 Dec.4... 48 108 78 168 224 65 18 21 3,278 2 28 21 7 45 1965—Jan 48 109 78 158 221 68 19 18 r3,2O3 2 21 22 7 r35 Feb 56 112 84 161 230 63 19 19 '3,218 21 16 7 44 Mar 48 116 84 164 229 62 19 18 3,380 25 28 7 53 Apr 48 112 81 173 221 58 19 19 3,356 24 28 7 55 MayP... 50 119 78 173 216 58 19 19 3,355 27 28 4 53 June33... 49 117 72 167 213 59 19 18 3,394 34 26 1 52 4c. Asia—Continued iId. 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 o d e - ) - M c o o r o i c- A So fr u ic th a ( U E . g A yp .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 9 I960 806 2 19 7 24 150 3 1 3 69 28 24 1961 31,528 4 114 10 34 145 6 10 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 IS 28 59 58 48 9 1964 June 2,469 27 158 7 57 78 100 1 0 19 26 52 52 43 9 July 2,416 27 174 7 53 78 98 1 "> 19 26 50 58 49 9 Aug .... 2,472 23 179 7 56 77 98 1 "> 19 26 50 60 ^0 9 Sept 2,493 25 179 8 53 80 101 1 o 18 29 52 58 49 10 Oct 2,488 25 185 9 54 81 108 1 2 18 29 58 66 56 10 2,496 25 183 8 55 79 109 1 ? 19 28 60 67 58 9 Dec 2,653 21 202 9 64 88 120 1 ? 19 42 56 58 48 10 Dec 4 2,796 21 203 9 65 82 131 1 ? ">0 42 67 63 48 16 1965 Jan 2,731 20 205 10 70 80 112 1 1 IS 31 63 56 43 13 Feb r2,737 20 208 12 73 80 1 ? rIS 29 71 51 39 12 Mar 2,854 20 212 12 71 97 131 1 -I 19 35 72 53 41 12 Apr 2,824 20 212 13 73 99 129 1 ? ?1 35 70 57 45 13 May^ 2,823 21 209 13 76 100 136 1 ">0 38 75 58 45 13 June?' 2,868 20 198 12 76 106 146 1 3 22 43 77 61 48 13 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 $58 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 Differs from December data in line above because of the exclusion as of Dec. 31, 1964, of $58 million of short-term U.S. Govt. claims NOTE.—Short-term claims are principally the following items payable previously included; and because of the addition of $441 million of short- on demand or with a contractual maturity of not more than 1 year; loans term claims arising from the inclusion of claims previously held but first made to and acceptances made for foreigners; drafts drawn against reported as of Dec. 31, 1964, and revision of preliminary data. foreigners where collection is being made by banks and bankers for 5 Until 1963 includes Eastern European countries other than U.S.S.R., their own account or for account of their customers in the United States; Czechoslovakia, Poland, and Rumania. and foreign currency balances held abroad by banks and bankers and 6 Czechoslovakia, Poland, and Rumania only until 1963. their customers in the United States. Excludes foreign currencies held i Bolivia, Dominican Republic, El Salvador, and Guatemala only until by U.S. monetary authorities. 1963. See also NOTE to Table 2. 8 Until 1963 includes also the following Latin American republics: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1183 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 Loans to- Collec- Accept- g F o o v r t. e i s g e n - 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 s t t o i i a o u n n n g t d - s - f e o o i m a g r f n n a a c f e d o e c r e s r c 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 - c c p a n u o a n r a m p d i n t e m i c f e r e i 2 s l - . , Other 4 1960 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 June 6,897 6,089 2,192 168 1,143 881 933 2,438 526 808 494 254 60 July 6,727 6,039 2,233 168 1,152 913 956 2,401 448 688 419 207 62 AU*7 6,775 6,083 2,265 151 1,176 938 956 2,403 460 692 416 202 74 Sept 6,806 6,132 2,310 159 1,207 944 980 2,414 428 674 416 176 83 Oct 6,912 6,242 2,379 164 1 251 964 986 2,431 446 670 410 177 83 Nov 6,964 6,303 2,461 165 ,316 980 990 2,420 432 662 394 183 84 Dec 7,469 6,810 2,652 223 ,374 1,055 1,007 2,600 552 659 400 182 77 Dec 6 r7,846 '7,225 '2,772 221 1,403 1,148 1,129 2,621 r704 621 338 181 102 1965 Tan . . .. •7,638 '7,017 '2,788 222 1,427 1,139 1,051 2,511 '668 '621 '345 169 107 Feb r7,754 r7,105 r2,947 250 1,491 1,206 1,007 2,499 651 '649 '350 176 123 Mar '7,820 '7,229 '2,954 243 r1,504 1,206 1,076 2,590 608 '591 '327 147 117 Apr 7,683 7,142 2,908 208 1,493 1,207 1,082 2,583 568 541 311 129 100 May?> 7,658 7,093 2,818 213 1,462 1,143 1,091 2,606 577 565 330 137 98 Junep 7,638 7,085 2,851 231 1,475 1,145 1,122 2,605 507 553 329 126 98 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 Differs from December data in line above because of the exclusion 4 Until 1963 includes foreign government securities, commercial and as of Dec. 31, 1964, of $58 million of short-term U.S. Govt. claims finance paper. previously included; and because of the addition of $435 million of shortterm claims arising from the inclusion of claims previously held but first reported as of Dec. 31, 1964, and revision of preliminary data. 6. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Claims Type Country or area Total End of period liabilities Total Payable in dollars Payable claims Loans o A th l e l r f r o e c r n i u e c n i r i g - e n s U K d n i o i n m t g e - d E O u t r h o e p r e Canada A L m a e ti r n ica Japan O A t s h i e a r Africa* ot A h l e l r2 I960 7 1,698 15 351 76 914 19 115 208 1961 2 2,034 11 482 274 931 24 146 166 1962 7 2,160 25 552 304 886 74 148 171 1963 69 33,030 2,811 217 2 38 31,063 290 31,015 3249 3194 113 68 i964 June 157 3,350 3,147 202 1 57 1,273 279 1,029 325 197 110 80 JUly 175 3,414 3,219 194 1 61 1,302 283 1,030 329 210 115 85 Aug 174 3,480 3,282 198 72 1,307 294 1,058 332 216 115 86 Sept 171 3,589 3,392 197 * 73 1,358 292 1,073 351 229 120 92 Oct 164 3,693 3,490 203 76 1,408 292 1,099 352 229 131 105 Nov 298 3,853 3,652 201 * 77 1,493 291 1,153 369 238 125 107 Dec / 3,971 3,777 195 * 77 1,611 273 1,162 385 238 123 103 Dec. * > 305 I 4,251 3,981 268 1 87 1,625 306 1,272 430 255 153 122 1965 Jan 309 '4,479 '4,215 263 2 86 1,679 330 1,366 455 259 183 119 Feb 493 4,701 4,412 284 5 90 1,783 378 1,400 454 276 186 133 Mar 458 4,715 4,445 265 5 96 1,763 345 1,403 472 297 202 136 Apt* 441 4,649 4,362 281 6 95 1,764 359 1,331 479 295 191 135 Mayp 441 4 587 4,304 278 5 91 1,691 340 1,357 486 295 194 133 Junep 585 4,518 4,228 285 5 92 1,649 338 1,323 479 307 201 128 1 Not reported separately until 1963. this amount are claims on: Europe $5 million, Latin America $134 2 Includes Africa until 1963. million, and Asia $54 million. 