Federal Reserve Bulletin, 1965-09

FEDERAL RESERVE B U LLETIN September Volume £i * Number 9 * * * ¥ * 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 Expansion in the Labor Market 1199 Measures of Banking Structure and Competition 1212 Treasury and Federal Reserve Foreign Exchange Operations 1223 Statements to Congress 1237 Law Department 1263 Announcements 1274 National Summary of Business Conditions 1275 Guide to Tabular Presentation 1278 Financial and Business Statistics, U.S. (Contents on p. 1279) 1280 International Financial Statistics (Contents on p. 1341) 1342 Board of Governors and Staff 1360 Open Market Committee and Staff; Federal Advisory Council 1361 Federal Reserve Banks and Branches 1362 Federal Reserve Board Publications 1363 Index to Statistical Tables 1365 Map of Federal Reserve System Insideback cover E D I T O R I AL C O M M I T T EE Charles Molony Ralph A. Young Guy E. Noyes Daniel H. Brill Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This committee is responsible for opinions expressed, except in official statements and signed articles. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1199 I ncreases in employment this year have been the largest since the current business expansion began in early 1961 and have exceeded the growth in the labor force. As a result, the unemployment rate in August was at the lowest level since October 1957. The decline in unemployment has been widespread. Reductions have been large among adult men and have stemmed mainly from increased demands for blue-collar workers in industrial activities. Unemployment also has been reduced somewhat among young people, even though teenagers entered the labor force in sharply increased numbers this summer. Nevertheless, the rate of unemployment of teenagers is still high, as it is among nonwhite workers. CHART 1 EMPLOYMENT rises faster than labor force 1957-59=100 - 112 - 108 UNEMPLOYMENT rate declines - 5 1961 1S63 1965 NOTE.—Seasonally adjusted data. Bureau of Labor Statistics household survey. Latest figures shown, August. Almost all industries have shared in the expansion of job opportunities. Increases in manufacturing employment have been unusually sharp, particularly in the metal and metal-fabricating industries. Gains in production and employment in these industries accompanied increased business expenditures for capital equipment and consumer outlays for autos and other durable goods. Large accumulations of steel inventories prior to the strike deadline also contributed to the expansion in demands for manpower. With the supply of adult male labor growing more stringent, shortages of workers have been reported in some skills and in certain areas. For the most part, needs for the higher skills are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1200 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 being met by a longer workweek and by expansion of private and public training programs, including many within plants for persons now employed. Most semiskilled blue-collar workers laid off earlier have now been rehired, and employers in recent months have been recruiting more intensively among available young workers. Demands for workers in professional, managerial, and other occupations requiring extensive education also have continued strong. Upgrading and the increasing number of better educated persons now entering the labor force have, in most instances, provided the required skills. This year—and in fact throughout the current economic expansion—productivity in manufacturing has continued to increase at relatively high rates. At the same time, average increases in hourly compensation have been close to the over-all rate of growth in productivity, and labor costs per unit of output in manufacturing have been relatively stable. General upward pressure of labor costs on prices has been largely avoided, although in some instances price increases have followed wage settlements. EMPLOYMENT Nonfarm payroll employment rose sharply in early 1965, in part because of strike-hedge buying of steel and the catch-up in automobile production after a strike last fall. This accelerated pace was sustained through the late summer as consumer and business demands for goods and services maintained their upward momentum. In August nonfarm employment was 2.4 million persons higher than a year earlier; this was the largest August-to-August increase since 1949-50. CHART 2 EMPLOYMENT advances sharply in metals industries; UNEMPLOYMENT responds to increase in production-worker employment 1957-59=100 PER CENT MILLIONS OF PERSONS H r- - 120 2- - 14 NONFARM EMPLOYMENT - 13 NOTE.—Seasonally adjusted data, Bureau of Labor Statistics electrical equipment. Total unemployment, BLS household establishment data for nonfarm employment and for production survey. Latest figures shown, unemployment rate and producworkers in manufacturing. "Metals" represent primary and tion-worker employment, second quarter; other series, August, fabricated metals, transportation equipment, machinery, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1201 Short-run developments. Manufacturing employment rose more in the past 12 months than in the preceding 4 years combined. In August, factory employment totaled 18.2 million and surpassed the World War II record. As a consequence, the downward trend in jobs for production workers—a trend that has caused much concern in recent years—was arrested. Rising outlays for producers' durable equipment have resulted in large increases in employment in both the electrical and nonelectrical machinery industries. Substantial gains also have taken place in the transportation equipment industry in response to stepped-up auto sales. Two factors—inventory accumulation prior CHART 3 MANUFACTURING OUTPUT rises faster than productivity; EMPLOYMENT increases PER CENT OUTPUT EMPLOYMENT - 8 - 6 - 4 — 2 I I '53- '57- '60- 65 '53- '57- •60- '65 '53- '57- '60- '65 '57 '60 '64 I8M0S.] '57 '60 '64 18MOS.I '57 '60 '64 18MOSi NOTE.—Bureau of Labor Statistics manufacturing employment data. Federal Reserve estimates for output and output per manhour for all employees in manufacturing. Average annual percentage changes. Latest period shown is change computed from average of first 8 months in 1964, seasonally adjusted. to the strike deadline and expanded levels of current consumption —lifted employment in the steel industry to the highest level in over 5 years. Since early 1964 employment in metal-producing and fabricating industries as a group has advanced about 12 per cent compared with 3 per cent in all other manufacturing industries. The metals group employs about two-fifths of all production workers in manufacturing. Nondurable goods employment has moved up slowly but steadily. Such varied industries as apparel, textiles, printing, and chemicals have continued to expand. But in the food, petroleum, and tobacco industries, employment has declined; in August there were fewer employed than at the start of the cyclical recovery in 1961. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1202 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 The pattern of employment in other industrial activities has been mixed. The job situation has continued to improve in the transportation and public utilities industries. Construction employment, however, in line with a leveling-off in housing activity, has remained on a plateau following a rapid rise during 1963 and 1964. In mining, on the other hand, employment has stabilized after a long-term decline. A strong underpinning to the expansion in employment has been provided by the increase in retail sales and the rising demands for private and public services. Employment in service industries and in trade has been growing somewhat faster this year than it did last. In State and local governments the gain has been particularly large. Federal civilian employment in August was slightly higher than a year earlier after having shown little change for several years. For some time, employment in services has been gaining over that in industrial sectors, although the rate slowed appreciably in the past year. Since early 1960, 4 out of 5 of the net additional jobs have been in public and private services and trade. Only 40 per cent of all nonfarm workers are now employed in industrial activities; a decade ago the proportion was close to 50 per cent. Cyclical contrasts. Employment gains have been maintained longer and have been larger in terms of absolute numbers than they were in earlier postwar business expansions. Total nonfarm employment has now expanded by more than 6 million workers since the previous cyclical high in the spring of 1960. In prior cycles growth in manufacturing employment had generally slowed down after an initial rapid rise. This time, after a sharp advance from the recession low in early 1961, the rate of gain slowed between mid-1962 and 1963, but then advanced again. In the past 12 months the increase has been as large as in the initial recovery period. At the cyclical peaks in 1957 and 1960 production-worker employment in manufacturing failed to recover to the preceding high. In the current expansion, with output continuing to rise vigorously, it had passed the 1960 high at the end of 1964 and by August 1965 had risen to about the 1956 high. Meanwhile, the number of salaried workers has iscreased to a record level, and total wage and salary employment in manufacturing in August 1965 was at a new high, almost 1 million above that in 1956. Hours of work. The workweek has also been lengthened this year as manufacturing industries stepped up production schedules. In the first quarter it averaged 41.4 hours, almost an hour longer than a year earlier and the longest in 20 years. By August the average workweek had been reduced somewhat; it was a half hour Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1203 less than in the first quarter but still high when compared with WEEKLY HOURS earlier expansionary periods. Overtime was increased this year in some plants because of shortages of skilled workers; in others, because of the high fixed costs of hiring and training new workers and providing them with the standard fringe and other benefits. -41 Overtime has not been used extensively in most nonmanufacturing sectors of the economy to meet increased demands. As in other years part-time workers accounted for a large share of the employment increase, particularly in trade and services. In August -40 there was a total of 7.7 million regular part-time workers, almost double the number 10 years earlier. As a result of this growth in '64 '65 part-time employment—mainly among married women and youths NOTE.—Seasonally adjusted data for production workers in manufacturing. —the workweek in nonmanufacturing has continued to decline this year. LABOR FORCE Before the summer, the labor force had been growing this year at about the same high annual rate as in the two previous years and about in line with expectations based on projections of participation rates of the working-age population. During the first 6 months an average of 1.2 million more persons were working or seeking work than in the corresponding period in 1964. From 1957 through 1962, additions to the labor force had been much smaller—around 800,000 a year. An upsurge of job seekers in July and August, the result primarily of the rapidly growing population of teenagers, expanded the civilian labor force to a record high of 76 million persons. For those 2 months the civilian labor force averaged almost 2 million more than in July and August 1964, one of the sharpest gains in recent years and a larger rise than had been officially projected earlier. Young workers. In addition to accelerated growth in the younger age brackets of the population, rising economic activity and concentrated efforts by business and government to provide summer employment opportunities were important factors in the sharp expansion in the number of young people in the labor force. In July and August persons 14 to 24 years of age accounted for 1.3 million of the 2.0 million increase in the labor force from a year earlier. The largest increase was among those 18 years old. Sufficient jobs were available to more than match the record increase of young workers in the labor force. About one-third of the employment rise among youths from a year ago was in service activities, largely in private household work and educational services, and one-fourth was in Federal, State, and local government jobs. Also more young workers were employed in durable goods manufacturing and retail trade than in August last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1204 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Approximately a third of the younger entrants have completed high school or college and will become relatively permanent members of the labor force. The others are mostly students who wanted work only for the summer. Because of favorable business conditions, however, the number who will leave school and remain in the labor force this fall may be somewhat larger than usual. The structure of the labor force has been changing and will change significantly further as young workers enter the labor force in increasing numbers. Of the almost 8 million net addition to the labor force expected by 1970, almost half will be under 25 years of age. Between 1950 and 1960 their proportion of total growth was only 5 per cent. The proportion accounted for by women is expected to decline somewhat in the last half of the decade, even though as many women will enter the labor force as in the past 5 years. The number of adult men will not increase much until about 1970. Armed forces. According to recent plans the armed forces will be expanded over the next year or so by 340,000 men to a total of about 3 million, mainly through higher draft calls and increased enlistments. Calls have been raised to 33,600 for October and to 36,000 for November from an average of 15,000 a month in the second quarter of 1965. Those to be drafted will be primarily in the 20 to 22 year age group, and most are likely to be taken from the civilian labor force—deferments are expected to continue high for those in school. Workers in this age group usually have limited training and skill and can often be replaced by younger workers from among the unemployed or from outside the labor force. The number of men now in the younger age groups is large, and their unemployment is greater than during the Korean war or the Berlin crisis. Use of the draft, as opposed to calling up reserves, will tend to minimize the impact of the armed forces expansion on the labor market. By way of comparison, during the Berlin crisis from mid-1961 to early 1962, the armed forces were increased by about 350,000 to a total of 2.9 million in a shorter time span than for the increase currently being planned. The demands on manpower during the Korean war were much larger. More than 2 million men were added to the armed forces in less than 2 years. This brought the total strength to 3.5 million by early 1952. In both instances reserves were called up. UNEMPLOYMENT By August 1965 the number o f persons looking for work had declined to 3.4 million or 4.5 per cent of the civilian labor force; a year earlier the rate was 5.1 per cent; 2 years earlier, 5.5 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1205 cent. Unemployment was also lower than in early 1960, but still above the 4.0 per cent rate in early 1956. General developments. Reductions in unemployment among adult men largely reflected increases in employment, and in contrast to the other age-sex groups, were little affected by growing population. Unemployment for men began to decline as early as mid-1963, following a period of relative stability. Their rate is now among the lowest for any group. In August the rate for men 20 years of age and older was 3.2 per cent, down from 4.2 per cent 2 years earlier. For married men the rate was even lower— 2.6 per cent. Nevertheless, about 40 per cent of all unemployed are adult men. Changes in unemployment among men in the primary working ages have been closely associated with job opportunities in manufacturing. In mid-1963 there were still substantially fewer production workers employed in manufacturing than in 1960 and 1956. Unemployment rates among blue-collar workers were very high, and the group represented a large proportion of the longterm unemployed. When demands for manufactured goods began to accelerate, many unemployed blue-collar workers were able to CHART 4 UNEMPLOYMENT DECLINES are widespread RATE MILLIONS OF PERSONS - 2.0 LESS THAN 5 WEEKS NON WHITE - 1.6 - 6 - 1.2 1 1 1 1 1 1 1 1 1 I I 1 ! 1 1 ! 1 ! I | 1961 1963 1965 1961 1963 196S 1961 1963 1965 NOTE.—Seasonally adjusted data. Bureau of Labor Statistics are rates; duration is number of unemployed. Latest figures household survey. Unemployment by type of worker and color shown, August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1206 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 find jobs in industries and occupations in which they had previously been employed. In August unemployment in blue-collar occupations was down to 5.0 per cent compared with 6.9 per cent 2 years earlier. In clerical and service occupations, however, unemployment has declined only moderately. Inexperienced new workers with relatively high unemployment rates—mainly teenagers and married women—usually seek jobs in these expanding but typically lower paying activities. Long-term unemployment has also been reduced, and its composition has altered this year. In August, 700,000 or one-fifth of all the unemployed had been seeking work for 15 weeks or more— almost 200,000 less than in August 1964. The proportion of young workers in the long-term group was higher than it had been earlier, while unskilled and semiskilled older workers represented a smaller proportion. Most geographical areas have shared in the widespread improvement in job opportunities. By mid-summer only 19 of the 150 major labor market areas had unemployment rates of 6 per cent or more; this was 16 fewer than a year earlier and the smallest number since early 1957. Meanwhile, there were 46 areas with low unemployment—less than 3 per cent—21 more than a year ago. Aircraft, steel, machinery, and other manufacturing centers including Pittsburgh, Philadelphia, Providence, Paterson, and Seattle were removed from the substantial labor surplus category over the year. High unemployment rates persist, however, in the long depressed coal mining areas of Appalachia as well as in a few defense and other areas of insufficient diversification of industry. Unemployed youth. In August 900,000 teenagers were seeking jobs, and their unemployment rate—12.4 per cent—was the lowest since 1962. Although teenagers represented a little less than a tenth of the total labor force, they accounted for more than one-fourth of the unemployed. Both of these proportions have been rising. Unemployment among youths has always been higher than for other age groups. Before 1963, changes in their unemployment tended to be roughly similar to those for other workers. As the postwar baby crop began to reach working age, unemployment among youths worsened. But in recent months sustained demand for labor has made inroads into the unemployment rates of teenagers. Nevertheless, young workers who have not completed high school and who lack adequate vocational training continue to have difficulty finding full-time jobs, because they are increasingly competing with high school graduates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1207 Nonwhite workers. In August 7.6 per cent of the nonwhite workers were unemployed; this compares with 9.8 per cent a year earlier. Their unemployment rate continued to be about double that of white workers, as it has been since 1955. While the combined forces of strong demand and special legislation seem to have had some effect this year in reducing unemployment, the relative disadvantage for nonwhite workers is still marked because of their inadequate training and education and because of discriminatory hiring practices. Among nonwhite workers unemployment has declined more for men than for women or younger persons in the past year. Men have benefited somewhat from the growing demands for semiskilled workers in the metals and other related industries. Also a small but increasing proportion of nonwhite men have been able to find professional and skilled employment. For all younger nonwhite workers, unemployment has remained at the extremely high levels of recent years. About 1 out of 4 teenagers is unemployed and for those 20 to 24 years old the proportion is only moderately lower. Whether high school graduates or dropouts, male workers in these groups seek employment chiefly as operatives and laborers in both farm and nonfarm activities. Disappearance of farm jobs, however, has cut down an important source of work for these young men. The problem of unemployment among nonwhite girls is even more severe; nearly 1 out of 3 is out of work, two-fifths more than in 1960. The jobless rates for high school graduates and dropouts have been about the same. When they do find jobs, it is most likely to be in private households and other service activities in which part-time and intermittent employment is common. Unemployment statistics provide only a partial measure of hardship or poverty, especially in a period of generally high economic activity. Currently, underemployment, low wages, and disability probably rank as the most important factors that depress family income. Of the 7.2 million families estimated as poor according to Government classifications in 1963, more than half reported that the head of the family had some employment. Among nonwhites, the proportion with jobs was even higher. Moreover, of those in the poverty group who did not have jobs, most were reported as out of the labor force rather than unemployed. Nevertheless, the rate of unemployment among the heads of poor families was more than 3 times higher than for heads of families above the poverty level. Many special programs have been introduced—nationally, regionally, and in local communities—to aid those groups with low Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1208 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 income who have been unable to find steady work even in periods of high economic activity. Most new programs will help to upgrade the skills, training, and education of disadvantaged young people who are now, or soon will be, entering the labor force in search of jobs. PRODUCTIVITY AND One of the most favorable factors in the current expansion has LABOR COSTS been the continuing high rate of growth in productivity in the economy as a whole and in the manufacturing sector. Output per manhour in manufacturing industries has grown at a rate of about 4 per cent a year since 1960. This is a higher rate than for the postwar period as a whole or for any of the preceding cyclical upswings. Preliminary data suggest that in the first 8 months of 1965 gains in output per manhour in manufacturing were being maintained, with little evidence of a slowing down that in the past characterized later stages of cyclical expansion. Contributing to this relatively high growth in productivity have been the sustained expansion of the economy; the modernization of plant and equipment that has been encouraged by rising profits and tax programs to induce investment; and pressures to minimize costs. CHART 5 UNIT LABOR COST in manufacturing stable this year 135759 100 - 130 OUTPUT PEJt MANHOUR - 110 - 100 19S1 19S3 19S5 NOTE.—Seasonally adjusted, quarterly averages. Federal Reserve estimates for output per manhour for all manufacturing employees. Hourly compensation, including supplements, based on Bureau of Labor Statistics and Department of Commerce data; unit labor costs, Census Bureau. Figures for third quarter 1965 are estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1209 Meanwhile, increases in hourly compensation, including fringe benefits, have on average been about in line with gains in productivity. Thus, labor costs per unit of output in manufacturing have not changed significantly since the start of this year and have been close to those in all other years in the current cyclical upswing. The stability of labor costs per unit of output contrasts with preceding cyclical expansions. Price increases in the earlier periods were closely associated with accelerated advances in wages and retarded growth in productivity. In the current period wages have increased more slowly than they did in earlier expansions, and productivity has advanced somewhat faster. Labor income—wages and salaries plus supplements such as employer contributions to private and public pension and welfare funds—was at an annual rate of $389 billion in the second quarter, a rise of 7.4 per cent in the past year compared with a 5.0 per cent average annual gain in the preceding 2 years. In the main the greater advance is due to larger increases in nonfarm employment and a longer workweek in manufacturing. Earnings in manufacturing. Average hourly earnings in manufacturing in August were $2.60, up 8 cents or 3.2 per cent from a year earlier. If overtime pay is excluded, the advance of 2.9 per cent has shown little deviation from the average rate of increase in straight-time earnings in the 1960-64 period. The longer workweek in manufacturing contributed significantly to a sharp rise in workers' earnings. In the first 8 months of 1965 weekly earnings averaged 4.4 per cent more than a year earlier; this is the largest annual increase since 1962. Almost onethird of the increase came from longer hours of work; most of the extra worktime was paid for at premium rates of time and a half. Supplements to wages have been rising relatively faster than wages, but in recent months the rate of increase in fringe benefits has moderated. This reflects in part the growing importance of fringe payments in total employee compensation; the relative increase has tended to grow smaller as the total amount of fringe payments has increased. Total hourly compensation in manufacturing, including fringes and earnings of salaried workers, increased by about 3 per cent over the past year, the same as in the previous 12 months. Nonmanufacturing earnings. Wage increases this year in most nonmanufacturing industries for which data are available were, as in previous years, somewhat higher than in manufacturing. In the mining, contract construction, and trucking industries, increases of about 4 per cent or somewhat more in wage and fringe benefits have developed as a result of collective bargaining this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1210 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 year or increases provided for in earlier long-term contracts. In some services and in retail trade wage gains have also been relatively high in the past year. In part, this reflects continuing large demands for workers in a tighter labor market, but past and prospective increases in minimum wages also have been a factor in lifting wages in the lower paid service and trade occupations. In September 1964 about 660,000 workers in certain service, retail trade, and other nonmanufacturing activities received an increase in minimum wages from $1.00 to $1.15 an hour. This September the last step in minimum wage increases provided under the 1961 amendments of the Fair Labor Standards Act became effective, and 810,000 workers in the same industries as last year are receiving an increase to $1.25 per hour. About 29.5 million workers, 45 per cent of total private employment, are now covered by the Federal $1.25 per hour minimum wage. COLLECTIVE Labor management agreements have reflected economic condi- BARGAINING ^ J • i ii *• u • • * v • tions and special collective bargaining arrangements prevailing in industries in which new contracts have been negotiated. As a result, there have been substantial differences in costs, benefits provided, and length of contracts. These differences have further reduced the importance of pattern-setting by the major industries. In some industries with strong demands for labor and considerably higher profits, unions have been able to negotiate wage and fringe benefit increases well above the average for all manufacturing industries. Other unions have settled for less than average increases. Unions concerned with the impact of automation have attached special importance again this year to measures to increase employment and to extend job security. The recent wage contract in the steel industry will be in effect until August 1, 1968. It provides for an average rise in hourly compensation of 3.2 per cent according to the Council of Economic Advisers and is in line with the rise in economy-wide productivity. The cost of this contract is somewhat less than earlier agreements in such major industries as automobile, aluminum, and rubber. Domestic and foreign competitive conditions, a large inventory overhang, and concern with future job prospects in the steel industry were important restraints on union demands this year. While somewhat higher increases in hourly compensation were provided in the new contracts than in those negotiated in 1962 and 1963, they were less than in 1960 and far below the annual increase of 8 per cent agreed to in 1956. A major feature of the new steel agreement, as well as of many others concluded in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EXPANSION IN THE LABOR MARKET 1211 past year, was the relatively high proportion of added employment costs for nonwage items. Increased pensions, early retirement, and improved insurance accounted for almost half of the estimated value of the new contract. With upward pressures on consumer prices limited, unions have not pushed for cost of living clauses in new contracts. Such adjustments were eliminated from the steel contracts in 1962 and were not reintroduced in the new pact. There are now about 2 million workers covered by agreements with escalator clauses tied to the consumer price index, about the same number as in 1963 and 1964, but significantly fewer than the 4 million in 1957, a period of rapidly rising prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Measures of Banking Structure and Competition In 1961 the Board of Governors launched The research undertaken in this field ina new program for comprehensive research volves the measurement of concentration as in the field of banking structure and bank part of an over-all study of the structures of competition. At that time the Board set up banking markets. This article, written by a Banking Markets Unit in its Division of Wm. Paul Smith of the Banking Markets Research and Statistics to undertake studies Unit discusses the usefulness of conceny and also to foster research in banking mar- tration ratios and other measures in assessing kets by others. the extent of bank concentration? The structure of commercial banking has ing in the area. Similarly, the Bank Merger changed markedly during recent years. Act of 1960 requires that the Federal bank These structural changes have resulted from supervisory agencies consider the effect of mergers of operating institutions, formation the merger on competition as well as bankof holding companies and acquisitions by ing factors and the convenience and needs them, the opening and closing of branch of the communities involved. In each case, offices, entry of new banks, and the failure the relevant agency may not approve the of established institutions. These activities transaction—merger or holding company have engendered a wide interest in and conacquisition—unless, after weighing each of cern regarding the structure of commercial these factors, it finds the transaction, on banking. balance, is in the public interest. In merger and holding company cases considered by BANKING STRUCTURE AND COMPETITION the banking agencies, competition is neither The role of competition in banking has been the exclusive nor necessarily the dominant an important underlying issue in much of factor in any particular case. In contrast, the recent attention given by Congress, bank competition is the exclusive issue considsupervisors, and academic scholars to ered by the Department of Justice in the changes in bank structure. Under the Bank bank merger cases it has challenged under Holding Company Act of 1956, for examthe antitrust laws. ple, the Board of Governors must consider At this writing court decisions have been —in addition to banking factors and the rendered in three cases in which the Departconvenience and needs of the areas affected ment of Justice challenged a merger after —whether a bank holding company's acquiit had been approved by one of the Federal sition of a bank is consistent with the presbank supervisory agencies. In the Philaervation of competition in commercial bankdelphia National Bank and Lexington cases2 this and all other notes, see pp. 1221-22. the Supreme Court ruled that the contested 1212 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEASURES OF BANKING STRUCTURE AND COMPETITION 1213 mergers violated the antitrust laws by unduly competition and market performance in a increasing concentration and eliminating wide range of cases and, further, structural competition in the local market. In the changes may be tantamount to changes in Manufacturers-Hanover case,3 Judge Mac- competition and performance. However, the Mahon of the Federal District Court ruled measurement of structure is neither simple that the impact of the merger on competi- nor free of ambiguity. tion in both the local and the national markets would violate the antitrust laws. MEASURES OF BANKING STRUCTURE The courts, supervisory authorities, and The number and diversity of markets, comacademic analyists have frequently utilized bined with the necessity for quick appraisals simple measures of structure—the number of the impact of structural changes on comand relative size of competing institutions— petition, have contributed to reliance on as indices of competitiveness in banking simple indices for measuring market strucmarkets. Underlying this use of structural ture. The concentration ratio is the most measures is a presumption based on a priori frequently used measure of market strucreasoning that structure is a major deter- ture. It was utilized initially in connection minant of the degree of competition and with broad systematic studies of the strucresultant performance in a market. It is ture of individual industries undertaken by generally maintained that competition in the National Resources Committee, the more concentrated markets will be less vig- Temporary National Economic Committee, orous. As a consequence the expected per- and other groups during the 1930's. The formance4 of more concentrated markets data prepared by these organizations were would be less desirable in a social sense.5 immediately seized upon by individuals con- Some observers have argued that bank cerned with concentration and market power regulation and supervision designed primar- in manufacturing industries. Since World ily to protect the safety of depositors and the War II the Federal Trade Commission, concirculating medium have restrained compe- gressional committees, and individual scholtition among commercial banks and with ars have prepared similar data for manufacother financial institutions. For example, turing industries during various years. The Regulation Q's ceilings on interest rates for users of the expanding tabulations of contime and savings deposits have restricted centration ratios have increased more rapthe opportunities for commercial banks to idly than the list of compilers. compete for such accounts. But such re- Given the wide use of concentration ratios straints on the competitive behavior of banks for manufacturing industries, it is not surapply uniformly in most areas and hence prising that this concept was adopted by cannot be a major cause of contrasting those concerned with the structure of bankbehavior in differing markets. Thus, regula- ing markets. The concentration ratio is simtions notwithstanding, variations in com- ply the share of the total of some economic petitiveness and performance in different variable (employment, sales, assets, etc.) markets can still stem partly from diversi- for all firms in a market that is accounted for ties in market structure. by a relatively few of the largest firms in that To that extent market structure may pro- market. The concentration ratio typically vide a meaningful proxy for the degree of computed for local—urban and metropoli- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1214 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 tan areas—banking markets is the share of inferences from concentration ratios, or any total commercial bank deposits in the area other measure of market structure, it is necthat are held by the three largest commercial essary to determine the boundaries of the banks. Concentration ratios for States most markets involved. Also, the computation of often are for the five largest banks, while for concentration ratios based on total deposits the entire United States the 100 largest rather than, for example, demand deposits banks usually are selected. or business loans bypasses the determina- These concentration ratios suggest some tion of the relevant products. Such a determiof the problems inherent in their use as in- nation is crucial to the results derived from the use of measures of structure. dicia of competition in commercial banking. The selection of the number of banks in- The number and size distribution of all cluded in the few largest whose combined banks in a market affect the degree of commarket share is computed is largely arbi- petition and the resultant social performtrary. Further, in order to derive reliable ance of that market. Thus, reliance on 3bank concentration ratios for metropolitan areas obscures other structural character- TABLE 1 istics that also influence these markets. CONCENTRATION RATIOS FOR COMMERCIAL BANKS Share of deposits held in selected years While this figure gives an indication of the extent of concentration of banking business 3 largest banksi in— controlled by relatively few banks, it is silent 1962 1964 on the disparity of size among the larger Metropolitan area:2 banks. Further, the 3-bank concentration Birmingham, Ala 92.5 97.3 Buffalo, N.Y 93.1 94.8 figures are unresponsive to differences in Honolulu, Hawaii 82.8 79.6 Los Angeles, Calif. 76.9 71.2 other dimensions of market structure that Miami, Fla 44.4 40.0 P O a k t l e a r h s o o m n, a N C . i J ty, Okla.. 4 72 1 . . 1 5 4 6 3 5 . . 2 2 influence performance—such as the num- Phoenix, Ariz 93.3 90.3 ber of banks and the size disparity between 5 largest banks 1 in— a core of the largest banks and the whole of the market. 1961 1964 Structure of deposit markets. The failure of State California 81.3 78.6 concentration ratios to reflect these differ- Illinois 46.4 44.8 Maryland 61.5 66.2 ences may be seen by referring to Table 2, Michigan.... 49.9 49.0 New York.. 59.1 58.8 which shows the share of total deposits held Ohio 36.3 33.3 Pennsylvania. 39.0 38.9 by each of the five largest commercial banks. Texas 28.1 31.3 The three largest banks in each of these 100 largest banks in— major metropolitan areas hold about the 1960 1962 1964 same share of total deposits; the figures range from a low of 76.7 per cent in Syra- United States. 46.1 46.3 46.3 cuse and Wilmington to 77.9 per cent in 1 All banks controlled by one bank holding company are consolidated. Springfield, the highest. While the 3-bank 2 Metropolitan areas are the Census Bureau's standard metropolitan statistical areas. Some larger areas are not shown due to changes in figures are virtually identical, the size distridefinitions which distort comparisons. bution of banks varies considerably among NOTE.—The concentration ratios for metropolitan areas are for all commercial banks as of June 30. Those for individual States and the these areas. The fourth largest bank in Syra- United States are based on year-end figures for insured commercial banks, except for the United States in 1962, which are figures for cuse, for example, is larger in relation to the December 28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEASURES OF BANKING STRUCTURE AND COMPETITION 1215 largest bank in its area than is the case with share exceeds 32 percentage points. Hence, the second largest bank in three of the other the concentration ratio would not appear to areas—Akron, San Francisco, and Wilming- be a sufficiently reliable index of market ton. Further, a comparison of the largest structure to warrant the heavy burdens that banks' share reveals a spread of more than are placed upon it. Measures of market structure should take TABLE 2 account of all competitors within a market, and they also should be more sensitive to SHARES OF TOTAL DEPOSITS HELD BY FIVE LARGEST BANKS, JUNE 30, 1964 * the different sizes of banks. A measure of Selected major metropolitan areas market structure developed a few years ago Num- Share of total deposits held by— by Orris C. Herfindahl, an industrial organi- Metropolitan ber area i t n i s o o t f n it s u- Largest Second Third Fourth Fifth z cu at l i t o ie n s e e c n o c n o o u m nt i e st r , e d a v i o n i d u s si s n o g m e c o o n f c e th n e tr a d ti if o f n iratios.6 The Herfindahl index takes account Syracuse, N.Y... 9 30.9 24.9 21.0 17.3 2.1 S W p i r l i m ng i f n i g el t d o - n, Del. 23 44.4 19.7 12.6 7.1 1.9 of the size of all banks in a market although C H h o i l c y o o p k e e e , - it is most sensitive to the largest.7 Interpreta- Mass.-Conn... 13 29.3 28.3 20.3 5.7 3.9 Akron, Ohio 11 42.5 18.8 16.4 6.3 4.6 tion of figures derived from the Herfindahl San Francisco- Oakland, index is similar to interpretation of different Calif. 36 39.3 23.8 14.0 5.4 4.6 values for the concentration ratio. That is, i All banks in an area that were controlled by one holding company higher values of the index indicate more conare consolidated. NOTE.—The "metropolitan areas" are the Census Bureau's standard centrated markets, which presumably are metropolitan statistical areas. less competitive and, consequently, generate less desirable performances in a social sense. 15 percentage points. The failure to reflect consistently such differences in the size distribution of banks is an inescapable inade- TABLE 3 quacy of the concentration ratio as a meas- SHARES OF TOTAL DEPOSITS HELD BY LARGEST BANKS ure of structure. JUNE 30, 1964x Selected small metropolitan areas The futility of selecting some other number of banks—say, one—for computing Num- Share of total deposits ber concentration ratios can be seen by refer- Metropolitan area of institu- Two Three ence to Table 3. Each of the smaller metro- tions Largest largest largest politan areas for which data are shown Waco, Texas 15 35.5 70.1 76.2 Billings, Montana 6 36.0 69.5 87.7 there, has one-bank concentration figures Scranton, Pennsylvania.. 20 35.6 49.4 55.1 Trenton, New Jersey. 12 35.9 57.2 66.2 falling between 35.5—Waco, Texas—and Raleigh, North Carolina. 11 35.6 64.1 77.8 36.0—Billings, Montana. As the share of i All banks in an area that were controlled by one holding company total deposits held by the two and three are consolidated. NOTE.—The "metropolitan areas" are the Census Bureau's standard largest banks tend to indicate, the market metropolitan statistical areas. structures for these smaller metropolitan areas also vary widely. Within these five A comparison of figures for the Corpus metropolitan areas there is a spread of more Christi and Des Moines areas illustrates than 20 percentage points in the share of some of the advantages of the Herfindahl deposits held by the two largest banks and index over the concentration ratio. As Table the variation in the three largest banks' 4 shows, the three largest banks in each of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1216 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 these metropolitan areas account for about for differences in both the number of banks the same proportion of total deposits in in a market and the relative sizes of those their areas: 71.7 per cent in Corpus Christi banks. As both a logical and a pragmatic as compared with 71.5 per cent in Des matter, this places an impossible burden on Moines. However, as the figures for the any formula from which a single numeric largest and the two largest banks tend to value is derived. The difficulties arise from indicate, there is considerable difference in the attempt to measure the disparity in the the size distribution of banks in these areas. size of banks and concomitantly take ac- In particular, the largest bank's share in count of the total number of banks in the Corpus Christi—44.8 per cent—is much market area. A greater inequality of size more prominent than it is in Des Moines, leads to a higher value of the index, while a where the largest bank accounts for only greater number of banks in the market, other 30.2 per cent of the area's total deposits. things being equal, leads to a lower value of The different values of the Herfindahl index the index. A small number of banks in a shown in Table 4—260 for Corpus Christi market is not necessarily accompanied by a as compared with 202 for Des Moines—are high degree of size inequality, nor are the indicative of the variations in the size dis- sizes of a large number of banks necessarily tribution of banks in these two areas. Simi- similar. larly, a comparison of the measures of bank- This can be more readily appreciated by ing structure for Lynchburg with those for comparing the data for San Francisco and Corpus Christi indicates that use of the Syracuse given in Table 2. The structure Herfindahl index avoids at least some of of banking in Syracuse reveals a smaller the problems that arise with arbitrary choice size disparity of banks than does San Franof the number of banks utilized in com- cisco's banking structure and thus a lower puting concentration ratios. degree of concentration. However, the smaller number of banking institutions in TABLE 4 Syracuse suggests a more concentrated mar- SELECTED MEASURES OF BANKING STRUCTURE ket structure on that count. JUNE 30, 1964 Irrespective of the sophistication exer- Num- Share of total deposits cised in the development of formulae to Metropolitan b o e f r Herfindahl measure market structure, the meaningfularea i t n i s o t n it s u ! - Largest la T r w ge o st l T ar h g r e e s e t index ness of computations based on them depends upon a realistic, reliable delineation of the Des Moines, Iowa.... 18 30.2 57.8 71.5 202 Corpus Christi, Texas. 13 44.8 64.1 71.7 260 relevant products and the market areas for Lynchburg, Virginia.. 4 45.8 73.3 93.5 337 these products. Hence the analyst must de- 1 All banks in an area that were controlled by one holding company are consolidated. termine whether total deposits represent the NOTE.—The "metropolitan areas" are the Census Bureau's standard relevant banking product or service for metropolitan statistical areas. measuring banking structure and for deriv- Despite its advantages, the Herfindahl ing inferences of competition and performindex has limitations that detract from its ance; and whether metropolitan areas conusefulness as a measure of market struc- stitute the relevant market area. ture. As indicated earlier, a satisfactory The metropolitan area may indeed be the measure of market structure must account appropriate market area. If so, the State, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEASURES OF BANKING STRUCTURE AND COMPETITION 1217 the nation, could not also constitute the ever, the products that are associated with appropriate market area. Any extension of these different geographical markets are the area covered would lead to a reduction distinct and separable. The special checkin the value of concentration measures. Fur- ing account, for example, is used almost ther, arbitrary enlargements of the areas exclusively by local individuals. The market covered would give spurious declines in for certificates of deposit, on the other hand, concentration. These may generate unwar- may be national in scope. The different ranted differences in appraisals of the degree amounts typically involved in these and of competition and the impact of structural other banking products or services that can changes on market performance. be allocated to either a local or a national Because of convenience factors the market would distinguish them in the absmaller customers of a bank—for example, sence of other characteristic differences. In households and small business—are led fact, the size of account or transaction may to rely on local banks to satisfy their needs be the most useful criterion for allocating for banking products and services. But in some banking services—for example, reguview of the mobility of urban populations, lar checking accounts or commercial and the entire metropolitan area may represent industrial loans—between the local and the a satisfactory approximation of the relevant national markets. In the Manufacturersmarket area for banking products and serv- Hanover decision, Judge MacMahon relied ices supplied predominantly to smaller cus- heavily on deposit and loan-account size as tomers.8 Alternatively, the market area for criteria for this purpose.10 banking products and services supplied to The most common and the only unique such customers may be limited to the town service supplied by commercial banks is the in which they are located or even only a checking account. Individuals and small part of a metropolitan area.9 Banks' other businesses typically depend on locally availcustomers are by no means confined to their able banking outlets for demand deposit local areas. Many larger firms have operat- services because of convenience factors. ing divisions in several States, and much of Such customers usually maintain relatively their banking business is similarly decen- small balances. For example, the 1959 surtralized. Large businesses whose operations vey of demand deposit ownership revealed are geographically limited also find that it that accounts of less than $10,000 repreis economically feasible and advantageous sented almost 70 per cent of the volume and to rely in part on banks hundreds of miles about 99 per cent of the number of demand from the site of their principal operations. deposit accounts of individuals.11 The bal- The market area for bank services and prod- ances maintained by large businesses that ucts demanded by businesses in this cate- are able to obtain banking services nationgory extends beyond the metropolitan area ally, of course, are much larger. Businesses to broad regions that may include the en- with balances of more than $100,000 untire nation or even transcend national doubtedly are customers whose accounts boundaries. would be accepted, and probably actively The characteristics and opportunities of sought, by banks in nearby or even remote different classes of bank customers dictate cities. Such customers should be assigned to national as well as local market areas. How- a national market irrespective of where they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1218 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 are located in relation to their present bank- In contrast, the level of concentration is ing connections. Thus customers with de- significantly higher in Akron if one conmand deposit balances of $100,000 or more siders only accounts of less than $10,000. could be allocated to a national market, Thus the use of total deposits—which inwhile those with balances of less than that clude national accounts—in an analysis of could be allocated to a local market.12 market structure does not give a reliable By using the data on size of accounts indication of concentration in a local marcollected by the Federal Deposit Insurance ket, and it may greatly overstate the level Corporation, it is possible to illustrate the of concentration. In metropolitan areas such consequences of segregating customers by as Chicago, for example, failure to eliminate national accounts could lead to a seri- TABLE 5 ously misleading appraisal of the local market's structure. THREE LARGEST BANKS' SHARE OF DEMAND DEPOSITS BY SIZE OF ACCOUNT1 Other financial institutions. The analysis thus far has ignored the competition com- All Size of demand account mercial banks face from other types of finan- Metropolitan area deposits a i r n ea Under Under cial institutions. In contrast to demand de- $100,000 $10,000 posit services, most products and services Chicago 48.7 24.0 13.4 supplied by commercial banks meet close Detroit 73.4 64.7 59.8 Akron 81.5 78.3 75.0 competition from similar products and serv- Indianapolis. 83.1 74.6 67.2 ices supplied by other financial institui Based on Nov. 18, 1964, data for the demand deposits of in- tions. For example, mutual savings banks, dividuals, partnerships, and corporations held by insured commercial banks within the standard metropolitan statistical areas as defined by the Census Bureau. savings and loan associations, and credit SOURCE.—Records of the Federal Deposit Insurance Corporation. unions all provide services that are closely size of account. Table 5 shows the shares competitive with commercial banks' time of demand deposits in differing size cate- and savings deposit services. Failure to congories that are held by the three largest sider other institutions overstates the posibanks in four selected metropolitan areas. tion of any and all commercial banks in In each of these areas the share of smaller such markets.13 accounts held by the three largest banks is An illustration of this point is provided lower than their share of the total, and in the accompanying chart. Mutual savings markedly so in three cases. The largest dif- banks are prominent in each of the smaller ferences are in Chicago—where, as in other metropolitan areas for which data are shown unit-banking areas, the largest banks have in this chart. In these areas the three largest placed greater emphasis on the national commercial banks hold a much larger promarket and less on their own local market portion of time and savings deposits of all than is true of larger branch banks in other commercial banks in the area than they do metropolitan areas. of time and savings deposits held by both There is considerable variation among commercial banks and mutual savings banks. these areas in the decline in concentration Failure to include mutual savings banks in ratios as smaller accounts are considered. the market for savings deposits in these The 3-bank concentration ratio for total metropolitan areas clearly gives an unrealisdemand deposits is highest in Indianapolis. tic view of market structure and would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEASURES OF BANKING STRUCTURE AND COMPETITION 1219 lead to an unreliable appraisal of the degree from a public policy standpoint, as the of competition in these markets. Analo- maintenance of competition in markets for gously, ignoring credit unions or savings deposit services. The problems of assaying and loan associations in markets where they competition in lending markets parallel the are active engenders both distorted views difficulties discussed above. Conceptually, of market structure and mistaken assess- the problems encountered in the developments of the extent of competition. ment of a satisfactory measure of market Unfortunately, data for savings and loan structure remain, irrespective of the prodassociations and credit unions which would ucts or services involved. The delineation permit a complete analysis of the structures of products and market areas may in pracof markets in which they compete with tice be more difficult for loan and investcommercial banks are largely unavailable. ment markets because of both a greater Proper consideration of competition arising number and diversity of the relevant prodfrom these institutions thereby is made more uct markets and, also, the paucity of adedifficult. Nevertheless, this neither reduces quately refined data. their importance nor excuses neglect of them The loans and investments of commercial in the analysis of the structure of markets banks typically range from holdings of U.S. in which they compete with commercial Government securities of varying maturibanks. These institutions can be included in ties to instalment loans made to individuals. a census of competitors in those markets in The markets for each of these asset items, which they compete with banks. Headand competition within them, may be quite counts of competitors are very useful, and different. Like deposits, asset items might they represent the minimum compilation of be assigned to different markets on the basis data for an analysis of market structure. of size—either size of loan or size of bor- Structure of loan markets. The mainte- rower—or nature of the product. Undoubtnance of competition in markets in which edly the broadest market in which commerbanks supply credit is fully as important, cial banks compete is the U.S. Government THREE LARGEST COMMERCIAL BANKS' SHARE OF SAVINGS DEPOSITS, JUNE 30,1964. BROCKTON, MASS. LOWELL, MASS. PORTLAND. MAINE 25 50 75 100 3 LARGEST COML. BANKS OTHER COML. BANKS | j OTHER COML. &. MUTUAL SAVINGS BANKS NOTE.—Savings deposits are time and savings deposits of indi- the Census Bureau's standard metropolitan statistical areas. viduals, partnerships, and corporations. Metropolitan areas are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1220 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 securities market—an example par excel- few other financial institutions in some prodlance of a national market. The largest uct markets. For example, they may be the commercial bank in the United States ac- only readily available and economically counts for slightly more than 1 per cent of feasible source of short-term loans to small all Government securities publicly held, and medium-sized businesses in some areas. while the three largest hold less than 3 per In such cases detailed analysis involving the cent, and all commercial bank holdings rep- elimination of data for loans made in more resent less than 37 per cent of the total. highly competitive markets may reveal a The remainder is accounted for by a wide higher degree of concentration than would variety of other holders ranging from indi- be suggested by the use of data for all loans. viduals to insurance companies and manu- Such cases in which analysis of relevant facturing corporations. It is unlikely that product markets shows a higher degree of any foreseeable structural change in com- concentration than analysis based on overmercial banking would have a discernible all figures are probably exceptional. As a influence on the competitive situation in this general rule, measure of market structure market. based on aggregates, such as total assets or The markets for consumer instalment liabilities of commercial banks only, suggest loans represent a very different facet of the a more highly concentrated market strucspectrum of markets in which banks com- ture than actually exists. pete as lenders. Borrowers in these markets are largely confined to lenders in their im- SUMMARY AND CONCLUSIONS mediate areas. But within these highly local- The above discussion has considered the ized markets commercial banks typically major difficulties encountered in attempting meet active competition from a wide variety to reduce to a neat formula the measureof sources including small loan companies, ment of the structure of markets in which credit unions, and sales finance companies. banks compete. The first difficulty is a con- Similarly, banks face competition from savceptual one of selecting, or developing, a ings and loan associations, insurance commeaningful measure of market structure. panies, and Governmental agencies in The most frequently used measure of marmortgage markets. Competition from such ket structure, the concentration ratio, is ininstitutions not only dilutes the market herently inadequate for the burdens placed power of commercial banks but also reduces upon it in the analysis of particular market the impact of structural changes—for example, mergers—on competition in these situations. Although other measures of marmarkets. Again, detailed data on the activi- ket structure such as the Herfindahl index ties of nonbank institutions in these markets are more responsive to some crucial dimenare not generally available. Nevertheless, sions of market structure, the results obsimple censuses of the institutions operating tained from their use may be ambiguous. in these markets afford the basis for some The other difficulties encountered in the appraisal, albeit imperfect, of their effect on measurement of market structure are more competition in these markets. pragmatic and involve the problems of de- In contrast, commercial banks may face fining products and delineating market areas only limited competition from a relatively as well as identifying and taking account of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEASURES OF BANKING STRUCTURE AND COMPETITION 1221 the influence of all competitors upon these is the presence or absence of aggressive commarkets. petitive behavior on the part of individual For broad comparisons over the entire banks. The elimination of a bank that is spectrum of industries, concentration ratios actively seeking additional business in comand other summary measures of market petition with the other banks and financial structure are useful descriptive tools. How- institutions in its area has a very different ever, measures of structure that are com- impact on competition from that in which puted on the basis of aggregate data with- a more passive competitor is eliminated. An out regard to relevant products and markets appraisal of the behavior of the banks incan be highly misleading in particular situ- volved is necessary to determine the intensity ations. of competition in a local market. Thus, no The degree of competition in individual matter how much care is exercised in their markets often is influenced by factors other development, one should not rely solely on than market structure. One such factor, summary measures of structure in arriving which frequently appears in merger cases, at public policy decisions. 1. The author wishes to express his appreciation for Areas: A Statistical Study of Factors Affecting Rates the cooperation and assistance of his colleagues in the on Bank Loans (Washington, D.C.: Board of Gov- Banking Markets Unit, especially Tynan Smith, who ernors of the Federal Reserve System, 1965). reviewed the present article, and Stuart Schmid, who Edwards' statistical study of concentration and perundertook the computer programming necessary to formance revealed higher loan rates in more concendevelop some of the data used in this article. trated markets. The data utilized by Edwards were 2. The Clayton Act was applied to mergers of com- later employed in Flechsig's study of market structure mercial banks in United States v. Philadelphia Na- and performance. Flechsig utilized more refined prodtional Bank, 314 U.S. 321 (1963) while the Sherman uct and market definitions and different measures Act was applied in United States v. First National of market structure. His analysis did not reveal any Bank & Trust of Lexington, 376 U.S. 665 (1964). statistically significant relationship between concentra- 3. Judge MacMahon ruled that this merger's impact tion and the rates charged on business loans once acon both the local and the national market was in vio- count was taken of regional variations in the supply lation of both the Sherman Act and the Clayton Act. of funds and the demand for credit. Both studies were United States v. Manufacturers Hanover Trust Com- confined to an investigation of only one aspect of perpany, 240 F. Supp. 867 (1965). formance in 49 of the largest metropolitan areas; per- 4. Aspects of performance in this sense include, force neither one provides direct evidence on the relaamong others: (1) the prices paid for the use of re- tionship of structure and performance in smaller urban sources—interest rates on time deposits; (2) the prices or rural areas. Their conclusions are further limited charged for services or products supplied—interest by the fact that it was not possible to take account of rates on loans; and (3) the degree of innovative activ- credit terms such as the existence and level of comity—the rate at which new services are made avail- pensating balance requirements. able to bank customers. 6. This index was advanced in Orris C. Herfindahl's 5. The relationships between the structure of bank- Ph.D. dissertation, Concentration in the Steel Industry ing markets and performance in metropolitan areas (New York: Columbia University, 1950). An extenhas been the subject of two recent monographs: sive discussion of this and other measures of structure Franklin R. Edwards, Concentration and Competi- is provided by Gideon Rosenbluth's "Measures of tion in Commercial Banking: A Statistical Study (Re- Concentration," in Business Concentration and Price search Report to the Federal Reserve Bank of Boston, Policy (Princeton, N. J.: Princeton Univerity Press, No. 26, 1964. Based on a Ph.D. Dissertation, Harvard 1955). University, 1964); Theodore G. Flechsig, Banking 7. The Herfindahl index's sensitivity to the largest Market Structure & Performance in Metropolitan firms is a direct result of its definition and computa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1222 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 tion. The value of the index equals the sum of the and industrial loans and single-payment loans to insquares of the market shares of each firm. In Table 4 dividuals between the local and the national markets the decimal point has been dropped. and size of account for allocating demand deposits 8. This view of the market area may be reasonable between the local and national markets. 240 F. Supp. for smaller metropolitan areas. However, it un- 867 (1965), p. 921. doubtedly falls wide of the mark for the largest met- 11. Federal Reserve BULLETIN, April 1959, p. 380. ropolitan areas such as New York, Chicago, Los 12. This is the size break used by Judge MacMahon Angeles, Detroit, and Philadelphia. for allocating demand deposit accounts between the 9. The Board's analyses of market areas in merger local and the national markets. 240 F. Supp. 867 cases has often recognized a portion of a metropoli- (1965), p. 921. tan area as the relevant market area. See, for example, the Board's statements approving Chemical Bank New 13. It should be noted that a review of the Board's York Trust Company's acquisition of the Benson- decisions under the Bank Holding Company Act of hurst National Bank of Brooklyn and Provident 1956 indicates that it has limited its consideration of Tradesmens Bank and Trust Company's merger with the competitive factor to competition within commer- Second National Bank of Philadelphia. Federal Re- cial banking. In contrast, under the Bank Merger Act serve BULLETIN, March 1964, pp. 321-24, and August of 1960 the Federal bank supervisory agencies have 1964, pp. 1003-06. frequently considered competition arising from other 10. He used size of loan for allocating commercial financial institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This seventh joint interim report reflects This report was prepared by Charles A. the Treasury—Federal Reserve policy of Coombs, Vice President in charge of the making available additional information on Foreign Department of the Federal Reserve foreign exchange operations from time to Bank of New York, and Special Manager, time. The Federal Reserve Bank of New System Open Market Account. It covers the York acts as agent for both the Treasury period March-August 1965. Previous reand the Federal Open Market Committee of ports were published in the BULLETINS for the Federal Reserve System in the conduct of September 1962, for March and September foreign exchange operations. 1963 and 1964, and for March 1965. During the period covered by this report U.S. Treasury and Federal Reserve were —March-August 1965—the exchange mar- able to make good progress in reducing the kets reflected not only the shifts taking foreign currency commitments that had been place in underlying balance of payments undertaken the previous fall and winter positions but more particularly the specu- when a massive U.S. deficit had coincided lative pressures focusing on the pound. with the sterling crisis. To be sure, gold sales During the summer months, the market be- by the U.S. Treasury reached very high came increasingly skeptical of the outlook levels despite the striking improvement in for sterling, largely discounting each new the U.S. payments position. These sales, measure taken by the British Government to however, to a large extent resulted from right its payments position and thus failing the overhang of dollars that had accumuto reflect the over-all improvement that was lated in official reserves in earlier months, gradually taking place. For the first 8 as well as the persistent surplus position of months of this year as compared with the France whose gold purchase policy has been same period in 1964, British exports, for widely publicized. Italy also continued to example, rose by about 6 per cent while experience very large surpluses, but policies imports grew by 1 per cent, cutting the were adopted by the Italian authorities that trade deficit by well over a third. On the minimized the impact of these surpluses on other hand, the turnabout in the U.S. bal- the exchanges and on official reserves. ance of payments following introduction of It was against this background that the the Voluntary Foreign Credit Restraint Pro- Federal Reserve swap network was further gram and other measures in February was strengthened by increases in the swap arso sharp as to have a major effect on the rangements with the Bank of Italy (from exchanges. Lingering doubts about the $250 million to $450 million), the Bank of stability of the dollar evaporated, and the Japan (from $150 million to $250 million), 1223 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1224 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 and the Bank for International Settlements ings in March and April brought the net (from $150 million to $300 million). The amount outstanding on May 25 to $230 milswap network now covers reciprocal credit lion, which was completely repaid on that lines totaling $2.8 billion, as shown in date out of the proceeds of the $1.4 billion Table 1. equivalent British drawing on the Interna- TABLE 1 tional Monetary Fund (IMF). To offset FEDERAL RESERVE RECIPROCAL CURRENCY speculative pressures developing during the ARRANGEMENTS, SEPTEMBER 1, 1965 summer months, the Bank of England made Amount Term of new drawings of $360 million during June Other party to arrangement (in millions arrangement of dollars) (in months) and had further recourse to the swap line in July and August. Austrian National Bank 50 12 National Bank of Belgium 100 12 On September 10 the Bank of England Bank of Canada 250 12 B Ba a n n k k o o f f E Fr n a g n l c a e nd 7 1 5 0 0 0 1 3 2 announced that new facilities for support of German Federal Bank 250 6 Bank of Italy 450 12 sterling had been provided by the U.S. mon- Bank of Japan 250 12 Netherlands Bank 100 3 etary authorities together with nearly all of Bank of Sweden 50 12 Swiss National Bank 150 6 the other central banks that had joined in Bank for International Settlements 300 6 the November 1964 rescue operation. This Total for all banks 2,800 new assistance came at a time when further corrective measures had just been an- As noted in the previous report covering nounced by the British Government and the period September 1964-February 1965, growing confidence in sterling was evident Federal Reserve drawings on the swap lines in the market. Rather than representing a amounted to $380 million equivalent at the defensive measure taken at a time of presend of February 1965. Subsequently, such sure on sterling, the current arrangements drawings rose to a peak of $585 million permit acceleration of a favorable trend. equivalent on April 6, but by the end of They demonstrate the solidarity of the co- July, all but $48 million had been repaid. operative arrangements linking the major However, partly as a result of intensified central banks and treasuries of the free pressures on sterling, new Federal Reserve world. Within this defensive network, any drawings on the swap network became necgovernment which is fully prepared to deessary in August, and as of September 17 the System was indebted under the swap fend its currency should be able to mobilize lines to the extent of $228 million, including sufficient financial resources to beat off any $100 million to the Bank of Italy, $55 mil- speculative attack. lion to the National Bank of Belgium, $48 A comprehensive view of drawings and million to the Swiss National Bank, and $25 repayments under reciprocal currency armillion to the Netherlands Bank. rangements between the Federal Reserve During the period under review, the Bank System and foreign monetary institutions of England was the only foreign central bank from March 1962 through the summer to draw on its swap facility with the Federal months of 1965 is provided in Tables 2 and Reserve. Bank of England drawings had 3. As indicated in Table 2, nearly half of declined from a peak of $700 million on all Federal Reserve drawings of $23 bil- November 27, 1964, to only $105 million lion during the period was repaid within 3 at the end of February 1965. Further draw- months, and almost three-quarters of such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1225 TABLE 2 DRAWINGS AND REPAYMENTS BY FEDERAL RESERVE SYSTEM UNDER RECIPROCAL CURRENCY ARRANGEMENTS, MARCH 1962-AUGUST 1965 (In millions of dollar equivalent) Repaid within— Outstanding Bank and year Drawn Aug. 31, 1965 3 3-6 6-9 9-12 months months months months Austrian National Bank: 1962 50.0 50 0 National Bank of Belgium: 1 1962 30.5 30.5 1963 25.0 25 0 1964 145.0 62.5 37 5 45.0 19652.. . 140.0 45.0 35.0 5.0 Total 340.5 163.0 72.5 50.0 55.0* Bank of Canada: 1963 20.0 20.0 Bank of England: 1962 50.0 50 0 1963 35.0 35.0 Total 85.0 85.0 Bank of France: 1962 50.0 50 0 1963 21.5 21.5 Total 71.5 21.5 50.0 German Federal Bank: 1963 286.0 143.5 142.5 1964 105 0 105 0 19652 15.0 15.0 Total 406.0 263.5 142.5 Bank of Italy: 1962 50.0 50.0 1965 2 350.0 82.0 168.0 Total 400.0 132.0 168 0 100.0* Netherlands Bank: 1962 60.0 50.0 10.0 1963 150.0 60.0 90.0 1964 100 0 55 0 45 0 19652 25.0 Total .... 335.0 110.0 155.0 45.0 25.0* Swiss National Bank: 1962 50.0 50 0 1963 . . . 80 0 5 0 20 0 55 0 1964 25.0 25 0 19652 150.0 90.0 12.0 Total 305.0 120.0 32.0 55.0 50.0 48.0** Bank for International Settlements: 1962 80.0 40.0 5.0 19.5 15.5 1963 150.0 5.0 65.0 80.0 1964 100.0 35.0 65.0 Total . .. 330.0 45.0 105.0 164.5 15.5 Total for all banks: 1962 420.5 270.5 65.0 19.5 65.5 1963 767 5 315 0 317 5 135 0 1964 475.0 192.5 127.5 155.0 19652 680.0 232.0 215.0 5.0 Total 2,343.0 1,010.0 725.0 314.5 65.5 228.0 * Outstanding less than 3 months. lion fully drawn portion of the swap facility and to utilization of the ** Outstanding more than 6 but less than 9 months. $50 million standby portion available since December 1964. 1 Data relate to disbursements and repayments under the $50 mil- 2 Figures for 1965 are for first 8 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1226 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 TABLE 3 Bank, and the Netherlands Bank. In addition, forward operations by the Italian au- DRAWINGS AND REPAYMENTS BY FOREIGN CENTRAL BANKS UNDER RECIPROCAL CURRENCY ARRANGEMENTS thorities had the effect of reducing Italian MARCH 1962-JUNE 1965 reserve gains and of simultaneously prevent- (In millions of dollars) ing an excessive build-up of domestic liquid- Repaid within— ity in Italy by channeling dollar inflows back Bank and year Drawn Outstanding into the Euro-dollar market. Otherwise, a 3 3-6 June 30,1965 months months severe squeeze on Euro-dollar credit availabilities might have been produced by the National Bank of Belgium: U.S. Voluntary Foreign Credit Restraint 1963 45.0 40.0 5.0 Program. In connection with this operation, Bank of Canada: 1962 250.0 250 0 the U.S. Treasury once again undertook to Bank of England: 1963 25.0 25.0 share with the Italian authorities sizable 1964 1,370.0 1,370.0 19651 1,215.0 855.0 commitments in forward lire, which will Total 2,610.0 2,250.0 360.0* subsequently be reported in some detail. Bank of Italy: 1963 50.0 50.0 The foreign currency bonds issued by the 1964 100.0 100.0 U.S. Treasury rose from a total of $1,137 Total 150.0 150.0 million equivalent as of early March to a Bank of Japan: 1964 80.0 30.0 50.0 new peak of $1,259 million as of Septem- Total for all banks: ber 17. Additional issues of $125 million 1962 250 0 250 0 1963 120.0 65.0 55.0 equivalent were made to the Bank of Italy 1964 1,550.0 1,400.0 150.0 19651 1,215.0 855.0 and $23 million to the Bank for Interna- Total 3,135.0 2,320.0 455.0 360.0 tional Settlements (BIS) for purposes of ab- * Outstanding for less than 3 months, sorbing dollars on the books of the Italian i Figures for 1965 are for first 6 months. and Swiss central banks. On the other hand, drawings were liquidated within 6 months. as the German balance of payments moved Similarly, nearly three-quarters of foreign into deficit, it proved possible for the U.S. drawings of $3.1 billion under the arrange- Treasury to accumulate marks, and on July ments were paid off within 3 months, thus 12, $25 million equivalent was employed to confirming that in practice the swap net- retire a maturing mark-denominated bond work has been used—as intended—as a for that amount previously issued to the Germeans of providing temporary financing. man Federal Bank. In addition to central bank swap trans- Extensive use thus continued to be made actions, the monetary authorities in a num- by the United States and other major indusber of countries continued to refine and trial countries of the spectrum of internadevelop further the use of forward exchange tional credit facilities available for financing operations as an efficient instrument for payments imbalances. One of the more dealing with pressures in their markets. The significant developments during the period Bank of England continued to exert a strong under review was the U.S. drawing from stabilizing effect on the dollar-sterling for- the IMF. This drawing which provided ward market, while temporary cushioning medium-term financing, permitted repayoperations were also undertaken by the ment of earlier drawings under the swap Swiss National Bank, the German Federal network, as well as the absorption of dol- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1227 lars temporarily accumulated by foreign mid-May of disappointing trade figures for central banks, thus economizing on the use April, the sterling rate once more began to of gold in international settlements. drift downward. The British drawing on May 25 of $1.4 billion equivalent from the STERLING IMF and full repayment with the proceeds By mid-January 1965, sterling began to of $1,097 million of short-term central show signs of recovery from the speculative bank credits did little to bolster market onslaught of late 1964, and this improvesentiment. On the contrary, publication of ment continued through February. In figures showing a continuing deterioration March, however, the market once again in the British trade position during the secbecame beset by doubts as to whether the ond quarter further undermined market British Government's pledge to defend the confidence, and substantial support had to sterling parity would be matched by truly be given to both the spot and forward mareffective measures to curb excessive domestic kets. By late July, the market had become demand and to restrain the inflationary convinced that a new crisis was shaping up trend of wage settlements. New complicafor the autumn months. Against this omitions arose as the U.S. Voluntary Foreign nous background, the British Government Credit Restraint Program led to some withtook further corrective action on July 27, drawal of funds from London. Large forannouncing cutbacks and deferments in ward commitments previously entered into public sector spending programs and a furby the Bank of England also began to mather tightening of instalment credit. ture, but firm defensive operations in both Unfortunately, an initially favorable the spot and forward markets facilitated the market reaction to the July 27 measures was rolling over of most of these commitments. quickly swamped by the report on August For those interested in the technical com- 3 of a reserve loss for July that was much plexities of official intervention in the forlarger than the market had anticipated. As ward markets, a useful summary may be a result, sterling was again heavily offered found in the Bank of England's Quarterly in both the spot and forward markets, re- Bulletin for June 1965, pages 107-08. quiring substantial official support. By mid- With the announcement of new restraint August, however, the market began to take measures in Chancellor Callaghan's budget on a more balanced look, no doubt reflecting message on April 6, sterling moved strongly in part the improved July trade figures but upward and this trend was reinforced as the also suggesting that sterling had become Bank of England on April 29 introduced grossly oversold. From time to time, the special deposit requirements for the London market gave clear evidence of a squeeze for clearing and Scottish banks and on May 5 sterling balances. requested the London clearing banks to limit the increase in their advances to the private Against these mixed developments during sector to no more than 5 per cent during August, the British Government on Septhe year ending March 1966. The other tember 2 announced its intention to seek banks operating in London and a wide statutory authority to require advance notifirange of other financial institutions were cation and, if deemed appropriate, temalso asked to exercise comparable restraint. porary deferment of wage and price in- However, following the announcement in creases. This basic policy action went a long Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1228 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 way toward relieving the market's appre- of gold from the U.S. Treasury totaling $50 hension of a progressive undermining of the million during the first 4 months of the year. sterling parity by wage and price inflation. The operations just mentioned, though Meanwhile, negotiations were progressing carried out for the most part during the among the central banks with the objective early months of 1965, were made necessary of providing additional facilities in order to by the overhang of dollars accumulated by further the recovery of confidence. On Fri- the Swiss National Bank during the latter day, September 10, the Bank of England part of 1964. In point of fact, the Swiss announced that these negotiations had been franc began to ease shortly after the yearcompleted, stating that: end as Swiss banks, finding themselves There is increasing evidence that the measures taken liquid, started to place funds abroad, and by Her Majesty's Government to restore the United Kingdom balance of payments are having their effect. the U.S. Treasury was able in February to Sentiment towards sterling in the exchange markets is purchase $10 million equivalent of Swiss improving. To further this trend the Bank of England with the full authority of Her Majesty's Government francs in order to reduce by that amount a has entered into new arrangements with the central $25 million equivalent sterling—Swiss franc banks of Austria, Belgium, Canada, Germany, Holland, Italy, Japan, Sweden, Switzerland, the United swap with the BIS. By March, the rate had States, and the Bank for International Settlements who co-operated in the support of sterling last November. moved below $0.2300, and the Swiss These new arrangements take various forms and National Bank sold dollars to the market will enable appropriate action to be taken in the exchange markets with the full co-operation of the cen- for the first time since 1962. Swiss commertral banks concerned. cial demand for dollars accentuated the ef- Immediately following this announcement, fects of the continued ease in the money concerted market action was initiated. As market, and this softness in the franc rate the spot rate for sterling moved up, short persisted through the early summer. Morecovering developed, causing a further jump over, by the end of April, the Bank of Italy in the rate. The recent measures thus ap- had fully repaid its $100 million equivalent peared to be yielding good results. Swiss franc-lira swap with the Swiss National Bank initiated in June 1964. The SWISS FRANC Swiss National Bank thus found itself in In late 1964, the Swiss National Bank had need of dollars to cover its lira requirements taken in a sizable amount of dollars as funds for remittances by Italian workers in Switzmoved into Switzerland during the sterling erland. Under these circumstances, the U.S. crisis. These dollars were partially absorbed authorities were able to acquire a total of by a Federal Reserve drawing of $100 mil- $175 million equivalent in Swiss francs durlion equivalent in Swiss francs in December ing the period April-July, to some extent under the System's swap line with the BIS. through market purchases but mainly Further Swiss franc drawings, amounting to through direct transactions with the Swiss $60 million equivalent on January 19 and National Bank. These acquisitions were $90 million equivalent on March 1, were used to reduce a variety of Swiss franc obmade for the same purpose—this time under ligations of the System and the Treasury. the swap line with the Swiss National Bank. Thus, by March 1, the System had utilized At the end of March a start was made $250 million of its $300 million credit facili- on repayment of the System's Swiss franc ties in Swiss francs. In addition, further dol- drawings when $20 million equivalent of lars were absorbed through Swiss purchases francs was acquired from the Bank of Eng- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1229 land in connection with a credit to the Swiss authorities acted in both the money latter by the Swiss National Bank. These and foreign exchange markets to mitigate francs, along with $82 million equivalent the seasonal liquidity squeeze. Swiss Conpurchased during subsequent months, were federation bonds falling due at the end of used to reduce the System's liability under June were only partially refunded, and the its swap line with the Swiss National Bank Swiss National Bank undertook substantial from $150 million to $48 million equiva- swap operations with Swiss commercial lent. In addition, the System fully repaid its banks, buying U.S. dollars spot against Swiss $100 million drawing on the BIS, partly francs and selling them back to the banks with francs acquired through spot purchases for delivery after midyear. and partly with the proceeds of a $40 mil- Consequently, the Swiss franc remained lion equivalent swap of German marks for below its effective ceiling during June, and Swiss francs with the BIS. (This latter trans- U.S. authorities continued to acquire Swiss action illustrated once again the flexibility francs from the Swiss National Bank. Opof third-currency swaps, where available portunities for further acquisitions diminbalances in one foreign currency can be ished considerably after midyear, however, used to acquire other needed currencies.) as the unwinding of the midyear swaps Treasury commitments resulting from brought about a tightening in the Swiss forward sales of Swiss francs in the Swiss money market and the Swiss franc advanced market, which had been reduced from $121 to its effective ceiling. Under the circummillion to $51.5 million equivalent during stances, the Swiss National Bank decided 1964, were paid down further by $29 to repurchase part of the foreign exchange million equivalent to $22.5 million equiv- that it had sold on a covered basis to Swiss alent by late June. In addition, System for- commercial banks earlier in the year when ward sales of Swiss francs were completely the domestic market had been excessively liquidated. These sales, which had been liquid. The liquidity thus injected into the initiated in December to calm the market market by the reversal of these earlier swaps and to encourage Swiss banks to invest helped to reduce dollar repatriations by abroad dollars they might otherwise have these banks. sold to the Swiss National Bank, reached a Renewed nervousness about sterling in peak of $32.5 million equivalent by Jan- the exchanges held the franc at its ceiling uary 8. (The bulk of these contracts were until the latter part of August. Under the paid off by mid-February through spot circumstances, the Swiss National Bank had purchases of Swiss francs.) Through all to buy additional dollars in the market, and these operations, official U.S. commitments the U.S. authorities in turn absorbed part in Swiss francs were thus reduced by a total of this inflow by purchasing dollars from the of $233 million during January-July. central bank against Swiss francs. The francs In June, the Swiss franc began to firm, needed for this operation were obtained by rising to a range of $0.2307-0.2310, in con- sale to the BIS on July 30 of a $23 million junction with the approach of midyear equivalent 15-month Swiss-franc-denomipositioning by Swiss commercial banks. The nated U.S. Treasury bond. (This sale raised usual pressures associated with such opera- the Treasury's Swiss franc bond indebtedness tions were absent this year, however, as the to $350 million equivalent.) As the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1230 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 closed, renewed Swiss commercial demand ments had to wait until the early spring and for dollars and easier Swiss money market summer months, when the Netherlands balconditions brought about a moderate decline ance of payments was seasonally less strong of the franc below its ceiling. and guilder purchases could be made in size. A Dutch payments deficit did begin to NETHERLANDS GUILDER emerge in March, and by late July the U.S. Official U.S. commitments in Netherlands authorities had acquired a sufficient amount guilders reached a peak of $348 million of guilders, mainly through purchases from equivalent on January 8 as a result of opthe Netherlands Bank as it sold dollars in erations undertaken during August 1964its market, to reduce outstanding commit- January 1965 when the basic Dutch payments by a total of $225 million equivalent. ments position was strong and when, in These acquisitions were made despite the addition, funds were moving into the Nethpersistence of generally tight money market erlands as a result of pressures on sterling. conditions in the Netherlands and occasional Thus, the $100 million Federal Reserve pressures arising from shifts of funds out swap facility with the Netherlands Bank of sterling. Thus, during March and April, had been fully utilized, a temporary $35 milthe System purchased enough guilders from lion swap between the U.S. Treasury and the the Netherlands Bank to repay a further Netherlands Bank had been arranged, an- $25 million equivalent of its swap drawings. other $50 million of guilders had been The remaining $45 million equivalent of acquired through sterling-guilder swaps with swap drawings was paid off in late May with the BIS for sale to the Netherlands Bank to guilders acquired in conjunction with the absorb dollars, and $163 million equivalent United Kingdom drawing from the IMF. of guilders had been sold forward in the In addition to reducing Federal Reserve Netherlands market. swap drawings, the U.S. authorities paid off Early in January the $35 million U.S. at maturity a total of $68 million equiv- Treasury-Netherlands Bank temporary swap alent of forward contracts by late April. was liquidated as Federal Reserve and As the guilder continued on offer another Treasury sales of forward guilders, initiated $62 million equivalent was acquired by the in mid-December, induced covered outflows Federal Reserve and the Treasury in June of funds from the Netherlands by the Dutch and July to repay forward contracts at commercial banks, thus facilitating the acmaturity, thereby reducing the total outquisition of spot guilders by the U.S. authoristanding to $57 million equivalent. Some of ties. Commitments on these forward conthese repayments, occurring as they did prior tracts through the market reached a peak of to midyear, helped relieve tight money $197 million equivalent on January 19, but market conditions in the Netherlands. In by early February $ 10 million of short-dated addition, in June the System and the Treascontracts had been paid off at maturity. ury liquidated a total of $25 million equiv- Moreover, in the early part of February, alent of sterling-guilder swaps. Finally, the Federal Reserve started to repay its drawings under the swap arrangement, re- the Netherlands Bank also undertook exducing the amount outstanding to $70 mil- change transactions in July to alleviate the lion equivalent by the end of the month. money market pressures generated by a sea- However, major reductions in U.S. commit- sonal increase in currency in circulation, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1231 buying dollars spot from the Dutch commer- time German import demand had been outcial banks and selling them back forward, pacing export growth, with the result that mainly for 1-month maturities. the previously very sizable trade surplus that Toward midsummer, renewed nervous- had helped to keep the mark close to its ceilness regarding sterling contributed to flows ing for nearly 2 years began to decline. Inof funds into the Netherlands. These flows deed, by June the trade account had swung coincided more or less with the abatement into deficit for the first time since 1958, and of seasonal pressure on the Netherlands' pay- the mark was quoted below its par of ments position, and the Netherlands Bank $0.2500 for the first time since February consequently began to buy dollars to prevent 1963. Apart from the sharp shift in the too rapid a rise in the guilder rate. Its dollar German trade account and the related acquisitions soon raised its total holdings change in the pattern of leads and lags, there above usual levels, and some absorption of were some indications that the U.S. Volunthe excess dollar holdings accordingly was tary Foreign Credit Restraint Program had called for. Consequently, the U.S. Treasury had some influence on capital movements, purchased $25 million at the end of July reinforcing the downward pressure on the with guilders drawn from the IMF under a mark rate. Under these conditions, first the $300 million equivalent multicurrency draw- Treasury and then the Federal Reserve ing (see section on U.S. drawings on the began in June to purchase marks system- IMF), and in August the Federal Reserve atically, in the market as well as from the reactivated its swap arrangement with the German Federal Bank, with a view toward Netherlands Bank to the extent of $25 mil- employing the marks to liquidate other lion equivalent. By the end of August, buy- foreign currency commitments. Thus, the ing pressure on the guilder diminished as Federal Reserve purchased $39 million of the exchange markets calmed and the Dutch marks in June and early July and on July money market eased. 8 swapped $40 million equivalent of marks for Swiss francs with the BIS in order to GERMAN MARK repay the remaining Federal Reserve Swiss In late December 1964, the Federal Re- franc commitment under the swap drawings serve had drawn $50 million equivalent from that institution. Additional marks were under its $250 million swap facility with the purchased by the Federal Reserve during German Federal Bank to absorb dollars July and August, part of which were used taken in by that bank at the time of the ster- on two occasions to acquire a total of $12.5 ling crisis. This drawing was reversed in late million equivalent of Dutch guilders through January, as short-term outflows from Ger- a third-currency swap with the BIS; an many combined with German military pur- equivalent amount of sterling which had chases in the United States enabled the Fed- been previously swapped with the BIS for eral Reserve to acquire $50 million of marks Dutch guilders was simultaneously refrom the German Federal Bank. Another acquired. small drawing of $15 million equivalent For its part, the Treasury also employed in February was likewise quickly reversed. mark acquisitions to modify its third-cur- Beginning in May, the mark began to dis- rency swaps with the BIS. In late July, the play an increasingly softer tone. For some Treasury swapped with that institution $15 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1232 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 million equivalent of marks for Swiss francs in gold from the U.S. Treasury during the and $5 million equivalent for Dutch guild- first half of the year. ers and used the francs and guilders to liqui- In the latter part of March, demand for date equivalent outstanding sterling-Swiss dollars in Belgium enabled the System to franc and sterling-Dutch guilder swaps with acquire $10 million of Belgian francs and the BIS. At the end of August, the Treasury reduce its drawings by that amount. Howswapped an additional $7.5 million equiv- ever, with the Belgian franc back at its ceilalent of marks for guilders with the BIS, ing in April, $10 million was again drawn similarly liquidating an equivalent sterling- to absorb dollars from the National Bank of guilder swap. Earlier, on July 12, the Treas- Belgium. The first major reduction in the ury had redeemed at maturity a $25 million Federal Reserve's Belgian franc commitequivalent mark-denominated bond. This ments occurred in late May when the Fedrepresented the first reduction in the Treas- eral Reserve purchased $40 million equivaury's mark-denominated bonds, which were lent of Belgian francs from the National first issued to the German Federal Bank in Bank of Belgium, following a United King- January 1963 and which reached a total last dom conversion into dollars of Belgian year of $679 million equivalent. francs acquired under its $1.4 billion multicurrency drawing from the IMF. BELGIAN FRANC During July and August, there was a succession of drawings and repayments, reflect- The diminished rate of growth of Belgian ing in part temporary swings in Belgium's economic activity first evident in 1964 carbalance of payments position and in part ried over into 1965 and contributed to a special transactions. In early July, the Sysslowing down in the rise of Belgian import tem once again increased its drawings in demand. Belgium continued to run a surplus Belgian francs—from $60 million to $80 on its balance of payments during the first million equivalent—before a temporary de- 8 months of 1965, and with the Belgian mand for dollars in Belgium enabled the franc generally at its ceiling Belgian official Federal Reserve to buy the equivalent of reserves increased by some $47 million. In $40 million of Belgian francs from the Naaddition, Belgium's position in the IMF imtional Bank of Belgium. In late July, the proved by $108 million during the first 7 Federal Reserve liquidated its remaining months of the year. uncovered Belgian franc position by pur- At the end of 1964, System drawings unchasing from the U.S. Treasury $40 million der the $100 million swap arrangement with equivalent of Belgian francs which the the National Bank of Belgium amounted to Treasury had acquired under its $300 mil- $45 million equivalent. Continued dollar lion equivalent multicurrency drawing from inflows during January and February were the IMF. As indicated elsewhere, this operpartly absorbed through additional drawings ation represented the first funding of a Sysof $40 million equivalent, and in early tem swap drawing through use by the United March the Federal Reserve utilized the re- States of an IMF drawing. No sooner had maining $15 million of its Belgian franc the System reconstituted its franc position facility. In addition, the National Bank of than dollars once again began to move into Belgium purchased a total of $62 million the reserves of the National Bank of Belgium Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1233 on a substantial scale, mainly as a conse- the size of the System's swap facility with quence of the renewed pressures on sterling, the Bank of Italy. Thus, on April 1, it was and the Federal Reserve during August announced that the arrangement had been utilized Belgian francs available under its expanded to $450 million, and a further swap facility with that bank to absorb a total $100 million was immediately drawn. (Of of $55 million. the $200 million increase in the swap line, $ 100 million replaced a standby swap facil- ITALIAN LIRA ity for a like amount made available to Italy During 1965, the Italian balance of pay- by the U.S. Treasury in March 1964 as part ments continued to show the effects of the of a $ 1 billion credit package.) In May, the stabilization measures introduced during the System increased its swap drawings by antwo preceding years to deal with the severe other $50 million equivalent in order to payments deficit that had emerged in 1963. absorb additional dollars from the Bank of In fact, during the first 7 months of this year Italy. Italy had a balance of payments surplus of As reported in previous articles, the U.S. over three-fourths of a billion dollars, at- Treasury in January 1962 had undertaken tributable to record high earnings on in- to share with the Bank of Italy contracts to visibles and a much reduced trade deficit. purchase forward dollars which that insti- With the Italian financial markets relatively tution had entered into with the Italian easy as a result of lagging internal demand commercial banks in order to encourage a and a consciously stimulative monetary pol- re-export of dollars during a period of heavy icy, Italian banks purchased sizable amounts balance of payments surpluses. The last of of foreign exchange from the Italian authori- these contracts had been reacquired by the ties on a swap basis and used the funds to Italian authorities in March 1964, thus fully reduce their indebtedness in the Euro-dollar liquidating the Treasury's forward lira commarket as well as to finance external trade. mitments. In view of the reappearance o! Nevertheless, Italian reserves increased, par- substantial Italian payments surpluses, the ticularly during the summer months when U.S. Treasury in 1965 began once again seasonal factors are favorable to Italy. Un- to share contracts to purchase forward dolder the circumstances, the U.S. authorities lars with the Bank of Italy. In addition, the employed a variety of techniques to absorb Treasury sold to the Bank of Italy $80 milofficial Italian holdings of dollars. lion of gold in April, thus absorbing a further part of the dollar inflow and reconsti- The Federal Reserve reactivated its $250 tuting part of the gold which Italy had sold million swap arrangement with the Bank of to the United States the preceding year. Italy on January 22 by drawing $50 million equivalent in lire and selling the proceeds An opportunity to begin reducing the to that bank for dollars. An additional draw- Federal Reserve's swap drawings became ing of $50 million equivalent was made in available in late May when the United King- March. With $100 million of the $250 mil- dom drew $82 million equivalent of lire lion swap line already utilized and with the from the IMF and sold them to the Federal prospect of further increases of Italian hold- Reserve, thus permitting the System to reings over the seasonally strong summer duce its swap drawings by that amount on months, it was thought desirable to increase May 25. A similar operation in connection Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1234 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 with a subsequent drawing of lire from the short-term funds was apparently met by re- Fund by another member enabled the Sys- duced placement of funds by Canadian tem to make an additional repayment of $5 banks in New York or other foreign markets million on July 2. However, as sizable and, therefore, had little impact on Cana- Italian balance of payments surpluses con- dian reserves. tinued, it seemed appropriate to fund the As a result of a deterioration in the trade drawings still outstanding. Accordingly, in and capital accounts, Canadian reserves dip- July the United States drew $180 million ped $120 million during the first quarter of equivalent of lire as part of its $300 million 1965. However, during the second quarter, multicurrency drawing from the IMF (see if allowance is made for Canada's particisection on U.S. drawings on the IMF). Of pation in the United Kingdom's IMF drawthis amount, $163 million equivalent was ing, the net effect of which was to reduce employed to liquidate outstanding Federal Canadian reserves by $72.5 million in May, Reserve swap drawings and the balance to Canadian reserves remained steady on absorb uncovered dollars from the Bank of balance helped by Canadian bond sales in Italy. Another $125 million was purchased the United States during April and May. from the Bank of Italy with proceeds from (The British IMF drawing, together with an 18-month lira-denominated bond which net use of Canadian dollars by other IMF the Treasury issued to the Bank of Italy. In members, brought about an improvement in August, inflows partly associated with con- Canada's Fund position of $129 million tinuing pressures on sterling caused the Fed- during the first 6 months of the year, thus eral Reserve to reactivate its swap facility compensating for a good part of the reserve with the Bank of Italy by drawing $100 mil- drain during this period.) lion of lire in order to absorb an equivalent Around midyear, demand for Canadian amount of dollars. dollars once again subsided, and the spot rate gradually declined to its low for the CANADIAN DOLLAR period by mid-July, before turning around Canada's strong balance of payments per- once again. The renewed firmness in the formance in late 1964, sustained in part by Canadian dollar appeared linked primarily long-term borrowing in the United States to the flotation of further bond issues in the and repatriation of funds from the United United States and the successful negotiations Kingdom, gave way to a deficit early in for substantial Russian purchases of Cana- 1965, and by March the spot Canadian dol- dian wheat and flour announced in midlar had fallen below par. This turnabout was August. Grain houses, anticipating future in part related to seasonal factors and to a U.S. dollar receipts from Russia, purchased sharp deterioration in Canada's trade ac- Canadian dollars forward. In the spot marcount. The U.S. Voluntary Foreign Credit ket, the rate advanced to well above par as Restraint Program left untouched essential banks purchased Canadian dollars spot to long-term capital flows to Canada but did cover forward commitments to the grain have the initial effect of inducing U.S. cor- houses, and commercial interests moved into porations to repatriate an important amount the market in anticipation of a further of previous short-term investments in Can- strengthening in the rate. ada. The great bulk of their withdrawal of During the period under review, no official Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 1235 U.S. operations in Canadian dollars were sequently constituted the largest single eleundertaken. ment in U.S. gold sales to foreign countries during the first half of the year, accounting OTHER CURRENCIES for a little over one-half of total sales. In Japanese yen. The series of measures August, the U.S. Treasury used the francs aimed at restraining domestic demand that obtained from its $300 million equivalent were initiated by the Japanese authorities as multicurrency drawing from the IMF to early as October 1963 led to a noticeable purchase $40 million from the Bank of improvement in Japan's trade position be- France, thus reducing French dollar reginning in the latter part of 1964. While im- serves by that amount. port demand this year has remained fairly Austrian schilling. As reported in the steady at a high level, exports have set new March 1965 BULLETIN, the Treasury on records. This improved trade performance February 23 and March 3 issued to the Aushas largely offset the effects on Japan's re- trian National Bank two $25 million equivaserves of diminished inflows of foreign capi- lent 18-month bonds denominated in Austal and has permitted the reversal of previ- trian schillings and used the proceeds to ous restrictive measures. absorb some of that bank's dollar holdings. Following these transactions, total Treasury On April 1 the Federal Reserve and the bond indebtedness denominated in Austrian Bank of Japan agreed to increase their recipschillings amounted to $100 million equivarocal swap arrangement from $150 million lent. to $250 million. In view of the above-mentioned balance of payments developments, Swedish krona. On July 30, the U.S. Treasury used kronor obtained from its no recourse to the swap facility has been $300 million equivalent multicurrency drawnecessary during the period under review. ing from the IMF to purchase $15 million French franc. France continued to register from the Bank of Sweden. a substantial balance of payments surplus during the first 8 months of 1965 under the U.S. DRAWINGS ON THE influence of a strong export performance and INTERNATIONAL MONETARY FUND lagging import demand. This development Over the course of several years prior to in the trade account reflected, to a consider- 1964, foreign countries had been repaying able extent, the reduced rate of domestic more dollars to the IMF than the IMF had economic expansion associated with the of- been paying out in new drawings. As a reficial stabilization program. Official French sult, the Fund's dollar holdings rose to a reserves rose $241 million during this period point where they equaled the amount that the notwithstanding a debt prepayment of $179 United States had paid into the IMF as part million to the United States in July. (In ad- of its quota. At this point the Fund, under dition, the French position in the IMF im- its rules, could no longer accept dollars in proved by $247 million during the same repurchase, and countries making repurperiod.) Most of the dollar gains were used chases could do so only with other eligible to purchase gold from the U.S. Treasury. convertible currencies or with gold. In order Moreover, substantial amounts of dollars to be able to sell eligible currencies to acquired prior to 1965 also were converted countries making repurchases, the U.S. into gold. Total French gold purchases con- Treasury has itself drawn such currencies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1236 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 from the IMF on a number of occasions be- term credits, and otherwise to reduce official ginning in February 1964. By the end of holdings of dollars abroad by purchasing 1964, the Treasury had made five drawings dollars with the currencies drawn. In this totaling $525 million equivalent in seven drawing on July 30, the first occasion on continental European currencies. A sixth which the United States had made an ordidrawing of this type in the amount of $75 nary, nontechnical drawing on the IMF, the million equivalent ($25 million each in Ca- Treasury acquired $300 million equivalent nadian dollars, German marks, and Italian of five European currencies: Italian lire, lire) was made on March 22. As in the case $180 million; French francs, $40 million; of previous drawings, the bulk of the cur- Belgian francs, $40 million; Netherlands rencies drawn was sold to countries making guilders, $25 million; and Swedish kronor, repurchases during the ensuing months. No $15 million. As detailed elsewhere in this further drawings for the technical purposes report, the Belgian francs and the bulk of the described above were made by the United Italian lire were used to liquidate in full the States through the month of August. Federal Reserve swap drawings in the re- As indicated elsewhere, dollars continued spective currencies. The French francs, to accumulate in the official reserves of cer- Netherlands guilders, Swedish kronor, and tain European countries during the first half remaining lire were used to absorb dollars of the year. Some of these dollars were from the respective central banks. temporarily absorbed by use of the Federal The United States has thus drawn a total Reserve short-term swap arrangements. of $900 million equivalent in foreign cur- Since in certain cases there subsequently ap- rencies from the IMF during the last 2 years. peared to be little near-term prospect for any During the same period, other Fund operareversal in these dollar inflows, the U.S. tions in dollars resulted in net disbursements authorities decided to draw on the Fund to of $508 million; consequently the U.S. reacquire foreign exchange on a medium-term purchase obligation to the IMF as of the basis for use in paying off some of the short- end of August was only $392 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by William McChesney Martin, just as essential to our domestic prosperity as Jr., Chairman, Board of Governors of the it is to the dollar's position in international Federal Reserve System, before the Subcom- commerce. It would be utterly unrealistic to mittee on National Security and Interna- think that we could have lasting prosperity tional Operations of the Senate Committee in this country if we had a weak dollar, and on Government Operations, August 30, consequently a deteriorating confidence 1965. around the world in the United States and its economic system. A strong, healthy American economy is Let me say just a few words about what vital to our national security—both because the Federal Reserve System can do and what it provides the means with which we defend it has been doing to help bring about the ourselves and because our influence in inter- kind of financial climate that is conducive national affairs is inextricably related to our "to maximum production, employment, and own economic performance. purchasing power"—the objectives of Gov- The Federal Reserve System has a host of ernment economic policy as set forth in the duties and responsibilities related to the Employment Act of 1946. supervision of banks, the performance of fis- Basically, our influence on economic cal agency services for the Treasury, and the developments stems from our authority to efficient functioning of the payments mech- specify the amount of reserves that banks anism in the United States, but far and away are required to hold and our control over its major responsibility is to encourage, as the supply of these reserves. Because of best it can with the tools at its disposal, fi- short-term fluctuations in factors beyond our nancial conditions that will, in turn, contrib- control, we cannot determine precisely the ute to vigorous, sustained growth in output amount of reserves that are available to and emplyment. In other words, our over- banks each day, or even each week; but we riding objective is to strengthen the U.S. can offset these fluctuations in the longer economy. run, and it is fair to say that from month to I have spoken thus far of the strength of month and year to year the supply of rethe American economy without making any serves is determined by the policies of the special reference to the strength of the dol- Federal Open Market Committee. lar as an international currency or to our We could undertake to regulate the balance of payments. As some of you prob- growth of reserves available to banks in ably know, to me these are part of the same accordance with some set formula. As a package. We cannot have a strong economy practical matter, however, the Committee without a strong dollar. In the long run, exercises its regulative influence by estabequilibrium in our international accounts is lishing and maintaining conditions as to the 1237 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1238 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 cost and availability of reserves befitting cur- but it can also be summarized accurately, I rent economic needs. With this approach, think, in a very few words. The Committee the growth of bank reserves reflects in part issues directives to the Manager of the Sysmarket factors, which depend in turn on the tem's Open Market Account as to the condistrength of credit demands within the econ- tions of reserve availability which, in its best omy. judgment, will be most conducive to the Regulation of the supply of reserves sound, healthy growth of the economy. Most available to commercial banks has an influ- often, over the years, there has been a subence on the cost and availability of credit stantial unanimity in the Committee as to and on the rate of growth in money and the directive most likely to contribute to this credit, which affects in turn the aggregate end. Occasionally there have been sharp difdemand for goods and services. But these ferences of view, but these have usually variables are also influenced by many other come at times when the future course of ecofactors, and the impact of moderate changes nomic events was especially hard to divine, in monetary policy is often hard to identify, and our thinking has tended to come tomuch less quantify. Even fairly drastic gether again as the situation clarified. changes in our policies may at times be over- Thus far I have described our functions shadowed by the sweep of other develop- and their relation to what I understand to be ments. your interests in very general terms. I sur- Let me digress here to say that our staff mise from your initial memorandum and and many other economists working inde- your previous hearings that it would be pendently are laboring continuously—aided appropriate for me to tell you about our considerably by the advances in recent years activities in the international field in a little in computer technology—to isolate and more detail. measure more exactly the impact of changes Let me say, first of all, that the Federal in policy at various stages of this process so Reserve has neither the authority nor the that we may think and speak with more pre- inclination to make foreign policy of any cision about the ultimate effects of policy kind, including foreign financial policy. As changes. In the meantime, the precise mag- a member of the National Advisory Council nitude and timing of these effects are not on International Monetary and Financial subject to exact scientific determination and Problems, I am called upon to advise the so remain a matter of judgment, and one on President on those problems. But the United which judgments may differ. States has, and can have, only one foreign I am stressing these limits of our knowl- policy. Any action the Federal Reserve may edge in order to explain why central bank- take in matters connected with foreign relaing remains an art rather than a science. And tions, any negotiation or discussion with as an art, it is the art of moderation, or the foreign central bankers, any participation in middle way. At all times, we must be aware international activities, institutions, or meetof the risk that the economy might be under- ings—in short, anything we do or say in this mined by either deflation or inflation. area is carefully coordinated with those What the Federal Open Market Com- Government agencies to which the President mittee does in performing its policy-making has delegated authority, and on occasion functions, can be described in infinite detail, directly with the White House. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1239 STATEMENTS TO CONGRESS But within the framework of U.S. foreign the Fund amounts of their currencies up to financial policy, and with the full approval a total of $6 billion, so as to reinforce the and indeed encouragement of the adminis- Fund's ability to grant drawings to particitration, the Federal Reserve has greatly pants in the Arrangements in order to foreexpanded its international activities in recent stall or cope with an impairment of the interyears. These activities include three differ- national monetary system."1 By Act of June ent, though interconnected, categories: first, 19, 1962, the Congress authorized the participation in international meetings, dis- United States to participate in an amount up cussions, and negotiations in which repre- to $2 billion in these Arrangements. sentatives of the Federal Reserve form part The Ministers and Central Bank Goverof a U.S. delegation; second, a wide range nors of these ten countries, together with of informational contacts, formal and infor- the Managing Director of the IMF, decided mal, with foreign central banks; and third, in October 1963 to review the functioning arrangements with foreign central banks on of the international monetary system and the foreign exchange operations. probable future needs for international Federal Reserve representatives, acting as liquidity. They instructed their deputies to members of a U.S. delegation, have played examine these questions and to report on the important roles in meetings and negotiations progress of their studies. The Secretary of connected with the International Monetary the Treasury, as the U.S. member of the Fund, with the so-called Group of Ten, and Ministerial group, appointed the Under with the Organization for Economic Coop- Secretary of the Treasury for Monetary Aferation and Development. fairs, and a member of the Board of Govern- Federal Reserve connection with the work ors, Mr. Daane, as his deputies. These U.S. of the IMF started even before that organi- deputies, and their counterparts from the zation was established: members of the central banks and finance ministries of the Board of Governors and of its staff partici- other countries of the Group of Ten, have pated in the drafting of the proposals that been responsible for constructive work on led to the Bretton Woods Conference of the international payments problem, espe- 1944, and in the work of the Conference cially for important studies on problems of and the drafting of the IMF Agreement it- reserve assets and other matters of vital self. More recently, they have regularly importance for any appraisal and reform of formed part of the U.S. delegation at the the international monetary system. Staff annual meeting of the IMF, and of the group members of the Federal Reserve have parof officials that consults every year with the ticipated, and still are participating, in the IMF on economic and monetary develop- studies undertaken by the working parties of ments and policies in the United States. the deputies. Federal Reserve officials also play an im- Further, Federal Reserve officials form portant role as members of the various U.S. part of the U.S. delegations to the meetings delegations in the so-called Group of Ten, of the Economic Policy Committee of the which includes the ten leading member OECD—the successor to the organization countries of the International Monetary Fund. This is the group of member coun- 1 Annex to the Ministerial Statement of the Group tries that agreed in December 1961 "to lend of Ten of August 10, 1964, section 16 (f). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1240 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 set up to help implement the Marshall Plan do not result in policy decisions but they —and of its working parties. From the point permit a frank exchange of information and of view of the Federal Reserve, the most opinions among central banks which are useimportant of these groups is Working Party ful in many ways. One of the members of the 3, which periodically discusses the balance Board of Governors regularly attends the of payments problems and policies of the annual meeting of the BIS members. At the participating countries. monthly meetings the Federal Reserve is These discussions in WP-3 are valuable usually represented by officials of the Fedas means of conveying information and eral Reserve Bank of New York—customfostering mutual understanding. But they arily Mr. Hayes, its President, or Mr. have acquired particular significance since Coombs, its Vice President in charge of the WP-3 has been charged by the Ministers of Foreign Department, who also acts as Spethe Group of Ten with the task of providing cial Manager for System foreign exchange "a basis for multilateral surveillance of the operations. various elements of liquidity creation, with Recently, the work of the BIS—like that a view to avoiding excesses or shortages in of Working Party 3 of the OECD—has been the means of financing existing or antici- integrated with that of the Group of Ten, pated surpluses and deficits in the balance of since the Ministers of the Group of Ten have payments, and to discussing measures appro- asked the BIS to combine statistical data priate for each country in accordance with "bearing on the means utilized to finance the general economic outlook."2 WP-3 has surpluses or deficits" in the international also been charged by the Ministers with the accounts of the members of the Group and task of undertaking a thorough study of the to supply them "confidentially to all particimeasures and instruments best suited for pants and to Working Party 3 of OECD."3 averting large and persistent payments im- The Federal Reserve is closely associated balances. with, and provides technical and financial Meetings of Federal Reserve officials with support to, CEMLA, which is a research other central bankers take place periodically organization established by the central banks within the framework of the Bank for Inter- of the Western Hemisphere. Again, our parnational Settlements and the Center for ticipation is mainly informational but we are Latin American Monetary Studies, which is also assisting CEMLA in the important task known by the initials of its Spanish title as of helping to train central bankers for Latin CEMLA. The Federal Reserve, in accord- American countries. ance with then prevailing U.S. policies, In addition, the heads of the central banks declined formal membership in the BIS when of the Americas are now meeting annually it was first established. But it has more for the purpose of discussing common probrecently, in accordance with contemporary lems. Participation of the Federal Reserve U.S. policies, accepted the invitation of the in these gatherings demonstrates that the BIS to send observers to the monthly and United States is interested in close financial annual meetings of the central bankers that collaboration with its American sister repubform its Board of Directors. These meetings lics just as it is interested in cooperating with countries in the Group of Ten. 2 Annex to the Ministerial Statement of August 10, 1964, section 37. J Annex to Ministerial Statement, section 37. