Federal Reserve Bulletin, 1965-12

FEDERAL RESERVE B U LLETIN December Volume * Number 12 • • * 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 Financing Corporate Investment 1657 Federal Reserve Policy Actions 1667 Balance of Payments Program: Revised Guidelines for Banks and Nonbank Financial Institutions 1693 Staff Economic Studies 1702 Law Department 1704 Announcements 1721 National Summary of Business Conditions 1724 Guide to Tabular Presentation 1726 Financial and Business Statistics, U.S. (Contents on p. 1727) 1728 International Financial Statistics (Contents on p. 1789) 1790 Board of Governors and Staff 1808 Open Market Committee and Staff; Federal Advisory Council 1809 Federal Reserve Banks and Branches 1810 Federal Reserve Board Publications 1811 Index to Statistical Tables 1815 Map of Federal Reserve System Inside back cover E D I T O R I AL C O M M I T T EE Charles Molony Ralph A. Young Robert C. Holland Robert Solomon 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

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

1657 N onfinancial corporations have increased their reliance on external financing since the fall of 1964, as their investment outlays have risen faster than their internal funds. Although the bulk of corporate funds have continued to come from internal sources, the proportion obtained externally has risen to about one-fourth compared with one-fifth or less in other recent years. This moderate increase in the relative importance of external financing has meant a large increase in the dollar volume of credit obtained by nonfinancial corporations. Furthermore, financial corporations have been borrowing substantial amounts. The security issues of commercial banks in the first half of the year, and of other financial corporations in the second half, added significantly to total demand for long-term funds. All in all, borrowing by corporations and noncorporate business has been the principal source of increase in total credit demands this year. The shift toward greater business borrowing in credit and capital markets began in the fourth quarter of 1964, when continued growth in fixed investment was accompanied by a rise in expenditures for inventories. Even though retained profits showed a sharp increase in the first quarter of 1965 and inventory outlays declined as the year progressed, total domestic investment in fixed assets and inventories by nonfinancial. corporations expanded about half again as much as the flow of internal funds over the full period from late 1964 through the third quarter of 1965. Also, direct investment abroad by U.S. corporations was sharply higher in the first half of this year, adding further to demands for domestic credit. Despite greater inflows of funds from external sources, corpora- CHART 1 RELIANCE on external funds increases In 1965 PER CENT OF TOTAL FUNDS — BANK LOANS, NEC Flow of funds data for nonfinancial corporate business. Figures for the external sources shown are expressed as percentages of total funds retained from current operations and obtained from external sources (excluding trade debt). Quarterly and 9-month percentages are computed from seasonally adjusted data. Third quarter 1965 preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1658 FEDERAL RESERVE BULLETIN • DECEMBER 1965 tions have reduced their holdings of liquid assets over the past year. This suggests that the bulk of the external financing in the first 9 months of 1965 reflected the pressure of immediate needs for funds and not an attempt to anticipate future needs. The increase in corporate demands for external funds has been met primarily through borrowing at banks. Starting in the fourth quarter of last year and continuing through the second quarter of 1965, such borrowing by nonfinancial corporations accounted for twice as large a share of their external funds, and nearly 3 times as large a share of all their internal and external funds, as it had of the much smaller totals in each of the preceding 3 years. By the second quarter, however, corporations began to borrow more in capital markets. Although the proportion of total funds raised there in the third quarter was still not much larger than a year earlier, it appears to have risen further in the current quarter; and the proportion borrowed from banks has apparently declined. The manufacturing sector has been primarily responsible for the enlarged business demands for external funds. It is here that the rise in capital outlays and in inventory accumulation has been the greatest. Within manufacturing, those industries that have reported the largest increases in spending have generally shown the sharpest increases in demands for external financing. INVESTMENT _, . , . . t The long period of expansion that has carried most measures of economic activity to successive new highs has included substantial growth in corporate domestic outlays for physical assets. Such investment grew by three-fifths from the start of the general expansion through the third quarter of 1964, and it has apparently risen another one-fifth since then. Inventory accumulation—though moderating during 1965—has been greater than in any other recent year, and outlays for plant, equipment, and commercial properties have continued to advance. Despite the substantial additions to productive capacity, many businesses appear to be using their facilities more intensively than is efficient, and a further substantial rise in outlays for fixed assets is planned in 1966. This year's expansion in spending on fixed assets has been unevenly distributed among industries. The Commerce-SEC series, which covers domestic expenditures for new plant and equipment by all nonfarm businesses—noncorporate as well as corporate, shows that the sharpest increases by far have occurred in manufacturing. Within that major grouping the motor vehicle, nonferrous metals, nonelectrical machinery, textile, chemical, and rubber industries are all increasing their outlays by 30 per cent or more. Together they account for $2.2 billion of the $6.9 billion total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING CORPORATE INVESTMENT 1659 expansion. Outlays in the electrical machinery, paper, and petroleum groups, as well as in the transportation industries, also show percentage increases that exceed the rise for industry as a whole. On the other hand, public utilities and the commercial and miscellaneous group—which includes communications—are spending only 10 per cent more than they did in 1964; the amounts of the increases are $0.6 and $1.5 billion, respectively. In most industries, the increases are significantly greater than those anticipated by business only 4 months ago. In addition to large outlays for plant and equipment and inventories, nonfinancial corporations continued to channel substantial amounts, net, into the financing of customers. They also stepped up their direct investment abroad more rapidly than in preceding years. For nonfinancial corporations as a group, total CHART 2 FIXED INVESTMENT rises throughout 1965 BILLIONS OF DOLLARS - 58 OUTLAYS FOR PHYSICAL ASSETS - 52 - 40 but RATE OF INVENTORY ACCUMULATION declines - 6 i 0 1963 1964 1965 Flow of funds data for nonfinancial corporate business. Quarterly totals at seasonally adjusted annual rates. Figures for the third quarter of 1965 are consistent with published Dept. of Commerce data on gross private domestic investment and do not reflect the upward revision in plant and equipment outlays recently reported in the Commerce-SEC survey. Figures for the fourth quarter of 1965 are Federal Reserve estimates; the estimated thirdto-fourth-quarter change in fixed investment outlays is based on the third-to-fourth-quarter change shown m the plant and equipment survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1660 FEDERAL RESERVE BULLETIN • DECEMBER 1965 investment in fixed assets, net trade credit, and other assets was at a seasonally adjusted annual rate of $76 billion in the first 9 months of 1965, compared with $62 billion in 1964. INTERNAL FUNDS The volume of internal funds flowing to nonfinancial corporations this year has once more surpassed previous records. In the first 9 months of 1965 retained earnings and capital consumption allowances taken together.were 15 per cent larger than a year earlier. Retained earnings spurted in the first quarter, then remained at that level through the third quarter; meanwhile, capital consumption allowances continued to grow. Nevertheless, as is shown in Chart 3, outlays for physical assets have been larger relative to internal funds than they were earlier in the current expansion. This has been true especially for the manufacturing sector, where outlays have risen faster and internal funds more slowly than for industry as a whole. CHART 3 INTERNAL FUNDS grow, bit Itss than CAPITAL OUTLAYS tiict lot. 1964 BILLIONS OF DOLLARS 60 - 55 - 50 - 45 1963 1964 1965 Flow of funds data for nonfinancial corporate business. Quarterly totals at seasonally adjusted annual rates. Outlays comprise fixed investment and change in inventories. Latest data shown, third quarter. See also note to Chart 2. Profits before taxes of all U.S. corporations were at a seasonally adjusted annual rate of $73.7 billion in the first 9 months of the year. The increase of 14 per cent in this the fifth year of expansion was the largest year-to-year rise since 1958-59. Profits growth in 1965 reflected both new highs in sales volume and further increases in profit margins. The ratio of profits before taxes to sales for manufacturing corporations exceeded 9 per cent, sea- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING CORPORATE INVESTMENT 1661 sonally adjusted, in each of the first three quarters—the first time since the mid-1950's that margins had been this high for more than a single quarter. The prolonged rise in profits and profit margins in the current expansion has been unusual. In past cycles, they ceased to rise after the first year of expansion and then began to decline. This time, cost-price relationships have continued generally favorable, in spite of high output-to-capacity ratios and heavy expenses connected with the introduction of new plants. Because the final instalment of the cut in Federal income tax rates for corporations became effective at the start of 1965, corporate profits after taxes rose even more from 1964 to 1965 than profits before taxes. Moreover, the proportion of profits paid out in dividends has been unusually low. Although dividend payments have reached new highs each quarter, the ratio of dividends to profits, at an average of only 41 per cent in the January-September period, was well below the 1964 rate and the lowest in a decade. As a result, retained earnings in the first 9 months of 1965 were nearly one-third above the previous record reached last year. While expansion in this component of internal funds has been spectacular, when measured against the already large flow in 1964, all of the rise took place in the first quarter and there has been no further growth since then. Indeed, undistributed profits of manufacturers have probably declined since the first quarter, as profits have tended to level off and dividend payments have increased more than in nonmanufacturing industries. Total internal funds of corporations have risen throughout the year, because of the continued moderate growth in capital consumption allowances. But outlays in many industries have risen more. With liquidity balances already low relative to the scale of operations, and thus not available as a major source of temporary financing, corporate reliance on external funds has increased. EXTERNAL Funds raised by nonfinancial corporations in credit and capital FINANCING markets in the first 9 months of 1965 were at a seasonally adjusted annual rate of more than $20 billion, nearly $7 billion more than in the full year 1964. Most of this expansion represented increased borrowing at banks. The net volume of funds obtained from security issues was $ 1 billion larger than last year, and financing in the form of mortgages and other loans changed little. During the course of the year, however, demands by nonfinancial corporations for bank credit have declined and borrowing in long-term capital markets has increased. This shift in financing media, when combined with the financing demands of financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1662 FEDERAL RESERVE BULLETIN • DECEMBER 1965 corporations and of noncorporate businesses, has had an important effect on credit and capital markets. Borrowing at banks. Nonfinancial corporate borrowing at banks, which had been at a seasonally adjusted annual rate of $2 billion in the first 9 months of 1964, rose to a rate of nearly $8 billion in the fourth quarter and to $10 billion in the first quarter of 1965. Borrowing by noncorporate business was also unusually large in the first quarter—about $4 billion. A high rate of inventory accumulation, the dock strike, and substantial foreign drawings, including some on earlier commitments, were all adding to demand for bank credit in the first quarter; commercial bank loans to non- INCREASE IN financial business—domestic and foreign, corporate and non- LOANS OUTSTANDING, corporate—grew at a seasonally adjusted annual rate of 26 per YEAR ENDED NOV. 1965 cent. Since the first quarter, and especially since midyear, growth has been slower. Over the period April-November the annual rate Petroleum 38 Chemicals 38 of expansion was 15 per cent. An unusually large proportion of Other durable mfg.1 35 the expansion in business loans this year appears to have been in Transp. equipment 34 Public utilities 31 term loans, which suggests that the borrowing may have been in Machinery 29 Other nondur. mfg. 24 part for capital spending programs. This is also suggested by the Textiles and apparel 24 industrial composition of the borrowing. Primary metals 22 The rapid growth in business loans outstanding at commercial ALL INDUSTRIES2 21 banks has been broadly distributed by industries, but over the 12 Trade 21 Mining 18 months through November, according to data for large weekly Construction 15 reporting member banks, especially sharp increases occurred in Food, liquor, tobacco 14 Other nonmfg.3 14 the petroleum and chemical groups, where the rise in capital out- Commodity dealers -1 lays has been large, and in metal products manufacturing groups, where funds have been needed to finance both an increase in capi- ' Including fabricated metals. tal outlays and, over much of the period, a build-up in steel inven- ' Total at weekly reporting banks. ' Including unclassified loans. tories. In the preceding 12 month period, loans to the chemical group had also increased substantially, but those to each of the other groups had increased little or had declined. The smaller rise in loans to primary metals producers than to other durable goods manufacturers probably reflected a combination of larger than average increases in earnings and less expansion in capital outlays than in other durable goods industries. Loans to public utilities showed a relatively large expansion, as these companies reduced their reliance, until quite recently, on capital market financing. In most other nonmanufacturing industries, increases in bank loans were more moderate. Financing in capital markets. Funds obtained by nonfinancial corporations from sales of bonds and stocks, which totaled $5.4 billion in 1964, were at a seasonally adjusted annual rate of $6.4 billion in the first 9 months of 1965. These figures represent net Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING CORPORATE INVESTMENT 1663 sums raised, that is, gross offerings for new capital, refunding, and other purposes, less all retirements of existing securities. Total corporate activity in the capital market, as measured by gross offerings of both nonfinancial and financial corporations, is estimated to have exceeded $16 billion for the year as a whole, one-sixth above last year's volume, which had been a record. Most of the year-over-year rise occurred in the second half, when continued large flotations by manufacturing companies were augmented by renewed capital market financing by other industries. In this period total corporate offerings were nearly one-third larger than in the corresponding period of 1964. Security issues of manufacturing corporations were in substantial volume throughout 1965. In fact, flotations in each of the first three quarters were at least twice as high as in the same quarter of 1964, and these companies sold a larger volume of issues in the first 9 months of 1965 than in any full year since 1957. Since only one large equity issue was offered, financing by manufacturers swelled the total of both public offerings and private placements of bonds and notes. Three major industries—petroleum, chemicals, and motor vehicles—accounted for nearly half of the expansion in manufacturing issues in the first 9 months of this year. Their flotations were almost five times as large as last year. This large increase reflected in part the very small volume of security financing by petroleum companies in 1964 and also the first major issue in the motor vehicle industry since 1955. Four nondurable goods groups—paper, textiles, food, and rubber—each sold roughly three times as large a volume of new securities as in 1964 and together accounted for another fourth of the 1964-65 increase. Most of these industries have reported greater than average increases in outlays for plant and equipment. Security issues by companies in other manufacturing groups, including primary metals and machinery, were generally above a year earlier, but the increases were much more moderate. Public utilities, which have financed part of the moderate rise in their plant and equipment expenditures this year by borrowing from commercial banks, sold a smaller volume of new issues in the first half of 1965 than a year earlier. In the July-December period, however, their flotations have been nearly one-fourth larger than in the corresponding period of 1964, and the issues have consisted mostly of publicly offered bonds. Although issues of communications companies also picked up after midyear, flotations for the year as a whole have been well below the huge volume of 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1664 FEDERAL RESERVE BULLETIN • DECEMBER 1965 In the real estate and finance group, offerings of debentures by commercial banks were substantial in the second quarter of 1965, and for the year as a whole they have been one-fourth greater than in 1964. The decline in commercial bank issues after midyear was offset to some extent by a sharp increase in notations of bonds by finance companies; these included several large public offerings. Sales of new equity securities this year have been larger than in 1962 or 1963 but well below the volume sold last year, which included two very large offerings by communications companies. Offerings of bonds, on the other hand, totaled one-third more than in 1964. Public offerings in particular, which had been small in the last half of 1964 and the first quarter of this year, increased sharply in the second quarter. They were unseasonably high during the summer and appear to have continued large in the fourth quarter. The increased importance of publicly offered bond issues in the moderately enlarged total of corporate security offerings was one factor accounting for the general upward pressures on long-term interest rates this year. These pressures began to appear in the markets for corporate and municipal issues early in the spring and then spread to other markets. Over the full period through early December average yields on new corporate issues rose % of a percentage point to the highest level in 5 years, and those on seasoned high-grade issues approached the record post-World War IT highs reached in early 1960. CHART 4 BOND OFFERINGS risi this yiar BILLIONS OF DOLLARS TOTAl — 2 FS'VATE PLACEMENTS PUBLIC OFFERINGS STOCK OFFERINGS in moderota - 2 1963 1964 1965 Securities and Exchange Commission data on gross offerings in the United States by domestic nonfinancial corporations, banks, other financial institutions (except open-end investment cos.) and foreign corporations. Quarterly totals, without seasonal adjustment. Latest data shown, third quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCING CORPORATE INVESTMENT 1665 Despite record inflows of funds from both internal and external CORPORATE sources, corporations have reduced their holdings of liquid assets, LIQUIDITY and their liquidity ratios have continued to decline. By the end of the third quarter, their holdings of cash, deposits, and U.S. Government securities amounted to 26.6 per cent of total current liabilities, compared with 30.4 per cent a year earlier. If the definition of liquid balances is broadened to include "other current assets"—some of which may be readily marketable—the ratios become about 35 and 38 per cent, respectively. Corporate liquidity has been declining persistently for many years; while the volume of liquid assets has risen steadily, apart from seasonal fluctuations, total short-term debts have risen faster. In each of the first three quarters of 1965, however, holdings of liquid assets were smaller than a year earlier, and the year-to-year drop in liquidity was the sharpest since 1960. The fact that the liquidity ratio has been so much lower in 1965 than at corresponding dates in 1964 reflects, almost entirely, devel- CHART 5 LIQUID ASSET HOLDINGS tun down, and BILLIONS OF OOLLARS - 65 , , , 1 , , . , i i i l i 1 i i i I decline in CORPORATE LIQUIDITY ou.lerat.s P« cm A — 35 30 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 J 1961 1962 1963 1964 1965 Securities and Exchange Commission data for all U.S. corporations except banks, insurance companies, and savings and loan associations. Figures are for end of quarter and are not adjusted for seasonal variation. Liquid assets comprise cash, deposits, and U.S. Government securities. Liquidity is measured by the ratio of these assets to total current liabilities. opments in the fourth quarter of last year. At that time the yearend increase in liquid assets fell considerably short of its usual magnitude, and the ratio of these assets to total current liabilities, which normally rises sharply in the fourth quarter, showed almost no increase. Since then the ratio has declined only a little more than seasonally. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1666 FEDERAL RESERVE BULLETIN • DECEMBER 1965 The smallness of the addition to liquid asset holdings at the end of 1964 suggests that corporations, especially those faced with continued large needs for funds to finance inventory and capital outlays, were more pressed for cash than they had been earlier, and this may have contributed to the heavy borrowing this year. Even so, liquidity balances of corporations as a group have remained below earlier levels. At the end of the third quarter of 1965 aggregate corporate holdings of cash, deposits, and U.S. Government securities were $2.6 billion smaller than a year earlier. One-third of the decline occurred in the communications group and probably represented the use of proceeds of previous capital market financing. Most of the remainder reflected large reductions in holdings by the petroleum, motor vehicle, and electrical machinery industries and smaller reductions in almost every other major manufacturing industry. The persistent decline in corporate liquidity throughout the postwar period has reflected, to a considerable extent, successful efforts by corporations to manage their financial resources more efficiently. But as liquidity ratios continue, quarter after quarter, to reach new lows for the time of year, corporations have less leeway not only for further economizing on cash but also for drawing down liquid assets as an alternative to raising funds in credit and capital markets. If internal funds continue to grow more slowly than planned outlays, corporations can be expected to rely more heavily on external financing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Policy Actions On December 5, 1965, the Federal Reserve lated materials, including the text of an address announced increases in discount rates and in by Chairman Martin of the Board of Governors maximum rates that member banks are per- on December 8, and the text of statements of mitted to pay their depositors on certain types members of the Board of Governors to the Joint of time deposits. Text of the announcement of Economic Committee of the Congress on these actions is given below, together with re- December 13, 1965. ANNOUNCEMENT OF ACTIONS The Federal Reserve announced on De- deposit having a maturity of 30 days or cember 5, 1965, two complementary actions more. This change is also effective Monday, to reinforce efforts to maintain price sta- December 6. Previously, the maximum rates bility, and thus to foster balance in the payable were 4 per cent for time deposits economy's continued growth and strength and certificates of 30 to 90 days and AVi in the dollar's international standing. per cent on those of 90 days or more. No The actions, intended not to cut back on change was made in the rate payable on the present pace of credit flows but to savings deposits (4 per cent). dampen mounting demands on banks for The increase in the rates that member still further credit extensions that might add banks are permitted to pay their depositors to inflationary pressures, were as follows: is intended to enable the banks to attract 1. The Board of Governors in Washing- and retain deposits of businesses and inditon approved actions by the directors of the viduals and thus to make more effective use Federal Reserve Banks of New York and of savings funds already available in the Chicago increasing the discount rates of economy to finance their loan expansion. those Banks from 4 to AVi per cent, effective The increase in discount rates is intended Monday, December 6, 1965. The discount to moderate additional bank reliance on rate is the interest rate charged member short-term borrowings from the Federal Re- Banks for borrowing from their district serve to meet intensifying loan demands. Federal Reserve Banks. The action contemplates, however, the 2. Simultaneously, the Board increased continued provision of additional reserves the maximum rates that member banks are to the banking system, in amounts sufficient permitted to pay their depositors to 5Vi per to meet seasonal pressures as well as the cent on all time deposits and certificates of credit needs of an expanding economy with- 1667 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1668 FEDERAL RESERVE BULLETIN • DECEMBER 1965 out promoting inflationary excesses, pri- In sum, the actions announced today marily through the Federal Reserve's clay- should have the three-pronged impact of: in and day-out purchases of U.S. Govern- 1. Backing up the Government's efment securities in the open market. forts to prevent inflationary excesses The changes in discount rates and the from damaging an economy now maximum rates that banks may pay de- carrying the added burden of milipositors were the first in either respect since tary operations in Viet Nam; November 24, 1964. 2. Bolstering the Government's pro- Since then, total borrowing by consumers, grams to overcome persistent defibusiness, and State and local governments cits in the U.S. balance of payhas risen sharply, and interest rates at all ments; and maturities from the shortest to the longest 3. Demonstrating anew the United have been rising under demand pressures. States' determination to maintain In these circumstances the Federal Reserve the international strength of the would be forced to increase bank reserves dollar. at an accelerated pace if all demands for Governors Robertson, Mitchell, and Maiborrowing money at present rates were to sel dissented from the discount rate action be satisfied. on the ground that it was at least premature With slack in manpower and productive in the absence of more compelling evidence capacity now reduced to narrow proportions, of inflationary dangers. Governor Robertson also dissented from the action to inwith the economy closer to full potential crease the maximum rates on time deposits. than at any time in nearly a decade, and with military demands on output and manpower increasing, it was felt that excessive additions to money and credit availabilities Since December 5, 1965, the Board of in an effort to hold present levels of interest Governors has also approved the action by rates would spill over into further price the directors of the following Federal Reincreases in goods and services. Such price serve Banks increasing the discount rates of rises would endanger the sustainable nature those banks from 4 to 4Vi per cent effective of the present business expansion. More- on the dates shown: over, increases in costs and prices would make it more difficult for American goods to compete in markets at home and abroad. Boston December 8, 1965 In addition, a pattern of interest rates Atlanta December 8, 1965 Philadelphia December 10, 1965 that is accepted by borrowers and lenders Cleveland December 10, 1965 as fully reflecting market forces should add Richmond December 10, 1965 assurance of a smooth flow of funds to all St. Louis December 10, 1965 sectors of the economy. Discount rate in- Minneapolis December 10, 1965 creases in 1963 and 1964 did not stop busi- Dallas December 10, 1965 ness or credit growth, but helped to keep San Francisco December 10, 1965 the economy within an expansion that was Kansas City December 13, 1965 sustainable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1669 FEDERAL RESERVE POLICY ACTIONS THE FEDERAL RESERVE'S ROLE IN THE ECONOMY by William McC. Martin, Jr.1 In meeting with your Association, I feel you for those contributions to our common very much at home. Life insurance and cen- efforts, and I can only hope that our research tral banking have many problems and many program proves as useful to you as yours attitudes in common. We are both deeply has proved to us. concerned with long-term aims, with main- Now, if I may, I should like to make some taining the strength of our economy and observations on the Federal Reserve's role the strength of our currency. in our economy. I shall begin with recent Millions of Americans are putting their developments. faith in life insurance for the protection of Just a few days ago, the Federal Reserve the future of their families, and this faith raised discount rates to AV2 per cent, and the rests on the expectation that your policies maximum rate payable on time deposits to will return to them a full measure of value SVi per cent. The discount rate thus reached for the dollars they are paying to you. These its highest level in more than 30 years, and millions who entrust funds to you, and who the time deposit rate its highest level since rely on the Federal Reserve to safeguard the promulgation of Regulation Q, also more the value of their money, want most of all than 30 years ago. safety and security—in your case, safety and In view of these developments, I would security from want for their old age and like to speak to three questions that I believe for their families; in our case, safety and of interest to you: First, for what reasons security from the twin dangers of inflation and for what purpose did the Federal Reand deflation, the two deadly enemies of serve act? Second, does the action mean that rational financial planning. the Federal Reserve disagrees with the rest In trying to fulfill our duties, both your of the Government on the basic issues of Association and the Federal Reserve Sys- financial policy? And third, what is the tem must rely on the best information and significance of this action for the future? the most accurate analysis covering the First, I want to say that the Federal Reinnumerable factors that influence the de- serve acted because it believed that the prevelopment of our economy. It is therefore vious level of the discount rate and of time no coincidence that each of us has spon- deposit rates was out of line with conditions sored programs of basic economic research in the money and credit markets and especiand that the Federal Reserve has time and ally with the need to keep the flow of bank again benefited from the work of your Asso- credit large enough to satisfy the needs of ciation. I may mention in particular your our expanding economy but not so large as invaluable studies in the fields of savings, to threaten to turn that expansion into an capital markets, and interest rates. inflationary boom. I gladly take this opportunity to thank Second, the Federal Reserve acted not to hamper but to further the goal of the ad- 1 Remarks before the 59th annual meeting of the ministration—shared by the Congress and Life Insurance Association of America, New York City, December 8, 1965. by the American people as a whole—to do Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1670 FEDERAL RESERVE BULLETIN • DECEMBER 1965 the best that can be done to assure the con- tivity so that labor costs per unit of output in tinuance of our economic expansion, main- manufacturing have remained virtually untenance of generally stable prices, and res- changed. The American worker—with toration of reasonable equilibrium in our whose progress all of us are concerned—has international payments. shown great responsibility in negotiating And third, the Federal Reserve will con- wage settlements that help to insure a steady tinue to shape its policies with complete flex- rise in the real incomes of all Americans. ibility, firming whenever our further prog- Our record on international payments balress is threatened by inflation, and easing ance is fair enough, but less satisfactory than whenever that threat has passed. in the field of production and employment. The Federal Reserve, in all its actions, Over the first three quarters of the year, our aims always at the same goal: to help the deficit on so-called "regular transactions" economy move forward at the fastest sus- was at an annual rate of $1.75 billion—far tainable pace. We reach our destination most smaller than in any calendar year since 1957 rapidly as well as most assuredly when we but still far too large for comfort. We need travel at maximum safe speed—and this to do much better if we are to reach our speed cannot be the same under all condi- goal of reasonable payments equilibrium tions and at all times. next year, and especially if we wish to do so without further interference with the free- Actually, the recent increase in rates is dom of international transactions. intended not to reduce the pace of the economy's expansion but to moderate mounting But in the third critical area, maintenance demands for bank credit that might jeopard- of general price stability, our record has not ize that pace by overstimulating the econ- been so good as in other recent years. Whenomy. ever in recent years our economic growth was less rapid and our payments deficit A brief review of developments over the larger than we would have wished, we could past 12 months in the three critical sectors of be hopeful because our price level had reproduction and employment, the balance of mained stable. For we knew that such payments, and prices will provide backstability was a firm basis for further ecoground for our recent action. nomic expansion as well as for further prog- The production and employment record ress towards payments balance. But over of our economy has been excellent. Our inlittle more than 12 months, the crucial index dustrial output will be at least 7 per cent of industrial wholesale prices has risen about higher this year than in 1964, a significant 1% per cent, after 4 years of virtual gain by any standard. Employment has exstability. panded fast enough to reduce the unemployment rate by a full percentage point It is quite true that prices have not broken since October 1964. For the first time since out of the pattern of modest and selective 1957 it seems likely that we may soon reach advance in recent months. In order to avert our interim goal of pushing unemployment such an eventuality, the Government has down to, if not below, 4 per cent of our labor taken action relating to prices of a number of force. And despite such progress, average individual key commodities. But selective wages of production workers do not seem on intervention to deal with price pressures balance to have risen faster than produc- necessarily has limits. In the longer run, it Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1671 would be ineffective if not accompanied by by about 20 per cent. measures that affect the source of price pres- As long as unemployment of manpower sures rather than the prices themselves. and plant capacity was greater than could Unlike price pressures during the period be considered acceptable or normal, we had before 1958, recent price developments can- every reason to lean on the side of monetary not be explained by cost-push influences. As stimulus. While this posture did risk some mentioned before, unit labor costs have re- spillover of funds abroad, the adverse effect mained essentially stable. Such price pres- on our payments balance was more than offsures as are making themselves felt must be set by the benefit to our domestic economic primarily attributed to demand-pull. growth. And we have tried to combat exces- This fact should not cause surprise. The sive capital outflows by selective fiscal and closer an economy comes to full employ- monetary measures, including the voluntary ment of manpower and capital resources, foreign credit restraint efforts of our finanthe greater is the risk that bottlenecks will cial institutions, in which the members of develop in strategic areas so that large new your Association have so magnificently injections of bank credit and money will joined. serve to raise prices more than production. But despite the exemplary compliance of Whatever divergent views the experts may the financial community, and the dramatic take in regard to the ability of a central bank decline in the foreign credits of financial into control price pressures generated by cost- stitutions, foreign investments of nonpush, nobody has ever denied that it is the financial corporations were large enough to function of monetary policy to restrain price explain the persistence of our international pressures that originate from private de- payments deficit. As financial institutions mand. Hence, the threat to continued main- reduced drastically the availability of dollar tenance of the noteworthy price stability of credits abroad, and thus had more funds to the first 4 years of the present business ex- devote to domestic uses, their domestic cuspansion must be of concern to the Federal tomers were in a position to use part of the Reserve. newly available funds to finance their ven- I do not want to imply that monetary tures abroad. This is an example of the leakpolicy had ignored the problem before last age inherent in selective credit controls, an weekend. Since December 1964, the free indication of their limited effectiveness, and reserve position of member banks has a demonstration of why they can only serve changed from a moderate plus to a moderate as stopgaps rather than lasting remedies. minus—limiting the ability of banks to in- Our closer approach to a satisfactory level crease their credit creation. The interplay of domestic output and employment has between that degree of restraint and the diminished the weight of the arguments accelerating pace of economic expansion led against the use of general rather than selecin many—though not all—financial markets tive measures to help counter price pressures to increases in interest rates, well before the at home as well as to help correct our payrecent rise in discount and time deposit ments imbalance. Obviously, no one, and rates. But let us not overlook the fact that, least of all those of us responsible for despite such restraint, commercial and in- monetary policy, would ever want to do anydustrial bank loans have increased this year thing that could undercut the sustained prog- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1672 FEDERAL RESERVE BULLETIN • DECEMBER 1965 ress of the economy. But those who are remains sufficient to sustain, and be effifearful of the economic consequences of any ciently directed to sustaining, the econmove even towards the mildest restraint— omy's growth. any drop of free reserves below zero, any I realize that judgments can differ, not slight rise in interest rates—would do well only as to the substance of an action, but to consider the record of the economy's also as to its timing. To me, the effective performance over the past 12 months. time to act against inflationary pressures is Let none of us overlook the fundamental when they are in the development stage— difference between a change in interest rates before they have become full-blown and the imposed by a central bank contrary to the damage has been done. Precautionary meastrend of basic economic forces, and a change ures are more likely to be effective than permitted by the central bank in line with remedial action: the old proverb that an those forces. ounce of prevention is worth a pound of If the Federal Reserve had followed the cure applies to monetary policy as well as to advice offered by some and had tried to force anything else. It is simpler, for one thing, interest rates up at a time when the demand to try to prevent prices from rising than to for investible funds (even at existing rela- attempt to roll them back. And finally, it is tively low rates) was not sufficient to employ surer and safer: so long as inflation is our idle resources and to move our economy merely a threat rather than a reality, it is rapidly towards fuller employment, such a enough to prevent the pace of economic expolicy would indeed have harmed our pansion from accelerating dangerously. But domestic economy, and in consequence the once that pace has become unsustainably economy of the entire free world. Con- fast, then it becomes necessary to reduce the versely, if the Federal Reserve had strained speed, and once such a reduction is started, to keep interest rates from rising by pro- there is no assurance it can be stopped in viding reserves without limit at a time when time to avoid an actual downswing. funds borrowed from banks were beginning This is no mere theoretical reasoning. It to generate an aggregate demand in excess has been the practical experience of other of output from available resources, the industrial countries in recent years. Those Federal Reserve would again have become, countries that permitted inflationary trends in the words of one of my distinguished pred- to take firm hold have been forced to instiecessors, a veritable engine of inflation. tute harsh remedial measures to restore Recent developments in our economy— stability, and invariably they have had to pay mounting danger of price pressures, rapidly the price of actual reduction in output and climbing bank credit, and continuing deficit real income. We shall succeed in avoiding a in our payments balance—have been warn- "stop-and-go" cycle—as the British call the ing signals. And they have indicated that practice of first permitting inflationary presprevailing market rates of interest were be- sures to develop and then taking drastic ginning to distort the flow of funds through measures to suppress them—only if we do the economy. Our recent action has been not delay until inflation is upon us. designed to insure that the demands for One curious concern voiced in the press is credit do not reach inflationary dimensions, that our action might hamper the adminisand at the same time that the flow of savings tration in its efforts to introduce a "tough" Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1673 budget next year. Nonsense. I have every savings deposits. It has done so in order to confidence that the President will come up minimize the impact on competitive relationwith a budget for fiscal 1967 just as "tough" ships between commercial banks and savings as the necessities of the war in Viet Nam banks and savings and loan associations, permit. It is monetary policy that must adapt which depend for their resources mainly on itself to the hard facts of the budget—and funds deposited by individual savers rather not the other way 'round. than by corporations. I expect a continued Now I'd like to add something about our ample flow of funds into residential conincrease in maximum rates on time deposits. struction. This part of the action was designed to per- I hope this discussion will add to undermit the banking system as a whole, and the standing of the reasons and the purposes of smaller banks in particular, to expand their our action. But what about its relation to the resources sufficiently to provide the economy basic financial policies of the United States? with additional credit, especially medium- The administration has—rightly, in my and long-term accommodation. judgment—stated time and again that its In recent weeks, the rates paid by the goal was the most rapid economic progress largest banks on certificates of deposits had compatible with price stability and payments been "bumping" against the previous ceiling equilibrium. And the administration—no of AV2 per cent. This situation not only made less than the Board of Governors of the it difficult for those banks to add to their Federal Reserve System—has recognized, by resources; more important, it made it virtu- deeds as well as by words, that the dangers ally impossible for the smaller banks to add of spreading price increases and persisting to theirs, since these banks have to pay some payments deficits are the primary threats premium in order to attract new depositors to the achievement of that goal. in competition with the giants. In the monetary sphere, no less than in Let me emphasize that the new rate sets a others, the making of decisions—on the dimaximum, not a standard. We expect banks, rection of operations, on the precise timing both large and small, to exercise a high of actions, and on the precise choice to be degree of prudence and responsibility in their made among the instruments of policy use of this increased rate flexibility. If they available—is often difficult, but the necesdo, there now will be room for smaller banks sity of making these decisions is inescapable. to attract funds by paying slightly higher And in the monetary sphere, the Federal rates than the big ones. This opportunity for Reserve Act imposes the responsibility— smaller banks to compete more effectively is as well as the authority—for making deciboth economically advisable and socially sions upon the Board of Governors and the equitable. It makes for a better regional dis- Federal Open Market Committee. In the distribution of the availability of funds through- charge of our responsibility, and in the exerout the country; and it makes for a larger cise of our authority, we must—and we do flow of funds to small business, which is —give careful consideration to the opinions mainly dependent on the smaller banks for and judgments of others who also bear grave their credit accommodation. responsibilities. But the use of the authority The Board of Governors has purposely re- assigned to us cannot be delegated, nor can frained from raising the maximum rate for the responsibility we bear be escaped. To Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1674 FEDERAL RESERVE BULLETIN • DECEMBER 1965 promote effectiveness and to avoid inconsist- The Federal Reserve is not looking only at encies, we will always endeavor, to the best those data that seem to be warning of inof our abilities, to coordinate our moves with flationary pressures. It is also scanning the those of other agencies in seeking to achieve horizon just as carefully for indications of the common goals of economic policy. But weakness in the economy wherever it may be we cannot take monetary measures that are found—in residential construction, in invencontrary to our best judgment, or refrain tories, in employment, or in any other sector. from taking measures that we consider Moreover, monetary policy will always necessary. need to take into consideration other Gov- As I have said many times, the American ernment policies and especially fiscal polipeople, through the legislative process, can cies. Obviously, it will make a great differchange the authority and responsibility of ence for the development of interest rates, of the Federal Reserve System whenever they monetary and credit conditions in general, choose to do so. But unless and until and thus for the posture of monetary policy, the law is changed, I should consider it a whether the Treasury will need to divert violation of my oath of office to vote for or more funds from the private capital and against a policy measure for any reason credit market than last year or whether, on other than my best judgment of that measure the contrary, it will be able to reduce its on its merits. borrowing. Even if we knew how the private Now, in conclusion, a few words about economy would develop next year, we could the third question, concerning the signifi- not know whether any action that might be cance of our recent action for the future. needed would be taken in the fiscal sector I cannot repeat often enough that the or whether the main burden of policy action main requirement of monetary policy is flexi- would fall on the Federal Reserve. bility, the capacity for adaptation to changes For these reasons, I hope you will underin the economy as they develop. This is par- stand that neither I nor anybody else can ticularly true for monetary policy in times predict whether, in the future, conditions of prosperity. Whenever the economy ap- will be such as to require greater firmness or proaches full employment, the central bank greater ease, or for that matter a policy of must be constantly on guard against two op- neutrality. posite dangers that threaten continued ex- There is only one thing I can predict and pansion: not only against the risk of orderly promise. The Federal Reserve will do its growth giving way to an unsustainable utmost, within the limits of its powers, to boom, but just as much, if not more so, maintain a solid monetary and credit founagainst the risk of an upswing leveling off dation on which to build the economy's conand giving way to stagnation or downturn. tinued progress. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1675 STATEMENTS TO THE JOINT ECONOMIC COMMITTEE OF THE CONGRESS Statement of William McC. Martin, Jr., member bank reserves to grow in response Chairman, Board of Governors to the credit needs of a growing economy. It became increasingly apparent, however, that I understand that you have asked that the rate at which we were supplying reserves witnesses this morning confine their remarks to the banking system, even though it supto brief summaries of their views. In making ported a strong rise in the money supply and this brief statement, I speak for the majority in bank credit, was not enough to meet the of the Board of Governors. With your per- intense demand for credit at prevailing inmission, Mr. Chairman, I would like to offer terest rates. In response to this demand, infor inclusion in the record of these hearings terest rates rose in most financial markets. a copy of the Board's press release announc- As a result, money market rates rose above ing these actions.1 the discount rate, and time deposit rates The Federal Reserve acted because it be- pushed against the established ceilings, hamlieved that the previous level of the discount pering the efforts of banks to tap available rate and of time deposit rates was out of line funds to meet the mounting demand for with conditions in the money and credit credit. markets and especially with the need to keep The Federal Reserve faced a choice bethe flow of bank credit large enough to sat- tween (1) attempting to check or reverse the isfy the needs of our expanding economy rise in interest rates, by accelerating the rate but not so large as to threaten to turn that at which it was providing reserves to the expansion into an inflationary boom. banking system, or (2) raising the time de- The actions were taken not to hamper but posit rate ceiling to allow the economy to to further the goal of the administration— use more efficiently the funds already availshared by the American people as a whole— able and raising the discount rate to bring it to do the best that can be done to assure the more in line with market rates. We chose continuance of our economic expansion, the latter course, because we believed the maintenance of generally stable prices, and former course posed too great a risk to the restoration of reasonable equilibrium in our economy. international payments. A brief review of developments over the As we have sought to make clear from the past 12 months in production and employoutset, the recent increase in rates is in- ment, the balance of payments, and prices tended not to reduce the pace of our up- will provide background for this assessment swing but to moderate mounting demands of the potential effect of our actions on the for bank credit that might jeopardize that economy. pace by overstimulating the economy. The production and employment record of our economy has been excellent. Our in- Throughout 1965 the Federal Reserve dustrial output will be at least 7 per cent System has followed a policy that permitted higher this year than in 1964. For the first 1 For this press release, see pp. 1667-68. time since 1957 it seems likely that we may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1676 FEDERAL RESERVE BULLETIN • DECEMBER 1965 soon reach our interim goal of pushing un- be considered acceptable or normal, we had employment down to, if not below, 4 per every reason to lean on the side of monetary cent of our labor force. And despite such stimulus. While this posture did risk some progress, labor costs per unit of output in spillover of funds abroad, the adverse effect manufacturing remained virtually unchanged on our payments balance was more than offuntil recently, when they moved up some- set by the benefit to our domestic economic what. growth. And we have tried to combat ex- Our record on international payments bal- cessive capital outflows by selective fiscal ance is fair, but less satisfactory than in the and monetary measures, including the profield of production and employment. Over grams for voluntary restraint of foreign the first three quarters of the year, our deficit credits and investments. on so-called "regular transactions" was at an But despite the splendid cooperation of annual rate of $1.75 billion—smaller than the financial community, and the dramatic in any calendar year since 1957 but still too slowdown in foreign lending by financial inlarge for comfort. stitutions, foreign investments of nonfinan- But in another critical area, maintenance cial corporations were large enough to exof general price stability, our record has not plain the persistence of our international been so good as in other recent years. In the payments deficit. As financial institutions summer of 1964, the index of industrial reduced drastically the availability of new wholesale prices began to rise after 4 years dollar credits abroad, and thus had more of virtual stability, and has since risen 1.7 funds to devote to domestic uses, their doper cent. Consumer prices have risen 1.8 mestic customers were in a position to use per cent in the past year—again, a some- part of the newly available funds to finance what faster rate than prevailed earlier. their ventures abroad. This is an example of It is quite true that prices have not broken the leakage inherent in selective credit conout of the pattern of modest and selective trols. advance in recent months. In order to avert Our closer approach to a satisfactory level such an eventuality, the Government has of domestic output and employment has taken action relating to prices of a number diminished the weight of the arguments of individual key commodities. But selective against the use of general rather than selecintervention to deal with price pressures tive measures to help counter price pressures necessarily has limits. In the longer run, it at home as well as to help correct our paywould be ineffective if not accompanied by ments imbalance. Obviously, no one, and measures that affect the source of price pres- least of all those of us responsible for monesures rather than the prices themselves. The tary policy, would ever want to do anything closer an economy comes to full employ- that could undercut the sustained progress ment of manpower and capital resources, the of the economy. But those who are fearful of greater is the risk that bottlenecks will de- the economic consequences of any move velop in strategic areas so that large new in- even towards the mildest restraint—any jections of bank credit and money would drop of free reserves below zero, any slight serve to raise prices more than production. rise in interest rates—would do well to con- As long as unemployment of manpower sider the record of the economy's performand plant capacity was greater than could ance over the past 12 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1677 Let none of us overlook the fundamental Federal Reserve has been following of perdifference between a change in interest mitting money and credit to expand enough rates imposed by a central bank contrary to to satisfy the needs of our growing economy the trend of basic economic forces, and a but not so much as to threaten inflationary change permitted by the central bank in line disturbances. Until recently, this policy was with those forces. executed primarily through open market If the Federal Reserve had followed the operations, which brought about a reducadvice offered by some and had tried to force tion in the free reserve position of member interest rates up at a time when the demand banks from a moderate plus at the end of for investible funds (even at relatively low last year to a moderate minus. Now—as rates) was not sufficient to employ our idle happened twice before in the course of the resources and to move our economy vigor- present economic upswing—these open ously towards fuller employment, such a market operations have been supplemented policy would indeed have harmed our do- by increases in the discount rate and the mestic economy, and in consequence the maximum rate that member banks may pay economy of the entire free world. Con- on time deposits. These actions implement versely, if the Federal Reserve had strained our policy further; they do not change it. to keep interest rates from rising by provid- Your second point relates to the factors ing reserves without limit at a time when that entered into the Board's decision. These funds borrowed from banks were beginning factors include the rapid improvement in to generate an aggregrate demand in excess output and employment; persistence of the of output from available resources, the result deficit in international payments; the upwould clearly have been inflation. creep in prices; a build-up in credit de- We believe that we have managed to steer mands due to rising Government expendia constructive middle course between these tures over the rest of this fiscal year and to two policy extremes, providing a beneficial a considerably faster pace of expansion in degree of monetary stimulus when the econ- business investment during this same period; omy was slack and then gradually moderat- a declining trend in liquidity of both banks ing this stimulus as the expansion gained and nonfinancial corporations; and an instrength and demands began to press harder creasing difficulty encountered by banks in upon available resources. The Federal Re- expanding their lending capacity at then serve will continue to shape its policies with existing time deposit rates. flexibility, firming or easing as may be neces- Your third point relates to the effect of sary to help the economy move forward at the actions on the economy. In my judgment, the fastest sustainable pace. this effect will be beneficial. The actions Now I would like to take up the points should help to sustain progress in raising raised in your press release announcing output and employment by averting monetoday's hearing. tary overstimulation of the economy. They Your first point relates to the nature of should moderate the rate of expansion in the Board's actions, and suggests that the the demands for credit and at the same time actions represent "a most important shift" enable the banks—and especially the smaller in monetary policy. In my judgment, the banks—to attract deposits to help meet those actions simply extend the policy that the demands. These favorable consequences Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1678 FEDERAL RESERVE BULLETIN • DECEMBER 1965 should more than outweigh any additional inflationary expectations on the part of both costs of Treasury borrowing and the in- labor and management. If labor had had creased costs of credit to business. In fact, reason to fear a persistent substantial rise in in the longer run, the resulting increase in the cost of living, it would have felt comthese costs of borrowing would be very much pelled to seek compensatory increases in smaller than would be the rise in both bor- wages; and if management had had reason rowing and operating expenses that inflation to expect a general increase in the price level, would cause. it would not have felt compelled to resist Finally, you ask whether there was ap- such demands. In that case, wages would propriate coordination with the President. I certainly have risen faster than productivity; can assure you that the administration has prices would have been raised in consebeen kept continuously informed of the posi- quence; and the feared inflationary spiral tion of the Federal Reserve System and that would have become actuality. there has been a continuing frank exchange Our persistent deficit in international payof views between the Federal Reserve and ments has been greatly reduced but not elimadministration officials, both before and inated. In fact, the deficit this year will probafter the Board's actions. The administration ably be about midway between last year's and the Federal Reserve are equally dedi- level and full equilibrium. And even this cated to doing everything possible to assure limited success has been achieved only by the most rapid growth of our economy com- means of serious restraints upon the outflow patible with reasonable stability of prices of U.S. capital to foreign developed counand reasonable equilibrium in our interna- tries, in the form of a broadened interesttional payments. The administration has in- equalization tax and of a voluntary foreign dicated by its actions as well as by its pro- credit restraint effort by banks, other finannouncements that it considers price inflation cial institutions, and nonfinancial corporaand a persistent payments deficit to be seri- tions. The cutback in bank credits to ous dangers to continued domestic pros- foreigners so far this year has been larger perity. The actions of the Federal Reserve than the entire expected improvement in our will help to avert these dangers and thereby balance of payments from 1964 to 1965. will assist in achieving maximum employ- While the voluntary restraint effort, together ment, production, and purchasing power. with the interest-equalization tax, probably I should like now to discuss in more de- did not account for the entire change in the tail the factors that entered into the Board's flows of bank credit, it presumably played a decision, and the prospective effects of the crucial role. Hence, the restraints on capital actions upon the economy. flows, which are generally considered to be Over the past year, industrial production only temporary stopgaps, have been responhas increased 7 per cent, employment 4 per sible for a large part if not for the whole of cent, and personal income more than 7 per the improvement in our payments balance. cent. For the first time since 1957, we can We certainly will need to do better than that expect to see unemployment reduced to or in order to assure lasting payments equilibrium. below 4 per cent of the labor force. The gains in recent years have been facilitated, In the field of prices we have done less and indeed made possible, by the absence of well. The cost of living and the wholesale Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1679 price index have both risen faster than in ing on time deposit interest rates. Offering any other year since 1958. And the crucial rates of prime banks for certificates of deindex of industrial commodity prices has posit were at or near the ceiling, thus leavbegun to rise, after 4 years of virtual sta- ing smaller banks no leeway for offering the bility. It is true that prices have not broken premium necessary to induce corporations out of the pattern of modest and selective to entrust their funds to a less well known advance in recent months. In order to avert institution. Partly in consequence, the such an eventuality, the Government has growth of negotiable deposit certificates has taken action relating to prices of a number slowed in recent months to a small fraction of individual key commodities. But selective of the rate prevailing during the first 8 intervention to deal with price pressures months of the year. necessarily has limits. In the longer run, it Over the year banks have been obliged to would be ineffective if not accompanied by finance some part of their new loans to busimeasures that affect the source of price pres- ness by reducing their holdings of U.S. Govsures rather than the prices themselves. ernment securities and by slowing down their Recent developments in the financial sec- acquisition of securities of local governtor of the economy have indicated some de- ments. In the last 2 months the annual veloping threat of imbalance even more growth rate for bank holdings of securities clearly than have the persistence of our pay- of municipalities and Government agencies ments deficit and the movement in com- was 8 per cent, as compared with 17 per modity prices. cent in the first three quarters of the year. In October and November of this year, Since local governments depend heavily on bank loans to business rose at an annual rate bank financing, this decline threatened to of 11 per cent—substantially more rapid jeopardize the increase in capital outlays of than the increase in business activity. It is States and municipalities for schools, hostrue that this rate was much lower than that pitals, roads, and other installations needed of the unusually fast increase in the first half to provide our rising population with faciliof the year; but in the first half, credit de- ties commensurate with our rising standard mand was stimulated by the rapid build-up of living. of inventories in expectation of a steel strike, The decline in bank holdings of Governwhile in recent months steel inventories have ment securities was particularly serious bebeen liquidated. This liquidation is expected cause at the same time the liquidity of nonsoon to come to an end, and once accumu- financial corporations—and therefore their lation starts again, we can expect a substan- ability to increase their holdings of such tial increase in business loan demands, over securities—was being reduced. The marand above the present high level. ket's reception of the Treasury's refunding In order to accommodate the loan de- offerings in mid-November was indicative of mand, banks have attempted to increase the difficulties the Treasury was encountertheir lending resources in two ways: by add- ing in distributing its securities to investors. ing to their time deposit liabilities, and by All these factors brought upward pressure shifting their assets from securities into to bear on interest rates. And these pressures loans. But efforts to attract additional time increased although the Federal Reserve kept deposits were hampered by the existing ceil- the net borrowed reserve position of mem- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1680 FEDERAL RESERVE BULLETIN • DECEMBER 1965 ber banks roughly stable after the spring of satisfactory development of our economy 1965, adding about $2.5 billion of Govern- this year. ment securities to its portfolio in the process. Reflecting the intensity of credit demands, In recent weeks, two further developments however, interest rates in money markets made it evident that pressures on real and had risen above the discount rate. This refinancial resources would intensify. lation could not be permitted to last in- First, business plans to spend for plant definitely because it could stimulate an excessive resort by banks to borrowing from and equipment projected a considerably the Federal Reserve. faster pace of expansion than was previously Demand pressures have not been confined considered likely. The results of the Governto money markets. The issue of corporate ment survey, just released, document that securities also has greatly expanded, and is business outlays are scheduled to rise at an expected to expand further. Internal funds, annual rate of 15 per cent, at least throughand especially undivided profits, of manuout the first half of next year. Of late, actual facturing corporations have been rising more spending typically has exceeded the estislowly than their investments in plant, equipmates based on the surveys. ment, and inventory. The rising need for ex- Second, the course of the war in Viet Nam ternal financing has made it necessary for made certain a step-up in the rate of Governcorporations to increase both their borrowment expenditures. In consequence, Federal ing from banks and their recourse to capital needs for funds over the next few months markets. will be significantly heavier than expected All these considerations justify, in my only a few months ago. judgment, not only the substance of the Both these developments are adding to Board's actions but also their timing. At the pressures on financial markets. In this present, we can expect a modest rise in inenvironment the only way by which the terest rates to restore equilibrium between Federal Reserve could have averted a furthe flow of savings and credit demands. Dether rise in interest rates would have been to laying action further would probably have accelerate sharply its provision of reserves made it necessary to take stronger measures to the banking system. This would have been later. a serious departure from the course the Let me stress once more, in conclusion, Federal Reserve has been following, which that the recent actions of the Board have was designed to keep the rise in bank credit been, in my judgment, a further unfolding and money from becoming excessive. In my of a policy designed to keep the expansion judgment, the course of moderation the of credit in line with the needs of the econ- Federal Reserve has been following has omy, avoiding both inflationary and deflahelped to provide the financial basis for the tionary disturbances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1681 Statement submitted by J. L. Robertson, aggravated by the impending seasonal peak Member, Board of Governors.1 of money market pressures. Such action would insure undoubtedly that the heavy Reasons for opposing an increase in the volume of Treasury cash borrowing to be discount rate. Changes in monetary policy done in January would have to be undershould not be triggered by fear of prosperity. taken at substantially higher interest costs A prosperous and growing economy has to the Government. been the goal of public policies, and sub- If, for whatever reasons, a tightening stantial achievement in that direction in the action is to be initiated, it would be far pref- 1960's should be a cause of gratification erable to use a subtle rather than a slamrather than concern. It is not inevitable that bang method. An appropriately mild and inflation, boom, and bust must follow from indirect line of action might be to (1) the kind of prosperous performance the U.S. dampen bank issuance of promissory notes economy has been giving, and consequently by defining them as deposits; (2) hold Reguthere are no valid grounds for arguing that lation Q ceilings on time deposit interest tightening now is needed to forestall inflarates at existing levels for the time being; tionary developments that are sure to come and (3) take no action on the discount rate, later. expecting that banks would undoubtedly This is not to deny the need for very have to cover some portion of their net careful scrutiny of the progress of economic December loss of CD's by substantial temevents and a willingness to act to further porary resort to the discount window. This restrain credit if and as excessive demand combination of steps should serve to moderpressures actually emerge. I conceive of the ate somewhat the rate of advance in bank present as a time of delicate balance in the credit, while not triggering immediate execonomy. Supply and demand forces seem pectations of higher interest rates in the so tentatively poised that abrupt action to market and yet, at the same time, placing change monetary conditions could tip the banks in a position of dependence on the scales significantly—towards inflation if discount window that could lead fairly policy was actively eased, or on the other naturally to a more overt tightening of hand, towards recession if credit availability monetary policy should inflationary developwere sharply tightened. ments begin to appear. Financial markets have only recently Whether or not a breakout of inflationary calmed somewhat after being buffeted by pressures will in fact occur cannot now be rumors of an impending discount rate predicted. Accordingly, the best practical change. Such a rate increase now would course is to adopt a policy of "watchful waitcome as a distinct surprise, with reactions ing," meanwhile continuing to supply a reasonable flow of reserves to finance much- 1 Governor Robertson, who was unable to be presneeded economic growth. Despite large and ent, submitted two statements setting forth his reasons for opposing the Federal Reserve's recent decision to sustained expansion since the last recession raise both the discount rate and the ceilings on interest in 1961, a small but significant margin of rates payable on time deposits. The first statement was presented to the Board at the time action was taken human and real capital resources remains on the discount rate. The statement on maximum unutilized in this country. Further orderly interest rates was written after the meeting and was submitted for the Board's record. expansion in aggregate demand can effec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1682 FEDERAL RESERVE BULLETIN • DECEMBER 1965 tively employ some of these resources. The U.S. interest rates are already high by accompanying growth in credit and money historical standards, and I believe they are during this period has been orderly, and has generating all the credit restraint that ought contributed to over-all economic growth. to be attempted in the current delicate situ- Continued orderly credit expansion is ation. The Federal fiscal position will be needed if our economy is to move on up to shifting to a somewhat less stimulative policy the goal of sustainable full employment of for a time after the turn of the year, and we available resources. should be wary of imposing a coincident The price pressures to date from this eco- restraining influence from additional monenomic growth have been small and selective, tary tightening at this juncture. The approstemming mostly from worldwide shortages priate monetary policy for later in 1966 can of particular nonferrous metals, temporary be best judged after we have the benefit of scarcities of certain agricultural products, the official Federal budget message in and market-testing mark-ups in a few admin- January and see the public reaction thereto. istered-price industries. These are not the types of price increases appropriately dealt Reasons for opposing higher maximum inwith by a dampening of aggregate domestic terest rates. Governor Robertson dissented demand. The temporary nature of some of from this action generally for the same the recent increases is indicated by the fact reasons given for his dissent from the action that the rate of rise in the wholesale price to raise the discount rate. The latter action, index has already slowed since midyear from he assumed, was designed to tighten credit, an annual rate of 2 per cent to 1 per cent. in view of the rapid expansion of bank Meanwhile, recent successful administration credit; it surely was not designed simply to actions against aluminum and copper prices raise interest rates. However, in his view, reduce the likelihood of other administeredthe raising of the ceilings on interest rates price increases. payable on time deposits would—in virtu- The U.S. balance of payments performally the same breath—enable banks to ance does not now supply reasonable acquire more funds to expand their lending grounds for further monetary tightening. but at higher rates, and thus not serve to The chief burden for further improvement reduce bank credit expansion—if that were in the balance falls on other policies. The the aim. In addition, he felt, the larger banks allegedly interest-sensitive components are would be able to attract funds away from already performing very well under the discismaller financial institutions which did not pline of the Voluntary Foreign Credit Reactively engage in the issuance of time destraint program. I see no sign that this proposits but relied on inflows of savings and gram is weakening in so far as its influence on financial institutions is concerned. Cor- demand deposits with which to meet loan porate direct investment abroad, the cate- demands, or, alternatively, to force those gory of capital flow that has been least re- smaller banks to also engage in the risky duced to date, is notoriously insensitive to business of competitively bidding for highly changing general credit conditions in the interest-sensitive short-term funds with United States. which to make long-term loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1683 Statement made by George W. Mitchell, that as we achieve full employment, and are Member, Board of Governors in orbit so to speak, our efforts to expand aggregate demand should inevitably be Consideration of the issues involved in the limited by growth in productivity and the December 3 actions by the Federal Reserve labor force. Board must begin with the state of the econ- What is currently at issue is whether a omy and its prospects for the future. further shift toward restraint—and a spec- The current expansion, which has been tacular signal of the sort implied by a disgoing on since early 1961, received a new count rate increase—was needed. The difimpulse from the tax cut of 1964. Output ference in view on the appropriate monetary accelerated, unemployment declined, and policy at the moment is based on differences the capacity utilization rate rose; by the in judgment on three questions regarding the summer of 1965, unemployment was down recent and prospective performance of the to 4.5 per cent and an estimated 91 per cent economy. of manufacturing capacity was in use. Just 1. Does the nature of the price advances when there was some danger of a fall-off in we have had during the past year indicate the rate of expansion—as the steel wage that inflationary pressures are responsible? settlement led to an inventory run-off—the Food prices have risen significantly—but becommitment to greater involvement in Viet cause of supply conditions in agriculture. Nam provided a new impulse in the form of Several internationally traded commodities stepped-up Federal spending and the expec- have risen sharply—but because of political tation that more was in the offing. And we uncertainties and strikes in supplier counnow know that business outlays for plant tries and demand conditions outside as well and equipment have accelerated in recent as in the United States. months and are expected to forge ahead in Among industrial prices, increases have the first half of 1966. In the past year or so, been selective rather than widespread, and we have experienced some upward creep in more recently have tended to slow. In onewholesale prices after several years of vir- half of 70 industrial groupings, wholesale tual stability in that index. price changes since August 1964 have been within ± 1 per cent. These economic developments pose both As guides to monetary action, our price a promise and a challenge. The promise is indexes—both the consumer price index and that the economy continues to move steadily the wholesale price index—leave much to be toward full use of its labor force. The desired. The consumer price index accenchallenge is to achieve that goal and to maintuates the illusion of rising prices properly tain it without inflation. It is to be expected attributable to higher incomes and rising that differences of opinion regarding econconsumption standards. As pointed out in omic policy measures will assert themselves the Stigler Report, it does so by the upward in these circumstances. For my part, at this bias inherent in its treatment of quality time the highest priority attaches to a comchanges in goods and services. And the pubbination of economic policies that will ease lic tends to think of its consumption standthe economy onto a steady growth path at ards as constant and prices as rising, wherefull employment. I believe this can be done as a significant part of the "price rise" has with reasonably stable prices. I would grant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1684 FEDERAL RESERVE BULLETIN • DECEMBER 1965 purchased improved products and better labor costs have remained relatively stable. services. On this basis, I am not yet ready to agree The wholesale price index has its defects that there is no further room for comprestoo—mainly that it moves sluggishly and sion of the unemployment rate—with sigunderstates the magnitude of price adjust- nificant benefit to disadvantaged groups. I ments that are normal in our economy. In- would also stress, incidentally, that the age terpreting the movements in both these in- distribution of our population is such that dexes gives rise to many shades of opinion. there is little increase in numbers among the The price picture has changed in the past 30- to 45-year-olds. To achieve adequate year and expectations regarding prices may growth in the economy, our labor force also have changed. But the evidence on must grow, and for this we must absorb the prices does not, in my view, now call for younger entrants into employment. more monetary restraint than is already be- 3. The third question on which I would ing applied. like to comment concerns the rate of growth 2. The second question underlying the of bank credit. Many observers look at the current debate on monetary policy has to numbers—showing that bank credit has exdo with the rate of unemployment and the panded by about 10 per cent this year, while potentiality for reducing it further without gross national product has been increasing generating excessive upward pressures on at a rate of about 7 per cent—and conclude costs and prices. Those who regard 4 per that the economy is being oversupplied with cent unemployment, or 3 million persons, bank credit. This is a matter for analysis and as the approximate total of the frictionally judgment. In arriving at judgments on this unemployed and the unemployable, and who question, one must keep in mind that bank are especially impressed with the fact that credit statistics have become very difficult to the unemployment rate among married men interpret because of the significant expanis down to 2 per cent, may feel that we have sion in the role of commercial banks as achieved our employment goals and that any financial intermediaries. Commercial banks, further progress in reducing over-all unem- by offering negotiable certificates of deposit ployment cannot come from aggregate de- and other new savings instruments, have in mand. I am not one of those. And I would recent years captured a larger share of the not choke off growth of aggregate demand flow of funds on their way from savers to if it risked committing a million or more borrowers. This enlargement in the banking workers, many of them young and the most system's share of the savings flow necesrecent products of our educational system, sarily brings with it a much more rapid to the dole or a new category of welfare growth of bank assets than would flow from dependence. the 4 per cent increase in demand deposits There is no doubt that shortages of that occurred. skilled labor are being felt at various points The question whether credit expansion is in the economy. On the other hand, I re- excessive because of monetary creation has member clearly that many observers a year no easy answer. It is significant, however, and more ago were doubtful that unemploy- that the rate of growth of bank credit has ment—then about 5 per cent—could be re- declined in the course of this year, from an duced further by expansion of aggregate de- annual rate of over 12 per cent in the first mand. Yet it has been reduced and unit quarter to less than 5 per cent in the third. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1685 This points up the fact that the posture of The recent increase in the discount rate monetary policy has changed in 1965, has been interpreted by the public as a deespecially in the second half. In the recent cisive shift toward more restrictive monetary preoccupation with the discount rate little policy. And it may prove to be so. A higher attention has been given the shift in mone- discount rate can influence future open martary policy toward greater restraint brought ket policy toward greater restrictiveness, inabout by open market operations. That sofar as the policy-makers come to regard the monetary policy has become more restrictive new discount rate as the level toward which over a period of months is evidenced in the Treasury bills and other money rates should advance in interest rates on public and gravitate. This is one of the reasons I opprivate securities of all maturities since the posed the discount rate increase last week. spring of this year. Long before the discount It seems to me that such an action, given rate action, Treasury bill yields had risen— its announcement and psychological effects, from 3.8 per cent in the early summer to should have awaited, and been coordinated 4.1 per cent at the end of November; long- with, other Government decisions to be term Government bond yields had risen— taken over the next several weeks and to be from 4.14 per cent in June to 4.34 per cent announced in the Budget and the Economic in late November; the yield on new issues Report. Such consultation and coordination, of high-grade corporate bonds had risen— in my view, would not in any way have been from 4.50 per cent in the spring to about inconsistent with the independence of the Federal Reserve. 4.75 per cent in late November; and mort- The issue of independence of the Federal gage yields had also begun to move up. Reserve calls for a brief comment. In my Recent public discussion of Federal Review, independence of judgment is much serve actions has largely ignored the fact that more than a matter of legal right, for laws open market operations—not discount rate can be changed. Real independence, the only policy—are the principal instrument of Fedenduring kind, rests on wise and responsible eral Reserve policy. The major task of the behavior. The measure of independence that Federal Reserve is to regulate the volume the System has retained over the years reof bank reserves, which affects the rate of flects its sparing use of dissent and the care expansion of bank credit and money, and and skill with which the System's views have thereby influences interest rates and other been negotiated, mainly by the Chairman, in credit conditions. The discount rate has imcontroversial analyses and judgments. I portant psychological and announcement might add that a similar sort of independeffects, but the real muscle in monetary ence is found within the Federal Reserve policy will be found in the open market where individual policy-makers prize and actions that follow. Thus the impact of use, as I did last December 3, the right to monetary policy on the economy in the dissent. weeks and months ahead will depend more Turning now to a matter on which I did on the open market policy to be followed not dissent, the increase in maximum rates than on last week's discount rate action. And payable on time deposits was justified, in open market policy should, in turn, depend my view, whether or not the discount rate on the strength of the private economy and was advanced. This move must be viewed on the impact of fiscal policy. against the background of the past several Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1686 FEDERAL RESERVE BULLETIN • DECEMBER 1965 years in which we have witnessed what could offsetting tendencies for money market be called a "revolution" on the liability side yields to rise and making it possible for of bank balance sheets. Banks have been banks to sell CD's within the existing ceiling transformed from relatively passive accep- to replace CD's maturing this month. But the tors of deposits to competitively active seek- continuation of such a policy into next year ers of deposits. While this situation must be might well have required too rapid an inunder constant surveillance so as to guard crease in bank reserves and consequently against imprudent lending, more active com- too rapid a rate of monetary and credit expetition from banks should be a benefit to pansion, given the strength of aggregate dethe economy. mand. In the current circumstances, rates on ne- In brief summary, my position on the gotiable certificates of deposit were pressing posture of monetary policy in the current the ceiling. It seemed desirable to remove changing circumstances is that the discount this impediment to competition among banks rate action could have been delayed, to and to the free flow of funds. This does not await coordination with other Government mean that I sought or expected a substantial policies. My willingness to delay discount upward adjustment of short-term interest rate action in this way is based on the fact rates in response to the raising of the ceiling. that monetary policy has already tightened, It does mean that I saw the need for more on the lack of evidence that inflationary leeway for banks and for them to know that pressures are strong or accumulating, and on they could offer higher yields, if necessary, the belief that we should continue to set high as they sought funds. standards for the performance of the econ- On past occasions when Regulation Q omy and, especially, for the reduction of unceilings were raised—actions in which I also employment. concurred—banks put their enlarged flows of deposits to work in purchasing mortgages and State and local government securities, with downward adjustment in the interest rates on these obligations. There is little scope for such downward interest rate move- Statement made by Sherman /. Maisel, Member, Board of Governors ment now, but there was a danger, before the ceiling was raised, of a sharp rise in rates if the inability of banks to continue to attract I am pleased to have the privilege of aptime deposits forced them to limit further pearing before the Joint Economic Committheir acquisitions of municipal securities and tee. The Employment Act of 1946 and the cut back on mortgage lending. knowledge developed in the reports and The month of December usually witnesses hearings of this committee have made major an exceptional concentration of money contributions toward the rapid, orderly, nonmarket pressures. I do not claim that a rise inflationary growth of the U.S. economy and in Regulation Q ceilings was essential to see toward better public understanding of the the money market through this period. problems involved in maintaining such Rather, the provision of reserves by the Sys- progress. tem could have accomplished this task, by I also welcome this opportunity because Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1687 I believe the independence of the Federal (1) No sound decision was possible without firm information on the Federal budget. A delay Reserve System to be a keystone in our of 1 month to await such knowledge could do economy's proper functioning. Maintenance little harm. It would enable us to make a much sounder choice. of independence is possible only with full (2) To act without far more effort at obtaining public support. Hearings such as this give agreement on a coordinated monetary, fiscal, the Federal Reserve System an opportunity and wage-price policy was wrong. The method and timing of the discount rate increase deto explain the complexities of monetary creased its hoped-for impact. It threatened to policy. They enable the System to report on introduce undesired, inflationary side-effects. It made the future development of sound fullits stewardship while helping the people of employment policies more difficult. Unilateral the United States to shape their views as to action could only weaken the President's leadership in a critical war period. a proper monetary policy. (3) Two major reasons cited by the majority for I am sorry that as a result of these hearimmediate action are, I believe, based on faulty ings internal conflicts will receive wide pub- theoretical reasoning. Their continued use as a basis for policy can only do harm. licity. However, the action of the Board rais- (4) In departing from its normal and publicized ing the discount rate was significant and policy of not making discount moves in adworthy of a report to the country. I trust vance of the market, the Board invested its recent decision to curtail credit expansion and that the net results will be positive. I hope raise interest rates with an urgency that I feel we will gain a better understanding of past was unwarranted. action plus improved policies for the future. If I may, Mr. Chairman, I would like to Agreements and disagreements. I was some- expand on each of these four points. what unhappy about the action taken by my A month's delay seemed advantageous. It fellow Board members on December 3. can be no secret that, like people through- However, I want to make it clear that my out the country, every Board member has dissent was not based on some of the reasons diligently watched each critical economic carried in the press. I do not fear that at this variable. Growth this year has been exceltime higher interest rates will lead to an im- lent. Unemployment has decreased toward mediate depression or deflation. I respect our interim goal. Our balance of payments the motives of all my fellow Board members. has moved toward equilibrium, but not so Each voted according to his own view of how rapidly as some hoped. Price pressures have a better economy could be achieved. The exceeded those in recent years. Credit exaction was deliberate. Its timing did not arise pansion was high. from political or other ulterior motives. An The strains of growth have been severe. attempt to characterize the votes as based on Continued progress toward full employment a belief in "hard money" or "easy money" is is bound to bring further pressures. Still, in not helpful either. Each member clearly prices, wages, and credit, distortions have based his vote on how he believed the Board been less than would be expected for a period could best insure sound money and sound of such rapid expansion. For example, in growth for the economy. nonfood commodities (those most likely to I disagreed on positive grounds. I felt that be influenced by monetary policy) we note a discount increase at this time was prema- that although the rate of increase since midture. Furthermore, this action posed a net year is slightly over 1 per cent a year, wholethreat to long-run price stability. More spe- sale prices are only 1 per cent higher than cifically I concluded that: 6 years ago. Nonfood commodity prices in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1688 FEDERAL RESERVE BULLETIN • DECEMBER 1965 the consumer price index rose about 3 per price movements for the next several months cent in the 6-year period. Their increase in appeared to be the relative expansion rates the past year was 0.7 of a per cent. The U.S. for total demand and potential output, exprice stability record in this period far sur- pectations, and the success of the President's passes that of almost every nation in the price and wage programs. Price movements world. of the past year could be considered as nor- The credit picture has been mixed. The mal and logical, given the rapid rate of exmajor credit indexes show a high general pansion. They offered no evidence as to how rate of expansion in the first part of the year. prices might react in a period of steady ex- From June through November, however, pansion at full employment. Most projections of demand and supply commercial bank reserves held in the Sysavailable when the Board made its decision tem decreased. An economy expanding at a were in balance. In all forecasts, however, rate of over 7 per cent annually received no a recognized critical problem was inexact additional reserves. knowledge as to next year's growth rate for Because existing reserves shifted to sup- Federal expenditures and revenues. Dependport time deposits attracted from other saving on growth in the Federal budget, the ing sources, total commercial credit concountry's demand might expand either more tinued to expand. The rate, however, was slowly or somewhat faster than capacity. slower than in the first half of the year or The Federal Reserve had no special inin the two previous years. Other individual formation as to likely changes in the budget. measures of credit showed differing reactions Since, in attempting to formulate a correct to the lowered reserves. Almost all grew policy for next year, the budget figures are more slowly than in the first half and most critical, it seemed to me improper to make a at rates below previous years. drastic monetary change until this informa- As a result of this moderate credit retion became available. Reinforcing this straint, interest rates rose sharply. On Dereasoning was the fact that although a 1cember 3, rates on short-term Governments month delay was technically feasible, an inwere about a half a percentage point higher crease in discount and interest rates would than earlier in the year. Corporate and be irreversible for a considerable period. The municipal bonds had risen about as much, arguments for immediate action seemed while long-term Governments were up over weak. a third of a percentage point. All rates were Need for coordination. A more significant close to their 30-year highs. reason for urging a delay than incomplete On the whole, one could conclude on information was my belief that this action December 3 that the price and credit pic- failed to give sufficient weight to the necestures showed signs of pressure arising partly sity for a proper coordination of fiscal, from higher demand and partly from a slow- wage-price, and monetary policies. ing in the rate of credit expansion. While It would be interpreted by many as an unwanted price increases threatened, the co- attack by the Federal Reserve on the naoperative effort to hold the wage-price level tional consensus or program for meeting undertaken by labor, industry, and the Gov- price pressures. Some would feel that the ernment seemed to be working. Board was assailing recent Governmental The critical forces that would determine policies. Others would assume that the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1689 did not accept maximum full-employment get a coordinated program. The Board's growth with stable prices as a national goal. freedom to act requires that it use respon- Raising the discount rate would be inter- sible statesmanship in achieving better ecopreted as a view by the Board that because nomic policy. full employment increases inflationary prob- History has shown that dividing the monelems, restrictive monetary policy must be tary from the fiscal functions of government invoked at its mere approach. is wise. Otherwise the creation of money to More important, I felt that a failure to fill the public purse can become an engine coordinate was an irresponsible use of our of inflation. Because the Federal Reserve independence. It reduced the choices on na- has a unique responsibility for maintaining tional policy available to the President. We monetary integrity, we must work as hard were informing him that monetary policy as possible to make certain that it is used would be tighter, leaving him to adjust fiscal properly. and wage-price policy accordingly. The costs of conflict between monetary, Many people recently have argued that fiscal, and wage-price policy are high. the country can achieve a proper level of Achieving sound policies that will enable total demand by a policy of high interest our economy to grow with stable prices at rates offset by high budget deficits. They full employment is a most difficult task. In point out that each dollar of demand cur- such decisions the Federal Reserve System tailed by higher interest rates can be offset has a vital role. It must remind other agenby a budget deficit. As a fiscal conservative cies of the need for monetary probity and and a believer in leaving the maximum of must insist that the value of the dollar be choices to our market economy, I dislike maintained. However, our independence and this theory. right to act should be used primarily as a I personally think that, in the current valuable ace in the hole. An unnecessary situation, adjustments through fiscal policy use of power may dangerously weaken the might be more advantageous. The country System. The weapon of independence is may be better off with lower deficits and clearly a major bargaining force. However, lower interest rates. If demand is great because monetary and fiscal policies are enough, we may need a budget surplus. In- necessarily interdependent, national goals creasing interest rates primarily penalizes may more easily be achieved if the ability growth and improvements in urban life. It to act leads to a coordinated program rather tends to restrict modernization of plant and than independent action. Weapons held in equipment, growth in housing, and the ex- reserve may be more powerful than those pansion and rebuilding of vitally needed committed at the earliest sign of conflict. State and local improvements. It increases It also seemed clear that a precipitate the Federal deficit. It makes the task of the action by the Board in the light of recent small businessman more difficult. history would decrease its hoped-for defla- But more important than my own beliefs tionary impact. People might mistakenly beis the fact that I dislike attempting to im- lieve that the action was taken on far firmer pose them unilaterally on other parts of the grounds than it was. They might assume that Government. I would have preferred to ex- the Board was convinced that inflation was plore all possible channels in an attempt to imminent. This sudden action could easily Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1690 FEDERAL RESERVE BULLETIN • DECEMBER 1965 cause a rise in expectations and a sharp run- crease the undesired price-increasing sideup in demand. Others might not understand effects at the expense of the hoped-for dethe significant difference between banks flationary impact. A delay of a month to raising their prices and unions and other in- enable the Government to announce a unidustries doing likewise. They might feel justi- fied policy would greatly increase the effecfied in demanding higher wages or prices. tiveness of the Board's action. To some people's surprise my views on Improper reasons. I am also concerned bethe requirements for evaluating the total cause it appears to me that the reasoning (both direct and side-effects) results of this and action of the majority tend to enthrone interest rate action have been highly influ- as causes for monetary restraint two pieces enced by Senator Robert Taft. As a member of theory that I feel are invalid and danof your Committee, he pointed out on nu- gerous precedents. These are: (1) the conmerous occasions that tax (and by implica- tinuing use of higher interest rates in the tion, interest) increases have three separate U.S. economy for balance of payments purinfluences. (1) Demand is decreased, thus poses; and (2) the concept that one must tending to reduce prices. (2) Costs are act in advance of changes in demand for raised, tending to raise prices. (3) The fear that once demand starts to grow it can changed situation (announcement effect) be contained only with much higher sacrimay lead to independent price increases. fices. Most people concerned with the discount I have previously stated my views on the change stress only the first factor: that is, balance of payments argument. The United that higher interest rates make credit more States is doing extremely well in restraining expensive. People decrease their desires to interest-sensitive items through present propurchase equipment, plants, houses, autos, grams. Further rate increases might simply and so forth. The lowered demand for goods be matched again overseas. Indeed, higher means a lowered demand for employment. rates may have a perverse effect. U.S. in- There is less pressure for wage and price terest payments abroad would rise immehikes. diately. Higher financing costs would make In addition though, we all recognize that our exports less competitive. Slower growth interest is a cost of doing business. Gross in this country might make direct investinterest payments in this country total about ments abroad—our chief problem area— $70 billion a year. Raising a cost must have look even more inviting. some influence on prices. The traditional belief in higher interest The announcement effects are expected rates for balance of payments reasons asto be mixed. However, any procedures that sumes either (1) rates high enough to raise raised expectations or decreased the ability unemployment sufficiently to curtail imports of the administration to maintain its wage- or (2) interest high enough to change capiprice guidelines would diminish the desired tal flows. No one admits to desiring the first price influences. path. The second path I regard as dangerous It seemed clear to me that the method and almost impassable. used by the Board of raising the discount When the discount rate was raised, the rate failed to coordinate monetary, fiscal, President was in the process of announcing and wage—price policy. It was bound to in- a revised balance of payments program de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE POLICY ACTIONS 1691 signed to bring about the necessary return rate change should be avoided. The Board to equilibrium. I believe the President's pro- has had an established policy of letting disgram was proper and sufficient. The con- count rate changes follow the market. It has stant use of balance of payments as a theme stated that it rarely deviates from this policy to raise interest rates can only have a most unless it desires to stress the importance of unfortunate long-run impact. the change and to obtain a magnified effect. I am not certain I understand the argu- The disadvantages of decreasing credit at ment that it was impossible to delay action this time seemed sufficiently great. I saw no for a month or until sufficient information special circumstances requiring a break with about demand, prices, and credit became traditional policy. available. This is contrary to what we know In addition to all other disadvantages the about most decision processes. As I under- rate change method, together with the stand this reasoning, it holds that delays and change in Regulation Q, made it possible small infusions of additional credit are ex- that the level of credit and demand would tremely dangerous. They lead to highly mag- be raised rather than lowered. The System nified inflationary conditions in the future. would have to furnish additional reserves for The use of credit gains momentum and runs the transition period. A shift from demand away after some critical point. to time deposits would mean that the exist- We must admit that anything, including ing reserve base could support a credit exsuch results, may be possible. However, most pansion. As a result, the action would bring people who have studied our monetary sys- higher interest rates, but at least initially tem carefully believe such a situation is ex- an undesired increase in real demand could tremely unlikely to occur. A large-scale occur. credit expansion without added reserves Given the expressed desire to curtail credit would require peculiar types of disconti- rather than to ratchet the interest rate strucnuities in our monetary system. There is no ture upward, a more traditional and simpler indication they exist. They have not ap- approach appeared preferable. The System peared in the past. I spent considerable time could simply determine not to furnish additrying to track down the basis of this idea. tional reserves and not to raise Regulation No one I asked on our staff or among mone- Q. The discount window could have been tary historians or theorists could find any opened wider to meet urgent needs. Borsupport for this doctrine. rowed reserves have been low by past stand- I concluded that neither the idea of a ards for periods of restraint. Tighter money critical mass of credit nor the balance of pay- and larger borrowed reserves would have ments argument was a proper basis for policy led to higher rates, which could then have decisions. been ratified by a later discount rate change. The method of curtailing credit expansion. This would have avoided the uncertainties When it became evident that a majority of and misunderstandings of the present situathe Board felt that a curtailment of credit tion. There would have been time for cowas desirable, a question arose as to the best ordination with the fiscal authorities. If no method of procedure. This is clearly far more agreement was possible, there at least could a question of judgment than of analysis or have been an announcement of a joint agreeof values. I felt that an immediate discount ment to disagree. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1692 FEDERAL RESERVE BULLETIN • DECEMBER 196S Mr. Chairman, this concludes my state- employment. However, the potential gains ment. I want to make it clear again that to our national welfare from the successful while I believe the discount rate change at development of policies that will allow rapid this time was incorrect policy, it is a move expansion with stable prices are enormous. I that can and will be absorbed by the econ- hope that we can think of this action as beomy without causing an immediate reces- hind us. Now it is time to try again to work sion. out a better coordinated use of all types of We must recognize our limited experience policies that can help in achieving our nain operating for any length of time at full tional goals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Revised Guidelines For Banks and Nonbank Financial Institutions Since inception of the voluntary foreign foreign credits outstanding to an amount credit restraint effort, immediately following not in excess of 105 per cent of the amount announcement by the President of his bal- outstanding at the end of 1964, and each ance of payments program in February nonbank financial institution was requested 1965, commercial banks and other financial to operate within a framework roughly simiinstitutions have contributed substantially to lar to that suggested for banks. the improvement in the nation's payments For the year 1966 the guidelines for both position. This has been accomplished by the banks and nonbank financial institutions high degree of cooperation and statesman- have been revised to suggest limitations on ship exhibited by the financial community expansion of foreign credits that are comin restraining the growth of (and in some parable to the limitations suggested for instances reducing) claims on foreigners in 1965. These will permit some further expanaccordance with guidelines issued by the sion in such credits, and provide for vari- Board of Governors of the Federal Reserve ations to remove certain inequities inherent System. in the 1965 program. Although considerable progress has been Notwithstanding the fact that the banking made and although the voluntary restraint system as a whole is presently well below the program is temporary in nature, perse- suggested target for 1965, this additional verance by financial institutions in the pro- expansion has been allowed for two reasons: gram through 1966 is necessary to attain (1) it is believed that banks will continue the goal of equilibrium in the nation's bal- to cooperate with the spirit as well as the ance of payments and represents the appro- letter of the program and will utilize the priate response to the President's message expansion suggested only to the extent of February 10, 1965, in which he issued needed to meet priority credit requirements; a personal "call on American businessmen and (2) it is intended to make certain that and bankers to enter a constructive partner- export financing is available in adequate ship with their Government to protect and amounts, and that the bona fide credit needs strengthen the position of the dollar in the of less developed countries will continue to world today." be met. The main feature of the guidelines for Continued restraint on the increase in 1965 has been a percentage limitation on foreign credits is the basic objective of the increases in foreign credits from the base bank program for 1966. Generally speaking, date of December 31, 1964. In general, commercial banks are requested to restrain each bank was requested to restrict its any expansion in foreign credits to such an 1693 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1694 FEDERAL RESERVE BULLETIN • DECEMBER 1965 extent that the amount outstanding at year- ments in developed countries other than end will not exceed 109 per cent of the Canada and Japan are subject to a ceiling amount outstanding on December 31, 1964. of 105 per cent of the September 30, 1965, Further, in order to spread throughout the amounts during 1966; this base was selected year any outflow necessary to meet priority because retroactive use of a 1964 year-end credit requirements, it is requested that the base might have been inequitable for some amount outstanding not exceed 106 per cent institutions. of the 1964 base during the first quarter, As in 1965, financial institutions are re- 107 per cent during the second, and 108 per quested to give priority to export credits cent during the third quarter. Special con- and credits to less developed countries. In sideration for banks with small bases will instances where the special base and ceiling add 1 per cent or less to the total, bringing calculations for banks with small bases the potential amount outstanding at the end result in a ceiling in excess of 109 per cent, of 1966 for the banking sysem as a whole it is requested that the amount in excess to about 110 per cent of the 1964 base as of 109 per cent of a bank's base be used compared with the 105 per cent target for exclusively for such priority credits. The lee- 1965. way for additional foreign credits provided The guidelines for 1966 for nonbank by the 1966 guidelines plus the funds availfinancial institutions have been revised to able from repayments on outstanding credits reflect provisions broadly comparable with will provide larger resources than last year those of the bank guidelines. Investments of to finance an expanded volume of exports liquid funds abroad are to be held to mini- and to satisfy credit requirements of less mum practicable levels and ordinarily developed countries. should not be permitted to exceed the re- The guidelines for banks and nonbank duced September 30, 1965, total. Invest- financial institutions follow.1 ments in credits maturing in 10 years or less and in foreign branches and financial sub- 1 Previous Guidelines for Banks and Nonbank Fisidiaries are subject to the same ceiling as nancial Institutions were published in the following BULLETINS this year: March, pp. 371-76; April, p. 532; suggested for the banks. Long-term invest- May, p. 685; July, pp. 944-46; and August, p. 1105. Guidelines for Banks (1) Base, ceiling, and reporting outside the United States, irrespective of (a) Base citizenship, except their agencies or branches 1. The base is a bank's total claims on within the United States; branches, subforeigners for own account, including sidiaries, and affiliates of U.S. banks and foreign long-term securities, on December other U.S. corporations that are located in 31, 1964, except for the exclusion in (a) foreign countries; and any government of a 3 below. foreign country or official agency thereof 2. Meaning of terms: and any official international or regional (A) "Foreigners" include individuals, institution created by treaty, irrespective of partnerships, and corporations domiciled location. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 1695 (B) "Long-term securities" are those but less than $5 million, may use the followissued without a contractual maturity or with ing special ceiling: an original maturity of more than 1 year (A) In the first calendar half, its base from the date of issuance. plus $225,000; (C) "Other claims" include all long-term (B) In the second calendar half, its base claims other than securities, real assets, net plus $450,000. investment in and advances to foreign 3. The ceiling for a bank with a base branches and subsidiaries, and all short-term below $500,000 is 150 per cent of its base. claims (such as deposits, money market in- However, any such bank, or a bank which struments, customers' liability on accept- had no foreign credits outstanding on ances, and loans). December 31, 1964, may discuss with the 3. Specific inclusions and exclusions: Federal Reserve Bank of the Reserve district (A) Claims on foreigners should be in- in which it is located the possibility of adoptcluded without deduction of any offsets. ing a ceiling that would permit expansion Foreign customers' liability for acceptances up to $450,000 above the bank's base. executed should be included whether or not 4. In discussing the ceiling of a bank the acceptances are held by the reporting described in paragraph 3, the Federal Rebank. Participations purchased in loans to serve Bank will ascertain the bank's previous foreigners (except participations in loans history in foreign transactions, including extended by the Export-Import Bank) also acceptance of foreign deposits or handling should be included. foreign collections, and the reasons why the (B) Contingent claims, unutilized cred- bank considers it should have additional leeits, claims held for account of customers, way. Prior to a decision, the Federal Reserve acceptances executed by other U.S. banks, Bank will obtain clearance from the Board and participations in loans arranged by or of Governors. guaranteed by the Export-Import Bank or 5. Any expansion under paragraphs 2 or insured by the Foreign Credit Insurance 3 that is in excess of 109 per cent of the Association should be excluded. bank's base should be limited to loans or (b) Ceiling acceptance credits that finance exports of 1. The 1966 ceilings with respect to the U.S. goods or services or that represent amount of foreign credits outstanding by credit extended to less developed countries. a bank with a base of $5 million or more Export credits should be limited to transare as follows: actions orginated by the bank's regular cus- (A) In the first calendar quarter, 106 tomers or by residents of its normal trade per cent of its base; territory. Such expansion should not involve (B) In the second calendar quarter, 107 (A) participations in loans originated by per cent of its base; other banks or purchases of such loans, (B) (C) In the third calendar quarter, 108 investments in foreign securities, (C) deper cent of its base; posits in foreign banks, or (D) investments (D) In the fourth calendar quarter, 109 in foreign short-term money market instruper cent of its base. ments. 