3 Includes claims previously held, but reported for the first time as of 4 Differs from Dec. data in line above because of the addition of May 1963; on that date such claims were $86 million. Also includes $280 million of long-term claims arising from the inclusion of claims $193 million reported for the first time as of Dec. 1963, representing previously held but first reported as of Dec. 31, 1964, and revision of in part claims previously held but not reported by banks. Included in preliminary data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1184 INTL. CAPITAL TRANSACTIONS OF THE U.S. AUGUST 1965 7. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate U.S. Govt. bonds and notes * Foreign bonds Foreign stocks securities 2 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 ha s e a s t e le p s s u o r- r c P ha u s r e - s Sales c N ha s e a 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 3,537 3,710 -173 915 1,838 -923 748 548 200 1964—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 n -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... 2 2 2 289 302 -13 94 221 -127 72 59 13 1965—Jan... -66 -68 2 17 240 249 -9 49 107 -58 86 48 38 Feb... -7 -38 30 -1 283 292 -9 52 269 -217 77 44 34 Mar.. -17 -17 -17 427 395 32 46 152 -105 78 53 25 Apr... 65 65 65 338 342 -4 88 183 -95 93 69 23 May? i -1 -15 14 348 342 6 116 141 -25 70 52 18 June? 14 14 14 326 562 -236 97 243 -146 71 36 35 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 July 953 50 30 628 1245 152 125 2 25 Aug 1,005 50 30 628 1297 152 125 2 25 Sect 1,005 50 30 628 1297 354 2 329 25 Oct 1,086 50 30 679 1327 354 2 329 25 Nov 1 086 50 30 679 i 327 354 2 329 25 Dec 1,086 50 30 679 1327 354 2 329 25 1965 Jan 1,086 50 30 679 i 327 354 2 329 25 Feb 1,112 75 30 679 1327 354 2 329 25 Mar 1 137 101 30 679 i 327 354 2 329 25 Apr 1,137 101 30 679 i 327 354 2 329 25 May 1 137 101 30 679 i 327 354 2 329 25 June 1,137 101 30 679 i 327 354 2 329 25 July 1,259 101 30 653 125 1350 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

AUGUST 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1185 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 ro ta p l e Canada A L m i a c t a e in r- Asia Africa i O c tr o t i u e h s n e r - 2 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 — 349 176 — 37 — 200 _4 14 —228 3 25 10 * — 1 18 1964—June.. 17 -6 23 -4 -24 28 -3 3 10 4 3 2 July. . -68 -74 6 -4 -32 -32 8 -61 -8 -4 3 i 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 i 1 Dec... -13 -37 24 -3 -14 -5 -1 -22 3 4 * 1 1965—Jan... -9 * -9 * -2 -3 -1 -6 -3 -1 * 1 Feb... -9 8 -16 2 -2 7 -3 4 -11 -3 * * Mar.. 32 9 23 8 -2 -7 23 22 7 -2 3 I Apr... -4 -49 45 -2 -13 * A -19 10 1 1 3 May ». 6 -42 47 3 -5 -9 -1 -12 11 5 2 JuneP. -236 -65 -172 6 -41 -219 -7 -262 29 -3 -2 2 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) Intl. Total Assetsin custody and for- Eu- Can- Latin Afri- Other Period Total re- eign rope ada Amer- Asia ca i coun- End of Deposits gional coun- ica tries2 period U.S. Govt. Earmarked tries securities * gold 1961 -830 1 -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 -723 -140 -583 163 -665 -36 -77 7 25 1964—July... 135 8,201 12,752 1964—June -28 9 -36 13 -49 2 -8 1 4 Aug... 163 8,247 12,741 July 14 4 9 19 6 -13 c 1 2 Sept.. 148 8,373 12,738 Aug 22 1 20 4 16 1 2 1 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 c 2 6 Dec... 229 8,389 12,698 Nov -251 -95 -156 15 -129 -30 -15 * 2 Dec -114 -22 -92 16 -98 5 -18 1 2 1965—Jan... 143 7,952 12,871 Feb... 154 8,100 12,940 1965—Jan -20 5 -25 14 -23 1 -20 3 Mar.. 162 7,741 13,187 Feb -183 -178 -5 3 -2 -4 2 * 1 Apr... 146 7,626 13,174 Mar -81 3 -84 -6 -74 -6 -1 * 2 May.. 142 7,713 13,050 -72 4 -75 22 -28 -26 -47 * 5 June. . 179 7,599 12,951 MayP 7 3 -10 14 -13 10 * * -21 July... 147 7,221 13,108 JuneP -111 9 -120 -41 -54 -6 -23 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

1186 INTL. CAPITAL TRANSACTIONS OF THE U.S. AUGUST 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. Mar. June June i Sept. Dec. Dec. Mar. June June i Sept. Dec. Europe: Austria 2 2 3 3 3 2 8 7 6 5 5 7 Belgium 26 19 21 20 22 20 22 18 21 20 17 19 3 1 1 1 2 8 6 7 7 6 6 Finland 1 1 1 1 1 1 4 7 5 5 8 7 33 31 28 27 31 31 47 52 69 67 50 52 34 32 36 34 44 63 103 114 82 79 95 140 Greece 2 2 5 5 4 4 9 13 9 9 10 10 Italy 25 26 24 22 27 26 106 101 101 99 90 95 Netherlands 46 43 46 46 31 33 32 34 30 30 32 31 3 2 3 2 1 7 6 7 6 7 8 1 1 1 1 2 2 8 8 10 10 9 4 Spain 7 7 9 8 12 10 29 32 47 46 45 42 Sweden 9 7 7 7 7 8 17 20 17 17 19 19 Switzerland 25 20 19 18 36 33 27 23 19 17 16 22 2 4 5 4 5 6 5 5 5 5 4 9 United Kingdom 100 110 102 97 108 102 241 248 284 280 407 310 4 6 1 1 1 1 3 4 3 3 3 3 Other Western Europe 3 1 3 2 4 5 4 5 6 6 6 9 USSR • * • * * • 1 « * * * • Other Eastern Europe * 1 1 * 1 1 3 4 2 2 3 2 Total 325 319 316 301 341 350 685 706 731 714 832 794 72 68 62 57 60 76 732 910 932 923 1,035 1,060 Latin America: Argentina 7 6 6 5 4 3 25 23 20 20 26 30 Brazil 13 13 11 10 11 11 113 118 126 125 128 145 Chile 3 3 3 3 4 5 25 24 23 21 25 25 7 6 8 7 7 10 21 21 23 22 25 25 Cuba * * * * * • 5 5 5 5 4 4 Tvlexico • 8 11 8 7 8 7 60 59 62 58 64 69 20 29 21 21 26 28 13 10 10 10 9 12 Peru 5 5 6 5 5 7 22 23 23 22 23 26 1 