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1241 STATEMENTS TO CONGRESS The day-to-day activities of the Federal spot purchases are limited to an aggregate Reserve have been most directly affected by of $150 million, and forward transactions— its participation in foreign exchange opera- excepting forward transactions that are tions. Between the early thirties and the merely designed to eliminate the exchange early sixties, the Federal Reserve did not risk of spot holdings or forward commitoperate in the foreign exchange market for ments—are limited to $275 million equivaits own account, although it continued to do lent. so as fiscal agent for the Treasury and its In contrast to the modest amounts of these Stabilization Fund, and as banking corre- market transactions, the Federal Reserve has spondent of foreign central banks. After concluded with eleven foreign central banks lengthy deliberation and full consultation and the BIS mutual currency agreements, with the Treasury, the Federal Reserve the so-called swap agreements, under which decided in February 1962 to re-enter the the Federal Reserve could draw a total of foreign exchange field. As set forth in the $2.8 billion in foreign exchange, and its Authorization given by the Federal Open partners a corresponding amount in dollars. Market Committee to the Federal Reserve Generally, these agreements are on a standby Bank of New York, the basic purposes of the basis; in other words, a participating central operations are (1) to help safeguard the bank draws on the arrangement only when, value of the dollar in international exchange and to the extent that, it needs an amount markets; (2) to aid in making the inter- in foreign exchange or dollars, respectively. national payments system more effective; Cumulatively, from the beginning of the (3) to further monetary cooperation with operations to the end of July 1965, drawings foreign central banks and the IMF; (4) to under the swap agreements reached the imhelp moderate temporary imbalances in pressive totals of $2.2 billion equivalent international payments; and (5) in the long drawn by the Federal Reserve and $3.4 bilrun, to make possible growth in international lion drawn by foreign central banks. Of liquidity in accordance with the needs of an course the amounts outstanding at any one expanding world economy. time have been much smaller. At the end of The Federal Reserve has conducted its 1964, for instance, outstanding drawings by foreign exchange operations mainly in the the System totaled less than $300 million, form of mutual arrangements with major and outstanding drawings by foreign central foreign central banks and the BIS. It also banks $200 million, leaving a net debtor purchases or sells convertible foreign cur- position of the System of less than $100 rencies outright, in the spot market, or en- million—which, incidentally, has since gages in forward operations in such curren- turned into a net creditor position. cies; but the total amount of spot currencies Under the swap agreements, both the Systhe Special Manager is authorized to hold tem and its partners make drawings only for for System account and the total amount of the purpose of counteracting the effects on forward transactions as well as the purposes exchange markets and reserve positions of for which he is permitted to engage in such temporary or transitional fluctuations in transactions are strictly circumscribed in the payments flows. About half of the drawings directives given him by the FOMC. Hold- ever made by the System, and most of the ings of foreign currencies through outright drawings made by foreign central banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1242 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 have been repaid within 3 months; nearly 90 The initial shock of the news of the assasper cent of the recent drawings made by the sination of the President temporarily par- System and 100 per cent of the drawings alyzed the New York exchange market, and made by foreign central banks have been there was imminent danger of panic selling repaid within 6 months. of dollars here and abroad. The Special In any event, no drawing is permitted to Manager of the System foreign exchange remain outstanding for more than 12 account immediately offered in the market months. This policy ensures that drawings sizable amounts of foreign currencies at the will be made, either by the System or by a rates prevailing before the tragedy. As the foreign central bank, only for temporary market realized that the Federal Reserve, purposes and not for the purpose of financ- with the cooperation of foreign central ing a persistent payments deficit. banks, was fully prepared to defend existing In all swap arrangements both parties are exchange rate levels, speculation subsided. fully protected from the danger of exchange By the end of the day, Federal Reserve interrate fluctuations. If a foreign central bank vention plus a parallel intervention of the draws dollars, its obligation to repay dollars Bank of Canada together totaled less than would not be altered if in the meantime its $50 million in all currencies. No further currency were devalued. Moreover, the Federal Reserve intervention was needed on drawings are exchanges of currencies rather the following days. than credits. For instance, if, say, the In November 1964, sterling was hit by National Bank of Belgium draws dollars, large waves of selling, despite actions taken the System receives the equivalent in Bel- by the British authorities, including an ingian francs; and since the National Bank of crease in bank rate to 7 per cent and the in- Belgium has to make repayment in dollars, troduction of a 15 per cent import surthe System is at all times protected from any charge. On November 24, a massive credit possibility of loss. Obviously, the same pro- package to back up sterling began to take tection is given to foreign central banks shape. The Federal Open Market Commitwhenever the System draws a foreign cur- tee approved a $250 million increase in Ihe rency. swap arrangement with the Bank of Eng- The interest rates for drawings are identi- land; simultaneously, the Export-Import cal for both parties. Hence, until one party Bank granted Britain a $250 million credit. disburses the currency drawn, there is no The Bank of England and Federal Reserve net interest burden for either party. Amounts officials were in almost continuous telephone drawn and actually disbursed incur an inter- communication with the other major central est cost, needless to say; the interest charge is banks that participate in the network of swap generally close to the U.S. Treasury bill rate. arrangements with the System, and on the The advantages of these arrangements for afternoon of November 25 a $3 billion the United States, and for the free world in package of credits obtained from 11 coungeneral, can best be explained by briefly dis- tries and the BIS could be announced. cussing two instances: Federal Reserve Federal Reserve drawings under the swap actions on the tragic day of President Ken- arrangements do not necessarily reflect an nedy's assassination, and at the time of the international payments deficit of the United sterling crisis last November. States. Regardless of our over-all payments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1243 STATEMENTS TO CONGRESS position, it is unavoidable that from time to ports. But the United States does not spend time the United States has a substantial more abroad on goods and services than it deficit in relation to one country, and a sub- earns. On the contrary, it has had record stantial surplus in relation to another. If the export surpluses in recent years, even after foreign surplus country traditionally con- deducting all Government expenditures verts dollar accruals into gold while the for- abroad from its export receipts. But U.S. ineign deficit country holds most of its re- vestors have lent and invested funds overserves in dollars, the U.S. gold stock will be seas that were larger than the export surplus. reduced even in the absence of an over-all Hence, although the international wealth of payments deficit; this actually happened last the United States has increased, its interquarter, when—as you know—the United national liquidity has declined: its gold States had a payments surplus. reserves have dropped, and its short-term But insofar as the deficit in relation to liabilities have increased faster than its the foreign surplus country might be deemed liquid claims on foreigners. temporary, the decline in the U.S. gold stock This difference between the U.S. position could be avoided by means of a drawing on and the usual position of a deficit country the swap arrangement with that country. may be important from the point of view Similarly, if the foreign deficit country is of needed remedies; it does not alter the fact pressed for reserves, it may also prefer to that a large and persistent decline in the make a drawing on its swap arrangement international liquidity of the United States rather than reduce its reserves, provided that can no more be permitted to go on units deficit is considered temporary and rever- checked than could a trade deficit. There sible. Hence, swap drawings initiated by the are, in my judgment, three main reasons System on some central bank are usually why a continuation of the decline in our outstanding side by side with swap drawings international liquidity would be extremely initiated by some other central bank. harmful for both the United States and the The concern of the Federal Reserve with rest of the free world. international matters is not restricted to the First, a large part of the free world's trade international activities of the System. Our and finance is conducted in U.S. dollars. But concern is most directly connected with the the dollar can continue in its international main purpose of our monetary policy: in role only as long as the world has full conview of the interrelations between our coun- fidence in its stable value. And while the try's domestic and international monetary value of the dollar is ultimately based on the equilibrium, domestic policy considerations prosperity and stability of the U.S. economy, are sufficient reason for avoiding policies confidence also is deeply affected by changes that would perpetuate or aggravate a pay- in the relationship between our gold reserves ments imbalance. and our net short-term liabilities to foreign- It is true that the recent U.S. payments ers—especially foreign monetary authorideficit has been of a character very different ties—which we are prepared to redeem in from that of payments difficulties of most gold on demand. Hence, a persistent and other countries. In general, a country suf- large deterioration in that relationship—in fers from a payments deficit when its im- other words, a persistent and large decline ports of goods and services exceed its ex- in our international liquidity—tends to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1244 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 undermine confidence in the dollar, and to stances could arise in which a sudden elimthreaten the vital role of the dollar in inter- ination of a payments deficit would require national commerce. monetary measures of such severity that they More concretely, some foreign observers would not be appropriate from the point of have contended that the United States could view of domestic policy goals. The longer have a persistent deficit in its payments only the payments deficit remains unchecked, the because it could rely on the international greater the possibility or even probability of role of the dollar. Foreign merchants, bank- a sudden emergency of that kind. ers, and investors have been willing to accu- Third, while the present international mulate dollar balances, and foreign central payments system has, in my judgment, funcbanks have been willing to accumulate dol- tioned extremely well, it is—like all human lar reserves only because the dollar has been institutions—in need of further improvegenerally acceptable in settlement of inter- ment. The United States has the greatest national transactions. Otherwise, the United interest not only in bringing about that im- States would have had to settle all payments provement but also in seeing to it that the deficits in gold, and would have had to take necessary improvement does not impair the drastic action long ago to keep its gold stock international function of the U.S. dollar. But from being depleted. as long as our payments balance continues There is only a short way from this line of in deficit, all suggestions made by U.S. repreargument to the demand that in the future sentatives will be subject to a suspicion that the United States be made to abide by inter- they aim not at improving the system but at national payments discipline in exactly the finding new and painless ways to finance the same way as a country whose currency does U.S. deficit and thus to permit the United not circulate internationally; in other words, States to continue to run a deficit. This susthat all settlements of international pay- picion, unfounded though it is, needs to be ments deficits be made exclusively in gold, allayed if we are to attain consensus on the and that the dollar cease to function as a problem of international payments reform; reserve currency, if not also as a key cur- it will not be finally allayed until our payrency in private international transactions. ments position returns to lasting equilibrium. Such a change would not only wipe out U.S. The Federal Reserve is contributing to gold reserves, as foreigners would convert the elimination of the payments deficit pritheir dollar balances into gold. It would also marily by a monetary policy designed to progreatly reduce the international liquidity of vide member banks with reserves large the free world as a whole, and hence pose a enough to permit them to continue to finance serious threat to any further expansion of our present prosperity and to attain even international commerce, or even to the main- better utilization of our manpower and capitenance of its present volume. tal resources but not so large as to permit Second, indefinite continuation of a pay- either domestic inflationary pressures to ments deficit would increasingly impede the develop or an excessive amount of funds to conduct of U.S. monetary policy. In the long flow abroad. In accordance with the Presirun, domestic and international goals of dent's balance of payments message of Febmonetary policy are, in my judgment, identi- ruary 10, 1965, this general policy is being cal; but in an emergency situation circum- supplemented by the participation of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1245 STATEMENTS TO CONGRESS Federal Reserve in the voluntary efforts of the predominant position of the U.S. econcommercial banks and other financial insti- omy and the ready convertibility of dollars tutions to restrain the expansion of credits into gold at the established price of $35 per to foreigners. As you know, these efforts ounce. Certainly any proposal for changhave been successful almost beyond expecta- ing the international monetary system must tion; but they clearly are a temporary respect these functions performed by dolremedy, and cannot be relied upon to bring lars and must avoid the introduction of inabout lasting equilibrium. centives to convert dollar holdings into The Federal Reserve will continue to do gold. its part not only in the attempts at eliminat- Whether other countries do or do not ing our payments deficit for good but also in wish to continue to use the dollar as a rethe work that will lead, I hope, to a better serve currency is of course up to them. The international monetary system. Such a sys- United States does not insist that other natem will, in my judgment, need to be based tions accumulate dollars to meet their reon existing institutions that have provided a serve needs. Nor does the United States framework for unprecedented economic claim that the amount of dollars that flow progress at home and abroad; on expanded abroad as a result of our balance of payfunctions of the International Monetary ments position necessarily or automatically Fund; on financial cooperation of the sort corresponds to the needs of the rest of the pioneered through our swap arrengements; world for currency reserves. In this conand on the continued use of reserve cur- nection we at the Federal Reserve can well rencies as a means of settling international understand those who say in effect that transactions and as international reserves international money will not manage itself. side by side with gold. The international monetary system must Whatever the differing attitudes of coun- be flexible rather than rigid. It must be tries regarding the composition of their re- adaptable to the differing and, over time, serves between gold and foreign exchange, changing needs of the various countries. It it is a fact of financial life that all countries would be a great mistake to act as if all use reserve currencies—especially the dol- countries were alike in their size, structures, lar—in their exchange markets. Thus coun- policies, and values. Any change in the tries in balance of payments surplus in- monetary system must recognize the great evitably find their dollar balances increas- diversity that exists among countries, even ing; the monetary authorities of countries in among the major industrial countries. And deficit must sell dollars in their exchange any such change must be an evolutionary markets to support their exchange rates. one, preserving and building upon the valu- This almost universal use of dollars by able elements of the existing system. monetary authorities is a reflection of the If international agreement can be reached widespread employment of the dollar by on such a basis, the reform of our internaprivate traders and financial institutions, tional monetary system may be expected to even in transactions that do not involve the contribute to world prosperity without dis- United States. The use of the dollar as a re- turbing market processes, without violating serve is closely related to its function as a national monetary sovereignty, and without medium of exchange, and reflects as well disrupting international cooperation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1246 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Statements by members of the Board of ing banking institutions may well hesitate to Governors of the Federal Reserve System consider, plan, or consummate a merger, no before the Subcommittee on Domestic Fi- matter how beneficial it promises to be. nance of the House Committee on Banking There is always the possibility that an antiand Currency on S. 1698 and related bills.1 trust suit may be instituted long after the transaction has been completed pursuant to Statement by J. L. Robertson on August supervisory authorization. The costs and the 23, 1965. other adverse effects of such a suit, and particularly the possibility that the merged insti- As passed by the Senate, S. 1698 contution may have to be dismantled, are risks tains two quite separate provisions, although that men of sound judgment often hesitate to they both rest, in part, on the same justifiassume. cation. The first of these relates to the me- Under the amended bill, as others have chanics of administration of the antitrust brought out, in connection with every prolaws with respect to banks; the second—emposed bank merger the Department of Jusbodied in the last sentence of the bill— tice would have a period of not less than 60 would exempt from antitrust prosecution days, and in most cases much longer, to virtually all bank mergers (or similar transstudy and evaluate the situation and to deactions) that were consummated prior to the cide whether action under the antitrust laws enactment of the proposed law. Both proappears to be appropriate. If no action was visions are based primarily on the disadvanbrought within the prescribed period, the tages of requiring the breaking up of a banktransaction could be consummated with ing institution—"unscrambling," in the popassurance that it could not thereafter be ular jargon—after it has actually come into attacked under the antitrust laws. On the existence through the amalgamation of two other hand, if a Sherman Act or Clayton Act separate institutions. proceeding was initiated within the pre- The "administrative" aspect of the bill scribed time, the merger could not be conwould leave bank mergers subject to both summated unless and until its legality had the Sherman Act and the Clayton Act but been judicially affirmed. In either event, the would provide that if a proposed merger is provisions of the bill would avoid the public approved by one of the Federal bank superand private disadvantages incident to a decivisory agencies, a proceeding under the antision that a merged institution must be trust laws must be commenced, if at all, broken up. I consider this arrangement to be within 30 days after the date of supervisory fair and in the public interest. approval. The bill, if enacted, would have another Legislation to this effect would seem to effect, one concerning which I have reservabe desirable. It is a cliche, in this connection, tions. It provides that "any merger ... which to refer to the sword of Damocles, but the was consummated prior to the enactment of cliche is apropos. Under existing law, perthis amendment . . . shall be exempt from sons charged with responsibility for managthe antitrust laws." The question raised by this provision con- 1 Chairman Martin's statement on S. 1698 before cerns the appropriate relationship between the same committee, on August 11, 1965, appeared in the August BULLETIN, pp. 1078-83. the judicial and legislative branches of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1247 Government; that is, whether the legislative policy in favor of a vigorously competitive branch should overrule the judicial branch economy. or deprive it of jurisdiction over particular The principal objection to such a retromembers of a broad group to which existing active exemption—even more disturbing laws are applicable. I doubt the wisdom—as than its economic implications, in my judgwell as the benefit—of seeking the advice of ment—is its potentially adverse effect upon the supervisory officials on a problem of this respect for law, obedience to law, and the kind, because their views are likely to be vigor and effectiveness of enforcement of the suspect in view of their prior involvement in laws enacted by Congress. The vice of this merger cases. Many of the mergers that proposal is that it amounts to an appeal to would be exempted by this proposal—all the legislature, in particular cases, in an that have been consummated since enact- effort to escape from general laws and their ment of the Bank Merger Act in 1960—have judicial enforcement. Certain transactions of been considered by the Federal bank super- a kind that presumably could not be carried visors from the standpoint of effect on com- out hereafter, under the provisions of this petition, and some of the most important bill, would be granted a special dispensation were approved by the Board of Governors of solely on the ground that they were "conwhich I am a member. In some of these it summated prior to the enactment of this was my conclusion that the general welfare amendment." If the underlying philosophy would not be promoted by the merger. In of the antitrust laws reflects the national will such circumstances, it is perhaps difficult to and belief—and this is the case, under our avoid being influenced, subconsciously, by constitutional system, until Congress repeals one's related convictions. But having been those laws generally—exclusion of a parasked to testify on the matter I feel obliged ticular group of situations for no other reato express my views, however reluctantly. sons than the difficulties and hardships involved in the unscrambling process and the I am fully aware that "unscrambling" any fact that they were consummated prior to an institution months or years after it is created arbitrary date seems to me impossible to by the amalgamation of two separate organijustify. zations—while not impossible—involves substantial difficulties, inconveniences, and From the practical viewpoint, I should even injury not only to the corporation's perhaps express my belief that the "dangers" stockholders and personnel but also to its of antitrust law enforcement in this field have customers. Nevertheless, the continued exist- been exaggerated. It has been pointed out ence and enforcement of the antitrust laws that 2,000 bank mergers have taken place evidence the conviction of Congress, con- since 1950, with the intimation that all of firmed again and again, that the general wel- these institutions will continue to be in antifare calls for such laws and their enforce- trust jeopardy unless they are accorded relief ment even at the cost of some injury to in- of this nature. On the basis of three decades dividuals. Accepting that principle, I am of experience in bank supervision, necesunable to find justification for this aspect of sarily involving some familiarity with the the proposal, which would single out a par- application and enforcement of antitrust ticular group of mergers and confer upon laws in the banking field, I am satisfied that them complete exemption from the laws that failure to grant such a special exemption embody an important aspect of our national from the antitrust laws will not result in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1248 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 wholesale antitrust litigation involving involved. The relevant supervisory agency merged banks or a major disturbance and is to judge such questions as whether the upheaval in the financial community. status of the surviving bank is strong enough These are the reasons why I support the to support a merger or if the position of the "administrative" provisions of S. 1698 but bank to be merged is so weak as to impel question the advisability of the provision that one. Since banks involved in mergers usually would confer retrospective exemption upon are operating institutions and have their pera particular group of merged corporations. formance recorded in the form of statistical, examination, and field contact reports, supervisory authorities, with such differences in judgment as reasonable men exhibit, have Statement by George W. Mitchell on little difficulty in sorting out and evaluating August 26, 1965. the banking factors. During the past 3Vfc years the Board of Mr. Chairman, I thought it might be help- Governors has considered 107 merger cases. ful to your deliberations if I offered a brief It has approved 97 applications and denied summary of my views on the substantive 10.2 Banking factors were the major or a issues involved in commercial bank mer- significant consideration in 43 approvals. gers. I will do this by reference to the cases The banking factor that most frequently considered by the Federal Reserve Board in represented a basis for approval was a the past 3Vi years—roughly the period of needed improvement in management. In my service on the Board. every case of approval except three where As both this statement and my voting banking factors were of significance, the record will testify, I regard the competitive competitive factor was judged to be neutral impact of mergers the most difficult and or, on occasion, slightly adverse. In the three complex question posed in bank merger approved mergers where there was significases; but I also believe that, when properly cant competition between the merging instianalyzed, competition turns out to be signif- tutions, the acquired bank faced manageicantly affected in only a minority of bank ment, capital, or earnings problems that the merger proposals. When competition is sig- Board felt were sufficiently pressing to warnificantly reduced I favor denial unless the rant their resolution by merger. On the other bank to be acquired is an unsound opera- hand, in each of our 10 denials of merger tion or woefully inadequate to meet its com- applications during this period, the banking munity's needs. factors, even though of concern in four Let me explain the reasoning that under- cases, were finally judged of lesser imporlies this conclusion. The Bank Merger Act tance than the competitive factors in every of 1960, under which the Board operates, instance. requires the supervisory authorities to con- The record makes clear that there are sider a set of seven factors in each merger very, very few cases in which the competicase. The first five are called "banking factive factor is significantly adverse but in tors." They cover such considerations as the financial history and condition, the ade- 2 I might add I have not seen eye to eye with the quacy of capital, the quality of management, majority in all of these cases. I would have turned down 11 applications that were approved and apand the earning prospects of the institutions proved one application that was denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1249 which banking factors are nonetheless of-state business loans, tax exempt securijudged to provide an overriding reason for ties, or mortgages contributes less to its approval. Such fortunately rare cases typi- community than one that is playing an cally involve a serious management break- active role in satisfying the credit needs of down, self-dealing, or evident incompetence. local businessmen, farmers, consumers, and As compared with the banking factors, governments. Clearly, so far as the comthe other two factors that supervisors are munity's convenience and needs are conrequired to consider under the Bank Merger cerned, a merger involving the first bank Act pose much knottier problems, both of would be far less objectionable from the information and analysis. The statute specif- public point of view than would a merger ically refers to these factors as (1) "the con- involving the second. Accordingly, a carevenience and needs of the community to be ful inventory of the extent of local and nonserved" and (2) "the effects of the transac- local credits in the bank's loan and investtion upon competition, including any tend- ment portfolio is called for in order to ency toward monopoly." clarify its role in community financing. How does one go about judging whether In these ways—through surveys of comthe convenience and needs of the communmunity views, informed professional judgity will be benefited by a change in banking ments, and a review of the record of the ownership and management? This involves bank's participation in financing its comdetermining the actual breadth and intensity munity—reasonable bases for judgment can of community demands for various banking be established as to what the "convenience services, as distinct from the quantity and and needs" of the community are and how quality of services that the existing and prowell the existing institutions have met them. posed new combinations of banks intend Against this must be weighed the record and supplying. To do this one needs to survey assurances of the merging bank as to what community opinion on the status quo to find it can and will supply. The final balancing out how both business and household cusof these considerations remains a matter of tomers appraise the quantity and quality of judgment but, with evidence before them of the banking services available to them. the type I have outlined, supervisory author- But it is hard for bank customers to comities can judge with a fair degree of aspare services they are accustomed to with surance how well a proposed merger meets those they have never had the opportunity the "convenience and needs" test. In the 97 to try out. Such survey results, therefore, approvals noted above, the convenience and must be supplemented by a more knowledgeneeds factor was the major or a significant able appraisal. In this appraisal, the broad consideration in 51 cases. It was not a signifexperience of bank examiners in the qualitaicant consideration in any denials. In my tive and quantitative aspects of banking services can usually be helpful. judgment, the "convenience and needs" factor should ordinarily be accorded more Another aspect of the impact of bank mergers upon the "convenience and needs weight than the "banking factors." of the community" concerns the contribu- The hardest criterion of all to apply, howtion that banks can make to economic ever, is the effect of the proposed merger on growth and stability in their own communi- competition. At the outset it should be clear ties. A bank that is investing heavily in out- that the competitive factor cannot be disas- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1250 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 sociated from consideration of "convenience corollaries of this view are that banks comand needs," inasmuch as the over-all objec- pete with other businesses fully as much as tive is to provide the banking services they do among themselves and that for each desired by the customers on reasonable terms service they offer there is ordinarily a difand at fair prices. Indeed, the most conclu- ferent market area and a different competisive way of assuring that a community's con- tive situation. venience and needs will be met is by the Thus, in order to evaluate the competitive maintenance of so many alternative banking factor, a reasonably accurate delineation of choices that the resulting competition among the areas that the merger candidates serve them will give customers all the opportunity must be developed. From the approximate they could wish to move from one bank to boundaries of the various service areas for another in order to obtain whatever mix of each type of bank activity it is possible to services they desire. But this is rarely a prac- identify the markets that might be affected tical criterion. There is a practical limit to by the merger, as they are revealed in the the number of banking alternatives that it is overlap of respective service areas. possible to make available to any given com- Among all the services that banks provide, munity. only one of major importance is truly unique In dealing with a change in the status quo and not vulnerable to nonbank competition there is a popular presumption that any de- —the checking account. In all other activicrease in the number of independent bank- ties commercial banks face varying degrees ing units in a given market area will, of it- of competition from other financial interself, decrease competition and increase the mediaries or the money and capital markets. tendency toward monopoly. It is my own As lenders, banks compete with each other feeling that this presumption is too harsh a and other financial intermediaries or with standard to apply without corroborating capital markets in extensions of credit to evidence. Such evidence is to be found in the business (large and small), to consumers, extent of any unfilled needs of business and and to governments (Federal, State, and household customers in the market areas local). affected by the proposed merger. And it is It is quite evident that in many of these to be found in an analysis of the markets markets the merging of any but the very involved in the merger—the alternative largest banks is unlikely to have significant sources of banking services, the extent of anticompetitive effects. Nonbank and nonmarket power exercised by the banks in local-bank competition are major factors these markets, and the role in these markets ensuring competitive performance in the of the particular banks to be merged and the Government securities market, in lending to merging bank. large businesses, and in the market for most In contrast to the concept adopted by the tax-exempt State and local bonds. Nonbank Court in the Philadelphia National Bank competition is typically vigorous in the concase that "the cluster of products and ser- sumer credit markets, where hard goods vices denoted by the term 'commercial bank' suppliers have their own sources of credit composes a distinct line of commerce," I am independent of local banks. The same is true of the view that the great variety of unre- of mortgage markets, where other speciallated services that banks offer are far more ized financial intermediaries are dominant. significant than their related services. The In whatever markets banks face substantial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1251 nonbank or non-local-bank competition, it little or no overlap in their service areas for is a fair presumption that the impact on small business and personal customers. Such competition of any bank merger will be is the case when the major objective of the negligible. acquiring bank is to extend its activities into What, then, are the remaining markets in another geographical market or into another which competitive considerations must be service field. For example, in Virginia, a weighed particularly carefully? The most State where there has been a great deal of important single market in this category is merger activity in the past 3 years, the prethe market for demand deposit services to ponderance of cases have involved the exlocal business and individuals. These are tension of service areas for banking instituservices that can be provided only by a bank, tions that are, under a recent State statute, and for most such customers only by a local becoming statewide in their operation. The bank. Another important local market is competitive effect in these cases is not that that for savings accounts; in this instance, of the withdrawal of an alternative source of however, local offices of other financial banking service, but typically the substituintermediaries usually offer a similar service. tion of a branch of a larger institution for a Lately some rate-conscious savers have community bank. escaped the orbit of local alternatives alto- It is sometimes said or implied that gether and exported their savings from one branches of large banks in small communiend of the country to the other. ties are unfair competition for local banks. The small business borrower is another But there are too many instances in which bank customer that may suffer from the local banks have held their ground both in removal of an alternative source of bank growth and profitability to support a broad credit by merger. Even though such borgeneralization along that line. As a practirowers can often obtain trade or supplier cal matter, it may well be that the communicredit, the price of such financing may be ties that are most blessed with banking facilihigh and the attendant conditions can be ties are those that possess a mixture of local confining. Small businessmen usually find banks and branches of larger institutions. their local banks to be their cheapest, most This brings us down to what might be accessible, and most flexible source of extercalled the hard core of merger proposals— nal financing. those that turn out, upon examination, to In considering the definition of the service involve two or more banks with overlapping area of the bank, then, particular attention service areas for small business and individshould be paid to the potential service areas ual customers. In such circumstances, confor small business borrowers and individual summation of the merger undeniably will and small business depositors—these are the eliminate one competing bank from the relemarkets most likely to be significantly afvant markets. The loss of one alternative for fected one way or the other by merger. customers in choosing their banking con- When chief concern about the possible nections in these market areas is almost cercompetitive impact of bank mergers is nartain to lead to denial unless the number of rowed down to these two or three market actively competing banks is already large, or sectors, a great many merger proposals can the bank to be acquired is so small or inefbe said not to raise the competitive issue at fective a competitor as not to create any all. This is because the banks involved have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1252 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 appreciable gap in bank alternatives by its philosophy. In these circumstances the betdisappearance as an independent entity. ter alternative may well be a merger. Let me turn to the record to give you some indication of how these principles FACTORS CONTRIBUTING TO APPROVALS AND DENIALS have worked out in practice. The Board's 10 OF MERGER APPLICATIONS BY denials in the past V/i years have, without FEDERAL RESERVE BOARD, JANUARY 1962-JUNE 1965 exception, been based primarily on the Factor 1962 1963 1964 19651 Total judgment that the proposed merger would Competitive appreciably lessen competition in one form Neutral 20 17 10 9 56 Somewhat adverse 7 10 2 2 21 or another. Bank management factors have Substantially adverse 8 3 3 14 Somewhat favorable 5 3 3 2 13 significantly weighed for the merger in some Substantially favorable 2 1 3 of these cases, but in each instance they have Total 42 34 18 13 107 been relegated to a secondary consideration. Convenience and needs Neutral 11 7 6 25 Broader services: In the 97 Board approvals of mergers Somewhat favorable 9 12 2 23 during this same period, the effect on com- Hi S g u h b er s t l a e n n t d ia in ll g y l f i a m vo it r : able 9 3 5 5 22 1 1 petition was, in the Board's judgment, neg- Substantially favorable 3 3 3 9 ligible in 56 cases, favorable in 16, slightly Bo S th o m se e r w vi h c a e t s f a a n v d o r l a e b n l d e ing limit: 2 3 1 le Substantially favorable 11 5 2 2 20 adverse in 21, and in only 4 cases ap- Total 42 34 18 13 107 proved was there significant competition Banking factors between the merging banks. Neutral 20 6 4 6 36 Management: Somewhat favorable 7 4 7 4 22 You will note that I mentioned 16 cases Substantially favorable 4 14 6 24 Earnings: in which it was judged that the effect of the Somewhat favorable 2 2 Substantially favorable 2 2 proposed merger would be to increase com- Management and earnings: Somewhat favorable 2 2 petition. The favorable effect that a merger Substantially favorable 3 2 5 Capital: can have on competition, while not common, Somewhat favorable 1 1 Substantially favorable 2 1 3 Management and capital: is, in my opinion, often overlooked by critics Somewhat favorable 1 1 Substantially favorable .. 2 2 of mergers. This favorable effect may arise Common ownership: Substantially favorable 4 2 7 when the consummated merger puts an end Total 42 34 18 13 107 to the monopolistic policy of "home office protection." It usually accompanies the 1 Through June. merging of small banks in an area where a In an isolated community, to take another dominant competitor holding a very large example, it is possible that neither of two proportion of the local deposits can only be banks can meet the credit needs of local effectively challenged by a larger institution. businesses and farms in the surrounding area Occasionally merger applications pose a but that their combined resources and higher confrontation of an adverse effect on competition, on the one hand, and a favorable lending limit would enable them to do so. effect on serving the community's conveni- In such cases, the proposed merger might ence and needs. For example, the bank pro- eliminate substantial competition between posed to be merged may have exhibited a the merging institutions for some types of very limited interest in serving the credit banking services but at the same time the needs of its community—then the only com- resultant bank could do a markedly better petition lost by merger would be the poten- job at serving the area's convenience and tial of a new management with a different needs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1253 My work and experience with the Bank which a bank supervisory agency approved Merger Act in the past ZVi years persuades a merger but the Attorney General brought me that even among the most sophisticated suit to prevent it have been infrequent. In experts in law and economics, the under- fact, none of the 97 mergers approved by standing of what it takes to make a competi- the Board in the past 3Vi years has been tive market is still quite imperfect. Progress contested under the antitrust laws, and I in deepening such understanding comes understand the Attorney General has said he slowly, and it depends partly upon improve- has no intention of doing so. Nevertheless, ments in analytical techniques designed to the difficulties of undoing a merger are great define the markets affected by mergers and enough that I believe a procedure should be to appraise the possible impact of mergers established by statute to prevent such cases upon these markets. I have tried to outline from arising. some of the complexities of this task and to One of my reasons for being concerned indicate my own predilections. about the problems of divestiture is that I I believe that all concerned with the regu- see no practical device for spinning off lation of bank mergers are sincerely con- depositors in nonbranching States. A bank cerned with promotion of the public welfare. can spin off assets in the form of securities It seems to me that the differences in our and loans without difficulty; it is the very conclusions rest not on any lack of faith in essence of banking that it be in a position to the efficacy of competition but essentially on do so. A bank can, neglecting the human differing views as to the relevant markets problems of its staff and officials, spin off and evaluation of the impacts of mergers on personnel and operating know-how. A bank can, with considerable disruption to these markets. The Board is devoting concustomer relationships and convenience, sell siderable professional resources to solution or spin off branches and with them the proof these problems in hopes of improving the pensity of local residents and business to basis for its judgments. As these efforts propatronize those branches. But how can a gress, I hope they can lay the foundation for unit bank sell or spin off its depositors, asa more widespread consensus among all signing them to a new bank or existing inauthorities as to where the public interest in stitution? And how can it organize a new bank mergers lies. institution without owning it or controlling Turning now to S. 1698, while I share it indirectly? While spinning off assets, opermany of Governor Robertson's reservations ating personnel, and branches involve difconcerning the immunity it would grant to ficulties and hardships, spinning off deposipast mergers, I strongly support the prostors in a nonbranching State may defy pective features of the bill. Even though I solution. S. 1698 offers an effective preregard more seriously than many the ventive remedy for this problem. troublesome problems of divestiture that have arisen, or may arise, in a few cases, I still do not conclude that the situation war- Statement by Sherman J. Maisel on Aurants general immunity from the antitrust gust 30, 1965. laws for all bank mergers that took place before the enactment of this bill. Clearly these difficult situations should be I am pleased to have this initial opporavoided in the future. Fortunately, cases in tunity to appear before your committee. I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1254 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 believe that hearings such as this play a I also believe that you established proper valuable role in creating understanding of guidelines when you stated: the extremely complex problems involved in We are convinced, also, that approval of a merger should depend on a positive showing of some benefit the area of banking and credit. This and to be derived from it. ... We . . . reject the philossimilar efforts of your members help to im- ophy that doubts are to be resolved in favor of bank prove the basic functioning of our financial mergers. At the risk of saying the same thing another way, we feel the burden should be on the proponents system. of a merger to show that it is in the public interest, Because I am the fourth member of the if it is to be approved. Equally admirable are the objectives Federal Reserve Board to appear in the curstated in the Senate report: rent hearings, as well as its most junior member, I probably cannot add much to Vigorous competition between strong, aggressive, and sound banks is highly desirable; lack of competiyour knowledge. My colleagues who testified tion, restraints on competition, and monopolistic pracpreviously have done an excellent job in tices are undesirable. I am concerned, however, because I feel explaining the major problems which the that we are not making as rapid progress as Board of Governors faces under the Bank we should towards achieving these desirable Merger Act. goals expressed by Congress. My membership on the Board of Gover- To explain my beliefs it may be advisable nors dates only from May 1, 1965. Thereto express my general attitude on banking fore, I lack the long experience in these competition. I am convinced that in this matters of your previous witnesses. During field, as in others, vigorous competition this period I have considered only 10 probenefits not only the economy and the posed mergers (in which I voted to approve general public, but the competitors them- 7 applications and to deny 3). We have also selves. As an economist I feel certain that considered about 75 applications for new our national policy of encouraging and branches. maintaining competition is one of the most While my administrative experience has important forces in our country's pre-emibeen short, I have long been interested in nent record of growth and productivity in the field of workable competition. Since joinmanufacturing, distribution, transportation, ing the Board, I have given considerable and finance. Strong competition is the lifethought and effort to these problems. In reblood of our free enterprise system. examining this topic, I was particularly im- In the recent past, banking was characpressed with the careful consideration given terized by a lack of a strongly competitive to the problem of banking structure by your drive. Because of the enormous importance committee, especially in the actions which of banking stability and continuity and in resulted in the Bank Merger Act of 1960. order to protect the economy from the I believe your report on that bill estabdestructive effects of bank failures, an elabolished proper and reasonable standards for rate system of supervision and governmental administrative action. I agree heartily with control of entry and expansion in this field your statement of the basic purposes of the was established. statute: namely, that it is intended— As a result of unfortunate past experi- To promote a sound banking system, in the interest ences, governmental regulation and overof the Government, borrowers, depositors, and the sight of this industry have tended to bolster public; and to promote competition as an indispensexisting organizations rather than to stimuable element in a sound banking system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1255 late and enhance competition. The Bank basis with relatively gigantic competitors. Holding Company and Merger Acts indicate The development of a policy stressing furthat a change in emphasis has been taking ther competition in individual markets, its place, a change that I consider to be strongly general adoption, and its realistic implein the public interest. mentation constitute one of the most chal- My present conviction—which may be lenging tasks confronting Congress, the refined and modified in the crucible of Board of Governors, and coordinate agenadministrative experience—is that Federal cies. bank supervisors can do more than they I believe it should be clear that in such an have done to improve the competitive func- attempt to maintain and improve competitioning of our banking system. Particularly tion among banks we must be concerned it appears that, on grounds of the national with far more than the problems of mergers interest, they may well be justified in look- alone. The banking structure is extremely ing with greater favor on expansion by the dynamic. Constant change occurs in each smaller competitors in a market, and with banking market as a result of four separate less favor on expansion by the larger. The influences: latter have advantages of personnel and 1. Banks grow in their existing offices. resources that frequently enable them to 2. Mergers, or an expansion of group banking step into promising areas before such action through the medium either of holding corporations or of individual ownership, may alter the basic frameis practicable for their smaller competitors. work. I believe this situation should be actively 3. The structure can be and has been rapidly changed by the granting to banks of the right to recognized by supervisory agencies. Affirmaestablish branches in new locations. tive efforts should be made to increase the 4. Finally, new banks may be brought into the amount of competition in banking by plac- market if the Comptroller of the Currency or State supervisory authorities grant charters for new instituing smaller banking organizations, whether tions. existing or new ones, on a more nearly equal Alhadeff has shown that, in most cases, TABLE 1 CHANGE ih NUMBER OF BANKS AND BRANCHES BYTYPE OF CHANGE, 1950-64 United States California ]New York Illinois Item 1950-54 1955-59 1960-64 1950-54 1955-59 1960-64 1950-54 1955-59 1960-64 1950-54 1955-59 1960-64 Beginning of period: Number of banks 14,205 13,881 13,486 206 171 115 640 560 415 890 910 955 Number of branches 4,665 6,443 9,790 949 1,121 1,556 759 966 1,303 3 3 4 Total number of offices 18,870 20,324 23,276 1,155 1,292 1,671 1,399 1,526 1,718 893 913 959 New banks organized 342 538 1,065 27 17 57 6 5 15 28 50 63 Reductions due to mergers, consolidations, etc.. 666 933 776 62 73 17 86 150 70 8 5 Branches and facilities: Beginning operations and conversions, etc. 1,909 3,559 5,250 192 464 601 227 373 426 i 1 1 Ceasing operations, total 131 212 269 20 29 30 20 36 27 1 End of period: Number of banks 13,881 13,486 13,775 171 115 155 560 415 360 910 955 1,009 Number of branches.... 6,443 9,790 14,771 1,121 1,556 2,127 966 1,303 1,702 3 4 4 Total number of offices 20,324 23,276 28,546 1,292 1,671 2,282 1,526 1,718 2,062 913 959 1,013 NOTE.—The number of banks and branches includes all commercial Facilities on military bases are included as branches. banks, insured and noninsured, in the United States and possessions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1256 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 the banking structure is influenced more authority to grant charters and branches strongly through branching and new entry does not require that the effect on competithan by merging.3 tion be considered. I have two tables that may help to illus- In your initial hearings and reports on trate this fact. Table 1 on page 1255 shows the bank merger problem, this committee that since 1950 the number of banking of- expressed concern that regulatory bodies fices has increased from 18,870 to 28,546. were often approving mergers for the wrong In this period, while there was a net de- reasons; that is, because of competition crease of over 400 banks caused by the ex- among themselves rather than among the cess of mergers over new charters, the num- banks. It was pointed out that since each ber of new branches increased by over agency acted on the basis of assumptions as 10,000. The table also shows equivalent to what others might do rather than upon changes for three of our largest States— its own judgment, a weaker policy than even California, New York, and Illinois. The the weakest of the agencies would adopt if contrasts, reflecting differing patterns of it held sole responsibility often resulted. development in States with statewide branch I fear that this same situation still exists banking, with limited branching, and with with respect to the over-all problem. While unit banking, are interesting. We note again some coordination has resulted from your the high percentage of change arising from prior actions, it is still insufficient. The branch policy. Table 2 shows related information. It TABLE 2 makes clear that, with the exception of Illi- CONCENTRATION RATIOS IN RELATION TO BRANCHING, SELECTED STATES, AS OF DECEMBER 31, 1964 nois, in the States with the highest concentration ratio (defined as the smallest per- Banks Averages per bank centage of banks holding over 50 per cent State Per cent Banking Deposits of deposits) a large amount of the concen- Number of all in offices (millions State (number) of dollars) tration is related to the large number and growth of branches. California 2 1.0 611.5 8,590 New York 4 1.2 136.8 7,542 Michigan 5 1.4 51.2 1,241 The Commission on Money and Credit, Pennsylvania 9 1.5 48.7 1,049 Illinois 11 1.1 1.0 1,079 and the Committee on Financial Institutions established by President Kennedy and NOTE.—These are the States with the smallest percentage of banks holding over 50 per cent of total deposits. chaired by Walter Heller which reported in April 1963, discussed this problem at length. amount of competition, its growth or de- Both pointed out that the supervisory au- struction, emerging at the present in each thorities and the statutes have no consistent banking market results from a vast number approach or standards in their dealings with of uncoordinated decisions. Many of these these varied influences on competition and decisions are made without any recognition the banking structure. In particular they or consideration of the major influence the note that although the effect on competition decisions themselves wield on the developis specified as a relevant factor in merger ment of our total banking structure. There is and holding company cases, the statutory certainly no attempt among the banking supervisory agencies to agree in any way on 3 D. H. Alhadeff, "Bank Mergers: Competition ver- what a logical competitive banking structure sus Banking Factors," Southern Economic Journal, vol. 29, no. 3, January 1963. would be like in any market. Clearly, since Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1257 there are no agreed-upon goals, any policy this administrative arrangement can obviate or administrative action dealing with these needless uncertainty and can avoid the danproblems can achieve a desirable result only ger that banks, their stockholders, and the by the purest chance. banking public will be injured or incon- The existing situation appears far from venienced by a subsequent "unscrambling" optimal if it is to establish the type of com- of a merged institution. petitive banking structure which Congress I believe it is also important that the bill, has indicated it desires, and which I firmly as I understand it, applies only to a merger believe to be most advantageous for our as such, and does not confer continuing anticountry. My brief experience indicates that trust exemption upon any merged instituif these goals are to be achieved, Congress tion. That is to say, if the Department of will have to give more specific instructions Justice decides not to seek to enjoin a merin the spheres of branching and chartering. ger under the antitrust laws within the period In addition I believe there will have to be a prescribed, the transaction itself is thereafter better defined and simpler procedure for immune from such attack. However, the imcoordination. munity is confined to the merger alone; if As to my personal views on the specific the bank should thereafter engage in forprovisions of S. 1698 as passed by the bidden practices or gain monopoly power, Senate, I have mixed reactions. I should the provisions of the antitrust laws would be perhaps make it clear that I was not on the applicable as in any other situation. Federal Reserve Board when it took a stand While I, therefore, support S. 1698 in on this bill, and I did not participate in the general, I am unable to support the provision Board's discussion of this matter. that would exempt from the antitrust laws Under the Bank Merger Act of 1960, the all mergers of banks that were consummated Attorney General already is apprised of each prior to the bill's enactment. I found the proposed merger at least 30 days before it statement of the Attorney General before can be approved or disapproved by the bank your subcommittee on this matter extremely supervisory agency with jurisdiction over the persuasive. I feel that he has established that particular transaction. The Attorney General this proposed section does raise a broad issue is required to make "a report on the com- of public policy and that its passage would petitive factors involved." Although I am give special treatment to a few. not familiar with the procedures of the Anti- It seems to me that if I were in the positrust Division of the Department of Justice, tion of Congress, I would be reluctant to it appears to me not unreasonable to require, take these cases out of court. The testimony in these circumstances, that a decision to before your subcommittee, including that of prosecute under the Sherman Act or the the Attorney General, indicates that the Clayton Act be made within 30 days after cases will be very few. I am not persuaded the Comptroller, the Board of Governors, or that there is any compelling reason, from the FDIC has approved a proposed bank the point of view of the banks involved or amalgamation. In effect, the Department the communities they serve, to grant a spewould have a period of at least 60 days— cial immunity from the antitrust laws for and usually longer—to decide whether to bank mergers in these cases. In the absence initiate antitrust proceedings. Without jeop- of some general principle justifying such an ardizing the public interest, it appears that immunity, questions of fairness to the par- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1258 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 TABLE 3: DENSITY OF POPULATION AND BANKING OFFICES A. TWENTY LARGEST CITIES Size of city Banks Banking offices Population Branching Popula- per Average served— per- Average served— tion l Area sq. mi. Total 2 mitted 3 Total 2 s ( a th n o d u s - ) (sq. mi.) sands) (number) Area Persons (number) Area Persons (sq. mi.) (number) (sq. mi.) (number) New York . . 7,782 315 24,705 99 3.18 78,606 Yes 881 .36 8,833 Chicago 3,550 224 15,850 82 2.77 43,832 No 82 2.73 43,298 Los Anseles 2,479 455 5,448 40 11.38 61,975 Yes 252 1.81 9,837 Philadelphia 2,003 127 15,768 23 5.52 87,066 Yes 207 .61 9,674 Detroit 1,670 140 11,930 8 17.50 208,768 Yes 170 .82 9,824 Baltimore 939 79 11,886 13 6.08 72,233 Yes 118 .67 7,958 Houston 938 328 2,860 59 5.66 16,176 No 59 5.56 15 902 Cleveland 876 81 10,815 8 10.13 109,506 Yes 86 .94 10,187 Washington 764 61 12,524 14 4.36 54,568 Yes 85 .72 8,988 St Louis 750 61 12,296 28 2.18 26,787 No 28 2.18 26,787 Milwaukee 741 91 8,146 24 3.79 30,889 No 39 2.33 19 008 740 48 15,423 19 2.53 38,964 Yes 141 .34 5,250 Boston . 697 48 14,525 29 1.66 24,041 Yes 142 .34 4,910 Dallas 680 280 2,427 43 6.67 16,183 No 43 6.51 15 807 New Orleans 628 199 3,153 6 33.17 104,588 Yes 45 4.42 13,945 Pittsburgh 604 54 11,191 12 4.50 50,361 Yes 70 .77 8,633 San Antonio 588 161 3,650 28 5.96 21,767 No 28 5.75 20,990 San Diego 573 192 2,986 10 19.20 57,322 Yes 50 3.84 11,464 Seattle 557 89 6,259 12 7.42 46,424 Yes 97 .92 5,743 Buffalo 533 39 13,660 8 4.88 66,595 Yes 80 .49 6,659 1 1960 census. NOTE.—Comparisons based on deposits are not shown because 2 As of June 30, 1964. available figures for deposits of banking offices in most of the 20 cities 3 Cities where branching is not presently allowed may have more include deposits held by offices located outside the city limits. Comoffices than banks either because of branches established under prior parisons based on deposits in Standard Metropolitan Statistical laws or because facilities may be authorized which are not full-fledged Areas (which include certain areas around cities) are given in Appendix branches. Table B. B. STANDARD METROPOLITAN STATISTICAL AREAS OF THE TWENTY LARGEST CITIES Size of SMSA Banks Banking offices Average served— Average served— Deposits SMSA Popula- (millions of dollars) tion i Area Total 2 Total 2 (thou- (sq. mi.) (number) (number) sands) (s A q. r e m a i.) ( P nu er m so b n e s r) (s A q. r e m a i.) ( P nu er m so b n e s r) Total p A e v r e o r f a f g ic e e New York 10,695 2,150 158 13.61 67,688 1,455 1.48 7,350 69,322 47.6 Chicago .... 6,221 3,714 273 13.60 22,787 273 13.60 22,787 16,697 61.2 Los Angeles 6,039 4,060 63 64.44 95,854 749 5.42 8,062 12,015 16.0 Philadelphia . . 4,343 3,549 90 39.43 48,254 547 6.49 7,939 9,235 16.9 Detroit 3,762 1,965 47 41.81 80,050 408 4.82 9,221 6,924 17.0 Baltimore 1,727 1,807 32 56.47 53,969 228 7.93 7,575 2,430 10.7 Houston 1,243 1,711 79 21.66 15,736 81 21.12 15,348 3,185 39.3 Cleveland 1,909 1,519 23 66,04 83,021 222 6.84 8,601 4,458 20.1 Washington 2,002 1,485 62 23.95 32,289 289 5.14 6,927 3,181 11.0 St Louis 2,105 4,119 135 30.51 15,590 149 27.64 14,125 4,027 27.0 ]Vtilwaukee 1,233 1,030 62 16.61 19,883 90 11.44 13,697 2,176 24.2 San Francisco 2,649 2,486 34 73.12 77,905 353 7.04 7,504 9,598 27.2 Boston 3 2,595 1,516 180 8.42 14,419 642 2.36 4,043 8,897 13.9 Dallas 1,084 3,653 97 37.66 11,171 102 35.81 10,624 3,625 35.5 New Orleans 907 2,026 20 100.30 45,356 75 27.01 12,095 1,430 19.1 Pittsburgh 2,405 3,051 51 59.82 47,165 304 10.04 7,913 5,170 17.0 San Antonio 716 1,962 35 56.06 20,462 35 56.06 20,462 910 26.0 San Diego 1,033 4,255 8 531.88 129,126 130 32.73 7 946 1,188 9 1 Seattle 1,107 4,234 26 162.85 42,585 184 23.01 6,017 2,174 11.8 Buffalo 1,307 1,587 15 105.80 87,130 159 9.98 8,220 3,218 20.2 1 1960 census. the other 19 cities involve whole counties. Source of data is on a 2 Number in Standard Metropolitan Statistical Area as of June 30, county basis; the data for Boston SMSA must therefore be an esti- 1964. mate. 3 Boston SMSA includes portions of counties, while the SMSA of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1259 ties and feasibility of divestiture plans may should be charged, as they were in the Bank properly be left to courts of equity familiar Merger Act of 1960, with considering the with the facts of each case. competitive factor—highly important though While I have been pleased to give my it is—as one of several factors in determinviews on this particular bill, it should be ing whether a merger is in the public inclear that I believe the problem which your terest. In short, on this latter point I believe subcommittee faces is broader. More is that the structure of banking should be needed than merely the single proposed im- shaped by the bank supervisory authorities provement of the administrative procedures on the basis of broad considerations of pubfor regulation of competition in banking that lic interest, not shaped by others looking this bill proposes. I believe that other serious solely toward a narrow competitive test. shortcomings exist in our current guidelines As it now stands, however, and despite the and procedures. emphasis of the legislative history in the adoption of the Bank Merger Act, the Sherman Act and the Clayton Act are construed as requiring the Attorney General Statement by J. Dewey Daane on Septem- to seek a court order to stop a merger that ber 2, 1965. he believes will diminish competition to too great a degree, even though a bank supervisory agency has approved the merger as Mr. Chairman, you have requested my being in the public interest. Since responsiviews on S. 1698. While I am afraid they bility for administering these laws—the will add little to the testimony already pre- Sherman Act, Clayton Act, and Bank sented by the many witnesses who have Merger Act—is divided among the courts, preceded me, my views can be simply stated. the Attorney General, and the three bank- I am one of the majority of the Board of ing agencies, conflicting decisions on bank Governors who agree with Chairman Marmerger cases are to be expected. This is tin in supporting all of the provisions of S. particularly true since there is as yet little 1698, principally because it would avoid agreement in or out of Government on such uncertainty and unscrambling inimical to basic questions as how the impact of a the public interest in an area of business bank merger in a market is to be measured, with special characteristics. I am also one of or even how the relevant markets are to be the majority of the Board who agreed with defined. Chairman Martin in supporting the original The Congress should not be expected to bill, for the reasons he outlined in his statement to the Senate Subcommittee on Finan- supply specific criteria when there is no cial Institutions last May. Although my ob- consensus as to what the guidelines should servation may be an academic one at this be. It is not surprising, therefore, that neither point, I still feel strongly that the approval the antitrust laws nor the Bank Merger Act of bank mergers should rest exclusively in offers much help to bankers or their lawthe hands of the bank supervisory authori- yers who are trying to discover whether ties who, as your committee pointed out in the Government will approve a proposed 1960, have a thorough knowledge of banks merger. In 1960, the House Banking and and the banking business. Those authorities Currency Committee decided against at- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1260 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 tempting to specify the "situations where a merger upon competition, if adverse, is sufmerger would benefit the public." The com- ficiently adverse as to constitute a substantial mittee report commented that "framing a lessening of competition under the antistandard to guide the supervisory agencies trust laws. Nothing in the Philadelphia case in weighing the effects of a proposed merger or the Lexington case is contrary to the conon competition" was "the most difficult task struction . . ." If responsibility is to remain [it] faced in considering the bill." The re- divided there would seem to be room in the port added that "out of the hearings one broad language of the statutes to find some principle emerged, on which all witnesses such harmonious construction. seemed to agree, as a starting point: Some Where responsibility is divided, responsibank mergers are in the public interest, even ble officials should try all the harder to though they lessen competition to a degree." reconcile their differences, to the extent that The quotations are from pages 10 and 11 of this is compatible with the discharge of their the committee report on the Bank Merger respective duties. As Governor Mitchell Act (H. Rept. 1416, 86th Cong., 2d sess.). pointed out in his testimony before this I agree wholeheartedly with the commit- subcommittee, the Board of Governors and tee report's conclusion that if the Clayton the Attorney General have achieved sub- Act is interpreted as "banning mergers hav- stantial harmony on bank mergers. Only ing a given effect on competition, regard- one merger approved by the Board has been less of the benefits flowing from the merger," challenged in court by the Attorney Genthe Clayton Act standard is not an appro- eral. Profiting from that experience, we priate test. The effect on competition should adopted a procedure under which a merger be only one factor, while often the most im- approved by the Board may not be consumportant, to be considered in reaching a mated for 7 days, so that a reasonable time balanced judgment as to whether a merger will be allowed for filing an antitrust suit, is in the public interest. if the Attorney General concludes that it is Although I am not very sanguine as to his duty to do so. Although the Board may the feasibility of harmonizing decisions un- find that its statutory mandate under the der the Bank Merger Act with the con- Bank Merger Act of 1960 requires approval flicting standards of the antitrust laws, at of a merger in the face of an imminent suit the least, as Chairman Martin pointed out to by the Attorney General under his differing you, the time left open for contradictory responsibilities in the enforcement of the positions to be taken can be limited, and is antitrust laws, I am happy to say that this limited, by this bill. Meantime perhaps some has not happened since the Manufacturersways of reconciling the statutory require- Hanover merger. And, as Governor Mitchell ments may be found. Along this line the also pointed out, we hope that as we gain Comptroller of the Currency has presented better understanding of how to analyze the an interesting argument to the Court in the competitive effects of a bank merger the Mercantile Trust—Security Trust merger possibilities of conflict will steadily diminish. case, to the effect that the Clayton Act may An even clearer possibility for moving be read in harmony with the Bank Merger closer to harmonizing standards and deci- Act, "by the Court's taking into account the sions, of course, remains open also for the banking factors enumerated in the Bank bank supervisory agencies themselves. Fre- Merger Act to determine if the effect of the quently my views are solicited on how best Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 1261 to attain and ensure this harmonization. For contacts and authorities essential to maximy part I do not view the matter as hope- mizing our own present and future contribuless despite the deficiencies of the existing tions in the monetary field. In short, the blueprint; past experience has shown it can only conclusion I can come to is that despite be workable as well as the contrary. If, how- the added workload it would entail, all of ever, one were to move in the direction of the examining, supervisory, and regulatory what on the surface appears to be a more powers relating to banks should be placed logical blueprint—a single Federal bank in the Federal Reserve System. supervisory agency—I would suggest that Pending greater harmonizing of standards the Federal Reserve System is the best locus and decisions all around, however, the pubof authority. This view reflects not simply lic is clearly entitled to protection against institutional bias, which I cheerfully con- the harmful effects of breaking up a merged cede, but a very real conviction that the bank in those cases where Government of- System not only can perform the job most ficials disagree as to the relation of the efficiently and effectively but also that the merger to the public good. Although it is supervisory job contributes to the System's argued that divestiture is possible, at least effectiveness in other areas. My own bent in those instances where the bank has a rests more in the area of credit policy, bal- number of branches, it is impossible to reance of payments, etc., than in the area of store the situation that existed before a bank supervision. Were the System to lose merger took place, and the adverse public its supervisory authority, however, the net consequences of such divestiture must be result, in my judgment, could only be some avoided. I believe, therefore, that the proweakening in the effectiveness of monetary visions of S. 1698 that would prevent conpolicy formulation and implementation. summation of a merger pending final de- Eliminating the supervisory and regulatory termination of an antitrust suit are needed, contacts would not improve our monetary notwithstanding the questions that have been policy deliberations but instead would tend raised as to whether it is fair to banks to to insulate us from reality in formulating subject their mergers to stricter antitrust conpolicy, and this could not help but be re- trols than the mergers of other businesses. flected in the implementation process as And in my view, immunity from divestiture well. It could only lead to a weakening of for the bank mergers that have already taken the regional character of the System which place should also be granted on the same I regard as a source of strength. I think ground of clear and compelling public init could make the administration of dis- terest. I think it would be a mistake to decount policy more difficult. The decentraliza- cide this question on the basis of what is tion of the System itself lends considerable fair to the litigants on either side. The banks weight to assigning the task to the System, may or may not have been entitled to share avoiding unnecessary and costly duplica- the widely held belief that their mergers tion. could not be successfully attacked under the I recognize that if the supervisory re- Sherman Act or the Clayton Act. Their sponsibility were to be centered in the Sys- lawyers who said they would assume the tem it would necessitate streamlining pro- risk of a divestiture order may or may not cedures and increasing delegation of au- deserve to lie in the bed they then made. thority by the Board while retaining those But this is not the aspect of divestiture Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1262 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 that concerns me; what concerns me is that win a contest that turned against them in breaking up the merged bank will hurt in- the end. I do not believe that this is sufficient nocent bystanders. Assets can be forcibly cause to penalize the public. transferred but not customers. Borrowers From the institutional standpoint, I conwould undoubtedly experience hardships. fess that I find it very difficult to visualize And breaking up an institution that performs reconstituting the separate banks on a viable highly specialized services for its customers, basis. And frankly I see no public interest involving confidential and fiduciary rela- to be served in attempting to do so. For tionships, creates more serious inequities in example, from my own fair degree of fathe community than those involved in re- miliarity with the financial environment of quiring a corporation that makes paint to Chicago and New York I would be surprised dispose of its interests in another corpora- to find that any real diminution of competition that manufactures automobiles. I doubt tion had followed the mergers being conthat we should ask the beneficiaries of a tested. decedent's estate to pay the court costs and I hope, Mr. Chairman, that these conlegal fees connected with court proceedings siderations of public interest will lead your to appoint a new executor or trustee, simply subcommittee to favor the approach in S. because a bank's lawyers thought they could 1698. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Legal Tender face value) of direct obligations of the United States, shall not be subject to any limitation based upon the The provision of law contained in section 43 capital and surplus of the association. (b)(l) of the Act of May 12, 1933, as amended (31 U.S.C. 462), with respect to the status of Order Under Section 3 of Bank Holding Company coins and currencies of the United States as legal Act tender for all debts, was repealed by Act of Congress approved July 23, 1965 (Public Law 89-81) The following Order and Statement were issued and was replaced by a new provision of law, read- in connection with action by the Board of Goving as follows: ernors on an application by a bank holding com- All coins and currencies of the United States pany for approval of the acquisition of voting (including Federal Reserve notes and circulating shares of a bank: notes of Federal Reserve banks and national VIRGINIA COMMONWEALTH CORPORAbanking associations), regardless of when TION, RICHMOND, VIRGINIA coined or issued, shall be legal tender for all debts, public and private, public charges, taxes, In the matter of the application of Virginia duties, and dues. Commonwealth Corporation, Richmond, Virginia, for approval of the acquisition of voting shares of Loans Secured by Direct Obligations of the First National Bank of Vienna, Vienna, Virginia. United States The Comptroller of the Currency, effective No- ORDER APPROVING APPLICATION UNDER BANK vember 3, 1964, amended the regulation pertain- HOLDING COMPANY ACT ing to Loans Made by National Banks Secured by There has come before the Board of Gov- Direct Obligations of the United States (12 CFR, ernors, pursuant to section 3(a) (2) of the Bank Part 6) so as to permit unlimited loans when Holding Company Act of 1956 (12 U.S.C. 1842 secured by any such obligations. Section ll(m) (a) (2)), and section 222.4(a)(2) of Federal Reof the Federal Reserve Act makes this regulation serve Regulation Y (12 CFR 222.4(a) (2)), an applicable also to State banks that are members of application by Virginia Commonwealth Corporathe Federal Reserve System. The regulation as thus tion, Richmond, Virginia, a registered bank holdamended reads as follows: ing company, for the Board's prior approval of the acquisition of more than 80 per cent of the voting PART 6—LOANS MADE BY NATIONAL BANKS shares of First National Bank of Vienna, Vienna, SECURED BY DIRECT OBLIGATIONS OF THE UNITED Virginia. STATES [REVISED] In accordance with section 3(b) of the Act, the § 6.1 Scope and application. (a) This part is issued by the Comptroller of the Board notified the Comptroller of the Currency Currency with the approval of the Secretary of the of receipt of the application and requested his Treasury under authority of paragraph (8) of section views and recommendation with respect to the 5200 of the Revised Statutes, as amended (12 U.S.C. application. The Comptroller recommended ap- 84), and section 321 (b) of the Act of August 23, proval of the application. 1935 (49 Stat. 713). (b) This part applies to loans made by national Notice of receipt of the application was pubbanks secured by direct obligations of the United lished in the Federal Register of April 23, 1965 States. (30 F.R. 5771), providing an opportunity for in- § 6.2 General authorization. terested persons to submit comments and views The obligations to any national banking association with respect to the proposed acquisition. The time of any person, co-partnership, association, or corporation, secured by not less than a like amount (at par or for filing such comments and views has expired, 1263 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1264 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 and all those received have been considered by the became a bank holding company on December 21, Board. 1962, through an exchange of its stock for stock IT IS HEREBY ORDERED, for the reasons set forth in five banks. At December 31, 1964,1 Applicant, in the Board's Statement of this date, that said with total assets of $20.4 million, controlled six application be and hereby is approved, provided banks operating 42 banking offices with total dethat the acquisition so approved shall not be con- posits of $260.3 million. Though Applicant's summated (a) within seven calendar days after financial history has been relatively brief, it is the date of this Order or (b) later than three considered satisfactory and its financial condition, months after said date. largely determined by the condition of its six Dated at Washington, D. C, this 27th day of subsidiary banks, is also satisfactory. August, 1965. Bank opened for business in February 1962, and presently operates its main office and one By order of the Board of Governors. branch in Vienna. Bank has been given permission Voting for this action: Unanimous, with all members to operate a second branch that would be located present. three miles northeast of Vienna. After 34 months (Signed) KENNETH A. KENYON, of operation, Bank had total deposits of $4.2 mil- Assistant Secretary. lion, the amount Bank's organizers projected [SEAL] would be attained after three years of operation. Offsetting the favorable condition suggested by Bank's deposit growth is the unfavorable circum- STATEMENT stance of its heavy loan position. At year-end Virginia Commonwealth Corporation, Rich- 1964, Bank's total loans amounted to approximond, Virginia ("Applicant"), a registered bank mately 88 per cent of deposits and more than 5 holding company, has filed with the Board, pur- times total capital accounts. These facts, and others suant to section 3(a) (2) of the Bank Holding of record, require the conclusion that Bank's Company Act of 1956 ("the Act"), an application financial history and condition are somewhat less for approval of the acquisition of more than 80 than satisfactory. per cent of the voting shares of First National Applicant's assets consist almost entirely of Bank of Vienna, Vienna, Virginia ("Bank"). shares of its six subsidiary banks. Consequently, Views and recommendation of supervisory au- Applicant's prospects depend largely upon the thority. As required by section 3(b) of the Act, prospects of these subsidiary banks, particularly, notice of receipt of the application was given to, Bank of Virginia, by far the largest in the group. and views and recommendation requested of, the Applicant has recently contributed additional cap- Comptroller of the Currency. The Comptroller ital to the Bank of Virginia. With this contriburecommended approval of the application. tion and with that bank's successful efforts, com- Statutory factors. Section 3(c) of the Act re- mencing in 1963, to reduce operating expenditures, quires the Board to take into consideration the fol- it is reasonable to conclude that the bank's proslowing five factors in acting on this application: pects are generally satisfactory. Viewing the asset (1) the financial history and condition of the hold- condition, the quality of management, and the ing company and the banks concerned; (2) their anticipated growth of each of Applicant's banks, prospects; (3) the character of their management; their prospects and those of Applicant are con- (4) the convenience, needs, and welfare of the sidered to be generally satisfactory. communities and the area concerned; and (5) Bank is located in Fairfax County, which is whether or not the effect of the acquisition would one of the fastest growing communities in the be to expand the size or extent of the bank holding Virginia portion of the Washington, D. C. Metrocompany system involved beyond limits consistent politan Statistical Area ("WMSA"). Although with adequate and sound banking, the public in- Bank's $4.2 million of deposits after less than terest, and the preservation of competition in the three years of operation reflect a deposit growth field of banking. Financial history, condition, and prospects of 1 Unless otherwise indicated, all banking data noted Applicant and the banks concerned. Applicant are as of this date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1265 reasonably commensurate with the economic west of Washington, D. C, had a 1960 population growth and development of the area in which it of 11,500. Bank, including its branch, has a prioperates, and suggest the probability of Bank's mary service area2 population of about 90,000, future successful operation as an independent in- based on the 1960 census and estimates of popustitution, the Board finds that affiliation with Ap- lation growth since that time made by the Fairfax plicant will sufficiently better Bank's prospects as County Planning Commission. Thirteen banking to lend some support for approval. offices are located in Bank's primary service area Management. Applicant's management appears in addition to Bank's two offices. Five of the capable and experienced. It is noted that its offi- thirteen offices are those of bank holding comcers serve also as the senior officers of Bank of pany subsidiaries; the remaining eight are offices Virginia. The managements of the subsidiary of four independent banks, three of which are banks also appear satisfactory—a conclusion based larger than Bank. In addition, banks in Washingprincipally upon the sound asset condition of each ton, D. C, Arlington and Fairfax Counties, and of the banks. the cities of Alexandria, Fairfax, and Falls Church, At the time this application was filed, Bank had are fairly convenient to those businesses and infive senior officers, only one of whom was an dividuals located in Bank's primary service area, active operating officer. This officer was the only and to residents thereof who work in the areas one of the five senior officers who had previous mentioned above. banking experience prior to their association with Applicant asserts several benefits that it believes Bank. Subsequent to the filing of the application, would accrue to the public as a result of its acquisithis one officer has left the Bank. In order to pro- tion of Bank. According to Applicant, the provide Bank with essential top management, Appli- posed affiliation would result in Bank's having cant has loaned one of its subsidiary's operating immediate access to advice and assistance from officers to Bank where he is presently serving. It Applicant regarding the furnishing of specialized is proposed that if this application is approved, banking services, and a source of management this officer will continue in his position as chief personnel which would enable Bank to offer imexecutive officer of Bank, but that, if the applica- mediately a more complete line of services and, tion is denied, this officer will return to his former in turn, to develop a service potential that would position in Applicant's system. The foregoing ar- assure its ability to meet the further needs for rangement whereby Bank has been assured, at banking services which are anticipated as Bank's least on a temporary basis, top management direc- primary service area expands and develops. tion, exemplifies the type of assistance that The record before the Board reflects that, in the Applicant can, and has, rendered to the banks areas concerned, the public presently has conwithin its system. Bank's affiliation with Applicant, venient alternative banking sources that are adeas proposed, offers reasonable assurance of the quately serving the needs of those areas. However, installation and continuity of competent, experi- the Board concurs in Applicant's position that enced, executive management, as well as access to Bank's proposed affiliation with Applicant would needed, second line management talent. Although better somewhat Bank's ability to offer a more Applicant's proposal is not the only solution to complete line of services to the public. Accord- Bank's managerial problem, it appears to be an ingly, considerations bearing on the convenience immediate and reasonable solution. Accordingly, and needs of the areas involved are consistent with Applicant's proposal in respect to management approval of the application, and offer some weight succession at Bank constitutes a somewhat favor- for such approval. able consideration toward approval of the applica- Effect of proposed acquisition on adequate and tion. sound banking, public interest, and banking com- Convenience, needs, and welfare of the com- petition. The principal market areas involved in munities and the area concerned. Bank and its one the Board's determination of the probable combranch are located in Vienna, Fairfax County, petitive effects of Applicant's proposal encom- Virginia. The population of Fairfax County has increased by an estimated 55,000 over its 1960 2 The area from which 79 per cent of its IPC defigure of 275,000. Vienna, situated about 15 miles posits are derived. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1266 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 pass the City of Vienna in Fairfax County and the of the deposits of all banks in the State and in the Virginia-D.C. portion of the WMSA. Virginia-D.C. portion of the WMSA. Following None of Applicant's subsidiary banks' offices are Applicant's acquisition of Bank, Applicant would located in Bank's primary service area, and none remain the fourth in size of the banking orgacompete to any measurable extent with Bank. The nizations in Virginia, controlling less than 6 per closest to Bank of an office of Applicant's banks cent of the bank deposits in the State. Bank holdis in Springfield, Virginia, about 11 miles from ing company subsidiaries, combined, would control Bank's location. There are several other banking approximately 26 per cent of such deposits. offices situated between these offices. The Board In the Virginia portion of the WMSA, which concludes that the elimination or foreclosure of portion includes Arlington and Fairfax Counties competition between Bank and Applicant's sub- and the cities of Alexandria, Fairfax, and Falls sidiaries is not a consideration adverse to approval Church, four holding company groups * operate. of this application. Following consummation of Applicant's proposal, At June 30, 1964, Bank operated 14.3 per cent the percentage of the deposits in that area con- (2 of 14) of the banking offices and held 7.2 per trolled by these groups would increase from 73.5 cent ($3.5 of ,$47.8 million) of the total deposits to 74.2. While these data reflect a considerable in its primary service area. Bank is substantially concentration of banking resources in holding smaller than five of the other seven banks with company groups, any potentially adverse effect offices in its primary service area, and is the small- from such concentration is significantly lessened est of the banks with offices in Vienna. All banks, by the fact earlier mentioned of the extent to other than Bank, with offices in Vienna are af- which banks in Washington, D. C, serve the area filiated with bank holding companies. There is no under discussion. Within the Virginia-D.C. porreason to believe that Applicant's acquisition and tion of the WMSA, the four holding company operation of Bank will afford Bank any signif- groups now control 72 banking officers and comicantly competitive advantage over banks located bined deposits of $648 million, or 24.2 per cent in its primary service area. The Virginia banks of the deposits of all banks in the area. Consumthat are located outside of Bank's primary serv- mation of this proposal would increase the total ice area, but that are competing therein, have met deposits controlled by holding company groups the competition offered both by subsidiaries of by only 2/10 of 1 per cent. the two bank holding companies located in Bank's Measured within the geographic area last disservice area and by banks in Washington, D. C, cussed, the degree to which banking resources Arlington, and Alexandria that compete for ac- would be concentrated in holding company groups, counts originating within Bank's service area. No were Applicant's acquisition of Bank to be conadverse competitive effect on the aforementioned summated, is not viewed by the Board as a conbanks is reasonably foreseen following consumma- sideration requiring denial of the application. In tion of Applicant's proposal. sum, the Board concludes that Applicant's acquisi- Applicant's subsidiary banks hold combined de- tion of Bank would not expand the size or extent posits of $261.7 million.3 Applicant's acquisition of Applicant's system beyond limits consistent of Bank would increase this figure to $265.9 mil- with adequate and sound banking, the public inlion. There has been approved a merger of Farm- terest, and the preservation of competition in the ers Bank of Boydton, Boydton, Virginia (deposits field of banking. of $3.4 million), into Applicant's Bank of Vir- On the basis of all relevant facts as contained ginia. Consummation of this merger would bring in the record before the Board, and in light of the the aggregate deposits of Applicant's banks to factors set forth in section 3(c) of the Act, it is $269.3 million. Bank's deposits represent, re- the Board's judgment that the proposed acquisispectively, less than 1/10 and 2/10 of 1 per cent tion would be consistent with the public interest and that the application should therefore be approved. 8 Includes $1.4 million of deposits acquired as a result of the merger on May 17, 1965, of The Guardian National Bank of Fairfax County, Spring- 4 Three are registered bank holding companies, the field, into Bank of Prince William, Woodbridge. fourth is a nonregistered bank holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1267 LAW DEPARTMENT Orders Under Bank Merger Act IT IS HEREBY ORDERED, for the reasons set forth in the Board's Statement of this date, that said The following Orders and Statements were is- applications be and hereby are approved, prosued in connection with actions by the Board of vided that the transactions shall not be consum- Governors with respect to applications for ap- mated (a) within seven calendar days after the proval of the merger, consolidation, or acquisition date of this Order or (b) later than three months of assets of banks: after said date. Dated at Washington, D. C, this 13th day of August, 1965. CITIZENS TRUST AND SAVINGS BANK, By order of the Board of Governors. SOUTH HAVEN, MICHIGAN Voting for this action: Unanimous, with all members present. In the matter of the applications of Citizens Trust and Savings Bank for approval of consolida- (Signed) KARL E. BAKKE, tion with The Fruit Growers State Bank of Sauga- Assistant Secretary. tuck, Michigan., and for approval of acquisition of [SEAL] assets of The Old State Bank. STATEMENT ORDER APPROVING CONSOLIDATION OF BANKS AND ACQUISITION OF BANK'S ASSETS Citizens Trust and Savings Bank, South Haven, Michigan ("South Haven Bank"), with total de- There has come before the Board of Governors, posits of about $19 million, has applied, pursuant pursuant to the Bank Merger Act of 1960 (12 to the Bank Merger Act of 1960 (12 U.S.C. § 1828 U.S.C. 1828(c)), applications by Citizens Trust (c)), for the Board's prior approval of its conand Savings Bank, South Haven, Michigan, a State solidation with The Fruit Growers State Bank of member bank of the Federal Reserve System, for Saugatuck, Mich., Saugatuck, Michigan ("Saugathe Board's prior approval of: (1) the consolida- tuck Bank"), and of its acquisition of the assets tion of that bank and The Fruit Growers State and assumption of the liabilities of The Old State Bank of Saugatuck, Mich., Saugatuck, Michigan, Bank, Fennville, Michigan ("Fennville Bank"), under the charter and name of the applicant (as with deposits of about $6 million and $2 million, an incident to the transaction, the sole office of the respectively.1 As an incident to the transaction, the Saugatuck bank would become a branch of the offices of Saugatuck Bank and Fennville Bank applicant bank); (2) its acquisition of the assets would become branches of South Haven Bank, inand assumption of the liabilities of The Old State creasing the number of its offices from 2 to 4. Bank, Fennville, Michigan. As an incident to the Under the law, the Board is required to conlatter transaction, the applicant has applied, under sider, as to each of the banks involved, (1) its section 9 of the Federal Reserve Act, for the financial history and condition, (2) the adequacy Board's prior approval of the establishment of a of its capital structure, (3) its future earnings branch at the location of the sole office of the prospects, (4) the general character of its manage- Fennville bank. Notices of the proposed conment, (5) whether its corporate powers are consolidation and the proposed acquisition of assets sistent with the purposes of 12 U.S.C, Chapter 16 and assumption of liabilities, in form approved by (the Federal Deposit Insurance Act), (6) the the Board, have been published pursuant to the convenience and needs of the community to be Bank Merger Act. served, and (7) the effect of the transaction on Upon consideration of all relevant material in competition (including any tendency toward the light of the factors set forth in said Act, in- monopoly). The Board may not approve the transcluding reports furnished by the Comptroller of actions unless, after considering all of these the Currency, the Federal Deposit Insurance Cor- factors, it finds the transactions to be in the public poration, and the Attorney General on the com- interest. petitive factors involved in the proposed transactions, 1 Deposit figures are as of December 31, 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1268 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Banking factors. The financial histories of the icies of the bank's management, the routine bankproponent banks are satisfactory, and each bank ing needs of many people are not being adequately has a satisfactory asset condition and an adequate met. Further, the increased single loan limit of capital structure. South Haven Bank has a good South Haven Bank resulting from the consolidaearnings record and favorable future earnings tion with Saugatuck Bank would be of some beneprospects; the earnings record and future earnings fit for each of the communities involved. prospects of Fennville Bank are satisfactory. The Competition. The service area 2 of South Haven earnings of Saugatuck have been only fair and its Bank overlaps slightly the service areas of Saugafuture earnings prospects appear to be unfavorable. tuck Bank and Fennville Bank, and the town of The death of the senior executive officer of Sauga- Fennville lies within the service area of Saugatuck tuck Bank has resulted in a management succes- Bank. A relatively large (deposits of $31 million) sion problem that is made more difficult by the and aggressive bank headquartered in Zeeland rebank's earnings problem. The president of Fenn- cently established a branch in Douglas, 2 miles ville Bank, a family-owned institution, recently south of Saugatuck, and has a branch at Hamilsuffered a serious illness and will not resume the ton on the periphery of Saugatuck Bank's service responsibility of operating the bank as an indearea. There are offices of three commercial banks, pendent unit. The management of South Haven all larger than South Haven Bank, in Holland, 11 Bank is strong and has adequate depth. In addition miles north of Saugatuck, and two much larger to capable management, the resulting bank would Kalamazoo banks (total deposits of $126 million have a sound asset condition, an adequate capital and $86 million, respectively) have branches in structure, and good future earnings prospects. Allegan, 15 miles southeast of Fennville. Offices There is no indication that the corporate powers of these and other competing, or potentially comof the banks are, or would be, inconsistent with peting, banks surround the combined service areas the purposes of 12 U.S.C., Chapter 16. of the proponent banks. Although the proposed Convenience and needs of the communities. transactions would eliminate a small amount of South Haven, Michigan, is located on the eastern competition between the banks involved and inshore of Lake Michigan, about 40 miles west of crease the deposit holdings of South Haven Bank Kalamazoo, and has a population of slightly over by about $8 million, it does not appear that bank- 6,000. The area's economy is dependent on local ing competition in the relevant area would be industry, agriculture, and summer resort business. adversely affected; indeed, it seems probable that Bloomingdale, Michigan, the site of South Haven banking competition would be enhanced in the Bank's branch, is 19 miles east of South Haven long run. and has a population of about 500; its economy is Summary and conclusion. The proposed transalmost entirely dependent on agriculture. Saugatuck is 20 miles north of South Haven and has a actions would not adversely affect any bank, but population of about 900; although there is some potentially more effective competition for the local industry, its economy is largely dependent on larger banks in the relevant area would result. summer tourism and agriculture. Fennville (popu- South Haven Bank would provide expanded lation 700) is 18 miles northeast of South Haven banking services which would be of some benefit and 10 miles southeast of Saugatuck. The local to the banking public in Saugatuck and of sigeconomy is principally dependent on agriculture. nificant benefit to customers of Fennville Bank. South Haven Bank would make available Further, the proposed transactions would resolve through the offices now operated by Saugatuck the management succession problems at Fennville Bank and Fennville Bank a broader range of Bank and at Saugatuck Bank, where the problem banking services than is presently provided there. appears to be more significant. Among others, South Haven Bank would provide Accordingly, the Board finds that the proposed trust services and the services of its agricultural transactions would be in the public interest. representative. The most significant and immediate benefit for the banking public would appear to be 2 The area from which a bank derives 75 per cent in the area now served by Fennville Bank where, or more of its deposits of individuals, partnerships, because of the restrictive and nonprogressive pol- and corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1269 NEW JERSEY BANK AND TRUST COM- Board's prior approval of the merger of that bank PANY, CLIFTON, NEW JERSEY and Wayne State Bank, Wayne, New Jersey ("State Bank"), which has total deposits of $8 In the matter of the application of New Jersey million.1 The banks would merge under the charter Bank and Trust Company for approval of merger and title of Jersey Bank, which is a member of the with Wayne State Bank. Federal Reserve System. As an incident to the merger, the two offices of State Bank would be- ORDER APPROVING MERGER OF BANKS come offices of Jersey Bank, increasing the number of its authorized offices from 18 to 20. There has come before the Board of Governors, Under the law, the Board is required to conpursuant to the Bank Merger Act of 1960 (12 sider, as to each of the banks involved, (1) its U.S.C. 1828(c)), an application by New Jersey financial history and condition, (2) the adequacy Bank and Trust Company, Clifton, New Jersey, a of its capital structure, (3) its future earnings State member bank of the Federal Reserve System, prospects, (4) the general character of its manfor the Board's prior approval of the merger of agement, (5) whether its corporate powers are that bank and Wayne State Bank, Wayne, New consistent with the purposes of 12 U.S.C, Ch. 16 Jersey, under the charter and title of the former. (the Federal Deposit Insurance Act), (6) the con- As an incident to the merger, the two offices of venience and needs of the community to be served, Wayne State Bank would become branches of the and (7) the effect of the transaction on competiresulting bank. Notice of the proposed merger, in tion (including any tendency toward monopoly). form approved by the Board, has been published The Board may not approve the proposed merger pursuant to said Act. unless, after considering all of these factors, it Upon consideration of all relevant material in finds the transaction to be in the public interest. the light of the factors set forth in said Act, in- Banking factors. The financial history and concluding reports furnished by the Comptroller of dition of Jersey Bank and State Bank are satisthe Currency, the Federal Deposit Insurance Corfactory. Jersey Bank's capital structure is adequate, poration, and the Attorney General on the comas is its management, and its earnings prospects petitive factors involved in the proposed merger, are favorable. State Bank opened for business a IT IS HEREBY ORDERED, for the reasons set forth little more than three years ago. Its capital strucin the Board's Statement of this date, that said ture is satisfactory and the growth of the bank application be and hereby is approved, provided has exceeded original projections, but has not that said merger shall not be consummated (a) been based on broad community support. Earnwithin seven calendar days after the date of this ings have been slightly above average for banks Order or (b) later than three months after said of its class, but the bank has achieved this result date. by avoiding loans which require specialized per- Dated at Washington, D. C, this 3rd day of sonnel, and by purchasing a high proportion of September, 1965. its portfolio from other banks. Earnings of State By order of the Board of Governors. Bank would probably continue to be satisfactory, Voting for this action: Chairman Martin, and Govwere the application denied. ernors Balderston, Shepardson, Mitchell, and Daane. Voting against this action: Governors Robertson and Management of State Bank has rested chiefly Maisel. in the hands of its president, a man of dominant (Signed) KENNETH A. KENYON, personality but not a professional banker, who is Assistant Secretary. beyond normal retirement age. The bank has been [SEAL] unable to solve the problem of obtaining a satisfactory full-time executive officer who can work with the president. Were the proposal consum- STATEMENT mated, Jersey Bank would be able to supply ap- New Jersey Bank and Trust Company, Clifton, propriate executive personnel. While the problem New Jersey ("Jersey Bank"), with total deposits could undoubtedly be solved in other ways, this of $319 million, has applied, pursuant to the Bank Merger Act of 1960 (12 U.S.C. 1828(c)), for the 1 Deposit figures are as of June 30, 1965. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1270 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 factor provides some slight support for approval Were State Bank to remain as an independent of the application. institution, local customers would have a choice The condition of the resulting bank would be of banking services from a wider range of sources. sound, its capital structure satisfactory, its earnings However, State Bank has been making very little prospects favorable, and its management com- effort to serve community needs. These needs can petent. Neither the corporate powers of the two be allocated, roughly, to three strata. The largest existing banks nor those of the resulting bank are, customers, represented by such national firms as or would be, inconsistent with the purposes of 12 U.S. Rubber Company, American Cyanimid, U.S.C., Ch. 16. W. R. Grace and Company, and Owen-Illinois Convenience and needs of the communities. On Glass Company, have requirements far beyond a map, Passaic County shows a wasp-waisted or the capacity of any of the county's banks. No rehourglass figure. The only banking offices in the arrangement of local banking facilities is likely to northern and larger portion, which is mainly rural, make any difference to their convenience and are those of First National Bank of Passaic County needs. ("First National"), the second largest bank in the A second stratum contains customers whose county. The southeastern two-thirds of the needs are within the capacity of either Jersey southern portion, where Jersey Bank's offices are Bank or First National to serve, but who are far scattered, is densely populated and heavily indus- larger than a $8 million bank can hope to deal trialized, with the older manufacturing cities of with, even on a participation basis. This stratum Paterson and Passaic losing inhabitants to the would contain some local industrial concerns, real growing residential sectors of Wayne Township. estate developers, merchants in need of substantial Because State Bank is too small for consumma- floor-plan credit, and the like. While customers in tion of the proposal to affect the services the larger this stratum can, and undoubtedly do, range over bank can render, the effects of the merger would Passaic and neighboring counties for alternative be felt only in Wayne Township. sources of banking services, the presence of a sec- Wayne, the middle ground, covers about 25 ond bank capable of serving them, within Wayne square miles and lies just south of the county's Township itself, will contribute, to some extent, narrow waist. While it is the fastest growing area to their convenience. in the county, with a number of new industrial However, it is the third stratum whose needs parks and residential developments, it remains and convenience are most directly concerned in the almost completely fragmented as to its commercial proposed merger. This group includes individual life, with neighborhood instead of regional shop- homeowners in need of mortgages, customers ping centers, and inconvenient local road commu- wanting installment loans to purchase automobiles, nication. As a result, the head office of State Bank appliances, and for other purposes, small comserves very little more of the township than the mercial and industrial concerns, and the like. State two miles surrounding it. State Bank's new branch, Bank has chosen not to attempt to serve this maroperating in a trailer on the site of a projected ket. The bank has no FHA or GI mortgages, and shopping center which, it is claimed, will be the has generally avoided committing bank funds in world's largest, serves only a very limited area at the mortgage market. Such few mortgages as it present. has made were accommodations to customers The township's banking needs are being met, to connected with the board of directors. It has made a considerable extent, by two offices of First Na- few automobile loans in the community, preferring tional, a $305 million bank capable of meeting to purchase paper from other institutions. Indeed, the needs of all but the largest customers located it has followed a similar policy as to all loans, in the county. Jersey Bank, with four offices originating only a minor portion in Wayne, oblocated not far across the township border, also taining some from directors' contacts outside the offers a full range of banking services. Five other community, and purchasing a large majority. In banks located in Passiac County, ranging in size sum, only about 20 per cent of the bank's total from $98 to about $11 million, as well as several loan volume is derived from its own community. in neighboring counties, are reasonably accessible Jersey Bank has specialized in mortgage and into Wayne customers. stallment lending, and would provide a genuine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1271 alternative for customers who do not wish to bank different policies. However, such competition has with First National and for whom it is, perhaps, not developed, nor does it seem likely to develop something more than inconvenient to bank outside unless State Bank were radically to alter its their own community. policies. Competition. As discussed above, Passiac The relative absence of competition between County is served by eight banks, Jersey State and State Bank and Jersey Bank is evidenced by a First National in the $300 million class, and the number of circumstances. First, the smaller bank others ranging downward from $100 million. In has not developed business in Wayne beyond the addition, banks in neighboring counties compete immediate environs of its home office. The balance in Passiac, as do, to a considerable extent, larger of the township has remained unaffected. Second, New York City and other metropolitan banks about three-quarters of Jersey Bank's loans in which actively advertise, in newspapers and on Wayne are mortgages, a type of loan which State radio and television, for business over the entire Bank generally avoids. Of these, more than half area, and are accessible by mail and to commuters originated before State Bank opened for business, from the county and from Wayne, itself. and about 60 per cent were made to home pur- Nevertheless, despite customer mobility, par- chasers moving from Jersey Bank's service area 2 ticularly as to larger accounts, and the fact that in lower Passiac County into Wayne Township. banking connections may be made elsewhere by In fact, according to the 1960 Census, about 40 commuters or by mail, office location is probably per cent of the persons moving into Wayne during still a dominant factor in banking competition, at the five preceding years came from Passiac, Paterleast as to the lower and middle strata described son, or Clifton, all in Jersey Bank's service area. above. However, under present State law, it is Customer inertia, and the failure of the smaller extremely difficult for meaningful office competi- bank to make any real effort to attract their busition to occur, especially in smaller communities, ness, have evidently caused Jersey Bank's cusor in developing areas, such as Wayne. Under the tomers to leave their accounts with their former local form of office protection, only a bank head- bank on moving to Wayne. quartered in a municipality can establish a de novo It is a disturbing factor in the competitive picbranch there if any other bank already has an ture that effectuation of the proposal would inoffice in the community. Thus, local office com- crease, although to an insubstantial extent, the petition for First National in Wayne is limited to proportion of county loans and deposits held by that State Bank can provide, a burden the smaller the slightly larger of the two largest banks in bank is unable to assume. Its single new branch Passiac County. Jersey Bank's share of IPC3 is operating at a loss, despite the loan of paid per- deposits will rise from 36.5 to 37.3 per cent, and sonnel from Jersey Bank, and it lacks resources of total loans from 38.2 to 39.2 per cent, as opto open another. Moreover, the record indicates posed to First National's 33 per cent of IPC that competitive tactics of First National have deposits and 32.3 per cent of loans. Banking conbeen aggressively calculated to prevent the smaller centration in the county will be increased, and the bank from establishing itself on a firm community only small independent bank in an area dominated basis, even had it shown a healthier disposition to by First National will disappear. However, under do so. present State law, there seems to be no other way That the community would welcome competi- in which meaningful banking competition can be tion for First National is shown by the amount provided through offices located in Wayne. of business Jersey Bank drew from Wayne before It does not appear that consummation of the State Bank was established. Partly because of the merger will have any adverse competitive effect on extent of this business, amounting to $4 million the remaining banks located in southern and southin some three thousand deposit accounts and $6 eastern Passiac County, which are already commillion in over a thousand loans, and partly be- peting successfully with Jersey Bank. cause of the location of four Jersey Bank offices near Wayne's borders, there would have been a 2 The area from which a bank derives 75 per cent or more of its deposits of individuals, partnerships, potentiality for substantial competition between the and corporations ("IPC" deposits). two banks, had the smaller institution followed 3 Based on data for December 31, 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1272 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Summary and conclusion. While consummation competition occurs. And the potential for future of the merger would increase banking concentra- competition, were the application denied, is far tion in Passiac County, this effect is more apparent stronger. than real, due to the failure of State Bank to The majority complains that State Bank is not provide meaningful competition for either of its competing in a vigorous healthy way, and is not larger neighbors. Under State law, a merger of this serving the needs of its community, as if this were kind is the only means by which First National's an unalterable state of affairs. The fact remains, virtual local-office monopoly can be broken, and however, that some competition is far greater than the entrance of a second large and vigorous bank none. Even if one assumes that State Bank's board into the community will improve both the com- of directors has determined to dispose of the bank, petitive picture and the way in which community it is plain that they have a very attractive, salable needs and convenience are served. A management article. A location in what is advertised to become problem in the smaller bank will incidentally be a giant shopping center is inherently very desirsolved. able. Given, in addition, the projected growth of Accordingly, the Board finds that the proposed Wayne Township, and that a location there is merger would be in the public interest. protected from much competition, what State Bank's directors have to sell becomes extremely valuable. That this is so is demonstrated by the DISSENTING STATEMENT OF GOVERNOR MAISEL premium offered by Jersey Bank, the highest ever IN WHICH GOVERNOR ROBERTSON CONCURS to come before the Board in a merger application. It is difficult to understand, let alone to justify, The record shows that this high offer was made the decision announced today by the Board, which to outbid other institutions anxious to acquire grants the two largest banks in Passiac County a State Bank. duopoly position in the county's fastest growing There can be no doubt that, if the application market. There is general agreement that nothing were denied, a less dominant Passiac County bank in the banking factors justifies this merger. On the would be found willing to purchase on satisfactory other hand, the competitive factors are strongly terms and merge State Bank. After all, at least two adverse. Under New Jersey law, once this merger of the others are in the $75 to $100 million class, is consummated no third bank can enter Wayne not exactly Lilliputians. Thus, denial of the ap- Township except for a bank that is newly organ- plication would assure Wayne Township of conized. Prospects for establishing a new local com- tinuing access to three banks located in it or so petitor, when two large banks are so firmly en- close to the line as to be conveniently available. trenched in the field, seem very unpromising. There are two troubling fallacies in the major- Today, three banks are competing in Wayne ity's reasoning, both indicating a failure to analyze Township, one of them, the acquiring bank in the and apply what Congress meant by "the effect of application before the Board, very effectively from the transaction on competition (including any just across the township line. The smaller bank, it tendency toward monopoly)". The first, and by far is true, may not be competing with great energy. the most important, is the assumption—not only But it is an alternative source of banking services, here, but in earlier decisions on merger applicait is competing, and, in fact, is making money. tions—that competition is improved by increas- The amount of loans and deposits which Jersey ing the size of the competing banks. This argu- Bank and State Bank draw from one another's ter- ment has perhaps been made most often where the ritory is evidence that competition exists. State bank to be aggrandized is already one of the Bank offers more attractive rates to individual cus- largest in the community, and is particularly tomers both with respect to interest on savings fallacious in such a case. The Board is to concern deposits and charges on checking accounts, than itself with competition in respect to its effect on Jersey Bank does; this is competition. In fact, community welfare. The competition offered by a whenever a member of the public, Mr. A. or Mrs. pair of powerful banks is of a different character X, makes a choice whether to drive to an office and does not have the therapeutic effect on the of State Bank or First National, or just across the public welfare usually implied by the term comline to an office of Jersey Bank in, say, Haledon, petition. This is particularly true as to customers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1273 in the lower and lower-middle strata described by compete effectively within the township, despite the majority. A third choice for these groups is myriad intervening offices! certain to be better than only two. In sum, what the majority has done is to grant The second fallacy is a weakness for having an assured duopoly position in a protected market things both ways. In other statements on merger to the two largest banks already present there, on applications, where the question was whether of- the pretext that this will "improve competition" fices of two merging banks were in competition, by eliminating a small bank that has failed to exert the majority has solemnly stated that the fact that itself. This has been done in the face of the offices of other banks were located in between the virtual certainty that a more eligible applicant two prevented any serious amount of competition would have appeared if the application had been from occurring. Here, where the question is denied, and that the merger will foreclose the poswhether Wayne Township will be subject to a sibility of a stronger, third competitor appearing in duopoly if the application is approved, the majority Wayne Township for quite some time in the with equal solemnity assures us that banks out- future. side Passiac County, and even in New York City, I would disapprove the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements ELECTION OF DIRECTOR ton, D.C. 20551. Remittance should accompany The Federal Reserve Bank of Kansas City on order and be made payable to the order of the August 31 announced the election of Kenneth H. Board of Governors of the Federal Reserve Sys- Peters as a Class A director of the Bank to serve tem (prices shown on page 1363). for the remainder of a term expiring December 31, 1967. Mr. Peters is President, The State Bank SUPPLEMENT TO BANKING AND MONETARY of Larned, Larned, Kansas. As a director of the STATISTICS Kansas City Bank he succeeds Mr. William S. Consumer credit statistics covering periods from Kennedy, who died June 7, 1965. 1919 through 1963 are contained in a new pamphlet now available, "Consumer Credit," Section 16 FEDERAL FUNDS (New) of Supplement to Banking and Monetary Trading in Federal Funds—Findings of a Three- Statistics. This pamphlet also includes detailed Year Survey, by Dorothy M. Nichols, is available descriptions for components of the consumer for distribution. credit series. Copies may be obtained from the This is the second technical paper on the Division of Administrative Services, Board of Federal funds market to be published by the Governors of the Federal Reserve System, Wash- Board and presents some major findings of a surington, D. C. 20551 (prices shown on page vey of daily transactions in Federal funds from 1363). data supplied by nearly 250 banks throughout the country for three full years ending in September REVISIONS IN INDUSTRIAL PRODUCTION INDEXES 1962. These data also provided a basis for the The Board's industrial production indexes have development of the continuing series on Federal been revised back to January 1964 incorporating funds now being shown in the BULLETIN and in some revisions in seasonal adjustment factors and statistical releases on the reserve positions of in basic figures for certain series. Data for color selected banks. The approach in the paper is television receiving sets have been added to the mainly descriptive, with emphasis on variations console television series; these changes and the in the size and distribution of flows of Federal funds. It shows the continued growth in the im- other revisions have been carried through to all portance of these transactions in the money mar- components and the total index. The 1964 reviket and the key role of certain groups of banks sions have been combined with a reprint of the both because of their activities in maintaining a pamphlet Industrial Production Indexes for 1961wide and flexible market for Federal funds and 63. This pamphlet has been distributed with the because of the influence of their reserve positions September 1965 Business Indexes (G. 12.3). on the supply of and demand for these funds. Copies are available on request to Division of Requests for copies should be sent to the Divi- Administrative Services, Board of Governors of sion of Administrative Services, Board of Gov- the Federal Reserve System, Washington, D. C. ernors of the Federal Reserve System, Washing- 20551. 1274 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication September 15 Industrial production changed little in August, the July rate. Production of home goods and following sizable increases in June and July. Em- apparel changed little, while output of consumer ployment rose somewhat further, but the unem- staples increased somewhat. In the business equipployment rate remained at 4.5 per cent. Retail ment industries, output of commercial and indussales declined slightly. Construction activity re- trial machinery continued to set new records. mained at an advanced level. Bank credit rose in Iron and steel production declined 4 per cent in August, after a decline in July. The money supply August and, following settlement of the wage conincreased moderately and time and savings depos- tract on September 5, output has fallen off furits rose sharply. Between mid-August and mid- ther. Production of some construction materials September, yields rose on public and private and nondurable materials increased somewhat. bonds; stock prices advanced in unseasonably active trading. CONSTRUCTION New construction put in place in August re- INDUSTRIAL PRODUCTION mained near the record seasonally adjusted annual Industrial production in August was 144.4 of rate of $69 billion reached in June. Private resithe 1957-59 average, compared with a revised dential construction, which had shown some re- July level of 144.2 per cent. The August figure covery in the first half of the year, continued to was 8 per cent above a year ago. Declines in iron edge off. Business construction expenditures conand steel output were offset by some further in- tinued to increase, however, and public construccreases in other industrial materials and business tion—revised downward to show a 3 per cent equipment. The 0.4 per cent upward revision in decrease for July—returned to its advanced June the July index reflected in part revisions in data level. for some series extending back to January 1964. EMPLOYMENT Output of consumer goods was maintained in Nonfarm employment increased further in Au- August at the advanced levels prevailing since the gust, but the increase was less than in recent beginning of the year. Auto assemblies, after months reflecting a leveling off in durable goods allowance for the model changeover, continued at manufacturing. Declines in primary and fabricated metals were largely offset by advances in INDUSTRIAL PRODUCTION other metal-working industries. Increases in non- 1957-59-100 manufacturing employment were widespread. The average workweek in manufacturing was 40.9 hours, almost the same as in the preceding two months and Vi hour below the high first quarter average. The unemployment rate was unchanged at 4.5 per cent. AGRICULTURE Favorable weather during August improved pastures and raised prospective crops by 1 per cent. September 1 indications are for an output increase of 7 per cent over last year and 4 per cent above the previous high of 1963. Record corn and soybean harvests are in prospect and the cotton crop, estimated at 15.1 million bales, is almost F.R. indexes, seasonally adjusted. Latest figures shown are equal to that of last year. for August. 1275 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1276 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Meat production rose in August and was 2 per annual rate of increase was about 10 per cent, or cent above last August following four months of about the same as earlier this year. In August, output below year-earlier rates. Increases in beef loans and holdings of municipal and agency secuand poultry were responsible for the improved rities rose substantially and holdings of U.S. Govsupply. ernment securities increased moderately. The money supply rose less than in the two previous COMMODITY PRICES months. Expansion in time and savings deposits The industrial commodity price index changed at commercial banks accelerated, however, to little from mid-August to mid-September, although about the high rate of the first two months of the price increases were announced for some machine year. U. S. Government deposits declined sharply. tools and a number of paper products. Copper Seasonally adjusted total and required reserves scrap advanced while steel scrap declined. Wholedeclined in August following increases over the sale prices of livestock and meats fell in response two previous months. Member bank borrowings to increased supplies. continued to rise but excess reserves also increased, resulting in some decline in net borrowed reserves. DISTRIBUTION Retail sales in August declined 1 per cent according to advance estimates. Substantial declines SECURITY MARKETS occurred at furniture, appliance and apparel stores. Yields on corporate and State and local bonds Smaller declines were widespread among non- as well as on short- and long-term U.S. Governdurable goods stores. Sales of new autos continued ment securities rose between mid-August and midat the relatively high June and July rates. Total September. The 3-month Treasury bill advanced retail sales had increased in July, and the value of from about 3.80 per cent to about 3.90 per cent. July-August sales averaged 2 per cent larger than In mid-September U.S. Government and corpoin the second quarter. rate bond yields were at the highest levels since early 1960 while yields on municipal bonds were BANK CREDIT, MONEY SUPPLY, AND RESERVES the highest since early 1962. Seasonally adjusted commercial bank credit rose Common stock prices advanced in active trad- $4.5 billion in August following a small decline in ing and by mid-September were only slightly be- July. In the three months through August, the low their all-time high of mid-May. INTEREST RATES PRICES LONG-TERM GOVERNMENT SECURITIES v ^ r | F.R. DISCOUNT RATES \ NONFOOD COMMODITIES {, / " TREASURY BtlLS [ I i - - SERVICES V I I I! [ FARM PRODUCTS 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, July; for wholesale prices, August estimates. shown, week ending Sept. 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation p Preliminary IPC [ndividuals, partnerships, and corporations SMSA Standard metropolitan statistical area r Revised 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. 1965 1340 1278 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. 1280 Reserve Bank discount rates; margin requirements; reserve requirements 1285 Open market transactions; Federal Reserve Banks. 1287 Bank debits; currency in circulation. 1290 Money supply; banks and the monetary system. 1292 Commercial and mutual savings banks, by classes. 1294 Commercial banks, by classes 1298 Weekly reporting member banks. 1300 Business loans 1303 Interest rates . . 1304 Security prices; stock market credit; open market paper 1305 Savings institutions 1306 Federal finance. . 1308 Federally sponsored agencies. 1313 Security issues 1314 Business finance. 1317 Real estate credit 1319 Consumer credit 1322 Industrial production. 1326 Business activity; construction. 1330 Employment and earnings. 1332 Wholesale and consumer prices 1334 National product and income series. 1336 Flow of funds. 1338 Stock market credit 1340 Guide to tabular presentation. 1278 Index to statistical tables 1365 The data for F.R. Banks and member banks and eral finance, and Federal credit agencies are obfor consumer credit arc 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). 1279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1280 BANK RESERVES AND RELATED ITEMS SEPTEMBER 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 than member bank Member bank P d e o a ri r t o e d U.S. Govt. securities Dis- Gold c u u ry r- r C e i n u n c r- y Tr u e r a y s- with i" F es .R er . v e B s a , nks O F t . h R e . r reserves Total B r o o ig u u h g t- t ht R m c a e h g e p a r n e u s t e e r s - - c v o a a a n u n d d c n - e ts s Float i t T al o - 2 stock s o t i a n u n g t- d- c t c u i i o l r a n - - h i o n l g d s - Tr u e r a y s- F ei o g r n - Other i co a u c n - ts B W F a . n R it k h . s c r C o e a n n i u n c d r - y 3 Total Averages of daily figures 1929 Tune 179 179 978 61 1 317 4 024 2 018 4 400 210 30 30 376 2 314 2 314 1933—June 1,933 1,933 250 12 2,208 4,030 2,295 5,455 272 81 164 350 2,211 2*211 1939 Dec 2 510 2,510 8 83 2,612 17,518 2,956 7,609 2,402 616 739 248 11 473 11 473 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 10,985 2,189 592 1,531 292 12,812 12,812 1945 Dec 23 708 23 708 381 65224,744 20,047 4,322 28 452 2,269 625 1,247 493 16 027 16 027 1950 Dec 20 345 20,336 9 142 1,117 21,606 22,879 4,629 27,806 1,290 615 353 739 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 1,633 27,156 21,942 5,064 31,775 772 463 372 247 998 19,535 19,535 1957 Dec 23 982 23 615 367 716 1,443 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 1,496 28,412 20,563 5,230 32,371 691 470 262 337 1 174 18 899 18 899 1959 Dec 27,036 26,993 43 911 1,426 29,435 19,482 5,311 32,775 396 524 361 348 1,195 18,628 304 18,932 I960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 33,019 408 522 250 495 1,029 16,688 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 1 112 17 259 2 859 20 118 1962—Dec 30,546 30.474 72 305 2,298 33,218 15,978 5,561 35,281 398 587 222 290 1 048 16 932 3 108 20 040 1963—Dec 33,729 33.626 103 360 2,434 36,610 15,562 5,583 37,603 389 879 160 206 1,215 17,303 3,443 20,746 1964—June 34,631 34,530 101 271 1,784 36,760 15,462 5,584 37,541 414 886 135 200 1,273 17,356 3,202 20,558 1964 \ug 35 118 34 996 122 334 1,670 37,170 15,462 5,562 38,033 421 909 145 194 1 151 17 340 3 226 20 566 Sept 35,273 35,143 130 332 1,914 37,578 15,462 5,564 38,224 437 893 143 189 1 129 17 589 3 339 20,928 Oct 35,334 35,257 77 311 2,027 37,747 15,462 5,533 38,362 471 863 133 189 1,009 17,716 3 317 21,033 Nov ... 36 036 35 867 169 433 1,874 38,421 15,442 5,494 38,937 529 613 148 200 1 119 17 812 3 347 21,159 Dec 37,126 36,895 231 266 2.423 39,873 15,388 5,401 39,698 595 944 181 186 1,093 17,964 3 645 21,609 1965—Jan 36,684 36,457 227 340 2,126 39,245 15,258 5,395 39,013 652 875 180 223 949 18.006 3,613 21,619 Feb 37 052 36 957 95 450 1,650 39,244 14,984 5,394 38,641 696 943 145 211 1 166 17 820 3 407 21 227 Mar 37,315 37,267 48 441 1,659 39,535 14,687 5,396 38,777 727 890 144 194 1,049 17,836 3,412 21,248 Apr 37 637 37 482 155 487 1.658 39,882 14,472 5,405 38 942 744 865 170 207 783 18 047 3 458 21 505 May 38,111 37,749 362 520 1.633 40,340 14,358 5,402 39.052 755 908 142 187 985 18 070 3 406 21,476 June 38 840 38 610 230 543 1,714 41,153 14,277 5.402 39 508 772 844 142 182 1 196 18 187 3 522 21 709 July 39 249 38 891 358 527 1,831 41,651 13.924 5.412 40,005 r780 805 160 196 740 18 301 3 564 21 865 Aug 39,318 39,074 244 566 1,581 41,504 13,858 5,433 40,103 811 924 215 185 480 18,076"3,545 "21,621 Week ending— 1964 July 1 34,841 34,823 18 221 1,818 36.960 15,462 5,582 37,618 404 873 140 195 1,276 17,498 3,347 20,845 y 8 35 335 35,215 120 263 1,882 37.588 15,463 5,574 37,916 416 842 134 222 1 256 17 840 2 965 20 805 15 35,304 35,030 274 460 1,787 37,636 15,463 5,562 38.099 425 885 123 204 1,223 17,703 3,291 20,994 22 34 392 34,392 159 2,195 36.789 15,463 5,566 37,969 444 770 131 191 1,158 17 154 3 275 20 429 29 34,518 34,357 161 179 1.626 36,381 15.463 5,567 37,814 440 711 133 190 1,148 16,975 3,350 20,325 Aug 5 35,112 34.980 132 262 1,460 36,892 15,462 5,570 37.893 433 769 137 199 1,132 17,363 3 197 20 560 12 . .. 35 397 35 097 300 376 1,554 37,393 15,462 5,554 38,114 417 964 141 193 1 113 17 467 3 130 20 597 19 34,855 34,855 279 2,024 37,197 15.461 5,558 38.113 412 932 144 199 1,102 17,314 3 269 20 583 26 . 35 051 34 929 122 329 1,719 37,137 15.462 5,563 37,998 429 918 145 188 1 214 17 270 3 341 20 611 Sept 2 35 162 35,144 18 315 1,451 36,968 15.462 5.572 38.007 423 858 164 191 1,199 17,159 3 372 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 3.000 20,679 16 35,397 35,262 135 225 1,846 37.524 15,462 5.564 38.425 435 906 142 194 1,163 17,285 3.454 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 29 280 1,943 37,487 15,461 5.556 38.075 440 914 161 186 1,066 17,662 3.478 21,140 Oct. 7 35,759 35.549 210 372 1,820 38.051 15.463 5,554 38.209 457 838 131 204 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 1 012 130 189 '966 17 660 3 341 21 001 28 34 911 34,911 233 1,995 37.203 15,462 5,513 38,333 467 810 137 185 925 17 321 3 448 20 769 Nov 4 35 711 35.642 69 479 1.634 37,910 15.462 5,505 38,446 484 666 122 197 1 111 17 851 1 359 21 210 11 35,986 35,671 315 429 1.711 38,201 15,463 5.497 38.793 503 546 139 205 1,153 17 823 3 192 21 015 18 . 35 913 35 698 215 593 1.962 38,532 15.462 5,497 38 975 533 563 130 215 1 150 17 926 3 389 21 315 25 35 992 35 867 125 162 2,136 38,388 15.430 5,494 39.071 552 521 148 183 1 245 17 592 3 467 21 059 Dec 2 36,667 36.667 377 1,860 38,969 15.387 5,456 39,277 554 827 224 196 886 17 848 3 528 21 376 9 37.335 37,335 124 1,950 39,480 15,387 5,400 39,476 571 873 186 186 1,231 17,745 3,397 21,142 16 37 335 37 020 * 315 162 2,084 39,632 15,388 5,402 39,743 593 1 .024 142 176 1 106 17 637 3 7^0 21 387 23 36,926 36.660 266 291 2,90740,175 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 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 BANK RESERVES AND RELATED ITEMS 1281 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 i e h g t e p i a r n e u e s s t e e r s - - c v D o a a a n u n i d s c d n - - e ts s Float i t T a o l - 2 s G to o c ld k T r s c o r e t u i e a u n n u r a n 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 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 w e r a a y i n s th - m r F e e s . F e m R o rv b r . - e e B s r , a O b n a t k h n s e k ri c O F o . a t u c h R n - e t r . s B W F a . n i R t k h M . s e r m e c r C s e o b a e n n i e u r n c r d r v - y e 3 b s an T k otal Averages of daily figures Week ending— 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 1,841 38,631 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 1,611 38,923 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 1,472 39,384 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 1~,5'~40 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 21,062 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 38,714 746 898 146 181 875 17,843 3,523 21,366 Apr-i2::::::: 3 3 7 7 , , 7 8 2 8 5 1 3 3 7 7 , , 4 6 9 2 6 3 2 2 5 2 8 9 4 5 1 8 2 6 1 1 , , 4 4 0 8 9 7 3 3 9 9 , , 8 8 8 6 3 3 1 1 4 4 , , 5 5 6 1 3 9 5 5 , , 4 3 0 9 6 8 3 39 8 , , 0 8 9 6 2 2 7 74 3 1 2 9 7 1 2 0 8 1 1 7 5 6 8 2 2 0 0 7 2 8 8 3 0 5 4 1 1 8 7 , , 2 8 8 9 3 9 3 3 , , 3 2 8 2 9 0 2 2 1 1 , , 5 2 0 8 3 8 21 37,594 37,486 108 589 1,956 4400,230 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 21,400 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 40,77: 14,291 5,399 39,239 759 856 142 190 1,285 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 1,293 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 1,231 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 1,153 18,491 3,569 22,060 30 38,870 38,740 130 500 1,678 41,ior 14,227 5,413 39,513 777 803 162 184 1,082 18,221 3,673 21,894 July 7 39,588 39,050 538 594 1,71841,955 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 Aug-if::::::: 3 3 9 9 , , 6 4 5 0 1 0 3 3 9 8 , , 2 9 5 0 9 3 4 39 9 : 7 6 5 1 4 9 4 1 1 , , 4 4 4 8 0 0 4 4 1 1, , 7 4 8 1 6 8 1 1 3 3 , , 8 8 5 5 7 8 5 5 , , 4 4 2 2 2 3 4 3 0 9 , , 1 9 2 4 5 4 7 8 9 0 7 0 1,0 9 5 0 0 3 1 1 5 9 5 8 1 19 9 1 6 4 5 7 0 0 0 1 18 8 , , 2 2 3 0 0 4 3 3 , , 5 3 7 7 3 2 2 2 1 1 , , 7 6 7 0 7 2 18 39,136 39,037 99 493 1,770 41,434 13,858 5,426 40,202 812 848 235 190 466 17,965 3,549 21,514 25 39,134 38,971 163 547 1,692 41,409 13,858 5,441 40,118 824 908 218 178 578 17,885^3,6332>21,518 End of month 1965 June 39,100 38,882 218 657 1,349 41,159 13,934 5,412 39,720 747 672 179 198 762 18,229 3,997 22,226 July 3 39 9 , , 2 0 0 4 7 r 3 3 9 8 , , 0 8 4 0 9 4 403 5 2 3 3 6 7 1,3 2 8 7 8 8 4 4 0 1 , , 6 1 1 6 9 6 *> 1 1 3 3 , , 8 8 5 5 7 7> 5 5 ,4 4 2 6" 1 ~0*4 3 0 9 , , 1 8 4 9 0 7 786 9 9 4 1 7 6 3 1 5 4 6 7 2 1 0 8 2 2 4 3 5 3 5 9 1 1 7 8 , , 1 0 9 0 1 8 3 3, , 9 3 5 1 7 4 2 2 1 1 , , 1 3 4 2 8 2 Aug Wednesday 1965 39,518 39,050 468 465 ,796 41,832 13,934 5,418 40,228 771 973 153 202 850 18,008 3,637 21,645 July 7 39,067 38,766 301 212 ,903 41,228 13,934 5,407 40,196 766 920 156 203 728 17,600 4.053 21,653 2 1 1 4 3 39 8 , , 2 9 3 7 1 9 3 3 8 8 , , 7 8 6 0 6 4 2 42 1 7 3 2 5 7 7 1 1 , ,6 3 5 0 1 7 4 4 0 1 , , 9 14 3 5 7 1 13 3 , , 8 9 5 3 9 4 5 5 , , 4 4 1 1 2 1 4 3 0 9 , ,9 0 3 2 1 4 7 7 9 9 6 3 7 6 9 7 9 0 1 1 5 5 1 7 2 1 0 9 2 2 7 7 0 1 5 0 1 17 7 , , 7 8 3 3 1 8 4 3 , , 0 95 5 0 7 2 2 1 1 , , 6 8 8 9 1 5 28 39,812 39,127 685 472 ,281 41,601 13,859 5,429 40,043 811 808 158 184 476 18,409 3,707 22,116 Aug. 4 39,459 39,185 274 292 ,28141,068 13,859 5,421 40,238 810 916 245 192 467 17,480 3,836 21,316 11 38,949 38,949 328 ,756 41,069 13,859 5,434 40,212 829 949 217 188 586 17,381 3,863 21,244 18 39,200 39,026 174 454 ,317 41,007 13,859 5,453 40,124 822 81 21 184 540 17,619 4,040 21,659 25 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