2. In lieu of the ceiling prescribed in (b) (c) Reporting 1 above, a bank with a base of $500,000 1. Banks that report on Treasury Foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1696 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Exchange Form B-2 or B-3 should file a that drawings under credit lines are kept to Monthly Report on Foreign Claims (Form normal levels and usage. At time of renewal, F.R. 391) with the Federal Reserve Bank each credit line should be reviewed for conof the Reserve district in which the bank is sistency with the program. located. A bank whose foreign credits are in excess 2. Banks that have claims on foreigners of the ceiling will be invited periodically to in an amount of $100,000 or more and do discuss with the appropriate Federal Reserve not report on Treasury Foreign Exchange Bank the steps it has taken and proposes to Form B-2 or B-3 should file a Quarterly take to reduce its credits to a level within Report on Foreign Claims (Form F.R. its ceiling. 391a) with the Federal Reserve Bank of (4) Loan priorities the Reserve district in which the bank is located. Within the ceiling, absolute priority 3. Copies of Forms F.R. 391 and 391a should be given to bona fide export credits. are available at the Reserve Banks. Credits that substitute for cash sales or for sales customarily financed out of nonbank (2) Loans involving Export-Import Bank or foreign funds are not entitled to priority. Participations in individual export loans With respect to nonexport credits, banks arranged by the Export-Import Bank, loans should give the highest priority to loans to with Export-Import Bank guarantees or in- less developed countries and should avoid surance, and holdings of "Export-Import restrictive policies that would place an un- Portfolio Fund" participations are excluded due burden on Canada, Japan, and the from the ceiling. The role of the Export- United Kingdom. Import Bank within the framework of the It is expected that the outstanding amount President's program is coordinated by the of nonexport credits to developed countries National Advisory Council for International in continental Western Europe would not Monetary and Financial Problems. be increased during 1966 but rather would be reduced to the extent needed to meet (3) Credits in excess of ceiling bona fide requests for priority credits within A bank would not be considered as acting the over-all ceiling. in a manner inconsistent with the program Without attempting to specify all types of if it at times exceeds its ceiling as a result loans that should be restricted, it is obvious of the (a) drawdown of binding commit- that credits to developed countries that can ments entered into before February 11, be cut back with benefit to our balance of 1965; or (b) extension of priority export payments and with the least adverse sidecredits. effects include: credits to finance third- The bank should, however, reduce its country trade, credits to finance local curclaims on foreigners to an amount within rency expenditures outside the United States, the ceiling as quickly as possible. It should credits to finance fixed or working capital also take every opportunity to withdraw or needs, and all other nonexport credits to reduce commitments, including credit lines, developed countries that do not suffer from that are not of a firm nature and to assure balance of payments difficulties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 1697 (5) Banks whose foreign credits consist due from such branches) represent bank almost entirely of export credits credit to nonresidents for the purposes of the program. A bank whose foreign credits are consistently composed almost entirely of export (9) "Edge Act" corporations credits usually should keep its credits within "Edge Act" and "Agreement" corporaits ceiling. If such a bank exceeds its ceiling tions are included in the voluntary credit from time to time, it would not be conrestraint program. Foreign loans and investsidered as acting in a manner inconsistent ments of such corporations may be comwith the program if the amount of such bined with those of the parent bank or a excess is reasonable and the bank makes separate ceiling may be adopted for the every effort to bring the amount of its credits parent bank and each such subsidiary corpoback within the ceiling at the earliest ration. If such corporation is owned by a practicable date. bank holding company, its foreign loans and (6) Trust departments investments may be combined for purposes of the program with any one or all of the Trust departments of commercial banks banks in the holding company group. should follow the guidelines with respect to An "Edge Act" corporation established nonbank financial institutions. before February 10, 1965, that had not (7) Transactions for the account of made any significant volume of loans and customers investments before December 31,1964, may take as a base, alone and not in combination A bank should bear in mind the Presiwith its parent, its paid-in capital and surdent's balance of payments program when plus, up to $2.5 million. acting for the account of a customer. Although the bank must follow a customer's (10) U.S. branches and instructions, it should not encourage cus- agencies of foreign banks tomers to place liquid funds outside the Branches and agencies of foreign banks United States. A bank should not place with located in the United States are requested a customer foreign obligations that, in the to act in accordance with the spirit of the absence of the voluntary credit restraint prodomestic commercial bank voluntary credit gram, it would have acquired or held for restraint program. its own account. (11) Loans to U.S. residents and (8) Foreign branches substitution of domestic credit for credit from foreign sources The voluntary credit restraint program is not designed to restrict the extension of There are a number of situations in which foreign credits by foreign branches if the loans to domestic customers may be detrifunds utilized are derived from foreign mental to the President's balance of paysources and do not add to the outflow of ments program. These include: capital from the United States. (A) Loans to U.S. companies which will Total claims of a bank's domestic offices aid the borrower in making new foreign on its foreign branches (including perma- loans or investments inconsistent with the nent capital invested in as well as balances President's program. Banks should avoid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1698 FEDERAL RESERVE BULLETIN • DECEMBER 1965 making new loans that would directly or balance of payments is the same as if the indirectly enable borrowers to use funds bank had made loans to foreigners in the abroad in a manner inconsistent with the first instance. Department of Commerce program or with To the extent possible, banks should also the guidelines for nonbank financial insti- avoid making loans to domestic borrowers tutions. that have an effect similar to that of the (B) Loans to U.S. subsidiaries and loans described in paragraphs (B) and (C) branches of foreign companies which other- above. wise might have been made by the bank to (12) Management of a bank's liquid funds the foreign parent or other foreign affiliate of the company, or which normally would A bank should not place its own funds have been obtained abroad. abroad for short-term investment purposes, (C) Loans to U.S. companies with whether such investments are payable in foreign activities that take the place of credit foreign currencies or in U.S. dollars. This normally obtained abroad. Even though does not, however, call for a reduction in such loans are made to domestic firms or necessary working balances held with those domiciled here, the impact on the U.S. foreign correspondents. Guidelines for Nonbank Financial Institutions The types of financial institutions to which tomers of the guidelines and to enlist their these guidelines on foreign lending and in- support in cooperating with the President's vesting are applicable include domestic life, program. fire and casualty insurance companies; cor- Any nonbank financial institution holdporate noninsured pension funds and State- ing $500,000 or more in foreign loans, inlocal retirement systems; mutual savings vestments, or other foreign financial assets banks, mutual funds and investment com- is requested to file a statistical report (Form panies; consumer, sales and commercial fi- F.R. 392) at the close of each calendar nance companies; college endowment funds quarter with the Federal Reserve Bank of the and charitable foundations. Also covered Reserve district in which its principal office by the program are the U.S. branches of is located. Lending institutions not receivforeign insurance companies and of other ing copies of the reporting form may obtain foreign financial corporations. Trust com- them from the Federal Reserve Bank. panies and trust departments of commercial banks are expected to observe the guide- SPECIFIC GUIDELINES lines in the investment of funds entrusted to (1) Investment of liquid funds abroad should them or for which they serve as investment be reduced to minimum practicable levels advisor. Investment underwriting firms, se- consistent with the operating needs of the curity brokers and dealers, and investment institution. Such holdings ordinarily should counseling firms are also covered with re- not be permitted to exceed the September spect to foreign assets held for their own 30, 1965, total, except for temporary seaaccount, and are requested to inform cus- sonal excesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 1699 This category includes all deposits held years. Loans guaranteed or arranged by the with foreign banks or foreign branches of Export-Import Bank or insured by the For- U.S. banks, whether denominated in U.S. eign Credit Insurance Association are not to dollars or a foreign currency and regardless be considered foreign credits for purposes of maturity. It also includes all liquid money of this program. market claims on foreign obligors with an Net financial investment in foreign branches, original maturity of 1 year or less, whether financial subsidiaries and affiliates, if any, is such claims are denominated in U.S. dollars included among the assets subject to the or a foreign currency. The term "liquid percentage ceilings of this guideline. Such money market claims" is interpreted broadly financial investment includes payments into to include the securities of Governments and equity and other capital accounts of, and their instrumentalities, commercial paper, net loans and advances to, foreign corporafinance company paper, bankers' accept- tions engaged principally in finance, inances, and other readily marketable paper. surance, or real estate activities, in which This guideline is not applicable to short-term the U.S. institution has an ownership interest business credits that are not readily market- of 10 per cent or more. Earnings of a foreign able (covered under guideline (2)). affiliate that are reinvested in the business (2) Investments and credits maturing in 10 are not included among assets subject to the years or less at date of acquisition, except for guideline ceiling, although institutions are liquid investments covered under guideline requested to repatriate such earnings to the (1), are subject to a percentage guideline fullest extent feasible. based on the total of such holdings at the In administering restraint in foreign lendend of 1964. The aggregate amount of these ing and investing, institutions are requested investments, and of net financial investment to observe the following priorities or guides: in foreign branches, financial subsidiaries 1. Credits and investments that represent and affiliates (described below), should not bona fide U.S. export financing should reexceed 105 per cent of the 1964 base ceive absolute priority. date amount as of the end of 1965, and 2. Nonexport credits and investments in should not exceed 106 per cent of the base the less developed countries, and investdate amount during the first quarter of 1966, ments in the securities of international in- 107 per cent during the second quarter, 108 stitutions, are to be given priority consideraper cent during the third quarter, and 109 tion second only to bona fide export fiper cent in the final quarter of the year. nancing. This category includes all bonds, notes, 3. The flow of investment funds to Canmortgages, loans, and other credits carry- ada and Japan, which are heavily dependent ing maturities at date of acquisition of 10 on U.S. capital markets, need be restricted years or less. The date of final maturity is only to the extent necessary to remain under to be taken in classifying individual credit the guideline ceiling. transactions, except that a credit transaction It is recognized that some individual inshould not be classified as "long term" (and stitutions may temporarily exceed the guidehence subject to guideline (3) below) un- line ceiling, because of investments made less 10 per cent or more of the amount to be under the first two priorities above, or the repaid is scheduled to be repaid after 10 taking down of firm commitments to lend Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1700 FEDERAL RESERVE BULLETIN • DECEMBER 1965 or invest entered into prior to June 22, 1965, for repayment to the lender after 10 years the effective date of the previous guidelines. beyond date of acquisition. In any such case, an institution that exceeds No percentage ceiling is suggested on its target should consult with the Federal long-term credits and investments in the Reserve Bank of the Reserve district in priority categories relating to export fiwhich it is located regarding a program for nancing and to less developed countries (inmoving back within the ceiling in a rea- cluding international institutions) as desonable period of time. scribed in guideline (2). Long-term investment in Canada and Japan also is not sub- (3) Long-term credits (exceeding 10 years in ject to a percentage ceiling, in view of intermaturity) and stock investments in foreign com- Governmental agreements affecting the net panies are not subject to an aggregate ceiling amount of financing done by these countries for 1966. This category includes bonds, in U.S. financial markets. Lending institunotes, mortgages, loans, and other credits tions are requested, however, to limit in maturing more than 10 years after date of 1966 the total of credits and investments acquisition, as well as preferred and comin other developed countries to an amount mon stocks. (Loans and investment in cernot in excess of 105 per cent of the amount tain subsidiaries and affiliates, however, are of such holdings on September 30, 1965. covered by guideline (2).) Term loans and Within this category, institutions are exserial-payment notes and bonds are included pected to avoid any increase in long-term in this category only if 10 per cent or more investments in the developed countries of of the total amount of the credit is scheduled continental Western Europe. The attention of lending institutions is which would substitute for funds normally directed to the need to refrain from making obtained from foreign sources. loans and investments inconsistent with the 4. Credits to U.S. companies with foreign President's balance of payments program. activities which would take the place of Among these are the following: funds normally obtained abroad. 1. Long-term credits covered by guide- Reasonable efforts should be made to line (3) which substitute for loans that com- avoid accommodating credit requests of mercial banks would have made in the ab- these types, regardless of specific guideline sence of the voluntary foreign credit restraint targets detailed in this circular. effort administered by the Federal Reserve System. NOTES 2. Credits to U.S. borrowers which would 1. None of the guidelines in this circular are inaid in making new foreign loans or invest- tended to apply to the reinvestment of reserves on insurance policies sold abroad in assets within the counments inconsistent with the voluntary retry involved, in amounts up to 110 per cent of such straint program administered by the Depart- reserves. ment of Commerce. 2. Developed countries other than Canada and Japan are: Abu Dhabi, Australia, Austria, the Baha- 3. Credits to U.S subsidiaries and branches mas, Bahrein, Belgium, Bermuda, Denmark, France, of foreign companies which otherwise might Germany (Federal Republic), Hong Kong, Indonesia, Iran, Iraq, Ireland, Italy, Kuwait, Libya, Liechtenstein, have been made to the foreign parent, or Luxembourg, Monaco, Netherlands, Neutral Zone, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 1701 New Zealand, Norway, Portugal, Qatar, Republic of nism, Latvia, Lithuania, Outer Mongolia, Poland (in- South Africa, San Marino, Saudi Arabia, Spain, cluding any area under its provisional administration), Sweden, Switzerland, and the United Kingdom. Rumania, Soviet Zone of Germany and the Soviet sec- Also to be considered "developed" are the following tor of Berlin, Tibet, Union of Soviet Socialist Recountries within the Sino-Soviet bloc: Albania, Bul- publics and the Kurile Islands, Southern Sakhalin, and garia, any part of China which is dominated or con- areas in East Prussia which are under the provisional trolled by international communism, Cuba, Czecho- administration of the Union of Soviet Socialist Reslovakia, Estonia, Hungary, any part of Korea which publics, and any part of Viet Nam that is dominated is dominated or controlled by international commu- or controlled by international communism. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover- necessarily indicate concurrence by other nors of the Federal Reserve System and of members of the research staffs, by the Board the Federal Reserve Banks undertake studies of Governors, or by the Federal Reserve that cover a wide range of economic and Banks. financial subjects. From time to time the re- Single copies of the full text of each of sults of studies that are of general interest the studies summarized below are available to the economics profession and to others are in mimeographed form. The list of publicasummarized—or in some instances printed tions at the back of each Federal Reserve in full—in this section of the BULLETIN. BULLETIN includes a separate section enu- In all cases the analyses and conclusions merating the studies for which copies are set forth are those of the authors and do not currently available in that form. STUDY SUMMARIES CRITERIA FOR CONDUCT OF MONETARY POLICY: IMPLICATIONS OF RECENT RESEARCH Daniel H. Brill—Staff, Board of Governors Paper delivered at the Conference of University Professors, sponsored by the American Bankers Association at Purdue University, August 29—September 1, 1965 Recent research has emphasized the im- ably the relation between the stock of money portance of financial variables, and hence and financial market conditions. of monetary policy, on spending decisions. What is needed for guidance of central It has not, however, suggested rules for cen- bank decisions is more systematic exploratral banking that provide adequate guidance tion of the links between monetary policy for policy making. and interest rates, and the links between in- Theoretical research has led to general terest rates and expenditure responses. And agreement that monetary policy influences the nonprice aspects of credit transactions spending decisions through its effects on need much more intensive examination on prices and yields of financial assets and on both a theoretical and empirical level. nonprice credit terms. These effects are not Finally, the results of all of these inquiries reflected in any simple way in changes in must be integrated in a model of economic the money stock. In fact, the recent behavior performance which will more clearly deof banks in markets for time and savings lineate the path between policy actions and deposits seems to have weakened consider- policy goals. 1702 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STAFF ECONOMIC STUDIES 1703 THE POSTWAR BOOM IN HOTELS AND MOTELS Royal Shipp and Robert Moore Fisher—Staff, Board of Governors Paper prepared as a staff memorandum in July 1965 A major construction boom has taken place varied sources, the paper highlights certain during recent years in many types of income- features of hotels and motels affecting their producing real estate. As a result, these value as loan collateral. It also analyzes the properties have been serving as collateral for changing ability of such properties to service a rapidly growing volume of mortgage debt. debt outstanding against them. Methods of What economic forces have contributed to financing and Federal income tax laws and the timing, extent, and likely remaining regulations affecting the industry are disduration of this boom? What trends have cussed. Sources of hotel-motel data and inemerged in financing requirements? Will formation are summarized in a brief appenthese rental properties be able to generate dix. operating revenues adequate to repay indebt- The paper concludes that the most rapid edness secured by them? growth in hotel-motel building appears to This paper explores various supply and demand aspects of the postwar construction lie behind us. But given a continued high boom for one special type of income-produc- level of economic activity and sufficient ing property—hotels and motels. Drawing availability of credit, a large annual volume on statistical and other materials taken from of such construction should persist. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Administrative interpretations, new regulations, and similar material Maximum Rate of Interest Payable vember 25, 1965. This action by the Board is on Time Deposits codified as § 204.57 of Title 12, Code of Federal Regulations, Part 204, reading as follows: The Board of Governors, effective December 6, 1965, increased to SVi per cent per annum the § 204.57 Termination of Pueblo, Colorado, desigmaximum permissible rate of interest payable by nation as reserve city. member banks of the Federal Reserve System on In accordance with paragraph (e) of § 204.51, a member bank in Pueblo, Colorado, has submitted a time deposits, and reduced from 90 to 30 days the written request for termination of the designation of minimum time limitation for classification as a such city as a reserve city, and, acting pursuant to such time deposit eligible to receive the highest maxi- paragraph (e) of § 204.51, the Board of Governors has granted such request. Accordingly, the designation mum rate of interest. Similar action was taken by of Pueblo, Colorado, as a reserve city is hereby terthe Federal Deposit Insurance Corporation with minated effective November 25, 1965. respect to maximum rates of interest payable by nonmember insured banks. The amended Supple- Relationships with Dealers in Securities ment to the Board's Regulation Q, reads as The Board of Governors, effective November follows: 17, 1965, amended § 218.2 of Regulation R, "Relationships with Dealers in Securities Under Sec- SUPPLEMENT TO REGULATION Q tion 32 of the Banking Act of 1933," so as to add (12 CFR Part 217) obligations of the Tennessee Valley Authority, the SECTION 217.6 Inter-American Development Bank, the Interna- Effective December 6, 1965 tional Bank for Reconstruction and Development, obligations insured by the Federal Housing Ad- Pursuant to the provisions of section 19 of the Federal Reserve Act and § 217.3, the Board of Governors ministrator, and obligations of local public housing of the Federal Reserve System hereby prescribes the agencies to the list of obligations of Federal following maximum ratesx of interest payable by memagencies now named in this section of the regulaber banks of the Federal Reserve System on time and savings deposits: tion which exempts relationships of officers, di- (a) Maximum rate of 5V2 per cent. No member rectors or employees of member banks of the bank shall pay interest accruing at a rate in excess of SVi per cent per annum, compounded quarterly,2 re- Federal Reserve System with firms dealing in only gardless of the basis upon which such interest may be certain types of obligations. The amendment reads computed, on any time deposit. as follows: (b) Maximum rate of 4 per cent. No member bank shall pay interest accruing at a rate in excess of 4 per cent per annum, compounded quarterly,2 regardless of AMENDMENT TO REGULATION R the basis upon which such interest may be computed, on any savings deposit. (12 CFR Part 218) Effective November 17, 1965, section 218.2 is Termination of Reserve City Designation amended to read as follows: Pursuant to the Board's Rule for Classification SECTION 218.2—EXCEPTIONS of Reserve Cities, the reserve city designation of Pursuant to the authority vested in it by section 32, the Board of Governors of the Federal Reserve System Pueblo, Colorado, was terminated effective No- hereby permits the following relationships:2 Any officer, director, or employee of any corporation or unxThe maximum rates of interest payable by member banks incorporated association, any partner or employee of of the Federal Reserve System on time and savings deposits as any partnership, or any individual, not engaged in the prescribed herein are not applicable to any deposit which is issue, flotation, underwriting, public sale, or distribupayable only at an office of a member bank located outside of tion, at wholesale or retail, or through syndicate parthe States of the United States and the District of Columbia. 2 This limitation is not to be interpreted as preventing the ticipation, of any stocks, bonds, or other similar compounding of interest at other than quarterly intervals, pro- securities except bonds, notes, certificates of indebtedvided that the aggregate amount of such interest so compounded ness, and Treasury bills of the United States, obligadoes not exceed the aggregate amount of interest at the rate above prescribed when compounded quarterly. tions fully guaranteed both as to principal and interest 1704 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1705 by the United States, obligations of Federal Inter- PART 6—LOANS MADE BY NATIONAL BANKS mediate Credit banks, Federal Land banks, Central SECURED BY OBLIGATIONS OF THE UNITED STATES Bank for Cooperatives, Federal Home Loan banks, the Federal National Mortgage Association, and the § 6.1 Scope and application. Tennessee Valley Authority, obligations of the Inter- (a) This part is issued by the Comptroller of the national Bank for Reconstruction and Development Currency with the approval of the Secretary of the and obligations of the Inter-American Development Treasury under authority of paragraph (8) of section Bank which are specified in paragraph Seventh of Sec- 5200 of the Revised Statutes, as amended (12 U.S.C. tion 5136, Revised Statutes (12 U.S.C. 24), obligations 84), and section 321(b) of the act of August 23, insured by the Federal Housing Administrator and 1935 (49 Stat. 713); obligations of any local public agency which are speci- (b) This part applies to loans made by National fied in paragraph Seventh of Section 5136, Revised Banks secured by either direct obligations of the Statutes (12 U.S.C. 24), and general obligations of United States or obligations fully guaranteed both as Territories, dependencies and insular possessions of to principal and interest by the United States. the United States, may be at the same time an officer, § 6.2 General authorization. director, or employee of any member bank of the The obligations to any national banking association Federal Reserve System, except when otherwise prohibited.3 of any person, copartnership, association, or corporation, secured by not less than a like amount (at par or face value) of either direct obligations of the United NOTE: Footnotes 2 and 3 were not changed. States or obligations fully guaranteed both as to principal and interest by the United States, shall not be subject to any limitation based upon the capital and Loans Secured by Obligations of the surplus of the association. United States Amendments to Registration Statements The Comptroller of the Currency, effective Noand Reports Filed Pursuant to Regulation F vember 17, 1965, amended his regulation formerly pertaining only to Loans Made by National Banks The Board of Governors, effective December 1, Secured by Direct Obligations of the United States 1965, adopted Federal Reserve Form F-20 as an (12 CFR, Part 6), so as to include loans secured addition to Regulation F, "Securities of Member by obligations fully guaranteed both as to principal State Banks" as a guide for the preparation of and interest by the United States. Section ll(m) amendments to registration statements and periodic of the Federal Reserve Act makes this regulation reports filed pursuant to the regulation. The applicable also to State banks that are members of Board's Form F-20, codified as § 206.45 of Title the Federal Reserve System. The regulation as 12, Code of Federal Regulations, Part 206, reads thus amended reads as follows: as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1706 FEDERAL RESERVE BULLETIN - DECEMBER 1965 FORM F-20 AMENDMENT TO REGISTRATION STATEMENT OR PERIODIC REPORT OF BANK GENERAL INSTRUCTIONS The form set forth hereinafter is not to be used The amendment shall contain the number and as a blank form to be filled in but is intended solely caption of each item being amended and each as a guide in the preparation of an amendment to such item shall be restated, as amended, in its a previously filed registration statement or report. entirety. Where a financial statement, or a note Attention should be given to the general require- or schedule related thereto, is being amended, such ments governing amendments, which are prescribed statement, note, or schedule likewise shall be rein section 206.4 (u) of Regulation F. stated in its entirety. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Washington, D. C. 20551 AMENDMENT NUMBER To On FORM F-_ Pursuant to Section 12 or 13 of the Securities Exchange Act of 1934 (Exact name of bank as specified in charter) (Address of principal office) The undersigned bank hereby amends the following items, financial statements or exhibits, constituting part of the aforesaid statement or report, as set forth in the pages attached hereto: (List all such items, financial statements, exhibits, or other portions amended). Pursuant to the requirements of the Securities Exchange Act of 1934, the bank has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. Name of Bank Date By (Print name and title of signing officer under signature) 1 Indicate appropriate designation of statement or report being amended, such as "Registration Statement" or "Annual Report for year ended December 31, 19 " 2 Indicate the number of the form on which the statement or report was filed, such as "Form F-l." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1707 Financial Statements to Be Included cumstances. Subject to the foregoing requirements in Annual Reports to Security Holders with respect to financial statements, the annual re- Since 1966 will generally be the first time that port to security holders may be in any form banks subject to the public disclosure require- deemed suitable by the management." ments of the Securities Exchange Act of 1934 Pursuant to these provisions, the financial statewill be soliciting proxies in accordance with such ments included in annual reports to security holdrequirements, the Board of Governors directs the ers should not be inconsistent with the financial attention of registrant banks to section 206.5(c) reporting prescribed by Regulation F and they of Federal Reserve Regulation F, "Securities of should conform in all material respects to the Member State Banks." It is provided therein that accounting principles stated therein. However, ana bank's proxy statement (or the statement that nual reports to security holders need not include must be distributed where management does not the detailed information required in annual reports solicit proxies) which relates to an annual meet- filed with the Federal Reserve Board on Federal ing of security holders at which directors are to be Reserve Form F-2. elected, shall be accompanied or preceded by an annual report to such security holders "contain- Proxy Solicitation by Bank Management— ing such financial statements for the last fiscal year Disclosure of Loans to "Insiders" as will, in the opinion of the management, ade- The Board of Governors has recently been quately reflect the financial position and operations asked to clarify its position with respect to disof the bank." closure of loans to "insiders"—that it, officers, Adherence to the following reporting standards, directors, and persons holding more than 10 per prescribed in Regulation F, is considered necescent of the bank's stock—in management proxy sary to reflect adequately the financial position and statements furnished in accordance with the reresults of operations of registrant banks in such quirements of section 206.5 of the Federal Reserve annual reports to security holders: Regulation F ("Securities of Member State 1. Financial statements should be prepared on Banks") and Federal Reserve Form F-5. This ina consolidated basis to the extent required by terpretation is also applicable to disclosure of such Regulation F. transactions under comparable provisions relating 2. A statement of income should be furnished to registration of bank securities (Federal Reserve in a form providing for the determination of Form F-l) under section 12 of the Securities Exthe "amount transferred to undivided profits" change Act of 1934. as a result of all activity related to the pre- Item 7(f) of Form F-5 and Item 12 of Form ceding year. F-l in effect require a description of any material * 3. A statement of changes in capital accounts, interest of any insider or any of his "associates" s including capital reserves, should be included. 1 "The term 'material', when used to qualify a re- 4. Valuation reserves should be reported as re- quirement for furnishing of information as to any subductions of related asset values. ject, limits the information required to those matters 5. A reconciliation of valuation reserves should as to which an average prudent investor ought reasonably to be informed before buying or selling the be presented, showing material charges and security registered." Regulation F, section 206.2(n). credits. 2 "The term 'associate*, when used to indicate a Section 206.5(c) further provides that— relationship with any person, means (1) any cor- "The financial statements included in the annual poration or organization (other than the bank or a report may omit details or summarize information majority-owned subsidiary of the bank) of which such person is an officer or partner or is, directly if such statements, considered as a whole in the or indirectly, either alone or together with one or light of other information contained in the report more members of his immediate family, the beneand in the light of the financial statements of the ficial owner of 10 per cent or more of any class of bank filed or to be filed with the Board, will not equity securities, (2) any trust or other estate in which such person has a substantial beneficial inby such procedure omit any material information terest or as to which such person serves as a trustee necessary to a fair presentation or to make the or in a similar fiduciary capacity, and (3) any relative financial statements not misleading under the cir- or spouse of such person, or any relative of such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1708 FEDERAL RESERVE BULLETIN • DECEMBER 1965 in any material transaction to which the bank was, reported in the light of the provisions of Item or is to be, a party. These Items contain a number 7(f), referred to above. of specific exemptive instructions—for example, It should also be noted that Item 7(e) requires no disclosure is required where the only interlock disclosure of any liability to the bank that appears is that a director of a bank is a director and/or to have arisen under section 16 of the Securities officer of another corporation that is a party to the Exchange Act of 1934 as a result of "insider" transaction. Generally, these items require dis- transactions in the bank's stock (or other equity closure of loans to a corporate borrower only security). where insiders, individually or with members of their immediate families,3 own at least 10 per cent Orders Under Bank Merger Act of the borrower's outstanding stock. The following Orders and Statements were is- The Board does not regard loans and other exsued in connection with actions by the Board of tensions of credit by a registrant bank in the ordinary course of its business as "material" for the Governors with respect to applications for appurposes of Regulation F (and therefore required proval of the merger of banks: to be disclosed unless otherwise specifically exempted by the instructions in these Items) if such UNITED CALIFORNIA BANK, LOS ANloans (a) are made on substantially the same GELES, CALIFORNIA terms, including interest rates and collateral, as In the matter of the application of United Calithose prevailing at the time for comparable trans- fornia Bank for approval of merger with Feather actions with other than insiders, (b) at no time River National Bank. aggregate more than 10 per cent of the equity capital accounts of the bank or $10 million, which- ORDER APPROVING MERGER OF BANKS ever is less, and (c) do not involve more than the There has come before the Board of Governors, normal risk of collectibility or present other unpursuant to the Bank Merger Act of 1960 (12 favorable features. U.S.C. 1828 (c)), an application by United Cali- Item 7(e) of Form F-5 requires disclosure of infornia Bank, Los Angeles, California, a State memdebtedness to the bank of each director or officer ber bank of the Federal Reserve System, for the of the bank and each nominee for election as a Board's prior approval of the merger of that bank director. An instruction to this Item specifically and Feather River National Bank, Oroville, Caliexcludes indebtedness resulting from transactions fornia, under the charter and title of the former. in the ordinary course of the bank's business. The As an incident to the merger, the sole office of effect of this instruction is to exempt the bank Feather River National Bank would become a from reporting under Item 7(e) normal extensions branch of the resulting bank. Notice of the proof credit to such persons, of types and amounts posed merger, in form approved by the Board, has customarily made by the bank in the usual course been published pursuant to said Act. of its operations. However, even if disclosure of Upon consideration of all relevant material in indebtedness is not required by Item 7(e), conthe light of the factors set forth in said Act, insideration must be given to whether it must be cluding reports furnished by the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Attorney General on the comspouse, who has the same home as such person or petitive factors involved in the proposed merger, who is a director or officer of the bank or any of its parents or subsidiaries." Regulation F, section 206.2 IT IS HEREBY ORDERED, for the reasons set forth (d). in the Board's Statement of this date, that said ap- 3 "The term 'immediate family' includes a person's plication be and hereby is approved, provided that (1) spouse; (2) son, daughter, and descendant of either; (3) father, mother, and ancestor of either; said merger shall not be consummated (a) within (4) stepson and stepdaughter; and (5) stepfather seven calendar days after the date of this Order or and stepmother. For the purpose of determining (b) later than three months after said date. whether any of the foregoing relationships exist, a legally adopted child shall be considered a child by Dated at Washington, D.C., this 22nd day of blood." Regulation F, section 206.2(k). November, 1965. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1709 By order of the Board of Governors. repayment of outstanding loans will take from three to five years. The bank's condition has been Voting for this action: Chairman Martin, and Governors Balderston, Shepardson, Mitchell, Daane, and further affected by the failure of deposits to con- Maisel. Voting against this action: Governor Robert- tinue to increase, and as a result of the high loanson. to-deposit ratio and its restricted secondary re- (Signed) MERRITT SHERMAN, serves, National has been forced to limit its lend- Secretary. ing functions primarily to servicing prior commit- [SEAL] ments. While the bank's future operating earnings STATEMENT prospects may be regarded as fairly satisfactory, United California Bank, Los Angeles, California sizable losses on loans are probable. ("United"), with total deposits of $2.7 billion, has National is experiencing management difficultapplied, pursuant to the Bank Merger Act of 1960 ies. Its original executive officer resigned in late (12 U.S.C. 1828(c)), for the Board's prior ap- 1964. At that time, its current president, who is proval of the merger of that bank and Feather well past normal retirement age, assumed ex- River National Bank, Oroville, California ("Na- ecutive duties on a temporary basis until new tional"), which has total deposits of $3.6 million.1 management could be found. Shortly thereafter, The banks would merge under the charter and title the bank's vice president resigned. National's curof United, which is a member of the Federal Re- rent president has devoted a substantial amount of serve System. As an incident to the merger, the his time to a search for permanent management one office of National would become an office of but has failed to find a qualified executive officer United, increasing the number of its authorized interested in supervising the affairs of the bank. offices to 180. Consummation of the proposal would solve this problem. As required by law, the Board has considered, as to each of the banks involved, (1) its financial Convenience and needs of the communities. Behistory and condition, (2) the adequacy of its cause National is too small for consummation of capital structure, (3) its future earnings prospects, the proposal to affect the services that United can (4) the general character of its management, (5) render, the effects of the merger would be felt whether its corporate powers are consistent with only in the Oroville area. the purposes of 12 U.S.C, Ch. 16 (the Federal As National is the only banking institution head- Deposit Insurance Act), (6) the convenience and quartered in Oroville, merger of it into a large needs of the community to be served, and (7) the bank would deprive local customers of the opeffect of the transaction on competition (including portunity to do business with a local bank; howany tendency toward monopoly). The Board may ever, the number of alternatives in Oroville would not approve the transaction unless, after consider- remain unchanged. National is not in a position to ing all of these factors, it finds the transaction to serve its community to an effective degree. At be in the public interest. present the Oroville area is predominantly an agri- Banking factors. National opened for business a cultural area, but with the completion of the little more than three years ago and its capital nearby Oroville dam project in 1968, rapid destructure is adequate. From its inception, National velopment is expected, particularly of recreational pursued an aggressive policy of soliciting com- facilities and attendant service establishments. Namercial and industrial loans well in excess of its tional has made relatively few loans to farmers, lending capacity, with overlines placed with a cor- and the bank's financial condition does not allow respondent bank. Many of these loans were for it to aid in the development of its community or relatively long terms, and several were made to assist with the agricultural requirements upon borrowers outside the Oroville area. As of June which the area's economy is currently based. In 16, 1965, the bank's loan-to-deposit ratio exceeded view of this condition and the bank's management 80 per cent. The application states that this ratio difficulties, the needs of the community would be cannot be reduced without substantial loss to the better served by approval of the proposed merger. bank and that reduction of the ratio through the Competition. United is a State-wide banking organization operating branches in 33 of the 58 1 Deposit figures are as of June 30, 1965. counties of the State. National operates primarily Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1710 FEDERAL RESERVE BULLETIN • DECEMBER 1965 in the immediate Oroville area, and competition sion to its temporary management, the banking between the two banks is insignificant. The nearest needs of the area would be better served if the offices of United are 23 and 25 miles from Na- proposal were effectuated. These factors offset the tional, and the service areas,2 separated by natural adverse considerations that arise from the fact that barriers, do not overlap. United has followed an expansive merger policy Within the immediate vicinity of National are and from the high degree of concentration existing four branches of three other banks: (1) Bank of in California. America NT & SA, San Francisco; (2) First West- Accordingly, the Board finds that the proposed ern Bank and Trust Company, Los Angeles; and merger would be in the public interest. (3) Central Valley National Bank, Oakland. Each of these banks constitutes an active competitive DISSENTING STATEMENT OF GOVERNOR force throughout the central valley of California. ROBERTSON While approval of the proposed merger would The effect of the proposed merger of United eliminate a local bank, National is no longer a and National must be assessed in the light of both significant competitive force in the Oroville area. the history of United and the degree of concen- The replacement of a noncompetitive unit with a tration of banking resources in the State of Calibranch of an aggressive institution would fornia in the hands of a few large banks. United's strengthen competition in the area served, and the proposed acquisition is only the latest of a series merger would have little effect outside this area. of similar acquisitions by United and other large Banking in California is characterized by the California banks that could lead to a complete concentration of banking resources and banking oligopoly in commercial banking in the State. offices in five large branch banking systems. Con- National is the only local banking institution summation of this proposal would result in some in the Oroville area, and it has shown increasing increase in this concentration, although such in- profits every year since its inception. Two of the crease would be relatively insignificant. United three other banks in this area are huge, State-wide ranks fifth in deposit size in California with 8.2 banking institutions, and the third bank, Central per cent of the total deposits in the State. The ad- Valley National Bank, Oakland, with deposits of dition of National's deposits, which comprise $156 million, is an aggressive competitor through- 4/100ths of one per cent of total deposits in the out the central valley of the State. Elimination of State, would not change United's relative position National leaves the residents of Oroville with only in California.3 The small increase in concentration a choice among large, monolithic banking inof banking resources that would result from this stitutions with home offices far removed from the proposal would be more than offset by the other Oroville area. factors in this case and the restoration of the office The majority attempts to justify the elimination of National to a significant competitive position. of National as a local banking institution by citing During the period 1955-1964, 38 per cent of its high loan-to-deposit ratio, its inability effectively United's total deposit growth and 59 per cent of to serve the community, and its need for successor its total increase in number of offices resulted from management. Perhaps it is true that National mergers. It should be noted that 28 per cent of the would not, in the immediate future, be able to total deposit growth and 36 per cent of the total serve its community as effectively as if it had a office growth resulted from only one merger, that lower loan-to-deposit ratio. However, rejection of of First Western Bank and Trust Company into the application would mean that the bank would California Bank (United's predecessor). remain an alternative source of banking services, Summary and conclusion. National has failed and I am unconvinced from the record before the to provide meaningful competition in the Oroville Board that the bank would not soon be in a posiarea, and in view of its liquidity position, develop- tion to compete aggressively once again for new ing loan problems, and inability to acquire succes- loan business. In my opinion, the bank's difficulties were alleviated with the institution of its current 2 The area from which a bank derives 75 per cent or management. I realize that the current managemore of its deposits of individuals, partnerships, and ment is in a sense only temporary, but I believe corporations. 5 These figures are as of December 31, 1964. that a diligent search would produce an alternative Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1711 more in the public interest than the present pro- the Board's prior approval of the merger of that posal. bank and The First National Bank of Fortville, United has compiled an extremely aggressive Fortville, Indiana, under the charter and title of merger record over the past ten years. In the the former. As an incident to the merger, the sole period 1955-64, United's deposits grew by $2,050 office of The First National Bank of Fortville million, and mergers accounted for approximately would become a branch of the resulting bank. 38 per cent of this growth. During the same Notice of the proposed merger, in form approved period, mergers accounted for 59 per cent of by the Board, has been published pursuant to United's increase in number of banking offices. said Act. The Department of Justice sued to prevent one Upon consideration of all relevant material in merger—the 1961 merger of California Bank the light of the factors set forth in said Act, in- (United's predecessor) with First Western Bank cluding reports furnished by the Comptroller of and Trust Company—charging violations of both the Currency, the Federal Deposit Insurance Corthe Sherman and Clayton Acts. As a result of this poration, and the Attorney General on the comsuit, 65 banking offices of First Western Bank and petitive factors involved in the proposed merger. Trust Company were sold to a new State-wide IT IS HEREBY ORDERED, for the reasons set forth banking organization. However, United still ranks in the Board's Statement of this date, that said apfifth in size of all banks in the State of California plication be and hereby is approved, provided that with 8.2 per cent of total deposits. said merger shall not be consummated (a) within Not only do I view United's aggressiveness in seven calendar days after the date of this Order acquiring small, independent banks with appre- or (b) later than three months after said date. hension, but, absent unusual circumstances, the Dated at Washington, D.C., this 1st day of concentration of banking resources in the five December, 1965. largest banks in the State should in itself prohibit By order of the Board of Governors. further bank acquisitions by any of these five, Voting for this action: Unanimous, with all members which together hold 78.5 per cent* of all deposits present. in the State. Accordingly, even the slightest in- (Signed) MERRITT SHERMAN, crease in concentration of banking resources Secretary. through the acquisition of sound, independent [SEAL] banks cannot be said to be "insignificant." Each acquisition by these giants makes it more difficult STATEMENT for the small banks to compete, which could re- Greenfield Banking Company, Greenfield, Insult in a banking structure that would be the very diana ("Greenfield Bank"), with total deposits of antithesis of that contemplated by the Bank $13 million, has applied, pursuant to the Bank Merger Act of 1960. Merger Act of 1960 (12 U.S.C. 1828(c)), for the I would disapprove the application. Board's prior approval of the merger of that bank and The First National Bank of Fortville, Fort- GREENFIELD BANKING COMPANY, ville, Indiana ("Fortville Bank"), which has total GREENFIELD, INDIANA deposits of $4 million.1 The banks would merge In the matter of the application of Greenfield under the charter and title of Greenfield Bank, Banking Company for approval of merger with which is a member of the Federal Reserve Sys- The First National Bank of Fortville. tem. As an incident to the merger, the one office of Fortville Bank would become an office of ORDER APPROVING MERGER OF BANKS Greenfield Bank, increasing the number of its There has come before the Board of Governors, authorized offices to three. pursuant to the Bank Merger Act of 1960 (12 As required by law, the Board has considered, U.S.C. 1828(c)), an application by Greenfield as to each of the banks involved, (1) its financial Banking Company, Greenfield, Indiana, a State history and condition, (2) the adequacy of its capmember bank of the Federal Reserve System, for ital structure, (3) its future earnings prospects, 1 This percentage is as of December 31, 1964. 1 Deposit figures are as of June 30, 1965. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1712 FEDERAL RESERVE BULLETIN • DECEMBER 1965 (4) the general character of its management, (5) Greenfield, located directly between Fortville and whether its corporate powers are consistent with Greenfield. the purposes of 12 U.S.C., Ch. 16 (the Federal Hancock County Bank, with deposits of $7 mil- Deposit Insurance Act), (6) the convenience and lion, operates four banking offices in the county. needs of the community to be served, and (7) the The bank is the result of a recent merger and is effect of the transaction on competition (including Greenfield's Bank's principal competitor. Ameriany tendency toward monopoly). The Board may can Fletcher National Bank, Indianapolis, also opnot approve the transaction unless, after consider- erates two branches on the periphery of Hancock ing all of these factors, it finds the transaction to County, one six miles from Fortville and the other be in the public interest. ten miles from Greenfield. In addition, although Banking factors. Fortville Bank has an adequate they are not actually located in the service areas capital structure. In recent years it has experienced involved, there are several smaller banks competincreasing loan losses and declining earnings. Con- ing at various distances from Fortville and Greensummation of the transaction would minimize the field. loss potential and provide a basis for improved While the resulting bank would control 21 per earnings. In addition, as Fortville Bank's senior cent of all IPC deposits held by banking offices officers have passed normal retirement age, ef- competing in its service area, this percentage of fectuation of the proposal would assure continued concentration of deposits is rendered almost meanmanagement for the banking office in Fortville. ingless by the near proximity of large banks in Convenience and needs of the communities. Indianapolis and other surrounding cities. Greenfield is a city of 9,000 persons located 21 Summary and conclusion. Approval of the promiles east of Indianapolis. It is the county seat and posed merger would assure constructive lending largest city in Hancock County, which adjoins the policies in the Fortville area, provide a basis for Indianapolis Standard Metropolitan Statistical improved earnings, and provide continuity of man- Area. As Greenfield Bank offers a broad range of agement, thereby assuring continued sound bankbanking services and as there are a number of ing service in Fortville and enabling the conalternative sources of banking services near the venience and needs of the community to be better Greenfield area, the proposed merger would be of served. The effect on competition would not be little positive benefit in serving the convenience adverse. and needs of that area. Accordingly, the Board finds that the proposed Fortville, also in Hancock County, is 13 miles merger would be in the public interest. northwest of Greenfield and 21 miles northeast of Orders Under Section 3 of Indianapolis. The town has a population of 2,000, Bank Holding Company Act and its economy is based primarily upon agricul- The following Orders and Statements were ture, although there is some trend toward indusissued in connection with actions by the Board of trialization. Fortville Bank appears to be serving Governors on applications by bank holding comits community reasonably well, and while there are panies for approval of the acquisition of voting no other banks located in Fortville, there are a shares of bank: number of banking alternatives in nearby towns. Although there is no evidence that the banking SOCIETY CORPORATION, CLEVELAND, needs of the Fortville area are not being served OHIO at the present time, the resulting bank would better In the matter of the application of Society Corserve the community through more constructive poration, Cleveland, Ohio, for approval of the loan policies, an increased lending limit, and conacquisition of voting shares of The North Madison tinuation of progressive banking services. Banking Company, North Madison, Ohio. Competition. Competition between Greenfield Bank and Fortville Bank is not significant. The ORDER APPROVING APPLICATION UNDER BANK service areas a of the banks do not overlap, and HOLDING COMPANY ACT there is a branch office of Hancock County Bank, There has come before the Board of Governors, pursuant to section 3(a) (2) of the Bank 2 The area from which a bank derives 75 per cent Holding Company Act of 1956 (12 U.S.C. 1842 or more of its deposits of individuals, partnerships, and corporations. (a) (2)) and section 222.4(a)(2) of Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1713 serve Regulation Y (12 CFR 222.4(a) (2)), an recommended approval of the application. application of Society Corporation, Cleveland, Statutory factors. Section 3(c) of the Act re- Ohio, a registered bank holding company, for the quires the Board to take into consideration the Board's prior approval of the acquisition of 80 following five factors in acting upon this applicaper cent or more of the voting shares of The North tion: (1) the financial history and condition of Madison Banking Company, North Madison, the holding company and the banks concerned; Ohio. (2) their prospects; (3) the character of their In accordance with section 3(b) of the Act, the management; (4) the convenience, needs, and Board notified the Ohio Superintendent of Banks welfare of the communities and the area conof receipt of the application and requested his cerned; and (5) whether or not the effect of the views and recommendation thereon. The Super- acquisition would be to expand the size or extent intendent recommended approval of the applica- of the bank holding company system involved tion. beyond limits consistent with adequate and sound Notice of receipt of the application was pub- banking, the public interest, and the preservation lished in the Federal Register of July 14, 1965 (30 of competition in the field of banking. F. R. 8869), providing an opportunity for inter- Financial history, condition, prospects, and manested persons to submit comments and views with agement of Applicant and Bank. Applicant became respect to the proposed acquisition. The time for a bank holding company in January 1965, and filing such comments and views has expired, and presently controls two banks: Society National all those received have been considered by the Bank of Cleveland ("National"), and The Fre- Board. mont Savings Bank Company, Fremont, Ohio. At IT IS HEREBY ORDERED, for the reasons set December 31, 1964,1 these banks operated 18 forth in the Board's Statement of this date, that banking offices and, combined, held $555 million said application be and hereby is approved, pro- in deposits. National, Applicant's principal subvided that the acquisition so approved shall not be sidiary, operated 16 of these offices and held $537 consummated (a) within seven calendar days after million of deposits. the date of this Order or (b) later than three Applicant's financial condition is largely determonths after said date. mined by the condition of its subsidiary banks, Dated at Washington, D.C., this 24th day of particularly National. National was organized by November, 1965. Society for Savings, a mutual savings bank, and commenced business in January 1956. As of De- By order of the Board of Governors. cember 31, 1958, Society for Savings commenced Voting for this action: Unanimous, with all members dissolution, and its accounts were transferred to present. National, resulting in National having a sub- (Signed) MERRITT SHERMAN, stantially larger percentage of time and savings Secretary. deposits than have other commercial banks of com- [SEAL] parable size. While National's net earnings posi- STATEMENT tion in relation to its gross earnings and invested Society Corporation, Cleveland, Ohio ("Ap- capital is somewhat lower than that of other complicant"), a registered bank holding company, has mercial banks of similar size, due principally to the filed with the Board, pursuant to section 3(a) (2) large portion of its total deposits represented by of the Bank Holding Company Act of 1956 ("the time and savings accounts, National's past opera- Act"), an application for approval of the acquisition and history of growth, particularly in demand tion of 80 per cent or more of the voting shares of deposits, warrant the conclusion that its—and The North Madison Banking Company, North therefore Applicant's—prospects for sound and Madison, Ohio ("Bank"). profitable future operations are satisfactory. The Views and recommendation of supervisory aumanagements of Applicant and its subsidiary banks thority. As required by section 3(b) of the Act, are considered satisfactory. notice of receipt of the application was given to, and views and recommendation requested of, the 1 Unless otherwise indicated, all banking data noted Ohio Superintendent of Banks. The Superintendent are as of this date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1714 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Bank was organized and commenced business sound banking, the public interest, and banking in 1956, and its only office had nearly $4 million competition. The aggregate deposits of $555 milin total deposits at year-end 1964. Its financial lion held by Applicant's two banks would, by the history and condition and its prospects are con- addition of Bank to Applicant's system, be insidered to be satisfactory. Bank's management is creased to about $559 million. Applicant would also considered to be satisfactory, although it ap- then control slightly more than three per cent of pears that such management has not fully met the the total deposits in Lake County and less than credit needs of the area, especially with respect to four per cent of the total deposits in the State of mortgage and consumer loans, and some types of Ohio. installment loans. As a result, Bank's percentage The effect on banking competition to be anof loans to deposits has been substantially less than ticipated by the extent to which banking resources that for other banks shown to be competing within would be concentrated in holding company groups, Madison Township. Affiliation with Applicant were Applicant's acquisition of Bank to be conshould result in more aggressive management, summated, is not viewed by the Board as a conwhich, in turn, would be expected to enhance sideration requiring denial of the application. Bank's prospects. BancOhio Corporation, Columbus, Ohio, the only Accordingly, considerations bearing on the fi- other registered bank holding company now opernancial history, condition, prospects, and man- ating in the State, has no subsidiaries in any of agement of Applicant and Bank are consistent with the counties in which Applicant has or will have approval of the application. subsidiaries. Convenience, needs, and welfare of the com- In addition, the five largest banks and banking munities and the area concerned. North Madison systems operating in Ohio at year-end 1964 conis located 42 miles east of Cleveland in Madison trolled 16.5 per cent of all banking offices and 33.4 Township, Lake County, Ohio. The current popu- per cent of the deposits of all banks in the State. lation of Lake County is estimated to be 182,000, BancOhio Corporation's system of 22 banks, operand the current population of Madison Township, ating a total of 71 offices with $809 million in dethe primary service area of Bank,2 is estimated posits, ranked fourth in size, and Applicant's to be 10,000. Madison Township is predominantly present system of two banks, operating 18 offices a suburban residential area having some agricul- with $555 million in deposits, ranked fifth in size. tural and industrial sections. The principal agricul- Measured in terms of deposits held, three intural activity in the area is nursery production. dependent banks were each larger than the com- Eight light industries, with a total labor force of bined bank subsidiaries of either holding company approximately 240, also operate within the service system, and together these three banks accounted area. for 10.2 per cent and 23.9 per cent, respectively, Applicant asserts that its acquisition of Bank of the offices and deposits in the State. will enable Bank to (1) improve its lending pro- In the Board's opinion, no bar to approval of gram to the individuals and businesses in the area, the application is presented by consideration of (2) have access to electronic data processing the extent to which Applicant's ownership of Bank equipment, (3) offer securities investment manage- would eliminate existing competition or foreclose ment services, and (4) provide new and additional future competition between Bank and Applicant's services to its customers. subsidiaries. With the approval of the application, Applicant will be operating in two contiguous On the basis of the record presented, the Board counties—Cuyahoga County wherein National is is satisfied that Applicant's proposed improved located, and Lake County wherein Bank's only service rendition would prove of direct benefit to office is located. Applicant's other subsidiary, The Bank, and indirectly to the residents and businesses Fremont Savings Bank Company, is located 85 of Bank's primary service area. miles west of Cleveland in Sandusky County. Effect of proposed acquisition on adequate and There presently exists little or no competition between Applicant's subsidiaries and Bank. The 2 The area from which Bank obtains approximately nearest branch of National to North Madison is 71 per cent of its deposits of individuals, partnerships, and corporations. in Euclid, Ohio, 32 miles west of Bank, and several Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1715 LAW DEPARTMENT offices of other banks are located between Euclid Company Act of 1956 (12 U.S.C. 1842(a)(2)) and North Madison. and section 222.4(a) (2) of Federal Reserve Reg- Bank's principal competitor in the North Madi- ulation Y (12 CFR 222.4(a)(2)), an application son area is the Lake County National Bank of by Brenton Companies, Inc., Des Moines, Iowa, a Painesville, Painesville, Ohio, which at June 30, registered bank holding company, for the Board's 1964, operated eight banking offices and held prior approval of the acquisition of at least 80 $62 million of total deposits, which accounted for per cent of the outstanding voting shares of Dallas 52 per cent of the total deposits in Lake County. County State Bank, Adel, Iowa. One of these offices is located two miles south of As required by section 3(b) of the Act, notice Bank, in Madison. Bank also competes with four of receipt of the application was given to the Geneva, Ohio, branch offices of the following Iowa Superintendent of Banking with a request three Ashtabula, Ohio, banks: (1) The Com- for his views and recommendation. The Deputy mercial Bank, with deposits of $6 million; (2) The Superintendent of Banking advised that the Iowa Farmers National Bank and Trust Co., with de- Department of Banking had no objection to the posits of $35 million; and (3) The Northeastern application. Notice of receipt of the application Ohio National Bank with deposits of $29 million.8 was published in the Federal Register on Septem- Geneva is located in Ashtabula County, six miles ber 25, 1965 (30 Federal Register 12309), which east of Bank. In view of the fact that each of provided an opportunity for submission of com- Bank's principal competitors has deposits com- ments and views regarding the proposed acquisiparable to or greater than Bank, and since no tion. The time for filing such comments and views subsidiary of Applicant competes to any sig- has expired, and all those received have been connificant extent in the area concerned, it appears sidered by the Board. to the Board that consummation of the proposed IT IS HEREBY ORDERED, for the reasons set forth acquisition would not significantly alter the present in the Board's Statement of this date, that said competitive picture in that area. application be and hereby is approved, provided The foregoing considerations warrant, in the that the acquisition so approved shall not be con- Board's opinion, a finding that the acquisition pro- summated (a) within seven calendar days after posed would not result in an expansion of the size the date of this Order or (b) later than three or extent of Applicant's system inconsistent with months after said date. adequate and sound banking, the public interest, Dated at Washington, D.C., this 26th day of or the preservation of banking competition. November, 1965. On the basis of all the relevant facts as con- By order of the Board of Governors. tained in the record before the Board, and in the light of the factors set forth in section 3(c) of the Voting for this action: Unanimous, with all members present. Act, it is the Board's judgment that the proposed (Signed) MERRITT SHERMAN, transaction would be consistent with the public Secretary. interest, and that the application should, therefore, [SEAL] be approved. BRENTON COMPANIES, INC., DES MOINES, BRENTON COMPANIES, INC., DES MOINES, IOWA IOWA In the matter of the application of Brenton In the matter of the application of Brenton Companies, Inc., Des Moines, Iowa, for approval Companies, Inc., Des Moines, Iowa, for approval of the acquisition of voting shares of Palo Alto of the acquisition of voting shares of Dallas County State Bank, Emmetsburg, Iowa. County State Bank, Adel, Iowa. ORDER APPROVING APPLICATION UNDER BANK ORDER APPROVING APPLICATION UNDER BANK HOLDING COMPANY ACT HOLDING COMPANY ACT There has come before the Board of Governors, There has come before the Board of Governors, pursuant to section 3(a)(2) of the Bank Holding pursuant to section 3(a) (2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(2)) 3 Deposit figures are as of June 30, 1964. and section 222.4(a)(2) of Federal Reserve Reg- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1716 FEDERAL RESERVE BULLETIN • DECEMBER 1965 ulation Y (12 CFR 222.4(a)(2)), an application Superintendent of Banking advised that the Iowa by Brenton Companies, Inc., Des Moines, Iowa, a Department of Banking had no objection to apregistered bank holding company, for the Board's proval of either application. prior approval of the acquisition of at least 80 per Statutory factors. With respect to each applicacent of the outstanding voting shares of Palo Alto tion, section 3(c) of the Act requires the Board to County State Bank, Emmetsburg, Iowa. take into consideration the following five factors: As required by section 3(b) of the Act, notice (1) the financial history and condition of the holdof receipt of the application was given to the ing company and the banks concerned; (2) their Iowa Superintendent of Banking with a request for prospects; (3) the character of their management; his views and recommendation. The Deputy Super- (4) the convenience, needs, and welfare of the intendent of Banking advised that the Iowa De- communities and the areas concerned; and (5) partment of Banking had no objection to the ap- whether the effect of the proposed acquisition plication. Notice of receipt of the application was would be to expand the size or extent of the bank published in the Federal Register on September holding company system involved beyond limits 25, 1965 (30 Federal Register 12309), which consistent with adequate and sound banking, the provided an opportunity for submission of com- public interest, and the preservation of competition ments and views regarding the proposed acquisi- in the field of banking. tion. The time for filing such comments and views Discussion. Although the applications have been has expired, and all those received have been con- acted upon separately, the Board has determined sidered by the Board. that unnecessary repetition of facts and conclu- IT IS HEREBY ORDERED, for the reasons set forth sions resulting from application of the foregoing in the Board's Statement of this date, that said statutory factors may be avoided through the use application be and hereby is approved, provided of a combined Statement. Accordingly, while sepathat the acquisition so approved shall not be con- rate Orders effecting the Board's determinations summated (a) within seven calendar days after accompany this Statement, the Board's findings, the date of this Order or (b) later than three conclusions, and reasoning in respect to each apmonths after said date. plication are combined in this Statement. Dated at Washington, D.C., this 26th day of No- Applicant presently has a majority interest in 12 vember, 1965. banks and owns, respectively, 31 per cent and 34 per cent of the outstanding shares of Dallas County By order of the Board of Governors. State Bank and Palo Alto County State Bank, the Voting for this action: Unanimous, with all members two banks that are the subjects of these applicapresent. tions. Consummation of these proposals would (Signed) MERRITT SHERMAN, add to Applicant's presently owned shares, the Secretary. shares in both banks that are now owned by the [SEAL] Brenton family interests and associates. The Bren- STATEMENT ton family owns a majority of the outstanding Brenton Companies, Inc., Des Moines, Iowa stock of Applicant. Thus, the present majority ("Applicant"), a registered bank holding company, ownership of the Banks now held by Applicant has filed applications, pursuant to section 3(a) (2) and the Brenton family interests and associates of the Bank Holding Company Act of 1956 ("the would vest in the Applicant alone upon consum- Act"), requesting the Board's prior approval of mation of the proposed acquisitions. the acquisition of at least 80 per cent of the out- The financial history and condition, prospects, standing voting shares of Dallas County State and management of Applicant and each of its Bank, Adel, Iowa, and Palo Alto County State banks, including the Banks involved in these ap- Bank, Emmetsburg, Iowa ("Banks"). plications, are considered satisfactory. Views and recommendations of supervisory au- In view of the successful operations records of thority. As required by section 3(b) of the Act, the Applicant's subsidiary banks, there is no reason to Board notified the Iowa Superintendent of Bank- conclude that approval of these applications will ing of receipt of the applications and requested his result in any change by Applicant in the present views and recommendations thereon. The Deputy nature of Banks' operations. Banks have been Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1717 subsidiaries of Applicant since prior to enactment F.R. 6368), providing an opportunity for interof the Act. They have been provided by Appli- ested persons to submit comments and views with cant with management services and no change in respect to the proposed acquisition. The time for this respect will occur upon approval of these ap- filing such comments and views has expired, and plications. Similarly, there is no reason to believe all those received have been considered by the that consummation of the proposed transactions Board. would have any significant effect on the con- IT IS HEREBY ORDERED, for the reasons set forth venience, needs, and welfare of the areas now in the Board's Statement of this date, that said served by the Banks. Nor, in view of the existing application be and hereby is approved, provided ownership and control of the Banks, does it ap- that the acquisition so approved shall not be conpear that the acquisitions proposed will have the summated (a) within seven calendar days after the effect of expanding the size or extent of Applicant's date of this Order or (b) later than three months present system beyond limits consistent with ade- after said date. quate and sound banking, public interest, and the Dated at Washington, D.C., this 1st day of preservation of banking competition. December, 1965. On the basis of all relevant facts as contained By order of the Board of Governors. in the record before the Board and in the light of the factors set forth in section 3(c) of the Act, it Voting for this action: Unanimous, with all members present. is the Board's judgment that the proposed acquisi- (Signed) MERRITT SHERMAN, tions would be consistent with the public interest Secretary. and that the applications should, therefore, be [SEAL] approved. STATEMENT BANCOHIO CORPORATION, COLUMBUS, BancOhio Corporation, Columbus, Ohio ("Ap- OHIO plicant"), a registered bank holding company, has In the matter of the application of BancOhio filed with the Board, pursuant to section 3 (a) (2) Corporation, Columbus, Ohio, for approval of the of the Bank Holding Company Act of 1956 ("the acquisition of up to 100 per cent of the outstand- Act"), an application for approval of the acquisiing voting shares of The First National Bank of tion of up to 100 per cent of the outstanding voting Jackson, Jackson, Ohio. shares of The First National Bank of Jackson, Jackson, Ohio ("Bank"). ORDER APPROVING APPLICATION UNDER BANK Views and recommendation of supervisory au- HOLDING COMPANY ACT thority. As required by section 3(b) of the Act, There has come before the Board of Governors, notice of receipt of the application was given to, pursuant to section 3(a) (2) of the Bank Holding and views and recommendation requested of, the Company Act of 1956 (12 U.S.C. 1842(a)(2)), Comptroller of the Currency. The Comptroller and section 222.4(a)(2) of Federal Reserve Reg- recommended approval of the application. ulation Y (12 CFR 222.4(a)(2)), an application Statutory factors. Section 3(c) of the Act reby BancOhio Corporation, Columbus, Ohio, a quires the Board to take into consideration the folregistered bank holding company, for the Board's lowing five factors in acting on this application: prior approval of the acquisition of up to 100 per (1) the financial history and condition of the cent of the outstanding voting shares of The First holding company and the banks concerned; (2) National Bank of Jackson, Jackson, Ohio. their prospects; (3) the character of their man- In accordance with section 3(b) of the Act, the agement; (4) the convenience, needs, and welfare Board notified the Comptroller of the Currency of the communities and the area concerned; and of receipt of the application and requested his (5) whether or not the effect of the acquisition views and recommendation with respect to the ap- would be to expand the size or extent of the bank plication. The Comptroller recommended approval holding company system involved beyond limits of the application. consistent with adequate and sound banking, the Notice of receipt of the application was pub- public interest, and the preservation of competition lished in the Federal Register of May 6, 1965 (30 in the field of banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1718 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Financial history, condition, and prospects of ownership continue to be sound, are also satis- Applicant and Bank concerned. Applicant, orga- factory. nized under the laws of the State of Ohio on Sep- Character of management of Applicant and tember 29, 1929, has been regulated, since 1933, Bank. BancOhio and its subsidiaries have been and as a holding company affiliate. Its financial history are satisfactorily managed, as has been demonand condition have been found to be satisfactory. strated over a substantial period of years. The data of record reflect that, as of March 31, Bank's ownership and management have been 1965, Applicant had cash and miscellaneous se- good but a change of ownership and management curities amounting to $1.5 million in excess of its is imminent. Control has been held for years by liabilities. As of December 31, 1964,1 its invest- a Mr. Jones who, with his family and the corporament in 22 subsidiary banks, the last of which was tions he controls, owns approximately 78 per cent acquired in 1958, represented 97 per cent of the of Bank's outstanding shares. He proposes to sell total assets of Applicant. Deposits amounted to his interest in Bank and retire. Several key direcapproximately $809 million,2 and capital and loan tors of Bank also plan to relinquish their positions. reserves were $78 million, a ratio of 1 to 10.3 of Applicant states that Mr. Jones refused to negotideposits. Ohio National Bank, Columbus (Frank- ate with potential purchasers, other than Applilin County), Applicant's largest banking sub- cant, for the reason that the principals were unsidiary, held approximately $492 million of de- disclosed and he could not, therefore, be sure of a posits, more than 50 per cent of the total held by continuity of satisfactory management for Bank. all of Applicant's banks. The operation of the 22 Applicant is in a position to provide, as needed, subsidiary banks has been found to be satisfactory. qualified officers and capable directorate for Bank. The subsidiary banks' reported profits, dividends Bank's affiliation with Applicant offers reasonable paid, and earnings retained for the years 1960assurance of a continuity of competent, experi- 1964 indicate the substantial growth enjoyed by enced executive management. While the Board BancOhio and its subsidiary banks. The Board recognizes that Applicant's proposed acquisition concludes that the financial history, condition, and is not the only solution to Bank's management sucprospects of Applicant and its subsidiary banks are cession problem, the Board finds the proposal satisfactory. herein to be an immediate and reasonable solution, Bank, originally established as a private bank in and concludes that the factor of management is a 1865, became a national bank in 1871. It is located consideration favorable to approval of the applicain Jackson, Ohio, approximately 75 miles south of tion. Columbus. The record shows for Bank approxi- Convenience, needs, and welfare of the commate deposits of $15 million, assets of $17 million, munities and the area concerned. Bank is the only loans of $6 million, and capital and reserves for bank in Jackson, a city with a population of aploans and securities amounting to $1.6 million. Deproximately 7,100. The primary service area of spite the poor economic climate of Jackson Bank,* with an estimated population of about 30,- County,3 Bank's earnings have been good and its 000, includes all of Jackson County and a small capital position satisfactory. Bank's growth over agricultural section of contiguous Pike County. the last five years is reflected by an increase in The primary service area covers a territory within deposits and loans of about 19 per cent and 18 an estimated average distance of 12 miles from per cent, respectively. Profits and dividends have Bank. There are three other banks in the area. also increased. The Board concludes that Bank's Two are in Wellston, 9 miles northeast of Jackfinancial history and condition are satisfactory. Its son, and one is in Oak Hill, 12 miles to the south prospects, provided management and controlling of Jackson. They are small, indepedent banks, 1 Unless otherwise indicated, all data herein are as of each having one office, and their combined dethis date. posits are less than the deposits of Bank. The rec- 2 A merger in 1965 of the Farmers Bank, Sunbury, ord reflects that business growth in the area has with Applicant's First National Bank of Delaware in Delaware, Ohio, increased these deposits to $811.7 million. *The area from which Applicant indicates that 84 3 It has been included in the Federal Appalachia per cent of Bank's deposits of individuals, partnerships, Program. and corporations ("IPC deposits") originate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 1719 been only moderate in recent years and that the chants Bank, Logan (43 miles north), and Naarea could benefit from additional economic tional Bank of Portsmouth, Portsmouth (37 miles stimuli. The application reflects that, in the 10-year southwest). Analyses of the origins of loan and period ending June 1964, three important indus- deposit accounts at the three named subsidiary tries left Jackson. Further, median family income banks, and of the deposits and loans at Bank, show and average value of dwelling units in Jackson are that Applicant's three subsidiaries nearest Bank substantially below State averages. Apropos of this are not significant competitors in Bank's area of situation, Applicant asserts that its diversified con- operations; nor is Bank a significant competitor in tacts with national companies and correspondent the area of Applicant's subsidiaries. banks can assist in obtaining new business for the According to Applicant, apart from the aforearea. Applicant's financial resources and its past mentioned three subsidiary banks, 13 other banks operating history lend support to its assertion. are located, respectively, from 18 to 45 miles from The services now offered by Bank appear to be Bank's location, all outside Bank's primary service serving adequately the needs arising within Bank's area. Considering the sizes of these banks, their service area—a fact evidenced by Applicant's distances from Bank, and the fact that the two statement that no significant changes in services banks in Wellston are located between Bank and are presently contemplated. In the foreseeable the closest of the 13 banks aforementioned, it may future, however, Applicant anticipates a need for, reasonably be concluded that the latter banks are and stands ready to initiate at or through Bank, not significant competitors of Bank. such services as assisting in the administration of It appears that little significant competition ex- Bank's investment account; preparation of tax ists between and among the banks within Bank's returns; performance of examination and audit primary service area. Each of the two banks functions; consultation on matters involving credit, located in Wellston, some 9 miles northeast of insurance, personnel, systems, and procedures; Jackson, and the bank in Oak Hill, 12 miles south and, eventually, furnishing data processing serv- of Jackson, appear to derive a major portion of ices. While the nature of the improved or addi- their business from the communities in which they tional services mentioned is such that their rendi- are located. The respective sizes of these institution would benefit most directly Bank, indirectly tions and the topographical features of the comthe public also would be benefitted. munities in which they are situated make unlikely It should be noted that the Board's earlier find- any significant competition with Bank. ing regarding the beneficial effect of Applicant's For the foregoing reasons, the Board concludes ownership of Bank, in respect to providing man- that the proposed affiliation would not adversely agement succession in Bank, bears also upon the affect, to any significant degree, the competitive convenience and needs of the area concerned, force of other banks in the area. especially in the light of the fact that Bank is the Regarding the increase in the size of Applilargest of the four banks in the primary service cant's system that would follow consummation of area and no purchaser acceptable to the stock- the acquisition proposed, Applicant's present conholders is immediately available other than Ap- trol of 5.7 per cent of the deposits and 5.1 per plicant. cent of the banking offices of all commercial banks On the basis of the foregoing findings, the Board in the State would be increased, respectively, by concludes that considerations bearing on the con- .1 per cent or less. Similarly, total loans held by venience, needs, and general welfare of the com- Applicant's subsidiaries would be increased by munities and area concerned lend some weight but .1 per cent. Applicant's system is the fourth toward approval of Applicant's proposal. largest banking organization in Ohio.5 Its deposits Effect of proposed acquisition on adequate and sound banking, public interest, and banking com- 5 Society Corporation, the only other registered bank petition. None of Applicant's subsidiary banks' holding company in Ohio, is the fifth largest banking offices is located in Bank's primary service area. organization in the State and controls deposits of approximately $559 million. The two bank holding com- Of Applicant's subsidiaries, the three which are panies in the State control 6.4 per cent of the offices closest to Bank are First National Bank, Chilli- and 9.6 per cent of the deposits of all commercial cothe (29 miles northwest), Farmers and Mer- banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1720 FEDERAL RESERVE BULLETIN • DECEMBER 1965 are exceeded by those of the Cleveland Trust Co. except for Franklin County where BancOhio has ($1,640 million), National City Bank of Cleveland 3, including the largest, of the 9 banks in the ($970.4 million), and Central National Bank, County. In each of 8 of the other 19 counties, Ap- Cleveland ($815.6 million). Acquisition of Bank plicant's bank is the largest bank; however, in each would raise Applicant to the rank of third by a of these 8 counties, with one exception, there is a small margin. On the State scene, it is reasonable bank of a size to be a fairly strong competitor. In to conclude that the proposed increase in size will the remaining 11 of the said 19 counties, Apnot cause an alarming or undue concentration of plicant's bank is not the largest. As indicated banking resources, nor does it demonstrate a tend- earlier, the affiliation herein would leave 67 Ohio ency to monopoly by the Applicant. counties where Applicant has no subsidiary. The Board notes that Applicant's expansion in Consummation of Applicant's proposal would the period 1951-1964, inclusive, appears to reflect, result in control of 52 per cent of the deposits of primarily, internal growth, rather than predatory commercial banks in Jackson County. The appractices or a tendency toward monopoly. While its pearance of dominance presented is lessened by subsidiaries' deposits rose, in that period, from a number of considerations. Applicant has no bank about $404 million to about $809 million—an in the City of Jackson or in Bank's primary service increase from 5.2 to 5.7 per cent of deposits of area. The area is not a significant one in the State commercial banks in the State—the increase in from the point of view of population, economy, or size was due, only in small measure, to acquisitions banking. In the light of these considerations and of existing banks. Applicant acquired four exist- all the data in the record, it appears to the Board ing banks with total deposits of about $24.6 mil- that the proposed acquisition would not create lion. Over a 31-year period (1934-1964), Ap- such concentration of banking resources as to replicant acquired or merged 15 existing banks with quire a disapproval of the application. aggregate deposits of about $48.5 million. The Department of Justice submitted views on Applicant's subsidiaries are located in 20 count- the subject application, but refrained from making ies, 17 of which are contiguous, in central and any recommendation. The data and views based thereon as presented in the Department of Justice south-central Ohio. Acquisition of Bank would statement have been considered by the Board, toincrease to 19 the number of contiguous counties gether with Applicant's reply thereto. The Deserved by Applicant's system. If the proposal is partment's suggestion, that the proposed acquisiconsummated, the deposits of Applicant's banks tion may serve as a precedent or set a pattern for would rise from 41 per cent to 42 per cent of the future expansion, is not considered to be a signifideposits of all commercial banks in the 21 counties cant factor adverse to the proposed acquisition, (out of Ohio's 88 counties) in which Applicant as the Board consistently has taken the position would have banks. Excluding Franklin County, inthat each application must be considered on the clusion of which heavily weights the percentages pertinent facts presented and that a decision by because Applicant's largest subsidiary is located the Board in a given matter does not constitute there and Applicant's three subsidiaries in Frankany commitment on future applications. lin County account for about 47 per cent of Ap- In the light of the foregoing considerations and plicant's offices and about two-thirds of its deall the facts in the record, the Board concludes posits,8 the increase in the 20 counties would be that consummation of the subject proposal would from 29.3 per cent to 31 per cent. Commercial not increase Applicant's size or extent beyond limbanks in the aforementioned 21 counties hold ap- its consistent with adequate and sound banking, proximately 14 per cent of total deposits of all the public interest, and the preservation of comcommercial banks in Ohio. petition in the field of banking. In each of the 20 counties where Applicant's On the basis of all the relevant facts as conbanks are located, BancOhio has only one bank, tained in the record before the Board, and in the light of the factors set forth in section 3(c) of the 8 It may be observed that, in Franklin County in the Act, it is the Board's judgment that the proposed 10-year period 1955 to 1964, inclusive, the percentage transaction would be consistent with the public of deposits held by Applicant's banks decreased from 57 to 52, while the percentages of the other two large interest, and that the application should, therefore, Columbus banks increased. be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements ELECTION OF CLASS A AND CLASS B DIRECTORS The Federal Reserve Banks have announced the results of the annual elections by their member banks of Class A and Class B directors as shown below. The directors have been elected to serve for three years beginning January 1, 1966. Boston Class A LAWRENCE H. MARTIN, President, The National Shawmut Bank of Boston, Massachusetts. Mr. Martin succeeds Ostrom Enders, Chairman, Hartford National Bank and Trust Company, Hartford, Connecticut. Class B JOHN R. NEWELL, Vice Chairman, Bath Iron Works Corporation, Bath, Maine. (Re-elected) New York Class A ROBERT G. COWAN, Chairman, National Newark and Essex Bank, Newark, New Jersey. Mr. Cowan succeeds Ralph H. Rue, Chairman, The Schenectady Trust Company, Schenectady, New York. Class B MILTON C. MUMFORD, Chairman, Lever Brothers Company, New York, New York. Mr. Mumford succeeds Kenneth H. Hannan, Executive Vice President, Union Carbide Corporation, New York, New York. Philadelphia Class A HOWARD C. PETERSEN, President, Fidelity-Philadelphia Trust Company, Philadelphia, Pennsylvania. Mr. Petersen succeeds Benjamin F. Sawin, Vice Chairman of the Board, Provident National Bank, Philadelphia, Pennsylvania. Class B RALPH K. GOTTSHALL, Chairman of the Board and President, Atlas Chemical Industries, Inc., Wilmington, Delaware. (Re-elected) Cleveland Class A EVERETT D. REESE, Chairman of the Board, The City National Bank & Trust Company of Columbus, Ohio. Mr. Reese succeeds Frank E. Agnew, Jr., Chairman of the Board and Chief Executive Officer, Pittsburgh National Bank, Pittsburgh, Pennsylvania. Class B WALTER K. BAILEY, Chairman of the Board, The Warner & Swasey Company, Cleveland, Ohio. (Reelected) 1721 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1722 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Richmond Class A WILLIAM A. DAVIS, Executive Vice President and Cashier, Peoples Bank of Mullens, West Virginia. Mr. Davis succeeds David K. Cushwa, Jr., President, The Washington County National Savings Bank, Williamsport, Maryland. Class B CHARLES D. LYON, President, The Potomac Edison Company, Hagerstown, Maryland. Mr. Lyon succeeds R. E. Salvati, Consultant, Island Creek Coal Company, Huntington, West Virginia. A tlanta Class A JOHN W. GAY, President, The First National Bank, Scottsboro, Alabama. He succeeds M. M. Kimbrel, who had resigned. Class B HARRY T. VAUGHN, President, United States Sugar Corporation, Clewiston, Florida. Mr. Vaughn succeeds McGregor Smith, Chairman of the Board, Florida Power & Light Company, Miami. Florida. Chicago Class A HARRY W. SCHALLER, President, The Citizens First National Bank of Storm Lake, Iowa. (Re-elected) Class B JOSEPH O. WAYMIRE, Vice President & Treasurer, Eli Lilly and Company, Indianapolis, Indiana. Mr. Waymire succeeds William A. Hanley, Director, Eli Lilly and Company, Indianapolis, Indiana. 5/. Louis Class A HARRY F. HARRINGTON, Chairman of the Board, The Boatmen's National Bank of St. Louis, Missouri. (Reelected) Class B SHERWOOD J. SMITH, Vice President, Whirlpool Corporation, Evansville, Indiana. Mr. Smith succeeds Harold O. McCutchan, Senior Executive Vice President, Mead Johnson & Company, Evansville, Indiana. Minneapolis Class A CURTIS B. MATEER, Executive Vice President, The Pierre National Bank, Pierre, South Dakota. (Reelected) Class B JOHN H. TOOLE, President, Toole and Easter Company, Missoula, Montana. (Re-elected) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 1723 Kansas City Class A BURTON L. LOHMULLER, President, The First National Bank of Centralia, Kansas. (Re-elected) Class B STANLEY LEARNED, President & Chief Executive Officer, Phillips Petroleum Company, Bartlesville, Oklahoma. Mr. Learned succeeds K. S. Adams, Chairman of the Board, Phillips Petroleum Company, Bartlesville, Oklahoma. Dallas Class A RALPH A. PORTER, President, The State National Bank of Denison, Texas. (Re-elected) Class B J. B. PERRY, Jr., President and General Manager, Perry Brothers, Inc., Lufkin, Texas. (Re-elected) San Francisco Class A RALPH V. ARNOLD, President & Chairman of the Board, First National Bank and Trust Company, Ontario, California. Mr. Arnold succeeds M. Vilas Hubbard, Chairman of the Board & Chief Executive Officer, Citizens Commercial Trust and Savings Bank of Pasadena, California. Class B HERBERT D. ARMSTRONG, Treasurer, Standard Oil Company of California, San Francisco, California. Mr. Armstrong succeeds Fred H. Merrill, President, Fireman's Fund American Insurance Companies, San Francisco, California. SUPPLEMENT TO BANKING AND MONETARY and Monetary Statistics. Copies may be obtained STATISTICS from the Division of Administrative Services, Assets and liabilities of Federal Reserve Banks Board of Governors of the Federal Reserve Sysfor periods from 1937 through 1941 are contained tem, Washington, D. C. 20551. (Price shown on in a new pamphlet now available, "Federal Re- page 1811.) serve Banks," Section 9 of Supplement to Banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication December 15 Industrial production continued to advance in In November, business equipment was 14 per cent November and nonfarm employment increased above the year-ago level. considerably further. Retail sales were little Output of most durable and nondurable matechanged. Industrial commodity prices edged up rials continued to increase except for a further further. Bank credit rose again, while the increase moderate decline in iron and steel production. in the money supply slowed substantially. Market interest rates increased between mid-November CONSTRUCTION and mid-December. Reserve Bank discount rates New construction put in place increased to an and maximum interest rates payable on bank time annual rate of $68.5 billion in November, but redeposits were raised December 6. mained below both the September peak and the average for the third quarter. Private construction INDUSTRIAL PRODUCTION expenditures held at the October rate as a further Industrial production in November rose to 145.5 decrease in residential activity was offset by a per cent of the 1957-59 average, a level above the rise in other private construction. Public construc- August high and IV2 per cent above last No- tion, revised downward for October, rose appreciavember. The index for October was revised upward bly. to 144.4 per cent. In both months gains were wide- EMPLOYMENT spread among final products and materials. Auto assemblies continued strong in November Nonfarm employment advanced nearly 300,000 and were at an annual rate of 9.3 million units. in November to register the largest monthly gain Output of household appliances continued to rise this year. In addition to continued large increases from the reduced summer level and was above in trade, services, and State and local governthe previous peak reached last spring. Furniture, ment, there was a sharp increase in manufacturing television sets, apparel, and consumer staples also employment. Gains were especially strong in the rose. Production of business equipment advanced metal-using industries; in nondurable goods infurther following large increases in October in in- dustries, only food showed a large advance. The dustrial and commercial machinery and aircraft. average workweek in manufacturing advanced to 41.4 hours and exceeded the peak rates in the first INDUSTRIAL PRODUCTION quarter. The unemployment rate edged down to 1957-59=100 4.2 per cent from 4.3 per cent in October. A year earlier it was 4.9 per cent. TOTAL^/^ - FINAL PRODUCTS^/3^'^ DISTRIBUTION ./"^MATERIALS Retail sales in November remained at about the ^ /. record October level. Sales at durable goods stores I ; 1 ! ! 1 1 ! I 1 / increased a little, while sales at nondurable goods J r stores declined slightly. Deliveries of new domestic _ ~ EQUIPMENT/'' f^— cars rose to an annual rate of 9.0 million units, - NONDURABLE _^-^V ~ MANUFACTURES^*^ equal to the high level of the summer months. ^0 CONSUMER Sales at furniture and appliance, apparel, and gen- =^\ \ > v/V / v' MA D N U U R F A A B C L T E U RES — *<rs^ /V GOODS _ eral merchandise stores also increased. - O — ! ! ! i i 1 1 I 1 1 1963 1965 1963 1965 COMMODITY PRICES F.R. indexes, seasonally adjusted. Latest figures shown are for November. The industrial commodity price index rose 1724 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NATIONAL SUMMARY OF BUSINESS CONDITIONS 1725 somewhat further in November and apparently Total and required reserves declined somewhat changed little to mid-December. Prices of steel in November. A further decline in borrowings acscrap and some steel products advanced, but an- companied by a small increase in excess reserves nounced increases in copper and brass prices were reduced net borrowed reserves to about $85 milsubsequently rescinded. Prices of 1966 model cars lion, little more than half the level of the two prewere somewhat lower than year-ago prices of com- vious months. Reserves were supplied principally parable 1965 models, apart from the reduction in through System purchases of U.S. Government the Federal excise tax. Hog prices advanced securities and were absorbed mainly through cursharply to the record levels of 1948 and prices of rency outflows. other meats and eggs also rose. Consequently, average prices of foodstuffs in early December SECURITY MARKETS were above the advanced levels reached last summer. Yields in all sectors of the capital markets moved upward between mid-November and mid- December. The advance accelerated in most sec- BANK CREDIT, MONEY SUPPLY AND RESERVES tors after an increase in the Reserve Bank dis- Commercial bank credit rose $2.6 billion in count rates from 4 to AV% per cent was announced November, about the same as in the previous December 6. On the same date maximum rates month. Although loans accounted for most of the payable on all member bank time deposits and expansion in both October and November, hold- certificates of deposit having a maturity of 30 ings of U.S. Government issues also increased in days or more were raised to 5Vi per cent. In midboth months as a result of Treasury financing December yields on 3-month Treasury bills were operations. Other security holdings rose by con- about 4.40 per cent, up about Vz of a percentage siderably less than the average of other recent point from mid-November. Corporate and State months. The money supply increased slightly in and local yields were the highest in 5 years. November following large gains in the two previ- After reaching an all-time high, common stock ous months, while the increase in time deposits prices fluctuated within a narrow margin from midwas about equal to the large amount in October. November to mid-December. PRICES INTEREST RATES Bureau of Labor Statistics indexes. Latest figures shown for Discount rate, range or level for all F.R. Banks. Weekly consumer prices, October; for wholesale prices, November esti- average market yields for U.S. Govt. bonds maturing in 10 mates. years or more and for 90-day Treasury bills. Latest figures shown, week ending Dec. 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation P Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area A Assets rp Revised preliminary L Liabilities S Sources of funds m, 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 tor 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 Nov. 1965 1608-17 Banking and monetary statistics, 1964. Feb. 1965 326-33 Mar. 1965 490-91 Jane 1965 888-91 Semiannuatly 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) Nov. 1965 1618-27 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 My 1965 1026 balances Sept. 1965 1340 1726 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 1728 Reserve Bank discount rates; margin requirements; reserve requirements 1733 Open market transactions; Federal Reserve Banks 1735 Bank debits; currency in circulation 1738 Money supply; banks and the monetary system 1740 Commercial and mutual savings banks, by classes 1742 Commercial banks, by classes 1746 Weekly reporting member banks 1748 Business loans 1751 Interest rates 1752 Security prices; stock market credit; open market paper 1753 Savings institutions 1754 Federal finance 1756 Federally sponsored agencies 1761 Security issues 1762 Business finance 1765 Real estate credit 1767 Consumer credit 1770 Industrial production 1774 Business activity; construction 1778 Employment and earnings 1780 Wholesale and consumer prices 1782 National product and income series 1784 Flow of funds 1786 Guide to tabular presentation 1726 Index to statistical tables 1815 The data for F.R. Banks and member banks and eral finance, and Federal credit agencies are obfor consumer credit are derived from regular tained from Treasury statements. The remainreports made to the Board; production indexes ing data are obtained largely from other are compiled by the Board on the basis of data sources. For many of the banking and monetary collected by other agencies; and flow of fundi series back data and descriptive text are availfigures are compiled on the basis of materials able in Banking and Monetary Statistic* 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). 1727 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1728 BANK RESERVES AND RELATED ITEMS DECEMBER 1965 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve funds F. R. Bank credit outstanding Deposits, other P d e o a ri r t o e d T U o .S ta . l G B o r v o o i t g u u . h g t- s t h e t cu R m r c a i e h g t e p i a r e n u e s s t e e r s - - c v D o a a a n n u d is d c n - - e ts s Float 1 t T al o - 2 s G to o c ld k T s r c r o e t u i e a u n n u r a n r g y c t - s - d y - - r c C t e c u i i n u i o n l r c r n a - - y - T h c r i u o n e a r g l a s y d h s s - - Tr t u h e w r a a y i s n t - h m r e F e s F e . e m R i o r g v . b r n - e e B s r , a O b n a t k h n s e k r i c O F o a t . u c h R n - e . t r s B W F a . n i R t k h M . s em r c e r C s a b e o e n n u e in r d r c r v - y 3 e b s an T k otal Averages of daily figures 1929—June 179 179 978 61 1,317 4,024 2.018 4.400 210 30 30 376 2.314 2,314 1933 June 1 933 1.933 250 12 2,208 4,030 2.295 5 455 272 81 164 350 2 211 ? 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 fin 24.744 20,047 4,322 28.452 2,269 625 1 247 493 16 027 16 027 1950—Dec 20,345 20,336 c 142 ,11721,606 22,879 4.629 27,806 1,290 615 9201 353 739 17.391 17,391 1955—Dec 24.602 24.318 284 840 ,38926.853 21.689 5.008 31,265 777 434 459 394 983 19.240 19,240 1956 Dec 24;765 24,498 267 706 633 27.156 21.942 5.064 31.775 772 463 372 247 998 19,535 19,535 1957 Dec 23,982 23,615 367 716 443 26,186 22,769 5.144 31,932 768 385 345 186 1,063 19 420 19 420 1958 Dec 26,312 26,216 96 564 1,49628,412 20.563 5.230 32.371 691 470 262 337 1,174 18,899 18.899 1959 Dec 27,036 26,993 43 911 1,42629,435 19,482 5.311 32,775 396 524 361 348 1,195 18.628 304 18,932 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 33.019 408 522 250 495 1,029 16,688 2,595 19,283 1961 Dec 29 098 29.061 37 152 1 92131,217 16,929 5.587 33.954 422 514 229 244 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 Nov 36 036 35,867 169 433 1 87438,421 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 17,964 3,645 21.609 1965 Jan 36,684 36,457 227 340 2 12639,245 15,258 5.395 39.013 652 875 180 223 949 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 1,63340,340 14,358 5.402 39.052 755 908 142 187 985 18,070 3,406 21,476 38 840 38:610 230 543 1 71441,153 14.277 5.402 39,508 772 844 142 182 1 196 18,187 3 522 21 709 July 39,249 358 527 1,83141,651 13,924 5.412 40.005 780 805 160 196 740 18,301 3,564 21,865 Aug 39,318 39^074 244 566 1,58141,504 13,858 5.433 40.104 810 924 215 185 480 18,076 3,544 21,620 Sept 39,108 39.055 53 533 1.922 41,610 13,858 5.469 40.347 809 978 210 195 287 18,111 3,618 21,729 Oct . 39.601 39,580 21 515 1,869 42,048 13,857 •"5,496r40,734 •800 1,024 169 209 142 18,323 3,636 21,959 40,127 1 485 1,965 42,649 13,845 5,538 41,371 802 930 174 224 296 18,235 J>3,722»21,957 Week ending— 1964 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 54837,878 15 463 5 538 38 43^> 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 35 711 35.642 69 479 1,634 37,910 15,462 5.505 38.446 484 666 122 197 1,111 17 851 3 359 21 210 11 35,986 35:671 315 429 1,711 38,201 15,463 5.497 38.793 503 546 139 205 1,153 17,823 3,192 21,015 18 ... 35 913 35.698 215 593 1,962 38,532 15,462 5.497 38.975 533 563 130 215 1 150 17 926 3 389 21 315 25 . 35,992 35.867 125 162 2,136 38,388 15,430 5,494 39,071 552 521 148 183 1,245 17.592 3,467 21,059 Dec 1 • • 36 667 36,667 377 1,86038,969 15,387 5.456 39,277 554 827 224 196 886 17 848 3 528 ~>\ 376 9 37.335 37.335 124 1,950 39,480 15,387 5.400 39.476 571 873 186 186 1,231 17,745 3,397 21,142 16 37,335 37.020 315 162 2,084 39,632 15,388 5,402 39,743 593 1.024 142 176 1,106 17 637 3 750 21 387 23 . 36 926 36.660 266 291 2 90740,175 15,387 5,404 39,834 608 978 144 183 1 057 18 160 3 681 21 841 30 36.936 366 535 2,88440,409 15,388 5.397 39,852 620 990 221 177 996 18.338 3 653 21 991 1965 37.058 36,515 543 340 2,62240,111 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 14939,522 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 2) 440 27 36,440 36,334 106 252 1 84138,631 15,187 5,387 38.644 657 997 151 213 877 17.668 3,591 21,259 Feb 3 36.876 36.769 107 323 ,61138.923 15.157 5.396 38.565 664 940 148 216 1.032 17.912 3,489 21.401 10 37,272 37,133 139 517 47739,384 15,045 5,391 38,641 679 924 152 207 1^8 18,060 3,252 21,312 17 . 37.151 37.088 63 398 54039,189 14.937 5,397 38,715 699 1.001 141 220 15R 17 589 3 460 21 049 24 36,812 36,718 94 565 ,73039,162 14,938 5,391 38,613 719 878 139 204 ,195 17.744 3,442 21,186 Mar. 3 36,911 36,835 76 315 ,92439,226 14,902 5,400 38,625 706 922 159 217 ,224 17,675 3,461 21,136 10 . 37,319 37,211 108 426 6^439,475 14,813 5,394 38,756 715 806 150 209 ->()-> 17 844 3 218 21 062 17 37,371 37,308 63 388 ,59739,484 14,741 5.397 38,894 717 912 132 191 ,061 17,714 3,454 21,168 24 37,305 37,305 482 00 •>39,900 14,562 5,393 38,796 735 956 139 186 980 18 064 3 448 21 512 31 37,419 37,401 i8 502 1,37639,444 14,562 5,397 38,714 746 898 146 181 875 17,843 3,523 21,366 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 BANK RESERVES AND RELATED ITEMS 1729 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors supplying reserve funds Factors absorbing reserve unds F. R. Bank crecit outstanding Deposits, other than member bank Member bank P d e o a ri r t o e d T U o . t S a . l Go B r v o o i t g u u . h t g - s t h e t cu R m c r a i e h g t e p i a r n e e u s t s e e r s - - c v D o a a a n u n d is c d n - - e ts s Float 1 t T al o - 2 s G to o c ld k r s o c e t u i a u n n u r n g r y c t - - d y - r c C t e c u i i n u i o n l r c a n r - - y - T h c i r u o n e a r l g s a y d h s s - - Tr u e w r a y i s t - h r e F s F e . e R i o g rv . r n - e B s, a O n t k h s er 1 c O F o a t . u c h R n - e . t r s B W F a . n R it k h s re r c C e s a o e n u n i r n c d r v - y e 3 s Total Averages of daily figures Week ending— 1965 Apr 7 37 725 37 496 229 586 1 40939 863 14 563 5 398 38 862 732 728 176 207 835 18 283 3 220 21 503 14 37.881 37 623 258 412 1,487 39,883 14,519 5 406 39 092 741 910 158 202 804 17,899 3 389 21 288 21 37,594 37.486 108 589 1,956 40,230 14.412 5,408 39.058 761 881 178 228 720 18.224 3,492 21,716 28 37 361 37 343 18 360 1 76739 548 14 413 5 406 38 802 744 921 166 190 767 17^777 3 623 21 400 May 5 37.894 37.501 393 494 1.641 40,137 14.411 5,409 38.825 747 837 164 205 827 18.353 3.390 21,743 12 38,190 37 565 625 514 1 55740 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 38.717 38.462 255 532 1,446 40,772 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 2.03741 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 41,102 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 1.718 41.955 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 2,20641.535 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 39 400 38.903 497 544 1.440 41,418 13.857 5.423 39,944 797 903 155 196 500 18.204 3.573 21,777 39.651 39 259 392 619 1.48041.786 13 858 5 422 40 125 800 1 050 198 191 470 18,230 3 372 21 602 18 39.136 39.037 99 493 I .770!41 .434 13.858 5.426 40 202 812 848 235 190 466 17.965 3 549 ''I 514 25 .... 39,134 38,971 163 54? 1,692 41,409 13,858 5.441 40,118 824 908 218 178 578 17,885 3,634 21,519 Sept 1 39.152 39.074 78 537 1,427 41,170 13,858 5.453 40,058 810 951 240 177 398 17,846 3,732 21,578 8 39.480 39 339 141 483 1,552 41.586 13 858 5 462 40 307 807 898 243 179 389 18,082 3 332 21 414 15 39 088 39 088 564 1 82141 508 13 857 5 470 40 488 809 987 212 191 312 17 836 3 748 21 584 22 38 708 38 621 87 635 2,53941 918 13 858 5 470 40 319 812 1 023 187 207 220 18,478 3 636 *>2 114 29 39 074 39 074 559 1 89841 578 13 858 5 474 40 286 811 961 199 199 222 18 ''32 3 658 21 890 Oct. 6 39,850 39,850 547 1,721 42,196 13,857 5.478 40,492 794 1,048 187 221 233 18,557 3,496 22,053 13 . ... 39,779 39,749 ""30 507 1,717 42.061 13,857 5.493 40.814 802 1,021 178 218 203 18.175 3.531 21,706 20 39 486 39 424 62 611 2,21042 347 13 858 5 501 40 848 810 1 053 170 204 78 18 544 3 729 22 273 27 39,292 39 292 372 1,916 41,642 13 857 5 504 40 729 803 975 161 196 81 18,058 3 780 21 838 Nov 3 39 829 39 829 533 1,635 42,082 13 858 5 512 40 817 786 927 154 214 176 18,377 3 734 22 111 10 40,253 40,249 4 369 1,925 42,616 13,858 5,532 41,112 792 1,063 179 215 261 18,386 3,518 21,904 17 40 048 40 048 522 1 98842,605 13 859 5 540 41 389 791 1 045 180 231 234 18,134 1 744 21 878 24 39,788 39,788 394 2,26442,501 13,843 5,542 41,520 806 884 180 217 319 17,959 3,788 21,747 End of month 1965 Sept 39.774 39.774 174 1,693 41 704 13 858 5 479 40 443 779 1 002 213 227 230 18,149 4,067 22 216 Oct 39,657 39,657 510 1,652 41,905 13,857 5,509 40,754 773 1,053 144 211 133 18,204 3,419 21,623 Nov 40,575 40,575 365 1 ,73942,789 "13 805''5 541''41 807 719 149 245 369 18 050i'4,179 "22 229 Wednesday 1965 Oct 6 39,791 39,791 511 1,543 41,920 13 859 5 491 40 692 802 1,224 183 210 228 17,931 3.645 21 576 13 .... 39 900 39 693 207 950 1 21142 117 13 859 5 503 40 968 812 916 168 195 81 18 339 4 044 22 383 20 39,200 39,200 414 1,872 41 525 13 859 5 508 40 837 813 891 162 201 75 17,913 4,094 22 007 27 39,238 39,238 366 1,443 41,106 13 859 5 502 40 770 803 1,085 153 196 73 17,387 4,211 21 598 Nov 3 40,277 40,277 635 1,39242 387 13 859 5 533 40 996 795 945 168 194 248 18,432 3,889 22 321 10 40,048 40,048 184 2,20742,505 13,859 5,539 41,410 790 1,190 188 305 255 17,764 3.959 21,723 17 40 048 40 048 281 2 16042 535 13 859 5 541 41 490 798 912 182 208 320 18 025 4 065 22 090 24 40,086 40,086 792 1,62442,600 13,809 5,544 41,720 836 870 158 222 303 17,844 4,244 22,088 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