1 1 1 5 5 6 6 8 10 22 20 22 21 20 16 36 37 40 38 45 46 13 10 9 8 11 15 39 42 45 42 47 51 Bahamas and Bermuda 1 2 2 2 2 2 10 20 21 20 19 11 Neth. Antilles & Surinam 6 6 7 7 9 6 5 5 5 5 4 4 Other Latin America 4 5 6 6 4 6 11 10 11 9 10 10 Total 110 118 112 104 111 116 390 403 422 404 438 468 Asia: China Mainland 1 2 2 2 1 1 * * * * Hong Kong 2 2 2 2 2 2 4 6 5 5 7 9 14 14 14 13 16 21 42 39 39 38 37 41 3 5 5 3 4 10 5 5 5 4 4 Israel 1 2 1 1 1 1 7 7 8 7 7 7 24 23 27 25 31 28 161 170 161 160 174 180 1 1 1 1 * 1 6 5 4 4 5 4 Philippines •••• 5 5 5 4 6 5 9 12 11 11 14 11 2 1 1 1 j 1 • 1 3 1 1 4 1 7 3 4 7 4 7 7 5 5 5 Other Asia 18 22 21 19 21 21 41 46 53 51 55 60 Total 72 76 80 73 82 88 295 300 298 294 315 327 Africa: Congo (Leopoldville) 1 1 3 4 3 2 2 2 5 6 * * * * 1 * 2 1 1 1 2 1 South Africa 10 9 10 10 11 14 9 8 13 12 11 11 U A R (Egypt) 6 4 2 2 1 3 11 14 13 13 12 13 Other Africa 8 6 6 5 5 10 18 23 26 25 27 26 Total 25 21 19 18 22 31 43 50 55 53 57 57 Other countries: Australia 17 25 27 27 26 25 32 33 37 36 38 38 All other 5 4 6 5 8 9 9 5 6 6 7 7 Total 22 30 33 32 34 34 42 38 43 41 45 45 International and regional * * 1 * * 1 1 1 1 * 0 Grand total , 626 631 622 585 650 695 2,188 2,407 2,482 2,430 2,722 2,751 1 Ninth revised series; includes reports from firms having $500,000 NOTE.—Reported by exporters, importers, and industrial and comor more of liabilities or of claims; for previous series the exemption level mercial concerns in the United States. Data exclude claims held through was $100,000. U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. See also NOTE to Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 MONEY RATES 1187 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of July 31, 1964 Rate Country 1964 1965 as of July 31, Per Month 1965 cent effective Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July 6.0 Dec. 1957 6.0 Austria • . • •• 4.5 June 1963 4.5 4.75 July 1964 4.75 Brazil 10.0 Apr. 1958 12.0 12.0 Burma • • ... ..•..•••. 4.0 Feb. 1962 4.0 Canada * 4.0 Aug. 1963 4.25 4.25 4.0 Aug. 1960 5.0 5.0 Chile 2 14.63 July 1964 15.09 15.09 Colombia 8.0 May 1963 8.0 Costa Rica 3.0 Apr. 1939 3.0 6.5 June 1964 6.5 5.0 Nov 1956 5.0 El Salvador 6.0 June 1961 4.0 4.0 Finland 7.0 Apr. 1962 7.0 France 4.0 Nov. 1963 3.5 3.5 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 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 Iran • .. .... 4.0 Oct. 1963 4.0 4.87 July 1964 4.89 4.94 6.87 6.81 6.75 6.81 6.69 6.50 5.92 6.00 6.00 Israel 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 3.5 4.0 Nov. 1963 5.0 5.0 6.57 Mar. 1964 6.21 5.84 5.48 5.48 Korea • • • • • • • « 10.5 Mar. 1964 10.5 Mexico 4.5 June 1942 4.5 4.5 June 1964 4.5 7.0 Mar. 1961 7.0 Nicaragua................ 6.0 Apr. 1954 6.0 3.5 Feb. 1955 3.5 4.0 Jan. 1959 5.0 5.0 9.5 Nov. 1959 9.5 Philippine Republic * 6.0 Jan. 1962 6.0 2.0 Jan. 1944 2.0 South Africa 4.0 July 1964 4.5 5.0 5.0 4.0 June 1961 4.0 Sweden « 4.5 Jan, 1964 5.0 5.5 5.5 Switzerland 2.5 July 1964 2.5 14.04 July 1963 14.04 7,0 Feb. 1945 7.0 Tunisia ............. 4.0 Oct. 1962 4.0 Turkey . 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5,0 May 1962 5.0 United Kingdom 5.0 Feb. 1964 7.0 6.0 6.0 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some 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 advances only. Costa Rica—5 per cent for paper related to commercial transactions 4 Beginning with June 1, 1962, the rediscount rate for commercial (rate shown is for agricultural and industrial paper); bank loans financing the purchase of surplus agricultural commodities Ecuador—6 per cent for bank acceptances for commercial purposes; under U.S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, Indonesia—various rates depending on type of paper, collateral, com- 1962, the rediscount rate for commercial bank financing of 9 categories modity involved, etc.; of development loans was reduced from 6 to 3 per cent. Japan—penalty rates (exceeding the basic rate shown) for borrowings 5 Rate shown is for call loans. 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

1188 MONEY RATES; ARBITRAGE AUGUST 1965 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France F G ed e . r m Re a p n . y , of Netherlands Sw la i n tz 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 - y e t y o 2 - 3 B a a m a c n n c o c k e e n p e s t t r , h - s s ' 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - a B d ll e a o p n o w o k n a s e i n r t s c s ' e D m a o d y n a - y e t y o 3 - Tr 6 d b e 0 a i a l - y s l 9 s s u 0 , 4 ry D m a o d y n a - e y t y o 5 - 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - d P is r r c i a v o t a e u 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—June 3.56 3.28 4.64 4.44 3.80 3.00 4.91 2.63 3.31 3.81 2.06 2.50 July 3.60 3.49 4.73 4.57 3.67 3.00 4.83 2.63 3.38 4.26 3.72 2.50 Aug 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 3.24 2.50 Nov 3.73 3.68 5.42 5.18 4.54 3.56 4.13 2.63 3.13 3.84 2.88 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 Feb 3.72 3.57 6.74 6.48 5.92 5.00 4.11 3.13 3.56 3.34 3.69 3.00 Mar 3.69 3.45 6.74 6.45 5.92 5.00 4.45 3.13 4.06 3.05 3.39 3.00 Apr 3.67 3.51 6.78 6.45 5.90 5.00 4.00 3.13 4.19 3.39 3.54 3.00 May 3.84 '"3.79 6.73 6.31 5.90 5.00 4.22 3.13 3.44 4.05 3.67 3.00 June 3.95 3.80 6.04 5.59 5.02 4.08 3.13 4.44 4.08 2.69 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 ( r . e + m ) i o u r m inc N en e ti t ve Canada P d ( r i e s + c m ) o i o u u n r m t inc N en e t t ive q K ( u i b a n o U d a g t j s . a . S d i t s o . t i ) o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o a r d n) d f ( p o i - s r o c ) w u o o n a u n r d n d t L ( o fa n o v d f o o r n) C qu a A i n o n a t s e d d a q A u b o U d a t j . a s . S t i t . i s o o n U S n ta i t t e e s d C S ( a f p a n o r v e a f o a d r d a) C f ( o a d - r n o w ) a l o l d a a n i r r a d n C ( a fa n o v a f o d r a) 1965 Mar. 5... 