1282 BANK RESERVES AND RELATED ITEMS SEPTEMBER 1965 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t l a d l qu R ir e e - d Excess B F r i a n o . 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 re - d Excess B F r i a n o . 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 ir e e - d Excess B F r in a o . a n w g t R k s - . s s F e r r r e v e - e e s 1929 June 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 —62 1933 June 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 1,136 1,127 8 85 —77 1958 Dec 18,899 18,383 516 557 -41 4,033 4,010 23 102 -81 1,077 1,070 7 39 —31 1959 Dec 18,932 18,450 482 906 -424 3,920 3,930 -10 99 -109 1 038 1 038 104 — 104 I960 Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 g —4 1961 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 J 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 Tune . . 20,558 20,168 390 270 120 3,984 3,945 39 39 1,033 1,033 13 -13 1964 Aug 20,566 20,149 417 334 83 3,876 3,858 18 39 -21 ,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 t,O58 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 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 1,086 -3 28 -31 1965 Jan 21,619 21,217 402 299 103 4,117 4,073 43 113 -70 ,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 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 39 —40 May 21,476 21,149 327 505 -178 4,135 4,127 8 21 -13 1,116 1,110 6 10 -4 J J u u l n y e .. .. . . . 2 2 1 1 , , 7 8 0 6 9 5 2 2 1 1 , , 3 51 6 6 6 3 3 4 4 3 9 5 5 2 2 8 4 - - 1 1 8 7 5 5 4 4 , , 1 2 5 0 5 6 4 4 , , 1 1 8 6 5 4 21 9 1 1 2 3 6 5 - -1 1 3 1 5 4 1 1 , , 1 1 0 0 0 2 1 1 , 0 1 9 0 6 0 4 2 2 1 7 9 - — 1 5 25 Aug 2>21,621*21,190 564 P-133 P4,097 103 p1,077 P2 38 Week ending— 1964—Aug. 5.... 20,560 20,209 351 260 91 3,931 3,934 9 14 -16 1,037 1,036 1 6 -5 20,597 20,123 474 376 98 3,850 3,833 17 3 13 1,028 1,029 -1 20 -21 19! !!! 20,583 20,192 391 278 113 3,885 3,875 10 49 -39 1,033 1,037 -3 10 -13 26 20,611 20,140 471 329 142 3,851 3,839 12 56 -43 1,035 1,035 14 -14 1965—Mar. 3 21,136 20,924 212 270 -58 4,049 4,028 20 117 -96 1,106 1,104 3 2 1 10 21,062 20,695 367 385 -18 3,929 3,920 9 82 -73 1,064 1,065 -1 10 -11 17 21,168 20,843 325 370 -45 3,998 4,000 88 -90 1,078 1,066 12 9 2 24 21,512 21,058 454 463 -9 4,056 4,024 32 196 -164 1,086 1,085 1 20 -19 31.... 21,366 21,000 366 487 -121 4,105 4,039 65 104 -38 1,101 1,081 21 180 -160 Apr. 7.... 21,503 21,130 373 570 -197 4,139 4,122 17 128 -111 1,087 1,089 -2 79 -80 21,288 21,012 276 397 -121 4,017 3,999 19 57 -38 1,064 1,061 3 14 -11 2111!! 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 21,743 21,411 332 478 -146 4,296 4,291 5 7 -2 1,163 1,152 11 5 6 21,465 21,118 347 498 -151 4,109 4,079 30 30 1116 1,113 8 — 5 19 21,442 21,104 338 500 -162 4,109 4,110 -1 48 -49 1,093 1,098 5 17 -22 26.... 21,364 21,059 305 483 -178 4,102 4,077 25 8 17 1,102 1,094 8 3 6 June 2.... 21,414 21,087 327 518 -191 4,124 4,109 15 20 _5 1,099 1,096 2 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 4 13 -9 23.... 22,060 21,644 416 583 -167 4,358 4,271 87 225 -138 1,128 1,119 9 38 -29 30.... 21,894 21,558 336 486 -150 4,256 4,253 3 111 -108 1,112 1,120 -8 19 -27 July 7.... 22,171 21,822 349 582 -233 4,352 4,320 32 233 -201 1,132 1,129 30 -27 14 22 105 21 576 529 620 -91 4 148 4,137 11 200 -189 1 094 1,094 23 — 23 21.... 21,662 21,470 192 425 -233 4,139 4,119 20 68 -48 1,105 1,100 5 18 -13 28.... 21,597 21,274 323 479 -156 4,107 4,093 14 37 -23 1,079 1,081 35 -37 Aug. 4.... 21,777 21,399 378 544 -166 4,175 4,158 17 135 -118 1,113 1,103 11 21 -10 21,602 21,183 419 616 -197 4,031 4,022 8 175 -167 1,070 1,066 22 -19 is!!!! 21,514 21,188 326 491 -165 4.028 4,009 19 12 1,068 1,070 68 -70 25 P21,518P21,116 545 P-143 ^4,003 *>3,995 61 V1,073 57 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 BANK RESERVES AND RELATED ITEMS 1283 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Borrow- Reserves Borrowings at Free ings at Free T h o e t ld al Required Excess B F a . n R k . s reserves T h o e t l a d l Required Excess B F a . n R k . s reserves 1929—June 761 749 12 409 -397 632 610 22 327 — 305 1933 June 648 528 120 58 62 441 344 96 126 -30 1939 Dec 3,140 1,953 1,188 1,188 1,568 897 671 3 668 1941 Dec 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 1945 Dec 6,394 5,976 418 96 322 4 576 3 566 1,011 46 965 1947_Dec 6,861 6,589 271 123 148 4,972 4,375 597 57 540 1950 Dec 6,689 6,458 232 50 182 4,761 4,099 663 29 634 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 Aug 8,349 8,312 37 191 -154 7,302 6,946 356 91 265 Sent 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 May 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 8,725 50 264 -214 7,833 7 528 306 107 199 Aug 28,626 263 27,788 27,464 160 Week ending— 1964 Aug 5 8,350 8,316 33 151 -118 7,242 6,924 318 89 229 12 8,340 8,301 39 246 -207 7,379 6,960 420 107 313 19 8,347 8,315 31 145 -114 7,318 6,965 353 74 279 26 8,353 8,321 32 187 -155 7 371 6 944 427 72 355 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 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 li::::::..::.:: 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 7,479 278 88 190 Aug 4 8,710 8,677 33 238 -205 7,779 7,461 318 150 168 11 8,649 8,612 38 274 -236 7.853 7,482 370 145 225 18 8 671 8 638 33 251 -218 7 747 7 471 276 165 111 25 28,635 28,597 265 27,807 *7,455 2351 162 l 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 oper « ing 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