1730 BANK RESERVES AND RELATED ITEMS DECEMBER 1965 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicsigo Period Reserves Bor- Reserves Bor- Reserves Borr i o n w gs - Free r i o n w gs - Free r i o n w gs - Free T h o e t ld al qu R i e re - d Excess B F a a . n R t k . s se r r e v - es T h o e t ld al qu R i e re - d Excess B F a a . n R t k . s se r r e v - es T h o e t l a d l qu R i e re - d Excess B F a a . n R t k . s se r r e v - es 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 1*H9 Dec 11 473 6 462 5 011 3 5 008 5,623 3,012 2 611 2,611 1,141 601 540 540 12 812 9 422 3 390 5 3 385 5 142 4,153 989 989 1 143 848 295 295 1945 Dec 16 027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1947 Dec 17,261 16,275 986 224 762 4,404 4,299 105 38 67 1,024 ,011 13 6 7 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 ,191 8 5 3 1955 Dec 19,240 18,646 594 839 -245 4,432 4,397 35 197 -162 1,166 ,164 2 85 -83 1956 Dec 19 535 18,883 652 688 -36 4,448 4,392 57 147 -91 1,149 118 12 97 -86 1957 Dec 19,420 18,843 577 710 -133 4,336 4,303 34 139 -105 1,136 .17,7 8 85 -77 1958 Dec 18 899 18 383 516 557 -41 4,033 4,010 23 102 -81 1,077 070 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 1960 Dec 19 283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1961 Dec 20 118 19 550 568 149 419 3,834 3,826 7 57 -50 987 987 22 -22 1962 Dec 20 040 19,468 572 304 268 3,863 3,817 46 108 -62 1,042 015 7 18 -11 1963—Dec 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 ,051 26 -21 1964—June 20,558 20,168 390 270 120 3,984 3,945 39 39 1,033 ,033 13 -13 1964 Nov 21 159 20 763 396 430 -34 3,893 3,882 11 97 -86 1,076 07? 4 20 -16 Dec .... 21 609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 ,086 28 -31 1965 Jan 21 619 21,217 402 299 103 4,117 4,073 43 113 -70 1,094 099 < 12 -17 Feb 21 227 20 790 437 405 32 3,966 3,961 5 95 -90 1,096 ,083 13 5C -37 Mar ... 21 248 20,908 340 416 -76 4,026 4,004 23 120 -97 1,082 077 C 50 -45 21 505 21,146 359 471 -112 4,111 4,087 25 75 -50 1,085 086 -1 39 -40 May 21 476 21,149 327 505 -178 4,135 4,127 8 21 -13 1,116 ,110 6 1( -4 June 21,709 21,366 343 528 -185 4,206 4,185 21 135 -114 1,100 1,096 A 19 -15 July 21,865 21,516 349 524 -175 4,155 4,164 -9 126 -135 1,102 1,100 27 -25 21 620 21,192 428 564 -136 4,097 4,026 71 103 -32 1,077 1,075 38 -36 Sept 21,729 21,356 373 528 -155 4,094 4,079 15 62 -47 1,091 1,088 46 -43 Oct 21,959 21,618 341 490 -149 4,112 4,105 8 36 -28 1,091 1,085 t 85 -80 "21,957 "21,589 "368 452 "-84 4,003 3,994 9 87 -78 1,086 1.085 i 32 -31 Week ending— 1964—Nov. 4 21,210 20,769 441 476 -35 4,021 3,989 32 220 -188 1,083 1,081 13 -10 11 21,015 20,646 369 427 -58 3,829 3,824 5 73 -69 1..065 1,059 5 18 21 315 20 724 591 590 1 3,862 3,837 24 131 -106 l"070 1,070 44 -44 25 21 059 20,801 258 159 99 3,904 3,879 25 10 15 1,083 1,078 5 1965—June 2 21,414 21,087 327 518 -191 4,124 4,109 15 20 1,099 1,096 15 -12 9 21,369 21,067 302 474 -172 4,069 4,064 5 52 -46 1,070 1,065 6 -2 16 21,649 21,249 400 611 -211 4,164 4,163 1 175 -173 1,083 1,079 £ 13 -9 23 22,060 21,644 416 583 -167 4,358 4,271 87 225 -138 1,128 1,119 C 38 -29 30 21,894 21,558 336 486 -150 4,256 4,253 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 18 -13 28.... 21,597 21,274 323 479 -156 4,107 4,093 14 37 -23 1,079 1,081 — A 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 3 22 -19 is!!!! 21,514 21,188 326 491 -165 4,028 4,009 19 7 12 1,068 1,070 68 -70 25 21,519 21,115 404 545 -141 4,003 3,995 8 61 -53 1,073 1,068 4 57 -53 Sept. 1 21,578 21,145 433 537 -104 4,081 3,995 86 96 -10 1,080 1,077 13 -9 8 21,414 21,041 373 483 -110 3,959 3,952 7 43 -36 1,071 1,065 13 -7 15 21 584 21,120 464 558 94 4 009 3 956 53 41 11 1 061 1,062 6 35 -35 22.... 22,114 21,681 433 627 -194 4,201 4,192 9 179 -171 1,128 1,120 7 47 -39 29 21,890 21,556 334 553 -219 4,252 4,194 58 3 56 1,105 1,105 102 -102 Oct. 6.... 22,053 21,613 440 536 -96 4,209 4,205 3 4 -1 1,090 1,090 1 119 -118 13 21,706 21,408 298 495 -197 4,035 3,999 36 83 -46 1,063 1,059 4 93 -90 20 22,273 21,783 490 591 -101 4,136 4,126 10 35 -25 1,097 1,093 A 154 -149 27.... 21,838 21,645 193 338 -145 4,115 4,109 6 11 < 1,097 1,095 1 c -7 Nov. 3 22,111 21,732 379 486 -107 4,173 4,142 31 102 -71 1,105 1,102 33 -30 10 21,904 21,476 428 334 94 4,016 3,939 77 79 1,066 1,060 \ 6 17 21,878 21,561 317 489 -172 3,823 3,971 -149 59 -207 1,064 1,063 105 -103 24.... 21,747 21,517 230 361 131 3,958 3,969 -11 50 62 1,078 1,075 3 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 BANK RESERVES AND RELATED ITEMS 1731 RESERVES AND BORROWINGS OF MEMBER BANES—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 l a d l Required Excess B F a . n R k . s reserves T h o e t ld al Required Excess B F a . n R k . s reserves 1929 June 761 749 12 409 —397 632 610 22 327 — 305 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—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 35 315 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 33 302 Mar 8,563 8,547 15 163 — 148 7,577 7,279 298 83 213 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 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 8,661 8,626 35 263 -228 7,785 7,465 320 160 160 Sept 8,681 8,641 40 286 -246 7,863 7,548 315 134 181 Oct 8,815 8,778 38 245 -207 7,941 7,651 290 124 166 Nov 8,801 8,757 44 221 -177 "8,067 »7,753 !>314 112 "202 Week ending— 1964—Nov. 4 8 585 8 543 41 163 -122 7 521 7 155 366 80 286 11 8,570 8,536 34 262 -228 7,551 7,227 324 92 232 18 .... 8,601 8,556 46 312 -266 7,782 7,261 521 103 418 25 8,624 8,576 48 73 -25 7,448 7,268 180 76 104 1965 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 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 8,635 8,597 38 265 -226 7,808 7,454 354 162 190 Sept 1 8,669 8,617 52 258 -205 7,747 7,456 292 170 119 8 8 602 8 551 50 286 —235 7,783 7,473 310 141 170 15 8,625 8,565 60 291 -232 7,889 7,536 352 191 159 22 .. 8,762 8,744 18 312 -294 8,023 7,624 399 89 310 29 8,778 8,689 89 322 -233 7,755 7,568 187 126 61 Oct 6 . 8,767 8,742 304 -279 7,987 7,576 411 109 302 13 8 755 8 715 194 -154 7,851 7 633 218 125 93 20 8 907 8 871 36 278 -242 8 133 7 693 440 124 316 27 8,795 8,771 24 186 -162 7,831 7,670 162 132 30 Nov 3 8 842 8 802 39 238 -199 7 991 7 685 306 113 195 10 8,769 8 725 43 129 -86 8,053 7 752 301 126 175 17 8,784 8,763 21 208 -187 8,208 7,764 444 117 327 24 8,758 8,711 47 212 -165 7,952 7,762 190 99 91 1 This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and opening figures for allowable cash; see also note 3 to preceding table. NOTE.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964 reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1732 MAJOR RESERVE CITY BANKS DECEMBER 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— s E e x r r c v e e - e s s s 1 r a o t B w F o i r n .R - g . s F i b e n N d a t e e n e r t r k a - l S d u e r o f p i r c l i u t s P re e q r o u c f e ir n e t d c P ha u s r e - s Sales a 2 t c T r - t o a w io n t a a n s y l - s2 b c o P h u f a u y n s i r n e e - a t g s o b S e f a l a l n n l i e n k e s g s t d L ea o t a l o e n r s s' de r f i a r n o o l w g e m s r - s* lo N a e n t s Banks t f r u a n n d s s . reserves banks Total—46 banks 1»65 Oct. 6 14 290 844 -1,120 11.4 2,291 1,447 984 1,307 463 516 133 384 13 52 276 1,322 -1,546 16.2 2,864 1,542 1,149 1,715 393 742 104 638 20 26 270 1,011 -1,255 12.8 2,194 1,183 798 1,397 386 979 102 877 27 31 41 692 -701 7.2 2,475 1,783 1,136 1,339 647 717 86 631 Nov 3. 38 168 631 -761 7.8 2,233 1,603 951 1,282 652 783 107 676 10 86 89 1,099 -1,102 11.6 2,560 1,461 1,100 1,460 362 499 92 407 17 25 216 1,022 -1,213 12.7 2,323 1,301 1,149 1,173 152 797 99 697 24 17 124 786 -892 9.4 2,162 1,376 1,043 1,119 333 835 119 716 S in New York City 1965 Oct 6 3 —41 44 1.1 808 849 516 292 333 434 102 332 13 29 83 466 -520 13.9 1,183 717 485 698 232 561 73 489 20 7 32 152 -177 4.6 819 666 410 409 256 721 75 647 27 15 11 46 50 1.3 1,005 1,051 604 401 447 553 54 499 Nov 3 18 96 -114 37 .9 834 949 467 367 481 596 75 521 10 57 79 296 -319 8.6 1,066 770 521 545 248 414 60 354 17. 12 59 379 -426 11.5 995 616 592 403 24 621 72 550 24 -9 46 202 -257 6.9 927 725 569 358 156 668 72 596 38 outside New York City 1965 Oct 6 11 290 885 -1,164 19.9 1.482 597 468 1,015 130 82 31 51 13 23 193 857 -1,026 17.8 ,682 825 664 1,017 161 181 32 149 20 20 238 859 -1,077 18.2 ,376 517 388 988 129 258 28 230 27 16 29 738 -751 12.7 ,469 732 531 938 200 164 32 133 Nov 3 . . 20 72 745 -797 13.5 ,399 654 484 915 170 187 32 156 10 29 10 802 -783 13.6 ,494 692 578 915 113 85 32 53 17 13 157 643 -787 13.5 ,327 685 557 770 127 175 28 147 24 26 78 584 -636 11.0 .235 651 475 761 177 167 47 120 5 in City of Chicago 1965 Oct 6 4 111 345 -453 46 2 503 158 158 345 8 6 2 13 88 356 443 46 8 521 164 164 356 7 6 20 3 143 255 -395 40.5 351 97 97 255 24 24 27 1 3 277 279 28 4 398 121 110 288 11 g g Nov. 3 2 31 294 -323 32.6 421 126 125 295 1 11 11 10. 4 325 -321 33.9 489 164 148 341 16 2 2 17 105 263 — 368 38 7 383 120 111 272 9 2 2 24 3 125 122 12 7 309 184 155 155 30 2 2 33 others 1965 Oct 6 7 179 540 -712 14 6 980 440 310 670 130 75 25 50 13 22 105 500 -583 12.1 1,161 661 500 661 161 180 25 155 20 17 95 604 -682 13.8 1,024 420 291 733 129 234 28 206 27 15 26 461 -472 9.6 1,071 611 422 650 189 156 32 125 Nov. 3 18 42 451 -475 9.6 978 528 359 619 169 177 32 145 10. 25 10 477 -462 9.6 1,005 528 431 574 97 83 32 51 17 13 52 380 -419 8.8 945 565 447 498 118 174 28 146 24 23 78 459 -513 10.6 926 467 320 606 147 165 47 118 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 Aug. 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

DECEMBER 1965 DISCOUNT RATES 1733 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. 13s Federal Res.er\e Bap1' Sees. 13 and 13a l Sec. 10(b)2 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Nov. 30 date Nov. 30 date Nov. 30 date rate Boston Nov. 24,1964 3'A 4'A Nov.24, 1964 S'A Nov. 24,1964 JB New York Nov. 24,1964 3'A 4'A Nov.24, 1964 Nov. 24,1964 Philadelphia Nov. 24,1964 3'A 4'A Nov.24, 1964 5 Nov. 24,1964 C R l i e c v h e m la o n n d d N N o ov v . . 2 2 7 7 , ,1 1 9 9 6 6 4 4 IB JB N N o o v v . . 2 2 7 7 , , 1 1 9 9 6 6 4 4 5 5 'A N N o ov v . . 2 2 7 7 , , 1 1 9 9 6 6 4 4 4'A C A S S K M D a t h t a a . i n l i n n l a c L l n s n a a F o a e t g s r a u s a . o a i p n s C o c i l i t i s y s co N N N N N N N o o o o o o o v v v v v v v . . . . . . . 2 2 2 2 2 3 3 4 5 4 7 7 0 0 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 4 4 4 4 4 4 4 3 3 3 3 3 m % % ' ' 1 A A 4 4 4 4 4 4 4 " ' ' ' ' ' ' A A A A A A /2 N N N N N N N o o o o o o o v v v v v v v . . . . . . . 2 2 2 2 2 3 3 7 7 5 0 4 4 0 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 6 6 6 6 6 6 6 4 4 4 4 4 4 4 6 5 5 5 5 5 5 J N N N N N N u o o o o o o l v v v v v v y . . . . . . 2 2 2 2 3 3 1 7 4 5 7 0 0 9 , , , , , , 1 1 1 1 1 1 1 ,9 9 9 9 9 9 9 6 6 6 6 6 6 6 3 4 4 4 4 4 4 4 4 4 1 . ' B / / / 2 2 i 4'A 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 matumaturities nol over 6 months and 9 months, respectively, and advances rity: 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 ill F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1932. 2'/2-3i/2 21/2 1953 1958 Jan. 16 Jan. 22 23,4-3 1933 23 24 234-3 Mar. 3 Mar. 7 21/4-3 2'A 4 31/2 13 21/4-2% 2'A Apr. 7 3 -3'A 3 1954 21 2'A 2'A M Oc a t y . 2 2 0 6 2 2 i /2 - - 3 3 ' i A /2 21/i Feb. 1 5 5 13 l3 4 /4 -2 l 1 3 3 /4 /4 A M p a r y . 1 9 8 13 1 / 3 4 /4 -2V4 l 1 3 3 / / 4 4 Apr. 14 13/4 Aug. 15 13/4-2 13/4 Feb. 2. 1934 /2 May 2 1 1 6 1 l> 1 / /2 Sept. 2 1 3 2 13/4-2 Mar. 16. iVi-3 Oct. 24 2 -2'A Nov. 7 21/2 2'A 1935 1955 Jan. 11 . Apr. 14 11/2-1 IB 1959 May 14. l'A-2 15 1141 Mar. 6 3 May 2 /4 16 k Aug. 4 154-2 f May 29 3 -3'A A Se u p g t . . 27 4 . . 1 1 - - 2 I'A Sept. 1 9 5 2 2 2 1 34 - - - 2 2 2 I J S u e n p e t. 1 1 1 2 1 8 3' 3 A 'A 4 13 214 4 Apr. 11. 1 Nov. 18 2V4-2 1960 Oct. 15. 1 23 2'A June 3 4 30. •M/2 10 3'/2 14 1946 Aug. 12 3 -3'A Apr. 25 . . . V 4 - 1 1956 Sept. 9 3 May 10. .. Apr. 13 !4 20 23/4-3 1963 1948 Aug. 24 23/4-3 July 17 3 -3% Jan. 12 1 -1 V4 31 26 31/2 19 I'A I'A Aug. 13 l'A-l I'A 1964 23 I'A i'A 1957 Nov. 24 3V4-4 Aug. 9 3 -3% 3 30 4 Aug. 21 . 1950 Nov. 2 1 3 5 3 31 - / 3 2 1/2 3'A 1965 25... Dec. 2 3 In effect Nov. 30 t Preferential rate of 'A of 1 per cent for advances secured by U.S. against U.S. Govt. securities was the same as its discount rate except Govt. securities maturing in 1 year or less. The rate of 1 per cent was in the following periods (rates in percentages): 1955—May 4-6, 1.65; continued for discounts of and advances secured by eligible paper. Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, NOTE.—Discount rates under Sees. 13 and 13a (as described in table 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3^t, 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

1734 RESERVE REQUIREMENTS DECEMBER 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. Jan. Jan. July Nov. Dec. Effective date ' Central reserve 1, 1, 17, 24, reserve Reserve Coun- and Coun- 1936 1957 1962 1963 1964 1965 city city try reserve try banks 3 banks banks city banks banks Savings deposits: 1 year or more 3 4 4 4 4 Less than 1 year. , % 3 3Vi 3 id 4 4 In effect Dec. 31, 1948.. 26 22 16 7V4 7Vi Other time deposits: 1 1949 May 1,5 24 21 15 7 7 1 year or more 2% 3 4 June 30, July 1.. 20 14 6 6 6 months-! year I* 3 4 % Aug. 1,11 !i* 8* 13 5 9 L 0 e s d s a t y h s a -6 n m 90 o n d t a h y s s 1 2V4 4 IB A Au u g g . . 2 1 5 6, 18 §* it* 12 5 (30-89 days) Sept. 1 1951—Jan. 11,16 23 19 13 6 6 Jan. 25, Feb. 1.. 24 20 14 ' For exceptions with respect to foreign time deposits, see Oct. 1962 1953—July 1,9 ,... 22 19 13 BULLETIN, p. 1279, and Aug. 1965 BULLETIN, p. 1084. 1954—June 16, 24 21 5 5 July 29, Aug. 1. 2s0* 18 12 NOTE.—Maximum rates that may be paid by member banks as estab- 1958—Feb. 27, Mar. 1. ii* l U is n h d e e d r b t y h is t h r e e g B u o la a t r i d o n o t f h e G o ra v t e e r n p o a r y s a b u l n e d b er y p a r o m v e is m io b n e s r o b f a n R k eg m u a l y at i n o o n t Q in . M Ap a r r . . 2 1 0 7 , Apr. 1,. 8* !7 7* any event exceed the maximum rate payable by State banks or trust Apr. 24 16*4 cos. on like deposits under the laws of the State in which the member 1960—Sept. 1 bank is located. Effective Feb. 1, 1936, maximum rates that may be Nov. 24 17% 12 paid by insured nonmember commercial banks, as established by the Dec. 1 16% FDIC, have been the same as those in effect for member banks. Rates for postal savings deposits are shown each year in the Board's 1962—Oct. 25, Nov. 1. 4 4 Annual Report. Maximum rate payable on all types of time and savings deposits: In effect Dec. 1,1965... 16J4 12 4 4 Nov. 1, 1933-Jan. 31, 1935, 3 per cent; Feb. 1, 1935-Dec. 31, 1935. 2ft per cent. Present legal requirement: MARGIN REQUIREMENTS 10 7 3 3 22 14 6 6 (Per cent of market value) > When two dates are shown, a first-of-month or midmonth date Effective date records changes at country banks, and any other date (usually a Thurs.) records changes at central reserve and reserve city banks. Regulation 2 Demand deposits subject to reserve requirements are gross demand July 28, July 10, Nov. 6, deposits minus cash items in process of collection and demand balances 1960 1962 1963 due from domestic banks. ' Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28,1962. Regulation T: For extensions of credit by brokers and NOTE.—All required reserves were held on deposit with F.R. Banks, 70 50 70 June 21, 1917, until late 1959. Since then, member banks have been For short sales 70 50 70 allowed to count vault cash also as reserves, as follows: country banks— Regulation U: in excess of 4 and 2% per cent of net demand deposits effective Dec. 1, For loans by banks on stocks 70 50 70 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, 1960, respectively; all member banks were allowed to count all vault cash Ex N ch O a T n E ge .— A R c e t g o u f l a 1 t 9 io 3 n 4 s , l T im a it n d th U e , a m pr o e u sc n r t i b o e f d c r i e n d i a t c t c h o a r t d a m n a c y e b w e i t e h x t S en ec d u e r d it i o e n s 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 e s r Y N o e r w k C o i f ty Other C b o a u n n k t s ry Item m b e a A m n l b k l e s r Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Oct. 13,1965 Four weeks ending Nov. 10, 1965 Gross demand—Total... 141,277 26,853 6,582 52,826 55,017 Gross demand—Total... 142,387 26,629 6 582 53,308 55,867 Interbank 15,662 4,690 1,306 7,617 2,049 Interbank 15,771 4,692 1 306 7,662 2,111 U.S. Govt 5,296 1,356 372 1,954 1,613 U.S. Govt 4,020 913 284 1,592 1,230 Other 120,319 20,806 4,904 43,254 51,354 Other 122,596 21,024 4,992 44,053 52,527 Net demand 1 114,996 20,820 5,441 42,102 46,633 Net demand 1 115,364 20,308 5,377 42,415 47,264 Time 117,226 17,808 4,896 44,406 50,116 Time 118,779 18,205 5,010 44,851 50,713 Demand balances due Demand balances due from dom. banks.... 7,768 156 105 1,953 5,554 from dom. banks 7,860 164 113 1,967 5,616 Currency and coin 3,581 291 66 1,083 2,141 Currency and coin... 3,690 296 71 1,110 2,213 Balances with F.R. Balances with F.R. Banks 18,360 3,883 1,030 7,683 5,763 Banks 18,342 3 814 1,020 7,718 5,789 Total reserves held 21,941 4,174 1,096 8,766 7,904 Total reserves held... 22,032 4 110 1,091 8,828 8,002 Required 21,565 4,148 1,094 8,723 7,601 Required 21,659 4 079 1,088 8,793 7,700 Excess 376 26 2 43 303 Excess 373 31 3 35 302 1 Demand deposits subject to reserve requirements are gross demand NOTE.—Averages of daily figures. Balances with F.R. Banks are ai 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

DECEMBER 1965 OPEN MARKET ACCOUNT 1735 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 sa es tions purchases sales or redemptions 1964 Oct 1,347 888 1,275 888 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 6 46 4 6 2 290 126 7 4 5 6 5 6 1 290 111 7 15 984 26 876 26 2 521 755 115 224 361 115 224 July 206 284 206 284 758 398 114 652 398 114 1 937 Sept 1,692 770 198 1,541 770 198 Oct 652 671 98 652 671 98 Outright transactions in U.S. Govt. securities by maturity—Continued 1-5 years 5-10 years Over 10 years Month 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 Oct 33 102 29 -102 11 28 35 -35 Dec 52 335 45 -335 5 1965—Jan Feb 46 -1,752 23 12 Mar 36 574 45 -574 10 65 -2,521 32 12 185 166 43 July 61 1 821 35 116 10 Sept 107 40 4 Oct Repurchase agreements (U.S. Govt. securities) Net change Bankers' acceptances Net change in U.S. in U.S. Govt. Month Govt. securities and securities Under acceptances Gross Gross Outright, repurchase purchases sales net agreements, net 1964 Oct 682 782 359 -18 341 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 71 756 1,831 1,717 163 -1 -38 124 1 207 1 233 932 — 3 -20 909 1,894 1,895 415 -10 -19 386 July 2,734 2,549 106 -6 -12 88 1,552 1,955 -157 1 19 -137 Sept 450 450 725 3 4 732 Oct . 352 352 -117 2 21 -94 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

1736 FEDERAL RESERVE BANKS DECEMBER 1965 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1965 1965 1964 Nov. 24 Nov. 17 Nov. 10 Nov. 3 Oct. 27 Nov. Oct. Nov. Assets 11,816 11,894 11,905 11,905 11,905 11,817 11,905 13,555 Redemption fund for F.R. notes 1,676 1,677 1,673 1,673 1,677 1,695 1,677 1,536 13,492 13,571 13,578 13,578 13,582 13,512 13,582 15,091 Cash 106 108 107 131 137 106 146 126 Discounts and advances: 759 248 151 602 333 332 452 208 Other 33 33 33 33 33 33 2 Acceptances: 48 46 43 43 41 50 42 43 50 23 40 18 60 44 20 U.S. Govt. securities: Bought outright: Bills 8,708 8,670 8,670 8,899 7,860 9,197 8,279 6,419 Certificates—Special Other 24 828 24 828 24 828 24,828 24,828 24,828 24,828 25,133 6,550 6,550 6,550 6,550 6,550 6,550 6,550 5,222 40 086 40 048 40 048 40,277 39,238 40,575 39.657 36,774 Held under repurchase agreements Total U.S. Govt. securities 40,086 40,048 40,048 40,277 39,238 40,575 39,657 36,774 40 976 40 375 40 298 40,995 39,663 41,050 40,253 37,047 6,575 8.125 6,626 6,613 6,230 6,235 5,764 6,100 101 101 101 102 103 101 103 102 Other assets: 719 720 720 721 869 671 820 727 All other 247 200 481 457 431 263 448 169 Total assets 62,216 63,200 61,911 62,597 61,015 61,938 61,116 59,362 Liabilities F R. notes 36,801 36 567 36 488 36,109 35,931 36,875 35.888 34,209 Deposits: 17,844 18 025 17 764 18.432 17,387 18,050 18,204 18,084 870 912 1,190 945 1,085 719 1,053 974 158 182 188 168 £53 149 144 256 Other 222 208 305 194 196 245 211 209 19,094 19,327 19,447 19,739 18,821 19,163 19,612 19,523 4,951 5,965 4,419 5,221 4,787 4,496 4,112 3,845 Other liabilities and accrued dividends 188 188 313 311 286 197 298 130 61,034 62,047 60,667 61,380 59,825 60,731 59,910 57,707 Capital Accounts 546 546 546 546 546 546 546 522 524 524 524 524 524 524 524 990 112 83 174 147 120 137 136 143 62,216 63,200 61,911 62,597 61,015 61,938 61.116 59,362 Contingent liability on acceptances purchased for 149 148 149 155 1.55 146 156 125 U.S. Govt. securities held in custody for foreign 8,213 8,171 8,017 7,923 8,099 8,171 7,974 8,278 Federal Reserve Notes—Federal Reserve Agents' Accounts 39,243 39,029 38,780 38,681 38,643 39,460 38,692 36,488 Collateral held against notes outstanding: 6,595 6,555 6,555 6,505 6,470 6,595 6,470 6,667 44 8 • 7 33 26 65 34 2 33,560 33,510 33,450 33,420 33,270 34,090 33,270 30,695 40,199 40,073 40,012 39,958 39,766 40,750 39,774 37,364 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 FEDERAL RESERVE BANKS 1737 STATEMENT OF OF EACH FEDERAL RESERVE BANK ON NOVEMBER 30, 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 a it n s y - Dallas F c S i r s a a c n n o - Assets 11 817 742 2,955 702 898 1,018 652 2,152 475 183 486 353 1,201 1,695 98 403 91 147 137 94 310 63 31 65 56 200 13,512 840 3,358 793 1,045 1,155 746 2,462 538 214 551 409 1,401 533 46 115 27 23 66 58 54 23 24 22 32 43 106 7 15 5 8 6 10 18 7 4 5 6 15 Discounts and advances: Secured by U.S. Govt. securities... 301 2 19 17 1 47 28 24 48 7 82 1 25 64 1 9 2 3 2 22 5 1 11 2 4 Acceptances: 50 50 Held under repurchase agreements. 60 60 U.S. Govt. securities: 40 575 2 106 9,760 2,114 3,427 2,817 2,228 6,764 1,499 851 1,579 1,648 5 782 Held under repurchase agreements. 41,050 2,109 9,898 2,133 3,431 2,866 2,278 6,793 1,548 869 1,663 1,651 5,811 Cash items in process of collection... 7.814 473 1,500 481 559 618 680 1,302 362 252 456 394 737 101 3 8 3 5 5 20 21 7 3 6 11 9 Other assets: Denominated in foreign currencies. 671 31 1176 38 60 34 40 95 23 15 30 39 90 All other 263 12 90 11 20 14 12 36 8 6 12 8 34 Total assets 64,050 3,521 15,160 3,491 5,151 4,764 3,844 10,781 2,516 1,387 2,745 2,550 8,140 Liabilities 37,408 2,225 8,451 2,206 3,199 3,343 2,185 6,825 1,424 686 1,417 1,166 4.281 Deposits: 18,050 715 4,902 730 1,264 817 1,026 2,662 648 454 890 968 2,974 U.S. Treasurer—General account.. 719 33 136 65 68 54 43 64 88 20 34 34 80 149 8 227 9 15 10 23 6 4 7 10 22 Other 245 * 171 1 * 4 1 2 * 1 2 1 62 756 5,236 805 1,347 883 1,080 2,751 742 479 933 1,013 3,138 6,075 471 lflll 406 480 461 496 997 301 189 335 295 533 Other liabilities and accrued dividends • 197 10 48 10 17 14 11 32 7 5 8 8 27 62 843 3 462 14,846 3 427 5,043 4,701 3,77? 10,605 2,474 1,359 2,693 2 482 7 979 Capital Accounts 546 26 143 29 49 28 33 78 19 13 24 32 72 524 25 137 29 47 26 31 75 18 12 23 70 Other capital accounts 137 8 34 6 12 9 8 23 5 3 5 19 Total liabilities and capital accounts.. 64,050 3,521 15,160 3,491 5,151 4,764 3,844 10,781 2,516 1,387 2,745 2,550 8,140 Ratio of gold certificate reserves to F.R. note liability (per cent): Nov 30 1965 36.1 37.8 39.7 35.9 32.7 34.5 34.1 36.1 37.8 31.2 38.9 35.1 32.7 Oct 31' 1965 37 1 36 0 37 5 16 0 36 5 35 7 35 8 37 3 34 i 34 4 37 4 44.4 38 5 Nov 30' 1965 43.6 38.5 43.0 37.0 42.5 33.4 47.3 38.8 41.8 55.6 47.0 57.2 58.9 Contingent liability on acceptances purchased for foreign correspondents 146 7 336 8 13 8 9 21 5 3 7 9 20 Federal Reserve Notes—Federal Reserve Agent's Accounts F.R. notes outstanding (issued to Bank) 39,460 2,312 8,893 2,296 3,406 3,488 2,351 7,158 1,504 718 1,481 1,270 4,583 Collateral held against notes outstanding : 6,595 440 1,000 500 600 883 500 1,100 305 127 225 180 735 65 17 48 U.S. Govt. securities 34,090 1,895 8,100 1,900 2,950 2,650 1,900 6,400 1,260 605 1,300 1,130 4,000 Total collateral 40,750 2,335 9,100 2,417 3,550 3,533 2,400 7,500 1,613 732 1,525 1,310 4,735 1 After deducting $495 million participations of other F.R. Banks. 3 After deducting $110 million participations of other F.R, Banks. 2 After deducting $122 million participations of other F.R. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1738 FEDERAL RESERVE BANKS; BANK DEBITS DECEMBER 1965 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELt> BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday fcnd of month Item 1965 1965 1964 Nov. 24 Nov. 17 Nov. 10 Nov. 3 Oct. 27 Nov. Oct. Discounts and advances—Total... 792 281 184 635 366 365 510 210 Within 15 days 757 244 148 598 329 333 470 206 16 days to 90 days 35 37 36 37 37 32 40 4 Acceptances—Total 98 46 66 83 59 110 86 63 Within 15 days 61 11 31 49 28 71 53 26 16 days to 90 days 37 35 35 34 31 39 33 37 U.S. Government securities—Total 40,086 40,048 40,048 40,277 39,238 40,375 39,657 36,774 Within 15 days1 969 1,093 6.932 7,355 699 638 6,993 538 16 days to 90 days 5.739 5,589 3.802 3.655 9,855 6,495 3.774 3,911 91 days to 1 year 17,478 17,466 18.996 18,949 18,366 17.542 18,572 16.828 Over 1 year to 5 years 14,066 14.066 8^484 8,484 8.484 14,066 8.484 13,119 Over 5 years to 10 years 1.449 1,449 1,449 1.449 1,449 1,449 1.449 2,088 Over 10 years 385 385 385 385 385 385 385 290 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) Nether- I;nd 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 a i r a s n f f • r a re n n c c s l G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g l u a i n ld d e s rs f S ra w n i c ss s 1965—Feb 165 131 16 2 4 2 2 5 375 347 11 2 2 2 2 7 315 297 2 1 2 3 8 80 17 41 2 1 1 2 12 457 390 42 2 17 1 3 * July 620 549 52 2 12 2 3 * 884 819 47 2 11 2 3 * BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts> (In billions of dollars) Turnover of demand deposits Period SM T 2 o S 2 t 5 A al 's N Le .Y ad . ing S 6 M o S t A he 's rs 2 T c o N ( e t e a n . x Y l t c e 2 . l r ) . 2 s 4 S o M 2 th S 1 e 8 A r 's SM T 2 o S 2 t 5 a A l 's N Le .Y ad . ing S 6 M o S t A he 's rs2 T S o N ( M t e a . x S Y l c A 2 l .) . 2 's 4 SM o 2 th S 1 e 8 A r 's 1964—Sept. 4,763.5 2,007.6 1,049.5 2,755.9 1,706.4 44.3 41.4 32.9 29.2 Oct. 4.698.2 1,926.7 ,060.6 2.771.5 .710.9 44.6 89.8 40.9 32.8 29.3 Nov. 4.648.0 1,917.7 ,023.7 2,730.3 .706.6 45.1 91.3 41.0 33.2 29.5 Dec. 4,816.5 2,013.0 ,065.4 2,803.5 ,738.1 45.5 90.7 41.7 33.4 30.0 1965—Jan. 4.870.9 2,067.6 .065.3 2.803.3 .737.8 46.3 94.8 42.8 33.8 30.0 Feb. 4.842.5 1,997.4 .077.2 2,845.1 .767.9 47.1 96.1 44.3 34.6 30.5 Mar. 4,995.6 2,071.8 ,115.4 2,923.8 ,808.4 47.9 96.9 44.8 35.4 31.2 Apr. 5,113.3 2,151.3 .131.7 2.962.0 ,830.3 48.4 100.0 44.5 35.2 31.2 May 4,825.6 1,954.1 ,082.7 2,871.5 ,788.8 47.0 96.0 44.3 34.7 30.6 June 5,327.8 2,308.4 ,146.8 3,019.4 ,872.6 50.9 107.0 45.5 36.3 32.2 July. 5,302.6 2.281.6 .149.5 3,021.0 ,871.5 49.3 104.9 44.4 35.1 31.1 Aug. 5.146.8 2.128.0 ; i4i.o 3,018.8 .8-J7.8 48.4 99.4 44.9 35.5 31.7 Sept. 5,126.9 2,104.3 ,142.9 3,022.6 ,879.7 47.2 95.4 44.1 35.3 31.4 Oct. 5,129.9 2,061.0 ,165.4 3,068.9 .903.5 47.4 96.3 43.8 35.1 31.4 Nov. 5,408.3 2,229.4 ,215.0 3,178.9 .963.9 50.5 104.7 47.6 37.0 32.1 1 Excludes interbank and U.S. Govt. demand deposit accounts. NOTE.—Total SMSA's include some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach. For a description of the revised series see Mar. 1965 BULLETIN, p. 390. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 U.S. CURRENCY 1739 DENOMINATIONS IN CIRCULATION (Tn millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cu c la ir - tion ! Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963 37,692 26,807 3,030 1,722 103 2,469 7,373 12,10910,885 3,221 7,110 249 298 3 4 1964—Oct.. 38,373 27,201 3,321 1,716 111 2,385 7,328 12,33911,172 262 7,367 246 291 3 4 Nov. 39,248 27,925 3,359 1,749 108 2,455 ,568 12,68711,323 314 7,468 246 289 3 4 Dec, 39,619 28,100 3,405 1,806 111 2,517 ,543 12,71711,519 381 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 12,49411,449 332 7,579 244 289 2 4 June 39,720 28,188 3,662 1,752 116 2,447 7,489 12,72311,532 361 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 Aug. 40,165 28,506 3,751 1,761 118 2,442 7,513 12,92111,659 3,389 7,735 243 286 3 4 Sept. 40,443 28,724 3,808 1,783 120 2,474 7,599 12,94111,719 3,392 7,792 243 286 3 4 Oct.. 40,754 28,926 3,856 1,807 121 2,489 7,624 13,02911,828 3,411 7,883 243 285 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 1 Kind of currency T s O o ta t c 1 a n t 9 l . d 6 3 i o 5 n 1 u g , t- A g a s o s g l s i d a l e v i c n e a u r s n r t d ity Tr c e a a s s h ury B F a F a . n n o R d r k . s H A B e F a g a l . n e d n R d n k . b t s s y Oc 1 t 9 . 6 3 5 1, Se 1 p 9 t. 6 5 30, Oc 1 t 9 . 6 3 4 1, certificates Agents Gold 13,857 (13 582) 2 275 Gold certificates (13,582) -H3,58l 1 F R notes 38 694 97 2 804 35,793 35,506 31,1*29 Treasury currency—Total 5,509 (737) 401 147 4,961 4,937 5.. 244 Standard silver dollars 485 3 * 482 482 482 Silver bullion I 110 734 376 Silver certificates . (737) 3 36 698 721 i. 445 Subsidiary silver coin 2,585 14 52 2,519 2,477 2.077 United States notes 9 3 0 2 0 3 6 2 3 1 8 8 3 5 0 5 1 c3 84 0 9 2 7 31 6 7 1 In orocess of retirement ^ 107 * 106 106 !60 Total Oct 31 1965 . ... 558.060 (14,319) 773 13,581 2,952 40,754 Sept 30 1965 557,639 (14,355) 779 13,585 2,832 40,443 Oct 31 1964 556,556 (16,744) 475 12,369 5,340 38,373 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Does not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti- for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. 1729. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $156 million reserve against United States notes and $9 are shown in parentheses. million gold deposited by and held for the International Monetary Fund. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1740 MONEY SUPPLY DECEMBER 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 - i Total c C om ur p re o n n c e y nt co D d m e e m p p o o a s n n i e t d nt jus a t d ed - ! d d e e p m os a i n ts d i 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 l959_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—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 r160.6 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 May 160.0 34.9 125.1 134.6 157.6 34.6 123.0 135.4 9.7 June 161.8 35.0 126.8 135.9 159.6 34.9 124.6 136.6 9.3 July 162.5 35.2 127.3 137.6 160.9 35.4 125.6 138.3 9.1 Aug. 162.7 35.4 127.3 140.1 160.5 35.5 125.0 140.2 7.4 Sept 164.3 35.6 128.7 141.6 163.2 35.6 127.5 141.4 5.6 Oct 165.6 35.9 129.7 143.6 165.8 36.0 129.8 143.5 5.0 Nov.*1. .. 165.7 36.1 129.6 145.5 167.4 36.5 130.9 144.4 4.0 Week ending— 1965—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 n., 162.5 35.4 127.1 139.5 161.4 35.7 125.7 139.8 6.6 162.5 35.4 121A 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 8. 163.2 35.4 127.8 141.0 161.6 35.9 125.7 141.3 5.6 15., 164.1 35.5 128.7 141.5 164.2 35.6 128.6 141.5 3.0 22., 165.2 35.7 129.5 141.6 164.8 35.6 129.2 141.0 5.7 29., 164.6 35.9 128.7 141 .8 162.3 35.5 126.8 141.7 7.6 Oct. 6., 165.8 35.9 129.9 142.5 164.4 35.9 128.5 142.5 6.3 13., 165.5 35.9 129.6 143.5 165.4 36.2 129.2 143.3 4.1 20., 165.4 35.9 129.6 143.9 166.0 36.0 130.0 143.6 5.7 27. 165.5 36.0 129.5 144.1 166.0 35.8 130.2 144.0 4.8 Nov. 3. 165.9 36.1 129.9 144.5 167.7 35.9 131.7 144.2 4.3 10., 165.8 36.0 129.7 144.9 167.6 36.5 131.1 144.3 3.1 17., 165.6 36.1 129.4 145.4 167.8 36.5 131.3 144.2 3.3 24., 165.8 36.2 129.6 146.2 166.6 36.6 130.1 144.4 4.1 Dec. IP. 165.7 36.2 129.6 146.4 167.4 36.6 130.8 144.7 5.7 1 At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur- NOTE.—Revised data. For description of revision of series and back rency outside the Treasury, the F.R. Banks, and the vaults of all comdata beginning Jan. 1959, see July 1965 BULLETIN, pp. 933-43; for monthly mercial banks. Time deposits adjusted are time deposits at all commercial data 1947-58, see June 1964 BULLETIN, pp. 679-89. banks other than those due to domestic commercial banks and the Averages of daily figures. Money supply consists of (1) demand U. S. Govt. deposits at all commercial banks other than those due to domestic com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 BANKS AND THE MONETARY SYSTEM 1741 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Treas- Total ury U. S. Government securities liabil- Capital Date cur- ities Total and Gold s r o t e i a n u n n c g t d - y - Total Lo n a e n t s, m C a e o n r m c d ia - l R Fe e d se e r r v a e l Other O s ri e t t c h ie u e s - r ca a n p n e i d t t al, c d u e r a p r n o e d s n i c ts y c m o n a u i c e s n - t c t . s, savings Banks banks 1929—June 29. .. 4,037 2,019 58,642 41,082 5,741 5,499 216 26 11,819 64,698 55,776 8,922 1 19 9 3 3 9 3 _ _ D jU e n c e . 3 3 0 0 . . . . . . 1 4 7 , , 0 6 3 4 1 4 2 2, , 9 2 6 8 3 6 4 5 2 4 , , 1 5 4 6 8 4 2 22 1 , , 1 9 5 5 7 7 2 1 3 0 , , 1 3 0 2 5 8 1 8 9 , , 1 4 9 1 9 7 2 1 , ,9 4 9 8 8 4 1,2 1 0 3 4 1 9 9 , , 8 3 6 0 3 2 4 7 8 5 , ,1 4 7 6 1 5 4 6 2 8 , , 0 35 2 9 9 6 6, , 8 4 1 3 2 6 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 t947__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—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 33J93 1965—Jan. 27.... 15,200 5,400 360,600 210,900 150,100 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 5,400 371,200 222,100 102,400 63,000 38,300 1,100 46,700 390,900 354,600 36,400 June 30 13,934 5.413 378,834 228,721 102.318 62,606 39,100 612 47,795 398,181 362,370 35,814 July 28.... 13,900 5; 400 376,500 226,400 (02,000 62,200 39,200 600 48,100 395,800 360,000 35,800 Aug. 25 . .. . 13,900 5,500 378,700 228,100 101,500 61,300 39,200 1,000 49,100 398,000 361,100 37,000 Sept. 29.... 13,900 5,500 383,500 231,600 102,300 61,700 39,600 1,000 49,500 402,800 365,900 36,900 Oct. 27"... 13,900 5.500 385,900 231,900 104,300 64,000 39,200 1,000 49,700 405,200 368,300 36,900 Nov. 24*\ . . 13,800 5; 500 389,000 234,300 105,400 64,300 40,100 1,100 49,300 408,300 370,300 38,000 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted Not seasonally adjusted Time U. S. Government Total o b r u C e a t n u n s c i r k d - y s e d ju m e s D p a t a d o e e n d - s - d i t 2 s o b r u C e a t n u n s c r i k d - y s e d ju m e s D p a t a d o e e n - d s - d i t 2 s Total m b C e a o r n m c k i - a s l b M sa a v n u i k t n u s g a s 3 l S P a S t o e v y s m i s t n a - g l s n F e e i o g t r n - 4 T h c i r u o n a e r l g s a y d h s s - - sa c m a c v o A n i i e m a d n t r l - g - s B F A a .R n t k . s 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 L941_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 2,141 2,287 24,608 977 1947_Dec. 31.. 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 ,682 1,336 1,452 870 1950—Dec. 30.. 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 ,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 ,488 405 7,090 602 1963—Dec. 20.. 153,100 3i;700 121,400 158,104 33,468 124,636 155,714 110,794 44,467 452 ,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 ,324 391 10,502 939 1964—Nov. 25.. 156,900 33,400 123,500 159,300 34,300 125,000 172,700 124,000 48,300 400 ,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 ,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 ,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 ,500 700 7,000 900 Mar. 31.. 161,300 34,100 127,200 156,800 33,800 123,000 183,300 132,r~ 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 ,500 800 7,100 1,000 May 26.. 157,500 34,000 123,500 155,400 33,900 121,600 186,100 135,400 50,300 400 ,500 800 10,100 700 June 30.. 161,000 34,100 126,900 158,878 34,524 124,354 188,348 137,088 50,918 342 ,631 779 12,062 672 July 28.. 159,800 34,400 125,400 159,600 34,500 125,100 190,100 138,700 51,000 300 ,600 800 7,100 800 Aug. 25.. 159,700 34,500 125,200 158,400 34,800 123,600 191,900 140,400 51,300 300 ,600 800 7,500 800 Sept. 29.. 162,200 34,800 127,400 161,200 34,900 126,300 193,700 141,800 51,600 300 ,700 800 7,600 900 Oct. 27?'. 163,900 35,200 128,700 164,600 35,100 129,500 195,900 143,800 51,900 300 1,600 800 4,300 1,100 Nov. 24''. 162,500 35,300 127,200 165,000 36,300 128,700 196,500 144,200 52,000 300 1,500 800 5,600 900 1 Series begin in 1946; data are available only for last Wed. of month. NOTE.—For back figures and descriptions of the consolidated condition 2 Other than interbank and U.S. Govt., less cash items in process of statement and the seasonally adjusted series on currency outside banks collection. and demand deposits adjusted, see "Banks and the Monetary System," 3 Includes relatively small amounts of demand deposits. Beginning Section 1 of Supplement to Banking and Monetary Statistics, 1962, and with June 1961, also includes certain accounts previously classified as Jan. 1948 and Feb. 1960 BULLETINS. other liabilities. Except on call dates, figures are partly estimated and are rounded to 4 Reclassification of deposits of foreign central banks in May 1961 the nearest $100 million. reduced this item by $1,900 million ($1,500 million to time deposits and $400 million to demand deposits) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1742 COMMERCIAL AND MUTUAL SAVINGS BANKS DECEMBER 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 . c t. urit O ie t s her a C ss a e s t h s * c c b T o a i a l l a o u p i i n c a t t i n - d i a t - e t a l s s l 2 Total i m D I a n e n t - e d rba T n i k m l e U.S D . ema O nd ther Time 3 r B i o n o w g r s - - c T a o p t i a ta l l b N a b u o n e m f r ks - Govt. Other All banks 1941—Dec. 31 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31 140,227 30,361 101,288 8,577 35,415 177,332 165,612 14,065 105,935 45,613 22710,542 14,553 1947—Dec. 314 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 6611,948 14,714 1962—Dec. 28 280,397 172,822 72,563 35,012 54,939 343,201 303,653 16,008 535 6,839141,084139,188 635 28,046 13,940 1963—Dec. 20 302,251 192,686 69,068 40,497 51,536 362,394 319,636 15,267 528 6,734141,576155,531 702 29,882 14.079 1964—June 30 310,404203,119 65,337 41,948 54,073 373,909 331,843 15,272 67810,263139;160 166,469 120 31.037 14,175 1964—Nov. 25 323,150210,990 68,460 43,700 53,100 385,810338,970 15,460 710 7,090143,180 172,530 4,500 31,800 14,261 Dec. 31 329,739216,674 68,779 44,28761,493 401,161356,30817,938 821 6,517 155,248175,785 2,700 32,196 14,265 1965—Jan. 27 326,880 214 920 67,380 44580 51960 388570 342.250 14,800 890 ,060 143,630178,870 4,40032,040 14,290 Feb. 24 328,920217,270 66.470 45 180 52580 391080 343 ,77014,~8~90- 940 ,710 140,420 118800,810 4,330 "3,2200 14,290 Mar. 31 331,950221,040 65,140 45,770 55520 397,650 350,89016,300 950 350142; 183,140 3,670 32,610 14,292 Apr. 28 335,020223,890 64,180 46 580 397,771100 334499,320 14,450 920 ,850 142 184,500 5,020 32,670 14,297 May 26 336,360226,660 63,030 46,670 52 150 398,710 349,550 14,240 970 ,890 138490 185,960 4,970 33,000 14,300 June 30 342,138231,737 62,606 47 083 410,935 362.611 16,172 1,03411,802145,319188,284 3,726 34,015 14,295 July 28 340,780230,510 62,150 48 070 403,,221100 335533,.730 14,460 980 6 890 141,410 189,990 4,730 33,820 14,291 Aug. 25 343,120232,710 61,320 49,090 51460 404,900 354; 14.900 1,010 7^230139,340191,860 5,060 34,020 14,293 Sept. 29 347,070235,830 61,720 49 780 411 570 361: 15,850 1,040 7 370143,440193,620 4,40034,280 14.297 Oct. 27» 351,010237,290 64,040 49;680 53870 415 530 363!760 15,710 1,030 4 120 147,050195,850 5,780 34,510 14,303 Nov. 24? 352,920239,370 64,270 49,28055,940 419,500 366,550 15,770 1,030 5 390147,920196,440 5,970 34,720 14,309 Commercial banks: 1941—Dec. 31 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31 124,019 26,083 90,606 7,331 34.806 160.312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 4 116,284 38,057 69,221 9,006 37,502 155,377 144,10312,792 240 1,343 94,367 35,360 6510,059 14,181 1962—Dec. 28 235,839 140,106 66,4 "34 29,298 54,049 297,116 262,12216,008 535 6,829141,041 97,709 627 2"4 ,09413,429 1963—Dec. 20 254.162 156,006 63, 312:773 275.12015,267 526 6,729141,534111,064 664 25,677 13,570 1964—June 30 260,179 164,463 59,32236,394 53,168 321,909 284,90315,272 67710,257139,110119,587 099 26,768 13,669 1964—Nov. 25 271,120 170,330 62,670 38,120 52,200 331,980 290,58015,460 710 7,090 143,130 124,190 4,50027,380 13,746 Dec. 31 277,376 175,589 62,99138,796 60,489 346,921307,17017,938 819 6,510 155,184126,720 2,679 27,795 13,761 1965—Jan. 27 274,000 173,420 61,520 39060 51,010 333.810 29277014,800 890 4,060143,580129,440 4,40027,640 13,785 Feb. 24 275,730 175,530 60,520 3968051,580 336!010 294 13014,890 940 6,710 140,370131,220 4,330 '2"7,750 13.786 Mar. 31 278,350 179,040 59,040 40270 54,510 342;110 300,77016,300 950 8,350142,100133,070 3,670 28,100 13,789 Apr. 28 281.240 181,530 58,320 41 390 51,640 342;060 299.14014,450 920 6,850142,,550134,370 5,02028,210 13,793 May 26 282,230 183,930 57,190 41 11051 180 342,700 299,18014,240 970 9,890 430 135,650 4,97028,490 13,796 June 30 287.723 188,641 56,853 42229 57063354,553311,63216,171 1,03211,796145,266137,366 3,,668822 2299,479 13,791 July 28 .... 285,940 187,060 56,320 4256051090 346;440 302.65014,460 980 6,890141,350138,970 4,73029.280 13,787 Aug. 25 287,840 188,900 55,510 43430 50510 347;720 303 03014,900 1,010 7,230139,280140,610 5,,006600 29,410 13.789 Sept. 29 291,470 191,690 55,930 43 850 52, 830 .35.4.;.0.6.0 309 15,850 1,040 7,370143380142,000 4,40029,630 13,793 Oct. 27^ 295,330 192,800 58,450 44080 52,889900 335577,992200 331111,86015,710 1,030 4,120147,000 144,000 5,78029,890 13,799 Nov. 24^ 296,990 1"9 4,560 58,720 43710 55,040 361,690 314,54015,770 1,030 5,390 147,870144,480 5,97030,060 13,805 Member banks: 1941—Dec. 31 43,521 18,021 19,539 5,961[ 23,123 68,121 61,71710,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31 107,183 22,775 78,338 6.,;~0-7~0 29,845138,304129,67013,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 97,846 32,628 57,914 7,,304 32,845132.060122,52812,353 50 ,176 80,609 28,340 54 8,464 6,923 1962—Dec. 28 195,698118,637 52,,996688: 24.092 47,427249,488 2"1 9",46815,309 358 6,086 117,999 79,716 3,55019,854 6,049 1963—Dec. 20 210,127 131,712 49,342 29,073 44,395 261,469 229,37614,518 382 5,986117,562 90,929 3,4"9"9" 21,054 6,112 1964—June 30 215,132 138,649 46,235 30,249 46,767 269437 238,05214,527 525 9,342 115,624 98,034 1,936 22,060 6,180 1964—Nov. 25 223,153143,241 48,38331,529 45,689 276,406 241,14114,646 551 6,319 118,030101,595 4,29722,560 6,221 Dec. 31 228,497 147,690 48,717 32,089 52,737 289,142 255,72417,007 664 5,838128,539103,676 2,48122,901 6,225 1965—Jan. 27 225,493 145,830 47,297 32,366 44,461277,606 242,78114,016 731 3 662118,307106,065 4,186 22,799 6.236 Feb. 24 227,093 147,818 46,364 32;91144,750 279,488 244,01814,138 779 5 958115,601107,542 3,97822,888 6,236 Mar. 31 229,456 150,921 45,120 33;415 47 300 250,27715,556 795 510117,349109,067 3,5—09 23,173 6,235 Apr. 28 231,866 152,951 44,555 360 45 106 285;023 248,56313.710 759 6,263117,569110,262 4,80223,253 6.237 May 26 232,373 154,705 43,615 053 44804285,331248,49413,525 817 8,881 114,025111,246 4,70123,406 6,239 June 30 237,328 158,832 43,396 35100 50 198 296.049 259,74315,355 85110,806120,077112,654 3,45524,323 6,235 July 28 235,644 157,345 42,86335436 44703 288,568 251.21613,671 803 116,404114,04: 4,59824,193 6,230 Aug. 25 237,093 158.885 42,064 36144 43951 289,232 251,23214,073 825 114,426115,343 4,73"24,279 6,227 Sept. 29 240,078 16i;336 42,294 36448 46087 294.704 256,98114,991 861 117,924116,400 4,148 24,432 6.223 Oct. 27 243,144 162,156 44,43836550 46119 297,674 258,44314,815 848 120,904118,116 5,46:24,654 6,223 Nov. 24^ 244,260 163,597 44,552 36,11148,110 300,784 260,63014,875 850 121,503118,475 5,69124,768 6,225 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 3 17,745 1,889 533 1962—Dec. 28 44,558 32,716 6,129 5,714 890 46.086 41,531 10 41,478 3,951 511 1963—Dec. 20 48,089 36,679 5,872 5,539 826 49,621 44.516 6 44,467 4,205 509 1964—June 30 50,226 38,656 6,016 5,554 905 52,000 46,940 7 46,887 4,269 506 1964—Nov. 25 52,030 40,660 5,790 5,580 900 53,830 48,390 48,340 4,420 505 Dec. 31 52,363 41,085 5,788 5,490 1,004 54,239 49,138 49,065 21 4,401 505 1965—Jan. 27 52,880 41,500 5,860 ,520 950 54,760 49,480 49,430 4,400 505 Feb. 24 53,190 41,740 5,950 .500 1,000 55,070 49,640 49,590 4,450 504 Mar. 31 53,600 42,000 6,100 ,500 1.010 55.540 50,120 50,070 4,510. 503 Apr. 28 53,780 42,360 5,860 ,560 940 55;650 50.180 50,130 4,460 504 May 26 54,130 42,730 5,840 ,560 970 56,010 50,370 50,310 4,510 504 June 30 54,415 43,096 5,753 ,566 1,020 56,382 50,980 50,918 43 4,536 504 July 28 54,840 43,450 5.830 5,560 980 56.770 51,080 51,020 4,540 504 Aug. 25 55,280 43,810 5,810 5,660 950 57,180 51,310 51,250 4,610 504 Sept. 29 55,600 44.140 5.790 5,670 950 57,510 51,680 51,620 4,650 504 Oct. 27^ 55,680 44;490 5,590 5,600 980 57,610 51,900 51,850 4,620 504 Nov. 24*> 55,930 44,810 5,550 5,570 900 57,810 52,010 51,960 4,660 504 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1743 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Loans G U o S .S v e . t c . urit O ie t s her i C ss a e s t h s' c c b T o a i a l a l u o p i n i c a t i t n - d i t - a e t a l s s l 2 Total i m I D n a e t n - e d rba T nk im * e U.S D . ema O n t d her Time r B i o n o w g r s - - c T a o p t i a ta l l N ba b u o n e m f r ks - 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 6 866 12,051 807 1,648 36 1945—Dec. 31 26,143 7,334 17,574 1,235 6.439 32,887 30,121 4; 640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31 20,393 7,179 11,972 1,242 7,261 27,982 25.216 4,453 12 267 19,040 1,445 30 2,259 37 1962—Dec. 28 32,989 21.954 7,017 4,01711,050 46,135 37,885 4,783 207 1,408 22,231 9,256 1,728 3,r~ 17 1963—Dec. 20 34,827 23i577 6,154 5,095 9,372 46,434 38,327 4,289 214 1,419 20,96011,446 1.438 3,984 13 1964—June 30 36,693 25,490 5,779 5,42410,550 49,716 41,545 4,711 317 2,112 21,22413,181 924 4,402 14 1964—Nov. 25 37,594 26,051 5,954 5,58910,103 50,171 40,753 4,394 333 1,261 20,67914,086 1,784 4,434 13 Dec. 31 39,507 27,301 6,178 6,02811,820 53,867 45,191 5,C ' 436 1,486 23,89614,285 1,224 4,471 13 1965—Jan. 27 38,271 26,573 5,630 6,068 9,427 50,166 40.890 4.274 457 795 20,670 14,694 1,781 4.465 13 Feb. 24 38,950 27,570 5,122 6,258 9,218 50,803 41.574 4.359 499 1,083 20,44715,186 1,281 4,487 13 Mar. 31 39,905 28,894 4,788 6,22311,597 54,198 44,997 4,852 518 1,778 22,12315,726 1,506 4,526 13 Apr. 28 40,325 29.173 4,764 6,388 9,844 52,852 43,502 4.226 492 1,666 20,84216,276 1,655 4.517 13 May 26 40,201 29,558 4,674 5,96910,230 53,184 43,820 4,308 549 1.989 20,28916,685 1,498 4,548 13 June 30 42,225 30,975 4,907 6,34212,186 57.150 47,322 5,065 579 2,561 22,38016,738 1,423 5,094 13 July 28 40,802 29,438 4,834 6,530 9,639 52,998 43,263 4,300 525 1,409 19,93417,095 1,426 5,091 13 Aug. 25 41,207 29,896 4,566 6,745 9,233 53.106 42.890 4.123 534 1,287 19,55717,389 1,586 5,114 12 Sept. 29 41,876 30,680 4,366 6,830 9,851 54.511 44,942 4,669 563 1,971 20,44917,290 993 5,106 12 Oct. 27 42,411 30,518 5,239 6,654 9,508 54.477 44,034 4,286 553 836 20,54617,813 1,808 5.137 12 Nov. 24?' 41,922 30,840 4,897 6,185 10,098 54,647 43,957 4,370 546 789 20,43417,818 2,072 5,142 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 1,409 2,280 11,432 9,993 1,277 410 5,264 3,025 262 948 13 1963—Dec. 20 9,615 6,220 1,705 1,690 1,970 11,776 10,296 ,211 395 4,887 3,787 255 996 12 1964—June 30 9,636 6,266 1,750 1,620 2,121 12,046 10,630 ,182 587 4,744 4,090 210 1,017 12 1964—Nov. 25 10.021 6,600 1.786 1,635 2,232 12.537 11,009 ,251 380 4,906 4,450 256 1,044 12 Dec. 31 10,562 7,102 1,873 1,587 2,366 13,289 11,807 ,448 396 5,362 4,578 204 1,056 12 1965—Jan. 27 10,245 6,767 1,850 1,628 2,163 12,703 11,177 ,153 259 5,076 4,663 232 1,046 12 Feb. 24 10,296 6,963 1,678 1,655 2,184 12,842 11,153 ,238 349 4,905 4,633 322 1,053 12 Mar. 31 10,310 7,129 1,546 1,635 2,089 12,801 11,088 .977 501 3,985 4,597 278 1,060 II Apr. 28 10,425 7,073 1,669 1,683 2,318 13.095 11,395 ,182 463 5,047 4,681 355 1,065 11 May 26 10,363 7,108 1,643 1,612 2,232 12,961 11,282 ,169 576 4,800 4,714 333 1,071 11 June 30 10,835 7,367 1,761 1,707 2,311 13,535 11,699 .297 699 4,926 4,749 438 1,096 11 July 28 10,558 7,183 1,659 1,716 2,206 13,153 11,312 ,133 395 4,936 4,829 415 1,096 11 Aug. 25 10,592 7,316 1,521 1,755 2,110 13,098 11,211 ,221 380 4,720 4,871 447 1,102 11 Sept. 29 10,814 7.508 1,544 1,762 2,201 13,384 11,448 ,245 532 4,790 4,862 566 1,107 11 Oct. 27 10,871 7,555 1,619 1,697 2,343 13,619 11,547 ;236 268 5,031 4,993 623 1,114 11 Nov. 24 ^ 11,058 7,724 1,651 1,683 2,373 13,855 11,834 ,240 552 4,978 5,039 460 1,117 11 Other reserve city:5, 6 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31 40,108 8,514 29,552 2,04211.286 51,898 49,085 6.418 30 8,221 24,655 9,760 2,566 359 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 8,16519,539 94,914 84,248 7,477 82 2,337 43, 6"0•9 30,743 1,388 7,263 191 1963—Dec. 20 78,370 51,891 16.686 9,79218,778 99,643 87,994 7,225 95 2,212 43,459 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—Nov. 25 83,044 56,292 15,98610,76618,646104,306 91,299 7,102 132 2,580 42,85138,634 1,845 8,360 182 Dec. 31 84,670 57,555 16,32610,789 21,607109,053 97,145 8,289 134 2,195 46,88339,645 841 8,488 182 1965—Jan. 27 83.987 57,428 15,54111,01818,353104,997 92,273 6,758 184 1,580 42,848 40,903 1,756 8,504 184 Feb. 24 84,567 57.966 15,4101119118,114105,275 92,428 6,789 188 2,546 41,590 41,315 1,663 8,529 184 Mar. 31 85,374 58.771 15,0321157119,011107,146 94,519 6,976 185 3,035 42,615 41,708 1,413 8,646 186 Apr. 28 86,265 59,701 14,62911,93518,522107,609 94,001 6,573 181 2,538 42,65142,058 2,310 8,675 183 May 26 86,034 60,015 14,12311,89617,984106,851 93,130 6,366 174 3,548 40,969 4':2,073 2,329 8,676 178 June 30 87,225 61,079 14,03012,11619,864110,063 97,418 7,168 173 4,325 42,97142,781 1,271 8,774 179 July 28 87,272 61,417 13,64012,21518,133108,359 94,621 6.473 188 2,566 42,14143,253 2,257 8,756 179 Aug. 25 87,832 61,993 13,37712,46217,613108,284 94.656 6; 882 201 2,724 41,124 43,725 2,049 8,762 177 Sept. 29 88,719 62.804 13,46912,44618,666110,410 96.468 7,159 208 2,462 42,374 44,265 2,081 8,798 177 Oct. 27 89,706 63,161 14,03712,50818,790111,469 97,290 7.299 205 1,472 43,620 44,694 2,388 8,892 176 Nov. 24 P 90,081 63,471 14,19812,41219,810112,849 98,151 7,274 208 2,077 43,74944,843 2,562 8,928 172 Country member banks:5, 6 1941—Dec. 31 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 225 10,109 6,258 4 1,982 6.219 1945—Dec. 31 35,002 5,596 26,999 2,40810,632 46,059 43,418 1.207 5,465 24,23512,494 11 2,525 6,476 1947_Dec. 31 36,324 10,199 22,857 3,26810,778 47,553 44,443 1,056 432 28,37814,560 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 24,79712.49614,274103,615 92;759 1,793 1,960 48,"256 40,693 390- 8,377 5.897 1964—June 30 88,337 52,289 23,21812,83014,953105,430 94,733 1,739 2,872 47,270 42,788 230 8,531 5,971 1964—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 24,341 13,68516,944 112,932101,581 2,182 1,760 52,398 45,169 213 8,886 6,018 1965—Jan. 27 92,990 55,062 24,276 1365214,518109,740 98,441 1,831 1,028 49,713 45,805 417 8,784 6,027 Feb. 24 93,280 55,319 24,154 1380715.234110,568 98,863 1,752 1,980 48, ,408 712 8.819 6,027 Mar. 31 93,867 56,127 23,754 1398615,052111,155 99,673 1,751 2,196 48,626 47,036 312 8,941 6.025 Apr. 28 94,851 57,004 23,49314,35414,422111.467 99,665 1,729 1,596 49,029 47,247 44882 8,996 6,030 May 26 95,775 58,024 23,17514,57614,358112;335100,262 1,682 2,768 47,967 47,774 541 9,111 6,037 June 30 97,043 59,411 22,69714,93515,837115,302103,304 1.825 3,222 49,800 48.386 323 9,359 6,032 July 28 97,012 59,307 22,73014,97514,725114,058102,020 1,765 1,926 49,393 48; _5_0„0 9,250 6,027 Aug. 25 97,462 59,680 22,60015,18214,995114,744102,475 1,847 2,174 49,025 49,358 650 9,301 6.027 Sept. 29 98,669 60,344 22.915 410 15 369 116,399104,123 1,918 1,840 50,31149,983 508 9,421 6,023 Oct. 27 100,156 60.922 23,543 691115 478|118.109105,572 1,994 1,184 51,70750,616 643 9,511 6,024 Nov. 24 v 101,199 61,562 23,806 831115 8291119,4331106,688 1.991 1,509 52,342 50,775 597 9,581 6,030 i For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1744 COMMERCIAL AND MUTUAL SAVINGS BANKS DECEMBER 1965 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loaiis and investments Deposits Total assets— Securities Total Interbank 1 Other Cla a s n s d o d f a b t a e nk Total Loans assets 1 c b a i a l l p i n i a t i d i t - e a s l Total i Demand r B in o o w g r s - - c c T a o a o p u c t i n - a ta t l s l N ba o u n f m k - s G U o . v S t . . Other cou a n c t - s 2 m D a e n - d Time U.S. Time 3 Other Govt. Insured commercial banks: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69.411 10,654 1,762 41,298 15,699 10 6,84413,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 8,671 13,297 1947-Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92.97534,882 61 9,73413,398 1962 -Dec. 28.. 234,243 139,449 65,89128,903 53,702 295.093 260.609 15,844 402 6 815140,16997,380 3,58423,71213,119 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140.702110,723 3.57J 25,277 13,284 1964—Dec. 31.. ">75,053174,234 62,49938,320 59,911 343,876 ^05,11317.664 713 6.487 154,043126.185 2,58027.377 13,486 1965—June 30.. 285,375 187,207 56,42641,742 56,555 351,544 309,61215,920 92811,761 144,205 136,798 3,56229,051 13,528 National member banks: 1941 -Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945-Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 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— Oec. 31.. 151,406 96,688 33,40521,312 34,064 t90.289 169.615 t0 521 1 604 84,53470,746 1.109 15,048 4,773 1965—June 30.. 156,989 103,377 30,23023,382 31,595 193,748 171,528 9,096 313 6,721 79,00976,389 1,685 15,853 4,803 State member banks: 1941 -Dec. 31.. 15.950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 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—Dec. 31.. 77 091 51,002 15,31210,777 18,673 98.852 86.108 6.486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—June 30.. 80,339 55,455 13,16611,718 18,603 102,301 88,215 6,259 538 4,085 41,06836,265 1,769 8,470 1,432 Insured nonmember commercial banks: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20.691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 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— 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 1965—June 30.. 48,058 28,375 13,039 6,644 6,357 55,507 49,869 565 78 955 24,12824,144 108 4,739 7,294 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. 314. 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—Dec. 31.. 1,312 1.355 483 474 578 3,033 2.057 273 86 23 1,141 534 99 406 274 1965—June 30.. 2,336 1,434 418 484 508 2,997 2,020 252 104 34 1,061 568 120 417 262 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. 20.. 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—Dec. 31.. 48,879 27 899 14,273 6,707 7,752 57,780 n.447 931 156 672 26,64523,043 198 4,894 7,536 1965—June 30.. 50,394 29,809 13,457 7,128 6,865 58,503 51,889 817 181 989 25,18924,713 228 5,156 7,556 Insured mutual savings banks: 1941 Tj)ec 3i## 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 .... 1 9 26735,827 7 3,343 331 1963—Dec. 20.. 41,664 32,300 4,324 5,041 722 43,019 38,657 1 5 29238,359 38 3,572 330 1964—Dec. 31.. 45,358 36,233 4,110 5,015 893 47,044 42,751 2 7 32642,416 20 3,731 327 1965—June 30.. 47,031 37,970 3,975 5,085 910 48,806 44,293 1 6 37443,912 43 3,848 327 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 COMMERCIAL AND MUTUAL SAVINGS BANKS 1745 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b t a e nk Total Loans G U o S . v S ec t . . uri O tie t s her a C ss a e s t h si c c b o T a i a l u a l p o i n i c a n t t i - d i - t a t e a l s s l 2 Total 1 m D I a n e n t - e d rba T n i k m 1 e U. D S. ema O O n t t d h h e e r r Time 3 r B in o o w g r s - - c c T a o a o p u c t i n - a ta t l s l N ba b u o n e f m r ks - Govt. Noninsured mutual savings banks: 1941—Dec. 31 8,687 4,259 3,075 1,353 642 9,846 8,744 6 8,738 1,077 496 1945 Dec 31 5,361 1,198 3,522 641 180 5,596 5,022 2 5,020 6 558 350 1947 Dec 3H . . .. 5,957 1,384 3,813 760 211 6,215 5,556 1 2 5,553 637 339 1962 Dec 28 . ... 5,961 3,938 1,490 533 106 6,134 5,427 1 6 5,420 1 608 180 1963—Dec. 20 6,425 4,380 1,548 498 104 6,602 5,859 1 8 5,851 633 179 1964 Dec 31 7,005 4,852 1,678 475 111 7,195 6,387 6 6,381 670 178 1965 June 30 7,385 5,126 1,778 481 110 7,576 6,686 1 20 6,666 688 177 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 savings 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 Dec. 31,1964 and June 30,1965 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.) « 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 Total i Loans1 Total i Loans1 G U o .S vt . . Other G U o .S vt . . Other 1957 Dec 31 166.4 91.4 57.1 17.9 169.3 93.2 58.2 17.9 1958—Dec. 31 181.2 95.6 65 1 20 5 184 4 97 5 66 4 20.6 1959 Dec. 31 185.9 107.6 57.8 20.5 189.5 110.0 58.9 20.5 I960—Dec. 31 194.5 113.8 59.9 20.8 198.5 116.7 61 0 20.9 1961—Dec. 30 209.8 120.5 65.4 23.9 214.4 123.9 66.6 23.9 1962 Dec 31 228.3 133.9 65.2 29.2 233.6 137.9 66.4 29.3 1963—Dec. 31 246.5 149.4 62.1 35 0 252 4 153 9 63 4 35 1 1964 Dec. 31 267.2 167.1 61.4 38.7 273.9 172.1 63.0 38.8 1964 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 31 275.5 175.8 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 26 279.4 179.5 58.6 41.3 277.1 178.8 57.2 41.1 June 30 282.8 183.0 57.7 42.1 283.9 184.9 56.9 42.2 July 28 281.5 182.7 56.4 42.4 281 2 182 4 56 3 42 6 Aug 25 286.1 185.8 57.0 43.3 283.2 184.3 55.5 43.4 Sept. 29 286.2 186.2 56.5 43.5 286.8 187.0 55.9 43.9 Oct. 27* 288.9 188.0 57.0 43.9 290.3 187.8 58.5 44.1 Nov. 24? 291.5 189.8 57.6 44.1 292.4 190.0 58.7 43.7 1 Adjusted to exclude interbank loans. are 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. seasonally adjusted series, see July 1962 BULLETIN, pp. 797-802. 31; data are partly or wholly estimated except when June 30 and Dec. 31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1746 COMMERCIAL BANKS DECEMBER 1965 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Loans * Investments For To b c C a a l n l a l k s d s a a o n t f e d l i m o T n a a v o e n n e n t d a s s t t l s 1 - Total 2 C m d t a c i r o u n i n e i a m a s - r d l - l - - A c tu a u g r l l r - - i- o p b k a T s r u r e n e o r o r c d c s - c u a h r r o a r it t y s T i h i i e n n e o s r g g sb i a T n n f s o i k t n i s a tu n t o c io i t T a h n o l e s rs R t e a e s t a - e l O u v d i t t i a n h o d i 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 r t v i r e i - e t - s i r e n s N m o e t n e t s Bonds g s l r S o e a i o t t c c n a v i u a e t d t e l - s . O s r e t i h t c i u e e r - s dealers Total: 2 1947—Dec. 31.. 16,284 38,057 8,167 ,660 830 ,220 115 9,393 55,,772233 94769,221 2,193 7,789 6,03453,205 5,276 3,729 1962—Dec. 28..135,839 40,106 4^88,6737,097 ,1442,131 2,578 8,459-3 4.,259 300,,555533 3,909 6666,434 1,674 3,932 23,841;2 6,,.987 24', 7—554 ,4543 1963—Dec. 20..254,162 56,00652,9477,470 ,3532,509 3,605 9,479 39,056 344,,555500 4,03463,196 1,059 1,658 22,415 28,065 29,,7586,173 1964—Dec. 31..277,376 75,589 6600,2177,505 ,5422,843 3,491 0,913 43,67539,809 5,15262,991 3,377 9,03930,574 33,,553333 5,263 1965—June 30.. 287,723 88,64165,5468,068 ,0662,912 3,788 [1,463 46,223 43,056 5,14856,853 8,920 144,,6 7~8 33,255 36,541 5,688 All insured 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4 505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 21,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 8888,912 2,455 9,071 6,045 51,342 3,873 3,258 1947—Dec. 31.. 14,274 37,583 8,012 1',610 8231,1'9"0 114 9,266 5,654 91467,941 2,124 7,552 5,918 5f2,347 5,129 3,621 1 1 9 9 6 6 2 3 — — D D e e c c . . 2 2 0 8 . . . .2 25 3 2 4 , , 5 2 7 4 9 3 5 3 5 9 , , 2 4 6 4 1 9 48,458 7,060 5, , 3 1 2 1 1 92 2 , , 1 4 0 7 3 6 2 3 , , 5 5 5 9 1 4 9 8 , , ,4 4 1 3 5 4 : 3 3 8 4, ,, , 8 1 6 2 1 3 3 3 4 0, ,3 4 8 0 3 2 4 3, ,0 8 1 9 5 06 6 5 2 , , 8 7 9 2 1 3 0 1 , , 9 5 5 1 2 4 3 1 , , 9 6 1 4 6 9 2 2 22 3 2, , 3 7 "1 1 -6 5 2 2 6 7 , , 7 8 4 0 6 6 2 2 4 9 , , 5 5 4 5 7 9 54, 033556 1964—Dec. 31..275,053 74,234 . ",3552,794 3,419 10,812 43,436 39,627 5,11262,499 3,275 18,939 30,285 33,294 5|026 1965—June 30.. 285,375 87,207 65,053 8,047 ,9252,860 3,680 11,342 45,95142,879 5,092 56,426 8,849 14,603 32,974 36,295 5,447 Member, total 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 653 19,539 971 3,00715,561 3,0902,871 1945—Dec. 31.. 07,183 22,775 8.,,949 855 3,1333,378 47 3,455 1,900 1,057 78,338 2,27516,985 [4,271 4"4,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,'04•6' 811 1,065 113 7,130 4,662 839 57,914 1,987 5,816 4,815 45,295 4" ,105 1962—Dec. 28..95,698 118,637 43,843 4,419 4,9541,777 2,445 936 27,162 24,799 3,,657 52968 8,862 3,249 19,443 21,414 20,773 3,319 1963—Dec. 20..210,127 131,712 47,403 4,659 5,1242,136 3,439 875 31,009 27,908 3,765 49 342 8,032 1,307 18,072 2T1',932 25,210 3,864 1964—Dec. 31.,228,497 147,690 53,717 4,643 5,1422,411 3,250 10;179 34,587 32,024 4,824 48;717 9,932 15,238 23 ,374 3,715 1965—June 30.,237,328 158,832 58,640 4,969 5,7292,442 3,516 rJ35 36,577 34,582 4,783 43,396 6,260 11,430 25706 31,036 4,064 New York City: 1941—Dec. 31., 12,896 4,072 2,807 8 412 169 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 80 287 272 17,574 477 3,433 3,32510,339 606 629 1947—Dec. 31., 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,002 640 558 9,772 638 604 1962—Dec. 28., 32,989 21,954 11,943 172,766 425 572 2,087 1,329 2,143 1,196 7,017 1,998 508 2,488 2,023 3,585 432 1963—Dec. 20. 34,827 23,57712,332 26 2,677 569 1,007 2,247 1,968 2,257 1,068 6,154 1,711 147 2,341 1,955 4,653 442 1964—Dec. 31. 39,507 27,30114,189 302,742 623 1,179 2,615 2,546 2t'"654 \1371 6,178 1,958 1,972 2,248 5,579 449 1965—June 30. 42,225 30,97516,082 16 3,657 561 1,212 2,977 2,866 2,832 1,419 4,907 1,036 1,120 2,752 5,799 543 City of Chicago: 1941—Dec. 31. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31. 5,931 1,333 760 211 233 36 51 40 4,213 133 1,467 749 1,864 181 204 1947—Dec. 31. 5,088 1,801 1,418 73 87 46 149 26 2,890 132 235 248 2,274 213 185 1962—Dec. 28. 8,957 5,418 2,941 407 152 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—Dec. 31. 10,562 7,102 3,870 510 203 227 948 465 669 430 1,873 564 397 911 1,392 195 1965—June 30. 10,835 7,367 4,099 465 232 266 1,007 514 702 308 1,761 473 299 989 1,493 214 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 4271,503 17 1,459 855 387 2199,552 1,034 6,982 5,65315,883 1,126 916 1947_Dec. 31. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 373 2,358 1,90115,563 ,342 1,053 1962—Dec. 28. 73,130 46,56717,6601,1791,053 752 1,020 3,58311,030 9,860 1,266 18,398 2,343 1,403 7,257 7,395 7,252 913 1963—Dec. 20. 78,370 51,89118,8621,2191,243 891 1,224 4,286 1'-2,52511,106 1,462 16,686 2,152 545 6,600 7,390 8,810 981 1964—Dec. 31. 84,670 57,5"5"5 21,1021,0951,060 986 1,134 4,887 13,61112,802 1,977 16,326 3,200 5,662 7,463 9,871 918 1965—June 30. 87,225 61,1079 22,8171,214 9781,034 1,241 5,07614,21313,636 1,98114,030 1,819 4,161 8,050 11',108 1,008 Country: 1941—Dec. 31. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945_Dec. 31. 35,002 5,596 1,484 648 42 471 1,881 707 359 26,999 630 5,102 4,54416,722 1,342 1,067 1947—Dec. 31. 36,324 10,199 3,096 818 23 227 3,827 1,979 224 22,857 480 2,583 2,10817,687 2,006 1,262 1962—Dec. 28. 80,623 44,69811,299 3,187 728 447 764 1,563 14,44112,273 826 25,425 4,144 1,223 8,84911,209 8,694 1,807 1963—Dec. 20. 87,316 50,02312,8313,374 708 496 966 1,591 114 13,951 917 24,797 3,822 573 8,531 11,87110,3852,111 1964—Dec. 31. 93,759 55,73314,555566 33,493 830 599 710 1,730 964 15,899 ,047 24,341 4,209 7,20612,92511,5312,154 1965—June 30. 97,043 59,41115,6413,713 629 616 796 1,675 984 17,413 ,074 22,697 2,93f 5,84913,915121,,6"3"7 -2.299 Nonmember 1947_Dec. 31. 18,454 5,432 1,205 61 20 156 2,266 1,061 109 11,318 206 1,973 1,21 7,920 1,078 625 1962—Dec. 28. 40,141 21,469 4,8302,678 190 354 132 523 7,097 5,754 25213,466 2,812 683 4,398 5,573 3,9821,224 1963—Dec. 20. 44,035 24,295 5,554444 22,811 229 373 166 604 8,047 6,643 26913,854 3,027 351 4,343 6,133 4,5761,309 1964—Dec. 31. 48,879 27,899 6,5002,862 400 432 241 733 9,088 7,786 32814,273 3,445 3,801 7,026 5,1591,548 1965—June 30. 50,394 29,809 6,9063,099 336 470 272 729 9,646 8,474 36613,457 2,660 3,248 7,549 5,5"0'4 1,624 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