6.26 3.93 2.33 -2.78 -.45 3.78 3.69 3.93 -.24 + .10 -.14 12... 6.20 3.91 2.29 -2.54 -.25 3.71 3.63 3.91 -.28 + .17 -.11 19... 6.35 3.90 2.45 -2.74 -.29 3.64 3.56 3.90 -.34 + .41 + .07 26... 6.35 3.86 2.49 -3.25 -.76 3.62 3.54 3.86 -.32 + .61 + .29 Apr. 2... 6.35 3.91 2.44 -3.02 -.58 3.60 3.52 3.91 -.39 + .54 + .15 9... 6.32 3.90 2.42 -2.97 -.55 3.58 3.50 3.90 -.40 + .47 + .07 15... 6.29 3.91 2.38 -2.55 -.17 3.62 3.54 3.91 -.37 + .47 + .10 23... 6.26 3.92 2.34 -2.29 + .05 3.67 3.59 3.92 -.33 + .40 + .07 30... 6.20 3.90 2.30 -2.33 -.03 3.80 3.71 3.90 -.19 + .34 + .15 MaM::: 6.13 3.87 2.26 -2.01 + .25 3.82 3.73 3.87 -.14 + .20 + .06 6.13 3.88 2.25 -1.96 + .29 3.81 3.72 3.88 -.16 + .20 + .04 2 2 8 1 . . . . . . 6 6 . . 1 2 0 0 3 3 . . 8 8 5 8 2 2 . . 3 2 5 2 - -2 1 . . 4 8 4 2 + -. 0 .4 9 0 3 3 . . 8 9 5 3 3 3 . . 8 7 4 6 3 3 . . 8 8 5 8 - -. . 0 1 1 2 + + . . 2 2 7 7 + + . . 2 1 6 5 June 4... 5.49 3.82 .67 -1.82 -.15 3.98 3.8 3.82 + .07 + .34 + .41 11... 5.42 3.79 .63 -1.68 -.05 3.97 3.8 3.79 + .09 + .41 + .50 18... 5.42 3.77 .65 .96 -.31 3.96 3.8 3.77 + .10 + .47 + .57 25... 5.39 3.74 .65 .60 + .05 3.94 3.8 3.74 + .11 + .41 + .52 July 2... 5.36 3.80 .56 .93 -.37 3.92 3.83 3.80 + .03 + .27 + .30 9. .. 5.42 3.84 .58 .82 -.24 3.96 3.87 3.84 + .03 + .27 + .30 16... 5.46 3.82 .64 .85 -.21 3.96 3.87 3.82 + .05 + .14 + .19 23... 5.46 3.79 .67 .98 -.31 4.01 3.92 3.79 + .13 + .14 + .27 30... 5.46 3.78 .68 2.09 -.41 4.06 3.96 3.78 + .18 -.20 -.02 Aug. 6... 5.46 3.82 1.64 -2.54 -.90 4.09 3.99 3.82 + .17 -.07 + .10 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 BULLETIN, 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 BULLETIN. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1965 FOREIGN EXCHANGE RATES 1189 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Ar ( g p e e n so ti ) na (p t A o ra u u l s n i - a d) (s A ch u i s l t l r in ia g) B (f e r l a g n iu c m ) C (d a o n l a la d r a ) C (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n n c c e ) 1959 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .3115 .2038 1960 1.2026 223.71 3.8461 2.0053 103.122 21.048 14.505 .3112 20.389 1961 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .3110 20.384 1962 .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 3 31.057 4 20.404 1964 .7179 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 20.404 1964—July. .7279 222.29 3.8710 2.0085 92.473 20.977 14.459 31.063 20.405 Aug. .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 Mar. .6629 222.50 8694 2.0144 92.480 20.950 14.453 31.080 20.400 Apr. 1 .6627 222.80 8700 2.0147 92.654 20.948 14.462 31.081 20.401 May. 2 .5814 222.87 8701 2.0147 92.627 20.951 14.456 31.098 20.397 June .5805 222.49 8713 2.0147 92.381 20.939 14.429 31.062 20.405 July. .5802 222.39 3.8726 2.0145 92.280 20.935 14.418 31.061 20.405 Period ( G d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) ( M do s a i 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 a il 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 .0056 26.492 278.10 1960 23.976 20.968 280.76 .16104 .27785 32.817 .0056 26.513 277.98 1961 24.903 20.980 280.22 .16099 .27690 32.659 .0056 27.555 277.45 1962 25.013 21.026 280.78 .16107 .27712 32.757 ;.0056 27.755 278.00 1963 25.084 20.966 280.00 .16087 .27663 32.664 .0056 27.770 277.22 1964 25.157 20.923 279.21 .16014 .27625 32.566 1.0056 27.724 276.45 1964—July. 25.159 20.912 278.97 .16001 .27576 32.524 .0056 27.657 276.21 Aug. 25.152 20.886 278.66 .16002 .27580 32.474 .0056 27.674 275.91 Sept. 25.154 20.862 278.34 .16002 .27665 32.431 .0056 27.712 275.59 Oct.. 25.158 20.859 278.35 .16003 .27658 32.467 .0056 27.772 275.59 Nov. 25.148 20.867 278.48 .16003 .27686 32.507 1.0056 27.824 275.73 Dec. 25.149 20.898 279.06 .16003 .27837 32.569 .0056 27.831 276.30 1965—Jan.. 25.135 20.894 279.13 .16003 .27856 32.575 .0056 27.827 276.37 Feb.. 25.137 20.915 279.51 .16003 .27830 32.602 1.0056 27.825 276.75 Mar. 25.144 20.912 279.24 .16003 .27710 32.553 .0056 27.780 276.47 Apr.. 25.149 20.935 279.62 .16004 .27609 32.582 .0856 27.780 276.85 May. 25.097 20.939 279.71 .16004 .27585 32.617 .0056 27.768 276.94 June. 25.003 20.924 279.23 .16003 .27638 32.583 1.0056 27.735 276.46 July. 24.960 20.914 279.10 .16005 .27599 32.579 1.0056 27.761 276.33 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 u a t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e f S r r w a la n i n t c - d ) ( U p K d o n i o u n i m t n g e d - d ) 1959., 14.028 49.721 3.4967 279.83 2.0579 19.324 23.142 280.88 1960. 14.018 49.770 3.4937 279.71 .6635 19.349 23.152 280.76 1961. 14.000 3.4909 279.48 139.57 .6643 19.353 23.151 280.22 1962. 14.010 3.4986 139.87 .6654 19.397 23.124 280.78 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—July.. 13.972 3.4796 138.96 .6663 19.441 23.139 278.97 Aug.. 13.962 3.4746 138.81 .6662 19.466 23.145 278.66 Sept.. 13.956 3.4714 138.65 .6661 19.461 23.148 278.34 Oct... 13.956 3.4680 138.65 .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 .6666 19.439 23.172 279.06 1965—Jan... 13.977 3.4783 139.05 .6665 19.465 23.149 279.13 Feb... 13.982 3.4826 139.23 .6665 19.469 23.102 279.51 Mar.. 13.976 3.4817 139.10 .6663 19.468 23.020 279.24 Apr... 13.983 3.4822 139.29 .6663 19.434 23.019 279.62 May.. 13.982 3.4819 139.33 .6662 19.411 23.004 279.71 June.. 13.976 3.4804 139.09 .6662 19.369 23.075 279.23 July.. 13.975 3.4798 139.03 .6662 19.355 23.128 279.10 1 Based on quotations through April 16, 1965. NOTE.