1284 MAJOR RESERVE CITY BANKS SEPTEMBER 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 i rowings bank Surplus of Pur- trans- chases of net dealers3 from loans at F.R. Federal or avg. chases Sales actions2 of net selling dealers4 Banks funds deficit required buying banks trans. reserves banks Total—46 banks 1965—July 299 850 -1,108 11.1 2,223 1,373 1,041 1,183 333 1,359 145 1,214 329 1,152 -1,460 15.1 2,148 997 873 1,275 124 1,148 92 1,056 21!'. '.'.'. 161 1,001 -1,135 11.8 2,191 1,190 1,050 1,141 141 1,235 113 1,122 28 185 139 -308 3.2 1,895 1,756 996 760 873 90 783 Aug- if::::: 2 3 3 3 5 8 4 5 3 5 8 4 - - 8 63 6 9 2 9 6 . . 1 6 2 1 , , 0 97 0 8 3 1 1 , , 5 4 6 2 5 4 1,1 9 0 7 4 8 1,0 8 0 9 0 9 4 46 4 1 6 1,0 6 3 1 0 4 9 7 5 0 9 5 3 4 5 4 18 214 679 -862 9.2 2,051 1,372 1,100 952 272 792 71 721 25 244 388 -605 6.4 1,753 1,365 897 857 469 723 61 662 8 in New York City 1965—July 7 181 338 -497 12.3 930 592 500 430 92 1,065 136 929 14 172 481 -648 16.8 922 441 418 504 22 746 92 654 21 43 244 -272 7.1 866 622 541 325 81 809 113 696 28 7 -429 427 11.2 660 1,089 444 217 645 569 90 479 Aug-.?::::: 115 -78 -26 .7 753 831 543 210 288 779 95 684 167 6 -164 4.4 773 767 486 287 281 442 70 372 18 4 239 -230 6.1 857 618 554 303 64 602 71 531 25 52 -45 2 .1 668 713 469 199 244 520 61 459 38 outside New York City 1965—July 7 18 118 512 -611 10.3 ,293 781 541 752 240 295 285 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 Aug. 4 23 120 516 -613 10.5 ,250 734 561 689 173 251 251 11 20 170 548 -698 12.1 ,204 657 492 713 165 172 172 18 .... 18 209 441 -632 11.2 ,194 754 546 649 208 190 190 7S 22 192 433 -603 10.5 ,085 652 427 658 225 203 203 5 in Chicago 1965—July 7 220 -247 24.5 368 148 134 233 53 53 14 267 -285 29.2 402 135 113 289 47 47 21 158 -170 17.3 356 198 176 180 42 42 28 2 193 -215 22.2 311 118 102 209 12 12 Aug. 4 7 219 -216 21.9 348 129 119 229 11 11 11 . . . . 2 222 -233 24.5 352 130 105 247 22 22 18 -2 143 -211 22.1 308 165 134 174 18 18 25 3 156 -210 22.1 296 140 121 174 23 23 33 others 1965 July 7 18 90 292 -364 7.4 926 633 406 519 227 242 233 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 Aug. 4 16 116 296 -397 8.2 902 605 442 460 164 240 240 11 18 157 326 -465 9.7 853 527 387 465 140 150 150 18 20 143 298 -421 9.0 887 589 412 475 177 173 173 25 19 134 277 -392 8.2 789 512 306 483 206 180 180 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

SEPTEMBER 1965 DISCOUNT RATES 1285 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 13 3 Federal Reserve Bank Sees. 13 and 13a 1 Sec. 10(b) 2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Aug. 31 date Aug. 31 date rate Aug. 31 date rate Boston Nov. 24,1964 Nov. 24,1964 Nov. 24,1964 New York. . . Nov. 24,1964 Nov. 24, 1964 Nov. 24,1964 Philadelphia.. Nov. 24,1964 Nov. 24,1964 5 Nov. 24,1964 Cleveland Nov. 27,1964 Nov. 27,1964 5V4 Nov. 27,1964 Richmond. . . Nov. 27,1964 Nov, 27,1964 Nov. 27,1964 Atlanta Nov. 25,1964 Nov. 25,1964 6 Nov. 25,1964 Chicago Nov. 24,1964 Nov. 24, 1964 5 July 19,1963 St. Louis Nov. 24,1964 Nov. 24,1964 5 Nov. 24,1964 Minneapolis.. Nov. 30,1964 Nov. 30,1964 5 Nov. 30,1964 Kansas City. . Nov. 30,1964 Nov. 30,1964 5 Nov. 30,1964 Dallas Nov. 27,1964 Nov. 27, 1964 5 Nov. 27,1964 San Francisco Nov. 27,1964 Nov. 27, 1964 5 Nov. 27,1964 i Advances secured by U.S. Govt. securities and discounts of and secured by FICB securities are limited to 15 days. advances secured by eligible paper. Rates shown also apply to advances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum secured by securities of Federal intermediate credit banks maturing maturity: 4 months. within 6 months. Maximum maturity: 90 days except that discounts 3 Advances to individuals, partnerships, or corporations other than of certain bankers' acceptances and of agricultural paper may have member banks secured by U.S. Govt. direct securities. Maximum maturmaturities not over 6 months and 9 months, respectively, and advances ity: 90 days. FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date all F.R. of date all F.R. of date all F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1932.... 2%-3% 2% 1953 1958 Jan. 16 1*4-2 Jan. 22 1933 23 24 Mar. 3 2*4-3% Mar. 7 4 13 Apr. 7 3 ^3% 1954 21 May 26 2%-3% Feb. 5 1*4-2 Apr. 18 Oct. 20 2 -3i/2 15 WA May 9 Apr. 14 1%-1% Aug. 15 Feb. 2 1934 1*4-3% May 2 1 1 6 1*2-134 Mar. 16 H/2-3 1% *O N *c o •t v &. . :2: 7 4:::::::::::: 1935 1955 Jan. 11 t%-2% 1% 1%-1% 1959 May 14 11/2-2 1% * M " ay '• & 2 ::::: 11/2-134 Mar. 1 6 6 1937 Aug. 4 1*4 May 29 Aug. 27 1 -2 l%-2% June 12 Sept. 4 1 -1% 12.'. ... ! W4-2VA Sept. 11 Sept. 9 2 -2VA 18 O A ct p . r. 1 3 1 0 5 1 1942 t t% 1 1 /2-1 t 1 1 % Nov. 2 1 13 3 8 2 2 1 2 2 4 1 % / - 2 - 2 2 V % 4 June 1 3 0 1960 14 1946 Aug. 12 Apr. 25 1956 Sept. 9 May 10 1 Apr. 13 20 1963 1948 Aug. 24 234-3 July 17 3 2 Jan. 12 1 jl% 18 31 26 19 Aug. 13 1964 1% 1% 1957 Nov. 24 314-4 1950 1% Aug-2?:::::: 3 f 30 4 Aug. 2 2 1 5 1 l/ 1 2- % l 3 14 D N ec o . v. 1 2 5 3 -3 In effect Au 1 g 9 . 6 3 5 1 f Preferential rate of % of 1 per cent for advances secured by U.S. against U.S. Govt. securities was the same as"1 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

1286 RESERVE REQUIREMENTS SEPTEMBER 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 Central of deposit Jan. 1, Jan. 1, Jan. 1, July 17, Nov. 24, Effective date 1 Central reserve 1936 1957 1962 1963 1964 reserve Reserve Coun- and Councity city try reserve try banks 3 banks banks city banks Savings deposits: banks L 1 e y s e s a t r h a o n r m 1 o y r e e ar } 2, 2 3 \ / 3 4 1/2 4 4 4 In effect Dec. 31, 1948.. 26 22 16 7% 7% Postal savings deposits: L 1 e y ss e a t r h a o n r m 1 o y r e e ar } 2* 3 / 1 3 4 1/2 4 4 4 1949__ J M un ay e 30 1 , , 5 July 1.. 24 2 2 1 0 1 1 5 4 7 6 7 6 Aug. 1,11 13 5 Other time deposits: * Aug. 16, 18. , 19 12 5 6 1 m ye o a n r th o s r - 1 m o y r e e ar 3 A Se u p g t . . 25 1 1 18 8% 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.... 2i/2 ); 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 1954—June 16, 24, . 21 5 5 1 For exceptions with respect to foreign time deposits, see Oct. 1962 July 29, Aug. 1. 20 18 12 B li U sh N L e L O d E T E T b . I — N y , M t p h . a e x 1 i B 2 m 7 o 9 u a m rd a n r d o a f te A s G u g t o . h v a e t 1 r 9 n m 6 o 5 a r s y B U b u e L n L d p E e a r T i d IN p , r b o y p v . i m si 1 e o 0 m n 8 s 4 b . e o r f b R an e k g s u l a a s ti o e n st a Q b- . 1958— M A Fe p a b r r . . . 2 2 1 0 7 7 , , A M p a r r . . 1 1 . . . 19 17 ii* Under this Regulation the rate payable by a member bank may not in Apr. 24 18 16% any event exceed the maximum rate payable by State banks or trust 1960—Sept. 1 cos. on like deposits under the laws of the State in which the member Nov 24 12 bank is located. Effective Feb. 1, 1936, maximum rates that may be Dec. 1 .6% 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, 2i/2 In effect Sept. 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 been Regulation U: allowed to count vault cash also as reserves, as follows: country banks— For loans by banks on stocks 70 50 70 in excess of 4 and 2y2 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; all member banks were allowed to count all vault cash Exchange Act of 1934, limit the amount of credit that may be extended on as reserves effective Nov. 24, 1960. 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 it f y Other C b o a u n n k t s ry Item m b e a A m n l k b l s er City Chicago Four weeks ending July 21, 1965 Four weeks ending August 18, 1965 Gross demand—Total... 142,553 27,605 6,741 53,467 54,740 Gross demand—Total. . 138,037 25,958 6,458 51,916 53,704 Interbank 15,152 4,736 1,309 7,180 1,927 Interbank 14,498 4,497 1,220 6,905 1,877 U.S. Govt 9,228 2,138 592 3,723 2,775 U.S. Govt 6.590 1,518 414 2,701 1,957 Other 118,173 20,731 4,841 42,563 50,038 Other 116,949 19,943 4,824 42,311 49,871 Net demand 1 116,106 21,297 5,575 42,658 46,576 Net demand 1 113,465 20,389 5,368 41,788 45,920 Time 113,623 17,329 4,774 42,989 48,531 Time 115,142 17,668 4,856 43,548 49,070 Demand balances due Demand balances due from dom. banks 7,523 169 104 1,944 5,307 from dom. banks... 7,245 156 107 1,880 5,102 Currency and coin 3,539 286 60 1,065 2,128 Currency and coin 3,545 282 62 1,060 2,141 Balances with F. R. Balances with F. R. Banks 18,419 3,938 1,051 7,728 5,702 Banks 18,078 3,803 1,021 7,611 5,643 Total reserves held 21,958 4,224 1,111 8,793 7,830 Total reserves held 21,623 4,085 1,083 8,671 7,784 Required 21,607 4,207 1,111 8,758 7,530 Required 21,261 4,071 1,080 8,637 7,473 Excess 351 17 35 300 Excess 362 14 3 34 311 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

SEPTEMBER 1965 OPEN MARKET ACCOUNT 1287 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—July 1 264 610 447 1 264 610 447 Aug 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 July 206 284 206 284 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—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 Apr May 65 -2,521 32 12 June 185 166 43 July Repurchase agreements (U.S. Govt. securities) Bankers' acceptances 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 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 983 1,019 166 -4 -40 122 Mar 482 434 684 1 71 756 Apr 1,831 1,717 163 -1 -38 124 May 1,207 1,233 932 -3 -20 900 June 1,894 1,895 415 -10 -1< 386 July 2,734 2,549 106 -6 -i: > 88 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

1288 FEDERAL RESERVE BANKS SEPTEMBER 1965 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1965 1965 1964 Aug. 25 Aug. 18 Aug. 11 Aug. 4 July 28 Aug. July Aug. Assets Gold certificate account 11,957 11,939 11,950 11,950 11,962 11,955 11,961 13,727 Redemption fund for F.R. notes 1,639 1,641 1,634 1,637 1,629 1,641 1,630 1,465 Total gold certificate reserves 13,596 13,580 13,584 13,587 13,591 13,596 13,591 15,192 Cash 111 111 110 117 120 109 119 167 Discounts and advances: Member bank borrowings 454 328 292 472 571 237 536 185 Other Acceptances: Boueht outricht 36 36 36 36 36 36 35 36 Held under repurchase agreements . . 19 U.S. Govt. securities: Bought outright: Bills 7,868 7,828 8,064 8,006 7,683 7,823 7,683 5,112 Certificates—Special Other Notes 24,750 24,737 25,737 25,737 25,737 24,759 25,737 25,032 Bonds 6,408 6,384 5,384 5,384 5,384 6,467 5,384 5,020 Total bought outright • . . . 39,026 38,949 39,185 39,127 38,804 39,049 38,804 35,164 Held under repurchase agreements 174 274 685 427 403 Total U.S. Govt. securities 39,200 38,949 39,459 39,812 39,231 39,049 39,207 35,164 Total loans and securities 39,690 39,313 39,787 40,320 39,838 39,341 39,778 35,385 Cash items in process of collection 5,655 6,654 5,913 5,920 5,674 5,163 5,173 4,683 102 102 101 102 102 102 102 102 Other assets: 679 624 624 621 370 884 620 195 All other 220 201 448 422 404 243 413 266 Total assets 60,053 60,585 60,567 61,089 60,099 59,438 59,796 55,990 Liabilities F.R. notes 35,342 35,439 35,462 35,270 35,165 35,340 35,117 32,749 Deposits: Member bank reserves 17,619 17,381 17,480 18,409 17,838 17,191 18,008 17,055 U.S. Treasurer—General account 812 949 916 808 799 916 947 939 217 217 245 158 157 356 147 163 Other 184 188 192 184 192 182 202 208 Total deposits 18,832 18,735 18,833 19,559 18,986 18,645 19,304 18,365 Deferred availability cash items 4,338 4,898 4,632 4,639 4,367 3,885 3,785 3,127 Other liabilities and accrued dividends 362 363 403 412 396 368 395 105 Total liabilities 58,874 59,435 59,330 59,880 58,914 58,238 58,601 54,346 Capital Accounts 544 543 543 542 542 544 542 517 524 524 524 524 524 524 990 Other capital accounts 111 83 170 143 119 132 129 137 Total liabilities and capital accounts 60,053 60,585 60,567 61,089 60,099 59,438 59,796 55,990 Contingent liability on acceptances purchased for foreign correspondents 147 148 148 149 152 145 151 132 U.S. Govt. securities held in custody for foreign account 7,146 7,159 7,113 7,253 7,192 7,264 7,221 8,247 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).... 38,091 38,077 38,004 37,915 37,884 38,112 37,896 35,079 Collateral held against notes outstanding: 6,350 6,350 6,350 6.430 6,430 6,350 6,430 6,607 32 19 19 ' 17 29 39 47 15 U.S. Govt. securities 32,855 32,815 32,815 32,715 32,715 32,855 32,715 29,465 Total collateral 39,237 39,184 39,184 39,162 39,174 39,244 39,192 36,087 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 FEDERAL RESERVE BANKS 1289 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 1965 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C l l a e n v d e- m Ri o c n h d - At t l a an- c C a h g i o - Lo S u t. is M ap 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 11,955 712 3,000 667 1,055 1,104 670 2,129 398 196 483 267 1,274 Redemption fund for F.R. notes 1,641 95 384 90 141 137 92 304 62 30 63 55 188 Total gold certificate reserves 13,596 807 3,384 757 1,196 1,241 762 2,433 460 226 546 322 1,462 F.R. notes of other Banks 681 73 142 58 37 69 73 70 27 31 22 26 53 Other cash 109 10 18 5 9 6 12 20 6 4 3 5 11 Discounts and advances: Secured by U.S. Govt. securities... 207 15 48 6 9 25 13 26 16 6 30 13 Other 30 6 1 18 1 1 3 Acceptances: Bought outright 36 36 Held under repurchase agreements. 19 19 U.S. Govt. securities: Bought outright 39,049 2,006 9,577 2,026 3,219 2,652 2,144 6,523 1,449 865 1,571 1,626 5,391 Held under repurchase agreements. Total loans and securities 39,341 2,021 9,680 2,032 3,228 2,683 2,158 6,549 1,483 872 1,602 1,642 5,391 Cash items in process of collection... 6,473 395 1,186 418 470 526 602 1,072 299 195 411 321 578 102 3 8 3 5 5 20 21 7 3 6 11 10 Other assets: Denominated in foreign currencies. 884 40 1261 47 76 42 50 120 29 19 38 49 113 All other 243 12 60 13 20 17 13 37 8 6 12 10 35 Total assets 61,429 3,361 14,739 3,333 5,041 4,589 3,690 10,322 2,319 1,356 2,640 2,386 7,653 Liabilities F R notes 36,021 2,145 8,138 2,120 3,070 3,177 2,060 6,593 1,385 667 1,389 1,140 4,137 Deposits: Member bank reserves .... 17,191 639 4,811 693 1,330 814 1,023 2.542 578 430 779 826 2,726 U.S. Treasurer—General account.. 916 75 130 69 77 102 61 84 50 57 93 69 49 356 10 2 198 12 19 11 13 30 7 5 10 12 29 Other 182 * 116 * 1 4 1 1 * * 3 1 55 Total deoosits 18,645 724 5,255 774 1,427 931 1,098 2,657 635 492 885 908 2,859 Deferred availability cash items 5.195 416 937 355 405 398 441 841 245 161 298 250 448 Other liabilities and accrued dividends. 368 18 94 20 32 21 21 56 13 9 16 19 49 Total liabilities 60,229 3,303 14,424 3,269 4,934 4,527 3,620 10,147 2,278 1,329 2,588 2,317 7,493 Capital Accounts Capital Daid in . • 544 26 143 29 49 27 32 78 19 13 24 32 72 Surplus 524 25 137 29 47 26 31 75 18 12 23 31 70 Other cat>ital accounts 132 7 35 6 11 9 7 22 4 2 5 6 18 Total liabilities and capital accounts.. 61,429 3,361 14,739 3,333 5,041 4,589 3,690 10,322 2,319 1,356 2,640 2,386 7,653 Ratio of gold certificate reserves to F.R. note liability (per cent): Aug 31 1965 37.7 37.6 41.6 35.7 39.0 39.1 37.0 36.9 33.2 33.9 39.3 28.2 35.3 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 Aug 31 1964 45.6 42.7 49.6 41.0 39.3 37.6 46.0 42.2 45.1 59.4 45.4 51.2 53.5 Contingent liability on acceptances purchased for foreign correspondents 145 7 3 37 8 13 7 9 21 5 3 7 8 20 Federal BLeserve Notes—Federal Reserve Agent's Accounts F.R. notes outstanding (issued to Bank) 38,112 2,243 8,530 2 212 3,279 3 315 2 216 7,034 1,462 707 1,445 1,238 4,431 Collateral held against notes outstanding: Gold certificate account 6,350 420 1000 465 600 803 400 1,100 295 127 225 180 735 Eligible paper 39 6 33 U.S. Govt. securities 32,855 1,865 7 700 1800 2,775 2 560 1 850 6,100 1,260 595 1,250 1,100 4,000 Total collateral 39,244 2,285 8 700 2 271 3,375 3 363 2 250 7,200 1,588 722 1,475 1,280 4,735 1 After deducting $623 million participations of other F.R. Banks. 3 After deducting $108 million participations of other F.R. Banks. 2 After deducting $158 million participations of other F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1290 FEDERAL RESERVE BANKS; BANK DEBITS SEPTEMBER 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 Aug. 25 Aug. 18 Aug. 11 Aug. 4 July 28 August July August Discounts and advances—Total... 454 328 292 472 571 237 536 185 Within 15 days 444 322 286 465 563 227 525 179 16 days to 90 days 10 6 6 7 10 11 5 91 days to 1 year 1 Acceptances—Total 36 36 36 36 36 55 35 36 Within 15 days 11 10 8 7 30 7 8 16 days to 90 days 25 26 28 29 25 28 28 U.S. Government securities—Total 39,200 38,949 39,459 39,812 39,231 39,049 39,207 35,164 Within 15 days* 1,386 1,283 5,246 5,728 1,698 717 5,033 420 16 days to 90 days 10,096 10,005 3,977 3,902 7,570 10,409 4,078 9,396 91 days to 1 year 17,619 17,599 18,238 18,184 17,965 17,756 18,098 10,183 Over 1 year to 5 years 8,341 8,317 10,138 10,138 10,138 8,378 10,138 12,848 Over 5 years to 10 years 1,387 1,374 1,489 1,489 1,489 1,408 1,489 2,037 Over 10 years 371 371 371 371 371 381 371 280 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 l u 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—NQV 727 717 1 2 1 1 2 3 * Dec 295 234 51 2 1 2 3 * 1965 Jan 287 235 36 2 2 3 6 Feb 165 131 16 2 4 2 2 5 Mar 375 347 11 2 1 2 2 2 7 Apr 315 297 1 2 1 2 3 8 May 80 17 41 2 1 1 1 2 12 BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) ]debits to demand deposit accountsl (In billions of dollars) Turnover of demanddeposits 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 A 1 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 th A 1 e 8 S r 's 1964 June 4,535.4 1,928.0 992.5 2,607.4 1,614.9 45.0 91.2 40.9 32.9 29.3 July 4,833.7 2,087.0 1,058.9 2 746.7 1 687.8 46.3 95.8 42.3 33.3 29.4 AUR 4,579.9 1,898.2 1,021.3 2,681.7 1,660.4 44.7 89.3 42.4 33.0 29.1 Sept 4,763.5 2,007.6 1,049.5 2,755.9 1,706.4 44.3 88.5 41.4 32.9 29.2 Oct 4,698.2 1,926.7 1.060.6 2,771.5 1,710.9 44.6 89.8 40.9 32.8 29.3 Nov 4,648.0 1,917.7 1.023.7 2,730.3 1,706.6 45.1 91.3 41.0 33.2 29.5 Dec 4,816.5 2,013.0 1,065.4 2,803.5 1,738.1 45.5 90.7 41.7 33.4 30.0 1965 Jan 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 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 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 5,146.8 2,128.0 1,141.0 3,018.8 1,877.8 48.4 99.4 44.9 35.5 31.7 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

SEPTEMBER 1965 U.S. CURRENCY 1291 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir- End of period culation i Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 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 2,5o2 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—July. 37,835 26,859 3,223 1,668 108 2,359 7,262 12,23910,976 3,231 7,202 245 291 3 4 Aug. 38,014 26,972 3,249 1,668 109 2,364 7,272 12,31011,041 3,249 7,248 245 292 3 4 Sept. 38,166 27,068 3,285 1,693 111 2,361 7,280 12,33911,098 3,253 7,302 246 291 3 4 Oct.. 38,373 27,201 3,321 1,716 111 2,385 7,328 12,33911,172 3,262 7,367 246 291 3 4 Nov. 39,248 27,925 3,359 1,749 108 2,455 7,568 12,68711,323 3,314 7,468 246 289 3 4 Dec. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,71711,519 3,381 7,590 248 293 2 4 1965—Jan.. 38,540 27,158 3,435 1,709 110 2,381 7,256 12,26711,382 3,321 7,519 246 290 2 4 Feb.. 38,593 27,227 3,468 1,702 110 2,375 7,282 12,28911,366 3,310 7,517 245 288 2 4 Mar. 38,816 27,424 3,520 1,704 111 2,391 7,327 12,37111,392 3,316 7,536 245 288 2 4 Apr., 38,760 27,365 3,566 1,714 112 2,381 7,275 12,31711,394 3,313 7,544 244 288 2 4 May. 39,207 27,758 3,608 1,740 114 2,427 7,375 12,494 11,449 3,332 7,579 244 289 2 4 June, 39,720 28,188 3,662 1,752 116 2,447 7,489 12,72311,532 3,361 7,635 243 287 3 4 July. 39,897 28,311 3,689 1,748 116 2,431 7,493 12,83311,586 3,376 7,674 243 287 3 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the 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 circulation i Held by T s o ta ta n l d i o n u g t- As security For F.R. Kind of currency Ju 1 ly 96 3 5 1, g a o s g l i d a lv i a n e n r st 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 ly 96 3 5 1, Ju 1 n 9 e 6 3 5 0, Ju 1 ly 9 6 3 4 1, certificates Agents Gold 13,857 (13,591) 2266 Gold certificates (13,591) 313,590 F.R. notes 37,895 100 2,779 35,016 34,820 32,489 Treasury currency—Total... 5,421 (847) 420 120 4,881 4,900 5,346 Standard silver dollars 485 3 482 482 482 Silver bullion 1,235 847 387 Silver certificates (847) 6 56 785 829 1,644 Subsidiary silver coin 2,407 9 14 2,383 2,355 2,000 Minor coin 864 13 27 824 825 741 United States notes 323 1 299 302 319 In process of retirement4 108 107 108 161 Total—July 31, 1965. 557,174 (14,438) 786 13,590 2,901 39,897 June 30, 1965. 556,690 (14,559) 747 13,669 2,554 39,720 July 31, 1964. 555,859 (16,952) 422 12,372 5,230 37,835 i 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. 1281. 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

1292 MONEY SUPPLY SEPTEMBER 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. Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d ed - 1 Total c C om ur p re o n n c e y nt c D o d m e e m p p o o a s n n i e t d nt jus a t d ed - 1 d d e e p m os a i n ts d * 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 1960—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 34.2 125.4 126.6 164.0 35.0 129.1 125.2 5.5 1964 juiy 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 35.0 129.1 125.2 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 5.6 160.0 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 Aug 162.7 35.4 127.3 140.1 160.5 35.5 125.0 140.2 7.4 Week ending— 1965—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 p 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 May 5 . . 160.4 34.8 125.6 134.1 160.3 34.4 125.9 134.8 8.5 12:::::::::::::::::::.:.:. 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 11 .. . . 162.5 35.4 127.1 139.5 161.4 35.7 125.7 139.8 6.6 18 162.5 35.4 127.1 140.0 160.3 35.6 124.7 140.1 7.6 25 .... 162.4 35.4 126.9 140.4 158.8 35.4 123.4 140.5 8.1 Sept 1 . 163.1 35.3 127.8 141.0 160.4 35.2 125.2 141.0 6.9 * 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) curdatabeginning 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 banks and the U.S. Govt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 BANKS AND THE MONETARY SYSTEM 1293 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net- Date Gold T s r t o c e u r i a u e n n u r n a r y g 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 me R n F t e e d s s e e e r c r v a u e l ritie O s ther O s ri e t t c h ie u e s - r c l T a i i a a n p t o n i b e i e 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 n s a i c l t y s C c m o a a a n p u i c n s e i n - c t d t t a . s l , savings Banks banks 1929—June 29. 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1933—June 30. 4,031 2,286 42,148 21,957 10,328 8,199 1,998 131 9,863 48,465 42,029 6,436 1939—Dec. 30. 17,644 2,963 54,564 22,157 23,105 19,417 2,484 1,204 9,302 75,171 68,359 6,812 1941—Dec. 31. 22,737 3,247 64,653 26,605 29,049 25,511 2,254 1,284 8,999 90,637 82,811 7,826 1945—Dec. 31. 20,065 4,339 167,381 30,387 128,417 101,288 24,262 2,867 8,577 191,785 180,806 10,979 1947_Dec. 31. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,008 184,384 14,624 1962—Dec. 28. 15,978 5,568 309,389 170,693 103,684 72,563 30,478 643 35,012 330,935 302,195 28,739 1963—Dec. 20. 15,582 5,586 333,203 189,433 103,273 69,068 33,552 653 40,497 354,371 323,251 31,118 1964—June 30. 15,461 5,578 343,988 201,161 100,879 65,337 34,794 748 41,948 365,027 333,114 31,915 1964— Aug. 26 15,500 5,600 344,000 200,600 100,700 64,900 35,100 800 42,700 365,100 331,100 34,000 Sept. 30 15,500 5,600 351,300 205,000 102,900 66,800 35,400 700 43,400 372,300 338,500 33,700 Oct. 28 15,500 5,500 351,000 204,100 103,300 67,200 35,200 900 43,600 372,000 338,100 33,900 Nov. 25 15,400 5,500 356,100 206,700 105,700 68,500 36,300 1,000 43,700 377,000 342,100 34,900 Dec. 31 15,388 5,405 365,366 214,254 106,825 68,779 37,044 1,002 44,287 386,159 352,964 33,193 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 34,000 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*.. 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*.. 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*.. 13,900 5,400 376,300 226,200 101,800 61,900 39,200 600 48,300 395,500 360,000 35,500 Aug. 25*.. 13,900 5,500 378,500 228,000 101,200 61,100 39,200 1,000 49,200 397,800 361,100 36,700 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted l Not seasonally adjusted Time U.S. Government Date For- At Cur- De- Cur- De- Postal eign Treas- comrency mand rency mand Com- Mutual Savings net 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 June 29 . 26 179 3 639 22 540 28 611 19 557 8 905 149 365 204 381 36 1933 June 30 19,172 4,761 14,411 21,656 10,849 9,621 1,186 50 264 852 35 1939 Dec 30 36,194 6 401 29 793 27,059 15 258 10 523 1 278 217 2 409 846 634 1941 Dec 31 48,607 9,615 38,992 27,729 15,884 10,532 1,313 ,498 2,215 1,895 867 1945 Dec 31 102 341 26 490 75 851 48 452 30 135 15 385 2,932 I 141 2 287 24,608 977 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 1,518 1,293 2,989 668 1962—Dec. 28.... 147,600 29,600 118,000 153,162 30,904 122,258 139,448 97,440 41,478 530 1,488 405 7,090 602 1963—Dec. 20.... 153,100 31,700 121,400 158,104 33,468 124,636 155,713 110,794 44,467 452 1,206 392 6,986 850 1964—June 30.... 153,500 32,700 120,800 153,331 33,020 120,311 166,627 119,330 46,882 415 1,324 391 10,502 939 1964—Aug. 26 154,300 32,900 121,400 152,900 33,100 119,800 169,000 121,200 47,400 400 1,400 400 6,300 1,100 Sept. 30.... 156,900 33,100 123,800 155,900 33,200 122,700 170,500 122,100 47,900 400 1,400 400 9,400 900 Oct. 28.... 157,800 33,300 124,500 158,400 33,200 125,200 172,100 123,600 48,100 400 1,400 500 5,000 700 Nov. 25.... 156,900 33,400 123,500 159,300 34,300 125,000 172,700 124,000 48,300 400 1,500 600 7,300 800 Dec. 31.... 159,300 33,500 125,800 167,140 34,882 132,258 175,898 126,447 49,065 386 1,724 612 6,770 820 1965—Jan. 27.... 158,700 33,900 124,800 160,800 33,400 127,400 179,000 129,200 49,400 400 1,500 700 4,300 900 Feb. 24.... 157,400 33,900 123,500 156,600 33,500 123,100 180,900 131,000 49,600 400 1,500 700 7,000 900 Mar. 31 P.. . 161,300 34,100 127,200 156,800 33,800 123,000 183,300 132,800 50,100 400 [,600 700 8,600 900 Apr. 28*... 159,000 33,800 125,200 159,100 33,500 125,600 184,600 134,100 50,100 400 1,500 800 7,100 1,000 May 26*... 157,400 33,900 123,500 155,400 33,800 121,600 185,900 135,200 50,300 400 1,500 800 10,200 700 June 30^... 160,700 34,000 126,700 158,600 34,400 124,200 188,000 136,900 50,700 400 1,700 800 12,100 700 July 28"... 159,800 34,400 125,400 159,600 34,500 125,100 189,900 138,500 51,000 300 1,600 800 7,300 800 Aug. 25*... 159,900 34.600 125,300 158.500 34,800 123,700 191,800 140,200 51,300 300 1,600 800 7,600 800 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 Reelassification 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

1294 COMMERCIAL AND MUTUAL SAVINGS BANKS SEPTEMBER 1965 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans G U o S .S v e . t s . ritie O c t u her a C ss a e s t h s1 c c b T o a i a l a l u p o i n i c a t i n t - d i t - a e t a l s s l 2 Total] m D I a n e n t - e d rba T n i k m * e U.S D . ema O nd ther Time 3 r B o o w r- - 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 m f k r s - 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 35,415177,332165,612 14,065 105,935 45,613 22710,542 14,553 1947—Dec. 31 4. 134,924 43,002 81,199 10,723 38,388175,091161,86512,793 240 1,346 94,381 53,105 6611,948 14,714 1962—Dec. 28.. 280,397172,822 72,563 35,012 54,939 3'4"3",201303,653 16,008 535 6,839141 ;084 139,188 635 28,046 13,940 1963—Dec. 20.. 302,251192,686 69,068 40,497 51,536 362!394 331199,636 15,267 528 6,734141,576 155,531 702 29,882 14,079 1964—June 30.. 310,404203,119 65,337 41,948 54,073 373,909 331,84315,272 67810,263139,160 166,469 120 31,037 14,175 1964—Aug. 26. . 311,540203,920 64,900 42,720 48.810 369,080 324,71014,390 6,040134,760 168,840 3,540 31,110 14,203 Nov. 25 .., 323,150210,990 68,460 43,700 53;100 385,810 338,97015,460 710 7,090143,180 172,530 4,500 31,800 14,251 Dec. 31... 329,739216,674 68,779 44^28761,493 401,161356,30817,938 821 6,517 155,248175,785 2,700 32,196 14,266 1965—Jan. 27... 326,880214,920 67,380 44,58051960 388,570 342,25014,800 890 4,060143,630 178,870 4,400 32,040 14,290 Feb. 24.. 328,920217,270 66,470 45 180 52580 391;080 343,77014,890 940 6,710 180,810 4,330 32,200 14,290 Mar. 31*., 331,950221,040 65,140 45 770 55520 397;650 350,89016,300 950 8; 350 142,150 183,140 3,670 32,610 14,292 Apr. 28*. 335,020223,890 64,180 46950 ,580 397;710 349,32014,450 920 6,850 142,600 184,500 5,020 32,670 14,297 May 26?. 336,100226,450 62,940 46710 52200 398;500 34942014,240 970 9,920 138,490 185,800 4,970 32,920 14,300 June 30*., 341,260230,930 62,610 47,720 58060 409;840 361,82016,080 99011,8901'4 5",'000 187,860 3,500 33,680 14,295 July 28*.. 340,660230,450 61,920 48,290 310 403;330 35370014,420 960 7,020141,510 189,790 4,850 33,810 14,291 Aug. 25*.. 342,910232,610 61,070 49,230 670 404.900 354 320 4,850 980 7,380139,430 191,680 5,060 34,000 14,293 Commercial banks: 1941—Dec. 31. .. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31. .. 124,019 26,083 90,606 7,331 34,806160,312150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 4. 116,284 38,057 69,221 9,006 3377,502155,377144,10312,792 240 1,343 94,367 35,360 6510,059 14,181 1962—Dec. 28... 235,839140,106 66,434 2'9",29854,049297,116262,12216,008 535 6,829 141,041 97,709 627 24,094 13,429 1963—Dec. 20... 254,162156,006 63,196 34,95950,711312,773275,12015,267 526 6,729 141,534111,064 664 25,677 13,570 1964—June 30... 260,179164,463 59,32236,394 53',168 "32'1 ,902984,90315,272 67710,257139,110119,587 099 26,768 13,669 1964—Aug. 26. .. 260,330164,400 58,800 37,130 47,910 316,090 227777,23014,390 680 6,040 134,710121,410 3,540 26,760 13,697 Nov. 25 ... 271,120170,330 62,670 38,120 52,200 331 980290,58015,460 710 7,090143,130124,190 4,500 27,380 13,746 Dec. 31... 277,376175,589 62,99138,796 60;489 346j921307,17017,938 819 6,510 155,184126,720 2,679 27,795 13,761 1965—Jan. 27... 274,000173,420 61,520 39060 51.010 333,810 292.77014,800 890 4,060143,580129,440 4,400 27,640 13,785 Feb. 24... 275,730175,530 60,520 39 680 51.580 336,010 294.13014,890 940 6,710140;370 131,220 4,330 27,750 13,786 Mar. 31*., 278,350179,040 59,040 40;270 54;510 342.110 300;77016,300 950 8,350 133,070 3,670 28,100 13,789 Apr. 28*., 281,240181,530 58,320 41 390 51.640 342;060 299;14014,450 920 6,850 134,370 5,020 28,210 13,793 May 26*.. 281,970183,720 57,100 41 150 si;230 342;490 299,05014,240 970 9,920138^30 135,490 4,970 28,410 13,796 June 30*. 286,870187,910 56,800 42 160 57;040 353;500 311;03016,080 99011,890 137,130 3,500 29,150 13,791 July 28*. . 285,820187,000 56,090 42 730 si;330 346;560 302;62014.420 960 7.020141I450 138,770 4.850 29,270 13,787 Aug. 25*. . 287,630 ,800 55,260 43,570 50.720 347.720 303.01014,850 980 7,380139,370 140,430 5,060 29,390 13,789 Member banks: 1941—Dec. 31... 43,521 18,021 19,539 5,96123,123 68,121 61,71710,385 140 ,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.. 107,183 22,775 78,338 6,070 ~2~9,845138,304 129,,'67013,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31.. 97,846 32,628 57,914 7,,3 04 32,,8 45. 132,,060 122,,52812,353 50 ,176 80,609 28,340 54 8,464 6,923 1962—Dec. 28.. 195,698118,637 52,968 24,092 47,427 2.4 9-, 4,88 . 2 1.9 ,46185,309 358 6,086117,999 79,716 3,55019,854 6,049 1963—Dec. 20.. 210,127131,712 49,342 29,073 44,395261,469 229,37614,518 382 5,986117,562 90,929 3,499 21,054 6,112 1964—June 30. . 215,132138,649 46,23530;249 46,'767 269,437 238,05214,527 525 9,342115,624 98,034 1,936 22,060 6,180 1964—Aug. 26... 215,030138,478 45,65130,90141,830 263,825230,642 13,661 531 5,411 111,458 99,581 3,354 22,088 6,188 Nov. 25. . 223,153143,241 48,383 3.1 ,,5."2" 9 4.5.i, .6_89_ 276; 406 241,14114,646 551 6,319 118,030 110011,595 4,297 22,560 6,221 Dec. 31... 228,497147,690 48,717 32,089 52,737289,142 255,72417,007 664 5,838128,539103,676 2,48122,901 6,225 1965— F J e a b n . . 2 2 4 7 . .. .. 2 2 2 2 7 5 , , 0 4 9 9 3 31 1 4 4 5 7, , 8 8 1 3 8 0 4 4 6 7 , , 3 2 6 9 4 7 3 3 2 2 1 , , 3 9 6 1 6 1 4 4 4 4 ,' ,4 7 6 50 1 2 2 7 7 7 9: 4 6 8 0 8 6 2 2 4 4 4 2 0 78 1 1 8 1 14 4 , , 1 0 3 1 8 6 7 7 7 3 9 1 3 5, , 9 6 5 62 81 1 1 1 5 8 , , 6 3 0 0 1 7 1 1 0 0 7 6 , ,0 5 6 4 5 2 4 3 , , 186 22, , 7 8 9 8 9 8 6 6 , , 2 2 3 3 6 6 Mar. 31... 229,456150,921 45,120 33,415 47749 285 300 25027715,556 795 7,510 117,349109,067 3, ,173 6,235 Apr. 28. . 231,866152,951 44,55534 360 45 106 285023 248,56313,710 759 6,263117,569110,262 4,802 23,253 6,237 May 26. .. 232,373154,705 43,615 34 053 44; 804 285 331248,49413,525 817 8,881 114,025111,246 4,70123,406 6,239 June 30*. 236,858158,402 43,502 34 95450,029 295,309 259;26315,314 83110,715119,788112,615 3,380 "2'4,104 6,235 July 28. . 235.644157,345 42.863 35 436 44 288..:568 25121613,671 803 6,296116,404 111144,042 4,598 24,193 6,230 Aug. 25*. 237,093158,885 42,064 36 144 43 289,232 251,23214,073 825 6,565114,426115,343 4,,732 24,279 6,227 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 14 17,745 1,889 533 1962—Dec. 28.. 44,558 32,716 6,129 5,714 890 46,086 41,531 43 41,478 3,951 511 1963—Dec. 20.. 48,089 36,679 5,872 5,539 826 49,621 44,516 42 44,467 4,205 509 1964—June 30.. 50,226 38,656 6,016 5,554 905 52,000 46,940 50 46,882 4,269 506 1964—Aug. 26. . 51,210 39,520 6,100 5,590 900 52,990 47,480 50 47,430 4,350 506 Nov. 25.. 52,030 40,660 5,790 5,580 900 53,830 48,390 50 48,340 4,420 505 Dec. 31. . 52,363 41,085 5,788 5,490 1,004 54,239 49,138 64 49,065 21 4,401 505 1965—Jan. 27. . 52,880 41,500 5,860 5,520 950 54,760 49,480 50 49,430 4,400 505 Feb. 24.. 53,190 41,740 5,950 5,500 1,000 55,070 49,640 50 49,590 4,450 504 Mar. 31.. 53,600 42,000 100 1,010 55,540 50,120 50 50,070 4,510 503 Apr. 28. . 53,780 42,360 860 940 55,650 50,180 50 50,130 4,460 504 May 26.. 54,130 42,730 840 970 56,010 50,370 60 50,310 4,510 504 June 30*. 54,390 43,020 810 1,020 56,340 50,790 60 50,730 4,530 504 July 28. . 54,840 43.450 830 980 56,770 51,080 60 51,020 4,540 504 Aug. 25*. 55,280 43,810 5,810 5,660 950 57,180 51,310 60 51,250 4,610 504 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1295 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 Interbank 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. Time Govt. Other 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 ,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 20,960 11,446 ,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—Aug. 26. 35,936 24,648 5,691 5,597 8,621 46,929 38,338 4,000 336 992 19,38313,627 ,365 4,421 14 Nov. 25 37,594 26,051 5,954 5,589 10,103 50,171 40,753 4,394 333 1,261 20,679 14,086 ,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 23,896 14',285 ,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 20,670 14,694 ,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 20,447 15,186 ,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 ,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 20,842 16,276 ,655 4,517 13 May 26 40,201 29,558 4,674 5,969 10,230 53,184 43,820 4,308 549 1,989 20,289 1166,685 ,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 ,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 19,9341177,095 ,426 5,091 13 Aug. 25*> 41,207 29,896 4,566 6,745 9,233 53,106 42,890 4,123 534 1,287 19,55717,389 ,586 5,114 12 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 ,409 2,280 11,432 9,993 ',277 410 5,264 3,025 262 948 13 1963—Dec. 20 9,615 6,220 ',705 ,690 1,970 11,776 10,296 ,211 395 4,887 3,787 255 996 12 1964—June 30 9,636 6,266 ,750 ,620 2,121 12,046 10,630 ,182 587 4,744 4,090 210 1,017 12 1964—Aug. 26 9,638 6,311 ,717 ,610 1,930 11,817 10,351 ,229 298 4,652 4,149 197 1,024 12 Nov. 25 10,021 6,600 ,786 ,635 2,232 12,537 11,009 ,251 380 4,906 4,450 256 ,044 12 Dec. 31 10,562 7,102 ,873 ,587 2,366 13,289 11,807 ,448 396 5,362 4,578 204 ,056 12 1965—Jan. 27 10,245 6,767 ,850 ,628 2,163 12,703 11,177 ,153 259 5,076 4,663 232 ,046 12 Feb. 24 10,296 6,963 ,678 ,655 2,184 12,842 11,153 ,238 349 4,905 4,633 322 ,053 12 Mar. 31 10,310 7,129 ,546 ,635 2,089 12,801 11,088 ,977 501 3,985 4,597 278 ,060 11 Apr. 28 10,425 7,073 ,669 ,683 2,318 13,095 11,395 ,182 463 5,047 4,681 355 ,065 11 May 26 10,363 7,108 ,643 ,612 2,232 12,961 11,282 ,169 576 4,800 4,714 333 ,071 11 June 30^ 10,802 7,381 ,743 ,678 2,310 13,501 11,687 ,292 697 4,921 4,752 415 ,097 11 July 28 10,558 7,183 ,659 ,716 2,206 13,153 11,312 1,133 395 4,936 4,829 415 ,096 11 Aug. 25^ 10,592 7,316 ,521 ,755 2,110 13,098 11,211 1,221 380 4,720 4,871 447 ,102 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 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,99011,423 2,844 353 1962—Dec. 28 73,130 46,567 18,398 8,165 19,539 94,914 84,248 7,477 82 2,337 43,609 "3,0743 1,388 7,263 191 1963—Dec. 20 78,370 51,891 16,686 9,792 18,778 99,643 87,994 7,225 95 2,212 43,459 35,004 1,417 7,697 190 1964—June 30 80,466 54,604 15,48810,37519,143102,245 91,145 6,894 118 3,771 42,387 37,974 572 8,110 183 1964—Aug. 26 80,662 55,049 14,92210,69117,185100,348 88,169 6,732 116 2,151 40,74038,430 1,415 8,173 185 Nov. 25 83,044 56,292 15,986 10,,76618,646104,306 91,299 7,102 132 2,580 42,85138,634 1,845 8,360 182 Dec. 31 84,670 57,555 16,326 10,789 -2'1,607109,053 97,145 8,289 134 2,195 46,883 "3,9645 841 8,488 182 1965—Jan. 27 83,987 57,428 15,54111,01818 104,997 92,273 6,758 184 1,580 42,848 40,903 1,756 8,504 184 Feb. 24 84,567 57,966 15,410 11,191 105,275 92,428 6,789 188 2,546 41,590 41,315 1,663 8,529 184 Mar. 31 85,374 58,771 15,03211,571 107,146 94,519 6,976 185 3,035 42,615 41,708 1,413 8,646 186 Apr. 28 86,265 59,701 14,629 11,935 107,609 94,001 6,573 181 2,538 42,651 42,058 2,310 8,675 185 May 26 86,034 60,015 14,12311,89617^84 106,851 93,130 6,366 174 3,548 40,969 42,073 2,329 8,676 180 June 30* 87,204 61,069 14,00312,132 110,037 97,405 7,157 172 4,322 42,963 42,791 1,343 8,733 181 July 28 87,272 61,417 13,64012,215 108,359 94,621 6,473 188 2,566 42,14143,253 2,257 8,756 181 Aug. 25^ 87,832 61,993 13,37712,462 108,284 94,656 6,882 201 2,724 41,124 4"3,725 2,049 8,762 179 Country member banks: 5 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 28,37814,560 23 2,934 6,519 1962—Dec. 28 80,623 44,698 25,42510,50114,559 97,008 87,342 1,773 1,931 46,89536,692 172 7,744 5,828 1963—Dec. 20 87,316 50,023 24,79712,49614,274 10033,615 92,759 1,793 1,960 48,256 40,693 390 8,377 5,897 1964—June 30 88,337 52,289 23,21812,830 14,953105,430 94,733 1,739 2,872 47,270 42,788 230 8,531 5,971 1964—Aug. 26 88,794 52,470 23,32113,00314,094104,731 93,784 1,700 1,970 46,683 43,375 377 8,470 5,977 Nov. 25 92,494 54,298 24,65713,53914,708109,392 98,080 1,899 2,098 49,594 44,425 412 8,722 6,014 Dec. 31 93,759 55,733 24,34113,68516,944 112,932 101,581 2,182 1,760 52,398 45,169 213 8,886 6,018 1965—Jan. 27 92,990 55,062 24,27613,652 14,518109,740 98,441 1,831 1,028 49,713 45,805 417 8,784 6,027 Feb. 24 93,280 55,319 24,15413,80715,234 110,568 98,863 1,752 1,980 48,659 46,408 712 8,819 6,027 Mar. 31 93,867 56,127 23,75413,986 15,,052111,155 99,673 1,751 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 1,729 1,596 49,029 47,247 482 8,996 6,028 May 26 95,775 58,024 23,17514,576 14,358112,335100,262 1,682 2,768 47,967 47,774 541 9,111 6,035 June 30*> 96,650 59,005 22,85014,79515,582114,508102,805 1,804 3,136 49,478 48,316 234 9,187 6,030 July 28 97,012 59,307 22,73014,97514,725114,058 102,020 1,765 1,926 49,393 48,865 500 9,250 6,025 Aug. 25* 97,462 59,680 22,60015,18214,995114,744102,475 1,847 2,174 49,025 49,358 650 9,301 6,025 For notes sec end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1296 COMMERCIAL AND MUTUAL SAVINGS BANKS SEPTEMBER 1965 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK- Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans Securities as C s a e s ts h i c b T a i a l l o p i i n a t t i d i - a t e a l s l Total 1 Interbank 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 N ba b o u n e f m r ks - U. S. Other ac- De- Time Time 3 Govt. counts 2 mand U.S. Other Govt. Insured commercial banks: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10654 1,762 41,29815,699 10 6,844 13,426 1945_Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13883 23,740 80,27629,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 2,615 54 1,325 92,97534,882 61 9,73413,398 1962—Dec. 28.. 234,243139,449 65,89128,903 53,702 295,093 260,609 5,844 402 6,815 140,16997,380 3,58423,71213,119 1963—Dec. 20.. 252,579155,261 62,72334,594 50,337 310,730 273,65715,077 443 6,712 140,702110,723 3,57125,27713,284 1964—June 30.. 258,597163,715 58,88036,002 52,845 319,913 283,463 5,072 59110,234138,323119,243 2,03526,35813,394 Dec. 31.. 275,053174,234 62,49938,320 59,911 343,876 305,113 7,664 733 6,487154,043126,185 2,58027,37713,486 National member banks: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6 786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9 229 14,013 45,47316,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,54119,278 45 5,409 5,005 1962—Dec. 28.. 127,254 75,548 35,66316,042 29,684 160,657 142,825 9,155 127 3,735 76,07553,733 1,636 12,750 4,505 1963—Dec. 20.. 137,447 84,845 33,38419,218 28,635 170,233 150,823 8,863 146 3,691 76,83661,288 1,704 13,548 4,615 1964—June 30.. 141,198 89,469 31,56020,168 29,511 175,250 155,978 8,488 161 5,822 75,36966,137 84114,262 4,702 Dec. 31.. 151,406 96,688 33,40521,312 34,064 190,289 169,615 0,521 211 3,604 84,53470,746 1,109 15,048 4,773 State member banks: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3739 621 13,874 4,025 1 2,246 1,502 1945_Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 411 8,166 24,168 7,986 130 2,945 L,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 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 1,544 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,72529,642 1,795 7,506 1,497 1964—June 30.. 73,934 49,179 14,67510,080 17,256 95,186 82,074 6,038 364 3,520 40,25531,897 1,095 7,799 1,478 Dec. 31.. 77,091 51,002 15,31210,777 18,673 98,852 86,108 6,486 453 2,234 44,00532,931 1,372 7,853 1,452 [nsured nonmember commercial banks: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1962—Dec. 28.. 38,557 20,811 12,932 4,814 6,276 45,619 41,142 535 43 729 22,17017,664 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 23,14019,793 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 22,69921,209 99 4,309 7,215 Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,50422,509 99 4,488 7,262 Noninsured nonmember commercial banks: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 329 1291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 31 4. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1962—Dec. 28.. 1,584 657 534 392 346 2,009 1,513 164 133 14 872 330 44 371 308 1963—Dec. 20.. 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—June 30.. 1,571 748 432 390 323 1,984 1,439 200 85 23 787 344 64 399 274 Dec. 31.. 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 Nonmember commercial banks: 1941—Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.. 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1962—Dec. 28 . 40,141 21,469 13,466 5,206 6,622 47,628 42,654 699 176 743 23,04217,994 77 4,240 7,380 1963—Dec ?0 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,97220,134 165 4,623 7,458 1964—June 30.. 45,047 25,815 13,087 6,145 6,401 52,472 46,850 745 151 915 23,48621,553 163 4,708 7,489 Dec. 31.. 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,64523,043 198 4,894 7,536 Insured mutual savings banks: 1941—Dec. 31.. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1945—Dec. 31.. 10,846 3,081 7,160 606 429 11,424 10,363 12 10,351 1 1,034 192 1947—Dec. 31.. 12,683 3,560 8,165 958 675 13,499 12,207 1 2 1212,192 1,252 194 1962—Dec. 28.. 38,597 28,778 4,639 5,180 784 39,951 36,104 9 26735,827 3,343 331 1963—Dec. 20.. 41,664 32,300 4,324 5,041 722 43,019 38,657 5 29238,359 38 3,572 330 1964—June 30.. 43,431 34,050 4,316 5,064 799 45,022 40,797 1 6 33340,456 20 3,618 327 Dec. 31.. 45,358 36,233 4,110 5,015 893 47,044 42,751 7 32642,416 20 3,731 327 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1297 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank1 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 Time3 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. 314 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 D Ju e n c. e 3 3 1 0 7 6 , , 0 7 0 9 5 5 4 4 , 9 8 6 5 0 2 5 1 1 , , 6 7 7 0 8 0 4 47 9 5 0 1 1 1 0 1 5 7 6 , , 1 9 9 7 5 7 6 6 , , 3 1 8 4 7 3 1 1 6 5 6 6, , 3 1 8 2 1 8 1 6 67 5 0 1 1 1 7 7 9 8 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 5 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 reclassified 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 .S v . 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 1960—Dec. 31. 194.5 113.8 59.9 20.8 198.5 116.7 61.0 20.9 1961—Dec. 30. 209.8 120.5 65.4 23.9 214.4 123.9 66.6 23.9 1962—Dec. 31. 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—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. 31 P 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 30* 282.2 182.6 57.6 42.0 283.4 184.4 56.8 42.2 July 28^ 281.5 182.8 56.1 42.6 281.2 182.4 5*.1 42.7 Aug. 25*> 286.0 185.8 56.7 43.5 283.1 184.3 55.3 43.6 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