DECEMBER 1965 COMMERCIAL BANKS 1747 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 t f e d B s F w e R a r . i n e R v t - k h e . s s Cur- b m a a w B d n e n a i o c s t k l t e - h - i s s c 3 j m p u D d s o a a t d s e e e n i - - - d t d s * m D e I s n o t - t i e c r s ba e F n ig k o n r- 5 G U o . v S t . . S g l a o o t n c a v a d t t e l . c C c h o f a e e e i f e t n r e r f c c s i d d t . - k * i- s, IPC I b n a t n er k - G p U i a s o n 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 a d t t e l . IPC r B in o o w g r s - - C C o a t a a u c p l - n i- ts Total:* 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,.9913,627 24,094 1963—Dec. 20.. 17,150 4,048 12,312 126579 14,048 ,218 6,729 12,256 4,494 124,784 526 269 7,908 102,886 "3 ,666644 2255,677 1964—Dec. 31.. 17,581 41532 15,111134,671 16,369 ,569 6.510 13,519 5.970 135.694 819 272 9,812 116,635 2,679 27,795 1965—June 30.. 17,842 4,978 13,023126,714 14,696 476 11,796 13,291 6,001 125,974 1,032 27810,573126,516 3,682 29,479 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 2133,740 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 12,795 .1.23.,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 112255,615 13,900 ,177 6,712 12,175 4,429 124,098 443 269 7,853102,600 3,57125,277 1964—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 21,580 27.377 1965—June 30.. 17,842 4,961 12,599 1"2"5,471 14,532 387 11,761 13,199 5,906 125,100 928 27810,522125,998 31,562 29,051 Member, total: 1941—Dec. 31.. 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 5,886 1945—Dec. 31.. 15,811 1,438 7,117 64,184 12,333 ,224433 2122;,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.. 17,797 1,672 6,270 73,528 10,978 ,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 3,550 19,854 1963—Dec. 20.. 17,150 3,131 7,359 1"02,816 13,378 ,140 5,986 9,376 4,055 104,130 382 240 6,364 84,326 3,499 21,054 1964—Dec. 31.. 17,581 3,490 9,057 108,324 15,604 ,403 5,838 10,293 5,368 112,878 664 239 8,012 95,,4252,48122,901 1965—June 30.. 17,842 3,853 7,831101,733 14,009 346 10,806 10,127 5,449 104,502 851 247 8,592 103,814 3,455 2"4,323 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 8,9371,728 3,898 1963—Dec. 20.. 3,625 264 96 16,763 3,487 801 1,419 368 2,119 18,473 214 449 10,920 1,438 3,984 1964—Dec. 31.. 3,730 278 180 17,729 4,112 976 1,486 441 2,940 20,515 436 677 13,534 1,224 4,471 1965—June 30.. 4,274 314 199 16,430 4,115 950 2,561 561 3,270 18,549 579 682 15,969 1,423 5,094 City of Chicago: 1941-Dec? 31.. 1,021 298 2,215 ,027 127 233 34 2,152 476 288 1945—Dec. 31.. 942 200 3,153 ,292 1,552 237 66 3,160 719 377 1947—Dec. 31.. 1,070 175 3,737 ,196 72 285 63 3,853 902 426 1962—Dec. 28.. 1,071 99 4,262 ,235 410 351 109 4,804 16 3,001 262 948 1963—Dec. 20.. 1,019 98 4,144 ,169 395 275 112 4,500 185 3,595 255 996 1964—Dec. 31.. 1,006 150 4,294 1,389 396 312 122 4,929 213 4,361 204 1,056 1965—June 30.. 1,028 97 3,881 1,237 699 276 109 4,542 181 4,563 438 1,096 Other reserve city: 1941—Dec. 31... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 243 4,542 1,967 1945—Dec. 31.. 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 160 9,563 2,566 1947—Dec. 31.. 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 332 11,045 2,844 1962—Dec. 28.. 7,671 1,021 2,253 35,481 7,229 248 2,337 3,216 980 39,413 82 2,633 28,027 1,388 7,263 1963—Dec. 20.. 7,587 935 2,105 35,859 6,958 267 2,212 3,144 1,034 39,281 95 2,950 31,982 1,416 7,697 1964—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 1965—June 30.. 7,274 1,149 2,202 34,279 6,874 294 4,325 3,280 1,091 38,600 173 4,163 38,543 1,271 8,774 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—Dec. 31.. 5,165 2,092 6,295 49,253 2,14i 1,760 6,031 1,068 45,298 83 3,282 41,803 213 8,886 1965—June 30.. 5,267 2,326 5,333 47,143 1,784 3,222 6,010 979 42,810 81 3,566 44,739 323 9,359 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. 2©.. 917 4,953 23,763 671 78 743 2,880 438 20,654 144 1,545 18,560 165 4,623 1964—Dec. 31... t.042 6,054 26,348 765 166 672 3.227 602 22,816 156 1,800 21,210 198 4,894 1965—June 30.. 1,125 5,192 24,982 686 130 989 3,164 552 21,473 181 1,981 22,702 228 5,156 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 Dec. 31,1964 and June 30,1965, 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

1748 WEEKLY REPORTING MEMBER BANKS DECEMBER 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES (In millions of dollars) Loans For purchasing or carrying securities To financialinstitutions Loans Wednesday i T l n o a v o a n e t n d a s s t l - i m n a v e n e n d s t t s - Loans C m c o i e a m r l - - Agri- a T n o d b d r e o a k l e e r r s s To others Bank Nonbank Real o A th l e l r V t a io lu n aments i justed 2 justed 2 in t a r d n i u a d s l - tural G c U t s u o i e . e r v S - s i t . - . O c t s u t i e e h r - s i e - r G c U t s u o i e e . r v S - s i t - . . O c t s u t i e h e r - s e i- r F ei o g r n - c m m D c o t i i e e o m a c s r - l - - - fi P s C a n e a e O n t a l r c S e d n s . . s , . . Other estate se r r e v - es Total— Leading cities 1964 Nov. 4 148,211 145,619 98,021 40,192 1,617 1,099 3,516 68 1,928 1,248 2,592 4,316 4,045 19,741 22,360 2,109 11 147,101 145,016 97,694 40,295 16?9 1,000 3,320 63 1,943 1,287 2,085 4,106 4,059 19,789 22,311 2,108 18 148,179 145,693 97,998 40,651 1 756 3,311 61 1,950 1,292 2,486 4,168 4,048 19,842 22,391 2,107 25 148 979 146,250 98,019 40,548 1,633 954 3,179 64 1,948 1,314 2,729 4,103 4,023 19,886 22,474 2 107 1965 Oct. 6 161,002 158,411111,671 48,132 1,634 370 2,887 92 2,028 1,591 2,591 5,251 4,851 22,046 25,111 2,322 13 163,146 160,859112,298 48,370 1 644 849 2,841 89 2,034 1,623 2,287 5,024 4,851 22., 126 25,167 2,320 20 ... 162 975 160,570111,930 48,241 ,654 729 2,869 93 2,040 1,594 2,405 4,877 4,841 22,153 25,157 2 318 27 162,841 160,286111,781 48,220 649 672 2,808 95 2,044 1,585 2,555 4,831 4,816 22,203 25,176 2,318 Nov 3 . . 162 692 161,498112,729 48,778 ,66? 505 2,918 99 2,065 1,631 2,194 5,179 4,879 22,231 25,100 2 318 10 162,336 159,708112,537 48,737 657 477 2,975 95 2,060 1,626 2,628 4,961 4,863 22,278 25,125 2,317 17 163,222 160,618113,816 49,310 ,682 580 3,174 94 2,062 1,604 2,604 5,121 4,864 22,356 25,286 2,317 24 163,059 161,007113,238 48,951 ,688 676 3,058 93 2,095 1,622 2,052 4,932 4,833 22,387 25,218 2,315 New York City 1964 Nov. 4 35,714 34,928 24,175 12,779 20 613 2,083 9 599 681 786 1,377 813 2,216 3,556 571 11 34,809 34,345 23,808 12,835 70 513 1,871 8 604 688 464 1,309 815 2,218 3,498 571 18 35,692 34,589 23,907 12,996 18 356 1.838 8 601 693 1,103 1,332 818 2,242 3,576 571 25 35 949 34,624 23,724 12,931 18 384i 1,740 9 598 708 1,325 1,250 820 2,255 3,582 571 i 1965 Oct 6 40,023 38,965 28,539 16,222 ?0 176 1,677 19 573 812 1,0-58 1,666 1,137 2,805 4,041 609 13 40,367 39,814 28,787 16,309 70 443i 1,631 18 577 833 553 1,559 1,131 2,811 4,064 609 20 40 836 39,744 28,618 16,204 71 4791 i,637 21 579 819 1,092 1,461 1,144 2,815 4,048 610 27 40,596 39,557 28,372 16,131 21 364! 1 .598 21 583 809 1,039 1,437 1,147 2,814 4 056 609 Nov 3 40,186 39,414 28,749 16,341 21 312 1,699 24 579 854 772 1,538 1,158 2,816 4,016 609 10 40 248 39,315 28 789 16 377 21 336 1,735 22 585 853 933 1,478 1,156 2,831 4,003 608 17 40,412 39,631 29,400 16,630 21 345 1,920 23 591 844 781 1,591 1,159 2,855 4,030 609 24 40 140 39,647 29,204 16,523 21 422 1,820 23 619 855 493 1,540 1,135 2,874 3,981 609 Outside New York City 1964 Nov. 4 112,497 110,691 73,846 27,413 1,597 486 1.433 59 1.329 567 1,806 2,939 3,232 17,525 18,804 1,538 11 112 292 110,671 73,886 27 460 1,609 487 1,449 55 1,339 599 1,621 2,797 3,244 17,571 18,813 1,537 18 112,487 111,104 74,091 27,655 617 400 1,473 53 '349 599 1,383 2,836 3,230 17,600 18,815 1,536 25 113,030 111,626 74,295 27,617 ,615 570 ,439 55 1,350 606 1,404 2,853 3,203 17,631 18,892 1,536 1965 Oct 6 120 979 119,446 83 132 31 910 ,614 194 ,210 73 ,455 779 1,533 3,585 3,714 19,241 21,070 1 713 13 122,779 121,045 83,511 32,061 1,624 406 ,210 71 1,457 790 1.734 3,465 3,720 19,315 21,103 1,711 20 122,139 120,826 83,312 32,037 631 250 ,73? 72 461 775 ,313 3,416 3,697 19,338 21,109 1,708 27 122,245 120,729 83,409 32,089 ,628 308 ,210 74 ,461 776 ,516 3,394 3,669 19,389 21,120 1,709 Nov. 3 122,506 122,084 83,980 32,437 641 193 ,719 75 486 777 ,47? 3,641 3,721 19,415 21,084 1,709 10 122 088 120 393 83 748 32 360 ,636 141 1,240 73 1,475 773 1,695 3,483 3,707 19,447 21,122 1 709 17 122,810 120,987 84,416 32,680 1,661 235 L,254 71 1.471 760 L,823 3,530 3,705 19,501 21,256 1,708 24 122,919 121,360 84,034 32,428 L,667 254 > 738 70 1,476 767 1,559 3,392 3,698 19,513 21,237 1,706 For notes see p. 1750. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 WEEKLY REPORTING MEMBER BANKS 1749 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Investments Cash assets Total U.S. Government securities assets— Wednesday Total Bills c C t a if e t i e r - - s W i i N n th o - m te a s tu a 1 r n i t d n o g b — on A d f s ter O s ri e t t c h ie u e s - r Total d b a o w B a n t m n i a i c c t l e k e h - s s s - b a w e B f a n o i n a c i g r t l e k n - h - s s Cu c a r o r n e i d n ncy B s w F e R a r . i e n v R t - k h e . s s a o s A t s h e l e l t r s a c l c T i a a c a t p o i b o n e i t i u d s t a l a n i l - l ts 1 year 5 years 5 years Total- Leading cities 1964 Nov. 4 26,829 5,171 3,706 11,560 6,392 20,769 18,086 3,348 290 1,729 12,719| 5,885 189,664 11 26,552 4,922 3,711 11,509 6,410 20,770 17,994 3,352 256 1,882 12,5041 5,853 186,022 18 27,032 4,847 3,901 11,876 6,408 20,663 18,599 3,354 257 1,878 13,110! 5,786 188,911 25 27,538 5,345 3,988 11,786 6,419 20,693 17,825 3,160 247 1,856 12,562! 5,821 188,812 1965 Oct. 6 22,577 2,577 4,031 9,322 6,647 24,163 18,109 3,156 190 1,920 12,843 6,734 201,683 13. 24,320 4,363 4,0271 9.321 6,609 24,241 19,343 3,421 201 2,155 13,566 6,624 208,581 20 24,492 4,540 3,9991 9,341 6,612 24,148 18,692 3,252 201 2,096 13,143} 6,466 204,823 27 24,414 4,482 4,018 9,284 6,630 24,091 18,264 3,130 207 2,176 12,751| 6,436 203,103 Nov. 3 23,991 4.043 4,057 9,302 6,589 23,778 19,105 3,415 215 2,016 13,459! 6,598 207,275 10 23,538 3', 625 4,052 9,270 6,591 23,633 18,335 3,191 203 2,049 12,892! 6,568 205,672 17 23,268 3,576 3,922 9,234 6,536 23,534 18,907 3,454 197 2,083 13,173* 6,597 207,166 24,276 4,715 3,846 9,178 6,537 23,493 18,482 3,047 207 2,067 13,161 6,515 205,146 24 New York City 1964 Nov. 4 5,365 1,600 801 1,780 1,184 5,388 3,739 86 134 274 3,245 2.430 48,208 11 5,223 1,474 799 1,766 1,184 5,314 3,992 128 122 278 3,4641 2,421 46,407 5,492 1,603 682 2,040 1,167 5,190 3,829 90 123 273 3,343 2,420 47,312 18 5,678 1,761 708 2,001 1,208 5,222 3,872 84 117 258 3,413 2,400 48,301 25 1965 4,044 609 655 ,390 1,390 6,382 3,718 129 90 295 3,204 2,773 51,611 Oct. 6 4 4 , , 6 8 6 6 5 2 1 1 , ,2 3 3 8 5 8 6 66 5 1 8 , , 3 4 8 1 3 8 1 1, , 3 3 9 8 5 9 6 6 , , 3 26 6 4 2 4 4 , , 6 0 1 5 9 9 1 14 4 9 8 9 9 7 7 2 3 9 2 9 2 4 3 , , 0 51 5 4 2 2 2 , , 6 51 7 6 9 5 5 4 3 , , 6 0 8 4 5 8 1 2 3 0 4,941 1,428; - 678 ,430 1,405 6,244 4,189 175 106 299 3,609 2,471 52,402 Nov. 2 2 1 1 3 7 4 0 7 4 4 4 4 , , , , 4 6 6 6 7 7 5 4 5 0 7 8 1 1 l , , ' 2 1 0 2 4 3 4 1 0 1. 6 6 6 5 8 2 8 8 1 9 0 2 , , , , 4 4 4 4 3 2 3 7 0 1 1 0 1 1 1 1 , , , , 3 3 3 4 9 9 9 0 5 7 4 1 6 5 5 5 , , , , 0 7 8 7 5 7 7 0 6 8 8 3 4 4 4 4 , , , , 0 1 1 2 5 2 3 4 3 0 9 6 1 1 1 1 4 5 2 0 6 1 0 6 1 9 9 9 0 5 2 9 3 2 2 2 3 9 8 9 0 3 2 8 7 3 3 3 3 , , , , 7 6 5 5 1 2 2 9 6 6 6 8| 2 2 2 2 , , , , 5 5 6 5 7 4 5 7 5 4 3 3 5 5 5 5 4 2 3 4 , , , , 7 6 2 1 1 3 6 8 1 0 2 4 Outside New York City 1964 Nov. 4 21,464 3,571 2,905 9,780 5,208 15,381 14,347 3,262 156 1,455 9,474 3,455 141,456 11 21,329 3,448 2,912 9,743 5,226 15,456 14,002 3,224 134 1,604 9,040 3,432 139,615 18 21,540 3,244 3,219 9,836 5,241 15,473 14,770 3,264 134 1,605 9,767 3,366 141,599 25 21,860 3,584 3,280 9,785 5,211 15,471 13,953 3,076 130 1,598 9,149 3,421 140,511 1965 Oct. 6 18,533 1,968 3,376 7,932 5,257 17,781 14,391 3,027 100 1,625 9,639 3,961 150,072 13 19,655 3,128 3,369 7,938 5,220 17,879 14,724 3,273 104 ,833 9,514 3,945 153,896 20. 19,630 3,152 3,338 7,923 5,217 17,884 14,633 3,103 104 ,797 9,629 3,950 151,775 27 19,473 3,054 3,340 7,854 5,225 17,847 14,075 2,955 101 ,877 9,142 3,965 150,701 Nov. 3 19,334 2,899 3,376 7,871 5,188 17,770 14,859 3,295 112 ,709 9,743 4,025 153,091 10 18,890 2,481 3,372 7,840 5,197 17,755 14,215 3,085 108 ,756 9,266 3,993 150,961 17 18,793 2,546 3,293 7,813 5,141 17,778 14,768 3,303 105 ,785 9,575 3,944 153,904 24 19,606 3,494 3,264 7,708 5,140 17,720 14,429 2,901 108 ,785 9,635 3,971 152,516 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1750 WEEKLY REPORTING MEMBER BANKS DECEMBER 1965 ASSETS AND LIABILITIES OF BANKS IN LEADING CITIES—Continued (In millions of dollars) Deposits Borrowings Demand Time Wednesday j u u T s n o t a e t d a d l - * j p u m D o s a d a t s d e e e n i - - - d t d s 5 Total« IPC S g l a o o t n c a v d a t t e l . e F ig o n r- 7 G U o . v S t . . c m m D c o t i i e e o m a c s r - l - - - Total* S in a g v s - IPC Oth S l e a o r t n c a t d a t i e l me e 9 F ig o n r- 7 F B F r a . o R n m k . s F ot r h o e m rs l O i t a t i b h e i s e l r i- c C o i a t u a c a p n - l - ts banks govt. Total- Leading cities 1964 Nov. 4 163,630 64,019 98,301 69,371 5,730 2,052 3,69713,103 65,329 40,12816,254 4,626 3,807 345 3,719 6,405 15,565 11 160,129 63,890 94,593 67,818 5,193 i 842 12,78765,536 40,19716,388 4,606 3,834 434 3,335 6,549 15,575 18 162,791 63,282 97,230 68,982 4,731 ,004 12,597 65,561 40,22716,264 4,611 3,951 103 3,676 6,791 15,550 25 162,336 63,856 96,724 68,724 5,095 1*943 4^~2"6 U,855 65,612 40,25516,288 4,628 3,941 105 3,967 6,883 15,521 1965 Oct. 6 171,900 63,558 95,162 68,420 4,861 1,976 2,404 13,362 76,738 44,506 21,295 5,902 4,278 410 4,914 7,494 16,965 13 178,353 63,817101,399 72,168 4,605 2,065 4,530 13,584 76,954 44,589 21,426 5,932 4,248 855 4,794 7,570 17,009 20 175,205 65,145 98,070 71,140 4,483 2,094 3,789 12,446 77,135 44,660 21,561 5,923 4,233 328 4,875 7,428 16,987 27 173,409 65,704 95,945 70,581 4,839 2,0012,82611,853 77,464 44,71921,739 6,007 4,248 254 4,941 7,469 17,030 Nov. 3 177,198 65,014100,028 71,348 5,572 2,0112,442 13,692 77,170 44,80521,342 5,972 4,303 515 4,878 7,551 17,133 10... 11A,996 64,334 97,620 70,298 5,242 2,0791,468 13,385 77,376 44,,992255 "2'1,431 6,020 4,257 86 5,682 7,770 17,138 17... 176,176 64,435 98,834 71,611 4,909 2,03_32,871 13,088 77,342 44,969 21,336 6,058 4,246 210 5,651 8,015 17,114 24... 174,776 64,102 97,082 70,144 5,007 997 "3,865 12,025 77,694 45,048 21,552 6,120 4,208 681 4,721 7,887 17,081 New York City 1964 Nov. 4... 39,520 15,435 26,314 16,876 658 1,516 1,100 3,454 13,206 4,549 5,176 444 2,715 1,477 2,847 4,286 11... 37,895 15,391 24,522 16,299 425 1,468 810 3,136 13,373 4,567 5,318 440 2,727 1,286 2,872 4,277 18... 38,589 15,356 25,151 16,658 294 1,478 1,327 3,097 13,438 4,580 5,280 443 2,822 1,404 3,049 4,270 25... 39,190 15,230 25,779 16,781 278 1,436 1',231 3,238 13,411 4,583 5,276 444 2,805 1,721 3,134 4,256 1965 Oct. 6... 41,585 15,299 24,619 16,088 344 ,436 708 3,515 16,966 5,191 7,701 559 3,011 1,585 3,479 4,962 13... 44,122 15,009 27,097 17,248 319 ,5251,310 3,758 17,025 5,197 7,740 581 2,996 180 1,900 3,520 4,963 20... 42,989 15,940 25,925 17,174 301 ,512 ,031 3,317 17,064 5,194 7,803 552 3,003 23 1,675 3,400 4,961 27... 42,242 16,025 25,002 17,025 332 ,437 730 3,101 17,240 5,200 7,918 591 3,028 79 1,699 3,421 4,961 Nov. 3... 44,064 15,406 27,084 17,391 513 ,456 638 3,861 16,980 5,205 7,613 603 3,068 95 1,610 3,420 4,995 10... 43,860 14,716 26,794 17,101 364 ,535 370 3,940 17,066 5,227 7,704 603 3,051 2,333 3,523 4,995 17... 42,465 15,344 25,394 17,074 301 ,470 617 3,375 17,071 5,237 7,719 603 3,031 2,347 3,464 4,986 24... 42,204 15,098 24,945 16,829 266 ,420 709 3,245 17,259 5,248 7,874 645 2,991 233 1,830 3,396 4,967 Outside New York City 1964 Nov. 4... 124,110 48,584 71,987 52,495 5,072 536 2,597 9,649 52,123 35,57911,078 4,182 1,092 267 2,242 3,558 11,279 11... 122,234 48,499 70,071 51,519 4,768 518 2,032 9,651 52,163 35,63011,070 4,166 1,107 357 2,049 3,677 11,298 18... 124,202 47,926 72,079 52,324 4,437 510 3,677 9,500 52,123 35,64710,984 4,168 1,129 103 2,272 3,742 11,280 25... 123,146 48,626 70,945 51,943 4,817 507 3,595 8,617 52,201 35,672 1-1',012 4,184 1,136 105 2,246 3,749 11,265 1965 Oct. 6... 130,315 48,259 70,543 52,33: 4,517 5401,696 9,847 59,772 39,31513,594 5,343 1,267 410 3,329 4,015 12,003 13... 134,231 48,808 74,302 54,920 4,286 554400 33,220 9,826 59,929 39,339922 13,686 5,351 1,252 675 2,894 4,050 12,046 20... 132,216 49,205 72,145 53,966 4,182 5822,758 9,129 60,071 39,46613,758 5,371 1,230 305 3,200 4,028 12,026 27... 131,167 49,679 70,943 53,556 4,507 564 2,096 8,752 60,224 39,51913,821 5,416 1,220 175 3,242 4,048 12,069 Nov. 3... 133,134 49,608 72,944 53,957 5,059 555 1,804 9,831 60,190 39,600 13, 5,369 1,235 420 3,268 4,131 12,138 10... 131,136 49,618 70,826 53,197 4,878 544 1,098 9,445 60,310 39,698 13. 5,417 1,206 86 3,349 4,247 12,143 17... 133,711 49,091 73,440 54,537 4,608 5632,254 9,713 60,271 39,732 13! 5,455 1,215 210 3,304 4,551 12,128 24... 132,572 49,004 72,13" 53,315 4,741 57 3,156 8,780 60,435 39,800 13; 5,475 1,217 448 2,891 4,491 12,114 1 After deduction of valuation reserves. banks, international institutions, banks in foreign countries, and foreign 1 Exclusive of loans to domestic commercial banks and after deduction branches of U.S. banks other than reporting bank. of valuation reserves; individual loan items are shown gross. 8 Includes U.S. Govt., postal savings, domestic commercial interbank 3 Excludes cash items in process of collection. and mutual savings banks, not shown separately. 4 Total demand and total time deposits. 9 Includes certificates of deposit outstanding in following amounts 5 Demand deposits other than domestic commercial interbank and (in millions of dollars): U.S. Govt., less cash items in process of collection. 6 Includes certified and officers' checks and deposits of mutual savings Nov. 3 Nov. 10 Nov. 17 Nov. 24 banks, not shown separately. Total—Leading cities 16,250 16,374 16,372 16,610 i Deposits of foreign governments and official institutions, central New York City 6,801 6,899 6,863 7,023 Outside New York City... 9,404 9,475 9,509 9,587 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 BUSINESS LOANS OF BANKS 1751 COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS (In millions of dollars) Outstanding Net change during— Industry 1965 1965 1965 1964 1965 1964 N 2 o 4 v. N 1 o 7 v. N 1 o 0 v. No 3 v. O 2 c 7 t. Nov. Oct. Sept. III h 1 a s l t f 2 ha n l d f Durable goods manufacturing: Primary metals 763 753 750 758 751 12 -56 1 6 92 160 -99 Machinery 2,770 2,800 2,744 2,791 2,759 11 -18 44 36 77 457 534 12 Transportation equipment ,188 ',219 1,192 1,199 1,231 -43 -15 101 180 55 64 119 47 Other fabricated metal products. . ,296 ,320 1,311 1,321 1,327 -31 -67 73 109 154 169 323 -36 Other durable goods ,513 ,521 1,524 1,521 1,537 -24 -19 84 118 142 143 285 -9 Nondurable goods manufacturing: Food, liquor, and tobacco 2,121 2,151 2,015 2.009 1,964 157 231 217 103 -191 -179 -370 704 Textiles, apparel, and leather ,669 ,728 1,738 i;736 1,746 -77 -120 -11 172 176 248 424 -295 Petroleum refining ,385 ,376 1,370 1,357 1,357 28 24 44 102 23 166 189 -11 Chemicals and rubber ,701 ,717 1,701 1,713 1,709 15 58 -9 109 190 299 249 Other nondurable goods ,144 ,133 1,126 1,132 1,144 -59 29 108 106 97 203 -63 Mining, including crude petroleum and natural gas 3,350 3,360 3,349 3,353 3,342 -9 24 1 3 218 221 435 Trade: Commodity dealers 1,443 1,414 1,398 1,339 1,271 172 170 60 62 -370 -20 -390 545 Other wholesale 2,691 2,715 2,677 2,667 2,651 40 74 30 44 144 126 270 156 Retail 3,337 3,412 3,270 3,309 3,176 161 21 169 -19 267 414 681 -68 Transportation communication, and other public utilities 5,663 5,683 5,658 5,662 5,513 150 11 356 333 520 -15 505 637 Construction 2,604 2,618 2,581 2,565 2,551 53 1 -7 29 257 2 259 142 Allother:! Bankers' acceptances 602 618 624 641 623 -21 -68 -102 -191 94 -307 -213 235 All other types of business, mainly services 6,091 6,127 6,128 6,103 6,081 10 29 -3 94 136 428 564 355 Total classified loans 41,331 41,665 41,156 41,176 40,733 598 145 1,167 1,278 1,770 2,293 4,063 2,936 Commercial and industrial loans— All weekly reporting banks 48,951 49,303 48,737 48,778 48,220 731 103 1,220 1,270 2,227 2,501 4,728 3,371 i 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 A an re d a All (thousands of dollars) A an re d a All (thousands of dollars) period loans 1- 10- 100- 200 period loans 1- 10- 100- 200 10 100 200 and over 10 100 200 and over Year: Quarter—cont.:1 19 large cities: New York City: 1964—Sept 4.72 5.64 5.40 5.01 4.61 1 1 9 95 5 6 7 4 4. . 6 2 5 5. . 5 2 4 5. . 1 8 4 4 . . 4 8 4 4. . 5 0 1965— D M e a c r 4 4 . . 7 7 7 4 5 5 . . 5 6 9 2 5.35 5 5 . . 0 1 8 0 4 4 . .6 6 6 2 1958 4.3 5.5 5.0 4.6 4.1 June 4.74 5.62 5.07 4.62 1959 5.0 5.8 5.5 5.2 4.9 Sept 4.76 5.65 5.37 5.13 4.64 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—Sept 5.01 5.88 5.56 5.25 4.86 1963 5.0 5.9 5.5 5.2 4.8 Dec 5.03 5.84 5.58 5.31 4.88 1964 5.0 5.9 5.6 5.3 4.8 1965—Mar 5.00 5.85 5.55 5.26 4.86 June 5.01 5.88 5.58 5.32 4.85 Sept 5.03 5.88 5.62 5.31 4.87 Quarter ;i 19 large cities: 11 southern and western cities: 1964—Sept 4.98 5.86 5.57 5.23 4.79 1964—Sept 5.31 5.95 5.67 5.36 5.09 Dec 5.00 5.85 5.56 5.31 4.82 Dec 5.31 5.96 5.67 5.46 5.06 1965—Mar 4.97 5.89 5.56 5.26 4.78 1965—Mar 5.27 6.02 5.68 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 Sept 5.00 5.90 5.60 5.32 4.80 Sept 5.31 6.02 5.73 5.45 5.03 1 Based on new loans and renewals for first 15 days of month. Changes thereafter occurred on the following dates (new levels shown in per cent): 1955—Aug. 4, 3V4; Oct. 14, 3%; 1956—Apr. 13, 3%; Aug. NOTE.—Weighted averages. For description see Mar. 1949 BULIETIN. 21, 4; 1957—Aug. 6, 4%; 1958—Jan. 22, 4; Apr. 21, 3V2; Sept. 11. 4; pp. 228-37. Bank prime rate was 3 per cent Jan. 1, 1955—Aug. 3, 1955. 1959—May 18, 4%; Sept. 1,5; 1960—Aug. 23,4^; and 1965—Dec. 6, 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1752 INTEREST RATES DECEMBER 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 paper. placed accept- funds m 4 o - n to th 6 s - [ m d 3 i o - r n e to c th t l s 6 y - , 2 90 a n d c a e y s s , 1 rate 3 on i R s s a n u t e e e w M y a ie r l k d et on R is 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 iss y u e e a s r 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 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 Sept 4 38 4.25 4.25 4.01 3.912 3.92 4.050 4.07 4.09 4.11 4.24 Oct 4.38 4.32 4.25 4.08 4.032 4.02 4.197 4.18 4.16 4.18 4.33 Nov 4.38 4.38 4.25 4.10 4.082 4.08 4.238 4.24 4.23 4.29 4.46 Week ending— 1965—Oct. 30 4.38 4.38 4.25 4.00 4.040 4.05 4.192 4.19 4.16 4.21 4.37 Nov. 6 4.38 4.38 4.25 4.13 4.082 4.07 4.219 4.22 4.22 4.25 4.44 13 4.38 4.38 4.25 4.04 4.045 4.06 4.221 4.23 4.24 4.28 4.48 20...... 4.38 4.38 4.25 4.13 4.097 4.09 4.259 4.25 4.23 4.28 4.46 27 4.38 4.38 4.25 4.11 4.104 4.11 4.253 4.25 4.24 4.31 4.45 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 Selectedsnote 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 loca rating group price ratio price ratio ( S l t o a n te g s - Total i term) Total i Aaa Baa Aaa Baa In tr d i u al s- R ro a a i d l- P ut u i 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 r4.62 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 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 5.65 Apr 4 15 3.28 3 09 3 51 4.56 4 43 4.80 4.54 4.64 4 51 4 28 2 95 May 4.14 3.28 3.09 3.51 4.57 4.44 4.81 4.55 4.64 4.53 4.30 2.92 June 4.14 3.32 3.15 3.54 4.60 4.46 4.85 4.59 4.66 4.56 4.38 3.07 6.24 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 Sept 4 25 3.41 3 25 3 61 4 69 4.52 4.91 4.65 4.77 4 64 4.32 2.98 Oct 4.27 3.46 3.31 3.65 4.72 4.56 4.93 4.67 4.81 4.67 4.38 2.91 Nov 4 34 3.50 3 34 3 70 4 75 4 60 4 95 4 71 4 83 4 71 4 41 2 96 Week ending— 1965 Oct 30 . .. 4 29 3.47 3.32 3.67 4 72 4.57 4 93 4.67 4.81 4 68 4 37 2 88 Nov. 6 4.34 3.47 3.32 3.67 4.73 4.58 4.93 4.68 4.82 4.69 4.39 2.91 13 4.35 3.47 3.32 3.67 4.75 4.60 4.95 4.70 4.83 4.71 4.42 2.98 20 4 34 3.52 3.36 3.73 4.75 4.61 4.96 4.71 4.83 4.71 4.41 2.96 27 4.34 3.52 3.37 3.74 4.77 4.61 4.97 4.72 4.84 4.73 4.41 3.00 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

DECEMBER 1965 SECURITY MARKETS 1753 MORTGAGES: NEW HOMES SECURITY PRICES FHA- Conventional first mortgages Common stock prices Volinsured Bond prices (1941-43= 10) ume of Period Y c ( e p ie n e l t r d ) I c ( n r e e p a t s n e t e t e t r r ) - F c ( e e p e t n c e e . t s r ) , ( M t y i u t r y r a s - . - ) L c p r ( o a e r p i t n a e c i n t o r e ) / d ( A o l t o h l v l a o a g n u r . s . ) Period ( G t U l e o o r . n m S v g . t ) . - S l a o t n c a d a te l A C p a A o o te r r A - - Total d t I r u n i s a - - l R ro a a i d l- P u i l u t t i i y b c l - - s ( h t t r i h a n a r o d g e u - s . ) 1961 15.69 (5.98) 1962 86.94 112.1 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—Nov.. 84.81 112.0 95.2 85.44 90.36 48.01 74.39 4,928 Dec. . 84.65 112.6 95.3 83.96 88.71 45.75 74.24 4,729 1964—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 74.12 5,828 Apr.. 5.45 5.74 .51 24.9 73.7 18.1 July.. 84.51 110.8 93.9 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 Sept.. 83.27 109.3 92.8 89.38 94.93 46.96 76.10 7.403 July.. 5.44 5.77 .55 25.0 75.0 18.3 Oct... 82.97 108.4 92.7 91.39 97.20 48.46 76.69 7.809 Aug.. 5.45 5.76 .50 24.5 73.8 18.2 Nov.. 82.22 107.7 92.3 92.15 98.06 50.18 76.80 7,360 Sept.. 5.46 5.75 .56 24.9 73.7 18.1 Oct... C5.49 5.75 .53 24.8 73.8 18.3 Week Nov... 5.51 Ending— Oct. 30 82.78 108.2 92.7 92.20 98.12 49.31 76.77 7,200 1 Last 6 months only. Nov. 6 82.27 107.9 92.5 92.34 98.22 50.10 76.99 7,391 13 82.09 107.9 92.4 93.13 97.96 50.07 77.09 6,357 NOTE.—ArmuaJ data are averages of monthly figures. Yields 20 82.21 107.6 92.3 92.42 98.34 50.29 76.76 7,943 on FHA-insured mortgages are derived from weighted averages 27 82.27 107.3 92.1 91.85 97.71 50.24 76.36 7,093 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*4 per cent, and NOTE.—Annual data are averages of monthly figures. Monthly and weekly an assumed prepayment period of 15 years. Price data are data are averages of daily figures unless otherwise noted and are computed as reported as of the first of the succeeding month. follows: U.S. Govt. bonds, derived from average market yields in preceding table Conventional first mortgages, Home Loan Bank Board in on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, cooperation with Federal Deposit Insurance Corporation be- derived from average yields as computed by Standard and Poor's Corp., on basis ginning in late 1962; interest rate data for earlier years—in of a 4 per cent, 20-year bond; Wed. closing prices. Common stocks. Standard parentheses—are based on estimates from Federal Housing and Poor's index. Volume of trading, average daily trading In stocks on the Administration. N.Y. Stock Exchange for a 5^-hour trading day. STOCK MARKET CREDIT (In millions of dollars) Customer credit Broker and dealer credit Net debit b<ilances with Bank loans to others than N. Y. Stock Exchange brokers and dealers for pur- Money borrowed on— Cus- Month Total firms secured by— chasing or carrying— tomers* securities net other than Other securities free U.S. Govt. se G c U u o . r S v it . t i . es se O cu th ri e ti r es se G c U u o r . v S it t . i . es se O cu th ri e ti r es se G c U u o . r S v it . t i . es Total C co u l s l t a o te m ra e l r co O ll t a h te e r r al c a b n re a c d l e - i s t 1961— Dec 5,602 35 4,259 125 1,343 48 2,954 2,572 382 1,219 1962—Dec . 5.494 24 4,125 97 1,369 35 2,785 2,434 351 1,216 1963—Dec... 7.^242 26 5,515 140 1,727 32 4,449 3,852 597 1,210 1964—Nov..... 7,108 20 5,160 64 1,948 184 3,951 3,469 482 ,131 Dec... 1\ 05 3 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 ,264 Apr..... 7,001 30 5,066 67 1,935 213 3,853 3,326 527 ,207 May.... 7,085 26 5,129 75 1,956 157 4,030 3,397 633 ,208 June.... 7,084 26 5,114 73 1,970 225 4,211 3,396 815 ,297 July.... 6,833 24 4,863 69 1,970 82 3,594 3,099 495 ,233 Aug..... 6,874 22 4,886 68 1,988 145 3,626 3,108 518 ,192 Sept 7,036 22 4,994 88 2,042 86 3,522 2,978 544 ,369 Oct 7,117 23 5,073 95 2,044 150 3,403 2.882 521 ,475 Nov..... 7,304 23 5,209 93 2,095 134 3,527 2,930 597 ,479 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

1754 OPEN MARKET PAPER; SAVINGS INSTITUTIONS DECEMBER 1965 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Dollar acceptances Commercial and finance company paper Heldby— 3ased on— End of period Accepting banks F.R. Goods stored in or Banks Im- Ex- shipped between Placed Placed ports ports Dollar points in Total through direct- into from exdealers i iy2 Total O bi w ll n s bo B u il g ls ht O ac w ct n . F ei o g r n - U S n ta i t t e e s d U S n ta i t t e e s d change United Foreign corr. States countries 1957 2 672 551 2 121 1,307 287 194 94 66 76 878 278 456 46 296 232 1958 32,751 840 31,911 1,194 302 238 64 49 68 775 254 349 83 244 263 1959 3,202 677 2,525 1,151 319 282 36 75 82 675 357 309 74 162 249 I960 4 497 1 358 3 139 2,027 662 490 173 74 230 1.060 403 669 122 308 524 1961 4,686 1,711 2,975 2,683 1,272 896 376 51 126 ,234 485 969 117 293 819 1962 6,000 2,088 3,912 2,650 1,153 865 288 110 86 ,301 541 778 186 171 974 1963 6,747 1 928 4,819 2,890 1,291 1,031 260 162 92 ,345 567 908 56 41 1,317 1964 Oct 9 343 2 431 6,912 3,222 1,400 1,164 236 81 126 ,614 647 935 106 34 1 .500 Nov 9,146 2,438 6,708 3,217 1,458 1,195 263 63 125 ,570 657 955 102 40 1,463 Dec 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 ,498 667 999 111 43 1,565 1965—Jan 8,928 2,143 6,785 3,276 1,535 1,308 227 115 122 ,504 662 956 79 34 ,545 Feb 9 033 2 239 6 794 3,232 1 439 1 247 193 71 118 ,604 660 916 59 26 I 571 Mar 9,077 2,070 7,007 3,325 1,297 1,138 159 143 134 ,751 725 924 31 22 1,622 Apr 9,533 2,047 7,486 3,384 1,394 1,171 223 104 139 ,747 744 936 25 21 1,659 May . . 9 934 1 976 7,958 3,467 1,452 1,187 264 82 160 ,774 76"l 965 23 21 1,698 June 9,370 1,965 7,405 3,355 1,443 1,127 316 53 157 ,702 736 960 13 18 [,627 July 10,439 2,046 8,393 3,337 1,357 1,094 263 35 151 ,794 782 949 11 16 1,580 AUK ... 10 358 2 117 8,241 3,299 1,321 1,078 243 55 145 ,779 797 933 11 12 1,547 Sept 9,692 2,194 7,498 3,314 1,311 1,114 198 63 152 ,787 820 942 17 20 L,516 Oct 10,554 2,250 8,304 3,310 1,264 1,099 165 86 156 ,804 842 919 18 16 I 515 1 As reported by dealers; includes finance co. paper as well as other 3 Beginning with Nov. 1958, series includes all paper with maturity commercial paper sold in the open market. of 270 days or more. Figures on old basis for Dec. were (in millions): 2 As reported by finance cos. that place their paper directly with total $2,739; placed directly $1,899. investors. MUTUAL SAVINGS BANKS (Amounts in millions of dollars) Loans Securities Total assets— fend of period M ga o g r e t- Other G U o . v S t . . S g 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 Cash O as t s h e e ts r g r l e T i e a a s t n o i e b n e e t r i d s a r v l a i l e - l D i e ts p o 2 s- l O ia t t i b h e i s e li r - G re e s n e e rv ra e l c M om or m tg i a tm ge e n lo ts a n 3 accts. Number Amount 1941 4,787 89 3,592 1,786 829 689 11,772 10,503 38 1,231 1945 4,202 62 10,650 1,257 606 185 16,962 15,332 48 1,582 1956 19,559 248 7,982 675 3,549 920 448 33,381 30,026 369 2,986 1957 20,971 253 7,583 685 4,344 889 490 35,215 31,683 427 3,105 1958 23,038 320 7,270 729 4,971 921 535 37,784 34,031 526 3,227 89,912 1,664 1959 4 24,769 358 6,871 721 4,845 829 552 38,945 34,977 606 3,362 65,248 1,170 1960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 58,350 1,200 1961 28,902 475 6,160 667 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—Sept 39,146 739 6,082 409 5,193 883 887 53,339 47,757 1,200 4,383 134,277 736 Oct 39,538 727 5,849 403 5,178 898 889 53,482 47,982 1,146 4,354 139,066 825 Nov 39,898 760 5,785 399 5,180 905 898 53,825 48,188 1,223 4,414 136,470 811 Dec 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 135,992 820 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 ,123 992 909 55,133 49,444 1,214 4,476 138,062 2,838 Mar 41,265 820 6,054 38L 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 July 42,600 807 5,791 356 5,284 946 955 56,739 50,844 1,350 4,545 151,885 2,947 Aug 42,964 872 5,814 349 5,299 941 951 57,191 51,063 1,502 4,626 136,180 2,928 Sept 43,305 842 5,795 349 5,263 960 958 57,470 51,506 1,326 4,639 132,029 2,897 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. 1741. 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

DECEMBER 1965 SAVINGS INSTITUTIONS 1755 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period T as o s t e a t l s United State and 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 Total States local Foreign Total Bonds Stocks Statement value: 1941 32,731 9,478 6,796 1,995 687 10,174 9,573 601 6,442 1,878 2,919 =1,840 1945 44,797 22,545 20,583 722 1,240 11,059 10,060 999 6,636 857 1,962 '1,738 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 U9,576 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 6,134 3,888 1,874 55,294 49,036 6,258 44,203 4,007 5,733 r5,683 1962 133,291 12,448 6,170 4,026 2,252 57,576 51,274 6,302 46,902 4,107 6,234 r6,024 1963 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 C6,385 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—Sept.r.. 147,189 12,605 5,840 3,833 2,932 61,431 55,275 6,156 53,571 4,494 7,030 8,058 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 3779977 2,991 62,704 56,183 6,521 55,941 4,543 7,201 8,090 Mar.... 151,663 12,337 5,557 ,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 July. . . 154,418 12,018 5,311 3,652 3,055 64,356 57,608 6,748 57,663 4,640 7,464 8,277 Aug.... 155,186 11,982 5,321 3,606 3,055 64,629 57,834 6,795 58,017 4,653 7,510 8,395 Sept.... 156,040 11,897 5,259 3,584 3,054 64,899 57,944 6,955 58,411 4,677 7,552 8,604 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; gures are estimates for all accrued and for differences between market and book values are not made life insurance cos. in the United States. on each item separately but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Total Mortgage E p n er d i o o d f M ga o g r e t s - s G U ec o . u S v r . t i . - Cash. Other 1 a li s a T s b e o i t l s t i a 2 ti l — es S c a a v p i i n ta g l s u R n e d a s i n e v r d i v d e e s d B m or o r n o e w y e 3 d L p o r a o n c s e s i s n Other c m o l m o en a m n ts i t 4 ties profits 1941 4,578 107 344 775 6,049 4,682 475 256 636 1945 5,376 2,420 450 356 8,747 7,365 644 336 402 1958 45,627 3,819 2,585 3,108 55,139 47,976 3,845 1,444 1,161 713 1,475 1959 53,141 4,477 2,183 3,729 63,530 54,583 4,393 2,387 1,293 874 1,285 1960. 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 1,359 1961 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,908 1962 78 770 5 563 3 926 5 346 93,605 80 236 6 520 3 629 1,999 1 221 2,230 1963 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,614 1964—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 3,124 103 975 7,356 3,398 7,293 122 022 103,642 8 017 5 456 2,281 2,626 3,281 May 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 8,314 5,887 2,441 1,787 3,266 July 106,647 7,180 3,266 7,529 124,622 105,605 8,333 6,086 2,415 2,183 3,195 Aug 107,490 7,167 3,308 7,615 125,580 106,159 8,345 6,099 2,364 2,613 3,124 Sept 108,234 7,177 3,408 7,739 126,558 107,199 8,349 6,164 2,311 2,535 3,076 1 Includes other loans, stock in the Federal home loan banks, other 4 Commitments data comparable with those shown for mutual savings investments, real estate owned and sold on contract, and office buildings banks (on opposite page) would include loans in process. and fixtures. 2 Before 1958 mortgages are net of mortgage-pledged shares. Asset NOTE.—Federal Savings and Loan Insurance Corp. data; figures are items will not add to total assets, which include gross mortgages with no estimates for all savings and loan assns. in the United States. Data deductions for mortgage-pledged shares. Beginning with Jan. 1958, no beginning with 1954 are based on monthly reports of insured assns. and deduction is made for mortgage-pledged shares. These have declined annual reports of noninsured assns. Data before 1954 are based entirely consistently in recent years and amounted to $42 million at the end of on annual reports. Data for current and preceding year are preliminary 1957. even when revised. 3 Consists of advances from FHLB and other borrowing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1756 FEDERAL FINANCE DECEMBER 1965 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) Derivation of U. S. Government cash transactions Receipts from the public, Payments to the public, Net cash borrowing other than debt other than debt or repayment Period Net rects. Bu n d e g t et T f P u r l n u u d s s : s t g I L n o e t v r s t s a .1 : - E r T e q o c u t t a s a . l l s 2 : Budget f T u P n r lu u d 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 . : pa o y r ts. C & (d h d a i i a r n e g n e b e c g n t t e .) a I t g L n r e b v u e n s e y s . s s t : s & t. L N c d a e e o s s b n h s t - : Eq N u e a t ls: C»l. 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—Oct 3,398 1,224 271 '4,340 8,329 2,286, 298 10,317 '5,977 93 -1,360 16 '1,438 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 June" 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 -37 9,696 -4,714 -667 -1,045 50 318 Aug 7,350 4,572 314 11,595 8,990 2,349 -960 12,299 -705 2,131 2,515 -383 Sept 10,999 1,954 328 12,599 9,452 3,142 1,504 11,090 1,509 -1,542 -1,210 46 -378 Oct 3,295 1,262 238 4,283 8,750 2,447 679 10,518 -6,234 2,187 -1,308 125 3,370 Effects of operations on Treasurer's account Net operating transactions Net financing transactions Change in Treasurer's account cash balances (end of period) Period Agencies & trusts Change Operating bal. s B d u u e r o f d p i r g c lu i e t s t f T un ru d s s t 3 C ac l c e o a u ri n n t g s i M ssu ar a k n e c t e i I n n U ve . s S t, . p d g u i r i r b n o e l s c i s c t T o r u H e t a e s s l i d u d r e y a T u cc r r o e e r a u ' s n s - t Balance F.R. T an a d x O as n t s e h e t e ts r of Govt. debt banks loan sec. 3 sec. 3 accts. 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.J61 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 2,835 -667 -209 5,316 12,610 672 10,689 1,249 Month: 1964—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 Tan -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 Aug -1,640 2,223 -1,273 473 -2,515 1,658 -215 -858 7,627 916 5,548 1,163 Sept 1,548 -1,189 1,130 -49 1,210 -1,493 148 1,010 8,637 1,002 6,394 1,241 Oct -5,455 -1,186 317 33 1,308 2,154 24 -2,852 5,786 1,053 3,534 1,199 1 Primarily interest payments by'Treasury to trust accounts and accumu- • 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 5 Includes net transactions of Govt.-sponsored enterprises. for this reclassification. * Primarily (1) intragovt. transactions, (2) noncash debt, (3) clearing accounts. NOTE.—Based on Treasuty Dept. and Bureau of the Budget data. 9 Includes technical adjustments not allocated by functions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 FEDERAL FINANCE 1757 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Cash receipts from the public Income taxes Excise taxes Social ins. taxes Period Estate Int. Total W I i n th d - ividual Corp. Total L a b n i a q d c u c t o o o r - H w ig ay h- Total O R a A n .R d S . I e U m n p - l. a g n if d t t C o u m s s - r m e a p e n a n d y ts - fu R n e d - s Other Other held 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 38,71914,269 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 39,25915,331 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 5,921 3,782 22,140 17,833 3,816 2,744 1,478 2,094 6,028 2,679 Half year: 1963—July-Dec... 51,847 20,120 3,465 9,242 7,043 2,940 1,898 9,209 7,373 1,588 992 661 943 1,044 1,216 1964—Jan.-June.. 63,683 19,13911,866 15,059 6,907 2,690 1,748 12,727 10,032 2,449 1,424 623 759 6,104 1,283 July-Dec... 51,352 17,732 3,598 9,989 7,398 3,089 1,947 9,378 7,535 1,594 1,170 729 900 1,008 1,466 1965—Jan.-June*. 68,334 19,09813,223 16,142 7,400 2,832 1,786 12,759 10,297 2,221 1,574 749 1,193 5,021 1,217 Month: 1964—Oct '4,340 1,158 264 572 1,176 n.a. 298 '640 478 121 205 126 130 176 '245 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" 15,306 2,946 2,369 6,596 1,363 565 347 1,521 1,408 73 217 145 197 322 274 July 4,981 1,299 362 727 1,221 462 333 773 631 94 232 137 198 223 255 Aug 11,595 5,377 164 482 1,305 n.a. 421 3,808 2,922 847 212 145 181 225 146 Sept 12,599 5.995 2,427 4,236 1.162 n.a. 334 1.200 1,118 43 193 159 196 186 217 Oct 4.283 1.263 244 625 983 n.a. 313 610 465 101 213 153 202 206 196 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 a t i l r . s' s S e p r a e a r - c c e h cu A lt g u r r i e - 6 so N u u r r a e r a c - t l - es t m C ra a e o n n r m d s c p e - . & H d e i o n c v u o g e s m l - . . l H w ab e e a l o f l r a t r h & e , Ed ti u o c n a- e V ra e n t- s In e t s e t r- G G e o r e a v n l t - . Fiscal year—1962 107,662 51,462 3,976 1,257 4,458 2,223 5,487 1,691 23,975 1,052 6,092 6,940 1.837 1963 113,751 53,429 3,805 2,552 5,703 2,456 5,777 -268 25,698 1,214 5,971 7.427 1,953 1964 120,332 54,514 3,492 4,171 5,846 2,595 6,545 1.674 27,285 1,299 6,107 8,011 2,221 1965>> 122,369 50,767 4,622 5,094 5,413 2,723 7,420 862 28,285 1,493 6,087 8,684 2,348 Half year: 1963—July-Dec 61,572 26,359 1,031 1,857 4,302 1,455 3,657 1,850 13,162 563 2,956 3,481 1,052 1964—Jan.-June 58,761 28,158 962 2,313 3,038 1,139 2,890 -175 14,126 732 3,150 4,170 1,168 July-Dec 61,510 24,569 1,818 2 333 3,642 1,543 4,288 516 13,722 639 2,943 4,258 1,138 1965—Jan.-June». . . 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—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 Aug 12,299 4,393 346 482 1,066 319 611 67 2,387 118 496 1,645 189 Sept 11.090 4,610 346 489 639 281 748 94 3,499 171 513 365 214 Oct 10,518 4,538 456 449 476 269 646 124 2,600 90 520 375 201 1963 1964 1965 1963 1964 1965 Item IV III IV II" III IV HI I IV II" III Seasonally adjusted Not seasonally adjusted Cash budget: Receipts.... 29.0 29.5 28.7 28.2 28.7 29.9 32.7 30.5 24.5 30.3 33.4 27.0 24.3 30.7 37.7 29.2 Payments... 29.9 30.5 29.7 30.2 29.8 30.1 32.3 32.3 30.6 28.7 30.1 30.9 30.6 28.3 32.6 33.1 Net. -.9 -1.1 -1.1 -2.0 > -1.1 -.2 -\.t -6.1 1.6 3.3 -3.9 -6.3 2.4 I 5.1 -3.9 For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1758 U.S. GOVERNMENT SECURITIES DECEMBER 1965 TOTAL DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues3 End of period d T g e r o b o t t s a s 1 l d T g i r o r o e t s a c s l t Marketable C ve o r n t- - Nonmarketable i S ss p u e e c s ia 6 l debt 2 Total Total Bills C c e a r t t e if s i- Notes Bonds * b i o b n l d e s Total 5 S in a g v s bonds 1941 Dec 64.3 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1945 Dec ... 278.7 278.1 255.7 198.8 17.0 38.2 23.0 120.6 56 9 48 2 20 0 1947 Dec 257 0 256 9 225 3 165 8 15.1 21.2 11 4 118 0 59 5 52 1 29 0 1957 Dec 275.0 274.9 227.1 164.2 26.9 34.6 20.7 82.1 9.5 53.4 52 5 45 8 1958 Dec 283.0 282.9 236.0 175.6 29.7 36.4 26.1 83.4 8.3 52.1 51.2 44.8 1959 Dec . 290.9 290.8 244.2 188.3 39.6 19.7 44.2 84.8 7.1 48 9 48 2 43 5 1960 Dec 290.4 290.2 242.5 189.0 39.4 18.4 51.3 79.8 5.7 47 8 47 2 44 3 1961 Dec 296 5 296.2 249 2 196 0 43.4 5.5 71.5 75.5 4.6 48 6 47 5 43 5 1962 Dec 304.0 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48 8 47 5 43 4 1963 Dec 310.1 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48 8 43.7 1964—Nov 319 3 318 5 267 4 212 4 56 5 58 9 97 0 3 1 5( 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 7 317.2 316.6 267.8 212.5 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 47.8 317.9 317.3 264.5 208.7 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 8 318 7 318.2 264 1 208 4 53.7 50.4 104.3 2.9 52 8 50 2 49 8 317.3 316.7 264.3 208 4 53.7 50.4 104.3 2.9 53.0 50 2 48 1 Oct 319 4 318 9 267 6 212 1 57 7 50.2 104.3 2.8 52 7 50 3 47 0 322.2 321.7 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 47.1 1 Includes noninterest-bearing debt (of which $281 million, on Nov. 30, 5 Includes (not shown separately): depositary bonds, adjusted service 1965, was not subject to statutory debt limitation) and guaranteed secur- bonds, foreign currency series, foreign series, and Rural Electrification ties not shown separately. Administration bonds; before 1954, armed forces leave bonds; before 2 Excludes guaranteed securities. 1956, tax and savings notes; and before Oct. 1965, Series A investment 3 Includes amounts held by U.S. Govt. agencies and trust funds, which bonds. totaled $15,298 million on Oct. 31, 1965. 6 Held only by U.S. Govt. agencies and trust funds. •* Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. NOTE.—Based on Daily Statement of U.S. Treasury. OWNERSHIP OF DIRECT AND FULLY GUARANTEED SECURITIES (Par value in billions of dollars) Heldby— Held by the public E pe n r d i o o d f T g d r o e o t b s a t s l ag G U t e a r o n u n .S v c s d . i t t e . s b F a . n R ks . Total m C b e a o r n m c k ia - s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie e r - - s r c O a o t t r i h o p e n o r s - g S l a o o t n c a v d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r t n o e e d n i r g a - n l2 i O m n to v t i h r e s s e c s r - . 3 funds i 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 1964 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 14.4 319 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 8 317.2 59.2 37.8 220.3 59.5 5.8 11.0 17.3 24.0 49.2 22.2 16.0 15.3 319 8 62 7 38 7 218 5 58 1 5 8 10 9 18 1 24 0 49.2 22 2 15 8 14 4 317 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 22.1 15.7 14.6 318 7 64.8 39 0 214 9 56 2 5 7 10.6 17.3 23 2 49.4 22.0 15 8 14 7 Sept 317 3 63.6 39.8 213 9 57 2 5.7 10.6 16.2 ••22.5 49.4 22.1 r16.3 '14 0 Oct 319.4 62.3 39.7 217.5 59.4 5.5 10.5 16.9 22.7 49.4 22.2 16.5 14.5 1 Includes the Postal Savings System. 3 Includes savings and loan assns., dealers and brokers, nonprofit 2 Includes investments of foreign balances and international accounts institutions, and 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