—Averages of certified noon buying rates in New York for 2 Based on quotations beginning May 5, 1965. cable transfers. For description of rates and back data, see "International 3 A new markka, equal to 100 old markkaa, was introduced on Jan. 1, Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1963. 1962. 4 Effective Jan. 1, 1963, the franc again became the French monetary unit. Tt replaces, at a 1 to 1 ratio, the new franc introduced Jan. 1, 1960. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1190 U.S. BALANCE OF PAYMENTS AUGUST 1965 U.S. BALANCE OF PAYMENTS (In millions of dollars) 1963 1964 1965 Item 1962 1963 1964 IV III IV A. Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets, and other than special U.S. Govt. transactions— Seasonally adjusted Exports of goods and services—Total1. 30,278 32,353 37,017 8,603 9,084 8,991 9,335 9,607 8,700 Merchandise 20,604 22,069 25,288 5,960 6,149 6,067 6,382 6,690 5,589 Military sales 656 659 762 148 194 191 168 209 179 Investment income receipts, private. 3,954 4,156 5,003 1,061 1,266 1,263 1,260 1,214 1,417 Investment income receipts, Govt..., 471 498 454 126 130 132 132 60 139 Other services 4,593 4,971 5,510 1,308 1,345 1,338 1,393 1,434 1,376 Imports of goods and services—Total. -25,129 -26,436 -28,457 -6,779 -6,878 -7,061 -7,136 -7,382 -7,151 Merchandise -16,173 -16,992 -18,619 -4,372 -4,410 -4,599 -4,709 -4,901 -4,663 Military expenditures -3,078 -2,929 -2,824 -715 -732 -720 -691 -681 -664 Investment income payments -1,056 -1,271 -1,404 -351 -341 -345 -347 -371 -376 Other services -4,822 -5,244 -5,610 -1,341 -1,395 -1,397 -1,389 -1,448 -1,429 Balance on goods and services 1. 5,149 5,917 8,560 1,824 2,206 1,930 2,199 1,549 2,225 Remittances and pensions -738 -837 -839 -208 -209 -203 -207 -221 -220 1. Balance on goods, services, remittances and pensions 4,411 5,080 7,721 1,616 1,997 1,727 1,992 2,005 1,328 2. U.S. Govt. grants and capital flow, net, excluding advance debt repayments -3,547 -3,813 -3,636 -942 -813 -921 -1,014 -814 Grants 2, 3 -1,919 -1,917 -1,884 -504 -470 -538 -425 -451 -438 Long-term loans and subscriptions 3 -2,129 -2,187 -2,349 -568 -521 -697 -601 -530 -632 Change in foreign currency holdings and short-term claims, net (increase, —) 3 -245 -447 -27 -100 72 69 21 -189 159 Seasonal adjustment on three preceding items combined • • • 38 -47 83 -80 44 -48 Change in associated liabilities 147 94 49 29 -8 35 4 18 -18 Scheduled loan repayments 599 644 575 163 161 160 160 94 163 3. U.S. private capital, net -3,425 -4,456 -6,462 -1,142 -1,327 -1,344 -1,569 -2,222 -1,399 Direct investments abroad. -1,654 -1,976 -2,376 -618 -464 -540 -551 -821 -1,003 Other long-term capital.. . -1,227 -1,695 -1,975 -228 -274 -256 -612 -833 -684 Short-term capital -544 -785 -2,111 -296 -589 -548 -406 -568 288 4. Foreign capital, net, excluding liquid assets in U.S 153 303 432 -52 14 112 196 110 246 Foreign long-term investments in U.S 272 326 110 26 6 94 -72 82 245 Foreign short-term capital -115 -24 115 -76 4 19 64 28 Miscellaneous U.S. Govt. nonliquid liabilities -4 1 207 2 4 -1 204 5. Errors and unrecorded transactions -1,197 -401 -1,161 103 -288 -152 -291 -430 -94 Balance of A (= 1+2+3+4+5) -3,287 -3,106 -417 -417 -545 -593 1,551 -733 Less: Net seasonal adjustments -3,605 25 -481 50 428 3 -517 Balance of A before seasonal adjustment -3*287* -3*iO6 -442 64 -595 -1,021 -1,554 -216 -3*605 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 3,605 3,287 3,106 442 -64 595 1,021 1,554 216 Advance repayments on U.S. Govt. loans 681 326 122 26 52 33 30 7 10 Advances on U.S. military exports, net 470 334 222 239 163 -62 -28 149 55 Sales of nonconvertible nonmarketable securities, net. 5 251 -43 -36 -1 -55 -2 29 Dollar securities 6 31 -16 -1 -5 -2 Foreign currency securities 251 -74 -20 -50 30 Sales of convertible nonmarketable securities, net 5. 703 375 25 122 203 50 51 Dollar securities 150 Foreign currency securities 553 375 'is' 122 '263" SO* 'si' Change in U.S. shorUterm liabilities reported by U.S. banks 1 and foreign holdings of marketable U.S. Govt. bonds and notes 670 1,589 2,252 158 -173 207 748 1,470 -742 International and regional organizations 8 211 -236 -245 -109 -86 -25 -140 6 -66 Foreign private holders excluding banks 9 131 393 359 109 35 57 122 145 68 Foreign commercial banks -129 462 1,440 32 278 82 580 500 168 Foreign official holders 457 970 698 126 -400 93 186 819 -912 Change in U.S. monetary reserve assets (increase, —), 1,533 378 171 -5 -51 303 70 -151 842 IMF position 626 30 266 15 131 118 135 -118 68 Convertible currencies 17 -113 -220 -58 -228 258 -45 -205 -58 Gold 890 461 125 38 46 -73 -20 172 832 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. 4 Includes sell-offs. 9 Includes 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

AUGUST 1965 FOREIGN TRADE 1191 MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1962 1963 1964 1965 1962 1963 1964 1965 1962 1963 1964 1965 Month: Jan 1,668 3986 2,043 31,217 1,327 31,100 1,434 31,206 341 3-114 609 311 Feb 1,809 32,124 2,046 31,593 1,320 31,510 1,460 31,601 489 3614 586 3-8 Mar 1,672 31,958 2,074 32,753 1,342 31,485 1,520 31,869 330 3473 554 3884 Apr 1,795 31,914 2,061 32,380 1,365 31,415 1,541 31,835 430 3499 520 3545 May 1,762 1,895 2,062 32,278 1,404 1,416 1,539 31,799 358 479 523 3479 June 1,836 1,803 2,034 2,185 1,351 1,431 1,518 1,835 485 372 516 350 July 1,748 1,841 2,123 1,347 1,450 1,578 401 391 545 Aug 1 703 1 922 2 109 1 346 1 497 1 575 357 425 534 Sept 31,908 1,958 2,235 31,471 1,443 1,546 3437 515 689 Oct 31 523 1 967 2 155 31 312 1 455 1 548 3211 512 607 Nov 1 725 1 966 2 197 1 425 1 466 31 698 300 500 3499 Dec 31,839 2,091 32,430 31,377 1,480 31,642 3462 611 3788 Quarter: 5,149 35,068 6,163 35,563 3,989 34,095 4,414 34,676 1,160 3973 1,749 3887 TT 5,393 35,612 6,157 36,843 4,120 