1298 COMMERCIAL RANKS SEPTEMBER 1965 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans 1 Investments b c C a a l n l a l k s d s a a o n te f d l i m o T n a a v o e n n e n t d s a s t t l s 1 - Total 2 C m d t a c i r o u n n i i e a m a s d - r l l - - - A c tu u g r l r - - i- p o b k d a T s r u e r e n e o o a r r d c c s c - l F a u - h r o r o a r i r t y s t T i h i i e n n o e s g g rs b i a T n n f o s i k n ti s a T tu n o c t o i i o t T a h n l o e s rs R t e a e s t a - e l O u v i d t t a i n h o i d l - - e s - r Other Total B U il . l s S. s e G c c C t u a o i e f t r v i e r i - e t - s i r e n s m N e o n te t s Bonds s g r l S o i e a o t t c c n a i v e u a t d t s e l - . O s ri e t t h c ie e u s r ers Total: 2 1947—Dec. 31.,116,284 38,05718,1671,660 830 1,220 115 9,393 5,, 723 94769,. 221 2,193 7,789 6,034 53,205 5,276 3,729 1962—Dec. 28.,235,839 140,106 48',6737,097 144 2,131 2,578 8,459 34,259 30,553 3,909 66,434 11,674 3,993322 233,84126,987 2"4 |7"5"5" 4,543 1963—Dec. 20.,254,162156,006 52,9477470 ,509 3,605 9' ,479 39,056 34,5-—50 4,03463,196 1^059 1,65822,415 2288,06529, ,173 1964—June 30.,260,179 164,463 55,0617,688 526 2,704 2,88110,450 41,388 37,594 4,42159,322 9,061 3523,14127,08531,419 4,975 Dec. 31.277,376 175,589 60,2177,5055i542 22,843 3,49110,913 43,67539,809 5,15262,99113,377 19,039 3"0,57433,5335,263 All insured 1941_Dec. 31. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 3,15916,899 3,6513,333 1945_Dec. 31., 121,809 25,765 9,461 11, 3"1"4 3,164 3,606 49 4,677 2,3611,132 8888,912 2,45519,07116,0"4 5" 51,342 3,8733,258 1947_Dec. 31., 114,274 37,58318,012 1,610 823 ,190 114 9,266 5,654 91467,941 2,124;7,552 5,918 52,347 5,129 3,621 1962—Dec. 28., 234,243139,449 48,4587,060 5,119 2,103 2,551 8,434 33,4,123 3300,,40022 3,89065,89111,514 3,91623,715 26,746 24,547 4,356 1963—Dec. 20., 252,579155,26152,7437,444 5,321 2", 4'7"6" 3,594 9,415 3388,886611 3344,338833 44,01562,72310,952 1,64922,316 27,806 29,559 5,035 1964—June 30. 258,597 163,715 5-4,8557,,663 5,492 2,671 2,83910,414 4411,190 37432 4,40358,880 8,970 32 23,044 26,83531,1184 4,818 Dec. 31. 275,053174,234 59 ,355 2,794 3,41910,812 433,436 39627 5,11262,49913,275 18,939 30,28533,294 5,026 Member, total 1941 _Dec. 31. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,00715,561 3,090 2,871 1945_Dec. 31. 107,183 22,775 8,949 885555 3,133 3,378 47 3,455 1,900 1,05778,338 2,27516,98514,27144,807 3,254 2,815 1947_Dec. 31. 97,846 32,62816,9621,046 8111,065 113 7,130 4,662 83957,914 1,987 5,816 4,815 45,295 4,199 3,105 1962—Dec. 28.195,698 118,637 43,843 4,,4 19 4,,954 1,777 2,445 7,936 27,162 24,799 3,65752,968 8,862 3,24919,443 21,414 20773 3,319 1963—Dec. 20.210,127 131,712 47,403 4,665599 55,,112244 22,136 3,439 8,875 31,009 27,990088 33; 7"6'5" 49,342 8,032 1,30718,072 21, ,210 3,864 1964—June 30.215,132 138,649 49,217 4755 5,341 2,320 2,733 9,887 32,794 30,275 4137 46,235 6,707 1618,572 20,940 26,557799 33,670 Dec. 31.228,497 147,690 53,717 4643 5,142 2,411 3,25010,179 34,587 32,024 4824 48,717 9,932 15,238 23,548281374 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 2,4531,172 26 80 287 27217,574 477 3,433 3,32510,339 606 629 1947_Dec. 31. 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,002 640 558 9,772 638 604 1962—Dec. 28. 32,989 21,95411,943 17 2,766 425 572 2,087 1,329 2,1431,196 7,017 1,998 508 2,488 2,023 3,585 432 1963—Dec. 20. 34,827 23,57712,332 26 2,677 569 1,007 2,247 1,968 2,2571,068 6,154 1,711 147 2,341 1,955 4,653 442 1964—June 30. 36,693 25,49012,647 213,045 625 1,014 2,762 2,296 2,548 \1128 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 2,654 ,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 1,022 193 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 89 703 362 523 369 2,129 377 115 849 788 1,242 168 1963—Dec. 20. 9,615 6,220 3,378 497 181 242 751 401 594 318 1,705 347 42 599 717 1,361 329 1964—June 30. 9,636 6,266 3,332 498 192 200 893 409 600 318 1,750 418 652 680 1,370 251 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 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 33817 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 j2,358 1,90115,563 1,342 ,053 1962—Dec. 28. 73,130 46,56717,6601,1791,053 752 1,020 3,58311,030 9,860 1,26618,398 2,343 1,403 7,257 7,395 7,252 913 1963—Dec. 20. 78,370 51,89118,862 ,2191,243 891 1,224 4,28612,52511,106 ,46216,686 2,152 545 6,600 7,390 8,810 981 1964—June 30. 80,466 54,60419,624 1,1731,155 970 953 4,70613,20712,063 ,,75315,488 2,206 6,566 6,715 9,449 925 Dec. 31. 84,670 57,555 21 1,0951,060 986 1,134 4,88713,61112,802 1,977 1'6 ,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 ,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 630 5,102 4,544 16,722 1,342 1,,067 1947_Dec. 31. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 22,857 480 2,583 2,108 17,687 2,006 1,262 1962—Dec. 28. 80,623 44,69811,299 3,187 728 447 764 1,563 14,44112,273 82625,425 4,144 1,223 8,84911,209 8,6941,807 1963—Dec. 20. 87,316 50,02312,8313,374 708 496 966 1,591 16,114 1133,951 991177 24,797 3,822 573 8,531 11,87110,3852,111 1964—June 30. 88,337 52,28913,661144 33,535 644 534 565 1,525 16,88315,063 93923,218 2,749 15 8,72811,72510,880088 2,022 Dec. 31. 93,759 55,73314,5563,493 830 599 710 1,730 17,964 1"5,899 047 24,341 4,209 7,20612,92511,5312,154 Nonmember 1947—Dec. 31. 18,454 5,432 1,205 614 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 ,678 190 354 132 523 7,097 5,754 252 1133,466 2,812 683 4,398 5,573 3,9821,224 1963—Dec. 20 * 44,035 24,295 5,544 2,811 229 373 166 604 8,047 6,643 269 13,854 3,027 351 4,343 6,133 4,576 1,309 1964—June 30. 45,047 25,815 ,844 2,933 185 384 149 563 8,594 7,320 284 13,087 2,354 19 4,569 6,144 4,841 1,305 Dec. 31. 48,879 27,899 6' ,862 400 432 241 733 9,0" 7,786 328 14,273 3,445 3,801 7,026 5,159 1,548 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

SEPTEMBER 1965 COMMERCIAL BANKS 1299 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d B s w F e R a r . i e n v R t - h k e . s s r C c e a o n n u i c d r n - y b m a a w B d n e n a o i c s k l t - - e t h s i s c 3 ju m p D s o a d a t e s d e e n - - i - d t d s « 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 f e e e i e t f n c e f r r c d i . t s d - k i ' - s, IPC I b n a t n e k r- G P U S i a n o o a . n S g s v v d . t s - t a . l S g l a o o t n c a v d a t t e l . IPC r B i o n o w g r s - - co a u c- nts Total: 2 1947_Dec. 31.. 17,796 2,216 10,216 87,123 11,362 ,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1962—Dec. 28.. 17,680 4,252 13,099 1"2'4,342 14,713 ,295 6,829 12,071 4,511 124,459 535 269 6,450 90,,9 913,,627 24,094 1963—Dec. 20.. 17,150 4,048 12,312 126,579 14,048 ,218 6,729 12,256 4,494 124,784 526 269 7,908 102,886 33,,666644 2255,677 1964—June 30.. 16,774 4,539 12,693122,537 13,909 ,36310,257 12,583 4,832 121,695 677 257 8,680 1_1_O;,6_5_O. 2,099 26,768 Dec. 31.. 17,581 4,532 15,111134,671 16,369 ,569 6,510 13,519 5,970 135,694 819 272 9,812 116,635 2679 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 ,224488 2>33,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.. 17,796 2,145 9,736 85,751 11,236 ,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1962—Dec. 28.. 17,680 4,232 12,795123,361 14,579 ,265 6,815 11,991 4,434 123,744 402 269 6,397 90,714 3,584 23,712 1963—Dec. 20.. 17,150 4,033 11,984 1'2"5,615 13,900 ,177 6,712 12,175 4,429 124,098 443 269 7,853 102,600 3,571 25,277 1964—June 30.. 16,774 4,524 12,409 121,608 13,756 316 10,234 12,491 4,781 121,051 591 257 8,634 110,352 2,035 26,358 Dec. 31.. 17,581 4,515 14,613133,336 16,210 |454 6,487 13,423 5,856 134,764 733 272 9,766 116,147 2,580 27,377 Member, fatal: 1941 _Dec. 31.. 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945_Dec. 31.. 15,811 1,438 7,117 64,184 12,333 ,224433 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947_Dec. 31.. 17,797 1,672 6,270 73,528 10,978 ,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1962—Dec. 28.. 17,680 3,263 7,897101,528 14,071 ,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 7,359102,816 13,378 ,140 5,986 9,376 4,055 104,130 382 240 6,364 84,326 3,499 21,054 1964—June 30.. 16,774 3,511 7,807 99,288 13,247 ,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 9,057108,324 15,604 ,403 5,838 10,293 5,368 112,878 664 239 8,012 95,425 2,48122,901 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 ,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 ,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 8,937 1,728 3,898 1963—Dec. 20.. 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 449 10,9201,438 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 ,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 1J416!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 57—2 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 1,199 5,465 2,004 435 21,797 52 219 12,224 11 2,525 1947—Dec. 31.. 4,993 929 3,900 27,424 1,049 432 2,647 528 25,203 45 337 14,177 23 2,934 1962—Dec. 28.. 4,817 1,947 5,389 44,689 1,753 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 1,764 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 1,705 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 * 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

1300 WEEKLY REPORTING MEMBER BANKS SEPTEMBER 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financial institutions Total Loans Wednesday m i l n o a e v a n n e n d s ts s t- 1 j i m u n a a s v e n d t e n e - d s t d t s - 2 j L us a o t d a e - n d s 2 i C n m t a c r d o n i i e a u m a d r l l s - - - A t c u u g r l r a - i l - G U c a T t u o i . n e o n S v d s - . t b . d r e o O a c k t l s u e t i e e h e r r r - s i s e s - r G U c t s u T o i . e e S r v - o s i . t - . oth O c e t s u t i r e h e r s - s e i- r F ei o g r n - Ban c k m m D c o t e i i e o m a c s - r l - - - f P s C i a e a n O e N t n l c a S r e d . . s n o , s . . nb O an t k her e R st e a a t l e o A th l e l r V s t e a r i r o e l v u - n e a s - Total— Leading cities 1964 143,676 141,660 95,374 38,700 1,557 1,181 3,381 1,866 1,182 2,016 4,476 3,968 19,157 21,877 2,058 Aug-,!::::::::: 143,584 141,237 95,177 38,874 ',546 919 3,337 1,867 1,190 2,347 4,322 3,995 19,227 21,882 2,053 19 144,408 142,192 95,666 38,915 ,550 1,118 3,324 1,916 1,150 2,216 4,448 4,068 19,276 21,920 2,093 26 143,688 141,389 94,962 38,902 ,542 686 3,303 1,909 1,178 2,299 4,278 3,965 19,292 21,933 2,095 1965 July 7 159,966 157,499 110,220 46,688 ,601 1,231 3,669 1,963 1,585 2,467 5,361 4,365 21,193 24,794 2,301 14 159,373 156,991109,766 46,706 ,619 1,137 3,319 1,962 1,594 2,382 5,192 4,393 21,262 24,8C9 2,296 21 158,291 156,086108,996 '46,455 ,632 906 3,190 1,967 1,553 2,205 4,953 4,393 21,336r24,837 2,294 28 158,019 155,795108,551 46,282 ,640 585 3,088 1,970 1,555 2,224 4,974 4,510 21,368r24,807 2,297 Au8if:::::::::: 1 15 5 8 9 , , 6 3 8 0 6 7 1 15 5 6 6 , , 3 6 4 5 9 6 1 1 0 0 9 9 , , 1 2 1 8 1 6 4 4 6 6, , 7 5 0 9 6 0 , , 5 5 7 8 8 8 4 5 8 9 7 4 3 3 , , 1 0 4 6 1 2 1 1 , , 9 9 6 6 7 7 1 1 , ,5 5 5 5 1 0 2 2, , 6 3 5 3 1 7 5 5 , , 3 0 0 8 5 2 4 4, , 5 4 0 9 2 4 2 2 1 1 , , 5 4 0 1 5 8 2 2 4 4 , , 8 8 9 8 4 2 2 2 , , 2 2 9 9 9 8 18 159,393 156,970 110099,921 47,002 ,588 758 3,051 1,961 1,571 2,423 5,124 4,528 21,617 24,953 2,298 159,022 156,834109,853 46,897 ,585 664 3,046 1,988 1,533 2,188 5,214 4,556 21,681 24,916 2,295 25 New York City 1964 Au8-ii:::::::::: 3 34 4 , , 5 6 1 4 1 2 3 3 4 3, , 6 0 7 7 3 7 2 2 3 3 , , 4 1 6 5 6 0 1 1 2 2 , , 2 2 5 6 9 8 7 5 4 6 0 7 1 1 , ,9 8 1 6 1 0 5 6 9 0 9 6 6 63 2 6 8 5 8 6 3 5 8 , ,3 4 7 7 1 0 8 81 3 9 7 2 2 , , 0 0 8 8 5 3 3 3 , , 4 4 7 6 7 2 5 5 6 6 1 1 19 34,558 34,050 23,321 12,274 627 1,894 605 614 508 ,458 848 2,094 3,453 575 26 34,313 33,615 22,977 12,282 398 1,867 603 625 698 ,353 841 2,101 3,453 574 1965 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 ,975 522 841 776 ,666 960 2,613 4,075 610 21 39,301 38,315 27,600 15,454 369 ,843 529 802 986 ,528 969 2,618 4,066 610 28 39,068 38,148 27,421 15,365 290 ,794 529 805 920 ,543 1,013 2,621 4,040 610 Aug. 4 39,436 38,649 27,917 15,550 266 ,868 531 787 787 ,783 1,027 2,635 4,046 610 11 39,291 38,476 27,787 15,620 220 ,819 530 791 815 ,655 1,027 2,659 4,043 610 18 39,478 38,728 28,164 15,695 450 ,822 527 818 750 ,630 1,041 2,690 4,068 610 25 39,431 38,877 28,226 15,731 376 ,824 549 788 554 ,725 1,058 2,703 4,050 610 Outside New York City 1964 109,034 107,583 71,908 26,432 1,539 1,470 ,267 1,451 3,006 3,149 17,072 18,400 ,497 109,073 107,564 72,027 26,615 1,528 352 1,477 ,261 554 1,509 2,951 3,158 17,144 18,420 ,492 19 109,850 108,142 72,345 26,641 1,532 491 1,430 ,311 536 1,708 2,990 3,220 17,182 18,467 ,518 26 109,375 107,774 71,985 26,620 1,525 288 1,436 ,306 553 1,601 2,925 3,124 17,191 18,480 ,521 1965 July ,£::::::::::: 119,726 118,019 81,409 31,025 1,587 556 ,416 ,445 753 1,707 3,541 3,393 18,581 20,749 ,691 119,547 117,941 81,509 31.089 1,604 571 ,344 ,440 753 ',606 3,526 3,433 18,649 20,734 ,686 21 118,990 117,771 81,396 '31,001 1,617 537 ,347 ,438 751 ,219 3,425 3,424 18,718 '20,77'1 ,684 28 118,951 117,647 81,130 '30,917 1,625 295 ,294 ,441 750 ,304 3,431 3,497 18,747 T20,161 ,687 Aug-,?:::::::::::: 119,871 118,007 81,369 31,040 1,560 328 ,273 ,436 763 ,864 3,522 3,467 18,783 20,836 ,689 119,395 117,873 81,324 31,086 1,571 267 ,243 ,437 760 ,522 3,427 3,475 18,846 20,851 ,688 18 119,915 118,242 81,757 31,307 1,571 308 ,229 ,434 753 1,673 3,494 3,487 18,927 20,885 ,688 25 119,591 117,957 81,627 31,166 1,569 288 ,222 ,439 745 1,634 3,489 3,498 18,978 20,866 1,685 For notes see p. 1302 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 WEEKLY REPORTING MEMBER BANKS 1301 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued [In millions of dollars] Investments Cash assets 3 Total U.S. Government securities assets— Total Wednesday Total Bills C ti e fi r - - No m te a s tu a r n i d n g b — onds O s r e i t t c h i u e e s - r Total d a o w B n t m a i i c t c l e e h - s s- a w e B f n o i i a c g r t l e n h - - s Cu c a r o r n i e d n ncy B s F w e R a . r i e n v t R - k h e . s s a o s A th se l e l t r s a c l c i a c a a t p i o b n e i i u d s t l a n i- l ts cates W i i n th- 1 to After banks banks lyear 5 years 5 years Total— Leading cities 1964 Aug. 5 26,049 4,021 3,043 11,255 7,730 20,237 18,024 3,008 254 1,654 13,108 5,633 181,364 12 25,805 3,800 3,069 11,186 7,750 20,255 17,456 3,084 246 1,822 12,304 5,670 181,638 19 26,205 3,773 3,434 11,274 7,724 20,321 17,465 3,046 256 1,820 12,343 5,523 181,858 26 25,961 3,632 3,446 11,267 7,616 20,466 17,228 2,940 255 1,854 12,179 5,526 179,767 1965 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 Aug-n::::::::: 2 2 3 3 , , 3 5 2 6 5 2 2 2 , , 6 95 8 6 0 3 3 , , 6 6 7 9 4 0 9 9 , , 8 7 2 8 5 2 7 7 , , 1 1 4 3 6 4 2 2 3 3 , , 9 8 1 0 3 8 1 1 7 8 , , 8 7 5 4 0 7 2 3 , , 9 05 0 6 4 2 1 1 9 3 9 1 1, , 9 8 6 3 2 4 1 1 2 3 , , 7 6 7 5 1 8 6 6 , , 5 4 2 8 5 0 1 1 9 9 9 7 , , 9 9 4 6 9 0 18 23,043 2,455 3,893 9,754 6,941 24,006 18,072 3,035 223 1,973 12,841 6,344 199,127 22,885 2,404 3,967 9,631 6,883 24,096 18,196 2f "" 199 2,039 13,090 6,372 197,465 25 New York City Aug-.I: 1 : 9 : 6 : 4 ::::: 5,408 1,465 636 1,864 1,443 5,203 3, 82 115 254 3,534 2,328 45,264 5,333 1,381 661 1,870 1,421 5,190 3,753 142 110 265 3,236 2,372 45,187 19 5,528 1,402 729 1,970 1,427 5,201 4,105 138 118 257 3,592 2,295 45,781 26 5,406 1,328 718 1,970 1,390 5,232 3,955 106 120 264 3,465 2,297 45,059 1965 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 Au8-n::::::::: 4 4, , 5 5 4 7 6 8 7 8 4 1 7 8 7 7 1 2 4 6 , , 4 50 8 1 2 , ,5 5 7 6 2 4 6 6 , , 1 1 5 4 4 3 4 4 , , 6 1 9 8 : ' 1 1 2 3 3 3 1 9 0 3 4 2 2 8 9 0 2 4 3 , , 1 6 9 6 6 0 2 2 , , 5 5 8 7 9 0 5 5 1 0 , , 5 7 9 5 6 4 18 4,369 687 640 ,535 ,507 6,195 4,407 135 114 281 3,877 2,582 51,358 25 4,350 694 666 ,513 ,477 6,301 4,397 79 93 294 3,931 2,589 51,078 Outside New York City 1964 20,641 2,556 2,407 9,391 6,287 15,034 14,039 2,926 139 1,400 9,574 3,305 136,100 Aus- 20,472 2,419 2,408 9,316 6,329 15,065 13,703 2,942 136 1,557 9,068 3,298 136,451 19 20,677 2,371 2,705 9,304 6,297 15,120 13,360 2,908 138 1,563 8,751 3,228 136,077 26 20,555 2,304 2,728 9,297 6,226 15,234 13,273 2,834 135 1,590 8,714 3,229 134,708 1965 July 7. 19,204 2,194 3,061 8,392 5,55 17,406 14,316 3,044 105 1,613 9,554 3,844 149,357 14. 19,04.' 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 1,97: 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 18,984 2,138 2,976 8,300 5,570 17,654 14,055 2,933 106 1,554 9,462 3,936 148,353 18,779 1,933 2,948 8,324 5,57- 17,770 13,661 2,771 109 1,670 9,111 3,910 147,206 18 18,674 1,768 3,253 8,219 5,43. 17,811 13,665 2,900 109 1,692 8,964 3,762 147,769 25 18,535 1,710 3,301 8,118 5,406 17,795 13,799 2,789 106 1,745 9,159 3,783 146,387 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1302 WEEKLY REPORTING MEMBER BANKS SEPTEMBER 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 n s t t a a e d l d - 4 ju p m d s o a a t d s e e n i ; - d t d s 5 Total 6 IPC S l g a o o t n c a v d a t t e l . e F ig o n r- 1' G U o . v S t . . c m m D c o t i i e e m o a c s r - l - - - Total* S in a g v s - IPC Oth S l e a o r t n c a d t a t i e l me e F » ig o n r- i B F F a r . n o R m k . s o F t r h o e m rs liabili- co a u c n - ts banks govt. Total- Leading cities 1964 Aug. 5 156,645 62,952 92,827 66,198 5,215 988 4,16011,684 63,818 39,24215,818 4,492 3,740 644 2,854 5,994 15,227 12 156,978 62,613 92,957 67,213 4,897 905 3,83111,585 64,021 39,30215,935 4,483 3,775 92 3,224 6,102 15,242 19 156,995 61,332 92,832 65,611 4,596 876 5,45311,585 64,163 39,36915,940 4,533 3,801 118 3,321 6,190 15,234 26 155,064 62,393 90,735 65,413 4,889 920 4,02110,996 64,329 39,42116,026 4,557 3,800 75 3,125 6,245 15,258 1965 July 7 173,854 63,035 100,182 68,624 4,936 2,0477,04312,882 73,672 43,13719,972 5,656 4,196 395 4,130 6,824 16,807 14 173,276 63,116 99,067 69,917 4,723 2,012 66,00512,381 74,209 43,28720,240 5,734 4,233 179 4,328 7,003 16,777 21 170,558 63,313 96,154 68,459 4,563 1,9815,93611,484 74,404 43,376 2"0,322 5,752 4,242 220 4,002 6,890 16,752 28 169,339 64,179 94,579 68,102 4,900 2,002 "5,022 10,862 74,760 43,429 20,542 5,766 4,302 486 3,877 6,955 16,773 Aug. 4 171,139 63,285 96,234 67,407 5,320 1,958 5,31812,261 74,905 43,544 20,571 5,760 4,306 368 4,557 7,033 16,852 11 169,483 62,888 94,305 67,186 4,841 1,976 4,85311,620 75,178 43,644 20,610 5,876 4,330 222 4,264 7,131 16,860 18 170,079 61,589 94,704 66,575 4,710 1,910 5,96211,835 75,375 43,71920,753 5,872 4,301 266 4,604 7,349 16,829 168,805 62,791 93,102 66,415 4,758 1,866 5,08211,354 75,703 43,779 2""0,923 5,932 4,324 374 4,096 7,358 16,832 25 New York City 1964 Aug- ,§:::::: 36,988 15,799 24,196 16,277 256 1,493 1,150 2,938 12,792 4,477 4,953 395 2,639 30 ,295 2,712 4,239 36,839 15,577 24,017 16,310 347 1,416 1,041 2,848 12,822 4,488 4,931 404 2,671 ,345 2,750 4,245 19 37,234 15,188 24,387 16,104 256 1,393 1,388 2,988 12,847 4,500 4,924 415 2,686 ,578 2,732 4,235 26 36,724 15,524 23,855 16,189 282 1,409 980 2,857 12,869 4,509 4,936 422 2,677 ,359 2,738 4,233 1965 July 7 42,817 15,553 26,740 16,672 305 1,483 2,036 3,400 16,077 5,022 7,018 576 2,964 163 ,512 3,236 4,925 14 42,269 15,351 25,949 16,809 315 1,463 ,670 3,323 16,320 5,046 7,185 599 2,998 ,747 3,246 4,915 21 41,669 15,489 25,295 16,498 268 1,427 ,693 3,172 16,374 5,058 7,227 608 2,993 ,382 3,160 4,912 28 41,561 15,721 25,072 16,624 256 1,455 ,394 3,093 16,489 5,062 7,284 614 3,037 62 ,332 3,146 4,914 Aug. 4 41,625 15,412 25,118 16,198 263 1,426 ,542 3,285 16,507 5,083 7,274 615 3,045 110 ,698 3,214 4,949 11 40,927 15,276 24,331 15,895 333 1,427 ,367 2,984 16,596 5,097 7,292 679 3,043 47 ,609 3,219 4,952 18 41,144 14,966 24,496 15,948 283 1,373 ,552 3,087 16,648 5,107 7,369 662 3,022 ,821 3,451 4,942 25 41,168 15,437 24,393 16,184 317 1,348 ,272 3,023 16,775 5,114 7,459 667 3,039 109 ,421 3,444 4,936 Outside New York City 1964 Aug. 5 119,657 47,153 68,631 49,921 4,959 495 3,010 8,746 51,026 34,76510,865 4,097 1,101 614 1,559 3,282 10,988 12 120,139 47,036 68,940 50,903 4,550 489 2,790 8,737 51,199 34,81411,004 4,079 1,104 84 1,879 3,352 10,997 19 119,761 46,144 68,445 49,507 4,340 483 4,065 8,597 51,316 34,86911,016 4,118 1,115 116 1,743 3,458 10,999 26 118,340 46,869 66,880 49,224 4,607 511 3,041 8,139 51,460 34,91211,090 4,135 1,123 70 1,766 3,507 11,025 1965 July 7 131,037 47,482 73,442 51,952 4,631 564 5,007 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 Aug. 4 129,514 47,873 71,116 51,209 5,057 532 3,776 8,976 58,398 38,46113,297 5,145 1,261 258 2,859 3,819 11,903 128,556 47,612 69,974 51,291 4,508 549 3,486 8,636 58,582 38,54713,318 5,197 1,287 175 2,655 3,912 11,908 \%Y.Y.'.\ 128,935 46,623 70,208 50,627 4,427 537 4,410 8,748 58,727 38,61213,384 5,210 1,279 266 2,783 11,887 25 127,637 47,354 68,709 50,231 4,441 518 3,810 8,331 58,928 38,66513,464 5,265 1,285 265 2,675 3'914 11,896 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. * 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. Aug. 4 Aug. 11 Aug. 18 Aug. 25 «Includes certified and officers' checks and deposits of mutual savings Total—Leading Cities 15.822 16,003 16,014 16,177 banks, not shown separately. New York City 6i622 6,734 6,766 6,847 7 Deposits of foreign governments and official institutions, central Outside New York City. . 9,200 9,269 9,248 9,330 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 BUSINESS LOANS OF BANKS 1303 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANES (In millions of dollars) Outstanding Net change during— 1965 1965 1965 1964 1965 1964 Industry A 2 u 5 g. A 1 u 8 g. Aug. Au 4 g. Ju 2 l 8 y Aug. July June IV h 1 a s l t f h 2 a n l d f Durable goods manufacturing: Primary metals 806 804 787 770 770 36 -31 24 68 92 -18 160 -99 Machinery 2,733 2,740 2,726 2,713 2,700 33 -41 20 77 457 93 534 12 Transportation equipment \145 1,140 ,141 ,118 1,103 42 37 38 55 64 60 119 47 Other fabricated metal products.. ,321 1,329 ,331 ,297 1,282 39 -3 98 154 169 -36 323 -36 Other durable goods ,472 1,461 ,461 ,440 1,427 45 -11 59 142 143 -66 285 -9 Nondurable goods manufacturing: Food, liquor, and tobacco ,516 1,539 ,511 ,527 1,513 3 -117 69 -191 -179 527 -370 704 Textiles, apparel, and leather ,877 1,826 ,800 ,767 1,733 144 39 129 176 248 -359 424 -295 Petroleum refining ,289 1,248 ,239 ,236 1,227 62 -4 29 23 166 33 189 -11 Chemicals and rubber ,636 1,669 ,654 1,659 1,656 -20 -47 66 109 190 232 299 249 Other nondurable goods ,174 1,165 ,145 1,125 1,110 64 15 19 106 97 -94 203 -63 Mining, including crude petroleum and natural gas 3,327 3,343 3,334 3,333 3,326 1 -24 35 218 295 221 435 Trade: Commodity dealers 1,041 1,025 1,020 1,021 1,015 26 -24 -76 -370 -20 391 -390 545 Other wholesale 2,547 2,563 2,573 2,560 2,540 7 7 18 144 126 81 270 156 Retail 2,986 3,050 2,982 3,066 2,953 33 -221 123 267 414 -211 681 -68 Transportation, communication, and other public utilities 5,146 5,132 5,148 5,161 5,216 -70 47 439 520 -15 237 505 637 Construction 2,557 2,565 2,541 2,525 2,525 257 2 38 259 142 All other :i 32 Bankers' acceptances. 793 826 819 813 800 -82 21 94 -307 174 -213 235 All other types of business, mainly -7 services 6,055 6,050 5,995 6,010 5,939 -19 144 136 428 394 564 355 Total classified loans 39,421 39,475 39,207 39,141 38,835 116 -475 ,343 1,770 2,293 1,771 4,063 2,936 586 Commercial and industrial loans— All weekly reporting banks , 46,897 47,002 46,706 46,590 r46,282 615 r-565 1,624 2,227 2,501 2,166 4,728 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 p A e a r n r i e d o a d lo A a l n l s 1- (thou 1 s 0 a - nds of 1 d 0 o 0 l - lars) 200 p A e a r n r i e d o a d lo A a l n l s 1- (thou 1 s 0 a - nds of 1 d 00 o - llars) 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.:* 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 5.59 5.35 5.08 4.66 1958, 4.3 5.5 5.0 4.6 4.1 1965—Mar 4.74 5.62 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 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 5.88 5.58 5.32 4.85 Quarter :i 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 i Based on new loans and renewals for first 15 days of month. Changes thereafter occurred on the following dates (new levels shown in per cent): 1955—Aug. 4, 3%; Oct. 14, 3%; 1956—Apr. 13, 3%; Aug. NOTE.—Weighted averages. For description see Mar. 1949 BULL., pp. 21, 4; 1957—Aug. 6, 4%; 1958—Jan. 22, 4; Apr. 21, 3%; Sept. 11, 4; 228-37. Bank prime rate was 3 per cent Jan. 1, 1955—Aug. 3, 1955. 1959—May 18, 4%; Sept. 1, 5; and 1960—Aug. 23, 4%. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1304 INTEREST RATES SEPTEMBER 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 m 4 p o - a n t p o t e h r 6 s - 1 m d 3 p i o - r l n a e to c c th e tl 6 s d y - , 2 9 a 0 a c n d c c a e e y p s s t , - 1 r fu at n e d s 3 on i R s s a n u t e e e w M y a ie r l k d et on i R s s a n u t e e e w M y a ie r l k d et ( y m i B e a l i d r ll k ) s e 5 t Other 6 i 3 s - s y u t e o e a s r 5 7 - 1962 3.26 3.07 3.01 2.68 2.778 2.77 2.908 2.90 3.01 3.02 3.57 1963 3.55 3.40 3.36 3.18 3.157 3.16 3.253 3.25 3.30 3.28 3.72 1964 3.97 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1964—Aug 3.88 3.76 3.75 3.50 3.506 3.50 3.618 3.61 3.67 3.73 3.99 Sept 3.89 3.75 3.75 3.45 3.527 3.53 3.666 3.68 3.73 3.82 4.03 Oct 4.00 3.91 3.75 3.36 3.575 3.57 3.729 3.72 3.79 3.83 4.04 Nov 4.02 3.89 3.79 3.52 3.624 3.64 3.794 3.81 3.86 3.88 4.04 Dec 4.17 3.98 4.00 3.85 3.856 3.84 3.971 3.94 3.96 3.96 4.07 1965—Jan 4.25 4.05 4.00 3.90 3.828 3.81 3.944 3.94 3.91 3.87 4.06 Feb 4.27 4.12 4.10 3.98 3.929 3.93 4.003 4.00 4.00 3.97 4.08 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 June 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 Aug 4.38 4.25 4.14 4.12 3.836 3.84 3.938 3.95 3.96 4.00 4.19 Week ending— 1965—July 31 4.38 4.25 4.13 4.09 3.803 3.81 3.873 3.88 3.87 3.97 4.12 Aug. 7 4.38 4.25 4.13 4.11 3.832 3.84 3.927 3.94 3.94 4.00 4.16 14 4.38 4.25 4.13 4.13 3.846 3.82 3.948 3.93 3.94 4.02 4.17 21 4.38 4.25 4.13 4.13 3.813 3.82 3.923 3.93 3.95 3.98 4.20 28 4.38 4.25 4.15 4.13 3.855 3.86 3.955 3.96 4.00 4.00 4.21 1 Averages of daily offering rates of dealers. 5 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. 7 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 bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio States Total i (longterm) Total i Aaa Baa Aaa Baa 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 Aug 4.14 3.27 3.08 3.54 4.57 4.41 4.82 4.52 4.65 4.54 4.29 3.03 Sept 4.16 3.30 3.09 3.57 4.57 4.42 4.82 4.52 4.65 4.53 4.25 3.00 5.60 Oct 4 16 3.31 3.11 3.58 4 57 4 42 4.81 4 53 4 66 4 52 4 25 2.95 Nov 4 12 3 27 3 08 3 52 4 58 4 43 4 81 4 53 4 67 4 53 4 25 2 96 Dec 4.14 3.23 3.01 3.51 4.58 4.44 4.81 4.54 4.68 4.54 4.23 3.05 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 3.44 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 Aug 4.19 3.32 3.16 3.55 4.65 4.49 4.89 4.63 4.73 4.60 4.34 3.06 Week ending— 1965 July 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 Aue 7 4.16 3.32 3.16 3.55 4.64 4 47 4.88 4 63 4.72 4 58 4.38 3.06 " 14 4.18 3.31 3.15 3.55 4.64 4.48 4.87 4.63 4.72 4.59 4.36 3.07 21 4.20 3.31 3.15 3.55 4.66 4.50 4.89 4.63 4.73 4.60 4.29 3.04 28 4.21 3.33 3.17 3.56 4.67 4.51 4.89 4.64 4.75 4.61 4.33 3.05 Number of issues 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

SEPTEMBER 1965 SECURITY MARKETS 1305 MORTGAGES: NEW HOMES SECURITY PRICES FHA- Conventional first mortgages Common stock prices insured Bond prices (1941-43= 10) u V m ol e - 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 p e t n e c e . t s r ) , ( M t y i u t r y a 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 l U e o o r . n m S v g . t ) - . S l a o t n c a d a te l A C p a A o o te r r A - - Total d t I r u n 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 86.94 112.1 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 24.0 73.3 16.3 1964 5.45 5.78 .57 24.8 74.1 17.3 1964—Aug... 84.59 111.8 95.3 82.00 86.70 47.17 71.17 3,919 Sept... 84.31 111.0 95.1 83.41 88.27 47.14 72.07 5,228 1964—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 r93.9 84.91 89.92 43.31 74.63 4,056 May.. 5.45 5.77 .53 24.9 74.4 18.2 Aug... 84.00 111.0 93.5 86.49 91.68 46.13 74.71 4,962 June.. 5.44 5.76 .49 24.6 73.9 17.5 July.. 5.44 5.77 .55 25.0 75.0 18.3 Week Aug... 5.45 Ending— 1 Last 6 months only. J A u u ly g . . 3 7 1 8 8 4 4 . . 3 4 1 6 1 11 1 1 1 . . 1 1 9 93 3 . . 7 8 8 85 4 . . 7 3 1 8 9 8 0 9 . . 8 3 0 7 4 45 3 . . 3 7 7 6 7 74 3 . . 5 8 3 7 4 4 , , 5 56 2 6 7 14... 84.16 111.1 93.6 86.20 91.33 45.82 74.79 4,976 NOTE.—Annual data are averages of monthly figures. Yields 21 83.92 111.1 93.4 86.88 92.10 46.53 74.89 4,965 on FHA-insured mortgages are derived from weighted averages 28 83.73 110.7 93.2 86.88 92.15 46.53 74.55 5,411 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 5 1/A per cent, and an assumed prepayment period of 15 years. Price data are NOTE.—Annual data are averages of monthly figures. Monthly and weekly reported as of the first of the succeeding month. data are averages of daily figures unless otherwise noted and are computed as Conventional first mortgages, Home Loan Bank Board in follows: U.S. Govt. bonds, derived from average market yields in preceding table cooperation with Federal Deposit Insurance Corporation be- on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, ginning in late 1962; interest rate data for earlier years—in derived from average yields as computed by Standard and Poor's Corp., on basis parentheses—are based on estimates from Federal Housing of a 4 per cent, 20-year bond; Wed. closing prices. Common stocks, Standard Administration. and Poor's index. Volume of trading, average daily trading in stocks on the N.Y. Stock Exchange for a 5Vi-hour trading day. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit balances with Bank loans 1o other than N. Y. Stock Exchange brokers and dealers for pur- Money borrowed on— Cusfirms secured by— chasing or carrying— tomers' Months Total net securities free other than Other securities 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 ra e l r co O ll t a h te er ral an ba c l e - s 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— 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 Aug 6,874 22 4,886 68 1,988 145 3,626 3,108 518 1,193 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

1306 OPEN MARKET PAPER; SAVINGS INSTITUTIONS SEPTEMBER 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 rt - s p E o x r - ts Dollar shi p p o p i e n d t s b i e n tw — een Total through direct- Others into from exdealers 1 ly 2 Total O bi w lls n bo B u il g ls ht O ac w ct n . c F e o i o g r r n r - . U S n ta i t t e e s d U S n ta i t t e e s d change U S n ta i t t e e s d Foreign 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 1960 4,497 1,358 3,139 2,027 662 490 173 74 230 1,060 403 669 122 308 524 1961 4,686 1,711 2,975 2,683 1,272 896 376 51 126 1,234 485 969 117 293 819 1962 6,000 2,088 3,912 2,650 1,153 865 288 110 86 1,301 541 778 186 171 974 1963 6,747 1,928 4,819 2,890 1,291 ,031 260 162 92 1,345 567 908 56 41 1,317 1964—July. 8,879 2,006 6,873 3,137 ,455 ,121 334 56 137 1,489 576 949 74 24 1,513 Aug. 8,879 2,070 6,809 3,127 ,486 ,145 341 36 132 1,473 586 922 82 22 ,514 Sept. 8,444 2,220 6,224 3,175 ,423 ,127 297 99 127 1,525 609 918 113 36 ,499 Oct.. 9,343 2,431 6,912 3,222 ,400 ,164 236 81 126 \614 647 935 106 34 ,500 Nov. 9,146 2,438 6,708 3,217 ,458 ,195 263 63 125 ,570 657 955 102 40 ,463 Dec. 8,361 2,223 6,138 3,385 ,671 ,301 370 94 122 ,498 667 999 111 43 ,565 1965—Jan.. 8,928 2,143 6,785 3,276 ,535 ,308 227 115 122 ,504 662 956 79 34 ,545 Feb., 9,033 2,239 6,794 3,232 ,439 ,247 193 71 118 ,604 660 916 59 26 ,571 Mar. 9,077 2,070 7,007 3,325 ,297 ,138 159 143 134 ,751 725 924 31 22 ,622 Apr. 9,533 2,047 7,486 3,384 1,394 ,171 223 104 139 1,747 744 936 25 21 ,659 May 9,934 1,976 7,958 3,467 1,452 ,187 264 82 160 1,774 761 965 23 21 ,698 June 9,370 1,965 7,405 3,355 1,443 ,127 316 53 157 1,702 736 960 13 18 ,627 July. 10,439 2,046 8,393 3,337 1,357 1,094 263 35 151 1,794 782 949 11 16 ,580 1 As reported by dealers; includes financo 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— Mortgage loan End of period M ga o g r e t- Other G U o . v S t . . g S l a o o t n c a v d a t t e l . C ot r o a h a n r e t p d e r o i - a C s a se s t h s O as t s h e e ts r s l a T u i a a t c r o i b n p c e t i d t l s a l s u i l . - s D i e t p s o 2 s- l O ia t t i b h e i s e li r - S c u o a r u c p n - lu ts s N c u o m m b m er it m A e m nt o s u 3 nt 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 6,160 667 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—June. 37,971 676 6,024 409 5,145 906 871 52,001 46,624 1,102 4,275 132,625 2,690 July. 38,407 705 6,025 409 5,142 863 867 52,417 46,918 1,222 4,277 132,726 2,701 Aug. 38,764 764 6,095 407 5,179 895 879 52,983 47,274 1,356 4,352 134,371 2,743 Sept. 39,146 739 6,082 409 5,193 883 887 53,339 47,757 1,200 C4,383 134,277 2,736 Oct.. 39,538 727 5,849 403 5,178 898 889 53,482 47,982 1,146 4,354 139,066 2,825 Nov. 39,898 760 5,785 399 5,180 905 898 53,825 48,188 1,223 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 1,085 4,405 132,992 2,745 Feb.. 40,924 786 6,016 383 5,123 992 909 55,133 49,444 1,214 4,476 138,062 2,838 Mar. 41,265 820 6,054 381 5,144 1,007 931 55,602 49,989 1,108 4,505 138,853 2,873 Apr., 41,563 798 5,857 379 5,183 944 928 55,652 49,978 1,216 4,459 141,959 2,930 May, 41,853 882 5,841 367 5,188 968 913 56,013 50,166 1,334 4,512 142,676 3,025 June, 42,187 849 5,821 360 5,199 1,019 946 56,382 50,623 1,226 4,533 141,299 3,094 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. 1293. 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 Bank 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

SEPTEMBER 1965 SAVINGS INSTITUTIONS 1307 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks M ga o g r e t s - e R st e a a t l e P lo o a li n c s y O as t s h e e ts r Statement value: 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 1,784 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 1,534 1959 113,650 11,581 6,868 3,200 1,513 49,666 45,105 4,561 39,197 3,651 4,618 4,937 1960 119,576 11,679 6,427 3,588 1,664 51,857 46,876 4,981 41,771 3,765 5,231 5,273 1961 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 5,684 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—June r 144,978 12,428 5,715 3,816 2,897 60,893 54,899 5,994 52,538 4,403 6,912 7,804 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 June 153,497 12,043 5,273 3,724 3,046 63,855 57,113 6,742 57,384 4,614 7,408 8,193 i Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item separately but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage End of Assets 2— loan period M ga o g r e t s - s G U ec o . u S v r . t i . - Cash Other i lia T b o il t i a ti l es S c a a v p i i n ta g l s u R n e d a s i e n v r d i v d e e s d B m or o r n o e w y e 4 d L p o ro an ce s s i s n Other co m m e m nt 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 1958 45,627 3,819 2,585 ,108 55,139 47,976 3.845 1,444 1,161 713 1,475 1959 53,141 4,477 2,183 ,729 63,530 54,583 4;393 2,387 1,293 874 1,285 1960 60,070 4,595 2,680 ,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—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 Sept 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 103,975 7,356 3,398 7,293 122,022 103,642 8,017 5,456 2,281 2,626 3,281 Mayr 104,816 7,406 3,433 7,680 123,335 104,434 8,027 5,465 2,366 3,043 3,379 June 105,827 7,235 3,710 7,694 124,466 106,037 8,313 5,887 2,441 1,788 3,266 1 Includes other loans, stock in the Federal home loan banks, 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

1308 FEDERAL FINANCE SEPTEMBER 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. or Change Less: Less: 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 q e o c u t t a s a . l l 2 s: 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 * - E p T q a o u y t a t a s l l s . : payts. (d d i i e r n b e t ct a I g n e b v n e y . s t & . N c d a e o s b n h 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—July 3,847 1,532 '268 '4,747 7,410 2,713 '-97 '10,219 -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 JuneP 13,377 3,217 1,274 15,306 9,081 3,579 1,125 11,535 3,771 -1,566 621 -2,187 July 3,807 1,417 233 4,981 7,240 2,418 3^ 9,696 -4,714 -677 -1,045 50 318 Effects of operations on Treasurer's account Change in Treasurer's account Net operating transactions Net financing transactions cash balances (end of period) Period Agencies & trusts Operating bal. Change s B d u u e r o f d p i r g c lu i e t s t f T un ru d s s t 3 Clearing i M ss s u e a o c a r f . k n 3 e c t e i I n G n s v e o U c e v . . s t S t 3 . . . p d g d u i r i r e o b n e b s l c i t s c t T o r H u e t a e s s l i u d d r e y a T u cc r r o e e a r u ' s n s - t Balance b F a . n R k . s a l T a c o n c a a t d x n s. O as n t s h e e t e t r s Fiscal year—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—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 3,049 110 396 327 -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* 4,296 -362 -150 378 -621 -1,944 -197 1,795 12,610 672 10,689 1,249 July -3,434 -1,001 -320 15 1,045 -692 -263 -4,124 8.486 947 6.333 1,206 * Primarily interest payments by Treasury to trust accounts and accumu- 6 Yearly totals for fiscal 1962-65 and all monthly figures reflect a lations to U.S. employee trust funds. shift of the Food for Peace program from agriculture to international 2 Includes small adjustments not shown separately. affairs. Half-yearly totals before fiscal 1965 have not been adjusted 3 Includes net transactions of Govt.-snonsored enterprises. for this reclassification. 4 Primarily (I) 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

SEPTEMBER 1965 FEDERAL FINANCE 1309 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 a I p e n n n a t d y t . s - 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 36,830 16,820 26,130 14,798 n.a. 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 19,139 111,866 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— 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 July 4,981 1,299 362 727 1,221 n.a. 333 773 631 94 232 137 198 223 255 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 r a a o e n n r m d s c p e - . l H w ab e e l o a f l r a t r h & e , Ed ti u o c n a- e V ra e n t- s In e t s e t r- G G e o r e a v n l t - . Fiscal year—1962 107,662 51,462 3,976 1,257 4,458 2,223 5,487 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 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 27,285 1,299 6,107 8,011 2,221 1965*.... 122,369 50,767 4,622 5,094 5,413 2,723 7,420 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—July iO,219 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 Junep..... 11,535 5,046 625 508 360 279 719 118 2,509 182 513 536 224 July 9,696 3,855 48 427 543 264 586 281 2,465 73 250 325 212 1963 1964 1965 1963 1964 1965 Item in IV in iv ni iv in 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 -1.1 -.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

1310 U.S. GOVERNMENT SECURITIES SEPTEMBER 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 l 6 Total Bills C c e a r t t e if s i- Notes Bonds * bo ib n l d e s Totals b S i o n a n g v d s - s 1941—Dec 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945—Dec 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56.9 48.2 20.0 1947—Dec 257.0 256.9 225.3 165.8 15.1 21.2 11.4 118.0 59.5 52.1 29.0 1957—Dec 275.0 274.9 227.1 164.2 26.9 34.6 20.7 82.1 9.5 53.4 52.5 45.8 1958—Dec 283.0 282.9 236.0 175.6 29.7 36.4 26.1 83.4 8.3 52.1 51.2 44.8 1959—Dec 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84.8 7.1 48.9 48.2 43.5 I960—Dec 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47.8 47.2 44.3 1961—Dec 296.5 296.2 249.2 196.0 43.4 5.5 71.5 75.5 4.6 48.6 47.5 43.5 1962—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 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 Aug 318.7 318.2 264.1 208.4 53.7 50.4 104.3 2.9 52.8 50.2 49.8 1 Includes noninterest-bearing debf(of which $282 million, on Aug. 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 $14,508 million on July 31, 1965. * Includes Treasury bonds and minor amounts of Panama Canal and NOTE.—Based on Daily Statement of U.S. Treasury. postal savings bonds. OWNERSfflP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Held by— Held by the public E pe n r d io o d f T g d r o e o t b s a t s l ag G U t a e r o . n u n v c s d S i t t . e . s b F a . n R k . s Total m b C e a o r n m c k ia s - l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie e r - - s r c O a o t t r i h o p e n o r s - g S l a o o t n v c a d a t t s e l . Savi I n n g d s ividu O al th s er n F a i o t n a i r t o n e e d n i r g a - n l2 O i t m n o t v r i h s s e e c s 3 r . funds ! bonds securities 1941—Dec 64.3 9.5 2.3 52.5 21.4 3.7 8.2 4.0 .7 5.4 8.2 .4 .5 1945—Dec 278.7 27.0 24.3 227.4 90.8 10.7 24.0 22.2 6.5 42.9 21.2 2.4 6.6 1947—Dec 257.0 34.4 22.6 200.1 68.7 12.0 23.9 14.1 7.3 46.2 19.4 2.7 5.7 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 21.4 18.0 45.9 23.5 12.0 10.1 1960—Dec 290.4 55.1 27.4 207.9 62.1 6.3 11.9 18.7 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 18.5 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 18.6 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 18.7 21.1 48.1 20.1 15.9 13.3 July 312.0 59.9 35.1 217.0 59.3 6.0 10.9 19.0 22.2 48.6 20.9 15.8 14.4 Aug 314.9 61.8 35.2 218.0 60.1 6.0 11.0 19.0 22.6 48.6 20.4 16.0 14.3 Sept 316.5 61.8 35.4 219.3 61.9 6.0 11.2 17.7 22.1 48.7 20.9 16.3 14.6 Oct 316.5 60.5 35.7 220.2 62.2 5.8 11.2 18.7 21.9 48.8 21.0 16.3 14.4 Nov 319.3 61.2 36.8 221.4 63.6 5.7 11.2 18.5 21.6 48.9 20.8 16.4 14.6 Dec 318.7 60.6 37.0 221.1 64.0 5.7 11.1 17.9 21.1 48.9 21.2 16.7 14.5 1965—Jan 318.6 59.1 36.7 222.8 62.8 5.8 11.3 18.6 22.0 49.0 21.8 16.5 15.0 Feb 320.6 60.4 36.9 223.3 61.6 5.9 11.2 19.0 22.7 49.1 22.2 16.6 14.8 Mar 318.4 60.7 37.6 220.2 60.3 6.0 11.1 17.2 22.8 49.2 22.8 16.0 14.8 Apr 317.2 59.2 37.8 220.3 59.5 5.8 11.0 17.3 24.0 49.2 22.2 16.0 15.3 May 319.8 62.7 38.7 218.5 58.1 5.8 10.9 18.1 24.0 49.2 22.2 M5.8 r14.4 June 317.9 63.4 39.1 215.4 57.9 5.8 10.6 15.9 '23.6 49.2 '21.9 '15.7 14.8 July 317.1 62.3 39.2 215.6 57.0 5.7 10.6 17.1 23.5 49.3 22.0 15.7 14.6 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

SEPTEMBER 1965 U.S. GOVERNMENT SECURITIES 1311 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—June 30 208,695 87,637 53,665 33,972 56,198 39,169 8,450 17,241 July 31 208,664 87,635 53,662 33,973 56,192 39,166 8,448 17,222 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—June 30 12,374 1,315 1,045 270 2,276 3,506 2,053 3,224 July 31 12,181 1,145 815 330 2,269 3,491 2,052 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—June 30 39,100 27,100 7,949 19,151 10,140 1,489 146 225 July 31 39,207 27,185 7,994 19,191 10,154 1,491 146 230 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—June 30 157,221 59,222 44,671 14,551 43,782 34,174 6,251 13,792 July 31 157,276 59,305 44,853 14,452 43,769 34,184 6,250 13,768 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—June 30 48,483 13,945 7,058 6,887 20,672 12,827 334 705 July 31 47,688 13,140 6,340 6,800 20,603 12,917 321 707 Mutual savings banks: 1962—Dec. 31 5,793 635 252 383 1,337 2,210 306 1,305 1963—Dec. 31 5,302 690 268 422 1,211 2,009 377 1,215 1964—Dec. 31 5,434 608 344 263 1,536 1,765 260 1,266 1965—June 30 5,527 766 568 198 1,384 1,814 332 1,231 July 31 5,499 766 555 211 1,360 1,817 346 1,209 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—June 30 8,854 662 347 315 1,990 2,384 1,118 2,699 July 31 8,841 683 389 294 1,942 2,388 1,117 2,711 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—June 30 7,701 5,482 4,270 1,212 1,845 249 53 73 July 31 8,297 5,986 4,832 1,154 1,924 254 51 82 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—June 30 3,581 432 314 118 950 1,492 247 461 July 31 3,553 416 286 130 938 1,492 245 461 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—Tune 30 16,953 6,657 5,691 966 1,890 1,962 2,019 4,426 July 31 16,886 6,646 5,632 1,014 1,866 1,965 1,996 4,413 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—June 30 66,122 31,279 26,422 4,857 15,051 13,446 2,148 4,198 July 31 66,512 31,667 26,818 4,849 15,135 13,349 2,174 4,186 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 774 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 5,968 commercial banks, 501 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1312 U.S. GOVERNMENT SECURITIES SEPTEMBER 1965 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period Dealers and brokers agency Total securities 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 G U o .S v . t. Other m b e a r n c k ia s l o A th l e l r securities 1964 July 1,936 1,433 216 208 79 581 38 784 532 131 1,453 1,099 197 123 34 406 26 604 417 113 Sept 1,510 1,214 155 102 39 443 20 616 432 117 Oct 1,749 1,476 141 92 41 529 25 719 475 114 Nov 1,864 1,426 271 127 40 533 28 805 499 131 Dec 2,052 1,596 261 146 49 615 38 835 564 85 1965—Jan 2,405 1,763 307 177 158 689 44 1,036 637 93 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 1,786 1,453 200 103 31 584 45 696 462 204 JUly 1,519 1,284 125 82 28 452 37 615 415 152 Week ending— 1965 July 7 1,689 1,472 103 88 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 Aue 4 2,093 1,635 318 107 33 508 44 893 647 112 11.::::::....:: 1,568 1,252 186 96 34 519 41 591 418 226 18 1,420 1,156 160 67 38 479 35 548 358 130 25 1,307 986 168 102 52 452 40 473 341 135 ^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, by maturity U.S. Commercial banks Period mat A ur l i l ties W 1 i y th e i a n r y 1 e - a 5 rs 5 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—July 3,817 3,121 229 468 225 Aug 4,313 2,978 552 782 275 1964—July 4,156 1,250 871 1,671 364 Sept 3,954 3,302 373 280 250 Aug 4,186 1,144 924 1,703 416 Oct 3,358 2,966 231 160 262 Sept 4,011 1,255 1,069 1,253 434 Nov 3,692 3,073 479 140 313 Oct 3,299 845 835 1,258 361 Dec 3,252 2,675 419 159 282 Nov 3,706 1,020 963 1,192 531 Dec 3,399 1,029 781 1,056 533 1965—Jan 3,812 2,882 196 734 246 Feb 3 420 2,688 163 569 237 1965—Jan 4,354 ,323 1,229 1,206 596 Mar 3,034 2,590 112 332 268 Feb 3,495 856 902 1,278 459 Apr . ... 3 471 3,118 115 238 327 Mar 3,181 626 807 1,350 398 May 3,398 2,508 149 741 378 Apr 3,594 918 885 1,369 422 June 3,651 2,838 115 697 509 May 3,635 765 828 1,327 716 July 4,180 3,472 100 609 446 June 4,094 ,251 776 1,457 609 July 4,459 1,293 1,009 1,468 688 Week ending— Week ending— 1965—June 2.. 3,609 2,826 73 710 426 9.. 3,466 2,707 68 692 495 1965—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 July 7.. 4,358 3,557 164 638 481 14.. 4,153 3,424 134 595 422 July 7... 4,559 [,516 1,014 1,220 810 21. . 4,057 3,376 86 596 403 14... 4,564 1,291 1,049 1,347 878 28.. 4,087 3,422 56 609 477 21... 4,358 ,268 1,102 1,533 454 28... 4,302 1,064 905 1,723 610 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the i All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days 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

SEPTEMBER 1965 OUTSTANDING SECURITIES 1313 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, AUGUST 31, 1965 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Sept. 2, 1965. 2,203 Feb. 10, 1966 1,000 Oct. , 1967. 457 Feb. 15, 1970 4 4,381 Sept. 9, 1965. 2,201 Feb. 17, 1966 1,001 Apr. , 1968. 212 Aug. 15, 1970 4 4,129 Sept. 16, 1965, 2,203 Feb. 24,1966 1,000 Oct. , 1968. 115 Aug. 15, 1971 4 2,806 Sept. 23, 1965, 2,206 Feb. 28,1966 1,001 Apr. , 1969. 61 Nov. 15, 1971 3% 2,760 Sept. 30, 1965, 3,203 Mar. 31, 1966 1,000 Oct. , 1969. 159 Feb. 15, 1972 4 2,344 Oct. 7, 1965, 2,203 Apr. 30,1966 1,001 Apr. 1, 1970. 35 Aug. 15, 1972 4 2,579 Oct. 14, 1965, 2,203 May 31, 1966 1,001 Aug. 15, 1973 4 3,894 Oct. 21, 1965, 2,203 June 30, 1966 1,001 Nov. 15, 1973 4i/g 4,357 O O c c t t . . 2 3 8 1, , 1 1 9 9 6 6 5 5 , , 2 1 , , 2 00 0 0 4 J A u u ly g . 3 3 1 1 , , 1 1 9 9 6 6 6 6 1 1 , , 0 0 0 0 0 0 Tr J e u as n u e r y 1 5 b , o n 1 d 9 s 62-67...: 1,431 F M e a b y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 4 4* i/ 4 8 3 3 , , 1 5 3 9 0 4 Nov. 4, 1965, 2,202 Dec. 15, 1963-68... 21 1,792 Nov. 15, 1974 37/8 2,243 Nov. 12, 1965 2,202 June 15, 1964-69... 1\ 2,573 May 15, 1975-85... 4^4 1,218 Nov. 18, 1965, 2,203 Treasury notes Dec. 15, 1964-69... 21 2,534 June 15, 1978-83... 314 1,583 Nov. 26, 1965 2,201 Oct. 1,1965 1% 315 Mar. 15, 1965-70... 2\ 2,411 Feb. 15, 1980 4 2,608 Nov. 30, 1965 1,001 Nov. 15, 1965 2>yi 1,617 May 15, 1966 3^ 1,688 Nov. 15, 1980 3% 1,912 Dec. 2, 1965 1,001 Nov. 15, 1965 4 8,099 Aug. 15, 1966 3 1,024 May 15, 1985 3% 1,127 D D e e c c . . 1 9 6 , , 1 1 9 9 6 6 5 5 1 1, , 0 0 0 0 1 0 F F e e b b . . 1 1 5 5 , , 1 1 9 9 6 6 6 6 3 3 % % 2 2 , , 1 5 9 9 5 7 N M o a v r. . 1 1 5 5 , , 1 1 9 9 6 6 6 6 -71.. . 3 2 3 % /8 1 1 , , 3 8 9 5 9 1 F A e u b g . . 1 1 5 5 , , 1 1 9 9 9 8 0 7 -92... 4 3 ^ ^ 4 3 , , 9 81 0 8 1 D D e e c c . . 2 3 3 0 , , 1 1 9 9 6 6 5 5 1 1 , . 0 0 0 0 0 2 A M p a r y . 1 1 5 , , 1 1 9 9 6 6 6 6 4 \y2 9,5 6 1 75 9 J S u e n p e t. 1 1 5 5 , , 1 19 9 6 6 7 7 - - 7 7 2 2 . . . . . . 2 2 % % 1 1, , 9 2 5 8 2 0 F M e a b y . 1 15 5 , , 1 1 9 9 8 8 9 8 - - 9 9 4 3 . . . . .4 .4 1 /s 1, 2 5 5 6 0 0 Dec. 31, 1965 1,003 Aug. 15, 1966 4 11,060 Nov. 15, 1967 3% 2,019 Feb. 15, 1995 3 2,263 J J a a n n . . 1 6 3 , , 1 1 9 9 6 6 6 6 1 1 , , 0 0 0 0 1 1 O N c o t v . . 15 1 , , 1 1 9 9 6 6 6 6 4 \y2 2,2 35 5 7 4 D M e a c y . 1 1 5 5 , , 1 19 9 6 6 8 7 -72... 3 2 % ^ 2 2 , , 6 4 9 6 5 0 Nov. 15, 1998 3% 4,417 Jan. 20,1966 1,005 Feb. 15, 1967 3% 2,358 Aug. 15, 1968 334 3,747 Jan. 27, 1966 1,001 Feb. 15, 1967 4 5,151 Nov. 15, 1968 3% 1,591 Convertible bonds J F a e n b . . 31 3 , , 1 1 9 9 6 6 6 6 1 1 , , 0 00 0 1 0 A Au p g r. . 1 1 5, , 1 1 9 9 6 6 7 7 3V ty d 2 2,9 2 2 7 9 0 F O e c b t . . 15 1 , , 1 1 9 9 6 6 9 9 4 4 6 3 , , 2 7 6 2 1 8 I A n p ve r. s tm 1 e , n 1 t 9 S 7 e 5 ri - e 8 s 0 B ... 2% 2,871 NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. FEDERALLY SPONSORED AGENCIES, JULY 31, 1965 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 o ( A f m m d i o l o l l i u l o a n n r t s s ) Agency a , n t d y p c e o u an p d o n d a ra te t e of issue, Maturity o ( A f m m d i o l o l l i u l o a n n r t s s) Federal home loan banks Federal intermediate credit banks Debentures:: Notes: 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 301 Nov. 16, 1964 4.10 Oct. 15, 1965 400 Feb. , 1965 4.15 Nov. 1, 1965 345 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 41/4 Jan. 3, 1966 298 Apr. 15, 1965 4.30 Feb. 15, 1966 524 May , 1965 4.30 Feb. 1, 1966 289 June 15,1965 4.35 Mar. 22, 1966 273 June , 1965 4.30 Mar. 1, 1966 272 May 17, 1965 4.30 Apr. 25, 1966 525 July , 1965 4.35 Apr. 4, 1966 272 July 17, 1965 4.35 May 25, 1966 496 Federal land banks Bonds: Bo D J J M J S n u u u e e d n n a l p c y s r e e . t : . . 1 1 1 1 1 9 5 5 5 7 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 3 5 5 4 2 4 W 4 4 4 4 3 i V % * i % / / 8 4 4 8 A N S M S M e e u o a a p p g v y r t t . . . . . 1 1 1 1 1 1 5 5 5 5 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 6 6 6 6 6 6 8 6 7 5 6 6 2 2 2 2 1 1 7 0 5 6 8 7 5 0 0 0 5 5 A J J A O M S u u e p u c a n n p t r g y e e . t . . . 2 2 2 2 2 3 0 0 0 0 1 1 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 5 6 6 6 6 6 1 8 5 1 4 1 0 4 3 3 4 4 4 4 .3 % 1 % 5 4 D J A F M O M u e e u c l a a b c y t g y y . . . . 2 2 2 2 2 1 3 0 2 0 0 2 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 6 6 5 5 6 6 5 1 1 1 1 1 1 1 9 0 5 4 1 6 5 3 8 0 0 7 0 9 Fede s r e a c l 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 r a A ti s o so n c s iation— F A M e p a b r y . . 2 1 0 1 5 , , , 1 1 1 9 9 9 5 6 6 7 2 5 4 4 4V % A M F Fe e a b b y . . 2 2 1 2 0 5 , , , 1 1 1 9 9 9 6 6 6 7 7 7-72 1 1 7 2 8 2 6 0 Discount notes 456 O O c c t t . . 22 1 , , 1 1 9 9 5 6 7 3 4 4 1 % /s O O c c t t . . 23 1 , ,1 19 9 6 6 7 7-70 1 7 7 5 4 De D J F F A S S D A M A S b u e e e e e e e u p p e n b b a p c p p c g r n r . e . . r t . t t . . . . . . t . u 2 1 1 1 1 1 1 1 1 1 1 1 r 3 1 2 0 3 1 2 0 1 2 0 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 5 6 6 6 6 6 6 6 5 6 6 2 9 1 0 1 1 0 0 0 8 0 2 4 5 4 4 4 4 4 3 4 4 3 ' " 3 i/ 4 8 J J F D S F M A S A M A e e e u u e e p p u a a p p b b r n n c r g r r t t . . . . . . e e . . . . 1 1 1 1 1 1 1 1 1 1 1 1 2 2 0 0 0 0 1 0 0 0 2 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 7 7 7 6 6 6 7 7 6 1 3 1 7 2 2 9 8 6 0 0 6 1 1 1 1 1 1 9 9 9 8 8 6 9 4 1 0 0 4 6 3 9 7 8 4 8 6 9 0 8 2 J M S F J F M F O F F A A F u a e e e e e e e c u p a n l a b b b b b b p y t g r y y . . . . . . . . t . . . 2 2 2 2 2 1 1 1 0 0 2 5 0 3 0 1 4 4 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 5 5 5 6 6 6 6 6 5 6 5 5 6 0 9 6 9 0 3 5 3 2 8 4 6 7 4 5 4 4 4 3 4 4 4 5 4 4 3 3 4 V V 5 1 % V % % % % % % % / 4 A 4 s 8 " J J M S F J J O A F M F A M u u u u e e e e c p u l l a l n b a a b b p y y y t r g y . . . r r e . t . . . . . 2 2 2 2 2 2 2 2 1 2 1 1 0 0 0 0 0 0 0 5 0 1 5 5 0 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 7 7 6 6 6 7 6 7 6 7 7 6 6 7 2 1 9 9 9 0 9 0 8 4 0 8 8 3-78 2 1 1 1 1 1 1 1 1 0 6 6 8 8 1 5 8 8 0 6 4 0 3 9 0 0 2 5 1 5 3 6 9 0 8 0 0 Banks for cooperatives Apr. 20, 1965 4% Apr. 21, 1975 200 Tennessee Valley Authority Debentures: Short-term notes Feb. 1,1965 4i/8 Aug. 2, 1965 204 Bonds: Apr. 1,1965 414 Oct. 4, 1965 175 Nov. 15, 1960 4.40 Nov. 15, 1985 50 May 3,1965 4% Nov. 1, 1965 108 July 1, 1961 45/s July 1, 1986 50 June 1,1965 4Y4 Dec. 1, 1965 201 Feb. 1,1962 4% Feb. 1, 1987 45 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also NOTE to table at top of following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1314 CREDIT AGENCIES; SECURITY ISSUES SEPTEMBER 1965 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks F M ed o e rt r g al a g N e a A tio ss n n a . l Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m b a A t n e e o d m c rs - e - s I m nv e e n s t t s - p C a o d a n s e s - d 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 a e u ( o n L b r t e d e e ) s s n- c L a o t ( o o i t A v o a p e n ) 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 ],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 2,788 2,523 649 407 1,501 1,454 2,564 2,210 1961 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962 3,479 1,531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963 4,784 1,906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 1,952 3,310 2,834 1964—July.. 4,763 1,476 106 4,042 936 1,208 1,940 1,698 782 498 2,561 2,396 3,551 2,973 Aug... 4,781 1,622 75 4,169 926 1,210 1,936 1,696 787 538 2,561 2,433 3,586 3,102 Sept... 4,837 1,597 99 4,165 989 1,212 1,926 1,549 809 538 2,516 2,424 3,620 3,102 Oct... 4,797 1,614 94 4,144 978 1,214 1,934 1,707 924 576 2,377 2,352 3,652 3,169 Nov... 4,784 1,889 84 4,369 989 1,216 1,930 1,701 975 638 2,241 2,174 3,680 3,169 Dec... 5,325 L,523 141 4,369 1,199 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 ,739 1,007 723 2,380 2,206 3,889 3,298 Apr... 5,219 ,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 1,691 110 4,757 1,174 1,260 2,014 1,797 931 687 2,687 2,462 4,058 3,532 July.. 5,793 1,299 75 4,807 913 1,265 2,032 1,794 935 687 2,772 2,546 4,097 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 a n i l l o e i- n r- s R n e u v e e- PHAi G l U o o a .S v n . t s . State S d a i p s a s u t e n t a t c r d h t i i . c a . t l Other 2 ered 3 Total c E a d ti u o - n b R r a o i n d a d g d e s s i U ti t e i s l * - H in o g u 5 s- V a a e n i t s d e ' r- O p p o t u h s r e e - s r 1959 7,697 4,782 2,407 332 176 1,686 2,121 3,890 7,423 7,589 2,318 844 1,985 401 355 1,685 I960 7,292 4,771 2,095 302 125 1,110 1,984 4,198 7,102 7,247 2,405 1,007 1,316 426 201 1,891 1961 . . 8,566 5,724 2,407 315 120 1 928 2 165 4 473 8,301 8,463 2,821 1,167 1,700 385 478 1,913 1962 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1963 10,538 5,855 4,180 254 249 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 10,06910,201 3,392 688 2,437 727 120 2,838 1964—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 AUE .... 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 1965—Jan 848 606 234 7 182 247 419 964 803 378 38 167 * 220 Feb 965 666 288 11 191 289 484 754 872 308 20 277 1 265 Mar 1 079 546 406 116 12 84 451 544 1,018 946 392 28 152 127 248 Apr 993 687 290 16 295 275 422 1,036 824 288 120 83 17 317 May.... 984 506 345 126 8 180 370 434 846 921 392 70 125 133 202 June.... 1,034 565 455 14 192 397 445 1,192 943 435 61 195 13 239 1 Only bonds sold pursuant to 1949 Housing Act; secured by contract 5 Includes urban redevelopment loans. requiring the Public Housing Administration to make annual contributions to the local authority. NOTE.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt. loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt. loans. (and payment to issuer), which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues • Water, sewer, and other utilities, fa based on date of sale unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 SECURITY ISSUES 1315 TOTAL NEW ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all issues 1 all corporate issues 6 Noncorporate Corporate New capital Re- Period tire- Total G U o . v S t . .2 G a U c g o y . e S v n 3 . t - . U S l a o t n . c a S d a te . l 4 Others Total Total o B P f l f o i u e c n r b ly e d - d s p v l P a a t r c e i e - ly d fe P r r r e e S - d toc C k m o o m n - Total Total m N on e e w y' O p p o t u h s r e e - s r m s ri e o t e c ie n f u s t - 1957 30,571 9,601 572 6,958 557 12,884 9,957 6,118 3,839 411 2,516 12,661 12,447 11,784 663 214 1958 34,443 12,063 2,321 7,449 1,052 11,558 9,653 6,332 3,320 571 1,334 11,372 10,823 9,907 915 549 1959 31,074 12,322 707 7,681 616 9,748 7,190 3,557 3,632 531 2,027 9,527 9,392 8,578 814 135 1960 27,541 7,906 1,672 7,230 579 10,154 8,081 4,806 3,275 409 1,664 9,924 9,653 8,758 895 271 1961 35,527 12,253 1,448 8,360 303 13,165 9,420 4,700 4,720 450 3,294 12,885 12,017 10,715 1,302 1962 29,956 8,590 1,188 8,558 915 10,705 8,969 4,440 4,529 422 1,314 10,501 9,747 8,240 1,507 754 1963 31,616 7,213 1,168 10,107 891 12,237 10,872 4,714 6,158 342 1,022 12,081 10,553 8,993 1,561 1,528 1964r 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 13,792 13,038 11,233 1,805 754 1964—June.. 3,084 383 275 900 37 1,489 1,119 468 651 82 289 1,469 1,405 1,317 89 64 July.. 2,500 387 260 922 29 902 677 234 443 59 166 887 812 684 128 75 Aug... 4,148 2,449 160 767 23 748 636 183 453 54 58 738 680 587 93 58 Sept.. 2,548 358 952 13 1,226 1,069 376 693 23 133 1,212 1,130 807 323 82 Oct... 2,914 367 510 816 186 1,036 823 181 642 25 188 1,019 953 754 199 67 Nov.. 4,631 3,242 566 97 727 675 30 645 9 43 720 669 553 116 51 Dec... 3,339 373 1,097 64 1,805 1,662 320 1,342 49 94 1,787 1,642 1,322 320 145 2,333 433 811 232 858 727 161 565 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 1,039 157 146 Apr.... '3,050 390 325 971 '131 1,233 1,070 422 '648 35 127 1,214 1,152 '939 '213 '61 May... '3,160 356 1,020 11 rl,773 1,324 694 '630 '65 384 1,746 1,691 1,560 132 '55 June... 4,297 362 1,000 122 2,038 1,729 748 980 155 154 2,018 1,946 1,665 281 72 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 an s d Transportation Public utility Communication a R nd e a f l 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 capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 secu- capital8 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 15 3,189 15 707 * 1,801 6 1960 1,997 79 794 30 672 39 2,754 51 1,036 1 2,401 71 1961 3,691 287 1,109 36 651 35 2,883 106 1,435 382 2,248 22 1962 2,958 228 803 32 543 16 2,341 444 1,276 11 1,825 23 1963 3,312 190 774 55 873 83 1,935 699 726 356 2,933 144 1964' 2,772 243 1,024 82 941 32 2,445 280 2,133 36 3,723 80 1964'—June 332 39 50 1 44 264 4 260 5 456 14 July. 150 40 45 1 90 207 16 23 4 297 13 Aug. 176 12 45 1 20 138 27 16 15 285 3 Sept. 234 36 176 2 59 296 38 19 2 345 4 Oct.. 250 17 88 5 44 297 37 82 6 191 1 Nov. 203 24 134 17 62 40 6 21 1 208 3 Dec. 607 26 121 49 127 172 31 32 582 31 1965—Jan... 385 23 70 5 40 97 21 21 182 Feb.. 192 15 35 2 47 215 13 44 213 3 Mar.. 494 56 104 4 108 17 229 57 26 236 9 Apr.., '540 16 120 6 '58 '1 176 '34 15 '244 '2 May. '698 '22 '75 '4 163 '248 '23 143 '364 '6 June. 441 41 151 15 44 184 98 1,028 7 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of notation. number of units by offering price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. 8 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