DECEMBER 1965 U.S. GOVERNMENT SECURITIES 1759 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 -1 ar 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 S8.487 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—Sept. 30 208.381 92,444 53,655 38,789 55.264 35.027 8,447 17,199 Oct. 31 212,097 96,491 57,660 38,831 54,952 35,024 8,446 17,184 U.S Govt. agencies and trust funds: 1962—Dec. 31 9.638 ,591 865 726 1.425 2,731 1,309 2,583 1963—Dec. 31 11,889 ,844 1,366 478 1,910 ,021 2,178 2.936 1964—Dec. 31 12,146 ,731 1,308 424 2,422 ,147 1.563 3.282 1965—Sept. 30 13,197 .530 1,130 400 2,788 ,344 2,069 3,466 Oct. 31 13,077 ,407 1,007 400 2,785 ,348 2,070 3,466 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—Sept. 30 39,774 29,456 8,396 21,060 8.484 1.449 147 238 Oct. 31 39,657 29,339 8,279 21,060 8,484 1,449 147 238 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—Sept. 30 155,410 61,458 44.129 17,329 43.992 30.234 6.231 13.495 Oct. 31 159,363 65,745 48,374 17,371 43,683 30.227 6,229 13,480 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—Sept. 30 47,674 14,976 6,814 8,162 20,245 11.463 326 664 Oct. 31 49,462 16,893 8,786 8,107 20,131 11,462 322 654 Mutual savings banks: 1962—Dec. 31 5,793 635 252 383 1,337 2.210 306 1,305 1963—Dec. 31 5,502 690 268 422 1,211 2.009 377 1,215 1964—Dec. 31 5,434 608 344 263 1,536 1.765 260 1,266 1965—Sept. 30 5,509 933 610 323 1.435 1.612 348 1,181 Oct. 31 5,316 815 486 329 1,414 1.600 339 1,148 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—Sept. 30 8,834 784 416 368 2.038 2.185 1,117 2,710 Oct. 31 8,853 825 461 364 2,042 2.169 1,114 2,703 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—Sept. 30 7,394 5,190 3,955 1,235 1,853 233 43 76 Oct. 31 7,792 5,694 4,412 1,282 1,746 235 37 80 Savings and loan associations: 1962—Dec. 31 2,862 437 254 183 817 ,030 105 473 1963—Dec. 31 3,253 378 236 142 919 ,202 253 501 1964—Dec. 31 3,418 490 343 148 1,055 ,297 129 447 1965—Sept. 30 3,516 439 279 160 977 ,388 250 462 Oct. 31 3,597 504 343 161 985 ,393 251 465 State and local governments: 1962—Dec. 31 11,716 4,447 3,282 1,165 1.059 ,505 688 4,017 1963—Dec. 31 12,453 4,637 3,869 768 941 ,502 1,591 3,782 1964—Dec. 31 15,022 4,863 3,961 902 2.014 2.010 1,454 4,680 1965—Sept. 30 15,912 5,730 4,815 915 1,940 1,841 1.996 4,405 Oct. 31 16,119 5,873 4,959 914 1,980 1,857 1,997 4,411 AU 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—Sept. 30 66.571 33,407 27,239 6.168 15,503 11,513 2,150 3.997 Oct. 31 68,224 35,140 28,927 6.213 15.384 11,511 2.169 4,020 NOTE.—Direct public issues only. Based on Treasury Survey of banks, and 770 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 5,960 commercial banks, 501 mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1760 U.S. GOVERNMENT SECURITIES DECEMBER 1965 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt agency Period Dealers and brokers securities Total Within 1-5 3-10 Over mercial All 1 year yean years 10 years U.S. banks other Govt. Other securities 1964—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 June 1,786 1,453 20(1 103 31 584 45 69* 462 204 July .... 1 519 1,284 125 82 28 452 37 615 415 152 1,488 1,172 183 91 43 465 39 568 417 140 Sept .... ... 1,548 1,297 140 70 41 458 32 604 453 139 Oct 1,928 1,715 123 64 26 596 36 834 461 149 Week ending— 1965—Oct. 6 2,111 1,853 159 73 26 642 42 925 502 176 13 2,363 2 11R 134 82 29 696 42 1,142 483 190 20 1,807 ,585 126 73 22 583 35 741 449 147 27 1,613 ,447 86 51 29 589 31 629 365 122 Nov. 3 2,136 1,890 166 53 26 518 39 848 731 100 10 1,981 1,587 285 73 37 621 63 737 560 144 17 2 111 ,614 346 110 41 634 48 932 497 163 24 2,224 891 204 99 31 581 41 1,025 578 155 NOTE.—The transactions data combined market purchases and sale* 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 ll ities W 1 i y t e h a in r y 1 ea -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 sou A r 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- ot A h l e l r 1964—Oct 3,358 2,966 231 160 262 Nov.... 3,692 3,073 479 140 313 1964— 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 1,323 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 7une... 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 1,251 776 1,457 609 Aug 3,548 2,907 222 419 368 July 4,459 1,293 1,009 1,468 688 Sept 2,858 2,622 75 161 292 Aug 3,815 967 650 1,584 613 Oct 2,562 2,381 68 112 286 Sept 3,050 807 643 1.284 316 Oct 2,579 823 605 871 279 Week ending— Week ending— 1965—Sept. 1. 3,538 3,092 158 289 301 8. 3,012 2,717 99 197 289 1965—Sept. 1... 3,619 1,036 587 1,666 330 15. 3,053 2,819 76 159 283 8... 3,173 582 487 1,698 405 22. 3,051 2,839 56 157 289 15... 3,160 846 570 1,469 275 29. 2,498 2,304 70 125 308 22... 3,264 955 876 1,118 315 29... 2,627 805 647 873 302 Oct. 6. 1,514 1,346 64 105 294 13. 2,667 2,463 91 114 312 Oct. 6... 1,801 428 377 806 189 20. 2,845 2,656 73 116 285 13... 2,243 684 527 796 236 27. 2,944 2,776 53 115 276 20... 3,041 999 889 784 370 27... 2,913 1,069 588 962 294 NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract unless the 1 All business corps, except commercial banks and insurance cos. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than note to the opposite table on this page. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 OUTSTANDING SECURITIES 1761 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE, NOVEMBER 30, 1965 (In millions of dollars) Issue and coupon rate Issue and coupon rate Amount Issvje and coupon rate 'Amount Issue and coupon rate Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Dec. 2,1965 2.205 May 5,1966 1,000 Apr. 1968 n, 212 Aug. 15, 1970....-.4 4,129 Dec. 9, 1965 2.202 May 12, 1966 1,000 Oct. ,1968 li 115 Aug. 15, 1971......4 2,806 D D e e c c . . 2 1 3 6 , , 1 1 9 9 6 6 5 5 2 2 . . 2 2 0 0 3 2 M M a a y y 2 1 6 9 , , 1 1 9 9 6 6 6 6 1 1 , , 0 0 0 0 1 1 A O p ct r . . , , 1 1 9 9 6 6 9 9 l l i i y , 1 6 5 1 9 N Fe o b v . . 1 1 5 5 , , 1 1 9 9 7 7 1 2 4 3 % 2 2 , , 7 3 6 4 0 4 Dec. 30, 1965 2,200 May 31, 1966 1.001 Apr. , 1970 li 88 Aug. 15, 1972 .4 2.579 Dec. 31, 1965 1,003 June 22, 1966 3,516 Oct. , 1970 li 10 Auf. 15, 1973......4 3,894 Jan. 6,1966 2.202 June 30, 1966 1,001 Nov. 15, 1973......4% 4,357 Jan. 13, 1966 2.201 July 31, 1966 1.000 Treasury bonds Feb. 15, 1974 .4% 3,130 J J a a n n . . 2 20 7 , , 1 19 9 6 6 6 6 2 2 . , 2 2 0 0 5 1 A Se u p g t . . 3 30 1 , , 1 1 9 9 6 6 6 6 1 1 , , 0 00 0 0 0 J D u e n c e . 1 1 5 5 , , 1 1 9 9 6 6 3 2 - - 6 6 8 7 . . . . 1 1, , 7 4 9 3 1 0 N M o a v y . 1 1 5 5 , , 1 19 9 7 7 4 4 .. 3 4 % V4 2 3 , , 2 5 4 9 3 3 Jan. 31, 1966 1.000 Oct. 31, 1966 1,000 June 15, 1964-69.. 2,554 May 25, 1975-85.. AVA 1,218 F F e e b b . . 1 3 0 , , 1 1 9 9 6 6 6 6 2 2, , 2 2 0 0 1 2 Nov. 30, 1966 1,001 D M e a c r . . 1 1 5 5 , , 1 1 9 9 6 6 4 5 - - 6 70 9 . . . . 2 2 , , 4 5 1 3 0 3 J F u e n b. e 1 1 5 5 , , 1 19 9 8 7 0 8 -83... 3 4 V 4 2 1, , 5 6 8 0 2 8 Feb. 17,1966 2,202 Treasury notes May 15, 1966 1,688 Nov. 15, 1980 31/2 1,912 F F e e b b . . 2 2 8 4 , , 1 1 9 9 6 6 6 6 2 1 , . 2 00 0 1 1 F F e e b b . . 1 1 5 5 , , 1 1 9 96 6 6 6 3 3 5 % /8 2 2 . , 1 5 9 9 5 7 A N u o g v . . 1 1 5 5 , , 1 1 9 9 6 6 6 6 1 1 , , 8 0 5 2 1 4 M Fe a b y . 1 1 5 5 , , 1 1 9 9 8 9 5 0 . . .. . . . . . .. . 3 31 V /2 4 4 1 , , 9 12 0 7 0 M M a a r r . . 1 3 0 , , 1 1 9 9 6 6 6 6 1 1 , . 0 0 0 0 0 0 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 M un a e r. 1 1 5 5 , , 1 1 9 9 6 6 6 7 - - 7 7 1 2 . . . . 1 1 , , 3 2 9 7 9 8 A Fe u b g . . 1 1 5 5 , , 1 1 9 9 8 8 8 7- - 9 9 2 3 . . . . . . 4 4 14 3, 2 8 5 1 0 8 M M M a a a r r r . . . 2 2 1 2 4 7 , , , 1 1 1 9 9 9 6 6 6 6 6 6 3 1 1 . . , 0 0 0 0 0 0 5 0 9 O A N c u o t g v . . . 1 15 5 1 , , , 1 1 1 9 9 9 6 6 6 6 6 6 4 4 li/2 1 2 1 , , 2 3 0 5 5 6 7 4 0 D N Se e o p c v . t . . 1 1 1 5 5 5 , , , 1 1 1 9 9 9 6 6 6 7 7 7 - - 7 7 2 2 . . . . 2 2 1 , . ,9 0 6 5 1 8 2 9 7 F N M e o a b v y . . 1 1 1 5 5 5 , , , 1 1 19 9 9 9 8 9 8 9 5 . - . . 9 . 4 . . . . - . 3 4 3 i 1 / / 8 2 2 4 1 . , , 2 5 4 2 6 1 5 0 4 Mar. 31, 1966 2.000 Feb. 15, 1967 3% 2,358 May 15, 1968 2; 460 Apr. 7, 1966 1.001 Feb. 15, 1967 4 5,151 Aug. 15, 1968 3,747 Convertible bonds A A A p p p r r r . . . 2 2 1 8 1 4 , . , 1 1 1 9 9 9 6 6 6 6 6 6 1 1, , 0 0 9 0 0 9 1 3 9 A A M u p a g r y . . 1 15 1 5 , , , 1 1 1 9 9 9 6 6 6 7 7 7 4 3 i V y % 2 4 2 9 , , 9 2 7 2 7 4 0 9 8 N O Fe c o b t v . . . 1 15 5 1 , , , 1 1 1 9 9 9 6 6 6 9 9 8 6 3 1 , , , 5 2 7 9 6 2 1 0 8 I A n p v r e . s tm 1 e , n t 1 9 S 7 e 5 ri - e 8 s 0 B .. .2V4 2,809 Apr. 30, 1966 1.001 Oct. 1,1967 \y2 457 Feb. 15, 1970 4.381 NOTF.—Direct public issues only. Based on Daily Statement of U.S. Treasury. FEDERALLY SPONSORED AGENCIES, OCTOBER 31, 1965 Agency, a n ty d p e c o a u n p d o n d a r t a e t e of issue, Maturity o ( A f m m d i o l o l l i u l o a n n r t s s) Agency, a n ty d p e c o a u n p d o n d a r t a e t e of issue, Maturity o ( A f m m d i o l o l l i l u o a n n r t s s) Federal home loan banks Federal intermediate credit banks Debentures: Notes: Feb. 1,1965 4.15 Nov. 1, 1965 327 May 17, 1965 4.25 Nov. 24,1965 297 Mar. 1, 1965 4.20 Dec. 1, 1965 321 Feb. 15, 1965 4.20 Jan. 17,1966 220 Apr. 1, 1965 414 Jan. 3, 1966 295 Aug. 16, 196D 4.30 Jan. 25,1966 302 May 3,1965 4.30 Feb. 1, 1966 289 Apr. 15, 1965 4.30 Feb. 15,1966 524 June 1,1965 4.30 Mar. 1, 1966 272 June 15, 1965 4.35 Mar. 25,1966 273 July 1,1965 4.35 Apr. 4, 1966 272 May 17, 1965 4.30 Apr. 25,1966 525 Aug. 2, 1965 4.30 May 2, 1966 294 July 17, 1965 4.35 May 25,1966 496 Sept. 1,1965 4.35 June 1, 1966 228 Sept. 15, 1965 4.40 June 24,1966 336 Oct. 4,1965 4.35 July 5, 1966 204 Aug. 16, 1965 4.35 July 25,1966 500 Federal land banks Bonds: Bonds: July 15, 1964 4'/8 Mar. 15, 1966 260 June 20, 1961 4 Dec. 20,1965 140 Dec. 9, 1963 4% Aug. 15. 1966 200 Apr. 3, 1961 3H Feb. 21,1966 150 June 15, 1964 4V4 Nov. 15, 1966 275 June 21, 1965 4.35 May 2,1966 117 J O M u c n a t e r . . 1 1 1 . 5 5 5 , , , 1 1 1 9 9 9 6 6 6 5 5 5 4 4 4 1 * % /2 4 J S M a e a n p r t . . . 2 1 5 1 5 , , , 1 1 1 9 9 9 6 6 6 7 8 7 2 3 1 7 5 8 5 0 5 S O M e c a p t y . t . 2 2 0 0 1 , , , 1 1 1 9 9 9 5 6 6 8 5 1 3 4 4 V V .5 4 4 5 J S M u e a l p y t y . 2 2 2 0 , 0 , , 1 1 1 9 9 9 6 6 6 6 6 6 2 1 1 1 0 9 9 8 3 Federal National Mortgage Association— A Fe u b g . . 2 1 3 5 , , 1 1 9 9 6 5 5 7 4 4 3 % /8 D Fe e b c . . 1 2 5 0 , . 1 1 9 96 6 6 7-72 23 7 9 2 secondary market operations Apr. 20, 1965 4y4 Feb. 20,1967 126 May 1, 1962 4 May 22,1967 180 Discount notes 357 Oct. 1, 1957 41/2 Oct. I,1967-70 I 75 Oct. 22, 1963 41/5 Oct. 23,1967 174 Debentures: Apr. 1, 1959 414 Mar. 20.1968 111 Sept. 10, 1962 334 Mar.10, 1966 108 May 1.1963 4 June 20,1968 186 Dec. 12, 1960 4Vs Dec. 12, 1966 93 Aug. 20, 1964 414 Aug. 20,1968 160 Oct. 11, 1965 41/2 Oct. 11, 1967 150 Feb. 2, 1959 43/8 Mar. 20,1969 100 Mar. 10, 1958 3% Mar.11, 1968 87 Feb. 23, 1965 414 July 15,1969 130 Bank D J A A S A S F F s u e e e e e p u p n b f b p p c o g r r . e . . t t . . r . . . 2 1 1 1 1 1 1 1 1 c 3 0 0 2 2 o 3 1 1 1 , , , , , o , , , , p 1 1 1 1 1 1 1 1 1 e 9 9 9 9 9 9 9 9 9 r 6 6 6 6 5 6 6 6 6 a 1 1 0 1 9 2 0 0 0 ti ves 4 4 4 4 4 4 4 5 4 1 1 3 V 3 1 * y 5 / / / / / / 4 2 2 8 8 8 s 8 8 J J A A A S S F F e u e u p e p u e p p n n b r r b g t t e e . . . . . . . 1 1 1 1 1 1 1 1 1 2 0 0 0 0 2 0 0 0 , , , , , , , , , 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 7 7 7 6 7 7 7 7 7 0 1 1 9 3 2 7 0 2 1 1 1 1 1 9 9 6 8 1 9 4 4 0 8 6 4 8 9 8 6 2 0 J J O F A F S F F M u a e e e e e c p n l b a b b b p y t r . . y . . . . t . 2 2 2 2 1 1 1 0 0 0 5 0 4 1 5 1 4 , , , , . , , , , , 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 6 6 6 6 6 5 6 5 5 5 0 2 5 3 0 7 4 8 6 6 4 5 5 4 3 4 4 3 4 3 V 1 V 1 J y y % y y / / 4 8 8 2 8 2 8 8 2 J J A S M F O F F A u u e c e p e e p a l l p t b b r b r y t y y . . . . . . . 2 2 2 2 2 2 1 0 1 0 1 0 0 0 1 1 5 , , 5 , , , , , , , , 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 7 6 6 7 7 7 7 7 7 7 1 9 9 5 0 0 2 0 4 3-78 2 2 1 1 1 0 0 8 6 6 8 8 0 5 4 9 0 3 0 0 2 5 9 5 8 Tennessee Valley Authority Debentures: Short-term notes 95 May 3, 1965 4*/4 Nov. 1,1965 108 Bonds: June 1, 1965 414 Dec. 1,1965 201 Nov. 15. 1960 4.40 Nov. 15, 1985 50 Augg . 2,, 1965 4.3301 FFeebb.. 1,,1996666 225 July 1, 1961 45/8 July 1, 1986 50 Oct. 4,1965 4.35 Apr. 4,1966 212 Feb. 1,1962 41/2 Feb. 1, 1987 45 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also NOTE to table at top of following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1762 CREDIT AGENCIES; SECURITY ISSUES DECEMBER 1965 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Asset F s ederal home loa L n i a b b a il n it k i s es and capital (s F M e e c d o o o e r p n t r d e g a r a l a a r g N t y e i o a m n A ti a s o s ) r s n k n a e . l t coo B p a f e o n ra r k t s ives i c n re t F e d r e i m t d e e b r d a a i n l a k te s F b e l a a d n n e k d ra s l End of period v m a A b n t e e o d m c r - s 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 e a u ( o b n L r t e e d e ) s n s - 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 1,315 454 222 932 886 919 1,599 1958 1,298 999 75 714 819 769 1,323 1,100 510 252 1,157 1,116 2,089 1,743 1959 2,134 1,093 103 1,774 589 866 1,967 1,640 622 364 1,391 1,356 2,360 1,986 1960 1,981 1,233 90 1,266 938 989 2,788 2,523 649 407 1,501 1,454 2,564 2,210 1961 2,622 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—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 1,523 141 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 1,739 1,007 723 2,380 2,206 3,889 3,298 Apr... 5,219 1,386 95 4,184 1,026 1,254 1,990 1,795 978 696 2,480 2,278 3,950 3,415 May.. 5,227 1,687 73 4,484 1,024 1,257 2,004 1,898 940 678 2,577 2,367 4,011 3,415 June.. 5,586 1,691 110 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 Aug... 5,770 1,578 79 5,057 903 1,268 2,062 1,804 944 710 2,786 2,627 4,135 3,612 Sept... 5,802 1,567 85 5,046 944 1,270 2.108 1,756 940 708 2,725 2,603 4,171 3,612 Oct... 5,826 1,574 75 5,018 965 1,272 2,169 1,845 1,009 744 2,617 2,501 4,204 3,671 Note.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the U.S. Mortgage Assn., and Farm Credit Admin. Among the omitted balance Govt., for a listing of these securities, see preceding page. Loans are sheet items are capital accounts of all agencies, except for stock of home gross of valuation reserves and represent cost for FNMA and unpaid loan banks. Bonds, debentures, and notes are valued at par. They in- principal for other agencies. clude only publicly offered securities (excluding, for the home loan banks, NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds amount Period deliv- Total G g o a e b t a n i l l o e i- n r- s R n e u v e e- PHAi G l U o o a .S v n t . s . State S di p s a s t e n t a r c d t i i . c a t l Other 2 ered 3 Total c E a d ti u o - n R br a o i n d a d g d e s s i U tie ti s l - 4 H in o g u s s- V a a e n i t d e s' r- O p p o t u h s r e e - s r auth. 1959 7,697 4,782 2,407 332 176 1,686 2,121 3,890 7,423 7,589 2,318 844 1,985 401 355 1,685 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 23 71 339 529 696 903 362 43 183 134 181 July.... 943 563 369 120 11 116 341 487 948 906 401 25 169 * 311 Aug 799 267 520 12 13 534 252 829 780 161 73 440 105 Sept 920 510 260 20 101 374 445 925 892 207 50 248 133 254 Oct 852 662 178 130 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 26 218 397 463 722 948 424 30 93 107 30 264 104 1965—Jan 848 606 '235 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 A M p a r y.... ' r 9 99 8 4 7 6 5 8 0 7 6 ' ' 3 2 4 9 7 1 126 1 8 6 2 1 9 8 5 0 '2 3 7 7 6 0 '4 4 3 2 6 2 '1, ' 0 9 3 3 5 8 ' ' 9 82 2 5 4 2 3 8 9 8 2 1 7 2 0 0 1 '8 2 4 5 13 1 3 7 '2 3 0 1 4 7 June 1,060 '570 '476 14 192 '417 '451 '1,119 '967 '451 '62 '198 13 '243 July.... 1,038 776 245 17 400 258 379 993 984 215 26 98 2 50 592 Aug.... 741 381 223 132 4 38 271 432 999 656 191 51 115 139 160 1 Only bonds sold pursuant to 1949 Housing Act; secured by contract 5 Includes urban redevelopment loans. requiring the Public Housing Administration to make annual contributions to the local authority. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt. loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt. loans. (and payment to issuer), which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues 4 Water, sewer, and other utilities. based on date of sale unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 SECURITY ISSUES 1763 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues : Prop a o l s l e c d o r u p s o e r o a f t e n i e s t s u p e r s o c 6 eed 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 - . l U S o a c t n . a a S d t l e . 4 Other 5 Total Total o B P f l f o i u e c n r l b y 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 orn- Total Total m N on e e w y" O p p o t u h s r e e - s r m s ri e o t e c i f e n u s t - 1957. 30,571 9,601 572 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 1,302 868 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 1964. 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—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 1965—Jan... 2,333 433 811 232 858 111 161 565 47 84 850 795 700 95 54 Feb... 3,997 :,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 1,773 1,324 694 630 65 384 1,746 1,691 1,560 132 55 June,, 4,297 362 775 1,000 122 2,038 1,729 748 980 155 154 2,018 1,946 1,665 281 72 July.. '2,936 388 1,055 '49 1,443 1,322 542 r780 '44 78 '1,427 '1,290 '1,168 '122 '137 Aug.. '2,354 371 239 718 '95 '930 '837 369 '468 '15 '78 '919 '850 '760 '91 '69 Sept.. 3,029 342 150 984 14 1,538 1,370 664 706 92 76 1,523 1,392 1,249 143 130 Proposed uses of net proceeds, major groups of corporate issuers I Manufacturing Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e al Period Retire- Retire- Retire- Retire- Retire- Retire- New ment of New ment of New ment of New ment of New ment of New ment of capitals secu- capitals secu- capitals secu- capital s secu- capital8 secu- capital s 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—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 4 Feb., 192 15 35 2 47 215 13 44 213 3 Mar. 494 56 104 4 108 17 229 57 26 4 236 9 Apr., 540 16 120 6 58 1 176 34 15 3 244 2 May, 698 22 75 4 163 248 23 143 1 364 6 June 441 41 151 15 44 184 8 98 * 1,028 7 July. '399 '50 '265 '4 '124 '202 '24 102 51 '197 '4 Aug. '307 '54 '51 '2 '42 '297 5 25 4 '129 '4 Sept. 414 16 117 65 287 74 196 5 313 27 1 Gross proceeds are derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. 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

1764 SECURITY RATES DECEMBER 1965 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire- Net New Retire- Net issues ments change issues ments change In co v s e . s 1 t. Other In co v s e . s 1 t. Other I c n o 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—II. 5,139 1,795 3,344 2,987 940 2,046 917 1,235 469 385 448 850 Ill 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—I .. 4,162 2,058 2,103 2,272 967 1,305 1,275 615 485 606 790 8 II 6,339 2,475 3,864 4,007 1,227 2,780 1,243 1,089 511 111 732 352 Type of issuer Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial * & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1959 316 442 217 162 332 2 1,738 1,028 475 445 994 2,342 1960 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—II 291 -65 84 -21 59 31 606 156 229 681 775 516 III 232 28 93 -34 38 -47 290 149 42 92 569 613 IV 689 -226 265 -444 88 -7 356 101 -47 115 693 986 1965 I 574 -256 — 5 j 39 9 281 97 64 100 351 850 II . 814 138 234 -4 57 -28 293 116 201 139 1,181 723 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. 1763. actions only. As contrasted with data shown on p. 1763, new issues exclude OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales i Re ti d o 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 s a i s ti h on Other 1953 672 239 433 4,146 1964—Oct.... 306 142 164 29,087 ],312 27,775 1954 863 400 4<?3 6,109 309 5,800 Nov... 317 134 184 29,062 1,300 27,762 Dec... 336 136 200 29,116 1,329 27,787 1955 1,207 443 765 7,838 438 7,400 1956 1,347 433 914 9,046 492 8,554 1965—Jan.... 407 152 254 30,349 1,545 28,804 1957 1,391 406 984 8,714 523 8,191 Feb... 313 159 154 30,749 1,605 29,144 1958 1,620 511 1,109 13,242 634 12,608 Mar... 356 168 188 30,464 1,597 28,867 1959 2,280 786 1,494 15,818 860 14,958 Apr... 351 155 196 31,521 ,523 29,998 May.. 301 158 143 31,431 1,551 29,880 1960........ 2,097 842 1,255 17,026 973 16,053 June.. 417 186 231 30,036 1,447 28,589 1961 2,951 1,160 1,791 22,789 980 21,809 July... 332 147 185 30,749 1,616 29,133 1962 2.699 1,123 1,576 21,271 1,315 19,956 Aug... 272 142 129 31,762 1,815 29,947 1963 2,460 1,504 952 25,214 1,341 23,873 Sept... 381 183 199 32,824 1,787 31,037 1964 3,404 1,875 1,528 29,116 1,329 27,787 Oct.... 394 173 220 33,921 1,758 32,163 1 Includes contractural and regular single purchase sales, voluntary short-term debt securities, less current liabilities. and contractural 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 initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 BUSINESS FINANCE 1765 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1964 1965 Industry 1960 1961 1962 1963 1964 III IV III Manufacturing Total (177 corps): Sales 123,911123.669 136,545147,380 157,633 38,326 40,784 37,697 40,827 42,742 r45,344 41,978 Profits before taxes 13,543 15,330 17,337 18,821 4,781 5,333 4,077 4,631 5,517 '6,021 4,718 Profits after taxes 7,161 8,215 9,138 10,520 2,603 2,898 2,335 2,684 3,081 '3,399 2,750 Dividends 4,485 5,048 5,444 5,930 1,285 1,448 1,324 1,873 1,411 1,629 1,434 Nondurable goods industries (78 corps.):1 Sales 47,372 362 52,245 55,372 59,256 14,220 14,823 14,915 15,298 15,45316,131 16,355 Profits before taxes 5,579 602 5,896 6,333 6,896 1,643 1,752 1,740 1,761 1,804 1,985 1,984 Profits after taxes 3,215 225 3,403 3,646 4,137 992 1,028 1,037 1,080 1,112 1,213 1,215 Dividends 1,948 031 2,150 2,265 2,404 561 569 584 690 606 607 616 Durable goods industries (99 corps.):2 Sales 76,540 307 84,300 92,008 98,377 24,106 25,961 22,782 25,528 27,289'29,214 25,623 Profits before taxes 7,964 666 9,434 11,004 11,925 3,138 3,581 2,336 2,870 3,713 '4,036 2,733 Profits after taxes 3,946 942 4,812 5,492 6,383 1,611 1,871 1,299 1,603 1,970 r2,186 1,535 Dividends 2,536 699 2,898 3,179 3,526 724 879 740 1,183 804 1,022 818 Selected industries: Foods and kindred products (25 corps.): Sales 12,202 12,951 13,457 14,301 15,209 3,598 3,721 3,863 4,027 3,868 4,082 4,205 Profits before taxes 1,342 1,440 1,460 1,546 1,589 345 401 420 424 388 '433 455 Profits after taxes 639 682 698 747 807 173 202 214 219 201 225 235 Dividends 372 397 425 448 479 117 119 119 124 124 125 126 Chemical and allied products (20 corps): Sales 12,205 12,606 13,759 14,623 16,077 3,791 4,114 4,067 4,104 4,238 4,492 4,564 Profits before taxes 2,005 1,979 2,162 2,286 2,596 636 682 654 623 679 758 734 Profits after taxes 1,058 1,034 1,126 1,182 1,404 347 366 349 342 386 424 411 Dividends 786 833 868 904 924 207 209 212 296 214 213 215 Petroleum refining (16 corps): Sales 13,815 14,483 15,106 16,043 16,583 4,132 4,111 4,123 4,217 4,404 r4,449 4,475 Profits before taxes 1,267 1,237 1,319 1,487 1,558 400 361 373 424 440 r473 469 Profits after taxes 1,026 1,025 1,099 1,204 1,309 336 298 318 358 363 386 389 Dividends 521 528 566 608 670 158 159 169 184 182 183 187 Primary metals and products (34 corps).: Sales 20,828 20,234 21,260 22,116 24,114 5,540 6,046 6,042 6,486 6,614 7,091 6,666 Profits before taxes 2,214 1,999 1,838 2,178 2,577 560 674 605 738 768 '865 697 Profits after taxes 1,169 1,067 1,013 1,183 1,485 315 384 349 437 436 '493 403 Dividends 838 843 820 734 763 186 187 187 204 195 200 202 Machinery (24 corps.): Sales 16,681 17,446 19,057 21,144 22,653 5,401 5,673 5,584 5,995 5,772 6,305 6,270 Profits before taxes 1,509 1,701 1,924 2,394 2,733 673 702 701 657 747 817 787 Profits after taxes 768 859 966 1,177 1,399 338 357 373 331 385 426 425 Dividends 494 508 531 577 673 157 170 171 175 192 187 189 Automobiles and equipment (14 corps.): Sales 26,275 23,314 29,156 32,927 35,323 9,275 10,028 7,137 8,883 10.898 11,450 8,281 Profits before taxes 3,197 2,786 4,337 5,004 4,997 1,573 1,775 589 1,060 1,828 1,883 756 Profits after taxes 1,534 1,404 2,143 2,387 2,625 782 900 338 604 942 1,004 430 Dividends 837 973 1,151 1,447 1,630 276 419 276 659 305 520 307 Public utility Railroad: Operating revenue 9,514 9,189 9,440 9,560 9,857 2,362 2,481 2,486 2,526 2,385 2,582 Profits before taxes 648 625 729 816 836 188 245 211 192 145 259 Profits after taxes 445 382 572 651 698 144 196 175 182 121 213 Dividends 385 359 367 356 451 110 101 109 132 c108 118 Electric power: Operating revenue 11,906 12,478 13,489 14,294 14,968 3,961 3,572 3,686 3,749 4,227 3,822 3,895 Profits before taxes 3,163 3,349 3.583 3,735 3,947 1,106 893 998 949 1,154 949 1,036 Profits after taxes 1,793 1,883 2,062 2,187 2,385 660 542 583 600 712 597 626 Dividends 1,307 1,374 1,462 1,567 1,672 424 412 426 410 467 438 437 Telephone: Operating revenue 8,111 8,615 9,196 9,796 10,550 2,543 2,619 2,654 2,734 2,732 2,790 2,854 Profits before taxes 2,326 2,478 2,639 2,815 3,069 726 796 773 774 783 766 830 Profits after taxes 1,155 1,233 1,327 1,417 1,590 377 408 402 403 420 419 447 Dividends 806 867 935 988 1,065 261 262 268 274 279 284 294 1 Includes 17 corps, in groups not shown separately. Telephone: Data obtained from Federal Communications Commis- 2 Includes 27 corps, 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 snd General Depts. of American Telephone and Telegraph Co.) published co. reports. and for 2 affiliated telephone cos. Dividends are for the 20 operating Railroads: Interstate Commerce Commission data for Class I line- subsidiaries and the 2 affiliates. haul railroads. All series: Profits before taxes are income after all charges and before Electric power: Federal Power Commission data for Class A and B Federal income taxes and dividends. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. profits before taxes are partly estimated by the Federal Reserve to include affiliated nonelectric operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1766 BUSINESS FINANCE DECEMBER 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 l t l i s p o o u i w n t m a - l p- Quarter P b t e r a o f x o f e i r t s e s c ta o I x n m e - s e P t a r a f o x t f e e i r t s s d C d e i a n v s d i h - s t U r p i r b n o u d f t i i t e s s - d co c a n a t l i l s p o o u i w n t m a - l pances ! ances ! 1957 47.2 21.2 26.0 11.7 14.2 20.8 1964—1 64.0 27.3 36.7 16.7 20.0 33.2 1958 41.4 19.0 22.3 11.6 10.8 22.0 II.... 64.5 27.5 37.0 17.1 19.9 33.6 1959 52.1 23.7 28.5 12.6 15.9 23.5 III... 65.3 27.8 37.5 17.4 20.1 34.3 1960 49.7 23.0 26.7 13.4 13.2 24.9 IV... 65.9 28.1 37.8 17.7 20.0 34.8 1961 50.3 23.1 27.2 13.8 13.5 26.2 1965—1.... 73.1 29.1 44.0 17.8 26.2 35.4 1962 55.4 24.2 31.2 15.2 16.0 30.1 II.... 73.7 29.4 r44.4 18.2 26.1 35.8 1963 58.6 26.0 32.6 15.8 16.8 32.0 III... 74.4 29.6 44.8 18.6 26.2 36.3 1964 64.8 27.6 37.2 17.2 19.9 34.0 1 Includes depreciation, capital outlays dharged 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.1 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—HI 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—I 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 in 169.1 393.5 43.6 16.0 3.6 188.3 123.4 18.6 224.4 3.1 150.2 17.0 54.1 1 Receivables from, and payables to, the U.S. Govt. exclude amounts NOTE.—Securities and Exchange Commission estimates; excludes offset against each other on corps.' books. banks, savings and loan assns., and insurance cos. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n b - le Mining Railroad Other u P t u il b it l i i e c s n C i o ca m ti m on u s - Other i 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 1965 ir 51 83 11 34 11 18 1 30 1 68 2 83 6.84 16 66 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 .58 1.10 2.61 43.50 Ill 11.54 2.37 2.30 .30 .37 .59 .71 1.06 2.84 45.65 IV 12.84 2.83 2.76 .33 .35 .64 ,76 1.17 3.01 47.75 1965—1 10.79 2.25 2.28 .29 .39 .58 .32 L.08 2.59 49.00 II 12.81 2.76 2.70 .33 .44 .77 .71 1.24 2.85 50.35 Ill r 13.41 2.91 2.82 .32 .44 .72 .88 1.22 3.10 52.75 IV 2 r 14.82 3.41 3.37 .35 .40 .76 .94 4.59 54.85 1966—12 12.48 2.70 2.70 .32 .40 .89 1.47 4. )1 56.70 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

DECEMBER 1965 REAL ESTATE CREDIT 1767 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other Multifamily and Mortgage E pe n r d io o d f h A o er 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 - i a U c g i . e e h S n s . o - lde v o r I i s a t n d h 2 n u d e d a i r - l s s h A e o r l l s d l - tu F i t i n c i n o i s a a t n i l n s - . ! O h e o t r h s ld e 3 - r h A o er l l s d l - T 1 o - t a to l 4 t - F u f i a t i n i m n o s a t n i i l n - s y . 1 ho O h u o e t s h r l e d s e s - r c T o o m ta m l er t c u F i i a t n i i n l o s a t n p i n - s r . o l pe O h r o e t t i h r l e d s e s - r 4 w u F V n r H i d A t A t e e - r t - n y - pe 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 69.4 167.0 1963' 281.2 217.1 11.2 52.9 16.8 6.2 10.7 264.4 182.2 156.0 26.2 82.2 54.9 27.3 73.4 190.9 1964^ 311.6 241.0 11.4 59.2 18.9 7.0 11.9 292.7 197.6 170.4 27.2 95.1 63.6 31.4 77.2 215.6 1963—III'. 273.4 210.8 11.1 51.5 16.6 6.1 10.5 256.8 178.2 152.2 26.0 78.6 52.5 26.1 72.1 184.7 IV.. 281.2 217.1 11.2 52.9 16.8 6.2 10.7 264.4 182.2 156.0 26.2 82.2 54.9 27.3 73.4 190.9 1964—1.... 287.4 222.0 11.3 54.1 17.3 6.4 10.9 270.0 185.4 159.0 26.4 84.6 56.5 28.1 74.2 195.8 II... 295.5 228.5 11.3 55.7 18.1 6.7 11.4 277.5 189.8 163.2 26.6 87.7 58.6 29.1 74.9 202.6 III*. 303.6 234.8 11.3 57.4 18.5 6.9 11.7 285.1 193.9 167.0 26.9 91.2 61.0 30.2 76.2 208.9 IV*\. 311.6 241.0 11.4 59.2 18.9 7.0 11.9 292.7 197.6 170.4 27.2 95.1 63.6 31.4 77.2 215.6 1965—IP... 317.7 245.8 11.6 60.4 19.5 7.2 12.3 298.3 200.5 173.1 27.4 97.7 65.5 32.3 78.0 220.2 IIP.. 326.0 252.2 11.7 62.1 20.2 7.4 12.8 305.8 204.8 177.1 27.7 101.0 67.7 33.3 78.7 226.8 IIIP. 334.0 258.3 11.9 63.8 20.7 7.6 13.1 313.3 209.0 180.8 28.2 104.3 69.9 34.4 1 Commercial banks (including nondeposit trust cos. but not trust savings and loan assns. depts.), mutual savings banks, life insurance cos., and savings and loan 5 Data by type of mortgage on nonfarm 1- to 4-family properties alone assns. are shown on second page following. 2 U.S. agencies are FNMA, FHA, VA, PHA, Farmers Home Admin., and Federal land banks, and in earlier years, RFC, HOLC, and FFMC. NOTE.—Based on data from Federal Deposit Insurance Corp., Federal Other U.S. agencies (amounts small or current separate data not readily Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculavailable) included with "individuals and others." ture and Commerce, Federal National Mortgage Assn., Federal Housing 3 Derived figures; includes debt held by Federal land banks and farm Admin., Public Housing Admin., Veterans Admin., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 Derived figures; includes smali amounts of farm loans held by Figures for first 3 quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings - Residential Residential End of period Other Other Total Total FH in A - - g V u A ar - - C ve o n n - - f n a o r n m - Farm Total Total FH in A - - g V u A ar - - C ve o n n - - n fa o r n m - 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 3,972 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—III 38,360 25,855 7,007 2,870 15,978 10,203 2,302 35,191 31,775 10,328 10,335 11,112 3,365 51 IV . 39,414 26,476 7,105 2,862 16,509 10,611 2,327 36,224 32,718 10,684 10,490 11,544 3,454 52 1964 I . . 40,200 26,894 7,110 2,824 16,960 10,894 2,412 37,155 33,506 11,004 10,639 11,863 3,597 52 II 41,648 27,750 7,158 2,793 17,799 11,340 2,558 38,199 34,407 11,376 10,826 12,205 3,739 53 Ill 42,948 28,432 7,250 2,786 18,396 11,896 2,620 39,381 35,449 11,826 10,977 12,646 3,879 53 IV ... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965—I ... 44,799 29,388 7,329 2,722 19,337 12,723 2,688 41,521 37,357 12,664 11,228 13,465 4,112 52 I H I ip 4 4 6 8 , , 5 1 4 4 8 8 30,383 7?469 2,712 20,202 13,371 2,794 4 4 2 3 , , 4 6 6 0 7 8 38,214 13,036 11,322 13,856 4,202 51 * Includes loans held by nondeposit trust cos., but not bank trust depts. and possessions. First and third quarters, estimates based on FDIC data 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. for insured banks for 1962 and part of 1963 and on special F.R. interpolations thereafter. For earlier years, the basis for first and third quarter NOTE.—Second and fourth quarters, Federal Deposit Insurance Corp. estimates included F.R. commercial bank call data and data from the series for all commercial and mutual savings banks in the United States National Assn. of Mutual Savings Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1768 REAL ESTATE CREDIT DECEMBER 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 4,466 766 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 1960 6,086 5,622 1,401 291 3,930 464 41,771 38,789 9,032 6,901 22,856 2,982 1961 6 785 6 233 1 388 220 4,625 552 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 10 432 9,385 1,811 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1964 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 July 834 759 121 40 598 75 57,663 53,041 11,866 6,361 34,814 4,622 Aug 867 798 144 41 613 69 58,017 53,359 11,914 6,340 35,105 4,658 Sept . . 932 868 142 45 681 64 58,411 53,723 11,950 6,326 35,447 4,688 Oct 932 868 161 44 663 64 58,824 54,103 12,010 6,316 35,777 4,721 i 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-efid 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 New Home FHA- VA- Con- Total i con- pur- Total 2 in- guar- ven- Period Total i Sav- Insur- Com- Mutual struc- chase sured anteed tional N.S.A. ings & ance mer- savtion loan com- cial ings assns. panies banks banks 1945 1,913 181 1,358 5,376 1945 5,650 2,017 ISO 1,097 217 1958 12,182 4,050 5,172 45,627 2,206 7,077 36,344 1959....... 15,151 5,201 6,613 53,141 2,995 7,186 42,960 1958 27,388 10,516 1,460 5,204 1,640 1960 14,304 4,678 6,132 60,070 3,524 7,222 49,324 1959 32,235 13,094 1,523 5,832 1,780 I960 29,341 12,158 1,318 4,520 1,557 1961 17,364 5,081 7,207 68,834 4,167 7,152 57,515 1962 20,754 5,979 8,524 78,770 4,476 7,010 67,284 1961 . 31,157 13,662 1,160 4,997 1,741 1963 24,735 7,039 9,920 90,944 4,696 6,960 79,288 1962 34,187 15,144 1,212 5 851 1 957 1964 24,505 6,515 10,397 101,314 4,896 6,686 89,732 1963 36,925 16,716 1,339 6,354 2,061 1964 36,921 15,759 .408 6,656 2,182 1964 1964 Oct 2,051 531 893 99,832 4,811 6,706 88,315 Nov 1,791 462 770 100,519 4,830 6,690 88,999 Feb 2,575 1.128 90 465 129 Dec 1,969 522 784 101,314 4,896 6,686 89,732 Mar 2,935 1,290 102 540 140 3,089 1,350 109 567 154 1965 3,090 1,349 116 560 176 June 3,388 1,485 126 607 197 Jan 1,527 370 638 101,844 4,906 6,683 90,255 July 3,519 [,508 137 618 233 Feb 1,541 379 638 102,351 4,921 6,654 90,776 Aug 3,277 1,398 130 581 213 Mar 2,056 544 824 103,151 4.939 6,629 91,583 Sept 3,281 1,386 131 597 215 Apr 2,068 558 850 103,975 4,952 6,590 92,433 Oct 3,225 1,332 129 590 201 2,022 526 861 104,816 4,975 6,568 93,273 Nov 2,847 1.174 114 514 192 2,399 614 1,099 105.827 5,001 6,560 94,266 Dec 2,936 1,189 120 533 185 July 2,186 520 1,063 106,647 5,022 6,547 95,078 Aug 2,187 511 1,099 107,490 5,050 6,507 95,933 1965 Sept 2,079 490 1,015 108.234 5,082 6,480 96,672 Oct.*9 1,985 490 920 108,917 5,097 6,389 97,431 Jan 2,422 975 88 453 136 Feb 2,396 984 89 454 127 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. 1 Includes amounts for other lenders, not shown separately. 2 Beginning with 1958 includes shares pledged against mortgage loans. NOTE.—Federal Home Loan Bank Board data. NOTE.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 REAL ESTATE CREDIT 1769 GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES (In millions of dollars) (In billions of dollars) FHA-insured VA-guaranteed Governmentunderwritten Period Total h N o M m ew e o s rtga h i g o s E e t m i x s n - e g s e P c r t o s j - i m p P r e i e r o m r n o t v y t p - s e - - i Total 3 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 p n e d ri o o d f Total Total s F u i H n re - A d - a g n V t u e A a e r d - - 1 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 1960 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 29.9 104.3 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*> 197.6 69.2 38.3 30.9 128.3 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—Oct.. 790 159 491 81 58 271 93 178 II 173.7 63.8 33.5 30.3 109.9 Nov. 688 135 422 81 50 258 91 167 Ill 178.2 64.6 34.3 30.4 113.6 Dec.. 683 135 428 67 54 242 88 153 IV 182.2 65.9 35.0 30.9 116.3 1965—Jan.. 630 138 405 34 54 225 84 141 1964 I 185.4 66.6 35.7 31.0 118.8 Feb.. 517 115 328 40 34 200 72 128 II 189.8 67.3 36.3 30.9 122.5 Mar. 640 137 396 62 45 216 77 139 IIIP.... 193.9 68.4 37.4 31.1 125.4 Apr.. 634 128 413 51 42 179 64 115 IV*.... 197.6 69.2 38.3 30.9 128.3 May. 625 116 399 57 53 182 57 125 June. 716 127 484 40 66 217 65 152 1965—IP 200.5 70.1 39.0 31.0 130.5 July. 776 140 506 71 58 217 65 152 IIP 204.8 70.7 39.7 31.0 134.1 Aug. 875 163 594 51 67 245 78 167 IIIP.... 209.0 Sept. 860 159 597 42 62 254 78 177 Oct.. 811 161 554 45 52 245 81 163 i Includes outstanding amount of VA vendee accounts held by private investors under repurchase 1 Monthly figures do not reflect mortgage amendments included in annual totals. agreement. 2 Not ordinarly secured by mortgages. 3 Includes a small amount of alteration and repair loans, not shown separately; only such NOTE.—For total debt outstanding, figures arc loans in amounts of more than $1,000 need be secured. FHLBB and F.R. estimates. For conventional, figures are derived. NOTE.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans Based on data from Federal Home Loan Bank represent gross amount of insurance written; yA-guaranteed loans, gross amounts of loans Board, Federal Housing Admin., and Veterans Admin. 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 Advances outstanding Mortgage holdings transactions Com- (end of period) (during mit- Period Ad- Repay- Members End of period) ments vances ments deposits period FHA- VA- un- Total Short- Long- Total in- guar- dis- term 1 term 2 sured anteed Pur- Sales bursed chases 1945. 278 213 195 176 19 46 1956 3,047 978 2,069 609 5 360 1956 745 934 1,228 798 430 683 1957 3,974 1,237 2,737 1,096 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 1 1 9 9 6 5 0 9 6 5 , , 1 5 5 3 9 1 2 3 , , 5 3 4 5 6 6 42 2 , , 9 8 8 0 5 3 1 1, , 2 9 4 0 8 7 35 5 7 5 57 6 6 8 1 19 9 5 6 9 0 . . 2 1 , , 0 9 6 4 7 3 2 1 , , 0 23 97 1 2 1 , , 1 9 3 8 4 1 1 1 , , 0 1 8 9 9 2 9 8 4 9 2 2 5 9 8 3 9 8 1961 6,093 3,490 2,603 815 541 631 1961. 2,882 2,220 2,662 1,447 1,216 1,180 1 19 9 6 6 3 2 4 5 , , 6 9 5 2 0 3 3 3 , , 5 0 7 1 1 7 t2 1, , 6 3 3 5 4 3 7 2 4 9 0 0 1,1 4 1 9 4 8 3 1 5 9 5 1 1 1 9 9 6 63 2 . 4 5, , 6 1 0 1 1 1 4 3 , , 2 2 9 9 6 4 4 3 , , 7 4 8 7 4 9 2 2 , , 0 8 0 6 5 3 1 1 , , 9 4 2 7 1 4 1 , ,1 2 5 1 1 3 1964 4,412 2,996 1,416 424 251 313 1964. 5,565 5,025 5,325 2,846 2,479 ,199 1964—Oct.. 4,440 2,997 1,443 36 14 260 1964- 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 TW 791 250 5,325 2,846 2,479 ,199 1965—Jan.. 4,417 3,009 1,408 40 4 316 1965 Tan 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 43 321 735 264 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 June. 4,303 2,992 1,311 44 27 360 June 602 243 5,586 2,867 2,719 1,172 July. 4,309 3,012 1,297 49 9 376 July .. 613 406 5,793 3,176 2,617 912 Aug. 4,332 3,039 1,293 54 418 AuE 355 378 5,770 2,951 2,819 902 Sept. 4,372 3,083 1,289 78 443 Sept 310 278 5,802 2,908 2,894 942 Oct.. 4,436 3,145 1,290 96 559 Oct 337 312 5,826 2,924 2,902 957 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 tha 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

1770 CONSUMER CREDIT DECEMBER 1965 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A p o a u p b t e o il r - e co O g p n o a s t o p h u d e e m r r s er e a r n l R n o d i e a z p n m a a s t o i i r o i d n - Pe lo rs a o n n s al Total p S a l i y o n m a g n l e s e n - t a C cc h o a u rg n e ts S c e r r e v d i i c t e 1939 7,222 4,503 1,497 1,620 298 1,088 2,719 787. 1,414 518 1941 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1957 44,970 33,867 15,340 8 844 2 101 7 582 11,103 3 364 5 146 2,593 1958 45,129 33,642 14,152 9,028 2,346 8,116 11,487 3,627 5,060 2,800 1959 51,542 39,245 16,420 10,630 2,809 9,386 12,297 4,129 5,104 3,064 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 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 June 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 Aug 81,454 64,393 27,493 15,738 3,597 17,565 17,061 6,825 5,498 4,738 Sept 81,924 64,846 27,555 15 954 3,613 17,724 17,078 6,856 5,496 4,726 Oct 82,569 65,368 27,766 16,214 3,625 17,763 17,201 6,871 5,645 4,685 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 back figures and description of the NOTE.—Consumer credit estimates coyer loans to individuals for house- data, see "Consumer Credit," Section 16 (New) of Supplement to Bankhold, family, and other personal expenditures, except real estate mortgage ing and Monetary Statistics, 1965. INSTALMENT CREDIT (In millions of dollars) Financial institution Retail outlets End of period Total Total m b C e a o r n c m k ia s - l fi S n c a a o l n s e . c s e u C n r i e o d n it s fi s n C u a o m n n c e e - r 1 Other 1 Total D st m o ep r e e a n s r t t 2 - F s t t u u o r r r n e e i s - A s a t p o n p r c e l e i s - d m e A a o u l b e to r il s - e 3 Other 1939 4,503 3,065 1,079 1,197 132 657 1,438 354 439 183 123 339 1941 6,085 4,480 1,726 1,797 198 759 1,605 320 496 206 188 395 1945 2,462 1,776 745 300 102 629 686 131 240 17 28 270 1957 33,867 29,200 12,843 9,609 2,429 3,124 1,195 4,668 1,393 1,210 361 478 1,226 1958 33,642 28,659 12,780 8,844 2,668 3,085 1,282 4,983 1,882 1,128 292 506 I 175 1959 39,245 33,570 15,227 10,319 3,280 3,337 1,407 5,676 2,292 L,225 310 481 1,368 I960 42,832 37,218 16,672 11,472 3,923 3 670 1,481 5,615 2,414 1,107 333 359 L 402 1961 43,527 37,935 17,008 11,273 4,330 3,799 1,525 5,595 2,421 L,058 293 342 1,481 1962 48,034 41,782 19,005 12,194 4 902 4 131 ,550 6,252 3,013 L,073 294 345 L 527 1963 53,745 46,992 21,610 13,523 5,622 4,590 1,647 6,753 3,427 1,086 287 328 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 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 I 469 Dec 59,397 51,990 23,943 14,762 6,458 5,078 ,749 7,407 3,922 L, 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 I 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 1,085 277 384 1,532 Apr 60,803 53,828 25,117 14,991 6,739 5,202 1,779 6,975 3,701 ,077 275 395 1,527 May 61,739 54,694 25,602 15,158 6,871 5,243 1,820 7,045 3,745 1,076 277 405 1,542 June 62 790 55,666 26 154 15,372 7 032 5 287 L 821 7,124 3,785 1,084 281 417 L 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 Aug 64,393 57,181 26,992 15,721 7,235 5,387 1,846 7,212 3,847 1,103 287 431 1,544 Sept 64,846 57,570 27,210 15,802 7,310 5,410 1,838 7,276 3,910 1,117 289 433 L 527 Oct 65,368 57,962 27,475 15,876 7,363 5,422 1,826 7,406 3,979 L,138 293 438 1,558 1 Consumer finance cos. included with 'other" financial institutions 3 Automobile paper only; other instalment credits 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