34,262 4,598 35,469 1,273 31,350 1,559 31,374 in 35,359 5,721 6,467 34,164 4,390 4,699 31,195 1,331 1,768 IV 35 087 6 024 36 782 34 114 4 401 34 888 3973 1 623 31,894 Year* 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 BALDERSON, Vice Chairman J. L. ROBERTSON GEORGE W. MITCHELL J. DEWEY DAANE CHAS. N. SHEPARDSON SHERMAN J. MAISEL 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 FREDERIC SOLOMON, Director KENNETH A. KENYON, Assistant Secretary GLENN M. GOODMAN, Assistant Director ELIZABETH L. CARMICHAEL, Assistant Secretary ARTHUR L. BROIDA, Assistant Secretary BRENTON C. LEAVITT, Assistant Director KARL E. BAKKE, Assistant Secretary JAMES C. SMITH, Assistant Director ANDREW N. THOMPSON, Assistant Director LEGAL DIVISION LLOYD M. SCHAEFFER, Chief Federal Reserve HOWARD H. HACKLEY, General Counsel Examiner DAVID B. HEXTER, Assistant General Counsel 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 H. FRANKLIN SPRECHER, JR., Assistant Director DIVISION OF RESEARCH AND STATISTICS DANIEL H. BRILL, Director ROBERT C. HOLLAND, Associate Director DIVISION OF ADMINISTRATIVE SERVICES ALBERT R. KOCH, Associate Director JOSEPH E. KELLEHER, Director FRANK R. GARFIELD, Adviser 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 SAMPSON H. BASS, Assistant Controller A. B. HERSEY, Adviser SAMUEL I. KATZ, Adviser ROBERT L. SAMMONS, Adviser OFFICE OF DEFENSE PLANNING REED J. IRVINE, Associate Adviser JOHN E. REYNOLDS, Associate Adviser INNIS D. HARRIS, Coordinator RALPH C. WOOD, Associate Adviser DIVISION OF BANK OPERATIONS DIVISION OF DATA PROCESSING JOHN R. FARRELL, Director M. B. DANIELS, Assistant Director M. H. SCHWARTZ, Director JOHN N. KILEY, JR., Assistant Director LEE W. LANGHAM, Assistant Director 1192 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET COMMITTEE AND ADVISORY COUNCIL 1193 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSON GEORGE H. ELLIS J. L. ROBERTSON MALCOLM BRYAN HUGH D. GALUSHA, JR. CHARLES J. SCANLON J. DEWEY DAANE SHERMAN J. MAISEL CHAS. N. SHEPARDSON GEORGE W. MITCHELL 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 ALAN R. HOLMES, 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

1194 FEDERAL RESERVE BULLETIN • AUGUST 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 John F. Breen Louisville 40201 C. Hunter Green Donald L. Henry Memphis .38101 Sam Cooper E. Francis DeVos Minneapolis... .55440 Atherton Bean Hugh D. Galusha, Jr. 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 Frederic 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 Material listed may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should 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. 915-18 of the June 1965 BULLETIN. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 FUNCTIONS. 1963. 297 pp. a copy; 10 or more sent to one address, $.85 each. ANNUAL REPORT. ALL-BANK STATISTICS, 1896-1955. 1959. 1,229 pp. FEDERAL RESERVE BULLETIN. Monthly. $6.00 $4.00. per annum or $.60 a copy in the United States and its possessions, Bolivia, Canada, Chile, INDUSTRIAL PRODUCTION—1957-59 Base. 1962. 172 pp. $1.00 a copy; 10 or more sent to one Colombia, Costa Rica, Cuba, Dominican Readdress, $.85 each. public, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, THE FEDERAL RESERVE ACT, as amended through Paraguay, Peru, El Salvador, Uruguay, and Oct. 1, 1961, with an appendix containing pro- Venezuela. (10 or more of same issue sent to visions of certain other statutes affecting the one address, $5.00 per annum or $.50 each.) Federal Reserve System. 386 pp. $1.25. Elsewhere, $7.00 per annum or $.70 a copy. SUPPLEMENT TO BANKING AND MONETARY STATIS- FEDERAL RESERVE CHART BOOK ON FINANCIAL TICS. Sec. 1. Banks and the Monetary System. AND BUSINESS STATISTICS. Monthly. Annual 1962. 35 pp. $.35. Sec. 10. Member Bank Resubscription includes one issue of Historical serves and Related Items. 1962. 64 pp. $.50. Chart Book. $6.00 per annum or $.60 a copy Sec. 11. Currency. 1963. 11 pp. $.35. Sec. 14. in the United States and the countries listed Gold. 1963. 24 pp. $.35. Sec. 15. International above. (10 or more of same issue sent to one Finance. 1962. 92 pp. $.65. address, $.50 each.) Elsewhere, $7.00 per annum or $.70 a copy. BANK MERGERS & THE REGULATORY AGENCIES: APPLICATION OF THE BANK MERGER ACT OF HISTORICAL CHART BOOK. Issued annually in Sept. 1960. 1964. 260 pp. $1.00 a copy; 10 or more Subscription to monthly chart book includes sent to one address, $.85 each. one issue. $.60 a copy in the United States and countries listed above. (10 or more sent to one BANKING MARKET STRUCTURE & PERFORMANCE address, $.50 each.) Elsewhere, $.70 a copy. IN METROPOLITAN AREAS: A STATISTICAL STUDY OF FACTORS AFFECTING RATES ON BANK TREASURY-FEDERAL RESERVE STUDY OF THE GOV- LOANS. 1965. 73 pp. $.50 a copy; 10 or more sent to one address, $.40 each. ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 REGULATIONS OF THE BOARD OF GOVERNORS OF pp. Individual books $1.00 each; set of 3, $2.50. THE FEDERAL RESERVE SYSTEM. FLOW OF FUNDS IN THE UNITED STATES, 1939-53. RULES OF ORGANIZATION AND PROCEDURE—BOARD 1955. 390 pp. $2.75. OF GOVERNORS OF THE FEDERAL RESERVE SYS- TEM. 1962. 40 pp. DEBITS AND CLEARINGS STATISTICS AND THEIR USE. 1959. 144 pp. $1.00 a copy; 10 or more PUBLISHED INTERPRETATIONS of the Board of sent to one address, $.85 each. Governors, as of Mar. 31, 1965. $2.50. 1195 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1196 FEDERAL RESERVE BULLETIN • AUGUST 1965 REPRINTS REVISION OF BANK CREDIT SERIES. June 1964. 5 pp. (From Federal Reserve BULLETIN unless preceded by an asterisk) RECENT MONETARY AND CREDIT DEVELOPMENTS. July 1964. 