1316 SECURITY ISSUES SEPTEMBER 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 I C nv O e S 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 1,235 469 385 448 850 III 4,011 1,946 2,065 2,297 1,033 1,265 1,010 704 475 438 535 265 IV 5,158 2,590 2,568 3,233 1,191 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 t s es Stocks & B o n n o d t s es Stocks & B o n n o d t s es 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 -25 1,295 479 1,172 357 833 2,517 1963 1,804 -664 339 -352 316 -19 876 245 438 447 1,806 1,607 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 Ill 232 28 93 -34 38 -47 290 149 42 92 569 613 IV 689 -226 265 -444 88 -7 356 101 -47 115 693 986 1965—1 574 -256 e -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. 1315. actions only. As contrasted with data shown on p. 1315, 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 i Re t d io e n m s p- s N al e e t s Total 2 po C si a ti s o h n 3 Other 1953 672 239 433 4,146 1964—July... 308 168 140 28,319 ,471 26,848 1954 863 400 463 6,109 309" "" 5 ^ 800 * Aug... 260 149 110 28,164 1,457 26,707 Sept... 299 149 149 29,130 1,436 27,694 1955 1,207 443 765 7,838 438 7,400 Oct.... 306 142 164 29,087 1,312 27,775 1956 1,347 433 914 9,046 492 8,554 Nov... 317 134 184 29,062 1,300 27,762 1957 1,391 406 984 8,714 523 8,191 Dec... 336 136 200 29,116 1,329 27,787 1958 1,620 511 1,109 13,242 634 12,608 1959 2,280 786 1,494 15,818 860 14,958 1965—Jan.... 407 152 254 30,349 1,545 28,804 Feb... 313 159 154 30,749 1,605 29,144 1960 2,097 842 1,255 17,026 973 16,053 Mar... 356 168 188 30,464 1,597 28,867 1961 2,951 1,160 1,791 22,789 980 21,809 Apr... 351 155 196 31,521 1,523 29,998 1962 2,699 1,123 1,576 21,271 1,315 19,956 May.. 301 158 143 31,431 1,551 29,880 1963 2,460 1,504 952 25,214 1,341 23,873 June.. 417 186 231 30,036 1,447 28,589 1964 3,404 1,875 1,528 29,116 1,329 27,787 July... 332 147 185 30,749 1,616 29,133 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 NOTE.—Investment Co. Institute data based on reports of members, dividends. which comprise substantially all open-end investment cos. registered with 2 Market value at end of period less current liabilities. the Securities and Exchange Commission. Data reflect newly formed 3 Cash and deposits, receivables, all U.S. Govt. securities, and other cos. after their intial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 BUSINESS FINANCE 1317 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1963 1964 1965 Industry 1960 1961 1962 1963 1964 IV III IV Manufacturing Total (177 corps.): Sales 123,911123,669136 147,380157,633 38,990 38,326 40,784 37,697 40,827'42,742 45,378 Profits before taxes 13,543 13,268 17,337 18,821 4,877 4,781 5,333 4,077 4,631 '5,517 6,034 Profits after taxes 7,161 7,167 9,138 10,520 2,587 2,603 2,898 2,335 2,684 '3,081 3,405 Dividends 4,485 4,730 5,444 5,930 1,770 1,285 1,448 1,324 1,873 1,411 1,628 Nondurable goods industries (78 corps.): l Sales 47,372 49,362 55,372 59,256 14,057 14,220 14,823 14,915 15,298 r15,453 16,165 Profits before taxes 5,579 5,602 6,333 6,896 1,646 1,643 1,752 1,740 1,761 1,804 1,993 Profits after taxes 3,215 3,225 3,646 4,137 972 992 1,028 1,037 1,080 1,112 1,216 Dividends 1,948 2,031 2,265 2,404 649 561 569 584 690 ••606 607 Durable goods industries (99 corps.): 2 Sales 76,540 74,307 92,008 98,377 24,933 24,106 25,961 22,782 25,528 '27,289 29,213 Profits before taxes 7,964 7,666 11,004 11,925 3,230 3,138 3,581 2,336 2,870 '3,713 4,042 Profits after taxes 3,946 3,942 5,492 6,383 1,615 1,611 1,871 1,299 1,603 1,970 2,189 Dividends 2,536 2,699 3,179 3,526 1,121 724 879 740 1,183 804 1,021 Selected industries: Foods and kindred products (25 corps.): Sales 12,202 12,951 13,457 14,301 15,209 3,632 3,598 3,721 3,863 4,027 '3,868 4,082 Profits before taxes 1,342 1,440 1,460 1,546 1,589 407 345 401 420 424 388 434 Profits after taxes 639 682 698 747 807 199 173 202 214 219 201 225 Dividends 372 397 425 448 479 118 117 119 119 124 124 125 Chemicals and allied products (20 corps.): Sales 12,205 12,606 13,759 14,623 16,077 3,751 3,791 4,114 4,067 4,104 '4,238 4,492 Profits before taxes 2,005 1,979 2,162 2,286 2,596 572 636 682 654 623 '679 758 Profits after taxes 1,058 1,034 1,126 1,182 1,404 301 347 366 349 342 '386 424 Dividends 786 833 868 904 924 299 207 209 212 296 '214 213 Petroleum refining (16 corps.): Sales 13,815 14,483 15,106 16,043 16,583 4,006 4,132 4,111 4,123 4,217 4,404 4,476 Profits before taxes 1,267 1,237 1,319 1,487 1,558 388 400 361 373 424 440 477 Profits after taxes 1,026 1,025 1,099 1,204 1,309 321 336 298 318 358 363 386 Dividends 521 528 566 608 670 154 158 159 169 184 182 183 Primary metals and products (34 corps.): Sales 20,828 20,234 21,260 22,116 24,114 5,405 5,540 6,046 6,042 6,486 6,614 7,091 Profits before taxes 2,214 1,999 1,838 2,178 2,577 572 560 674 605 738 '768 872 Profits after taxes 1,169 1,067 1,013 1,183 1,485 330 315 384 349 437 436 497 Dividends 838 843 820 734 763 191 186 187 187 204 195 200 Machinery (24 corps.): Sales 16,681 17,446 19,057 21,144 22,653 5,576 5,401 5,673 5,584 5,995 5,772 6,305 Profits before taxes 1,509 1,701 1,924 2,394 2,733 673 673 702 701 657 747 817 Profits after taxes 768 859 966 1,177 1,399 323 338 357 373 331 385 426 Dividends 494 508 531 577 673 154 157 170 171 175 192 187 Automobiles and equipment (14 corps.): Sales 26,275 23,314 29,156 32,927 35,323 9,736 9,275 10,028 7,137 8,883 10,898 11,450 Profits before taxes 3,197 2,786 4,337 5,004 4,997 1,591 1,573 1,775 589 1,060 1,828 1,883 Profits after taxes 1,534 1,404 2,143 2,387 2,625 752 782 900 338 604 942 1,004 Dividends 837 973 1,151 1,447 1,630 648 276 419 276 659 305 520 Public utility Railroad: Operating revenue 9,514 9,189 9,440 9,560 9,857 2,447 2,362 2,481 2,486 2,526 2,385 Profits before taxes 648 625 729 816 836 252 188 245 211 192 145 Profits after taxes 445 382 572 651 698 225 144 196 175 182 121 Dividends 385 359 367 356 451 125 110 101 109 132 198 Electric power: Operating revenue 11,906 12,478 13,489 14,294 14,968 3,567 3,961 3,572 3,686 3,749 '4,227 3,797 Profits before taxes 3,163 3,349 3,583 3,735 3,947 862 1,106 893 998 949 1,154 949 Profits after taxes 1,793 1,883 2,062 2,187 2,385 531 660 542 583 600 712 597 Dividends 1,307 1,374 1,462 1,567 1,672 415 424 412 426 410 467 438 Telephone: Operating revenue 8,111 8,615 9,196 9,796 10,550 2,526 2,543 2,619 2,654 2,734 '2,732 2,790 Profits before taxes 2,326 2,478 2,639 2,815 3,069 707 726 796 773 774 783 766 Profits after taxes 1,155 1,233 1,327 1,417 1,590 356 377 408 402 403 420 419 Dividends 806 867 935 988 1,065 256 261 262 268 274 279 284 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 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 Statis 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

1318 BUSINESS FINANCE SEPTEMBER 1965 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r t s e s c ta o I x n m e - 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 t ll i s p o o u i w n t m a - l p- Quarter P b t e r a o f x o f e i r 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 f t i i t e s s d - co c a n a t ll i s p o o u i w n t m a - l pances ! ances l 1957 r 47.2 21.2 26.0 11.7 14.2 20.8 1963'—IV... 60.8 27.0 33.8 16.1 17.7 32.8 1958r 41.4 19.0 22.3 11.6 10.8 22.0 1959 *• 52.1 23.7 28.5 12.6 15.9 23.5 1964'—I 64.0 27.3 36.7 16.7 20.0 33.2 1960r 49.7 23.0 26.7 13.4 13.2 24.9 II.... 64.5 27.5 37.0 17.1 19.9 33.6 III... 65.3 27.8 37.5 17.4 20.1 34.3 1961 »• 50.3 23.1 27.2 13.8 13.5 26.2 IV... 65.9 28.1 37.8 17.7 20.0 34.8 1962' 55.4 24.2 31.2 15.2 16.0 30.1 1963r 58.6 26.0 32.6 15.8 16.8 32.0 1965— Ir... 73.1 29.1 44.0 17.8 26.2 35.4 1964r 64.8 27.6 37.2 17.2 19.9 34.0 II.... 73.7 29.4 44.3 18.2 26.1 35.8 i Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . - I t n o v ri e e n s - Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt. i Govt. i 1957 111.6 244.7 34.9 18.6 2.8 99 4 82.2 6.7 133.1 2.3 84.3 15.4 31.1 1958 118.7 255.3 37.4 18.8 2.8 106.9 81.9 7.5 136.6 1.7 88.7 12.9 33.3 1959 124.2 277.3 36.3 22.8 2.9 117.7 88.4 9.1 153.1 1.7 99.3 15.0 37.0 I960 128.6 289.0 37.2 20.1 3.1 126.1 91.8 10.6 160.4 1.8 105.0 13.5 40.1 1961 135.6 306.8 41.1 20.0 3.4 135.8 95.2 11.4 171.2 1.8 112.8 14.1 42.5 1962 142.8 326.7 42.9 20.2 3.7 146.7 100.9 12.4 184.0 2.0 121.2 15.0 45.7 1963 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—11 157.1 356.7 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 II 166.2 384.3 43.7 16.3 3.2 182.8 119.7 18.4 218.0 2.9 145.9 15.9 53.2 1 Receivables from, and payables to, the U.S. Govt. exclude amounts NOTE.—Securities and Exchange Commission estimates; excludes offset against each other on corps.' books. banks, savings and loan assns., and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions ot dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n b - le Mining Railroad Other 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 1 a ( r n S a n . t u e A ) al 1957 36.96 8.02 7.94 1.24 1.40 1.77 6.20 3.03 7 37 1958 30.53 5.47 5.96 .94 .75 1.50 6.09 2.62 7 20 1959 32.54 5.77 6.29 .99 .92 2.02 5.67 2.67 8.21 I960 35.68 7.18 7.30 .99 1.03 1.94 5.68 3 13 8 44 1961 34.37 6.27 7.40 .98 .67 1.85 5.52 3 22 8 46 1962 37.31 7.03 7.65 1.08 .85 2.07 5.48 3.63 9 52 1963 39.22 7.85 7.84 1.04 1.10 1.92 5.65 3.79 10.03 1964 44.90 9.43 9.16 1.19 1.41 2.38 6.22 4.30 10.83 19652 r 50.92 10.96 10 92 1.31 1.62 2.79 6.69 16.63 1963—IV 11.09 2.31 2.25 .28 .33 .54 1.61 1.06 2.72 41 20 1964 I 9.40 1.93 1.87 .26 .32 .51 1.18 .97 2.37 42 55 II 11.11 2.30 2.23 .29 .36 .63 L.58 1.10 2.61 43.50 HI 11.54 2.37 2.30 .30 .37 .59 L.71 1.06 2.84 45.65 IV 12.84 2.83 2.76 .33 .35 .64 L.76 1.17 3.01 47.75 1965 I 10.79 2.25 2.28 .29 .39 .58 1.32 1.08 2 59 49 00 II r 12.81 2.76 2.70 .33 .44 .77 L.71 1.24 2.85 50 35 III2 r 13.02 2.71 2.77 .33 .40 .70 1.82 4.30 51.15 IV2 14.30 3.24 3.17 .35 .39 .73 .84 4.58 52.95 1 Includes trade, service, finance, and construction. NOTE.—Dept. of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corp. and noncorp. business, excluding agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 REAL ESTATE CREDIT 1319 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm End of ho O l t d h e e r r s2 1- to 4-family houses com M m u e l r t c if i a a m l p il r y o p a e n r d ties4 M t o y r p tg e a s ge period h A e o r l l s d l - t F u i t i n c i n i o s a a t n i l 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 - t F u i t i n c n i i s o a a t n i l n - s - 1 ho O l t d h e e r r s* 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 t r h 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 t r h l s d e - r w u F V n r H i d A t A t e e - r - n - t C i v o 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 r69.4 167.0 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 r73.4 190.6 1964* 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 77.2 215.4 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 *70.3 171.2 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 '71.2 177.7 III... 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 '72.1 184.4 IV... 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 r73.4 190.6 1964—1*... 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 74.2 195.3 II*.. 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 74.9 202.5 in*.. 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 76.2 208.9 311.4 241.0 11.4 59.1 18.9 7.0 11.9 292.5 197.7 170.5 27.2 94.9 63.5 31.4 77.2 215.4 IV*.. 1965—1*... 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 77.9 220.1 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 1 - to 4-family properties alone assns. are shown on second page following. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., and Federal land banks, and in earlier years, RFC, HOLC, and FFMC, NOTE.—Based on data from Federal Deposit Insurance Corp., Federal Other U.S. agencies (amounts small or current separate data not readily Home Loan Bank Board, Institute of Life Insurance, Dcpts. 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. 4 Derived figures; includes small amounts of farm loans held by Figures for first 3 quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings * 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 9,029 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 Ill 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 n 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—1* 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 * Data for 1941 and 1945, except for totals, are special F.R. estimates. for insured banks for 1962 and part of 1963 and on special F.R. interpolations thereafter. For earlier years, the basis for first and third quarter NOTE.—Second and fourth quarters, Federal Deposit Insurance Corp. estimates included F.R. commercial bank call data and data from the series for all commercial and mutual savings banks in the United States National Assn. of Mutual Savings Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1320 REAL ESTATE CREDIT SEPTEMBER 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 i Farm * 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 1,301 195 3,343 438 37,062 34,395 7,443 7,433 19,519 2,667 1959 5,970 5,472 1,549 201 3,722 498 39,197 36,370 8,273 7,086 21,011 2,827 I960 6 086 5,622 1,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961 . .. 6 785 6,233 1,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962 7,478 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963 9,172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964 r10,432 r9,385 rl,811 r674 r6,900 rl,047 55,152 50,848 11,484 6,403 32,961 4,304 1964 r—June 877 791 151 50 590 86 52,538 48,452 11,109 6,423 30,920 4,086 July 841 767 156 54 557 74 52,833 48,708 11,161 6,410 31,137 4,125 Aug 821 755 157 56 542 66 53,177 49,015 11,222 6,408 31,385 4,162 Sept 891 826 165 57 604 65 53,571 49,374 11,291 6,402 31,681 4,197 Oct . 921 853 168 60 625 68 54,001 49,768 11,371 6,403 31,994 4,233 Nov 890 825 165 64 596 65 54,422 50,164 11,446 6,410 32,308 4,258 Dec 1,340 1,228 162 52 1,014 112 55,197 50,893 11,512 6,413 32,968 4,304 1965—Jan 915 808 175 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 880 772 134 40 598 108 56,687 52,213 11,786 6,419 34,008 4,474 May 749 662 117 37 508 87 56,997 52,482 11,821 6,404 34,257 4,515 June 939 840 142 41 657 99 57,384 52,806 11,860 6,384 34,562 4,578 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 i s N c t t i r o o e u n n w 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 e a e r - - d t C i v o e o n n n a - - l Period T N o .S ta . l A 1 . in l S o g a a s v n & - I c a n o n s m c u e r - - C m c o i e m a r l - - M i s u n a g t v u s - al assns. panies banks banks 1945 1,913 181 1,358 5,376 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1945 5,650 2,017 250 1,097 217 1959 15,151 5,201 6,613 53,141 2,995 7,186 42,960 1960 . . 14,304 4,678 6,132 60,070 3,524 7,222 49,324 1958 27,388 10,516 1,460 5,204 1,640 1959 32,235 13,094 ,523 5,832 1,780 1961 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1960 29,341 12,158 ,318 4,520 1,557 1962 20,754 5,979 8,524 78,770 4,476 7,010 67,284 1963 24,735 7,039 9,920 90,944 4,696 6,960 79,288 1961 31,157 13,662 ,160 4,997 1,741 1964 24,505 6,515 10,397 101,314 4,896 6,686 89,732 1962 34,187 15,144 ,212 5,851 1,957 1963 36,925 16,716 ,339 6,354 2,061 1964 1964 36,921 15,759 ,408 6,656 2,182 July 2,363 635 1,037 97,211 4,760 6,777 85,674 1963 Au2 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 Dec 2,987 1,322 110 504 166 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 1964 Dec 1,969 522 784 101,314 4,896 6,686 89,732 Jan 2,758 1,170 103 483 145 1965 Feb 2,575 1,128 90 465 129 Mar 2,935 1,290 102 540 140 Jan 1,527 370 638 101,844 4,906 6,683 90,255 Apr 3,089 1,350 109 567 154 Feb 1,541 379 638 102,351 4,921 6,654 90,776 May 3,090 1,349 116 560 176 Mar 2,056 544 824 103,151 4,939 6,629 91,583 June 3,388 1,485 126 607 197 Apr 2,068 558 850 103,975 4,952 6,590 92,433 July 3,519 1,508 137 618 233 May 2,022 526 861 104,816 4,975 6,568 93,273 Aug 3,277 1,398 130 581 213 June.. .. 2 399 614 1,099 105,827 5,001 6,560 94,266 Sept 3,281 1,386 131 597 215 JulyP 2,185 524 1,063 106,677 5,040 6,549 95,088 Oct 3,225 1,332 129 590 201 Nov 2,847 1,174 114 514 192 Dec 2,936 1,198 120 533 185 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. 2 Beginning with 1958 includes shares pledged against mortgage loans. i Includes amounts for other lenders, not shown separately. 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

SEPTEMBER 1965 REAL ESTATE CREDIT 1321 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- TO 4-FAMBLY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Period Total h N o M m ew e o s rtga h i g s o E t e m i x s n - e g s je P c r t o s - i m p P e r i e r m o r o n t v - p y t e - s - 2 Totals h N o M m ew e o s rtga h i g s o E e t m i x s n - e g s E pe n r d i o o d f Total Total s F u i H n re - A d - a g V n u t A l a e r e - - d t C i v o e o n n n a - - l 1945 18.6 4.3 4.1 .2 14.3 1945 665 257 217 20 171 192 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 I960 6,293 2,197 2,403 711 982 1,985 1,554 428 I960 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 '62.2 32.3 '29.9 r104.3 1962 7,184 1,849 3,421 1,079 834 2,652 1,357 1,292 1963 182.2 65.9 35.0 30.9 116.3 1963 7,216 1,664 3 905 843 804 3,045 1,272 1,770 1964^ 197.7 69.2 38.3 30.9 128.4 1964 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1963—1 169.2 63.0 33.0 30.0 106.2 1964 July 782 141 476 108 57 251 81 171 II 173.7 63.8 33.5 30.3 109.9 740 137 468 68 67 246 78 167 Ill 178.2 64.6 34.3 30.4 113.6 Sept 720 138 467 66 49 270 85 185 IV 182.2 65.9 35.0 30.9 116.3 Oct 790 159 491 81 58 271 93 178 Nov 688 135 422 81 50 258 91 167 1964—IP 185.2 66.6 35.7 31.0 118.5 Dec 683 135 428 67 54 242 88 153 IIP 189.6 67.3 36.3 30.9 122.3 III? 193.9 68.4 37.4 31.1 125.4 1965 Jan 630 138 405 34 54 225 84 141 lyp 197.7 69.2 38.3 30.9 128.4 Feb 517 115 328 40 34 200 72 128 Mar 640 137 396 62 45 216 77 139 1965—I^ 200.3 70.1 39.0 31.0 130.2 Apr 634 128 413 51 42 179 64 115 May 625 116 399 57 53 182 57 125 716 127 484 40 66 217 65 152 1 Includes outstanding amount of VA vendee July 776 140 506 71 58 217 65 152 accounts held by private investors under repurchase agreement. NOTE.—For total debt outstanding, figures are 1 Monthly figures do not reflect mortgage amendments included in annual totals. FHLBB and F.R. estimates. For conventional, 2 Not ordinarly secured by mortgages. figures are derived. 3 Includes a small amount of alteration and repair loans, not shown separately; only such Based on data from Federal Home Loan Bank loans in amounts of more than $1,000 need be secured. Board, Federal Housing Admin., and Veterans Admin. 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 io g n e s 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 r o m r t- i t L er o m ng 2 sured anteed ch P a u s r e - s Sales bursed 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 3 764 1957 1,116 1,079 1,265 731 534 653 1958 3,901 1,483 2,418 623 482 1,541 1958 1,364 1,331 1,298 685 613 819 1959 5,531 2,546 2,985 1,907 5 568 1959 2,067 1,231 2,134 1,192 942 589 I960 6,159 3,356 2,803 1,248 357 576 I960 1,943 2,097 1,981 1,089 892 938 1961 6,093 3,490 2,603 815 541 631 1961 2,882 2,220 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—July , 4,516 3,033 1,482 41 30 222 1964—July 584 590 4,763 2,699 2,064 936 Aug ........ 4,477 3,008 1,469 44 43 230 Aug 369 351 4,781 2,662 2,119 926 Sept 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 1,026 May 4,326 2,997 1,329 47 32 327 May 350 342 5,227 2,480 2,748 1,017 4,303 2,992 L311 44 27 360 June 602 243 5,586 2,867 2,719 1,172 July 4,309 3,012 1J297 49 9 376 July 613 406 5,793 3,176 2,617 912 NOTE.—Federal National Mortgage Assn. data including mortgages 1 Secured or unsecured loans maturing in 1 year or less. subject to participation pool of Government Mortgage Liquidation 2 Secured loans, amortized quarterly, having maturities of more than Trust, but excluding conventional mortgage loans acquired by FNMA 1 year but not more than 10 years. from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Community Facilities Admin. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1322 CONSUMER CREDIT SEPTEMBER 1965 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e o il r - e co g O p n o a s t p o h u d e e m r r s er e a r n l R n o d i e a z p m n a a t s o i i 1 o r d n - Pe lo rs a o n n s al Total p S a l i o y n m a g n l e 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 I960 56,028 42,832 17,688 11,525 3,139 10,480 13,196 4,507 5 329 3,360 1961 57,678 43,527 17,223 11,857 3,191 11,256 14,151 5,136 5,324 3,691 1962 63,164 48,034 19,540 12,605 3,246 12,643 15,130 5,456 5,684 3,990 1963 69,890 53,745 22,199 13,766 3,389 14,391 16,145 5,959 5 871 4,315 1964 76,810 59,397 24,521 15,303 3,502 16,071 17,413 6,473 6,300 4,640 1964—My 72,456 56,496 24,024 13,813 3,426 15,233 15,960 6,218 5,240 4,502 73,069 57,055 24,251 13,923 3,466 15,415 16,014 6,299 5,231 4,484 Sept 73,495 57,446 24,295 14,046 3,493 15,612 16,049 6,354 5,223 4,472 Oct 73,928 57,826 24,423 14,222 3,509 15,672 16,102 6,333 5,352 4,417 Nov 74,371 58,085 24,367 14,431 3,516 15,771 16,286 6,412 5,394 4,480 Dec 76,810 59,397 24,521 15,303 3,502 16,071 17,413 6,473 6,300 4,640 1965 Jan 76,145 59,342 24,574 15,204 3,473 16,091 16,803 6,412 5,724 4,667 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 79,887 62,790 26,685 15,422 3,524 17,159 17,097 6,776 5,528 4,793 July 80,686 63,609 27,171 15,573 3,553 17,312 17,077 6,781 5,534 4,762 i Holdings of financial institutions; holdings of retail outlets are in- loans. The estimates include data for Alaska beginning with Jan. 1959 cluded in "other consumer goods paper." (except for instalment credit held by sales finance cos.) and for Hawaii beginning with Aug. 1959. For a description of the series see Apr. 1953 NOTE.—Consumer credit estimates 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 m c k ia s - l fi S n c a o a l s n e . s ce u C n r i e o d n it s fin s C u a m o nc n e e - r * Other i Total D s m t e o p e re a n s r t t 2 - F s t t u u o r r r n e e i s - A s a t p o n p r c e l e i s - d m A ea o u l b e to i r l s - e 3 Other 1939 4,503 3,065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941 6,085 4,480 1,726 1,797 198 759 1,605 320 496 206 188 395 1945 2,462 1,776 745 300 102 629 686 131 240 17 28 270 1957 33,867 29,200 12,843 9,609 2,429 3,124 1 1Q«5 4 668 1 393 1 210 361 478 1,226 1958 33,642 28,659 12,780 8,844 2,668 3,085 ,282 4,983 1,882 ,128 292 506 1,175 1959 39,245 33,570 15,227 10,319 3,280 3,337 1,407 5,676 2,292 ,225 310 481 1,368 I960 42,832 37,218 16,672 11,472 3,923 3,670 ,481 5,615 2,414 ,107 333 359 1,402 1961 43,527 37,935 17,008 11,273 4,330 3,799 1,525 5,595 2 421 ,058 293 342 1,481 1962 48,034 41,782 19,005 12,194 4,902 4,131 1,550 6,252 3,013 ,073 294 345 1,527 1963 53,745 46,992 21,610 13,523 5,622 4,590 1,647 6,753 3 427 ,086 287 328 1,625 1964 59,397 51,990 23,943 14,762 6,458 5,078 1,749 7,407 3,922 1,152 286 370 1,677 1964—July 56,496 50,082 23,176 14,359 6,109 4,748 1,690 6,414 3,267 1,037 273 360 1,477 Aug 57,055 50,583 23,389 14,475 6,204 4,797 1,718 6,472 3,332 1,044 273 363 1,460 Sent 57,446 50,937 23,527 14,553 6,283 4,845 1,729 6,509 3 371 ,048 275 365 1,450 Oct 57,826 51,220 23,663 14,625 6,334 4,870 1,728 6,606 3,444 1,062 276 367 1,457 Nov 58,085 51,341 23,680 14,622 6,378 4,919 1,742 6,744 3,541 1,088 279 367 1,469 Dec 59,397 51,990 23,943 14,762 6,458 5,078 1,749 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 1,758 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 08 S 277 384 1,532 Apr 60,803 53,828 25,117 14,991 6,739 5,202 ?'77Q 6,975 3 701 ?'O77 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 July 63,609 56,442 26,610 15,565 7,124 5,334 1,809 7,167 3,811 1,090 284 425 1,557 1 Consumer finance cos. included with "other" financial institutions 3 Automobile paper only; other instalment credit held by automobile until 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

SEPTEMBER 1965 CONSUMER CREDIT 1323 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Total P A u u r- t p o a m pe o r bile s O g p c u o a o t m o p h m d e e e - r r s r e R m r t a e n i o n p o iz d d a n a - ir - s l P o o e a n r n a - s l End of period Total m A pa o u p b t e i o l r - e s g O p c u o a o t m o p h n d e e e - r s r r m R i l z o o a e a d a n p ti n d e a o s r i n r n- l s P o o a e n n r a - s l chased Direct loans 1939 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945 300 164 24 58 54 1945 745 66 143 114 110 312 1957 9,609 7,393 1,509 31 676 1957 12,843 4,130 2,225 2,557 1,580 2,351 1958 8,844 6,310 1,717 36 781 1958 12,780 4,014 2,170 2,269 1,715 2,612 1959 10,319 7,187 2,114 72 946 1959 15,227 4,827 2,525 2,640 2,039 3,196 1960 11,472 7,528 2,739 139 1,066 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—July. 14,359 8,741 3,614 149 1,855 1964—July 23,176 7,979 4,371 3,234 2,380 5,212 Aug. 14,475 8,799 3,643 149 1,884 Aug 23,389 8,090 4,389 3,244 2,405 5,261 Sept. 14,553 8,764 3,706 148 1,935 Sept 23,527 8,143 4,390 3,255 2,422 5,317 Oct.. 14,625 8,773 3,754 146 1,952 Oct 23,663 8,233 4,396 3,273 2,437 5,324 Nov., 14,622 8,698 3,804 144 1,976 Nov 23,680 8,242 4,393 3,281 2,438 5,326 Dec. 14,762 8,701 3,889 142 2,030 Dec 23,943 8,300 4,451 3,380 2,427 5,385 1965—Jan.. 14,797 8,684 3,943 140 2,030 1965—Jan 24,091 8,325 4,503 3,455 2,400 5,408 Feb.. 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 8,919 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 July. 15,565 9,174 4,067 133 2,191 July 26,610 9,421 5,181 3,672 2,446 5,890 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 o e d e r s r m iz l o o a d a ti n e o r s 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 t n t i i s h a o a t n e i l n - r - s s m t p D o a e r e r e n - t s - t i 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 1,370 597 1957 6,748 ,114 588 490 4,555 1945 3,203 674 72 290 1,322 845 1958 7,035 ,152 565 595 4,723 1959 8,024 ,400 681 698 5,244 1957 11,103 2,937 427 876 3,953 317 2,593 1958 11,487 3,156 All 907 3,808 345 2,800 1960 9,074 ,665 771 800 5,837 1959 12,297 3,582 547 958 3,753 393 3,064 1961 9,654 ,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—July. 12,547 2,573 911 897 8,166 1964 17,413 5,469 1,004 909 4,756 635 4,640 Aug. 12,719 2,610 927 912 8,270 Sept. 12,857 2,633 941 923 8,360 1964—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 1,035 703 4,065 626 4,480 1965—Jan.. 13,271 2,689 996 933 8,653 Dec... 17,413 5,469 1,004 909 4,756 635 4,640 Feb.. 13,324 2,700 1,006 929 8,689 Mar. 13,469 2,744 1,019 935 8,771 1965—Jan.... 16,803 5,409 1,003 793 4,280 651 4,667 Apr. 13,720 2,813 1,042 939 8,926 Feb... 16,378 5,436 1,006 660 3,857 637 4,782 May 13,934 2,868 1,058 959 9,049 Mar... 16,297 5,495 1,023 601 3,743 633 4,802 June 14,140 2,934 1,076 971 9,159 Apr... 16,680 5,572 1,034 626 3,942 642 4,864 July. 14,267 2,970 1,092 974 9,231 May.. 16,948 5,628 1,058 647 4,142 664 4,809 June.. 17,097 5,707 1,069 627 4,218 683 4,793 July... 17,077 5,718 i,O63 591 4,217 726 4,762 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

1324 CONSUMER CREDIT SEPTEMBER 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.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 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—July 5,541 5,747 1,996 2 \f>6 JS4* I <»43 189 208 J.810 1.830 5,529 5,519 2,017 1,984 ,570 1,540 186 210 1,756 1,785 Sect 5,617 5,393 2,024 1,830 ,588 1,592 186 200 ,819 1,771 Oct 5,507 5,552 1,924 ,999 ,582 1,657 180 191 ,821 1,705 Nov 5,456 5,323 1,858 1,727 ,631 1,672 175 175 ,792 1,749 Dec 5,816 6,767 2,043 1,992 ,719 2,404 180 161 ,874 2,210 1965—Jan 5,883 5,023 2,120 1,836 ,729 1,440 181 134 ,853 1,613 Feb 6 022 5 007 2 228 Q1S 760 I 338 175 132 I 859 1,622 Mar 6,030 6,173 2,229 2^382 1,698 1,619 186 176 11,917 1.996 Apr 6,189 6,480 2,272 2,496 .645 1,614 189 190 2,083 2!l80 May 6,105 6,189 2,215 2,384 1,728 1,682 190 214 1,972 1,909 6,139 6,780 2,250 2,608 1,717 1 804 199 225 973 2,143 July 6,278 6,429 2,301 2,465 1,792 \\l55 179 200 2,006 2,009 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—July 5,058 5,165 1,781 1.844 1.448 1.460 171 177 1.658 1.684 5 094 4 960 1,789 1,757 1,496 1 430 172 170 1,637 1,603 Sept 5,104 5,002 1,802 1,786 1,491 1,469 172 173 1,639 1.574 Oct 5 097 5 172 1 788 I 871 I 456 1 481 167 175 1,686 1,645 Nov 5,155 5,064 1,818 1,783 1,509 1 463 174 168 1,654 1,650 Dec 5,256 5,455 1,864 1,838 1,505 1,532 177 175 1,710 1,910 1965 Jan 5,213 5,078 1,830 1,783 1,526 1,539 171 163 1,686 1,593 Feb 5,381 4 986 1,897 1,746 1,632 1,558 172 159 1,680 1.523 Mar 5,393 5,748 1,924 2,062 1,567 1,659 171 182 1,731 1,845 Apr 5,445 5,465 1,936 1,944 1,487 1.502 190 191 1,832 1,828 May 5,435 5,253 1,940 1.890 1,564 1,509 172 169 1,759 1,685 5,537 5,729 1,960 2,032 .587 1,611 179 185 1.811 1,901 July 5,612 5,610 1,972 1,979 1,612 1.604 169 171 1,859 1,856 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 53 777 1962 4 506 2,318 746 55 1,388 1963 . ... 5,711 2,659 1,161 143 1,748 1964 . 5,652 2,322 1,537 113 1,680 1964—July 483 582 215 322 98 83 18 31 152 146 A.UK ....• 435 559 228 227 74 110 14 40 119 182 Sept 513 391 222 44 97 123 14 27 180 197 Oct 410 380 136 128 126 176 13 16 135 60 Nov 301 259 40 -56 122 209 1 7 138 99 Dec 560 1,312 179 154 214 872 3 -14 164 300 1965—Jan 670 -55 290 53 203 -99 10 -29 167 20 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 July 666 819 329 486 180 151 10 29 147 153 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

SEPTEMBER 1965 CONSUMER CREDIT 1325 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 ni a e n s 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—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 [,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 I 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 5s023 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 I 607 I 653 977 952 May 6,105 6,189 2,343 2,459 1,242 1,239 1,494 1,487 1,026 1,004 6,139 6,780 2,370 2,687 1,237 1,393 .504 1,654 1,028 1,046 July 6,278 6,429 2,411 2,540 1,253 1,318 1,538 ,557 1,076 1,014 Repayments 1957 39,868 14,360 9,759 9,250 6,499 1958 40,344 14,647 9,842 9,365 6,490 1959 •'•• 42,603 15,560 9,742 10,020 7,281 1960 45,972 16,832 10,442 11,022 7,676 1961 47,700 18,294 10,943 11,715 6,749 1962 . ... 50,620 18,468 11,434 12,593 8,125 1963 55,111 20,266 12,211 13,618 9,016 1964 60,418 22,268 13,161 14,825 10,164 1964—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 1,097 1,266 1,210 860 844 Oct 5,097 5,172 1,868 1,908 1,071 1,120 1,284 1,244 874 900 Nov 5,155 5,064 1,916 1,856 1,103 1,073 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 ,921 ,872 [,059 992 1.299 1,233 934 981 Feb 5,381 4,986 1,956 L.819 1,157 1,075 1,286 1,164 982 928 Mar 5,393 5,748 .972 2|123 ,136 1,243 1,328 1,406 957 976 Apr 5,445 5,465 2,002 2,011 1,108 1,124 ,396 1,402 939 928 May 5,435 5,253 2,020 1,974 1,113 1,072 1.329 1,273 973 934 5,537 5,729 2,048 2,135 1,137 1,179 1,'377 1,448 975 967 July 5,612 5,610 2,070 2,084 1,152 1,125 1,421 1,430 969 971 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—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 May 670 936 323 485 129 167 165 214 53 70 602 1,051 322 552 100 214 127 206 53 79 July 666 819 341 456 101 193 117 127 107 43 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

1326 INDUSTRIAL PRODUCTION: S.A. SEPTEMBER 1965 MARKET GROUPING (1957-59= 100) 1957-59 1964 H964 U965 Grouping p p ti r o o o r - n - a a v g e e r- July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index 100.00 132.3 133.3 134.0 134.0 131.6 135.4 138.1 138.6 139.: 140.7 140.9 141.6 142.7 144.2 Final products, total 47.35 131.8 132.3 133.1 132.8 130.5 135.2 138.1 138.4 138.5 740.7 139.4 140.2 140.6 141.2 Consumer goods 32.3 131. 132. 133.1 132.5 129.5 134.5 138.0 138.4 138.0 140.0 138.5 138.6 138.6 138.6 Equipment, including defense. . . 15.04 132.0 132.5 133.2 133.5 132.5 136. 138.4 138.2 139.4 140.4 141.2 143.7 144.9 146.8 Materials 52.65 132.8 134.5 135.3 135.6 132.6 135.9 138.0 138.8 139.7 141.7 142.6 142.6 144.5 146.9 Consumer goods Automotive products 3.21 145.1 152.6 155.8 144.7 105.9 143.0 166.2 165.7 163.8 173.1 166.9 168.1 168.1 167.8 Autos 1.82 150.6 162.6 165.0 146.0 83.0 145.1 183.0 182.8 178.9 194. 183.5 184.9 187.1 184.6 Auto parts and allied products 1.39 138.0 139.3 143.8 143.0 136. 140. 144.0 143.1 143.9 145.2 145. 146.0 143.0 145.7 Home goods and apparel 10.00 131.9 131. 132.6 132.6 134.8 137.0 139.1 140.8 141.4 142.4 141.1 141.4 141.5 140.6 Home goods 4.59 141.1 140.9 141.7 140.6 144.0 147.7 150.5 151.7 152.7 154.0 152.1 151.8 151.3 150.2 Appliances, TV, and radios 1.81 137.1 134. 137.4 138.9 143.1 145.6 149.4 147.2 148.7 150.8 149.0 147.6 148.8 144.6 Appliances 1.33 141.1 138.3 142.1 143.4 146.8 148.9 150.9 148.5 150.8 152.3 151.7 149.7 152.1 145.9 TV and home radios .47 125.7 122.5 124.1 126. 132.7 136.1 145.3 143.6 142.9 146.8 141.3 141.6 139.2 141.0 Furniture and rugs 1.26 142.4 144.7 144.2 141.0 145.5 148.3 149.7 150.6 152.6 152.7 152.0 154.4 153.5 153.5 Miscellaneous home goods 1.52 144.7 145.9 144.8 142.3 143.7 149.7 152.3 157.9 157.5 158.9 155.8 154.7 152.6 154.2 Apparel, knit goods, and shoes 5.41 124.2 123.9 124.8 125.8 127.1 128.0 129.4 131.6 131.8 132.5 131.8 132.5 133.1 Consumer staples 19.10 129.3 129.0 129.6 130.4 130.7 131.8 132.7 132.6 131.9 133.2 132.4 132.2 132.7 133.2 Processed foods 8.43 119.9 117.8 118.7 118.7 120.0 122.0 122.5 122.3 121.3 122.1 122.1 121.1 120.7 121.5 Beverages and tobacco 2.43 123. 126.2 124.1 125.2 121.5 126.0 127.5 128.3 126.1 128.1 121.5 124.8 126.2 Drugs, soap, and toiletries 2.9' 146.9 146.7 149.1 152.6 151.9 149.7 151.8 154.2 152.8 154.2 152.6 151.9 152.9 154.7 Newspapers, magazines, and books. 1.4' 123.7 123.5 123.2 121.3 121.8 122.8 124.3 125.8 125.3 128.6 126.9 126.6 125.6 125.6 Consumer fuel and lighting 3.67 142.3 143.7 144.4 145.8 147.2 147.0 146.9 143.9 145.4 146.5 148.8 148.2 150.6 Fuel oil and gasoline 1.20 119.6 121.4 118.8 120.4 122.2 119.9 120.1 118.0 119.9 118.6 122.4 119.9 122.8 122.2 Residential utilities 2.46 153.4 154.5 156.9 158.2 159.4 160.2 159.9 156.5 157.8 160.0 161.7 162.0 164.1 Electricity 1.7: 159.6 160.6 163.4 164.8 165.9 166.6 165.9 163.7 164.3 167.0 169.1 169.3 172.2 Gas .74 Equipment Business equipment 11.63 139.1 140.0 141.1 141.4 140.6 146.1 148.5 747.7 149.2 750.7 150.9 153.5 154.6 156.0 Industrial equipment 6.85 137.0 138.5 139.6 140.4 140.4 144.5 145.9 144.8 147.1 148.3 148.4 150.6 151.9 154.6 Commercial equipment. 2.42 145.3 145.7 145.5 147.6 149.3 151.0 152.4 152.5 156.2 159.1 161.3 162.3 164.1 165.8 Freight and passenger equipment. 1.76 141.0 141.9 141.9 139.0 128.6 149.1 155.2 154.0 150.7 148.2 150.8 157.1 157.8 154.4 Farm equipment .61 133.1 127.9 138.0 134.1 142.2 135.1 142.1 142.5 141.3 140.4 138.3 141.7 143.7 Defense equipment 3.41 Materials Durable goods materials. 26.73 131.2 133.8 135.2 135.3 128.6 134.9 136.8 735.0 73P.0 142.6 142.9 143.4 146.1 745.5 Consumer durable 3.43 145.8 150.3 167.6 153.1 112.8 147.4 156. 159.6 164.9 166.3 163.4 162.3 169.9 172.3 Equipment 7.84 134.4 134.0 136.0 137.1 137.7 139.2 141.5 142.6 143.8 146.9 147.5 148.7 150.0 153.0 Construction 9.17 124.5 125.7 125.9 125.8 124.1 126.8 127.5 128.3 130.8 133.5 130.5 131.4 131.3 132.6 Metal materials n.e.c... . 6.29 129.2 130.7 131.4 128.5 131.7 135. 139.1 141.9 140.5 142.5 141.8 139.7 142.3 147.8 Nondurable materials 25.92 134.3 135.2 135.3 735.5 736.7 737.0 73P.2 739.5 140.5 140.6 142.4 747.5 743.5 745.4 Business supplies 9.11 127.4 127.5 127.6 126.4 129.3 129.0 132.7 133.2 135.6 134.2 135.1 134.1 135.3 138.1 Containers 3.03 127.9 125.2 125.9 125.4 131.8 132.3 135.3 136.3 138.0 129.7 137.3 132.0 132.0 136.3 General business supplies. 6.07 127.1 128.6 128.5 126.9 128.0 127.3 131.4 131.6 134.4 136.5 134.0 135.2 136.9 139.0 Nondurable materials n.e.c.. 7.40 157.7 158.9 159.3 162.1 162.2 163.3 165.2 167.0 167.5 167.6 170.8 168.8 171.0 173.2 Business fuel and power 9.41 122.6 124.0 123.8 124.3 124.0 124.0 125.1 124.1 123.9 125.7 127.2 127.9 129.7 130.7 Mineral fuels 6.07 112.2 113.4 113.0 113.4 113.3 113.0 113.3 112.1 111.1 112.3 114.3 115.1 116.6 118.6 Nonresidential utilities 2.86 149.6 151.0 151.3 152.1 151.0 151.2 154.6 153.8 155.6 158.5 159.6 160.1 162.4 Electricity 2.32 149.6 151.0 151.1 152.0 150.4 150.5 154.6 154.7 156.1 159.1 160.2 160.7 163.4 General industrial 1.03 142.8 144.6 145.1 147.1 144.1 147.4 149.7 148.7 150.9 154.9 155.8 156.0 159.8 Commercial and other 1.21 159.7 161.3 161.1 161.1 160.6 158.1 164.2 165.3 166.0 168.3 169.8 170.5 172.4 Gas .54 Supplementary groups of consumer goods Automotive and home goods 7.80 142.8 145.7 147.5 142.3 128.3 145.7 156.9 157.4 157.3 161.9 158.2 158.5 158.2 157.5 Apparel and staples 24.51 128.1 127,8 128.5 129.4 129.9 131.0 132.0 132.4 131.9 133.0 132.3 132.2 132.8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 INDUSTRIAL PRODUCTION: S.A. 1327 INDUSTRY GROUPINGS (1957-59= 100) Grouping 19 p p t 5 i r o o 7 o r n - - - 59 a 1 a v 9 g e 6 e r 4 - July Aug. Sept. 1 96 O 41 ct. Nov. Dec Jan. Feb. Mar. 1 A 9 p 6 r 5 . 1 May June July Total index. 100.00 132.3 133.3 134.0 134.0 131.6 135.4 138.1 138.6 139.2 140.7 140.9 141.6 142.7 144.2 Manufacturing, total 86.45 133.1 134. 134.9 134.8 132.0 136.4 139.4 140.2 140.8 142.3 142.4 143.1 144.1 145.7 Durable 48.07 133.5 135.4 136.2 135.3 129.9 137.0 140.9 142.0 142.7 144.8 145.5 146.4 148.1 150.1 Nondurable 38.38 132.6 132.8 133.2 134.2 134.6 135.6 137.6 137.9 138.4 139.1 138.5 138.8 139.1 140.3 Mining 8.23 111.3 111.7 112.1 112.2 112.0 112.8 112.5 111.8 111.8 112.5 113.0 114.0 115.1 117.1 Utilities 5.32 151.3 152.7 153.9 155.0 154.9 155.4 157.1 155.1 156.6 159.2 160.6 160.9 163.2 161.5 Durable manufactures Primary and fabricated metals 12.3. 130.7 132.5 134.6 755.5 132.3 136.4 139.1 140.0 140.4 142.5 144.0 142.7 144.5 149.4 Primary metals 6.95 129. 131.8 134.4 132.9 133.6 136.1 138.6 139.6 136.9 140.4 141.4 140.2 143.0 150.3 Iron and steel 5.45 126.5 130.9 133.8 129.1 132.5 135.2 136.4 137.1 137.0 139.5 141.2 139.7 143.3 151.6 Nonferrous metals and products. 1.50 138.3 137.0 134.4 139.0 133.9 140.6 150.9 148.0 149.0 151.0 153.6 153.4 146.1 148.1 Fabricated metal products 5.37 132.7 133.4 134.9 134.3 130.7 136.9 139.7 140.6 145.0 145.2 147.4 146.0 146.5 148.3 Structural metal parts 2.86 130.3 131.2 132.3 131.7 128.6 135.8 137.2 137.0 140.9 144. 144.3 142.7 144.3 145.6 Machinery and related products.».. 27.98 136.4 138.4 139.1 138.2 129.0 139.2 144.6 145.4 145.9 148.5 149.3 151.2 153.4 154.6 Machinery 14.80 141.4 142.2 143.2 144.4 145.2 147.7 150.1 150.7 152.5 153.9 155.4 156.9 159.0 160.4 Nonelectrical machinery 8.43 142. 143.8 144.2 145.0 145.4 148.1 150.7 151.3 152.7 153.8 155.2 157.0 159.4 161.6 Electrical machinery 6.37 140.6 140.2 141.9 143.7 144.9 147.2 149.2 150.0 152.3 154.1 155.8 156.8 158.4 158.8 Transportation equipment 10.19 130.7 135.3 135.9 131.3 105.3 129.2 140.3 141.4 139.7 144.4 144.6 147.3 149.5 149.8 Motor vehicles and parts 4.68 150.1 160.9 162.4 151.0 96.2 143.9 167.4 169.1 167.7 176.4 173.2 175.5 178.0 176.9 Aircraft and other equipment... 5.26 112.4 111.7 111.5 112.7 110.8 114.5 115.0 115.5 114.1 115.3 118.6 121.7 123.3 124.7 Instruments and related products.. U71 136.4 136.4 137.4 138.6 137.6 140.2 142.0 142.7 145.3 146.9 145.5 147.0 149.8 152.1 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 121.1 122.6 121.4 120.7 727.0 720.9 727.7 724.9 725.9 126.0 724.7 725.5 724.7 726.7 Clay, glass, and stone products. 2.99 126.0 126.4 125.6 127.0 126.9 127.7 130.2 132.4 131.8 129.2 129.9 130.3 131.6 132.6 Lumber and products 1.73 112.6 116.1 114.1 109.7 110.8 109.2 105.5 111.9 115.6 120.5 114.2 117.1 112.8 114.9 Furniture and miscellaneous.. 3.05 138.4 138.5 139.0 138.4 141.7 143.4 145.4 745.2 747.6 745.4 749.5 750.7 750.5 745.7 Furniture and fixtures 1.54 143.4 143.2 144.4 144.1 147 A 149.3 151.5 150.6 154.3 154.3 155.6 156.5 156.8 156.2 Miscellaneous manufactures. 1.51 133.4 133.8 133.4 132.6 135.9 137.4 139.1 139.6 140.8 142.4 143.2 143.6 143.6 141.1 Nondurable manufactures Textiles, apparel, and leather. 7.60 125.2 125.5 126.4 727.0 128.9 750.2 757.5 755.5 755.5 755.7 755.9 755.0 754.5 754.7 Textile mill products 2.90 122.9 122.0 123.7 125.5 127.8 128.7 130.3 131.7 132.0 131.5 132.2 131.6 131.9 132.0 Apparel products 3.59 134.1 134.4 135.1 135.8 137.2 139.1 140.6 142.2 143.7 144.0 144.3 145.3 145.3 Leather and products 1.11 102.6 105.8 105.5 102.7 104.8 105.4 105.6 108.7 106.6 106.1 105.0 110.9 105.2 Paper and printing 8.17 127.5 128.0 127.9 127.4 128. 725.2 752.7 752.0 757.5 752.9 755.2 754.2 754.0 755.5 Paper and products 3.43 133.4 132.8 132.8 133.5 137.0 133.8 140.2 139.1 137.5 139.0 140.0 140.9 139.4 141.6 Printing and publishing. 4.74 123.3 124.5 124.3 123.0 123.0 124.2 126.2 126.8 127.7 128.5 128.3 129.3 130.0 131.5 Newspapers , 1.53 117.0 120.0 118.3 115.9 114.3 117.0 122.6 121.4 120.9 121.0 120.7 121.5 124.7 126.2 Chemicals, petroleum, and rubber.. 11.54 152.5 152.8 154.0 757.7 156.2 755.2 755.5 158.2 160.4 762.0 760.5 767.2 767.9 765.0 Chemicals and products 7.58 159.6 158.7 160.7 165.1 163.0 163.2 166.4 166.7 167.8 169.5 169.2 169.3 169.9 171.3 Industrial chemicals 3.84 178.4 177.1 178.6 185.2 181.0 182.9 187.9 186.0 188.2 190.8 191.6 191.7 192.9 Petroleum products 1.97 121.0 124.4 121.0 120.2 122.7 121.7 120.9 119.0 121.5 122.2 121.5 122.9 121.8 125.6 Rubber and plastics products 1.99 156.3 158.1 161.2 163.0 163.2 163.7 165.7 164.7 171.1 172.6 167.7 168.2 171.1 Foods, beverages, and tobacco. 11.07 120. 120.5 120.2 120.4 720.5 725.5 725.9 724.2 725.4 725.7 722.4 727.5 722.5 722.9 Foods and beverages 10.25 120.8 120.0 120.1 120.4 120.3 123.5 123.8 124.3 123.4 123.4 122.5 121.9 122.3 123.0 Food manufactures 8.64 120.1 118.9 119.1 119.1 120.2 122.6 122.9 123.0 122.6 122.4 122.6 120.6 121.2 121.7 Beverages 1.61 124.4 125.6 125.4 127.6 120.6 128.5 128.6 131.4 127.4 128.6 121.8 129.0 128.5 Tobacco products .82 120.8 127.5 121.4 120.6 123.3 121.0 125.4 122.2 123.5 127.2 120.9 116.5 121.8 Mining Coal, oil, and gas 6.80 109.8 111.0 111.0 777.4 770.7 770.2 110.4 709.4 709.4 110.0 777.5 772.7 775.0 775.7 Coal 1.16 107.1 110.2 109.5 107.0 108.9 109.6 110.1 107.7 103.2 103.1 107.9 113.0 117.2 117.1 Crude oil and natural gas. 5.64 110.4 111.1 111.3 112.3 111.1 110.4 110.4 109.8 110.6 111.4 112.0 111.9 112.2 114.7 Oil and gas extraction.. 4.91 113.4 114.2 113.8 114.9 114.3 113.8 114.0 113.2 113.0 114.5 115.8 115.6 116.5 118.9 Crude oil 4.25 109.9 110.3 109.8 111.1 110.8 110.2 110.9 109.8 108.6 110.5 111.4 111.3 112.2 114.9 Gas and gas liquids.. .66 136.1 139.0 139.6 139.1 136.8 136.5 133.8 134.6 141.0 140.2 144.0 Oil and gas drilling.... .73 90.1 90.5 94.0 94.4 89.2 87.3 86.4 86.9 94.7 90.2 86.0 87.4 82.9 86.0 Metal, stone, and earth minerals. 1.43 118.1 114.9 117.6 116.0 117.9 725.7 722.7 725.5 725.7 724.5 727.4 722.9 724.9 726.5 Metal mining .61 117.4 107.8 112.1 111.1 115.4 126.6 121.8 126.7 123.4 124.6 125.8 121.6 123.7 124.3 Stone and earth minerals .82 118.7 120.2 121.7 119.6 119.7 123.9 123.4 120.8 122.9 124.1 118.2 123.9 125.8 128.1 Utilities Electric. 4.04 153.9 155.1 156.4 157.5 157.0 157.4 159.4 158.5 159.6 162.4 164.0 164.3 167.1 Gas 1.28 143.4 145.0 146.0 147.1 148.4 149.0 149.6 144.2 147.5 149.2 1 For description of revision see announcement on page 1274. shown separately. A description and historical data are available in Industrial Production 1957-59 Base. Figures for individual series and NOTE.—Published groupings include some series and subtotals not 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

1328 INDUSTRIAL PRODUCTION: N.S.A. SEPTEMBER 1965 MARKET GROUPINGS (1957-59= 100) 1957-59 1964 U964 U965 pro- aver- Grouping p ti o o r n - age July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Total index. 100.00 132.3 127.9 133.2 136.8 135.3 136.2 135.5 136.7 139.1 141.7 141.6 142.6 145.2 139.6 Final products, total 47.35 131.8 127.7 131.7 136.6 135.1 755.5 735.7 136.7 138.3 140.9 735.5 739.5 743.2 735.4 Consumer goods 32.31 131.7 126.7 132.0 137.7 136.4 135.4 133.3 136.0 137.7 140.5 136.9 137.8 141.6 135.6 Equipment, including defense. . . 15.04 132.0 130.0 131.0 134.1 132.4 135.7 139.1 138.3 139.8 141.6 142.0 144.2 146.8 144.3 Materials 52.65 132.8 128.1 134.6 137.0 135.5 136.8 135.9 136.7 139.8 142.5 144.3 145.0 147.1 140.7 Consumer goods Automotive products 3.27 145.1 131.1 89.5 139.1 114.7 153.4 759.5 775.5 773.9 752.9 776.7 775.5 750.3 755.5 Autos 1.82 150.6 130.1 46.2 132.9 95.4 165.4 192.2 201.1 196.8 213.6 200.0 203.4 208.6 171.7 Auto parts and allied products.... 1.39 138.0 132.4 146.7 147.2 140.2 137.6 139.7 141.7 143.8 142.4 146.0 146.5 143.1 141.1 Home goods and apparel 70.00 131.9 120.7 135.2 135.8 142.5 739.7 730.4 735.7 144.6 747.2 141.8 142.6 745.2 730.6 Home goods 4.59 141.1 127.9 137.9 148.4 151.7 152.9 147.7 143.7 152.8 157.3 152.8 153.0 155.6 138.5 Appliances, TV, and radios 1.81 137.1 113.0 123.9 146.6 149.5 151.7 140.4 138.8 156.7 163.1 154.5 154.7 158.1 124.0 Appliances 1.33 141.1 120.2 123.1 147.1 143.9 150.2 145.1 141.7 159.8 170.8 161.5 161.8 165.4 126.9 TV and home radios .47 125.7 92.7 126.1 145.0 165.2 156.1 127.0 130.7 148.0 141.4 134.7 134.7 137.5 115.9 Furniture and rugs 1.26 142.4 137.0 146.1 147.1 152.3 152.3 154.5 147.3 150.0 150.9 149.3 148.5 151.7 146.9 Miscellaneous home goods 1.52 144.7 137.9 147.7 151.6 153.8 154.9 150.8 146.5 150.4 155.7 153.5 154.7 155.7 148.8 Apparel, knit goods, and shoes 5.41 124.2 114.6 132.9 125.2 134.7 127.4 115.8 127.7 137.7 138.5 132.5 133.8 136.4 Consumer staples 19.10 129.3 129.1 137.4 138.5 136.8 730.5 725.7 729.9 727.9 729.9 127.6 725.4 733.7 734.4 Processed foods 8.43 119.9 117.8 129.4 135.2 134.3 125.1 118.7 115.6 112.1 113.8 112.7 114.4 118.8 121.5 Beverages and tobacco 2.43 123.2 131.9 135.3 126.8 127.6 119.0 109.9 112.6 114.8 124.6 123.9 133.6 144.4 Drugs, soap, and toiletries 2.97 146.9 140.8 152.4 154. 154.9 150.1 148.8 153.0 152.3 155.0 151.1 152.1 156.3 153.9 Newspapers, magazines, and books 1.47 123.7 121.6 124.8 124.7 123.5 122.8 124. 124.5 124.4 128.3 125.9 125.6 124.6 126.5 Consumer fuel and lighting 3.67 142.3 146.6 150.1 146.6 138.8 137.4 148.9 156.8 154.0 150.2 145.1 138.5 142.8 Fuel oil and gasoline 1.20 119.6 123.5 122.3 120.4 119.0 119.2 122.9 123.0 123.0 117.4 116.0 115.9 121.4 124.2 Residential utilities 2.46 153.4 Electricity 1.72 159.6 165.4 173.2 166.4 150.1 146.6 168.4 187.6 180.4 175.7 165.7 151.5 156.7 Gas .74 Equipment Business equipment 77.63 739.7 737.7 735.7 742.2 740.7 744.7 745.5 747.3 749.7 757.9 752.2 754.4 757.3 753.7 Industrial equipment 6.85 137.0 137.1 139.2 141.7 139.6 142.5 146.8 145.1 146.4 148.4 148.4 150.8 153.3 153.1 Commercial equipment 2.42 145.3 142.8 145.8 149.8 151.8 152.8 155.0 152.7 155.1 157.7 158.2 160.4 164.6 162.5 Freight and passenger equipment. 1.76 141.0 136.2 136.2 139.0 128.6 146.1 149.8 149.4 152.2 154.9 156.8 161.8 164.1 148.2 Farm equipment .61 133.1 115.8 111.9 125.9 133.5 122.1 138.7 145.0 157.8 158.9 157.6 149.2 152.8 Defense equipment 3.47 Materials Durable goods materials. 26.73 737. 727.5 733.0 736.3 737.5 735.5 735.2 735.7 735.7 742.9 744.4 746.9 749.5 743.^ Consumer durable 3.43 145.8 135.3 140.8 153.1 115.6 151.8 163.9 165.2 167.4 171.3 168.3 168.8 171.6 158.4 Equipment 7.84 134.4 129.8 131.9 135.7 137.3 139.3 143.6 143.9 145.1 148.5 149.1 149.7 151.5 148.3 Construction 9.17 124.5 129.5 134.7 133.3 130.9 126.5 118.6 115.9 120.3 125.5 129.2 136.0 141.2 139.2 Metal materials n.e.c.. . . 6.29 129.2 118.9 127.6 132.4 134.9 136.2 133.0 138.2 141.8 145.9 147.5 147.4 146.9 134.5 Nondurable materials 25.92 734.3 725.3 736.3 737.6 739.3 737.9 736.6 737.5 740.9 742.0 744.3 743.7 744.6 735.0 Business supplies 9.11 127.4 120.6 129.7 130.8 134.9 130.2 127.3 128.0 133.3 134.2 138.7 136.3 137.5 128.9 Containers 3.03 127.9 125.2 138.5 133.6 138.4 125.0 117.7 128.1 135.2 129.7 141.4 133.3 138.6 130.8 General business supplies. 6.07 127.1 118.3 125.3 129.4 133.1 132.8 132.1 127.9 132.4 136.5 137.4 137.9 136.9 127.9 Nondurable materials n.e.c.. 7.40 157.7 147.5 157.9 161.4 163.0 164.9 161.9 166.2 170.8 171.8 174.2 173.0 173.6 162.5 Business fuel and power 9.41 122.6 120.5 125.6 125.4 125.0 124.2 125.6 124.9 124.8 126.1 126.2 126.0 128.6 127.5 Mineral fuels 6.07 112.2 105.4 111.6 112.2 114.1 114.4 114.9 114.0 114.6 114.9 115.6 113.9 114.6 110.9 Nonresidential utilities 2.86 149.6 Electricity 2.32 149.6 158.9 162.9 159.9 152.6 147.7 151.4 152.3 150.0 153.6 152.7 156.3 164.8 General industrial 1.03 142.8 143.9 148.0 149.3 147.3 147.4 148.2 148.0 147.0 153.4 153.8 156.8 161.2 Commercial and other.. 1.21 159.7 177.0 181.2 174.3 162.2 152.7 159.3 161.2 157.7 159.2 157.1 161.5 174.1 Gas .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 142.8 129.2 118.0 144.6 136.5 153.1 156.7 156.8 161.5 167.8 162.6 163.6 165.8 146.7 Apparel and staples 24.51 128.1 125.9 136.4 135.5 136.4 129.8 125.8 129.4 130.1 131.8 128.7 129.6 133.9 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 INDUSTRIAL PRODUCTION: N.S.A. 1329 INDUSTRY GROUPINGS (1957-59= 100) 957-59 1964 11964 U965 Grouping p p ti r o o o r n - - a a v g e e r- July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total index 100.00 132.3 127.9 133.2 136.8 135.3 136.2 135.5 136.7 139.1 141.7 141.6 142.6 145.2 139.6 Manufacturing, total 86.45 133.1 128.0 133.3 137.6 136.3 137.7 136.4 137.7 140.5 143.5 143.4 144.6 747.2 140.4 Durable 48.07 133.5 128.9 130.0 136.9 132.6 139.0 140.7 140.7 143.5 147.1 147.5 149.0 151.7 144.8 Nondurable 38.38 132.6 126.8 137.5 138.5 141.0 136.0 131.1 133.8 136.8 139.0 138.2 139.0 141.6 134.9 Mining 8.23 111.3 107.5 113.2 113.6 114.5 113.4 112.1 110.8 111.1 111.1 113.0 114.4 115.7 113.4 Utilities 5.32 151.3 Durable manufactures Primary and fabricated metals 12.32 130.7 123. 132.4 735.5 134.8 137.6 136.4 139.4 142.7 145.9 148.4 146.0 147.4 139.6 Primary metals 6.95 129.1 118.0 127.4 131.4 134.9 137.5 134.4 141.0 144.7 149.1 150.9 146.6 145.9 134.5 Iron and steel 5.45 126.5 116.5 125.8 129.1 134.5 136.6 133.0 139.8 142.9 146.5 148.3 142.5 143.3 134.9 Nonferrous metals and products. 1.50 138.3 123.3 133.1 140.0 136.4 140.6 139.4 145.5 151.2 158.5 160.4 161.5 155.2 133.3 Fabricated metal products 5.37 132.2 131.4 138.9 140.7 134.6 137.7 139.0 137.2 140.2 141.7 145.2 145.3 149.4 146.1 Structural metal parts 2.86 130.3 131.2 135.6 137.0 132.5 137.8 138.6 134.3 135.3 138.5 140.0 142.0 147.2 145.6 Machinery and related products 27.98 136.4 131.0 127.1 137.9 750.5 141.6 147.1 146.9 148.9 752.9 757.5 755.7 156.5 148.9 Machinery 14.80 141.4 135.6 138.9 145.6 145.7 147.9 151.5 150.3 154.8 158.2 157.5 158.6 161.7 154.1 Nonelectrical machinery 8.43 142.6 140.2 138.9 143.1 142.8 145.0 151.8 152.1 155.4 159.6 159.9 160.9 163.2 157.6 Electrical machinery 6.37 140.6 129.5 138.9 149.0 149.6 151.7 151.0 148.1 153.9 156.3 154.4 155.7 159.8 149.4 Transportation equipment 10.19 130.7 125.1 109.1 128.5 108.3 135.0 144.7 146.1 144.8 150.6 148.3 151.9 153.9 144.0 Motor vehicles and parts 4.68 150.1 142.0 106.7 145. 102.3 155.0 174.8 178.9 177.3 187.7 179.8 185.0 189.0 168.0 Aircraft and other equipment. . . 5.26 112.4 109.0 109.5 112.2 111.4 116.2 117.3 116.7 115.5 117.0 119.2 121.2 121. 121.7 Instruments and related products. . 1.71 136.4 135.0 138.5 140.1 139.1 142.7 143.7 141.7 143.1 144.7 143.3 145.5 151.3 150.6 Ordnance and accessories 1.28 Clay, glass, and lumber 4.7. 727.7 725.0 132.4 729.9 725.2 727.7 770.5 705.5 774.4 777.5 722.9 750.5 755.5 752.9 Clay, glass, and stone products. 2.99 126.0 133.4 136.3 134.6 134.5 129.6 120.4 113.9 116.4 118.9 129.3 136.2 142.1 141.9 Lumber and products 1.73 112.6 113.2 125.5 121.8 117.4 106.5 93.4 98.5 111.0 114.5 111.9 121.0 124.1 117.2 Furniture and miscellaneous 3.05 138.4 755.5 143.4 144.8 149.2 745.2 745.7 759.5 742.9 745.5 745.2 745.7 750.5 745.2 Furniture and fixtures 1.54 143.4 141.8 149.2 149.6 153.0 152.0 154.2 147.6 150.4 152.4 151.4 151.8 156.5 154.6 Miscellaneous manufactures... . 1.51 133.4 129.1 137.4 139.9 145.4 144.3 139.1 131.2 135.2 138.8 138.9 141.4 144.3 137.6 Nondurable manufactures Textiles, apparel, and leather 7.60 725. 775.5 757.5 126.2 752.5 129.4 779.4 757.2 759.5 759.4 755.5 755.5 757. 122.6 Textile mill products 2.90 122.9 110.8 126.8 126.1 127.8 129.3 121. 131.0 134.6 134.1 135.5 137.5 136.5 119.9 Apparel products 3.59 134. 121.6 141.9 133.1 144.7 137.7 124.4 138.6 150.9 151.9 145.0 145.3 147.5 Leather and products 1.11 102.6 94.7 112.4 104.2 107.4 103.3 98.5 108.2 114.0 112.5 105.0 105.9 106.3 Paper and printing 8.1 727.5 720.9 727.5 129.4 134.9 750.9 727.5 725.5 757. 754.5 755.7 755. 754.7 727.2 Paper and products 3.43 133.4 124.8 137.3 135.5 145.9 134.5 126.6 137.0 140.9 141.8 144.2 141.6 142.2 130.3 Printing and publishing 4.74 123.3 118.2 121.0 124.9 126.9 128.4 128. 122.6 125.3 129.5 130.2 130.5 129.3 125.0 Newspapers 1.53 117.0 104.4 107.1 116.7 122.6 128.7 123. 111.2 116.9 123.4 129.3 129.5 125.3 109.8 Chemicals, petroleum, and rubber 11.54 752.5 145.6 755.0 755.2 755.5 755.5 154.6 156.9 161.3 755.2 755.4 752.9 755.7 759.7 Chemicals and products 7.58 159.6 152.9 160.9 164.6 164. 162.8 162.4 164.7 168.2 171.5 173.2 171.7 174.1 168.1 Industrial chemicals 3.84 178.4 170.9 176.5 183.3 181.9 184.4 186.0 185.1 190.1 192.7 196.4 192.8 195.8 Petroleum products 1.9' 121.0 128.1 127.1 125.0 123.3 119.9 119.1 117.2 119.7 117.9 116.6 121.1 125.5 1*29 '.4 Rubber and plastics products 1.99 156.3 135.2 160. 166.8 172.3 162.1 159. 166.3 176.2 176.4 172.9 170.7 173.7 Foods, beverages, ami tobacco 77.07 720.5 720.5 130.4 755.7 755.0 724. 777.2 775.4 775. 775.7 775.4 775.5 124.4 123.8 Foods and beverages 10.25 120.8 121.4 130.3 133.7 132.9 124.3 118.4 115.0 112.5 116.0 115.0 118.6 123.9 125.1 Food manufactures 8.64 120.1 117.7 129.0 134.9 134.6 125.7 119. 116.2 112.8 114.4 113.0 114.6 118.7 121.1 Beverages 1.61 124.4 141.6 137.3 127.6 124.2 116.7 113.9 108.4 110.7 124.2 125.5 140. 151.6 Tobacco products 120.8 112.8 131.4 125.3 134.3 123.4 102.1 120.9 122.9 125.3 120.7 120.7 130.3 Mining Coal, oil, and gas 5.50 709.5 705.9 770.0 770.5 777.5 777. 772.5 777.7 772. 777.5 772.0 770.5 777.0 705.5 Coal 1.16 107. 81.0 115.2 113. 118.7 114.1 108. 105.5 104.4 103.9 108.7 114.1 116.6 90.2 Crude oil and natural gas 5.64 110.4 108.5 108.9 109.9 110.2 111.3 113.1 113.0 113.8 113.1 112.6 109.9 109.9 112.0 Oil and gas extraction 4.91 113.4 111.1 110.8 111.9 113.0 114.5 116.5 116.0 116.9 117.5 117.2 113.8 114.1 115.7 Crude oil 4.25 109.9 108.1 107.6 108.9 109.7 110.2 112.0 111.4 111.9 112.7 113.2 110.2 111.1 112.6 Gas and gas liquids .66 136.1 130.7 131.1 131.3 133.9 141.6 144.9 145.6 149.0 147.8 143.3 Oil and gas drilling .73 90. 91.1 96. 96.4 91.4 89.5 90.5 92.6 92.4 83.6 81.5 '83.'6 'si.': '86.6 Metal, stone, and earth minerals. 1.43 775.7 725.0 725.5 725.5 727.9 727.5 777.7 705. 705.5 709.7 777. 752.4 755.0 757.5 Metal mining .61 117.4 115.3 121.1 125.5 123.5 116.5 109.6 111.5 111. 110.9 117.0 133.8 139.8 133.0 Stone and earth minerals 118.7 132.3 134.5 130.4 131.1 125. 112.3 102.2 101.9 107.7 118. 131.3 136.7 141.0 Utilities Electric. 4.04 153.9 161.6 167.3 162.6 151.5 147.3 158.6 167.3 163.0 163.0 158.: 154.: 161.4 Gas 1.28 143.4 1 For description of revision see announcement on page 1274. shown separately. A description and historical data are available in Industrial Production—1957-59 Base. Figures for individual series and NOTE.—Published groupings include some series and subtotals not 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