DECEMBER 1965 CONSUMER CREDIT 1771 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) End of period Total ch P A a u s u r e - t p d o a m pe o D r b i i r l e e ct s g O p c u o a o t m o p h m d e e e - r s r r e R l m r t o a e n i o a n o p iz n d d n a a s - ir - s l P o o a e n n r a - s l End of period m p A a o u p b t e i o l r - e s g O p c u o a t o m o p h n d e e e - r s r r m i R z l o o a e a d a n t p i n e d a o r s i n n r - l s P o o a e n n r a - s l 1939 1,197 878 115 148 56 1939 1,079 237 178 166 135 363 1941 1,797 1,363 167 201 66 1941 1,726 447 338 309 161 471 1945 300 164 24 58 54 1945 745 66 143 114 110 312 1957 9,609 7,393 1,509 31 676 1957 12,843 4,130 2,225 2,557 1,580 2,351 1958 8,844 6,310 1,717 36 781 1958 12,780 4,014 2,170 2,269 1,715 2,612 1959 10,319 7,187 2,114 72 946 1959 15,227 4,827 2,525 2,640 2,039 3,196 1960 11,472 7,528 2,739 139 1,066 I960 16,672 5,316 2,820 2,759 2,200 3,577 1961 11,273 6,811 3,100 161 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—Oct... 14,625 8,773 3,754 146 1,952 1964—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 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 Aug... 15,721 9,235 4,125 131 2,230 Aug 26,992 9,564 5,248 3,726 2,473 5,981 Sept.. 15,802 9,196 4,204 129 2,273 Sept 27,210 9,638 5,243 3,787 2,488 6,054 Oct... 15,876 9,201 4,269 128 2,278 Oct 27,475 9,768 5,294 3,847 2,499 6,067 See NOTE to first table on previous page. See NOTE to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single- Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal 1 1 9 9 4 3 1 9 9 7 5 8 7 9 pap 1 e 2 8 r 2 1 g p o a o p d e 2 3 r s 4 6 iz lo a a ti n o 1 1 s n 5 4 loa 6 7 n 6 8 s 9 5 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 1 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 1945 731 54 20 14 643 1957 6,748 1,114 588 490 4,555 1939 2 719 625 162 236 1 178 518 1958 7,035 1,152 565 595 4,723 1941 3,087 693 152 275 1 370 597 1959 8,024 1,400 681 698 5,244 1945 3,203 674 72 290 1,322 845 I960 9,074 1,665 771 800 5,837 1957 11,103 2,937 427 876 3,953 317 2,593 1961 9,654 1,819 743 832 6,257 1958 11,487 3,156 471 907 3 808 345 2,800 1962 10,583 2,111 751 815 6,906 1959 12,297 3,582 547 958 3,753 393 3,064 1963 11,859 2,394 835 870 7,760 1964 13,285 2,699 997 933 8,656 I960 13 196 3 884 623 941 3 952 436 3 360 1961 14,151 4,413 723 948 3,907 469 3,691 1964—Oct.. 12,932 2,654 956 926 8,396 1962 15 130 4 690 766 927 4 252 505 3 990 Nov.. 13,039 2,667 969 934 8,469 1963 16,145 5,047 912 895 4,456 520 4,315 Dec.. 13,285 2,699 997 933 8,656 1964 17,413 5 469 1,004 909 4 756 635 4 640 1965—Jan.. 13,271 2,689 996 933 8,653 1964—Oct.... 16,102 5,361 972 660 4,055 637 4,417 Feb.. 13,324 2,700 •1,006 929 8,689 Nov... 16,286 5,377 1,035 703 4,065 626 4,480 Mar.. 13,469 2,744 L,019 935 8,771 Dec... 17,413 5,469 1,004 909 4,756 635 4,640 Apr.. 13,720 2,813 1,042 939 8,926 May. 13,934 2,868 1,058 959 9,049 1965—Jan.... 16,803 5,409 1,003 793 4,280 651 4,667 June. 14,140 2,934 1,076 971 9,159 Feb.. . 16,378 5,436 1,006 660 3,857 637 4,782 July. . 14,267 2,970 1,092 974 9,231 Mar... 16,297 5,495 1,023 601 3,743 633 4,802 Aug.. 14,468 3,015 1,106 993 9,354 Apr... 16,680 5,572 1,034 626 3,942 642 4,864 Sept.. 14,558 3,045 1,120 996 9.397 May.. 16,948 5,628 1,058 647 4,142 664 4,809 Oct.. 14,611 3.065 1,130 998 9,418 June.. 17,097 5,707 1,069 627 4,218 683 4,793 July... 17,077 5,718 1,063 591 4,217 726 4,762 Aug... 17,061 5,747 1,078 595 4,149 754 4,738 NOTE.—Institutions represented are consumer finance cos., credit Sept... 17,078 5,776 1,080 647 4,078 771 4,726 unions, industrial loan cos., mutual savings banks, savings and loan Oct.... 17,201 5,793 1,078 682 4,221 742 4,685 assns., and other lending institutions holding consumer instalment loans. See also NOTE to first table on previous page. 1 Includes mail-order houses. 2 Service station and misc. credit-card accounts and home-heating oil accounts. See also NOTE to first table on previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1772 CONSUMER CREDIT DECEMBER 1965 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p um er er mode R r e n p iz a a ir t io a n n d loans Personal loans Period S. A. i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1957 . 42 016 16,465 11 807 1 674 12 069 1958 40.119 14,226 11,747 1,871 12,275 1959 48,052 17,779 13,982 2,222 14,070 I960 49,560 17,654 14 470 2 213 15,223 1961 . . - 48,396 16 007 1 14 578 2 068 15 744 1962 55,126 19,796 i 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—Oct 5,507 5,552 1,924 1,999 1.582 1,657 180 191 1,821 1,705 Nov 5,456 5,323 1,858 1,727 ,631 1,672 175 175 1,792 1,749 Dec 5,816 6,767 2,043 1,992 ,719 2,404 180 161 1,874 2,210 1965—Jan 5,883 5,023 2,120 1,836 ,729 1,440 181 134 1,853 1,613 Feb 6,022 5,007 2,228 1,915 ,760 1,338 175 132 1,859 1,622 Mar 6,030 6,173 2,229 2,382 ,698 1,619 186 176 1,917 1,996 Apr .... 6,189 6,480 2,272 2,496 ,645 1,614 189 190 2,083 2.180 M.ay 6,105 6,189 2,215 2,384 ,728 1,682 190 214 1,972 1 ,909 June 6,139 6,780 2,250 2,608 ,717 1,804 199 225 1,973 2,143 JUly 6,278 6,429 2,301 2,465 ,792 1,755 179 200 2,006 2,009 6,288 6,394 2,313 2,343 ,794 1,769 194 224 1,987 2,058 Sept 6,331 5,992 2.324 2,039 ,834 1,828 172 187 2,001 1,938 Oct . ... 6,306 6,144 ,266 2,263 ,883 1.874 177 182 1,980 1,825 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 I960 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—Oct 5,097 5,172 1.788 1.871 1.456 1.481 167 175 1.686 1.645 Nov 5,155 5,064 ,818 ,783 1,509 ,463 174 168 ,654 ,650 Dec 5,256 5,455 ,864 ,838 1,505 ,532 177 175 ,710 ,910 1965—Jan 5.213 5,078 ,830 ,783 1,526 ,539 171 163 ,686 ,593 Feb 5,381 4,986 ,897 ,746 1,632 ,558 172 159 ,680 ,523 Mar 5,393 5,748 ,924 2,062 1,567 ,659 171 182 ,731 ,845 Apr 5,445 5,465 ,936 1,944 1,487 ,502 190 191 .832 ,828 May 5,435 5,253 ,940 .890 1,564 ,509 172 169 ,759 ,685 June 5,537 5,729 ,960 2,032 1,587 ,611 179 185 ,811 ,901 July 5,612 5,610 .972 1,979 1,612 ,604 169 171 ,859 ,856 AUK 5,679 5,610 2,030 2,021 1,658 ,604 180 180 .811 ,805 Sept 5,648 5,539 1,996 1,977 1.629 ,612 168 171 ,855 ,779 Oct 5.717 5,622 2,028 2,052 1,648 1.614 170 170 1.871 ,786 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 1960 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—Oct 410 380 136 128 126 176 13 16 135 60 Nov 301 259 40 -56 122 209 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 _ j _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 Aug 609 784 283 322 136 165 14 44 176 253 Sept 683 453 328 62 205 216 4 16 146 159 Oct 589 522 238 211 235 260 7 12 109 39 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 back figures and description of the data, see "Consumer Credit," NOTE.—Estimates are based on accounting records and often include Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 CONSUMER CREDIT 1773 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p f a in n a ie n s ce Ot i h n e s r t itu f t i i n o a n n s cial Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1957 42,016 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 I960 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 Oct 5,507 5,552 2,030 2,044 1 1Sfi } 190 1,402 1.319 919 997 Nov 5,456 5,323 2,036 1,873 ,114 ,070 1,370 ,365 936 1,015 Dec 5,816 6,767 2,186 2,176 1,191 ,317 1,443 ,704 996 1,570 1965 Jan . ... 5,883 5,023 2,224 2,020 ,175 ,027 1,459 ,219 1025 757 Feb 6,022 5,007 2,262 1,974 ,281 ,060 1 427 ,217 ,052 756 Mar 6,030 6,173 2,286 2,414 ,276 ,292 1,487 ,551 981 916 Apr 6,189 6,480 2,362 2,591 ,243 ,284 1,607 ,653 977 952 6,105 6,189 2,343 2,459 ,242 ,239 1,494 ,487 ,026 1,004 June. 6,139 6,780 2,370 2,687 ,237 ,393 1,504 ,654 ,028 1,046 July 6,278 6,429 2,411 2,540 ,253 ,318 1,538 1,557 ,076 1,014 AUK 6,288 6,394 2,478 2,509 ,256 ,293 1,514 ,576 ,040 1,016 Sept 6,331 5,992 2,464 2,293 1,311 .228 1,514 ,440 ,042 1,031 Oct 6,306 6,144 2,462 2,385 1,214 1,223 1,508 ,404 1,122 1,132 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—Oct 5,097 5,172 1 .868 1,908 | 071 1,120 J 284 1,244 874 900 Nov 5,155 5,064 ,916 1,856 [,103 1,073 [,255 1,258 881 877 Dec 5,256 5,455 ,944 1,913 [,129 1,177 [,303 1,458 880 907 1965—Jan 5,213 5,078 ,921 1,872 1,059 992 [,299 1,233 934 981 Feb 5,381 4,986 ,956 1,819 [,157 1,075 ,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 ,108 1,124 1,396 1,402 939 928 May. 5,435 5,253 2,020 1,974 1,113 1,072 1,329 1,273 973 934 June 5,537 5,729 2,048 2,135 1,137 1,179 [,377 1.448 975 967 July 5,612 5,610 2,070 2,084 ,152 1,125 [,421 1,430 969 971 Aug 5,679 5,610 2,137 2,127 ,160 1,137 ,384 1,375 998 971 Sept 5,648 5,539 2,083 2,075 ,180 1,147 [ 410 1,350 975 967 Oct 5,717 5,622 2,165 2,120 1,130 1,149 1,422 1,351 1,000 1,002 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 1960 . 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—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 9*6 323 485 129 167 165 214 53 70 June 602 1,051 322 552 100 214 127 206 53 79 Julv 666 819 341 456 101 193 117 127 107 43 Aug 609 784 341 382 96 156 130 201 42 45 Sept 683 453 381 218 131 81 104 90 67 64 Oct 589 522 297 265 84 74 86 53 122 130 1 Includes adjustment for differences in trading days. months the differences between extensions and repayments for some 2 Net changes in credit outstanding are equal to extensions less repay- particular holders do not equal the changes in their outstanding credit. ments except: (1) in 1959, when the differences do not reflect the intro- Such transfers do not affect total instalment credit extended, repaid, or duction of outstanding balances for Alaska and Hawaii, and (2) in certain outstanding. months when data for extensions and repayments have been adjusted to See also NOTE to previous table. eliminate duplication resulting from large transfers of paper. In those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1774 INDUSTRIAL PRODUCTION: S.A. DECEMBER 1965 MARKET GROUPING (1957-59= 100) 1957-5° 1964 1964 1965 Grouping p p r o o- r- avertion age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July I Aug.r Sept1"' Oct. Total index. 100.00 132.3 131.6 135.4 138. 138.6 139.2 140.7 140.9 141.6 142.7 144.2 144.5 143.4 144.4 Final products, total 47.35 131.8 130.5 135.2 138.1 138.4 138.5 140.1 139.4 140.2 140 J 141 7 142.3 143.3 145.2 Consumer goods 32.31 131.7 129.5 134.5 138.0 138.4 138.0 140.0 138.5 138.6 138.7 139 3 139.5 140.6 141.1 Equipment, including defense... 15.04 132.0 132.5 136.7 138.4 138.2 139.4 140.4 141.2 143.7 144.9 147.0 148.4 149.1 154.1 Materials 52.65 132.8 132.6 135.9 138.0 138.8 139.7 141.7 142.6 142.6 144.5 146.4; 146.1 143.5 143.9 Consumer goods Automotive products 3.21 145.1 105.9 143.0 166.2 165.7 163.8 173.1 166.9 168.1 168.1 167.8 169.8 166.5 168.7 Autos 1.82 150.6 83.0 145.1 183.0 182.8 178.9 194.2 183.5 184.9 187.1 184.6) 184.3 178.Ij 181.1 Auto parts and allied products 1.39 138.0 136.1 140.2 144.0 143.1 143.9 145.2 145.1 146.0 143.0 145.8 150.7 151.2 152.4 Home goods and apparel 70.00 131.9 134.8 137.0 139.1 140.8 141.4 142.4 141.1 141.4 141.5 140.9 140.1 141.9 143.0 Home goods 4.59 141.1 144.0 Ul.l 150.5 151.7 152.7 154.0 152. 151.8 151.3 151.2 149.8 153.0 155.8 Appliances, TV, and radios 1.81 137.1 143.1 145.6 149.4 147.2 148.7 150.8 149.0 147.6 148.8 146.5 145.2 149. 151.3 Appliances 1.33 141.1 146.8 148.9 150.9 148.5 150.8 152.3 151.7 149.7 152.1 148.4 146.4 151.0 153.0 TV and home radios .47 125.7 132.7 136. 145.3 143.6 142.9 146.8 141.3 141.6 139.2 141.3 141.9 143.6 146.6 Furniture and rugs 1.2C 142.4 145.5 148.3 149.7 150.6 152.6 152.7 152.0 154.4 153.5 154.0 152.3 152.0 155.2 Miscellaneous home goods 1.52 144.7 143.7 149.7 152.3 157.9 157.5 158.9 155.8 154.7 152.6 154.4 153.3 158.4 161.6 Apparel, knit goods, and shoes.... 5.41 124.2 127.1 128.0 129.4 131.6 131.8 132.5 131.8 132.5 133.2 132.2 131.9 132.6 Consumer staples 19.10 129.3 130.7 131.8 132.7 132.6 131.9 133.2 132.4 132.2 132.7 134.1 134.1 135.5 135.4 Processed foods 8.43 119.9 120.0 122.0 122.5 122.3 121.3 122.1 122. 121.1 120.7 122.4 121.6 121.6 121.8 Beverages and tobacco 2.43 123.2 121.5 126.0 127.5 128.3 126.1 128.1 121.5 124.8 126.2 123.9 123.6 127.4 Drugs, soap, and toiletries 2.97 146.9 151.9 149.7 151.8 154.2 t52.8 154.2 152.6 151.9 152.9 157.0 160. 161.3 159.1 Newspapers, magazines, and books. 1.47 123.7 121.8 122.8 124.3 125.8 125.3 128.6 126.9 126.6 125.6 128.0 128.0 126. 126.6 Consumer fuel and lighting 3.67 142.3 147.2 147.0 146.9 143.9 145.4 146.5 148.8 148.2 150.6 151.2 150.6 155.0 Fuel oil and gasoline 1.20 119.6 122.2 119.9 120. 118.0 119.9 118.6 122.4 119.9 122.8 123.1 123.1 122.6 124.4 Residential utilities 2.46 153.4 159.4 160.2 159.9 156.5 157.8 160.0 161.7 162.0 164.1 164.9 164.0 170.9 Electricity 1.72 159.6 165.9 166.6 165.9 163.7 164.3 167.0 169. 169.3 172.2 172.6 171.3 181.0 Gas .74 Equipment Business equipment.... 11.63 139.1 140.6 146.1 148.5 147.7 149.2 150.1 150.9 153.5 154.6 156.4 157.8 159.0 163.8 Industrial equipment 6.85 137.0 140.4 144.5 145.9 144.8 147.1 148.3 148.4 150.6 151.9 155.1 153.8 155.3 159.4 Commercial equipment. 2.42 145.3 149.3 151.0 152.4 152.5 156.2 159.1 161.3 162.3 164.1 165.2 165.2 166.4 169.8 Freight and passenger equipment. 1.76 141.0 128.6 149.1 155.2 154.0 150.7 148.2 150.8 157.1 157.8 155.0 163.6 164.2 176.5 Farm equipment J> .61 133.1 142.2 135.1 142.1 142.5 141.3 140.4 138.3 141.7 143.7 145.3 157.1 155.4 Defense equipment , 3.41 Materials Durable goods materials. 26.73 131.2 128.6 134.9 136.8 138.0 139.0 142.6 142.9 143.4 146.1 148.4 147.3 142.6 142.0 Consumer durable 3.43 145.8 112.8 147.4 156.1 159.6 164.9 166.3 163.4 162.3 169.9 171.8 167.9 165.4 167.0 Equipment 7.84 134.4 137.7 139.2 141.5 142.6 143.8 146.9 147.5 148.7 150.0 153.3 154.7 154.2 157.6 Construction 9.17 124.5 124.1 126.8 127.5 128.3 130.8 133.5 130.5 131.4 131.3 132.7 134.6 134.5 135.4 Metal materials n.e.c.... 6.29 129.2 131.7 135.1 139.1 141.9 140.5 142.5 141.8 139.7 142.3 146.3 T42.4 130.0 126.1 Nondurable materials ; 25.92 134.3 136.7 137.0 139.2 139.5 140.5 140.6 142.4 141.8 143 A 145.0 144.8 144.4 145.9 Business supplies 9.11 127.4 129.3 129.0 132.7 133.2 135.6 134.2 135.1 134.1 134.8 137.6 135.1 135.9 136.7 Containers.. 3.03 127.9 131.8 132.3 t35.3 136.3 138.0 129.7 137.3 132.0 132.0 136. 132.1 134.4 136.6 General business supplies. 6.07 127.1 128.0 127.3 131.4 131.6 134.4 136.5 134.0 135.2 136.2 138.3 136.6 136.7 136.8 Nondurable materials n.e.c.. 7.40 157.7 162.2 163.3 165.2 167.0 167.5 167.6 170.8 168.8 171.1 174.7 176.6 178.3 179.3 Business fuel and power 9.41 122.6 124.0 124.0 125.1 124.1 123.9 125.7 127.2 127.9 129.9 J28.9 129.2 126.0 128.6 Mineral fuels 6.07 112.2 113.3 113.0 113.3 112.1 111.1 112.3 114.3 115.1 116.9 117 0 117.2 111.9 116.0 Nonresidential utilities 2.86 149.6 151.0 151.2 154.6 153.8 155.6 158.5 159.6 160.1 162.4 158.8 160. 161.0 Electricity 2.32 149.6 150.4 150.5 154.6 154.7 156.1 159.1 160.2 160.7 163.4 160.8 162.3 163.5 General industrial 1.03 142.8 144.1 147.4 149.7 148.7 150.9 154.9 155.8 156.0 159.8 159.3 161.3 160.7 Commercial and other.. 1.21 159.7 160.6 158.1 164.2 165.3 166.0 168.3 169.8 170.5 172.4 167.9 169.2 171.9 Gas .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 142.8 128.3 145.7 156.9 157.4 157.3 161.9 158.2 158.5 158.2 158.1 158. 158.5 161.1 Apparel and staples 24.51 128.1 129.9 131.0 132.0 132.4 131.9 133.0 132.3 132.2 132.8 133.7 133.6 134.8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 INDUSTRIAL PRODUCTION: S.A. 1775 INDUSTRY GROUPINGS (1957-59= 100) 19 p 5 r 7 o - - 59 1964 1964 1965 Grouping por- avertion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.' Sept.' Oct. Total index 100.00 132.3 131.6 135.4 138.1 138.6 139.2 140.7 140.9 141.6 142.7 144.2 144.5 143.4 144.4 Manufacturing, total 86.45 133.1 132.0 136.4 139.4 140.2 140.8 142.3 142.4 143.1 144.1 145.7 745.0 745.7 745.0 Durable 48.07 133.5 129.9 137.0 140.9 142.0 142.7 144.8 145.5 146.4 148.1 150.0 150.5 148.2 149.7 Nondurable 38.38 132.6 134.6 135.6 137.6 137.9 138.4 139.1 138.5 138.8 139.0 140.4 140.4 141.3 141.4 Mining 8.23 111.3 112.0 112.8 112.5 111.8 111.8 112.5 113.0 114.0 115.3 116.0 117.0 112.4 115.0 Utilities 5.32 151.3 154.9 155.4 157.1 154.9 156.1 158.5 159.9 160.4 162.5 161.6 161.9 165.6 166.0 Durable manufactures Primary and fabricated metals 12.32 130.7 132.3 136.4 139.1 140.0 140.4 142.5 144.0 142.7 144.5 148.4 745.9 757.5 135.2 Primary metals 6.95 129.1 133.6 136.1 138.6 139.6 136.9 140.4 141.4 140.2 143.0 148.7 146.5 130.6 122.9 Iron and steel 5.45 126.5 132.5 135.2 136.4 137.1 137.0 139.5 141.2 139.7 143.3 152.1 143.3 125.0 115.8 Nonferrous metals and products. 1.50 138.3 133.9 140.6 150.9 148.0 149.0 151.0 153.6 153.4 146.1 138.4 149.0 149.5 150.9 Fabricated metal products 5.37 132.7 130.7 136.9 139.7 140.6 145.0 145.2 147.4 146.0 146.4 148.0 147.5 147.0 151.0 Structural metal parts 2.86 130.3 128.6 135.8 137.2 137.0 140.9 144.1 144.3 142.7 144.3 145.5 145.0 144.7 148.3 Machinery and related products.... 27.98 136.4 129.0 139.2 144.6 145.4 145.9 148.5 149.3 151.2 153.4 154.8 155.8 755.9 759.2 Machinery 14.80 141.4 145.2 147.7 150.1 150.7 152.5 153.9 155.4 156.9 159.0 160.6 161.4 162.3 165.4 Nonelectrical machinery 8.43 142. 145.4 148.1 150.7 151.3 152.7 153.8 155.2 157.0 159.4 161.7 162.4 162.4 165.7 Electrical machinery 6.37 140.6 144.9 147.2 149. 150.0 152.3 154.1 155.8 156.8 158.4 159.2 160.1 162.1 165.1 Transportation equipment 10.19 130.7 105.3 129.2 140.3 141.4 139.7 144.4 144.6 147.3 149.5 149.8 151.5 149.4 153.5 Motor vehicles and parts 4.68 150.1 96.2 143.9 167.4 169.1 167.7 176.4 173.2 175.5 178.0 177.4 177.5 175.1 176.7 Aircraft and other equipment... 5.26 112.4 110.8 114.5 115.0 115.5 114.1 115.3 118.6 121.7 123.3 124.1 127.3 125.6 131.8 Instruments and related products.. 1.71 136.4 137.6 140.2 142.0 142.7 145.3 146.9 145.5 147.0 149.8 152.1 152.6 155.7 157.7 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 121.1 121.0 120.9 121.1 124.9 125.9 126.0 124.1 725.5 724.7 725.5 727.5 727.5 128.3 Clay, glass, and stone products. 2.99 126.0 126.9 127.7 130. 132.4 131.8 129.2 129.9 130.3 131.6 132.6 133.5 133.8 134.5 Lumber and products 1.73 112.6 110.8 109.2 105.5 111.9 115.6 120.5 114.2 117.1 112.8 115.4 117.2 116.2 117.5 Furniture and miscellaneous 3.05 138.4 141.7 143.4 145.4 145.2 147.6 148.4 749.5 750.7 750.5 149.7 757.5 752.0 754. £ Furniture and fixtures 1.54 143.4 147.4 149.3 151.5 150.6 154.3 154.3 155.6 156.5 156.8 155.8 156.3 156.8 159.9 Miscellaneous manufactures.... 1.51 133.4 135.9 137.4 139. 139.6 140.8 142.4 143.2 143.6 143.6 143.5 146.6 147.1 149.6 Nondurable manufactures Textiles, apparel, and leather 7.60 125.2 128.9 130.2 131.5 133.3 133.8 133.7 133.9 755.0 134.5 754.7 754.7 755.5 754.9 Textile mill products 2.90 122.9 127.8 128.7 130.3 131.7 132.0 131.5 132.2 131.6 132.2 133.8 134.8 135.7 137.2 Apparel products 3.59 134. 137.2 139.1 140.6 142.2 143.7 144.0 144.3 145.3 145.4 143.8 141.9 143.7 Leather and products 1.11 102.6 104.8 105.4 105.6 108.7 106.6 106.1 105.0 110.9 105.1 107.7 107.0 108.2 Paper and printing 5.77 127.5 128.8 128.2 132.1 132.0 131.8 132.9 133. 134.2 134.0 135.9 755.4 755.4 755. # Paper and products 3.43 133.4 137.0 133.8 140. 139.1 137.5 139.0 140.0 140.9 139.4 142.1 141.1 143.9 141.9 Printing and publishing 4.74 123.3 123.0 124.2 126. 126.8 127.7 128.5 128.3 129.3 130.0 131.3 133.0 129.3 131.4 Newspapers 1.53 117.0 114.3 117.0 122.6 121.4 120.9 121.0 120.7 121.5 124.7 126.2 129.7 120.1 125.1 Chemicals, petroleum, and rubber.. 11.54 152.5 156.2 156.2 755.5 158. 160.4 162.0 160.8 757.2 161.6 164.1 754.9 755.9 167.4 Chemicals and products 7.58 159.6 163.0 163.2 166.4 166.7 167.8 169.5 169.2 169.3 169.9 172.8 174.2 176.6 177.0 Industrial chemicals 3.84 178.4 181.0 182.9 187.9 186.0 188.2 190.8 191.6 191.7 192.9 194.9 195.7 199.9 Petroleum products 1.97 121.0 122.7 121.7 120.9 119.0 121.5 122.2 121.5 122.9 121.8 124.5 125.8 125.1 125*9 Rubber and plastics products 1.99 156.3 163.2 163.7 165.7 164.7 171.1 172.6 167.7 168.2 169.1 170.2 168.1 171.2 Foods, beverages, and tobacco 11.07 120.8 120.5 123.3 123.9 124.2 123.4 123.7 122.4 727.5 722.5 122.9 722.5 725.0 122.8 Foods and beverages 10.25 120.8 120.3 123.5 123.8 124.3 123.4 123.4 122.5 121.9 122.3 123. 122.4 123.2 123.0 Food manufactures 8.64 120. 120.2 122.6 122.9 123.0 122.6 122.4 122.6 120.6 121.2 122.6 121.9 121.8 121.8 Beverages 1.61 124.4 120.6 128.5 128.6 131.4 127.4 128.6 121.8 129.0 128.5 125.9 125.0 130.8 Tobacco products .82 120.8 123.3 121.0 125.4 122.2 123.5 127.2 120.9 116.5 121.8 119.9 120.7 120.6 Mining Coat, oil, and gas 6.80 109.8 110.7 110.2 110.4 109.4 109.4 270.0 777.3 772.7 775.3 775.7 774.4 109.7 112.9 Coal 1.16 107.1 108.9 109.6 110.1 107.7 103.2 103.1 107.9 113.0 117.1 117.1 115.2 106.7 116.8 Crude oil and natural gas 5.64 110.4 111.1 110.4 110.4 109.8 110.6 111.4 112.0 111.9 112.5 113.0 114.2 110.4 112.1 Oil and gas extraction 4.91 113.4 114.3 113.8 114.0 113.2 113.0 114.5 115.8 115.6 116.9 117.0 117.6 113.2 115.9 Crude oil 4.25 109.9 110.8 110.2 110.9 109.8 108.6 110.5 111.4 111.3 112.2 112.1 113.4 108.5 112.0 Gas and gas liquids .66 136.1 136.8 136.5 133.8 134.6 141.0 140.2 144.0 143.1 146.5 147.9 144.6 Oil and gas drilling .73 90.1 89.2 87.3 86.4 86.9 94.7 90.2 86.0 87.4 82.9 86.0 91.2 9K3 *86.'4 Metal, stone, and earth minerals... 1.43 118.1 117.9 125.1 122.7 123.3 123.1 124.3 121.4 122.9 124.9 725.9 729.5 725.5 725.5 Metal mining .61 117.4 115.4 126.6 121.8 126.7 123.4 124.6 125.8 121.6 123.7 126.4 130.2 122.4 124.4 Stone and earth minerals .82 118.7 119.7 123,9 123.4 120.8 122.9 124.1 118.2 123.9 125.8 127.3 129.1 127.4 126.0 Utilities Electric 4.04 153.9 157.0 157.4 159.4 158.5 159.6 162.4 164,0 164.3 167.1 165.8 166.2 170.9 Gas 1.28 143.4 148.4 149.0 149.6 143.6 145.4 146.0 147.2 147.8 147.9 NOTE.—Published groupings include some series and subtotals not Industrial Production 1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1776 INDUSTRIAL PRODUCTION: N.S.A. DECEMBER 1965 MARKET GROUPINGS (1957-59= 100) 1957-59 1964 1964 1965 pro- aver- Grouping p ti o o r n - age Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Oct. Total index 100.00 132.3 135.3 136.2 135.5 136.7 139.1 141.7 141.6 142.6 145.2 139.3 143.2 145.9 149.4 Final products, total 47.35 131.8 135.1 135.5 135.1 136.7 138.3 140.9 735.5 139.8 143.2 138.3 141.1 145.7 750.7 32.31 131.7 136.4 135.4 133.3 136.0 137.7 140.5 136.9 137.8 141.6 135.2 138 9 143 9 149 1 Equipment, including defense.... 15.04 132.0 132.4 135.7 139.1 138.3 139.8 141.6 142.0 144.2 146.8 144.9 145.9 149.8 153.9 Materials 52.65 132.8 135.5 136.8 135.9 136.7 139.8 142.5 144.3 145.0 147.0 140.3 145.1 146 1 148.3 Consumer goods 3.21 145.1 114.7 153.4 169.5 175.5 173.9 182.9 176.7 178.8 180.3 158.5 106.8 129 4 755 4 1.82 150.6 95.4 165.4 192.2 201.1 196.8 213.6 200.0 203.4 208.6 171.7 72.8 114 0 206.4 Auto parts and allied products 1.39 138.0 140.2 137.6 139.7 141.7 143.8 142.4 146.0 146.5 143.1 141.2 151.7 149.8 157.7 10.00 131.9 142.5 139.1 130.4 135.1 144.6 147.2 141.8 142.6 145.2 129.9 142.1 148.8 152.6 Home goods 4.59 141.1 151.7 152.9 147.7 143.7 152.8 157.3 152.8 153.0 155.6 138.9 145.6 161.7 167.4 Appliances, TV, and radios 1.81 137.1 149.5 151.7 140.4 138.8 156.7 163.1 154.5 154.7 158.1 126.5 129.2 158.1 165.6 1.33 141.1 143.9 150.2 145.1 141.7 159.8 170.8 161.5 161.8 165.4 130.2 123.9 154 3 156 7 TV and home radios .47 125.7 165.2 156.1 127.0 130.7 148.0 141.4 134.7 134.7 137.5 115.9 144.2 168.7 190.6 Furniture and rugs 1.26 142.4 152.3 152.3 154.5 147.3 150.0 150.9 149.3 148.5 151.7 145.8 156.1 158.5 163.3 1.52 144.7 153.8 154.9 150.8 146.5 150.4 155.7 153.5 154.7 155.7 148.2 156.4 168 7 172.9 Apparel, knit goods, and shoes 5.41 124.2 134.7 127.4 115.8 127.7 137.7 138.5 132.5 133.8 136.5 122.3 139.2 137.9 19.10 129.3 136.8 130.5 128.7 129.9 127.9 129.9 127.6 128.4 133.1 134.0 142.6 143.7 141.2 8.43 119.9 134.3 125.1 118.7 115.6 112.1 113.8 112.7 114.4 118.8 122.4 133.5 137.7 136.3 2.43 123.2 127.6 119.0 109.9 112.6 114.8 124.6 123.9 133.6 144.4 127.6 134 8 131 2 2.97 146.9 154.9 150.1 148.8 153.0 152.3 155.0 151.1 152.1 156.3 153.9 163.6 162.9 162 3 Newspapers, magazines, and books. 1.47 123.7 123.5 122.8 124.8 124.5 124.4 128.3 125.9 125.6 124.6 126.1 129.7 129.6 128.4 Consumer fuel and lighting 3.67 142.3 138.8 137.4 148.9 156.8 154.0 150.2 145.1 138.5 142.8 151.9 156.5 155.9 1.20 119.6 119.0 119.2 122.9 123.0 123.0 117.4 116.0 115.9 121.4 125.1 126.7 122.6'iii.'i Residential utilities 2 46 153.4 Electricity 1.72 159.6 150.1 146.6 168.4 187.6 180.4 175.7 165.7 151.5 156.7 172.6 181.6 182.8 Gas .74 Equipment 11.63 139.1 140.1 144.1 148.5 147.3 149.7 151.9 152.2 154.4 157.3 153.9 154.9 159.8 163.3 6.85 137.0 139.6 142.5 146.8 145.1 146.4 148.4 148.4 150.8 153.3 153.5 153.3 156.7 158.4 2.42 145.3 151.8 152.8 155.0 152.7 155.1 157.7 158.2 160.4 164.6 162.9 165.5 168.9 172.7 Freight and passenger equipment... 1.76 141.0 128.6 146.1 149.8 149.4 152.2 154.9 156.8 161.8 164.1 148.8 157.1 164.2 176.5 Farm equipment .61 133.1 133.5 122.1 138.7 145.0 157.8 158.9 157.6 149.2 152.8 137.9 125.4 145.5 3 41 Materials 26.73 131.2 131.8 135.8 135.2 135.7 138.7 142.9 144.4 146.9 149.5 142.9 144.5 146.4 747.4 3.43 145.8 115.6 151.8 163.9 165.2 167.4 171.3 168.3 168.8 171.6 158.1 144.4 165.4 171.2 7.84 134.4 137.3 139.3 143.6 143.9 145.1 148.5 149.1 149.7 151.5 148.5 150.1 152.7 157.1 9.17 124.5 130.9 126.5 118.6 115.9 120.3 125.5 129.2 136.0 141.2 139.3 144.0 142.6 142.8 6.29 129.2 134.9 136.2 133.0 138.2 141.8 145.9 147.5 147.4 146.9 133.1 138.3 133.9 129.1 25.92 134.3 139.3 137.9 136.6 137.8 140.9 142.0 144.3 143.1 144.5 137.5 145.7 145.7 149.2 9.11 127.4 134.9 130.2 127.3 128.0 133.3 134.2 138.7 136.3 137.0 128.4 137.2 139.8 144.0 3.03 127.9 138.4 125.0 117.7 128.1 135.2 129.7 141.4 133.3 138.6 130.7 145.3 143.1 144.8 6.07 127.1 133.1 132.8 132.1 127.9 132.4 136.5 137.4 137.9 136.2 127.2 133.2 138.1 143.6 7.40 157.7 163.0 164.9 161.9 166.2 170.8 171.8 174.2 173.0 173.7 163.9 174.8 176.5 180.2 9.41 122.6 125.0 124.2 125.6 124.9 124.8 126.1 126.2 126.0 128.8 125.7 131.2 127.2 129.7 6.07 112.2 114.1 114.4 114.9 114.0 114.6 114.9 115.6 113.9 114.9 109.3 115.7 110.7 117.0 2.86 149.6 Electricity 2.32 149.6 152.6 147.7 151.4 152.3 150.0 153.6 152.7 156.3 164.8 168.9 174.8 171.9 General industrial 1.03 142.8 147.3 147.4 148.2 148.0 147.0 153.4 153.8 156.8 161.2 158.5 164.5 163.1 1.21 159.7 162.2 152.7 159.3 161.2 157.7 159.2 157.1 161.5 174.1 184.2 190.3 186.0 Gas .54 Supplementary groups of consumer goods 7.80 142.8 136.5 153.1 156.7 156.8 161.5 167.8 162.6 163.6 165.8 147.0 129.6 148.4 174.8 24.51 128.1 136.4 129.8 125.8 129.4 130.1 131.8 128.7 129.6 133.9 131.4 141.8 142.4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 INDUSTRIAL PRODUCTION: NAA. 1777 INDUSTRY GROUPINGS (1957-59= 100) Grouping 19 p p 5 r o 7 o r - - 5 - 9 a 1 v 9 e 6 r 4 - 1964 1965 tion age Oct. Nov. Dec Jan. Feb. Mar. Apr. May | June July . Aug.1" Sept.r Oct. Total index. 100.00 132.3 135.3 136.2 135.5 136.7 139.1 141.7 141.6 142.6 145.2 139.3 143.2 145.9 149.4 Manufacturing, toted., 86.45 133.1 136.3 137.7 136.4 137.7 140.5 143.5 143.4 144.6 147.2 140.3 143.9 147.5 151.7 Durable 48.07 133.5 132.6 139.0 140.7 140.7 143.5 147.1 147.5 149.0 151.7 144.9 143.3 148.2 154.4 Nondurable 38.38 132.6 141.0 136.0 131.1 133.8 136.8 139.0 138.2 139.0 141.5 134.6 144.7 146.5 148.3 Mining 8.23 111.3 114.5 113.4 112.1 110.8 111.1 111.1 113.0 114.4 115.9 112.3 118.2 114.0 117.8 Utilities 5.32 151.3 Durable manufactures Primary and fabricated metals 12.32 130.7 134.8 137.6 136.4 139.4 142.7 145.9 148.4 146.0 147.4 138.7 143.1 140.8 138.5 Primary metals 6.95 129.1 134.9 137.5 134.4 141.0 144.7 149.1 150.9 146.6 145.9 133.1 137.4 130.5 125.4 Iron and steel 5.45 126.5 134.5 136.6 133.0 139.8 142.9 146.5 148.3 142.5 143.3 135.4 134.7 125.0 117.5 Nonferrous metals and products. 1.50 138.3 136.4 140.6 139.4 145.5 151.2 158.5 160.4 161.5 155.2 124.6 147.5 150.5 153.8 Fabricated metal products 5.37 132.7 134.6 137.7 139.0 137.2 140.2 141.7 145.2 145.3 149.3 145.8 150.4 154.1 155.5 Structural metal parts 2.86 130.3 132.5 137.8 138.6 134.3 135.3 138.5 140.0 142.0 147.2 145.5 148.6 150.5 152.8 Machinery and related products.... 27.98 136.4 130.5 141.6 147.1 146.9 148.9 152.9 151.6 153.7 156.5 149.4 142.5 152.1 163.2 Machinery 14.80 141.4 145.7 147.9 151.5 150.3 154.8 158.2 157.5 158.6 161.7 155.0 155.3 163.3 167.5 Nonelectrical machinery 8.43 142.1 142.8 145.0 151.8 152.1 155.4 159.6 159.9 160.9 163.2 159.3 154.8 160.3 162.7 Electrical machinery 6.37 140.6 149.6 151.7 151.0 148.1 153.9 156.3 154.4 155.7 159.8 149.2 156.0 167.3 173.8 Transportation equipment 10.19 130.7 108.3 135.0 144.7 146.1 144.8 150.6 148.3 151.9 153.9 144.0 123.8 137.3 161.2 Motor vehicles and parts 4.68 150.1 102.3 155.0 174.8 178.9 177.3 187.7 179.8 185.0 189.0 168.5 120.2 149.5 189.9 Aircraft and other equipment... 5.26 112.4 111.4 116.2 117.3 116.7 115.5 117.0 119.2 121.2 121.6 121.1 125.0 125.1 135.1 Instruments and related products.. 1.71 136.4 139.1 142.7 143.7 141.7 143.1 144.7 143.3 145.5 151.3 150.6 153.8 157.4 159.4 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 121.1 128.2 121.1 110.5 108.3 114.4777.5 122.9 750.5 755.5 755.0 759.5 755.0 757.5 Clay, glass, and stone products. 2.99 126.0 134.5 129.6 120.4 113.9 116.4 118.9 129.3 136.2 142.1 141.9 146.2 143.2 144.6 Lumber and products 1.73 112.6 117.4 106.5 93.4 98.5 111.0 114.5 111.9 121.0 124.1 117.7 128.9 129.0 125.7 Furniture and miscellaneous.. 3.05 138.4 149.2 148.2 146.7 139.5 142.9 145.6 145.2 146.7 750.5 146.4 755.5 759.0 755.7 Furniture and fixtures , 1.54 143.4 153.0 152.0 154.2 147.6 150.4 152.4 151.4 151.8 156.5 154.2 161.5 162.8 166.0 Miscellaneous manufactures. 1.51 133.4 145.4 144.3 139.1 131.2 135.2 138.8 138.9 141.4 144.3 138.5 151.0 155.2 160.1 Nondurable manufactures Textiles, apparel, and leather. 7.50 125.2 132.8 129.4 119.4 131.2 139.3 139.4 755.5 755.5 137.4 727.9 138.4 757.5 740.7 Textile mill products 2.90 122.9 127.8 129.3 121.2 131.0 134.6 134.1 135.5 137.5 136.8 121.5 138.2 136.4 142.0 Apparel products 3.59 134.1 144.7 137.7 124.4 138.6 150.9 151.9 145.0 145.3 147.6 130.1 146.2 146.6 Leather and products 1.11 102.6 107.4 103.3 98.5 108.2 114.0 112.5 105.0 105.9 106.2 96.4 114.0 109.8 Paper and printing 8.17 127.5 134.9 130.9 127.5 128.6 757.5 134.6 755.7 755.2 134.7 727.5 755.5 757.5 142.7 Paper and products 3.43 133.4 145.9 134.5 126.6 137.0 140.9 141.8 144.2 141.6 142.2 130.7 144.2 146.8 152.5 Printing and publishing. 4.74 123.3 126.9 128.4 128. 122.6 125.3 129.5 130.2 130.5 129.3 124.8 129.3 131.4 135.7 Newspapers , 1.53 117.0 122.6 128.7 123. 111.2 116.9 123.4 129.3 129.5 125.3 109.8 117.4 120.9 134.2 Chemicals, petroleum, and rubber.. 11.54 152.5 158.6 155.3 154.6 156.9 161.3 755.2 755.4 752.9 165.4 759./ 755.5 755.9 770.0 Chemicals and products 7.58 159.6 164.1 162.8 162.4 164.7 168.2 171.5 173.2 171.7 174.1 168.6 176.0 178.1 178.2 Industrial chemicals 3.84 178.4 181.9 184.4 186.0 185.1 190.1 192.7 196.4 192.8 195.8 190.0 196.7 201.9 Petroleum products 1.97 121.0 123.3 119.9 119.1 117.2 119.7 117.9 116.6 121.1 125.5 130. 132.1 127.6 i26.*5 Rubber and plastics products 1.99 156.3 172.3 162.1 159.9 166.3 176.2 176.4 172.9 171.6 171.6 151.5 163.1 175.1 Foods, beverages, and tobacco 11.07 120.8 133.0 124.2 117.2 115.4 773.2 775.7 775.4 118.8 124.4 725.2 755.5 755.9 755.0 Foods and beverages. 10.25 120.8 132.9 124.3 118.4 115.0 112.5 116.0 115.0 118.6 123.9 124.6 133.5 136.7 135.3 Food manufactures 8.64 120.1 134.6 125.7 119.2 116.2 112.8 114.4 113.0 114.6 118.7 122.0 132.9 137. 136.4 Beverages 1.61 124.4 124.2 116.7 113.9 108.4 110.7 124.2 125.5 140. 151.6 138.5 136.9 134.3 Tobacco products .82 120.8 134.3 123.4 102.1 120.9 122.9 125.3 120.7 120.7 130.3 106.1 130.6 125.3 Mining Coal, oil, and gas 6.80 109.8 111.6 111.7 112.3 111.7 112.2 777.5 772.0 770.5 777.5 705.9 775.5 705.9 775.9 Coal 1.16 107.1 118.7 114.1 108.1 105.5 104.4 103.9 108.7 114.1 116.6 90.2 121.2 112.9 127.3 Crude oil and natural gas 5.64 110.4 110.2 111.3 113.1 113.0 113.8 113.1 112.6 109.9 110.2 110.3 111.7 108.0 111.2 Oil and gas extraction 4.91 113.4 113.0 114.5 116.5 116.0 116.9 117.5 117.2 113.8 114.5 113.8 114.4 110.2 114.5 Crude oil 4.25 109.9 109.7 110.2 112.0 111.4 111.9 112.7 H3.2 110.2 111.1 109.9 111.1 106.3 110.9 Gas and gas liquids .66 136.1 133.9 141.6 144. 145.6 149.0 147.8 143.3 137.5 136.4 139.0 135.8 Oil and gas drilling .73 90.1 91.4 89.5 90.5 92.6 92.4 83.6 81.5 83.6 81.2 86.6 93.3 '93.'2 '88.6 Metal, stone, and earth minerals... 1.43 118.1 127.9 121.5 HI. 106. 105.8 709.7 777.7 132.4 755.0 755.7 141.8 755.7 755.9 Metal mining .61 117.4 123.5 116.5 109.6 111.5 111 .1110.9 117.0 133.8 139.8 135.2 140.6 138.3 133.1 Stone and earth minerals .82 118.7 131.1 125.1 112.3 102.2 101.9 107.7 118.2 131.3 136.7 140.2 142.7 138.9 138.0 Utilities Electric. 4.04 153.9 151.5 147.3 158.6 167.3 163.0 163.0 158.2 154.2 161.4 170.5 177.7 176.6 <3as 1.28 143.4 NOTE.—Published groupings include some series and subtotals not Industrial Production—1957-59 Base. Figures for individual series and shown separately. A description and historical data are available in subtotals (N.S.A.) are published in the monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1778 BUSINESS ACTIVITY; CONSTRUCTION DECEMBER 1965 SELECTED BUSINESS INDEXES (1957-59-100) Industrial production fac M tu a r n in u g - 2 Prices* Nonag- Major market groupings Con- ricul- Major industry stru- tural Freight Total Period Total Final products Mate- groupings t c r t o i a o n c n - ts T m p o e e l t m o a n - y l t — - i m p E l m e o n y - t - P ro a l y ls - l i o n a g d s - s r a e l t e a s i l 3 s C u o m n e - r W c s o a h m l o e - le- Total g s C u o o o m n d - e s r E m q e u n ip t - rials Mfg. M in in g - U iti t e il s - modity 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 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 132 107.8 99.7 117.9 93.3 120 106.7 100.3 1964 132.3 131.8 131.7 132.0 132.8 133.1 111.3 151.3 137 110.8 101.4 124.2 95.5 127 108.1 100.5 1964—Oct 131.6 130.5 129.5 132.5 132.6 132.0 112.0 154.9 136 111.1 100.3 122.5 94.6 125 108.5 100.8 Nov 135.4 135.2 134.5 136.7 135.9 136.4 112.8 155.4 143 112.1 102.9 127.4 98.5 127 108.7 100.7 Dec 138.1 138.1 138.0 138.4 138.0 139.4 112.5 157.1 154 112.6 103.6 130.3 99.1 133 108.8 100.7 1965 Jan 138.6 138.4 138.4 138.2 138.8 140.2 111.8 154.9 137 112.9 104.1 132.1 100.4 134 108.9 101.0 Feb 139.2 138.5 138.0 139.4 139.7 140.8 111.8 156.1 140 113.4 104.5 132.9 96.4 136 108.9 101.2 Mar .... 140.7 140.1 140.0 140.4 141.7 142.3 112.5 158.5 141 113.9 105.0 134.3 98.1 133 109.0 101.3 Apr 140.9 139.4 138.5 141.2 142.6 142.4 113.0 159.9 152 113.9 105.1 132.8 98.6 134 109.3 101.7 May 141.6 140.2 138.6 143.7 142.6 143.1 114.0 160.4 145 114.3 105.2 133.8 100.5 137 109.6 102.1 June 142.7 140.7 138.7 144.9 144.5 144.1 115.3 162.5 139 114.8 105.9 134.5 93.8 136 110.1 102.8 July 144.2 141.7 139.3 147.0 146.4 145.7 116.0 161.6 149 115.2 106.4 135.3 95.1 139 110.2 102.9 A.U2 144 5 142.3 139.5 148.4 146.1 146.0 117.0 161.9 139 115.4 106.7 135.7 94.3 138 110.0 102.9 Sept 143.4 143.3 140.6 149.1 143.5 145.1 112.4 165.6 147 115.7 106.8 136.7 93.5 139 110.2 103.0 Oct 144.4 145.2 141.1 154.1 143.9 146.0 115.0 166.0 147 116.1 107.2 138.7 93 4 140 110.4 103.1 Nov.? 145.5 146.6 142.1 156.2 144.6 147.2 115.4 166.5 116.7 108.0 140.2 97.9 140 103.5 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; • Prices are not seasonally adjusted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. NOTE.—Data are seasonally adjusted unless otherwise noted. Freight car loadings: Based on data from Association of American Construction contracts: F. W. Dodge Co. monthly index of dollar Railroads. CONSTRUCTION CONTRACTS (In millions of dollars) 1964 1965 Type of ownership and 1963 1964 type of construction Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 45,546 47,330 4,033 3,758 3,598 3,131 3,226 4,224 4,770 4,864 4,625 4,795 4,265 4,153 4,356 By type of ownership: Public 14,653 15,374 rl,310 1,174 1,230 1,105 1,113 1,356 1,539 1,517 1,553 1,750 1,313 1,332 1,294 30,893 31,956 r2,724 2,584 2,368 2,026 2,113 2,867 3,231 3,348 3,072 3,045 2,952 2,821 3.061 By type of contraction: Residential building 20,502 20,565 1,703 1,482 1,306 1,275 1,300 1,877 2,139 2,074 2,080 1,952 1,971 1,756 Nonresidential building 14,377 15,522 1,429 1,264 1,299 1,156 1,062 1,384 1,546 1,775 1,551 1,691 1,507 1,464 10,667 11,244 902 1,012 994 700 864 962 1,086 1,015 993 1,151 788 934 NNOOTTEE..—DDololllaar r vvaalluue eo of ft toottl al ccontttracts as reported by the F. W. Dodge data exceed annual tottaallss bbeceaeu sea ajdjuusstmteentts—gnaegtaitiveea—e are maeade to Co. does not include data for Alaska "o' r " Hawaii. Totals of monthly accumulated monthly ddaa ta a~fter original figures have been published. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 CONSTRUCTION 1779 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Period Total Total d N f e r a e n o r s t m n i i - a - l Total In tr d ia u B l s u - sine m C ss e 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 a s n n i e l - - - r Total M ta i r l y i- H w ig a h y - S w a e a n w t d e e r r Other 1956 47,601 34,869 20,178 11,076 3.084 3.631 4,361 3,615 12,732 ,360 4,415 1,275 5,682 1957 49,139 35,080 19,006 12,029 3.557 3,564 4,908 4,045 14,059 ,287 4,934 1,344 6,494 1958 50,153 34,696 19,789 10,659 2,382 3,589 4,688 4,248 15,457 ,402 5,545 1,387 7,123 1959 i 55,305 39,235 24,251 10,557 2,106 3,930 4.521 4,427 16,070 ,465 5,761 1,467 7,377 1960 53,941 38,078 21,706 11,652 2,851 4,180 4,621 4,720 15,863 ,366 5,437 1,487 7,573 1961 55,447 38,299 21,680 11,789 2,780 4,674 4,335 4,830 17,148 ,371 5,854 1,581 8,342 1962 59,576 41,707 24,292 12,234 2,949 4,955 4,330 5,181 17,869 ,266 6,365 1,754 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—Nov.. 65,153 45,368 25,638 14,242 3,521 5,709 5,012 5,488 19,785 1,033 7,087 2,189 9,476 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 9,760 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 6,574 187 5,591 20,334 833 7,546 2,014 9,941 July.. 68,599 48,603 26,983 16,084 4,073 6,826 185 5,536 19,996 980 7,156 1,995 9,865 Aug.. 67,953 48,194 26,621 16,053 4,096 6,815 ,142 520 19,759 910 6,529 2,000 10,320 Sept.. 69,311 48,068 26,413 16,076 4,114 6,754 ,208 579 21,243 1,025 7,636 2,042 10,540 Oct.*1. 67,671 47,831 26,344 15,810 4,099 6,529 182 5; 677 19,840 6,384 2,078 68,524 47,811 26,132 15,859 4,008 6,545 5,306 5,820 20,713 2,127 1 Beginning with 1959, includes data for Alaska and Hawaii. NOTE.—Monthly data are at seasonally adjusted annual rates. Beginning with 1959, figures are Census Bureau estimates. Data before 1959 are joint estimates of the Depts. of Commerce and Labor. NEW HOUSING STARTS (In thousands of units) Annual rate, By area By type of ownership Government- Period (priv Q at e A only) Total Non- Private underwritten Metro- metro- Total N fa o rm n- politan politan Total fam 1- ily fam 2- ily M fam ul i t l i y - Public Total FHA VA 1955 1.646 1.627 19 670 277 393 1956 ,349 ,325 24 465 195 271 1957 ,224 ,175 49 322 193 128 1958 ,382 ,314 68 439 337 102 1959 ,554 1,077 477 ,517 1,234 56 227 37 458 349 109 I960 ,296 889 407 ,252 995 44 213 44 336 261 75 1961 ,365 948 417 ,313 975 44 295 52 328 244 83 1962 ,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 .591 1,119 472 1,557 972 54 532 33 264 205 59 1964 Oct 1.522 1,495 146 101 45 144 92 5 47 2 24 19 5 Nov. 1,505 1,480 115 78 37 112 69 4 39 3 21 16 5 Dec 1,610 1,575 98 70 28 97 59 3 35 2 17 13 4 1965 Jan.. 1,442 1,417 86 59 27 82 52 3 27 4 17 13 4 Feb ,482 1,468 88 63 25 85 51 3 31 2 16 12 4 Mar 1,489 1.465 125 91 34 121 77 4 40 4 20 16 4 1,552 ,532 155 103 52 152 100 5 48 3 22 17 5 May 1,516 ,501 162 111 52 158 102 5 50 5 24 19 5 [,566 ,539 162 115 48 156 100 6 50 7 25 19 5 Ju|y 1,473 ,447 144 95 49 141 94 5 43 3 22 17 5 1,422 1,409 138 95 43 135 88 5 42 3 22 18 5 Sept V1,449 V1,432 *126 88 38 P124 80 4 40 P2 21 17 4 Oct V1,402 V1,371 *135 95 41 *>133 90 4 39 *>3 22 18 4 NOTE.—Beginning with 1959, Census Bureau series includes both farm available by area or type of structure. Data from Federal Housing and norfarm series developed initially by the Bureau of Labor Statistics. Admin, ard 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

1780 EMPLOYMENT DECEMBER 1965 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons unless otherwise indicated) Civilian labor force S.A. Period i p T n o s o N t p t i a u t .S u l l a t . n i A t o o i . o n n n a - l l N ab N o o t . r S in . f A o t . r h c e e T l f S a o o b . r A t c o a e . r l Total Total E In m c n u p o l l t n o u a y ra g e l r d i 1 - In U pl n o e y m ed - U (p n e e m r S r a m . e t A c e p n e 2 . t l n o t y ) industries agriculture 1959 123,366 51,420 71,946 69,394 65,581 59,745 5,836 3,813 5 5 I960 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 Nov 134,952 58,055 77,140 74,409 70,755 66,084 4,671 3,654 4.9 Dec 135,135 58,568 77,432 74,706 71,004 66,463 4,541 3,702 5.0 1965—Jan 135,302 59,603 77,621 74,914 71,284 66,771 4,513 3,630 4.8 Feb 135,469 59,051 77,755 75,051 71,304 66,709 4,595 3,747 5 0 Mar 135,651 59,039 77,647 74,944 71,440 66,890 4,550 3,504 4.7 Apr . ... 135,812 58,504 78,063 75,377 71,717 66,874 4,843 3,660 4.9 May 135,982 57,556 78,127 75,443 71,937 66,979 4,958 3,506 4.6 June . . • • 136,160 55,477 78,356 75,676 72,118 67,459 4,659 3,558 4.7 July 136,252 55,102 78,874 76,181 72,766 68,092 4,674 3,415 4.5 Aug 136,473 56,310 78,465 15,112 72,397 67,821 4,576 3,375 4.5 SeDt 136,670 58,626 78,206 75,483 72,182 67,777 4,405 3,301 4.4 Oct 136,862 58,149 78,538 75,778 72,486 67,935 4,551 3,292 4.3 Nov 137,043 58,445 78,847 76,052 72,839 68,595 4,244 3,213 4.2 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Information relating to persons 14 years of age and over is ob- 2 per cent of civilian labor force. tained on a sample basis. Monthly data relate to the calendar week that 3 Inclusion of figures for Alaska and Hawaii beginning with 1960 in- contains the 12th day; annual data are averages of monthly figures, creased population by about 500,000 and total labor force by about Bureau of Labor Statistics. 300,000. Most of the increase was in nonagricultural industries. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in f g ac- Mining c C o o n t n i s o t t r n r a u c c t - T ti H o ra e n n u s & t p il o i p t r i u t e a b s - - Trade Finance Service G m ov e e n r t n- 1959 l 53,297 16,675 732 2,960 4,011 11,127 2,594 7,115 8,083 I960 54,203 16,796 712 2,885 4,004 11,391 2,669 7,392 8,353 1961 53,989 16,326 672 2,816 3,903 11,337 2,731 7,610 8,594 1962 55,515 16,853 650 2,902 3,906 11,566 2,800 7,947 8,890 1963 r 56,602 16,995 635 2,963 3,903 11,778 2,877 8,226 9,225 1964 r 58,156 17,259 633 3,056 3,947 12,132 2,964 8,569 9,595 SEASONALLY ADJUSTED 1964—Nov.r 58,879 17,477 636 3,124 3,972 12,250 2,994 8,674 9,752 Dec.r 59,163 17,565 635 3,179 3,994 12,303 2 999 8,705 7,783 1965—Jan.r 59,295 17,638 634 3,185 3,926 12,374 3,003 8,732 9,803 Feb.r 59,581 17,703 634 3,211 3 985 12,423 3 013 8,771 9 841 Mar.r 59,814 17,762 632 3,238 4,017 12,460 3,023 8,794 9,888 Apr.r 59,846 17,803 629 3,145 4,013 12,494 3,024 8,814 9,924 May r 60,032 17,835 627 3 188 4 020 12 532 3 032 8,843 9 955 June r 60,290 17,943 626 3,195 4,034 12,580 3,041 8,857 10,014 Julv r 60,501 18,032 633 3,154 4 031 12 619 3 049 8,929 10 054 Aug.r 60,621 18,072 627 3,189 4,049 12,600 3,053 8,946 10,085 Sept 60,756 18,098 617 3,186 4,067 12,641 3,061 8,967 10,119 Oct.p 60,975 18,159 623 3,198 4,070 12,681 3,067 9,011 10 166 Nov.3* 61,268 18,272 625 3,251 4,079 12,724 3,074 9,040 10,203 NOT SEASONALLY ADJUSTED 1964—Nov.r 59,405 17,589 640 3,227 3,984 12 448 2 982 8 648 9 887 Dec r 59,896 17,547 633 3,007 4,002 13,084 2,981 8,627 10,015 1965 Jan r 58,234 17,396 619 2,800 3,863 12,190 2,973 8,557 9,836 Feb r 58,341 17,473 616 2,713 3,917 12,112 2,986 8,604 9,920 Mar.r 58,784 17,578 615 2,820 3,965 12,167 2,999 8,662 9,978 Apr r ... 59,471 17,659 623 2,978 3,977 12,418 3,012 8,796 10,008 May r 60,000 17,745 629 3,223 4,008 12,437 3 029 8 905 10 024 60,848 18,027 640 3,412 4,070 12,596 3,062 9,008 10,033 July r 60,694 18,016 641 3,476 4 083 12 583 3 098 9 081 9 716 Aug.r 60,960 18,211 640 3,575 4,098 12,574 3,102 9,062 9,698 Sent 61,515 18,428 627 3,495 4,112 12,639 3,073 9,039 10,102 Oct.p 61,757 18,406 630 3,460 4,103 12,733 3,064 9,065 10 296 Nov.? 61,821 18,393 629 3,358 4,091 12,929 3,062 9,013 10,346 i 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 a*e 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

DECEMBER 1965 EMPLOYMENT AND EARNINGS 1781 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1964 196S 1964 1965 Nov. Sept. Oct.? NOV.P Nov. Sept. Oct.* Nov.* Total. 12,960 13,457 13,500 13,601 13,078 13,773 13,747 13,722 Durable goods 7,349 7,781 7,793 7,863 7,412 7,887 7,895 7,932 Ordnance and accessories 101 105 107 109 102 106 108 111 Lumber and wood products 528 527 529 532 530 550 542 534 Furniture and fixtures 343 357 358 362 348 364 366 367 Stone, clay, and glass products 494 500 500 502 498 519 511 507 Primary metal industries 1,044 1,068 1,048 1,051 1,029 1,069 1,034 1,036 Fabricated metal products 926 983 986 1,004 937 999 1,004 1,015 Machinery except electrical 1,140 1,218 1,226 1,239 1,126 1,211 1,214 1,223 Electrical machinery 1,065 1,163 1,180 1,193 1,084 1,180 1,201 1,214 Transportation equipment 1,146 1,267 1,262 1,270 1,175 1,270 1,290 1,302 Instruments and related products 236 251 252 253 238 254 254 256 Miscellaneous manufacturing industries 326 342 345 348 345 365 371 367 Nondurable goods 5,611 5,676 5,707 5,738 5,666 5,886 5,852 5,790 Food and kindred products 1,163 1,129 1,141 1,160 1,183 1,266 1,229 1,180 Tobacco manufactures 80 68 70 68 87 86 86 74 Textile-mill products 804 825 828 832 808 832 835 836 Apparel and other finished textiles 1,175 1,205 1,212 1,208 1,187 1,229 1,229 1,219 Paper and allied products 491 499 499 502 495 506 504 506 Printing, publishing, and allied industries.... 606 621 626 629 610 626 631 633 Chemicals and allied products 531 546 545 547 528 547 544 543 Products of petroleum and coal 111 111 110 110 110 113 111 109 Rubber products 341 362 365 371 347 369 372 377 Leather and leather products 309 310 311 311 311 312 311 313 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 Nov. Sept. Oct.* Nov.* Nov. Sept. Oct.* Nov.* Nov. Sept. Oct.* Nov.* Total 40.9 40.9 41.3 41.4 104.30 107.83 108.88 109.30 2.55 2.63 2.63 2.64 Durable goods 41.7 41.6 42.1 42.2 113.42 117.18 118.58 119.00 2.72 2.81 2.81 2.82 Ordnance and accessories 40.5 41.9 42.2 42.8 124.95 131.15 131.98 134.59 3.07 3.13 3.12 3.13 Lumber and wood products 40.6 40.5 41.1 41.6 85.01 90.61 91.08 90.01 2.12 2.21 2.20 2.19 Furniture and fixtures 41.6 40.9 41.5 41.8 86.73 89.24 90.73 90.52 2.07 2.14 2.15 2.15 Stone, clay, and glass products 41.8 41.9 41.8 42.0 107.26 112.10 112.52 111.99 2.56 2.65 2.66 2.66 Primary metal industries 42.2 41.8 41.4 41.4 130.83 133.44 130.06 130.79 3.13 3.20 3.18 3.19 Fabricated metal products 42.0 41.6 42.3 42.4 112.98 116.48 118.30 118.72 2.69 2.78 2.79 2.80 Machinery except electrical 42.9 43.0 43.5 43.7 123.11 127.12 129.47 129.77 2.89 2.97 2.99 2.99 Electrical machinery 40.8 40.5 41.0 41.1 103.32 106.08 107.12 107.79 2.52 2.60 2.60 2.61 Transportation equipment 41.9 41.8 43.5 43.5 132.71 135.01 142.68 143.44 3.13 3.23 3.25 3.26 Instruments and related products 41.0 41.5 41.6 41.6 106.14 108.58 109.52 110.20 2.57 2.61 2.62 2.63 Miscellaneous manufacturing industries.. 39.8 39.8 40.2 40.3 83.20 85.20 86.88 86.67 2.08 2.13 2.14 2.14 Nondurable goods 39.9 40.1 40.1 40.3 92.17 95.68 95.68 96.32 2.31 2.38 2.38 2.39 Food and kindred products 41.1 40.7 41.0 41.2 98.29 100.19 100.19 101.02 2.38 2.42 2.42 2.44 Tobacco manufactures 38.4 37.8 37.6 38.5 73.92 78.41 77.42 81.79 1.93 1.99 1.98 2.13 Textile-mill products 41.5 41.7 41.8 41.9 76.68 78.62 79.99 80.79 1.83 1.89 1.90 1.91 Apparel and other finished textiles 36.4 36.0 36.4 36.5 65.70 67.33 67.52 67.34 1.81 1.86 1.86 1.85 Paper and allied products • 42.5 43.0 43.4 43.5 109.82 116.48 117.12 116.31 2.59 2.69 2.68 2.68 Printing, publishing, and allied industries 38.5 38.6 38.4 38.8 114.82 120.28 119.27 119.58 2.99 3.10 3.09 3.09 Chemicals and allied products 41.6 42.2 41.9 41.9 118.14 123.65 122.06 122.77 2.84 2.93 2.92 2.93 Products of petroleum and coal 41.8 42.7 42.3 42.3 134.69 142.68 140.44 142.21 3.23 3.28 3.32 3.37 Rubber products 41.4 41.6 42.4 42.6 105.73 110.46 112.36 113.05 2.56 2.63 2.65 2.66 Leather and leather products 38.0 38.4 38.6 38.5 69.56 71.82 71.82 72.77 1.85 1.90 1.90 1.91 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

1782 PRICES DECEMBER 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 t s - y o n F i p a n i n e u s g h r d r 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 a i c e n n r a g e d d a - - g O s a o e t n o r h v d d e - r s tion tion ices 1929 59.7 55.6 85.4 1933 45.1 35.3 60.8 1941 5i.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 A 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 I960 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 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 June 110.1 110.1 108.2 108.8 111.0 103.4 107.8 103.1 106.9 111.2 115.7 122.2 111.0 115.7 111.0 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 Au£ 110.0 110.1 108.2 109.0 111.4 103.5 107.7 102.9 106.4 111.0 115.6 122.8 109.0 114.3 112.6 Sept 110.2 109.7 108.6 109.1 111.6 104.3 107.9 103.1 107.2 111.0 115.8 122.8 109.2 114.8 112.7 Oct 110.4 109.7 109.0 109.2 112.1 106.9 107.9 103.3 107.8 111.2 116.2 123.0 109.2 115.2 113.3 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. The new series index begins with January 1964. WHOLESALE PRICES: SUMMARY (1957-59= 100) Other commodities All Farm Proc- Period m c t o o ie m d s i - - p u r c o t d s - f e o s o se d d s Total t T e il e t e c x s . - , Hides, Fuel, C ic e h a t e c l m . s, - R b e u t e c b r . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s . t , - c M e h r i a y n - - F t e u u t r r c n e . , i- N t m m a o l i e l n n i - c - - b T a e c t 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—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. 98.4 103.3 120.3 101.6 107.4 98.4 97.6 92.9 100.4 100.0 105.7 103.7 98.0 101.9 108.1 108.9 June 102.8 100.3 106.1 102.5 101.9 107.7 98.7 97.4 92.8 100.3 100.0 105.9 103.8 98.0 102.0 107.6 111.0 July 102.9 100.0 106.6 102.5 101.9 108.8 98.7 97.4 93.0 100.5 99.9 105.8 103.7 97.8 101.9 107.6 112.6 Aug 102.9 99.1 106.7 102.7 101.9 112.2 99.0 97.1 93.2 101.8 99.9 106.2 103.8 97.7 101.6 107.6 111.5 Sep 103.0 99.5 106.7 102.7 '"102.1 111.3 99.2 97.2 93.3 102.0 100.0 106.2 103.8 97.7 101.6 107.7 111.5 Oct 103.1 99.5 107.0 102.8 102.1 112.9 99.5 97.5 93.4 101.7 100.4 106.3 103.9 97.8 101.6 107.7 111.2 See next page for composition of other commodities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 PRICES 1783 WHOLESALE PRICES: DETAIL (1957-59= 100) 1964 1965 1964 1965 Group Group Oct. Aug. Sept. Oct, Oct. Aug. Sept. Oct. Farm Products: Pulp, Paper, and Allied Products: Fresh and dried produce 98.2 85.5 96.1 95.6 Woodpulp 97.5 98.1 98.1 98.1 Grains 88.9 88.3 89.3 88.6 Wastepaper 92.2 97.5 97.3 104.5 Livestock and poultry 85.8 106.4 102.6 103.2 Paper 104.0 104.1 104.1 104.5 Plant and animal fibers 93.8 90.5 90.0 89.9 Paperboard 96.4 96.3 96.4 96.5 Fluid milk 104.5 103.9 104.8 105.9 Converted paper and paperboard. 98.1 99.4 99.6 99.7 Eggs 97.7 100.0 105.9 105.1 Building paper and board , 94.3 '93.3 93.8 Hay and seeds 111.0 106.6 105.4 102.7 Other farm products 99.3 98.3 100.8 100.1 Metals and Metal Products: Processed Foods: Iron and steel , 100.7 101.4 101.2 101.2 Nonferrous metals 110.4 116.5 117.0 117.4 Cereal and bakery products 108.2 108.8 109.1 109.4 Metal containers 105.6 108.3 108.3 108.3 Meat, poultry, and fish 93.2 106.3 105.3 104.9 Hardware 104.8 106.4 106.5 106.7 Dairy products and ice cream 108.9 108.5 109.1 109.4 Plumbing equipment 102.9 103.9 103.8 103.8 Canned and frozen fruits and veg- Heating equipment 91.8 91.9 91.9 91.9 etables 102.7 100.4 101.8 105.9 Fabricated structural metal products, 99.6 101.7 101.8 101.8 Sugar and confectionery 105.8 109.1 108.8 109.4 Fabricated nonstructural metal prod- Packaged beverage materials 97.2 93.4 93.4 93.4 ucts 108.2 109.9 109.9 109.9 Animal fats and oils 109.8 114.1 119.7 122.2 Crude vegetable oils 96.1 93.2 100.3 102.1 Machinery and Motive Products: Refined vegetable oils 91.2 90.0 91.0 92.9 Vegetable oil end products 90.4 101.2 101.2 101.2 Agricultural machinery and equip... 112.9 114.8 115.0 114.8 Miscellaneous processed foods 109.1 114.8 114.3 114.1 Construction machinery and equip.. 112.4 115.6 115.6 115.8 Metalworking machinery and equip. 114.0 117.4 117.9 118.3 Textile Products and Apparel: General purpose machinery and equipment 104.5 105.3 105.7 106.2 Cotton products 99.0 100.4 100.6 100.7 Miscellaneous machinery 104.9 105.1 104.9 105.1 Wool products 103.1 105.0 105.2 105.4 Special industry machinery and Man-made fiber textile products 96.1 94.7 r94.2 93.4 equipment (Jan. 1961 = 100) 106.0 108.0 108.2 108.3 Silk products 116.6 132.8 134.9 140.3 Electrical machinery and equip 96.3 96.7 96.6 96.5 Apparel 103.3 103.9 104.2 104.3 Motor vehicles 100.7 100.7 100.5 n.a. Other textile products 120.7 122.8 127.7 127.1 Transportation equip., R.R. rolling stock (Jan. 1961= 100) 100.6 101.0 101.0 101.0 Hides, Skins, Leather, and Products: Hides and skins 95.4 133.4 124.9 125.6 Furniture and Other Household Dura- Leather 104.8 112.5 110.9 111.9 bles: O Fo th o e tw r l e e a a r ther products 1 1 0 0 9 3 . . 1 6 1 1 0 1 8 0. . 2 8 1 1 0 1 9 0 . . 3 3 1 1 1 0 2 8 . . 9 9 H Co o m us m eh e o rc ld ia l f u f r u n r i n t i u t r u e re 1 1 0 0 5 3 . . 5 2 1 10 0 3 6 . . 7 1 1 10 0 3 6 . . 7 2 1 1 0 0 6 3. . 7 3 Fuels and Related Products, and Power H Fl o o u o s r e c h o o v ld e ri a n p g p s liances 9 91 9 . . 2 0 9 8 7 8 . . 5 6 9 8 7 8 . . 5 6 9 8 7 8 . . 5 6 C C o o k al e 1 9 0 7 7 . . 7 3 1 9 0 5 7 . . 8 3 1 '9 0 6 7 . . 6 3 1 9 0 7 7 . . 2 3 T O e th le e v r i s h i o o u n, s e r h a o d l i d o s d , u a r n a d b l p e h g o o n o o d g s raphs. 1 8 0 7 4 . . 3 3 1 8 0 4 4 . . 4 9 1 8 0 4 5 . . 4 0 1 8 0 4 5 . . 4 0 Gas fuels (Jan. 1958= 100) 120.4 123.9 125.3 126.4 Electric power (Jan. 1958= 100) 101.5 100.8 100.8 100.8 Nonmetallic Mineral Products: Petroleum products, refined 91.9 96.4 96.4 96.6 Flat glass 103.1 100.2 '99.9 99.9 Chemicals and Allied Products: Concrete ingredients 102.8 103.2 103.2 103.4 Concrete products 101.1 101.5 101.6 101.6 Industrial chemicals 94.3 95.0 95.0 95.3 Structural clay products 104.6 105.3 105.4 105.4 Prepared paint 104.8 105.7 105.7 105.9 Gypsum products 108.6 100.6 '99.9 98.8 Paint materials 90.5 89.2 89.2 89.7 Asphalt roofing 91.2 92.1 '95.0 94.7 Drugs and Pharmaceuticals 94.6 93.9 93.9 93.9 Other nonmetallic minerals 101.5 101.4 101.3 101.3 Fats and oils, inedible 107.7 104.4 108.4 110.0 Mixed fertilizers 104.3 105.7 105.9 105.9 Fertilizer materials 99.3 102.1 102.5 103.4 Tobacco Products and Bottled Bever- Other chemicals and products.. 99.6 99.8 '99.9 100.0 ages : Rubber and Products : Tobacco products 106.1 106.1 106.1 106.1 Alcoholic beverages 100.8 100.7 100.9 100.9 Crude rubber 91.3 88.6 88.7 89.0 Nonalcoholic beverages 128.1 128.5 128.5 128.5 Tires and tubes 88.0 91.1 91.1 91.1 Miscellaneous rubber products. 96.5 97.4 97.5 97.6 Miscellaneous Products: Lumber and Wood Products : Toys, sporting goods, small arms... 101.1 102.7 103.0 103.0 Manufactured animal feeds 115.3 116.9 116.8 116.2 Lumber 100.4 102.5 103.1 103.1 Notions and accessories 99.1 99.1 99.1 99.1 Millwork 109.0 107.8 107.8 107.8 Jewelry, watches, photo equipment.. 103.9 105.1 105.1 105.1 Plywood 91.2 94.6 93.3 91.7 Other miscellaneous products 103.1 104.4 104.6 104.0 NOTE.—Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1784 NATIONAL PRODUCT AND INCOME DECEMBER 1965 GROSS NATIONAL PRODUCT (In billions of dollars) 1964 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 III IV II III Gross national product. 103.1 55.6 124.5 284.8 503.8 520.1 560.3 589.2 628.7 634.8 641.1 656.4 665.9 677.5 Final purchases 101.4 57.2 120.1 278.0 500.2 518.1 554.3 583.5 623.9 631.0 633.6 647.6 659.2 671.3 Personal consumption expenditures. 77.2 45.8 80.6 191.0 325.2 335.2 355.1 373.8 398.9 404.6 405.9 416.9 424.4 432.2 Durable goods 9.2 3.5 9.6 30.5 45.3 44.2 49.5 53.4 58.7 60.5 57.9 63.9 63.7 65.0 Nondurable goods 37.7 22.3 42.9 98.1 151.3 155.9 162.6 168.0 177.5 179.8 180.9 183.0 187.6 191.1 Services ' 30.3 20.1 28. 62.4 128.7 135.1 143.0 152.3 162.6 164.3 167.1 170.0 173.1 176.1 Gross private domestic investment 16.2 1.4 17.9 54.1 74.8 71.7 83.0 86.9 92.9 92.6 97.7 102.4 101.1 102.0 Fixed investment 14.5 3.0 13.4 47.3 71.3 69.7 77.0 81.2 88.1 88.8 90.2 93.7 94.4 95.9 Nonresidential , 10.6 2.4 9.5 27.9 48.4 47.0 51.7 54.3 60.5 61.6 63.5 66.0 66.4 68.3 Structures 5.0 .9 2.9 9.2 18.1 18.4 19.2 19.7 21.1 21.1 21.5 21.8 22.7 23.2 Producers' durable equipment. 5.6 1.5 6.6 18.7 30.3 28.6 32.5 34.6 39.4 40.5 42.0 44.2 43.7 45.1 Residential structures 4.0 .6 3.9 19.4 22.8 22.6 25.3 26.9 27.5 27.2 26.7 27.7 28.0 27.6 Nonfarm 3.8 .5 3.7 18.6 22.2 22.0 24.8 26.3 27.0 26.6 26.2 27.1 27.5 27.1 Change in business inventories 1.7 -1.6 4.5 6.8 3.6 2.0 6.0 5.7 4.8 3.8 7.5 8.7 6.7 6.1 Nonfarm 1.8 -1.4 4.0 6.0 3.3 1.7 5.3 4.9 5.4 4.6 7.8 9.3 7.1 6.0 Net exports of goods and services. 1.1 .4 1.3 1.8 4.1 5.6 5.1 5.9 8.6 8.8 8.9 6.2 7.5 8.1 Exports 7.0 2.4 5.9 13.8 27.2 28.6 30.3 32.4 37.0 37.3 38.4 34.8 39.8 40.0 Imports 5.9 2.0 4.6 12.0 23.2 22.9 25.1 26.4 28.5 28.5 29.5 28.6 32.3 31.8 Government purchases of goods and services. 8.5 8.0 24.8 37.9 99.6 107.6 117.1 122.6 128.4 128.7 128.6 130.9 132.9 135.2 Federal 1.3 2.0 16.9 18.4 53.5 57.4 63.4 64.4 65.3 64.9 64.3 64.9 65.9 67.1 National defense 13.8 14.1 44.9 47.8 51.6 50.8 49.9 49.5 48.8 48.9 49.4 50.8 Other 3. 4.3 8.6 9.6 11.8 13.6 15.4 15.4 15.5 16.0 16.5 16.3 State and local 7.2 6.0 7.9 19.5 46.1 50.2 53.7 58.3 63.1 63.8 64.3 66.0 67.0 68.1 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 487.8 497.3 530.0 550.0 577.6 582.6 584.7 597.5 601.4 609.7 NOTE.—Dept. of Commerce seasonally adjusted quarterly totals at the U.S. national accounts, see National Income, 1954 Edition, and U.S. annual rates. For changes in definitions of components reflected in Income and Output (1958), both supplements to the Survey of Current the Aug. 1965 revision by Dept. of Commerce, see Aug. 1965, Survey of Business. Current Business. For broad concepts and most definitions underlying NATIONAL INCOME (In billions of dollars) 1964 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 III IV National income. 86.8 40.3 104.2 241.1 414.5 427.3 457.7 481.1 514.4 519.5 526.3 541.4 550.3 558.4 Compensation of employees 51.1 29.5 64.8 154.6 294.2 302.6 323.6 341.0 365.3 369.0 375.4 383.1 388.7 395.2 Wages and salaries 50.4 29.0 62.1 146.8 270.8 278.1 296.1 311.2 333.5 336.8 342.6 349.8 355.0 360.9 Private 45.5 23.9 51.9 124 A 222.1 225.9 240.1 251.6 269.2 271.7 276.5 282.9 287.3 291.9 Military .3 .3 1.9 5.0 9.9 10.2 10.8 10.8 11.7 11.7 11.9 11.8 11.8 12.3 Government civilian 4.6 4.9 8.3 17.4 38.8 42.0 45.2 48.8 52.6 53.3 54.3 55.0 55.9 56.7 Supplements to wages and salaries .7 .5 2.7 7.8 23.4 24.6 27.5 29.8 31.8 32.2 32.7 33.4 33.8 34.2 Employer contributions for social insurance .1 2.0 4.0 11.4 11.8 13.7 15.0 15.4 15.5 15.7 16.1 16.3 16.5 Other labor income '.6 .4 .7 3.8 12.0 12.7 13.9 14.8 16.5 16.7 17.1 17.3 17.5 17.7 Proprietors' income 15.1 5.9 17.5 37.5 46.2 48.4 50.1 50.8 51.1 51.4 51.8 51.9 54.6 54.6 Business and professional 9.0 3.3 11. 24.0 34.2 35.6 37.1 37.8 39.1 39.4 39.6 39.9 40.1 40.4 Farm 6.2 2.6 6.4 13.5 12.0 12.8 13.0 13.0 12.0 12.0 12.2 12.0 14.5 14.2 Rental income of persons 5.4 2.0 3.5 9.4 15.8 16.0 16.7 17.6 18.2 18.3 18.5 18.5 18.6 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 65.5 64.9 71.7 72.0 73.3 Profits before tax 10.0 1.0 77.7 42.6 49.7 50.3 55.4 58.6 64.8 65.3 65.9 73.1 73.7 74.4 Profits tax liability 1.4 .5 7.6 17.8 23.0 23.1 24.2 26.0 27.6 27.8 28.1 29.1 29.4 29.6 Profits after tax 8.6 .4 10.1 24.9 26.7 27.2 31.2 32.6 37.2 37.5 37.8 44.0 44.4 44.8 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 18.6 Undistributed profits 2.8 5.7 16.0 13.2 13.5 16.0 16.8 19.9 20.1 20.0 26.2 26. 26.2 -1.6 Inventory valuation adjustment .5 -2.5 -5.0 .2 i .3 A -.3 .2 -1.0 -1.7 -2.1 Net interest 4.7 3.2 2.0 8.4 10.0 11.6 13.6 15.2 15.4 15.7 16.1 16.4 16.7 4.1 NOTE.—Dept. of Commerce seasonally adjusted quarterly totals at annual rates. See also NOTE to previous table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 NATIONAL PRODUCT AND INCOME 1785 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1964 1965 Item 1929 1933 1941 1950 1960 1961 1962 1963 1964 III IV II III Gross national product 103.1 55.6 124.5 284.8 503.8 520.1 560.3 589.2 628.7 634.8 641.1 656.4 665.9 677.5 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 43.4 45.2 50.0 52.8 55.7 56.1 56.9 57.7 58.3 59.1 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 45.2 47.7 51.5 54.6 58.0 58.8 59.3 60.7 61.0 61.6 S B t 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 1. . 5 8 -1 1 . . 0 9 - 2 .7 .0 2. . 1 5 - 2 .7 .2 - 2 .5 .3 - 2 .7 .3 -2 2 . . 2 4 -4 2 . . 2 3 -4 2 . . 6 3 -2 2 . . 8 3 Plus: Subsidies less current surplus of government enterprises , -.1 .1 .2 .2 1.4 1.4 .7 1.2 1.3 1.5 1.5 1.5 1.2 Equals: National income 86.8 40.3 104.2 241.1 414.5 427.3 457.7 481.1 514.4 519.5 526.3 541.4 550.3 558.4 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 65.5 64.9 71.7 72.0 73.3 Contributions for social insurance .2 .3 2.8 6.9 20.7 21.4 24.0 26.8 27.8 28.0 28.4 29.1 29.4 29.9 Excess of wage accruals over disbursements -.1 Plus: Government transfer payments .9 1.5 2.6 14.3 26.6 30.4 31.2 33. 34.2 34.1 34.4 36.0 35.1 38.9 Net interest paid by government and consumer 2.5 1.6 2.2 7.2 15.1 15.0 16.1 17. 19.1 19.4 19.5 19.9 20.4 20.8 Dividends 5.8 2.0 4.4 8.8 13.4 13.8 15.2 15. 17.2 17.4 17.7 17.8 18.2 18.6 Business transfer payments .7 .5 .8 2.0 2.1 2. 2.3 2.3 2.4 2.3 2.3 2.3 .6 1.9 Equals: Personal income 47.0 96.0 227.6 416.8 442.6 464.8 495.0 499.1 507.1 516.6 524.9 535.9 85.9 401.0 Less: Personal tax and nontax payments... 1.5 3.3 20.7 52.4 57.4 60.9 59.2 58.8 60.7 64.8 66.0 64.6 2.6 50.9 Equals: Disposable personal income 45.5 92.7 206.9 364.4 385.3 403.8 435.8 440.3 446.4 451.9 458.9 471.3 83.3 350.0 Less: Personal outlays 46.5 81.7 193.9 343.2 363.7 383.4 409.5 415.3 416.9 428.1 436.0 444.1 P C e o r n s s o u n m al e c r o i n n s te u r m es p t t i p o a n y e m x e p n e t n s ditures., 7 7 9 7 . . 1 2 45.8 80.6 19 2 1 . . 4 0 3 3 3 2 3 5 . . 0 2 335.2 355.1 37 9 3 398.9 404.6 405.9 416.9 424.4 432.2 Persona! transfer payments to for- .5 .9 7.3 7.6 10.0 10.2 10.4 10.6 11.0 11.3 eigners 1.5 .4 .5 .2 .2 .5 .5 .6 .5 .6 .6 .6 .6 Equals: Personal saving. .3 13.1 21.6 20 -.9 11.0 17.0 21.2 26.3 25.0 29.5 23.8 23.0 27.2 Disposable personal income in constant (1958) 4.2 dollars 150.6 112.2 190.3 249.6 340.2 350.7 367.6 380.6 406.5 410.7 414.5 418.4 422.2 432.4 I NOTE.—Dept. of Commerce seasonally adjusted quarterly totals at annual rates. See also NOTE to table at top of previous page. PERSONAL INCOME (In billions of dollars) 1964 1965 Item 1963 1964 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Total personal income. 464.8 495.0 502.8 506.6 512.0 1515.8 515.7 518.4 520.7 525.3 528.8 530.5 532.0 545.7 540.2 Wage and salary disbursements 311.2 333.5 339.4 342.6 346.2 347.2 349.8 352.2 352.7 355.2 356.9 359.2 360.7 363.3 366.5 Commodity-producing industries.. 125.7 133.9 135.2 137.4 139.8 140.3 141.4 142.6 142.3 143.3 144.2 145.1 145.8 146.0 147.2 Manufacturing only 100.6 107.2 707.2 110.1 111.9 112.6 113.6 114.6 114.4 115.0 115.7 116.7 117.3 117.6 118.7 Distributive industries 76.0 81.1 82.6 83.3 83.8 84.0 84.9 85.8 85.8 86.5 86.7 87.2 87.5 87.8 88.2 Service industries 49.9 54.1 55.6 55.8 56.2 56.4 56.7 56.9 57.2 57.7 57.9 58.5 58. 59.2 59.7 Government 59.6 64.3 66.1 66.1 66.4 66.6 66.8 67.0 67.4 67.7 68.0 68.3 68.7 70.2 71.3 Other labor income. 14.8 16.5 17.0 17.1 17.1 17.2 17.3 17.4 17.4 17.5 17.6 17.7 17.7 17.7 17.8 Proprietors' income 50.8 51.1 51.4 51.8 52.3 52.2 51.9 51.8 52.9 54.8 56.0 54.9 54.4 54.5 55.0 Business and professional. 37.8 39.1 39.4 39.6 39.9 39.8 39.9 40.1 40.0 40. 40.1 40.3 40.4 40.5 40.6 Farm 13.0 12.0 12.0 12.2 12.4 12.4 12.0 11.7 12.9 15.9 14.6 14.0 14.0 14.4 14.7 Rental income 17.6 18.2 18.4 18.5 18.5 18.5 18.5 18.5 18.6 18.6 18.6 18.6 18.6 18.7 18.6 Dividends 15.8 17.2 17.5 17.7 18.1 17.8 17.8 17.8 18.0 18.6 18.5 18.6 18.8 18.9 18.1 Personal interest income. 31.1 34.3 35.1 35.2 35.5 35.7 36.0 36.2 36.5 37.0 37.2 37.5 37.7 37.9 36.7 Transfer payments 35.2 36.6 36.6 36.5 37.0 140.1 37.4 37.6 37.8 37.2 37.6 37.7 48.4 39.0 37.4 Less: Personal contributions for social insurance 11.8 12.4 12.6 12.7 12.8 13.0 13.0 13.1 13.1 13.1 13.2 13.3 13.4 13.4 13.5 Nonagricultural income. 447.4 478.7 486.5 490.4 495.3 1499.1 499.5 502.7 503.4 506.1 508.5 511.4 513.6 527.5 521.5 Agriculture income 17.4 16.3 16.3 16.3 16.6 16.7 16.2 15.7 17.2 19.2 20.4 19.1 18.1 18.2 18.7 i Includes stepped-up rate of Govt. life insurance dividend payments NOTE.—Dept. of Commerce seasonally adjusted monthly totals at to veterans in the amount of $2.4 billion. 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