9 pp. THE HISTORY OF RESERVE REQUIREMENTS FOR BANKS IN THE UNITED STATES. NOV. 1938. FEDERAL RESERVE SECURITY TRANSACTIONS, 20 pp. 1954-63. July 1964. 16 pp. •Part I, ALL-BANK STATISTICS, 1896-1955. Re- NEW SERIES ON FEDERAL FUNDS. Aug. 1964. print of the U.S. Summary containing a de- 31 pp. scription of revised statistics for all banks in MINISTERIAL STATEMENT OF THE GROUP OF TEN the United States, by class of bank, together AND ANNEX PREPARED BY DEPUTIES. Aug. with revised statistics. Apr. 1959. 94 pp. 1964. 25 pp. STATISTICS ON THE GOVERNMENT SECURITIES U.S. BALANCE OF PAYMENTS, 1963-64. Oct. 1964. MARKET. Apr. 1961. 8 pp. 8 pp. REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. YIELD DIFFERENTIALS IN TREASURY BILLS. 1959- 1961. 3 pp. 64. Oct. 1964. 20 pp. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. U.S. GOVERNMENT SECURITIES IN 1964. Nov. 1962. 10 pp. 1964. 8 pp. CHANGES IN STRUCTURE OF THE FEDERAL DEBT. RESEARCH INTO BANKING STRUCTURE AND COM- Mar. 1963. 10 pp. PETITION. Nov. 1964. 17 pp. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT. BANK CREDIT AND MONETARY DEVELOPMENTS IN Apr. 1963. 11 pp. 1964. Feb. 1965. 13 pp. NEW FOREIGN BOND ISSUES IN THE U.S. BANK CREDITS TO FOREIGNERS. Mar. 1965. 10 pp. MARKET. May 1963. 13 pp. BALANCE OF PAYMENTS PROGRAM: GUIDELINES BANK LOANS SECURED BY STOCKS AND BONDS. FOR BANKS AND NONBANK FINANCIAL INSTITU- July 1963. 19 pp. TIONS. Mar. 1965. 6 pp. A BANK EXAMINER LOOKS AT AGRICULTURAL TREASURY AND FEDERAL RESERVE FOREIGN EX- LENDING. July 1963. 8 pp. CHANGE OPERATIONS. Mar. 1965. 13 pp. MEASURING AND ANALYZING ECONOMIC GROWTH. REVISION OF BANK DEBITS AND DEPOSIT TURN- Aug. 1963. 14 pp. OVER SERIES. Mar. 1965. 4 pp. BANK AND PCA LENDING TO FARMERS. Sept. 1963. BANKING AND MONETARY STATISTICS, 1964. Se- 11 pp. lected series of banking and monetary statistics for 1964 only. Feb., Mar., and June 1965. 15 THE OPEN MARKET POLICY PROCESS. Oct. 1963. pp. 11pp. RECENT CREDIT AND MONETARY DEVELOPMENTS. SURVEY OF FINANCIAL CHARACTERISTICS OF CON- July 1965. 12 pp. SUMERS. Mar. 1964. 9 pp. REVISION OF THE MONEY SUPPLY. July 1965. U.S. TRADE AND PAYMENTS IN 1963. Apr. 1964. 11pp. 7 pp. BALANCE OF PAYMENTS PROGRAM: REVISED FLOWS THROUGH FINANCIAL INTERMEDIARIES. GUIDELINES FOR NONBANK FINANCIAL INSTI- May 1964. 9 pp. TUTIONS. July 1965. 3 pp. REVISION OF THE MONEY SUPPLY SERIES. June INTEREST RATES IN CAPITAL MARKETS. Aug. 1964. 14 pp. 1965. 13 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 1108.) Acceptances, bankers', 1117, 1134, 1136 Demand deposits—Continued Agricultural loans of commercial banks, 1128, 1130 Banks, by classes, 1116, 1124, 1132 Arbitrage, 1188 Turnover of, 1120 Assets and liabilities (See also Foreign liabilities and Type of holder, at commercial banks, 1129 claims): Deposits (See also specific types of deposits): Banks and the monetary system, consoli- Adjusted, and currency, 1123 dated, 1123 Banks, by classes, 1116, 1124, 1129, 1132, 1136 Corporate, current, 1148 Federal Reserve Banks, 1118, 1185 Domestic banks, by classes, 1124, 1128, 1130 Postal savings, 1116, 1123 Federal Reserve Banks, 1118 Discount rates, 1115, 1187 Automobiles: Discounts and advances by Federal Reserve Banks, Consumer instalment credit, 1152, 1153, 1154 1110, 1118, 1120 Production index, 1156, 1157 Dividends, corporate, 1147, 1148 Dollar assets, foreign, 1169, 1185 Balance of payments (See U.S. balance of payments) Bankers'balances, 1129, 1131 Earnings and hours, manufacturing industries, 1163 (See also Foreign liabilities and claims) Employment, 1160, 1162, 1163 Banking offices: Changes in number, 1170 Farm mortgage loans, 1149, 1150 Par and nonpar offices, number, 1171 Federal finance: Banks and the monetary system, consolidated Cash transactions, 1138 statement, 1123 Receipts and expenditures, 1139 Banks for cooperatives, 1143, 1144 Treasurer's balance, 1138 Bonds (See also U.S. Govt. securities): Federal funds, 1114 New issues, 1144, 1145, 1146 Federal home loan banks, 1143, 1144, 1151 Prices and yields, 1134, 1135 Federal Housing Administration, 1135, 1149, Brokers and dealers in securities, bank loans to, 1150, 1151 1128, 1130 Federal intermediate credit banks, 1143, 1144 Business expenditures on new plant and Federal land banks, 1143, 1144 equipment, 1148 Federal National Mortgage Assn., 1143, 1144, 1151 Business indexes, 1160 Federal Reserve Banks: Business loans (See Commercial and industrial loans) Condition statement, 1118 U.S. Govt. securities held by, 1110, 1118, 1120, Capital accounts: 1140, 1141 Banks, by classes, 1124, 1129, 1132 Federal Reserve credit, 1110, 1118, 1120 Federal Reserve Banks, 1118 Federal Reserve notes, 1118, 1121 Carloadings, 1160 Federally sponsored credit agencies, 1143, 1144 Central banks, foreign, 1174, 1187 Finance company paper, 1134, 1136 Certificates of deposit, 1132 Financial institutions, loans to, 1128, 1130 Coins, circulation of, 1121 Float, 1110 Commercial and industrial loans: Flow of funds, 1168 Commercial banks, 1128 Foreign central banks, 1174, 1187 Weekly reporting member banks, 1130, 1133 Foreign currency operations, 1118, 1120, 1176, 1184 Commercial banks: Foreign deposits in U.S. banks, 1110, 1118, 1119, Assets and liabilities, 1124, 1127, 1128 1129, 1132, 1185 Banking offices, changes in number, 1170 Foreign exchange rates, 1189 Consumer loans held, by type, 1153 Foreign liabilities and claims: Number, by classes, 1124 Banks, 1178, 1180, 1181, 1183, 1185 Real estate mortgages held, by type, 1149 Nonfinancial concerns, 1186 Commercial paper, 1134, 1136 Foreign trade, 1191 Condition statements (See Assets and liabilities) Construction, 1160, 1161 Gold: Consumer credit: Certificates, 1118, 1121 Instalment credit, 1152, 1153, 1154, 1155 Earmarked, 1185 Noninstalment credit, by holder, 1153 Net purchases