1330 BUSINESS ACTIVITY; CONSTRUCTION SEPTEMBER 1965 SELECTED BUSINESS INDEXES (1957-59=100) Industria production 5 Manu- Prices 4 facturing 2 Nonag- Major market groupings Major industry C st o ru n - - r t i u c r u a l l - Freight Total Period Total Final products Mate- groupings t c r t a i o o c n n t - s T m o p e l e t m o a n l y t - — - i p m E lo m en y - t - P ro a l y ls - l i o n a g d s - S R a e le ta s i 3 l s C um on e - r W m c s o o a h m d l o e i l - t e y - Total g s C o u o o m n d e - s rE m q e u n ip t - rials Mfg. M in i g n- U iti t e il s - 1950 74.9 72.8 78.6 56.4 76.9 75.8 83.2 49.5 61 86.1 99.4 68.9 117.1 72 83.8 86.8 1951 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 63 91.1 106.1 80.2 121.5 76 90.5 96.7 1952 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 67 93.0 106.1 84.5 115.0 79 92.5 94.0 1953 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 70 95.6 111.6 93.6 116.6 83 93.2 92.7 1954 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 76 93.3 101.8 85.4 104.6 82 93.6 92.9 1955 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 91 96.5 105.5 94.8 115.3 89 93.3 93.2 1956 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 92 99.8 106.7 100.2 115.9 92 94.7 96.2 1957 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 93 100.7 104.7 101.4 108.2 97 98.0 99.0 1958 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 102 97.8 95.2 93.5 93.8 98 100.7 100.4 1959 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 105 101.5 100.1 105.1 97.9 105 101.5 100.6 I960 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 105 103.2 99.9 106.7 95.3 106 103.1 100.7 1961 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 108 102.8 95.9 105.4 91.2 107 104.2 100.3 1962 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 120 105.7 99.1 113.8 92.4 115 105.4 100.6 1963 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 132 107.9 99.7 117.9 93.3 120 106.7 100.3 1964 132.3 131.8 131.7 132.0 132.8 133.1 111.3 151.3 137 110.8 101.7 124.7 95.5 127 108.1 100.5 1964 July 133.3 132.3 132.2 132.5 134.5 134.2 111.7 152.7 140 110.9 101.9 124.3 94.5 128 108.3 100.4 Aug . .. 134 0 133 1 133 1 133 2 135 3 134 9 112.1 153.9 121 111 0 102.0 126.0 93.2 130 108.2 100.3 Sept 134.0 132.8 132.5 133.5 135.6 134 8 112.2 155.0 131 111.3 102.9 127.6 96.4 130 108.4 100.7 Oct 131 6 130 5 129 5 132 5 132 6 132 0 112 0 154 9 136 111 2 100 5 122.9 94.6 125 108.5 100.8 Nov 135.4 135.2 134.5 136.7 135.9 136.4 112.8 155.4 143 112.1 103.2 127.9 98.5 127 108.7 100.7 Dec 138.1 138.1 138.0 138.4 138.0 139.4 112.5 157.1 154 112.7 104.0 130.9 99.1 133 108.8 100.7 1965—Jan 138.6 138.4 138.4 138.2 138.8 140.2 111.8 155.1 137 113.0 104.5 132.8 100.4 134 108.9 101.0 Feb 139.2 138.5 138.0 139.4 139.7 140.8 111.8 156.6 140 113.6 105.0 133.5 96.4 136 108.9 101.2 Mar 140 7 140 1 140 0 140 4 141.7 142 3 112 5 159.2 141 114.2 105.6 135.1 98.1 133 109.0 101.3 Apr 140.9 139.4 138.5 141.2 142.6 142.4 113.0 160.6 152 114.1 105.7 133.6 98.6 134 109.3 101.7 May 141.6 140.2 138.6 143.7 142.6 143.1 114.0 160.9 145 114.5 105.8 134.7 100.5 137 109.6 102.1 June 142.7 140.6 138.6 144.9 144.5 144.1 115.1 163.2 139 nis.o 106.6 135.5 93.8 136 110.1 102.8 July 144.2 141.2 138.6 146.8 146.9 145.7 117.1 161.5 149 107.3 136.2 95.1 139 110.2 102.9 Aug." 144.4 141.9 138.8 148.4 146.6 145.9 117.5 162.5 115.4 107.3 136.6 94.3 138 102.9 115.6 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. 5 For description of revisions see announcement on page 1274. Prices: Bureau of Labor Statistics data. Freight carloadings: Based on data from Association of American NOTE.—Data are seasonally adjusted unless otherwise noted. Railroads. Construction contracts: F. W. Dodge Co. monthly index of dollar CONSTRUCTION CONTRACTS (In millions of dollars) 1964 1965 Ty ty p p e e o o f f o c w o n n e s r t s ru h c ip ti a on nd 1963 1964 July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Total construction 45,546 47,330 4,604 3,761 3,763 4,033 3,758 3,598 3,131 3,226 4,224 4,770 4,864 4,625 4,795 By type of ownership: Public 14,653 15,374 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 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 contruction: Residential building 20,502 20,565 2,001 1,679 1,717 1,703 1,482 1,306 1,275 1,300 1,877 2,139 2,074 2,080 1,952 Nonresidential building 14,377 15,522 1,549 1,276 1,229 1,429 1,264 1,299 1,156 1,062 1,384 1,546 1,775 1,551 1,691 Nonbuilding 10,667 11,244 1,054 807 817 902 1,012 994 700 864 962 1,086 1,015 993 1,151 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

SEPTEMBER 1965 CONSTRUCTION 1331 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 1,360 4,415 ,275 5,682 1957 49,139 35,080 19,006 12,029 3,557 3,564 4,908 4,045 14,059 1,287 4,934 ,344 6,494 1958 50,153 34,696 19,789 10,659 2,382 3,589 4,688 4,248 15,457 1,402 5,545 ,387 7,123 19591 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 1,966 8,755 1964 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 1964—Aug. 65,480 45,508 26,252 13,615 3,361 5,493 4,761 5,641 19,972 988 7,262 2,290 9,432 Sept. 65,968 45,571 25,934 14,058 3,400 5,587 5,071 5,579 20,397 ,068 7,414 2,236 9,679 Oct.. 64,861 45,294 25,685 14,088 3,445 5,653 4,990 5,521 19,567 ,097 6,739 2,195 9,536 Nov. 65,153 45,368 25,638 14,242 3,521 5,709 5,012 5,488 19,785 ,033 7,087 2,189 9,426 Dec 66,178 45,684 25,953 14,416 3,610 5,641 5,165 5,315 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. 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 June 68,950 48,616 27,224 15,801 4,040 6,574 5,187 5,591 20,334 833 7,546 2,014 9,941 68,262 48,491 26,945 16,010 4,073 6,826 5,111 5,536 19,771 7,156 1,995 68,650 48,335 26,712 16,119 4,118 6,872 5,129 5,504 20,315 1,996 i Beginning with 1959, includes data for Alaska and Hawaii. NOTE.—Monthly data are at seasonally adjusted annual rates. Beginning with 1959, figures are Census Bureau estimates. Data before 1959 are joint estimates of the Depts. of Commerce and Labor. NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership Government- (priva S t . e A . only) underwritten Period Total N fa o rm n- Total p M o e li t t r a o n - p m N o e l o i t t r n a o - n - Total fam 1- il P y rivat f e am 2- ily M fam ul i t l i y - Public Total FHA VA 1955. 1,646 ,627 19 670 277 393 1956. 1,349 ,325 24 465 195 271 1957. 1,224 ,175 49 322 193 128 1958. 1,382 ,314 68 439 337 102 1959. 1,554 1,077 477 ,517 1,234 56 227 37 458 349 109 1960. 1,296 889 407 ,252 995 44 213 44 336 261 75 1961. 1,365 948 417 ,313 975 44 295 52 328 244 83 1962. 1,492 1,054 439 ,463 992 49 422 30 339 261 78 1963. 1,641 1,151 490 ,609 1,021 53 535 32 292 221 71 1964. 1,591 1,119 472 1,557 972 54 532 33 264 205 59 1964—July.. 1,500 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 ,422 127 91 37 124 79 4 41 3 23 18 5 Oct... ,522 ,495 146 101 45 144 92 5 47 2 24 19 5 Nov.. ,505 ,480 115 78 37 112 69 4 39 3 21 16 5 Dec. ,610 ,575 98 70 28 97 59 3 35 2 17 13 4 1965—Jan... ,442 ,417 86 59 27 82 52 3 27 4 17 13 4 Feb.. ,482 ,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 ,532 155 103 52 152 100 5 48 3 22 17 5 May. ,516 ,501 162 111 52 158 102 5 50 5 24 19 5 June. ,562 ,535 114 48 P155 100 6 50 25 19 5 July.. ,459 ,433 94 49 1 96 5 40 22 17 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

1332 EMPLOYMENT SEPTEMBER 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 i o o . n n n a - l l N ab N o o t . r S i n . f A o t r . h c 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 - * In U pl n o e y m ed - (pe m r S r a . e t A c n e e . t 2 nt) Total cultural agriculture industries 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—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 4.6 136,160 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 Aug . . 136,473 56.310 78,465 75,772 72,397 67,821 4,576 3,375 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 fa g c- Mining c C o o n t n i s o t t r r n a u c c t - t T l i i o r c a n n u & s t p il o i p t r i u e ta s b - - 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 1960 54,203 16,796 712 2,885 4,004 11,391 2,669 7,392 8,353 1961 53,989 16,326 672 2,816 3,903 11,337 2,731 7,610 8,594 1962 55,515 16,853 650 2,902 3,906 11,566 2,800 7,947 8,890 1963 56,643 17,005 635 2,983 3,914 11,803 2,873 8,230 9,199 1964 58,188 17,303 635 3,106 3,976 12,188 2,944 8,533 9,502 SEASONALLY ADJUSTED 1964 Aug 58,301 17,339 634 3,103 3,999 12,231 2,951 8,573 9,471 Sept 58,458 17,449 634 3,080 4,005 12,229 2,960 8,592 9,509 Oct 58,382 17,171 638 3,106 3,996 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 59,913 17,896 629 3,186 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 60,382 18,045 630 3 220 4 068 12 673 3 013 8 814 9 919 JulyP 60,589 18,147 637 3,175 4,071 12,707 3,018 8,887 9,947 Aug v 60,711 18,155 632 3,214 4,090 12,712 3,021 8,906 9,981 NOT SEASONALLY ADJUSTED 1964 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 June 60,884 18,109 642 3,429 4 109 12 665 3 034 8 964 9 932 JulyP.. . .. 60,736 18,096 644 3,499 4,120 12,655 3,069 9,029 9,624 Aug v 61,070 18,299 645 3,606 4,135 12,681 3,069 9,013 9,622 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

SEPTEMBER 1965 EMPLOYMENT AND EARNINGS 1333 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1964 1965 1964 1965 Aug. June Julyp Aug, Aug. June Julyp Total 12,847 13,428 13,510 13,511 12,966 13,486 13,433 13,616 Durable goods 7,279 7,731 7,808 7,792 7,211 7,808 7,759 7,713 Ordnance and accessories 104 103 104 107 103 102 103 106 Lumber and wood products 531 529 535 535 561 557 560 565 Furniture and fixtures 335 352 354 353 341 351 349 359 Stone, clay, and glass products 498 500 506 508 519 517 523 530 Primary metal industries 1,012 1,068 1,089 1,076 1,009 1,080 1,074 1,073 Fabricated metal products 932 987 997 980 931 999 987 979 Machinery except electrical 1,129 1,200 1,216 1,228 1,118 1,213 1,211 1,216 Electrical machinery 1,040 1,145 1,153 1,145 1,037 1,137 1,132 1,142 Transportation equipment 1,145 1,265 1,268 1,276 1,027 1,268 1,241 1,145 Instruments and related products 234 246 252 250 235 246 248 251 Miscellaneous manufacturing industries. 319 336 334 334 331 339 330 347 Nondurable goods 5,568 5,697 5,702 5,719 5,755 5,678 5,674 5,903 Food and kindred products 142 1,121 1,123 1,137 1,262 1,113 1,160 1,256 Tobacco manufactures 72 73 74 66 82 62 62 75 Textile-mill products 799 824 826 824 808 831 821 833 Apparel and other finished textiles ,165 1,233 1,209 1,219 1,194 1,217 1,176 1,249 Paper and allied products 493 501 507 507 499 506 505 513 Printing, publishing, and allied industries 604 619 625 623 603 618 620 622 Chemicals and allied products 530 542 549 550 532 544 548 552 Products of petroleum and coal 115 113 115 114 119 115 117 117 Rubber products 337 355 359 364 337 355 351 364 Leather and leather products 311 316 315 315 320 317 314 323 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 Aug. June July? Aug. June July*3 Aug.P Aug. June July?' Total. 40.8 41.0 40.9 40.9 103.07 108.21 107.01 106.60 2.52 2.62 2.61 2.60 Durable goods 41.5 41.9 41.6 41.6 112.47 118.16 116.06 115.65 2.71 2.80 2.79 2.78 Ordnance and accessories 40.4 41.8 42.5 41.2 121.10 128.44 129.89 127.20 3.02 3.08 3.10 3.11 Lumber and wood products 40.4 39.7 40.1 40.3 89.98 90.54 89.47 90.98 2.20 2.23 2.22 2.23 Furniture and fixtures 41.2 41.4 41.3 41.6 85.48 86.94 86.31 90.10 2.04 2.10 2.10 2.13 Stone, clay, and glass products 41.3 41.5 41.6 41.6 107.78 110.99 110.99 111.51 2.56 2.63 2.63 2.63 Primary metal industries 42.2 42.1 42.3 42.3 130.00 135.89 135.68 132.82 3.11 3.19 3.20 3.17 Fabricated metal products 41.7 41.9 41.8 41.8 112.98 117.02 114.95 116.20 2.69 2.76 2.75 2.76 Machinery except electrical 42.5 42.9 42.8 43.0 121.11 127.74 125.54 125.54 2.87 2.95 2.94 2.94 Electrical machinery 40.6 40.9 40.7 40.7 102.31 106.45 104.23 105.01 2.52 2.59 2.58 2.58 Transportation equipment 42.6 43.0 42.1 42.1 129.38 137.60 133.56 130.70 3.11 3.20 3.18 3.18 Instruments and related products 41.0 41.5 41.4 41.4 103.98 109.25 107.53 108.32 2.53 2.62 2.61 2.61 Miscellaneous manufacturing industries. 40.0 39.6 39.8 40.2 82.80 85.17 84.10 86.03 2.07 2.14 2.14 2.14 Nondurable goods 39.7 39.8 39.8 39.9 91.83 94.24 94.64 94.71 2.29 2.35 2.36 2.35 Food and kindred products 40.8 40.9 41.1 40.9 97.23 101.11 101.33 99.53 2.36 2.46 2.43 2.41 Tobacco manufactures 38.4 37.2 38.3 37.2 75.47 83.16 83.10 78.79 1.94 2.20 2.21 2.09 Textile-mill products 41.2 41.4 41.3 41.7 73.10 77.10 77.23 78.58 1.77 1.84 1.87 1.88 Apparel and other finished textiles 35.9 36.4 36.2 36.3 66.06 66.61 66.43 68.26 1.80 1.82 1.82 1.84 Paper and allied products 43.0 42.9 42.9 42.9 111.71 114.05 114.38 114.48 2.58 2.64 2.66 2.65 Printing, publishing, and allied industries 38.6 38.5 38.4 38.5 114.55 117.43 116.43 118.12 2.96 3.05 3.04 3.06 Chemicals and allied products 41.3 41.7 41.4 41.5 116.47 120.54 119.94 119.94 2.82 2.87 2.89 2.89 Products of petroleum and coal 42.1 41.9 42.0 42.6 133.88 137.80 138.78 138.02 3.18 3.25 3.25 3.24 Rubber products 41.8 41.7 41.6 41.9 107.26 109.46 108.84 109.20 2.56 2.60 2.61 2.60 Leather and leather products 37.9 37.7 37.9 37.6 70.46 71.62 71.80 72.20 1.83 1.87 1.86 1.89 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

1334 PRICES SEPTEMBER 1965 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o u n i a e d l l l tr e G a i l c n e a i c d s t - y o n F i t p a n i i u e n o s g r h r d 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 h r 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 July 108.3 107.2 107.1 107.8 108.9 100 9 107.9 102.8 105.5 109.4 113.7 119.5 109.3 114.1 108.9 Aug 108.2 106.9 107.2 107.9 109.2 100.9 108.2 102.6 105.3 109.3 113.8 119.8 109.4 114.2 108.9 SeDt. 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 Apr 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 109.6 107.9 108.2 108.8 110.8 104.6 107.7 103.1 106.8 111.4 115.6 121.8 111.0 115.9 110.6 110.1 110.1 108.2 108.8 111.0 103.4 107.8 103.1 106.9 111.2 115.7 122.2 111.0 115.7 111.0 July 110.2 110.9 108.3 108.9 111.2 103.2 106.9 102.9 106.1 111.5 115.3 122.7 108.7 114.6 111.5 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 il e e 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 e tc b r . , - L b e u e t m c 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 a et 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 97.7 101.2 100.8 100.6 107.4 100.2 97.5 93.3 96.5 100.0 100.0 102.3 98.8 101.8 104.1 107.3 1963 100.3 95.7 101.1 100.7 100.5 104.2 99.8 96.3 93.8 98.6 99.2 100.1 102.2 98.1 101.3 106.1 110.4 1964 100.5 94.3 101.0 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102.8 102.9 98.5 101.5 107.4 109.2 1964—July. 100.4 94.1 101.2 101.1 101.1 105.4 96.7 96.6 91.8 101.2 98.7 102.5 103.1 98.6 101.5 107.3 107.5 Aug. 100.3 93.6 101.0 101.1 101.2 105.6 96.4 96.5 91.8 100.9 98.7 103.0 102.9 98.6 101.7 107.5 107.3 Sept. 100.7 95.7 102.2 101.1 101.2 105.4 95.2 96.6 91.9 100.6 98.7 103.0 102.9 98.6 101.8 107.5 109.2 Oct.. 100.8 93.8 101.7 101.5 101.4 106.0 96.7 96.9 92.1 100.3 99.1 103.8 103.0 98.5 101.8 107.6 110.1 Nov. 100.7 94.0 100.9 101.6 101.4 105.5 97.6 97.1 92.2 99.6 98.9 104.3 103.2 98.5 101.8 107.5 108.5 Dec, 100.7 92.7 100.8 101.8 101.5 105.4 98.1 97.2 92.2 99.4 98.9 104.7 103.1 98.4 101.6 107.5 110.7 1965—Jan.. 101.0 93.0 102.2 101.9 101.5 104.9 98.5 97.3 92.3 100.8 99.0 104.5 103.3 98.3 101.7 107.5 110.0 Feb., 101.2 94.5 102.1 101.9 101.5 105.1 97.9 97.5 92.2 100.8 99.0 104.6 103.5 98.2 101.8 107.6 109.6 Mar. 101.3 95.4 101.8 102.0 101.5 105.7 97.9 97.5 92.2 100.7 99.5 104.8 103.5 98.3 101.9 107.5 109.5 Apr., 101.7 97.6 102.3 102.1 101.5 106.3 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 98.4 103.3 102.3 101.6 107.4 98.4 97.6 92.9 100.4 100.0 105.7 103.7 98.0 101.9 108.1 108.9 June 102.8 100.3 •"106.1 '102.5 101.9 108.2 98.7 97.4 '92.8 100.3 100.0 105.9 r103.8 98.0 r102.0 107.6 111.0 July. 102.9 100.0 106.7 102.5 101.9 109.2 98.7 97.4 92.7 100.4 99.9 105.8 103.8 97.8 101.9 107.6 112.5 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 PRICES 1335 WHOLESALE PRICES: DETAIL (1957-59- 100) 1964 1965 1964 1965 Group Group July May June July July May June July Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 108.9 118.5 109.0 104.0 Woodpulp 95.5 98.1 98.1 98.1 Grains 85.7 91.0 89.6 88.4 Wastepaper 93.4 100.3 98.0 98.3 Livestock and poultry 87.7 96.2 104.6 105.0 Paper 103.7 104.0 104.1 104.1 Plant and animal fibers 99.4 91.8 92.0 91.8 Paperboard 96.5 96.3 96.3 96.3 Fluid milk 100.5 100.2 100.7 102.5 Converted paper and paperboard... 97.5 99.5 '99.5 99.4 Eggs 87.3 79.0 82.0 84.7 Building paper and board 94.4 92.7 92.7 93.0 Hay and seeds 105.6 115.4 114.7 113.8 Other farm products 98.3 94.8 95.6 95.4 Metals and Metal Products: Processed Foods: Iron and steel 100.7 101.5 101.3 101.5 Nonferrous metals 104.4 115.2 '116.2 115.5 Cereal and bakery products 108.6 108.3 108.5 109.3 Metal containers 105.6 108.3 '108.3 108.3 Meat, poultry, and fish 93.3 97.7 105.5 106.3 Hardware 104.9 105.8 105.9 106.1 Dairy products and ice cream 107.0 106.8 107.1 107.8 Plumbing equipment 101.3 104.2 104.3 104.3 Canned and frozen fruits and veg- Heating equipment 91.9 91.6 r92.0 92.1 etables 105.1 100.4 101.5 101.7 Fabricated structural metal products. 99.3 101.2 101.2 101.3 Sugar and confectionery 106.6 108.9 109.4 109.3 Fabricated nonstructural metal prod- Packaged beverage materials 98.4 94.2 94.2 94.2 ucts 108.0 109.2 109.2 109.2 Animal fats and oils 90.8 107.4 108.4 116.3 Crude vegetable oils 80.4 96.9 94.4 91.2 Machinery and Motive Products: Refined vegetable oils 79.2 93.7 89.2 89.4 Vegetable oil end products 87.9 102.3 101.2 101.2 Agricultural machinery and equip... 112.9 114.7 114.7 114.9 Miscellaneous processed foods 108.8 112.2 112.7 113.3 Construction machinery and equip... 112.3 115.1 115.2 115.4 Metalworking machinery and equip.. 113.3 116.2 '116.4 116.5 Textile Products and Apparel: General purpose machinery and equipment 104.4 104.7 104.7 104.8 Cotton products 98.3 99.9 100.2 100.3 Miscellaneous machinery 104.7 105.4 105.5 105.2 Wool products 102.6 103.8 104.0 104.4 Special industry machinery and Man-made fiber textile products.... 96.2 96.0 95.9 95.7 equipment (Jan. 1961 = 100) 106.0 107.8 107.9 107.9 Silk products 117.0 135.1 132.2 127.6 Electrical machinery and equip 96.5 97.1 97.1 97.0 Apparel 103.3 103.2 103.6 103.7 Motor vehicles 100.9 100.8 100.7 100.7 Other textile products 117.2 121.7 123.3 120.5 Transportation equip., R.R. rolling stock (Jan. 1961= 100) 100.6 100.6 101.0 101.0 Hides, Skins, Leather, and Products: Hides and skins 92.6 105.9 103.1 117.4 Furniture and Other Household Dura- Leather 104.7 104.2 107.6 105.9 bles: Footwear 108.3 109.7 109.8 109.8 Other leather products 103.9 104.9 106.9 107.3 Household furniture 105.2 106.0 105.9 105.9 Commercial furniture 103.2 103.7 103.7 103.7 Fuels and Related Products, and Power. Floor coverings 99.0 97.7 97.7 97.5 Household appliances 91.2 89.4 89.4 89.5 Coal 96.1 94.6 r94.7 95.1 Television, radios, and phonographs. 87.3 85.9 85.9 84.0 Coke 107.3 107.3 107.3 107.3 Other household durable goods 104.4 104.9 104.9 104.9 Gas fuels (Jan. 1958= 100) 120.2 122.2 122.7 122.7 Electric power (Jan. 1958= 100) 100.6 100.8 100.8 100.7 Petroleum products, refined 92.5 95.4 96.0 96.0 Nonmetallic Mineral Products: Chemicals and Allied Products: Flat glass 102.4 101.7 101.7 100.2 Concrete ingredients 102.7 103.2 103.1 103.1 Industrial chemicals 94.3 94.8 94.8 95.0 Concrete products 100.9 101.3 101.6 101.7 Prepared paint 104.1 105.7 105.7 105.7 Structural clay products 104.4 105.1 105.1 105.1 Paint materials 90.7 90.1 89.3 89.6 Gypsum products 108.6 108.1 307.5 107.5 Drugs and Pharmaceuticals 94.8 95.0 94.7 94.9 Asphalt roofing 88.9 92.1 92.1 92.1 Fats and oils, inedible 95.9 116.7 114.0 110.5 Other nonmetallic minerals 101.8 101.6 101.6 101.7 Mixed fertilizers 103.5 104.9 104.8 104.8 Fertilizer materials 101.1 104.3 104.3 103.3 Tobacco Products and Bottled Bever- Other chemicals and products 99.6 99.8 99.8 99.8 ages: Rubber and Products: Tobacco products 106.0 107.4 106.1 106.1 Alcoholic beverages 100.3 100.8 100.7 100.7 Crude rubber 90.0 91.8 90.1 89.2 Nonalcoholic beverages 127.4 128.1 128.1 128.1 Tires and tubes 88.0 89.7 90.2 90.2 Miscellaneous rubber products 96.4 96.8 r96.6 96.8 Miscellaneous Products: Lumber and Wood Products: Toys, sporting goods, small arms... 101.0 102.2 102.2 102.6 Manufactured animal feeds 110.7 112.9 116.6 118.8 Lumber 101.5 101.0 101.1 101.1 Notions and accessories 99.1 99.1 99.1 99.1 Millwork 109.1 107.9 107.8 107.8 Jewelry, watches, photo equipment.. 103.9 103.8 104.3 104.3 Plywood 92.3 91.3 90.5 90.7 Other miscellaneous products 102.5 103.4 103.5 105.2 NOTE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1336 NATIONAL PRODUCT AND INCOME SEPTEMBER 1965 GROSS NATIONAL PRODUCT (In billions of dollars) 1964' 1965 r Item 1929' 1933' 1941' 1950' I960' 1961r 1962 r 1963 r 1964' II III IV Gross national product. 103.1 55.6 124.5 284.8 503.8 520.1 560.3 589.2 628.7 624.2 634.8 641.1 656.4 665.9 Final purchases 101.4 57.2 120.1 278.0 500.2 518.1 554.3 583.5 623.9 620.1 631.0 633.6 647.6 659.2 Personal consumption expenditures. 77.2 45.8 80.6 191.0 325.2 335.2 355.1 373.8 398.9 396.0 404.6 405.9 416.9 424.4 Durable goods 9.2 3.5 9.6 30.5 45.3 44.2 49.5 53.4 58.7 59.1 60.5 57.9 63.9 63.7 Nondurable goods 37.7 22.3 42.9 98. 151.3 155.9 162.6 168.0 177.5 175.7 179.8 180.9 183.0 187.6 Services 30.3 20.1 28.1 62.4 128.7 135.1 143.0 152.3 162.6 161.2 164.3 167.1 170.0 173.1 Gross private domestic investment 16.2 1.4 17.9 54.1 74.8 71.7 83.0 86.9 92.9 90.9 92.6 97.7 102.4 101.1 Fixed investment 14.5 3.0 13.4 47.3 71.3 69.7 77.0 81.2 88.1 86.8 88.8 90.2 93.7 94.4 Nonresidential 10.6 2.4 9.5 27.9 48.4 47.0 51.7 54.3 60.5 58.9 61.6 63.5 66.0 66.4 Structures 5.0 .9 2.9 9.2 18. 18.4 19.2 19.7 21.1 21.1 21.1 21.5 21.8 22.7 Producers' durable equipment. 5.6 1.5 6.6 18.7 30.3 28.6 32.5 34.6 39.4 37.9 40.5 42.0 44.2 43.7 Residential structures 4.0 .6 3.9 19.4 22.8 22.6 25.3 26.9 27.5 27.9 27.2 26.7 27.7 28.0 Nonfarm 3.8 .5 3.7 18.6 22.2 22.0 24.8 26.3 27.0 27.3 26.6 26.2 27. 27.5 Change in business inventories 1.7 -1.6 4.5 6.8 3.6 2.0 6.0 5.7 4.8 4.1 3.8 7.5 8.7 6.7 Nonfarm , 1. -1.4 4.0 6.0 3.3 1.7 5.3 4.9 5.4 5.1 4.6 7.8 9.3 7.1 Net exports of goods and services. 1.1 .4 1.3 1.8 4.1 5.6 5.1 5.9 8.6 7.7 8.8 8.9 6.2 7.5 Exports 7.0 2.4 5.9 13.8 27.2 28.6 30.3 32.4 37.0 36.0 37.3 38.4 34.8 39.8 Imports 5.9 2.0 4.6 12.0 23.2 22.9 25.1 26.4 28.5 28.2 28.5 29.5 28.6 32.3 Government purchases of goods and services. 8.5 8.0 24.8 37.9 99.6 107.6 117.1 122.6 128.4 129.7 128.7 128.6 130.9 132.9 Federal 1.3 2.0 16.9 18.4 53.5 57.4 63.4 64.4 65.3 67.0 64.9 64.3 64.9 65.9 National defense 13.8 14.1 44.9 47.8 51.6 50.8 49.9 51.7 49.5 48.8 48.9 49.4 Other 3.1 4.3 8.6 9.6 11.8 13.6 15.4 15.3 15.4 15.5 16.0 16.5 State and local 7.2 6.0 7.9 19.5 46. 50.2 53.7 58.3 63.1 62.7 63.8 64.3 66.0 67.0 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 487.8 497.3 530.0 550.0 577.6 575.9 582.6 584.7 597.5 601.4 NOTE.—Dept. of Commerce estimates. Revised estimates; concepts of ment to the Survey of Current Business (1958); a forthcoming (1966) components may not be definitionally consistent with those published report to be issued by the Dept. of Commerce as a supplement to the prior to September 1965. (See 1965 and 1966 publications listed below.) Survey of Current Business, which will describe the conceptual frame- Quarterly data are seasonally adjusted totals at annual rates. For back work of these revised estimates; and the August 1965 Survey of Current data and explanation of series see National Income 1954 Edition, A Supple- Business, ment to the Survey of Current Business; U.S. Income and Output, A Supple- NATIONAL INCOME (In billions of dollars) 1964 r 1965r Item 1929' 1933' 1941' 1950' I960' 1961' 1962' 1963' 1964' II III IV National income 86.8 40.3 104.2 241.1 414.5 427.3 457.7 481.1 514.4 510.5 519.5 526.3 541.4 550.4 Compensation of employees 51.1 29.5 64.8 154.6 294.2 302.6 323.6 341.0 365.3 361.9 369.0 375.4 383.1 388.7 Wages and salaries 50.4 29.0 62.1 146.8 270.8 275.7 296.1 311.2 333.5 330.4 336. 342.6 349.8 355.0 Private 45.5 23.9 51.9 124.4 222.1 225.9 240.1 251.6 269.2 266.9 271.7 276.5 282.9 287.3 Military .3 .3 1.9 5.0 9.9 10.2 10.8 10.8 11.7 11.6 11.7 11.9 11.8 11.8 Government civilian 4.6 4.9 8.3 17.4 38.8 42.0 45.2 48.8 52.6 51.9 53.3 54.3 55.0 55.9 Supplements to wages and salaries .7 .5 2.7 7.8 23.4 24.6 27.5 29.8 31.8 31.5 32.2 32.7 33.4 33.8 Employer contributions for social insurance .1 A 2.0 4.0 11.4 11.8 13.7 15.0 15.4 15.2 15.5 15.7 16.1 16.3 Other labor income .6 .4 .7 3.8 12.0 12.7 13.9 14.8 16.5 16.3 16.7 17.1 17.3 17.5 Proprietors' income 151 5.9 17.5 37.5 46.2 48.4 50.1 50.8 51.1 51.0 51.4 51.8 51.9 54.6 Business and professional 9.0 3.3 11.1 24.0 34.2 35.6 37.1 37.8 39.1 39.0 39.4 39.6 39.9 40.1 Farm 6.2 2.6 6.4 13.5 12.0 12.8 13.0 13.0 12.0 12.0 12.0 12.2 12.0 14.5 Rental income of persons 54 2.0 3.5 9.4 15.8 16.0 167 17.6 18.2 18.1 18.3 18.5 18.5 18.6 Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 49.9 50.3 55.7 58.1 64.5 64.5 65.5 64.9 71.7 72.1 Profits before tax 10.0 1.0 17.7 42.6 49.7 50.3 55.4 58.6 64.8 64.5 65.3 65.9 73.1 73.8 Profits tax liability 1.4 .5 7.6 17.8 23.0 23. 24.2 26.0 27.6 27.5 27.8 28.1 29.1 29.4 Profits after tax 8.6 .4 10.1 24.9 26.7 27.2 31.2 32.6 37.2 37.0 37.5 37.8 44.0 44.4 Dividends 5.8 2.0 4.4 8.8 13.4 13.8 15.2 15.8 17.2 17. 17.4 17.7 17.8 18.2 Undistributed profits 2.8 5.7 16.0 13.2 16.0 16.8 19.9 20.1 20.0 26.2 26.2 -1.6 13.5 19.9 Inventory valuation adjustment .5 -2.5 -5.0 .2 .3 -.4 -.3 .2 -1.0 -1.4 -1.7 -2.1 -.1 .0 Net interest 4.7 3.2 2.0 8.4 11.6 13.6 15.2 15.4 15.7 16.1 16.4 4.1 10.0 15.0 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 NATIONAL PRODUCT AND INCOME 1337 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1964r 1965 r Item 1929' 1933' 1941 •' 1950' I960' 1961' 1962' 1963' 1964' II III IV Gross national product. 103.1 55.6 124.5 284.8 503.8 520.1 560.3 589.2 628.7 624.2 634.8 641.1 656.4 665.9 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 43.4 45.2 50.0 52.8 55.7 55.2 56.1 56.9 57.7 58.3 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 45.2 47.7 51.5 54.6 58.0 57.6 58.8 59.3 60.7 61.0 B St u a s t i i n st e i s c s a l t r d a i n s s c f r e e r p a p n a c y y ments , . . 6 7 . . 7 6 . . 5 4 .8 1.9 2.0 7 2. . 1 5 - 2 .7 .2 2.3 - 2 .3 .3 - 2 .7 .3 -2 2 . . 2 4 -4 2 . . 2 3 -4 2 . . 7 3 1.5 -1.0 -.5 Plus: Subsidies less current surplus of government enterprises .2 .2 1.4 1.4 .7 1.2 1.2 1.3 1.5 1.5 1.5 Equals: National income 86.8 40.3 104.2 241.1 414.5 427.3 457.7 481.1 514.4 510.5 519.5 526.3 541.4 550.4 Less: Corporate profits and inventory valuation adjustment 10.5 -1.2 15.2 37.7 49.9 50.3 55.7 58.1 64.5 64.5 65.5 64.9 71.7 72.1 Contributions for social insurance .2 .3 2.8 6.9 20.7 21.4 24.0 26.8 27.8 27.6 28.0 28.4 29.1 29.4 Excess of wage accruals over disbursements Plus: Government transfer payments .9 1.5 2.6 14.3 26.6 30.4 31.2 33.0 34.2 33.9 34.1 34.4 36.0 35.1 Net interest paid by government and consumer 2.5 1.6 2.2 7.2 15.1 15.0 16.1 17.5 19.1 19.4 19.5 19.9 20.4 Dividends 5.8 2.0 4.4 8.8 13.4 13.8 15.2 15.8 17.2 17.4 17.7 17.8 18.2 Business transfer payments .6 .7 .8 1.9 2.0 2.1 2.2 2.3 2.3 2.4 2.3 2.3 f • .5 Equals: Personal income 85.9 47.0 227.6 401.0 416.8 442.6 464.8 495.0 490.6 499.1 507.1 516.6 524.9 96.0 Less: Personal tax and nontax payments... 2.6 1.5 20.7 50.S 52.4 57.4 60.9 59.2 56.9 58.8 60.7 64.8 66.0 3.3 Equals: Disposable personal income 83.3 45.5 206.9 350.0 364.4 385.3 403.8 435.8 433.6 440.3 446.4 451.9 458.9 92.7 Less: Personal outlays 79.1 46.5 193.9 333.0 343.2 363.7 383.4 409.5 406.3 415.3 416.9 428.1 436.0 Personal consumption expenditures., 77.2 45.8 81.7 191.0 325.2 335.2 355.1 373.8 398.9 396.0 404.6 405.9 416.9 424.4 Consumer interest payments .5 80.6 7.3 Personal transfer payments to for- 1.5 2.4 7.6 8.1 9.0 10.0 9.8 10.2 10.4 10.6 11.0 eigners .2 .9 .5 .3 .4 .5 .5 .6 .6 .5 .5 .6 .6 .6 Equals: Personal saving -.9 .2 17.0 4.2 13.1 21.2 21.6 20.5 26.3 27.3 25.0 29.5 23.8 23.0 Disposable personal income in constant (1958) 11.0 dollars 150.6 112.2 190.3 249.6 340.2 350.7 367.6 380.6 406.5 404.9 410.7 414.5 418.4 422.2 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table at top of previous page. PERSONAL INCOME (In billions of dollars) 1964 r 1965 r Item 1963 1964' July Aug. Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Total personal income. 464.8 495.0 496.1 499.5 501.7 502.8 506.6 512.0 1515.8 515.7 518.4 520.7 525.3 528.8 530.6 Wage and salary disbursements 311.2 333.5 334.3 337. 338.7 339.4 342.6 346.2 347.2 349.8 352.2 352.7 355.2 356.9 359.2 Commodity-producing industries.. 125.7 133.9 134.2 135.2 136.2 135.2 137.4 139.8 140.3 141.4 142.6 142.3 143.3 144.2 145.3 Manufacturing only 100.6 107.2 107.3 108.3 109.6 107.9 110.1 111.9 112.6 113.6 114.6 114.4 115.0 115.7 117.0 Distributive industries 76.0 81.1 81.7 82.0 81.9 82.6 83.3 83.8 84.0 84.9 85.8 85.8 86.5 86.7 87.1 Service industries 49.9 54.1 54.3 54.6 55.1 55.6 55.8 56.2 56.4 56.7 56.9 57.2 57.7 57.9 58.4 Government 59.6 64.3 64.1 65.2 65.6 66.1 66.1 66.4 66.6 66.8 67.0 67.4 67.7 68.0 68.3 Other labor income. 14.! 16.5 16.6 16.7 16.8 17.0 17.1 17.1 17.2 17.3 17.4 17.4 17.5 17.6 17.7 Proprietors' income 50.8 51.1 51.2 51.3 51.5 51.4 51.8 52.3 52.2 51.9 51.8 52.9 54.8 56.0 55.1 Business and professional. 37.8 39.1 39.4 39.3 39.4 39.4 39.6 39.9 39.8 39.9 40. 40.0 40.1 40.1 40.2 Farm 13.0 12.0 11.8 12.0 12.1 12.0 12.2 12.4 12.4 12.0 12.9 14.7 15.9 14.9 11.7 Rental income 17.6 18.2 18.3 18.3 18.4 18.4 18.5 18.5 18.5 18.5 18.6 18.6 18.6 18.6 18.5 Dividends 15.8 17.2 17.4 17.3 17.4 17.5 17.7 18.1 17.8 17.8 18.0 18.1 18.6 18.5 17.8 Personal interest income. 31.1 34.3 34.5 34.8 35.0 35.1 35.2 35.5 35.7 36.0 36.5 36.7 37.0 37.2 36.2 Transfer payments 35.2 36.6 36.4 36.4 36.4 36.6 36.5 37.0 140.1 37.4 37.8 37.4 37.2 37.5 37.6 Less: Personal contributions for social insurance 11.8 12.4 12.5 12.5 12.6 12.6 12.7 12.8 13.0 13.0 13. 13.1 13.1 13.2 13.2 Nonagricultural income. 447.4 478.7 479.9 483.1 485.5 486.5 490.4 495.31499.1 499.5 502.7 503.4 506.1 508.5 5113 Agricultural income 17.4 16.3 16.2 16.4 16.2 16.3 16.2 16.7 16.7 16.2 15.7 17.3 19.2 20.3 19.3 i 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 $2.4 billion. adjusted totals at annual rates. See also NOTE to table at top of previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1338 FLOW OF FUNDS SEPTEMBER 1965 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1963 1964 1965 Transa o c r t io se n c t c o a r tegory, 1960 1961 1962 1963 1964 III IV III IV I. Saving and investment 1 Gross national saving 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 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 3 Farm and noncorp. business 11. 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 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 5 U.S. Government 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 6 State and local govt -3.3 -3. -2.2 -2.4 -2.6 -2.2 -2.3 -2.1 -2.5 -2.6 -2. -2.5 -3.2 -3.3 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 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 9 Consumer durable goods 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 10 Business inventories 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 13 Nonfinan. business 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 .5 .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 2.0 1.4 .9 2.0 3.4 3.6 .6 -2.7 .4 1.6 2.4 5.7 16 Discrepancy (1-8) II. Financial flows—Summary 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 17 Net funds raised—Nonfinan. sectors. 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 18 Loans and short-term securities.... 20.0 30.7 42.9 43.8 44.0 44.1 49.2 40.2 42.1 49.9 51. 33.0 40.7 n.a. 19 19 Long-term securities and mtgs 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 20 4 4 2 2 2 2 2 4 3 3 2 2 2 3 3 3 3 3 2 2 3 3 3 2 0 4 5 6 8 9 1 6 9 2 3 7 3 4 5 7 8 0 1 0 1 2 P N F U v o e . P S F L L S L U O C S S t r S t . e o o v e e o h o o . h t . s i d c B S C 1 u C O h c S r O t o a a a g g o G . e u u o t - r e . n n a n r o o n u . t t a c i i r o r t r m h h s s n g t G r n r n i - i t e i o v p c e t e n e p t b k t n s s s s e i i e o e r r e a o u e o e e u s 4 r s n v U a r r l s f c r s m r t m r l m - o n t u i a n . r t o . u f i o c . e . a e o m a n a o c t d a S r f & . e r n n w i d l m r m i c n n . t e e p l s t d c s i c s o s o g e i n n G e p k a r e l r n n r c a t d s e y m t e t e c o s . i a f . g d i n e d u o i v n o l m e i . n s s i r n c t g t t r s e o i . i . o t o t c ( b g i c r s c n u = e l t a e e a i g s r 1 g g r c s i r a t t a t e h 7 e s i g o s t e ) s i e r b s o e s s a n r l v s a e n s c . e .. . . . - 2 3 1 3 1 5 2 4 3 5 5 5 2 8 5 4 2 3 0 2 3 5 0 1 . . . . . . . . . . . . . . . . . . . . . 6 3 6 0 2 3 0 2 0 5 6 0 5 9 1 0 0 4 9 6 5 6 - 4 3 1 3 1 2 2 2 4 8 6 2 5 3 1 2 6 1 8 7 1 1 7 . . . . . . . . . . . . . 4 . . . . . . . . 8 0 7 9 9 7 3 0 8 7 2 8 6 4 3 3 4 7 2 8 4 5 1 1 3 1 9 2 2 5 2 5 5 8 8 3 5 3 6 2 1 5 1 3 1 1 . . . . . . . . . . . . . . . . . . . . . . 0 9 3 6 5 5 6 0 1 3 3 3 0 9 8 9 2 1 0 5 5 2 6 5 1 1 3 1 1 - - 2 2 4 2 3 2 6 5 6 4 3 2 0 5 3 3 8 5 1 1 . . 4 4 . . . . . . . . . . . . . . . . . . . . 7 5 0 4 7 9 7 3 3 2 2 6 6 9 8 2 4 4 2 0 7 4 5 1 1 1 1 2 2 5 0 4 4 6 5 5 1 4 3 9 0 6 3 3 8 7 . . . . . . . . . . . . . . . . . . . . . . 5 9 0 9 8 4 2 6 7 3 4 4 9 0 8 1 4 2 5 8 1 5 1 1 3 1 1 - 2 2 7 2 1 9 2 6 3 5 3 6 5 3 5 3 0 9 7 6 1 .7 . . . . . . . . . . . . . . . . . . . . . 2 1 6 9 5 8 0 9 5 9 5 8 5 3 8 4 0 1 9 0 0 - - - 1 5 4 1 1 5 1 1 7 - 1 0 5 3 4 3 5 2 6 2 6 4 7 1 7 7 1 1 5 . . . . 4 . 7 . . . . . . . . . . . . . . . . 0 4 . 7 6 2 2 7 4 6 4 3 3 3 3 4 0 5 1 5 0 - 6 5 1 1 1 3 1 1 1 - - 4 3 6 8 6 5 3 2 0 5 3 1 1 8 9 1 1 . . . 2 2 . 5 . . . . . . . . . . . . . . . . . 5 5 7 0 8 6 5 5 4 0 9 9 2 1 7 6 4 3 * - 6 5 1 3 1 1 1 2 9 2 4 4 4 6 9 6 6 8 8 2 4 3 2 3 8 5 3 . . . . . . . . . . . . 0 . . . . . . . . . 9 8 8 2 5 0 5 6 1 1 1 2 4 3 0 5 5 6 3 8 - 2 4 7 6 1 1 1 1 4 2 2 4 5 5 3 8 6 8 5 3 0 6 4 7 7 7 1 . . . . . . 1 . . . . . . . . . . . . . . . . 9 7 1 9 9 7 5 6 0 4 2 5 5 5 3 7 3 0 2 8 9 - - 6 4 5 1 1 1 4 2 9 5 5 3 5 4 7 3 2 6 3 6 4 7 3 7 3 . . . . 1 . . . . . . . 0 . . . . . . . . . . 4 7 2 1 7 5 6 4 0 5 0 9 7 8 0 5 0 5 6 * - - 2 7 6 1 3 1 1 1 2 6 4 2 3 7 5 1 5 6 4 2 3 3 1 8 7 3 5 3 1 . . . 4 . . . . . 7 . . . . . . . . . . . . . 0 6 7 2 5 2 0 6 8 4 3 3 4 8 5 1 3 9 9 - 2 4 8 6 1 1 1 1 1 1 1 - 4 2 9 4 4 3 8 5 0 2 5 6 9 3 1 4 1 1 0 2 . . 2 . . . . . . . . 3 . . . . . . . . . . . . 6 5 4 5 1 0 1 8 8 2 5 6 0 6 1 7 1 0 0 7 7 7 4 1 3 1 1 1 - n n 4 4 2 3 5 5 8 6 0 5 3 6 1 7 7 1 . . . 1 . . . . . . . . . . . . . . . . . . a a 3 6 9 7 7 3 0 8 0 6 2 1 4 4 5 7 8 2 T . . 4 4 2 2 2 2 2 2 4 2 2 2 3 3 3 3 3 3 3 3 3 3 2 1 2 4 5 6 7 8 0 1 3 9 8 9 3 4 5 6 7 0 1 2 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. 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 4 5 9 0 Shor A t- t t e s r a m v in U g . s S . i n G st o it vt. sec.... -4 9 .6 .6 11. . 1 5 12 1. . 4 9 1 3 4 . . 2 9 - 1 1 5 . .5 1 5 4 . . 6 7 13. . 0 9 1 2 5. . 3 1 1 3 5 . . 0 1 15.4 4 - 1 5 6 .2 .1 - 1 4 5 .8 .6 1 7 3 . . 5 6 1 n 1 . . a 6 . 4 5 9 0 51 Other U.S. Govt. securities -.5 -1.3 .6 1.9 3.4 2. 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 -.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 2.9 -7.7 -1.5 8.0 -1.1 -4. -2.4 11.0 1.2 55 56 Total net of U.S. Govt. cash 34.2 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 46.9 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 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 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 .3 -.3 60 61 Commercial banks, net 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, 25.7 9.7 22.9 19.6 22.6 15.5 26.8 29.7 31.6 62 63 Less chg. in U.S. Govt. cash.. .9 1.3 -.7 3.3 -8.5 -1.0 8.4 -1.8 -4.5 -2.5 10.6 1.6 63 64 Security issues .1 .2 .1 .3 .1 .9 .9 .5 .6 .4 .5 2.6 64 65 Nonbank finance, net 19.2 21.0 23.1 26.8 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 36.3 38.7 30.7 31.1 38.5 32.7 28.9 32.6 36.9 66 67 Less credit raised 6.9 4.2 10.6 10.9 5.3 2.7 11.1 5.3 13.1 67 2.4 2.4 4.7 1.3 1.7 68 U.S. Government 2.7 3.6 2.6 3.6 4.5 2.8 5.1 4.5 5.5 68 2.3 2.8 3.5 3.0 3.4 69 Foreign .4 5.1 -2.2 n -.4 2.1 -2.5 2.4 69 1.2 .7 1.3 -2.0 1.7 70 Pvt. domestic nonfin 2.7 5.5 9.2 10.3 14.6 11.4 13.1 10.6 13.6 20.0 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 17.2 10.6 11.8 6.9 71 72 Business -1.9 .2 2.3 2.1 1.3 4.4 1.1 2.1 2.9 1.5 10.9 -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 1.9 -2.5 8.4 5.3 73 74 Less net security credit -.3 1.3 -.2 2.0 -.2 2.9 1.8 -.1 .6 3.4 A .2 .9 74 -.9 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

SEPTEMBER 1965 FLOW OF FUNDS 1339 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1963 1964 1965 Transaction category, 1960 1961 1962 1963 1964 or sector II III IV I II III IV I \\P 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 1 2 US Govt deposits .9 1.3 -.4 2.9 -7.7 -1.5 8.0 -1.1 -4.1 -2.4 11.0 1.2 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 3 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 4 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 5 6 Nonfinancial business -1.0 1.7 .8 -2.5 .5 -2.6 -1.7 -1.3 -5.0 7.9 n -3.6 5.8 6 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 2.4 .2 1.0 7 8 Financial sectors .5 1.1 1.1 .3 .1 .8 .7 -.2 .7 -.5 .3 .4 -.2 8 9 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 9 10 Rest of the world -.1 .2 .1 .3 .7 .6 .3 -.3 1.6 -.6 1.5 .2 1.0 -1.3 10 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 11 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 12 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 13 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 14 15 Foreign depositors .3 .3 .6 1.0 1.4 .9 .8 .8 1.5 1.5 1.0 1.4 .6 1.2 15 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 16 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 17 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 18 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 .5 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 4.8 1.1 .9 -1.2 2.5 -3.0 5.0 1.6 5.1 -8.3 -2.5 n.a. 21 -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 22 23 M^onetarv authorities . .. .7 1.5 1.9 2.8 3.4 2.4 1.8 1.6 5.4 2.1 1.3 5.0 6.2 3.9 23 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. 24 1.7 5.4 .8 -2.5 o *-13.3 — 1.0 2.5 — 5.3 — 1.8 1.4 — .1 -7.7 25 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. 26 27 Other direct c 2 -4.1 5.2 .5 -4.3 2.0 -3.9 -6.3 1.5 -8.7 2 -9.8 5.2 n.a. 27 28 Nonguaranteed 1 .3 .8 .5 -.2 1.3 .7 1.1 — 1.7 1.1 — .6 .3 -.1 28 29 Nonbank finance -.3 .8 1.3 -.7 1.6 i 2 3.2 -2.2 2.2 2.2 3.0 -1.0 .1 2.0 29 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. 30 31 Other direct -1.7 .5 .5 .5 * .6 -.6 1.6 — .4 2.4 — 1.7 3.7 n a. 31 32 Nonguaranteed .2 .1 .2 .3 .1 .6 .2 1 3 .3 .4 1 1 32 .5 .4 1.2 .6 .5 3.4 -2.4 .2 -1.6 .8 2 3.1 -3.0 1.2 33 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 34 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 35 -4.3 -.3 1.0 2.0 -2.7 4.6 -.2 .9 2.1 — 1.3 — 6.0 — 5.9 6 7 na 36 37 Other direct -.4 -1.6 * 1.0 3.0 4.2 -.7 1.9 5.3 6.6 -1.9 na 37 38 Nonguaranteed . -.1 .3 .6 .9 .4 2.1 1.5 2.1 — 6 1 6 8 — .2 7 4 8 38 39 Savings bonds—Households... .8 .4 1.2 .9 1.1 1.1 1.2 .8 .9 .8 1.0 .8 1.2 39 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 trovts 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 .1 .2 .1 .3 .6 .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 .8 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 .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 4.9 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 2 7 5 51 -.9 -1.3 n -1.7 1.1 -2.0 -.7 -1.3 c -2.2 -2.8 -.1 1.0 52 5 5 4 3 I S n e v c e u s r t i m ty e b n r t o c k o e s r s a N nd e t dealers... -'.5 A - - . . 7 6 -.8 * -'.2 -1.2 e 1. . 0 1 -1.1 p -1. . 0 2 - - 1 . . 3 0 -1.1 .6 -2.0 2 - - 2 . . 6 2 -1 1 .3 .2 - 1 .1 .1 5 5 4 3 55 Portfolio purchases 1.0 1.4 1.1 .9 '.9 .9 .1 .6 \.6 2.1 2.1 2.7 55 56 Net issues of own shares .... 1.5 2.0 1.9 K3 1.6 .8 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 .5 .1 .2 -.2 .1 -.4 -.1 .1 57 V. Mortgages r- 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 59 1- to 4-family 10.4 11.8 13.4 15.7 15.7 16.4 16.9 15.6 15.0 16.0 16.6 15.1 13.6 15.1 59 6 6 1 0 I D n i s p b r u o r c s e e s d s 1 - 0 .1 .5 11 . . 4 4 13 . . 4 0 15 . . 5 2 1 - 6 .3 .0 15. . 8 6 16. . 3 5 15 . . 5 1 1 - 5 .3 .3 1 - 6 .4 .5 16.A9 2 1 - 3 .1 .6 15 . . 1 0 6 6 0 1 62 Other 5.6 7.7 11.9 13.6 13.8 13.4 14.3 15.4 12.5 14.3 U.I 15^3 14.1 13.1 62 13.9 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 US Government 1.2 .6 .3 -1.0 .2 -1.9 — .4 — .3 .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 4.5 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 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 cempanies * .6 .5 .8 .4 1.1 1.1 1.0 -.2 1.2 .2 .3 .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 -.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 .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

1340 STOCK MARKET CREDIT SEPTEMBER 1965 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE N.Y. STOCK EXCHANGE CARRYING MARGIN ACCOUNTS JUNE 1958-65 (In millions of dollars) Item 1958 1959 1960 1961 1962 1963 1964 1965 DEBIT BALANCES Cash on hand and in banks 324 363 366 422 437 422 466 515 Securities— Borrowed 134 129 96 152 151 181 201 255 Sold delivery pending (failed to deliver) 170 291 334 530 368 275 369 448 Net debit balances due from— Member firms of national securities exchanges: N Y Stock Exchange 132 159 134 216 169 219 199 201 Other exchanges 15 18 22 36 22 25 25 20 All other customers exclusive of firms' own partners secured by— U.S. Govt. securities 253 165 104 48 32 31 33 24 Other collateral 2,926 3,370 3,081 4,024 3,604 4,916 5,351 5,149 Net debit balances in partners' individual investment & trading accounts 35 36 37 58 74 70 78 84 Debit balances in— Firm investment accounts 335 286 309 293 243 247 264 325 Firm trading & underwriting accounts 486 336 374 582 520 694 959 1,445 Commodity margins on deposit with banks & commodity guaranty funds on deposit 23 39 23 22 30 31 28 41 All other debit balances 151 190 218 309 303 347 389 410 Total ... 4,985 5,382 5,097 6.694 5,954 7 460 8,364 8,917 CREDIT BALANCES Money borrowed • • • • 2,387 2,508 2,331 2,880 2,305 4,027 4,499 4,541 From banks and trust companies: U.S. agencies of foreign banks 622 605 806 817 525 815 859 711 U S banks . 1 743 1 871 1 473 2 016 1,739 3 156 3,626 3,803 In New York City 1,402 1,428 1,157 1,515 1,007 1,852 2,273 2,622 341 444 316 501 732 1,303 1,353 1,180 From other lenders (not including members of national securities exchanges) . • • ... 21 31 52 47 41 56 14 28 Securities— Loaned • . 187 204 167 233 211 244 268 340 181 294 352 568 363 289 393 433 Net credit balances due to member firms of national securities exchanges: N Y Stock Exchange . 120 132 120 174 153 202 192 187 Other exchanges 9 13 11 23 17 12 14 12 Credit balances of other customers exclusive of firms' own partners: Free credit balances 1 034 1,070 1,006 1.264 1,330 1,115 1,126 1,298 Other net credit balances .. 367 277 246 335 441 369 405 477 Credit balances & money borrowed which are subordinated to general creditors under approved agreements ... 20 22 25 31 51 90 111 141 Net credit balances in partners' individual investment & trading accounts 34 38 37 47 43 36 37 48 Credit balances in firm investment & trading accounts . ... 82 71 61 100 76 116 173 214 All other credit balances (except those included in next item) 83 149 129 241 193 200 866 919 Net balance in capital, profit & loss, & partners' drawing accounts 483 604 612 797 771 759 279 306 Total 4,985 5,382 5,097 6,G94 5,954 7,460 8,364 8,917 Money borrowed, according to collateral: Customer collateral: Exempt securities (under Sec. 3(a) of Securities Exchange Act—1934:) U S Govt or agency 245 156 96 38 23 27 10 12 Other securities 150 161 123 108 93 188 156 104 Nonexempt securities or mixed collateral . ... 1,451 1,824 1,722 2.289 1,833 3,181 3,616 3,301 Firm or partners' collateral: Exempt securities (under Sec. 3(a) of Securities Exchange Act— 1934): U S Govt or agency 204 105 107 41 24 19 166 320 Other securities 98 64 99 104 106 119 125 116 Nonexempt secuiities or mixed collateral 239 198 182 300 227 492 425 686 Unsecured 1 1 1 1 * 2 Value of securities sold under repurchase agreements 24 24 24 27 42 44 134 137 Number of firms • • 316 320 328 336 337 335 331 331 * NOTE.—End of month figures. For explanation of these figures see identical to these items (including debit balances secured by and money "Statistics on Margin Accounts," Sept. 1936 BULL. The items "net borrowed on U.S. Governmental obligations), as shown in the table on debit balances due from all other customers exclusive of firms' own Stock Market Credit, p. 1305, but the data differ somewhat because of partners," "money borrowed," and "credit balances of other customers minor differences in coverage, statistical discrepancies in reporting, and exclusive of firms' own partners—free credit balances" are conceptually —for the item "money borrowed"—the date of reporting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments 1342 Gold production 1343 Net gold purchases and gold stock of the United States 1344 Estimated foreign gold reserves and dollar holdings 1345 International capital transactions of the United States 1346 Money rates in foreign countries 1355 Arbitrage in Treasury bills 1356 Foreign exchange rates 1357 U.S. balance of payments 1358 Foreign trade 1359 Guide to tabular presentation 1278 Index to statistical tables 1365 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- 1341 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1342 GOLD RESERVES SEPTEMBER 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 m re a st 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 i - a A tr u i s a - g B iu el m - Brazil Burma Canada Chile world! Fund world i 1958 39 445 1 332 20 582 17 530 n a 60 162 194 1 970 325 1 078 40 1959 40,195 2,407 19,507 18,280 n.a. 56 154 292 1,134 327 960 43 1960 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 I 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—July 2,359 15,629 36 74 219 592 1,393 120 42 949 43 Aus •.. 2,424 15,657 36 73 221 592 1,395 120 42 969 43 Sept 43,070 2,425 15,643 25,000 36 73 223 592 1,395 120 42 990 43 Oct 2,425 15,606 36 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 25,410 36 71 226 600 1,451 92 84 1,026 43 1965 Jan . . 2 181 15 208 36 71 228 600 I 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 P242,995 31,832 14,049 ^26,855 36 68 230 663 1,563 62 84 1,089 42 July 31,847 13,969 36 68 231 675 1,564 84 1,096 44 Ger- E pe n r d i o o d f lo C m o b - ia m De a n rk - l F a i n n d - France m F a e n d y . , Greece India I n n e d si o a - Iran Iraq Israel Italy Japan Rep. of 1958 72 48 35 750 2 639 17 247 37 141 34 2 1,086 124 1959.. . ... 71 57 38 1,290 2,637 26 247 33 140 84 2 1,749 244 I960 78 107 41 1,641 2,971 76 247 58 130 98 * 2,203 247 1 1 9 9 6 6 1 2 8 5 8 7 1 9 0 2 7 4 6 7 1 2 2 , , 1 5 2 8 1 7 3 3 ,6 6 7 6 9 4 7 8 7 7 2 2 4 4 7 7 4 4 3 4 1 1 3 2 0 9 9 8 8 4 4110 2 2 , , 2 2 2 4 5 3 2 28 8 9 7 1963 62 92 61 3,175 3,843 77 247 35 142 98 60 2,343 289 1964 July. 66 92 65 3,489 4,117 77 247 141 112 56 2,153 Aug 67 92 65 3,527 4,139 77 247 141 112 56 2,100 Sept 57 92 65 3,564 4 149 93 247 141 112 56 2,104 290 Oct 58 92 64 3,598 4,149 98 247 141 112 56 2,104 Nov 58 92 64 3 632 4 149 98 247 141 112 56 2,104 Dec 58 92 85 3,729 4 248 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 45 92 85 4 255 4 243 80 281 141 122 56 2,351 May 36 97 85 4 400 4 378 80 281 141 122 56 2,384 June 31 97 85 4,433 4 378 84 281 141 122 56 2,384 327 July 97 85 4,471 4,383 81 281 141 122 56 2,388 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—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 45 167 34 1 621 20 31 53 67 32 523 78 592 Dec . . 48 183 169 34 1,688 20 31 53 67 23 523 78 574 1965—Jan 48 174 34 1,688 20 31 53 67 24 523 78 545 Feb 48 171 34 1,723 20 31 53 61 26 532 78 519 Mar 49 182 170 34 1 723 20 31 53 67 27 538 78 498 Apr 48 168 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 July 49 173 32 1,756 20 31 53 67 32 548 78 359 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 GOLD RESERVES AND PRODUCTION 1343 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 i n t 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 R U S ments 4 1958 57 204 1,925 43 112 144 174 2,808 180 719 17 -42 126 1959 68 191 1,934 41 104 133 174 2 514 180 652 10 -134 40 I960 178 170 2,185 41 104 134 174 2,800 180 401 4 — 19 55 1961 316 180 2,560 43 104 139 174 2,268 180 401 6 115 56 1962 446 181 2,667 43 104 140 174 2,582 180 401 4 —50 56 1963 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 47 1964 July 577 182 2 560 55 104 115 174 171 401 16 64 Aug 576 182 2,530 55 104 105 174 171 401 16 95 Sept 576 182 2,532 55 104 105 174 2,302 171 401 16 66 28 Oct 575 182 2 532 55 104 105 174 171 401 17 71 Nov 576 182 2,532 55 104 105 174 171 401 17 79 Dec 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 43 1965 Jan 646 189 2 702 55 104 111 139 171 401 17 — 111 Feb 677 189 2,702 55 104 115 139 171 401 16 -159 Mar 706 189 2,702 55 104 115 139 2 111 171 401 17 -104 53 Apr 735 189 2 713 55 104 116 139 171 401 18 —98 May . 780 202 2,688 55 104 126 139 171 401 '18 -164 June 780 202 2,789 54 96 126 139 2,226 171 401 rl9 -249 54 July 810 202 2,655 96 116 401 18 -92 i Includes reported or estimated gold holdings of international and 2 Includes U.S. gold subscription payment of $259 million to the IMF. regional organizations, central banks and govts. of countries listed in 3 Excludes gold subscription payment of $259 million by the U.S. in this table and also of a number not shown separately here, and gold to be anticipation of increase in Fund quota. distributed by the Tripartite Commission for the Restitution of Monetary 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold Gold; excludes holdings of the U.S.S.R., other Eastern European coun- assets minus gold deposit liabilities. tries, and China Mainland. 5 European Payments Union for 1958 and European Fund thereafter. The figures included for the Bank for International Settlements are the Bank's gold assets net of gold deposit liabilities. This procedure NOTE.—For back figures and description of the data in this and the avoids the overstatement of total world gold reserves since most of the following tables on gold (except production), see "Gold," Section 14 of gold deposited with the BIS is included in the gold reserves of individual Supplement to Banking and Monetary Statistics, 1962. countries. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period produc- Congo tion i A So fr u ic th a R de h s o ia - Ghana ( p L o e 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 ag ic u a a - Co b l i o a m- India P pi h n i e li s p- t A ra u l s ia - oth A e l r l i 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 1960 . 1,175.0 748.4 19.6 30.8 11.1 58.8 162.0 10.5 7.0 15.2 5.6 14.4 38.0 53.6 1961 1,215.0 803.1 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37.7 53.8 1962 1,290.0 892.2 19.4 31.1 7.1 54.5 146.2 8.3 7.8 13.9 5.7 14.8 37.4 51.6 1963 1,350.0 960.1 19.8 32.2 7.5 51.4 139.0 8.3 7.2 11.4 4.8 13 2 35.8 59 3 1964 1,395.0 1,019.8 20.1 30.3 4.4 51.4 133.4 7.4 7.4 12.8 5.2 14.9 33.7 54.2 1964—June 85.4 1.6 2.4 22.5 10.8 .3 1.1 .4 1.2 3.0 July 86.9 1 -7 2.4 11.3 .4 1 0 4 1 2 3 0 Aug 87 2 7 2.5 11.3 7 1 0 4 r\ 2 3 1 Sept 88.2 .6 10.9 .5 .9 .4 1.2 2.5 Oct 89.9 6 11.5 8 1 0 5 1 3 2 8 Nov 88.0 8 11.5 .6 1.1 .4 1 3 3.0 Dec . 84.2 q 10.8 .5 .8 4 1 3 2 8 1965 Jan 87 4 6 10 8 7 9 4 2 8 Feb 85.3 6 9.8 1 1 4 2 5 Mar 86.8 5 10.8 8 2 6 Apr 88.0 7 11.3 2 5 May 1.6 10.4 June 10.8 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

1344 U.S. GOLD SEPTEMBER 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 II III IV I II Western Europe: Austria -84 -83 — 1 -143 — 82 -55 —23 25 — 38 Belgium 3 3 -329 -39 -141 -144 -63 -40 -40 -40 -22 France -34 -266 -173 -456 -518 -405 — 101 — 101 — 101 —482 -148 34 23 225 25 Italy -349 100 200 -80 Netherlands 25 -261 — 30 -249 -25 — 60 — 60 — 35 -20 -10 31 32 -114 -156 -146 -130 -32 _2 — 30 —90 -60 Switzerland -8 -215 20 -324 -125 102 -81 -30 — 51 — 37 -13 United Kingdom 100 -900 -350 -550 -306 -387 329 618 221 163 125 -76 29 Bank for Intl Settlements — 178 — 32 — 36 —23 Other 18 8 -21 -38 -96 -53 -12 1 -7 14 i -14 -17 -4 Total... 80 68 -2,326 -827 -1,718 -754 -1,105 -399 -88 79 35 -171 -802 -334 Canada 15 5 190 Latin American republics: Argentina 115 75 67 -50 -90 85 — 30 Brazil -1 -11 -2 _2 57 72 54 28 -1 28 -1 28 28 — 6 38 10 10 * 30 Mexico -30 -20 -4 Venezuela . • • -200 65 Other 29 6 2 -5 -22 -17 -5 -7 -9 3 -2 9 -7 * Total... -28 81 69 19 -100 -109 175 32 56 25 7 27 -8 58 Asia: Japan -30 -157 -15 Other * 18 -4 -28 -97 1-101 2-93 312 3 -1 -1 * -15 Total... * 18 -34 -186 -113 -101 -93 12 3 -1 * -15 All other 14 -3 c -38 -6 -1 -36 -7 —9 1 i -9 Total foreign countries 80 172 -2,294 -998 -1,969 -970 -833 -392 -36 95 41 -145 -811 -299 Intl Monetary Fund 4200 600 5-44 4300 150 6-259 Grand total 280 772 -2,294 -1,041 -1,669 -820 -833 -392 -36 95 41 -145 -811 -558 1 includes sales of $21 million to Lebanon and $48 million to Saudi upon termination of the investment the IMF can reacquire the same Arabia. amount of gold from the United States. 2 Includes sales of $21 million to Burma, $32 million to Lebanon, and 5 Payment to the IMF of $344 million as increase in U.S. gold sub- $13 million to Saudi Arabia. scription less sale by the IMF of $300 million (see also note 4). 3 Includes purchases of $25 million from the Philippines. 6 Payment to the IMF as increase in U.S. gold subscription. 4 Proceeds from this sale invested by the IMF in U.S. Govt. securities; U.S. GOLD STOCK AND HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES BY U.S. MONETARY AUTHORITIES (In millions of dollars) End of period Changes in— End of period Changes in— Year Total To G ta o l 2 ld s T to r c e k a s i ury c h F u o o r l r r d e e i i n n g c g n y s Total T g o o t l a d l Month Total To G ta o l2 ld s T to r c e k a s i ury h c F o u o l r d r r e e i i n n g c g n y s3 Total T g o o t l a d l 1952 23,252 23,252 23,187 379 379 1964—Aug.... 15,890 15,657 15,460 233 50 28 1953 22,091 22,091 22,030 -1.161 -1,161 Sept.... 15,870 15,643 15,463 227 -20 -14 1954 21,793 21,793 21,713 -298 -298 Oct 15,702 15,606 15,461 96 -168 -37 1955 21,753 21,753 21,690 -40 -40 Nov.... 16,324 15,566 15,386 758 622 -40 1956 22,058 22,058 21,949 305 305 Dec... 15,903 15,471 15,388 432 -421 -95 1957 22,857 22,857 22,781 799 799 1965—Jan 15,572 15,208 15,185 364 -331 -263 1958 20,582 20,582 20,534 -2,275 -2,275 Feb.... 15,220 14,993 14,937 227 -352 -215 1959 19,507 19,507 19,456 -1,075 4-1,075 Mar.... 15,129 14,639 14,563 490 -91 -354 1960 17,804 17.804 17,767 -1,703 -1,703 Apr 14,884 14,480 14,410 404 -245 -159 1961 17,063 16,947 16,889 ii6* -741 -857 May... 14.511 14,362 14,290 149 -373 -118 1962 16,156 16.057 15,978 99 -907 -890 June... 14,595 14,049 13.934 546 84 5-313 1963 15,808 15,596 15.513 212 -348 -461 July.... 14.697 13.069 13.857 728 102 -80 1964 15,903 15,471 15,388 432 95 -125 Aug.p.. 14,952 13.915 13,857 1,037 255 -54 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 Aug. 31, 1965. 2 Includes gold in Exchange Stabilization Fund. NOTE.—See Table 11 on p. 1353 for gold held under earmark at F.R. 3 For holdings of F.R. Banks only, see pp. 1288 and 1290. 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

SEPTEMBER 1965 GOLD RESERVES AND DOLLAR HOLDINGS 1345 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 3I, 1963 June 30, 1964 Sept. 30, 1964 Dec. 3I, 1964 Mar. 31, 1965 June 30,1965? 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 & notesdollars & notes dollars & notes dollars & notes dollars & note* dollars & notes Western Europe: 901 3 902 3 947 3 923 3 872 3 885 3 1,791 * 1,832 41 1,821 * 1,887 * 1,897 * 1,983 * 253 14 289 14 352 14 428 14 430 14 368 14 160 1 167 174 1 212 1 201 189 4,653 6 5,003 7 5,093 7 5,392 7 5,530 7 5 644 7 Germany Fed Rep of 6,884 1 6,616 6,437 1 6,258 r6,137 1 5^918 1 265 227 * 225 * 252 232 * 235 * Italy 3,146 1 3,039 1 3,225 1 3,729 * 3,539 1 3 824 j 1,961 4 1,824 5 1,964 4 2,055 5 2,036 5 2'034 5 164 131 188 131 205 101 215 98 234 68 263 68 Portugal 688 4> 698 * 747 * 780 * 802 * 795 778 2 839 2 972 2 1,010 2 984 2 1,011 2 591 129 615 130 733 90 833 40 928 40 921 24 Switzerland 3,726 75 3,737 77 3,653 78 4,095 79 3,927 78 4,088 87 Turkey 136 * 129 » 123 140 4> 142 4> 145 United Kingdom 3,967 328 4,153 402 4,222 402 4,020 414 4.308 407 4,715 502 369 46 514 48 491 49 508 49 '391 49 347 50 Total.. 30,433 741 30,772 822 31,384 753 32,737 714 '32,590 676 33,365 765 Canada 3,805 687 3,674 686 3,863 695 4,010 690 3,565 3 492 727 Latin American republics: 453 424 * 386 41 362 * 371 * 378 * Brazil 329 41 294 330 * 350 * 421 41 400 4c Chile 186 * 227 • 224 219 207 4> 240 * 231 1 238 226 1 267 1 229 1 190 1 Cuba 12 11 10 4> 12 * 11 * 11 * 808 2 817 808 | 904 913 1 853 * Panama Republic of 129 10 105 89 1 99 111 124 1 215 * 271 * 271 * 273 1 334 1 329 284 276 280 282 * 294 295 * 992 * 1,057 1,076 4> 1,135 * 1,103 1,097 Other 424 1 487 2 465 2 478 2 538 1 538 2 Total 4,063 14 4,207 4 4,165 5 4,381 6 4,532 5 4,455 5 Asia: 298 * 311 41 307 306 * 342 * 353 * Indonesia 83 1 77 I 63 73 1 62 1 58 1 2,773 5 2,757 5 2,882 5 3,044 5 3,137 9 3,130 9 Philippines 237 230 * 260 256 • 281 Thailand 486 • 529 * 546 562 * 592 • 592 * Other 1,687 41 1,943 42 1,994 45 2,059 43 2,222 43 2,199 43 Total 5,564 47 5,847 48 6,052 51 6,300 49 r6,634 53 6,613 53 Africa: South Africa 671 * 645 * 635 621 * 547 424 * U A R. fEeyDt) 188 196 196 163 163 161 Other 296 9 287 10 288 14 283 16 317 16 373 16 Total 1,155 9 1,128 10 1,119 14 1,067 16 1,027 16 958 16 Other countries: Australia 388 * 384 392 402 * 411 4> 433 * All other 313 26 350 26 358 28 374 26 421 31 415 28 Total 701 26 734 26 750 28 776 26 832 31 848 28 45,721 1,524 46,362 1,596 47,333 1,546 49,271 1,501 ''49,180 1,516 49,731 1,594 International and regional 6,958 1,218 7,294 1,068 7,499 923 7,162 904 7,279 798 6,688 799 Grand total 2 52,679 2,742 53,656 2,664 54,832 2,469 56,433 2,405 '56,459 2,314 56,419 2,393 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. 1352. pean regional organizations, except the Bank for International Settlements See also NOTF 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

1346 INTL. CAPITAL TRANSACTIONS OF THE U.S. SEPTEMBER 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 l 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 r r i - es 1963—Dec 19,505 5,855 13,650 7,867 1,664 1,058 2,731 154 176 1964—July. 19,318 5,979 13,339 7,426 1,472 1,239 2,889 146 167 Aug. 19,415 5,925 13,490 7,636 1,492 1,152 2,906 139 165 Sept. 19,518 5,989 13,529 7,714 1,495 1,074 2,928 146 172 Oct.. 19,429 5,964 13,465 7,517 1,533 ',175 2,904 158 178 Nov. 19,802 5,954 13,848 7,824 1,577 ,191 2,930 152 174 Dec.. 20,225 5,876 14,349 8,270 1,483 ,238 3,020 160 178 1965—Jan.. 19,519 5,822 13,697 7,551 1,449 ,265 3,096 159 177 Feb.. 19,606 5,780 13,826 7,644 1,419 ,278 3,124 180 181 Mar. 19,317 5,879 13,438 7,255 1,316 ,296 3,213 178 180 Apr.. '18,994 5,883 13,111 '6,955 1,308 1,305 3,175 180 188 May. 18,745 5,660 13,085 6,822 1,304 1,389 3,178 191 201 June 18,970 5,646 13,324 7,200 1,275 1,292 3,167 193 197 July? 18,820 5,944 12,876 6,712 1,281 1,308 3,198 181 196 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 * Foreign E pe n r d i o o d f G to ra ta n l d Total Intl. E p u e r a o n - L r . e A - . Total Offi- 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 re- gional ciai •> gional 2 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 10,770 2,988 3,137 4,001 241 194 1964—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 '28,915 4,982 4,815 17 150 '23,933 12,685 '11,248 '12,017 2,941 3,668 4,834 273 199 Mar.... '28,288 5,081 4,916 19 146 '23,207 12,297 '10,910 '11,527 2,521 3,739 4,953 263 204 Apr '27,841 5,085 4,914 15 157 '22,756 '11,970 '10,786 '11,014 2,549 3,767 4,948 268 210 May.... 27,420 4,863 4,696 13 153 22,557 11,959 10,598 10,751 2,509 3,849 4,945 283 221 JuneP... 27,733 4,848 4,689 15 144 22,886 12,198 10,688 11,312 2,403 3,719 4,947 277 228 July*5. .. 27,779 5,146 4,994 12 140 22,633 11,750 10,883 10,757 2,585 3,762 5,049 262 219 2a. 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 y . , Greece Italy N l e a t n h d e s r- Norway Po g r a t l u- Spain Sweden Rep. of I960 9,046 243 142 54 46 519 3,476 63 877 328 82 84 149 227 1961 10,322 255 326 52 91 989 2,842 67 [,234 216 105 99 153 406 1962 10,162 329 177 67 73 1,157 2 730 119 1,384 248 125 161 177 490 1963 10,770 365 420 161 99 1,478 3,041 188 803 360 133 191 205 409 1964—July 10,791 327 396 213 105 1,558 2,360 146 928 310 167 216 296 451 Aug.. 11,148 355 424 229 105 1,525 2,361 133 1,057 317 171 230 376 509 Sept. 11,285 355 426 260 109 1,529 2,288 132 1,121 363 174 224 396 551 Oct.. 11,233 293 444 269 112 1,524 2,184 159 1,263 356 186 228 409 563 Nov. 12,012 349 473 280 110 1,600 2,152 172 1,434 447 182 228 410 653 Dec. 12,240 323 436 336 127 1,663 2,010 175 1,622 367 184 257 394 644 1965—Jan.. 11,990 296 470 344 129 [,530 ,928 165 1,592 355 153 257 408 682 Feb.. '12,017 269 459 334 126 1,584 r ,916 152 1,571 339 174 267 338 717 Mar. '11,527 247 413 338 116 1,333 r ,894 150 1,446 313 203 264 278 739 Apr.. '11,014 215 460 318 122 1,273 r ,879 148 1,345 328 197 264 244 724 May, 10,751 206 463 255 113 1,174 ,711 148 1,357 285 205 246 197 748 June** 11,312 222 420 271 104 1,211 ,540 151 1,440 278 232 248 231 719 July*5. 10,757 248 425 269 104 1,089 ,363 148 1,300 308 214 241 234 724 For notes see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1347 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 n i m t g e - d Y sl u av g i o a - W E O u e r t s h o 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 2,227 12 325 5 16 2,340 235 228 105 147 43 495 1962 . .. 908 25 1,609 11 351 3 19 2 448 210 204 135 148 715 531 1963 906 21 1,483 16 465 2 24 3,137 375 179 143 169 11 669 1964—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 r341 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 June**... 1,299 19 2,489 18 395 2 21 3,719 310 338 198 159 11 685 July*. .. 1,271 15 2,464 15 296 4 25 3,762 327 339 187 162 11 623 2b. Latin America—Continue c1 2c. Asia E pe n r d i o o d f Panama Peru U gu r a u y - V zu e e n l e a - O L re t . h A p e . . r B B e a r h m & a u m d a a s 8 A S n u N t r i e l i l n t e h a s . m & Am O L e a t r h t i i e c n r as 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—July 85 218 106 769 427 171 93 14 4,339 35 15 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.... 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 JulyP. .. 114 259 123 794 497 196 109 20 5,049 36 97 86 34 114 2c. Asia—Continued 2d. Africa 2e. Other countries Congo E p n er 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 (Le v o il p le 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—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 June?... 2,803 88 250 229 496 747 277 30 18 49 22 158 228 203 25 JulyP 2,786 88 280 226 501 803 262 18 17 52 24 151 219 195 24 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 millions 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, « 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

1348 INTL. CAPITAL TRANSACTIONS OF THE U.S. SEPTEMBER 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 »; (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 23.5 33.4 23.4 62.0 Ireland, Rep. of 10.7 6.0 8.7 6.3 Iraq 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 Pakistan 17.3 16.1 23.1 24.8 58.0 40.6 55.8 47.3 Ryukyu Islands (incl. Okinawa) . 21.7 31.6 25.6 32.7 Ecuador 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 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 Paraguay .. 8.9 8.4 11.4 12.1 Ghana 6.4 6.3 5.6 5.1 Trinidad & Tobago 5.7 5.5 7.4 8.6 22.0 17.8 20.0 17.6 Libya 14.1 14.9 28.9 26.8 Other Latin America: Mozambique 1.4 1.4 2.5 1.6 British West Indies 7.3 6.3 8.0 16.0 17.8 17.3 15.7 n.a. French West Indies & French Somali Republic .8 .8 .5 .8 1.3 .6 1.1 1.4 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 New Zealand 10.5 18.8 12.0 19.7 Ceylon 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 t960 21,272 18,929 7,568 7,491 2,469 1,401 2,230 1,849 148 233 113 1961 22,450 19,944 8,644 7,363 2,388 1,549 2,356 1,976 149 231 no 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—juiy 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 ,178 101 480 132 Oct 28,039 24,683 6,764 3,856 8,133 3,394 2,536 3,250 1,449 ,196 105 500 106 Nov 28,975 25,563 7,310 3,880 8,470 3,385 2,518 3,302 [,500 ,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 r28,915 r25,411 6,753 4,032 r8,607 3,303 2,716 3,431 1,516 1,320 79 515 73 Mar r28,288 r24,742 6,628 3,970 r7,978 3,373 2,793 3,482 1,541 1,362 79 501 64 r27,841 r24,280 6,226 3.982 r7,767 3,367 2,938 3,478 1.546 1,393 77 461 84 May . . 27 420 23 888 6,081 3,933 7,690 3,167 3,017 3,441 1,517 ,400 79 445 90 June*3 27,733 24,163 6,461 3,911 7,640 3,167 2,984 3,469 1,523 1,414 86 446 101 July*3 27,779 24,199 6,545 3,962 7,165 3,462 3,065 3,484 1,536 1,423 89 436 97 1 Excludes negotiable time certificates of deposit which are included time certificates of deposit. in "Other." * 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. -f-26; Bank, which amounted to $288 million on July 31, 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

SEPTEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1349 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 th tr e ie r s 2 1960. 3,614 717 421 ,356 1,052 69 1961. 3 4,820 767 556 ,522 3 1,891 85 1962. -.163 877 526 ,606 2,017 137 1963. 5,975 939 638 ,742 2,493 104 58 1964— A Ju u l g y . . . . . . 6 6 , , 7 7 7 2 5 7 1 1 , , 0 0 4 7 8 5 7 7 4 4 6 6 , 59 9 1 3 2 2 2 2 , , 8 8 9 3 1 7 9 9 8 8 5 6 8 0 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. '7,861 1,230 '927 2,230 3,278 131 63 1965—Jan.... '7,651 1,174 '902 2,201 3,203 112 56 Feb.. . '7,767 1,185 '955 2,239 '3,219 118 51 Mar... '7,834 1,185 '895 2,190 '3,381 130 53 Apr... '7,699 1,167 '816 2,173 '3,357 129 57 May. . 7,675 1,173 767 2,185 3,356 136 57 June?. 7,653 1,163 724 2,166 3,394 146 61 July*3.. 7,474 1,124 704 2,113 3,318 151 64 4a. Europe End of period Total A tr u i s a - 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 a f R 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 e e n - 1960 717 2 65 13 9 32 82 6 34 33 17 4 8 28 1961 767 5 20 11 23 42 165 6 35 54 27 5 11 35 1962 877 7 32 14 30 68 186 6 54 27 35 9 19 18 1963 939 8 26 13 52 70 121 9 97 33 40 14 26 30 1964—July.. 1,075 7 29 17 65 79 114 11 100 46 34 19 31 31 Aug... 1,048 8 31 18 62 72 133 10 94 40 33 20 32 31 Sept.. 1,064 9 31 17 65 74 127 10 92 40 33 17 31 36 Oct... 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. 1,230 11 48 26 84 81 152 10 114 36 43 23 40 49 1965—Jan... ,174 9 57 18 77 89 189 11 106 33 46 28 32 51 Feb... ,185 9 72 20 76 84 203 9 125 42 44 26 26 45 Mar.., ,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 May.. 1,173 9 43 23 75 83 184 14 116 44 51 36 46 38 Junep. ,163 9 40 19 74 86 167 11 113 46 50 34 38 42 ,124 8 39 20 71 72 174 11 109 40 44 32 52 40 4a. Europe—Continued 4b. Latin America Switz- Tur- United Other Other Co- End of period la e n r- d key K d i o n m g- s Y la u v g i o a - W Eu e r s o te p r e n 5 U.S.S.R. E E a u s r t o e p r e n * Total A t r i g n e a n- Brazil Chile lo b m ia - Cuba M i e c x o - 1960 60 49 245 11 11 8 1,356 121 225 73 80 26 343 1961 105 16 181 9 9 1 8 1,522 192 186 127 125 19 425 1962 75 42 221 6 19 1 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—July. . 91 52 285 26 22 16 1,912 174 147 187 251 16 571 Aug.. 88 35 277 23 21 t 20 1,932 175 153 187 250 16 568 Sept.. 82 49 290 21 22 1 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 t 20 2,212 210 145 188 319 17 630 Dec. 4, 111 37 310 16 20 1 20 2,230 200 126 175 338 17 '644 1965—Jan... 114 36 223 16 20 21 2,201 206 125 164 r3l3 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 May. 95 17 216 28 25 * 30 2,185 205 112 135 294 16 691 June?, 99 31 222 29 26 1 28 2,166 201 112 145 285 16 692 87 42 195 31 26 :I 27 2,113 208 113 139 276 16 670 For notes see following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1350 INTL. CAPITAL TRANSACTIONS OF THE U.S. SEPTEMBER 1965 4. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) 4b. Latin America—Continued 4c. Asia E pe n r d i o o d f Panama Peru 1U gu r a u y - V zu e e n l e a - R O l L e ic t p . h s A u e 7 . b r - m B B m u a & d e h a r a s a - - ] A N S n n u e a t & i m t r l h i l - e . s A O L ic m a t a h t e i e n 8 r r - Total M C la h a n i i n d n a - ] ]E l C o o n n g g India I n n e d si o a - Israel 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—July 40 112 55 140 160 38 11 10 2,837 2 16 20 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 IS 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 U 20 3,137 2 26 22 7 44 DecA.. 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 3 203 21 22 7 35 Feb 56 112 84 161 230 63 19 19 *3,219 21 16 7 44 Mar 48 116 84 164 229 62 19 18 r3,381 25 28 7 53 Apr 48 112 81 173 221 58 19 19 '3,357 24 28 7 55 May.... 50 119 78 173 216 58 19 19 3,356 27 28 4 53 June*1... 49 117 72 167 213 59 19 18 3,394 34 26 1 52 JulyP. .. 46 115 67 164 208 56 17 20 3,318 32 21 1 52 4c. Asia—Continued id. 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 y . p R t) . A O f t r h ic e a r i Total 2 A t l r u i a a s - - ot A he ll r. 9 I960 806 7 19 7 24 150 3 M 3 69 28 24 1961 31,528 4 114 10 34 145 6 10 13 85 29 27 1962 1,740 70 9 41 80 2 •10 26 137 41 57 1963 2,171 75 113 8 52 71 104 1 1 IS 28 59 58 48 9 1964 July 2,416 77 174 7 53 78 98 1 7 19 26 50 58 49 9 Aug 2,472 73 179 7 56 77 98 1 ? •Q 26 50 60 50 9 Sept 2,493 ?S 179 8 53 80 101 1 ? •18 29 52 58 49 10 Oct 2 488 ">5 185 9 54 81 108 1 •18 29 58 66 56 10 NOV 2,496 ?S 183 8 55 79 109 1 9 •1°* 28 60 67 58 9 D D e e c c 4 r2 2 ,6 7 5 9 3 7 7 7 1 1 2 2 0 0 3 2 9 9 6 6 5 4 8 8 2 8 1 13 2 1 0 1 *> •1 "> 9 0 4 4 2 2 6 5 7 6 6 5 3 8 4 4 8 8 1 1 6 0 1965_Jan '2,732 70 205 10 70 80 112 1 1 IS 31 63 56 43 13 Feb 2,737 ?0 208 12 73 80 118 1 ? IS 29 71 51 39 12 ]VIar 2,854 70 212 12 71 97 130 1 3 19 35 72 53 41 12 Apr r2 825 ?n 212 13 73 99 129 0 "M 35 70 57 45 13 h^ay 2,824 71 209 13 76 100 136 1 7 ">0 38 75 57 45 13 June*5 2 868 *>0 198 12 77 106 146 3 -n 43 77 61 48 13 July*3 2,822 20 191 11 74 94 151 2 32 40 77 64 50 14 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 $450 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 7 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

SEPTEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1351 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 End of period Total Loans to— C t o io ll n e s c- A a c n c c e e p s t- Deposits g c F o u o v ri r t t . e i e i s g s e n , - Total Total O i t n i f s o f t i n i c t s i u a 1 - l Banks Others st o i a n u n g t d - - f e o i m o g r f n a a e d f c r o e c s r t 2 - . Other 3 Total w ei i g th n e f r o s r- c p a n o n a a m p d n e m c f r e i 2 l - . Other * I960 3,614 3,135 1,296 290 524 482 605 1,233 480 242 238 1961 4,762 4,177 1,646 329 699 618 694 1,837 586 385 200 1961 5 4,820 4,234 1,660 329 709 622 700 1,874 586 386 200 1962 5,163 4,606 1,954 359 953 642 686 1,967 557 371 186 1963 5,975 5,344 1,915 186 955 774 832 2,214 384 631 432 157 42 1964-July.. 6,727 6,039 2,233 168 ,152 913 956 2,401 448 688 419 207 62 Aug.. 6,775 6,083 2,265 151 ,176 938 956 2,403 460 692 416 202 74 Sept.. 6,806 6,132 2,310 159 ,207 944 980 2,414 428 674 416 176 83 Oct... 6,912 6,242 2,379 164 ,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 ,055 1,007 2,600 552 659 400 182 77 Dec. 6 '"7,861 '7,240 2,772 221 ,403 ,148 1,129 2,621 '718 621 338 181 102 1965—Jan... '7,651 '7,031 2,788 '221 ,427 ,139 1,051 2,511 '680 621 345 169 107 Feb.. '7,767 '7,118 2,947 250 ,491 ,206 1,007 2,499 '664 649 350 176 123 Mar.. '7,834 '7,243 2,954 243 ,504 ,206 1,076 2,590 '623 591 327 147 117 Apr.. '7,699 '7,158 2,908 208 ,493 ,207 1,082 '2,584 '584 541 311 129 100 May. 7,675 7,110 2,818 213 ,462 ,143 1,091 2,607 594 565 330 137 98 Junep 7,653 7,101 2,851 231 1,475 ,145 1,122 2,605 523 553 329 126 98 July P. 7,474 6,954 2,803 241 1,422 1,140 1,126 2,531 494 520 310 125 85 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 $450 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 n c 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 1 ot A he ll r2 1960 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 1964 July 175 3,414 3,219 194 1 61 1,302 283 J mo 329 210 115 85 Aug 174 3,480 3,282 198 1 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. 4 > 305 \'4,270 '3,982 '286 87 1,625 '325 1,272 430 255 153 122 1965 Jan . . 309 '4,498 4,215 '281 2 86 1,679 '349 r1,367 455 259 183 119 Feb 493 '4,720 '4,413 '302 5 90 1,783 '397 1,400 454 276 186 133 Mar 458 '4,732 4,445 282 5 96 1,763 '362 1,403 472 297 202 136 Apr 441 '4,666 '4,363 '298 6 95 1,764 '375 1,332 479 295 191 135 M!ay 441 4,605 4,303 297 5 91 1,691 359 1,358 483 295 194 133 Junep 501 4,532 4 228 299 5 92 1,649 352 1,323 479 307 201 128 Julyp . . 441 4,518 4,220 293 5 89 1,613 356 1.308 482 322 206 141 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 $299 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

1352 INTL. CAPITAL TRANSACTIONS OF THE U.S. SEPTEMBER 1965 7. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. Govt. bonds and notes l U. s S e . cu c r o it r i p e o s r 2 ate Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e - s Sales c N ha s e a s t e le p s s u o r r - c P ha u s r e - s Sales c N 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 l e e s p 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 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 Sent -81 -84 3 3 267 301 -34 51 97 -46 49 42 7 Oct -30 -21 -13 4 335 353 — 17 252 399 -148 60 59 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 -15 17 240 249 -9 49 107 -58 86 48 38 M Fe a b r - - 1 7 7 -38* -1 3 7 0 3 * 2 -17 '2 4 8 2 2 7 2 3 9 9 2 5 -9 32 r5 4 5 6 1 2 5 6 7 9 ' '" - - 2 1 1 1 4 1 '7 7 9 8 r ' 4 5 5 5 '2 3 3 4 Apr 65 * 65 65 338 342 -4 88 183 -95 93 69 23 May — 1 * — 1 -15 14 346 342 4 117 146 -28 70 52 18 June*' 14 * 14 * 14 326 562 -236 97 250 -153 71 36 35 JulyP . ... 20 * 20 20 244 355 -112 72 113 -42 64 47 18 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 Aug 1,005 50 30 628 1297 152 125 2 25 Sept 1 ftfts 50 30 628 l 297 354 2 329 25 Oct I 086 50 30 679 i 327 354 2 329 25 Nov I 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 I 112 75 30 679 1 327 354 2 329 25 Mar t37 101 30 679 i 327 354 2 329 25 Apr 1,137 101 30 679 1327 354 2 329 25 May 137 101 30 679 1 327 354 2 329 25 June ,137 101 30 679 i 327 354 2 329 25 July 259 101 30 653 125 3 350 354 2 1?O 25 Aug .. ,259 101 30 653 125 3 350 354 2 329 25 1 Includes the equivalent of $70 million payable in Swiss francs to the 3 Includes the equivalent of $93 million payable in Swiss francs to the Bank for International Settlements. Bank for International Settlements. 2 Includes $204 million of nonmarketable bonds issued to the Government of Canada in connection with transactions under the Columbia River treaty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1353 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 i m a c t a e in r- Asia Africa i O c tr o t i u h e n e s2 r - reg I a n i n o t d l n . al 1 1 9 9 6 6 1 2 2 6 2 0 3 3 1 2 1 3 1 - -5 9 1 9 2 4 1 1 1 6 2 6 9 - - 1 3 7 3 6 2 1 4 2 1 3 2 2 4 -1 -4 1 3 2 -2 4 0 4 -1 4 8 4 i 1 1 2 7 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 4 -1 18 1964—July.. -68 -74 6 A -32 -32 8 -61 -8 -4 3 Aug.. -2 -50 48 -3 -22 19 2 -4 3 -3 « t t 2 S O D N e e c o p c t v . t . . . . . . . . . - - - 3 1 1 4 7 3 5 - - - - 2 2 4 3 5 7 3 7 2 3 9 8 4 2 - - - - 5 6 2 3 - - - - 1 1 1 2 5 9 4 6 4 1 4 1 5 4 -1 - - 1 1 5 « - - - 1 1 - 2 2 6 3 2 - - 1 7 8 5 3 4 * * * -2 2 2 « 1 1 1965—Jan... -9 * -9 * -2 -3 -1 -6 -3 -1 * 1 A F M e p a b r r . . . . . . . . -4 3 Q 2 -49 9 8 '-1 4 2 7 5 3 -2 2 8 - - 1 2 3 2 7 y * - - 3 2 4 3 -1 2 9 4 2 -1 1 1 7 0 - - 3 2 1 3 * 1 i 3 • 1 J M J u u n a ly y e P p . . . . - - 1 23 1 6 2 4 - - - 6 9 4 5 6 2 -1 -1 7 4 6 2 5 -4 6 3 -41 c -2 -9 - 1 9 0 9 - - - 7 1 1 - -1 2 -1 1 6 2 7 2 2 1 1 9 1 1 - - 3 7 3 -2 2 1 1 I * i 2 2 3 -22 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 Assets in 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—Aug... 163 8,247 12,741 1964—July..... 14 4 9 19 6 -13 -5 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 -5 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 1 3 Mar.. 162 7,741 13,187 Feb '-180 -178 r-\ r2 2 -4 -3 * 1 Apr... 146 7,626 13,174 Mar '-89 3 '-92 -6 '-81 -6 -1 * 2 May.. 142 7,713 13,050 Apr -72 4 -75 22 -28 -26 -47 * 5 June.. 179 7,599 12,951 May -10 3 -13 14 -16 10 * * -21 July... 147 7,221 13,108 June*3 -118 9 -126 -41 -61 -6 -23 1 3 Aug... 356 7,263 13,065 July*3 -24 -13 -11 33 -24 A -21 1 4 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

1354 INTL. CAPITAL TRANSACTIONS OF THE U.S. SEPTEMBER 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 1964 1965 1964 1965 Mar. June June1 Sept. Dec. Mar., Mar. June June* Sept. Dec. Mar.? Europe: Austria 2 3 3 3 2 2 7 6 5 5 7 7 Belgium 19 21 20 22 20 25 18 21 20 17 19 16 Denmark 1 1 1 2 2 6 7 7 6 6 9 Finland 1 1 1 1 1 1 7 5 5 8 7 6 France 31 28 27 31 31 35 52 69 67 50 52 56 Germany Fed Rep of 32 36 34 44 63 69 114 82 79 95 140 114 Greece 2 5 5 4 4 5 13 9 9 10 10 7 Italy . 26 24 22 27 26 16 101 101 99 90 95 84 Netherlands 43 46 46 31 33 40 34 30 30 32 31 28 Norway 2 3 2 2 1 2 6 7 6 7 8 6 Portugal. 1 1 1 2 2 2 8 10 10 9 4 8 Spain 7 9 8 12 10 5 32 47 46 45 42 39 Sweden ... . 7 7 7 7 8 6 20 17 17 19 19 21 Switzerland 20 19 18 36 33 34 23 19 17 16 22 29 Turkey .. 4 5 4 5 6 7 5 5 5 4 9 12 United Kingdom 110 102 97 108 102 98 248 284 280 407 310 341 Y O U u t .S h g e . o S r s . l R W av e i s a tern Europe 6 3 1 2 * 1 4 5 1 6 * 1 4 5 6 3 * 6 3 * 6 3 4c 9 3 * 7 6 1 Other Eastern Europe 1 1 * 1 1 4 2 2 3 2 2 Total... 319 316 301 341 350 356 706 731 714 832 794 799 Canada 68 62 57 60 76 71 910 932 923 1,035 1,060 840 Latin America: Argentina 6 6 5 4 3 3 23 20 20 26 30 33 Brazil 13 11 10 11 11 11 118 126 125 128 145 113 Chile 3 3 3 4 5 4 24 23 21 25 25 25 Colombia 6 8 7 7 10 12 21 23 22 25 25 26 Cuba * * 4c 5 5 5 4 4 4 Mexico 11 8 7 8 7 6 59 62 58 64 69 69 Panama 29 21 21 26 28 25 10 10 10 9 12 11 Peru 5 6 5 5 7 7 23 23 22 23 26 21 Uruguay 1 1 1 1 1 5 6 6 8 10 9 Venezuela 20 22 21 20 16 19 37 40 38 45 46 40 Other L A republics 10 9 8 11 15 13 42 45 42 47 51 49 Bahamas and Bermuda 2 2 2 2 2 3 20 21 20 19 11 8 Neth. Antilles & Surinam.... 6 7 7 9 6 5 5 5 5 4 4 3 Other Latin America 5 6 6 4 6 1 10 11 9 10 10 9 Total 118 112 104 111 116 108 403 422 404 438 468 420 Asia: China Mainland 2 2 2 1 1 1 * * * * Hong Kong 2 2 2 2 2 2 6 5 5 7 9 9 India 14 14 13 16 21 22 39 39 38 37 41 45 Indonesia 3 5 5 3 4 6 5 5 5 4 4 5 Israel 2 1 1 1 2 7 8 7 7 7 6 Japan 23 27 25 31 28 22 170 161 160 174 180 181 Korea 1 1 * 1 5 4 4 5 4 5 Philippines 5 5 4 6 5 6 12 11 11 14 11 15 Taiwan . 1 1 1 3 2 3 4 4 5 5 5 Thailand 1 1 1 1 7 7 7 7 5 7 Other Asia 22 21 19 21 21 24 46 53 51 55 60 62 Total 76 80 73 82 88 87 300 298 294 315 327 339 Africa: 1 1 1 3 4 2 2 2 5 6 2 M^orocco . * 1 * 1 2 1 1 South Africa 9 10 10 11 14 22 8 13 12 11 11 19 U A R (EevDt) 4 2 2 1 3 14 13 13 12 13 17 Other Africa 6 6 5 5 10 10 23 26 25 27 26 24 Total 21 19 18 22 31 34 50 55 53 57 57 63 Other countries: Australia ... 25 27 27 26 25 23 33 37 36 38 38 33 All other 4 6 5 8 9 8 5 6 6 7 7 8 Total 30 33 32 34 34 32 38 43 41 45 45 41 International and regional * 1 * * 1 1 1 Grand total 631 622 585 650 695 687 2,407 2,482 2,430 2,722 2,751 2,502 i 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

SEPTEMBER 1965 MONEY RATES 1355 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Aug. 31, 1964 Rate Country 1964 1965 as of Aug. 31 Per Month 1965 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. 6.0 Dec. 1957 6.0 Austria 4.5 June 1963 4.5 Belgium 4.75 July 1964 4.75 10.0 Apr. 1958 12.0 12.0 4.0 Feb. 1962 4.0 4.0 Aug. 1963 4.25 4.25 Ceylon 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 3.0 Apr. 1939 3.0 6.5 June 1964 6.5 5.0 Nov. 1956 5.0 El Salvador 4.0 Aug. 1964 4.0 7.0 Apr. 1962 7.0 4.0 Nov. 1963 3.5 3.5 Germany, Fed. Rep. of..... 3.0 May 1961 3.5 4.0 4.0 4.5 Oct. 1961 4.5 5.5 Jan. 1963 5.5 3.0 Jan. 1962 3.0 Iceland 9.0 Dec. 1960 8.0 8.0 4.5 Jan. 1963 5.0 6 0 6.0 9.0 Aug. 1963 9.0 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 4.5 June 1942 4.5 4 5 June 1964 4.5 7.0 Mar. 1961 7.0 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 4.5 Jan. 1964 5.0 5 5 5.5 2.5 July 1964 2.5 14.04 July 1963 14.04 7.0 Feb 1945 7.0 4.0 Oct. 1962 4.0 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom 5.0 Feb. 1964 7.0 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 Venezuela—4 per cent for rediscounts of certain agricultural paper and for advances against govt. bonds or gold and 5 per cent on advances against securities of Venezuelan companies. govx. sctunucs iui uniuiiciwiai uaius.5 ui UIUKCIS. rui luuuuics wiiii 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

1356 MONEY RATES; ARBITRAGE SEPTEMBER 1965 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France F G ed e . r m R a ep 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 - e y t y o 2 - 3 B a a m a c n n c o c k e e n p e s t r t , h - s s ' 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - a B d ll e a o p n o w o k n a s e i n r t s c s ' e D m a o d y n a - e y t y o - 3 Tr 6 d b e 0 a i a y l - s l 9 s s u 0 , 4 ry D m a o d y n a - e y t y o s - 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - d P is r r c i a v o t a 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—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 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 4.36 3.13 4.44 4.08 2.69 3.00 July 4.00 3.76 5.97 5.59 4.93 4.00 4.34 3.13 4.06 4.13 3.53 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 q K u ( U i b a o n U d a n g t j s . i a . S d t i t e s o . i t ) d o o m n U St n a 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) P d f ( ( p r o i e - + s r o c m w ) u ) o o o n a i u u n r d r n d m t i L n ( o c f N e a n o v n d e f o t t o i r v n e ) qu A i o n t s ed Cana q d u A a o U d t j . a . S t . i t o o n U S n ta i t t e e s d C S ( a f p a n o r v e a f o a d r d a) C P d f ( ( r o a i d e + - s n r o c m w ) a ) l o o l o d i a a u u n i r r r n a m d n t i C n ( c a f N a e n o v n e a f o t t d i r v a e ) Canada basis 1965 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 1.42 -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 21 6.10 3.88 2.22 -1.82 + .40 3.85 3.76 3.88 -.12 + .27 + .15 28 6.20 3.85 2.35 -2.44 -.09 3.93 3.84 3.85 -.01 + .27 + .26 June 4 5.49 3.82 1.67 -1.82 -.15 3.98 3.89 3.82 + .07 + .34 + .41 11 5.42 3.79 1.63 -1.68 -.05 3.97 3.88 3.79 + .09 + .41 + .50 18 5.42 3.77 1.65 -1.96 -.31 3.96 3.87 3.77 + .10 + .47 + .57 25 5.39 3.74 1.65 -1.60 + .05 3.94 3.85 3.74 + .11 + .41 + .52 July 2 5.36 3.80 1.56 -1.93 -.37 3.92 3.83 3.80 + .03 + .27 + .30 9 5.42 3.84 1.58 -1.82 -.24 3.96 3.87 3.84 + .03 + .27 + .30 16 5.46 3.82 1.64 -1.85 -.21 3.96 3.87 3.82 + .05 + .14 + .19 23 5.46 3.79 1.67 -1.98 -.31 4.01 3.92 3.79 + .13 + .14 + .27 30 5.46 3.78 1.68 -2.09 -.41 4.06 3.96 3.78 + .18 -.20 -.02 AU8^ 5.46 3.82 .64 -2.54 -.90 4.09 3.99 3.82 + .17 -.07 + .10 20 5.36 3.81 .55 -2.49 -.94 4.10 4.00 3.81 + .19 + .14 + .33 27 5.36 3.81 .55 -2.51 -.96 4.08 3.98 3.81 + .17 .00 + .17 5.39 3.83 .56 -2.49 -.93 4.09 3.99 3.83 + .16 -.14 + .02 Sept. 3 5.36 3.84 .52 -2.59 -1.07 4.10 4.00 3.84 + .16 -.34 -.18 10 5.36 3.87 1.49 -2.09 -.60 4.13 4.03 3.87 + .16 -.54 -.38 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

SEPTEMBER 1965 FOREIGN EXCHANGE RATES 1357 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 ( e fr l a g n iu c m ) C (d a o n l a la d r a ) C (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n n c c e ) 1959 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .3115 .2038 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 14.484 331.057 4 20.404 1964 .7179 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 20.404 1964—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 3.8694 2.0144 92.480 20.950 14.453 31.080 20.400 Apr. 1 .6627 222.80 3.8700 2.0147 92.654 20.948 14.462 31.081 20.401 May 2 .5814 222.87 3.8701 2.0147 92.627 20.951 14.456 31.098 20.397 June .5805 222.49 3.8713 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 Aug. .5806 222.37 3.8724 2.0146 92.714 20.934 14.405 31.061 20.403 Period ( G d m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) ( M do a si l l a l a a y r - ) M (p e e x s i o c ) o ( e g N r u l e 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 8.0056 26.492 278.10 1960 23.976 20.968 280.76 .16104 .27785 32.817 8.0056 26.513 277.98 1961 24.903 20.980 280.22 .16099 .27690 32.659 8.0056 27.555 277.45 1962 25.013 21.026 280.78 .16107 .27712 32.757 8.0056 27.755 278.00 1963 25.084 20.966 280.00 .16087 .27663 32.664 8.0056 27.770 277.22 1964 25.157 20.923 279.21 .16014 .27625 32.566 8.0056 27.724 276.45 1964—Aug. 25.152 20.886 278.66 .16002 .27580 32.474 8.0056 27.674 275.91 Sept. 25.154 20.862 278.34 .16002 .27665 32.431 8.0056 27.712 275.59 Oct.. 25.158 20.859 278.35 .16003 .27658 32.467 8.0056 27.772 275.59 Nov. 25.148 20.867 278.48 .16003 .27686 32.507 8.0056 27.824 275.73 Dec.. 25.149 20.898 279.06 .16003 .27837 32.569 8.0056 27.831 276.30 1965—Jan.. 25.135 20.894 279.13 .16003 .27856 32.575 8.0056 27.827 276.37 Feb.. 25.137 20.915 279.51 .16003 .27830 32.602 8.0056 27.825 276.75 Mar. 25.144 20.912 279.24 .16003 .27710 32.553 8.0056 27.780 276.47 Apr.. 25.149 20.935 279.62 .16004 .27609 32.582 8.0856 27.780 276.85 May. 25.097 20.939 279.71 .16004 .27585 32.617 8.0056 27.768 276.94 June. 25.003 20.924 279.23 .16003 .27638 32.583 8.0056 27.735 276.46 July. 24.960 20.914 279.10 .16005 .27599 32.579 8.0056 27.761 276.33 Aug. 24.923 20.913 279.08 .16005 .27598 32.565 8.0056 27.791 276.32 Period N (k o r r o w n a e y ) R P ( e p p h p e i i u n l s i b o e p l ) - ic (e P s o g c r a u t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e 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 1.6635 19.349 23.152 280.76 1961. 14.000 3.4909 279.48 139.57 1.6643 19.353 23.151 280.22 1962. 14.010 3.4986 139.87 1.6654 19.397 23.124 280.78 1963. 13.987 3.4891 139.48 1.6664 19.272 23.139 280.00 1964. 13.972 3.4800 139.09 1.6663 19.414 23.152 279.21 1964— Aug 13.962 3.4746 138.81 1.6662 19.466 23.145 278.66 Sept 13.956 3.4714 138.65 1.6661 19.461 23.148 278.34 Oct 13.956 3.4680 138.65 1.6662 19.376 23.164 278.35 Nov 13.956 3.4686 138.72 .6665 19.396 23.172 278.48 Dec 13.980 3.4777 139.01 .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 Aug 13.978 3.4775 139.02 .6658 19.332 23.161 279.08 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. It 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

1358 U.S. BALANCE OF PAYMENTS SEPTEMBER 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 -1,397 -1,389 -1,448 -1,341 -1,395 -1,429 Balance on goods and services l 5,149 5,917 8,560 1,930 2,199 1,549 1,824 2,206 2,225 Remittances and pensions -738 -837 -839 -203 -207 -221 -208 -209 -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 -888 -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 C Sc h c h a o e n m d g u e b l i e n i d n e d l a o s a s n o c r i e a p te a d y m lia e b n i t l s ities 5 1 9 4 9 7 6 9 4 4 4 5 4 7 9 5 1 2 3 6 9 8 3 - 1 - 4 8 6 7 1 1 8 3 6 3 5 0 - 1 8 6 0 4 0 9 4 1 4 4 8 - - 1 4 1 6 8 8 3 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 Fo U re . i S g n long-term investments . i m n U.S 2 1 7 5 2 3 3 3 0 2 3 6 4 1 3 1 2 0 -5 2 2 6 1 6 4 1 9 1 4 2 - 1 7 9 2 6 1 8 1 2 0 2 24 4 5 6 Foreign short-term capital -115 -24 115 -76 4 19 64 28 Miscellaneous U.S. Govt. nonliquid liabilities 207 -2 4 -1 204 -4 1 5. Errors and unrecorded transactions -1,161 103 -288 -152 -291 -430 -94 -1,197 -401 Balance of A (= 1+2+3+4+5) -3,106 -417 -417 -545 -593 -1,551 -733 Less: Net seasonal adjustments -3,605 -3,287 25 -481 50 428 3 -517 Balance of A before seasonal adjustment -3406 -442 64 -595 -1,021 -1,554 -216 -3J 605 -3,287 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 4. 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 -8 -2 29 Dollar securities « 31 -16 -1 -5 -8 -2 1 Foreign currency securities *25i -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 '25' 122 '263" "50 Change in U.S. short-term liabilities reported by U.S. banks 7 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 c -57 303 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 «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

SEPTEMBER 1965 FOREIGN TRADE 1359 MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports i Imports 2 Export surplus Period 1962 1963 1964 1965 1962 1963 1964 1965 1962 1963 1964 1965 Month: 1,668 3986 2,043 31,217 J /KYI 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 M Ap a r r 1 1, , 7 6 9 7 5 2 3 31 1 , , 9 9 1 5 4 8 2 2, , 0 0 6 7 1 4 3 3 2 2 , , 7 38 5 0 3 1 1, , 3 3 6 4 5 2 3 3 1 1 . , 4 4 1 8 5 5 1 1, , 5 5 4 2 1 0 3 3 1 1 , , 8 8 6 3 9 5 4 3 3 3 0 0 3 34 4 9 7 9 3 5 5 2 5 0 4 3 3 5 8 4 8 5 4 May 1,762 1,895 2,062 32,278 1,404 1,416 1,539 31,799 358 479 523 3479 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 2,263 1,347 1,450 1,578 1,670 401 391 545 593 l'J03 1,922 2,109 .146 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 1,455 548 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 4R0 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 II 5,393 35,612 6,157 36,843 4,120 34,262 4,598 35,469 1,273 31,350 1,559 31,374 ni 35,359 5 721 6 467 34 164 4,390 4 699 31 195 1 331 1 768 rv 35,087 6,024 36,782 34,114 4,401 34,888 3973 1,623 31,894 Year4 20,945 22,424 25,620 16,389 17,142 18,685 4,556 5,282 6,935 1 Exports of domestic and foreign merchandise; excludes Dept of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus NOTE.—Bureau of the Census data. entries into bonded warehouses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS of the Federal Reserve System WM. MCC. MARTIN, JR., Chairman C. CANBY BALDERSTON, Vice Chairman J. L. ROBERTSON GEORGE W. MITCHELL 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 BRENTON C. LEAVITT, Assistant Director ARTHUR L. BROIDA, Assistant Secretary 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 FRANK R. GARFIELD, Adviser JOSEPH E. KELLEHER, Director J. CHARLES PARTEE, Adviser HARRY E. KERN, Assistant Director ROBERT SOLOMON, Adviser KENNETH B. WILLIAMS, Adviser LEWIS N. DEMBITZ, Associate Adviser OFFICE OF THE CONTROLLER DIVISION OF INTERNATIONAL FINANCE JOHN KAKALEC, Controller RALPH A. YOUNG, Director 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 1360 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET COMMITTEE AND ADVISORY COUNCIL 1361 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON 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. No YES, 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

1362 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Federal Reserve Banks and Branches Federal ReserveBank 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 ALL-BANK STATISTICS, 1896-1955. 1959. 1,229 pp. FUNCTIONS. 1963. 297 pp. $4.00. ANNUAL REPORT. INDUSTRIAL PRODUCTION—1957-59 Base. 1962. 172 pp. $1.00 a copy; 10 or more sent to one FEDERAL RESERVE BULLETIN. Monthly. $6.00 address, $.85 each. per annum or $.60 a copy in the United States and its possessions, Bolivia, Canada, Chile, THE FEDERAL RESERVE ACT, as amended through Colombia, Costa Rica, Cuba, Dominican Re- Oct. 1, 1961, with an appendix containing propublic, Ecuador, Guatemala, Haiti, Republic visions of certain other statutes affecting the of Honduras, Mexico, Nicaragua, Panama, Federal Reserve System. 386 pp. $1.25. Paraguay, Peru, El Salvador, Uruguay, and Venezuela. (10 or more of same issue sent to SUPPLEMENT TO BANKING AND MONETARY STATISone address, $5.00 per annum or $.50 each.) TICS. Sec. 1. Banks and the Monetary System. Elsewhere, $7.00 per annum or $.70 a copy. 1962. 35 pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. FEDERAL RESERVE CHART BOOK ON FINANCIAL Sec. 11. Currency. 1963. 11 pp. $.35. Sec. 14. AND BUSINESS STATISTICS. Monthly. Annual Gold. 1963. 24 pp. $.35. Sec. 15. International subscription includes one issue of Historical Finance. 1962. 92 pp. $.65. Sec. 16. (New) Chart Book. $6.00 per annum or $.60 a copy Consumer Credit. 1965. 103 pp. $.65. in the United States and the countries listed above. (10 or more of same issue sent to one BANK MERGERS & THE REGULATORY AGENCIES: address, $.50 each.) Elsewhere, $7.00 per an- APPLICATION OF THE BANK MERGER ACT OF num or $.70 a copy. 1960. 1964. 260 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to monthly chart book includes BANKING MARKET STRUCTURE & PERFORMANCE one issue. $.60 a copy in the United States and IN METROPOLITAN AREAS: A STATISTICAL countries listed above. (10 or more sent to one STUDY OF FACTORS AFFECTING RATES ON BANK address, $.50 each.) Elsewhere, $.70 a copy. LOANS. 1965. 73 pp. $.50 a copy; 10 or more sent to one address, $.40 each. TREASURY-FEDERAL RESERVE STUDY OF THE GOV- ERNMENT SECURITIES MARKET. Pt. I. 1959. REGULATIONS OF THE BOARD OF GOVERNORS OF 108 pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 THE FEDERAL RESERVE SYSTEM. pp. Individual books $1.00 each; set of 3, $2.50. RULES OF ORGANIZATION AND PROCEDURE—BOARD FLOW OF FUNDS IN THE UNITED STATES, 1939-53. OF GOVERNORS OF THE FEDERAL RESERVE SYS- 1955. 390 pp. $2.75. 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. THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 a copy; 10 or more sent to one address, $.85 a copy; 10 or more sent to one address, $.85 each. each. 1363 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1364 FEDERAL RESERVE BULLETIN • SEPTEMBER 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. BANK CREDIT AND MONETARY DEVELOPMENTS IN Mar. 1963. 10 pp. 1964. Feb. 1965. 13 pp. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT. BANK CREDITS TO FOREIGNERS. Mar. 1965. 10 pp. Apr. 1963. 11 pp. BALANCE OF PAYMENTS PROGRAM: GUIDELINES NEW FOREIGN BOND ISSUES IN THE U.S. FOR BANKS AND NONBANK FINANCIAL INSTITU- MARKET. May 1963. 13 pp. TIONS. Mar. 1965. 6 pp. BANK LOANS SECURED BY STOCKS AND BONDS. REVISION OF BANK DEBITS AND DEPOSIT TURN- July 1963. 19 pp. OVER SERIES. Mar. 1965. 4 pp. A BANK EXAMINER LOOKS AT AGRICULTURAL BANKING AND MONETARY STATISTICS, 1964. Se- LENDING. July 1963. 8 pp. lected series of banking and monetary statistics for 1964 only. Feb., Mar., and June 1965. 15 MEASURING AND ANALYZING ECONOMIC GROWTH. pp. Aug. 1963. 14 pp. RECENT CREDIT AND MONETARY DEVELOPMENTS. BANK AND PCA LENDING TO FARMERS. Sept. 1963. July 1965. 12 pp. 11 pp. REVISION OF THE MONEY SUPPLY. July 1965. THE OPEN MARKET POLICY PROCESS. Oct. 1963. 11pp. 11 pp. BALANCE OF PAYMENTS PROGRAM: REVISED SURVEY OF FINANCIAL CHARACTERISTICS OF CON- GUIDELINES FOR NONBANK FINANCIAL INSTI- SUMERS. Mar. 1964. 9 pp. TUTIONS. July 1965. 3 pp. U.S. TRADE AND PAYMENTS IN 1963. Apr. 1964. INTEREST RATES IN CAPITAL MARKETS. Aug. 7 pp. 1965. 13 pp. FLOWS THROUGH FINANCIAL INTERMEDIARIES. MEASURES OF BANKING STRUCTURE AND COMPETI- May 1964. 9 pp. TION. Sept. 1965. 11 pp. REVISION OF THE MONEY SUPPLY SERIES. June TREASURY AND FEDERAL RESERVE FOREIGN EX- 1964. 14 pp. CHANGE OPERATIONS. Sept. 1965. 14 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 1278.) Acceptances, bankers', 1287, 1304, 1306 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 1298, 1300 Adjusted, and currency, 1293 Arbitrage, 1356 Banks, by classes, 1286, 1294, 1299, 1302, 1306 Assets and liabilities (See also Foreign liabilities and Federal Reserve Banks, 1288, 1353 claims): Postal savings, 1286, 1293 Banks and the monetary system, Discount rates, 1285, 1355 consolidated, 1293 Discounts and advances by Federal Reserve Banks, Corporate, current, 1318 1280, 1288, 1290 Domestic banks, by classes, 1294, 1298, 1300 Dividends, corporate, 1317, 1318 Federal Reserve Banks, 1288 Dollar assets, foreign, 1339, 1353 Automobiles: Consumer instalment credit, 1322, 1323, 1324 Earnings and hours, manufacturing industries, 1333 Production index, 1326, 1327 Employment, 1330, 1332, 1333 Balance of payments (See U.S. balance of payments) Farm mortgage loans, 1319, 1320 Bankers' balances, 1299, 1301 Federal finance: (See also Foreign liabilities and claims) Cash transactions, 1308 Banks and the monetary system, consolidated Receipts and expenditures, 1309 Treasurer's balance, 1308 statement, 1293 Federal funds, 1284 Banks for cooperatives, 1313, 1314 Federal home loan banks, 1313, 1314, 1321 Bonds (See also U.S. Govt. securities): Federal Housing Administration, 1305, 1319, New issues, 1314, 1315, 1316 1320, 1321 Prices and yields, 1304, 1305 Brokers and dealers in securities, bank loans to, Federal intermediate credit banks, 1313, 1314 Federal land banks, 1313, 1314 1298, 1300 Federal National Mortgage Assn., 1313, 1314, 1321 Business expenditures on new plant and Federal Reserve Banks: equipment, 1318 Business indexes, 1330 Condition statement, 1288 Business loans (See Commercial and industrial loans) U.S. Govt. securities held by, 1280, 1288, 1290, 1310, 1311 Capital accounts: Federal Reserve credit, 1280, 1288, 1290 Banks, by classes, 1294, 1299, 1302 Federal Reserve notes, 1288, 1291 Federal Reserve Banks, 1288 Federally sponsored credit agencies, 1313, 1314 Carloadings, 1330 Finance company paper, 1304, 1306 Central banks, foreign, 1342, 1355 Financial institutions, loans to, 1298, 1300 Certificates of deposit, 1302 Float, 1280 Coins, circulation of, 1291 Flow of funds, 1338 Commercial and industrial loans: Foreign central banks, 1342, 1355 Commercial banks, 1298 Foreign currency operations, 1288, 1290, 1344, 1352 Weekly reporting member banks, 1300, 1303 Foreign deposits in U.S. banks, 1280, 1288, 1289, Commercial banks: 1299, 1302, 1353 Assets and liabilities, 1294, 1297, 1298 Foreign exchange rates, 1357 Consumer loans held, by type, 1323 Foreign liabilities and claims: Number, by classes, 1294 Banks, 1346, 1348, 1349, 1351, 1353 Real estate mortgages held, by type, 1319 Nonfinancial concerns, 1354 Commercial paper, 1304, 1306 Foreign trade, 1359 Condition statements (See Assets and liabilities) Gold: Construction, 1330, 1331 Certificates, 1288, 1291 Consumer credit: Earmarked, 1353 Instalment credit, 1322, 1323, 1324, 1325 Net purchases by U.S., 1344 Noninstalment credit, by holder, 1323 Production, 1343 Consumer price indexes, 1330, 1334 Reserves of central banks and govts., 1342 Consumption expenditures, 1336, 1337 Reserves of foreign countries and international Corporations: organizations, 1345 Sales, profits, taxes, and dividends, 1317, 1318 Stock, 1280, 1293, 1344 Security issues, 1315, 1316 Gross national product, 1336, 1337 Security prices and yields, 1304, 1305 Cost of living (See Consumer price indexes) Hours and earnings, manufacturing industries, 1333 Currency in circulation, 1280, 1291, 1292 Housing starts, 1331 Customer credit, stock market, 1305 Income, national and personal, 1336 Debits to deposit accounts, 1290 Industrial production index, 1326, 1330 Debt (See specific types of debt or securities) Instalment loans, 1322, 1323, 1324, 1325 Demand deposits: Insurance companies, 1307, 1310, 1311, 1320 Adjusted, banks and the monetary system, 1293 Insured commercial banks, 1296, 1298 Adjusted, commercial banks, 1290, 1292, 1299 Interbank deposits, 1286, 1294, 1299 Banks, by classes, 1286, 1294, 1302 Interest rates: Turnover of, 1290 Bond yields, 1304 Type of holder, at commercial banks, 1299 Business loans by banks, 1303 1365 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1366 FEDERAL RESERVE BULLETIN • SEPTEMBER 1965 Interest rates—Continued Reserves—Continued Federal Reserve Bank discount rates, 1285 Federal Reserve Banks, 1288 Foreign countries, 1355, 1356 Foreign countries and international Money market rates, 1304, 1356 organizations, 1345 Mortgage yields, 1305 Member banks, 1280, 1282, 1286, 1299, 1301 Stock yields, 1304 Residential mortgage loans, 1319, 1320, 1321 Time deposits, maximum rates, 1286 Retail credit, 1322 International capital transactions of the U.S., 1346 Retail sales, 1330 International institutions, 1342, 1344, 1345 Inventories, 1336 Sales finance companies, consumer loans of, 1322, Investment companies, new issues, 1316 1323, 1325 Investments (See also specific types of investments): Saving: Banks, by classes, 1294, 1298, 1301, 1306 Flow of funds series, 1338 Commercial banks, 1297 National income series, 1337 Federal Reserve Banks, 1288, 1290 Savings and loan assns., 1307, 1311, 1320 Life insurance companies, 1307 Savings deposits (See Time deposits) Savings and loan assns., 1307 Savings institutions, principal assets, 1306, 1307 Securities (See also U.S. Govt. securities): Labor force, 1332 Federally sponsored agencies, 1313 Loans (See also specific types of loans): International transactions, 1352, 1353 Banks, by classes, 1294, 1298, 1300, 1306 New issues, 1314, 1315, 1316 Commercial banks, 1297 Silver coin and silver certificates, 1291 Federal Reserve Banks, 1280, 1288, 1290 State and local govts.: Insurance companies, 1307, 1320 Deposits of, 1299, 1302 Insured or guaranteed by U.S., 1319, 1320, 1321 Holdings of U.S. Govt. securities, 1310, 1311 Savings and loan assns., 1307, 1320 New security issues, 1314, 1315 Ownership of obligations of, 1298, 1306, 1307 Manfactures, production index, 1327, 1330 Prices and yields of securities, 1304, 1305 Margin requirements, 1286 State member banks, 1296 Member banks: Stock market credit, 1305, 1340 Assets and liabilities, by classes, 1294, 1298 Stocks: Borrowings at Federal Reserve Banks, 1282, New issues, 1315, 1316 1288, 1302 Prices and yields, 1304, 1305 Deposits, by classes, 1286 Number, by classes, 1295 Tax receipts, Federal, 1309 Reserve position, basic, 1284 Time deposits, 1286, 1292, 1293, 1294, 1299, 1302 Reserve requirements, 1286 Treasurer's account balance, 1308 Reserves and related items, 1280 Treasury cash, 1280, 1291, 1293 Weekly reporting series, 1300 Treasury currency, 1280, 1288, 1293 Mining, production index, 1327, 1330 Treasury deposits, 1280, 1288, 1308 Money rates (See Interest rates) Turnover, deposit, 1290 Money supply and related data, 1292 Mortgages (See Real estate loans) Unemployment, 1332 Mutual funds (See Investment companies) U.S. balance of payments, 1358 Mutual savings banks, 1293, 1294, 1296, 1306, 1310, U.S. Govt. balances: 1311, 1319 Commercial bank holdings, by classes, 1299, 1302 Consolidated monetary statement, 1293 National banks, 1296 Treasury deposits at Federal Reserve Banks, National income, 1336, 1337 1280, 1288, 1308 National security expenditures, 1309, 1336 U.S. Govt. securities: Nonmember banks, 1296, 1298, 1299 Bank holdings, 1293, 1294, 1298, 1301, 1306, 1310, 1311 Open market transactions, 1287 Dealer transactions, positions, and financing, 1312 Federal Reserve Bank holdings, 1280, 1288, Payrolls, manufacturing, index, 1330 1290, 1310, 1311 Personal income, 1337 Foreign and international holdings, 1288, Postal Savings System, 1286, 1293 1345, 1353 Prices: International transactions, 1352 Consumer, 1330, 1334 New issues, gross proceeds, 1315 Security, 1305 Open market transactions, 1287 Wholesale commodity, 1330, 1334 Outstanding, by type of security, 1310, Production, 1326, 1330 1311, 1313 Profits, corporate, 1317, 1318 Ownership of, 1310, 1311 Real estate loans: Prices and yields, 1304, 1305, 1356 Banks, by classes, 1298, 1306, 1319 United States notes, outstanding and in Mortgage yields, 1305 circulation, 1291 Type of holder, 1319, 1320, 1321 Utilities, production index, 1327, 1330 Type of property mortgaged, 1319, 1320, 1321 Vault cash, 1280, 1286, 1299 Reserve position, basic, member banks, 1284 Reserve requirements, member banks, 1286 Veterans Administration, 1319, 1320, 1321 Reserves: Central banks and govts., 1342 Weekly reporting member banks, 1300 Commercial banks, 1299 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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