1786 FLOW OF FUNDS DECEMBER 1965 SAVINGS, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1963 1964 1965 Transaction category, or sector 1960 1961 1962 1963 1964 II III IV I II III IV I II I. Saving and investment 1 Gross national saving .. 122.9 119.7 134.5 144.1 158.0 142.4 1457 152.0 153.2 155.0 159.7 164.0 174.1 174.1 1 2 Households 72.0 75.8 82.1 85.9 98.4 83.6 85.9 91.8 93.4 99.5 99.3 101.3 101.9 101.9 2 2 Farm and noncorp. business 12.5 12.6 13.1 13.4 13.9 13.4 13.5 13.6 13.8 13.9 14.0 14.1 14.2 14.4 3 4 Corporate nonfin. business 34.4 35.6 41.8 44.3 49.4 43.8 45.5 45.2 48.7 49.3 50.2 49.4 55.6 55.5 4 2.5 -4.8 -4.8 -1.0 -5.0 .2 -.6 -.1 -3.9 -8.9 -5.1 -2.3 1.3 .9 5 6 State and local govt -1.9 -2.9 -1.4 -1.8 -2.1 -1.8 -1.8 -1.8 -2.2 -2.2 -2.0 -1.9 -2.5 -2.4 6 7 Financial sectors 3.3 3.3 3.8 3.2 3.4 3.2 3.1 3.2 3.5 3.4 3.4 3.3 3.6 3.8 7 8 Gross national investment 120.9 117.9 133.8 143.1 156.3 140.4 143.7 152.3 152.1 154.3 158.4 160.4 169.3 169.0 8 9 Consumer durable goods 45.3 44.2 49.5 53.4 58.7 52.6 54.1 54.9 57.4 59.1 60.5 57.9 63.9 63.7 9 10 Business inventories . . . 3.6 2.0 6.0 5.7 4.8 4.6 5.8 8.1 3.3 4.2 4.0 7.7 8.7 6.7 10 11 Gross pvt. fixed investment 71.3 69.7 77.0 81.2 88.1 80.1 82.0 84.3 86.5 86.8 88.8 90.2 93.7 94.4 11 12 Households 23.0 20.9 22.2 22.6 23.5 22.2 22.7 23.2 23.8 23.7 23.6 23.0 22.8 23.1 12 13 Nonfinan. business 47.7 48.1 54.2 57.6 63.7 56.9 58.2 60.0 61.8 62.2 64.4 66.3 69.9 70.4 13 14 Financial sectors .5 .7 .6 1.0 .9 1.0 1.1 1.1 .9 .9 .9 .8 .9 .8 14 15 Net financial investment .7 2.0 1.3 2.8 4.7 3.1 1.9 5.0 4.9 4.2 5.1 4.6 3.0 4.2 15 16 Discrepancy (1 -8) 2.0 1.8 .7 1.0 1.6 2.0 1.9 -.3 1.1 .7 1.3 3.6 4.7 5.1 16 II. Financial flows—Summary 17 Net funds raised—Nonfinan. sectors. 33.1 44.3 54.3 58.2 67.1 66.2 49.7 63.0 58.7 75.1 63.9 70.5 76.6 68.4 17 18 Loans and short-term securities.... 15.1 16.4 15.5 18.8 27.1 27.6 1.5 27.9 24.3 28.6 15.6 39.8 44.2 29.6 18 19 Long-term securities and mtgs 18.0 27.9 38.8 39.3 40.0 38.6 48.2 35.0 34.5 46.5 48.4 30.7 32.4 38.9 19 By sector 20 U.S. Government -2.0 7.6 7.8 5.0 6.7 9.7 -2.9 5.9 7.6 5.6 8.7 5.0 7.3 -1.2 20 21 Short-term mkt. securities 3.1 8.8 .5 1.4 4.0 8.0 -13.5 5.2 9.1 -1.0 -3.7 11.4 13.7 -.5 21 22 Other securities -5.6 -1.4 6.8 3.8 2.2 1.5 11.4 1.3 -.5 4.9 11.4 -7.0 -6.2 -.4 22 23 Loan participation certs .5 .3 .5 -.2 .5 .1 -.7 -.5 -1.1 1.7 .9 .6 -.3 23 24 Foreign borrowers 2.0 2.8 2.3 3.3 4.6 4.9 1.6 3.2 3.9 4.9 2.6 7.1 5.4 1.9 24 25 Loans 1.4 2.0 1.2 2.2 3.9 3.1 1.1 3.4 3.9 4.0 2.6 5.0 4.2 1.1 25 26 Securities .6 .8 1.0 1.0 .7 1.8 .5 2 .9 * 2.0 1.2 .8 26 27 Pvt. domestic nonfin. sectors 33.0 33.9 44.2 49.9 55.8 51.5 51.0 47.2 64.6 52.7 58.5 63.9 67.8 27 28 Loans 10.1 5.4 13.3 15.5 18.7 16.3 14.6 19!9 12.2 23.9 15.7 22.8 26.4 29.3 28 29 Consumer credit 4 5 1 7 5 5 6 7 6 9 6 5 6 9 6 6 7 4 7 2 7 7 6 0 9 6 8 7 29 30 Bank loans nee 2 9 2 2 4 8 6 0 7 6 6 2 4 3 11 5 2 7 9 7 4 7 13 2 14 5 14.7 30 31 Other loans 1 6 3.0 2.7 4.1 3.6 3.4 1.8 2.1 7.0 4.0 3.5 2.3 5.9 31 32 Securities and mortgages 22.9 28.6 31.0 34.4 37.1 35.2 36.4 34.0 35.0 40.7 37.0 35.7 37.4 38.5 32 33 State and local obligations . .. 3.6 4 9 5.0 6.7 5.9 7.0 7.0 7.1 4.2 6.4 6.0 6.8 8.2 6.7 33 34 Corporate securities 5.0 7.1 5.1 3.6 5.4\ 3.4 4.0 2.2 6.2 7.1 5.3 2.9 4.6 6.8 34 35 1- to 4-fantily mortgages 10.5 11 4 13.0 15.2 75.Si 75.7 16.0 15.2 15.6 16.3 15.8 15.4 15.2 75.5 35 36 Other mortgages 3.8 5.1 7.9 9.0 10.1 9.2 9.5 9.4 8.9 10.9 9.9 10.6 9.4 9.5 36 37 Net sources of credit (=17) 33.1 44.3 54.3 58.2 67.1 66.2 49.7 63.0 58.7 75.1 63.9 70.5 76.6 68.4 37 38 Chg. in U.S. Govt. cash balance.. .9 * 1.3 .2 4.1 -4.9 -.8 -1.1 5.4 2.4 38 39 U.S. Govt lending 2.3 2.8 3.5 2!7 3.8 2.4 3.7 4.1 \i 4^9 3.4 3.*6 4.4 6.0 39 40 Foreign funds 3.4 2.5 2.8 2.3 2.4 6.8 -1.0 .3 3.3 1.0 3.8 3.4 3.7 40 41 Pvt. insur. & pension reserves.... 8.2 8.7 9.0 10.2 11.2 9.9 11.2 9.7 11'.0 12.1 10.2 11.6 9.5 12.8 41 42 Sources n e.c ... 4.4 3.7 3.2 4.2 5.4 2.4 3.0 1.2 4.1 6.4 4.2 6.8 12.9 -.2 42 43 Pvt. domestic nonfin. sectors 13.9 26.6 34.5 39.2 44.1 40.4 37.7 48.5 35.0 49.4 46.3 45.6 40.9 43.7 43 44 Liquid assets ... 9.3 24.9 31.5 37.3 33.0 36.4 32.7 48.3 27.5 29.3 31.5 43.6 33.4 36.1 44 45 Deposits 13.7 24.0 30.1 34.2 35.4 32.2 32.1 42.3 25.3 31.9 38.1 46.2 29.4 34.4 45 46 Demand dep. and currency -1.3 3.8 2.1 5.7 6.5 7.0 5.0 11.9 — 1.0 5.6 9.1 12.5 — 5.6 6.9 46 47 Time and svgs. accounts... 15.1 20.2 28.1 28.5 28.8 25.2 27.1 30.4 26.2 26.3 29.0 33.7 35.1 27.5 47 48 At commercial banks ... 5.4 9.0 15.0 13.4 13.1 10.4 13.1 15.4 77 5 10 6 12.2 18.1 22 0 75.2 48 49 At savings instit 9.6 11.2 13.0 15.1 15.7 14.9 14.0 15.0 74.7 15.7 16.8 15.6 13.1 72.5 49 50 Short-term U.S. Govt. sec... -4.4 1.0 1.4 3.1 -2.4 4.1 .6 6.0 2.2 -2.6 -6.6 -2.6 4.0 1.8 50 51 Other U.S. Govt. securities -.7 -1.3 1.6 3.3 1.3 5.2 .3 2.4 6.8 6.6 -2.5 3.8 51 5 5 5 2 3 4 Mem P L o v e : s t . s T c o s r e t e a c d l u i r t U it m . y S k . d t G e . b i o t n v s t t . r u se m c ents. . . -5 — 4 .1 . . 9 3 - 4 1 .3 . . 2 3 1. * 9 2 2 2 4. . . 7 2 0 — 7. . 7 9 .2 4 5 1 . . . 4 3 5 5 1 1 . . . 8 9 7 2 2 6 . . . 8 7 3 4 5. . 2 6* 1 4 3 . . 2 1 6.7 * -5 5 1 . . . 0 5 1 6 5 . . ( 3 — 5 3 . . 5 5 .3 5 5 5 2 4 3 III. Direct lending in credit markets 55 Total funds raised 33.1 44.3 54.3 58.2 67.1 66.2 49.7 63.0 58.7 75.1 63.9 70.5 76.6 68.4 55 56 Less change in U.S. Govt. cash.... .9 * 1.3 .2 4.1 -4.9 -.8 3.6 9 — 1.1 9 5.4 2.4 56 57 Total net of U.S. Govt. cash 32.2 44.3 53.0 58.5 66.9 62.1 54.6 63.8 55.2 76.0 65.1 71.4 71.2 66.0 57 58 Funds supplied directly to cr. mkts.. 32.2 44.3 53.0 58.5 66.9 62.1 54.6 63.8 55.2 76.0 65.1 71.4 71.2 66.0 58 59 Monetary authorities .8 1.5 1.9 2.6 3.2 2.3 4.5 3.2 1.0 2.1 6.4 4.1 3 6 59 60 Total .7 1.5 2.0 2.9 3.4 1.81 2.3 4.0 "> 9 1.6 2.5 6.6 4.5 3.2 60 61 Less change in U S Govt cash * .1 2 — 5! .8 — 5 — 3 4 1 — 5 61 62 Commercial banks, net 8.0 15.5 18.1 19.5 21.7 16.9 17.3 23.5 12.7 22.3 21.1 30.7 26.0 20.1 62 6 6 3 4 L T e o s t s a l chg. in U.S. Govt. cash... 9. . 0 9 15.7 19.5 1 - 9 .6 .1 22.2 * 2 4 1 . . 6 6 1 c 1 .7 n 2 - 4 .3 .1 1 3 7 . . 8 4 - 2 1 0 .5 .2 «' 1 3 5 1 . . 0 5 2 2 5 . . 9 0 6 6 4 3 65 Security issues .1 '.2 .1 .6 .1 .1 .9 .9 .6 .4 2.0 65 66 Nonbank finance, net 19.8 21.3 24.0 28.1 29.2 27.3 28.9 26.2 27.6 28.2 31.4 29.7 26.5 26.1 66 67 Total 22.1 23.7 28.7 34.5 33.6 36.3 39.0 31.1 32.2 38.4 32.9 31.0 34.2 37.2 67 68 Less credit raised 2.4 2.5 4.7 6.4 4.4 9.0 10.0 4.9 4.7 10.2 1.5 1.4 7.7 11.1 68 69 U.S. Government 2.3 2.8 3.5 2.7 3.8 2.4 3.7 4.1 3.4 4.9 3.4 3.6 4.4 6.0 69 70 Foreign 1.2 .6 1.2 .8 .4 5.0 -2.2 -.6 -1.3 2.3 -1.0 1.8 -1.2 .9 70 71 Pvt. domestic nonfin .2 2.6 4.4 4 9 8.7 8.2 5.6 6.2 9.8 17.5 8.2 -.6 11.5 9.4 71 72 Households 1.1 .7 -1.7 1.3 3.5 .1 2.4 5.8 2.7 9.2, 1.2 4.6 4.4 72 73 Business -4.6 .11 2.3 2.1 1.3 4.5 .6 1.7 2.0 2.6 -l!l -3.3 -3.6 73 74 State and local govts 3.3 3.2! 3.6 3.5 3.7 5.1 1:? 2.5 5.4 6.1 2.8 .6 10.1 8.2 74 75 Less ret security credit -.3 1.3 -.2 2.0 -.2 1.5 2.8 -1.5 1.1 -.1 -.3 75 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Nov. 1965 BULLETIN, p. 1611. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 FLOW OF FUNDS 1787 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1963 1964 1965 Transaction category, or sector 1960 1961 1962 1963 1964 11 III IV I II III IV I n I. Demand deposits and currency 1 Net incr. in banking system liability. . .1 5.6 4.5 5.6 7.4 11.9 .2 11.2 3.9 5.6 8.2 12.0 .2 8.9 1 2 U.S. Govt. deposits .9 1.3 -.3 .2 4.1 -4.9 -.8 3.6 -.9 9 5.4 2.4 2 3 Other -.7 5.6 3.2 5.9 7.3 7.8 5.1 12.0 .3 6.5 9.3 13.0 -5.1 6.5 3 4 Domestic sectors !•§ 4.8 3.1 5.9 6.8 7.4 5.4 12.1 -1.0 6.7 8.3 13.2 -5.8 7.3 4 5 Households .8 4.1 5.3 7.4 3.0 6.7 6.8 10.6 3.4 2.8 13.1 7.7 8.6 5 6 Nonfinancial business -1.0 1.7 -2.3 1 Q -2.6 .2 -1.1 -.8 -7.2 2.1 2.1 -7.5 -4.9 -4.3 6 7 State and local govts .3 .9 2.0 .7 .3 -.1 7.8 -1.7 -2.3 1.4 5.6 -1.6 -2.1 7 '5 1 1 1 0 .2 .2 4 .4 .2 — .1 — 8 7 _ 2 5 8 9 Mail float 1.7 1.0 -.6 .3 1.0 3.5 -.4 -1.9 -2.7 2.4 2.8 1.3 -6.8 4.7 9 10 Rest of the world .1 .7 .1 .1 .5 .5 -.3 -.1 1.4 -.2 1.0 — .3 .7 — .9 10 II. Time and savings accounts 11 Net increase—Total 15.3 20.7 28.7 29.5 30.4 26.0 27.7 31.3 27.9 28.0 30.0 35.7 35.6 28.6 11 12 At commercial banks Total 5.8 9.4 15.6 14.3 14.6 11.4 13.8 16.2 13.1 12.1 13.3 19.9 22.6 16.7 12 13 Corporate business .. 1.3 1.9 3.7 3.9 3.2 2.4 3.2 5.2 6.4 1.4 1.5 3.4 8.3 6.9 13 14 State and local govts 1.4 .9 1.0 1.6 1.7 .3 1.4 2.2 .3 1.1 2.2 3.3 2.1 .5 14 15 Foreign depositors .3 .3 .6 1.0 1.4 .9 .8 .8 1.5 1.5 1.0 1.6 .6 1.3 15 16 Households •. 2.8 6.2 10.3 7.9 8.2 7.7 8.5 8.0 4.9 8.1 8.5 11.4 11.6 7.8 16 17 At savinPS institutions 9.5 11.3 13.1 15.2 15.8 14.6 13.9 15.1 14.8 15.8 16.7 15.8 12.9 11.9 17 18 Memo: Households total 12.4 17.4 23.4 23.0 23.9 22.6 22.5 23.0 19.6 23.8 25.4 27.0 24.6 20.1 18 III. U.S. Govt. securities 19 Total net issues -2.5 7.3 7.3 5.2 6.2 9.6 -2.1 6.4 8.7 3.9 7.7 4.4 7.5 — .9 19 20 Short-term marketable . 3.1 8.8 .5 1.4 4.0 8.0 -13.5 5.2 9.1 -1.0 -3.7 11.4 13.7 -.5 20 21 Other -5.6 -1.4 6.8 3.8 2.2 1.5 11.4 1.3 c 4.9 11.4 -7.0 -6.2 -.4 21 22 Net acquisitions, by sector -2.5 7.3 7.3 5.2 6.2 9.6 -2.1 6.4 8.7 3.9 7.7 4.4 7.5 -.9 22 23 M^onetarv authorities ...... .7 1.5 1.9 2.8 3.5 2.0 2.2 3.5 3.2 1.8 2.4 6.5 4.4 3 5 23 24 Short-term -1.0 -1.1 2.0 4.9 2.1 8.0 -1.0 .3 3.5 -2.3 5.1 2.2 15.5 6.9 24 25 Commercial banks . 1.7 5.4 .8 -2.6 -.5 -2.1 -10.1 -1.1 1.0 -6.6 2.7 9 — 2 1— 10 0 25 26 Short-term direct 7.0 9.3 -5.2 -3.7 3.9 -4.1 -10.8 3.1 5.4 1.4 -.5 9.2 — 1.9 — 7.9 26 27 Other direct .. .. -5.2 -4.1 5.2 .5 -4.1 .8 * -5.4 -2.7 -9.0 3.8 — 8 6 — 34 27 98 Noncuaranteed 1 .3 .8 .5 -.2 1.3 .7 1.1 — 1.7 1.1 6 3 1 3 28 29 Nonbank finance 2 .4 1.5 -.3 1.8 .9 2.3 -2.6 1.7 3.5 2.8 -.7 2.5 -1.2 29 30 Short-term direct 11 1.1 .7 — 1.1 1.1 — .2 1.2 —2.2 .4 2.8 3 8 1 0 30 31 Other direct — 1.7 -.8 .6 .6 .5 .8 —. 7 1.3 .3 2 2 — 1 9 3 1 — 9 31 32 Nonguaranteed .3 .2 .3 .3 .3 .6 * .4 .3 .4 .7 32 33 Foreign .5 'A 1.2 .6 .4 3.4 -2.3 -1.8 1.0 -.2 2.7 -2!5 1.2 33 34 Short-term .2 -.7 2.0 -.7 .2 1.3 -2.5 -.9 -1.6 .7 2 8 2 5 1 34 35 Pvt. domestic nonfinan. sectors... -5.1 -.3 1.9 4.7 .9 5.4 5.8 6.3 4.6 4.2 * -5.0 5.3 5.5 35 36 Short-term direct -4.2 .2 1.0 1.9 -3.3 3.1 -.4 4.8 1.4 -3.6 -7.5 -3.6 3.1 1.4 36 37 Other direct A -1.6 -.1 .9 2.9 -.6 3.7 -1.6 2.9 5.2 5.7 -2.3 .7 1.0 37 38 Nonguaranteed . -'.2 3 .6 .8 .4 1.9 1.6 1.9 -.5 1.5 .8 -.2 .7 2.8 38 39 Savings bonds—Households... 2 .8 .4 1.2 .9 1.1 1.2 .8 .9 .8 1.0 .8 .4 39 IV. Other securities 40 Total net issues, by sector 10.9 13.6 11.6 13.1 14.6 13.7 13.2 12.1 13.4 17.3 13.9 13.9 16 0 18 3 40 41 State and local govts 3.6 4.9 5.0 6.7 5.9 7.0 7.0 7.1 4.2 6.4 6.0 6.8 8.2 6.7 41 42 Nonfinancial corporations 5.0 7.1 5.1 3.6 5.4 3.4 4.0 2.2 6.2 7.1 5.3 2.9 4.6 6.8 42 .1 .2 .1 .3 .6 .1 .1 9 .9 6 4 c 2 0 43 44 Finance companies .... 1.5 .5 .3 1.4 2.1 1.4 1.6 2.2 2.2 2.4 2.0 1.8 1.5 2.0 44 45 Rest of the world .6 !8 1.0 1.0 .7 1.8 * .9 * 2.0 1.2 .8 45 46 Net purchases 10.9 13.6 11.6 13.1 14.6 13.7 13.2 12.1 13.4 17.3 13.9 13.9 16 0 18 3 46 47 Households 1.4 1.3 -2.1 1 0 1 3 -2.1 -1.7 .6 4.9 .2 1 4 — 14 47 48 State and local govts 2.1 2.2 2.0 2.5 3.0 2.5 2 5 2.5 2.8 3.0 3.1 2.9 3.1 4 2 48 49 Commercial banks .4 2.6 4.4 5.2 3.7 5.5 6.1 3.6 2.4 2.6 4.9 4.7 4.8 5.9 49 50 Insurance and pension funds 7.2 8.0 7.7 7.8 7.5 8.1 7.8 6.4 7.7 7.9 6.8 7.5 6.8 9.1 50 51 Finance nee ... -.5 -.7 9 5 5 3 -1.5 c -.1 -1.1 — .6 3 1 5 51 52 Security brokers and dealers... * -.1 .5 * * — .4 1.3 3 .1 — 4 1 1 3 1 8 52 — .5 — .6 — .7 — 5 — .6 * -.9 — .8 s — 1.2 1 6 3 53 1.0 1.4 1.1 .8 1.1 .8 1.0 9 * e 1.7 2.1 * 2.0 54 5 5 6 5 Rest N of f t th is e s u w e o s r o ld f own shares 1. . 5 3 1. . 9 2 1.8 * 1 .2 3 - 1 .2 .6 .8 c 1.8 1.7 .4 1^ .1 7 — 1 . 9 4 - 2 .1 5 1 .1 6 -1 2 . 0 2 5 5 6 5 V. Mortgages 57 Total net lending 14.2 16.9 21.3 24.7 25.6 25.5 26.0 25.0 24.3 26.8 25.4 25.7 24.7 25.2 57 58 1- to 4-family 10.4 11. . 8 4 13 . . 4 4 15.7 5 1 _ 5 .5 3 16. . 3 6 16 . . 6 5 15.6 4 1 - 5 .2 .5 1 — 5 . . 9 4 15.5 -3 15.1 15. . 3 1 15 . . 2 7 5 5 9 8 60 Disbursed 10.5 11.4 13.0 15.2 15.8 15.7 16.0 15.2 15.6 16.3 15.8 15.4 15.2 15.5 60 61 Other . 3.8 5.1 7.9 9.0 10.1 9.2 9.5 9.4 8.9 10.9 9.9 10.6 9.4 9.5 61 62 Net acquisitions 14.2 16.9 21.3 24.7 25.6 25.5 26.0 25.0 24.3 26.8 25.4 25.7 24.7 25.2 62 63 Households .2 —. 1 * -.6 -1.0 -1.1 1 0 1 0 63 64 U S Government 1 2 .6 3 — 1.0 2 1 9 — 4 2 8 1 2 1 2 64 65 Commercial banks .7 1.6 4.0 4.9 4.5 5.5 5.2 4.5 4.5 4.4 4.0 5.1 4.7 5.5 65 66 Savings institutions 8.9 11.0 13.2 16.1 14.7 16.5 16.5 16.2 14.5 14.9 15.1 14.4 13.0 13.1 66 67 Insurance 2.9 2.7 3.0 4.0 5.1 3.8 4.4 4.4 4.5 5.0 5.3 5 6 6 0 5 6 67 68 Mortgage companies * .6 5 .8 .4 9 1.0 9 1.0 .1 . 2 1.0 .4 68 VI. Bank loans n.e.c. 69 Total net borrowing 2.8 3.C 6.2 8.2 9.9 8.2 7.3 14.2 4.8 14.4 4.6 15.8 19.6 16.5 69 7 7 0 2 N H o o n u f s i e n h a o n l c d i s al business 2. . 3 6 3 c 1 4 1 . , 3 4 0 5 1 . 1 c c 7 , 2 5 1 . . . 0 6 9 e 4 1 . 9 c 4 2 3 . ! 6 8 2 9 2 1 . . . 4 1 2 2 1 . 2 < * 9 5 3 3 1 . . . . 9 7 0 8 4 1 . A 6 7 - 9 4 2 .1 . . 0 3 8 1 2 2 3 * . . 5 8 5 - 1 1 2 2 1 . . . 1 . 8 9 8 7 7 7 7 3 1 2 0 NOTE.—Quarterly data are seasonally adjusted totals at annual rates. For other notes see Nov. 1965 BULLETIN, p. 1611. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Statistics * International * Reported gold reserves of central banks and governments. . 1790 Gold production 1791 Net gold purchases and gold stock of the United States. . 1792 Estimated foreign gold reserves and dollar holdings. 1793 International capital transactions of the United States. . 1794 Money rates in foreign countries 1803 Arbitrage in Treasury bills 1804 Foreign exchange rates 1805 U.S. balance of payments 1806 Foreign trade 1807 Guide to tabular presentation 1726 Index to statistical tables 1815 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- 1789 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1790 GOLD RESERVES DECEMBER 1965 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti- Intl. Esti- End of mated Mone- United mated Afghan- Argen- Aus- Aus- Belperiod total tary States rest of istan tralia tria gium Brazil Burma Canada Chile world1 Fund world 1958. 39,445 1,332 20,582 17,530 n.a. 60 162 194 1,270 325 1,078 40 1 1 9 9 5 6 9 0 . . 4 4 0 0 , , 1 5 9 4 5 0 2 2, , 4 4 3 0 9 7 1 1 9 7 , , 5 8 0 0 7 4 2 1 0 8 , , 2 2 9 8 5 0 n.a. 1 5 0 6 4 1 1 5 4 4 7 2 29 9 3 2 1 1 , , 1 1 3 7 4 0 2 3 8 2 7 7 9 88 6 5 0 4 4 3 5 1961. 41,140 2,077 16,947 22,115 n.a. 190 162 303 ,248 285 946 48 1962. 41,470 2,194 16,057 23,220 36 61 190 454 ,365 225 42 708 43 1963. 42,310 2,312 15,596 24,400 36 78 208 536 ,371 150 42 817 43 36 1964—Oct.. 2,425 15,606 36 73 224 592 ,404 92 42 1,001 43 Nov.. 2,430 15,566 36 73 224 592 ,434 92 42 1,007 43 Dec. 43,060 2,179 15,471 25,410 36 71 226 600 ,451 92 84 1,026 43 1965—Jan... 2,181 15,208 36 71 228 600 ,461 92 84 1,036 43 Feb.. 2,188 14,993 36 70 228 613 ,473 92 84 1,041 42 Mar.. 42,810 2,189 14,639 25,980 36 70 229 625 ,484 92 84 1,044 43 Apr.. 2,217 14,480 36 70 230 638 ,490 62 84 1,045 43 May. 1,822 14,362 36 68 230 650 ,532 62 84 1,081 42 June. 243,025 31,832. 14,049 26^885* 36 68 230 663 ,563 62 84 1,089 42 July.. 31,847 13,969 36 68 231 675 ,564 63 84 1,096 44 Aug.. 31,856 13,916 36 67 231 688 ,573 63 84 1,104 44 Sept.. 5 243^ 025 31,865 13,925 36 67 222 700 ,554 63 84 1,112 44 Oct... 31,865 13,937 36 248 700 ,558 84 1,124 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 s o ia - Iran Iraq Israel Italy Japan Rep. of 1958. 72 48 35 750 2,639 17 247 141 34 2 1,086 124 1959. 71 57 38 1,290 2,637 26 247 140 84 2 1,749 244 1960. 78 107 41 1,641 2,971 76 247 130 98 * 2,203 247 1961. 88 107 47 2,121 3,664 87 247 130 84 10 2,225 287 1962. 57 92 61 2,587 3,679 77 247 129 98 41 2,243 289 1963. 62 92 61 3,175 3,843 77 247 142 98 60 2,343 289 1964—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.. 33 97 85 4,471 4,383 81 281 141 122 56 2,388 Aug.. 33 97 85 4,500 4,382 77 281 141 122 56 2,383 Sept.. 33 97 85 4,556 4,390 78 281 141 122 56 2,390 Oct... 97 85 4,604 4,404 78 281 140 122 56 2,403 E pe n r d i o o d f Kuwait a L n e o b n - M ic e o x- Moroc- 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 in il e i s p- 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 1,050 493 211 1959 102 142 1,132 548 238 1960 n.a. 119 137 1,451 552 178 1961 n.a. 140 112 1,581 20 443 298 1962 43 172 95 1,581 20 471 499 1963 49 172 139 1,601 20 497 630 48 1964—Oct.. 45 172 169 1,611 20 523 601 Nov. 45 167 1,621 20 523 592 Dec. 48 183 169 1,688 20 523 574 1965—Jan.. 48 174 1,688 20 523 545 Feb. 48 171 1,723 20 532 519 Mar. 49 182 170 1,723 20 538 498 Apr. 48 182 168 1,723 20 540 453 May 48 182 167 1,756 20 544 408 June 49 182 165 1,756 20 547 375 July. 49 '182 164 1,756 20 548 359 Aug. 49 '182 1,756 20 560 339 Sept. 49 M82 1,756 20 560 342 Oct.. 49 182 1,756 20 371 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 GOLD RESERVES AND PRODUCTION 1791 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- Taiwan T la h n a d i- Turkey ( U E . g A y . p R t) . U K d n i o n it m g e - d U gu r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n t o t t r l l e . - E E P F U 5 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—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 la -164 June 780 202 2,789 55 96 126 139 2,226 171 401 18 -249 54 July 810 202 2,655 54 96 116 139 171 401 18 -92 Aug 810 202 2,653 54 96 116 139 171 401 19 -199 Sept 810 202 2,656 54 96 116 139 2,139 171 401 18 -145 54 Oct 810 202 2,660 96 116 139 401 18 -141 1 Includes reported or estimated gold holdings of international and 3 Excludes gold subscription payments by member countries in anticiregional organizations, central banks and govts. of countries listed in pation of increase in Fund quotas. Amounts outstanding as follows this table and also of a number not shown separately here, and gold to be (in millions): June-Aug., $259; Sept., $285; and Oct., $288. 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. 2 Includes gold subscription payments to the IMF; see footnote 3 for amounts. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period produc- Congo tion * 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 a i g c u a a - Co b l i o a m- India P p h in il e ip s - t A ra u l s ia - ot A h l e l r ville) 1958 1,050.0 618.0 19.4 29.8 12.3 61.6 158.8 11.6 7.2 13.0 6.0 14.8 38.6 58.9 1959 1,125 0 702.2 19.8 32.0 12 2 57 2 156 9 11 0 7 3 13 9 5 8 14 1 38 1 54 5 I960 1,175.0 748.4 19.6 30.8 11.1 58 8 162 0 10 5 7 0 15 2 5.6 14 4 38 0 53.6 1961 ... 1,215.0 803.1 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37.7 53.8 1962 1,290.0 892.2 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 ,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 W 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—Sept 88.2 1.6 2.5 10.9 .5 .9 .4 1.2 2.5 Oct 89.9 L.6 2.6 11.5 .8 1.0 .5 1.3 2.8 Nov 88.0 2.5 11 5 6 1 1 .4 1 3 3 0 Dec 84.2 9 2.4 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 5 1 l 4 2 5 Mar 86.8 5 10.8 .7 .8 .5 2.6 Apr 88 0 7 11 3 7 .8 4 2 5 May 89.2 6 10 4 1.0 .3 2 4 June 90.1 5 10.7 .4 r2.8 July 90.8 10.0 2.4 Aug 91.0 10 5 Sept 89.7 10.2 i 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 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

1792 U.S. GOLD DECEMBER 1965 U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1964 1965 Area and country 1956 1957 1958 1959 1960 1961 1962 1963 1964 III IV I II III Western Europe: Austria —84 —83 -1 -143 -82 —55 —25 -38 -38 Belgium 3 3 — 329 — 39 — 141 -144 -63 —40 —40 —40 -22 -21 France -34 -266 -173 -456 -518 -405 -101 -101 -482 -148 -117 34 23 225 25 Italy — 349 100 200 -80 Netherlands 25 —261 — 30 -249 -25 —60 —60 —35 20 10 Spain 31 32 -114 -156 — 146 — 130 —32 — 30 -90 -60 -30 Switzerland -8 -215 20 -324 -125 102 —81 —51 — 37 — 13 United Kingdom 100 -900 -350 -550 -306 -387 329 618 163 125 -76 29 132 Bank for Intl Settlements 178 32 36 23 Other 18 8 -21 -38 -96 -53 -12 1 -7 -1 -14 -17 -4 -9 Total 80 68 -2,326 -827 -1,718 -754 -1,105 -399 -88 35 -171 -802 -334 -82 15 5 190 Latin American republics: 115 75 67 -50 -90 85 -30 Brazil -1 -11 —2 57 72 54 — 1 28 — 1 28 -f 28 -6 38 10 10 * 30 Mexico -30 -20 -4 Venezuela —200 65 Other 29 6 2 c -22 -17 -5 -7 -9 -2 -2 -7 • -3 Total -28 81 69 19 -100 -109 175 32 56 7 27 —8 58 -4 Asia: 30 157 15 Other • 18 -28 -97 1-101 2-93 312 3 -1 -1 -15 -3 Total * 18 -34 -186 -113 -101 -93 12 3 -1 j * -15 -3 All other 14 -3 -5 -38 -6 -1 -36 -7 -1 1 -1 -9 -15 80 172 -2,294 -998 -1,969 -970 -833 -392 -36 41 -145 -811 -299 104 •200 600 5-44 *300 150 «-259 78 280 772 -2,294 -1,041 -1,669 -820 -833 -392 -36 41 -145 -811 -558 -96 * 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. * 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- 113 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. « Payment to the IMF as increase in U.S. gold subscription. * Proceeds from this sale invested by the IMF in U.S. Govt. securities; 7 Represents gold deposit by the IMF; see footnote 6 to table below. U.S. GOLDNSTOCK 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* 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 l* ld s T to r c e k a * sury h c F o u o l r d r r e e in i n g g c n s y 3 Total T g o o t l a d l 1952..... 23,252 23,252 23,187 379 379 1964—Nov... 16,324 15,566 15,386 758 622 -40 1953.... . 22,091 22,091 22,030 -1,161 -1,161 Dec... 15,903 15,471 15,388 432 -421 -95 1954.... . 21,793 21,793 21,713 -298 -298 1955.... . 21,753 21,753 21,690 -40 -40 1965—Jan... 15.572 15,208 15,185 364 —331 —263 1956.... . 22,058 22,058 21,949 305 305 Feb... 15,220 14,993 14,937 227 -352 -215 1957 . 22,857 22,857 22,781 799 799 Mar... 15,129 14,639 14,563 490 -91 -354 Apr... 14,884 14,480 14,410 404 -245 -159 1958 . 20,582 20,582 20,534 -2,275 -2,275 May.. 14,511 14,362 14,290 149 -373 -118 1959 . 19,507 19,507 19,456 -1,075 4-1,075 June.. 14,595 14,049 13,934 546 84 5-313 1960... . 17,804 17,804 17,767 -1,703 -1,703 July... 14,697 13,969 13,857 728 102 -80 1961... . 17,063 16,947 16,889 116 -741 -857 Aug... 14,953 13,916 13,857 1,037 256 -53 1962 . 16,156 16,057 15,978 99 -907 -890 Sept... 14,884 613,925 613,858 959 -69 9 1963... . 15,808 15,596 15,513 212 -348 -461 Oct.... 14,795 613,937 613,857 858 -89 12 1964.... . 15,903 15,471 15,388 432 95 -125 Nov. P. 14,687 613,880 613,805 807 -108 -57 1 Includes gold sold to the United States by the International Mone- 6 Includes gold deposited by the IMF ($8 million as of Sept. 30, $9 tary Fund with the right of repurchase, which amounted to $800 million million as of Oct. 31 and $34 million as of Nov. 30) to mitigate the impact on Nov. 30, 1965. Also includes gold deposit of IMF; see footnote 6. on the U.S. gold stock of purchases by foreign countries for gold sub- 2 Includes gold in Exchange Stabilization Fund. scriptions on increased IMF quotas. The United States has a correspond- 3 For holdings of F.R. Banks only, see pp. 1736 and 1738. ing gold liability to the IMF. 4 Includes payment of $344 million increase in U.S. gold subscription NOTE.—See Table 11 on p. 1801 for gold held under earmark at F.R. to the IMF. Banks for foreign and international accounts. Gold under earmark is s Includes payment of $259 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

DECEMBER 1965 GOLD RESERVES AND DOLLAR HOLDINGS 1793 HOLDINGS OF FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (In millions of dollars) Dec. 31, 1963 Sept. 30, 1964 Dec. 31, 1964 Mar. 31, 1965 June 30, 1965 Sept. 30, 1965" Area and country Gold& U.S. Gold& U.S. Gold & U.S. Gold& U.S. Go1d& U.S. Gold& U.S. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. short- Govt. term bonds term bonds term bonds term bonds term bonds term bonds dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes dollars & notes Western Europe: Austria 901 3 947 3 923 3 872 3 885 3 959 3 Belgium 1,791 • 1,821 * 1,887 * 1,897 * 1,983 • 1,972 Denmark 253 14 352 14 428 14 430 14 368 14 335 14 Finland 160 1 174 1 212 1 201 1 189 1 179 1 France 4,653 6 5,093 7 5,392 7 5,530 7 5,646 7 5,667 7 Germany, Fed. Rep. of 6,884 1 6,437 1 6,258 1 6,137 1 5,918 1 5,753 1 Greece 265 • 225 • 252 * 232 • 235 • 237 Italy 3,146 1 3,225 1 3,729 1 3,539 1 3,824 1 3,752 1 Netherlands 1,961 4 1,964 4 2,055 5 2,036 5 2,034 5 2,086 6 Norway 164 131 205 101 215 98 234 68 263 68 262 68 Portugal 688 • 747 * 780 * 802 * 795 • 837 * Spain 778 2 972 2 1,010 2 984 2 1,011 2 1,063 2 Sweden 591 129 733 90 833 40 928 40 921 24 906 24 Switzerland 3,726 75 3,653 78 4,095 79 3,927 78 4,088 87 4,039 89 Turkey 136 * 123 * 140 * 142 * 145 * 140 * United Kingdom 3,967 328 4,222 402 4,020 414 4,308 407 4,715 502 5,101 548 Otheri 369 46 491 49 508 49 391 49 341 50 396 50 Total 30,433 741 31,384 753 32,737 714 32,590 676 33,361 765 33,684 814 Canada 3,805 687 3,863 695 4,010 690 3,565 735 3.492 727 3,893 718 Latin American republics: Argentina 453 * 386 * 362 * 371 * 378 • 449 * Brazil 329 * 330 • 350 * 421 * 402 * 475 * Chile 186 * 224 • 219 • 207 * 240 • 249 * Colombia 231 1 226 1 267 1 229 1 190 200 1 Cuba 12 • 10 • 12 * 11 * 11 • 10 * Mexico 808 2 808 1 904 1 913 1 852 * 806 * Panama, Republic of 129 10 89 1 99 1 111 1 124 113 I Peru 215 * 271 • 273 1 334 1 330 1 321 1 Uruguay 284 * 280 * 282 * 294 * 295 • 299 4c Venezuela 992 * 1,076 * 1,135 * 1,103 * 1,097 • 1,091 • Other 424 1 465 2 478 2 538 1 538 2 559 2 Total 4,063 14 4,165 5 4,381 6 4,532 5 4,457 5 4,572 5 Asia: India 298 * 307 * 306 * 342 • 353 « 357 * Indonesia 83 1 63 i 73 1 62 58 1 58 1 Japan 2,773 5 2,882 5 3,044 5 3,137 9 3,130 9 3,234 9 Philippines 237 * 260 * 256 * 279 * 281 * 312 * Thailand 486 546 * 562 • 592 592 • 598 • Other 1,687 41 1,994 45 2,059 43 2,222 43 2,235 43 2,224 41 Total 5,564 47 6,052 51 6,300 49 6,634 53 6,649 53 6,783 51 Africa: South Africa 671 * 635 * 621 • 547 * 424 • 400 * U.A.R. (Egypt) 188 196 163 163 161 159 Other 296 9 288 14 283 16 317 16 373 16 357 is Total 1,155 9 1,119 14 1.067 16 1,027 16 958 16 916 16 Other countries: Australia 388 * 392 * 402 * 411 * 433 • 421 * 313 26 358 28 374 26 421 31 414 28 380 28 Allother 701 26 750 28 776 26 832 31 847 28 801 28 Total 45,721 1,524 47,333 1,546 49,271 1,501 49,180 1,516 49,764 1,594 50,649 1,632 Total foreign countries2... 6,958 1,218 7,499 923 7,162 904 7,279 798 <6,689 799 46,999 795 International and regional^ 52,679 2,742 54,832 2,469 56,433 2,405 56,459 2,314 56.453 2,393 57,648 2,427 Grand total2 1 Includes, in addition to other Western European countries, unpub- tion of increase in IMF quotas. Amounts outstanding were as follows: lished gold reserves of certain Western European countries; gold to be $259 million on June 30 and $285 million on Sept. 30, 1965. distributed by the Tripartite Commission for the Restitution of Mone- NOTE.—Gold and short-term dollars include reported and estimated tary Gold; European Fund; and the Bank for International Settlements officia] gold reserves, and official and private short-term dollar holdings (the figures for the gold reserves of the BIS represent the Bank's net (principally deposits and U.S. Treasury bills and certificates); excludes gold assets.') nonnegotiable, non-interest-bearing special U.S. notes held by the Inter- 2 Excludes gold reserves of the U.S.S.R., other Eastern European American Development Bank and the International Development Assn. countries, and China Mainland. U.S. Govt. bonds and notes are official and private holdings of U.S. 3 Includes international organizations and Latin American and Euro- Govt. securities with an original maturity of more than 1 year; excludes pean regional organizations, except the Bank for International Settlements nonmarketable U.S. Treasury bonds and notes held by official institution* and European Fund, which are included in "Other Western Europe." of foreign countries as shown in Table 8 on p. 1800. * Excludes gold subscription payments by member countries in anticipa- See also NOTE to table on gold reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1794 INTL. CAPITAL TRANSACTIONS OF THE U.S. DECEMBER 1965 1. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS (Amounts outstanding; in millions of dollars) End of period G to ra ta n l d reg I a i n o n t n d l a . l 1 c F o o u r n e t i r g ie n s E W u e ro st p e e r n 2 Canada A re m L pu e a b r ti i l n c ic a s n Asia Africa co O u t n h t e ri r es 1963—Dec 19 505 5,855 13,650 7,867 1.664 1,058 2,731 154 176 1964—Oct 19.429 5,964 13,465 7,517 ,533 1,175 2,904 158 178 Nov 19 802 5 954 13 848 7,824 577 1 191 2 930 152 174 Dec 20,225 5.876 14 349 8,270 ,483 1,238 3,020 160 178 1965 Jan 19,519 5.822 13,697 7,551 ,449 1,265 3.096 159 177 Feb 19,606 5.780 13.826 7,644 ,419 1,278 3,124 180 181 Mar 19 317 5 879 13 438 7,255 ,316 1 296 3 213 178 180 18.994 5,883 13,111 6,955 ,308 1,305 3,175 180 188 May 18 745 5 660 13 085 6 822 ,304 1 389 3 178 191 201 18 977 5.646 13 331 7,200 ,275 1,295 3,173 193 195 July 18,822 5,944 12,878 6,726 2R1 1,296 3,198 181 196 19 039 5,853 13 186 6,892 1,378 1,356 3,174 194 192 Sept.? 19,373 5,920 13,453 7,140 1,385 1,385 3,161 184 198 Oct." 19,410 5,891 13,519 7,177 1,410 1,347 3,187 187 211 1 Includes international organizations, and Latin American and European regiona' organizations, except the Bank for International Settlements and the European Fund which are included in Western Europe. 2 Includes Bank for International Settlements and European Fund. lank and the -/ketable U.S. NOTE.—Data represent short-term liabilities to the official institutions foreign currencies. of foreign countries and to official international and regional organizations, 1. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (Amounts outstanding; in millions of dollars) International and regional l Foreign Other E pe n r d i o o d f G to ra ta n l d Total Intl. E p r u e e r a - o n - L r . e A - . Total c O ia ff l i - 3 Other Europe Canada A L m a e t r i i n ca Asia Africa c tr o i u es ngional 2 gional 1960 ... 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 •>7,841 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 3,544 319 152 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—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 Ftb 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 June,... 27,735 4,848 4,689 15 144 22,887 12,205 10,682 11,309 2,403 3,724 4,947 277 228 July 27,781 5,146 4,994 12 140 22,635 11,752 10,883 M0.770 2,585 3,750 r5,O5O 262 219 Aug 28,457 5,059 4,919 9 130 23,398 12,062 11,336 11,314 2,748 3,781 5,054 283 218 Sept.""... 28,835 5,125 4,988 14 122 23,710 12,329 11,381 11,558 2,781 3,797 5,080 271 223 Oct.»... 29,148 5,096 4,964 12 120 24,052 12,406 11,646 11,563 3,007 3,827 5,138 272 244 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 1960 .. 9,046 243 142 54 46 519 3,476 63 a 77 328 82 84 149 227 1961 10,322 255 326 52 91 QKQ 2^842 67 ,234 216 105 99 153 406 1962 10,162 329 177 67 73 , 157 2,730 119 '384 248 125 161 177 490 1963 10,770 365 420 161 99 ^478 3^041 188 803 360 133 191 205 409 1964—Oct 11,233 293 444 269 112 ,524 2,184 159 ,263 356 186 228 409 563 Nov 12,012 349 473 280 110 ,600 2,152 172 ,434 447 182 228 410 653 Dec 12,240 323 436 336 127 ,663 2,010 175 ,622 367 184 257 394 644 1965—Jan 11,990 296 470 344 129 ,530 1,928 165 ,592 355 153 257 408 682 Feb 12,017 269 459 334 126 ,584 1,916 152 ,571 339 174 267 338 717 Mar 11,527 247 413 338 116 ,333 1,894 150 ,446 313 203 264 278 739 Apr 11,014 215 460 318 122 ,273 1,879 148 ,345 328 197 264 244 724 May.... 10,751 206 463 255 113 ,174 1,711 148 ,357 285 205 246 197 748 June.... 11,309 222 420 271 104 ,213 1,540 151 ,440 278 232 248 231 719 July ••10,770 248 425 269 104 ,089 1,363 148 ,314 308 214 241 234 724 Aug 11,314 263 444 242 100 ,181 1,233 152 ,486 316 224 256 271 707 Sept."... 11,558 259 418 238 94 ,111 1,363 159 ,362 330 231 277 253 704 Oct."... 11,563 261 411 260 113 ,036 1,385 147 ,328 356 240 280 229 699 For notes see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1795 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 United Other Other End of period Switzer- Turkey King- Yugo- Western U.S.S.R. Eastern Total Argen- Brazil Chile Colom- Cuba Mexico land dom slavia Europe ft Europe tina bia 1960 678 18 1,667 10 357 12 14 2 308 315 194 135 158 77 397 1961 875 26 2,227 12 325 5 16 2,340 235 228 105 147 43 495 1962 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 n 669 1964—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 17 341 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 18 390 2 21 3,724 310 340 198 159 U 687 July 1,271 15 '2,463 15 296 4 25 3,750 327 339 187 162 11 623 Aug 1,319 19 2,727 56 292 1 25 3,781 354 410 184 171 10 622 Sept.*... 1,383 24 2,962 57 303 2 27 3,797 382 412 205 167 10 642 Oct.'... 1,317 30 3,146 49 245 2 29 3,827 414 356 195 191 10 611 2b. Latin America—Continued 2c. Asia Other Bahamas Neth. Other China In- End of Panama Peru Uru- Vene- L.A. & Antilles & Latin Total Main- Hong India do- Israel period guay zuela rep. Bermuda 8 Surinam America 8 land Kong nesia 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 "2,974 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—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 June.... 124 263 124 696 472 206 115 18 4,947 35 94 72 23 111 July.... 114 259 123 782 497 196 109 20 '5,050 36 97 86 34 114 Aug 106 267 126 739 496 169 109 18 5,054 35 101 78 22 108 Sept.»... 113 254 128 690 494 165 114 20 5,080 35 104 76 23 114 Oct.*... 114 251 140 730 498 179 113 23 5,138 35 106 76 34 115 2c Asia—Continued 2d. Africa 2e. Other countries Congo End of Japan Korea Philip- Tai- Thai- Other Total (Leopold- Mo- South TJ.A.R. Other Total Aus- All period pines wan land Asia ville) rocco 8 Africa (Egypt) Africa tralia other « I960 1,887 152 203 84 186 204 227 32 64 29 22 80 125 88 37 1961 "1,672 199 185 92 264 254 283 34 93 32 15 109 104 98 6 1962 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 Oct.. 2 587 103 227 240 437 571 244 26 s 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 91 248 111 494 776 283 31 16 54 27 154 221 198 23 June.... 2,803 88 250 119 496 747 277 30 18 49 22 158 228 203 25 July 2,786 88 280 226 501 '804 262 18 17 52 24 151 219 195 24 Aug 2,856 92 265 228 503 764 283 17 16 61 24 164 218 196 22 Sept."... 2,907 101 278 227 502 713 271 14 22 58 20 157 223 199 24 Oct.» 2,934 103 283 228 506 718 272 12 31 53 19 157 244 222 22 5 Includes revisions arising from changes in reporting coverage as follows (in millions of dollars); Total +20; Europe —13; Canada +1; Latin America +19; Asia +22; Africa -9. 6 Includes Bank for International Settlements and European Fund. 7 Decline from end of 1961 reflects principally reclassification of deposits for changes in domicile over the past few years from Cuba to other countries. 2 Not reported separately until 1962. 8 Data based on reports by banks in the Second F.R. District only for 3 Foreign central banks and foreign central govts. and their agencies, year-end 1960-62. 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

1796 INTL. CAPITAL TRANSACTIONS OF THE U.S. DECEMBER 1965 2. SHORT-TEHM 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): 7.0 4.7 5.2 7.1 23.5 33.4 23.4 62.0 10 7 6 0 8 7 6 3 19.8 22.9 21 6 n.a. 7 4 8 6 17 4 20 1 2.8 2.7 2.7 n.a. 2.7 2.4 4.1 3.6 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 32 6 35 1 43 2 53 1 24 1 24 3 22 2 36 3 Costa Rica 29.1 35.9 31.5 28.6 17.3 16.1 23.1 24.8 58.0 40.6 55.8 47.3 Ryukyu Islands (incl, Okinawa). 21.7 31.6 25.6 32.7 53.4 62.1 67.1 65.2 61.7 151.0 197.2 288.0 El Salvador 41.7 57.8 56.0 71.7 2.1 5.7 7.6 3.2 47 9 65 1 48 7 71 6 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; 6 5 4 7 7 0 7 8 .9 1 0 1 5 2 1 35.0 52.3 42.4 67.4 22.3 32.1 33.7 45.2 8.9 8.4 11.4 12.1 Ghana 6.4 6.3 5.6 5.1 Trinidad & Tobago 5.7 5.5 7.4 8.6 Liberia 22.0 17.8 20.0 17.6 Libya 14.1 14.9 28.9 26.8 Other Latin America: 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 .8 .8 .5 .8 1.3 .6 1.1 1.4 3.6 3.5 3.0 2.6 2.5 2.0 2.2 2.2 Other Asia: Tunisia 1.0 .8 .9 1.0 5.0 4.2 5.5 6.3 9.9 22.1 32.5 All other: 6 9 2 1 1 5 1 7 10 5 18 8 12 0 19 7 3.1 3.7 2.4 2.7 9 Represent a partial breakdown of the amounts shown in the "other" interest-bearing special U.S. notes held by the International Developcategories (except "Other Eastern Europe") in Tables 2a-2e. ment Assn. and the Inter-American Development Bank. For data on long-term liabilities, see Table 6. For back figures and further descrip- NOTE.—Short-term liabilities are principally deposits (demand and tion of the data in this and the following tables on international capital time) and U.S. Govt. securities maturing in not more than 1 year from transactions of the United States, see "International Finance," Section their date of issue; the latter, however, exclude nonnegotiable, non- 15 of Supplement to Banking and Monetary Statistics, 1962. 3. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars To banks and official institutions To all other foreigners Payable End of period Total for i e n ign Deposits U.S. Special Deposits U.S. currencies Total Demand Time 1 c T e b r i r t l e i l f s a i s c a u a n r t d e y s no U t . e S s . 2 Other 3 Total Demand Time I c T e b r i r t l e i l f s a i s c a u a n r t d e y s Other 3 1960 21,272 18,929 7,568 7,491 2,469 1 401 2,230 1,349 148 233 113 1961 22,450 19,944 8,644 7,363 2,388 1,549 2,356 1,J76 149 231 150 1961 * 22,533 20,025 8,707 7,363 2,388 1,567 2,358 1,)77 149 232 150 1962 25,019 22,311 8,528 9,214 3 012 1 557 2,565 2,596 116 352 143 1963 25,967 22,787 5,629 3,673 8,571 3,036 1,878 3,047 1,493 966 119 469 134 1964—Oct 28,039 24,683 6,764 3,856 8,133 3,394 2,536 3,250 1,449 1.196 105 500 106 Nov ... 28,975 25,563 7,310 3,880 8,470 3,385 2,518 3,302 1,500 ,206 84 512 111 Dec.s 28,843 25,376 6,713 3,994 8,727 3,308 2,634 3,377 1,531 ,271 72 503 90 1965 Jan 28,777 25,297 6,849 4,047 8,560 3,303 2,538 3,383 1,509 ,295 81 497 97 Feb 28,915 25,411 6,753 4,032 8,607 3,303 2 716 3,431 1,516 ,320 79 515 73 Mar ... 28,288 24,742 6,628 3,970 7,978 3,373 2,793 3,482 1,541 ,362 79 501 64 Apr 27,841 24,280 6,226 3,982 7,767 3,367 2,938 3,478 1,546 ,393 77 461 84 May... . 27,420 ••23,890 ••6,082 3,933 7,690 3,167 3,017 '3,440 '1,516 1,400 79 445 90 27,735 24,162 6,465 3,911 7,640 3,167 2,979 3,473 1,522 ,418 86 446 101 July 27,781 24,200 6,533 3,962 '7,175 3,462 '3,069 3,484 1,536 423 87 438 97 28,457 24,858 7,060 4,007 7,284 3,434 3,074 3,485 1,480 1,471 88 447 113 Sept." 28,835 25,217 6,970 3,930 7,674 3.494 3,150 3,501 1,504 1,492 81 424 118 Oct.* 29,148 25,518 7,043 4,077 7,784 3,489 3,125 3,529 1,515 1,529 91 394 101 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. +26; Bank, which amounted to $268 million on Oct. 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

DECEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1797 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 r t a a 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 1 cou O n t t h r e ie r s 2 I960 3 614 717 421 1,356 1,052 69 1961 .. . 3 4,820 767 556 1,522 3 1,891 85 1962 5 163 877 526 1,606 2,017 137 1963 . 5,975 939 638 1,742 2,493 104 58 1964 Oct 6 912 1,164 629 2,020 2,925 108 66 6,964 1 1,129 627 2,098 2,934 109 67 0ec . . 7,469 1 1,217 725 2,212 3,137 120 58 Dec 4 7,950 * 1,230 1,004 2,234 3,287 131 63 1965 Jan , 7,762 2 1,174 1,000 2,206 3,212 112 56 Feb 7,881 1 1,185 1,059 2,243 3,224 118 51 7,929 1,185 981 2,195 3,385 130 53 Apr . 7,794 1,167 902 2,178 3,360 129 57 '7,767 1,173 851 2,191 '3,359 136 57 7 748 1,164 807 2,172 3,400 146 61 July 7,560 1,126 786 2,116 3,320 151 62 7,531 1,120 758 2,124 3,327 142 59 Septp .... .... 7,490 1,213 678 2,137 3,258 146 59 Octv . 7,388 1,156 679 2,156 3,185 146 66 4a. Europe End of period Total A tr u ia s- g B iu el m - m De a n rk - l F a i n n d - France F G e e d r . m o R a f n e y p , . Greece Italy N la e e n r t - d h s - N w o a r y - t P u o g r a - l Spain S d w en e- 1960 717 2 65 13 9 1? 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—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 ,217 10 42 28 85 79 159 9 109 39 43 19 40 47 Dec* ,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 ,167 9 49 27 77 82 173 10 123 47 49 36 43 47 ,173 9 43 23 75 83 184 14 116 44 51 36 46 38 ,164 9 40 19 74 86 167 11 113 46 50 34 38 42 July ,126 8 37 20 71 72 174 11 113 40 44 32 52 40 120 10 34 20 71 81 169 12 108 38 45 27 45 39 Septp ,213 9 40 24 70 76 173 12 115 42 42 21 45 40 Oct." ,156 9 54 30 78 79 164 12 no 39 43 21 46 40 4a. Europe—Continued 4b. Latin America End of period S l w a er n i - t d z- T k u e r y - U K d n i o i n m t g e - d Y sl u av g i o a - W E O u e t r s h o te e p r r e n s U.S.S.R. E E O u as t r h t o e e p r r n e* Total A t r i g n e a n- Brazil Chile l C o b m i o a - - Cuba M ic e o x- 1960 . .... 60 49 245 11 11 8 1,356 121 225 73 80 26 343 1961 105 16 181 9 9 8 1,522 192 186 127 125 19 425 1962 75 42 221 6 19 8 1,606 181 171 186 131 17 408 1963 70 48 237 7 23 16 1,742 188 163 187 208 18 465 1964—Oct 90 31 312 17 26 20 2,020 196 155 183 291 16 580 Nov 92 15 278 15 21 20 2,098 205 146 188 300 17 604 Dec 97 36 319 15 20 20 2,212 210 145 188 319 17 630 Dec.'' 111 37 310 16 20 20 2,234 203 126 175 338 17 644 1965 Jan 114 36 223 16 20 21 2,206 210 125 164 313 16 659 Feb 118 32 196 15 21 23 2,243 209 119 155 313 16 686 Mar 116 30 199 20 23 24 2,195 201 119 141 292 16 685 Apr 98 7 213 24 24 1 28 2,178 204 108 140 295 17 684 May 95 17 216 28 25 * 30 2,191 208 112 135 294 16 691 99 31 223 29 26 1 28 2,172 204 112 144 285 16 693 July . . . 87 42 195 32 26 2 27 2,116 208 113 139 276 16 671 82 42 201 39 28 3 29 2,124 219 111 135 265 16 672 Sept p 89 36 282 36 25 3 31 2,137 220 104 143 248 16 677 Oct v 85 40 218 32 27 3 27 2,156 220 91 152 266 16 655 For notes sec following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1798 INTL. CAPITAL TRANSACTIONS OF THE U.S. DECEMBER 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 io o d f Panama Peru g U u 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 a s - - 1 A N S n n u a e & ti t m r l h i l - e . s A O L ic m a t a h t e i e r n • r - Total C M la h a n i i n d n a - K H o o n n g g India I n n e d si o a - Israel 1960 23 44 57 234 55 t 66 1,052 2 9 9 24 1961 32 74 55 144 56 13 74 '1,891 2 9 8 36 1962 30 85 122 102 66 g 98 2,017 2 13 20 37 1963 35 99 65 114 135 42 g 16 2,493 2 11 17 * 22 1964—Oct.... 35 96 62 140 188 44 19 16 2,925 2 21 20 40 Nov.... 38 99 67 153 199 50 V 16 2,934 2 20 19 3 45 Dec... 41 102 76 165 222 58 11 20 3,137 7 26 22 7 44 Dec.*.. 49 108 78 168 224 65 IS 21 3,287 2 28 21 7 47 1965—Jan 49 109 78 158 221 68 19 18 3,212 2 21 22 7 37 Feb.... 57 112 84 161 230 63 {( 19 3,224 21 16 7 46 Mar.... 50 116 84 164 229 62 1< 18 3,385 25 28 7 55 Apr.... 49 112 81 173 221 58 1! 19 3,360 24 28 7 57 May... 51 119 78 173 216 58 f< 19 '3,359 27 28 4 55 June.... 50 117 72 167 213 59 \t 18 3,400 34 26 1 54 July 47 115 67 164 208 56 V, 20 3,320 32 21 1 54 Aug.... 48 122 68 172 210 52 i: 21 3,327 32 19 2 53 Sept.*... 51 125 67 177 217 56 I: 21 3,258 28 18 2 54 Oct.i\. 53 138 67 184 224 55 14 20 3,185 27 19 2 67 4c. Asia—Continued Id. Africa 4e. Other countries Congo End of period Japan Korea P p h in il 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 1 ( p v L o il e l l o d e - ) - M c o o r o l c- A So fr u i t c h a ( U E . g A y . p R t) . A O f t r h ic e a r Total 2 A t l r u i a a s - - oth A e l r l » I960 806 2 19 7 24 150 3 1 3 69 28 24 1961 31 528 4 114 10 34 145 6 n 13 85 29 27 1962 1,740 3 70 9 41 80 2 0 26 137 41 57 1963 2,171 25 113 8 52 71 104 1 s 28 59 58 48 9 1964 Oct 2 488 25 185 9 54 81 108 i 29 58 66 56 10 Nov .... 2 496 25 183 8 55 79 109 •> 9 28 60 67 58 9 Dec 2 653 21 202 9 64 88 120 7 9 42 56 58 48 10 Dec* 2,803 21 203 9 65 82 131 7 ?n 42 67 63 48 16 1965 Jan 2 738 20 205 10 70 80 112 1 s 31 63 56 43 13 Feb 2 741 20 208 12 73 80 118 •> 29 71 51 39 12 Mar 2,856 20 212 12 71 97 130 9 35 72 53 41 12 Apr . 2 827 20 212 13 73 99 129 7 ?1 35 70 57 45 13 May 2,826 21 209 13 76 r99 136 7 '0 38 75 57 45 13 June 2,871 20 200 12 77 106 146 3 22 43 77 61 48 13 July 2,822 20 191 11 74 94 151 * 2 i"> 40 77 62 48 14 Aug 2,822 21 194 10 74 101 142 I i P 36 71 59 46 14 Sept v .... 2,750 20 209 9 72 93 146 1 i V7 38 68 59 45 14 Oct.» 2,652 20 219 9 70 98 146 2 57 35 70 66 52 15 > 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). • 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 $539 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 • Czechoslovakia, Poland, and Rumania only until 1963. their customers in the United States. Excludes foreign currencies held i Bolivia, Dominican Republic, Ei Salvador, and Guatemala only until by U.S. monetary authorities. 1963. See also NOTE to Table 2. « Until 1963 includes also the following Latin American republics: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEC. INTL. CAPITAL TRANSACTIONS OF THE U.S. 1799 .AIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— Foreign Collec- Accept- govt. se- End of period Total Total Total O i t n i f s o f t i n i c t i s u a 1 - l Banks Others s t t o i i a o u n n n g t d - s - f e o o i m a g r f n n a a c f e d c o e r e c s r s - t 2 . Others Total D w e e i i g t p h n o e f s r o i s t r s - c c p a n u o n a a r m p d i n t e m i c f e r e i l s - 2 . , Other4 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 19615 4,820 4,234 1,660 329 709 622 700 1 874 386 200 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 Oct 6,912 6,242 2,379 164 ,251 964 986 2,431 446 610 410 177 83 Nov 6,964 6,303 2,461 165 ,316 980 990 2,420 432 662 394 183 84 Dec 7,469 6,810 2,652 223 ,374 1 .055 ,007 2,600 552 659 400 182 77 Dec 6 7,950 7,323 2,773 221 ,403 1 J49 ,129 2,621 800 626 338 187 102 1965 Jan .. ... 7,762 7,130 2,788 221 427 1.140 051 2,511 779 633 345 181 107 Feb 7,881 7,220 2,947 250 ,491 ,206 ,007 2,499 765 661 350 188 123 Mar 7,929 7,327 2,954 243 .504 ,207 ,076 2,590 706 602 328 157 117 Apr 7,794 7,243 2,909 208 J493 ,208 ,082 2,584 668 550 312 138 100 May '7,767 r7,189 '2,818 213 r ,461 .144 ,091 2,607 673 577 332 147 98 June 7,748 7,180 2,854 231 ,476 J47 ,122 2,605 599 568 330 141 98 July 7,560 7 025 2,803 241 422 ,139 127 2,531 564 535 310 141 84 Aug 7,531 7,019 2,818 232 ,457 .129 ,150 2,509 542 512 300 125 87 Sept v 7,490 6,955 2,811 237 472 ,102 184 2,454 507 535 367 78 90 Octp 7,388 6,891 2,807 264 ,446 .097 ,188 2,421 476 496 321 82 93 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 $539 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 n r i u e c n r i i g - e n s U K d n i o i n m t g ed - 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 Africa1 ot A he ll r 2 1960 7 1,698 15 351 16 914 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—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 D D e e c c . . 4 305 I f ' 4 3 ,2 ,9 8 7 5 1 '3 3 , , 9 7 9 7 5 7 '2 1 8 9 8 5 * 1 7 8 7 7 '1 1 , , 6 61 3 1 2 '3 2 2 73 7 ' 1 1, , 2 1 7 6 5 2 4 3 3 8 0 5 2 2 3 5 8 5 ' 1 1 2 5 3 6 1 10 2 3 2 1965—Jan... 309 '4,513 '4,228 '283 2 86 '1,686 '351 1,370 455 259 '186 119 Feb.. 493 '4,735 '4,426 '304 5 90 '1,790 '399 1,403 454 276 '189 133 Mar.. 458 '4,746 r4,458 '284 5 96 '1,770 '364 1,406 472 297 '204 136 Apr.. 441 '4,680 '4,375 '299 6 95 '1,770 '378 1,334 479 295 '193 135 May. 441 '4,620 '4,316 '299 5 91 '1,698 '362 1,360 483 '296 '196 133 June. 501 '4,545 '4,239 '301 5 92 '1,655 '357 1,327 479 305 '203 128 July.. 442 '4,533 '4,233 '295 5 89 '1,619 '359 1,311 482 322 '207 '143 Aug.. 443 4,558 4,260 293 4 87 1,614 357 1,311 475 340 213 160 Sept.** 452 4,587 4,290 292 5 89 1,589 355 1,322 471 359 220 181 Ot 415 4,573 4,279 288 6 89 1,577 345 1,323 464 354 221 196 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 $314 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

1800 INTL. CAPITAL TRANSACTIONS OF THE U.S. DECEMBER 1965 7. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. Gov . bonds and notes l U. s S e . c u c r o i r ti p e o s ra 2 te Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P h u as r- es Sales c N ha e sa t s e l p e s s u o r- r c P ha u s r- es Sales c N ha s e a t s e l p e s s u o r- r ch P a u s r e - s Sales c N ha s e a t s e le p s s u o r r regional Total Official Other 1961 512 532 -20 3,384 3,161 223 802 1,262 -460 596 966 -370 1962 . ... -728 -521 -207 2,568 2,508 60 1,093 2,037 -944 702 806 -104 1963 671 302 369 2,980 2,773 207 991 2 086 — 1 095 696 644 51 1964 -338 -315 -23 -59 36 3,537 3,710 -173 915 1,838 -923 748 548 200 1964—Oct -30 -21 -9 -13 4 335 353 -17 252 399 -148 60 59 1 Nov -37 * -37 -40 3 297 292 5 86 342 -256 55 50 5 Dec 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 Feb n -38 30 32 -1 282 292 -9 55 269 -214 79 45 34 Mar ... -17 * -17 * -17 427 395 32 46 157 -111 78 55 23 Apr 65 * 65 65 338 342 4 88 183 -95 93 69 23 May -1 * -1 -15 14 346 342 4 '119 r148 r_29 70 52 18 June. 14 14 14 326 563 -236 97 r251 r-154 71 36 35 July 20 * 20 20 244 355 -112 72 135 -63 64 40 24 Aus . .. 8 -4 12 -2 14 234 335 — 100 47 90 — 44 69 44 25 Sept.p 6 6 6 365 393 -28 288 407 -119 75 54 21 Oct v -44 -44 -11 -55 430 439 -10 101 204 -102 67 52 15 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 State and local govt. securities, and securities of U.S. Govt. See also NOTE to Table 2. agencies and corporations which are not guaranteed by the United States. 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 2 Italy Sweden 1962 Dec 251 200 51 1963 Dec 730 50 30 275 200 175 163 125 13 25 1964 Nov 1,086 50 30 679 327 354 329 25 Dec 1,086 50 30 679 327 354 329 25 1965 Jan 1,086 50 30 679 327 354 329 ! 25 Feb 1,112 75 30 679 327 354 329 25 Mar 1,137 101 30 679 327 354 329 25 Apr 1,137 101 30 679 327 354 329 25 May 1,137 101 30 679 327 354 329 25 June 1,137 101 30 679 327 354 329 25 July 1,259 101 30 653 125 350 354 329 25 Aus 1,259 101 30 653 125 350 354 329 25 Sept 1,259 101 30 653 125 350 354 329 25 Oct 1,208 101 30 603 125 350 354 329 25 Nov 1,208 101 30 602 125 350 399 299 75 25 1 Includes bonds payable in Swiss francs to the Bank for International with transactions under the Columbia River treaty. Amounts out- Settlements. Amounts outstanding were $70 million May 1964-June standing were $204 million Sept. 1964-Oct. 1965 and $174 million for 1965 and $93 million July-Nov. 1965. Nov. 1965. 2 Includes bonds issued to the Government of Canada in connection Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 INTL. CAPITAL TRANSACTIONS OF THE U.S. 1801 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 Swit- United Latin Other Intl. Stocks Bonds France zer- King- Other Total Canada Amer- Asia Africa 1 coun- and land dom Europe Europe ica tries2 regional 1961 . 223 323 -99 21 166 — 17 61 232 — 112 44 44 3 12 1962 60 111 -51 4 129 -33 24 124 -43 -20 -18 1 17 1963 207 198 9 o — 14 206 16 199 — 47 14 17 1 22 1964 -173 -349 176 -37 -200 — 4 14 -228 3 25 10 — 1 18 1964—Oct... -17 -25 8 -6 -19 14 -1 -13 -7 2 Nov... 5 -27 32 -2 -26 41 -15 _2 5 2 Dec... -13 -37 24 -3 -14 -5 -1 -22 3 4 * i 1965—Jan.. . -9 * -9 * 2 -3 -1 -6 -3 _1 * t Feb... -9 8 -17 2 -2 7 -3 4 -11 2 * i Mar... 32 9 23 8 -2 -7 23 22 7 -2 3 1 Apr... -4 -49 45 -2 -13 * -4 -19 10 1 1 i, 3 May.. 4 -42 45 3 -5 -9 -1 -12 11 3 1 2 June.. -236 -65 -172 6 -41 -220 -7 -262 29 -3 -2 i 2 July. . -112 -96 -16 -4 -22 -90 -1 -117 11 -7 2 — \ i 3 Aug... -100 -93 -8 -8 -82 -2 -92 -13 _ j 4 1 Sept.P. -28 -39 11 4 20 -56 -3 -36 — 3 1 7 2 Oct. P. -10 -8 -1 3 7 -21 * -11 -4 * 4 1 1 Not reported separately until May 1963. NOTE.—Statistics include State and local goyt. securities, and securities 2 Yearly figures through 1963 include Africa. of U.S. Govt. agencies and corporations which are not guaranteed by the United States. 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 Af- Other Period Total gi r o e n al c e o i u g n n rope ada A i m ca er- Asia rica1 c tr o i u e n s2 - E pe n r d i o o d f Deposits U.S. Govt. Earmarked tries securities1 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—Nov... 256 8,278 12,672 1964—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 — 20 1 3 Mar... 162 7,741 13,187 Feb -180 -178 2 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 ••-11 3 r_14 14 '-17 10 -21 July... 147 7,221 13,108 June -119 9 -128 -42 '-62 -6 -23 1 3 Aug... 356 7,263 13,065 July -39 -13 -26 33 -39 -4 -2 I -16 Sept... 213 7,805 12,923 Aug -19 1 -20 16 -41 5 1 1 Oct.... 144 7,974 12,905 Sept.?. . . -98 -17 -81 27 -107 -5 12 4 -12 Nov... 149 8,171 12,824 Oct.** -88 6 -94 Q -88 3 -2 * 3 i U.S. Treasury bills, certificates of indebtedness, * 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

1802 INTL. CAPITAL TRANSACTIONS OF THE U.S. DECEMBER 1965 12. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1964 1965 1964 1965 June June* Sept. Dec. Mar. June? June June1 Sept. Dec. Mar. JuneP Europe: 3 3 3 2 2 6 5 5 7 7 5 Belgium . 21 20 22 20 25 21 21 20 17 19 16 16 1 1 1 2 2 7 7 6 6 9 11 Finland 1 1 1 1 1 1 5 5 8 7 6 6 28 27 31 31 35 47 69 67 50 61 69 71 36 34 44 63 70 73 82 79 95 140 114 117 Greece 5 5 4 4 5 6 9 9 10 10 7 8 Italy 24 22 27 26 16 16 101 99 90 95 84 81 46 46 31 33 40 50 30 30 32 31 28 31 Norway • 3 2 2 1 2 5 7 6 7 8 6 7 1 1 2 2 2 2 10 10 9 4 8 10 Spain 9 8 12 10 5 5 47 46 45 42 39 33 Sweden 7 7 7 8 6 9 17 17 19 19 21 23 19 18 36 33 34 35 19 17 16 22 29 41 Turkey . 5 4 5 6 7 7 5 5 4 9 12 8 102 97 108 102 98 94 284 280 407 329 364 293 1 1 1 1 1 1 3 3 3 3 6 5 Other Western Europe 3 2 4 5 6 5 6 6 6 9 7 4 ITQQ n * 1 ** * 1 * 1 1 * 2 * 2 3 2 3 i 2 Total 316 301 341 350 356 380 731 714 832 822 837 773 Canada 62 57 60 77 72 72 932 923 1,032 1,057 838 704 Latin America: Arcentina 6 5 4 3 3 2 20 20 26 30 33 29 Brazil 11 10 11 11 11 11 126 125 128 145 113 93 Chile 3 3 4 5 4 4 23 21 25 25 25 27 8 7 7 10 n 13 23 22 25 25 26 22 Cuba * * * * * 5 5 4 4 4 4 8 7 8 6 6 6 62 58 64 69 69 70 Panama .. .. 21 21 26 28 25 21 10 10 9 12 11 9 Peru 6 5 5 7 7 5 23 22 23 26 21 27 1 1 1 1 1 2 6 6 8 10 9 11 22 21 20 16 19 19 40 38 45 46 40 43 9 8 11 15 n 15 45 42 47 51 49 55 Bahamas and Bermuda 2 2 2 2 2 2 21 20 19 11 8 9 Neth. Antilles & Surinam 7 7 9 6 5 6 5 4 3 3 Other Latin America 6 6 4 6 1 1 11 9 10 10 9 9 Total . . . 112 104 111 115 107 108 422 404 438 468 420 412 Asia: 2 2 1 1 1 1 * Hong Kong 2 2 2 2 2 2 5 5 7 9 9 8 India 14 13 16 21 24 39 38 37 41 45 41 5 5 3 4 6 7 5 5 4 4 6 Israel 1 1 1 1 2 2 8 7 7 7 6 7 27 25 31 28 30 161 160 174 180 181 172 1 1 * 1 « * 4 4 5 4 5 6 5 4 6 5 6 6 11 11 14 11 15 14 Taiwan 1 1 * 3 2 1 4 4 5 5 5 7 1 1 1 1 1 1 7 7 7 5 7 7 Other Asia 21 19 21 21 24 23 53 51 55 60 62 67 Total 80 73 82 88 87 98 298 294 315 327 339 333 Africa: 1 1 3 4 * * 2 2 5 6 2 3 Morocco * * 1 * 1 2 1 1 2 South Africa 10 10 11 14 22 22 13 12 11 11 19 24 U.A.R. (Egypt) 2 2 1 3 1 2 13 13 12 13 17 12 Other Africa 6 5 5 10 10 7 26 25 27 26 23 27 Total 19 18 22 31 34 32 55 53 57 57 63 68 Other countries: 25 27 27 26 25 9 37 36 38 38 33 36 AUother 6 5 8 9 8 6 6 7 7 8 7 Total 33 32 34 34 32 34 43 41 45 45 41 43 International and regional 1 1 * * * 1 1 * Grand total 622 585 650 695 688 725 2,482 2,430 2,719 2,776 2,539 2,333 l 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 and other nonbanking institutions in the United States. was $100,000. Data exclude claims held through 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

DECEMBER 1965 MONEY RATES 1803 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Nov. 30, 1964 Rate Country 1964 1965 N a o s v . o 3 f 0, 1965 Per Month cent effective Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Argentina 6.0 Dec. 1957 6.0 Austria 4.5 June 1963 4.5 Belgium 4.75 July 1964 4.75 Brazil 10.0 Apr. 1958 12.0 12.0 4.0 Feb, 1962 4.0 Canada 1 4.25 Nov. 1964 4.25 Ceylon 4.0 Aug. 1960 5 0 5.0 Chile 2 14.63 July 1964 15.09 15.30 15.30 Colombia 8.0 May 1963 8.0 Costa Rica 3.0 Apr. 1939 3.0 Denmark 6.5 June 1964 6.5 5.0 Nov. 1956 5.0 El Salvador 4.0 Aug. 1964 4.0 Finland 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 Ghana 4.5 Oct. 1961 4.5 5.5 Jan. 1963 5.5 Honduras 3 3.0 Jan. 1962 3.0 Iceland 9.0 Dec. 1960 8 0 8.0 India 5.0 Sept. 1964 6 0 6.0 Indonesia 9.0 Aug. 1963 9.0 Iran 4.0 Oct. 1963 4.0 Ireland 6.87 Nov. 1964 6.81 6.75 6.81 6.69 6.50 5.92 6.00 5.81 5.84 5.08 5.08 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 3.5 Jamaica 5 0 Nov 1964 5.0 Japan 6.57 Mar. 1964 6 21 5 84 5.48 5.48 Korea 10.5 Mar. 1964 21.0 21.0 Mexico 4.5 June 1942 4.5 Netherlands 4.5 June 1964 4.5 New Zealand 7.0 Mar. 1961 7.0 6.0 Apr. 1954 6.0 3.5 Feb. 1955 3.5 Pakistan 4.0 Jan. 1959 5.6 5.0 Peru 9.5 Nov. 1959 9.5 Philippine Republic 4 6.0 Jan. 1962 6.0 Portugal 2.0 Jan. 1944 2.5 2.5 South Africa 4.0 July 1964 4.5 5 0 5.0 Spain 4.0 June 1961 4.0 Sweden 5.0 Nov 1964 5.5 5.5 2.5 July 1964 2.5 Taiwan 5 14.04 July 1963 14.04 Thailand 5.0 Oct. 1959 5.0 Tunisia 4.0 Oct. 1962 4.0 Turkey 7.5 May 1961 7.5 United Arab Rep. (Egypt)... 5.0 May 1962 5.0 United Kingdom 7.0 Nov. 1964 6.0 6.0 Venezuela 4.5 Dec. 1960 4.5 1 On June 24, 1962, the bank rate on advances to chartered banks shown is the one at which it is understood the central bank transacts was fixed at 6 per cent. Rates on loans to money market dealers will the largest proportion of its credit operations. Other rates for some continue to be .25 of 1 per cent above latest weekly Treasury bill tender of these countries follow: average rate but will not be more than the bank rate. Argentina—3 and 5 per cent for certain rural and industrial paper, de- 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at pending on type of transaction; the average rate charged by banks in the previous half year. Old redis- Brazil—8 per cent for secured paper and 4 per cent for certain agricultural counts remain subject to old rates provided their amount is reduced by paper; one-eighth each month beginning with May 1, 1959, but the rates are Colombia—5 per cent for warehouse receipts covering approved lists of raised by 1.5 per cent for each month in which the reduction does not products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent occur. for rediscounts in excess of an individual bank's quota; 3 Rate shown is for advances only. Costa Rica—5 per cent for paper related to commercial transactions * Beginning with June 1, 1962, the rediscount rate for commercial (rate shown is for agricultural and industrial paper); bank loans financing the purchase of surplus agricultural commodities Ecuador—6 per cent for bank acceptances for commercial purposes; under U.S. Law 480 was reduced from 6 to 3 per cent; and on Aug. 22, Indonesia—various rates depending on type of paper, collateral, com- 1962, the rediscount rate for commercial bank financing of 9 categories modity involved, etc.; of development loans was reduced from 6 to 3 per cent. Japan—penalty rates (exceeding the basic rate shown) for borrowings 5 Rate shown is for call loans. from the central bank in excess of an individual bank's quota; Peru—8 per cent for agricultural, industrial and mining paper; and NOTE.—Rates shown are mainly those at which the central bank either Venezuela—4 per cent for rediscounts of certain agricultural paper and discounts or makes advances against eligible commercial paper and/or for advances against govt. bonds or gold and 5 per cent on advances govt. securities for commercial banks or brokers. For countries with against securities of Venezuelan companies. more than one rate applicable to such discounts or advances, the rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1804 MONEY RATES; ARBITRAGE DECEMBER 1965 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y of Netherlands Sw la i n tz d er- Month 3 T m r b e o i a l n s ls u t , h ry s1 D m a o d y n a - y e t y o 2 - 3 B a a a m 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 m Da o d y n a - y e t y o 3 - Tr 6 d b e 0 a i a l - y s l 9 s s u 0 , 4 ry m Da o d y n a - y e t y o 5 - 3 T r m b e i a o l s l n s u , t r h y s D m a d o y a n - y e to y - d P is r r c i a v o t a e u t n e t 1962—Dec 3.88 3.75 3.86 3.64 3.30 2.50 3.51 2.63 3.50 1.98 1.24 2.00 1963—Dec 3.71 3.55 3.91 3.74 3.00 2.00 4.66 2.63 2.56 2.25 1.56 2.00 1964—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 Aug 4.08 3.91 5.97 5.56 4.97 4.00 4.01 3.88 3.44 4.07 2.68 3.00 Sept 4.11 3.98 5.97 5.51 4.95 4.00 3.86 3.88 4.75 4.00 2.66 3.00 Oct 4.14 3.93 5.92 5.42 4.96 4.00 3.88 4.31 4.07 3.13 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 1Jnited States and Canada Treasury bill rates Treasury bill rates Date q K ( u U i a o n U d n g t j . i a . S d t t e . o t i d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o a r d n) P d f ( ( r o p i e - s + r o m c w ) u ) o o i o n a u u n r d r n m d t i L n ( c o f N e a n o v n o d 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 . t io 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 ( ( d r o a i e - s + o r n m c w ) l a ) o l o d a i o a u u n r i r r a n s m d n t C in ( a c f N n e a o n v a e f t o d t i r v a e ) basis) Canada basis 1965 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 Aug 6 5 46 3.82 1.64 -2.54 -.90 4.09 3.99 3.82 + .17 -.07 + 10 13 5.36 3.81 1.55 -2.49 -.94 4.10 4.00 3.81 + .19 + .14 + .33 20 5 36 3.81 1.55 -2.51 -.96 4.08 3.98 3.81 + .17 .00 + .17 27 5.39 3.83 1.56 -2.49 -.93 4.09 3.99 3.83 + .16 -.14 + .02 Sept. 3 5.36 3.84 1.52 -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 17 5.36 3.86 1.50 -1.88 -.38 4.09 3.99 3.86 + .13 -.40 -.27 24 5.36 3.94 1.42 -1.73 -.31 4.08 3.98 3.94 + .04 -.61 -.57 Oct. 1 5.27 3.99 1.28 -1.38 -.10 4.16 4.06 3.99 + .07 -.54 -.47 g 5.24 3.98 1.26 -1.35 -.09 4.10 4.00 3.98 + .02 -.60 -.58 15 5.30 3.99 1.31 -1.27 + .04 4.13 4.03 3.99 + .04 -.67 -.63 22 5.30 4.01 1.29 -1.23 + .06 4.18 4.08 4.01 + .07 -.74 -.67 29 5.27 4.03 1.24 -1.29 -.05 4.17 4.07 4.03 + .04 -.67 -.63 Nov 5 5 33 4 04 1.29 -1.33 -.04 4.18 4.08 4.04 + .04 -.60 - 56 12 .. 5.33 4.05 1.28 -1.32 -.04 4.21 4.11 4.05 + .06 -.67 -.61 19 5.33 4.07 1.26 -1.26 .00 4.18 4.08 4.07 + .01 -.81 -.80 26 5.24 4.09 1.15 -1.10 + .05 4.16 4.06 4.09 -.03 -.67 -.70 Dec. 3 5.24 4.10 1 . 14 -1.07 + .07 4.18 4.08 4.10 -.02 -.81 -.83 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

DECEMBER 1965 FOREIGN EXCHANGE RATES 1805 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Ar ( g p e e n so ti ) na (p t A r o a u u l s n i - a d) (s A ch u i s l t l r in ia g) B ( e fr l a g n iu c m ) C (d a o n l a la d r a ) ( C r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n n c c e ) 1959. 1.2730 223.81 3.8619 2.0012 104.267 21.055 14.508 .3115 .2038 1960. 1.2026 223.71 3.8461 2.0053 103.122 21.048 14.505 .3112 20.389 1961. 1.2076 223.28 3.8481 2.0052 98.760 21.023 14.481 .3110 20.384 1962. .9080 223.73 3.8685 2.0093 93.561 21.034 14.490 .3107 20.405 1963. .7245 223.10 3.8690 2.0052 92.699 21.015 14.484 3 31.057 420.404 1964. .7179 222.48 3.8698 2.0099 92.689 20.988 14.460 31.067 20.404 1964—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 ,8697 2.0148 93.109 20.943 14.458 31.079 20.404 Feb.. .6615 222.72 ,8681 2.0147 92.943 20.967 14.460 31.081 20.404 Mar.. .6629 222.50 ,8694 2.0144 92.480 20.950 14.453 31.080 20.400 Apr.. 1.6627 222.80 ,8700 2.0147 92.654 20.948 14.462 31.081 20.401 May. 2.5814 222.87 ,8701 2.0147 92.627 20.951 14.456 31.098 20.397 June. .5805 222.49 ,8713 2.0147 92.381 20.939 14.429 31.062 20.405 July.. .5802 222.39 ,8726 2.0145 92.280 20.935 14.418 31.061 20.405 Aug.. .5806 222.Zl ,8724 2.0146 92.714 20.934 14.405 31.061 20.403 Sept.. .5632 222.84 ,8721 2.0140 92.888 20.952 14.457 31.060 20.400 Oct... .5542 223.35 ,8707 2.0130 92.999 20.989 14.502 31.059 20.393 Nov.. .5546 223.40 3.8700 2.0145 93.009 21.008 14.506 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 s l i l a l a a y r - ) M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - s r) Z (p e N o a u e la w n n d d ) 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—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 Sept.. 24.934 20.943 279.67 .16005 .27597 32.621 8.0056 27.781 276.90 Oct.. 24.968 20.978 280.31 .16003 .27602 32.694 8.0056 27.772 277.53 Nov.. 24.997 20.990 280.37 .16003 .27661 32.679 8.0056 27.756 277.59 Period N (k o r r o w n a e y ) R P ( e p p h p e i i u n l s i b e o p l ) - ic (e P s o g c r u a t l d u o - ) (pou S n o d u ) th Afr ( i r c a a nd) (p S e p s a e i t n a) S (k w ro ed n e a n ) z ( e f S r r w a la n i n t c - d ) ( U p K d o n i o u i n m t n g e d - d ) 1959. 14.028 49.721 4967 279.83 2.0579 19.324 23.142 280.88 1960. 14.018 49.770 4937 279.71 .6635 19.349 23.152 280.76 1961. 14.000 4909 279.48 139.57 .6643 19.353 23.151 280.22 1962. 14.010 4986 139.87 .6654 19.397 23.124 280.78 1963. 13.987 4891 139.48 .6664 19.272 23.139 280.00 1964. 13.972 3.4800 139.09 .6663 19.414 23.152 279.21 1964—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 .4783 139.05 .6665 19.465 23.149 279.13 Feb 13.982 .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 Sept 13.990 3.4786 139.31 .6662 19.352 23.162 279.67 Oct 13.998 3.4871 139.63 .6658 19.329 23.150 280.31 Nov 14.001 3.4928 139.66 .6657 19.329 23.150 280.37 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 markka, 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

1806 U.S. BALANCE OF PAYMENTS DECEMBER 1965 U.S. BALANCE OF PAYMENTS (In millions of dollars) 1964 1965 Item 1962 1963 1964 III IV A. Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets, and other than special U.S. Govt. transactions- Seasonally adjusted Exports of goods and services—Total 1. 30,278 32,353 37,017 9,084 8,991 9,335 9,607 8,670 10,084 Merchandise 20,604 22,069 25,288 6,149 6,067 6,382 6,690 5,586 6,762 Military sales 656 659 762 194 191 168 209 174 231 Investment income receipts, private.. 3,954 4,156 5,003 1,266 1,263 1,260 1,214 1,413 1,509 Investment income receipts, Govt.... 471 498 454 130 132 132 60 139 146 Other services 4,593 4,971 5,510 1,345 1,338 1,393 1,434 1,358 1,436 Imports of goods and services—Total. -25,129 -26,436 -28,457 -6,878 -7,061 -7,136 -7,382 -7,152 -8,078 Merchandise , -16,173 -16,992 -18,619 -4,410 -4.599 -4.709 -4,901 -4,663 -5,469 Military expenditures , -3,078 -2.929 -2,824 -732 -720 -691 -681 -662 -693 Investment income payments -1,056 -1,271 -1,404 -341 -345 -347 -371 -375 -393 Other services -4,822 -5,244 -5,610 -1,395 -1,397 -1,389 -1,429 -1,452 -1,523 Balance on goods and services 1. 5,149 5,917 8,560 2,206 1,930 2,199 2,225 1,518 2,006 Remittances and pensions -738 -837 -839 -209 -203 -207 -220 -224 -288 1. Balance on goods, services, remittances and pensions 4,411 5,080 7,721 1,997 1,727 1,992 2,005 1,294 1,718 2. U.S. Govt. grants and capital flow, net, excluding advance debt repayments -3,547 -3,813 -3,636 -813 -888 -921 -1,014 -805 -954 -1,919 -1,917 -1,884 -470 -538 -425 -451 -437 -477 L G o r n an g t - s te 2 rm , 3 loans and subscriptions 3 -2,129 -2,187 -2,349 -521 -697 -601 -530 -632 -693 Ch s a h n o g r e t- te i r n m f c o l r a e i i m gn s , n c e u t rr ( e in n c c r y e as h e o , ld — in ) g 3 s and -245 -447 -27 72 69 21 -189 147 -45 Seasonal adjustment on three preceding items -47 83 -80 44 -51 87 combined 147 94 49 -8 35 4 18 4 -10 C Sc h h a e n d g u e l e i d n 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 599 644 575 161 160 160 94 164 184 3. U.S. private capital, net -3,425 -4,456 -6,462 -1,327 -1,344 -1,569 -2,222 -1,533 -264 Direct investments abroad -1,654 -1,976 -2,376 -464 -540 -551 -821 -1,159 -882 Other long-term capital -1,227 -1,695 -1,975 -274 -256 -612 -833 -688 115 Short-term capital -544 -785 -2,111 -589 -548 -406 -568 314 503 4. Foreign capital, net, excluding liquid assets in U.S 153 303 432 14 112 196 110 274 -215 Foreign long-term investments in U.S 272 326 110 6 94 -72 82 281 -271 Foreign short-term capital -115 -24 115 4 19 64 28 -8 50 Miscellaneous U.S. Govt. nonliquid liabilities, 207 4 -1 204 1 6 -4 1 5. Errors and unrecorded transactions -1,161 -288 -152 -291 -430 -10 -166 -1,197 -401 Balance of A (= 1+2+3+4+5) -3,106 -417 -545 -593 -1,551 -780 119 Less: Net seasonal adjustments -3,605 -3,287 -481 50 428 3 -521 47 Balance of A before seasonal adjustment. -3*106 64 -595 -1,021 -1,554 -259 72 :3,605 -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 -64 595 1,021 1,554 259 -72 Advance repayments on U.S. Govt. loans ' 681 326 122 52 33 30 7 10 6 Advances on U.S. military exports, net.... 470 334 222 163 -62 -28 149 69 126 Sales of nonconvertible nonmarketable securities net 5 251 -43 -36 -55 -8 -2 29 -2 Dollar securities 6 31 -16 -5 -8 -2 -1 -2 Foreign currency securities *25i -74 -20 -50 30 Sales of convertible nonmarketable securities, net 5.. 703 375 122 203 50 51 D Fo o r l e la ig r n s e c c u u r r r i e ti n e c s y securities 5 1 5 5 3 0 375 122 '263" '56" 'si Change in U.S. short-term liabilities reported by U.S. banks7 and foreign holdings of marketable U.S. Govt. bonds and notes 670 7,559 2,252 -173 207 748 1,470 -713 -270 International and regional organizations 8 211 -236 -245 -86 -25 -140 6 -65 -26 Foreign private holders excluding banks 9 131 393 359 35 57 122 145 78 116 Foreign commercial banks -129 462 1,440 278 82 580 500 186 -246 Foreign official holders 457 970 698 -400 93 186 819 -912 -114 Change in U.S. monetary reserve assets (increase, —). 1,533 378 171 -51 303 70 -151 842 68 IMF position 626 30 266 131 118 135 -118 68 10-466 Convei tible currencies 17 -113 -220 -228 258 -45 -205 -58 -56 Gold 890 461 125 46 -73 -20 172 832 10 590 1 Excludes military transfers under grants. 8 Includes, for International Monetary Fund, only changes in its 2 Excludes military grants. holdings of income-earning U.S. Govt. securities. 3 Not seasonally adjusted separately. 9 Includes undetermined holders. 4 Includes sell-offs. !0 Reflects payment of $259 million increase in U.S. gold subscrip- 5 With maturities over 12 months. tion to the IMF. 6 Includes certificates sold abroad by Export-Import Bank. 7 Includes official liabilities. NOTE.—Dept. of Commerce data. Minus sign indicates net payments (debits); absence of sign indicates net receipts (credits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DECEMBER 1965 FOREIGN TRADE 1807 MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars, seasonally adjusted) Exports i Imports 2 Export surplus Period 1962 1963 1964 1965 1962 1963 1964 1965 1962 1963 1964 1965 Month: Jan 1,668 3986 2,043 31,217 1,327 31,100 1,434 31,206 341 3-114 609 311 Feb 1,809 32,124 2,046 31,593 1,320 31,510 1,460 31,601 489 3614 586 3-8 Mar 1,672 31,958 2,074 32,753 1,342 31,485 1,520 31,869 330 3473 554 3884 Apr 1,795 31,914 2,061 32,380 1,365 3J.4I5 1,541 31,835 430 3499 520 3545 May .... 1,762 1,895 2,062 32,278 1,404 ,416 1,539 31,799 358 479 523 3479 June 1,836 1,803 2,034 32,185 1,351 ,431 1,518 31,835 485 372 516 3350 July 1,748 1,841 2,123 2,263 1,347 ,450 1,578 41,670 401 391 545 4593 A.UE .... 1,703 1,922 2,109 2,346 1,346 ,497 1,575 31,725 357 425 534 3621 Sept 31,908 1,958 2,235 2,298 31,471 ,443 1,546 31,787 3437 515 689 3511 Oct 31,523 1,967 2,155 2,349 31,312 ,455 1,548 32,002 3211 512 607 3347 Nov 1 725 1 966 2 197 1 425 I 466 31 698 300 500 3499 Dec 31,839 2 091 32 430 31 377 480 31,642 3462 611 3788 Quarter: I 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 HI 35,359 5,721 6,467 6,907 34,164 4,390 4,699 45,182 31,195 1,331 1,768 41,725 IV 35,087 6,024 36,782 34,114 4,401 34,888 3973 1,623 31,894 Year5 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 Significantly affected by strikes and by change in statistical procedures. Mutual Security Program. 5 Sum of unadjusted figures. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. NOTE.—Bureau of the Census data. 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, Senior Adviser to the Board ROBERT C. HOLLAND, Adviser to the Board ROBERT SOLOMON, Adviser to the Board CHARLES MOLONY, Assistant to the Board ROBERT L. CARDON, Legislative Counsel CLARKE L. FAUVER, Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF BANK OPERATIONS MERRITT SHERMAN, Secretary JOHN R. FARRELL, Director KENNETH A. KENYON, Assistant Secretary M. B. DANIELS, Assistant Director ELIZABETH L. CARMICHAEL, Assistant Secretary JOHN N. KILEY, JR., Assistant Director ARTHUR L. BROIDA, Assistant Secretary KARL E. BAKKE, Assistant Secretary DIVISION OF EXAMINATIONS LEGAL DIVISION FREDERIC SOLOMON, Director GLENN M. GOODMAN, Assistant Director HOWARD H. HACKLEY, General Counsel BRENTON C. LEAVITT, Assistant Director DAVID B. HEXTER, Associate General Counsel JAMES C. SMITH, Assistant Director THOMAS J. O'CONNELL, Assistant General ANDREW N. THOMPSON, Assistant Director Counsel LLOYD M. SCHAEFFER, Chief Federal Reserve JEROME W. SHAY, Assistant General Counsel Examiner WILSON L. HOOFF, Assistant General Counsel DIVISION OF PERSONNEL ADMINISTRATION DIVISION OF RESEARCH AND STATISTICS EDWIN J. JOHNSON, Director DANIEL H. BRILL, Director H. FRANKLIN SPRECHER, JR., Assistant Director ALBERT R. KOCH, Deputy Director J. CHARLES PARTEE, Associate Director FRANK R. GARFIELD, Adviser DIVISION OF ADMINISTRATIVE SERVICES KENNETH B. WILLIAMS, Adviser JOSEPH E. KELLEHER, Director STEPHEN H. AXILROD, Associate Adviser HARRY E. KERN, Assistant Director LEWIS N. DEMBITZ, Associate Adviser LYLE E. GRAMLEY, Associate Adviser STANLEY J. SIGEL, Associate Adviser OFFICE OF THE CONTROLLER TYNAN SMITH, Associate Adviser JOHN KAKALEC, Controller SAMPSON H. BASS, Assistant Controller DIVISION OF INTERNATIONAL FINANCE RALPH A. YOUNG, Director OFFICE OF DEFENSE PLANNING ROBERT L. SAMMONS, Associate Director INNIS D. HARRIS, Coordinator A. B. HERSEY, Adviser REED J. IRVINE, Adviser DIVISION OF DATA PROCESSING SAMUEL I. KATZ, Adviser JOHN E. REYNOLDS, Adviser M. H. SCHWARTZ, Director RALPH C. WOOD, Adviser LEE W. LANGHAM, Assistant Director 1808 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET COMMITTEE AND ADVISORY COUNCIL 1809 Federal Open Market Committee WM. MCC. MARTIN, JR., Chairman ALFRED HAYES, Vice Chairman C. CANBY BALDERSTON HUGH D. GALUSHA, JR. J. L. ROBERTSON J. DEWEY DAANE SHERMAN J. MAISEL CHARLES J. SCANLON GEORGE H. ELLIS GEORGE W. MITCHELL CHAS. N. SHEPARDSON HAROLD T. PATTERSON RALPH A. YOUNG, Secretary ERNEST T. BAUGHMAN, Associate Economist MERRITT SHERMAN, Assistant Secretary GEORGE GARVY, Associate Economist KENNETH A. KENYON, Assistant Secretary ^ , . n TT r J ROBERT C. HOLLAND, Associate Economist ARTHUR L. BROIDA, Assistant Secretary __ _ . _ , ALBERT R. KOCH, Associate Economist TT HOWARD H. HACKLEY, General Counsel DAVID B. HEXTER, Assistant General Counsel CHARLES T. TAYLOR, Associate Economist DANIEL H. BRILL, 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

1810 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Federal Reserve Banks and Branches Federal Reserve Bank Chairman President Vice President or branch Deputy Chairman First Vice President in charge of branch Zip code Boston ..02106 Erwin D. Canham George H. Ellis William Webster Earle O. Latham New York 10045 Philip D. Reed Alfred Hayes Everett N. Case William F. Treiber Buffalo ..14240 Maurice R. Forman Insley B. Smith Philadelphia ,,19101 Walter E. Hoadley Karl R. Bopp Willis J. Winn Robert N. Hilkert Cleveland 44101 Joseph B. Hall W. Braddock Hickman Logan T. Johnston Edward A. Fink Cincinnati 45201 Walter C. Langsam Fred O. Kiel Pittsburgh ..15230 G. L. Bach Clyde E. Harrell Richmond ..23213 Edwin Hyde Edward A. Wayne William H. Grier Aubrey N. Heflin Baltimore 21203 Leonard C. Crewe, Jr. Donald F. Hagner Charlotte ..28201 J. C. Cowan, Jr. Edmund F. MacDonald Atlanta ..30303 Jack Tarver Harold T. Patterson J. M. Cheatham Monroe Kimbrel 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 Fredric W. Reed Houston 77001 D. B. Campbell J. Lee Cook San Antonio ...78206 John R. Stockton Carl H. Moore San Francisco 94120 F. B. Whitman Eliot J. Swan John D. Fredericks H. Edward Hemmings Los Angeles ...90054 Arthur G. Coons Clifford H. Watkins Portland 97208 Graham J. Barbey William M. Brown Salt Lake City... 84110 Howard W. Price Arthur L. Price Seattle 98124 William McGregor Erwin R. Barglebaugh Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications The material listed may be obtained from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND INDUSTRIAL PRODUCTION—1957-59 Base. 1962. FUNCTIONS. 1963. 297 pp. 172 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. ANNUAL REPORT. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per THE FEDERAL RESERVE ACT, as amended through annum or $.60 a copy in the United States and Oct. 1, 1961, with an appendix containing proits possessions, Bolivia, Canada, Chile, Co- visions of certain other statutes affecting the lombia, Costa Rica, Cuba, Dominican Republic, Federal Reserve System. 386 pp. $1.25. Ecuador, Guatemala, Haiti, Republic of Hon- SUPPLEMENT TO BANKING AND MONETARY STATISduras, Mexico, Nicaragua, Panama, Paraguay, TICS. Sec. 1. Banks and the Monetary System. Peru, El Salvador, Uruguay, and Venezuela; 10 1962. 35 pp. $.35. Sec. 9. Federal Reserve Banks or more of same issue sent to one address, $5.00 1965. 36 pp. $.35. Sec. 10. Member Bank Reper annum or $.50 each. Elsewhere, $7.00 per serves and Related Items. 1962. 64 pp. $.50. annum or $.70 a copy. Sec. 11. Currency 1963. 11 pp. $.35. Sec. 14. FEDERAL RESERVE CHART BOOK ON FINANCIAL AND Gold. 1963. 24 pp. $.35. Sec. 15. International BUSINESS STATISTICS. Monthly. Annual subscrip- Finance. 1962. 92 pp. $.65. Sec. 16. (New) tion includes one issue of Historical Chart Book. Consumer Credit. 1965. 103 pp. $.65. $6.00 per annum or $.60 a copy in the United BANK MERGERS & THE REGULATORY AGENCIES: States and the countries listed above; 10 or more APPLICATION OF THE BANK MERGER ACT OF of same issue sent to one address, $.50 each. 1960. 1964. 260 pp. $1.00 a copy; 10 or more Elsewhere, $7.00 per annum or $.70 a copy. sent to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. BANKING MARKET STRUCTURE & PERFORMANCE Subscription to monthly chart book includes one issue. $.60 a copy in the United States and coun- IN METROPOLITAN AREAS: A STATISTICAL STUDY tries listed above; 10 or more sent to one ad- OF FACTORS AFFECTING RATES ON BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or more sent to dress, $.50 each. Elsewhere, $.70 a copy. one address, $.40 each. TREASURY-FEDERAL RESERVE STUDY OF THE GOV- MONETARY THEORY AND POLICY: A Bibliography. ERNMENT SECURITIES MARKET. Pt. I. 1959. 108 Part I—Domestic Aspects. 137 pp. $1.00 a pp. Pt. II. 1960. 159 pp. Pt. III. 1960. 112 pp. copy; 10 or more sent to one address, $.85 each. Individual books $1.00 each; set of 3, $2.50. FLOW OF FUNDS IN THE UNITED STATES, 1939-53. REGULATIONS OF THE BOARD OF GOVERNORS OF 1955. 390 pp. $2.75. THE FEDERAL RESERVE SYSTEM. DEBITS AND CLEARINGS STATISTICS AND THEIR RULES OF ORGANIZATION AND PROCEDURE—BOARD USE. 1959. 144 pp. $1.00 a copy; 10 or more OF GOVERNORS OF THE FEDERAL RESERVE SYSsent to one address, $.85 each. TEM. 1962.40 pp. THE FEDERAL FUNDS MARKET. 1959. Ill pp. PUBLISHED INTERPRETATIONS of the Board of $1.00 a copy; 10 or more sent to one address, Governors, as of Mar. 31, 1965. $2.50. $.85 each. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 ALL-BANK STATISTICS, 1896-1955. 1959. 1,229 pp. a copy; 10 or more sent to one address, $.85 $4.00. each. 1811 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1812 FEDERAL RESERVE BULLETIN • DECEMBER 1965 PERIODIC RELEASES FEDERAL RESERVE PAR LIST (Also annual list.) (G.3) WEEKLY INTERDISTRICT SETTLEMENT FUND (G.15) INDEX NUMBERS OF WHOLESALE PRICES (G.8) APPLICATIONS RECEIVED, OR ACTED ON, BY THE BOARD (H.2) MONTHLY FOREIGN EXCHANGE RATES (G.5) NATIONAL SUMMARY OF BUSINESS CONDITIONS COMMERCIAL AND INDUSTRIAL LOANS OUTSTAND- (G.12.2) ING BY INDUSTRY (H.I2) OPEN MARKET MONEY RATES AND BOND PRICES CONDITION OF WEEKLY REPORTING MEMBER (G.13) BANKS IN NEW YORK AND CHICAGO (H.4.3) RETAIL FURNITURE REPORT (G.I6) CONDITION OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES (H.4.2) SALES FINANCE COMPANIES (G.20) DEMAND DEPOSITS, CURRENCY, AND RELATED STATE MEMBER BANKS OF THE FEDERAL RESERVE ITEMS (H.6) SYSTEM AND NONMEMBER BANKS THAT MAIN- TAIN CLEARING ACCOUNTS WITH FEDERAL RE- FACTORS AFFECTING BANK RESERVES AND CON- SERVE BANKS (Also annual list) (G.4) DITION STATEMENT OF F. R. BANKS (H.4.1) MONTHLY U.S. GOVERNMENT SECURITY YIELDS RESERVE POSITIONS OF MAJOR RESERVE CITY AND PRICES (G.I4) BANKS (H.5) WEEKLY FOREIGN EXCHANGE RATES (H.10) QUARTERLY-SEMI ANNUALLY WEEKLY U.S. GOVERNMENT SECURITY YIELDS AND PRICES (H.I5) ALL BANKS IN THE UNITED STATES AND OTHER AREAS—PRINCIPAL ASSETS AND LIABILITIES, BY STATES (E.4) SEMIMONTHLY-IRREGULAR BANK RATES ON SHORT-TERM BUSINESS LOANS ASSETS AND LIABILITIES OF ALL BANKS IN THE (E.2) UNITED STATES (J.4) MATURITY DISTRIBUTION OF OUTSTANDING NEGO- CHANGES IN STATE BANK MEMBERSHIP (K.3) TIABLE TIME CERTIFICATES OF DEPOSIT (E.8) DEPOSITS, RESERVES, AND BORROWINGS OF MEM- SUMMARY REPORT—ASSETS AND LIABILITIES OF BER BANKS (J.I) MEMBER BANKS (E.3.1) RESEARCH LIBRARY—RECENT ACQUISITIONS (J.2) MEMBER BANK LOANS (E.3.4) SALES, PROFITS, AND DIVIDENDS OF LARGE COR- MONTHLY PORATIONS (E.6) ASSETS AND LIABILITIES OF ALL MEMBER BANKS, BY DISTRICTS (G.7.1) ANNUALLY BANKS DEBITS AND DEPOSIT TURNOVER (G.6) BANK DEBITS TO DEMAND DEPOSIT ACCOUNTS BUSINESS INDEXES (G.12.3) EXCEPT INTERBANK AND U.S. GOVERNMENT ACCOUNTS (C.5) CONSUMER CREDIT (G.I9) MEMBER BANK INCOME (C.4) CONSUMER CREDIT AT CONSUMER FINANCE COM- PANIES (G.22) CONSUMER INSTALMENT CREDIT AT COMMERCIAL BIENNIALLY BANKS (G.I8) DISTRIBUTION OF BANK DEPOSITS BY COUNTIES DEPARTMENT STORE CREDIT (G.I7) AND STANDARD METROPOLITAN AREAS (C.8) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS 1813 STAFF PAPERS Murray Altmann, PRICE ANALYSIS AND ECONOMIC (Special papers on economic and financial subjects DEVELOPMENTS. Oct. 1965. included in the Federal Reserve BULLETIN because Leonall C. Andersen, A STUDY OF FACTORS AFof their general interest. Available as reprints FECTING THE MONEY STOCK—PHASE ONE. Oct. unless otherwise noted.) 1965. Daniel H. Brill, CRITERIA FOR CONDUCT OF MON- Stephen H. Axilrod, LIQUIDITY AND PUBLIC POL- ETARY POLICY; IMPLICATIONS OF RECENT RE- ICY. Oct. 1961. 17 pp. SEARCH. Dec. 1965. Stephen H. Axilrod and Ralph A. Young, INTER- Royal Shipp and Robert Moore Fisher, THE POST- EST RATES AND MONETARY POLICY. Sept. 1962. WAR BOOM IN HOTELS AND MOTELS. Dec. 1965. 28 pp. Printed in full in the Federal Reserve Bulletin. Paul F. McGouldrick, A SECTORAL ANALYSIS OF (Available as reprints unless otherwise noted.) VELOCITY. Dec. 1962. 14 pp. Lyle E. Gramley and Samuel B. Chase, Jr., TIME Robert F. Gemmill, NEW FOREIGN BOND ISSUES DEPOSITS IN MONETARY ANALYSIS. Oct. 1965. IN THE U.S. MARKET. May 1963. 13 pp. 25 pp. Daniel H. Brill, RECENT CHANGES IN LIQUIDITY. OTHER REPRINTS June 1963. 10 pp. (From Federal Reserve BULLETIN unless preceded Brenton C. Leavitt, A BANK EXAMINER LOOKS AT by an asterisk.) AGRICULTURAL LENDING. July 1963. 8 pp. THE HISTORY OF RESERVE REQUIREMENTS FOR Clayton Gehman, MEASURING AND ANALYZING BANKS IN THE UNITED STATES. NOV. 1938. 20 ECONOMIC GROWTH. Aug. 1963. 14 pp. pp. Frank R. Garfleld, ECONOMIC CHANGE AND ECO- ADJUSTMENT FOR SEASONAL VARIATION. Description of method used by Board in adjusting eco- NOMIC ANALYSIS. Sept. 1963. 17 pp. nomic data for seasonal variation. June 1941. Stephen H. Axilrod and Janice Krummack, FED- 11 pp. ERAL RESERVE SECURITY TRANSACTIONS, 1954- THE PRIVATE DEMAND FOR GOLD, 1931-53. Sept. 63. July 1964. 16 pp. 1954. 10 pp. Samuel I. Katz, YIELD DIFFERENTIALS IN TREAS- BANKERS' ACCEPTANCE FINANCING IN THE UNITED URY BILLS, 1959-64. Oct. 1964. 20 pp. STATES. May 1955. 13 pp. Frank R. Garfleld, CYCLES AND CYCLICAL IMBAL- REVISION OF CONSUMER CREDIT STATISTICS. Oct. 1956. 24 pp. (Also, similar reprint from Apr. ANCES IN A CHANGING WORLD. NOV. 1965. 15 pp. 1953 BULLETIN.) SEASONAL FACTORS AFFECTING BANK RESERVES. STAFF ECONOMIC STUDIES Feb. 1958. 12 pp. (Studies on economic and financial subjects that OPEN MARKET OPERATIONS IN LONG-TERM SEare of general interest in the field of economic CURITIES. Nov. 1958. 15 pp. research.) *PART I, ALL-BANK STATISTICS, 1896-1955. Reprint of the U.S. Summary containing a descrip- Summaries printed in the Federal Reserve Bulletin. tion of revised statistics for all banks in the United States, by class of bank, together with (Single mimeographed copies of the full text availrevised statistics. Apr. 1959. 94 pp. able unless otherwise noted.) STATISTICS ON THE GOVERNMENT SECURITIES Guy E. Noyes, STATISTICAL REFINEMENT OF THE MARKET. Apr. 1961. 8 pp. CONCEPT OF INFLATION—MONETARY AND SURVEY OF FINANCE COMPANIES, MID-1960. Oct. LIQUIDITY ASPECTS. Oct. 1965. 1961. 21 pp. Frank de Leeuw, THE DEMAND FOR MONEY— LIQUIDITY AND PUBLIC POLICY. Oct. 1961. 17 pp. SPEED OF ADJUSTMENT, INTEREST RATES, AND REVISED INDEXES OF FREIGHT CARLOADINGS. Dec. WEALTH. Oct. 1965. 1961. 3 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1814 FEDERAL RESERVE BULLETIN • DECEMBER 1965 SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. REVISION OF THE MONEY SUPPLY SERIES. June July 1962. 6 pp. 1964. 14 pp. INTEREST RATES AND MONETARY POLICY. Sept. REVISION OF BANK CREDIT SERIES. June 1964. 1962. 28 pp. 5 pp. INDUSTRIAL PRODUCTION—1957-59 BASE. Oct. RECENT MONETARY AND CREDIT DEVELOPMENTS. 1962. 10 pp. July 1964. 9 pp. FLOW OF FUNDS SEASONALLY ADJUSTED. NOV. FEDERAL RESERVE SECURITY TRANSACTIONS, 1954- 1962. 15 pp. 63. July 1964. 16 pp. A SECTORAL ANALYSIS OF VELOCITY. Dec. 1962. NEW SERIES ON FEDERAL FUNDS. Aug. 1964. 14 pp. 31 pp. A NEW LOOK AT THE FARM DEBT PICTURE. Dec. MINISTERIAL STATEMENT OF THE GROUP OF TEN 1962. 18 pp. AND ANNEX PREPARED BY DEPUTIES. Aug. 1964. FARM DEBT AS RELATED TO VALUE OF SALES. 25 pp. Feb. 1963. 9 pp. CHANGES IN STRUCTURE OF THE FEDERAL DEBT. YIELD DIFFERENTIALS IN TREASURY BILLS, 1959- Mar. 1963. 10 pp. 64. Oct. 1964. 20 pp. NEGOTIABLE TIME CERTIFICATES OF DEPOSIT. U.S. GOVERNMENT SECURITIES IN 1964. Nov. Apr. 1963. 11 pp. 1964. 8 pp. NEW FOREIGN BOND ISSUES IN THE U.S. MARKET. May 1963. 13 pp. RESEARCH INTO BANKING STRUCTURE AND COM- RECENT CHANGES IN LIQUIDITY. June 1963. 10 pp. PETITION. Nov. 1964. 17 pp. INTEREST RATES ON TIME DEPOSITS, MID-FEBRU- BANK CREDIT AND MONETARY DEVELOPMENTS IN ARY 1963. June 1963. 7 pp. 1964. Feb. 1965. 13 pp. MEASURES OF MEMBER BANK RESERVES. July BANK CREDITS TO FOREIGNERS. Mar. 1965. 10 pp. 1963. 14 pp. BALANCE OF PAYMENTS PROGRAM: GUIDELINES BANK LOANS SECURED BY STOCKS AND BONDS. July FOR BANKS AND NONBANK FINANCIAL INSTITU- 1963. 19 pp. TIONS. Dec. 1965. 9 pp. A BANK EXAMINER LOOKS AT AGRICULTURAL REVISION OF BANK DEBITS AND DEPOSIT TURN- LENDING. July 1963. 8 pp. OVER SERIES. Mar. 1965. 4 pp. MEASURING AND ANALYZING ECONOMIC GROWTH. BANKING AND MONETARY STATISTICS, 1964. Se- Aug. 1963. 14 pp. lected series of banking and monetary statistics CHANGES IN BANKING STRUCTURE, 1953-62. Sept. for 1964 only. Feb., Mar., and June 1965. 15 1963. 8 pp. pp. ECONOMIC CHANGE AND ECONOMIC ANALYSIS. RECENT CREDIT AND MONETARY DEVELOPMENTS. Sept. 1963. 17 pp. July 1965. 12 pp. BANK AND PCA LENDING TO FARMERS. Sept. 1963. REVISION OF THE MONEY SUPPLY. July 1965. 11pp. 11pp. THE OPEN MARKET POLICY PROCESS. Oct. 1963. 11 pp. INTEREST RATES IN CAPITAL MARKETS. Aug. 1965. 13 pp. RECENT INTEREST RATE TRENDS. NOV. 1963. 10 pp. MEASURES OF BANKING STRUCTURE AND COMPETI- TION. Sept. 1965. 11 pp. BANK CREDIT AND MONEY IN 1963. Feb. 1964. 7 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX- SURVEY OF FINANCIAL CHARACTERISTICS OF CON- CHANGE OPERATIONS. Sept. 1965. 14 pp. SUMERS. Mar. 1964. 9 pp. U.S. INTERNATIONAL PAYMENTS. Oct. 1965. 9 pp. U.S. TRADE AND PAYMENTS IN 1963. Apr. 1964. 7 pp. FISCAL POLICY AND DEBT MANAGEMENT. NOV. 1965. 11 pp. FLOWS THROUGH FINANCIAL INTERMEDIARIES. May 1964. 9 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 1726) Acceptances, bankers', 1735, 1752, 1754 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 1746, 1748 Adjusted, and currency, 1741 Arbitrage, 1804 Banks, by classes, 1734, 1742, 1747, 1750, 1754 Assets and liabilities (See also Foreign liabilities and Federal Reserve Banks, 1736, 1801 claims): Postal savings, 1734, 1741 Banks and the monetary system, Discount rates, 1733, 1803 consolidated, 1741 Discounts and advances by Federal Reserve Corporate, current, 1766 Banks, 1728, 1736, 1738 Domestic banks, by classes, 1742, 1746, 1748 Dividends, corporate, 1765, 1766 Federal Reserve Banks, 1736 Dollar assets, foreign, 1793, 1801 Automobiles: Earnings and hours, manufacturing industries, 1781 Consumer instalment credit, 1770, 1771, 1772 Employment, 1778, 1780, 1781 Production index, 1774, 1775 Farm mortgage loans, 1767, 1768 Balance of payments (See U.S. balance of payments) Federal finance: Bankers' balances, 1747, 1749 Cash transactions, 1756 (See also Foreign liabilities and claims) Receipts and expenditures, 1757 Banks and the monetary system, consolidated Treasurer's balance, 1756 statement, 1741 Federal funds, 1732 Banks for cooperatives, 1761, 1762 Federal home loan banks, 1761, 1762, 1769 Bonds (See also U.S. Govt. securities): Federal Housing Administration, 1753, 1767, New issues, 1762, 1763, 1764 1768, 1769 Prices and yields, 1752, 1753 Federal intermediate credit banks, 1761, 1762 Brokers and dealers in securities, bank loans to, Federal land banks, 1761, 1762 1746, 1748 Federal National Mortgage Assn.. 1761, 1762, 1769 Business expenditures on new plant and Federal Reserve Banks: equipment, 1766 Condition statement, 1736 Business indexes, 1778 U.S. Govt. securities held by. 1728, 1736, 1738, Business loans (See Commercial and industrial loans) 1758,1759 Capital accounts: Federal Reserve credit, 1728, 1736, 1738 Banks, by classes, 1742, 1747, 1750 Federal Reserve notes, 1736, 1739 Federal Reserve Banks, 1736 Federally sponsored credit agencies, 1761, 1762 Carloadings, 1778 Finance company paper, 1752, 1754 Central banks, foreign, 1790, 1803 Financial institutions, loans to, 1746, 1748 Certificates of deposit, 1750 Float, 1728 Coins, circulation of, 1739 Flow of funds, 1786 Commercial and industrial loans: Foreign central banks, 1790, 1803 Commercial banks, 1746 Foreign currency operations, 1736, 1738, 1792, 1800 Weekly reporting member banks, 1748, 1751 Foreign deposits in U.S. banks, 1728, 1736. 1741, Commercial banks: 1747, 1750, 1801 Assets and liabilities, 1742, 1745, 1746 Foreign exchange rates, 1805 Consumer loans held, by type, 1771 Foreign liabilities and claims: Number, by classes, 1742 Banks, 1794, 1796, 1797, 1799. 1801 Real estate mortgages held, by type, 1767 Nonfinancial concerns. 1802 Commercial paper, 1752, 1754 Foreign trade, 1807 Condition statements (See Assets and liabilities) Gold: Construction, 1778, 1779 Certificates, 1736, 1739 Consumer credit: Earmarked, 1801 Instalment credit, 1770, 1771, 1772, 1773 Net purchases by U.S., 1792 Noninstalment credit, by holder, 1771 Production, 1791 Consumer price indexes, 1778, 1782 Reserves of central banks and govts., 1790 Consumption expenditures, 1784, 1785 Reserves of foreign countries and international Corporations: organizations, 1793 Sales, profits, taxes, and dividends, 1765, 1766 Stock, 1728, 1741, 1792 Security issues, 1763, 1764 Gross national product, 1784, 1785 Security prices and yields, 1752, 1753 Cost of living (See Consumer price indexes) Hours and earnings, manufacturing industries, 1781 Currency in circulation, 1728, 1739, 1740 Housing starts, 1779 Customer credit, stock market, 1753 Income, national and personal, 1784 Debits to deposit accounts, 1738 Industrial production index, 1774, 1778 Debt (See specific types of debt or securities) Instalment loans, 1770, 1771, 1772, 1773 Demand deposits: Insurance companies, 1755, 1758, 1759, 1768 Adjusted, banks and the monetary system, 1741 Insured commercial banks, 1744, 1746 Adjusted, commercial banks, 1738, 1740, 1747 Interbank deposits, 1734, 1742. 1747 Banks, by classes, 1734, 1742, 1750 Interest rates: Turnover of, 1738 Bond yields, 1752 Type of holder, at commercial banks, 1747 Business loans by banks, 1751 1815 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1816 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Interest rates—Continued: Reserves—Continued: Federal Reserve Bank discount rates, 1733 Federal Reserve Banks, 1736 Foreign countries, 1803, 1804 Foreign countries and international Money market rates, 1752, 1804 organizations, 1793 Mortgage yields, 1753 Member banks, 1728, 1730, 1734, 1747, 1749 Stock yields, 1752 Residential mortgage loans, 1767, 1768, 1769 Time deposits, maximum rates, 1734 Retail credit, 1770 International capital transactions of the U.S., 1794 Retail sales, 1778 International institutions, 1790, 1792, 1793 Sales finance companies, consumer loans Inventories, 1784 of, 1770, 1771, 1773 Investment companies, new issues, 1764 Saving: Investments {See also specific types of investments): Flow of funds series, 1786 Banks, by classes, 1742, 1746, 1749, 1754 National income series, 1785 Commercial banks, 1745 Savings and loan assns., 1755, 1759, 1768 Federal Reserve Banks, 1736, 1738 Savings deposits {See Time deposits) Life insurance companies, 1755 Savings institutions, principal assets, 1754, 1755 Savings and loan assns., 1755 Securities {See also U.S. Govt. securities): Labor force, 1780 Federally sponsored agencies, 1761 Loans {See also specific types of loans): International transactions, 1800, 1801 Banks, by classes, 1742, 1746, 1748, 1754 New issues, 1762, 1763, 1764 Commercial banks, 1745 Silver coin and silver certificates, 1739 Federal Reserve Banks, 1728, 1736, 1738 State and local govts.: Insurance companies, 1755, 1768 Deposits of, 1747, 1750 Insured or guaranteed by U.S., 1767, 1768, 1769 Holdings of U.S. Govt. securities, 1758, 1759 Savings and loan assns., 1755, 1768 New security issues, 1762, 1763 Ownership of obligations of, 1746, 1754, 1755 Manufactures, production index, 1775, 1778 Prices and yields of securities, 1752, 1753 Margin requirements, 1734 State member banks, 1744 Member banks: Stock market credit, 1753 Assets and liabilities, by classes, 1742, 1746 Stocks: Borrowings at Federal Reserve Banks, 1730, New issues, 1763, 1764 1736, 1750 Prices and yields, 1752, 1753 Deposits, by classes, 1734 Number, by classes, 1743 Tax receipts, Federal, 1757 Reserve position, basic, 1732 Time deposits, 1734, 1740, 1741, 1742, 1747, 1750 Reserve requirements, 1734 Treasurer's account balance, 1756 Reserves and related items, 1728 Treasury cash, 1728, 1739, 1741 Weekly reporting series, 1748 Treasury currency, 1728, 1739, 1741 Mining, production index, 1775, 1778 Treasury deposits, 1728, 1736, 1756 Money rates {See Interest rates) Turnover, deposit, 1738 Money supply and related data, 1740 Mortgages {See Real estate loans) Unemployment, 1780 Mutual funds {See Investment companies) U.S. balance of payments, 1806 Mutual savings banks, 1741, 1742, 1744, 1754, 1758, U.S. Govt. balances: 1759, 1767 Commercial bank holdings, by classes, 1747, 1750 Consolidated monetary statement, 1741 National banks, 1744 National income, 1784, 1785 Treasury deposits at Federal Reserve National security expenditures, 1757, 1784 Banks, 1728, 1736, 1756 Nonmember banks, 1744, 1746, 1747 U.S. Govt. securities: Bank holdings, 1741, 1742, 1746, 1749, 1754, Open market transactions, 1735 1758, 1759 Payrolls, manufacturing, index, 1778 Dealer transactions, positions, and financing, 1760 Personal income, 1785 Federal Reserve Bank holdings, 1728, 1736, 1738, Postal Savings System, 1734, 1741 1758, 1759 Foreign and international holdings, 1736, Prices: 1793, 1801 Consumer, 1778, 1782 International transactions, 1800 Security, 1753 New issues, gross proceeds, 1763 Wholesale commodity, 1778, 1782 Open market transactions, 1735 Production, 1774, 1778 Outstanding, by type of security, 1758, 1759, 1761 Profits, corporate, 1765, 1766 Ownership of, 1758, 1759 Real estate loans: Prices and yields, 1752, 1753, 1804 Banks, by classes, 1746, 1754, 1767 United States notes, outstanding and in Mortgage yields, 1753 circulation, 1739 Type of holder, 1767, 1768, 1769 Utilities, production index, 1775, 1778 Type of property mortgaged, 1767, 1768, 1769 Reserve position, basic, member banks, 1732 Vault cash, 1728, 1734, 1747 Reserve requirements, member banks, 1734 Veterans Administration, 1767, 1768, 1769 Reserves: Central banks and govts., 1790 Weekly reporting member banks, 1748 Commercial banks, 1747 Yields {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES i Issue Total Index to Issue Total Index to tables tables January 1-212 m-m July . . 921-1052 1051-1052 February 213-360 359-360 August 1053-1198 1197-1198 March 361-518 517-518 September 1199-1366 1365-1366 April 519-646 645-646 October 1367-1506 1504-1505 May 647-786 785-786 November 1507-1656 1654-1655 June 787-920 919-920 December 1657-1827 1815-1816 Pages Pages Altmann, Murray, staff economic study (sum- Articles—Continued mary) 1378 Staff economic studies—Continued Andersen, Leonall C, staff economic study Summaries—Continued (summary) 1379 Inflation, statistical refinement of Anderson, Ross E., appointed director at Little the concept of, monetary and Rock Branch Ill liquidity aspects 1376 Annual Report, Board of Governors, 1964 424 Monetary policy, criteria for con- Arbitrage, special tables on yield differentials in duct of, implications of recent Treasury bills, 1957-58 1496 research 1702 Armstrong, Herbert D.., elected Class B director Money stock, study of factors afat San Francisco 1723 fecting, phase one 1379 Arnold, Ralph V., elected Class A director at San Postwar boom in hotels and Francisco 1723 motels 1703 Articles: Price analysis and economic devel- Bank credit and monetary developments in opments 1378 1964 .213 Time deposits in monetary analy- Bank credits to foreigners. .. .. .361 sis ... . 1380 Bank debits and deposit turnover series, Statements to Congress: revision 390 Antitrust laws, exemption of certain Banking structure and competition, measures acts of bankers and financial instituof . ... .1212 tions 404, 949 f Communique of Ministers and Governors of Bank failures, statement concerning 406 Group of Ten, issued on Sept. 28, 1965 .1407 Bank Holding Company Act, pro- Construction and mortgage markets 647 posed amendments . . . 803-07 Consumer credit, developments . 787 Bank Merger Act, proposed Consumer income, spending, and saving . 519 amendment . 799, 1078, 1246 Credit and monetary developments, recent. 921 Board of Governors, delegation of Cyyc les and cyy clical imbalances in a changinggg certain functions . . 1066 world .1518 Executive officers, loans to 1066 Financing corporate investment 1657 Federal Reserve Banks: Fiscal policy and debt management 1507 Advances by . 1066 Flow of funds accounts, revision. 1533 Investments in securities of foreign Industrial production and prices. . . 1 govts 1066 Interest rates in capital markets 1053 Federal Reserve notes, procedure for Labor market, expansion . . 1199 destruction of unfit notes . 1066 Member bank income, 1964 660 Federal Reserve policy actions . . .. 1667 Money supply series, revision .933 Federal Reserve program for voluntary Staff economic studies: restraint of foreign credit 399, 1071 Summaries: Federal Reserve System, U.S. economy, Demand for money—speed of ad- and U.S. balance of payments . . 1237 justment, interest rates, and Financial developments and the interwealth 1377 national balance of payments problem .394 Gold reserve requirements . . 226 1 Changes in page references for the following entries in the monthly Index to Statistical Tables are necessary: "Foreign Govt. checks, drawing of, in favor of deposits in U.S. banks" (Jan.-Nov., respectively), third page banks for the credit of specified references should read 131, 275, 443, 559, 703, 841, 979, 1177, persons 1066 1345, 1429, 1563; "Dollar assets, foreign" (July-Nov., respectively), first page references should read 1031, 1177, 1345, Interest-bearing obligations of U.S., pro- 1481, 1633; and "Treasury currency" (July-Nov., respectively), posed transfer by Federal Reserve second page references should read 977, 1121, 1291, 1427, 1561. Banks to the Treasury 947 1817 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1818 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Pages Pages Articles—Continued Bank Merger Act—Continued Statements to Congress—Continued Orders issued under—Continued International Monetary Fund, statement Commercial and Savings Bank of St. concerning proposed increase in re- Clair County, St. Clair, Mich. . .821 sources of . 530 Commercial Bank and Savings Company, Revenue bond underwriting by commer- Fostoria, Ohio 247 cial banks 665 County Trust Company, White Plains, Treasury and Federal Reserve foreign N.Y 101 exchange operations .... . 377, 1223 Farmers' Loan and Trust Company, U.S. international payments 1367 Columbia City, Ind 246 Axilrod, Stephen H., promoted to Associate First Trust Company of Albany, Albany, Adviser, Division of Research and Statistics 1544 N.Y . .669 Greenfield Banking Company, Green- Balance of payments field, Ind ... 1711 {See U.S. balance of payments) Kingston Trust Company. Kingston, Balderston, C. Canby: N.Y. . . . . . .417 Bank Holding Company Act, proposed Marine Midland Trust Company of amendments to, statements on H.R. 7371 New York, New York, N.Y. 1099 and H.R. 7372 803-07 New Jersey Bank and Trust Company, Revenue bond underwriting, statement on Clifton, NJ. . . . 1269 H.R. 7539 665 Riverside Trust Company, Hartford, BancOhio Corporation, Order under Bank Hold- Conn 819 ing Company Act 1717 Security-Peoples Trust Company, Erie, Bancorporation of Minnesota, Order under Bank Pa. . 243 Holding Company Act . . . . 1085 State-Planters Bank of Commerce and Bank credit and monetary developments in 1964, Trusts, Richmond, Va... 1094 article ... 213 Summit Trust Company, Summit, NJ. 99 Bank credits to foreigners, article .361 Union Bank, Los Angeles, Calif. 1542 Bank debits and deposit turnover series, United California Bank, Los revision 257, 390 Angeles, Calif 415, 814, 1708 Bank failures, statement by Chairman Martin Wachovia Bank and Trust Company, concerning . . . 406 Winston-Salem, N.C. . . 671 Bank Holding Company Act: Wells Fargo Bank, San Francisco, Calif. 95 Banking offices and deposits of group banks, Proposed amendments to, statements by Dec. 31, 1964 1026 Chairman Martin and Governors Robert- Interpretations: son, Mitchell, Maisel, and Daane Industrial banks as "banks" . . . 1539 799, 1078, 1246 List of companies Dec. 31, 1964, registered pursuant to Section 5 892 Public inspection of applications submitted Orders issued under: under 1409 BancOhio Corporation 1717 Bank Mergers & the Regulatory Agencies: Appli- Bancorporation of Minnesota 1085 cation of the Bank Merger Act of 1960, by Brenton Companies, Inc. 1715 George R. Hall and Charles F. Phillips, Jr. 961 Commercial Bancorp, Inc. . . 249 Bank of Virginia, Richmond, Va., Order under Denver U.S. Bancorporation, Inc. 811 Bank Merger Act . . . 1097 First National Corporation . 419, 955 Bank of Wood County Company, Bowling Green, First Oklahoma Bancorporation, Inc. 676 Ohio, Order under Bank Merger Act 817 First Virginia Corporation . .250, 536, 955 Bank securities: First Wisconsin Bankshares Corporation 680 Member State banks: Shawmut Association, Inc. 674 Adoption of Regulation F, and Society Corporation 1712 erratum 13-90, 113, 424 Valley Bancorporation . 91 Financial statements to be included in Virginia Commonwealth Corporation 1263 annual reports to security holders Whitney Holding Corporation, recon- pursuant to Regulation F . 1707 sideration of application . 1084 Proxy solicitation by bank management, Proposed amendments to, statements by disclosure of loans to "insiders" pur- Vice Chairman Balderston . . 803-07 suant to Regulation F, clarification. . 1707 Public inspection of applications submitted State-chartered banks filing registrations under under 1409 Securities Exchange Act, list 957 Bank Merger Act: Banking and monetary statistics: Orders issued under: For 1964 . 326, 490, 888 Bank of Virginia, Richmond, Va. 1097 Supplements .1274, 1723 Bank of Wood County Company, Bowl- Banking Market Structure & Performance in ing Green, Ohio 817 Metropolitan Areas: A Statistical Study of Citizens Bank, Vermillion, S. Dak. 953 Factors Affecting Rates on Bank Loans, by Citizens Trust and Savings Bank, South Theodore G. Flechsig .961 Haven, Mich 1267 Banking offices: City Bank and Trust Company, Mil- Changes in number . . 324, 1170 waukee, Wise. 533 Par and nonpar offices, number 325, 1171 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 51 1819 Pages Pages Banking structure and competition, measures of. 1212 Board of Governors—Continued Banks and branches, number, by class and State. .615 Staff changes: Barnett, William R., appointed director at Jackson- Axilrod, Stephen H., promoted to Assoville Branch 110 ciate Adviser, Division of Research and Statistics 1544 Barney, Armin B., appointed director at Denver Gramley, Lyle E., promoted to Asso- Branch 685 ciate Adviser, Division of Research Bennett, Robert S., appointed director at Buffalo and Statistics . 1544 Branch 106 Hexter, David B., promoted to Associate Berry, Guy L., Jr., appointed director at Okla- General Counsel 1544 homa City Branch Ill Holland, Robert C, promoted to Ad- Bibliography on monetary theory and policy, viser to the Board 1544 publication of 1544 Irvine, Reed J., promoted to Adviser, Blood, Alan B., appointed director at Salt Lake Division of International Finance . . . 1544 City Branch 112 Katz, Samuel I., promoted to Adviser, Board of Governors: Division of International Finance. . . .112 Annual Report, 1964 424 Koch, Albert R., promoted to Deputy Bank holding company and bank merger Director, Division of Research and applications submitted to, public inspec- Statistics 1544 tion of 1409 Noyes, Guy E., resignation as Adviser Members: to the Board 1544 Partee, J. Charles, promoted to Asso- List, 1913-65 808 ciate Director, Division of Research Maisel, Sherman J., appointment 684 and Statistics 1544 Mills, Abbot L., Jr., resignation 424, 684 Reynolds, John E., promoted to Adviser, Statements to Congress: Division of International Finance . . . 1544 Antitrust laws, exemption of certain Sammons, Robert L., promoted to Assoacts of bankers and financial insticiate Director, Division of Internatutions . 404, 949 tional Finance 1544 Bank failures 406 Sigel, Stanley, promoted to Associate Bank Holding Company Act, pro- Adviser, Division of Research and posed amendments 803-07 Statistics . . 1544 Bank Merger Act, proposed amend- Smith, Tynan, promoted to Associate ment 799, 1078, 1246 Adviser, Division of Research and Board of Governors, delegation of Statistics 1544 certain functions ... . 1066 Solomon, Robert, promoted to Adviser, Executive officers, loans to 1066 Division of Research and Statistics, Federal Reserve Banks: and subsequently Adviser to the Advances by ... 1066 Board 112, 1544 Investments in securities of Wood, Ralph C, promoted to Adviser, foreign govts 1066 Division of International Finance . . . 1544 Federal Reserve notes, procedure Young, Ralph A., promoted to Senior for destruction of unfit notes. 1066 Adviser to the Board 1544 Federal Reserve policy actions. 1667 Branch banks: Federal Reserve program for vol- Federal Reserve: untary restraint of foreign Directors (See Directors, Federal Recredit . . .. .399, 1071 serve branch banks) Territory of Birmingham Branch, ex- Federal Reserve System, U.S. econtension of 957 omy, and U.S. balance of pay- Vice Presidents in charge of 1810 ments 1237 Foreign branches of member banks, interest Financial developments and the inon deposits of officers or employees, ternational balance of payments amendment to Regulation M 413 program . 394 Mobile branches, establishment of, in- Gold reserve requirements . 226 terpretation .1539 Govt. checks, drawing of, in favor Number, by class and State .616 of banks for the credit of speci- Sale of bank's money orders off premises as fied persons 1066 establishment of branch office ... .413 Interest-bearing obligations of U.S., Brandenburg, J. P., appointed director at Denver proposed transfer by Federal Re- Branch Ill serve Banks to the Treasury .947 Brawley, Wallace W., appointed director at Char- International Monetary Fund, pro- lotte Branch 110 posed increase in resources, state- Brenton Companies, Inc., Orders under Bank ment concerning 530 Holding Company Act .1715 Revenue bond underwriting by com- Brill, Daniel H., staff economic study 1701 mercial banks 665 Broadbent, Smith D., Jr., appointed Class C di- Members and officers 1808 rector and Deputy Chairman at St. Louis .105 Publications (See Publications) Brocksmith, Charles H., appointed director at Regulations (See Regulations) Helena Branch . . Ill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1820 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Pages Pages Brooks, Elwood M., director at Denver Branch, Currency and coin: death of 256 Legal tender, new provision of law defining 1263 Brown, S. N., appointed director at Nashville Customer credit, Stock Exchange firms, June Branch 110 1958-65 1340 Brown, Theodore D., appointed director at Den- Cycles and cyclical imbalances in a changing ver Branch , Ill world, article 1518 Bryan, Malcolm, retirement as President of Federal Reserve Bank of Atlanta 1411 Daane, J. Dewey, statement on proposed amend- Business conditions, national summary ...114, 258, ment to Bank Merger Act to exempt bank 425, 541, 686, 824, 962, 1106, 1275, mergers from Federal antitrust laws ... . 1259 1412, 1546, 1724 Davis, William A., elected Class A director at Richmond 1722 Case, Everett N., appointed Deputy Chairman Dayton, Newell B., appointed director at Salt at New York 104 Lake City Branch 112 Castling, Leon C, appointed director at Memphis Debt management and fiscal policy, article . . 1507 Branch Ill de Leeuw, Frank, staff economic study (sum- Chairmen and Deputy Chairmen of Federal Re- mary) .1377 serve Banks 104, 1810 Demand deposits: Chase, Samuel B., Jr., staff economic study on Deposit turnover series, revision of bank "Time Deposits in Monetary Analysis" . . .1380 debits and 257, 390 Citizens Bank, Vermillion, S. Dak., Order under Deming, Frederick L., resignation as President of Bank Merger Act 953 Federal Reserve Bank of Minneapolis 256 Citizens Trust and Savings Bank, South Haven, Denver U.S. Bancorporation, Inc., Order under Mich., Order under Bank Merger Act 1267 Bank Holding Company Act . . .811 City Bank and Trust Company, Milwaukee, Wise, Deposits: Order under Bank Merger Act 533 Gold reserve requirements against Federal Cole, Dudley, appointed director at Jacksonville Reserve Bank deposit liabilities .. . .413 Branch 110 Interest on deposits of officers or employees of foreign branches of member banks, Commercial and Savings Bank of St. Clair amendment to Regulation M .413 County, St. Clair, Mich., Order under Bank Time deposits: Merger Act 821 Foreign time deposits, exemption of Commercial Bancorp, Inc., Order under Bank interest on 1084 Holding Company Act . 249 Maximum interest on loans secured by, Commercial Bank and Savings Company, Fosinterpretation 533 toria, Ohio, Order under Bank Merger Act . 247 Maximum permissible rate, increase Commercial banks: in 1667, 1704 Antitrust exemption for voluntary foreign Staff economic study on time deposits credit restraint agreements or programs. 1540 in monetary analysis ... 1380 Banking offices, changes in number .324, 1170 Turnover of {See Demand deposits) Branches, number, by State 615 Dickey, Robert, III, appointed director at Pitts- Income and expenses 759 burgh Branch ... 106 Interest equalization tax, extension of, to Directors, Federal Reserve Banks: certain commercial bank loans 242 Chairmen and Federal Reserve Agents . 104 Number, by class and State 615 Class A and Class B, elections 1105, 1274, Revenue bond underwriting, statement by 1721 Vice Chairman Balderston 665 Class C, appointments 105 Commingled investment account, interlocking Death . 8 23 relationships between bank and 1410 Deputy Chairmen. .104, 1810 Construction and mortgage markets, article . 647 List 231 Consumer credit: Directors, Federal Reserve branch banks: Developments in, article 787 Appointments .106, 685 Supplement to Banking and Monetary Sta- Deaths .256, 1544 tistics . 1274 List 231 Consumer income, spending, and saving, article 519 Discount rates at Federal Reserve Banks, increase Consumer loans: in .. .1667, 1704 Eligibility for discount at Federal Reserve Dividends: Banks . . 1409 Federal Reserve Banks.. 113, 322 Coombs, Charles A., reports on Treasury and Insured commercial banks. 759 Federal Reserve foreign exchange opera- Member banks 661, 664, 750 tions 377, 1223 Dwyer, Robert F., appointed director at Portland Corporate investment, financing, article 1657 Branch 107 County Trust Company, White Plains, N.Y., Order under Bank Merger Act 101 Earnings and expenses: Cowan, Robert G., elected Class A director at Federal Reserve Banks.. 113, 322 New York . 1721 Insured commercial banks. 759 Crawford, CM., appointed director at Oklahoma Member banks 660, 750 City Branch Ill Ely, J. Wallace, appointed director at Buffalo Credit and monetary developments, recent, article 921 Branch 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1821 INDEX VOLUME 51 Pages Pages Executive officers, loans to, from bank adminis- Federal Reserve policy actions, announcement and tered profit-sharing trust fund, interpretation. 1539 statements to Congress 1667 Federal Reserve System: Farmers' Loan and Trust Company, Columbia Admissions of State banks to membership City, Ind., Order under Bank Merger Act. . .246 424,532, 685, 823, 1545 Federal Advisory Council. .1809 Balance of payments program: Federal funds; Banks, initial guidelines with changes Trading in Federal Funds—Findings of a and revisions. .371, 532, 685, 1105, 1693 Three-Year Survey, by Dorothy M. Nonbank financial institutions, tentative Nichols . 1274 and revised guidelines . . . .371, 944, 1693 Federal Open Market Committee: Role in 256 Foreign exchange operations, reports. .377, 1223 Statement by Chairman Martin on Federal Members and staff 1809 Reserve System, U.S. economy, and U.S. Minutes, 1936-60, availability. .424 balance of payments 1237 Federal Reserve Act: Federal Reserve and Treasury foreign exchange Interpretations: operations, reports ... 377, 1223 Eligibility of consumer loans and Finance company paper: finance company paper for discount Eligibility for discount at Federal Reserve at Federal Reserve Banks 1409 Banks 1409 Loans to executive officers from bank First National Corporation, Orders under Bank administered profit-sharing trust Holding Company Act 419, 955 fund . . 1539 First Oklahoma Bancorporation, Inc., Order Section 16: under Bank Holding Company Act 676 Gold reserve requirements against Fed- First Trust Company of Albany, Albany, N.Y., eral Reserve Bank deposit liabilities, Order under Bank Merger Act 669 amendment .413 First Virginia Corporation, Orders under Bank Section 19: Holding Company Act 250, 536, 955 Foreign time deposits, interest on, First Wisconsin Bankshares Corporation, Order amendment . 1084 under Bank Holding Company Act 680 Section 24: Real estate loans by national banks, Firstenburg, E. W., appointed director at Portland amendments 1409 Branch 112 Federal Reserve and Treasury foreign exchange Fiscal policy and debt management, article. . 1507 operations, reports . .377, 1223 Fisher, Robert Moore, staff economic study Federal Reserve Banks: (summary) 1703 Branches (See Branch banks) Flechsig, Theodore G., Banking Market Structure Chairmen and Deputy Chairmen 104, 1810 & Performance in Metropolitan Areas: A Directors (See Directors, Federal Reserve Statistical Study of Factors Affecting Rates on Banks) Bank Loans 961 Discount rates, increase in. 1667, 1704 Flohr, E. M., appointed director at Portland Earnings and expenses 113, 322 Eligibility of consumer loans and finance Branch 112 company paper for discount . 1409 Flow of funds: First Vice Presidents: Article on revised flow of funds accounts 1533 Kimbrel, Monroe, appointed at Atlanta 1411 Financial assets and liabilities 614, 1618 List .1810 Saving and financial flows 176, 604, 1608 General Auditors .411 Foreign branches of member banks, interest on Gold reserve requirements: deposits of officers or employees, amendment Deposit liabilities relative to, amend- to Regulation M 413 ment to Section 16 of Federal Re- Foreign exchange operations: serve Act .413 Treasury and Federal Reserve operations, Statement by Chairman Martin . . .226 reports 377, 1223 Investments in securities of foreign govts., Foreign time deposits, interest on, amendment to statement . 1068 Federal Reserve Act and Regulation Q 1084 Presidents: Foster, Gordon W., appointed director at El Bryan, Malcolm, retirement at Atlanta 1411 Paso Branch 107 Deming, Frederick L., resignation at Fry, Edward R., article on revision of money Minneapolis 256 supply series .93? Galusha, Hugh D., Jr., appointed at Galusha, Hugh D., Jr., appointed President of Minneapolis 684 Federal Reserve Bank of Minneapolis 6f Patterson, Harold T., appointed at At- Garfield, Frank R., article on cycles and cyclical lanta 1411 Supplement to Banking and Monetary imbalances in a changing world 15 Statistics, Section 9, on . 1723 Gay, John W., elected Class A director at At- Vice Presidents, list. .411 lanta 1 Federal Reserve districts: Glenn, Lowell M., co-author of article on revi- Territory of Birmingham Branch, extension 957 sion of bank debits and deposit turnover Federal Reserve notes: series Interest paid to Treasury 113, 322 Gold reserve requirements (See Federal Reserv Procedure for destruction of, statement 1066 Banks) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1822 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Pages Pages Gramley, Lyle E.: International monetary system: Promoted to Associate Adviser, Division of Communique of Ministers and Governors of Research and Statistics 1544 Group of Ten, issued on Sept. 28, 1965 1407 Staff economic study on "Time Deposits in International payments, U.S., article. . 1367 Monetary Analysis" 1380 Interpretations: Greenfield Banking Company, Greenfield, Ind., Eligibility of consumer loans and finance Order under Bank Merger Act 1711 company paper for discount at Federal Group of Ten, communique of Ministers and Reserve Banks 1409 Governors, issued on Sept. 28, 1965 1407 Industrial banks as "banks" under Bank Guidelines for banks and nonbank financial in- Holding Company Act 1539 stitutions, voluntary foreign credit restraint Interlocking relationships between bank and program, with changes, and its commingled investment account 1410 revisions . . .371, 532, 685, 944, 1105, 1693 Loans by mail on security of mutual fund shares 413 Hall, George R., co-author, Bank Mergers & the Loans to executive officers from bank ad- Regulatory Agencies: Application of the Bank ministered profit-sharing trust fund . . . .1539 Merger Act of 1960 961 Maximum interest on loans secured by time Hamilton, John D., appointed director at Buffalo deposits . , 533 Branch 109 Mobile branches, establishment of 1539 Hastings, M. F., appointed director at Seattle "Officer" defined for Regulation F purposes 810 Branch 112 Proxy solicitation by bank management, Hearin, Robert M., appointed director at New clarification with respect to disclosure of Orleans Branch 110 loans to "insiders" 1707 Hester, James M., appointed Class C director at Sale of bank's money orders off premises New York 105 as establishment of branch office 413 Hexter, David B., promoted to Associate Gen- Securities companies, investment for own aceral Counsel 1544 count affects applicability under Section Hill, J. A., appointed director at Nashville Branch 110 32 of Banking Act of 1933 810 Historical records of Federal Reserve System, Investments: availability of 424 Financing corporate investment, article 1657 Holland, Robert C, promoted to Adviser to the Interlocking relationships between bank and Board 1544 its commingled investment account, interpretation 1410 Income and expenses: Revenue bond underwriting by commercial Federal Reserve Banks. ... 113, 322 banks, statement by Vice Chairman Insured commercial banks. ... 759 Balderston 665 Member banks 660, 750 Irvine, Reed J., promoted to Adviser, Division of Industrial banks as "banks" under Bank Holding International Finance 1544 Company Act, interpretation .1539 Industrial production: Katz, Samuel L, appointed Adviser, Division of Prices and, article... . . 1 International Finance 112 Indexes, revisions 1274 Keep, Edwin H., appointed director at Pittsburgh Inflation, statistical refinement of the concept of, Branch 109 staff economic study (summary)... 1376 Kennedy, W. S., Class A director at Kansas City, Insured commercial banks: death of 823 Banking offices, changes in number .324, 1170 Kimbrel, Monroe, appointed First Vice President Branches, number, by State -616 of Federal Reserve Bank of Atlanta 1411 Income and expenses.... 759 Kingston Trust Company, Kingston, N.Y., Order Number, by State . .615 under Bank Merger Act 417 Interest equalization tax, extension of, to certain Koch, Albert R., promoted to Deputy Director, commercial bank loans 242 Division of Research and Statistics 1544 Interest on deposits: Foreign time deposits, amendment to Fed- Labor market, expansion in, article 1199 eral Reserve Act and Regulation Q ... 1084 Larson, Glenn H., appointed director at Helena Time deposits, maximum permissible rates, Branch .111 increase in 1667, 1704 rnterest rates: Learned, Stanley, elected Class B director at Kansas City 1723 Discount rates at Federal Reserve Banks, increase in 1667, 1704 Legal tender, new provision of law defining 1263 In capital markets, article 1053 Legislation: Time deposits, maximum permissible rate, Antitrust exemption for voluntary foreign increase in 1667, 1704 credit restraint agreements or programs: rlocking relationships between bank and its Public Law 89-175, provisions . . 1540 >mmingled investment account, interpreta- Statements by Chairman Martin n . 1410 on H.R. 5280 404, 949 rational Monetary Fund: Bank Holding Company Act, proposed *roposed increase in resources, statement amendments to, statements by Vice Chairby Chairman Martin 530 man Balderston 803-07 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 51 1823 Pages Pages Legislation—Continued Maisel, Sherman J.: .... Bank Merger Act, proposed amendments to, Appointed as member of Board of Govstatements by Chairman Martin and Gov- ernors 684 ernors Robertson, Mitchell, Maisel, and Bank Merger Act, statement on proposed Daane 799, 1078, 1246 amendment to exempt bank mergers from Board of Governors, delegation of certain Federal antitrust laws 1253 functions, statement by Chairman Martin Federal Reserve policy actions, statement on S. 1556 1066 concerning 1686 Executive officers, loans to, statement by Mandel, Max A., appointed director at San An- Chairman Martin on S. 1558 1066 tonio Branch 112 Federal Reserve Banks: Marble, Peter E., appointed director at Salt Lake Advances by, statement by Chairman City Branch 107 Martin on S. 1559 1066 Marine Midland Trust Company of New York, Investments in securities of foreign New York, N.Y., Order under Bank Merger govts., statement by Chairman Martin Act 1099 on S. 1557 1066 Martin, Lawrence H., elected Class A director at Federal Reserve notes, procedure for destruc- Boston . 1721 tion of unfit notes, statement by Chairman Martin on S. 1308 1066 Martin, Wm. McC, Jr.: Gold reserve requirements against Federal Bank failures, statement concerning 406 Reserve Bank deposit liabilities: Bank Merger Act, statements on proposed amendment to exempt bank mergers from Amendment to Federal Reserve Act .413 Statement by Chairman Martin on Federal antitrust laws 799, 1078 H. 3318, S. 743, S. 797, S. 814 . .. .226 Board of Governors, delegation of certain Govt. checks, drawing in favor of banks for functions, statement on S. 1556 1066 the credit of specified persons, statement Executive officers, loans to, statement on by Chairman Martin on S. 1309 .1066 S. 1558 1066 Interest-bearing obligations of U.S., proposed Exemption of certain acts of bankers and transfer by Federal Reserve Banks to the financial institutions from Federal anti- Treasury, statement by Chairman Martin trust laws, statements 404, 949 on H.R. 7601 947 Federal Reserve Banks: Interest on foreign time deposits, amendment Advances by, statement on S. 1559 ... 1066 to Federal Reserve Act 1084 Investments in securities of foreign International Monetary Fund, proposed in- govts., statement on S. 1557 1066 crease in resources, statement by Chairman Federal Reserve notes, procedure for de- Martin on H.R. 6497 530 struction of unfit notes, statement on Real estate loans by national banks, amend- S. 1308 1066 ments to Section 24 of Federal Reserve Federal Reserve policy actions, statement Act . . 1409 concerning 1667 Revenue bond underwriting by commercial Federal Reserve role in the economy, banks, statement by Vice Chairman Bald- speech 1669 erston on H.R. 7539 665 Federal Reserve System, U.S. economy, and U.S. balance of payments, statement. . . .1237 Loans: Financial developments and the international Bank loans by mail on security of mutual balance of payments problem, statement. .394 fund shares, interpretation 413 Gold reserve requirements, statement on S. Consumer loans and finance company paper, 743, S. 797, and S. 814 226 eligibility for discount at Federal Reserve Govt. checks, drawing in favor of banks for Banks 1409 the credit of specified persons, statement Executive officers of member banks {See on S. 1309 1066 Executive officers) Interest-bearing obligations of the U.S., pro- Interest equalization tax, extension of, to posed transfer by Federal Reserve Banks certain commercial bank loans 242 to the Treasury, statement on H.R. 7601. .947 Maximum interest on loans secured by time International Monetary Fund, proposed indeposits, interpretation 533 crease in resources, statement 530 National banks: McCardell, Adrian L., appointed director at Real estate loans, amendments to Sec- Baltimore Branch 110 tion 24 of Federal Reserve Act .... 1409 McCraw, Carl G., appointed director at Charlotte Secured by direct obligations of the U.S., Branch 110 amendments by Comptroller of the Cur- McGuire, William B., appointed director at Charrency concerning 1263, 1705 lotte Branch . 106 Lockhart, Robert F., appointed director at El Member banks: Bank Merger Act, statements on proposed Paso Branch Ill amendment to exempt bank mergers from Lunding, Franklin L, appointed Class C director Federal antitrust laws 799, 1078, 1246 and designated Chairman and Federal Reserve Banking offices, changes in number. . . .324, 1170 Agent at Chicago 104, 105 Borrowings at Federal Reserve Banks, Lyon, Charles D., elected Class B director at weekly averages for 1964. . .490 Richmond 1722 Branches, number, by State. 616 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1824 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Pages Pages Member Banks—Continued National banks: Foreign branches of, interest on deposits of Bank Merger Act, statements on proposed officers or employees, amendment to Regu- amendment to exempt bank mergers from lation M . 413 Federal antitrust laws 799, 1078, 1246 Income and expenses. .660, 750 Banking offices, changes in number. .324, 1170 Loans: Branches, number, by State 616 Executive officers, loans to, from bank Foreign branches of, interest on deposits of administered profit-sharing trust fund, officers or employees, amendment to Reguinterpretation ...1539 lation M 413 Maximum interest on loans secured by Interlocking relationships between bank and time deposits, interpretation 533 its commingled investment account 1410 Secured by direct obligations of the Loans: U.S., amendment of regulation con- Secured by direct obligations of the cerning 1263, 1705 U.S., amendments of regulation by National banks {See National banks) Comptroller of the Currency. . 1263, 1705 Number, by class and State. 615 Number, by State 615 Operating ratios . . .. 617 Real estate loans, amendments to Section Reserves {See Reserves) 24 of Federal Reserve Act 1409 Sale of bank's money orders off premises as National summary of business conditions. .114, 258, establishment of branch office, interpreta- 425, 541, 686, 824, 962, 1106, 1275, tion . .413 1412, 1546, 1724 State member banks {See State member Nelson, C. Willard, appointed director at Birbanks) mingham Branch 110 Weekly reporting series, Wednesday data New Jersey Bank and Trust Company, Clifton, for 1964 326 N.J., Order under Bank Merger Act 1269 Membership in the Federal Reserve System: Nichols, Dorothy M., Trading in Federal Funds— Admissions, State banks, 424, 532, 685, 823, 1545 Findings of a Three-Year Survey 111 A Millard, W. B., Jr., appointed director at Omaha Nonmember banks: Branch ... Ill Bank Merger Act, statements on proposed Miller, J. E., appointed director at Louisville amendment to exempt bank mergers from Branch . . . Ill Federal antitrust laws . .799, 1078, 1246 Mills, Abbot L., Jr., resignation as member of Banking offices, changes in number. . 324, 1170 Board of Governors . . .424, 684 Branches, number, by State .616 Ministers and Governors of The Group of Ten, Foreign time deposits of nonmember insured communique 1407 banks, interest on, amendment to Section 18(g) of Federal Deposit Insurance Act. . 1084 Minutes of Federal Open Market Committee, Income and expenses, insured commercial 1936-60, availability 424 banks 759 Mitchell, George W.: Insured nonmember banks, list of State- Bank Merger Act, statement on proposed chartered banks registering their securities amendment to exempt bank mergers from under the Securities Exchange Act. .957 Federal antitrust laws ... .... 1248 Number, by State 615 Federal Reserve policy actions, statement Time deposits of nonmember insured banks, concerning 1683 maximum permissible rate, increase in, by Mobile branches, establishment of, interpreta- Federal Deposit Insurance Corporation 1704 tion . . 1539 Noyes, Guy E.: Monetary and credit developments, article 921 Resignation as Adviser to the Board 1544 Monetary developments and bank credit in 1964, Staff economic study (summary) 1376 article 213 Monetary policy, criteria for conduct of, staff Open Market Committee {See Federal Open Market Committee) economic study (summary) 1702 Operating ratios, member banks. . 617 Monetary Theory and Policy: A Bibliography 1544 Money, demand for, staff economic study (sum- Par and nonpar banking offices, number .325, 1171 mary) 1377 Parks, Chas. H., appointed director at Seattle Money stock, study of factors affecting it, staff Branch 112 economic study (summary).... . 1379 Partee, J. Charles, promoted to Associate Di- Money supply series, article on revision .933 rector, Division of Research and Statistics.... 1544 Mortgages {See Real estate loans) Patterson, Harold T., appointed President of Fed- Morthland, Rex J., appointed director at Birmingeral Reserve Bank of Atlanta 1411 ham Branch 110 Perring, Raymond T., appointed director at Mumford, Milton C, elected Class B director at Detroit Branch Ill New York 1721 Peters, Kenneth H., elected Class A director at Mutual funds, bank loans by mail on security of Kansas City 1274 mutual fund shares, interpretation. .413 Petersen, Howard C, elected Class A director at Mutual savings banks: Philadelphia : 1721 Banking offices, changes in number 324, 1170 Pettengill, Kroger, appointed director at Cincin- Branches, number, by State. .616 nati Branch 109 Number, by State 615 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 51 1825 Pages Pages Phillips, Charles F., Jr., co-author, Bank Mergers Regulations, Board of Governors—Continued & the Regulatory Agencies: Application of the Q, Payment of Interest on Deposits—Continued Bank Merger Act of 1960 961 Maximum permissible rate on time de- Piribek, Martin, appointed director at Baltimore posits, increase in 1667, 1704 Branch .110 R, Relationships with Dealers in Securities: Presidents of Federal Reserve Amendment to Section 218.2 ... 1704 Banks 411, 684, 1411, 1810 T, Credit by Brokers, Dealers, and Members Price analysis and economic developments, staff of National Securities Exchanges: economic study (summary) .1378 Amendment to Section 220.4(c) (3) 669 Prices, industrial production and, article 1 U, Loans by Banks for the Purpose of Pur- Profits: chasing or Carrying Registered Stocks: Insured commercial banks 759 Loans by mail on security of mutual Member banks . 663 fund shares . 413 Publications, Board of Governors: Reserve city designation: Annual Report, 1964 424 Pueblo, Colo., termination of designation 1704 Bank Mergers & the Regulatory Agencies: Toledo, Ohio, termination of designation 669 Application of the Bank Merger Act of Reserves: I960, by George R. Hall and Charles F. Federal Reserve Banks: Phillips, Jr 961 Gold reserve requirements: Banking and Monetary Statistics Supple- Amendment to Section 16 of Fedr ments to 1274, 1723 eral Reserve Act 413 Banking Market Structure & Performance in Statement of Chairman Martin on Metropolitan Areas: A Statistical Study S. 743, S. 797, and S. 814 226 of Factors Affecting Rates on Bank Loans, Member banks: by Theodore G. Flechsig . 961 Reserves and borrowing, weekly aver- List 1811 ages for 1964 . 490 Monetary Theory and Policy: A Bibli- Revenue bond underwriting by commercial banks, ography ... 1544 statement by Vice Chairman Balderston on Trading in Federal Funds—Findings of a H.R. 7539 665 Three-Year Survey, by Dorothy M. Revisions: Nichols . 1274 Bank debits and deposit turnover series, Pueblo, Colo., termination of designation as re- article 257, 390 serve city 1704 Flow of funds accounts, article. 1533 Industrial production indexes 1274 Real estate loans: Money supply series, article 933 Construction and mortgage markets, article 647 Reynolds, lohn E., promoted to Adviser, Divi- Loans by national banks, amendments to sion of International Finance 1544 Section 24 of Federal Reserve Act . 1409 Ritchie, Reeves E., appointed director at Little Reese, Everett D., elected Class A director at Rock Branch . . .. 106 Cleveland .1721 Riverside Trust Company, Hartford, Conn., Order Reeve, Byron W., appointed Class C director at under Bank Merger Act 819 Minneapolis 105 Roberts, Mary Louise, article on member bank Regulations, Board of Governors: income .... 660 F, Securities of Member State Banks: Robertson, J. L.: Banks filing registrations under Secu- Bank Merger Act, statement on proposed rities Exchange Act, list 957 amendment to exempt bank mergers from Financial statements to be included in Federal antitrust laws 1246 annual reports to security holders . 1707 Federal Reserve policy actions, statement Issuance of new regulation, and concerning 1681 erratum 13-90, 113, 424 Federal Reserve program for voluntary re- "Officer" defined for purposes of .810 straint of foreign credit by banks and Proxy solicitation by bank management, other financial institutions, statement on disclosure of loans to "insiders," progress 1071 clarification . 1707 Registration statements and reports filed Sammons, Robert L., promoted to Associate Dipursuant to, form for preparation of rector, Division of International Finance 1544 amendments to 1705 Saving: M, Foreign Branches of National Banks: Flow of funds series. . . . 176, 604, 1608 Amendment to Section 213.4 413 Securities {See also U.S. Govt. securities): O, Loans to Executive Officers of Member Commingled investment account of bank as Banks: "securities" under Securities Act of 1933, Loans to executive officers from bank interpretation . . .. 1410 administered profit-sharing trust fund 1539 Member State banks: Q, Payment of Interest on Deposits: Adoption of Regulation F, and Foreign time deposits, interest on, erratum 13-90, 113, 424 exemption from 1084 Financial statements to be included in Maximum interest on loans secured by annual reports to security holders time deposits, interpretation 533 pursuant to Regulation F 1707 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1826 FEDERAL RESERVE BULLETIN • DECEMBER 1965 Pages Pages Securities—Continued Staff economic studies: Member State banks—Continued Summaries: Proxy solicitation by bank manage- Demand for money—speed of adjustment, disclosure of loans to "insiders" ment, interest rates, and wealth . .1377 pursuant to Regulation F, clarifica- Inflation, statistical refinement of the tion 1707 concept of, monetary and liquidity Regulation T, amendment, regarding special aspects . . 1376 cash account . . 669 Monetary policy, criteria for conduct Revenue bond underwriting by commercial of, implications of recent research 1702 banks, statement by Vice Chairman Bald- Money stock, study of factors affecting: erston 665 phase one 1379 Securities companies, investment for own account Postwar boom in hotels and motels 1703 affects applicability under Banking Act of 1933 810 Price analysis and economic develop- Securities Exchange Act: ments .1378 Financial statements to be included in an- Time deposits in monetary analysis 1380 nual reports to security holders pursuant Staff of Board of Governors (See Board of to Regulation F 1707 Governors) Issuance by Board of Regulation F pursuant State member banks: to 1964 amendments to Act (See Regula- Admissions to membership in Federal Retions) serve System 424, 532, 685, 823, 1545 State-chartered banks registering their secu- Bank Merger Act, statements on proposed rities under Act, list 957 amendment to exempt bank mergers from Security-Peoples Trust Company, Erie, Pa., Order Federal antitrust laws 799, 1078, 1246 under Bank Merger Act 243 Bank securities, list of banks filing registra- Shawmut Association, Inc., Order under Bank tions under Securities Exchange Act 957 Holding Company Act 674 Banking offices, changes in number .324, 1170 Shipp, Royal, staff economic study Branches, number, by State ... 616 (summary) 1703 Mergers (See Bank Merger Act) Shively, Douglas, appointed director at Los An- Mobile branches, establishment of, interpregeles Branch 112 tation . 1539 Sigel, Stanley, promoted to Associate Adviser, Number, by State 615 Division of Research and Statistics 1544 Sale of bank's money orders off premises as Smith, Sherwood J., elected Class B director at establishment of branch office, interpreta- St. Louis 1722 tion 413 Smith, Tynan, promoted to Associate Adviser, Securities: Division of Research and Statistics 1544 Adoption of Regulation F, and Smith, Wm. Paul, article on measures of banking erratum 13-90, 113, 424 structure and competition 1212 Financial statements to be included in Society Corporation, Order under Bank Holding annual reports to security holders Company Act. 1712 pursuant to Regulation F . . 1707 Solomon, Robert, appointed Adviser, Division of Proxy solicitation by bank management, Research and Statistics, and subsequently Ad- disclosure of loans to "insiders" purviser to the Board. 112, 1544 suant to Regulation F, clarification . 1707 Special tables: State-Planters Bank of Commerce and Trusts, Bank holding companies: Richmond, Va., Order under Bank Merger Banking offices and deposits of group Act 1094 banks, Dec. 31, 1964.. 1026 Steffensen, V. R., director at Salt Lake City List, Dec. 31, 1964 892 Branch, death of 1544 Banking and monetary statistics for Stock market credit: 1964 .326, 490, 888 Stock Exchange firms, June 1958-65 1340 Banking offices: Summit Trust Company, Summit, N.J., Order Analysis of changes in number. 324, 1170 under Bank Merger Act 99 On, and not on, Federal Reserve Par List, number 325, 1171 Territory of Birmingham Branch, extension 957 Banks and branches, number of, by class Time deposits (See Deposits) and State . 615 Toledo, Ohio, termination of designation as re- Flow of funds: serve city 669 Financial assets and liabilities. . . .614, 1618 Toole, John H., elected Class B director at Min- Saving and financial flows. . 176, 604, 1608 neapolis 1105 Income and expenses: Federal Reserve Banks... 322 Treasury and Federal Reserve foreign exchange Insured commercial banks 759 operations, reports 377, 1223 Member banks: Treasury bills, yield differentials in, 1957-58, Calendar year 1964. 750 special tables . . 1496 Operating ratios 617 Stock Exchange firms, detailed debit and Union Bank, Los Angeles, Calif., Order under credit balances 1340 Bank Merger Act 1542 Yield differentials in Treasury bills, United California Bank, Los Angeles, Calif., 1957-58 1496 Orders under Bank Merger Act 415, 814, 1708 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDEX VOLUME 51 1827 Pages Pages U.S. balance of payments: Voluntary foreign credit restraint program, U.S. Bank credits to foreigners, article .361 balance of payments—Continued International payments, article . . .1367 Banks, initial guidelines with changes and Voluntary foreign credit restraint program: revisions 371, 532, 685, 1105, 1693 Antitrust exemption for voluntary Federal Reserve role in 256 agreements or programs 1540 Nonbank financial institutions, tentative and Guidelines: revised guidelines 371, 944, 1693 Banks ...371, 532, 685, 1105, 1693 Statements to Congress, 394-406, 949, 1071, 1237 Nonbank financial institutions . . .371, 944, 1693 Wachovia Bank and Trust Company, Winston- Public Law 89-175, provisions .1540 Salem, N.C., Order under Bank Merger Act ... 671 Role of Federal Reserve System 256 Waymire, Joseph O., elected Class B director at Statements .394-406, 949, 1071, 1237 Chicago 1722 U.S. Govt. securities: Weekly reporting member banks: Loans by national banks secured by direct Wednesday data for 1964 326 obligations of the U.S., amendments of Wells Fargo Bank, San Francisco, Calif., Order regulation by Comptroller of the Currency under Bank Merger Act 95 concerning 1263, 1705 White, W. R., appointed director at New Orleans Branch 110 Valley Bancorporation, Order under Bank Hold- Whitney Holding Corporation, Order with reing Company Act 91 spect to briefs on reconsideration of applica- Vander Noot, Theodore, co-author of article on tion 1084 revision of bank debits and deposit turnover Williams, James S., appointed director at Memseries 390 phis Branch 106 Vaughn, Harry T., elected Class B director at Williams, Robert M., appointed directer at Nash- Atlanta . 1722 ville Branch 106 Virginia Commonwealth Corporation, Order Winn, Willis J., appointed Deputy Chairman at under Bank Holding Company Act 1263 Philadelphia 105 Volk, Harry J., appointed director at Los An- Wood, Ralph C, promoted to Adviser, Division geles Branch 112 of International Finance. 1544 Voluntary foreign credit restraint program, U.S. balance of payments: Yarnall, D. Robert, Jr., appointed Class C direc- Antitrust exemption for voluntary agree- tor at Philadelphia 105 ments or programs 1540 Young, Ralph A., promoted to Senior Adviser Article 1367 to the Board. 1544 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES June 23, 1965 (f^THE FEDERAL RESERVE SYSTEM o) it $> HAWAII <o <C^s 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