by U.S., 1176 Consumer price indexes, 1160, 1164 Production, 1175 Consumption expenditures, 1166, 1167 Reserves of central banks and govts., 1174 Corporations: Reserves of foreign countries and international Sales, profits, taxes, and dividends, 1147, 1148 organizations, 1177 Security issues, 1145, 1146 Stock, 1110, 1123, 1176 Security prices and yields, 1134, 1135 Gross national product, 1166, 1167 Cost of living (See Consumer price indexes) Hours and earnings, manufacturing industries, 1163 Currency in circulation, 1110, 1121, 1122 Housing starts, 1161 Customer credit, stock market, 1135 Income, national and personal, 1166 Debits to deposit accounts, 1120 Industrial production index, 1156, 1160 Debt (See specific types of debt or securities) Instalment loans, 1152, 1153, 1154, 1155 Demand deposits: Insurance companies, 1137, 1140, 1141, 1150 Adjusted, banks and the monetary system, 1123 Insured commercial banks, 1126, 1128, 1170 Adjusted, commercial banks, 1120, 1122, 1129 Interbank deposits, 1116, 1124, 1129 1197 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1198 FEDERAL RESERVE BULLETIN • AUGUST 1965 Interest rates: Reserves: Bond yields, 1134 Central banks and govts., 1174 Business loans by banks, 1133 Commercial banks, 1129 Federal Reserve Bank discount rates, 1115 Federal Reserve Banks, 1118 Foreign countries, 1187, 1188 Foreign countries and international Money market rates, 1134, 1188 organizations, 1177 Mortgage yields, 1135 Member banks, 1110, 1112, 1116, 1129, 1131 Stock yields, 1134 Residential mortgage loans, 1149, 1150, 1151 Time deposits, maximum rates, 1116 Retail credit, 1152 International capital transactions of the U.S., 1178 Retail sales, 1160 International institutions, 1174, 1176, 1177 Inventories, 1166 Sales finance companies, consumer loans of, 1152, Investment companies, new issues, 1146 1153, 1155 Investments (See also specific types of investments): Saving: Banks, by classes, 1124, 1128, 1131, 1136 Flow of funds series, 1168 Commercial banks, 1127 National income series, 1167 Federal Reserve Banks, 1118, 1120 Savings and loan assns., 1137, 1141, 1150 Life insurance companies, 1137 Savings deposits (See Time deposits) Savings and loan assns., 1137 Savings institutions, principal assets, 1136, 1137 Securities (See also U.S. Govt. securities) Labor force, 1162 Federally sponsored agencies, 1143 Loans (See also specific types of loans): International transactions, 1184, 1185 Banks, by classes, 1124, 1128, 1130, 1136 New issues, 1144, 1145, 1146 Commercial banks, 1127 Silver coin and silver certificates, 1121 Federal Reserve Banks, 1110, 1118, 1120 State and local govts.: Insurance companies, 1137, 1150 Deposits of, 1129, 1132 Insured or guaranteed by U.S., 1149, 1150, 1151 Holdings of U.S. Govt. securities, 1140, 1141 Savings and loan assns., 1137, 1150 New security issues, 1144, 1145 Ownership of obligations of, 1128, 1136, 1137 Manufactures, production index, 1157, 1160 Prices and yields of securities, 1134, 1135 Margin requirements, 1116 State member banks, 1126, 1170 Member banks: Stock market credit, 1135 Assets and liabilities, by classes, 1124, 1128 Stocks: Banking offices, changes in number, 1170 New issues, 1145, 1146 Borrowings at Federal Reserve Banks, 1112, Prices and yields, 1134, 1135 1118, 1132 Deposits, by classes, 1116 Tax receipts, Federal, 1139 Number, by classes, 1125 Time deposits, 1116, 1122, 1123, 1124, 1129, 1132 Reserve position, basic, 1114 Treasurer's account balance, 1138 Reserve requirements, 1116 Treasury cash, 1110, 1121, 1123 Reserves and related items, 1110 Treasury currency, 1110, 1118, 1123 Weekly reporting series, 1130 Treasury deposits, 1110, 1118, 1138 Mining, production index, 1157, 1160 Turnover, deposit, 1120 Money rates (See Interest rates) Unemployment, 1162 Money supply and related data, 1122 U.S. balance of payments, 1190 Mortgages (See Real estate loans) U.S. Govt. balances: Mutual funds (See Investment companies) Commercial bank holdings, by classes, 1129, 1132 Mutual savings banks, 1123, 1124, 1126, 1136, 1140, Consolidated monetary statement, 1123 1141, 1149, 1170 Treasury deposits at Federal Reserve Banks, 1110, 1118, 1138 National banks, 1126, 1170 U.S. Govt. securities: National income, 1166, 1167 Bank holdings, 1123, 1124, 1128, 1131, 1136, National security expenditures, 1139, 1166 1140,1141 Nonmember banks, 1126, 1128, 1129, 1170 Dealer transactions, positions, and financing, 1142 Open market transactions, 1117 Federal Reserve Bank holdings, 1110, 1118, 1120, 1140, 1141 Par and nonpar banking offices, number, 1171 Foreign and international holdings, 1118, Payrolls, manufacturing, index, 1160 1177,1185 Personal income, 1167 International transactions, 1184 Postal Savings System, 1116, 1123 New issues, gross proceeds, 1145 Prices: Open market transactions, 1117 Consumer, 1160, 1164 Outstanding, by type of security, 1140, Security, 1135 1141, 1143 Wholesale commodity, 1160, 1164 Ownership of. 1140, 1141 Production, 1156, 1160 Prices and yields, 1134, 1135, 1188 Profits, corporate, 1147, 1148 United States notes, outstanding and in circulation, 1121 Real estate loans: Utilities, production index, 1157, 1160 Banks, by classes, 1128, 1136, 1149 Mortgage yields, 1135 Vault cash, 1110, 1116, 1129 Type of holder, 1149, 1150, 1151 Veterans Administration, 1149, 1150, 1151 Type of property mortgaged, 1149, 1150, 1151 Reserve position, basic, member banks, 1114 Weekly reporting member banks, 1130 Reserve requirements, member banks, 1116 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 June 23, 1965 (o THE FEDERAL RESERVE SYSTEM °) c? HAWAII 1 Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System <S> Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis